[Congressional Record Volume 153, Number 44 (Wednesday, March 14, 2007)]
[Senate]
[Pages S3127-S3133]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself and Mr. Craig):
  S. 875. A bill to improve energ security of the United States through 
a 50 percent reduction in the oil intensity of the economy of the 
United States by 2030 and the prudent expansion of secure oil supplies, 
to be achieved by raising the fuel efficiency of the vehicular 
transportation fleet, increasing the availability of alternative fuel 
sources, fostering responsible oil exploration and production, and 
improving international arrangements to secure the global oil supply, 
and for other purposes; to the Committee on Finance.
  Mr. DORGAN. Mr. President, today I am pleased to be joined by Senator 
Craig to introduce legislation called the Security and Fuel Efficiency 
Act of 2007 or SAFE Energy Act. This legislation is a balanced plan 
with the overall goal to improve the energy security of the U.S. 
through a 50 percent reduction in the oil intensity of the economy by 
2030.
  What that means, plainly, is that if we used more than 4 barrels of 
oil in 1973 for every one unit of GDP and are using just over 2 barrels 
of oil per unit of GDP today, then under the provisions of the SAFE 
Energy Act we are striving to get down to 1 barrel of oil per GDP by 
2030. This is important to me because the United States remains 
dangerously dependent on foreign sources of oil. Today we import over 
60 percent of our oil from Iraq, Kuwait, Saudi Arabia, and other 
unstable regions of the world. This is very troubling to me.
  In the United States, we use about 67 percent of our oil to power our 
vehicles. This is the area where we are least secure and increasingly 
dependent. I am proposing along with my colleague, Senator Craig, a 
bipartisan, balanced approach to securing our future energy through 
reducing our dependence on foreign oil.
  Our proposal is grounded in four cornerstone principles. The first 
principle is achievable, stepped increases in fuel efficiency of the 
transportation fleet. The second principle promotes increased 
availability of alternative fuel sources and infrastructure. The third 
principle calls for expanded production and enhanced exploration of 
domestic and other secure oil and natural gas resources. Finally, the 
fourth principle improves the management of alliances to better secure 
global energy supplies.
  Senator Craig and I came together on this legislation because we 
believe that bolder energy security measures must be taken now to 
address our long-term security, economic growth and environmental 
protection. Producing much of our energy at home will also address 
other major challenges.
  There is no silver bullet to solving our energy dependence. Digging 
and drilling is a strategy I call yesterday forever. Conservation alone 
is not the answer. Renewable fuels hold promise, but we need to do much 
more here. We believe the combination of steps in the SAFE Energy Act 
sets the right pathway to U.S. energy security.
  I ask unanimous consent that the text of the Security and Fuel 
Efficiency Energy Act of 2007 be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 875

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Security 
     and Fuel Efficiency Energy Act of 2007'' or the ``SAFE Energy 
     Act of 2007''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

    TITLE I--INCREASED FUEL EFFICIENCY OF THE TRANSPORTATION SECTOR

Sec. 101. Definitions.
Sec. 102. Annual increase in average fuel economy standards.
Sec. 103. Tax credits for alternative motor vehicles and fuel-efficient 
              motor vehicles.
Sec. 104. Advanced technology motor vehicles manufacturing credit.
Sec. 105. Increase in maximum allowable gross weight for vehicles using 
              the National System of Interstate and Defense Highways.

    TITLE II--INCREASED USE OF ALTERNATIVE FUELS AND INFRASTRUCTURE

Sec. 201. Renewable fuel standard.
Sec. 202. Modification of credit for alternative fuel vehicle refueling 
              property.
Sec. 203. Ethanol-blend fuel infrastructure.
Sec. 204. Requirement to increase percentage of dual fueled 
              automobiles.
Sec. 205. Emerging biofuels.
Sec. 206. Biodiesel.
Sec. 207. Unconventional fossil fuels.
Sec. 208. Study of incentives for renewable fuels.

TITLE III--DEVELOPMENT AND INVENTORY OF CERTAIN OUTER CONTINENTAL SHELF 
                               RESOURCES

Sec. 301. Definition.
Sec. 302. Authorization of activities and exports involving hydrocarbon 
              resources by United States persons.
Sec. 303. Travel in connection with authorized hydrocarbon exploration 
              and extraction activities.
Sec. 304. Moratorium of oil and gas leasing in certain areas of the 
              Gulf of Mexico.
Sec. 305. Inventory of outer Continental Shelf oil and natural gas 
              resources off southeastern coast of the United States.
Sec. 306. Enhanced oil recovery.

                  TITLE IV--MANAGEMENT OF ENERGY RISKS

Sec. 401. Bureau of International Energy Policy.
Sec. 402. Strategic energy infrastructure equipment reserve.

    TITLE I--INCREASED FUEL EFFICIENCY OF THE TRANSPORTATION SECTOR

     SEC. 101. DEFINITIONS.

       (a) Definition of Automobile.--Section 32901(a)(3) of title 
     49, United States Code, is amended--
       (1) by striking ``4-wheeled''; and
       (2) by striking ``, and rated at--'' and all that follows 
     and inserting a period.
       (b) Definition of Passenger Automobile.--Section 
     32901(a)(16) of such title is amended by striking ``decides 
     by regulation--'' and all that follows through the period and 
     inserting ``determines by regulation, to have a significant 
     feature (except 4-wheel drive) designed for off-highway 
     operation.''.
       (c) Fuel Economy Information.--Section 32908(a) of such 
     title is amended--
       (1) in the subsection header, by striking ``Definitions'' 
     and inserting ``Definition''; and
       (2) by striking ``section--'' and all that follows through 
     ``(2)'' and inserting ``section, the term''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2010, and shall apply to 
     automobiles manufactured for model year 2012 and for each 
     subsequent model year.

     SEC. 102. ANNUAL INCREASE IN AVERAGE FUEL ECONOMY STANDARDS.

       (a) Fuel Efficiency Standards.--
       (1) In general.--Section 32902 of title 49, United States 
     Code, is amended by striking subsections (a) through (c) and 
     inserting the following:
       ``(a) In General.--Not later than 18 months before the 
     beginning of each model year beginning with model year 2012, 
     the Secretary of Transportation, by regulation, shall 
     prescribe average fuel economy standards for automobiles 
     manufactured by a manufacturer for that model year in 
     accordance with subsection (b). The Secretary of 
     Transportation shall prescribe separate average fuel economy 
     standards for different classes of automobiles. The Secretary 
     shall establish average fuel economy standards for medium-
     duty trucks that are consistent with the projected benefits 
     of hybridization. In this section, the term `medium-duty 
     truck' means a truck (as defined in section 30127) with a 
     gross vehicle weight between 10,000 and 26,000 pounds.
       ``(b) Annual Increases in Fuel Economy Standards.--

[[Page S3128]]

       ``(1) For model year 2012.--For model year 2012, the 
     average fuel economy standard for each class of automobiles 
     shall be the average combined highway and city miles per 
     gallon performance of all automobiles within that class of 
     automobiles in 2011 (rounded to the nearest 1/10 mile per 
     gallon).
       ``(2) For model years after model year 2012.--For each 
     model year beginning with model year 2013 and ending with 
     model year 2030, the average fuel economy attained by the 
     fleet of automobiles manufactured or sold in the United 
     States shall be at least 4 percent greater than the average 
     fuel economy standard for the fleet in the previous model 
     year (rounded to the nearest 1/10 mile per gallon).
       ``(c) Amending Fuel Economy Standards.--
       ``(1) In general.--Notwithstanding subsections (a) and (b), 
     the Secretary of Transportation may prescribe an average fuel 
     economy standard for a class of automobiles in a model year 
     that is lower than the standard required under subsection (b) 
     if the Secretary of Transportation, in consultation with the 
     National Academy of Sciences, determines that the average 
     fuel economy standard prescribed in accordance with 
     subsections (a) and (b) for that class of automobiles in that 
     model year--
       ``(A) is technologically not achievable;
       ``(B) cannot be achieved without materially reducing the 
     overall safety of automobiles manufactured or sold in the 
     United States and no offsetting safety improvements can be 
     practicably implemented for that model year; or
       ``(C) is shown not to be cost effective.
       ``(2) Maximum standard.--Any average fuel economy standard 
     prescribed for a class of automobiles in a model year under 
     paragraph (1) shall be the maximum standard that--
       ``(A) is technologically achievable;
       ``(B) can be achieved without materially reducing the 
     overall safety of automobiles manufactured or sold in the 
     United States; and
       ``(C) is cost effective.
       ``(3) Considerations in determination of cost 
     effectiveness.--In determining cost effectiveness under 
     paragraph (1)(C), the Secretary of Transportation shall take 
     into account the total value to the United States of reduced 
     petroleum use, including the value of reducing external costs 
     of petroleum use, using a value for such costs equal to 50 
     percent of the value of 1 gallon of gasoline saved or the 
     amount determined in an analysis of the external costs of 
     petroleum use that considers--
       ``(A) value to consumers;
       ``(B) economic security;
       ``(C) national security;
       ``(D) foreign policy;
       ``(E) the impact of oil use--
       ``(i) on sustained cartel rents paid to foreign suppliers;
       ``(ii) on long-run potential gross domestic product due to 
     higher normal-market oil price levels, including inflationary 
     impacts;
       ``(iii) on import costs, wealth transfers, and potential 
     gross domestic product due to increased trade imbalances;
       ``(iv) on import costs and wealth transfers during oil 
     shocks;
       ``(v) on macroeconomic dislocation and adjustment costs 
     during oil shocks;
       ``(vi) on the cost of existing energy security policies, 
     including the management of the Strategic Petroleum Reserve;
       ``(vii) on the timing and severity of the oil peaking 
     problem;
       ``(viii) on the risk, probability, size, and duration of 
     oil supply disruptions;
       ``(ix) on the strategic behavior of the Organization of the 
     Petroleum Exporting Countries and long-run oil pricing;
       ``(x) on the short term elasticity of energy demand and the 
     magnitude of price increases resulting from a supply shock;
       ``(xi) on oil imports, military costs, and related security 
     costs, including intelligence, homeland security, sea lane 
     security and infrastructure, and other military activities;
       ``(xii) on oil imports, diplomatic and foreign policy 
     flexibility, and connections to geopolitical strife, 
     terrorism, and international development activities;
       ``(xiii) all relevant environmental hazards under the 
     jurisdiction of the Environmental Protection Agency; and
       ``(xiv) on well-to-wheels urban and local air emissions of 
     pollutants and their uninternalized costs;
       ``(F) the impact of the oil or energy intensity of the 
     United States economy on the sensitivity of the economy to 
     oil price changes, including the magnitude of gross domestic 
     product losses in response to short term price shocks or long 
     term price increases;
       ``(G) the impact of United States payments for oil imports 
     on political, economic, and military developments in unstable 
     or unfriendly oil-exporting countries;
       ``(H) the uninternalized costs of pipeline and storage oil 
     seepage, and for risk of oil spills from production, 
     handling, and transport, and related landscape damage; and
       ``(I) additional relevant factors, as determined by the 
     Secretary.
       ``(4) Minimum valuation.--When considering the value to 
     consumers of a gallon of gasoline saved, the Secretary of 
     Transportation may not use a value less than the greatest 
     of--
       ``(A) the average national cost of a gallon of gasoline 
     sold in the United States during the 12-month period ending 
     on the date on which the new fuel economy standard is 
     proposed;
       ``(B) the most recent weekly estimate by the Energy 
     Information Administration of the Department of Energy of the 
     average national cost of a gallon of gasoline (all grades) 
     sold in the United States; or
       ``(C) the gasoline prices projected by the Energy 
     Information Administration for the 20-year period beginning 
     in the year following the year in which the standards are 
     established.''.
       (2) Conforming amendments.--Title 49, United States Code, 
     is amended--
       (A) in section 32902--
       (i) in subsection (d) by striking ``subsection (b) or (c) 
     of this section'' and inserting ``subsection (a), (b), or 
     (c)'';
       (ii) by striking subsection (f);
       (iii) in subsection (g)--

       (I) by striking ``subsection (a) or (d)'' and inserting 
     ``this section''; and
       (II) by striking ``(and submit the amendment to Congress 
     when required under subsection (c)(2) of this section)''; and

       (iv) in subsection (h) by striking ``subsections (c), (f), 
     and (g) of this section'' and inserting ``subsections (c) and 
     (g)'';
       (B) in section 32903--
       (i) by striking ``section 32902(b)-(d) of this title'' each 
     place it occurs and inserting ``subsections (a) through (d) 
     of section 32902''; and
       (ii) in subsection (e), by striking ``section 32902(a) of 
     this title'' and inserting ``subsections (a) through (d) of 
     section 32902''; and
       (C) in section 32904--
       (i) in subsection (a)--

       (I) by striking ``subject to--'' and all that follows 
     through ``(B) section 32902(a)-(d) of this title'' and 
     inserting ``subject to subsections (a) through (d) of section 
     32902''; and
       (II) by redesignating clauses (i) and (ii) as subparagraphs 
     (A) and (B), respectively;

       (ii) by striking subsection (b); and
       (iii) by redesignating subsections (c), (d), and (e) as 
     subsections (b), (c), and (d), respectively.
       (b) Repeal of Credit for Dual Fueled Automobiles.--
       (1) In general.--Section 32905 of title 49, United States 
     Code, is amended--
       (A) by amending subsection (b) to read as follows:
       ``(b) Dual Fueled Automobiles.--The Administrator of the 
     Environmental Protection Agency shall measure the fuel 
     economy for any model of dual fueled automobile manufactured 
     in model year 2012 and any model year thereafter, in 
     accordance with section 32904.''; and
       (B) by amending subsection (d) to read as follows:
       ``(d) Gaseous Fuel Dual Fueled Automobiles.--The 
     Administrator of the Environmental Protection Agency shall 
     measure the fuel economy for any model of gaseous fuel dual 
     fueled automobile manufactured in model year 2012 and any 
     model year thereafter, in accordance with section 32904.''.
       (2) Conforming amendments.--Such section 32905 is further 
     amended--
       (A) by repealing subsection (f); and
       (B) redesignating subsections (g) and (h) as subsections 
     (f) and (g), respectively.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2010.

     SEC. 103. TAX CREDITS FOR ALTERNATIVE MOTOR VEHICLES AND 
                   FUEL-EFFICIENT MOTOR VEHICLES.

       (a) Modifications to Alternative Motor Vehicle Credit.--
       (1) Elimination of limitation on number of new qualified 
     hybrid and advanced lean burn technology vehicles eligible 
     for full alternative motor vehicle tax credit.--
       (A) In general.--Section 30B of the Internal Revenue Code 
     of 1986 is amended--
       (i) by striking subsection (f); and
       (ii) by redesignating subsections (g) through (j), as 
     amended by subsection (a), as subsections (f) through (i), 
     respectively.
       (B) Conforming amendments.--
       (i) Paragraphs (4) and (6) of section 30B(g) of such Code, 
     as redesignated by paragraph (1)(B), are each amended by 
     striking ``(determined without regard to subsection (g))'' 
     and inserting ``(determined without regard to subsection 
     (f))''.
       (ii) Section 38(b)(25) of such Code is amended by striking 
     ``section 30B(g)(1)'' and inserting ``section 30B(f)(1)''.
       (iii) Section 55(c)(2) of such Code is amended by striking 
     ``section 30B(g)(2)'' and inserting ``section 30B(f)(2)''.
       (iv) Section 1016(a)(36) of such Code is amended by 
     striking ``section 30B(h)(4)'' and inserting ``section 
     30B(g)(4)''.
       (v) Section 6501(m) of such Code is amended by striking 
     ``section 30B(h)(9)'' and inserting ``section 30B(g)(9)''.
       (C) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2005, in taxable years ending after such date.
       (2) Extension of new qualified hybrid motor vehicle credit 
     for vehicles over 8,500 pounds.--Paragraph (3) of section 
     30B(i), as redesignated by subsection (a)(1)(B), is amended 
     by striking``2009'' and inserting ``2011''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to vehicles placed in service after the date of 
     the enactment of this Act.
       (b) Credit for New Qualified Fuel-Efficient Vehicles 
     Produced After 2010.--
       (1) In general.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal

[[Page S3129]]

     Revenue Code of 1986 is amended by adding at the end the 
     following new section:

     ``SEC. 30D. NEW QUALIFIED FUEL-EFFICIENT MOTOR VEHICLE 
                   CREDIT.

       ``(a) In General.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the amount determined under subsection (b) 
     with respect to each new qualified fuel-efficient motor 
     vehicle placed in service by the taxpayer during the taxable 
     year.
       ``(b) Credit Amount.--
       ``(1) Fuel economy.--
       ``(A) In general.--The credit amount determined under this 
     paragraph shall be determined in accordance with the 
     following table:


------------------------------------------------------------------------
   In the case of a vehicle which achieves a fuel economy
 (expressed as a percentage of the 2012 model year average    The credit
                fuel economy standard) of--                  amount is--
------------------------------------------------------------------------
At least 125 percent but less than 150 percent.............         $400
At least 150 percent but less than 175 percent.............         $800
At least 175 percent but less than 200 percent.............       $1,200
At least 200 percent but less than 225 percent.............       $1,600
At least 220 percent but less than 250 percent.............       $2,000
At least 250 percent.......................................       $2,400
------------------------------------------------------------------------

       ``(B) 2012 model year average fuel economy standard.--For 
     purposes of subparagraph (A), the 2012 model year average 
     fuel economy standard with respect to a vehicle shall be the 
     average fuel economy standard (determined on a gasoline 
     gallon equivalent basis) for such model year, as prescribed 
     by the Secretary of Transportation under section 32902 of 
     title 49, United States Code, with respect to the class to 
     which such vehicle belongs.
       ``(2) Conservation credit.--The amount determined under 
     paragraph (1) with respect to a new qualified fuel-efficient 
     motor vehicle shall be increased by the conservation credit 
     amount determined in accordance with the following table:


------------------------------------------------------------------------
                                                                 The
  In the case of a vehicle which achieves a lifetime fuel   conservation
      savings expressed in gallons of gasoline) of--           credit
                                                             amount is--
------------------------------------------------------------------------
At least 1,200 but less than 1,800........................          $250
At least 1,800 but less than 2,400........................          $500
At least 2,400 but less than 3,000........................          $750
At least 3,000............................................        $1,000
------------------------------------------------------------------------

       ``(c) New Qualified Fuel-Efficient Motor Vehicle.--For 
     purposes of this section, the term `new qualified fuel-
     efficient motor vehicle' means a passenger automobile or a 
     light truck--
       ``(1) described in subsections (c)(3), (d)(3), or (e)(3) of 
     section 30B,
       ``(2) which has received a certificate of conformity under 
     the Clean Air Act and meets or exceeds the equivalent 
     qualifying California low emission vehicle standard under 
     section 243(e)(2) of the Clean Air Act for that make and 
     model year, and
       ``(A) in the case of a vehicle having a gross vehicle 
     weight rating of 6,000 pounds or less, the Bin 5 Tier II 
     emission standard established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year vehicle, and
       ``(B) in the case of a vehicle having a gross vehicle 
     weight rating of more than 6,000 pounds but not more than 
     8,500 pounds, the Bin 8 Tier II emission standard which is so 
     established,
       ``(3) the original use of which commences with the taxpayer 
     after December 31, 2010, and
       ``(4) which is acquired for use or lease by the taxpayer 
     and not for resale.
       ``(d) Other Definitions.--For purposes of this section--
       ``(1) Lifetime fuel savings.--The term `lifetime fuel 
     savings' means, in the case of any new qualified fuel-
     efficient motor vehicle, an amount equal to the excess (if 
     any) of--
       ``(A) 120,000 divided by the 2012 model year average fuel 
     economy standard for the vehicle class, over
       ``(B) 120,000 divided by the fuel economy for such vehicle.
       ``(2) Motor vehicle.--The term `motor vehicle' has the 
     meaning given such term by section 30(c)(2).
       ``(3) Fuel economy.--The fuel economy with respect to any 
     vehicle shall be measured in a manner which is substantially 
     similar to the manner fuel economy is measured in accordance 
     with procedures under part 600 of subchapter Q of chapter I 
     of title 40, Code of Federal Regulations, as in effect on the 
     date of the enactment of this section.
       ``(4) Other terms.--The terms `automobile', ``passenger 
     automobile'', ``medium duty passenger vehicle'', ``light 
     truck'', and `manufacturer' have the meanings given such 
     terms in regulations prescribed by the Administrator of the 
     Environmental Protection Agency for purposes of the 
     administration of title II of the Clean Air Act (42 U.S.C. 
     7521 et seq.).
       ``(e) Special Rules.--
       ``(1) Reduction in basis.--For purposes of this subtitle, 
     the basis of any property for which a credit is allowable 
     under subsection (a) shall be reduced by the amount of such 
     credit so allowed.
       ``(2) No double benefit.--
       ``(A) Coordination with other vehicle credits.--No credit 
     shall be allowed under subsection (a) with respect to any new 
     qualified fuel-efficient motor vehicle for any taxable year 
     if a credit is allowed with respect to such motor vehicle for 
     such taxable year under section 30 or 30B.
       ``(B) Other tax benefits.--The amount of any deduction or 
     credit (other than the credit allowable under this section 
     and any credit described in subparagraph (A)) allowable under 
     this chapter with respect to any new qualified fuel-efficient 
     motor vehicle shall be reduced by the amount of credit 
     allowed under subsection (a) for such motor vehicle for such 
     taxable year.
       ``(3) Property used outside the united states, etc., not 
     qualified.--No credit shall be allowable under subsection (a) 
     with respect to any property referred to in section 50(b)(1) 
     or with respect to the portion of the cost of any property 
     taken into account under section 179.
       ``(4) Election not to take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects not to have this section apply to such vehicle.
       ``(f) Application With Other Credits.--
       ``(1) Business credit treated as part of general business 
     credit.--So much of the credit which would be allowed under 
     subsection (a) for any taxable year (determined without 
     regard to this subsection) that is attributable to property 
     of a character subject to an allowance for depreciation shall 
     be treated as a credit listed in section 38(b) for such 
     taxable year (and not allowed under subsection (a)).
       ``(2) Personal credit.--The credit allowed under subsection 
     (a) (after the application of paragraph (1)) for any taxable 
     year shall not exceed the excess (if any) of--
       ``(A) the regular tax liability (as defined in section 
     26(b)) reduced by the sum of the credits allowable under 
     subpart A and sections 27 and 30, over
       ``(B) the tentative minimum tax for the taxable year.
       ``(g) Regulations.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall promulgate such regulations as necessary to 
     carry out the provisions of this section.
       ``(2) Coordination in prescription of certain 
     regulations.--The Secretary of the Treasury, in coordination 
     with the Secretary of Transportation and the Administrator of 
     the Environmental Protection Agency, shall prescribe such 
     regulations as necessary to determine whether a motor vehicle 
     meets the requirements to be eligible for a credit under this 
     section.''.
       (2) Conforming amendments.--
       (A) Section 1016(a) of the Internal Revenue Code of 1986 is 
     amended by striking ``and'' at the end of paragraph (36), by 
     striking the period at the end of paragraph (37) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(38) to the extent provided in section 30D(e)(1).''.
       (B) Section 6501(m) of such Code is amended by inserting 
     ``30D(e)(4),'' after ``30C(e)(5),''.
       (C) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 of such Code is amended by adding 
     at the end the following new item:

``Sec. 30D. New qualified fuel-efficient motor vehicle credit.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to vehicles placed in service after December 31, 
     2010.

     SEC. 104. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING 
                   CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     foreign tax credit, etc.), as amended by this Act, is amended 
     by adding at the end the following new section:

     ``SEC. 30E. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING 
                   CREDIT.

       ``(a) Credit Allowed.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to 35 percent of so much of the qualified 
     investment of an eligible taxpayer for such taxable year as 
     does not exceed $75,000,000.
       ``(b) Qualified Investment.--For purposes of this section--
       ``(1) In general.--The qualified investment for any taxable 
     year is equal to the incremental costs incurred during such 
     taxable year--
       ``(A) to re-equip, expand, or establish any manufacturing 
     facility in the United States of the eligible taxpayer to 
     produce advanced technology motor vehicles or to produce 
     eligible components,
       ``(B) for engineering integration performed in the United 
     States of such vehicles and components as described in 
     subsection (d),
       ``(C) for research and development performed in the United 
     States related to advanced technology motor vehicles and 
     eligible components, and
       ``(D) for employee retraining with respect to the 
     manufacturing of such vehicles or components (determined 
     without regard to wages or salaries of such retrained 
     employees).
       ``(2) Attribution rules.--In the event a facility of the 
     eligible taxpayer produces both advanced technology motor 
     vehicles and conventional motor vehicles, or eligible and 
     non-eligible components, only the qualified

[[Page S3130]]

     investment attributable to production of advanced technology 
     motor vehicles and eligible components shall be taken into 
     account.
       ``(c) Advanced Technology Motor Vehicles and Eligible 
     Components.--For purposes of this section--
       ``(1) Advanced technology motor vehicle.--The term 
     `advanced technology motor vehicle' means--
       ``(A) any qualified electric vehicle (as defined in section 
     30(c)(1)),
       ``(B) any new qualified fuel cell motor vehicle (as defined 
     in section 30B(b)(3)),
       ``(C) any new advanced lean burn technology motor vehicle 
     (as defined in section 30B(c)(3)),
       ``(D) any new qualified hybrid motor vehicle (as defined in 
     section 30B(d)(2)(A) and determined without regard to any 
     gross vehicle weight rating),
       ``(E) any new qualified alternative fuel motor vehicle (as 
     defined in section 30B(e)(4), including any mixed-fuel 
     vehicle (as defined in section 30B(e)(5)(B)),
       ``(F) any other motor vehicle using electric drive 
     transportation technology (as defined in paragraph (3)), and
       ``(G) any new qualified fuel-efficient motor vehicle (as 
     defined in section 30D(c)).
       ``(2) Eligible components.--The term `eligible component' 
     means any component inherent to any advanced technology motor 
     vehicle, including--
       ``(A) with respect to any gasoline or diesel-electric new 
     qualified hybrid motor vehicle--
       ``(i) electric motor or generator,
       ``(ii) power split device,
       ``(iii) power control unit,
       ``(iv) power controls,
       ``(v) integrated starter generator, or
       ``(vi) battery,
       ``(B) with respect to any hydraulic new qualified hybrid 
     motor vehicle--
       ``(i) hydraulic accumulator vessel,
       ``(ii) hydraulic pump, or
       ``(iii) hydraulic pump-motor assembly,
       ``(C) with respect to any new advanced lean burn technology 
     motor vehicle--
       ``(i) diesel engine,
       ``(ii) turbocharger,
       ``(iii) fuel injection system, or
       ``(iv) after-treatment system, such as a particle filter or 
     NOx absorber, and
       ``(D) with respect to any advanced technology motor 
     vehicle, any other component submitted for approval by the 
     Secretary.
       ``(3) Electric drive transportation technology.--The term 
     `electric drive transportation technology' means technology 
     used by vehicles that use an electric motor for all or part 
     of their motive power and that may or may not use off-board 
     electricity, such as battery electric vehicles, fuel cell 
     vehicles, engine dominant hybrid electric vehicles, plug-in 
     hybrid electric vehicles, and plug-in hybrid fuel cell 
     vehicles.
       ``(d) Engineering Integration Costs.--For purposes of 
     subsection (b)(1)(B), costs for engineering integration are 
     costs incurred prior to the market introduction of advanced 
     technology vehicles for engineering tasks related to--
       ``(1) establishing functional, structural, and performance 
     requirements for component and subsystems to meet overall 
     vehicle objectives for a specific application,
       ``(2) designing interfaces for components and subsystems 
     with mating systems within a specific vehicle application,
       ``(3) designing cost effective, efficient, and reliable 
     manufacturing processes to produce components and subsystems 
     for a specific vehicle application, and
       ``(4) validating functionality and performance of 
     components and subsystems for a specific vehicle application.
       ``(e) Eligible Taxpayer.--For purposes of this section, the 
     term `eligible taxpayer' means any taxpayer if more than 50 
     percent of its gross receipts for the taxable year is derived 
     from the manufacture of motor vehicles or any component parts 
     of such vehicles.
       ``(f) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for the taxable year shall not 
     exceed the excess of--
       ``(1) the sum of--
       ``(A) the regular tax liability (as defined in section 
     26(b)) for such taxable year, plus
       ``(B) the tax imposed by section 55 for such taxable year 
     and any prior taxable year beginning after 1986 and not taken 
     into account under section 53 for any prior taxable year, 
     over
       ``(2) the sum of the credits allowable under subpart A and 
     sections 27, 30, and 30B for the taxable year.
       ``(g) Reduction in Basis.--For purposes of this subtitle, 
     if a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this paragraph) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.
       ``(h) No Double Benefit.--
       ``(1) Coordination with other deductions and credits.--
     Except as provided in paragraph (2), the amount of any 
     deduction or other credit allowable under this chapter for 
     any cost taken into account in determining the amount of the 
     credit under subsection (a) shall be reduced by the amount of 
     such credit attributable to such cost.
       ``(2) Research and development costs.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any amount described in subsection (b)(1)(C) taken into 
     account in determining the amount of the credit under 
     subsection (a) for any taxable year shall not be taken into 
     account for purposes of determining the credit under section 
     41 for such taxable year.
       ``(B) Costs taken into account in determining base period 
     research expenses.--Any amounts described in subsection 
     (b)(1)(C) taken into account in determining the amount of the 
     credit under subsection (a) for any taxable year which are 
     qualified research expenses (within the meaning of section 
     41(b)) shall be taken into account in determining base period 
     research expenses for purposes of applying section 41 to 
     subsequent taxable years.
       ``(i) Business Carryovers Allowed.--If the credit allowable 
     under subsection (a) for a taxable year exceeds the 
     limitation under subsection (f) for such taxable year, such 
     excess (to the extent of the credit allowable with respect to 
     property subject to the allowance for depreciation) shall be 
     allowed as a credit carryback and carryforward under rules 
     similar to the rules of section 39.
       ``(j) Special Rules.--For purposes of this section, rules 
     similar to the rules of section 179A(e)(4) and paragraphs (1) 
     and (2) of section 41(f) shall apply
       ``(k) Election Not to Take Credit.--No credit shall be 
     allowed under subsection (a) for any property if the taxpayer 
     elects not to have this section apply to such property.
       ``(l) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(m) Termination.--This section shall not apply to any 
     qualified investment after December 31, 2010.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
     amended by striking ``and'' at the end of paragraph (36), by 
     striking the period at the end of paragraph (37) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(38) to the extent provided in section 30E(g).''.
       (2) Section 6501(m) of such Code is amended by inserting 
     ``30E(k),'' after ``30C(e)(5),''.
       (3) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 30D the 
     following new item:

``Sec. 30E. Advanced technology motor vehicles manufacturing credit.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts incurred in taxable years beginning 
     after December 31, 2006.

     SEC. 105. INCREASE IN MAXIMUM ALLOWABLE GROSS WEIGHT FOR 
                   VEHICLES USING THE NATIONAL SYSTEM OF 
                   INTERSTATE AND DEFENSE HIGHWAYS.

       (a) Special Rule for Vehicles With a Supplementary Sixth 
     Axle.--Not later than 180 days after the Secretary of 
     Transportation makes a positive determination under 
     subsection (d), the Secretary of Transportation shall 
     promulgate regulations, in accordance with section 127(a) of 
     title 23, United States Code, that set the maximum allowable 
     gross weight for a vehicle using the National System of 
     Interstate and Defense Highways at 97,000 pounds for vehicles 
     with a supplementary sixth axle.
       (b) Conditions on Regulations.--The regulations promulgated 
     under subsection (a)--
       (1) shall ensure that a loaded tractor trailer with a 
     supplementary sixth axle and a gross weight of not more than 
     97,000 pounds that is traveling at 60 miles per hour has a 
     stopping distance of not greater than 355 feet; and
       (2) shall not require a fundamental alteration of the 
     vehicle architecture that is common for use in the 
     transportation of goods as of the day before the date of the 
     enactment of this Act.
       (c) Study.--The Secretary of Transportation shall conduct a 
     study that--
       (1) analyzes the safety impacts of allowing significantly 
     longer and heavier vehicles to use the National System of 
     Interstate and Defense Highways than are allowed under 
     regulations in effect as of the day before the date of the 
     enactment of this Act; and
       (2) considers the potential impact on highway safety of 
     applying lower speed limits on such vehicles than the limits 
     in effect on the day before the date of the enactment of this 
     Act.
       (d) Determination.--Not later than 180 days after the date 
     of the enactment of this Act, the Secretary of Transportation 
     shall determine whether allowing significantly longer and 
     heavier vehicles to use the National System of Interstate and 
     Defense Highways than are allowed as of the day before the 
     date of the enactment of this Act would have a material 
     impact on highway safety.

    TITLE II--INCREASED USE OF ALTERNATIVE FUELS AND INFRASTRUCTURE

     SEC. 201. RENEWABLE FUEL STANDARD.

       Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o) is 
     amended--
       (1) in paragraph (2)(B)--
       (A) by striking clause (i) and inserting the following:
       ``(i) Calendar years 2006 through 2020.--

       ``(I) Renewable fuel.--For the purpose of subparagraph (A), 
     subject to subclause (II), the applicable total volume for 
     any of calendar years 2006 through 2020 shall be determined 
     in accordance with the following table:

                            ``Applicable total volume of renewable fuel
Calendar year:                                (in billions of gallons):
  2006..........................................................4.0....

[[Page S3131]]

  2007..........................................................4.7....

  2008..........................................................7.1....

  2009..........................................................9.5....

  2010.........................................................12.0....

  2011.........................................................12.6....

  2012.........................................................13.2....

  2013.........................................................13.8....

  2014.........................................................14.4....

  2015.........................................................15.0....

  2016.........................................................18.0....

  2017.........................................................21.0....

  2018.........................................................24.0....

  2019.........................................................27.0....

  2020.........................................................30.0....

       ``(II) Cellulosic biomass ethanol.--For the purpose of 
     paragraph (1), of the total volume of renewable fuel required 
     under subclause (I), the applicable volume for any of 
     calendar years 2012 through 2020 for cellulosic biomass 
     ethanol shall be determined in accordance with the following 
     table:

                     ``Applicable volume of cellulosic biomass ethanol 
Calendar year:                               (in billions of gallons): 
  2012........................................................0.25 ....

  2013.........................................................1.0 ....

  2014.........................................................3.0 ....

  2015.........................................................5.0 ....

  2016.........................................................7.0 ....

  2017.........................................................9.0 ....

  2018........................................................11.0 ....

  2019........................................................13.0 ....

  2020......................................................15.0'';....

       (B) in clause (ii)--
       (i) in the clause heading, by striking ``2013'' and 
     inserting ``2021'';
       (ii) by striking ``2013'' and inserting ``2021''; and
       (iii) by striking ``2012'' and inserting ``2020'';
       (C) in clause (iii), by striking ``thereafter--'' and all 
     that follows through ``(II) the'' and inserting ``thereafter, 
     the'';
       (D) in clause (iv)--
       (i) by striking ``2013'' and inserting ``2021''; and
       (ii) in subclause (II)(bb), by striking ``2012'' and 
     inserting ``2020'';
       (2) in paragraph (3)--
       (A) in subparagraph (A), by striking ``2011'' and inserting 
     ``2019''; and
       (B) in subparagraph (B)(i), by striking ``2012'' and 
     inserting ``2020''; and
       (3) in paragraph (6)(A), by striking ``2012'' and inserting 
     ``2020''.

     SEC. 202. MODIFICATION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE 
                   REFUELING PROPERTY.

       (a) Increase in Credit Amount.--
       (1) In general.--Subsection (a) of section 30C of the 
     Internal Revenue Code of 1986 (relating to alternative fuel 
     vehicle refueling property credit) is amended by striking 
     ``30 percent'' and inserting ``35 percent''.
       (2) Further increase for blender pumps.--
       (A) In general.--Section 30C(a) of such Code, as amended by 
     paragraph (1), is amended by inserting ``(40 percent in the 
     case of any qualified alternative fuel vehicle refueling 
     property which is a blender pump)'' after ``property''.
       (B) Blender pump.--Section 30C(c) of such Code is amended 
     by adding at the end the following new paragraph:
       ``(3) Blender pump.--The term `blender pump' means any fuel 
     pump which, with respect to any fuel described in paragraph 
     (1)(A)(i)--
       ``(A) sources ethanol and gasoline products from separate 
     underground storage tanks,
       ``(B) incorporates the use of inlet valves from such tanks 
     to enable varying amounts of ethanol and gasoline products to 
     be blended within a chamber in the pump, and
       ``(C) dispenses the various blends of ethanol and gasoline 
     products through separate hoses.''.
       (b) Credit Allowed for Blended Ethanol Other Than E85.--
     Subparagraph (A) of section 30C(c)(1) of the Internal Revenue 
     Code of 1986 (defining qualified alternative fuel vehicle 
     refueling property) is amended to read as follows:
       ``(A) at least--
       ``(i) 11 percent of the volume of which consists of 
     ethanol, or
       ``(ii) 85 percent of the volume of which consists of one or 
     more of the following: natural gas, compressed natural gas, 
     liquefied natural gas, liquified petroleum gas, or hydrogen, 
     or''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 203. ETHANOL-BLEND FUEL INFRASTRUCTURE.

       Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is 
     amended by adding at the end the following:
       ``(11) Installation of ethanol-blend fuel pumps by covered 
     owners at stations.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Covered owner.--The term `covered owner' means any 
     person that, individually or together with any other person 
     with respect to which the person has an affiliate 
     relationship or significant ownership interest, owns 10 or 
     more retail station outlets, as determined by the Secretary.
       ``(ii) Ethanol-blend fuel.--The term `ethanol-blend fuel' 
     means a blend of gasoline not more than 85 percent, nor less 
     than 80 percent, of the content of which is derived from 
     ethanol produced in the United States, as defined by the 
     Secretary in a manner consistent with applicable standards of 
     the American Society for Testing and Materials.
       ``(iii) Secretary.--The term `Secretary' means the 
     Secretary of Energy, acting in consultation with the 
     Administrator and the Secretary of Agriculture.
       ``(B) Assessment.--Not later than 5 years after the date of 
     enactment of this paragraph, the Secretary shall make an 
     assessment of the progress made toward the creation of 
     adequate infrastructure for the production and distribution 
     of ethanol-blend fuel (including the creation of adequate 
     qualified alternative fuel vehicle refueling property that is 
     a blender pump).
       ``(C) Regulations.--If the Secretary determines (in the 
     assessment made under subparagraph (B)) that adequate 
     progress has not been made toward the creation of adequate 
     infrastructure for the production and distribution of 
     ethanol-blend fuel, the Secretary shall promulgate 
     regulations to ensure, to the maximum extent practicable, 
     that each covered owner installs or otherwise makes available 
     1 or more pumps that dispense ethanol-blend fuel (including 
     any other equipment necessary, such as tanks, to ensure that 
     the pumps function properly) at not less than the applicable 
     percentage of the retail station outlets of the covered owner 
     specified in subparagraph (D).
       ``(D) Applicable percentages.--For the purpose of 
     subparagraph (C), the applicable percentage of the retail 
     station outlets shall be--
       ``(i) during the 10-year period beginning on the date of 
     any determination made under subparagraph (C), 10 percent; 
     and
       ``(ii) after the 10-year period described in clause (i), 20 
     percent.
       ``(E) Financial responsibility.--In promulgating 
     regulations under subparagraph (C), the Secretary shall 
     ensure that each covered owner described in that subparagraph 
     assumes full financial responsibility for the costs of 
     installing or otherwise making available the pumps described 
     in that subparagraph and any other equipment necessary 
     (including tanks) to ensure that the pumps function properly.
       ``(F) Production credits for exceeding ethanol-blend fuel 
     pumps installation requirement.--
       ``(i) Earning and period for applying credits.--If the 
     percentage of the retail station outlets of a covered owner 
     at which the covered owner installs ethanol-blend fuel pumps 
     in a particular calendar year exceeds the percentage required 
     under subparagraph (D), the covered owner shall earn credits 
     under this paragraph, which may be applied to any of the 3 
     consecutive calendar years immediately after the calendar 
     year for which the credits are earned.
       ``(ii) Trading credits.--A covered owner that has earned 
     credits under clause (i) may sell credits to another covered 
     owner to enable the purchaser to meet the requirement under 
     subparagraph (D).''.

     SEC. 204. REQUIREMENT TO INCREASE PERCENTAGE OF DUAL FUELED 
                   AUTOMOBILES.

       (a) In General.--Section 32902 of title 49, United States 
     Code, is amended by inserting after subsection (e) the 
     following:
       ``(f) Requirement for Annual Increase in Duel Fueled 
     Automobiles.--Each manufacturer shall ensure that the 
     percentage of automobiles manufactured by such manufacturer 
     in each of model years 2012 through 2022 that are dual fueled 
     automobiles is not less than 10 percentage points greater 
     than the percentage of automobiles manufactured by such 
     manufacturer in the previous model year that are dual fueled 
     automobiles.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date specified in section 102(c).

     SEC. 205. EMERGING BIOFUELS.

       (a) Establishment of Incentive Program.--The Secretary of 
     Energy (referred to in this section as the ``Secretary'') 
     shall establish a program under which the Secretary shall 
     provide to eligible entities such incentives (including 
     grants, tax credits, loans, and loan guarantees) as the 
     Secretary determines to be appropriate for the production of 
     cellulosic ethanol and other emerging biofuels derived from 
     renewable sources (including municipal solid waste).
       (b) Application.--To be eligible to receive an incentive 
     under this section, an eligible entity shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require, 
     including--
       (1) a description of the project for which the incentive 
     will be used;
       (2) a description of the use by the eligible entity of the 
     incentive; and
       (3) an estimate of the annual production using the 
     incentive by the eligible entity of cellulosic ethanol or 
     another biofuel, expressed on a per-gallon basis.
       (c) Selection Requirements.--
       (1) Minimum number of incentives.--The Secretary shall 
     provide incentives under this section to not less than 6 
     biorefineries located in different regions of the United 
     States.
       (2) Least-cost incentives.--The Secretary shall provide 
     incentives under this section only to eligible entities the 
     applications of which reflect the least-cost use of the 
     incentives, on a per-gallon basis, with respect to similar 
     projects.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $500,000,000.

[[Page S3132]]

     SEC. 206. BIODIESEL.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Energy shall submit 
     to Congress a report on any research and development 
     challenges inherent in increasing to 5 percent the proportion 
     of diesel fuel sold in the United States that is biodiesel, 
     as defined in section 757 of the Energy Policy Act of 2005 
     (42 U.S.C. 16105).
       (b) Regulations.--The Administrator of the Environmental 
     Protection Agency shall promulgate regulations providing for 
     the uniform labeling of biodiesel blends that are certified 
     to meet applicable standards published by the American 
     Society for Testing and Materials.

     SEC. 207. UNCONVENTIONAL FOSSIL FUELS.

       (a) In General.--The Secretary of Energy shall carry out a 
     10-year carbon capture research and development program to 
     develop carbon dioxide capture technologies that can be used 
     in the recovery of liquid fuels from oil shale and the 
     production of liquid fuels in coal utilization facilities to 
     minimize the emissions of carbon dioxide from those 
     processes.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $50,000,000 for the period of fiscal years 2008 through 
     2012; and
       (2) $100,000,000 for the period of fiscal years 2013 
     through 2017.

     SEC. 208. STUDY OF INCENTIVES FOR RENEWABLE FUELS.

       (a) Study.--The Secretary of Agriculture (in consultation 
     with the Secretary of Energy, the Secretary of the Treasury, 
     the Administrator of the Environmental Protection Agency, 
     representatives of the biofuels industry, the oil industry, 
     and other interested parties) shall conduct a study of the 
     renewable fuels industry and markets in the United States, 
     including--
       (1) the costs to produce corn-based and cellulosic-based 
     ethanol and biobutanol, biodiesel, and other emerging 
     biofuels;
       (2) the factors affecting the future market prices for 
     those biofuels, including world oil prices; and
       (3) the level of tax incentives necessary, to the maximum 
     extent practicable, to grow the biofuels industry of the 
     United States to reduce the dependence of the United States 
     on foreign oil during calendar years 2011 through 2030.
       (b) Goals.--The study shall include an analysis of the 
     types and advantages and disadvantages of tax incentive 
     options to, to the maximum extent practicable--
       (1) limit the overall cost of the tax incentives to the 
     Federal Government;
       (2) encourage expansion of the biofuels industry by 
     ensuring that new plants and recently-built plants can fully 
     amortize the investments in the plants;
       (3) reward energy-efficient and low carbon-emitting 
     technologies;
       (4) ensure that pioneering processes (such as those that 
     convert cellulosic feedstocks like corn stover and switch 
     grass to ethanol) are economically competitive with fossil 
     fuels;
       (5) encourage agricultural producer equity participation in 
     ethanol plants; and
       (6) encourage the development of higher blend markets, such 
     as E-20, E30, and E-85.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     submit a report that describes the results of the study to--
       (1) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate;
       (2) the Committee on Energy and Natural Resources of the 
     Senate;
       (3) the Committee on Environment and Public Works of the 
     Senate;
       (4) the Committee on Finance of the Senate;
       (5) the Committee on Agriculture of the House of 
     Representatives;
       (6) the Committee on Energy and Commerce of the House of 
     Representatives; and
       (7) the Committee on Ways and Means of the House of 
     Representatives.

TITLE III--DEVELOPMENT AND INVENTORY OF CERTAIN OUTER CONTINENTAL SHELF 
                               RESOURCES

     SEC. 301. DEFINITION.

       In this title, the term ``United States person'' means--
       (1) any United States citizen or alien lawfully admitted 
     for permanent residence in the United States; and
       (2) any person other than an individual, if 1 or more 
     individuals described in paragraph (1) own or control at 
     least 51 percent of the securities or other equity interest 
     in the person.

     SEC. 302. AUTHORIZATION OF ACTIVITIES AND EXPORTS INVOLVING 
                   HYDROCARBON RESOURCES BY UNITED STATES PERSONS.

       Notwithstanding any other provision of law (including a 
     regulation), United States persons (including agents and 
     affiliates of those United States persons) may--
       (1) engage in any transaction necessary for the exploration 
     for and extraction of hydrocarbon resources from any portion 
     of any foreign exclusive economic zone that is contiguous to 
     the exclusive economic zone of the United States; and
       (2) export without license authority all equipment 
     necessary for the exploration for or extraction of 
     hydrocarbon resources described in paragraph (1).

     SEC. 303. TRAVEL IN CONNECTION WITH AUTHORIZED HYDROCARBON 
                   EXPLORATION AND EXTRACTION ACTIVITIES.

       Section 910 of the Trade Sanctions Reform and Export 
     Enhancement Act of 2000 (22 U.S.C. 7209) is amended by 
     inserting after subsection (b) the following:
       ``(c) General License Authority for Travel-Related 
     Expenditures by Persons Engaging in Hydrocarbon Exploration 
     and Extraction Activities.--
       ``(1) In general.--The Secretary of the Treasury shall, 
     authorize under a general license the travel-related 
     transactions listed in section 515.560(c) of title 31, Code 
     of Federal Regulations, for travel to, from or within Cuba in 
     connection with exploration for and the extraction of 
     hydrocarbon resources in any part of a foreign maritime 
     Exclusive Economic Zone that is contiguous to the United 
     States' Exclusive Economic Zone.
       ``(2) Persons authorized.--Persons authorized to travel to 
     Cuba under this section include full-time employees, 
     executives, agents, and consultants of oil and gas producers, 
     distributors, and shippers.''.

     SEC. 304. MORATORIUM OF OIL AND GAS LEASING IN CERTAIN AREAS 
                   OF THE GULF OF MEXICO.

       (a) In General.--Section 104(a) of the Gulf of Mexico 
     Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 
     109-432) is amended--
       (1) by striking paragraph (1);
       (2) in paragraph (2), by striking ``125 miles'' and 
     inserting ``45 miles'';
       (3) in paragraph (3), by striking ``100 miles'' each place 
     it appears and inserting ``45 miles''; and
       (4) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively.
       (b) Regulations.--
       (1) In general.--The Secretary of the Interior shall 
     promulgate regulations that establish appropriate 
     environmental safeguards for the exploration and production 
     of oil and natural gas on the outer Continental Shelf.
       (2) Minimum requirements.--At a minimum, the regulations 
     shall include--
       (A) provisions requiring surety bonds of sufficient value 
     to ensure the mitigation of any foreseeable incident;
       (B) provisions assigning liability to the leaseholder in 
     the event of an incident causing damage or loss, regardless 
     of the negligence of the leaseholder or lack of negligence;
       (C) provisions no less stringent than those contained in 
     the Spill Prevention, Control, and Countermeasure regulations 
     promulgated under the Oil Pollution Act of 1990 (33 U.S.C. 
     2701 et seq.);
       (D) provisions ensuring that--
       (i) no facility for the exploration or production of 
     resources is visible to the unassisted eye from any shore of 
     any coastal State; and
       (ii) the impact of offshore production facilities on 
     coastal vistas is otherwise mitigated;
       (E) provisions to ensure, to the maximum extent 
     practicable, that exploration and production activities will 
     result in no significant adverse effect on fish or wildlife 
     (including habitat), subsistence resources, or the 
     environment; and
       (F) provisions that will impose seasonal limitations on 
     activity to protect breeding, spawning, and wildlife 
     migration patterns.
       (c) Conforming Amendment.--Section 105 of the Department of 
     the Interior, Environment, and Related Agencies 
     Appropriations Act, 2006 (Public Law 109-54; 119 Stat. 521) 
     (as amended by section 103(d) of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432)) is amended by inserting ``and any other area that the 
     Secretary of the Interior may offer for leasing, preleasing, 
     or any related activity under section 104 of that Act'' after 
     ``2006)''.

     SEC. 305. INVENTORY OF OUTER CONTINENTAL SHELF OIL AND 
                   NATURAL GAS RESOURCES OFF SOUTHEASTERN COAST OF 
                   THE UNITED STATES.

       (a) In General.--The Secretary of the Interior (referred to 
     in this section as the ``Secretary'') may conduct an 
     inventory of oil and natural gas resources beneath the waters 
     of the outer Continental Shelf (as defined in section 2 of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1331)) off 
     of the coast of the States of Virginia, North Carolina, South 
     Carolina, or Georgia in accordance with this section.
       (b) Best Available Technology.--In conducting the 
     inventory, the Secretary shall use the best technology 
     available to obtain accurate resource estimates.
       (c) Request by Governor.--The Secretary may conduct an 
     inventory under this section off the coast of a State 
     described in subsection (a) only if the Governor of the State 
     requests the inventory.
       (d) Reports.--The Secretary shall submit to Congress and 
     the requesting Governor a report on any inventory conducted 
     under this section.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 306. ENHANCED OIL RECOVERY.

       Section 354(c)(4)(B) of the Energy Policy Act of 2005 (42 
     U.S.C. 15910(c)(4)(B)) is amended--
       (1) in clause (iii), by striking ``and'' at the end;
       (2) in clause (iv), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(v) are carried out in geologically challenging 
     fields.''.

[[Page S3133]]

                  TITLE IV--MANAGEMENT OF ENERGY RISKS

     SEC. 401. BUREAU OF INTERNATIONAL ENERGY POLICY.

       Section 101 of the National Security Act of 1947 (50 U.S.C. 
     402) is amended by adding at the end the following:
       (1) by redesignating subsection (i) (as added by section 
     301 of Public Law 105-292 (112 Stat. 2800)) as subsection 
     (k); and
       (2) by adding at the end the following:
       ``(l) Bureau of International Energy Policy.--
       ``(1) Establishment.--There is established within the 
     National Security Council a Bureau of International Energy.
       ``(2) Duties.--The Bureau shall, in conjunction with the 
     Secretary of Defense, the Secretary of State, and the 
     Secretary of Energy, prepare and submit to Congress an annual 
     energy security report.''.

     SEC. 402. STRATEGIC ENERGY INFRASTRUCTURE EQUIPMENT RESERVE.

       (a) Establishment.--The Secretary may establish and operate 
     a strategic energy infrastructure equipment reserve.
       (b) Use.--The reserve shall be used and operated for--
       (1) the protection, conservation, maintenance, and testing 
     of strategic energy infrastructure equipment; and
       (2) the provision of strategic energy infrastructure 
     equipment whenever and to the extent that--
       (A) the Secretary, with the approval of the President, 
     finds that the equipment is needed for energy security 
     purposes; and
       (B) the provision of the equipment is authorized by a joint 
     resolution of Congress.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
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