[Congressional Record Volume 153, Number 103 (Monday, June 25, 2007)]
[Senate]
[Pages S8369-S8370]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        PRIVILEGES OF THE FLOOR

  Mr. HARKIN. Mr. President, I ask unanimous consent that Amber Fricke 
and Theresa Loth of my staff be granted the privileges of the floor for 
the duration of today's session.
  The PRESIDING OFFICER. Without objection, it is so ordered.


 =========================== NOTE =========================== 

  
  On Page S8369, June 25, 2007, the following appeared in the 
Record: CREATING LONG-TERM ENERGY ALTERNATIVES FOR THE NATION ACT 
OF 2007
  
  On Thursday, June 21, 2007, the Senate passed H.R. 6, as 
amended, as follows:
  
  H.R. 6
  
  Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
  
  SECTION 1. SHORT TITLE.
  
  This Act may be cited as the ``Creating Long-Term Energy 
Alternatives for the Nation Act of 2007'' or the ``CLEAN Energy 
Act of 2007''.
  
  TITLE I--DENIAL OF OIL AND GAS TAX BENEFITS
  
  SEC. 101. SHORT TITLE.
  
  This title may be cited as the ``Ending Subsidies for Big Oil 
Act of 2007''.
  
  SEC. 102. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
DOMESTIC PRODUCTION OF OIL, NATURAL GAS, OR PRIMARY PRODUCTS 
THEREOF.
  
  (a) In General.--Subparagraph (B) of section 199(c)(4) of the 
Internal Revenue Code of 1986 (relating to exceptions) is amended 
by striking ``or'' at the end of clause (ii), by striking the 
period at the end of clause (iii) and inserting ``, or'', and by 
inserting after clause (iii) the following new clause:
  
  ``(iv) the sale, exchange, or other disposition of oil, natural 
gas, or any primary product thereof.''.
  
  (b) Primary Product.--Section 199(c)(4)(B) of such Code is 
amended by adding at the end the following flush sentence:
  
  ``For purposes of clause (iv), the term `primary product' has 
the same meaning as when used in section 927(a)(2)(C), as in 
effect before its repeal.''.
  
  (c) Conforming Amendments.--Section 199(c)(4) of such Code is 
amended--
  
  (1) in subparagraph (A)(i)(III) by striking ``electricity, 
natural gas,'' and inserting ``electricity'', and
  
  (2) in subparagraph (B)(ii) by striking ``electricity, natural 
gas,'' and inserting ``electricity''.
  
  (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.
  
  SEC. 103. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL COMPANIES.
  
  (a) In General.--Subparagraph (A) of section 167(h)(5) of the 
Internal Revenue Code of 1986 (relating to special rule for major 
integrated oil companies) is amended by striking ``5-year'' and 
inserting ``7-year''.
  
  (b) Effective Date.--The amendment made by this section shall 
apply to amounts paid or incurred after the date of the enactment 
of this Act.
  
  TITLE II--ROYALTIES UNDER OFFSHORE OIL AND GAS LEASES
  
  SEC. 201. SHORT TITLE.
  
  This title may be cited as the ``Royalty Relief for American 
Consumers Act of 2007''.
  
  SEC. 202. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.
  
  The Secretary of the Interior shall agree to a request by any 
lessee to amend any lease issued for any Central and Western Gulf 
of Mexico tract during the period of January 1, 1998, through 
December 31, 1999, to incorporate price thresholds applicable to 
royalty suspension provisions, that are equal to or less than the 
price thresholds described in clauses (v) through (vii) of section 
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(C)). Any amended lease shall impose the new or revised 
price thresholds effective October 1, 2006. Existing lease 
provisions shall prevail through September 30, 2006.
  
  SEC. 203. CLARIFICATION OF AUTHORITY TO IMPOSE PRICE THRESHOLDS 
FOR CERTAIN LEASE SALES.
  
  Congress reaffirms the authority of the Secretary of the 
Interior under section 8(a)(1)(H) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(1)(H)) to vary, based on the price of 
production from a lease, the suspension of royalties under any 
lease subject to section 304 of the Outer Continental Shelf Deep 
Water Royalty Relief Act (Public Law 104-58; 43 U.S.C. 1337 note).
  
  SEC. 204. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES; 
CONSERVATION OF RESOURCES FEES.
  
  (a) Issuance of New Leases.--
  
  (1) In general.--The Secretary shall not issue any new lease 
that authorizes the production of oil or natural gas in the Gulf 
of Mexico under the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.) to a person described in paragraph (2) unless--
  
  (A) the person has renegotiated each covered lease with respect 
to which the person is a lessee, to modify the payment 
responsibilities of the person to include price thresholds that 
are equal to or less than the price thresholds described in 
clauses (v) through (vii) of section 8(a)(3)(C) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); or
  
  (B) the person has--
  
  The online Record has been corrected to delete the above-
mentioned material.


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[[Page S8370]]



 =========================== NOTE =========================== 

  
  On Page S8370, June 25, 2007, the following appeared in the 
Record:
  
  (i) paid all fees established by the Secretary under subsection 
(b) that are due with respect to each covered lease for which the 
person is a lessee; or
  
  (ii) entered into an agreement with the Secretary under which 
the person is obligated to pay such fees.
  
  (2) Persons described.--A person referred to in paragraph (1) is 
a person that--
  
  (A) is a lessee that--
  
  (i) holds a covered lease on the date on which the Secretary 
considers the issuance of the new lease; or
  
  (ii) was issued a covered lease before the date of enactment of 
this Act, but transferred the covered lease to another person or 
entity (including a subsidiary or affiliate of the lessee) after 
the date of enactment of this Act; or
  
  (B) any other person or entity who has any direct or indirect 
interest in, or who derives any benefit from, a covered lease;
  
  (3) Multiple lessees.--
  
  (A) In general.--For purposes of paragraph (1), if there are 
multiple lessees that own a share of a covered lease, the 
Secretary may implement separate agreements with any lessee with a 
share of the covered lease that modifies the payment 
responsibilities with respect to the share of the lessee to 
include price thresholds that are equal to or less than the price 
thresholds described in clauses (v) through (vii) of section 
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(C)).
  
  (B) Treatment of share as covered lease.--Beginning on the 
effective date of an agreement under subparagraph (A), any share 
subject to the agreement shall not constitute a covered lease with 
respect to any lessees that entered into the agreement.
  
  (b) Conservation of Resources Fees.--
  
  (1) In general.--Not later than 60 days after the date of 
enactment of this Act, the Secretary of the Interior by regulation 
shall establish--
  
  (A) a conservation of resources fee for producing Federal oil 
and gas leases in the Gulf of Mexico; and
  
  (B) a conservation of resources fee for nonproducing Federal oil 
and gas leases in the Gulf of Mexico.
  
  (2) Producing lease fee terms.--The fee under paragraph (1)(A)--
  
  (A) subject to subparagraph (C), shall apply to covered leases 
that are producing leases;
  
  (B) shall be set at $9 per barrel for oil and $1.25 per million 
Btu for gas, respectively, in 2005 dollars; and
  
  (C) shall apply only to production of oil or gas occurring--
  
  (i) in any calendar year in which the arithmetic average of the 
daily closing prices for light sweet crude oil on the New York 
Mercantile Exchange (NYMEX) exceeds $34.73 per barrel for oil and 
$4.34 per million Btu for gas in 2005 dollars; and
  
  (ii) on or after October 1, 2006.
  
  (3) Nonproducing lease fee terms.--The fee under paragraph 
(1)(B)--
  
  (A) subject to subparagraph (C), shall apply to leases that are 
nonproducing leases;
  
  (B) shall be set at $3.75 per acre per year in 2005 dollars; and
  
  (C) shall apply on and after October 1, 2006.
  
  (4) Treatment of receipts.--Amounts received by the United 
States as fees under this subsection shall be treated as 
offsetting receipts.
  
  (c) Transfers.--A lessee or any other person who has any direct 
or indirect interest in, or who derives a benefit from, a lease 
shall not be eligible to obtain by sale or other transfer 
(including through a swap, spinoff, servicing, or other agreement) 
any covered lease, the economic benefit of any covered lease, or 
any other lease for the production of oil or natural gas in the 
Gulf of Mexico under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.), unless--
  
  (1) the lessee or other person has
  
  (A) renegotiated all covered leases of the lessee or other 
person; and
  
  (B) entered into an agreement with the Secretary to modify the 
terms of all covered leases of the lessee or other person to 
include limitations on royalty relief based on market prices that 
are equal to or less than the price thresholds described in 
clauses (v) through (vii) of section 8(a)(3)(C) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); or
  
  (2) the lessee or other person has--
  
  (A) paid all fees established by the Secretary under subsection 
(b) that are due with respect to each covered lease for which the 
person is a lessee; or
  
  (B) entered into an agreement with the Secretary under which the 
person is obligated to pay such fees.
  
  (d) Definitions.--In this section--
  
  (1) Covered lease.--The term ``covered lease'' means a lease for 
oil or gas production in the Gulf of Mexico that is--
  
  (A) in existence on the date of enactment of this Act;
  
  (B) issued by the Department of the Interior under section 304 
of the Outer Continental Shelf Deep Water Royalty Relief Act (43 
U.S.C. 1337 note; Public Law 104-58); and (C) not subject to 
limitations on royalty relief based on market price that are equal 
to or less than the price thresholds described in clauses (v) 
through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(3)(C)).
  
  (2) Lessee.--The term ``lessee'' includes any person or other 
entity that controls, is controlled by, or is in or under common 
control with, a lessee.
  
  (3) Secretary.--The term ``Secretary'' means the Secretary of 
the Interior.
  
  SEC. 205. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF 
FOR THE OIL AND GAS INDUSTRY.
  
  (a) Repeal of Provisions of Energy Policy Act of 2005.--The 
following provisions of the Energy Policy Act of 2005 (Public Law 
109-58) are repealed:
  
  (1) Section 344 (42 U.S.C. 15904; relating to incentives for 
natural gas production from deep wells in shallow waters of the 
Gulf of Mexico).
  
  (2) Section 345 (42 U.S.C. 15905; relating to royalty relief for 
deep water production in the Gulf of Mexico).
  
  (3) Subsection (i) of section 365 (42 U.S.C. 15924; relating to 
the prohibition on drilling-related permit application cost 
recovery fees).
  
  (b) Provisions Relating to Planning Areas Offshore Alaska.--
Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)(3)(B)) is amended by striking ``and in the Planning 
Areas offshore Alaska'' after ``West longitude''.
  
  (c) Provisions Relating to Naval Petroleum Reserve in Alaska.--
Section 107 of the Naval Petroleum Reserves Production Act of 1976 
(as transferred, redesignated, moved, and amended by section 347 
of the Energy Policy Act of 2005 (119 Stat. 704)) is amended--
  
  (1) in subsection (i) by striking paragraphs (2) through (6); 
and
  
  (2) by striking subsection (k).
  
  TITLE III--STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE
  
  SEC. 301. STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE FOR 
INVESTMENTS IN RENEWABLE ENERGY AND ENERGY EFFICIENCY.
  
  (a) In General.--For budgetary purposes, the additional Federal 
receipts by reason of the enactment of this Act shall be held in a 
separate account to be known as the ``Strategic Energy Efficiency 
and Renewables Reserve''. The Strategic Energy Efficiency and 
Renewables Reserve shall be available to offset the cost of 
subsequent legislation--
  
  (1) to accelerate the use of clean domestic renewable energy 
resources and alternative fuels;
  
  (2) to promote the utilization of energy-efficient products and 
practices and conservation; and
  
  (3) to increase research, development, and deployment of clean 
renewable energy and efficiency technologies.
  
  (b) Procedure for Adjustments.--
  
  (1) Budget committee chairman.--After the reporting of a bill or 
joint resolution, or the offering of an amendment thereto or the 
submission of a conference report thereon, providing funding for 
the purposes set forth in subsection (a) in excess of the amounts 
provided for those purposes for fiscal year 2007, the chairman of 
the Committee on the Budget of the applicable House of Congress 
shall make the adjustments set forth in paragraph (2) for the 
amount of new budget authority and outlays in that measure and the 
outlays flowing from that budget authority.
  
  (2) Matters to be adjusted.--The adjustments referred to in 
paragraph (1) are to be made to--
  
  (A) the discretionary spending limits, if any, set forth in the 
appropriate concurrent resolution on the budget;
  
  (B) the allocations made pursuant to the appropriate concurrent 
resolution on the budget pursuant to section 302(a) of the 
Congressional Budget Act of 1974; and
  
  (C) the budget aggregates contained in the appropriate 
concurrent resolution on the budget as required by section 301(a) 
of the Congressional Budget Act of 1974.
  
  (3) Amounts of adjustments.--The adjustments referred to in 
paragraphs (1) and (2) shall not exceed the receipts estimated by 
the Congressional Budget Office that are attributable to this Act 
for the fiscal year in which the adjustments are made.
  
  The online Record has been corrected to delete the above-
mentioned material.


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