[Congressional Record Volume 154, Number 107 (Thursday, June 26, 2008)]
[Senate]
[Pages S6287-S6290]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCONNELL (for himself, Mr. Alexander, Mr. Allard, Mr. 
        Barrasso, Mr. Bennett, Mr. Bond, Mr. Brownback, Mr. Bunning, 
        Mr. Burr, Mr. Chambliss, Mr. Coburn, Mr. Cochran, Mr. Coleman, 
        Mr. Corker, Mr. Cornyn, Mr. Craig, Mr. Crapo, Mr. DeMint, Mrs. 
        Dole, Mr. Domenici, Mr. Ensign, Mr. Enzi, Mr. Graham, Mr. 
        Grassley, Mr. Gregg, Mr. Hatch, Mrs. Hutchison, Mr. Inhofe, Mr. 
        Isakson, Mr. Kyl, Mr. Lugar, Mr. Martinez, Ms. Murkowski, Mr. 
        Roberts, Mr. Sessions, Mr. Shelby, Mr. Specter, Mr. Stevens, 
        Mr. Sununu, Mr. Thune, Mr. Vitter, Mr. Voinovich, Mr. Warner, 
        and Mr. Wicker):
  S. 3202. A bill to address record high gas prices at the pump, and 
for other purposes; read the first time.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                S. 3202

       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 ``Gas Price 
     Reduction Act of 2008''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                     TITLE I--DEEP SEA EXPLORATION

Sec. 101. Publication of projected State lines on outer Continental 
              Shelf.
Sec. 102. Production of oil and natural gas in new producing areas.
Sec. 103. Conforming amendments.

             TITLE II--WESTERN STATE OIL SHALE EXPLORATION

Sec. 201. Removal of prohibition on final regulations for commercial 
              leasing program for oil shale resources on public land.

              TITLE III--PLUG-IN ELECTRIC CARS AND TRUCKS

Sec. 301. Advanced batteries for electric drive vehicles.

                   TITLE IV--ENERGY COMMODITY MARKETS

Sec. 401. Study of international regulation of energy commodity 
              markets.
Sec. 402. Foreign boards of trade.
Sec. 403. Index traders and swap dealers; disaggregation of index 
              funds.
Sec. 404. Improved oversight and enforcement.

                     TITLE I--DEEP SEA EXPLORATION

     SEC. 101. PUBLICATION OF PROJECTED STATE LINES ON OUTER 
                   CONTINENTAL SHELF.

       Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1333(a)(2)(A)) is amended--
       (1) by designating the first, second, and third sentences 
     as clause (i), (iii), and (iv), respectively;
       (2) in clause (i) (as so designated), by inserting before 
     the period at the end the following: ``not later than 90 days 
     after the date of enactment of the Gas Price Reduction Act of 
     2008''; and
       (3) by inserting after clause (i) (as so designated) the 
     following:
       ``(ii)(I) The projected lines shall also be used for the 
     purpose of preleasing and leasing activities conducted in new 
     producing areas under section 32.

[[Page S6288]]

       ``(II) This clause shall not affect any property right or 
     title to Federal submerged land on the outer Continental 
     Shelf.
       ``(III) In carrying out this clause, the President shall 
     consider the offshore administrative boundaries beyond State 
     submerged lands for planning, coordination, and 
     administrative purposes of the Department of the Interior, 
     but may establish different boundaries.''.

     SEC. 102. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING 
                   AREAS.

       The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING 
                   AREAS.

       ``(a) Definitions.--In this section:
       ``(1) Coastal political subdivision.--The term `coastal 
     political subdivision' means a political subdivision of a new 
     producing State any part of which political subdivision is--
       ``(A) within the coastal zone (as defined in section 304 of 
     the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of 
     the new producing State as of the date of enactment of this 
     section; and
       ``(B) not more than 200 nautical miles from the geographic 
     center of any leased tract.
       ``(2) Moratorium area.--
       ``(A) In general.--The term `moratorium area' means an area 
     covered by sections 104 through 105 of the Department of the 
     Interior, Environment, and Related Agencies Appropriations 
     Act, 2008 (Public Law 110-161; 121 Stat. 2118) (as in effect 
     on the day before the date of enactment of this section).
       ``(B) Exclusion.--The term `moratorium area' does not 
     include an area located in the Gulf of Mexico.
       ``(3) New producing area.--The term `new producing area' 
     means any moratorium area within the offshore administrative 
     boundaries beyond the submerged land of a State that is 
     located greater than 50 miles from the coastline of the 
     State.
       ``(4) New producing state.--The term `new producing State' 
     means a State that has, within the offshore administrative 
     boundaries beyond the submerged land of the State, a new 
     producing area available for oil and gas leasing under 
     subsection (b).
       ``(5) Offshore administrative boundaries.--The term 
     `offshore administrative boundaries' means the administrative 
     boundaries established by the Secretary beyond State 
     submerged land for planning, coordination, and administrative 
     purposes of the Department of the Interior and published in 
     the Federal Register on January 3, 2006 (71 Fed. Reg. 127).
       ``(6) Qualified outer continental shelf revenues.--
       ``(A) In general.--The term `qualified outer Continental 
     Shelf revenues' means all rentals, royalties, bonus bids, and 
     other sums due and payable to the United States from leases 
     entered into on or after the date of enactment of this 
     section for new producing areas.
       ``(B) Exclusions.--The term `qualified outer Continental 
     Shelf revenues' does not include--
       ``(i) revenues from a bond or other surety forfeited for 
     obligations other than the collection of royalties;
       ``(ii) revenues from civil penalties;
       ``(iii) royalties taken by the Secretary in-kind and not 
     sold;
       ``(iv) revenues generated from leases subject to section 
     8(g); or
       ``(v) any revenues considered qualified outer Continental 
     Shelf revenues under section 102 of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432).
       ``(b) Petition for Leasing New Producing Areas.--
       ``(1) In general.--Beginning on the date on which the 
     President delineates projected State lines under section 
     4(a)(2)(A)(ii), the Governor of a State, with the concurrence 
     of the legislature of the State, with a new producing area 
     within the offshore administrative boundaries beyond the 
     submerged land of the State may submit to the Secretary a 
     petition requesting that the Secretary make the new producing 
     area available for oil and gas leasing.
       ``(2) Action by secretary.--Notwithstanding section 18, as 
     soon as practicable after receipt of a petition under 
     paragraph (1), the Secretary shall approve the petition if 
     the Secretary determines that leasing the new producing area 
     would not create an unreasonable risk of harm to the marine, 
     human, or coastal environment.
       ``(c) Disposition of Qualified Outer Continental Shelf 
     Revenues From New Producing Areas.--
       ``(1) In general.--Notwithstanding section 9 and subject to 
     the other provisions of this subsection, for each applicable 
     fiscal year, the Secretary of the Treasury shall deposit--
       ``(A) 50 percent of qualified outer Continental Shelf 
     revenues in the general fund of the Treasury; and
       ``(B) 50 percent of qualified outer Continental Shelf 
     revenues in a special account in the Treasury from which the 
     Secretary shall disburse--
       ``(i) 75 percent to new producing States in accordance with 
     paragraph (2); and
       ``(ii) 25 percent to provide financial assistance to States 
     in accordance with section 6 of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. 460l -8), which 
     shall be considered income to the Land and Water Conservation 
     Fund for purposes of section 2 of that Act (16 U.S.C. 460l-
     5).
       ``(2) Allocation to new producing states and coastal 
     political subdivisions.--
       ``(A) Allocation to new producing states.--Effective for 
     fiscal year 2008 and each fiscal year thereafter, the amount 
     made available under paragraph (1)(B)(i) shall be allocated 
     to each new producing State in amounts (based on a formula 
     established by the Secretary by regulation) proportional to 
     the amount of qualified outer Continental Shelf revenues 
     generated in the new producing area offshore each State.
       ``(B) Payments to coastal political subdivisions.--
       ``(i) In general.--The Secretary shall pay 20 percent of 
     the allocable share of each new producing State, as 
     determined under subparagraph (A), to the coastal political 
     subdivisions of the new producing State.
       ``(ii) Allocation.--The amount paid by the Secretary to 
     coastal political subdivisions shall be allocated to each 
     coastal political subdivision in accordance with the 
     regulations promulgated under subparagraph (A).
       ``(3) Minimum allocation.--The amount allocated to a new 
     producing State for each fiscal year under paragraph (2) 
     shall be at least 5 percent of the amounts available for the 
     fiscal year under paragraph (1)(B)(i).
       ``(4) Timing.--The amounts required to be deposited under 
     subparagraph (B) of paragraph (1) for the applicable fiscal 
     year shall be made available in accordance with that 
     subparagraph during the fiscal year immediately following the 
     applicable fiscal year.
       ``(5) Authorized uses.--
       ``(A) In general.--Subject to subparagraph (B), each new 
     producing State and coastal political subdivision shall use 
     all amounts received under paragraph (2) in accordance with 
     all applicable Federal and State laws, only for 1 or more of 
     the following purposes:
       ``(i) Projects and activities for the purposes of coastal 
     protection, including conservation, coastal restoration, 
     hurricane protection, and infrastructure directly affected by 
     coastal wetland losses.
       ``(ii) Mitigation of damage to fish, wildlife, or natural 
     resources.
       ``(iii) Implementation of a federally approved marine, 
     coastal, or comprehensive conservation management plan.
       ``(iv) Funding of onshore infrastructure projects.
       ``(v) Planning assistance and the administrative costs of 
     complying with this section.
       ``(B) Limitation.--Not more than 3 percent of amounts 
     received by a new producing State or coastal political 
     subdivision under paragraph (2) may be used for the purposes 
     described in subparagraph (A)(v).
       ``(6) Administration.--Amounts made available under 
     paragraph (1)(B) shall--
       ``(A) be made available, without further appropriation, in 
     accordance with this subsection;
       ``(B) remain available until expended; and
       ``(C) be in addition to any amounts appropriated under--
       ``(i) other provisions of this Act;
       ``(ii) the Land and Water Conservation Fund Act of 1965 (16 
     U.S.C. 460l-4 et seq.); or
       ``(iii) any other provision of law.
       ``(d) Disposition of Qualified Outer Continental Shelf 
     Revenues From Other Areas.--Notwithstanding section 9, for 
     each applicable fiscal year, the terms and conditions of 
     subsection (c) shall apply to the disposition of qualified 
     outer Continental Shelf revenues that--
       ``(1) are derived from oil or gas leasing in an area that 
     is not included in the current 5-year plan of the Secretary 
     for oil or gas leasing; and
       ``(2) are not assumed in the budget of the United States 
     Government submitted by the President under section 1105 of 
     title 31, United States Code.''.

     SEC. 103. CONFORMING AMENDMENTS.

       Sections 104 and 105 of the Department of the Interior, 
     Environment, and Related Agencies Appropriations Act, 2008 
     (Public Law 110-161; 121 Stat. 2118) are amended by striking 
     ``No funds'' each place it appears and inserting ``Except as 
     provided in section 32 of the Outer Continental Shelf Lands 
     Act, no funds''.

             TITLE II--WESTERN STATE OIL SHALE EXPLORATION

     SEC. 201. REMOVAL OF PROHIBITION ON FINAL REGULATIONS FOR 
                   COMMERCIAL LEASING PROGRAM FOR OIL SHALE 
                   RESOURCES ON PUBLIC LAND.

       Section 433 of the Department of the Interior, Environment, 
     and Related Agencies Appropriations Act, 2008 (Public Law 
     110-161; 121 Stat. 2152) is repealed.

              TITLE III--PLUG-IN ELECTRIC CARS AND TRUCKS

     SEC. 301. ADVANCED BATTERIES FOR ELECTRIC DRIVE VEHICLES.

       (a) Definitions.--In this section:
       (1) Advanced battery.--The term ``advanced battery'' means 
     an electrical storage device that is suitable for a vehicle 
     application.
       (2) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the cost of engineering tasks 
     relating to--
       (A) the incorporation of qualifying components into the 
     design of an advanced battery; and
       (B) the design of tooling and equipment and the development 
     of manufacturing processes and material for suppliers of 
     production facilities that produce qualifying components or 
     advanced batteries.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (b) Advanced Battery Research and Development.--

[[Page S6289]]

       (1) In general.--The Secretary shall--
       (A) expand and accelerate research and development efforts 
     for advanced batteries; and
       (B) emphasize lower cost means of producing abuse-tolerant 
     advanced batteries with the appropriate balance of power and 
     energy capacity to meet market requirements.
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $100,000,000 
     for each of fiscal years 2010 through 2014.
       (c) Direct Loan Program.--
       (1) In general.--Subject to the availability of 
     appropriated funds, not later than 1 year after the date of 
     enactment of this Act, the Secretary shall carry out a 
     program to provide a total of not more than $250,000,000 in 
     loans to eligible individuals and entities for not more than 
     30 percent of the costs of 1 or more of--
       (A) reequipping a manufacturing facility in the United 
     States to produce advanced batteries;
       (B) expanding a manufacturing facility in the United States 
     to produce advanced batteries; or
       (C) establishing a manufacturing facility in the United 
     States to produce advanced batteries.
       (2) Eligibility.--
       (A) In general.--To be eligible to obtain a loan under this 
     subsection, an individual or entity shall--
       (i) be financially viable without the receipt of additional 
     Federal funding associated with a proposed project under this 
     subsection;
       (ii) provide sufficient information to the Secretary for 
     the Secretary to ensure that the qualified investment is 
     expended efficiently and effectively; and
       (iii) meet such other criteria as may be established and 
     published by the Secretary.
       (B) Consideration.--In selecting eligible individuals or 
     entities for loans under this subsection, the Secretary may 
     consider whether the proposed project of an eligible 
     individual or entity under this subsection would--
       (i) reduce manufacturing time;
       (ii) reduce manufacturing energy intensity;
       (iii) reduce negative environmental impacts or byproducts; 
     or
       (iv) increase spent battery or component recycling
       (3) Rates, terms, and repayment of loans.--A loan provided 
     under this subsection--
       (A) shall have an interest rate that, as of the date on 
     which the loan is made, is equal to the cost of funds to the 
     Department of the Treasury for obligations of comparable 
     maturity;
       (B) shall have a term that is equal to the lesser of--
       (i) the projected life, in years, of the eligible project 
     to be carried out using funds from the loan, as determined by 
     the Secretary; or
       (ii) 25 years; and
       (C) may be subject to a deferral in repayment for not more 
     than 5 years after the date on which the eligible project 
     carried out using funds from the loan first begins 
     operations, as determined by the Secretary.
       (4) Period of availability.--A loan under this subsection 
     shall be available for--
       (A) facilities and equipment placed in service before 
     December 30, 2020; and
       (B) engineering integration costs incurred during the 
     period beginning on the date of enactment of this Act and 
     ending on December 30, 2020.
       (5) Fees.--The cost of administering a loan made under this 
     subsection shall not exceed $100,000.
       (6) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this subsection for each of fiscal years 2009 through 2013.
       (d) Sense of the Senate on Purchase of Plug-in Electric 
     Drive Vehicles.--It is the sense of the Senate that, to the 
     maximum extent practicable, the Federal Government should 
     implement policies to increase the purchase of plug-in 
     electric drive vehicles by the Federal Government.

                   TITLE IV--ENERGY COMMODITY MARKETS

     SEC. 401. STUDY OF INTERNATIONAL REGULATION OF ENERGY 
                   COMMODITY MARKETS.

       (a) In General.--The Secretary of the Treasury, the 
     Chairman of the Board of Governors of the Federal Reserve 
     System, the Chairman of the Securities and Exchange 
     Commission, and the Chairman of the Commodity Futures Trading 
     Commission shall jointly conduct a study of the international 
     regime for regulating the trading of energy commodity futures 
     and derivatives.
       (b) Analysis.--The study shall include an analysis of, at a 
     minimum--
       (1) key common features and differences among countries in 
     the regulation of energy commodity trading, including with 
     respect to market oversight and enforcement;
       (2) agreements and practices for sharing market and trading 
     data;
       (3) the use of position limits or thresholds to detect and 
     prevent price manipulation, excessive speculation as 
     described in section 4a(a) of the Commodity Exchange Act (7 
     U.S.C. 6a(a)) or other unfair trading practices;
       (4) practices regarding the identification of commercial 
     and noncommercial trading and the extent of market 
     speculation; and
       (5) agreements and practices for facilitating international 
     cooperation on market oversight, compliance, and enforcement.
       (c) Report.--Not later than 120 days after the date of 
     enactment of this Act, the heads of the Federal agencies 
     described in subsection (a) shall jointly submit to the 
     appropriate committees of Congress a report that--
       (1) describes the results of the study; and
       (2) provides recommendations to improve openness, 
     transparency, and other necessary elements of a properly 
     functioning market.

     SEC. 402. FOREIGN BOARDS OF TRADE.

       Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is 
     amended by adding at the end the following:
       ``(e) Foreign Boards of Trade.--
       ``(1) In general.--The Commission shall not permit a 
     foreign board of trade's members or other participants 
     located in the United States to enter trades directly into 
     the foreign board of trade's trade matching system with 
     respect to an agreement, contract, or transaction in an 
     energy commodity (as defined by the Commission) that settles 
     against any price, including the daily or final settlement 
     price, of a contract or contracts listed for trading on a 
     registered entity, unless--
       ``(A) the foreign board of trade makes public daily 
     information on settlement prices, volume, open interest, and 
     opening and closing ranges for the agreement, contract, or 
     transaction that is comparable to the daily trade information 
     published by the registered entity for the contract or 
     contracts against which it settles;
       ``(B) the foreign board of trade or a foreign futures 
     authority adopts position limitations (including related 
     hedge exemption provisions) or position accountability for 
     speculators for the agreement, contract, or transaction that 
     are comparable to the position limitations (including related 
     hedge exemption provisions) or position accountability 
     adopted by the registered entity for the contract or 
     contracts against which it settles; and
       ``(C) the foreign board of trade or a foreign futures 
     authority provides such information to the Commission 
     regarding the extent of speculative and non-speculative 
     trading in the agreement, contract, or transaction that is 
     comparable to the information the Commission determines is 
     necessary to publish its weekly report of traders (commonly 
     known as the Commitments of Traders report) for the contract 
     or contracts against which it settles.
       ``(2) Existing foreign boards of trade.--Paragraph (1) 
     shall become effective 1 year after the date of enactment of 
     this subsection with respect to any agreement, contract, or 
     transaction in an energy commodity (as defined by the 
     Commission) conducted on a foreign board of trade for which 
     the Commission's staff had granted relief from the 
     requirements of this Act prior to the date of enactment of 
     this subsection.''.

     SEC. 403. INDEX TRADERS AND SWAP DEALERS; DISAGGREGATION OF 
                   INDEX FUNDS.

       Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as 
     amended by section 3) is amended by adding at the end the 
     following:
       ``(f) Index Traders and Swap Dealers.--
       ``(1) Reporting.--The Commission shall--
       ``(A) issue a proposed rule regarding routine reporting 
     requirements for index traders and swap dealers (as those 
     terms are defined by the Commission) in energy and 
     agricultural transactions (as those terms are defined by the 
     Commission) within the jurisdiction of the Commission not 
     later than 180 days after the date of enactment of this 
     subsection, and issue a final rule regarding such reporting 
     requirements not later than 270 days after the date of 
     enactment of this subsection; and
       ``(B) subject to the provisions of section 8, disaggregate 
     and make public monthly information on the positions and 
     value of index funds and other passive, long-only positions 
     in the energy and agricultural futures markets.
       ``(2) Report.--Not later than 90 days after the date of 
     enactment of this subsection, the Commission shall submit to 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate a report regarding--
       ``(A) the scope of commodity index trading in the futures 
     markets;
       ``(B) whether classification of index traders and swap 
     dealers in the futures markets can be improved for regulatory 
     and reporting purposes; and
       ``(C) whether, based on a review of the trading practices 
     for index traders in the futures markets--
       ``(i) index trading activity is adversely impacting the 
     price discovery process in the futures markets; and
       ``(ii) different practices and controls should be 
     required.''.

     SEC. 404. IMPROVED OVERSIGHT AND ENFORCEMENT.

       (a) Findings.--The Senate finds that--
       (1) crude oil prices are at record levels and consumers in 
     the United States are paying record prices for gasoline;
       (2) funding for the Commodity Futures Trading Commission 
     has been insufficient to cover the significant growth of the 
     futures markets;
       (3) since the establishment of the Commodity Futures 
     Trading Commission, the volume of trading on futures 
     exchanges has grown 8,000 percent while staffing numbers have 
     decreased 12 percent; and

[[Page S6290]]

       (4) in today's dynamic market environment, it is essential 
     that the Commodity Futures Trading Commission receive the 
     funding necessary to enforce existing authority to ensure 
     that all commodity markets, including energy markets, are 
     properly monitored for market manipulation.
       (b) Additional Employees.--As soon as practicable after the 
     date of enactment of this Act, the Commodity Futures Trading 
     Commission shall hire at least 100 additional full-time 
     employees--
       (1) to increase the public transparency of operations in 
     energy futures markets;
       (2) to improve the enforcement in those markets; and
       (3) to carry out such other duties as are prescribed by the 
     Commission.
       (c) Authorization of Appropriations.--In addition to any 
     other funds made available to carry out the Commodity 
     Exchange Act (7 U.S.C. 1 et seq.), there are authorized to be 
     appropriated such sums as are necessary to carry out this 
     section for fiscal year 2009.
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