[Congressional Record Volume 154, Number 122 (Thursday, July 24, 2008)]
[Senate]
[Pages S7304-S7432]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 5114. Mr. DOMENICI submitted an amendment intended to be proposed 
by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. FUNDING FOR SCIENTIFIC INVENTORY OF OIL AND GAS 
                   RESERVES.

       Section 604 of the Energy Act of 2000 (42 U.S.C. 6217) is 
     amended by adding at the end the following:
       ``(e) Funding.--On October 1, 2008, out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary of the Interior 
     $500,000,000 to carry out this section, without further 
     appropriation or fiscal year limitation.''.
                                 ______
                                 
  SA 5115. Mr. DOMENICI (for himself, Mr. Voinovich, and Mr. Inhofe) 
submitted an amendment intended to be proposed by him to the bill S. 
3268, to amend the Commodity Exchange Act, to prevent excessive price 
speculation with respect to energy commodities, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

       Section 526 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17142) is repealed.

     SEC. __. 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     110-161; 121 Stat. 2152) is repealed.
                                 ______
                                 
  SA 5116. Mr. DOMENICI submitted an amendment intended to be proposed 
by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``American 
     Energy Production Act of 2008''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

                     TITLE I--TRADITIONAL RESOURCES

                  Subtitle A--Outer Continental Shelf

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 amendment.

       Subtitle B--Leasing Program for Land Within Coastal Plain

Sec. 111. Definitions.
Sec. 112. Leasing program for land within the Coastal Plain.
Sec. 113. Lease sales.
Sec. 114. Grant of leases by the Secretary.
Sec. 115. Lease terms and conditions.
Sec. 116. Coastal Plain environmental protection.
Sec. 117. Expedited judicial review.
Sec. 118. Rights-of-way and easements across Coastal Plain.
Sec. 119. Conveyance.
Sec. 120. Local government impact aid and community service assistance.
Sec. 121. Prohibition on exports.
Sec. 122. Allocation of revenues.

                         Subtitle C--Permitting

Sec. 131. Refinery permitting process.
Sec. 132. Removal of additional fee for new applications for permits to 
              drill.

                Subtitle D--Restoration of State Revenue

Sec. 141. Restoration of State revenue.

                    TITLE II--ALTERNATIVE RESOURCES

       Subtitle A--Renewable Fuel and Advanced Energy Technology

Sec. 201. Definition of renewable biomass.

[[Page S7305]]

Sec. 202. Advanced battery manufacturing incentive program.
Sec. 203. Biofuels infrastructure and additives research and 
              development.
Sec. 204. Study of increased consumption of ethanol-blended gasoline 
              with higher levels of ethanol.
Sec. 205. Study of diesel vehicle attributes.

        Subtitle B--Clean Coal-Derived Fuels for Energy Security

Sec. 211. Short title.
Sec. 212. Definitions.
Sec. 213. Clean coal-derived fuel program.

                         Subtitle C--Oil Shale

Sec. 221. Removal of prohibition on final regulations for commercial 
              leasing program for oil shale resources on public land.

Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

Sec. 231. Procurement and acquisition of alternative fuels.
Sec. 232. Multiyear contract authority for the Department of Defense 
              for the procurement of synthetic fuels.

     SEC. 2. DEFINITION OF SECRETARY.

       In this Act, the term ``Secretary'' means the Secretary of 
     Energy.

                     TITLE I--TRADITIONAL RESOURCES

                  Subtitle A--Outer Continental Shelf

     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 American Energy Production 
     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.
       ``(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 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 
     subparagraphs (B) and (C) of section 31(b)(4).
       ``(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 under 
     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) Mitigation of the impact of outer Continental Shelf 
     activities through the 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

[[Page S7306]]

     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 AMENDMENT.

       Sections 104 through 105 of the Department of the Interior, 
     Environment, and Related Agencies Appropriations Act, 2008 
     (Public Law 110-161; 121 Stat. 2118) are repealed.

       Subtitle B--Leasing Program for Land Within Coastal Plain

     SEC. 111. DEFINITIONS.

       In this subtitle:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as the ``1002 Coastal Plain Area'' on the 
     map.
       (2) Federal agreement.--The term ``Federal Agreement'' 
     means the Federal Agreement and Grant Right-of-Way for the 
     Trans-Alaska Pipeline issued on January 23, 1974, in 
     accordance with section 28 of the Mineral Leasing Act (30 
     U.S.C. 185) and the Trans-Alaska Pipeline Authorization Act 
     (43 U.S.C. 1651 et seq.).
       (3) Final statement.--The term ``Final Statement'' means 
     the final legislative environmental impact statement on the 
     Coastal Plain, dated April 1987, and prepared pursuant to 
     section 1002 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3142) and section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).
       (4) Map.--The term ``map'' means the map entitled ``Arctic 
     National Wildlife Refuge'', dated September 2005, and 
     prepared by the United States Geological Survey.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior (or the designee of the Secretary), acting 
     through the Director of the Bureau of Land Management in 
     consultation with the Director of the United States Fish and 
     Wildlife Service and in coordination with a State coordinator 
     appointed by the Governor of the State of Alaska.

     SEC. 112. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

       (a) In General.--
       (1) Authorization.--Congress authorizes the exploration, 
     leasing, development, production, and economically feasible 
     and prudent transportation of oil and gas in and from the 
     Coastal Plain.
       (2) Actions.--The Secretary shall take such actions as are 
     necessary--
       (A) to establish and implement, in accordance with this 
     subtitle, a competitive oil and gas leasing program that will 
     result in an environmentally sound program for the 
     exploration, development, and production of the oil and gas 
     resources of the Coastal Plain while taking into 
     consideration the interests and concerns of residents of the 
     Coastal Plain, which is the homeland of the Kaktovikmiut 
     Inupiat; and
       (B) to administer this subtitle through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (i) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, subsistence resources, and the environment; and
       (ii) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production to all exploration, development, 
     and production operations under this subtitle in a manner 
     that ensures the receipt of fair market value by the public 
     for the mineral resources to be leased.
       (b) Repeal.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents contained 
     in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
     striking the item relating to section 1003.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
     seq.)--
       (A) the oil and gas pre-leasing and leasing program, and 
     activities authorized by this section in the Coastal Plain, 
     shall be considered to be compatible with the purposes for 
     which the Arctic National Wildlife Refuge was established; 
     and
       (B) no further findings or decisions shall be required to 
     implement that program and those activities.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The Final 
     Statement shall be considered to satisfy the requirements 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) that apply with respect to pre-leasing 
     activities, including exploration programs and actions 
     authorized to be taken by the Secretary to develop and 
     promulgate the regulations for the establishment of a leasing 
     program authorized by this subtitle before the conduct of the 
     first lease sale.
       (3) Compliance with nepa for other actions.--
       (A) In general.--Before conducting the first lease sale 
     under this subtitle, the Secretary shall prepare an 
     environmental impact statement in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with respect to the actions authorized by this subtitle 
     that are not referred to in paragraph (2).
       (B) Identification and analysis.--Notwithstanding any other 
     provision of law, in carrying out this paragraph, the 
     Secretary shall not be required--
       (i) to identify nonleasing alternative courses of action; 
     or
       (ii) to analyze the environmental effects of those courses 
     of action.
       (C) Identification of preferred action.--Not later than 18 
     months after the date of enactment of this Act, the Secretary 
     shall--
       (i) identify only a preferred action and a single leasing 
     alternative for the first lease sale authorized under this 
     subtitle; and
       (ii) analyze the environmental effects and potential 
     mitigation measures for those 2 alternatives.
       (D) Public comments.--In carrying out this paragraph, the 
     Secretary shall consider only public comments that are filed 
     not later than 20 days after the date of publication of a 
     draft environmental impact statement.
       (E) Effect of compliance.--Notwithstanding any other 
     provision of law, compliance with this paragraph shall be 
     considered to satisfy all requirements for the analysis and 
     consideration of the environmental effects of proposed 
     leasing under this subtitle.
       (d) Relationship to State and Local Authority.--Nothing in 
     this subtitle expands or limits any State or local regulatory 
     authority.
       (e) Special Areas.--
       (1) Designation.--
       (A) In general.--The Secretary, after consultation with the 
     State of Alaska, the North Slope Borough, Alaska, and the 
     City of Kaktovik, Alaska, may designate not more than 45,000 
     acres of the Coastal Plain as a special area if the Secretary 
     determines that the special area would be of such unique 
     character and interest as to require special management and 
     regulatory protection.
       (B) Sadlerochit spring area.--The Secretary shall designate 
     as a special area in accordance with subparagraph (A) the 
     Sadlerochit Spring area, comprising approximately 4,000 acres 
     as depicted on the map.
       (2) Management.--The Secretary shall manage each special 
     area designated under this subsection in a manner that--
       (A) respects and protects the Native people of the area; 
     and
       (B) preserves the unique and diverse character of the area, 
     including fish, wildlife, subsistence resources, and cultural 
     values of the area.
       (3) Exclusion from leasing or surface occupancy.--
       (A) In general.--The Secretary may exclude any special area 
     designated under this subsection from leasing.
       (B) No surface occupancy.--If the Secretary leases all or a 
     portion of a special area for the purposes of oil and gas 
     exploration, development, production, and related activities, 
     there shall be no surface occupancy of the land comprising 
     the special area.
       (4) Directional drilling.--Notwithstanding any other 
     provision of this subsection, the Secretary may lease all or 
     a portion of a special area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the special area.
       (f) Limitation on Closed Areas.--The Secretary may not 
     close land within the Coastal Plain to oil and gas leasing or 
     to exploration, development, or production except in 
     accordance with this subtitle.
       (g) Regulations.--
       (1) In general.--Not later than 15 months after the date of 
     enactment of this Act, in consultation with appropriate 
     agencies of the State of Alaska, the North Slope Borough, 
     Alaska, and the City of Kaktovik, Alaska, the Secretary shall 
     issue such regulations as are necessary to carry out this 
     subtitle, including rules and regulations relating to 
     protection of the fish and wildlife, fish and wildlife 
     habitat, and subsistence resources of the Coastal Plain.
       (2) Revision of regulations.--The Secretary may 
     periodically review and, as appropriate, revise the rules and 
     regulations issued under paragraph (1) to reflect any 
     significant scientific or engineering data that come to the 
     attention of the Secretary.

     SEC. 113. LEASE SALES.

       (a) In General.--Land may be leased pursuant to this 
     subtitle to any person qualified to obtain a lease for 
     deposits of oil and gas under the Mineral Leasing Act (30 
     U.S.C. 181 et seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after that nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this 
     subtitle shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--For the first lease 
     sale under this subtitle, the Secretary shall offer for lease 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons,

[[Page S7307]]

     taking into consideration nominations received pursuant to 
     subsection (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) not later than 22 months after the date of enactment of 
     this Act, conduct the first lease sale under this subtitle;
       (2) not later than September 30, 2012, conduct a second 
     lease sale under this subtitle; and
       (3) conduct additional sales at appropriate intervals if 
     sufficient interest in exploration or development exists to 
     warrant the conduct of the additional sales.

     SEC. 114. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--Upon payment by a lessee of such bonus as 
     may be accepted by the Secretary, the Secretary may grant to 
     the highest responsible qualified bidder in a lease sale 
     conducted pursuant to section 113 a lease for any land on the 
     Coastal Plain.
       (b) Subsequent Transfers.--
       (1) In general.--No lease issued under this subtitle may be 
     sold, exchanged, assigned, sublet, or otherwise transferred 
     except with the approval of the Secretary.
       (2) Condition for approval.--Before granting any approval 
     described in paragraph (1), the Secretary shall consult with 
     and give due consideration to the opinion of the Attorney 
     General.

     SEC. 115. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this subtitle shall--
       (1) provide for the payment of a royalty of not less than 
     16\1/2\ percent of the amount or value of the production 
     removed or sold from the lease, as determined by the 
     Secretary in accordance with regulations applicable to other 
     Federal oil and gas leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, such portions of the Coastal Plain to exploratory 
     drilling activities as are necessary to protect caribou 
     calving areas and other species of fish and wildlife;
       (3) require that each lessee of land within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of land within the Coastal Plain and any other 
     Federal land that is adversely affected in connection with 
     exploration, development, production, or transportation 
     activities within the Coastal Plain conducted by the lessee 
     or by any of the subcontractors or agents of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, that reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for land 
     required to be reclaimed under this subtitle shall be, to the 
     maximum extent practicable--
       (A) a condition capable of supporting the uses that the 
     land was capable of supporting prior to any exploration, 
     development, or production activities; or
       (B) upon application by the lessee, to a higher or better 
     standard, as approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, fish and wildlife habitat, subsistence 
     resources, and the environment as required under section 
     112(a)(2);
       (7) provide that each lessee, and each agent and contractor 
     of a lessee, use their best efforts to provide a fair share 
     of employment and contracting for Alaska Natives and Alaska 
     Native Corporations from throughout the State of Alaska, as 
     determined by the level of obligation previously agreed to in 
     the Federal Agreement; and
       (8) contain such other provisions as the Secretary 
     determines to be necessary to ensure compliance with this 
     subtitle and regulations issued under this subtitle.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this subtitle, and in 
     recognizing the proprietary interest of the Federal 
     Government in labor stability and in the ability of 
     construction labor and management to meet the particular 
     needs and conditions of projects to be developed under the 
     leases issued pursuant to this subtitle (including the 
     special concerns of the parties to those leases), shall 
     require that each lessee, and each agent and contractor of a 
     lessee, under this subtitle negotiate to obtain a project 
     labor agreement for the employment of laborers and mechanics 
     on production, maintenance, and construction under the lease.

     SEC. 116. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard To Govern 
     Authorized Coastal Plain Activities.--In accordance with 
     section 112, the Secretary shall administer this subtitle 
     through regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, or other provisions that--
       (1) ensure, to the maximum extent practicable, that oil and 
     gas exploration, development, and production activities on 
     the Coastal Plain will result in no significant adverse 
     effect on fish and wildlife, fish and wildlife habitat, and 
     the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum surface acreage covered in 
     connection with the leasing program by production and support 
     facilities, including airstrips and any areas covered by 
     gravel berms or piers for support of pipelines, does not 
     exceed 2,000 acres on the Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall require, with respect to any proposed drilling and 
     related activities on the Coastal Plain, that--
       (1) a site-specific environmental analysis be made of the 
     probable effects, if any, that the drilling or related 
     activities will have on fish and wildlife, fish and wildlife 
     habitat, subsistence resources, subsistence uses, and the 
     environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the maximum extent practicable) any 
     significant adverse effect identified under paragraph (1); 
     and
       (3) the development of the plan occur after consultation 
     with--
       (A) each agency having jurisdiction over matters mitigated 
     by the plan;
       (B) the State of Alaska;
       (C) North Slope Borough, Alaska; and
       (D) the City of Kaktovik, Alaska.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this subtitle, 
     the Secretary shall prepare and issue regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     or other measures designed to ensure, to the maximum extent 
     practicable, that the activities carried out on the Coastal 
     Plain under this subtitle are conducted in a manner 
     consistent with the purposes and environmental requirements 
     of this subtitle.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this subtitle 
     shall require--
       (1) compliance with all applicable provisions of Federal 
     and State environmental law (including regulations);
       (2) implementation of and compliance with--
       (A) standards that are at least as effective as the safety 
     and environmental mitigation measures, as described in items 
     1 through 29 on pages 167 through 169 of the Final Statement, 
     on the Coastal Plain;
       (B) seasonal limitations on exploration, development, and 
     related activities, as necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration;
       (C) design safety and construction standards for all 
     pipelines and any access and service roads that minimize, to 
     the maximum extent practicable, adverse effects on--
       (i) the passage of migratory species (such as caribou); and
       (ii) the flow of surface water by requiring the use of 
     culverts, bridges, or other structural devices;
       (D) prohibitions on general public access to, and use of, 
     all pipeline access and service roads;
       (E) stringent reclamation and rehabilitation requirements 
     in accordance with this subtitle for the removal from the 
     Coastal Plain of all oil and gas development and production 
     facilities, structures, and equipment on completion of oil 
     and gas production operations, except in a case in which the 
     Secretary determines that those facilities, structures, or 
     equipment--
       (i) would assist in the management of the Arctic National 
     Wildlife Refuge; and
       (ii) are donated to the United States for that purpose;
       (F) appropriate prohibitions or restrictions on--
       (i) access by all modes of transportation;
       (ii) sand and gravel extraction; and
       (iii) use of explosives;
       (G) reasonable stipulations for protection of cultural and 
     archaeological resources;
       (H) measures to protect groundwater and surface water, 
     including--
       (i) avoidance, to the maximum extent practicable, of 
     springs, streams, and river systems;
       (ii) the protection of natural surface drainage patterns 
     and wetland and riparian habitats; and
       (iii) the regulation of methods or techniques for 
     developing or transporting adequate supplies of water for 
     exploratory drilling; and
       (I) research, monitoring, and reporting requirements;
       (3) that exploration activities (except surface geological 
     studies) be limited to the period between approximately 
     November 1 and May 1 of each year and be supported, if 
     necessary, by ice roads, winter trails with adequate snow 
     cover, ice pads, ice airstrips, and air transport methods 
     (except that those exploration activities may be permitted at 
     other times if the Secretary determines that the exploration 
     will have no significant adverse effect on fish and wildlife, 
     fish and wildlife habitat, subsistence resources, and the 
     environment of the Coastal Plain);
       (4) consolidation of facility siting;
       (5) avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife;
       (6) treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including, in accordance with 
     applicable Federal and State environmental laws (including 
     regulations)--
       (A) preparation of an annual waste management report;
       (B) development and implementation of a hazardous materials 
     tracking system; and
       (C) prohibition on the use of chlorinated solvents;

[[Page S7308]]

       (7) fuel storage and oil spill contingency planning;
       (8) conduct of periodic field crew environmental briefings;
       (9) avoidance of significant adverse effects on subsistence 
     hunting, fishing, and trapping;
       (10) compliance with applicable air and water quality 
     standards;
       (11) appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited; and
       (12) development and implementation of such other 
     protective environmental requirements, restrictions, terms, 
     or conditions as the Secretary, after consultation with the 
     State of Alaska, North Slope Borough, Alaska, and the City of 
     Kaktovik, Alaska, determines to be necessary.
       (e) Considerations.--In preparing and issuing regulations, 
     lease terms, conditions, restrictions, prohibitions, or 
     stipulations under this section, the Secretary shall take 
     into consideration--
       (1) the stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement;
       (2) the environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 through 37.33 of title 50, Code of Federal 
     Regulations (or successor regulations); and
       (3) the land use stipulations for exploratory drilling on 
     the KIC-ASRC private land described in Appendix 2 of the 
     agreement between Arctic Slope Regional Corporation and the 
     United States dated August 9, 1983.
       (f) Facility Consolidation Planning.--
       (1) In general.--After providing for public notice and 
     comment, the Secretary shall prepare and periodically update 
     a plan to govern, guide, and direct the siting and 
     construction of facilities for the exploration, development, 
     production, and transportation of oil and gas resources from 
     the Coastal Plain.
       (2) Objectives.--The objectives of the plan shall be--
       (A) the avoidance of unnecessary duplication of facilities 
     and activities;
       (B) the encouragement of consolidation of common facilities 
     and activities;
       (C) the location or confinement of facilities and 
     activities to areas that will minimize impact on fish and 
     wildlife, fish and wildlife habitat, subsistence resources, 
     and the environment;
       (D) the use of existing facilities, to the maximum extent 
     practicable; and
       (E) the enhancement of compatibility between wildlife 
     values and development activities.
       (g) Access to Public Land.--The Secretary shall--
       (1) manage public land in the Coastal Plain in accordance 
     with subsections (a) and (b) of section 811 of the Alaska 
     National Interest Lands Conservation Act (16 U.S.C. 3121); 
     and
       (2) ensure that local residents shall have reasonable 
     access to public land in the Coastal Plain for traditional 
     uses.

     SEC. 117. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaints.--
       (1) Deadline.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed--
       (A) except as provided in subparagraph (B), during the 90-
     day period beginning on the date on which the action being 
     challenged was carried out; or
       (B) in the case of a complaint based solely on grounds 
     arising after the 90-day period described in subparagraph 
     (A), during the 90-day period beginning on the date on which 
     the complainant knew or reasonably should have known about 
     the grounds for the complaint.
       (2) Venue.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed in the United States Court 
     of Appeals for the District of Columbia.
       (3) Scope.--
       (A) In general.--Judicial review of a decision of the 
     Secretary under this subtitle (including an environmental 
     analysis of such a lease sale) shall be--
       (i) limited to a review of whether the decision is in 
     accordance with this subtitle; and
       (ii) based on the administrative record of the decision.
       (B) Presumptions.--Any identification by the Secretary of a 
     preferred course of action relating to a lease sale, and any 
     analysis by the Secretary of environmental effects, under 
     this subtitle shall be presumed to be correct unless proven 
     otherwise by clear and convincing evidence.
       (b) Limitation on Other Review.--Any action of the 
     Secretary that is subject to judicial review under this 
     section shall not be subject to judicial review in any civil 
     or criminal proceeding for enforcement.

     SEC. 118. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

       For purposes of section 1102(4)(A) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), any 
     rights-of-way or easements across the Coastal Plain for the 
     exploration, development, production, or transportation of 
     oil and gas shall be considered to be established incident to 
     the management of the Coastal Plain under this section.

     SEC. 119. CONVEYANCE.

       Notwithstanding section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
     remove any cloud on title to land, and to clarify land 
     ownership patterns in the Coastal Plain, the Secretary 
     shall--
       (1) to the extent necessary to fulfill the entitlement of 
     the Kaktovik Inupiat Corporation under sections 12 and 14 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 
     1613), as determined by the Secretary, convey to that 
     Corporation the surface estate of the land described in 
     paragraph (1) of Public Land Order 6959, in accordance with 
     the terms and conditions of the agreement between the 
     Secretary, the United States Fish and Wildlife Service, the 
     Bureau of Land Management, and the Kaktovik Inupiat 
     Corporation, dated January 22, 1993; and
       (2) convey to the Arctic Slope Regional Corporation the 
     remaining subsurface estate to which that Corporation is 
     entitled under the agreement between that corporation and the 
     United States, dated August 9, 1983.

     SEC. 120. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Establishment of Fund.--
       (1) In general.--As a condition on the receipt of funds 
     under section 122(2), the State of Alaska shall establish in 
     the treasury of the State, and administer in accordance with 
     this section, a fund to be known as the ``Coastal Plain Local 
     Government Impact Aid Assistance Fund'' (referred to in this 
     section as the ``Fund'').
       (2) Deposits.--Subject to paragraph (1), the Secretary of 
     the Treasury shall deposit into the Fund, $35,000,000 each 
     year from the amount available under section 122(2)(A).
       (3) Investment.--The Governor of the State of Alaska 
     (referred to in this section as the ``Governor'') shall 
     invest amounts in the Fund in interest-bearing securities of 
     the United States or the State of Alaska.
       (b) Assistance.--The Governor, in cooperation with the 
     Mayor of the North Slope Borough, shall use amounts in the 
     Fund to provide assistance to North Slope Borough, Alaska, 
     the City of Kaktovik, Alaska, and any other borough, 
     municipal subdivision, village, or other community in the 
     State of Alaska that is directly impacted by exploration for, 
     or the production of, oil or gas on the Coastal Plain under 
     this subtitle, or any Alaska Native Regional Corporation 
     acting on behalf of the villages and communities within its 
     region whose lands lie along the right of way of the Trans 
     Alaska Pipeline System, as determined by the Governor.
       (c) Application.--
       (1) In general.--To receive assistance under subsection 
     (b), a community or Regional Corporation described in that 
     subsection shall submit to the Governor, or to the Mayor of 
     the North Slope Borough, an application in such time, in such 
     manner, and containing such information as the Governor may 
     require.
       (2) Action by north slope borough.--The Mayor of the North 
     Slope Borough shall submit to the Governor each application 
     received under paragraph (1) as soon as practicable after the 
     date on which the application is received.
       (3) Assistance of governor.--The Governor shall assist 
     communities in submitting applications under this subsection, 
     to the maximum extent practicable.
       (d) Use of Funds.--A community or Regional Corporation that 
     receives funds under subsection (b) may use the funds--
       (1) to plan for mitigation, implement a mitigation plan, or 
     maintain a mitigation project to address the potential 
     effects of oil and gas exploration and development on 
     environmental, social, cultural, recreational, and 
     subsistence resources of the community;
       (2) to develop, carry out, and maintain--
       (A) a project to provide new or expanded public facilities; 
     or
       (B) services to address the needs and problems associated 
     with the effects described in paragraph (1), including 
     firefighting, police, water and waste treatment, first 
     responder, and other medical services;
       (3) to compensate residents of the Coastal Plain for 
     significant damage to environmental, social, cultural, 
     recreational, or subsistence resources; and
       (4) in the City of Kaktovik, Alaska--
       (A) to develop a mechanism for providing members of the 
     Kaktovikmiut Inupiat community an opportunity to--
       (i) monitor development on the Coastal Plain; and
       (ii) provide information and recommendations to the 
     Governor based on traditional aboriginal knowledge of the 
     natural resources, flora, fauna, and ecological processes of 
     the Coastal Plain; and
       (B) to establish a local coordination office, to be managed 
     by the Mayor of the North Slope Borough, in coordination with 
     the City of Kaktovik, Alaska--
       (i) to coordinate with and advise developers on local 
     conditions and the history of areas affected by development;
       (ii) to provide to the Committee on Resources of the House 
     of Representatives and the Committee on Energy and Natural 
     Resources of the Senate annual reports on the status of the 
     coordination between developers and communities affected by 
     development;
       (iii) to collect from residents of the Coastal Plain 
     information regarding the impacts of development on fish, 
     wildlife, habitats, subsistence resources, and the 
     environment of the Coastal Plain; and
       (iv) to ensure that the information collected under clause 
     (iii) is submitted to--

       (I) developers; and

[[Page S7309]]

       (II) any appropriate Federal agency.

     SEC. 121. PROHIBITION ON EXPORTS.

       An oil lease issued under this subtitle shall prohibit the 
     exportation of oil produced under the lease.

     SEC. 122. ALLOCATION OF REVENUES.

       Notwithstanding the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.) or any other provision of law, of the adjusted bonus, 
     rental, and royalty receipts from Federal oil and gas leasing 
     and operations authorized under this subtitle:
       (1) 50 percent shall be deposited in the general fund of 
     the Treasury.
       (2) The remainder shall be available as follows:
       (A) $35,000,000 shall be deposited by the Secretary of the 
     Treasury into the fund created under section 120(a)(1).
       (B) The remainder shall be disbursed to the State of 
     Alaska.

                         Subtitle C--Permitting

     SEC. 131. REFINERY PERMITTING PROCESS.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (3) Permit.--The term ``permit'' means any permit, license, 
     approval, variance, or other form of authorization that a 
     refiner is required to obtain--
       (A) under any Federal law; or
       (B) from a State or Indian tribal government agency 
     delegated authority by the Federal Government, or authorized 
     under Federal law, to issue permits.
       (4) Refiner.--The term ``refiner'' means a person that--
       (A) owns or operates a refinery; or
       (B) seeks to become an owner or operator of a refinery.
       (5) Refinery.--
       (A) In general.--The term ``refinery'' means--
       (i) a facility at which crude oil is refined into 
     transportation fuel or other petroleum products; and
       (ii) a coal liquification or coal-to-liquid facility at 
     which coal is processed into synthetic crude oil or any other 
     fuel.
       (B) Inclusions.--The term ``refinery'' includes an 
     expansion of a refinery.
       (6) Refinery expansion.--The term ``refinery expansion'' 
     means a physical change in a refinery that results in an 
     increase in the capacity of the refinery.
       (7) Refinery permitting agreement.--The term ``refinery 
     permitting agreement'' means an agreement entered into 
     between the Administrator and a State or Indian tribe under 
     subsection (b).
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (9) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (b) Streamlining of Refinery Permitting Process.--
       (1) In general.--At the request of the Governor of a State 
     or the governing body of an Indian tribe, the Administrator 
     shall enter into a refinery permitting agreement with the 
     State or Indian tribe under which the process for obtaining 
     all permits necessary for the construction and operation of a 
     refinery shall be streamlined using a systematic 
     interdisciplinary multimedia approach as provided in this 
     section.
       (2) Authority of administrator.--Under a refinery 
     permitting agreement--
       (A) the Administrator shall have authority, as applicable 
     and necessary, to--
       (i) accept from a refiner a consolidated application for 
     all permits that the refiner is required to obtain to 
     construct and operate a refinery;
       (ii) in consultation and cooperation with each Federal, 
     State, or Indian tribal government agency that is required to 
     make any determination to authorize the issuance of a permit, 
     establish a schedule under which each agency shall--

       (I) concurrently consider, to the maximum extent 
     practicable, each determination to be made; and
       (II) complete each step in the permitting process; and

       (iii) issue a consolidated permit that combines all permits 
     issued under the schedule established under clause (ii); and
       (B) the Administrator shall provide to State and Indian 
     tribal government agencies--
       (i) financial assistance in such amounts as the agencies 
     reasonably require to hire such additional personnel as are 
     necessary to enable the government agencies to comply with 
     the applicable schedule established under subparagraph 
     (A)(ii); and
       (ii) technical, legal, and other assistance in complying 
     with the refinery permitting agreement.
       (3) Agreement by the state.--Under a refinery permitting 
     agreement, a State or governing body of an Indian tribe shall 
     agree that--
       (A) the Administrator shall have each of the authorities 
     described in paragraph (2); and
       (B) each State or Indian tribal government agency shall--
       (i) in accordance with State law, make such structural and 
     operational changes in the agencies as are necessary to 
     enable the agencies to carry out consolidated project-wide 
     permit reviews concurrently and in coordination with the 
     Environmental Protection Agency and other Federal agencies; 
     and
       (ii) comply, to the maximum extent practicable, with the 
     applicable schedule established under paragraph (2)(A)(ii).
       (4) Deadlines.--
       (A) New refineries.--In the case of a consolidated permit 
     for the construction of a new refinery, the Administrator and 
     the State or governing body of an Indian tribe shall approve 
     or disapprove the consolidated permit not later than--
       (i) 360 days after the date of the receipt of the 
     administratively complete application for the consolidated 
     permit; or
       (ii) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 90 days 
     after the expiration of the deadline established under clause 
     (i).
       (B) Expansion of existing refineries.--In the case of a 
     consolidated permit for the expansion of an existing 
     refinery, the Administrator and the State or governing body 
     of an Indian tribe shall approve or disapprove the 
     consolidated permit not later than--
       (i) 120 days after the date of the receipt of the 
     administratively complete application for the consolidated 
     permit; or
       (ii) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 30 days 
     after the expiration of the deadline established under clause 
     (i).
       (5) Federal agencies.--Each Federal agency that is required 
     to make any determination to authorize the issuance of a 
     permit shall comply with the applicable schedule established 
     under paragraph (2)(A)(ii).
       (6) Judicial review.--Any civil action for review of any 
     permit determination under a refinery permitting agreement 
     shall be brought exclusively in the United States district 
     court for the district in which the refinery is located or 
     proposed to be located.
       (7) Efficient permit review.--In order to reduce the 
     duplication of procedures, the Administrator shall use State 
     permitting and monitoring procedures to satisfy substantially 
     equivalent Federal requirements under this title.
       (8) Severability.--If 1 or more permits that are required 
     for the construction or operation of a refinery are not 
     approved on or before any deadline established under 
     paragraph (4), the Administrator may issue a consolidated 
     permit that combines all other permits that the refiner is 
     required to obtain other than any permits that are not 
     approved.
       (9) Savings.--Nothing in this subsection affects the 
     operation or implementation of otherwise applicable law 
     regarding permits necessary for the construction and 
     operation of a refinery.
       (10) Consultation with local governments.--Congress 
     encourages the Administrator, States, and tribal governments 
     to consult, to the maximum extent practicable, with local 
     governments in carrying out this subsection.
       (11) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this subsection.
       (12) Effect on local authority.--Nothing in this subsection 
     affects--
       (A) the authority of a local government with respect to the 
     issuance of permits; or
       (B) any requirement or ordinance of a local government 
     (such as a zoning regulation).
       (c) Fischer-Tropsch Fuels.--
       (1) In general.--In cooperation with the Secretary of 
     Energy, the Secretary of Defense, the Administrator of the 
     Federal Aviation Administration, Secretary of Health and 
     Human Services, and Fischer-Tropsch industry representatives, 
     the Administrator shall--
       (A) conduct a research and demonstration program to 
     evaluate the air quality benefits of ultra-clean Fischer-
     Tropsch transportation fuel, including diesel and jet fuel;
       (B) evaluate the use of ultra-clean Fischer-Tropsch 
     transportation fuel as a mechanism for reducing engine 
     exhaust emissions; and
       (C) submit recommendations to Congress on the most 
     effective use and associated benefits of these ultra-clean 
     fuel for reducing public exposure to exhaust emissions.
       (2) Guidance and technical support.--The Administrator 
     shall, to the extent necessary, issue any guidance or 
     technical support documents that would facilitate the 
     effective use and associated benefit of Fischer-Tropsch fuel 
     and blends.
       (3) Requirements.--The program described in paragraph (1) 
     shall consider--
       (A) the use of neat (100 percent) Fischer-Tropsch fuel and 
     blends with conventional crude oil-derived fuel for heavy-
     duty and light-duty diesel engines and the aviation sector; 
     and
       (B) the production costs associated with domestic 
     production of those ultra clean fuel and prices for 
     consumers.
       (4) Reports.--The Administrator shall submit to the 
     Committee on Environment and Public Works and the Committee 
     on Energy and Natural Resources of the Senate and the 
     Committee on Energy and Commerce of the House of 
     Representatives--
       (A) not later than 1 year, an interim report on actions 
     taken to carry out this subsection; and
       (B) not later than 2 years, a final report on actions taken 
     to carry out this subsection.

[[Page S7310]]

     SEC. 132. REMOVAL OF ADDITIONAL FEE FOR NEW APPLICATIONS FOR 
                   PERMITS TO DRILL.

       The second undesignated paragraph of the matter under the 
     heading ``management of lands and resources'' under the 
     heading ``Bureau of Land Management'' of title I of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2098) 
     is amended by striking ``to be reduced'' and all that follows 
     through ``each new application,''.

                Subtitle D--Restoration of State Revenue

     SEC. 141. RESTORATION OF STATE REVENUE.

       The matter under the heading ``administrative provisions'' 
     under the heading ``Minerals Management Service'' of title I 
     of the Department of the Interior, Environment, and Related 
     Agencies Appropriations Act, 2008 (Public Law 110-161; 121 
     Stat. 2109) is amended by striking ``Notwithstanding'' and 
     all that follows through ``Treasury.''.

                    TITLE II--ALTERNATIVE RESOURCES

       Subtitle A--Renewable Fuel and Advanced Energy Technology

     SEC. 201. DEFINITION OF RENEWABLE BIOMASS.

       Section 211(o)(1) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)) is amended by striking subparagraph (I) and 
     inserting the following:
       ``(I) Renewable biomass.--The term `renewable biomass' 
     means--
       ``(i) nonmerchantable materials or precommercial thinnings 
     that--

       ``(I) are byproducts of preventive treatments, such as 
     trees, wood, brush, thinnings, chips, and slash, that are 
     removed--

       ``(aa) to reduce hazardous fuels;
       ``(bb) to reduce or contain disease or insect infestation; 
     or
       ``(cc) to restore forest health;

       ``(II) would not otherwise be used for higher-value 
     products; and
       ``(III) are harvested from National Forest System land or 
     public land (as defined in section 103 of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1702))--

       ``(aa) where permitted by law; and
       ``(bb) in accordance with applicable land management plans 
     and the requirements for old-growth maintenance, restoration, 
     and management direction of paragraphs (2), (3), and (4) of 
     subsection (e) and the requirements for large-tree retention 
     of subsection (f) of section 102 of the Healthy Forests 
     Restoration Act of 2003 (16 U.S.C. 6512); or
       ``(ii) any organic matter that is available on a renewable 
     or recurring basis from non-Federal land or from land 
     belonging to an Indian tribe, or an Indian individual, that 
     is held in trust by the United States or subject to a 
     restriction against alienation imposed by the United States, 
     including--

       ``(I) renewable plant material, including--

       ``(aa) feed grains;
       ``(bb) other agricultural commodities;
       ``(cc) other plants and trees; and
       ``(dd) algae; and

       ``(II) waste material, including--

       ``(aa) crop residue;
       ``(bb) other vegetative waste material (including wood 
     waste and wood residues);
       ``(cc) animal waste and byproducts (including fats, oils, 
     greases, and manure); and
       ``(dd) food waste and yard waste.''.

     SEC. 202. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.

       (a) Definitions.--In this section:
       (1) Advanced battery.--The term ``advanced battery'' means 
     an electrical storage device suitable for vehicle 
     applications.
       (2) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the cost of engineering tasks 
     relating to--
       (A) incorporation of qualifying components into the design 
     of advanced batteries; and
       (B) design of tooling and equipment and developing 
     manufacturing processes and material suppliers for production 
     facilities that produce qualifying components or advanced 
     batteries.
       (b) Advanced Battery Manufacturing Facility.--The Secretary 
     shall provide facility funding awards under this section to 
     advanced battery manufacturers to pay not more than 30 
     percent of the cost of reequipping, expanding, or 
     establishing a manufacturing facility in the United States to 
     produce advanced batteries.
       (c) Period of Availability.--An award under subsection (b) 
     shall apply to--
       (1) facilities and equipment placed in service before 
     December 30, 2020; and
       (2) engineering integration costs incurred during the 
     period beginning on the date of enactment of this Act and 
     ending on December 30, 2020.
       (d) Direct Loan Program.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, and subject to the availability of 
     appropriated funds, the Secretary shall carry out a program 
     to provide a total of not more than $25,000,000 in loans to 
     eligible individuals and entities (as determined by the 
     Secretary) for the costs of activities described in 
     subsection (b).
       (2) Selection of eligible projects.--The Secretary shall 
     select eligible projects to receive loans under this 
     subsection in cases in which, as determined by the Secretary, 
     the award recipient--
       (A) is financially viable without the receipt of additional 
     Federal funding associated with the proposed project;
       (B) will provide sufficient information to the Secretary 
     for the Secretary to ensure that the qualified investment is 
     expended efficiently and effectively; and
       (C) has met such other criteria as may be established and 
     published by the Secretary.
       (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 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; and
       (ii) 25 years;
       (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; and
       (D) shall be made by the Federal Financing Bank.
       (e) Fees.--The cost of administering a loan made under this 
     section shall not exceed $100,000.
       (f) Set Aside for Small Manufacturers.--
       (1) Definition of covered firm.--In this subsection, the 
     term ``covered firm'' means a firm that--
       (A) employs fewer than 500 individuals; and
       (B) manufactures automobiles or components of automobiles.
       (2) Set aside.--Of the amount of funds used to provide 
     awards for each fiscal year under subsection (b), the 
     Secretary shall use not less than 10 percent to provide 
     awards to covered firms or consortia led by a covered firm.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section for each of fiscal years 2009 through 2013.

     SEC. 203. BIOFUELS INFRASTRUCTURE AND ADDITIVES RESEARCH AND 
                   DEVELOPMENT.

       (a) In General.--The Assistant Administrator of the Office 
     of Research and Development of the Environmental Protection 
     Agency (referred to in this section as the ``Assistant 
     Administrator''), in consultation with the Secretary and the 
     National Institute of Standards and Technology, shall carry 
     out a program of research and development of materials to be 
     added to biofuels to make the biofuels more compatible with 
     infrastructure used to store and deliver petroleum-based 
     fuels to the point of final sale.
       (b) Requirements.--In carrying out the program described in 
     subsection (a), the Assistant Administrator shall address--
       (1) materials to prevent or mitigate--
       (A) corrosion of metal, plastic, rubber, cork, fiberglass, 
     glues, or any other material used in pipes and storage tanks;
       (B) dissolving of storage tank sediments;
       (C) clogging of filters;
       (D) contamination from water or other adulterants or 
     pollutants;
       (E) poor flow properties relating to low temperatures;
       (F) oxidative and thermal instability in long-term storage 
     and use; and
       (G) microbial contamination;
       (2) problems associated with electrical conductivity;
       (3) alternatives to conventional methods for refurbishment 
     and cleaning of gasoline and diesel tanks, including tank 
     lining applications;
       (4) strategies to minimize emissions from infrastructure;
       (5) issues with respect to certification by a nationally 
     recognized testing laboratory of components for fuel-
     dispensing devises that specifically reference compatibility 
     with alcohol-blended fuels and other biofuels that contain 
     greater than 15 percent alcohol;
       (6) challenges for design, reforming, storage, handling, 
     and dispensing hydrogen fuel from various feedstocks, 
     including biomass, from neighborhood fueling stations, 
     including codes and standards development necessary beyond 
     that carried out under section 809 of the Energy Policy Act 
     of 2005 (42 U.S.C. 16158);
       (7) issues with respect to at which point in the fuel 
     supply chain additives optimally should be added to fuels; 
     and
       (8) other problems, as identified by the Assistant 
     Administrator, in consultation with the Secretary and the 
     National Institute of Standards and Technology.

     SEC. 204. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED 
                   GASOLINE WITH HIGHER LEVELS OF ETHANOL.

       (a) In General.--The Secretary, in cooperation with the 
     Secretary of Agriculture, the Administrator of the 
     Environmental Protection Agency, and the Secretary of 
     Transportation, and after providing notice and an opportunity 
     for public comment, shall conduct a study of the feasibility 
     of increasing consumption in the United States of ethanol-
     blended gasoline with levels of ethanol that are not less 
     than 10 percent and not more than 40 percent.
       (b) Study.--The study under subsection (a) shall include--
       (1) a review of production and infrastructure constraints 
     on increasing consumption of ethanol;
       (2) an evaluation of the economic, market, and energy-
     related impacts of State and regional differences in ethanol 
     blends;
       (3) an evaluation of the economic, market, and energy-
     related impacts on gasoline retailers and consumers of 
     separate and distinctly labeled fuel storage facilities and 
     dispensers;

[[Page S7311]]

       (4) an evaluation of the environmental impacts of mid-level 
     ethanol blends on evaporative and exhaust emissions from on-
     road, off-road, and marine engines, recreational boats, 
     vehicles, and equipment;
       (5) an evaluation of the impacts of mid-level ethanol 
     blends on the operation, durability, and performance of on-
     road, off-road, and marine engines, recreational boats, 
     vehicles, and equipment;
       (6) an evaluation of the safety impacts of mid-level 
     ethanol blends on consumers that own and operate off-road and 
     marine engines, recreational boats, vehicles, or equipment; 
     and
       (7) an evaluation of the impacts of increased use of 
     renewable fuels derived from food crops on the price and 
     supply of agricultural commodities in both domestic and 
     global markets.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing the results of the study conducted under 
     this section.

     SEC. 205. STUDY OF DIESEL VEHICLE ATTRIBUTES.

       (a) In General.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Transportation, shall conduct a study to 
     identify--
       (1) the environmental and efficiency attributes of diesel-
     fueled vehicles as the vehicles compare to comparable 
     gasoline fueled, E-85 fueled, and hybrid vehicles;
       (2) the technical, economic, regulatory, environmental, and 
     other obstacles to increasing the usage of diesel-fueled 
     vehicles;
       (3) the legislative, administrative, and other actions that 
     could reduce or eliminate the obstacles identified under 
     paragraph (2); and
       (4) the costs and benefits associated with reducing or 
     eliminating the obstacles identified under paragraph (2).
       (b) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Energy and Commerce of the House of 
     Representatives a report describing the results of the study 
     conducted under subsection (a).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

        Subtitle B--Clean Coal-Derived Fuels for Energy Security

     SEC. 211. SHORT TITLE.

       This subtitle may be cited as the ``Clean Coal-Derived 
     Fuels for Energy Security Act of 2008''.

     SEC. 212. DEFINITIONS.

       In this subtitle:
       (1) Clean coal-derived fuel.--
       (A) In general.--The term ``clean coal-derived fuel'' means 
     aviation fuel, motor vehicle fuel, home heating oil, or 
     boiler fuel that is--
       (i) substantially derived from the coal resources of the 
     United States; and
       (ii) refined or otherwise processed at a facility located 
     in the United States that captures up to 100 percent of the 
     carbon dioxide emissions that would otherwise be released at 
     the facility.
       (B) Inclusions.--The term ``clean coal-derived fuel'' may 
     include any other resource that is extracted, grown, 
     produced, or recovered in the United States.
       (2) Covered fuel.--The term ``covered fuel'' means--
       (A) aviation fuel;
       (B) motor vehicle fuel;
       (C) home heating oil; and
       (D) boiler fuel.
       (3) Small refinery.--The term ``small refinery'' means a 
     refinery for which the average aggregate daily crude oil 
     throughput for a calendar year (as determined by dividing the 
     aggregate throughput for the calendar year by the number of 
     days in the calendar year) does not exceed 75,000 barrels.

     SEC. 213. CLEAN COAL-DERIVED FUEL PROGRAM.

       (a) Program.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the President shall promulgate 
     regulations to ensure that covered fuel sold or introduced 
     into commerce in the United States (except in noncontiguous 
     States or territories), on an annual average basis, contains 
     the applicable volume of clean coal-derived fuel determined 
     in accordance with paragraph (4).
       (2) Provisions of regulations.--Regardless of the date of 
     promulgation, the regulations promulgated under paragraph 
     (1)--
       (A) shall contain compliance provisions applicable to 
     refineries, blenders, distributors, and importers, as 
     appropriate, to ensure that--
       (i) the requirements of this subsection are met; and
       (ii) clean coal-derived fuels produced from facilities for 
     the purpose of compliance with this subtitle result in life 
     cycle greenhouse gas emissions that are not greater than 
     gasoline; and
       (B) shall not--
       (i) restrict geographic areas in the contiguous United 
     States in which clean coal-derived fuel may be used; or
       (ii) impose any per-gallon obligation for the use of clean 
     coal-derived fuel.
       (3) Relationship to other regulations.--Regulations 
     promulgated under this paragraph shall, to the maximum extent 
     practicable, incorporate the program structure, compliance 
     and reporting requirements established under the final 
     regulations promulgated to implement the renewable fuel 
     program established by the amendment made by section 
     1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-
     58; 119 Stat. 1067).
       (4) Applicable volume.--
       (A) Calendar years 2015 through 2022.--For the purpose of 
     this subsection, the applicable volume for any of calendar 
     years 2015 through 2022 shall be determined in accordance 
     with the following table:

                                             Applicable volume of clean
                                                      coal-derived fuel
Calendar year:                                (in billions of gallons):
  2015............................................................0.75 
  2016.............................................................1.5 
  2017............................................................2.25 
  2018............................................................3.00 
  2019............................................................3.75 
  2020.............................................................4.5 
  2021............................................................5.25 
  2022.............................................................6.0.

       (B) Calendar year 2023 and thereafter.--Subject to 
     subparagraph (C), for the purposes of this subsection, the 
     applicable volume for calendar year 2023 and each calendar 
     year thereafter shall be determined by the President, in 
     coordination with the Secretary and the Administrator of the 
     Environmental Protection Agency, based on a review of the 
     implementation of the program during calendar years 2015 
     through 2022, including a review of--
       (i) the impact of clean coal-derived fuels on the energy 
     security of the United States;
       (ii) the expected annual rate of future production of clean 
     coal-derived fuels; and
       (iii) the impact of the use of clean coal-derived fuels on 
     other factors, including job creation, rural economic 
     development, and the environment.
       (C) Minimum applicable volume.--For the purpose of this 
     subsection, the applicable volume for calendar year 2023 and 
     each calendar year thereafter shall be equal to the product 
     obtained by multiplying--
       (i) the number of gallons of covered fuel that the 
     President estimates will be sold or introduced into commerce 
     in the calendar year; and
       (ii) the ratio that--

       (I) 6,000,000,000 gallons of clean coal-derived fuel; bears 
     to
       (II) the number of gallons of covered fuel sold or 
     introduced into commerce in calendar year 2022.

       (b) Applicable Percentages.--
       (1) Provision of estimate of volumes of certain fuel 
     sales.--Not later than October 31 of each of calendar years 
     2015 through 2021, the Administrator of the Energy 
     Information Administration shall provide to the President an 
     estimate, with respect to the following calendar year, of the 
     volumes of covered fuel projected to be sold or introduced 
     into commerce in the United States.
       (2) Determination of applicable percentages.--
       (A) In general.--Not later than November 30 of each of 
     calendar years 2015 through 2022, based on the estimate 
     provided under paragraph (1), the President shall determine 
     and publish in the Federal Register, with respect to the 
     following calendar year, the clean coal-derived fuel 
     obligation that ensures that the requirements of subsection 
     (a) are met.
       (B) Required elements.--The clean coal-derived fuel 
     obligation determined for a calendar year under subparagraph 
     (A) shall--
       (i) be applicable to refineries, blenders, and importers, 
     as appropriate;
       (ii) be expressed in terms of a volume percentage of 
     covered fuel sold or introduced into commerce in the United 
     States; and
       (iii) subject to paragraph (3)(A), consist of a single 
     applicable percentage that applies to all categories of 
     persons specified in clause (i).
       (3) Adjustments.--In determining the applicable percentage 
     for a calendar year, the President shall make adjustments--
       (A) to prevent the imposition of redundant obligations on 
     any person specified in paragraph (2)(B)(i); and
       (B) to account for the use of clean coal-derived fuel 
     during the previous calendar year by small refineries that 
     are exempt under subsection (f).
       (c) Volume Conversion Factors for Clean Coal-Derived Fuels 
     Based on Energy Content.--
       (1) In general.--For the purpose of subsection (a), the 
     President shall assign values to specific types of clean 
     coal-derived fuel for the purpose of satisfying the fuel 
     volume requirements of subsection (a)(4) in accordance with 
     this subsection.
       (2) Energy content relative to diesel fuel.--For clean 
     coal-derived fuels, 1 gallon of the clean coal-derived fuel 
     shall be considered to be the equivalent of 1 gallon of 
     diesel fuel multiplied by the ratio that--
       (A) the number of British thermal units of energy produced 
     by the combustion of 1 gallon of the clean coal-derived fuel 
     (as measured under conditions determined by the Secretary); 
     bears to
       (B) the number of British thermal units of energy produced 
     by the combustion of 1 gallon of diesel fuel (as measured 
     under conditions determined by the Secretary to be comparable 
     to conditions described in subparagraph (A)).
       (d) Credit Program.--
       (1) In general.--The President, in consultation with the 
     Secretary and the clean coal-derived fuel requirement of this 
     section.

[[Page S7312]]

       (2) Market transparency.--In carrying out the credit 
     program under this subsection, the President shall facilitate 
     price transparency in markets for the sale and trade of 
     credits, with due regard for the public interest, the 
     integrity of those markets, fair competition, and the 
     protection of consumers.
       (e) Waivers.--
       (1) In general.--The President, in consultation with the 
     Secretary and the Administrator of the Environmental 
     Protection Agency, may waive the requirements of subsection 
     (a) in whole or in part on petition by 1 or more States by 
     reducing the national quantity of clean coal-derived fuel 
     required under subsection (a), based on a determination by 
     the President (after public notice and opportunity for 
     comment), that--
       (A) implementation of the requirement would severely harm 
     the economy or environment of a State, a region, or the 
     United States; or
       (B) extreme and unusual circumstances exist that prevent 
     distribution of an adequate supply of domestically produced 
     clean coal-derived fuel to consumers in the United States.
       (2) Petitions for waivers.--The President, in consultation 
     with the Secretary and the Administrator of the Environmental 
     Protection Agency, shall approve or disapprove a State 
     petition for a waiver of the requirements of subsection (a) 
     within 90 days after the date on which the petition is 
     received by the President.
       (3) Termination of waivers.--A waiver granted under 
     paragraph (1) shall terminate after 1 year, but may be 
     renewed by the President after consultation with the 
     Secretary and the Administrator of the Environmental 
     Protection Agency.
       (f) Small Refineries.--
       (1) Temporary exemption.--
       (A) In general.--The requirements of subsection (a) shall 
     not apply to small refineries until calendar year 2018.
       (B) Extension of exemption.--
       (i) Study by secretary.--Not later than December 31, 2013, 
     the Secretary shall submit to the President and Congress a 
     report describing the results of a study to determine whether 
     compliance with the requirements of subsection (a) would 
     impose a disproportionate economic hardship on small 
     refineries.
       (ii) Extension of exemption.--In the case of a small 
     refinery that the Secretary determines under clause (i) would 
     be subject to a disproportionate economic hardship if 
     required to comply with subsection (a), the President shall 
     extend the exemption under subparagraph (A) for the small 
     refinery for a period of not less than 2 additional years.
       (2) Petitions based on disproportionate economic 
     hardship.--
       (A) Extension of exemption.--A small refinery may at any 
     time petition the President for an extension of the exemption 
     under paragraph (1) for the reason of disproportionate 
     economic hardship.
       (B) Evaluation of petitions.--In evaluating a petition 
     under subparagraph (A), the President, in consultation with 
     the Secretary, shall consider the findings of the study under 
     paragraph (1)(B) and other economic factors.
       (C) Deadline for action on petitions.--The President shall 
     act on any petition submitted by a small refinery for a 
     hardship exemption not later than 90 days after the date of 
     receipt of the petition.
       (3) Opt-in for small refineries.--A small refinery shall be 
     subject to the requirements of subsection (a) if the small 
     refinery notifies the President that the small refinery 
     waives the exemption under paragraph (1).
       (g) Penalties and Enforcement.--
       (1) Civil penalties.--
       (A) In general.--Any person that violates a regulation 
     promulgated under subsection (a), or that fails to furnish 
     any information required under such a regulation, shall be 
     liable to the United States for a civil penalty of not more 
     than the total of--
       (i) $25,000 for each day of the violation; and
       (ii) the amount of economic benefit or savings received by 
     the person resulting from the violation, as determined by the 
     President.
       (B) Collection.--Civil penalties under subparagraph (A) 
     shall be assessed by, and collected in a civil action brought 
     by, the Secretary or such other officer of the United States 
     as is designated by the President.
       (2) Injunctive authority.--
       (A) In general.--The district courts of the United States 
     shall have jurisdiction to--
       (i) restrain a violation of a regulation promulgated under 
     subsection (a);
       (ii) award other appropriate relief; and
       (iii) compel the furnishing of information required under 
     the regulation.
       (B) Actions.--An action to restrain such violations and 
     compel such actions shall be brought by and in the name of 
     the United States.
       (C) Subpoenas.--In the action, a subpoena for a witness who 
     is required to attend a district court in any district may 
     apply in any other district.
       (h) Effective Date.--Except as otherwise specifically 
     provided in this section, this section takes effect on 
     January 1, 2016.

                         Subtitle C--Oil Shale

     SEC. 221. 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.

Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

     SEC. 231. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

       Section 526 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17142) is repealed.

     SEC. 232. MULTIYEAR CONTRACT AUTHORITY FOR THE DEPARTMENT OF 
                   DEFENSE FOR THE PROCUREMENT OF SYNTHETIC FUELS.

       (a) Multiyear Contracts for the Procurement of Synthetic 
     Fuels Authorized.--
       (1) In general.--Chapter 141 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2410r. Multiyear contract authority: purchase of 
       synthetic fuels

       ``(a) Multiyear Contracts Authorized.--The head of an 
     agency may enter into contracts for a period not to exceed 25 
     years for the purchase of synthetic fuels.
       ``(b) Definitions.--In this section:
       ``(1) The term `head of an agency' has the meaning given 
     that term in section 2302(1) of this title.
       ``(2) The term `synthetic fuel' means any liquid, gas, or 
     combination thereof that--
       ``(A) can be used as a substitute for petroleum or natural 
     gas (or any derivative thereof, including chemical 
     feedstocks); and
       ``(B) is produced by chemical or physical transformation of 
     domestic sources of energy.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 141 of such title is amended by adding 
     at the end the following new item:

``2410r. Multiyear contract authority: purchase of synthetic fuels.''.

       (b) Regulations.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     prescribe regulations providing that the head of an agency 
     may initiate a multiyear contract as authorized by section 
     2410r of title 10, United States Code (as added by subsection 
     (a)), only if the head of the agency has determined in 
     writing that--
       (1) there is a reasonable expectation that throughout the 
     contemplated contract period the head of the agency will 
     request funding for the contract at the level required to 
     avoid contract cancellation;
       (2) the technical risks associated with the technologies 
     for the production of synthetic fuel under the contract are 
     not excessive; and
       (3) the contract will contain appropriate pricing 
     mechanisms to minimize risk to the Government from 
     significant changes in market prices for energy.
       (c) Limitation on Use of Authority.--No contract may be 
     entered into under the authority in section 2410r of title 
     10, United States Code (as so added), until the regulations 
     required by subsection (b) are prescribed.
                                 ______
                                 
  SA 5117. Mr. DOMENICI (for himself and Mr. McConnell) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

         TITLE II--CLEAN COAL-DERIVED FUELS FOR ENERGY SECURITY

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Clean Coal-Derived Fuels 
     for Energy Security Act of 2008''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Clean coal-derived fuel.--
       (A) In general.--The term ``clean coal-derived fuel'' means 
     aviation fuel, motor vehicle fuel, home heating oil, or 
     boiler fuel that is--
       (i) substantially derived from the coal resources of the 
     United States; and
       (ii) refined or otherwise processed at a facility located 
     in the United States that captures up to 100 percent of the 
     carbon dioxide emissions that would otherwise be released at 
     the facility.
       (B) Inclusions.--The term ``clean coal-derived fuel'' may 
     include any other resource that is extracted, grown, 
     produced, or recovered in the United States.
       (2) Covered fuel.--The term ``covered fuel'' means--
       (A) aviation fuel;
       (B) motor vehicle fuel;
       (C) home heating oil; and
       (D) boiler fuel.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (4) Small refinery.--The term ``small refinery'' means a 
     refinery for which the average aggregate daily crude oil 
     throughput for a calendar year (as determined by dividing the 
     aggregate throughput for the calendar year by the number of 
     days in the calendar year) does not exceed 75,000 barrels.

     SEC. 203. CLEAN COAL-DERIVED FUEL PROGRAM.

       (a) Program.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the President shall promulgate 
     regulations to ensure that covered fuel sold or introduced 
     into commerce in the United States (except in

[[Page S7313]]

     noncontiguous States or territories), on an annual average 
     basis, contains the applicable volume of clean coal-derived 
     fuel determined in accordance with paragraph (4).
       (2) Provisions of regulations.--Regardless of the date of 
     promulgation, the regulations promulgated under paragraph 
     (1)--
       (A) shall contain compliance provisions applicable to 
     refineries, blenders, distributors, and importers, as 
     appropriate, to ensure that--
       (i) the requirements of this subsection are met; and
       (ii) clean coal-derived fuels produced from facilities for 
     the purpose of compliance with this title result in life 
     cycle greenhouse gas emissions that are not greater than 
     gasoline; and
       (B) shall not--
       (i) restrict geographic areas in the contiguous United 
     States in which clean coal-derived fuel may be used; or
       (ii) impose any per-gallon obligation for the use of clean 
     coal-derived fuel.
       (3) Relationship to other regulations.--Regulations 
     promulgated under this paragraph shall, to the maximum extent 
     practicable, incorporate the program structure, compliance 
     and reporting requirements established under the final 
     regulations promulgated to implement the renewable fuel 
     program established by the amendment made by section 
     1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-
     58; 119 Stat. 1067).
       (4) Applicable volume.--
       (A) Calendar years 2015 through 2022.--For the purpose of 
     this subsection, the applicable volume for any of calendar 
     years 2015 through 2022 shall be determined in accordance 
     with the following table:

                           Applicable volume of clean coal-derived fuel
Calendar year:                                (in billions of gallons):
  2015............................................................0.75 
  2016.............................................................1.5 
  2017............................................................2.25 
  2018............................................................3.00 
  2019............................................................3.75 
  2020.............................................................4.5 
  2021............................................................5.25 
  2022.............................................................6.0.
       (B) Calendar year 2023 and thereafter.--Subject to 
     subparagraph (C), for the purposes of this subsection, the 
     applicable volume for calendar year 2023 and each calendar 
     year thereafter shall be determined by the President, in 
     coordination with the Secretary and the Administrator of the 
     Environmental Protection Agency, based on a review of the 
     implementation of the program during calendar years 2015 
     through 2022, including a review of--
       (i) the impact of clean coal-derived fuels on the energy 
     security of the United States;
       (ii) the expected annual rate of future production of clean 
     coal-derived fuels; and
       (iii) the impact of the use of clean coal-derived fuels on 
     other factors, including job creation, rural economic 
     development, and the environment.
       (C) Minimum applicable volume.--For the purpose of this 
     subsection, the applicable volume for calendar year 2023 and 
     each calendar year thereafter shall be equal to the product 
     obtained by multiplying--
       (i) the number of gallons of covered fuel that the 
     President estimates will be sold or introduced into commerce 
     in the calendar year; and
       (ii) the ratio that--

       (I) 6,000,000,000 gallons of clean coal-derived fuel; bears 
     to
       (II) the number of gallons of covered fuel sold or 
     introduced into commerce in calendar year 2022.

       (b) Applicable Percentages.--
       (1) Provision of estimate of volumes of certain fuel 
     sales.--Not later than October 31 of each of calendar years 
     2015 through 2021, the Administrator of the Energy 
     Information Administration shall provide to the President an 
     estimate, with respect to the following calendar year, of the 
     volumes of covered fuel projected to be sold or introduced 
     into commerce in the United States.
       (2) Determination of applicable percentages.--
       (A) In general.--Not later than November 30 of each of 
     calendar years 2015 through 2022, based on the estimate 
     provided under paragraph (1), the President shall determine 
     and publish in the Federal Register, with respect to the 
     following calendar year, the clean coal-derived fuel 
     obligation that ensures that the requirements of subsection 
     (a) are met.
       (B) Required elements.--The clean coal-derived fuel 
     obligation determined for a calendar year under subparagraph 
     (A) shall--
       (i) be applicable to refineries, blenders, and importers, 
     as appropriate;
       (ii) be expressed in terms of a volume percentage of 
     covered fuel sold or introduced into commerce in the United 
     States; and
       (iii) subject to paragraph (3)(A), consist of a single 
     applicable percentage that applies to all categories of 
     persons specified in clause (i).
       (3) Adjustments.--In determining the applicable percentage 
     for a calendar year, the President shall make adjustments--
       (A) to prevent the imposition of redundant obligations on 
     any person specified in paragraph (2)(B)(i); and
       (B) to account for the use of clean coal-derived fuel 
     during the previous calendar year by small refineries that 
     are exempt under subsection (f).
       (c) Volume Conversion Factors for Clean Coal-Derived Fuels 
     Based on Energy Content.--
       (1) In general.--For the purpose of subsection (a), the 
     President shall assign values to specific types of clean 
     coal-derived fuel for the purpose of satisfying the fuel 
     volume requirements of subsection (a)(4) in accordance with 
     this subsection.
       (2) Energy content relative to diesel fuel.--For clean 
     coal-derived fuels, 1 gallon of the clean coal-derived fuel 
     shall be considered to be the equivalent of 1 gallon of 
     diesel fuel multiplied by the ratio that--
       (A) the number of British thermal units of energy produced 
     by the combustion of 1 gallon of the clean coal-derived fuel 
     (as measured under conditions determined by the Secretary); 
     bears to
       (B) the number of British thermal units of energy produced 
     by the combustion of 1 gallon of diesel fuel (as measured 
     under conditions determined by the Secretary to be comparable 
     to conditions described in subparagraph (A)).
       (d) Credit Program.--
       (1) In general.--The President, in consultation with the 
     Secretary and the clean coal-derived fuel requirement of this 
     section.
       (2) Market transparency.--In carrying out the credit 
     program under this subsection, the President shall facilitate 
     price transparency in markets for the sale and trade of 
     credits, with due regard for the public interest, the 
     integrity of those markets, fair competition, and the 
     protection of consumers.
       (e) Waivers.--
       (1) In general.--The President, in consultation with the 
     Secretary and the Administrator of the Environmental 
     Protection Agency, may waive the requirements of subsection 
     (a) in whole or in part on petition by 1 or more States by 
     reducing the national quantity of clean coal-derived fuel 
     required under subsection (a), based on a determination by 
     the President (after public notice and opportunity for 
     comment), that--
       (A) implementation of the requirement would severely harm 
     the economy or environment of a State, a region, or the 
     United States; or
       (B) extreme and unusual circumstances exist that prevent 
     distribution of an adequate supply of domestically produced 
     clean coal-derived fuel to consumers in the United States.
       (2) Petitions for waivers.--The President, in consultation 
     with the Secretary and the Administrator of the Environmental 
     Protection Agency, shall approve or disapprove a State 
     petition for a waiver of the requirements of subsection (a) 
     within 90 days after the date on which the petition is 
     received by the President.
       (3) Termination of waivers.--A waiver granted under 
     paragraph (1) shall terminate after 1 year, but may be 
     renewed by the President after consultation with the 
     Secretary and the Administrator of the Environmental 
     Protection Agency.
       (f) Small Refineries.--
       (1) Temporary exemption.--
       (A) In general.--The requirements of subsection (a) shall 
     not apply to small refineries until calendar year 2018.
       (B) Extension of exemption.--
       (i) Study by secretary.--Not later than December 31, 2013, 
     the Secretary shall submit to the President and Congress a 
     report describing the results of a study to determine whether 
     compliance with the requirements of subsection (a) would 
     impose a disproportionate economic hardship on small 
     refineries.
       (ii) Extension of exemption.--In the case of a small 
     refinery that the Secretary determines under clause (i) would 
     be subject to a disproportionate economic hardship if 
     required to comply with subsection (a), the President shall 
     extend the exemption under subparagraph (A) for the small 
     refinery for a period of not less than 2 additional years.
       (2) Petitions based on disproportionate economic 
     hardship.--
       (A) Extension of exemption.--A small refinery may at any 
     time petition the President for an extension of the exemption 
     under paragraph (1) for the reason of disproportionate 
     economic hardship.
       (B) Evaluation of petitions.--In evaluating a petition 
     under subparagraph (A), the President, in consultation with 
     the Secretary, shall consider the findings of the study under 
     paragraph (1)(B) and other economic factors.
       (C) Deadline for action on petitions.--The President shall 
     act on any petition submitted by a small refinery for a 
     hardship exemption not later than 90 days after the date of 
     receipt of the petition.
       (3) Opt-in for small refineries.--A small refinery shall be 
     subject to the requirements of subsection (a) if the small 
     refinery notifies the President that the small refinery 
     waives the exemption under paragraph (1).
       (g) Penalties and Enforcement.--
       (1) Civil penalties.--
       (A) In general.--Any person that violates a regulation 
     promulgated under subsection (a), or that fails to furnish 
     any information required under such a regulation, shall be 
     liable to the United States for a civil penalty of not more 
     than the total of--
       (i) $25,000 for each day of the violation; and
       (ii) the amount of economic benefit or savings received by 
     the person resulting from the violation, as determined by the 
     President.

[[Page S7314]]

       (B) Collection.--Civil penalties under subparagraph (A) 
     shall be assessed by, and collected in a civil action brought 
     by, the Secretary or such other officer of the United States 
     as is designated by the President.
       (2) Injunctive authority.--
       (A) In general.--The district courts of the United States 
     shall have jurisdiction to--
       (i) restrain a violation of a regulation promulgated under 
     subsection (a);
       (ii) award other appropriate relief; and
       (iii) compel the furnishing of information required under 
     the regulation.
       (B) Actions.--An action to restrain such violations and 
     compel such actions shall be brought by and in the name of 
     the United States.
       (C) Subpoenas.--In the action, a subpoena for a witness who 
     is required to attend a district court in any district may 
     apply in any other district.
       (h) Effective Date.--Except as otherwise specifically 
     provided in this section, this section takes effect on 
     January 1, 2016.

     SEC. 204. STUDY OF DIESEL VEHICLE ATTRIBUTES.

       (a) In General.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Transportation, shall conduct a study to 
     identify--
       (1) the environmental and efficiency attributes of diesel-
     fueled vehicles as the vehicles compare to comparable 
     gasoline fueled, E-85 fueled, and hybrid vehicles;
       (2) the technical, economic, regulatory, environmental, and 
     other obstacles to increasing the usage of diesel-fueled 
     vehicles;
       (3) the legislative, administrative, and other actions that 
     could reduce or eliminate the obstacles identified under 
     paragraph (2); and
       (4) the costs and benefits associated with reducing or 
     eliminating the obstacles identified under paragraph (2).
       (b) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Energy and Commerce of the House of 
     Representatives a report describing the results of the study 
     conducted under subsection (a).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

       TITLE III--ADVANCED BATTERIES FOR ELECTRIC DRIVE VEHICLES

     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.--
       (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.
                                 ______
                                 
  SA 5118. Mr. DOMENICI (for himself and Mr. Voinovich) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MULTIYEAR CONTRACT AUTHORITY FOR THE DEPARTMENT OF 
                   DEFENSE FOR THE PROCUREMENT OF SYNTHETIC FUELS.

       (a) Multiyear Contracts for the Procurement of Synthetic 
     Fuels Authorized.--
       (1) In general.--Chapter 141 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2410r. Multiyear contract authority: purchase of 
       synthetic fuels

       ``(a) Multiyear Contracts Authorized.--The head of an 
     agency may enter into contracts for a period not to exceed 25 
     years for the purchase of synthetic fuels.
       ``(b) Definitions.--In this section:
       ``(1) The term `head of an agency' has the meaning given 
     that term in section 2302(1) of this title.
       ``(2) The term `synthetic fuel' means any liquid, gas, or 
     combination thereof that--
       ``(A) can be used as a substitute for petroleum or natural 
     gas (or any derivative thereof, including chemical 
     feedstocks); and
       ``(B) is produced by chemical or physical transformation of 
     domestic sources of energy.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 141 of such title is amended by adding 
     at the end the following new item:

``2410r. Multiyear contract authority: purchase of synthetic fuels.''.

       (b) Regulations.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     prescribe regulations providing that the head of an agency 
     may initiate a multiyear contract as authorized by section 
     2410r of title 10, United States Code (as added by subsection 
     (a)), only if the head of the agency has determined in 
     writing that--
       (1) there is a reasonable expectation that throughout the 
     contemplated contract period the head of the agency will 
     request funding for the contract at the level required to 
     avoid contract cancellation;
       (2) the technical risks associated with the technologies 
     for the production of synthetic fuel under the contract are 
     not excessive; and
       (3) the contract will contain appropriate pricing 
     mechanisms to minimize risk to the Government from 
     significant changes in market prices for energy.
       (c) Limitation on Use of Authority.--No contract may be 
     entered into under the authority in section 2410r of title 
     10, United States Code (as so added), until the regulations 
     required by subsection (b) are prescribed.
                                 ______
                                 
  SA 5119. Mr. GRAHAM (for himself, Mr. Kyl, and Mr. McCain) submitted 
an amendment intended to be proposed

[[Page S7315]]

by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

                   TITLE _--NUCLEAR POWER GENERATION

         Subtitle A--Nuclear Power Technology and Manufacturing

     SEC. _01. DEFINITIONS.

       In this subtitle:
       (1) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the costs of engineering tasks 
     relating to--
       (A) the redesign of manufacturing processes to produce 
     qualifying components and nuclear power generation 
     technologies;
       (B) the design of new tooling and equipment for production 
     facilities that produce qualifying components and nuclear 
     power generation technologies; and
       (C) the establishment or expansion of manufacturing 
     operations for qualifying components and nuclear power 
     generation technologies.
       (2) Nuclear power generation.--The term ``nuclear power 
     generation'' means generation of electricity by an electric 
     generation unit that--
       (A) emits no carbon dioxide into the atmosphere;
       (B) uses uranium as its fuel source; and
       (C) was placed into commercial service after the date of 
     enactment of this Act.
       (3) Nuclear power generation technology.--The term 
     ``nuclear power generation technology'' means a technology 
     used to produce nuclear power generation.
       (4) Qualifying component.--The term ``qualifying 
     component'' means a component that the Secretary of Energy 
     determines to be specially designed for nuclear power 
     generation technology.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. _02. FINANCIAL INCENTIVES PROGRAM.

       (a) In General.--For each fiscal year beginning on or after 
     October 1, 2010, the Secretary shall competitively award 
     financial incentives under this subtitle in the following 
     technology categories:
       (1) The production of electricity from new nuclear power 
     generation.
       (2) Facility establishment or conversion by manufacturers 
     and suppliers of nuclear power generation technology and 
     qualifying components.
       (b) Requirements.--
       (1) In general.--The Secretary shall make awards under this 
     section to--
       (A) domestic producers of new nuclear power generation;
       (B) manufacturers and suppliers of nuclear power generation 
     technology and qualifying components; and
       (C) owners or operators of existing nuclear power 
     generation facilities.
       (2) Basis for awards.--The Secretary shall make awards 
     under this section--
       (A) in the case of producers of new nuclear power 
     generation, based on the bid of each producer in terms of 
     dollars per megawatt-hour of electricity generated;
       (B) in the case of manufacturers and suppliers of nuclear 
     power generation technology and qualifying components, based 
     on the criteria described in section _04; and
       (C) in the case of owners or operators of existing nuclear 
     power generating facilities, based upon criteria described in 
     section _04.
       (3) Acceptance of bids.--In making awards under this 
     subsection, the Secretary shall--
       (A) solicit bids for reverse auction from appropriate 
     producers, manufacturers, and suppliers, as determined by the 
     Secretary; and
       (B) award financial incentives to the producers, 
     manufacturers, and suppliers that submit the lowest bids that 
     meet the requirements established by the Secretary.

     SEC. _03. FORMS OF AWARDS.

       (a) Nuclear Power Generators.--
       (1) In general.--An award for nuclear power generation 
     under this subtitle shall be in the form of a contract to 
     provide a production payment for commercial service of the 
     generation unit in an amount equal to the product obtained by 
     multiplying--
       (A) the amount bid by the producer of the nuclear power 
     generation; and
       (B) except as provided in paragraph (2), the net megawatt-
     hours generated by the nuclear power generation unit each 
     year during the first 10 years following the end of the 
     calendar year of the award.
       (2) First year.--For purposes of paragraph (1)(B), the 
     first year of commercial service of the generating unit shall 
     be within 5 years of the end of the calendar year of the 
     award.
       (b) Manufacturing of Nuclear Power Generation Technology.--
       (1) In general.--An award for facility establishment or 
     conversion costs for nuclear power generation technology 
     under this subtitle shall be in an amount equal to not more 
     than 30 percent of the cost of--
       (A) establishing, reequipping, or expanding a manufacturing 
     facility to produce--
       (i) qualifying nuclear power generation technology; or
       (ii) qualifying components;
       (B) engineering integration costs of nuclear power 
     generation technology and qualifying components; and
       (C) property, machine tools, and other equipment acquired 
     or constructed primarily to enable the recipient to test 
     equipment necessary for the construction or operation of a 
     nuclear power generation facility.
       (2) Amount.--The Secretary shall use the amounts made 
     available to carry out this section to make awards to 
     entities for the manufacturing of nuclear power generation 
     technology.

     SEC. _04. SELECTION CRITERIA.

       In making awards under this subtitle to producers, 
     manufacturers, and suppliers of nuclear power generation 
     technology and qualifying components, the Secretary shall 
     select producers, manufacturers, and suppliers that--
       (1) document the greatest use of domestically-sourced parts 
     and components;
       (2) return to productive service existing idle 
     manufacturing capacity;
       (3) are located in States with the greatest availability of 
     unemployed manufacturing workers;
       (4) demonstrate a high probability of commercial success; 
     and
       (5) meet other appropriate criteria, as determined by the 
     Secretary.

                  Subtitle B--Accelerated Depreciation

     SEC. _11. 5-YEAR ACCELERATED DEPRECIATION PERIOD FOR NEW 
                   NUCLEAR POWER PLANTS.

       (a) In General.--Subparagraph (B) of section 168(e)(3) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``and'' at the end of clause (v), by striking the period at 
     the end of clause (vi)(III) and inserting ``, and'', and by 
     inserting after clause (vi) the following new clause:
       ``(vii) any advanced nuclear power facility (as defined in 
     section 45J(d)(1), determined without regard to subparagraph 
     (B) thereof) the original use of which commences with the 
     taxpayer after December 31, 2008.''.
       (b) Conforming Amendment.--Section 168(e)(3)(E)(vii) of the 
     Internal Revenue Code of 1986 is amended by inserting ``and 
     not described in subparagraph (B)(vii) of this paragraph'' 
     after ``section 1245(a)(3)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2008.

    Subtitle C--Next Generation Nuclear Plant Project Modifications

     SEC. _21. NEXT GENERATION NUCLEAR PLANT PROJECT 
                   MODIFICATIONS.

       (a) Project Establishment.--Section 641 of the Energy 
     Policy Act of 2005 (42 U.S.C. 16021) is amended--
       (1) in subsection (a)--
       (A) by striking the subsection designation and heading and 
     all that follows through ``The Secretary'' and inserting the 
     following:
       ``(a) Establishment and Objective.--
       ``(1) Establishment.--The Secretary''; and
       (B) by adding at the end the following:
       ``(2) Objective.--
       ``(A) Definition of high-temperature, gas-cooled nuclear 
     energy technology.--In this paragraph, the term `high-
     temperature, gas-cooled nuclear energy technology' means any 
     nongreenhouse gas-emitting nuclear energy technology that 
     provides--
       ``(i) an alternative to the burning of fossil fuels for 
     industrial applications; and
       ``(ii) process heat to generate, for example, electricity, 
     steam, hydrogen, and oxygen for activities such as--

       ``(I) petroleum refining;
       ``(II) petrochemical processes;
       ``(III) converting coal to synfuels and other hydrocarbon 
     feedstocks; and
       ``(IV) desalination.

       ``(B) Description of objective.--The objective of the 
     Project shall be to carry out demonstration projects for the 
     development, licensing, and operation of high-temperature, 
     gas-cooled nuclear energy technologies to support 
     commercialization of those technologies.
       ``(C) Requirements.--The functional, operational, and 
     performance requirements for high-temperature, gas-cooled 
     nuclear energy technologies shall be determined by the needs 
     of marketplace industrial end-users (such as owners and 
     operators of nuclear energy facilities, petrochemical 
     entities, and petroleum entities), as projected for the 40-
     year period beginning on the date of enactment of this 
     paragraph.''; and
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``licensing,'' after ``design,'';
       (B) in paragraph (1), by striking ``942(d)'' and inserting 
     ``952(d)''; and
       (C) by striking paragraph (2) and inserting the following:
       ``(2) demonstrates the capability of the nuclear energy 
     system to provide high-temperature process heat to produce--
       ``(A) electricity, steam, and other heat transport fluids; 
     and
       ``(B) hydrogen and oxygen, separately or in combination.''.
       (b) Project Management.--Section 642 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16022) is amended to read as follows:

     ``SEC. 642. PROJECT MANAGEMENT.

       ``(a) Departmental Management.--
       ``(1) In general.--The Project shall be managed in the 
     Department by the Office of Nuclear Energy.
       ``(2) Generation iv nuclear energy systems initiative.--
       ``(A) In general.--Subject to subparagraph (B), the Project 
     may be carried out in coordination with the Generation IV 
     Nuclear Energy Systems Initiative.
       ``(B) Requirement.--Regardless of whether the Project is 
     carried out in coordination with the Generation IV Nuclear 
     Energy Systems Initiative under subparagraph (A), the 
     Secretary shall establish a separate budget line-item for the 
     Project.

[[Page S7316]]

       ``(3) Interaction with industry.--Any activity to support 
     the Project by an individual or entity in the private 
     industry shall be carried out pursuant to a competitive 
     cooperative agreement or other assistance agreement (such as 
     a technology investment agreement) between the Department and 
     the industry group established under subsection (c).
       ``(b) Laboratory Management.--
       ``(1) In general.--The Idaho National Laboratory shall be 
     the lead National Laboratory for the Project.
       ``(2) Collaboration.--The Idaho National Laboratory shall 
     collaborate regarding research and development activities 
     with other National Laboratories, institutions of higher 
     education, research institutes, representatives of industry, 
     international organizations, and Federal agencies to support 
     the Project.
       ``(c) Industry Group.--
       ``(1) Establishment.--The Secretary shall establish a group 
     of appropriate industrial partners in the private sector to 
     carry out cost-shared activities with the Department to 
     support the Project.
       ``(2) Cooperative agreement.--
       ``(A) In general.--The Secretary shall offer to enter into 
     a cooperative agreement or other assistance agreement with 
     the industry group established under paragraph (1) to manage 
     and support the development, licensing, construction, and 
     initial operation of the Project.
       ``(B) Requirement.--The agreement under subparagraph (A) 
     shall contain a provision under which the industry group may 
     enter into contracts with entities in the public sector for 
     the provision of services and products to that sector that 
     reflect typical commercial practices, including (without 
     limitation) the conditions applicable to sales under section 
     2563 of title 10, United States Code.
       ``(C) Project management.--
       ``(i) In general.--The industry group shall use commercial 
     practices and project management processes and tools in 
     carrying out activities to support the Project.
       ``(ii) Interface requirements.--The requirements for 
     interface between the project management requirements of the 
     Department (including the requirements contained in the 
     document of the Department numbered DOE O 413.3A and entitled 
     `Program and Project Management for the Acquisition of 
     Capital Assets') and the commercial practices and project 
     management processes and tools described in clause (i) shall 
     be defined in the agreement under subparagraph (A).
       ``(3) Cost sharing.--Activities of industrial partners 
     funded by the Project shall be cost-shared in accordance with 
     section 988.
       ``(4) Preference.--Preference in determining the final 
     structure of industrial partnerships under this part shall be 
     given to a structure (including designating as a lead 
     industrial partner an entity incorporated in the United 
     States) that retains United States technological leadership 
     in the Project while maximizing cost sharing opportunities 
     and minimizing Federal funding responsibilities.
       ``(d) Reactor Test Capabilities.--The Project shall use, if 
     appropriate, reactor test capabilities at the Idaho National 
     Laboratory.
       ``(e) Other Laboratory Capabilities.--The Project may use, 
     if appropriate, facilities at other National Laboratories.''.
       (c) Project Organization.--Section 643 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16023) is amended--
       (1) in subsection (a)(2), by inserting ``transport and'' 
     before ``conversion'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking subparagraph (C); and
       (ii) by redesignating subparagraphs (A), (B), and (D) as 
     clauses (i), (ii), and (iii), respectively, and indenting the 
     clauses appropriately;
       (B) in paragraph (2)--
       (i) in subparagraph (B), by striking ``, through a 
     competitive process,'';
       (ii) in subparagraph (C), by striking ``reactor'' and 
     inserting ``energy system'';
       (iii) in subparagraph (D), by striking ``hydrogen or 
     electricity'' and inserting ``energy transportation, 
     conversion, and''; and
       (iv) by redesignating subparagraphs (A) through (D) as 
     clauses (i) through (iv), respectively, and indenting the 
     clauses appropriately;
       (C) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting the 
     subparagraphs appropriately;
       (D) by striking ``The Project shall be'' and inserting the 
     following:
       ``(1) In general.--The Project shall be''; and
       (E) by adding at the end the following:
       ``(2) Overlapping phases.--The phases described in 
     paragraph (1) may overlap for the Project or any portion of 
     the Project, as necessary.''; and
       (3) in subsection (c)--
       (A) in paragraph (1)(A), by striking ``powerplant'' and 
     inserting ``power plant'';
       (B) in paragraph (2), by adding at the end the following:
       ``(E) Industry group.--The industry group established under 
     section 642(c) may enter into any necessary contracts for 
     services, support, or equipment in carrying out an agreement 
     with the Department.''; and
       (C) in paragraph (3)--
       (i) in the paragraph heading, by striking ``research'';
       (ii) in the matter preceding subparagraph (A), by striking 
     ``Research'';
       (iii) by striking ``NERAC'' each place it appears and 
     inserting ``NEAC'';
       (iv) in subparagraph (A)--

       (I) by striking clause (i) and inserting the following:

       ``(i) review program plans for the Project prepared by the 
     Office of Nuclear Energy and all progress under the Project 
     on an ongoing basis;'';

       (II) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (III) by adding at the end the following:

       ``(iii) ensure that industrial support for the first 
     project phase under subsection (b)(1)(A) is continued before 
     initiating the second project phase under subsection 
     (b)(1)(B).'';
       (v) in subparagraph (B), by striking ``or appoint'' and 
     inserting ``by appointing''; and
       (vi) in subparagraph (D)--

       (I) by striking ``On a determination'' and inserting the 
     following:

       ``(i) In general.--On a determination'';

       (II) in clause (i) (as designated by subclause (I))--

       (aa) by striking ``subsection (b)(1)'' and inserting 
     ``subsection (b)(1)(A)''; and
       (bb) by striking ``subsection (b)(2)'' and inserting 
     ``subsection (b)(1)(B)''; and

       (III) by adding at the end the following:

       ``(ii) Scope.--The scope of the review conducted under 
     clause (i) shall be in accordance with an applicable 
     cooperative agreement or other assistance agreement (such as 
     a technology investment agreement) between the Secretary and 
     the industry group established under section 642(c).''.
       (d) Nuclear Regulatory Commission.--Section 644 of the 
     Energy Policy Act of 2005 (42 U.S.C. 16024) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively, and indenting 
     the subparagraphs appropriately;
       (B) by striking ``Not later than'' and inserting the 
     following:
       ``(1) In general.--Not later than''; and
       (C) by adding at the end the following:
       ``(2) Requirement.--To the maximum extent practicable, in 
     carrying out subparagraphs (B) and (C) of paragraph (1), the 
     Nuclear Regulatory Commission shall independently review and, 
     as appropriate, use the results of analyses conducted for or 
     by the license applicant.''; and
       (2) by striking subsection (c) and inserting the following:
       ``(c) Ongoing Interaction.--The Nuclear Regulatory 
     Commission shall establish a separate program office for 
     advanced reactors--
       ``(1) to develop and implement regulatory requirements 
     consistent with the safety bases of the type of nuclear 
     reactor developed by the Project, with the specific objective 
     that the requirements shall be applied to follow-on 
     commercialized high-temperature, gas-cooled nuclear reactors;
       ``(2) to avoid conflicts in the availability of resources 
     with licensing activities for light water reactors;
       ``(3) to focus and develop resources of the Nuclear 
     Regulatory Commission for the review of advanced reactors;
       ``(4) to support the effective and timely review of 
     preapplication activities and review of applications to 
     support applicant needs; and
       ``(5) to provide for the timely development of regulatory 
     requirements, including through the preapplication process, 
     and review of applications for advanced technologies, such as 
     high-temperature, gas-cooled nuclear technology systems.''.
       (e) Project Timelines and Authorization of 
     Appropriations.--Section 645 of the Energy Policy Act of 2005 
     (42 U.S.C. 16025) is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) Summary of Agreement.--Not later than December 31, 
     2009, the Secretary shall submit to Congress a report that 
     contains a summary of each cooperative agreement or other 
     assistance agreement (such as a technology investment 
     agreement) entered into between the Secretary and the 
     industry group under section 642(a)(3), including a 
     description of the means by which the agreement will provide 
     for successful completion of the development, design, 
     licensing, construction, and initial operation and 
     demonstration period of the prototype facility of the 
     Project.
       ``(b) Overall Project Plan.--
       ``(1) In general.--Not later than December 31, 2009, the 
     Secretary shall submit to Congress an overall plan for the 
     Project, to be prepared jointly by the Secretary and the 
     industry group established under section 642(c), pursuant to 
     a cooperative agreement or other assistance agreement (such 
     as a technology investment agreement).
       ``(2) Inclusions.--The plan under paragraph (1) shall 
     include--
       ``(A) a summary of the schedule for the design, licensing, 
     construction, and initial operation and demonstration period 
     for the nuclear energy system prototype facility and hydrogen 
     production prototype facility of the Project;
       ``(B) the process by which a specific design for the 
     prototype nuclear energy system facility and hydrogen 
     production facility will be selected;
       ``(C) the specific licensing strategy for the Project, 
     including--
       ``(i) resource requirements of the Nuclear Regulatory 
     Commission; and

[[Page S7317]]

       ``(ii) the schedule for the submission of a preapplication, 
     the submission of an application, and application review for 
     the prototype nuclear energy system facility of the Project;
       ``(D) a summary of the schedule for each major event 
     relating to the Project; and
       ``(E) a time-based cost and cost-sharing profile to support 
     planning for appropriations.''; and
       (2) in subsection (d), in the matter preceding paragraph 
     (1), by striking ``research and construction activities'' and 
     inserting ``research and development, design, licensing, 
     construction, and initial operation and demonstration 
     activities''.
                                 ______
                                 
  SA 5120. Mr. GRAHAM submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 43, after line 17, insert the following:

     SEC. 17. HYDROGEN INFRASTRUCTURE AND FUEL COSTS.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     other credits) is amended by adding at the end the following 
     new section:

     ``SEC. 30D. HYDROGEN INFRASTRUCTURE AND FUEL COSTS.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of--
       ``(1) the hydrogen infrastructure costs credit determined 
     under subsection (b), and
       ``(2) the hydrogen fuel costs credit determined under 
     subsection (c).
       ``(b) Hydrogen Infrastructure Costs Credit.--
       ``(1) In general.--For purposes of subsection (a), the 
     hydrogen infrastructure costs credit determined under this 
     subsection with respect to each eligible hydrogen production 
     and distribution facility of the taxpayer is an amount equal 
     to 30 percent of so much of the infrastructure costs for the 
     taxable year as does not exceed $200,000 with respect to such 
     facility.
       ``(2) Eligible hydrogen production and distribution 
     facility.--For purposes of this subsection, the term 
     `eligible hydrogen production and distribution facility' 
     means a hydrogen production and distribution facility which 
     is placed in service after December 31, 2007.
       ``(c) Hydrogen Fuel Costs Credit.--
       ``(1) In general.--For purposes of subsection (a), the 
     hydrogen fuel costs credit determined under this subsection 
     with respect to each eligible hydrogen device of the taxpayer 
     is an amount equal to the qualified hydrogen expenditure 
     amount with respect to such device.
       ``(2) Qualified hydrogen expenditure amount.--For purposes 
     of this subsection--
       ``(A) In general.--The term `qualified hydrogen expenditure 
     amount' means, with respect to each eligible hydrogen energy 
     conversion device of the taxpayer with a production capacity 
     of not more than 25 kilowatts of electricity, the lesser of--
       ``(i) 30 percent of the amount paid or incurred by the 
     taxpayer during the taxable year for hydrogen which is 
     consumed by such device, and
       ``(ii) $2,000.

     In the case of any device which is not owned by the taxpayer 
     at all times during the taxable year, the $2,000 amount in 
     clause (ii) shall be reduced by an amount which bears the 
     same ratio to $2,000 as the portion of the year which such 
     device is not owned by the taxpayer bears to the entire year.
       ``(B) Higher limitation for devices with more production 
     capacity.--In the case of any eligible hydrogen energy 
     conversion device with a production capacity of--
       ``(i) more than 25 but less than 100 kilowatts of 
     electricity, subparagraph (A) shall be applied by 
     substituting `$4,000' for `$2,000' each place it appears, and
       ``(ii) not less than 100 kilowatts of electricity, 
     subparagraph (A) shall be applied by substituting `$6,000' 
     for `$2,000' each place it appears.
       ``(3) Eligible hydrogen energy conversion devices.--For 
     purposes of this subsection--
       ``(A) In general.--The term `eligible hydrogen energy 
     conversion device' means, with respect to any taxpayer, any 
     hydrogen energy conversion device which--
       ``(i) is placed in service after December 31, 2004, and
       ``(ii) is wholly owned by the taxpayer during the taxable 
     year.

     If an owner of a device (determined without regard to this 
     subparagraph) provides to the primary user of such device a 
     written statement that such user shall be treated as the 
     owner of such device for purposes of this section, then such 
     user (and not such owner) shall be so treated.
       ``(B) Hydrogen energy conversion device.--The term 
     `hydrogen energy conversion device' means--
       ``(i) any electrochemical device which converts hydrogen 
     into electricity, and
       ``(ii) any combustion engine which burns hydrogen as a 
     fuel.
       ``(d) 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.
       ``(e) 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 amounts 
     which (but for subsection (g)) would be allowed as a 
     deduction under section 162 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, 30, 30B, and 30C, over
       ``(B) the tentative minimum tax for the taxable year.
       ``(f) Denial of Double Benefit.--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.
       ``(g) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit.
       ``(h) 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.
       ``(i) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(j) Termination.--This section shall not apply to any 
     costs paid or incurred after the end of the 3-year period 
     beginning on the date of the enactment of this section.''.
       (b) Conforming Amendments.--
       (1) Section 38(b) of the Internal Revenue Code of 1986 is 
     amended by striking ``plus'' at the end of paragraph (31), by 
     striking the period at the end of paragraph (32) and 
     inserting ``plus'', and by adding at the end the following 
     new paragraph:
       ``(33) the portion of the hydrogen infrastructure and fuel 
     credit to which section 30D(e)(1) applies.''.
       (2) Section 55(c)(3) of such Code is amended by inserting 
     ``30D(e)(2),'' after ``30C(d)(2),''.
       (3) Section 1016(a) of such Code 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(d).''.
       (4) Section 6501(m) of such Code is amended by inserting 
     ``30D(h),'' after ``30C(e)(5),''.
       (5) 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 30C the 
     following new item:

``Sec. 30D. Hydrogen infrastructure and fuel costs.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2007, in taxable years ending after such date.
                                 ______
                                 
  SA 5121. Mr. BOND submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

     SEC. __. OFFSHORE OIL PRODUCTION.

       (a) 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 Stop Excessive Energy 
     Speculation 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.
       ``(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.''.
       (b) 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:

[[Page S7318]]

       ``(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).
       ``(7) Qualified revenue.--The term `qualified revenue' 
     means the amount estimated by the Secretary of the Federal 
     share of 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 the enactment of the Stop Excessive 
     Energy Speculation Act of 2008 for new producing areas under 
     this section.
       ``(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.''.
       (c) 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''.

     SEC. __. OIL CONSERVATION THROUGH ADVANCED VEHICLE BATTERIES 
                   AND HYBRID AND PLUG-IN VEHICLES.

       (a) Definitions.--In this section:
       (1) Advanced vehicle battery.--The term ``advanced vehicle 
     battery'' means an electrochemical energy storage system 
     powered directly by electrical current that provides motive 
     power to an electric vehicle, hybrid electric vehicle, or 
     plug-in hybrid electric vehicle.
       (2) Electric vehicle.--The term ``electric vehicle'' means 
     an on-road light-duty or non-road vehicle that uses an 
     advanced vehicle battery or a fuel cell (as defined in 
     section 803 of the Spark M. Matsunaga Hydrogen Act of 2005 
     (42 U.S.C. 16152)).
       (3) Hybrid electric vehicle.--The term ``hybrid electric 
     vehicle'' means a new qualified hybrid motor vehicle (as 
     defined in section 30B(d)(3) of the Internal Revenue Code of 
     1986).
       (4) Plug-in hybrid electric vehicle.--The term ``plug-in 
     hybrid electric vehicle'' means a hybrid electric vehicle 
     that--
       (A) draws motive power from a battery with a capacity of at 
     least 4 kilowatt-hours;
       (B) can be recharged from an external source of electricity 
     for motive power; and
       (C) is a light-, medium-, or heavy-duty motor vehicle or 
     nonroad vehicle (as those terms are defined in section 216 of 
     the Clean Air Act (42 U.S.C. 7550)).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (b) Statement of Policy.--It is the policy of the United 
     States to conserve oil by aggressively promoting advanced 
     vehicle battery technology and the domestic manufacturing 
     capability of the Unites States necessary for widespread 
     commercial viability of hybrid electric vehicles, plug-in 
     hybrid electric vehicles, and electric vehicles.
       (c) Advanced Vehicle Battery Research and Development.--

[[Page S7319]]

       (1) In general.--The Secretary shall--
       (A) expand and accelerate research and development efforts 
     for advanced vehicle batteries; and
       (B) emphasize lower cost enablers for abuse-tolerant 
     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.
       (d) Advanced Vehicle Battery Domestic Manufacturing Process 
     Improvements.--
       (1) In general.--The Secretary shall establish a program to 
     provide grants to improve domestic manufacturing equipment 
     and assembly process capabilities for advanced vehicle 
     batteries and components that--
       (A) reduce manufacturing time;
       (B) reduce manufacturing energy intensity;
       (C) reduce negative environmental impact or byproducts; or
       (D) increase spent battery or component recycling.
       (2) Inclusion.--The Secretary shall include in the program 
     established under paragraph (1) grants to support the 
     development and deployment of domestic high-speed, automated, 
     production-scale advanced vehicle battery and component 
     manufacturing equipment.
       (3) Cost sharing.--The Secretary shall require that not 
     less than 20 percent of the cost of a project funded by a 
     grant under this subsection be provided by a non-Federal 
     source.
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $250,000,000 
     for each of fiscal years 2010 through 2014.
       (e) Advanced Vehicle Battery Domestic Manufacturing Supply 
     Base Expansion.--
       (1) In general.--The Secretary shall establish a program to 
     provide grants to expand the domestic manufacturing supply 
     base for advanced vehicle batteries, battery cell materials, 
     and battery system components.
       (2) Use of funds.--The Secretary may provide grants under 
     paragraph (1) to reequip, expand, or establish manufacturing 
     facilities in the United States.
       (3) Cost sharing.--The Secretary shall require that not 
     less than 20 percent of the cost of a project funded by a 
     grant under this subsection be provided by a non-Federal 
     source.
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $750,000,000 
     for each of fiscal years 2010 through 2014.
                                 ______
                                 
  SA 5122. Mr. BOND submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, insert the following:

     SEC. ___. OIL CONSERVATION THROUGH ADVANCED VEHICLE BATTERIES 
                   FOR HYBRID, PLUG-IN HYBRID AND ELECTRIC 
                   VEHICLES.

       (a) Definitions.--In this section:
       (1) Avanced vehicle battery.--The term ``advanced vehicle 
     battery'' means an electrochemical energy storage system 
     powered directly by electrical current that provides motive 
     power to an electric vehicle, hybrid electric vehicle, or 
     plug-in hybrid electric vehicle.
       (2) Electric vehicle.--The term ``electric vehicle'' means 
     an on-road light-duty or non-road vehicle that uses either an 
     advanced vehicle battery or a fuel cell (as defined in 
     section 803 of the Spark M. Matsunaga Hydrogen Act of 2005 
     (42 U.S.C. 16152)).
       (3) Hybrid electric vehicle.--The term ``hybrid electric 
     vehicle'' means a new qualified hybrid motor vehicle (as 
     defined in section 30B(d)(3) of the Internal Revenue Code of 
     1986).
       (4) Plug-in hybrid electric vehicle.--The term ``plug-in 
     hybrid electric vehicle'' means a hybrid electric vehicle 
     that--
       (A) draws motive power from a battery with a capacity of at 
     least 4 kilowatt-hours;
       (B) can be recharged from an external source of electricity 
     for motive power; and
       (C) is a light-, medium-, or heavy-duty motor vehicle or 
     nonroad vehicle (as those terms are defined in section 216 of 
     the Clean Air Act (42 U.S.C. 7550)).
       (b) Policy.--It is the policy of the United States to 
     conserve oil by aggressively promoting advanced vehicle 
     battery technology and U.S. domestic manufacturing capability 
     necessary for widespread commercial viability of hybrid 
     electric vehicles, plug-in hybrid electric vehicles, and 
     electric vehicles.
       (c) Advanced Vehicle Battery Research and Development.--
       (1) In general.--The Secretary shall expand and accelerate 
     research and development efforts for advanced vehicle 
     batteries with an emphasis on lowering costs and increasing 
     abuse tolerance 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.
       (d) Advanced Vehicle Battery Domestic Manufacturing Process 
     Improvements.--
       (1) In general.--The Secretary shall establish a program to 
     provide grants to improve domestic manufacturing equipment 
     and assembly process capabilities for advanced vehicle 
     batteries and components that--
       (A) reduce manufacturing time;
       (B) reduce manufacturing energy intensity;
       (C) reduce negative environmental impact or byproducts; or
       (D) increase spent battery or component recycling.
       (2) Inclusion.--The Secretary shall include in the program 
     established under subsection (c) grants to support the 
     development and deployment of domestic high-speed, automated, 
     production-scale advanced vehicle battery and component 
     manufacturing equipment.
       (3) Cost sharing.--The Secretary shall require that not 
     less than 20 percent of the cost of a project funded by a 
     grant under this section be provided by a non-Federal source.
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $250,000,000 
     for each of fiscal years 2010 through 2014.
       (e) Advanced Vehicle Battery Domestic Manufacturing Supply 
     Base Expansion.
       (1) In general.--The Secretary shall establish a program to 
     provide grants to expand the domestic manufacturing supply 
     base for advanced vehicle batteries, battery cell materials 
     and battery system components.
       (2) Use of funds.--The Secretary may provide grants under 
     paragraph (1) to reequip, expand or establish manufacturing 
     facilities in the United States.
       (3) Cost sharing.--The Secretary shall require that not 
     less than 20 percent of the cost of a project funded by a 
     grant under this section be provided by a non-Federal source.
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $750,000,000 
     for each of fiscal years 2010 through 2014.
                                 ______
                                 
  SA 5123. Mr. BOND submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end, insert the following:

     SEC.--. OFFSHORE OIL PRODUCTION.

       (a) Publication of Projected State Lines on Outer 
     Contential Shelf.--Section 4(a)(2)(A) of the Outer Contential 
     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 Stop Excessive Energy 
     Speculation 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.
       ``(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.''.
       (b) 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

[[Page S7320]]

     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) ofparagraph (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. 4601-4 et seq.); or ``(iii) any other provisions of 
     law.
       ``(d) Disposition of Qualified Outer Contential Shelf 
     Revenues From Other Areas.--Not withstanding 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.''.
       (c) 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''.
                                 ______
                                 
  SA 5124. Mr. KOHL submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the bill, insert the following:

      TITLE __--NO OIL PRODUCING AND EXPORTING CARTELS ACT OF 2008

     SEC. __. NO OIL PRODUCING AND EXPORTING CARTELS ACT OF 2008.

       (a) Short Title.--This section may be cited as the ``No Oil 
     Producing and Exporting Cartels Act of 2008'' or ``NOPEC''.
       (b) Sherman Act.--The Sherman Act (15 U.S.C. 1 et seq.) is 
     amended by adding after section 7 the following:

     ``SEC. 7A. OIL PRODUCING CARTELS.

       ``(a) In General.--It shall be illegal and a violation of 
     this Act for any foreign state, or any instrumentality or 
     agent of any foreign state, to act collectively or in 
     combination with any other foreign state, any instrumentality 
     or agent of any other foreign state, or any other person, 
     whether by cartel or any other association or form of 
     cooperation or joint action--
       ``(1) to limit the production or distribution of oil, 
     natural gas, or any other petroleum product;
       ``(2) to set or maintain the price of oil, natural gas, or 
     any petroleum product; or
       ``(3) to otherwise take any action in restraint of trade 
     for oil, natural gas, or any petroleum product;
     when such action, combination, or collective action has a 
     direct, substantial, and reasonably foreseeable effect on the 
     market, supply, price, or distribution of oil, natural gas, 
     or other petroleum product in the United States.
       ``(b) Sovereign Immunity.--A foreign state engaged in 
     conduct in violation of subsection (a) shall not be immune 
     under the doctrine of sovereign immunity from the 
     jurisdiction or judgments of the courts of the United States 
     in any action brought to enforce this section.
       ``(c) Inapplicability of Act of State Doctrine.--No court 
     of the United States shall decline, based on the act of state 
     doctrine, to make a determination on the merits in an action 
     brought under this section.
       ``(d) Enforcement.--The Attorney General of the United 
     States may bring an action to enforce this section in any 
     district court of the United States as provided under the 
     antitrust laws.''.
       (c) Sovereign Immunity.--Section 1605(a) of title 28, 
     United States Code, is amended--
       (1) in paragraph (6), by striking ``or'' after the 
     semicolon;
       (2) in paragraph (7), by striking the period and inserting 
     ``; or''; and
       (3) by adding at the end the following:
       ``(8) in which the action is brought under section 7A of 
     the Sherman Act.''.
                                 ______
                                 
  SA 5125. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 43, after line 17, add the following:

     SEC. 17. BAN ON EXPORTING PETROLEUM EXTRACTED FROM PUBLIC 
                   LANDS.

       (a) Definitions.--In this section:
       (1) Petroleum product.--The term ``petroleum product'' 
     means any of the following:
       (A) Finished reformulated or conventional motor gasoline.
       (B) Finished aviation gasoline.
       (C) Kerosene-type jet fuel.
       (D) Kerosene.
       (E) Distillate fuel oil.

[[Page S7321]]

       (F) Residual fuel oil.
       (G) Lubricants.
       (H) Waxes.
       (I) Petroleum coke.
       (J) Asphalt and road oil.
       (2) Public lands.--The term ``public lands'' means any land 
     and interest in land owned by the United States within the 
     several States and administered by the Secretary of the 
     Interior through the Bureau of Land Management or the 
     Minerals Management Service, without regard to how the United 
     States acquired ownership.
       (b) Ban.--
       (1) In general.--Notwithstanding any other provision of 
     law, except as provided in paragraph (2), petroleum extracted 
     from public lands in the United States (including lands 
     located on the outer continental shelf), or a petroleum 
     product produced from such petroleum, may not be exported 
     from the United States.
       (2) Application.--The prohibition on exportation described 
     in paragraph (1) shall apply to petroleum, or petroleum 
     products produced from such petroleum, extracted from public 
     lands leased after the date of the enactment of this Act.
                                 ______
                                 
  SA 5126. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 43, after line 17, add the following:

     SEC. 17. BAN ON EXPORTING PETROLEUM EXTRACTED FROM PUBLIC 
                   LANDS.

       (a) In General.--Notwithstanding any other provision of 
     law, petroleum extracted from public lands in the United 
     States (including lands located on the outer continental 
     shelf), or a petroleum product produced from such petroleum, 
     may not be exported from the United States.
       (b) Definitions.--In this section:
       (1) Petroleum product.--The term ``petroleum product'' 
     means any of the following:
       (A) Finished reformulated or conventional motor gasoline.
       (B) Finished aviation gasoline.
       (C) Kerosene-type jet fuel.
       (D) Kerosene.
       (E) Distillate fuel oil.
       (F) Residual fuel oil.
       (G) Lubricants.
       (H) Waxes.
       (I) Petroleum coke.
       (J) Asphalt and road oil.
       (2) Public lands.--The term ``public lands'' means any land 
     and interest in land owned by the United States within the 
     several States and administered by the Secretary of the 
     Interior through the Bureau of Land Management or the 
     Minerals Management Service, without regard to how the United 
     States acquired ownership.
                                 ______
                                 
  SA 5127. Ms. SNOWE submitted an amendment intended to be proposed by 
her to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

         DIVISION B--EXTENSION OF ENERGY EFFICIENCY INITIATIVES

     SECTION 1. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     division an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.

               TITLE I--NON-BUSINESS ENERGY IMPROVEMENTS

     SEC. 101. PERFORMANCE BASED ENERGY IMPROVEMENTS FOR NON-
                   BUSINESS PROPERTY.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 is amended by inserting after section 25D the 
     following new section:

     ``SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to the amount of 
     qualified energy efficiency expenditures paid or incurred by 
     the taxpayer during the taxable year.
       ``(b) Limitations.--
       ``(1) In general.--The amount allowed as a credit under 
     subsection (a) shall not exceed the product of--
       ``(A) the qualified energy savings achieved, and
       ``(B) $4,000.
       ``(2) Minimum amount of qualified energy savings.--No 
     credit shall be allowed under subsection (a) with respect to 
     any principal residence which achieves a qualified energy 
     savings of less than 20 percent.
       ``(3) Limitation based on amount of tax.--In the case of 
     taxable years to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credit allowable under this subpart 
     (other than this section and sections 23, 24, and 25B) and 
     section 27 for the taxable year.
       ``(c) Qualified Energy Efficiency Expenditures.--For 
     purposes of this section:
       ``(1) In general.--The term `qualified energy efficiency 
     expenditures' means any amount paid or incurred which is 
     related to producing qualified energy savings in a principal 
     residence of the taxpayer which is located in the United 
     States.
       ``(2) No double benefit for certain expenditures.--The term 
     `qualified energy efficiency expenditures' shall not include 
     any expenditure for which a deduction or credit is otherwise 
     allowed to the taxpayer under this chapter.
       ``(3) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 121, except 
     that--
       ``(A) no ownership requirement shall be imposed, and
       ``(B) the period for which a building is treated as used as 
     a principal residence shall also include the 60-day period 
     ending on the 1st day on which it would (but for this 
     subparagraph) first be treated as used as a principal 
     residence.
       ``(d) Qualified Energy Savings.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified energy savings' 
     means, with respect to any principal residence, the amount 
     (measured as a percentage) by which--
       ``(A) the annual energy use with respect to the principal 
     residence after qualified energy efficiency expenditures are 
     made, as certified under paragraph (2), is less than
       ``(B) the annual energy use with respect to the principal 
     residence before the qualified energy efficiency expenditures 
     were made, as certified under paragraph (2).
     In determining annual energy use under subparagraph (B), any 
     energy efficiency improvements which are not attributable to 
     qualified energy efficiency expenditures shall be 
     disregarded.
       ``(2) Certification.--
       ``(A) In general.--The Secretary, in consultation with the 
     Secretary of Energy, shall prescribe the procedures and 
     methods for the making of certifications under this paragraph 
     based on the Residential Energy Services Network (RESNET) 
     Technical Guidelines in effect on the date of the enactment 
     of this section.
       ``(B) Qualified individuals.--Any certification made under 
     this paragraph may only be made by an individual who is 
     recognized by an organization certified by the Secretary for 
     such purposes.
       ``(e) Special Rules.--For purposes of this section rules 
     similar to the rules under paragraphs (4), (5), (6), (7), 
     (8), and (9) of section 25D(e) and section 25C(e)(2) shall 
     apply.
       ``(f) Basis Adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     expenditure with respect to any property, the increase in the 
     basis of such property which would (but for this subsection) 
     result from such expenditure shall be reduced by the amount 
     of the credit so allowed.
       ``(g) Termination.--This section shall not apply with 
     respect to any property placed in service after December 31, 
     2011.''.
       (b) Interim Guidance on Certification.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of the Treasury, in 
     consultation with the Secretary of Energy, shall issue 
     interim guidance on--
       (A) the procedures and methods for making certifications 
     under sections 25E(d)(2)(A) and 179F(d)(2)(A) of the Internal 
     Revenue Code of 1986, as added by subsection (a) and section 
     203, respectively;
       (B) the recognition of qualified individuals under sections 
     25E(d)(2)(B) and 179F(d)(2)(B) of such Code for the purpose 
     of making such certifications; and
       (C) how participation in State energy efficiency programs 
     can be used in the procedures and methods described in 
     subparagraph (A).
       (2) Consultation with stakeholders.--
       (A) In general.--The Secretary of the Treasury, in issuing 
     guidance pursuant to paragraph (1), shall consider comments 
     from energy efficiency experts and other interested parties.
       (B) Other considerations.--In the case of guidance issued 
     pursuant to paragraph (1)(B), the Secretary of the Treasury 
     shall also consider--
       (i) the Residential Energy Services Network Technical 
     Guidelines and other pertinent guidelines for evaluating 
     energy savings;
       (ii) energy modeling software, including software 
     accredited through the Residential Energy Services Network; 
     and
       (iii) quality assurance procedures of the Building 
     Performance Institute, Home Performance through Energy Star, 
     and the Residential Energy Services Network.
       (c) Alternative Certification Methods.--
       (1) In general.--The Secretary of the Treasury shall 
     establish a procedure for individuals and businesses to 
     petition for the approval of alternative methods of 
     certification under sections 25E(d)(2)(A) and 179F(d)(2)(A) 
     of the Internal Revenue Code of 1986, as added by subsection 
     (a) and section 203, respectively.
       (2) Determination.--The Secretary of the Treasury shall 
     make a determination on the approval or disapproval of such 
     alternative methods of certification not later than 90 days 
     after receiving a petition under paragraph (1).
       (d) Conforming Amendments.--

[[Page S7322]]

       (1) Section 26(a)(1) is amended by striking ``and 25B'' and 
     inserting ``25B, and 25E''.
       (2) Section 1016(a) 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 25E(f).''.
       (3) The table of sections for subpart A of part IV of 
     subchapter A chapter 1 is amended by inserting after the item 
     relating to section 25D the following new item:

``Sec. 25E. Performance based energy improvements.''.

       (e) Effective Dates.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after the date of the enactment of this Act.

     SEC. 102. EXTENSION AND MODIFICATION OF CREDIT FOR 
                   NONBUSINESS ENERGY PROPERTY.

       (a) Extension.--Subsection (g) of section 25C (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2011''.
       (b) Labor Costs for Qualified Energy Efficiency 
     Improvements.--Section 25C(c)(1) is amended by adding at the 
     end the following new flush sentence:
     ``The amount taken into account under subsection (a)(1) with 
     respect to qualified energy efficiency improvements shall 
     include expenditures for labor costs properly allocable to 
     the onsite preparation, assembly, or original installation of 
     any component described in this paragraph.''.
       (c) Modifications for Residential Energy Efficiency 
     Property Expenditures.--
       (1) Increased limitation for oil furnaces and natural gas, 
     propane, and oil hot water boilers.--
       (A) In general.--Subparagraphs (B) and (C) of section 
     25C(b)(3) are amended to read as follows:
       ``(B) $150 for any qualified natural gas furnace or 
     qualified propane furnace, and
       ``(C) $300 for--
       ``(i) any item of energy-efficient building property, and
       ``(ii) any qualified oil furnace, qualified natural gas hot 
     water boiler, qualified propane hot water boiler, or 
     qualified oil hot water boiler.''.
       (B) Conforming amendment.--Clause (ii) of section 
     25C(d)(2)(A) is amended to read as follows:
       ``(ii) any qualified natural gas furnace, qualified propane 
     furnace, qualified oil furnace, qualified natural gas hot 
     water boiler, qualified propane hot water boiler, or 
     qualified oil hot water boiler, or''.
       (2) Modifications of standards for energy-efficient 
     building property.--
       (A) Electric heat pumps.--Subparagraph (B) of section 
     25C(d)(3) is amended to read as follows:
       ``(A) an electric heat pump which achieves the highest 
     efficiency tier established by the Consortium for Energy 
     Efficiency, as in effect on January 1, 2008.''.
       (B) Central air conditioners.--Section 25C(d)(3)(D) is 
     amended by striking ``2006'' and inserting ``2008''.
       (C) Water heaters.--Subparagraph (E) of section 25C(d) is 
     amended to read as follows:
       ``(E) a natural gas, propane, or oil water heater which has 
     either an energy factor of at least 0.80 or a thermal 
     efficiency of at least 90 percent.''.
       (D) Oil furnaces and hot water boilers.--Paragraph (4) of 
     section 25C(d) is amended to read as follows:
       ``(4) Qualified natural gas, propane, and oil furnaces and 
     hot water boilers.--
       ``(A) Qualified natural gas furnace.--The term `qualified 
     natural gas furnace' means any natural gas furnace which 
     achieves an annual fuel utilization efficiency rate of not 
     less than 95.
       ``(B) Qualified natural gas hot water boiler.--The term 
     `qualified natural gas hot water boiler' means any natural 
     gas hot water boiler which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(C) Qualified propane furnace.--The term `qualified 
     propane furnace' means any propane furnace which achieves an 
     annual fuel utilization efficiency rate of not less than 95.
       ``(D) Qualified propane hot water boiler.--The term 
     `qualified propane hot water boiler' means any propane hot 
     water boiler which achieves an annual fuel utilization 
     efficiency rate of not less than 90.
       ``(E) Qualified oil furnaces.--The term `qualified oil 
     furnace' means any oil furnace which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(F) Qualified oil hot water boiler.--The term `qualified 
     oil hot water boiler' means any oil hot water boiler which 
     achieves an annual fuel utilization efficiency rate of not 
     less than 90.''.
       (3) Elimination of lifetime limitation.--Paragraph (1) of 
     section 25C(b) is amended by inserting ``by reason of 
     subsection (a)(1)'' after ``under this section''.
       (d) Modification of Qualified Energy Efficiency 
     Improvements.--
       (1) In general.--Paragraph (1) of section 25C(c) is amended 
     by inserting ``, or an asphalt roof with appropriate cooling 
     granules,'' before ``which meet the Energy Star program 
     requirements''.
       (2) Building envelope component.--Subparagraph (D) of 
     section 25C(c)(2) is amended--
       (A) by inserting ``or asphalt roof'' after ``metal roof'', 
     and
       (B) by inserting ``or cooling granules'' after ``pigmented 
     coatings''.
       (e) Natural Gas Fired Heat Pumps.--Section 25C(d)(3), as 
     amended by this section, is amended by striking ``and'' at 
     the end of subparagraph (D), by striking the period at the 
     end of subparagraph (E) and inserting ``, and'', and by 
     adding at the end the following new subparagraph:
       ``(F) a natural gas fired heat pump with a heating 
     coefficient of performance (COP) of at least 1.1.''.
       (f) Elimination of Credit for Qualified Energy Efficiency 
     Improvements in 2010.--
       (1) In general.--Subsection (a) of section 25C is amended 
     to read as follows:
       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to the 
     amount of residential energy property expenditures paid or 
     incurred by the taxpayer during the taxable year.''.
       (2) Conforming amendments.--
       (A) Section 25C(b), as amended by subsection (b), is 
     amended by striking paragraphs (1) and (2) and by 
     redesignating paragraph (3) as paragraph (1).
       (B) Section 25C(b)(1), as redesignated by subparagraph (A), 
     is amended by striking ``by reason of subsection (a)(2)''.
       (C) Section 25C is amended by striking subsection (c).
       (g) Clarification of Eligibility of Standards for Qualified 
     Energy Property.--Section 25C(d)(2)(C) is amended by striking 
     ``and'' at the end of clause (i), by striking the period at 
     the end of clause (ii) and inserting ``, and'', and by adding 
     at the end the following new clause:
       ``(iii) shall allow for the testing of products regardless 
     of the size or capacity of the product.''.
       (h) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     property placed in service after the date of the enactment of 
     this Act.
       (2) Standards for electric heat pumps and central air 
     conditioners.--The amendments made by subparagraphs (A) and 
     (B) subsection (c)(2) shall apply to property placed in 
     service after December 31, 2007.
       (3) Elimination of credit for qualified energy efficiency 
     improvements.--The amendments made by subsection (f) shall 
     apply to property placed in service after December 31, 2009.

     SEC. 103. MODIFICATION OF CREDIT FOR SOLAR ELECTRIC PROPERTY 
                   AND SOLAR HOT WATER PROPERTY.

       (a) In General.--Subsection (a) of section 25D (relating to 
     allowance of credit) is amended by striking paragraphs (1) 
     and (2) and inserting the following:
       ``(1) 100 percent of the qualified solar electric property 
     expenditures made by the taxpayer during such year,
       ``(2) 100 percent of the qualified solar hot water property 
     expenditures made by the taxpayer during such year, and''.
       (b) Limitations.--
       (1) In general.--Paragraph (1) of section 25D(b) is amended 
     by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) $2 with respect to each peak watt of capacity of 
     qualified solar electric property for which qualified solar 
     electric property expenditures are made,
       ``(B) in the case of qualified solar water heating property 
     expenditures, an amount equal to--
       ``(i) in the case of a dwelling unit which uses electricity 
     to heat water, $0.35 with respect to each kilowatt per year 
     of savings of qualified solar hot water property for which 
     qualified solar water heating property expenditures are made, 
     or
       ``(ii) in the case of a dwelling unit which uses natural 
     gas to heat water, $7 with respect to each annual Therm of 
     natural gas savings of qualified solar hot water property for 
     which qualified solar water heating property expenditures are 
     made, and''.
       (2) Determination of savings.--Paragraph (1) of section 
     25D(b) is amended by adding at the end the following new 
     flush sentence:
     ``For purposes of subparagraph (B), savings shall be 
     determined under regulations prescribed by the Secretary 
     based on the OG-300 Standard for the Annual Performance of 
     OG-300 Certified Systems of the Solar Rating and 
     Certification Corporation.''.
       (c) Definitions.--
       (1) In general.--Section 25D(d) is amended--
       (A) by redesignating paragraph (3) as paragraph (5), and
       (B) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Qualified solar electric property expenditures.--The 
     term `qualified solar electric property expenditures' means 
     any amount paid or incurred for qualified solar electric 
     property.
       ``(2) Qualified solar electric property.--The term 
     `qualified solar electric property' means solar electric 
     property (as defined in section 179G(c)(2)(B)) installed on 
     or in connection with a dwelling unit located in the United 
     States and used as a residence by the taxpayer.
       ``(3) Qualified solar water heating property 
     expenditures.--The term `qualified solar water heating 
     property expenditures' means any amount paid or incurred for 
     qualified solar hot water property.
       ``(4) Qualified solar hot water property.--The term 
     `qualified solar hot water property' means solar hot water 
     property (as defined in section 179G(c)(2)(C)) installed on 
     or in connection with a dwelling unit located

[[Page S7323]]

     in the United States and used as a residence by the 
     taxpayer.''.
       (2) Conforming amendments.--
       (A) Section 25D(e)(2) is amended by striking ``property 
     described in paragraph (1) and (2) of subsection (d)'' and 
     inserting ``qualified solar electric property or qualified 
     solar hot water property''.
       (B) Section 25D(e)(4)(C) is amended by striking 
     ``paragraphs (1), (2), and (3)'' and inserting ``paragraphs 
     (1),(3), and (5)''.
       (d) Dollar Amounts in Case of Joint Occupancy.--Clauses (i) 
     and (ii) of section 25D(e)(4)(A) are amended to read as 
     follows:
       ``(i) $2 in the case of each peak watt of capacity of 
     qualified solar electric property for which qualified solar 
     electric property expenditures are made,
       ``(ii) in the case of qualified solar water heating 
     property expenditures, an amount equal to--

       ``(I) in the case of a dwelling unit which uses electricity 
     to heat water, $0.35 with respect to each kilowatt per year 
     of savings of qualified solar hot water property for which 
     qualified solar water heating property expenditures are made, 
     or
       ``(II) in the case of a dwelling unit which uses natural 
     gas to heat water, $7 with respect to each annual Therm of 
     natural gas savings of qualified solar hot water property for 
     which qualified solar water heating property expenditures are 
     made, and''.

       (e) Extension of Credit.--Subsection (g) of section 25D is 
     amended by striking ``2007'' and inserting ``2010''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

             TITLE II--BUSINESS-RELATED ENERGY IMPROVEMENTS

     SEC. 201. EXTENSION AND MODIFICATION OF NEW ENERGY EFFICIENT 
                   HOME CREDIT.

       (a) Extension.--Subsection (g) of section 45L (relating to 
     termination), as amended by section 205 of division A of the 
     Tax Relief and Health Care Act of 2006, is amended by 
     striking ``December 31, 2008'' and inserting ``December 31, 
     2011''.
       (b) Modification.--
       (1) In general.--Subparagraph (B) of section 45L(a)(1) is 
     amended to read as follows:
       ``(B)(i) acquired by a person from such eligible contractor 
     and used by any person as a residence during the taxable 
     year, or
       ``(ii) used by such eligible contractor as a residence 
     during the taxable year.''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect as if included in section 1332 of the 
     Energy Policy Act of 2005.

     SEC. 202. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY 
                   EFFICIENT COMMERCIAL BUILDINGS.

       (a) Extension.--Subsection (h) of section 179D (relating to 
     termination) is amended to read as follows:
       ``(h) Termination.--This section shall not apply with 
     respect to property--
       ``(1) which is certified under subsection (d)(6) after 
     December 31, 2012, or
       ``(2) which is placed in service after December 31, 2014.

     A provisional certification shall be treated as meeting the 
     requirements of paragraph (1) if it is based on the building 
     plans, subject to inspection and testing after 
     installation.''.
       (b) Increase in Maximum Amount of Deduction.--
       (1) In general.--Subparagraph (A) of section 179D(b)(1) is 
     amended by striking ``$1.80'' and inserting ``$2.25''.
       (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
     amended--
       (A) by striking ``$.60'' and inserting ``$0.75'', and
       (B) by striking ``$1.80'' and inserting ``$2.25''.
       (c) Modifications to Certain Special Rules.--
       (1) Methods of calculating energy savings.--
       (A) In general.--Paragraph (2) of section 179D(d) is 
     amended--
       (i) by striking ``based on'' and inserting ``in accordance 
     with'',
       (ii) by inserting ``, except as necessary to carry out the 
     requirements of this section, to accommodate a reference to 
     Standard 90.1-2001, to extend the applicability of such 
     manual to national conditions, or to update technical 
     standards based on new information'' before the period at the 
     end, and
       (iii) by adding at the end the following new sentence: 
     ``The calculation methods contained in such regulations shall 
     also provide for the calculation of appropriate energy 
     savings for design methods and technologies not otherwise 
     credited in such manual or standard, including energy savings 
     associated with natural ventilation, evaporative cooling, 
     automatic lighting controls (such as occupancy sensors, 
     photocells, and timeclocks), daylighting, designs utilizing 
     semi-conditioned spaces which maintain adequate comfort 
     conditions without air conditioning or without heating, 
     improved fan system efficiency (including reductions in 
     static pressure), advanced unloading mechanisms for 
     mechanical cooling (such as multiple or variable speed 
     compressors), on-site generation of electricity (including 
     combined heat and power systems, fuel cells, and renewable 
     energy generation such as solar energy), and wiring with 
     lower energy losses than wiring satisfying Standard 90.1-2001 
     requirements for building power distribution systems.''.
       (B) Requirements for computer software used in calculating 
     energy and power consumption costs.--Paragraph (3)(B) of 
     section 179D(d) is amended by striking ``and'' at the end of 
     clause (ii), by striking the period at the end of clause 
     (iii) and inserting ``, and'', and by adding at the end the 
     following:
       ``(iv) which automatically--

       ``(I) generates the features, energy use, and energy and 
     power consumption costs of a reference building which meets 
     Standard 90.1-2001,
       ``(II) generates the features, energy use, and energy and 
     power consumption costs of a compliant building or system 
     which reduces the annual energy and power costs by 50 percent 
     compared to Standard 90.1-2001, and
       ``(III) compares such features, energy use, and consumption 
     costs to the features, energy use, and consumption costs of 
     the building or system with respect to which the calculation 
     is being made.''.

       (2) Targets for partial allowance of credit.--Paragraph 
     (1)(B) of section 179D(d) is amended--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(i) In general.--The Secretary'', and
       (B) by adding at the end the following:
       ``(ii) Additional requirements.--For purposes of clause 
     (i)--

       ``(I) the Secretary shall determine prescriptive criteria 
     that can be modeled explicitly for reference buildings which 
     meet the requirements of subsection (c)(1)(D) for different 
     building types and regions,
       ``(II) a system may be certified as meeting the target 
     under subparagraph (A)(ii) if the appropriate reference 
     building either meets the requirements of subsection 
     (c)(1)(D) with such system rather than the comparable 
     reference system (using the calculation under paragraph (2)) 
     or meets the relevant prescriptive criteria under subclause 
     (I), and
       ``(III) the lighting system target shall be based on 
     lighting power density, except that it shall allow lighting 
     controls credits that trade off for lighting power density 
     savings based on Section 3.2.2 of the 2005 California 
     Nonresidential Alternative Calculation Method Approval 
     Manual.

       ``(iii) Publication.--The Secretary shall publish in the 
     Federal Register the bases for the target levels established 
     in the regulations under clause (i).''.
       (d) Alternative Standards.--Section 179D(d) is amended by 
     adding at the end the following new paragraph:
       ``(7) Alternative standards pending final regulations.--
     Until such time as the Secretary issues final regulations 
     under paragraph (1)(B)--
       ``(A) in the case of property which is part of a building 
     envelope, the building envelope system target under paragraph 
     (1)(A)(ii) shall be a 7 percent reduction in total annual 
     energy and power costs (determined in the same manner as 
     under subsection (c)(1)(D)), and
       ``(B) in the case of property which is part of the heating, 
     cooling, ventilation, and hot water systems, the heating, 
     cooling, ventilation, and hot water system shall be treated 
     as meeting the target under paragraph (1)(A)(ii) if it would 
     meet the requirement in subsection (c)(1)(D) if combined with 
     a building envelope system and lighting system which met 
     their respective targets under paragraph(1)(A)(ii) (including 
     interim targets in effect under subsections (f) and 
     subparagraph (A)).''.
       (e) Modifications to Lighting Standards.--
       (1) Standards to be alternate standards.--Subsection (f) of 
     section 179D is amended by--
       (A) striking ``Interim'' in the heading and inserting 
     ``Alternative'', and
       (B) inserting ``, or, if the taxpayer elects, in lieu of 
     the target set forth in such final regulations'' after 
     ``lighting system'' at the end of the matter preceding 
     paragraph (1).
       (2) Qualified individuals.--Section 179D(d)(6)(C) is 
     amended by adding at the end the following: ``For purposes of 
     certification of whether the alternative target for lighting 
     systems under subsection (f) is met, individuals qualified to 
     determine compliance shall include individuals who are 
     certified as Lighting Certified (LC) by the National Council 
     on Qualifications for the Lighting Professions, Certified 
     Energy Managers (CEM) by the Association of Energy Engineers, 
     and LEED Accredited Professionals (AP) by the U.S. Green 
     Buildings Council.''.
       (3) Requirement for bilevel switching.--Section 179D(f)(2) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(3) Application of subsection to bilevel switching.--
       ``(A) In general.--Notwithstanding paragraph (2)(C)(i), 
     this subsection shall apply to a system which does not 
     include provisions for bilevel switching if the reduction in 
     lighting power density is at least 37.5 percent of the 
     minimum requirements in Table 9.3.1.1 or Table 9.3.1.2. (not 
     including additional interior lighting allowances) of 
     Standard 90.1-2001.
       ``(B) Reduction in deduction.--In the case of a system to 
     which this subsection applies by reason of subparagraph (A), 
     paragraph (2) shall be applied--
       ``(i) by substituting `50 percent' for `40 percent' in 
     subparagraph (A) thereof, and
       ``(ii) in subparagraph (B)(ii) thereof--

       ``(I) by substituting `37.5 percentage points' for `25 
     percentage points', and
       ``(II) by substituting `12.5' for `15'.''.

       (f) Public Property.--Paragraph (4) of section 179(d) is 
     amended by striking ``the Secretary shall promulgate a 
     regulation to allow the allocation of the deduction'' and 
     inserting ``the deduction under this section shall be 
     allowed''.

[[Page S7324]]

       (g) Effective Date.--The amendments made by this section 
     shall apply to property placed in service in taxable years 
     beginning after the date of the enactment of this Act.

     SEC. 203. DEDUCTION FOR ENERGY EFFICIENT LOW-RISE BUILDINGS.

       (a) In General.--Part VI of subchapter B of chapter 1, as 
     amended by section 404 of division A of the Tax Relief and 
     Health Care Act of 2006, is amended by inserting after 
     section 179E the following new section:

     ``SEC. 179F. ENERGY EFFICIENT LOW-RISE BUILDINGS DEDUCTION.

       ``(a) In General.--There shall be allowed as a deduction an 
     amount equal to the amount of qualified energy efficiency 
     expenditures paid or incurred by the taxpayer during the 
     taxable year.
       ``(b) Limitations.--
       ``(1) In general.--The amount allowed as a credit under 
     subsection (a) with respect to any dwelling unit shall not 
     exceed the product of--
       ``(A) the qualified energy savings achieved, and
       ``(B) $12,000.
       ``(2) Minimum amount of qualified energy savings.--No 
     credit shall be allowed under subsection (a) with respect to 
     any dwelling unit in a qualified low-rise building which 
     achieves a qualified energy savings of less than 20 percent.
       ``(c) Qualified Energy Efficiency Expenditures.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified energy efficiency 
     expenditures' means any amount paid or incurred which is 
     related to producing qualified energy savings in any dwelling 
     unit located in a qualified low-rise building of the taxpayer 
     which is located in the United States.
       ``(2) No double benefit for certain expenditures.--The term 
     `qualified energy efficiency expenditures' shall not include 
     any expenditure for any property for which a deduction has 
     been allowed to the taxpayer under section 179F.
       ``(3) Qualified low-rise building.--The term `qualified 
     low-rise building' means a building--
       ``(A) with respect to which depreciation is allowable under 
     section 167,
       ``(B) which is used for multifamily housing, and
       ``(C) which is not within the scope of Standard 90.1-2001 
     (as defined under section 179D(c)(2)).
       ``(d) Qualified Energy Savings.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified energy savings' 
     means, with respect to any dwelling unit in a qualified low-
     rise building, the amount (measured as a percentage) by 
     which--
       ``(A) the annual energy use with respect to such dwelling 
     unit after qualified energy efficiency expenditures are made, 
     as certified under paragraph (2), is less than
       ``(B) the annual energy use with respect to such dwelling 
     unit before the qualified energy efficiency expenditures were 
     made, as certified under paragraph (2).
     In determining annual energy use under subparagraph (B), any 
     energy efficiency improvements which are not attributable to 
     qualified energy efficiency expenditures shall be 
     disregarded.
       ``(2) Certification.--
       ``(A) In general.--The Secretary, in consultation with the 
     Secretary of Energy, shall prescribe the procedures and 
     method for the making of certifications under this paragraph 
     based on the Residential Energy Services Network (RESNET) 
     Technical Guidelines in effect on the date of the enactment 
     of this Act.
       ``(B) Qualified individuals.--Any certification made under 
     this paragraph may only be made by an individual who is 
     recognized by an organization certified by the Secretary for 
     such purposes.
       ``(e) Special Rules.--For purposes of this section, rules 
     similar to the rules under paragraphs (8) and (9) of section 
     25D(e) shall apply.
       ``(f) Basis Adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     expenditure with respect to any property, the increase in the 
     basis of such property which would (but for this subsection) 
     result from such expenditure shall be reduced by the amount 
     of the credit so allowed.
       ``(g) Termination.--This section shall not apply with 
     respect to any property placed in service after December 31, 
     2011.''.
       (b) Conforming Amendments.--
       (1) Section 263(a)(1), as amended by section 404 of 
     division A of the Tax Relief and Health Care Act of 2006, the 
     is amended by striking ``or'' at the end of subparagraph (K), 
     by striking the period at the end of subparagraph (L) and 
     inserting ``, or'', and by inserting after subparagraph (L) 
     the following new subparagraph:
       ``(M) expenditures for which a deduction is allowed under 
     section 179F.''.
       (2) Section 312(k)(3)(B) is amended by striking ``179, 
     179A, 179B, 179C, 179D, or 179E'' each place it appears in 
     the heading and text and inserting ``179, 179A, 179B, 179C, 
     179D, 179E, or 179F''.
       (3) Section 1016(a), as amended by section 101, is amended 
     by striking ``and'' at the end of paragraph (37), by striking 
     the period at the end of paragraph (38) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(39) to the extent provided in section 179F(f).''.
       (4) Section 1245(a) is amended by inserting ``179F,'' after 
     ``179E,'' both places it appears in paragraphs (2)(C) and 
     (3)(C).
       (5) The table of sections for part VI of subchapter B is 
     amended by inserting after the item relating to section 179E 
     the following new item:

``Sec. 179F. Energy efficient low-rise buildings deduction.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after the date of the enactment of this Act.

     SEC. 204. ENERGY EFFICIENT PROPERTY DEDUCTION.

       (a) In General.--Part VI of subchapter B of chapter 1, as 
     amended by section 203, is amended by inserting after section 
     179F the following new section:

     ``SEC. 179G. ENERGY EFFICIENT PROPERTY.

       ``(a) Allowance of Deduction.--There shall be allowed as a 
     deduction an amount equal to the energy efficient property 
     expenditures paid or incurred by the taxpayer during the 
     taxable year.
       ``(b) Limitation.--The amount of the deduction allowed 
     under subsection (a) for any taxable years shall not exceed--
       ``(1) $150 for any advanced main air circulating fan,
       ``(2) $450 for any qualified natural gas furnace or 
     qualified propane furnace,
       ``(3) $900 for--
       ``(A) any item of energy-efficient building property, and
       ``(B) any qualified oil furnace, qualified natural gas hot 
     water boiler, qualified propane hot water boiler, or 
     qualified oil hot water boiler,
       ``(4) $9 with respect to each peak watt of capacity of 
     solar electric property,
       ``(5) in the case of solar hot water property, an amount 
     equal to--
       ``(A) in the case of a dwelling unit which uses electricity 
     to heat water, $1 with respect to each kilowatt per year of 
     savings of such solar hot water property, or
       ``(B) in the case of a dwelling unit which uses natural gas 
     to heat water, $21 with respect to each annual Therm of 
     natural gas savings of such solar hot water property.
     For purposes of paragraph (5), savings shall be determined 
     under regulations prescribed by the Secretary based on the 
     OG-300 Standard for the Annual Performance of OG-300 
     Certified Systems of the Solar Rating and Certification 
     Corporation.
       ``(c) Energy Efficient Property Expenditures.--For purposes 
     of this section--
       ``(1) In general.--The term `energy efficient property 
     expenditures' means expenditures paid by the taxpayer for 
     qualified energy property which is--
       ``(A) of a character subject to the allowance for 
     depreciation, and
       ``(B) originally placed in service by the taxpayer.
       ``(2) Qualified energy property.--
       ``(A) In general.--The term `qualified energy property' has 
     the meaning given such term by section 25C(d)(2), except that 
     such term shall include solar electric property and solar hot 
     water property.
       ``(B) Solar electric property.--The term `solar electric 
     property' means property which uses solar energy to generate 
     electricity.
       ``(C) Solar hot water property.--The term `solar hot water 
     property' means property used to heat water if at least half 
     of the energy used by such property for such purpose is 
     derived from the sun.
       ``(d) Basis Adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     expenditure with respect to any property, the increase in the 
     basis of such property which would (but for this subsection) 
     result from such expenditure shall be reduced by the amount 
     of the credit so allowed.
       ``(e) Termination.--This section shall not apply with 
     respect to any property placed in service after December 31, 
     2010.''.
       (b) No Double Benefit.--Section 179D(c) is amended by 
     adding at the end the following new paragraph:
       ``(3) Certain property excluded.--The term `energy 
     efficient commercial building property' does not include any 
     property with respect to which a credit has been allowed to 
     the taxpayer under section 179G.''.
       (c) Conforming Amendments.--
       (1) Section 263(a)(1), as amended by section 203, is 
     amended by striking ``or'' at the end of subparagraph (K), by 
     striking the period at the end of subparagraph (L) and 
     inserting ``, or'', and by inserting after subparagraph (L) 
     the following new subparagraph:
       ``(M) expenditures for which a deduction is allowed under 
     section 179G.''.
       (2) Section 312(k)(3)(B), as amended by section 203, is 
     amended by striking ``179, 179A, 179B, 179C, 179D, 179E, or 
     179F'' each place it appears in the heading and text and 
     inserting ``179, 179A, 179B, 179C, 179D, 179E, 179F, or 
     179G''.
       (3) Section 1016(a), as amended by section 203, is amended 
     by striking ``and'' at the end of paragraph (38), by striking 
     the period at the end of paragraph (39) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(40) to the extent provided in section 179G(e).''.
       (4) Section 1245(a), as amended by section 203 is amended 
     by inserting ``179G,'' after ``179F,'' both places it appears 
     in paragraphs (2)(C) and (3)(C).
       (5) The table of sections for part VI of subchapter B is 
     amended by inserting after the item relating to section 179F 
     the following new item:

``Sec. 179G. Energy efficient property.''.


[[Page S7325]]


       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service in taxable years 
     beginning after the date of the enactment of this Act.

     SEC. 205. EXTENSION OF INVESTMENT TAX CREDIT WITH RESPECT TO 
                   SOLAR ENERGY PROPERTY AND QUALIFIED FUEL CELL 
                   PROPERTY.

       (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a), as amended by section 207 of 
     division A of the Tax Relief and Health Care Act of 2006, are 
     each amended by striking ``2009'' and inserting ``2012''.
       (b) Eligible Fuel Cell Property.--Paragraph (1)(E) of 
     section 48(c), as so amended, is amended by striking ``2008'' 
     and inserting ``2011''.

        TITLE III--INCENTIVES FOR ENERGY SAVINGS CERTIFICATIONS

     SEC. 301. CREDIT FOR ENERGY SAVINGS CERTIFICATIONS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1, as amended by section 405 of division A of the Tax 
     Relief and Health Care Act of 2006, is amended by adding at 
     the end the following new section:

     ``SEC. 45O. ENERGY SAVINGS CERTIFICATION CREDIT.

       ``(a)  In General.--For purposes of section 38, the energy 
     savings certification credit determined under this section 
     for any taxable year is an amount equal to the sum of--
       ``(1) the qualified training and certification costs paid 
     or incurred by the taxpayer which may be taken into account 
     for such taxable year, plus
       ``(2) the qualified certification equipment expenditures 
     paid or incurred by the taxpayer which may be taken into 
     account for such taxable year.
       ``(b) Qualified Training and Certification Costs.--
       ``(1) In general.--The term `qualified training and 
     certification costs' means costs paid or incurred for 
     training which is required for the taxpayer or employees of 
     the taxpayer to be certified by the Secretary under section 
     25D(d)(2)(B) or 179F(d)(2)(B) for the purpose of certifying 
     energy savings.
       ``(2) Limitation.--The qualified training and certification 
     costs taken into account under subsection (a)(1) for the 
     taxable year with respect to any individual shall not exceed 
     $500 reduced by the amount of the credit allowed under 
     subsection (a)(1) to the taxpayer (or any predecessor) with 
     respect to such individual for all prior taxable years.
       ``(3) Year costs taken into account.--Qualified training 
     and certifications costs with respect to any individual shall 
     not be taken into account under subsection (a)(1) before the 
     taxable year in which the individual with respect to whom 
     such costs are paid or incurred has performed 25 
     certifications under sections 25E(d)(2)(A) and 179F(d)(2)(A).
       ``(c) Qualified Certification Equipment Expenditures.--
       ``(1) In general.--The term `qualified training equipment 
     expenditures' means costs paid or incurred for--
       ``(A) blower doors,
       ``(B) duct leakage testing equipment,
       ``(C) flue gas combustion equipment, and
       ``(D) digital manometers.
       ``(2) Limitation.--
       ``(A) In general.--The qualified certification equipment 
     expenditures taken into account under subsection (a)(2) with 
     respect to any taxpayer for any taxable year shall not exceed 
     $1,000.
       ``(B) Limitation on individual items.--The qualified 
     certification equipment expenditures taken into account under 
     subsection (a)(2) shall not exceed--
       ``(i) $500 with respect to any blower door or duct leakage 
     testing equipment, and
       ``(ii) $100 with respect to any flue gas combustion 
     equipment or digital manometer.
       ``(3) Year expenditures taken into account.--The qualified 
     certification equipment expenditures of any taxpayer shall 
     not be taken into account under subsection (a)(2) before the 
     taxable year in which the taxpayer has performed 25 
     certifications under sections 25E(d)(2)(A) and 179F(d)(2)(A).
       ``(d) Special Rules.--
       ``(1) Aggregation rules.--For purposes of this section, all 
     persons treated as a single employer under subsections (a) 
     and (b) of section 52 shall be treated as 1 person.
       ``(2) Basis reduction.--The basis of any property shall be 
     reduced by the portion of the cost of such property taken 
     into account under subsection (a).
       ``(3) Denial of double benefit.--
       ``(A) In general.--No deduction shall be allowed for that 
     portion of the expenses otherwise allowable as a deduction 
     for the taxable year which is equal to the amount taken into 
     account under subsection (a) for such taxable year.
       ``(B) Amount previously deducted.--No credit shall be 
     allowed under subsection (a) with respect to any amount for 
     which a deduction has been allowed in any preceding taxable 
     year.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) is amended by striking ``plus'' at the end of 
     paragraph (30), by striking the period at the end of 
     paragraph (31) and inserting ``plus'', and by adding at the 
     end the following new paragraph:
       ``(32) the energy savings certification credit determined 
     under section 45O(a).''.
       (c) Conforming Amendments.--
       (1) Section 1016(a), as amended by this Act, is amended by 
     striking ``and'' at the end of paragraph (39), by striking 
     the period at the end of paragraph (40) and inserting 
     ``and'', and by adding at the end the following new 
     paragraph:
       ``(41) to the extent provided in section 45O(d)(2).''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 45N the following new item:

``Sec. 45O. Energy savings certification credit.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 5128. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

     SEC. __. DOMESTIC PRODUCTION.

       (a) Repeal.--Section 433 of the Department of the Interior, 
     Environment, and Related Agencies Appropriations Act, 2008 
     (Public Law 110-161; 121 Stat. 2152) is repealed.
       (b) Commencement of Commercial Leasing.--Section 369(e) of 
     the Energy Policy Act of 2005 (42 U.S.C. 15927(e)) is amended 
     in the second sentence by inserting ``, not earlier than 
     December 31, 2011,'' before ``conduct''.

     SEC. __. ENERGY SAVINGS REPORT.

       Not later than 120 days after the date of enactment of this 
     Act and annually thereafter, the Secretary of Energy shall--
       (1) conduct an analysis of all policies of the Federal 
     Government (including mandates, subsidies, tariffs, the use 
     of hydrogen and tax policy) that encourage, or have the 
     potential to encourage, the reduction of fossil fuel energy 
     consumption in the United States; and
       (2) submit to the Committee on Energy and Natural Resources 
     of the Senate and the Committee on Energy and Commerce of the 
     House of Representatives a report that contains 
     recommendations for the adjustment of the policies described 
     in paragraph (1) to reduce--
       (A) the dependence of the United States on fossil fuel;
       (B) the quantity of air pollutants in the environment;
       (C) greenhouse gas emissions; and
       (D) the cost of energy.
                                 ______
                                 
  SA 5129. Mr. ALEXANDER submitted an amendment intended to be proposed 
by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 43, after line 17, insert the following:

        TITLE II--INCENTIVES FOR PLUG-IN ELECTRIC DRIVE VEHICLES

     SEC. 21. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
                   MOTOR VEHICLES.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     other credits) is amended by adding at the end the following 
     new section:

     ``SEC. 30D. PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE CREDIT.

       ``(a) Allowance of Credit.--
       ``(1) 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 applicable amount with respect to each 
     new qualified plug-in electric drive motor vehicle placed in 
     service by the taxpayer during the taxable year.
       ``(2) Applicable amount.--For purposes of paragraph (1), 
     the applicable amount is the sum of--
       ``(A) $2,000, plus
       ``(B) $400 for each kilowatt hour of traction battery 
     capacity in excess of 2.5 kilowatt hours.
       ``(b) Limitations.--
       ``(1) Limitation based on weight.--The amount of the credit 
     allowed under subsection (a) by reason of subsection 
     (a)(2)(A) shall not exceed--
       ``(A) $7,500, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of not more than 10,000 pounds,
       ``(B) $10,000, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of more than 10,000 pounds but not more than 14,000 
     pounds,
       ``(C) $15,000, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of more than 14,000 pounds but not more than 26,000 
     pounds, and
       ``(D) $20,000, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of more than 26,000 pounds.
       ``(2) Limitation based on amount of tax.--The credit 
     allowed under subsection (a) for any taxable year shall not 
     exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under subpart A and 
     section 27 for the taxable year.

[[Page S7326]]

       ``(3) Limitation on number of passenger vehicles and light 
     trucks eligible for credit.--No credit shall be allowed under 
     subsection (a) for any new qualified plug-in electric drive 
     motor vehicle which is a passenger vehicle or light truck in 
     any calendar year following the calendar year which includes 
     the first date on which the total number of such new 
     qualified plug-in electric drive motor vehicles sold for use 
     in the United States after December 31, 2007, is at least 
     250,000.
       ``(c) New Qualified Plug-in Electric Drive Motor Vehicle.--
     For purposes of this section, the term `new qualified plug-in 
     electric drive motor vehicle' means a motor vehicle--
       ``(1) which draws propulsion using one or more traction 
     batteries with an aggregate capacity of not less than 2.5 
     kilowatt hours,
       ``(2) which uses an offboard source of electricity to 
     recharge one or more such batteries,
       ``(3) which, where required for the applicable make and 
     model, has received a certificate of conformity under the 
     Clean Air Act, or which meets all Federal safety and 
     emissions requirements for on-road use,
       ``(4) the original use of which commences with the 
     taxpayer,
       ``(5) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(6) which is made by a manufacturer.
       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Motor vehicle.--The term `motor vehicle' means any 
     vehicle which is manufactured primarily for use on public 
     streets, roads, and highways (not including a vehicle 
     operated exclusively on a rail or rails).
       ``(2) Other terms.--The terms `passenger automobile', 
     `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.).
       ``(3) Traction battery capacity.--Traction battery capacity 
     shall be measured in kilowatt hours from a 100 percent state 
     of charge to a zero percent state of charge.
       ``(4) 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.
       ``(5) No double benefit.--The amount of any deduction or 
     other credit allowable under this chapter for a new qualified 
     plug-in electric drive motor vehicle shall be reduced by the 
     amount of credit allowed under subsection (a) for such 
     vehicle for the taxable year.
       ``(6) Property used by tax-exempt entity.--In the case of a 
     vehicle the use of which is described in paragraph (3) or (4) 
     of section 50(b) and which is not subject to a lease, the 
     person who sold such vehicle to the person or entity using 
     such vehicle shall be treated as the taxpayer that placed 
     such vehicle in service, but only if such person clearly 
     discloses to such person or entity in a document the amount 
     of any credit allowable under subsection (a) with respect to 
     such vehicle (determined without regard to subsection 
     (b)(2)).
       ``(7) Property used outside 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.
       ``(8) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit (including 
     recapture in the case of a lease period of less than the 
     economic life of a vehicle).
       ``(9) Election to not 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.
       ``(10) Interaction with air quality and motor vehicle 
     safety standards.--Unless otherwise provided in this section, 
     a motor vehicle shall not be considered eligible for a credit 
     under this section unless such vehicle is in compliance 
     with--
       ``(A) the applicable provisions of the Clean Air Act for 
     the applicable make and model year of the vehicle (or 
     applicable air quality provisions of State law in the case of 
     a State which has adopted such provision under a waiver under 
     section 209(b) of the Clean Air Act), and
       ``(B) the motor vehicle safety provisions of sections 30101 
     through 30169 of title 49, United States Code.
       ``(e) 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.''.
       (b) Coordination With Other Motor Vehicle Credits.--
       (1) Electric drive motor vehicles.--Paragraph (1) of 
     section 30(c) of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new flush sentence:

     ``Such term shall not include any motor vehicle which is a 
     new qualified plug-in electric drive motor vehicle (as 
     defined by section 30D(c)).''
       (2) New qualified fuel cell motor vehicles.--Paragraph (3) 
     of section 30B(b) of such Code is amended by adding at the 
     end the following new flush sentence:
     ``Such term shall not include any motor vehicle which is a 
     new qualified plug-in electric drive motor vehicle (as 
     defined by section 30D(c)).''
       (3) New qualified hybrid motor vehicles.--Paragraph (3) of 
     section 30B(d) of such Code is amended by adding at the end 
     the following new flush sentence:

     ``Such term shall not include any motor vehicle which is a 
     new qualified plug-in electric drive motor vehicle (as 
     defined by section 30D(c)).''
       (c) 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 30D(d)(5).''
       (2) Section 6501(m) of such Code is amended by inserting 
     ``30D(d)(10)'' after ``30C(e)(5)''.
       (3) The table of sections for subpart B of part IV of such 
     Code is amended by adding at the end the following new item:

``Sec. 30D. Plug-in electric drive motor vehicle credit.''

       (d) Conversion Kits.--
       (1) In general.--Section 30B of the Internal Revenue Code 
     of 1986 (relating to alternative motor vehicle credit) is 
     amended by redesignating subsections (i) and (j) as 
     subsections (j) and (k), respectively, and by inserting after 
     subsection (h) the following new subsection:
       ``(i) Plug-in Conversion Credit.--
       ``(1) In general.--For purposes of subsection (a), the 
     plug-in conversion credit determined under this subsection 
     with respect to any motor vehicle which is converted to a 
     qualified plug-in electric drive motor vehicle is the lesser 
     of--
       ``(A) an amount equal to--
       ``(i) $2,000, plus
       ``(ii) $400 for each kilowatt hour of capacity of the plug-
     in traction battery module installed in such vehicle in 
     excess of 2.5 kilowatt hours, or
       ``(B) 50 percent of the cost of the plug-in traction 
     battery module installed in such vehicle as part of such 
     conversion.
       ``(2) Limitations.--The amount of the credit allowed under 
     this subsection shall not exceed $4,000 with respect to the 
     conversion of any motor vehicle.
       ``(3) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Qualified plug-in electric drive motor vehicle.--The 
     term `qualified plug-in electric drive motor vehicle' means 
     any new qualified plug-in electric drive motor vehicle (as 
     defined in section 30D(c), determined without regard to 
     paragraphs (4) and (6) thereof).
       ``(B) Plug-in traction battery module.--The term `plug-in 
     traction battery module' means an electro-chemical energy 
     storage device which--
       ``(i) has a traction battery capacity of not less than 2.5 
     kilowatt hours,
       ``(ii) is equipped with an electrical plug by means of 
     which it can be energized and recharged when plugged into an 
     external source of electric power,
       ``(iii) consists of a standardized configuration and is 
     mass produced,
       ``(iv) has been tested and approved by the National Highway 
     Transportation Safety Administration as compliant with 
     applicable motor vehicle and motor vehicle equipment safety 
     standards when installed by a mechanic with standardized 
     training in protocols established by the battery manufacturer 
     as part of a nationwide distribution program, and
       ``(v) is certified by a battery manufacturer as meeting the 
     requirements of clauses (i) through (iv).
       ``(C) Credit allowed to lessor of battery module.--In the 
     case of a plug-in traction battery module which is leased to 
     the taxpayer, the credit allowed under this subsection shall 
     be allowed to the lessor of the plug-in traction battery 
     module.
       ``(D) Credit allowed in addition to other credits.--The 
     credit allowed under this subsection shall be allowed with 
     respect to a motor vehicle notwithstanding whether a credit 
     has been allowed with respect to such motor vehicle under 
     this section (other than this subsection) in any preceding 
     taxable year.
       ``(4) Termination.--This subsection shall not apply to 
     conversions made after December 31, 2010.''.
       (2) Credit treated as part of alternative motor vehicle 
     credit.--Section 30B(a) of such Code is amended by striking 
     ``and'' at the end of paragraph (3), by striking the period 
     at the end of paragraph (4) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(5) the plug-in conversion credit determined under 
     subsection (i).''.
       (3) No recapture for vehicles converted to qualified plug-
     in electric drive motor vehicles.--Paragraph (8) of section 
     30B(h) of such Code is amended by adding at the end the 
     following: ``, except that no benefit shall be recaptured if 
     such property ceases to eligible for such credit by reason of 
     conversion to a qualified plug-in electric drive motor 
     vehicle.''

[[Page S7327]]

       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2007, in taxable years beginning after such date.

     SEC. 22. CLASSIFICATION OF SMART METERS AS 5-YEAR PROPERTY.

       (a) In General.--Subparagraph (B) of section 168(e)(3) of 
     the Internal Revenue Code of 1986 (relating to 5-year 
     property) is amended--
       (1) by striking ``and'' at the end of clause (v),
       (2) by redesignating clause (vi) as clause (vii), and
       (3) by inserting after clause (v) the following new clause:
       ``(vi) any advanced electricity time-based meter that--

       ``(I) measures and records electricity usage data on a time 
     differentiated basis,
       ``(II) has 2-way communications capability,
       ``(III) provides data that enables the electricity supplier 
     to provide usage information to customers electronically, and
       ``(IV) is placed in service before January 1, 2014, and''.

       (b) Conforming Amendment.--Paragraph (3) of section 168(e) 
     of such Code (relating to classification of certain property) 
     is amended by striking ``clause (vi)(I)'' in the last 
     sentence and inserting ``clause (vii)(I)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 23. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

       (a) Increase in Credit Amount.--Section 30C of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``30 percent'' in subsection (a) and 
     inserting ``50 percent'', and
       (2) by striking ``$30,000'' in subsection (b)(1) and 
     inserting ``$50,000''.
       (b) Expansion of Electric Property.--Subsection (c) of 
     section 30C of the Internal Revenue Code of 1986 (relating to 
     qualified alternative fuel vehicle refueling property) is 
     amended--
       (1) by striking ``and'' at the end of paragraph (1),
       (2) by redesignating paragraph (2) as paragraph (3),
       (3) by striking ``Any mixture--'' and all that follows in 
     paragraph (3)(B), as so redesignated, and inserting ``Any 
     mixture of biodiesel (as defined in section 40A(d)(1)) and 
     diesel fuel (as defined in section 4083(a)(3)), determined 
     without regard to any use of kerosene and containing at least 
     20 percent biodiesel.'', and
       (4) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) paragraph (3)(B) of section 179A(d) applied to all 
     electric property used to support the charging of electric 
     vehicles, neighborhood electric vehicles, or plug-in hybrids, 
     without regard to the gross vehicle weight rating of such 
     vehicles, and''.
       (c) Extension of Credit.--Section 30C(g) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by inserting ``electric property and'' before 
     ``property relating to hydrogen'' in paragraph (1), and
       (2) by striking ``December 31, 2009'' in paragraph (2) and 
     inserting ``December 31, 2010''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 24. INCENTIVES FOR MANUFACTURING FACILITIES PRODUCING 
                   PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE AND 
                   COMPONENTS.

       (a) Deduction for Manufacturing Facilities.--Part VI of 
     subchapter B of chapter 1 of the Internal Revenue Code of 
     1986 (relating to itemized deductions for individuals and 
     corporations) is amended by inserting after section 179E the 
     following new section:

     ``SEC. 179F. EXPENSING FOR MANUFACTURING FACILITIES PRODUCING 
                   PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE AND 
                   COMPONENTS.

       ``(a) Treatment as Expenses.--A taxpayer may elect to treat 
     the applicable percentage of the cost of any qualified plug-
     in electric drive motor vehicle manufacturing facility 
     property as an expense which is not chargeable to a capital 
     account. Any cost so treated shall be allowed as a deduction 
     for the taxable year in which the qualified manufacturing 
     facility property is placed in service.
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a), the applicable percentage is--
       ``(1) 100 percent, in the case of qualified plug-in 
     electric drive motor vehicle manufacturing facility property 
     which is placed in service before January 1, 2013, and
       ``(2) 50 percent, in the case of qualified plug-in electric 
     drive motor vehicle manufacturing facility property which is 
     placed in service after December 31, 2012, and before January 
     1, 2015.
       ``(c) Election.--
       ``(1) In general.--An election under this section for any 
     taxable year shall be made on the taxpayer's return of the 
     tax imposed by this chapter for the taxable year. Such 
     election shall be made in such manner as the Secretary may by 
     regulations prescribe.
       ``(2) Election irrevocable.--Any election made under this 
     section may not be revoked except with the consent of the 
     Secretary.
       ``(d) Qualified Plug-in Electric Drive Motor Vehicle 
     Manufacturing Facility Property.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified plug-in electric 
     drive motor vehicle manufacturing facility property' means 
     any qualified property--
       ``(A) the original use of which commences with the 
     taxpayer,
       ``(B) which is placed in service by the taxpayer after the 
     date of the enactment of this section and before January 1, 
     2015, and
       ``(C) no written binding contract for the construction of 
     which was in effect on or before the date of the enactment of 
     this section.
       ``(2) Qualified property.--
       ``(A) In general.--The term `qualified property' means any 
     property which is a facility or a portion of a facility used 
     for the production of--
       ``(i) any new qualified plug-in electric drive motor 
     vehicle (as defined by section 30D(c)), or
       ``(ii) any eligible component.
       ``(B) Eligible component.--The term `eligible component' 
     means any battery, any electric motor or generator, or any 
     power control unit which is designed specifically for use in 
     a new qualified plug-in electric drive motor vehicle (as so 
     defined).
       ``(e) Special Rule for Dual Use Property.--In the case of 
     any qualified plug-in electric drive motor vehicle 
     manufacturing facility property which is used to produce both 
     qualified property and other property which is not qualified 
     property, the amount of costs taken into account under 
     subsection (a) shall be reduced by an amount equal to--
       ``(1) the total amount of such costs (determined before the 
     application of this subsection), multiplied by
       ``(2) the percentage of property expected to be produced 
     which is not qualified property.''.
       (b) Refund of Credit for Prior Year Minimum Tax 
     Liability.--Section 53 of the Internal Revenue Code of 1986 
     (relating to credit for prior year minimum tax liability) is 
     amended by adding at the end the following new subsection:
       ``(f) Election To Treat Amounts Attributable to Qualified 
     Manufacturing Facility.--
       ``(1) In general.--In the case of an eligible taxpayer, the 
     amount determined under subsection (c) for the taxable year 
     (after the application of subsection (e)) shall be increased 
     by an amount equal to the applicable percentage of any 
     qualified plug-in electric drive motor vehicle manufacturing 
     facility property which is placed in service during the 
     taxable year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is--
       ``(A) 35 percent, in the case of qualified plug-in electric 
     drive motor vehicle manufacturing facility property which is 
     placed in service before January 1, 2013, and
       ``(B) 17.5 percent, in the case of qualified plug-in 
     electric drive motor vehicle manufacturing facility property 
     which is placed in service after December 31, 2012, and 
     before January 1, 2015.
       ``(3) Eligible taxpayer.--For purposes of this subsection, 
     the term `eligible taxpayer' means any taxpayer--
       ``(A) who places in service qualified plug-in electric 
     drive motor vehicle manufacturing facility property during 
     the taxable year,
       ``(B) who does not make an election under section 179F(c), 
     and
       ``(C) who makes an election under this subsection.
       ``(4) Other definitions and special rules.--
       ``(A) Qualified plug-in electric drive motor vehicle 
     manufacturing facility property.--The term `qualified plug-in 
     electric drive motor vehicle manufacturing facility property' 
     has the meaning given such term under section 179F(d).
       ``(B) Special rule for dual use property.--In the case of 
     any qualified plug-in electric drive motor vehicle 
     manufacturing facility property which is used to produce both 
     qualified property (as defined in section 179F(d)) and other 
     property which is not qualified property, the amount of costs 
     taken into account under paragraph (1)shall be reduced by an 
     amount equal to--
       ``(i) the total amount of such costs (determined before the 
     application of this subparagraph), multiplied by
       ``(ii) the percentage of property expected to be produced 
     which is not qualified property.
       ``(C) Election.--
       ``(i) In general.--An election under this subsection for 
     any taxable year shall be made on the taxpayer's return of 
     the tax imposed by this chapter for the taxable year. Such 
     election shall be made in such manner as the Secretary may by 
     regulations prescribe.
       ``(ii) Election irrevocable.--Any election made under this 
     subsection may not be revoked except with the consent of the 
     Secretary.
       ``(5) Credit refundable.--For purposes of this title (other 
     than this section), the credit allowed by reason of this 
     subsection shall be treated as if it were allowed under 
     subpart C.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 5130. Mr. ENSIGN (for himself and Mr. Sununu) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other

[[Page S7328]]

purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                  TITLE II--CLEAN ENERGY TAX STIMULUS

     SEC. 21. SHORT TITLE.

       This title may be cited as the ``Clean Energy Tax Stimulus 
     Act of 2008''.

      Subtitle A--Extension of Clean Energy Production Incentives

     SEC. 22. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY 
                   PRODUCTION TAX CREDIT.

       (a) Extension of Credit.--Each of the following provisions 
     of section 45(d) (relating to qualified facilities) is 
     amended by striking ``January 1, 2009'' and inserting 
     ``January 1, 2010'':
       (1) Paragraph (1).
       (2) Clauses (i) and (ii) of paragraph (2)(A).
       (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
       (4) Paragraph (4).
       (5) Paragraph (5).
       (6) Paragraph (6).
       (7) Paragraph (7).
       (8) Paragraph (8).
       (9) Subparagraphs (A) and (B) of paragraph (9).
       (b) Production Credit for Electricity Produced From Marine 
     Renewables.--
       (1) In general.--Paragraph (1) of section 45(c) (relating 
     to resources) is amended by striking ``and'' at the end of 
     subparagraph (G), by striking the period at the end of 
     subparagraph (H) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(I) marine and hydrokinetic renewable energy.''.
       (2) Marine renewables.--Subsection (c) of section 45 is 
     amended by adding at the end the following new paragraph:
       ``(10) Marine and hydrokinetic renewable energy.--
       ``(A) In general.--The term `marine and hydrokinetic 
     renewable energy' means energy derived from--
       ``(i) waves, tides, and currents in oceans, estuaries, and 
     tidal areas,
       ``(ii) free flowing water in rivers, lakes, and streams,
       ``(iii) free flowing water in an irrigation system, canal, 
     or other man-made channel, including projects that utilize 
     nonmechanical structures to accelerate the flow of water for 
     electric power production purposes, or
       ``(iv) differentials in ocean temperature (ocean thermal 
     energy conversion).
       ``(B) Exceptions.--Such term shall not include any energy 
     which is derived from any source which utilizes a dam, 
     diversionary structure (except as provided in subparagraph 
     (A)(iii)), or impoundment for electric power production 
     purposes.''.
       (3) Definition of facility.--Subsection (d) of section 45 
     is amended by adding at the end the following new paragraph:
       ``(11) Marine and hydrokinetic renewable energy 
     facilities.--In the case of a facility producing electricity 
     from marine and hydrokinetic renewable energy, the term 
     `qualified facility' means any facility owned by the 
     taxpayer--
       ``(A) which has a nameplate capacity rating of at least 150 
     kilowatts, and
       ``(B) which is originally placed in service on or after the 
     date of the enactment of this paragraph and before January 1, 
     2010.''.
       (4) Credit rate.--Subparagraph (A) of section 45(b)(4) is 
     amended by striking ``or (9)'' and inserting ``(9), or 
     (11)''.
       (5) Coordination with small irrigation power.--Paragraph 
     (5) of section 45(d), as amended by subsection (a), is 
     amended by striking ``January 1, 2010'' and inserting ``the 
     date of the enactment of paragraph (11)''.
       (c) Sales of Electricity to Regulated Public Utilities 
     Treated as Sales to Unrelated Persons.--Section 45(e)(4) 
     (relating to related persons) is amended by adding at the end 
     the following new sentence: ``A taxpayer shall be treated as 
     selling electricity to an unrelated person if such 
     electricity is sold to a regulated public utility (as defined 
     in section 7701(a)(33).''.
       (d) Trash Facility Clarification.--Paragraph (7) of section 
     45(d) is amended--
       (1) by striking ``facility which burns'' and inserting 
     ``facility (other than a facility described in paragraph (6)) 
     which uses'', and
       (2) by striking ``combustion''.
       (e) Effective Dates.--
       (1) Extension.--The amendments made by subsection (a) shall 
     apply to property originally placed in service after December 
     31, 2008.
       (2) Modifications.--The amendments made by subsections (b) 
     and (c) shall apply to electricity produced and sold after 
     the date of the enactment of this Act, in taxable years 
     ending after such date.
       (3) Trash facility clarification.--The amendments made by 
     subsection (d) shall apply to electricity produced and sold 
     before, on, or after December 31, 2007.

     SEC. 23. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND FUEL 
                   CELL INVESTMENT TAX CREDIT.

       (a) Extension of Credit.--
       (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) (relating to energy credit) are 
     each amended by striking ``January 1, 2009'' and inserting 
     ``January 1, 2017''.
       (2) Fuel cell property.--Subparagraph (E) of section 
     48(c)(1) (relating to qualified fuel cell property) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2016''.
       (3) Qualified microturbine property.--Subparagraph (E) of 
     section 48(c)(2) (relating to qualified microturbine 
     property) is amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2016''.
       (b) Allowance of Energy Credit Against Alternative Minimum 
     Tax.--Subparagraph (B) of section 38(c)(4) (relating to 
     specified credits) is amended by striking ``and'' at the end 
     of clause (iii), by striking the period at the end of clause 
     (iv) and inserting ``, and'', and by adding at the end the 
     following new clause:
       ``(v) the credit determined under section 46 to the extent 
     that such credit is attributable to the energy credit 
     determined under section 48.''.
       (c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell 
     Property.--
       (1) In general.--Section 48(c)(1) (relating to qualified 
     fuel cell), as amended by subsection (a)(2), is amended by 
     striking subparagraph (B) and by redesignating subparagraphs 
     (C), (D), and (E) as subparagraphs (B), (C), and (D), 
     respectively.
       (2) Conforming amendment.--Section 48(a)(1) is amended by 
     striking ``paragraphs (1)(B) and (2)(B) of subsection (c)'' 
     and inserting ``subsection (c)(2)(B)''.
       (d) Public Electric Utility Property Taken Into Account.--
       (1) In general.--Paragraph (3) of section 48(a) is amended 
     by striking the second sentence thereof.
       (2) Conforming amendments.--
       (A) Paragraph (1) of section 48(c), as amended by this 
     section, is amended by striking subparagraph (C) and 
     redesignating subparagraph (D) as subparagraph (C).
       (B) Paragraph (2) of section 48(c), as amended by 
     subsection (a)(3), is amended by striking subparagraph (D) 
     and redesignating subparagraph (E) as subparagraph (D).
       (e) Effective Dates.--
       (1) Extension.--The amendments made by subsection (a) shall 
     take effect on the date of the enactment of this Act.
       (2) Allowance against alternative minimum tax.--The 
     amendments made by subsection (b) shall apply to credits 
     determined under section 46 of the Internal Revenue Code of 
     1986 in taxable years beginning after the date of the 
     enactment of this Act and to carrybacks of such credits.
       (3) Fuel cell property and public electric utility 
     property.--The amendments made by subsections (c) and (d) 
     shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).

     SEC. 24. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY 
                   EFFICIENT PROPERTY CREDIT.

       (a) Extension.--Section 25D(g) (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.
       (b) No Dollar Limitation for Credit for Solar Electric 
     Property.--
       (1) In general.--Section 25D(b)(1) (relating to maximum 
     credit) is amended by striking subparagraph (A) and by 
     redesignating subparagraphs (B) and (C) as subparagraphs (A) 
     and (B), respectively.
       (2) Conforming amendments.--Section 25D(e)(4) is amended--
       (A) by striking clause (i) in subparagraph (A),
       (B) by redesignating clauses (ii) and (iii) in subparagraph 
     (A) as clauses (i) and (ii), respectively, and
       (C) by striking ``, (2),'' in subparagraph (C).
       (c) Credit Allowed Against Alternative Minimum Tax.--
       (1) In general.--Subsection (c) of section 25D is amended 
     to read as follows:
       ``(c) Limitation Based on Amount of Tax; Carryforward of 
     Unused Credit.--
       ``(1) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for the taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section) and section 27 for the taxable 
     year.
       ``(2) Carryforward of unused credit.--
       ``(A) Rule for years in which all personal credits allowed 
     against regular and alternative minimum tax.--In the case of 
     a taxable year to which section 26(a)(2) applies, if the 
     credit allowable under subsection (a) exceeds the limitation 
     imposed by section 26(a)(2) for such taxable year reduced by 
     the sum of the credits allowable under this subpart (other 
     than this section), such excess shall be carried to the 
     succeeding taxable year and added to the credit allowable 
     under subsection (a) for such succeeding taxable year.
       ``(B) Rule for other years.--In the case of a taxable year 
     to which section 26(a)(2) does not apply, if the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such succeeding 
     taxable year.''.
       (2) Conforming amendments.--
       (A) Section 23(b)(4)(B) is amended by inserting ``and 
     section 25D'' after ``this section''.

[[Page S7329]]

       (B) Section 24(b)(3)(B) is amended by striking ``and 25B'' 
     and inserting ``, 25B, and 25D''.
       (C) Section 25B(g)(2) is amended by striking ``section 23'' 
     and inserting ``sections 23 and 25D''.
       (D) Section 26(a)(1) is amended by striking ``and 25B'' and 
     inserting ``25B, and 25D''.
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2007.
       (2) Application of egtrra sunset.--The amendments made by 
     subparagraphs (A) and (B) of subsection (c)(2) shall be 
     subject to title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 in the same manner as the 
     provisions of such Act to which such amendments relate.

     SEC. 25. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN 
                   RENEWABLE ENERGY BONDS.

       (a) Extension.--Section 54(m) (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.
       (b) Increase in National Limitation.--Section 54(f) 
     (relating to limitation on amount of bonds designated) is 
     amended--
       (1) by inserting ``, and for the period beginning after the 
     date of the enactment of the Clean Energy Tax Stimulus Act of 
     2008 and ending before January 1, 2010, $400,000,000'' after 
     ``$1,200,000,000'' in paragraph (1),
       (2) by striking ``$750,000,000 of the'' in paragraph (2) 
     and inserting ``$750,000,000 of the $1,200,000,000'', and
       (3) by striking ``bodies'' in paragraph (2) and inserting 
     ``bodies, and except that the Secretary may not allocate more 
     than \1/3\ of the $400,000,000 national clean renewable 
     energy bond limitation to finance qualified projects of 
     qualified borrowers which are public power providers nor more 
     than \1/3\ of such limitation to finance qualified projects 
     of qualified borrowers which are mutual or cooperative 
     electric companies described in section 501(c)(12) or section 
     1381(a)(2)(C)''.
       (c) Public Power Providers Defined.--Section 54(j) is 
     amended--
       (1) by adding at the end the following new paragraph:
       ``(6) Public power provider.--The term `public power 
     provider' means a State utility with a service obligation, as 
     such terms are defined in section 217 of the Federal Power 
     Act (as in effect on the date of the enactment of this 
     paragraph).'', and
       (2) by inserting ``; Public Power Provider'' before the 
     period at the end of the heading.
       (d) Technical Amendment.--The third sentence of section 
     54(e)(2) is amended by striking ``subsection (l)(6)'' and 
     inserting ``subsection (l)(5)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 26. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC 
                   RESTRUCTURING POLICY.

       (a) Qualifying Electric Transmission Transaction.--
       (1) In general.--Section 451(i)(3) (defining qualifying 
     electric transmission transaction) is amended by striking 
     ``January 1, 2008'' and inserting ``January 1, 2010''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to transactions after December 31, 2007.
       (b) Independent Transmission Company.--
       (1) In general.--Section 451(i)(4)(B)(ii) (defining 
     independent transmission company) is amended by striking 
     ``December 31, 2007'' and inserting ``the date which is 2 
     years after the date of such transaction''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the amendments made by 
     section 909 of the American Jobs Creation Act of 2004.

    Subtitle B--Extension of Incentives to Improve Energy Efficiency

     SEC. 27. EXTENSION AND MODIFICATION OF CREDIT FOR ENERGY 
                   EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.

       (a) Extension of Credit.--Section 25C(g) (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2009''.
       (b) Qualified Biomass Fuel Property.--
       (1) In general.--Section 25C(d)(3) is amended--
       (A) by striking ``and'' at the end of subparagraph (D),
       (B) by striking the period at the end of subparagraph (E) 
     and inserting ``, and'', and
       (C) by adding at the end the following new subparagraph:
       ``(F) a stove which uses the burning of biomass fuel to 
     heat a dwelling unit located in the United States and used as 
     a residence by the taxpayer, or to heat water for use in such 
     a dwelling unit, and which has a thermal efficiency rating of 
     at least 75 percent.''.
       (2) Biomass fuel.--Section 25C(d) (relating to residential 
     energy property expenditures) is amended by adding at the end 
     the following new paragraph:
       ``(6) Biomass fuel.--The term `biomass fuel' means any 
     plant-derived fuel available on a renewable or recurring 
     basis, including agricultural crops and trees, wood and wood 
     waste and residues (including wood pellets), plants 
     (including aquatic plants), grasses, residues, and fibers.''.
       (c) Modifications of Standards for Energy-Efficient 
     Building Property.--
       (1) Electric heat pumps.--Subparagraph (B) of section 
     25C(d)(3) is amended to read as follows:
       ``(A) an electric heat pump which achieves the highest 
     efficiency tier established by the Consortium for Energy 
     Efficiency, as in effect on January 1, 2008.''.
       (2) Central air conditioners.--Section 25C(d)(3)(D) is 
     amended by striking ``2006'' and inserting ``2008''.
       (3) Water heaters.--Subparagraph (E) of section 25C(d) is 
     amended to read as follows:
       ``(E) a natural gas, propane, or oil water heater which has 
     either an energy factor of at least 0.80 or a thermal 
     efficiency of at least 90 percent.''.
       (4) Oil furnaces and hot water boilers.--Paragraph (4) of 
     section 25C(d) is amended to read as follows:
       ``(4) Qualified natural gas, propane, and oil furnaces and 
     hot water boilers.--
       ``(A) Qualified natural gas furnace.--The term `qualified 
     natural gas furnace' means any natural gas furnace which 
     achieves an annual fuel utilization efficiency rate of not 
     less than 95.
       ``(B) Qualified natural gas hot water boiler.--The term 
     `qualified natural gas hot water boiler' means any natural 
     gas hot water boiler which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(C) Qualified propane furnace.--The term `qualified 
     propane furnace' means any propane furnace which achieves an 
     annual fuel utilization efficiency rate of not less than 95.
       ``(D) Qualified propane hot water boiler.--The term 
     `qualified propane hot water boiler' means any propane hot 
     water boiler which achieves an annual fuel utilization 
     efficiency rate of not less than 90.
       ``(E) Qualified oil furnaces.--The term `qualified oil 
     furnace' means any oil furnace which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(F) Qualified oil hot water boiler.--The term `qualified 
     oil hot water boiler' means any oil hot water boiler which 
     achieves an annual fuel utilization efficiency rate of not 
     less than 90.''.
       (d) Effective Date.--The amendments made this section shall 
     apply to expenditures made after December 31, 2007.

     SEC. 28. EXTENSION AND MODIFICATION OF TAX CREDIT FOR ENERGY 
                   EFFICIENT NEW HOMES.

       (a) Extension of Credit.--Subsection (g) of section 45L 
     (relating to termination) is amended by striking ``December 
     31, 2008'' and inserting ``December 31, 2010''.
       (b) Allowance for Contractor's Personal Residence.--
     Subparagraph (B) of section 45L(a)(1) is amended to read as 
     follows:
       ``(B)(i) acquired by a person from such eligible contractor 
     and used by any person as a residence during the taxable 
     year, or
       ``(ii) used by such eligible contractor as a residence 
     during the taxable year.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to homes acquired after December 31, 2008.

     SEC. 29. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT 
                   COMMERCIAL BUILDINGS DEDUCTION.

       (a) Extension.--Section 179D(h) (relating to termination) 
     is amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.
       (b) Adjustment of Maximum Deduction Amount.--
       (1) In general.--Subparagraph (A) of section 179D(b)(1) 
     (relating to maximum amount of deduction) is amended by 
     striking ``$1.80'' and inserting ``$2.25''.
       (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
     amended--
       (A) by striking ``$.60'' and inserting ``$0.75'', and
       (B) by striking ``$1.80'' and inserting ``$2.25''.
       (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. 30. MODIFICATION AND EXTENSION OF ENERGY EFFICIENT 
                   APPLIANCE CREDIT FOR APPLIANCES PRODUCED AFTER 
                   2007.

       (a) In General.--Subsection (b) of section 45M (relating to 
     applicable amount) is amended to read as follows:
       ``(b) Applicable Amount.--For purposes of subsection (a)--
       ``(1) Dishwashers.--The applicable amount is--
       ``(A) $45 in the case of a dishwasher which is manufactured 
     in calendar year 2008 or 2009 and which uses no more than 324 
     kilowatt hours per year and 5.8 gallons per cycle, and
       ``(B) $75 in the case of a dishwasher which is manufactured 
     in calendar year 2008, 2009, or 2010 and which uses no more 
     than 307 kilowatt hours per year and 5.0 gallons per cycle 
     (5.5 gallons per cycle for dishwashers designed for greater 
     than 12 place settings).
       ``(2) Clothes washers.--The applicable amount is--
       ``(A) $75 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 which meets or 
     exceeds a 1.72 modified energy factor and does not exceed a 
     8.0 water consumption factor,
       ``(B) $125 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 or 2009 which meets 
     or exceeds a 1.8 modified energy factor and does not exceed a 
     7.5 water consumption factor,
       ``(C) $150 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets or exceeds 2.0 modified energy factor and 
     does not exceed a 6.0 water consumption factor, and
       ``(D) $250 in the case of a residential or commercial 
     clothes washer manufactured in

[[Page S7330]]

     calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 
     modified energy factor and does not exceed a 4.5 water 
     consumption factor.
       ``(3) Refrigerators.--The applicable amount is--
       ``(A) $50 in the case of a refrigerator which is 
     manufactured in calendar year 2008, and consumes at least 20 
     percent but not more than 22.9 percent less kilowatt hours 
     per year than the 2001 energy conservation standards,
       ``(B) $75 in the case of a refrigerator which is 
     manufactured in calendar year 2008 or 2009, and consumes at 
     least 23 percent but no more than 24.9 percent less kilowatt 
     hours per year than the 2001 energy conservation standards,
       ``(C) $100 in the case of a refrigerator which is 
     manufactured in calendar year 2008, 2009, or 2010, and 
     consumes at least 25 percent but not more than 29.9 percent 
     less kilowatt hours per year than the 2001 energy 
     conservation standards, and
       ``(D) $200 in the case of a refrigerator manufactured in 
     calendar year 2008, 2009, or 2010 and which consumes at least 
     30 percent less energy than the 2001 energy conservation 
     standards.''.
       (b) Eligible Production.--
       (1) Similar treatment for all appliances.--Subsection (c) 
     of section 45M (relating to eligible production) is amended--
       (A) by striking paragraph (2),
       (B) by striking ``(1) In general'' and all that follows 
     through ``the eligible'' and inserting ``The eligible'', and
       (C) by moving the text of such subsection in line with the 
     subsection heading and redesignating subparagraphs (A) and 
     (B) as paragraphs (1) and (2), respectively.
       (2) Modification of base period.--Paragraph (2) of section 
     45M(c), as amended by paragraph (1) of this section, is 
     amended by striking ``3-calendar year'' and inserting ``2-
     calendar year''.
       (c) Types of Energy Efficient Appliances.--Subsection (d) 
     of section 45M (defining types of energy efficient 
     appliances) is amended to read as follows:
       ``(d) Types of Energy Efficient Appliance.--For purposes of 
     this section, the types of energy efficient appliances are--
       ``(1) dishwashers described in subsection (b)(1),
       ``(2) clothes washers described in subsection (b)(2), and
       ``(3) refrigerators described in subsection (b)(3).''.
       (d) Aggregate Credit Amount Allowed.--
       (1) Increase in limit.--Paragraph (1) of section 45M(e) 
     (relating to aggregate credit amount allowed) is amended to 
     read as follows:
       ``(1) Aggregate credit amount allowed.--The aggregate 
     amount of credit allowed under subsection (a) with respect to 
     a taxpayer for any taxable year shall not exceed $75,000,000 
     reduced by the amount of the credit allowed under subsection 
     (a) to the taxpayer (or any predecessor) for all prior 
     taxable years beginning after December 31, 2007.''.
       (2) Exception for certain refrigerator and clothes 
     washers.--Paragraph (2) of section 45M(e) is amended to read 
     as follows:
       ``(2) Amount allowed for certain refrigerators and clothes 
     washers.--Refrigerators described in subsection (b)(3)(D) and 
     clothes washers described in subsection (b)(2)(D) shall not 
     be taken into account under paragraph (1).''.
       (e) Qualified Energy Efficient Appliances.--
       (1) In general.--Paragraph (1) of section 45M(f) (defining 
     qualified energy efficient appliance) is amended to read as 
     follows:
       ``(1) Qualified energy efficient appliance.--The term 
     `qualified energy efficient appliance' means--
       ``(A) any dishwasher described in subsection (b)(1),
       ``(B) any clothes washer described in subsection (b)(2), 
     and
       ``(C) any refrigerator described in subsection (b)(3).''.
       (2) Clothes washer.--Section 45M(f)(3) (defining clothes 
     washer) is amended by inserting ``commercial'' before 
     ``residential'' the second place it appears.
       (3) Top-loading clothes washer.--Subsection (f) of section 
     45M (relating to definitions) is amended by redesignating 
     paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), 
     (7), and (8), respectively, and by inserting after paragraph 
     (3) the following new paragraph:
       ``(4) Top-loading clothes washer.--The term `top-loading 
     clothes washer' means a clothes washer which has the clothes 
     container compartment access located on the top of the 
     machine and which operates on a vertical axis.''.
       (4) Replacement of energy factor.--Section 45M(f)(6), as 
     redesignated by paragraph (3), is amended to read as follows:
       ``(6) Modified energy factor.--The term `modified energy 
     factor' means the modified energy factor established by the 
     Department of Energy for compliance with the Federal energy 
     conservation standard.''.
       (5) Gallons per cycle; water consumption factor.--Section 
     45M(f) (relating to definitions), as amended by paragraph 
     (3), is amended by adding at the end the following:
       ``(9) Gallons per cycle.--The term `gallons per cycle' 
     means, with respect to a dishwasher, the amount of water, 
     expressed in gallons, required to complete a normal cycle of 
     a dishwasher.
       ``(10) Water consumption factor.--The term `water 
     consumption factor' means, with respect to a clothes washer, 
     the quotient of the total weighted per-cycle water 
     consumption divided by the cubic foot (or liter) capacity of 
     the clothes washer.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007.
                                 ______
                                 
  SA 5131. Mr. BUNNING (for himself and Mr. McConnell) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. __. TAX CREDIT FOR ALTERNATIVE JET FUEL.

       (a) Credit.--
       (1) Allowance of credit.--Section 6426 of the Internal 
     Revenue Code of 1986 is amended by redesignating subsections 
     (f) through (h) as subsections (h) through (i), respectively, 
     and by inserting after subsection (e) the following new 
     subsections:
       ``(f) Alternative Jet Fuel Credit.--
       ``(1) In general.--For purposes of this section, the 
     alternative jet fuel credit is the product of $1.00 and the 
     number of gallons of alternative jet fuel or gasoline gallon 
     equivalents (as defined in subsection (d)(3)) of a nonliquid 
     alternative jet fuel sold by the taxpayer for use as a fuel 
     in an aircraft, or so used by the taxpayer.
       ``(2) Alternative jet fuel.--For purposes of this section, 
     the term `alternative jet fuel' means an alternative fuel--
       ``(A) which meets the requirements of a Department of 
     Defense specification for military jet fuel or an American 
     Society of Testing and Materials specification for aviation 
     turbine fuel, and
       ``(B) the lifecycle greenhouse gas emissions associated 
     with the production and combustion of which are less than or 
     equal to such emissions associated with the production and 
     combustion of aviation fuel produced from conventional 
     petroleum sources, as determined by peer-reviewed research 
     conducted or reviewed by a National Laboratory or as 
     determined by the head of a Federal agency.
       ``(3) Termination.--This subsection shall not apply to any 
     sale or use for any period after September 30, 2014.
       ``(g) Alternative Jet Fuel Mixture Credit.--
       ``(1) In general.--For purposes of this section, the 
     alterative jet fuel mixture credit is the product of $1.00 
     and the number of gallons of alternative jet fuel used by the 
     taxpayer in producing any alternative jet fuel mixture for 
     sale or use in a trade or business of the taxpayer.
       ``(2) Alternative jet fuel mixture.--For purposes of this 
     section, the term `alternative jet fuel mixture' means a 
     mixture of alternative jet fuel and aviation gasoline or 
     kerosene which--
       ``(A) is sold by the taxpayer producing such mixture to any 
     person for use as a fuel in an aircraft, or
       ``(B) is used as a fuel in an aircraft by the taxpayer 
     producing such mixture
       ``(3) Termination.--This subsection shall not apply to any 
     sale or use for any period after September 30, 2014.''.
       (2) Conforming amendments.--
       (A) Section 6426(a) of the Internal Revenue Code of 1986 is 
     amended--
       (i) in paragraph (1), by striking ``and (e)'' and inserting 
     ``(e), and (g)'',
       (ii) in paragraph (2), by striking ``subsection (d)'' and 
     inserting ``subsections (d) and (f)'', and
       (iii) in the second sentence, by striking ``subsections (d) 
     and (e)'' and inserting ``subsections (d), (e), (f), and 
     (g)''.
       (B) Section 6426(e)(2) of such Code is amended by adding at 
     the end the following new flush sentence:
     ``Such term does not include any alternative jet fuel 
     mixture.''.
       (C) Section 6426(i) of such Code, as redesignated by 
     paragraph (1), is amended by striking ``subsections (d) and 
     (e)'' and inserting ``subsections (d), (e), (f), and (g)''.
       (b) Payments.--
       (1) In general.--Paragraph (2) of section 6427(e) of the 
     Internal Revenue Code of 1986 is amended--
       (A) by inserting ``, or if such person sells or uses an 
     alternative jet fuel (as defined in section 6526(f)(2)) for a 
     purpose described in section 6426(f)(1) in such person's 
     trade or business'' after ``trade or business'', and
       (B) in the heading, by inserting ``; alternative jet fuel'' 
     after ``fuel''.
       (2) Registration.--Paragraph (4) of section 6427(e) of such 
     Code is amended by striking ``or alternative fuel mixture 
     credit'' and inserting ``, alternative fuel mixture credit, 
     alternative jet fuel credit, or alternative jet fuel mixture 
     credit''.
       (3) Termination.--Paragraph (5) of section 6427(e) of such 
     Code is amended by striking ``and'' at the end of 
     subparagraph (C), by striking the period at the end of 
     subparagraph (D) and inserting ``and'', and by adding at the 
     end the following new subparagraph:
       ``(E) any alternative jet fuel or alternative jet fuel 
     mixture (as defined in subsection (f)(2) or (g)(2) of section 
     6426) sold or used after December 31, 2014.''.
       (c) Time for Filing Claims.--Section 6427(i)(3)(A) of the 
     Internal Revenue Code of

[[Page S7331]]

     1986 is amended by inserting ``or an alternative jet fuel (as 
     defined in section 6426(f)(2))'' after ``6426(d)(2))''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after the date of the 
     enactment of this Act.

     SEC. __. 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.--
       (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.
                                 ______
                                 
  SA 5132. Mr. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

 TITLE II--IDENTIFICATION OF MOST PROSPECTIVE OUTER CONTINENTAL SHELF 
               OIL AND NATURAL GAS AREAS UNDER MORATORIA

     SEC. 21. DEFINITIONS.

       In this title:
       (1) Moratorium area.--
       (A) In general.--The term ``moratorium area'' means any 
     area on the Outer Continental Shelf covered by--
       (i) sections 104 through 106 of the Department of the 
     Interior, Environment, and Related Agencies Appropriations 
     Act, 2006 (Public Law 109-54; 119 Stat. 521);
       (ii) section 104 of the Gulf of Mexico Energy Security Act 
     of 2006 (43 U.S.C. 1331 note; Public Law 109-432); or
       (iii) any area withdrawn from disposition by leasing by the 
     memorandum entitled ``Memorandum on Withdrawal of Certain 
     Areas of the United States Outer Continental Shelf from 
     Leasing Disposition'' (34 Weekly Comp. Pres. Doc. 1111), and 
     dated June 12, 1998, as modified by the President on January 
     9, 2007.
       (B) Exclusions.--The term ``moratorium area'' does not 
     include an area of the outer Continental Shelf designated by 
     the National Oceanic and Atmospheric Administration as a 
     national marine sanctuary.
       (2) Prospective area.--The term ``prospective area'' means 
     a portion of any moratorium area that may contain recoverable 
     oil or gas.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 22. IDENTIFICATION OF MOST PROSPECTIVE OUTER CONTINENTAL 
                   SHELF OIL AND NATURAL GAS AREAS UNDER 
                   MORATORIA.

       (a) Inventory.--
       (1) In general.--The Secretary shall identify the 10 most 
     prospective areas for recoverable oil and gas accumulations, 
     including if appropriate the 5 most prospective areas for oil 
     and the 5 most prospective areas for natural gas in the 
     prospective areas that industry would likely explore if 
     allowed.
       (2) Information.--In identifying the prospective areas, the 
     Secretary shall take into account any existing information on 
     the geological potential for oil and gas or acquire new data 
     as appropriate to assist in narrowing down prospective areas.
       (3) Technology.--The Secretary may use any available 
     geological, geophysical, economic, engineering, and other 
     scientific technology to obtain accurate estimates of 
     resource potential.
       (b) Acquisition of Geological and Geophysical Data.--
       (1) In general.--The Secretary may acquire and process new 
     geological and geophysical data or use existing geological 
     and geophysical data for any moratorium area if the Secretary 
     determines that additional information is needed to identify 
     and assess potential prospective areas.
       (2) Technology.--In carrying out this subsection, the 
     Secretary shall use any available technology (other than 
     drilling), including 3-D seismic technology, to obtain an 
     accurate estimate of resource potential.
       (3) Availability of data.--The Secretary may make available 
     newly acquired geological and geophysical data under this 
     subsection on a cost recovery basis to recover the full costs 
     expended for acquisition and processing of new geological and 
     geophysical data.
       (c) Administration.--
       (1) In general.--As soon as practicable, but not later than 
     1 year, after the date of enactment of this Act, to expedite 
     collection of geological and geophysical data under this 
     section, each Federal agency shall conduct and complete any 
     analyses or consultations that are required to carry out this 
     section.
       (2) Protected species.--Before conducting any geological 
     and geophysical survey required under this title in any 
     prospective area, the Secretary shall, at a minimum, 
     implement the mitigation, monitoring, and reporting measures 
     that are used for protected species in the Gulf of Mexico 
     region.
       (d) Environmental and Socioeconomic Studies.--
       (1) In general.--The Secretary may conduct, directly or by 
     contract, environmental or socioeconomic studies for any 
     prospective area identified under subsection (a).
       (2) Interagency action.--The Secretary, acting through the 
     Minerals Management Service, may work jointly with the United 
     States Fish and Wildlife Service, the National Oceanic and 
     Atmospheric Administration, or other relevant agencies--
       (A) to compile existing environmental and socioeconomic 
     information on prospective areas; or
       (B) obtain new environmental or socioeconomic studies for 
     identified prospective areas.

     SEC. 23. SHARING INFORMATION WITH STATES AND OTHER 
                   STAKEHOLDERS.

       (a) In General.--The Secretary shall establish a process--
       (1) to share information identified by actions taken under 
     section 22 to identify 10 most prospective areas; and
       (2) to obtain input from States or other stakeholders on 
     the prospective areas.

[[Page S7332]]

       (b) Process.--The process shall include workshops or 
     meetings with--
       (1) the public;
       (2) Governors or designated officials from appropriate 
     States; and
       (3) other relevant user groups.

     SEC. 24. REPORTS.

       (a) Identification of Prospective Areas.--Not later than 90 
     days after the date of enactment of this Act, the Secretary 
     shall submit to Congress a report that includes--
       (1) an identification of the 10 most prospective oil and 
     gas areas within the moratorium areas using existing 
     information;
       (2) a summary of environmental and socioeconomic 
     information relating to the 10 prospective areas; and
       (3) a schedule for completion of any environmental or 
     socioeconomic impact studies or consultations planned for 
     those prospective areas.
       (b) Potential of Prospective Areas.--Not later than 42 
     months after the date of enactment of this Act, the Secretary 
     shall submit to Congress a report that includes--
       (1) a summary of the potential oil and gas resources in the 
     10 most prospective areas based on all available and newly 
     acquired information;
       (2) a description of the consultation process under section 
     23 that will be used to share information and obtain input 
     from stakeholders concerning the 10 most prospective areas; 
     and
       (3) recommendations on approaches for recovery of costs 
     expended for acquisition and processing of new geological and 
     geophysical data or conducting other studies for the report.
       (c) Input.--Not later than 180 days after submission of the 
     report required under subsection (b), the Secretary shall 
     submit to Congress a summary of the input from the process 
     required under section 23.

     SEC. 25. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to the Secretary to 
     carry out this title $450,000,000, to remain available until 
     expended.
                                 ______
                                 
  SA 5133. Ms. MURKOWSKI submitted an amendment intended to be proposed 
by her to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

          TITLE __--AMERICAN ENERGY INDEPENDENCE AND SECURITY

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``American Energy 
     Independence and Security Act of 2008''.

     SEC. __02. DEFINITIONS.

       In this title:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as the ``1002 Coastal Plain Area'' on the 
     map.
       (2) Federal agreement.--The term ``Federal Agreement'' 
     means the Federal Agreement and Grant Right-of-Way for the 
     Trans-Alaska Pipeline issued on January 23, 1974, in 
     accordance with section 28 of the Mineral Leasing Act (30 
     U.S.C. 185) and the Trans-Alaska Pipeline Authorization Act 
     (43 U.S.C. 1651 et seq.).
       (3) Final statement.--The term ``Final Statement'' means 
     the final legislative environmental impact statement on the 
     Coastal Plain, dated April 1987, and prepared pursuant to 
     section 1002 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3142) and section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).
       (4) Map.--The term ``map'' means the map entitled ``Arctic 
     National Wildlife Refuge'', dated September 2005, and 
     prepared by the United States Geological Survey.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior (or the designee of the Secretary), acting 
     through the Director of the Bureau of Land Management in 
     consultation with the Director of the United States Fish and 
     Wildlife Service and in coordination with a State coordinator 
     appointed by the Governor of the State of Alaska.

     SEC. __03. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

       (a) In General.--
       (1) Authorization.--Subject to section __14, Congress 
     authorizes the exploration, leasing, development, production, 
     and economically feasible and prudent transportation of oil 
     and gas in and from the Coastal Plain.
       (2) Actions.--Subject to section __14, the Secretary shall 
     take such actions as are necessary--
       (A) to establish and implement, in accordance with this 
     title, a competitive oil and gas leasing program that will 
     result in an environmentally sound program for the 
     exploration, development, and production of the oil and gas 
     resources of the Coastal Plain while taking into 
     consideration the interests and concerns of residents of the 
     Coastal Plain, which is the homeland of the Kaktovikmiut 
     Inupiat; and
       (B) to administer this title through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (i) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, subsistence resources, and the environment; and
       (ii) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production to all exploration, development, 
     and production operations under this title in a manner that 
     ensures the receipt of fair market value by the public for 
     the mineral resources to be leased.
       (b) Repeal.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents contained 
     in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
     striking the item relating to section 1003.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
     seq.)--
       (A) the oil and gas pre-leasing and leasing program, and 
     activities authorized by this section in the Coastal Plain, 
     shall be considered to be compatible with the purposes for 
     which the Arctic National Wildlife Refuge was established; 
     and
       (B) no further findings or decisions shall be required to 
     implement that program and those activities.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The Final 
     Statement shall be considered to satisfy the requirements 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) that apply with respect to pre-leasing 
     activities, including exploration programs and actions 
     authorized to be taken by the Secretary to develop and 
     promulgate the regulations for the establishment of a leasing 
     program authorized by this title before the conduct of the 
     first lease sale.
       (3) Compliance with nepa for other actions.--
       (A) In general.--Before conducting the first lease sale 
     under this title, the Secretary shall prepare an 
     environmental impact statement in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with respect to the actions authorized by this title 
     that are not referred to in paragraph (2).
       (B) Identification and analysis.--Notwithstanding any other 
     provision of law, in carrying out this paragraph, the 
     Secretary shall not be required--
       (i) to identify nonleasing alternative courses of action; 
     or
       (ii) to analyze the environmental effects of those courses 
     of action.
       (C) Identification of preferred action.--Not later than 18 
     months after the date of enactment of this Act, the Secretary 
     shall--
       (i) identify only a preferred action and a single leasing 
     alternative for the first lease sale authorized under this 
     title; and
       (ii) analyze the environmental effects and potential 
     mitigation measures for those 2 alternatives.
       (D) Public comments.--In carrying out this paragraph, the 
     Secretary shall consider only public comments that are filed 
     not later than 20 days after the date of publication of a 
     draft environmental impact statement.
       (E) Effect of compliance.--Notwithstanding any other 
     provision of law, compliance with this paragraph shall be 
     considered to satisfy all requirements for the analysis and 
     consideration of the environmental effects of proposed 
     leasing under this title.
       (d) Relationship to State and Local Authority.--Nothing in 
     this title expands or limits any State or local regulatory 
     authority.
       (e) Special Areas.--
       (1) Designation.--
       (A) In general.--The Secretary, after consultation with the 
     State of Alaska, the North Slope Borough, Alaska, and the 
     City of Kaktovik, Alaska, may designate not more than 45,000 
     acres of the Coastal Plain as a special area if the Secretary 
     determines that the special area would be of such unique 
     character and interest as to require special management and 
     regulatory protection.
       (B) Sadlerochit spring area.--The Secretary shall designate 
     as a special area in accordance with subparagraph (A) the 
     Sadlerochit Spring area, comprising approximately 4,000 acres 
     as depicted on the map.
       (2) Management.--The Secretary shall manage each special 
     area designated under this subsection in a manner that--
       (A) respects and protects the Native people of the area; 
     and
       (B) preserves the unique and diverse character of the area, 
     including fish, wildlife, subsistence resources, and cultural 
     values of the area.
       (3) Exclusion from leasing or surface occupancy.--
       (A) In general.--The Secretary may exclude any special area 
     designated under this subsection from leasing.
       (B) No surface occupancy.--If the Secretary leases all or a 
     portion of a special area for the purposes of oil and gas 
     exploration, development, production, and related activities, 
     there shall be no surface occupancy of the land comprising 
     the special area.
       (4) Directional drilling.--Notwithstanding any other 
     provision of this subsection, the Secretary may lease all or 
     a portion of a special area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the special area.

[[Page S7333]]

       (f) Limitation on Closed Areas.--The Secretary may not 
     close land within the Coastal Plain to oil and gas leasing or 
     to exploration, development, or production except in 
     accordance with this title.
       (g) Regulations.--
       (1) In general.--Not later than 15 months after the date of 
     enactment of this Act, in consultation with appropriate 
     agencies of the State of Alaska, the North Slope Borough, 
     Alaska, and the City of Kaktovik, Alaska, the Secretary shall 
     issue such regulations as are necessary to carry out this 
     title, including rules and regulations relating to protection 
     of the fish and wildlife, fish and wildlife habitat, and 
     subsistence resources of the Coastal Plain.
       (2) Revision of regulations.--The Secretary may 
     periodically review and, as appropriate, revise the rules and 
     regulations issued under paragraph (1) to reflect any 
     significant scientific or engineering data that come to the 
     attention of the Secretary.

     SEC. __04. LEASE SALES.

       (a) In General.--Land may be leased pursuant to this title 
     to any person qualified to obtain a lease for deposits of oil 
     and gas under the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after that nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this title 
     shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--For the first lease 
     sale under this title, the Secretary shall offer for lease 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons, taking into 
     consideration nominations received pursuant to subsection 
     (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) not later than 22 months after the date of enactment of 
     this Act, conduct the first lease sale under this title;
       (2) not later than September 30, 2010, conduct a second 
     lease sale under this title; and
       (3) conduct additional sales at appropriate intervals if 
     sufficient interest in exploration or development exists to 
     warrant the conduct of the additional sales.

     SEC. __05. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--Upon payment by a lessee of such bonus as 
     may be accepted by the Secretary, the Secretary may grant to 
     the highest responsible qualified bidder in a lease sale 
     conducted pursuant to section __04 a lease for any land on 
     the Coastal Plain.
       (b) Subsequent Transfers.--
       (1) In general.--No lease issued under this title may be 
     sold, exchanged, assigned, sublet, or otherwise transferred 
     except with the approval of the Secretary.
       (2) Condition for approval.--Before granting any approval 
     described in paragraph (1), the Secretary shall consult with 
     and give due consideration to the opinion of the Attorney 
     General.

     SEC. __06. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this title shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent of the amount or value of the production 
     removed or sold from the lease, as determined by the 
     Secretary in accordance with regulations applicable to other 
     Federal oil and gas leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, such portions of the Coastal Plain to exploratory 
     drilling activities as are necessary to protect caribou 
     calving areas and other species of fish and wildlife;
       (3) require that each lessee of land within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of land within the Coastal Plain and any other 
     Federal land that is adversely affected in connection with 
     exploration, development, production, or transportation 
     activities within the Coastal Plain conducted by the lessee 
     or by any of the subcontractors or agents of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, that reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for land 
     required to be reclaimed under this title shall be, to the 
     maximum extent practicable--
       (A) a condition capable of supporting the uses that the 
     land was capable of supporting prior to any exploration, 
     development, or production activities; or
       (B) upon application by the lessee, to a higher or better 
     standard, as approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, fish and wildlife habitat, subsistence 
     resources, and the environment as required under section 
     __03(a)(2);
       (7) provide that each lessee, and each agent and contractor 
     of a lessee, use their best efforts to provide a fair share 
     of employment and contracting for Alaska Natives and Alaska 
     Native Corporations from throughout the State of Alaska, as 
     determined by the level of obligation previously agreed to in 
     the Federal Agreement; and
       (8) contain such other provisions as the Secretary 
     determines to be necessary to ensure compliance with this 
     title and regulations issued under this title.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this title, and in recognizing 
     the proprietary interest of the Federal Government in labor 
     stability and in the ability of construction labor and 
     management to meet the particular needs and conditions of 
     projects to be developed under the leases issued pursuant to 
     this title (including the special concerns of the parties to 
     those leases), shall require that each lessee, and each agent 
     and contractor of a lessee, under this title negotiate to 
     obtain a project labor agreement for the employment of 
     laborers and mechanics on production, maintenance, and 
     construction under the lease.

     SEC. __07. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard to Govern 
     Authorized Coastal Plain Activities.--In accordance with 
     section __03, the Secretary shall administer this title 
     through regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, or other provisions that--
       (1) ensure, to the maximum extent practicable, that oil and 
     gas exploration, development, and production activities on 
     the Coastal Plain will result in no significant adverse 
     effect on fish and wildlife, fish and wildlife habitat, and 
     the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum surface acreage covered in 
     connection with the leasing program by production and support 
     facilities, including airstrips and any areas covered by 
     gravel berms or piers for support of pipelines, does not 
     exceed 2,000 acres on the Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall require, with respect to any proposed drilling and 
     related activities on the Coastal Plain, that--
       (1) a site-specific environmental analysis be made of the 
     probable effects, if any, that the drilling or related 
     activities will have on fish and wildlife, fish and wildlife 
     habitat, subsistence resources, subsistence uses, and the 
     environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the maximum extent practicable) any 
     significant adverse effect identified under paragraph (1); 
     and
       (3) the development of the plan occur after consultation 
     with--
       (A) each agency having jurisdiction over matters mitigated 
     by the plan;
       (B) the State of Alaska;
       (C) North Slope Borough, Alaska; and
       (D) the City of Kaktovik, Alaska.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this title, 
     the Secretary shall prepare and issue regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     or other measures designed to ensure, to the maximum extent 
     practicable, that the activities carried out on the Coastal 
     Plain under this title are conducted in a manner consistent 
     with the purposes and environmental requirements of this 
     title.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this title shall 
     require--
       (1) compliance with all applicable provisions of Federal 
     and State environmental law (including regulations);
       (2) implementation of and compliance with--
       (A) standards that are at least as effective as the safety 
     and environmental mitigation measures, as described in items 
     1 through 29 on pages 167 through 169 of the Final Statement, 
     on the Coastal Plain;
       (B) seasonal limitations on exploration, development, and 
     related activities, as necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration;
       (C) design safety and construction standards for all 
     pipelines and any access and service roads that minimize, to 
     the maximum extent practicable, adverse effects on--
       (i) the passage of migratory species (such as caribou); and
       (ii) the flow of surface water by requiring the use of 
     culverts, bridges, or other structural devices;
       (D) prohibitions on general public access to, and use of, 
     all pipeline access and service roads;
       (E) stringent reclamation and rehabilitation requirements 
     in accordance with this title for the removal from the 
     Coastal Plain of all oil and gas development and production 
     facilities, structures, and equipment on completion of oil 
     and gas production operations, except in a case in which the 
     Secretary determines that those facilities, structures, or 
     equipment--
       (i) would assist in the management of the Arctic National 
     Wildlife Refuge; and
       (ii) are donated to the United States for that purpose;

[[Page S7334]]

       (F) appropriate prohibitions or restrictions on--
       (i) access by all modes of transportation;
       (ii) sand and gravel extraction; and
       (iii) use of explosives;
       (G) reasonable stipulations for protection of cultural and 
     archaeological resources;
       (H) measures to protect groundwater and surface water, 
     including--
       (i) avoidance, to the maximum extent practicable, of 
     springs, streams, and river systems;
       (ii) the protection of natural surface drainage patterns 
     and wetland and riparian habitats; and
       (iii) the regulation of methods or techniques for 
     developing or transporting adequate supplies of water for 
     exploratory drilling; and
       (I) research, monitoring, and reporting requirements;
       (3) that exploration activities (except surface geological 
     studies) be limited to the period between approximately 
     November 1 and May 1 of each year and be supported, if 
     necessary, by ice roads, winter trails with adequate snow 
     cover, ice pads, ice airstrips, and air transport methods 
     (except that those exploration activities may be permitted at 
     other times if the Secretary determines that the exploration 
     will have no significant adverse effect on fish and wildlife, 
     fish and wildlife habitat, subsistence resources, and the 
     environment of the Coastal Plain);
       (4) consolidation of facility siting;
       (5) avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife;
       (6) treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including, in accordance with 
     applicable Federal and State environmental laws (including 
     regulations)--
       (A) preparation of an annual waste management report;
       (B) development and implementation of a hazardous materials 
     tracking system; and
       (C) prohibition on the use of chlorinated solvents;
       (7) fuel storage and oil spill contingency planning;
       (8) conduct of periodic field crew environmental briefings;
       (9) avoidance of significant adverse effects on subsistence 
     hunting, fishing, and trapping;
       (10) compliance with applicable air and water quality 
     standards;
       (11) appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited; and
       (12) development and implementation of such other 
     protective environmental requirements, restrictions, terms, 
     or conditions as the Secretary, after consultation with the 
     State of Alaska, North Slope Borough, Alaska, and the City of 
     Kaktovik, Alaska, determines to be necessary.
       (e) Considerations.--In preparing and issuing regulations, 
     lease terms, conditions, restrictions, prohibitions, or 
     stipulations under this section, the Secretary shall take 
     into consideration--
       (1) the stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement;
       (2) the environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 through 37.33 of title 50, Code of Federal 
     Regulations (or successor regulations); and
       (3) the land use stipulations for exploratory drilling on 
     the KIC-ASRC private land described in Appendix 2 of the 
     agreement between Arctic Slope Regional Corporation and the 
     United States dated August 9, 1983.
       (f) Facility Consolidation Planning.--
       (1) In general.--After providing for public notice and 
     comment, the Secretary shall prepare and periodically update 
     a plan to govern, guide, and direct the siting and 
     construction of facilities for the exploration, development, 
     production, and transportation of oil and gas resources from 
     the Coastal Plain.
       (2) Objectives.--The objectives of the plan shall be--
       (A) the avoidance of unnecessary duplication of facilities 
     and activities;
       (B) the encouragement of consolidation of common facilities 
     and activities;
       (C) the location or confinement of facilities and 
     activities to areas that will minimize impact on fish and 
     wildlife, fish and wildlife habitat, subsistence resources, 
     and the environment;
       (D) the use of existing facilities, to the maximum extent 
     practicable; and
       (E) the enhancement of compatibility between wildlife 
     values and development activities.
       (g) Access to Public Land.--The Secretary shall--
       (1) manage public land in the Coastal Plain in accordance 
     with subsections (a) and (b) of section 811 of the Alaska 
     National Interest Lands Conservation Act (16 U.S.C. 3121); 
     and
       (2) ensure that local residents shall have reasonable 
     access to public land in the Coastal Plain for traditional 
     uses.

     SEC. __08. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaints.--
       (1) Deadline.--A complaint seeking judicial review of a 
     provision of this title or an action of the Secretary under 
     this title shall be filed--
       (A) except as provided in subparagraph (B), during the 90-
     day period beginning on the date on which the action being 
     challenged was carried out; or
       (B) in the case of a complaint based solely on grounds 
     arising after the 90-day period described in subparagraph 
     (A), by not later than 90 days after the date on which the 
     complainant knew or reasonably should have known about the 
     grounds for the complaint.
       (2) Venue.--A complaint seeking judicial review of a 
     provision of this title or an action of the Secretary under 
     this title shall be filed in the United States Court of 
     Appeals for the District of Columbia.
       (3) Scope.--
       (A) In general.--Judicial review of a decision of the 
     Secretary under this title (including an environmental 
     analysis of such a lease sale) shall be--
       (i) limited to a review of whether the decision is in 
     accordance with this title; and
       (ii) based on the administrative record of the decision.
       (B) Presumptions.--Any identification by the Secretary of a 
     preferred course of action relating to a lease sale, and any 
     analysis by the Secretary of environmental effects, under 
     this title shall be presumed to be correct unless proven 
     otherwise by clear and convincing evidence.
       (b) Limitation on Other Review.--Any action of the 
     Secretary that is subject to judicial review under this 
     section shall not be subject to judicial review in any civil 
     or criminal proceeding for enforcement.

     SEC. __09. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

       For purposes of section 1102(4)(A) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), any 
     rights-of-way or easements across the Coastal Plain for the 
     exploration, development, production, or transportation of 
     oil and gas shall be considered to be established incident to 
     the management of the Coastal Plain under this section.

     SEC. __10. CONVEYANCE.

       Notwithstanding section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
     remove any cloud on title to land, and to clarify land 
     ownership patterns in the Coastal Plain, the Secretary 
     shall--
       (1) to the extent necessary to fulfill the entitlement of 
     the Kaktovik Inupiat Corporation under sections 12 and 14 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 
     1613), as determined by the Secretary, convey to that 
     Corporation the surface estate of the land described in 
     paragraph (1) of Public Land Order 6959, in accordance with 
     the terms and conditions of the agreement between the 
     Secretary, the United States Fish and Wildlife Service, the 
     Bureau of Land Management, and the Kaktovik Inupiat 
     Corporation, dated January 22, 1993; and
       (2) convey to the Arctic Slope Regional Corporation the 
     remaining subsurface estate to which that Corporation is 
     entitled under the agreement between that corporation and the 
     United States, dated August 9, 1983.

     SEC. __11. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Establishment of Fund.--
       (1) In general.--There is established in the Treasury of 
     the United States a fund to be known as the ``Coastal Plain 
     Local Government Impact Aid Assistance Fund'' (referred to in 
     this section as the ``Fund'').
       (2) Deposits.--Subject to paragraph (1), the Secretary of 
     the Treasury (referred to in this section as the 
     ``Secretary'') shall deposit in the Fund, $35,000,000 each 
     year from the amount available under section __13(1).
       (3) Investment.--The Secretary shall invest amounts in the 
     Fund in interest-bearing securities of the United States or 
     the State of Alaska.
       (b) Assistance.--The Secretary, in cooperation with the 
     Mayor of the North Slope Borough, shall use amounts in the 
     Fund to provide assistance to North Slope Borough, Alaska, 
     the City of Kaktovik, Alaska, and any other borough, 
     municipal subdivision, village, or other community in the 
     State of Alaska that is directly impacted by exploration for, 
     or the production of, oil or gas on the Coastal Plain under 
     this title, or any Alaska Native Regional Corporation acting 
     on behalf of the villages and communities within its region 
     whose lands lie along the right of way of the Trans Alaska 
     Pipeline System, as determined by the Secretary.
       (c) Application.--
       (1) In general.--To receive assistance under subsection 
     (b), a community or Regional Corporation described in that 
     subsection shall submit to the Secretary, or to the Mayor of 
     the North Slope Borough, an application in such time, in such 
     manner, and containing such information as the Secretary may 
     require.
       (2) Action by north slope borough.--The Mayor of the North 
     Slope Borough shall submit to the Secretary each application 
     received under paragraph (1) as soon as practicable after the 
     date on which the application is received.
       (3) Assistance of secretary.--The Secretary shall assist 
     communities in submitting applications under this subsection, 
     to the maximum extent practicable.
       (d) Use of Funds.--A community or Regional Corporation that 
     receives funds under subsection (b) may use the funds--
       (1) to plan for mitigation, implement a mitigation plan, or 
     maintain a mitigation project to address the potential 
     effects of oil and gas exploration and development on 
     environmental, social, cultural, recreational, and 
     subsistence resources of the community;
       (2) to develop, carry out, and maintain--

[[Page S7335]]

       (A) a project to provide new or expanded public facilities; 
     or
       (B) services to address the needs and problems associated 
     with the effects described in paragraph (1), including 
     firefighting, police, water and waste treatment, first 
     responder, and other medical services;
       (3) to compensate residents of the Coastal Plain for 
     significant damage to environmental, social, cultural, 
     recreational, or subsistence resources; and
       (4) in the City of Kaktovik, Alaska--
       (A) to develop a mechanism for providing members of the 
     Kaktovikmiut Inupiat community an opportunity to--
       (i) monitor development on the Coastal Plain; and
       (ii) provide information and recommendations to the 
     Governor based on traditional aboriginal knowledge of the 
     natural resources, flora, fauna, and ecological processes of 
     the Coastal Plain; and
       (B) to establish a local coordination office, to be managed 
     by the Mayor of the North Slope Borough, in coordination with 
     the City of Kaktovik, Alaska--
       (i) to coordinate with and advise developers on local 
     conditions and the history of areas affected by development;
       (ii) to provide to the Committee on Resources of the House 
     of Representatives and the Committee on Energy and Natural 
     Resources of the Senate annual reports on the status of the 
     coordination between developers and communities affected by 
     development;
       (iii) to collect from residents of the Coastal Plain 
     information regarding the impacts of development on fish, 
     wildlife, habitats, subsistence resources, and the 
     environment of the Coastal Plain; and
       (iv) to ensure that the information collected under clause 
     (iii) is submitted to--

       (I) developers; and
       (II) any appropriate Federal agency.

     SEC. __12. PROHIBITION ON EXPORTS.

       An oil or gas lease issued under this title shall prohibit 
     the exportation of oil or gas produced under the lease.

     SEC. __13. ALLOCATION OF REVENUES.

       (a) In General.--Notwithstanding any other provision of 
     law, all adjusted bonus, rental, and royalty receipts from 
     Federal oil and gas leasing and operations authorized under 
     this title, plus an appropriated amount equal to the amount 
     of Federal income tax attributable to sales of oil and gas 
     produced from those operations, shall be deposited in an 
     account in the Treasury which shall be available, without 
     further appropriation or fiscal year limitation, each fiscal 
     year as follows:
       (1) $35,000,000 shall be deposited by the Secretary of the 
     Treasury into the fund created under section __11(a)(1).
       (2) The remainder shall be available as follows:
       (A) 50 percent shall be available to the Department of 
     Energy to carry out alternative energy programs established 
     under the Energy Policy Act of 2005 (42 U.S.C. 15801 et 
     seq.), the Energy Independence and Security Act of 2007 (42 
     U.S.C. 17001 et seq.), or an amendment made by either of 
     those Acts, as determined by the Secretary of Energy.
       (B) 16.67 percent shall be available to the Department of 
     Health and Human Services to provide low-income home energy 
     assistance under title XXVI of the Omnibus Budget 
     Reconciliation Act of 1981 (42 U.S.C. 8621 et seq.).
       (C) 16.67 percent shall be available to the Department of 
     Energy to carry out the Weatherization Assistance Program for 
     Low-Income Persons established under part A of title IV of 
     the Energy Conservation and Production Act (42 U.S.C. 6861 et 
     seq.)).
       (D) 16.66 percent shall be available for use in accordance 
     with subsection (b)(2).
       (b) Grants for Improvement in Energy Efficiency.--The 
     Secretary of Energy shall establish a program within the 
     Department of Energy under which the Secretary of Energy 
     shall--
       (1) conduct a study to determine, to the maximum extent 
     practicable, the greatest economically feasible percentage by 
     which each State may decrease energy use within the State 
     through the significant modification of residential and 
     commercial building codes to promote energy efficiency; and
       (2) using amounts made available under subsection 
     (a)(2)(D), provide grants to States for use in making the 
     significant modifications to building codes and decreasing 
     energy use in the States as described in paragraph (1).

     SEC. __14. SEVERABILITY.

       If any provision of this title, or the application of such 
     provision to any person or circumstance, is held to be 
     unconstitutional, the remainder of this title and the 
     application of such provisions to any person or circumstance 
     shall not be affected thereby.
                                 ______
                                 
  SA 5134. Ms. MURKOWSKI submitted an amendment intended to be proposed 
by her to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

     SEC. ___. OCS JOINT PERMITTING OFFICES.

       (a) Establishment.--The Secretary of the Interior (referred 
     to in this section as the ``Secretary'') shall establish 
     Federal OCS Joint Regional Permitting Offices (referred to in 
     this section as the ``Regional Permitting Offices'') in 
     accordance with this section.
       (b) Memorandum of Understanding.--Not later than 90 days 
     after the date of enactment of this Act, the Secretary shall 
     enter into a memorandum of understanding for purposes of this 
     section with--
       (1) the Secretary of Commerce;
       (2) the Administrator of the Environmental Protection 
     Agency; and
       (3) the Chief of Engineers.
       (c) Designation of Qualified Staff.--
       (1) In general.--Not later than 30 days after the date of 
     the signing of the memorandum of understanding under 
     subsection (b), all Federal signatory parties shall assign to 
     each of the Regional Permitting Offices identified in 
     subsection (d) a sufficient number of employees with 
     expertise to address the full spectrum of agency regulatory 
     issues relating to the Regional Permitting Office in which 
     the employee is employed, including, as applicable, 
     particular expertise in--
       (A) the consultations and the preparation of biological 
     opinions under section 7 of the Endangered Species Act of 
     1973 (16 U.S.C. 1536);
       (B) permits under section 404 of Federal Water Pollution 
     Control Act (33 U.S.C. 1344);
       (C) regulatory matters under the Clean Air Act (42 U.S.C. 
     7401 et seq.);
       (D) the consultations and preparation of documents under 
     the Marine Mammal Protection Act of 1972 (16 U.S.C. 1361 et 
     seq.); and
       (E) the preparation of analyses under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       (2) Duties.--Each employee assigned under paragraph (1) 
     shall--
       (A) not later than 90 days after the date of assignment, 
     report to the Minerals Management Service Regional Director 
     in the Regional Permitting Office to which the employee is 
     assigned;
       (B) be responsible for all issues relating to the 
     jurisdiction of the home office or agency of the employee; 
     and
       (C) participate as part of the team of personnel working on 
     proposed energy projects, planning, and environmental 
     analyses.
       (d) Regional Permitting Offices.--The following Minerals 
     Management Service Regional Headquarters shall serve as the 
     Regional Permitting Offices:
       (1) Anchorage, Alaska.
       (2) New Orleans, Louisiana.
       (3) MMS Pacific Regional Headquarters.
       (4) MMS Atlantic Regional Headquarters.
       (e) Reports.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that describes the results of the Regional 
     Permitting Offices.
       (f) Transfer of Fund.--For the purposes of coordination and 
     processing of oil and gas use authorizations on the Federal 
     outer Continental Shelf under the administration of the 
     Regional Permitting Offices identified in subsection (d), the 
     Secretary may authorize the expenditure or transfer of such 
     funds as are necessary to--
       (1) the United States Fish and Wildlife Service;
       (2) the Bureau of Indian Affairs;
       (3) the Environmental Protection Agency;
       (4) the National Oceanic and Atmospheric Administration; 
     and
       (5) the Corps of Engineers.
                                 ______
                                 
  SA 5135. Mr. BINGAMAN (for himself, Mr. Reid, Mr. Schumer, Mr. 
Salazar, Mr. Dorgan, Mr. Durbin, Mr. Kerry, Ms. Stabenow, Mr. 
Whitehouse, Mrs. Clinton, Mrs. Murray, Mr. Lieberman, Mr. Nelson of 
Florida and Ms. Klobuchar) submitted an amendment intended to be 
proposed by him to the bill S. 3268, to amend the Commodity Exchange 
Act, to prevent excessive price speculation with respect to energy 
commodities, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the bill, add the following:

                  TITLE II--OIL SUPPLY AND MANAGEMENT

                    Subtitle A--Diligent Development

     SEC. 201. DILIGENT DEVELOPMENT OF FEDERAL OIL AND GAS LEASES.

       (a) Clarification of Existing Law.--Each lease that 
     authorizes the exploration for or production of oil or 
     natural gas under a provision of law described in subsection 
     (b) shall be diligently developed by the person holding the 
     lease in order to ensure timely production from the lease.
       (b) Covered Provisions.--Subsection (a) shall apply to--
       (1) section 17 of the Mineral Leasing Act (30 U.S.C. 226);
       (2) section 107 of the Naval Petroleum Reserves Production 
     Act of 1976 (42 U.S.C. 6506a); and
       (3) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
     et seq.).
       (c) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that--
       (1) set forth requirements and benchmarks for oil and gas 
     development that will ensure that leaseholders--
       (A) diligently develop each lease; and
       (B) to the maximum extent practicable, produce oil and gas 
     from each lease during the primary term of the lease;
       (2) require each leaseholder to submit to the Secretary a 
     diligent development plan

[[Page S7336]]

     describing how the lessee will meet the benchmarks; and
       (3) take into account differences in development conditions 
     and circumstances in the areas to be developed.

     SEC. 202. DILIGENT DEVELOPMENT OF NATIONAL PETROLEUM RESERVE 
                   IN ALASKA.

       (a) Length of Lease.--Section 107(i) of the Naval Petroleum 
     Reserves Production Act of 1976 (42 U.S.C. 6506a(i)) is 
     amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Length of lease.--
       ``(A) In general.--Leases issued under this section shall 
     be for a primary term to be determined by the Secretary by 
     regulation of not less than 8 years and not more than 10 
     years.
       ``(B) Diligent production.--In determining the length of 
     the lease term, the Secretary shall seek to maximize the 
     timely production of oil and gas and diligent development of 
     the lease.
       ``(C) Continuation of lease.--Each lease issued under this 
     section shall continue so long after the primary term of the 
     lease as oil or gas is produced in paying quantities.
       ``(D) Actual drilling operations commenced.--Any lease 
     issued under this section for land on which, or for which 
     under an approved cooperative or unit plan of development or 
     operation, actual drilling or reworking operations were 
     commenced prior to the end of the primary term of the lease 
     and are being diligently prosecuted at that time shall be 
     extended for 5 years and so long thereafter as oil or gas is 
     produced in paying quantities.''.
       (b) Repeal and Rental.--Section 107(i) of the Naval 
     Petroleum Reserves Production Act of 1976 (42 U.S.C. 
     6506a(i)) is amended--
       (1) in the subsection heading, by inserting ``; annual 
     rental payment'' after ``Terms''; and
       (2) by striking paragraphs (2) through (6) and inserting 
     the following:
       ``(2) Annual rental payment.--
       ``(A) In general.--Each lease issued under this section 
     shall be conditioned on a payment by the lessee of an annual 
     rental payment.
       ``(B) Amount.--The Secretary shall establish the rental 
     payment at a rate determined by the Secretary that maximizes 
     the timely production of oil and gas and diligent development 
     of the lease.
       ``(C) Escalating rate.--The rent shall--
       ``(i) be established at a fixed rate for the first year of 
     the lease which shall be not less than $3.00 per acre; and
       ``(ii) escalate annually in an increment of not less than 
     $1.00 per acre per year.''.

     SEC. 203. LENGTH OF LEASE TERMS.

       Section 17(e) of the Mineral Leasing Act (30 U.S.C. 226(e)) 
     is amended--
       (1) by striking ``(e)'' and all that follows through the 
     end of the first sentence and inserting the following:
       ``(e) Primary Terms.--
       ``(1) In general.--Leases issued under this section shall 
     be for a primary term to be determined by the Secretary by 
     regulation of not less than 5 years and not more than 10 
     years.
       ``(2) Diligent production.--In determining the length of 
     the lease term, the Secretary shall seek to maximize the 
     timely production of oil and gas and diligent development of 
     the lease.'';
       (2) by striking ``Each such lease'' and inserting the 
     following:
       ``(3) Continuation of lease.--Each lease issued under this 
     section''; and
       (3) by striking ``Any lease issued'' and inserting the 
     following:
       ``(4) Actual drilling operations commenced.--Any lease 
     issued''.

     SEC. 204. RENTALS.

       (a) Leases Under Mineral Leasing Act.--Section 17(d) of the 
     Mineral Leasing Act (30 U.S.C. 226(d)) is amended--
       (1) by striking ``(d) All leases'' and all that follows 
     through the end of the first sentence and inserting the 
     following:
       ``(d) Annual Rentals; Minimum Royalty.--
       ``(1) Annual rental payment.--
       ``(A) In general.--Each lease issued under this section 
     shall be conditioned on a payment by the lessee of an annual 
     rental payment.
       ``(B) Amount.--The Secretary shall establish the rental 
     payment at a rate determined by the Secretary that maximizes 
     the timely production of oil and gas and diligent development 
     of the lease.
       ``(C) Escalating rate.--The rent shall--
       ``(i) be not less than $1.50 per acre for the first year of 
     the lease; and
       ``(ii) escalate annually through the last year of the 
     primary term of the lease in an increment of not less than 
     $1.00 per acre per year.''; and
       (2) by striking ``A minimum royalty'' and inserting the 
     following:
       ``(2) Minimum royalty.--A minimum royalty''.
       (b) Leases on Outer Continental Shelf.--Section 8(b) of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1337(b)) is 
     amended by striking paragraph (6) and inserting the 
     following:
       ``(6) contain such other provisions as the Secretary may 
     prescribe at the time of offering the area for lease, 
     including annual rental payments that--
       ``(A) are established at a rate determined by the Secretary 
     to maximize the timely production of oil and gas and diligent 
     development of the lease;
       ``(B) escalate annually; and
       ``(C) may be established to reflect differences in 
     development conditions and circumstances in areas to be 
     developed; and''.

Subtitle B--Leasing on Outer Continental Shelf Not Subject to Moratoria

     SEC. 211. OFFSHORE OIL AND GAS LEASING IN PORTION OF 181 AREA 
                   AUTHORIZED TO BE LEASED UNDER THE GULF OF 
                   MEXICO ENERGY SECURITY ACT OF 2006.

       Section 103(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 ``shall offer'' and inserting ``shall--
       ``(1) offer'';
       (2) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following:
       ``(2) offer unleased areas of the 181 Area for oil and gas 
     leasing pursuant to the Outer Continental Shelf Lands Act (43 
     U.S.C. 1301 et seq.) as soon as practicable, but not later 
     than 1 year, after the date of enactment of this 
     paragraph.''.

     SEC. 212. ACCELERATION OF LEASE SALES IN WESTERN AND CENTRAL 
                   PLANNING AREAS OF GULF OF MEXICO.

       Section 8(a) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337(a)) is amended by adding at the end the 
     following:
       ``(9) Frequency of lease sales in gulf of mexico.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     at least once every 180 days, the Secretary shall conduct 
     lease sales under paragraph (1) for land in the Western and 
     Central Planning Areas of the Gulf of Mexico.
       ``(B) Exception.--Subparagraph (A) shall not apply if the 
     Secretary--
       ``(i) determines it is not practicable to conduct lease 
     sales with the frequency required under subparagraph (A); and
       ``(ii) provides to Congress a report that--

       ``(I) describes the reasons for the determination under 
     clause (i); and
       ``(II) certifies that, in the judgment of the Secretary, 
     holding lease sales less frequently will not adversely affect 
     the production of oil and gas from the areas described in 
     subparagraph (A).

       ``(C) Leasing program.--The lease sales required under this 
     paragraph shall be conducted notwithstanding the omission of 
     those sales from the outer Continental Shelf Leasing Program 
     for 2007-2012 prepared by the Secretary under section 18.''.

     SEC. 213. LEASE SALES FOR AREAS OFFSHORE ALASKA.

       (a) Survey.--Not later than 1 year after the date of 
     enactment of this Act, in the case of each outer Continental 
     Shelf planning area that is offshore of the State of Alaska 
     and is not covered by the Outer Continental Shelf Oil and Gas 
     Leasing Program for 2007-2012, the Secretary of the Interior 
     (referred to in this section as the ``Secretary'') shall 
     conduct a survey of oil and gas industry interest in oil and 
     gas leasing and development in the planning area.
       (b) Evaluation.--In the case of any planning area described 
     in subsection (a) in which there is a high level of interest 
     in oil and gas leasing and development, as determined by the 
     Secretary, the Secretary shall evaluate--
       (1) the oil and gas potential of the area;
       (2) the environmental and natural values of the area; and
       (3) the importance of the area for subsistence use, after 
     consulting with interested Native Alaskan communities.
       (c) Report.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Natural Resources of the House of 
     Representatives a report containing--
       (A) the results of the survey; and
       (B) the evaluation and the conclusions of the Secretary as 
     to whether leasing should be pursued in any portion of a 
     planning area described in subsection (a).
       (2) Leasing to be pursued in area.--If the Secretary 
     concludes that leasing should be pursued in any planning area 
     described in subsection (a), the Secretary shall describe in 
     the report--
       (A) the further determinations and actions required by law 
     to be taken by the Secretary; and
       (B) the time line leading up to any lease sale in the 
     planning area.
       (3) Leasing not to be pursued in area.--If the Secretary 
     concludes that leasing will not be pursued in any such 
     planning area, the Secretary shall describe in the report the 
     reasons for the conclusion.
       (4) Administration.--In preparing the report, the Secretary 
     shall--
       (A) consult with the Governor of Alaska; and
       (B) provide an opportunity for public comment.
       (d) Effect on Other Laws.--Nothing in this section waives 
     or modifies any environmental or other law applicable to oil 
     and gas leasing and development on the outer Continental 
     Shelf.

      Subtitle C--Leasing in National Petroleum Reserve in Alaska

     SEC. 221. ACCELERATION OF LEASE SALES FOR NATIONAL PETROLEUM 
                   RESERVE IN ALASKA.

       Section 107(d) of the Naval Petroleum Reserves Production 
     Act of 1976 (42 U.S.C. 6506a(d)) is amended--

[[Page S7337]]

       (1) by striking ``(d)'' and all that follows through ``; 
     first lease sale'' and inserting the following:
       ``(d) Lease Sales.--
       ``(1) First lease sale.--The first lease sale''; and
       (2) by adding at the end the following:
       ``(2) Subsequent lease sales.--The Secretary shall 
     accelerate, to the maximum extent practicable, competitive 
     and environmentally responsible leasing of oil and gas in the 
     Reserve in accordance with this Act and all applicable 
     environmental laws, including at least 1 lease sale during 
     each of calendar years 2009 through 2013.''.

                Subtitle D--Strategic Petroleum Reserve

     SEC. 231. DEFINITIONS.

       In this subtitle:
       (1) Heavy-grade petroleum.--The term ``heavy-grade 
     petroleum'' means crude oil with an American Petroleum 
     Institute gravity of 26 degrees or lower.
       (2) Light-grade petroleum.--The term ``light-grade 
     petroleum'' means--
       (A) crude oil in the Strategic Petroleum Reserve 
     categorized as Bayou Choctaw Sweet, Big Hill Sweet, West 
     Hackberry Sweet, or Bryan Mound Sweet; and
       (B) oil acquired for storage in the Strategic Petroleum 
     Reserve with any category of oil referred to in subparagraph 
     (A).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (4) SPR petroleum account.--The term ``SPR Petroleum 
     Account'' means the SPR Petroleum Account established under 
     section 167 of the Energy Policy and Conservation Act (42 
     U.S.C. 6247).
       (5) Strategic petroleum reserve.--The term ``Strategic 
     Petroleum Reserve'' means the Strategic Petroleum Reserve 
     established under part B of title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6231 et seq.).

     SEC. 232. MODERNIZATION OF THE STRATEGIC PETROLEUM RESERVE.

       (a) Initial Petroleum Exchange From Reserve.--
     Notwithstanding section 161 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6241), not later than 15 days 
     after the date of enactment of this Act, the Secretary 
     shall--
       (1) exchange, in the quantity described in subsection (b), 
     light-grade petroleum from the Strategic Petroleum Reserve 
     for--
       (A) an equivalent volume of heavy-grade petroleum; plus
       (B) any additional cash bonus bids received that reflect 
     the difference in--
       (i) the market value between light-grade petroleum and 
     heavy-grade petroleum; and
       (ii) the timing of deliveries of the heavy-grade petroleum;
       (2) of the gross proceeds of the cash bonus bids, deposit 
     the amount required to pay for the direct administrative and 
     operational costs of the exchange in the SPR Petroleum 
     Account; and
       (3) disburse the remaining net proceeds from the exchange 
     to the Secretary of Health and Human Services to carry out 
     the low-income home energy assistance program established 
     under the Low-Income Home Energy Assistance Act of 1981 (42 
     U.S.C. 8621 et seq.), to be available without further 
     appropriation and to remain available until expended.
       (b) Quantities and Schedule.--
       (1) Sale of light-grade petroleum.--Not later than 180 days 
     after the date of enactment of this Act, to carry out 
     subsection (a), the Secretary shall sell at least 70,000,000 
     barrels of light-grade petroleum from the Strategic Petroleum 
     Reserve.
       (2) Acquisition of heavy-grade petroleum.--The acquisition 
     of heavy-grade petroleum through purchase or exchange shall--
       (A) commence not earlier than 1 year after the date of 
     enactment of this Act;
       (B) be completed, at the discretion of the Secretary, not 
     later than 5 years after the date of enactment of this Act; 
     and
       (C) be carried out in a manner that maximizes the monetary 
     value of the exchange to the Federal Government.

     SEC. 233. DEFERRALS.

       As the Secretary determines to be economically beneficial 
     and practical, the Secretary is encouraged to grant any 
     request to defer a scheduled delivery of petroleum to the 
     Strategic Petroleum Reserve if the deferral will result in a 
     premium paid in additional barrels of oil that will--
       (1) reduce the cost of oil acquisition; and
       (2) increase the volume of oil delivered to the Reserve.

                     Subtitle E--Resource Estimates

     SEC. 241. RESOURCE ESTIMATES.

       (a) In General.--The Secretary of the Interior shall 
     annually collect and report to Congress--
       (1) data on the number of acres of land under Federal 
     onshore oil and gas lease--
       (A) on which exploration activity is occurring; and
       (B) on which production is occurring;
       (2) resource estimates and number of acres for Federal 
     onshore and offshore land under lease;
       (3) resource estimates and number of acres for unleased 
     Federal onshore and offshore land available for oil and gas 
     leasing;
       (4) resource estimates and number of acres for areas of the 
     outer Continental Shelf--
       (A) under lease but not producing;
       (B) offered for lease in a lease sale conducted during the 
     previous year but not leased;
       (C) included in proposed sale areas in the 5-year plan 
     developed by the Secretary pursuant to section 18 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1344); and
       (D) available for oil and gas leasing but not included in 
     the 5-year plan; and
       (5) resource estimates and number of acres for Federal 
     onshore land--
       (A) under lease but not producing; and
       (B) offered for lease in a lease sale conducted during the 
     previous year but not leased.
       (b) Covered Provisions.--Subsection (a) shall apply with 
     respect leases and land eligible for leasing pursuant to--
       (1) section 17 of the Mineral Leasing Act (30 U.S.C. 226);
       (2) section 107 of the Naval Petroleum Reserves Production 
     Act of 1976 (42 U.S.C. 6506a); and
       (3) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
     et seq.).

       Subtitle F--Sense of Senate on Alaska Natural Gas Pipeline

     SEC. 251. SENSE OF SENATE ON ALASKA NATURAL GAS PIPELINE.

       (a) Findings.--Congress finds that--
       (1) more than 35,000,000,000,000 cubic feet of natural gas 
     reserves have been discovered on Federal and State land open 
     to leasing as of the date of enactment of this Act in the 
     North Slope area of the State of Alaska, but that natural gas 
     is being injected underground because the natural gas cannot 
     be transported to markets in the lower 48 States; and
       (2) in 2004, Congress passed the Alaska Natural Gas 
     Pipeline Act (15 U.S.C. 720 et seq.)--
       (A) to expedite the Federal regulatory process for siting 
     of an Alaska natural gas pipeline;
       (B) to establish a Federal office to coordinate the 
     permitting process;
       (C) to authorize a loan guarantee for the construction of 
     an Alaska natural gas pipeline;
       (D) to provide accelerated depreciation for an Alaska 
     natural gas pipeline; and
       (E) to provide favorable tax treatment for a gas 
     conditioning plant in the North Slope area of the State of 
     Alaska.
       (b) Sense of Senate.--It is the sense of the Senate that--
       (1) the Alaska natural gas pipeline is a critically 
     important national infrastructure project that would benefit 
     all consumers in the United States;
       (2) all parties interested in the development of an Alaska 
     natural gas pipeline, including oil and gas producers, 
     pipeline companies, the State of Alaska, Federal agencies, 
     Canadian authorities, and others, should, and are encouraged 
     by the Senate, to accelerate their efforts to work together 
     to allow that critical national infrastructure project to 
     move forward; and
       (3) an Alaska natural gas transportation project would 
     provide significant economic benefits to the United States 
     and Canada and, to maximize those benefits, the sponsors of 
     the Alaska natural gas transportation project should make 
     every effort to--
       (A) use steel that is manufactured in North America; and
       (B) negotiate a project labor agreement to expedite 
     construction of the pipeline.

              Subtitle G--Roan Plateau Oil and Gas Leasing

     SEC. 261. SHORT TITLE.

       This subtitle may be cited as the ``Roan Plateau Oil and 
     Gas Leasing Improvement Act of 2008''.

     SEC. 262. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) the Roan Plateau Planning Area likely contains 
     significant energy resources, especially natural gas;
       (2) the Roan Plateau Planning Area also is--
       (A) an important part of the natural heritage of the State 
     of Colorado that provides important habitat for fish and 
     wildlife, including genetically pure populations of Colorado 
     River cutthroat trout, mule deer, and Rocky Mountain elk; and
       (B) increasingly important for hunters, fishermen, and 
     other outdoor recreationists as development has made other 
     land in the western part of the State less conducive to those 
     uses;
       (3) oil and gas development activities have the potential 
     to disturb the environment and pose a particular threat to 
     habitats for wildlife and aquatic species on the Roan 
     Plateau, while phased leasing of the energy resources 
     associated with the Roan Plateau can result in payment by the 
     leaseholders of greater revenues than would result from more 
     rapid leasing; and
       (4) phased development and long-range planning pursuant to 
     unit agreements will--
       (A) maximize lease revenues;
       (B) reduce duplicative infrastructure, such as roads, 
     pipelines, and compressor stations;
       (C) reduce overall ground disturbance; and
       (D) minimize habitat fragmentation.
       (b) Purpose.--The purpose of this subtitle is to provide 
     for balanced development of the energy resources of the Roan 
     Plateau in a manner that minimizes the adverse impacts on 
     fish and wildlife habitats and environmental resources and 
     values while increasing the financial returns to the United 
     States and the State of Colorado.

     SEC. 263. DEFINITIONS.

       In this subtitle:
       (1) Draft resource management plan.--The term ``draft 
     resource management plan'' means the Draft Resource 
     Management Plan Amendment and Environmental Impact Statement 
     of the Bureau of Land Management for the Roan Plateau 
     Planning Area (2004).
       (2) Eligible public land.--The term ``eligible public 
     land'' means --

[[Page S7338]]

       (A) the public land within the 6,000-acre developed tract 
     of Oil Shale Reserve Numbered 3 described in section 
     7439(a)(2) of title 10, United States Code; and
       (B) in the case of public land described in the proposed 
     resource management plan--
       (i) a phased development area; and
       (ii) any public land within the northeastern, northwestern, 
     southeastern, or southwestern quadrant of the Roan Plateau 
     Planning Area that is defined as ``below the rim'' or ``below 
     the cliffs'' in figure 1-3.
       (3) June 2007 record of decision.--The term ``record of 
     decision'' means the Record of Decision made available 
     pursuant to the notice entitled ``Notice of Availability of 
     the Record of Decision for the Resource Management Plan 
     Amendment (RMPA) for Portions of the Roan Plateau Planning 
     Area and Supplemental Information for Proposed Areas of 
     Critical Environmental Concern (ACEC) With Associated 
     Resource Use Limitations for Public Lands in Garfield and Rio 
     Blanco Counties, CO'' (72 Fed. Reg. 32138), dated June 11, 
     2007.
       (4) March 2008 record of decision.--The term ``March 2008 
     Record of Decision'' means the Record of Decision for the 
     Designation of Areas of Critical Environmental Concern for 
     the Roan Plateau Resource Management Plan Amendment and 
     Environmental Impact Statement, dated March 15, 2008.
       (5) Mineral lease.--The term ``mineral lease'' means a 
     lease of minerals owned by the United States pursuant to the 
     Mineral Leasing Act (30 U.S.C. 181 et seq.).
       (6) Phased development area.--The term ``phased development 
     area'' means each of the 6 tracts of public domain land on 
     the top of the Roan Plateau, each of which is--
       (A) depicted in figure 2-1 on page 2-26 of the proposed 
     resource management plan; and
       (B) described, respectively, as--
       (i) the Anvil Ridge Oil & Gas Phased Development Area;
       (ii) the Cook Ridge Oil & Gas Phased Development Area;
       (iii) the Corral Ridge Oil & Gas Phased Development Area;
       (iv) the Long Ridge East Oil & Gas Phased Development Area;
       (v) the Long Ridge West Oil & Gas Phased Development Area; 
     and
       (vi) the Short Ridge Oil & Gas Phased Development Area.
       (7) Proposed resource management plan.--The term ``proposed 
     resource management plan'' means the proposed Resource 
     Management Plan and Environmental Impact Statement of the 
     Bureau of Land Management for the Roan Plateau Management 
     Area (August 2006).
       (8) Public land.--The term ``public land'' has the meaning 
     given the term ``public lands'' in section 103 of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1702).
       (9) Resource management plan amendment.--The term 
     ``resource management plan amendment'' means the Resource 
     Management Plan Amendment and Final Environmental Impact 
     Statement of the Bureau of Land Management for the Roan 
     Plateau Planning Area (2006).
       (10) Roan plateau planning area.--The term ``Roan Plateau 
     Planning Area'' means public land in the State that is 
     covered by the draft resource management plan.
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Director of the Bureau of 
     Land Management.
       (12) State.--The term ``State'' means the State of 
     Colorado.

     SEC. 264. SPECIAL PROTECTION AREAS.

       (a) Designation.--There are designated the following 
     Special Protection Areas:
       (1) All public land identified as an Area of Critical 
     Environmental Concern (ACEC) on the map entitled 
     ``Alternative II Management'' of the draft resource 
     management plan.
       (2) All public land located within the watersheds or 
     drainages of Northwater Creek and the East Fork of Parachute 
     Creek above the confluence with First Anvil Creek.
       (3) All public land identified as subject to a No Ground 
     Disturbance (NGD/NSO) stipulation on the map entitled 
     ``Alternative II Stipulations'' of the resource management 
     plan amendment.
       (b) Management.--Except as otherwise provided in this 
     subtitle, the Secretary shall manage the Special Protection 
     Areas in a manner that prevents irreparable damage to the 
     fish and wildlife resources and the historical, cultural, 
     scenic, and environmental resources and values within those 
     areas.
       (c) Terms and Conditions.--Except as provided in subsection 
     (d), the Secretary shall include in any mineral lease entered 
     into for any land within a Special Protection Area and for 
     any Federal minerals underlying the Northwater Creek 
     drainage--
       (1) a stipulation prohibiting surface occupancy or surface 
     disturbance for purposes of exploration for or development of 
     oil or natural gas; and
       (2) such other terms and conditions as are necessary to 
     protect and enhance the biological and ecological values 
     associated with public land covered by the lease.
       (d) Nonwaivability.--
       (1) In general.--Except as provided in paragraph (2), a 
     stipulation, term, or condition described in subsection 
     (c)(1) shall not be subject to waiver, exemption, or 
     exception.
       (2) Exceptions for existing ridge-top roads.--The Secretary 
     may allow the holder of a mineral lease to occupy the surface 
     of public land identified on the map entitled ``Alternative 
     II Management'' of the draft resource management plan that 
     has a surveyed slope of not more than 20 percent and is 
     within 600 feet on either side of the center line of the 
     following existing ridge-top roads (not including any 
     secondary roads or spur roads appurtenant to the ridge-top 
     roads, other than the road described in subparagraph (F)):
       (A) Anvil Points Road.
       (B) Long Ridge Road.
       (C) Short Ridge Road.
       (D) Cook Ridge Road.
       (E) Corral Ridge Road, numbered 8,000 off of Cow Creek 
     Road, but only in areas that are outside the watershed of 
     Trapper Creek.
       (F) The spur road off of Cow Creek Road and Corral Ridge 
     Road in sec. 1, 2, and 11, T. 5 S., R. 95 W., but only on the 
     north and west sides of the road.
       (e) Conditions for Oil and Gas Exploration and Development 
     Along Existing Ridge-Top Roads.--
       (1) In general.--The Secretary may permit oil and gas 
     exploration and development activities within the development 
     corridors designated under subsection (d) only after--
       (A) site-specific consultation with the Department of 
     Natural Resources of the State;
       (B) the conduct of a detailed review and analysis of the 
     proposed location and activities; and
       (C) incorporation of operational and procedural practices 
     to avoid, minimize, or mitigate any potential impacts to 
     biological or ecological resources, including state-of-the-
     art measures to minimize erosion from stormwater runoff.
       (2) Compliance with federal and state law.--Any oil and gas 
     exploration and development activities authorized under 
     subsection (d)(2) shall comply with applicable Federal and 
     State laws (including regulations).
       (f) Public Comment.--Before permitting oil and gas 
     exploration and development activities under subsection 
     (d)(2), the Secretary shall provide notice and an opportunity 
     for public comment.

     SEC. 265. PHASED MINERAL LEASING.

       (a) In General.--
       (1) Leases.--Except as provided in paragraph (2) and to the 
     extent consistent with this subtitle, the Secretary may issue 
     mineral leases affecting public land within the Roan Plateau 
     Planning Area pursuant to the Mineral Leasing Act (30 U.S.C. 
     181 et seq.).
       (2) Oil shale.--The Secretary may not permit through a 
     lease or other means any exploration for or development of 
     oil shale resources within the Roan Plateau Planning Area.
       (b) Phased Development.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     may not at any time issue mineral leases for public land 
     within more than 1 of the phased development areas.
       (2) Initial phased development area.--The Secretary, in 
     consultation with and concurrence by the Department of 
     Natural Resources of the State and pursuant to this 
     subsection, may select an area for initial issuance of 
     mineral leases.
       (3) Factors.--In making the selection under paragraph (2), 
     the Secretary shall, to the maximum extent practicable--
       (A) minimize environmental and ecological impact;
       (B) minimize disturbance to natural areas atop the Roan 
     Plateau;
       (C) maximize use of existing access roads and oil and gas 
     pipeline and production infrastructure;
       (D) consider patterns of private land ownership adjacent to 
     public land;
       (E) protect and promote ecological diversity;
       (F) minimize adverse effects on wildlife populations, 
     habitat, and migration patterns;
       (G) minimize adverse effects on watershed values; and
       (H) maximize the revenues likely to be obtained by the 
     United States and, pursuant to the Mineral Leasing Act (30 
     U.S.C. 181 et seq.), the State.
       (4) Choice of initial area.--The Secretary may select as 
     the initial area for offering of leases only--
       (A) the Anvil Ridge Oil and Gas Development Area; or
       (B) the Corral Ridge Oil and Gas Development Area.
       (5) Public comment.--Before making a selection of a phased 
     development area under this subsection, the Secretary shall 
     provide notice and an opportunity for public comment.
       (c) Environmental Protection.--Each mineral lease affecting 
     public land within the Roan Plateau Planning Area shall 
     include provisions to ensure the protection of the 
     environment, including minimum pad spacing that incorporates 
     current state-of-the-art drilling technologies and clustered 
     development.
       (d) Bonus Bids and Leases.--In entering into leases for oil 
     or gas exploration and development on public land within the 
     Roan Plateau Planning Area, the Secretary may include minimum 
     bonus bid amounts and lease sizes that are above the limits 
     established under subparagraphs (A) and (B) of section 
     17(b)(1) of the Mineral Leasing Act (30 U.S.C. 226(b)(1)), to 
     the extent the Secretary considers the amounts and sizes 
     appropriate to accomplish the purposes of this subtitle, 
     including maximization of lease revenues and protection of 
     the environment.

[[Page S7339]]

       (e) Reports.--Not later than 1 year after the date on which 
     leases are first offered pursuant to this section and 
     annually thereafter, the Secretary shall submit to the 
     appropriate committees of Congress a report that includes 
     detailed information about--
       (1) the status of exploration or development activities 
     pursuant to leases entered into under this section and the 
     stipulations and other terms and conditions applicable to 
     each such lease;
       (2) the nature and effectiveness of actions taken to 
     mitigate adverse effects of exploration or development 
     activities pursuant to the leases and to reclaim land 
     affected by the activities;
       (3) the effectiveness of the actions described in paragraph 
     (2); and
       (4) the effects of such exploration or development 
     activities on--
       (A) water quality and quantity;
       (B) air quality;
       (C) the viability of native fish populations;
       (D) wildlife habitat and populations;
       (E) opportunities for hunting, fishing, and other 
     recreational activities; and
       (F) land affected by any discharges or spills related to 
     the activities.

     SEC. 266. SELECTION OF SUBSEQUENT LEASING AREAS.

       (a) In General.--Subject to subsection (d) and consistent 
     with this subtitle, the Secretary, in consultation with and 
     concurrence by the Department of Natural Resources of the 
     State, may select the second and each subsequent phased 
     development area for issuance of mineral leases.
       (b) Requirements.--Each selection under this section shall 
     be made in accordance with the requirements of section 
     265(b)(3) that apply to the initial selection.
       (c) Public Comment.--Before making a selection of a 
     subsequent phased development area under this section, the 
     Secretary shall provide notice and an opportunity for public 
     comment.
       (d) Conditions.--Selection and leasing of the second or any 
     subsequent phased development area shall occur only if--
       (1) wells have been completed to recover at least 90 
     percent of the recoverable natural gas in each previously 
     selected phased development area; and
       (2) reclamation of ground disturbance to a 5-year interim 
     reclamation standard as set forth in Appendix C of the June 
     2007 Record of Decision has occurred on at least 99 percent 
     of the public land leased in each previously-selected phased 
     development area.

     SEC. 267. FEDERAL UNITIZATION AGREEMENTS.

       (a) In General.--The Secretary, in consultation with and 
     concurrence by the Department of Natural Resources of the 
     State, shall ensure that each lease for oil or gas 
     exploration and development on public land within the Roan 
     Plateau Planning Area under this subtitle contains a 
     stipulation that requires the lessee to join a Federal 
     unitization agreement that is approved by the Secretary 
     covering all leases offered in the relevant phased 
     development area.
       (b) Contents.--The unitization agreement under subsection 
     (a) shall--
       (1) identify the operator of the unit;
       (2) allocate costs and benefits of production to all of the 
     covered lessees; and
       (3) provide a development plan for the leased area.

     SEC. 268. RECORD OF DECISION.

       (a) Reclamation Requirements and Disturbance Limitations.--
     Each development activity conducted under a mineral lease 
     affecting public land within the Roan Plateau Planning Area 
     shall be subject to the reclamation requirements and 
     disturbance limitations of the June 2007 Record of Decision 
     and the March 2008 Record of Decision, including the 
     limitation on the total unreclaimed surface disturbance on 
     the Plateau to 350 acres.
       (b) Continued Application.--The June 2007 Record of 
     Decision and the March 2008 Record of Decision shall continue 
     to apply to the Roan Plateau Planning Area to the extent that 
     the June 2007 Record of Decision and the March 2008 Record of 
     Decision are consistent with this subtitle.

     SEC. 269. CONFORMING AMENDMENTS.

       Section 7439 of title 10, United States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``(1) Beginning on November 18, 1997, or as 
     soon thereafter as practicable, the'' and inserting ``The''; 
     and
       (ii) in the first sentence--

       (I) by striking ``shall'' and inserting ``may''; and
       (II) by inserting ``, as authorized under the Roan Plateau 
     Oil and Gas Leasing Improvement Act of 2008'' before the 
     period at the end; and

       (B) by striking paragraph (2); and
       (2) in subsection (f)--
       (A) in paragraph (1), by striking ``specified in paragraph 
     (2)'' and inserting ``beginning on November 18, 1997, and 
     ending on the date of enactment of the Roan Plateau Oil and 
     Gas Leasing Improvement Act of 2008''; and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Beginning on the date of enactment of the Roan 
     Plateau Oil and Gas Leasing Improvement Act of 2008, any 
     amounts received by the United States from a lease under this 
     section (including amounts in the form of sales, bonuses, 
     royalties (including interest charges collected under the 
     Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 
     1701 et seq.)), and rentals) shall be deposited in the 
     Treasury of the United States, for use in accordance with 
     section 35 of the Mineral Leasing Act (30 U.S.C. 191).''.

            Subtitle H--Export of Refined Petroleum Products

     SEC. 271. EXPORT OF REFINED PETROLEUM PRODUCTS.

       (a) In General.--The President shall report to Congress if 
     net petroleum product exports to any country outside of North 
     America exceed 1 percent of total United States consumption 
     of refined petroleum products for any period of more than 7 
     days.
       (b) Contents.--The report shall--
       (1) describe the reasons for the exports; and
       (2) state whether those petroleum products that were 
     exported could otherwise have been consumed inside the United 
     States.

                         TITLE III--OIL DEMAND

                        Subtitle A--Oil Savings

     SEC. 301. FINDINGS.

       Congress finds that--
       (1) the United States imports more oil from the Middle East 
     today than before the attacks on the United States on 
     September 11, 2001;
       (2) the United States remains the most oil-dependent 
     industrialized nation in the world, consuming approximately 
     25 percent of the oil supply of the world;
       (3) the ongoing dependence of the United States on foreign 
     oil is one of the greatest threats to the national security 
     and economy of the United States; and
       (4) the United States needs to take transformative steps to 
     wean itself from its addiction to oil.

     SEC. 302. POLICY ON REDUCING OIL DEPENDENCE.

       It is the policy of the United States to reduce the 
     dependence of the United States on oil, and thereby--
       (1) alleviate the strategic dependence of the United States 
     on oil-producing countries;
       (2) reduce the economic vulnerability of the United States; 
     and
       (3) reduce the greenhouse gas emissions associated with oil 
     use.

     SEC. 303. OIL SAVINGS PLAN.

       (a) Initial Oil Savings Target and Action Plan.--Not later 
     than 270 days after the date of enactment of this Act, an 
     interagency task force composed of the Secretary of Energy, 
     the Secretary of Transportation, the Secretary of Defense, 
     the Secretary of Agriculture, the Secretary of the Treasury, 
     the Administrator of the Environmental Protection Agency, and 
     the head of any other agency the President determines 
     appropriate (referred to in this section as the ``Interagency 
     Task Force'') shall publish in the Federal Register an action 
     plan consisting of--
       (1) a draft list of proposals for agency action that will 
     be sufficient, when taken together, to save from the baseline 
     determined under subsection (d)--
       (A) 2,500,000 barrels of oil per day on average during 
     calendar year 2016;
       (B) 7,000,000 barrels of oil per day on average during 
     calendar year 2026; and
       (C) 10,000,000 barrels per day on average during calendar 
     year 2030; and
       (2) a Federal Government-wide analysis demonstrating--
       (A) the expected oil savings from the baseline to be 
     accomplished by--
       (i) chapter 329 of title 49, United States Code (including 
     regulations promulgated to carry out that chapter); and
       (ii) section 211(o) of the Clean Air Act (42 U.S.C. 
     7545(o)) (including regulations promulgated to carry out 
     section 211(o) of that Act); and
       (B) that the proposals described in paragraph (1), taken 
     together with expected oil savings described in subparagraph 
     (A), will achieve the oil savings specified in this 
     subsection.
       (b) Review and Update of Action Plan.--
       (1) Review.--Not later than January 1, 2011, and every 3 
     years thereafter, the Interagency Task Force shall submit to 
     Congress, and publish, a report that--
       (A) evaluates the progress achieved in implementing the oil 
     savings targets established under subsection (a);
       (B) analyzes the expected oil savings under the action plan 
     established under that subsection; and
       (C)(i) analyzes the potential to achieve oil savings that 
     are in addition to the oil savings goals under that 
     subsection; and
       (ii) if the President determines that it is in the national 
     interest, requires an analysis under that subsection for a 
     higher oil savings goal for calendar year 2017 or any 
     subsequent calendar year.
       (2) Insufficient oil savings.--If the oil savings are less 
     than the targets described in subsection (a), simultaneously 
     with the report required under paragraph (1), the Interagency 
     Task Force shall publish a revised action plan that is 
     sufficient to achieve the targets.
       (c) Public Comment and Final Proposals.--
       (1) In general.--After a 30-day period for public comment 
     on the publications under subsection (a) and (b), the 
     Interagency Task Force shall, not later than 1 year after the 
     date of enactment of this Act, issue a final list of 
     proposals to meet the requirements of this section.
       (2) Additional legislative authority.--The proposals shall 
     include a request to Congress for any additional legislative 
     authority necessary to implement the proposals.
       (d) Baseline and Analysis Requirements.--In performing the 
     analyses required for the action plan to achieve the oil 
     savings described in subsection (a), the Secretary of

[[Page S7340]]

     Energy, the Secretary of Transportation, the Secretary of 
     Defense, the Secretary of Agriculture, the Administrator of 
     the Environmental Protection Agency, and the head of any 
     other agency the President determines to be appropriate 
     shall--
       (1) determine oil savings as the projected reduction in oil 
     consumption from the baseline established by the reference 
     case contained in the report of the Energy Information 
     Administration entitled ``Annual Energy Outlook 2008'';
       (2) determine the oil savings projections required on an 
     annual basis for each of calendar years 2009 through 2030; 
     and
       (3) account for any overlap among implementation actions to 
     ensure that the projected oil savings from all the 
     implementation actions, taken together, are as accurate as 
     practicable.
       (e) Relationship to Other Laws.--Nothing in this section 
     affects the authority provided or responsibility delegated 
     under any other law.

                          Subtitle B--Telework

     PART I--INCENTIVE PROGRAMS FOR REDUCING PETROLEUM CONSUMPTION

     SEC. 306. INCENTIVE PROGRAMS FOR REDUCING PETROLEUM 
                   CONSUMPTION.

       Part J of title III of the Energy Policy and Conservation 
     Act (42 U.S.C. 6374 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 400GG. INCENTIVE PROGRAMS FOR REDUCING PETROLEUM 
                   CONSUMPTION.

       ``(a) Federal Employee Incentive Programs for Reducing 
     Petroleum Consumption.--
       ``(1) In general.--Each Federal agency shall actively 
     promote incentive programs that encourage Federal employees 
     and contractors to reduce petroleum usage through the use of 
     practices such as--
       ``(A) telecommuting;
       ``(B) public transit;
       ``(C) carpooling; and
       ``(D) bicycling.
       ``(2) Monitoring and support for incentive programs.--The 
     Administrator of General Services, the Director of the Office 
     of Personnel Management, and the Secretary of Energy shall 
     monitor and provide appropriate support to agency programs 
     described in paragraph (1).
       ``(3) Recognition.--The Secretary may establish a program 
     under which the Secretary recognizes private sector employers 
     for outstanding programs to reduce petroleum usage through 
     practices described in paragraph (1).
       ``(b) Grants to States and Local Governments for Incentive 
     Programs for Reducing Petroleum Consumption.--
       ``(1) In general.--The Secretary shall make grants to 
     States and local governments to pay the Federal share of the 
     cost of carrying out incentive programs to reduce petroleum 
     usage through the use of practices such as--
       ``(A) telecommuting;
       ``(B) public transit;
       ``(C) carpooling; and
       ``(D) bicycling.
       ``(2) Federal share.--Except as provided in paragraph 
     (3)(B), the Federal share of the cost of carrying out an 
     incentive program described in paragraph (1) shall be 50 
     percent.
       ``(3) Rural areas.--In the case of local governments that 
     serve rural areas (as defined by the Secretary)--
       ``(A) the Secretary shall give priority to those local 
     governments in making grants under this subsection; and
       ``(B) the Federal share of the cost of carrying out an 
     incentive program described in paragraph (1) shall be 100 
     percent.
       ``(4) 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 2015.''.

                     PART II--TELEWORK ENHANCEMENT

     SEC. 311. SHORT TITLE.

       This part may be cited as the ``Telework Enhancement Act of 
     2008''.

     SEC. 312. DEFINITIONS.

       In this part:
       (1) Employee.--The term ``employee'' has the meaning given 
     that term by section 2105 of title 5, United States Code.
       (2) Executive agency.--The term ``executive agency'' has 
     the meaning given that term by section 105 of title 5, United 
     States Code.
       (3) Noncompliant.--The term ``noncompliant'' means not 
     conforming to the requirements under this part.
       (4) Telework.--The term ``telework'' means a work 
     arrangement in which an employee regularly performs 
     officially assigned duties at home or other worksites 
     geographically convenient to the residence of the employee 
     during at least 20 percent of each pay period that the 
     employee is performing officially assigned duties.

     SEC. 313. EXECUTIVE AGENCIES TELEWORK REQUIREMENT.

       (a) Telework Eligibility.--Not later than 180 days after 
     the date of enactment of this Act, the head of each executive 
     agency shall--
       (1) establish a policy under which eligible employees of 
     the agency may be authorized to telework;
       (2) determine the eligibility for all employees of the 
     agency to participate in telework; and
       (3) notify all employees of the agency of their eligibility 
     to telework.
       (b) Participation.--The policy described under subsection 
     (a) shall--
       (1) ensure that telework does not diminish employee 
     performance or agency operations;
       (2) require a written agreement between an agency manager 
     and an employee authorized to telework in order for that 
     employee to participate in telework;
       (3) provide that an employee may not be authorized to 
     telework if the performance of that employee does not comply 
     with the terms of the written agreement between the agency 
     manager and that employee;
       (4) except in emergency situations as determined by an 
     agency head, not apply to any employee of the agency whose 
     official duties require daily physical presence for activity 
     with equipment or handling of secure materials; and
       (5) determine the use of telework as part of the continuity 
     of operations plans the agency in the event of an emergency.

     SEC. 314. TRAINING AND MONITORING.

       The head of each executive agency shall ensure that--
       (1) an interactive telework training program is provided 
     to--
       (A) employees eligible to participate in the telework 
     program of the agency; and
       (B) all managers of teleworkers;
       (2) no distinction is made between teleworkers and 
     nonteleworkers for the purposes of performance appraisals; 
     and
       (3) when determining what constitutes diminished employee 
     performance, the agency shall consult the established 
     performance management guidelines of the Office of Personnel 
     Management.

     SEC. 315. POLICY AND SUPPORT.

       (a) Agency Consultation With the Office of Personnel 
     Management.--Each executive agency shall consult with the 
     Office of Personnel Management in developing telework 
     policies.
       (b) Guidance and Consultation.--The Office of Personnel 
     Management shall--
       (1) provide policy and policy guidance for telework in the 
     areas of pay and leave, agency closure, performance 
     management, official worksite, recruitment and retention, and 
     accommodations for employees with disabilities; and
       (2) consult with--
       (A) the Federal Emergency Management Agency on policy and 
     policy guidance for telework in the areas of continuation of 
     operations and long-term emergencies; and
       (B) the General Services Administration on policy and 
     policy guidance for telework in the areas of telework 
     centers, travel, technology, equipment, and dependent care.
       (c) Continuity of Operations Plans.--During any period that 
     an agency is operating under a continuity of operations plan, 
     that plan shall supersede any telework policy.
       (d) Telework Website.--The Office of Personnel Management 
     shall--
       (1) maintain a central telework website; and
       (2) include on that website related--
       (A) telework links;
       (B) announcements;
       (C) guidance developed by the Office of Personnel 
     Management; and
       (D) guidance submitted by the Federal Emergency Management 
     Agency, and the General Services Administration to the Office 
     of Personnel Management not later than 10 business days after 
     the date of submission.

     SEC. 316. TELEWORK MANAGING OFFICER.

       (a) In General.--
       (1) Appointment.--The head of each executive agency shall 
     appoint an employee of the agency as the Telework Managing 
     Officer. The Telework Managing Officer shall be established 
     within the Office of the Chief Human Capital Officer or a 
     comparable office with similar functions.
       (2) Telework coordinators.--
       (A) Appropriations act, 2004.--Section 627 of the 
     Departments of Commerce, Justice, and State, the Judiciary, 
     and Related Agencies Appropriations Act, 2004 (Public Law 
     108-199; 118 Stat. 99) is amended by striking ``designate a 
     `Telework Coordinator' to be'' and inserting ``appoint a 
     Telework Managing Officer to be''.
       (B) Appropriations act, 2005.--Section 622 of the 
     Departments of Commerce, Justice, and State, the Judiciary, 
     and Related Agencies Appropriations Act, 2005 (Public Law 
     108-447; 118 Stat. 2919) is amended by striking ``designate a 
     `Telework Coordinator' to be'' and inserting ``appoint a 
     Telework Managing Officer to be''.
       (b) Duties.--The Telework Managing Officer shall--
       (1) be devoted to policy development and implementation 
     related to agency telework programs;
       (2) serve as--
       (A) an advisor for agency leadership, including the Chief 
     Human Capital Officer;
       (B) a resource for managers and employees; and
       (C) a primary agency point of contact for the Office of 
     Personnel Management on telework matters; and
       (3) perform other duties as the applicable appointing 
     authority may assign.

     SEC. 317. ANNUAL REPORT TO CONGRESS.

       (a) Submission of Reports.--Not later than 18 months after 
     the date of enactment of this Act and on an annual basis 
     thereafter, the Director of the Office of Personnel 
     Management shall--
       (1) submit a report addressing the telework programs of 
     each executive agency to--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (B) the Committee on Oversight and Government Reform of the 
     House of Representatives; and

[[Page S7341]]

       (2) transmit a copy of the report to the Comptroller 
     General and the Office of Management and Budget.
       (b) Contents.--Each report submitted under this section 
     shall include--
       (1) the telework policy, the measures in place to carry out 
     the policy, and an analysis of employee telework 
     participation during the preceding 12-month period provided 
     by each executive agency;
       (2) an assessment of the progress of each agency in 
     maximizing telework opportunities for employees of that 
     agency without diminishing employee performance or agency 
     operations;
       (3) the definition of telework and telework policies and 
     any modifications to such definitions;
       (4) the degree of participation by employees of each agency 
     in teleworking during the period covered by the evaluation, 
     including--
       (A) the number and percent of the employees in the agency 
     who are eligible to telework;
       (B) the number and percent of employees who engage in 
     telework;
       (C) the number and percent of eligible employees in each 
     agency who have declined the opportunity to telework; and
       (D) the number of employees who were not authorized, 
     willing, or able to telework and the reason;
       (5) the extent to which barriers to maximize telework 
     opportunities have been identified and eliminated; and
       (6) best practices in agency telework programs.

     SEC. 318. COMPLIANCE OF EXECUTIVE AGENCIES.

       (a) Executive Agencies.--An executive agency shall be in 
     compliance with this part if each employee of that agency 
     participating in telework regularly performs officially 
     assigned duties at home or other worksites geographically 
     convenient to the residence of the employee during at least 
     20 percent of each pay period that the employee is performing 
     officially assigned duties.
       (b) Agency Manager Reports.--Not later than 180 days after 
     the establishment of a policy described under section 313, 
     and annually thereafter, each agency manager shall submit a 
     report to the Chief Human Capital Officer and Telework 
     Managing Officer of that agency that contains a summary of--
       (1) efforts to promote telework opportunities for employees 
     supervised by that manager; and
       (2) any obstacles which hinder the ability of that manager 
     to promote telework opportunities.
       (c) Chief Human Capital Officer Reports.--
       (1) In general.--Each year the Chief Human Capital Officer 
     of each agency, in consultation with the Telework Managing 
     Officer of that agency, shall submit a report to the Chair 
     and Vice Chair of the Chief Human Capital Offices Council on 
     agency management efforts to promote telework.
       (2) Review and inclusion of relevant information.--The 
     Chair and Vice Chair of the Chief Human Capital Offices 
     Council shall--
       (A) review the reports submitted under paragraph (1);
       (B) include relevant information from the submitted reports 
     in the annual report to Congress required under section 
     317(b)(2); and
       (C) use that relevant information for other purposes 
     related to the strategic management of human capital.
       (d) Compliance Reports.--Not later than 90 days after the 
     date of submission of each report under section 317, the 
     Office of Management and Budget shall submit a report to 
     Congress that--
       (1) identifies and recommends corrective actions and time 
     frames for each executive agency that the Office of 
     Management and Budget determines is noncompliant; and
       (2) describes progress of noncompliant executive agencies, 
     justifications of any continuing noncompliance, and any 
     recommendations for corrective actions planned by the Office 
     of Management and Budget or the executive agency to eliminate 
     noncompliance.

     SEC. 319. EXTENSION OF TRAVEL EXPENSES TEST PROGRAMS.

       (a) In General.--Section 5710 of title 5, United States 
     Code, is amended--
       (1) in subsection (a)(1), by striking ``for a period not to 
     exceed 24 months''; and
       (2) in subsection (e), by striking ``7 years'' and 
     inserting ``16 years''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as though enacted as part of the Travel and 
     Transportation Reform Act of 1998 (Public Law 105-264; 112 
     Stat. 2350).

                   Subtitle C--Public Transportation

     SEC. 331. ENERGY EFFICIENT TRANSIT GRANT PROGRAM.

       (a) Establishment of Program.--The Secretary of 
     Transportation shall establish a program for making grants to 
     public transportation agencies to assist in reducing energy 
     consumption or greenhouse gas emissions of their public 
     transportation systems.
       (b) Eligible Uses of Funds.--A recipient of a grant under 
     subsection (a) shall use the grant funds for one or more of 
     the following:
       (1) Improvements that reduce energy consumption or 
     greenhouse gas emissions to lighting, heating, cooling, or 
     ventilation systems in public transportation stations and 
     other facilities for which grants authorized by sections 
     5307, 5309, and 5311 of title 49, United States Code, may be 
     expended.
       (2) Adjustments to signal timing or other vehicle 
     controlling systems, including computer controlled systems, 
     that reduce energy consumption or greenhouse gas emissions.
       (3) Purchasing or retrofitting rolling stock to improve 
     energy efficiency or reduce greenhouse gas emissions.
       (4) Improvements to energy distribution systems.
       (c) Distribution of Funds.--In determining the recipients 
     of grants under this section, the Secretary of Transportation 
     shall--
       (1) consult with other Federal agencies, including the 
     Department of Energy, as appropriate; and
       (2) evaluate applications based on--
       (A) the total energy savings that are projected to result 
     from the project; and
       (B) the projected energy savings as a percentage of the 
     transit agency's total energy usage.
       (d) Government's Share of Costs.--The Government's share of 
     the cost of an activity funded using amounts made available 
     under this section may not exceed 80 percent of the cost of 
     the activity.
       (e) Terms and Conditions.--Except as otherwise specifically 
     provided in this section, a grant provided under this section 
     shall be subject to the terms and conditions applicable to a 
     grant made under section 5307 of title 49, United States 
     Code.
       (f) Annual Reports.--On March 1, 2009, and 2010, the 
     Secretary shall submit to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, a report listing the recipients of grants 
     under this section, the purposes for which grant funds were 
     awarded, and any grant applicants who did not receive 
     funding.
       (g) Limitation on Use of Available Amounts.--The Secretary 
     may use not more than 0.5 percent of the amount made 
     available for a fiscal year under subsection (h) to provide 
     technical assistance and administer the grants authorized 
     under this section.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation to make 
     grants under this section $200,000,000 for each of fiscal 
     years 2009 through 2011. Sums appropriated to carry out this 
     section shall remain available until expended.

     SEC. 332. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS GRANT 
                   PROGRAM.

       (a) Establishment of Program.--The Secretary of 
     Transportation shall establish a program for making grants to 
     public transportation agencies, metropolitan planning 
     organizations, and other State or local government 
     authorities to support planning and design of Transit-
     Oriented Development Corridors.
       (b) Definitions.--In this section, the following 
     definitions apply:
       (1) Transit-oriented development corridor.--The term 
     ``Transit-Oriented Development Corridor'' means a geographic 
     area, including rights-of-way for fixed guideway public 
     transportation facilities, within \1/2\ mile radius of a 
     fixed guideway transit station or stop.
       (2) Other terms.--The terms ``fixed guideway'', ``local 
     governmental authority'', ``public transportation'', 
     ``Secretary'', and ``State'' have the meanings given such 
     terms in section 5302 of title 49, United States Code.
       (c) Eligible Uses of Funds.--A recipient of a grant under 
     subsection (a) shall use the grant funds for planning or 
     designing Transit-Oriented Development Corridors.
       (d) Distribution of Funds.--In determining the recipients 
     of grants under this section, the Secretary shall evaluate 
     applications based on the following considerations:
       (1) The justification for the project, including the extent 
     to which the project would reduce energy consumption or 
     greenhouse gas emissions, including by increasing transit 
     ridership and by increasing non-motorized trips to access the 
     transit station or facility.
       (2) The location of the project, to ensure that selected 
     projects are geographically diverse nationwide and include 
     both urban and suburban areas.
       (3) The extent to which project development is being 
     coordinated with all relevant participants, including real-
     estate, retail, housing, commercial and economic development, 
     and non-profit participants.
       (4) The extent to which the project includes mixed-use 
     development within the designated geographic area.
       (5) The extent to which the project is being coordinated 
     with relevant housing, economic development, land use, and 
     transportation plans.
       (e) Government's Share of Costs.--The Government's share of 
     the cost of an activity funded using amounts made available 
     under this section may not exceed 80 percent of the cost of 
     the activity, except for an activity undertaken by a grant 
     recipient who has not previously engaged in the planning or 
     design of a corridor which would meet the definition of a 
     Transit-Oriented Development Corridor under this section.
       (f) Terms and Conditions.--Except as otherwise specifically 
     provided in this section, a grant provided under this section 
     for planning shall be subject to the terms and conditions 
     applicable to a grant made under section 5303 of title 49, 
     United States Code. Except as otherwise specifically provided 
     in this section, a grant provided under this section for 
     design shall be subject to the terms and conditions 
     applicable to a grant for design made under section 5309 of 
     title 49, United States Code.

[[Page S7342]]

       (g) Annual Reports.--On June 1, 2009, and 2010, the 
     Secretary shall submit to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, a report listing the recipients of grants 
     under this section, the Federal share provided, the purposes 
     for which grant funds were awarded, and any grant applicants 
     who did not receive funding.
       (h) Limitation on Use of Available Amounts.--The Secretary 
     may use not more than 0.5 percent of the amount made 
     available for a fiscal year under subsection (i) to provide 
     technical assistance and administer the grants authorized 
     under this section.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation to make 
     grants under this section $200,000,000 for each of fiscal 
     years 2009 through 2011. Sums appropriated to carry out this 
     section shall remain available until expended.

     SEC. 333. ENHANCED TRANSIT OPTIONS.

       (a) Authorization.--The Secretary of Transportation is 
     authorized to make transit enhancement grants under this 
     section to public transportation agencies.
       (b) Eligible Recipients.--Grants authorized under 
     subsection (a) may be awarded--
       (1) to public transportation agencies which have a full 
     funding grant agreement in force on the date of enactment of 
     this Act with Federal payments scheduled in any year 
     beginning with fiscal year 2008, for activities authorized 
     under the full funding grant agreement that would expedite 
     construction of the project; and
       (2) to designated recipients as defined in section 5307 of 
     title 49, United States Code, for immediate use to--
       (A) address an already-identified backlog of maintenance 
     needs;
       (B) purchase additional rolling stock or buses, if the 
     contracts for such purchases are in place prior to the grant 
     award; and
       (C) continue or expand service to accommodate ridership 
     increases.
       (c) Appropriation of Funds.--There are appropriated, out of 
     funds in the Treasury not otherwise appropriated, to the 
     Secretary of Transportation to make grants under this 
     section--
       (1) $300,000,000 for grants to recipients described in 
     subsection (b)(1); and
       (2) $1,000,000,000 for grants to recipients described in 
     subsection (b)(2).
       (d) Distribution of Funds.--
       (1) Expedited new starts grants.--Funds authorized under 
     subsection (c)(1) shall be distributed among eligible 
     recipients so that each recipient receives an equal 
     percentage increase based on the Federal funding commitment 
     for fiscal year 2008 specified in Attachment 6 of the 
     recipient's full funding grant agreement.
       (2) Formula grants.--Of funds authorized under subsection 
     (c)(2)--
       (A) 60 percent shall be distributed according to the 
     formula in subsections (a) through (c) of section 5336 of 
     title 49, United States Code; and
       (B) 40 percent shall be distributed according to the 
     formula in section 5340 of title 49, United States Code.
       (3) Determination.--The Secretary of Transportation shall 
     determine the allocation of the amounts authorized among 
     recipients described in subsection (b) no later than 20 days 
     after the date of enactment of this Act.
       (e) Pre-Award Spending Authority.--
       (1) In general.--A recipient of a grant under this section 
     shall have pre-award spending authority.
       (2) Requirements.--If pre-award spending authority is used, 
     the expenditures shall conform with applicable Federal 
     requirements in order to remain eligible for future Federal 
     reimbursement.
       (f) Federal Share.--The Federal share of grants authorized 
     under this section shall be 100 percent.
       (g) Self-Certification.--
       (1) In general.--Prior to obligation of grant funds, the 
     recipient of the grant award shall certify--
       (A) for recipients under subsection (b)(1), that it will 
     comply with the terms and conditions that apply to grants 
     under section 5309 of title 49, United States Code;
       (B) for recipients under subsection (b)(2), that it will 
     comply with the terms and conditions that apply to grants 
     under section 5307 of title 49, United States Code; and
       (C) that the funds will be used in a manner that will 
     stimulate the economy.
       (2) Inclusion.--Required certifications under this 
     subsection may be made as part of the certification required 
     under section 5307(d)(1) of title 49, United States Code.
       (3) Penalty.--If, upon audit, the Secretary of 
     Transportation finds that the recipient has not complied with 
     applicable requirements under this section and has not made a 
     good-faith effort to comply, the Secretary may withhold not 
     more than 25 percent of the amount required to be 
     appropriated for that recipient under section 5307 of title 
     49, United States Code, for the following fiscal year.

             Subtitle D--Fuel Consumption Indicator Devices

     SEC. 336. ONBOARD FUEL ECONOMY INDICATORS AND DEVICES.

       (a) In General.--Chapter 329 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 32920. Fuel economy indicators and devices

       ``(a) In General.--The Secretary of Transportation, in 
     consultation with the Administrator of the Environmental 
     Protection Agency, shall prescribe a fuel economy standard 
     for passenger automobiles and non-passenger automobiles 
     manufactured by a manufacturer in model year 2012, and in 
     each model year after 2012, that requires each such 
     automobile to be equipped with--
       ``(1) an onboard electronic instrument that provides real-
     time and cumulative fuel economy data;
       ``(2) an onboard electronic instrument that signals a 
     driver when inadequate tire pressure may be affecting fuel 
     economy; and
       ``(3) a device that will allow drivers to place the 
     automobile in a mode that will automatically produce greater 
     fuel economy.
       ``(b) Exception.--Subsection (a) shall not apply to any 
     vehicle that is not subject to an average fuel economy 
     standard under section 32902(b).
       ``(c) Enforcement.--Subchapter IV of chapter 301 of this 
     title shall apply to a fuel economy standard prescribed under 
     subsection (a) to the same extent and in the same manner as 
     if that standard were a motor vehicle safety standard under 
     chapter 301.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     329 of title 49, United States Code, is amended by inserting 
     after the item relating to section 32919 the following:

``32920. Fuel economy indicators and devices.''.

           Subtitle E--Vehicle-to-Grid Demonstration Program

     SEC. 341. VEHICLE-TO-GRID DEMONSTRATION PROGRAM.

       (a) Definitions.--In this section:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (2) V2G program.--The term ``V2G program'' means the 
     vehicle-to-grid demonstration program established under 
     subsection (b).
       (b) Program.--The Secretary shall establish and carry out a 
     vehicle-to-grid demonstration program--
       (1) to demonstrate ways in which electricity may be 
     transmitted between plug-in hybrid electric vehicles and an 
     electricity distribution system;
       (2) to collect real-world data on that transmission;
       (3) to develop a better understanding of the benefits of 
     vehicle-to-grid technologies;
       (4) to facilitate future adoption of vehicle-to-grid 
     systems; and
       (5) to demonstrate optimal integration of advanced vehicle 
     technologies with a renewable energy-based electricity 
     distribution system.
       (c) Requirements.--The V2G program shall address the 
     challenges to achieving integration of advanced vehicle 
     technologies with the electricity distribution system, 
     including challenges relating to--
       (1) charging infrastructure;
       (2) accurate and discrete measurement of energy delivered;
       (3) communication protocol standards;
       (4) power flow control;
       (5) smart metering technology; and
       (6) the impact on the grid from integration of various 
     renewable energy generation loads ranging from 10 to 25 
     percent renewable power.
       (d) Cooperation.--The Secretary shall carry out the V2G 
     program through consortia of individuals and entities such 
     as--
       (1) energy storage system manufacturers and associated 
     suppliers;
       (2) electric drive vehicle manufacturers;
       (3) rural electric cooperatives;
       (4) investor-owned utilities;
       (5) municipal and rural electric utilities;
       (6) State and local governments;
       (7) metropolitan transportation authorities; and
       (8) institutions of higher education.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as are 
     necessary to carry out this section.

   Subtitle F--Advanced Technology Vehicles Manufacturing Incentive 
                                Program

     SEC. 346. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING 
                   INCENTIVE PROGRAM.

       Section 136 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17013) is amended--
       (1) in subsection (d)(1), by striking ``and subject to the 
     availability of appropriated funds,''; and
       (2) by striking subsection (i) and inserting the following:
       ``(i) Funding.--
       ``(1) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section (other 
     than subsection (d)) for each of fiscal years 2008 through 
     2013.
       ``(2) Direct loan program.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, on October 1, 2008, and on each October 1 thereafter 
     through October 1, 2012, out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary for the cost of loans to carry out 
     subsection (d) $200,000,000, to remain available until 
     expended.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     subsection (d) the funds transferred under subparagraph (A), 
     without further appropriation.''.

[[Page S7343]]

                     Subtitle G--Advanced Batteries

     SEC. 351. DEFINITION OF ADVANCED BATTERY.

       In this subtitle, the term ``advanced battery'' means an 
     electrical storage device that is suitable for a vehicle 
     application.

     SEC. 352. ADVANCED BATTERY RESEARCH AND DEVELOPMENT.

       (a) In General.--The Secretary of Energy shall--
       (1) expand and accelerate research and development efforts 
     for advanced batteries; and
       (2) emphasize lower cost means of producing abuse-tolerant 
     advanced batteries with the appropriate balance of power and 
     energy capacity to meet market requirements.
       (b) Authorization of Appropriations.--Section 641(p) of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 
     17231(p)) is amended--
       (1) in paragraph (1), by striking ``$50,000,000'' and 
     inserting ``$100,000,000'';
       (2) in paragraph (2), by striking ``$80,000,000'' and 
     inserting ``$160,000,000'';
       (3) in paragraph (3), by striking ``$100,000,000'' and 
     inserting ``$200,000,000'';
       (4) in paragraph (4), by striking ``$30,000,000'' and 
     inserting ``$60,000,000''; and
       (5) in paragraph (5), by striking ``$30,000,000'' and 
     inserting ``$60,000,000''.

     SEC. 353. ADVANCED BATTERY MANUFACTURING AND TECHNOLOGY 
                   ROADMAP.

       (a) Roadmap Required.--The Director of the Office of 
     Science and Technology Policy shall (in coordination with the 
     Secretary of Energy, the Secretary of Defense, the Secretary 
     of Commerce, and heads of other appropriate Federal agencies) 
     develop a multiyear roadmap to develop advanced battery 
     technologies and sustain domestic advanced battery 
     manufacturing capabilities and an assured supply chain 
     necessary to ensure that the United States has assured access 
     to advanced battery technologies to support current and 
     emerging energy security and defense needs.
       (b) Elements.--The roadmap required by subsection (a) shall 
     include--
       (1) an identification of current and future capability 
     gaps, performance enhancements, cost savings goals, and 
     assured technology access goals that require advances in 
     battery technology and manufacturing capabilities;
       (2) specific research, technology, and manufacturing goals 
     and milestones, and timelines and estimates of funding 
     necessary for achieving the goals and milestones;
       (3) specific mechanisms for coordinating the activities of 
     Federal agencies, State and local governments, coalition 
     partners, private industry, and academia covered by the 
     roadmap; and
       (4) such other matters as are considered to be appropriate 
     for purposes of the roadmap.
       (c) Coordination.--
       (1) In general.--The roadmap required by subsection (a) 
     shall be developed in coordination with--
       (A) all appropriate agencies and organizations within the 
     Department of Defense;
       (B) other appropriate Federal agencies;
       (C) Federal, State, and local governmental organizations; 
     and
       (D) representatives of private industry and academia.
       (2) Office of science and technology policy.--The Director 
     of the Office of Science and Technology Policy shall ensure 
     that appropriate elements and organizations of the Office of 
     Science and Technology Policy provide such information and 
     other support as are required for the development of the 
     roadmap.
       (d) Submission to Congress.--Not later than 1 year after 
     the date of enactment of this Act, the Director of the Office 
     of Science and Technology Policy shall submit to the 
     appropriate committees of Congress the roadmap required by 
     subsection (a).

     SEC. 354. SENSE OF 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.

     Subtitle H--National Energy-Efficient Driver Education Program

     SEC. 361. NATIONAL ENERGY-EFFICIENT DRIVER EDUCATION PROGRAM.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary of Transportation shall develop and 
     actively promote educational materials providing information 
     that can be incorporated into driver education programs 
     regarding driving and vehicle maintenance practices that 
     optimize vehicle fuel economy.

        Subtitle I--Oil and Gas Reserves Reporting Requirements

     SEC. 366. OIL AND GAS RESERVES REPORTING REQUIREMENTS.

       It is the sense of the Senate that the Securities and 
     Exchange Commission should accelerate the rulemaking process 
     being undertaken to modernize and increase transparency in 
     oil and gas reserves reporting requirements.

            Subtitle J--Tire Efficiency Consumer Information

     SEC. 371. CONSUMER TIRE INFORMATION.

       Section 32304A(a)(1) of title 49, United States Code, is 
     amended by striking ``24 months'' and inserting ``15 
     months''.

       Subtitle K--Petroleum Use Reduction Technology Deployment

     SEC. 376. PETROLEUM USE REDUCTION TECHNOLOGY DEPLOYMENT 
                   GRANTS.

       (a) In General.--The Secretary of Energy shall establish a 
     competitive grant program, to be administered through the 
     Vehicle Technology Deployment Program of the Department of 
     Energy, to provide grants to local Clean Cities coalitions 
     and stakeholders, industry partners, fuel providers, and end 
     users to promote the adoption and use of petroleum use 
     reduction technologies and practices.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 2009 through 2013.

              Subtitle L--Energy Efficient Building Codes

     SEC. 381. ENERGY EFFICIENT BUILDING CODES.

       (a) Updating National Model Building Energy Codes and 
     Standards.--
       (1) Updating.--
       (A) In general.--The Secretary of Energy (referred to in 
     this section as the ``Secretary'') shall facilitate the 
     updating of national model building energy codes and 
     standards at least every 3 years to achieve overall energy 
     savings, compared to the 2006 International Energy 
     Conservation Code (referred to in this section as the 
     ``IECC'') for residential buildings and ASHRAE/IES Standard 
     90.1 (2004) for commercial buildings, of at least--
       (i) 30 percent by 2015; and
       (ii) 50 percent by 2022.
       (B) Modification of goal.--If the Secretary determines that 
     the goal referred to in subparagraph (A)(ii) cannot be 
     achieved using existing technology, or would not be lifecycle 
     cost effective, the Secretary shall establish, after 
     providing notice and an opportunity for public comment, a 
     revised goal that ensures the maximum level of energy 
     efficiency that is technologically feasible and lifecycle 
     cost effective.
       (2) Revision of codes and standards.--
       (A) In general.--If the IECC or ASHRAE/IES Standard 90.1 
     regarding building energy use is revised, not later than 1 
     year after the date of the revision, the Secretary shall 
     determine whether the revision will--
       (i) improve energy efficiency in buildings; and
       (ii) meets the targets established under paragraph (1).
       (B) Revision by secretary.--
       (i) In general.--If the Secretary makes a determination 
     under subparagraph (A)(ii) that a code or standard does not 
     meet the targets established under paragraph (1), or if a 
     national model code or standard is not updated for more than 
     3 years, not later than 2 years after the determination or 
     the expiration of the 3-year period, the Secretary shall 
     amend the IECC or ASHRAE/IES Standard 90.1 (as in effect on 
     the date on which the determination is made) to establish a 
     modified code or standard that meets the targets established 
     under paragraph (1).
       (ii) Baseline.--The modified code or standard shall serve 
     as the baseline for the next determination under subparagraph 
     (A)(i).
       (C) Notice and comment.--The Secretary shall--
       (i) publish in the Federal Register notice of targets, 
     determinations, and modified codes and standards under this 
     subsection; and
       (ii) provide the opportunity for public comment on targets, 
     determinations, and modified codes and standards under this 
     subsection.
       (b) State Certification of Building Energy Code Updates.--
       (1) State certification.--
       (A) In general.--Not later than 2 years after the date of 
     enactment of this Act, each State shall certify to the 
     Secretary that the State has reviewed and updated the 
     residential and commercial building code of the State 
     regarding energy efficiency.
       (B) Energy savings.--The certification shall include a 
     demonstration that the code of the State--
       (i) meets or exceeds the 2006 IECC for residential 
     buildings and the ASHRAE/IES Standard 90.1-2004 for 
     commercial buildings; or
       (ii) achieves equivalent or greater energy savings.
       (2) Revision of codes and standards.--
       (A) In general.--If the Secretary makes an affirmative 
     determination under subsection (a)(2)(A)(i) or establishes a 
     modified code or standard under subsection (a)(2)(B), not 
     later than 2 years after the determination or proposal, each 
     State shall certify that the State has reviewed and updated 
     the building code of the State regarding energy efficiency.
       (B) Energy savings.--The certification shall include a 
     demonstration that the code of the State--
       (i) meets or exceeds the revised code or standard; or
       (ii) achieves equivalent or greater energy savings.
       (C) Review and updating by states.--If the Secretary fails 
     to make a determination under subsection (a)(2)(A)(i) by the 
     date specified in subsection (a)(2) or makes a negative 
     determination under subsection (a)(2)(A), not later 3 years 
     after the specified date or the date of the determination, 
     each State shall certify that the State has--
       (i) reviewed the revised code or standard; and
       (ii) updated the building code of the State regarding 
     energy efficiency to--

       (I) meet or exceed any provisions found to improve energy 
     efficiency in buildings; or
       (II) achieve equivalent or greater energy savings in other 
     ways.

[[Page S7344]]

       (c) State Certification of Compliance With Building 
     Codes.--
       (1) In general.--Not later than 3 years after a 
     certification of a State under subsection (b), the State 
     shall certify that the State has achieved compliance with the 
     certified building energy code.
       (2) Rate of compliance.--The certification shall include 
     documentation of the rate of compliance based on independent 
     inspections of a random sample of the new and renovated 
     buildings covered by the code during the preceding year.
       (3) Compliance.--A State shall be considered to achieve 
     compliance with the certified building energy code under 
     paragraph (1) if--
       (A) at least 90 percent of new and renovated buildings 
     covered by the code during the preceding year substantially 
     meet all the requirements of the code; or
       (B) the estimated excess energy use of new and renovated 
     buildings that did not meet the code during the preceding 
     year, compared to a baseline of comparable buildings that 
     meet the code, is not more than 10 percent of the estimated 
     energy use of all new and renovated buildings covered by the 
     code during the preceding year.
       (d) Failure To Meet Deadlines.--
       (1) Reports.--A State that has not made a certification 
     required under subsection (b) or (c) by the applicable 
     deadline shall submit to the Secretary a report on--
       (A) the status of the State with respect to completing and 
     submitting the certification; and
       (B) a plan of the State for completing and submitting the 
     certification.
       (2) Extensions.--The Secretary shall permit an extension of 
     an applicable deadline for a certification requirement under 
     subsection (b) or (c) for not more than 1 year if a State 
     demonstrates in the report of the State under paragraph (1) 
     that the State has made--
       (A) a good faith effort to comply with the requirements; 
     and
       (B) significant progress in complying with the 
     requirements, including by developing and implementing a plan 
     to achieve that compliance.
       (3) Noncompliance by state.--Any State for which the 
     Secretary has not accepted a certification by a deadline 
     established under subsection (b) or (c), with any extension 
     granted under paragraph (2), shall be considered not in 
     compliance with this section.
       (4) Compliance by local governments.--In any State that is 
     not in compliance with this section, a local government of 
     the State may comply with this section by meeting the 
     certification requirements under subsections (b) and (c).
       (5) Annual compliance reports.--
       (A) In general.--The Secretary shall annually submit to 
     Congress a report that contains, and publish in the Federal 
     Register, a list of--
       (i) each State (including local governments in a State, as 
     applicable) that is in compliance with the requirements of 
     this section; and
       (ii) each State that is not in compliance with those 
     requirements.
       (B) Inclusion.--For each State included on a list described 
     in subparagraph (A)(ii), the Secretary shall include an 
     estimate of--
       (i) the increased energy use by buildings in that State due 
     to the failure of the State to comply with this section; and
       (ii) the resulting increase in energy costs to individuals 
     and businesses.
       (e) Technical Assistance.--
       (1) In general.--The Secretary shall provide technical 
     assistance (including building energy analysis and design 
     tools, building demonstrations, and design assistance and 
     training) to enable the national model building energy codes 
     and standards to meet the targets established under 
     subsection (a)(1).
       (2) Assistance to states.--The Secretary shall provide 
     technical assistance to States to--
       (A) implement this section, including procedures for States 
     to demonstrate that the codes of the States achieve 
     equivalent or greater energy savings than the national model 
     codes and standards;
       (B) improve and implement State residential and commercial 
     building energy efficiency codes; and
       (C) otherwise promote the design and construction of energy 
     efficient buildings.
       (f) Availability of Incentive Funding.--
       (1) In general.--The Secretary shall provide incentive 
     funding to States to--
       (A) implement this section; and
       (B) improve and implement State residential and commercial 
     building energy efficiency codes, including increasing and 
     verifying compliance with the codes.
       (2) Factors.--In determining whether, and in what amount, 
     to provide incentive funding under this subsection, the 
     Secretary shall consider the actions proposed by the State 
     to--
       (A) implement this section;
       (B) improve and implement residential and commercial 
     building energy efficiency codes; and
       (C) promote building energy efficiency through the use of 
     the codes.
       (3) Additional funding.--The Secretary shall provide 
     additional funding under this subsection for implementation 
     of a plan to achieve and document at least a 90 percent rate 
     of compliance with residential and commercial building energy 
     efficiency codes, based on energy performance--
       (A) to a State that has adopted and is implementing, on a 
     statewide basis--
       (i) a residential building energy efficiency code that 
     meets or exceeds the requirements of the 2006 IECC, or any 
     succeeding version of that code that has received an 
     affirmative determination from the Secretary under subsection 
     (a)(2)(A)(i); and
       (ii) a commercial building energy efficiency code that 
     meets or exceeds the requirements of the ASHRAE/IES Standard 
     90.1-2004, or any succeeding version of that standard that 
     has received an affirmative determination from the Secretary 
     under subsection (a)(2)(A)(i); or
       (B) in a State in which there is no statewide energy code 
     either for residential buildings or for commercial buildings, 
     to a local government that has adopted and is implementing 
     residential and commercial building energy efficiency codes, 
     as described in subparagraph (A).
       (4) Training.--Of the amounts made available under this 
     subsection, the Secretary may use to train State and local 
     officials to implement codes described in paragraph (3) at 
     least $500,000 for each fiscal year.
       (5) Authorization of appropriations.--
       (A) In general.--There are authorized to be appropriated to 
     carry out this subsection--
       (i) $25,000,000 for each of fiscal years 2006 through 2010; 
     and
       (ii) such sums as are necessary for fiscal year 2011 and 
     each fiscal year thereafter.
       (B) Limitation.--Funding provided to States under paragraph 
     (3) for each fiscal year shall not exceed \1/2\ of the excess 
     of funding under this subsection over $5,000,000 for the 
     fiscal year.
       (g) Technical Correction.--Section 303 of the Energy 
     Conservation and Production Act (42 U.S.C. 6832) is amended 
     by adding at the end the following:
       ``(17) IECC.--The term `IECC' means the International 
     Energy Conservation Code.''.

           Subtitle M--Renewable Energy Pilot Project Offices

     SEC. 386. PILOT PROJECT OFFICE TO IMPROVE FEDERAL PERMIT 
                   COORDINATION FOR RENEWABLE ENERGY.

       (a) In General.--Section 365 of the Energy Policy Act of 
     2005 (42 U.S.C. 15924) is amended by adding at the end the 
     following:
       ``(k) Pilot Project Office To Improve Federal Permit 
     Coordination for Renewable Energy.--
       ``(1) Definition of renewable energy.--In this subsection, 
     the term `renewable energy' means energy derived from a wind 
     or solar source.
       ``(2) Field offices.--As part of the Pilot Project, the 
     Secretary shall designate 1 field office of the Bureau of 
     Land Management in each of the following States to serve as 
     Renewable Energy Pilot Project Offices for coordination of 
     Federal permits for renewable energy projects on Federal 
     land:
       ``(A) Arizona.
       ``(B) California.
       ``(C) New Mexico.
       ``(D) Nevada.
       ``(E) Montana.
       ``(3) Memorandum of understanding.--
       ``(A) In general.--Not later than 90 days after the date of 
     enactment of this subsection, the Secretary shall enter into 
     an amended memorandum of understanding under subsection (b) 
     to provide for the inclusion of the additional Renewable 
     Energy Pilot Project Offices in the Pilot Project.
       ``(B) Signatures by governors.--The Secretary may request 
     that the Governors of each of the States described in 
     paragraph (2) be signatories to the amended memorandum of 
     understanding.
       ``(4) Designation of qualified staff.--Not later than 30 
     days after the date of the signing of the amended memorandum 
     of understanding, all Federal signatory parties shall, if 
     appropriate, assign to each Renewable Energy Pilot Project 
     Offices designated under paragraph (2) an employee described 
     in subsection (c) to carry out duties described in that 
     subsection.
       ``(5) Additional personnel.--The Secretary shall assign to 
     each Renewable Energy Pilot Project Office additional 
     personnel under subsection (f).''.
       (b) Permit Processing Improvement Fund.--Section 35(c)(3) 
     of the Mineral Leasing Act (30 U.S.C. 191(c)(3)) is amended--
       (1) by striking ``use authorizations'' and inserting ``and 
     renewable energy use authorizations''; and
       (2) by striking ``section 365(d)'' and inserting 
     ``subsections (d) and (k)(2) of section 365''.

                  TITLE IV--ROYALTY MANAGEMENT REFORMS

            Subtitle A--Repeal of Deep Water Royalty Relief

     SEC. 401. REPEAL OF DEEP WATER ROYALTY RELIEF.

       Sections 344 and 345 of the Energy Policy Act of 2005 (42 
     U.S.C. 15904, 15905) are repealed.

                      Subtitle B--Royalty Reforms

     SEC. 411. DEFINITIONS.

       Section 3 of the Federal Oil and Gas Royalty Management Act 
     of 1982 (30 U.S.C. 1702) is amended--
       (1) in paragraph (20)--
       (A) in subparagraph (A), by striking ``: Provided, That'' 
     and all that follows through ``subject of the judicial 
     proceeding''; and
       (B) in subparagraph (B), by striking ``(with written notice 
     to the lessee who designated the designee)'';
       (2) in paragraph (23)(A), by striking ``(with written 
     notice to the lessee who designated the designee)'' ;

[[Page S7345]]

       (3) by striking paragraph (24) and inserting the following:
       ``(24) `designee' means any person who pays, offsets, or 
     credits monies, makes adjustments, requests and receives 
     refunds, or submits reports with respect to payments a lessee 
     is required to make pursuant to section 102(a);'';
       (4) in paragraph (25)(B), by striking ``(subject to the 
     provisions of section 102(a) of this Act)''; and
       (5) in paragraph (26), by striking ``(with notice to the 
     lessee who designated the designee)''.

     SEC. 412. LIABILITY FOR ROYALTY PAYMENTS.

       Section 102 of the Federal Oil and Gas Royalty Management 
     Act of 1982 (30 U.S.C. 1712) is amended by striking 
     subsection (a) and inserting the following:
       ``(a) Liability for Royalty Payments.--
       ``(1) In general.--To increase receipts and achieve 
     effective collections of royalty and other payments, a lessee 
     who is required to make any royalty or other payment under a 
     lease or under the mineral leasing laws, shall make the 
     payments in the time and manner as may be specified by the 
     Secretary or the applicable delegated State.
       ``(2) Status as designee.--Any person who pays, offsets, or 
     credits funds, makes adjustments, requests and receives 
     refunds, or submits reports with respect to payments the 
     lessee is required to make shall be considered the designee 
     of the lessee under this Act.
       ``(3) Liability of designee.--Notwithstanding any other 
     provision of this Act, a designee shall be liable for any 
     payment obligation of any lessee on whose behalf the designee 
     pays royalty under the lease.
       ``(4) Owners of operating rights and title.--The person 
     owning operating rights in a lease and a person owning legal 
     record title in a lease shall be liable for the pro rata 
     share of the person of payment obligations under the 
     lease.''.

     SEC. 413. INTEREST.

       (a) Estimated Payments; Interest on Amount of 
     Underpayment.--Section 111(j) of the Federal Oil and Gas 
     Royalty Management Act of 1982 (30 U.S.C. 1721(j)) is amended 
     by striking ``If the estimated payment exceeds the actual 
     royalties due, interest is owed on the overpayment.''.
       (b) Overpayments.--Section 111 of the Federal Oil and Gas 
     Royalty Management Act of 1982 (30 U.S.C. 1721) is amended--
       (1) by striking subsections (h) and (i); and
       (2) by redesignating subsections (j), (k), and (l) as 
     subsections (h), (i), and (j), respectively.
       (c) Effective Date.--The amendments made by this section 
     take effect on the date that is 1 year after the date of 
     enactment of this Act.

     SEC. 414. OBLIGATION PERIOD.

       Section 115(c) of the Federal Oil and Gas Royalty 
     Management Act of 1982 (30 U.S.C. 1724(c)) is amended by 
     adding at the end the following:
       ``(3) Adjustments.--In the case of an adjustment under 
     section 111A(a) in which a recoupment by the lessee results 
     in an underpayment of an obligation, for purposes of this 
     Act, the obligation shall become due on the date the lessee 
     or a designee of the lessee makes the adjustment.''.

     SEC. 415. TOLLING AGREEMENTS AND SUBPOENAS.

       (a) Tolling Agreements.--Section 115(d)(1) of the Federal 
     Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 
     1724(d)(1)) is amended by striking ``(with notice to the 
     lessee who designated the designee)''.
       (b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and 
     Gas Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) 
     is amended by striking ``(with notice to the lessee who 
     designated the designee, which notice shall not constitute a 
     subpoena to the lessee)''.
                                 ______
                                 
  SA 5136. Mr. GREGG (for himself and Mr. Sununu) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                           TITLE II--WARM ACT

     SEC. 21. SHORT TITLE.

       This title may be cited as the ``Weatherization, 
     Assistance, and Relief for Middle-Income Households Act of 
     2008'' or the ``WARM Act of 2008''.

     SEC. 22. LOW-INCOME HOME ENERGY ASSISTANCE APPROPRIATIONS.

       In addition to any amounts appropriated under any other 
     provision of Federal law, there is appropriated, out of any 
     money in the Treasury not otherwise appropriated, for fiscal 
     year 2008--
       (1) $1,265,000,000 (to remain available until expended) for 
     making payments under subsections (a) through (d) of section 
     2604 of the Low-Income Home Energy Assistance Act of 1981 (42 
     U.S.C. 8623); and
       (2) $1,265,000,000 (to remain available until expended) for 
     making payments under section 2604(e) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8623(e)), 
     notwithstanding the designation requirement of section 
     2602(e) of such Act (42 U.S.C. 8621(e)).

     SEC. 23. WEATHERIZATION ASSISTANCE PROGRAM FOR LOW-INCOME 
                   PERSONS.

       In addition to any amounts appropriated under any other 
     provision of Federal law, there is appropriated, out of any 
     money in the Treasury not otherwise appropriated, for fiscal 
     year 2008 $523,000,000 to carry out the Weatherization 
     Assistance Program for Low-Income Persons established under 
     part A of title IV of the Energy Conservation and Production 
     Act (42 U.S.C. 6861 et seq.), to remain available until 
     expended.

     SEC. 24. CREDIT FOR HOME HEATING OIL EXPENDITURES.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     nonrefundable personal credits) is amended by inserting after 
     section 25D the following new section:

     ``SEC. 25E. HOME HEATING OIL EXPENDITURES.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to 50 
     percent of the qualified home heating oil expenditures made 
     by the taxpayer during such taxable year.
       ``(b) Limitations.--
       ``(1) Maximum credit.--The credit allowed under subsection 
     (a) for any taxable year shall not exceed $1,000 ($2,000 in 
     the case of a joint return).
       ``(2) Limitation based on adjusted gross income.--The 
     amount which would (but for this paragraph) be taken into 
     account under subsection (a) for the taxable year shall be 
     reduced (but not below zero) by 10 percent (20 percent in the 
     case of a joint return) of so much of the taxpayer's adjusted 
     gross income as exceeds $60,000 ($90,000 in the case of a 
     joint return).
       ``(c) Qualified Home Heating Oil Expenditures.--For 
     purposes of this section, the term `qualified home heating 
     oil expenditures' means any expenditures for the purchase of 
     heating oil that--
       ``(1) are made for the purpose of heating a dwelling unit 
     or heating water for use in a dwelling unit located in the 
     United States and used as a residence by the taxpayer, and
       ``(2) are made on or after June 1, 2008, and before January 
     1, 2009.''.
       (b) Conforming Amendments.--
       (1) Section 24(b)(3)(B) of the Internal Revenue Code of 
     1986 is amended by striking ``and 25B'' and inserting ``, 
     25B, and 25E''.
       (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
     inserting ``25E,'' after ``25D,''.
       (3) Section 25B(g)(2) of such Code is amended by striking 
     ``section 23'' and inserting ``sections 23 and 25E''.
       (4) Section 25D(c)(2) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (5) Section 26(a)(1) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (6) Section 904(i) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (7) Section 1400C(d)(2) of such Code is amended by striking 
     ``and 25D'' and inserting ``25D, and 25E''.
       (c) Clerical Amendment.--The table of sections for subpart 
     A of chapter 1 of the Internal Revenue Code of 1986 is 
     amended by inserting after the item relating to section 25D 
     the following new item:

``Sec. 25E. Home heating oil expenditures.''.

     SEC. 25. DENIAL OF DEDUCTION FOR MAJOR INTEGRATED OIL 
                   COMPANIES FOR INCOME ATTRIBUTABLE TO DOMESTIC 
                   PRODUCTION OF OIL, 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (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) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 26. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND 
                   GAS EXTRACTION INCOME.

       (a) In General.--Paragraph (1) of section 907(c) of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     subparagraph (B) as subparagraph (C), by striking ``or'' at 
     the end of subparagraph (A), and by inserting after 
     subparagraph (A) the following new subparagraph:
       ``(B) so much of any transportation of such minerals as 
     occurs before the fair market value event, or''.
       (b) Fair Market Value Event.--Subsection (c) of section 907 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new paragraph:
       ``(6) Fair market value event.--For purposes of this 
     section, the term `fair market value event' means, with 
     respect to any mineral, the first point in time at which such 
     mineral--
       ``(A) has a fair market value which can be determined on 
     the basis of a transfer, which

[[Page S7346]]

     is an arm's length transaction, of such mineral from the 
     taxpayer to a person who is not related (within the meaning 
     of section 482) to such taxpayer, or
       ``(B) is at a location at which the fair market value is 
     readily ascertainable by reason of transactions among 
     unrelated third parties with respect to the same mineral 
     (taking into account source, location, quality, and chemical 
     composition).''.
       (c) Special Rule for Certain Petroleum Taxes.--Subsection 
     (c) of section 907 of the Internal Revenue Code of 1986, as 
     amended by subsection (b), is amended by adding at the end 
     the following new paragraph:
       ``(7) Oil and gas taxes.--In the case of any tax imposed by 
     a foreign country which is limited in its application to 
     taxpayers engaged in oil or gas activities--
       ``(A) the term `oil and gas extraction taxes' shall include 
     such tax,
       ``(B) the term `foreign oil and gas extraction income' 
     shall include any taxable income which is taken into account 
     in determining such tax (or is directly attributable to the 
     activity to which such tax relates), and
       ``(C) the term `foreign oil related income' shall not 
     include any taxable income which is treated as foreign oil 
     and gas extraction income under subparagraph (B).''.
       (d) Conforming Amendments.--
       (1) Subparagraph (C) of section 907(c)(1) of the Internal 
     Revenue Code of 1986, as redesignated by this section, is 
     amended by inserting ``or used by the taxpayer in the 
     activity described in subparagraph (B)'' before the period at 
     the end.
       (2) Subparagraph (B) of section 907(c)(2) of such Code is 
     amended to read as follows:
       ``(B) so much of the transportation of such minerals or 
     primary products as is not taken into account under paragraph 
     (1)(B),''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 5137. Mr. COLEMAN (for himself, Mr. Domenici, Mrs. Hutchison, Mr. 
McConnell, Mr. Alexander, Mr. Allard, Mr. Bond, Mr. Brownback, Mr. 
Bunning, Mr. Burr, Mr. Cochran, Mr. Cornyn, Mr. Craig, Mr. Crapo, Mrs. 
Dole, Mr. Enzi, Mr. Graham, Mr. Inhofe, Mr. Isakson, Mr. Martinez, Mr. 
Roberts, Mr. Vitter, Mr. Voinovich, Mr. Wicker, and Mr. Sununu) 
submitted an amendment intended to be proposed by him to the bill S. 
3268, to amend the Commodity Exchange Act, to prevent excessive price 
speculation with respect to energy commodities, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. DEEP SEA EXPLORATION.

       (a) 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 Stop Excessive Energy 
     Speculation 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.
       ``(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.''.
       (b) 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:

[[Page S7347]]

       ``(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.''.
       (c) 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''.

     SEC. __. 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.--
       (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.
                                 ______
                                 
  SA 5138. Mr. BARRASSO (for himself, Mr. Bunning, and Mr. Enzi) 
submitted an amendment intended to be proposed by him to the bill S. 
3268, to amend the Commodity Exchange Act, to prevent excessive price 
speculation with respect to energy commodities, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROCUREMENT OF UNCONVENTIONAL FUEL BY DEPARTMENT OF 
                   DEFENSE.

       (a) Procurement Authorized.--Subchapter II of chapter 173 
     of title 10, United States Code, is amended by adding at the 
     end the following new section:

     ``SEC. 2922G. PROCUREMENT OF UNCONVENTIONAL FUEL.

       ``(a) Long Term Contracts for Unconventional Fuel.--The 
     Secretary of Defense may enter into contracts for the 
     procurement of unconventional fuel. The term of any contract 
     under this section may be such period as the Secretary 
     considers appropriate, but not more than 25 years.
       ``(b) Waiver Authority.--(1) In procuring unconventional 
     fuel, the Secretary may waive the application of any 
     provision of law prescribing procedures to be followed in the 
     formation of contracts, prescribing terms and conditions to 
     be included in contracts, or regulating the performance of 
     contracts if the Secretary determines that--
       ``(A) the waiver is necessary to procure such 
     unconventional fuel for Government needs; and
       ``(B) in the case of a contract for a term in excess of 
     five years, it would not be possible to procure such 
     unconventional fuel from the source in an economical manner 
     without the use of a contract for a period in excess of five 
     years.
       ``(2) Any waiver that is applicable to a contract for the 
     procurement of unconventional fuel under this subsection may 
     also, at the election of the Secretary, apply to a 
     subcontract under that contract.
       ``(c) Pricing Authority for Unconventional Fuel Purchased 
     From Domestic Sources.--(1) The Secretary shall ensure that 
     any purchase of unconventional fuel under a contract under 
     this section is cost effective for the Department of Defense.
       ``(2) The Secretary may procure unconventional fuel from 
     domestic sources at a price higher than comparable petroleum 
     products, or include a price guarantee for the procurement of 
     unconventional fuel from such sources, if the Secretary 
     determines that--
       ``(A) such price is necessary to develop or maintain an 
     assured supply of unconventional fuel produced from domestic 
     sources; and
       ``(B) supplies of unconventional fuel from domestic sources 
     cannot be effectively increased or obtained at lower prices.
       ``(d) Obligation of Funds.--At the time of award of any 
     contract for the procurement of unconventional fuel under 
     this section in excess of one year, the Secretary may 
     obligate annually funds sufficient to cover the annual costs 
     of the contract. In the event that funds are not available 
     for the continuation of the contract in any subsequent years, 
     the contract shall be cancelled or terminated. The Secretary 
     may fund any cancellation or termination liability out of 
     funds originally available at the time of award, funds 
     currently available at the time termination liability is 
     incurred, or funds specifically appropriated for those 
     payments.

[[Page S7348]]

       ``(e) Definitions.--In this section:
       ``(1) The term `domestic source' means a facility 
     (including feedstock) located physically in the United States 
     that produces or generates unconventional fuel.
       ``(2) The term `unconventional fuel' means transportation 
     fuel that is derived from a feedstock other than conventional 
     petroleum and includes transportation services related to the 
     delivery of such fuel.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of subchapter II of chapter 173 of such title is 
     amended by adding at the end the following new item:

``2922g. Procurement of unconventional fuel.''.

     SEC. __. REDUCTION OF GASOLINE CONSUMPTION BY FEDERAL 
                   AGENCIES.

       The President shall take such action as is necessary to 
     ensure, to the maximum extent practicable, that Federal 
     agencies (other than agencies of the Department of Defense), 
     individually and collectively, reduce consumption of gasoline 
     during fiscal year 2009 and each subsequent fiscal year by 
     not less than 2 percent from the level of gasoline consumed 
     by the Federal agencies during fiscal year 2007.
                                 ______
                                 
  SA 5139. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

                    TITLE II--ENERGY INFRASTRUCTURE

     SEC. 21. TAX-EXEMPT FINANCING OF ENERGY TRANSPORTATION 
                   INFRASTRUCTURE NOT SUBJECT TO PRIVATE BUSINESS 
                   USE TESTS.

       (a) In General.--Section 141(b)(6) of the Internal Revenue 
     Code of 1986 (defining private business use) is amended by 
     adding at the end the following new subparagraph:
       ``(C) Exception for certain energy transportation 
     infrastructure.--
       ``(i) In general.--For purposes of the 1st sentence of 
     subparagraph (A), the operation or use of any property 
     described in clause (ii) by any person which is not a 
     governmental unit shall not be considered a private business 
     use.
       ``(ii) Property described.--For purposes of clause (i), the 
     following property is described in this clause:

       ``(I) Any tangible property used to transmit electricity at 
     230 or more kilovolts if such property is placed in service 
     as part of a State or multi-State effort to improve 
     interstate electricity transmission and is physically located 
     in not less than 2 States.
       ``(II) Any tangible property used to transmit electricity 
     generated from renewable resources.
       ``(III) Any tangible property used as a transmission 
     pipeline for crude oil or diesel fuel produced from coal or 
     other synthetic petroleum products produced from coal if such 
     property is placed in service as part of a State or multi-
     State effort to improve the transportation of crude oil or 
     diesel fuel produced from coal or other synthetic petroleum 
     products produced from coal.
       ``(IV) Any tangible property used as a carbon dioxide 
     transmission pipeline if such property is placed in service 
     as part of a State or multi-State effort to improve 
     interstate or intrastate efforts to develop transportation 
     infrastructure for purposes of permanently sequestering 
     carbon dioxide.''.

       (b) Exception to Private Loan Financing Test.--Section 
     141(c)(2) of the Internal Revenue Code of 1986 (relating to 
     exception for tax assessment, etc., loans) is amended--
       (1) by striking ``or'' at the end of subparagraph (B),
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``, or'', and
       (3) by adding at the end the following new subparagraph:
       ``(D) enables the borrower to finance any property 
     described in subsection (b)(6)(C)(ii).''.
       (c) Reduction of State Volume Cap by Amount of Energy 
     Transportation Infrastructure Financing.--Section 146 of the 
     Internal Revenue Code of 1986 (relating to volume cap) is 
     amended by adding at the end the following new subsection:
       ``(o) Reduction for Energy Transportation Infrastructure 
     Financing.--The volume cap of any issuing authority for any 
     calendar year shall be reduced by the amount of bonds issued 
     as part of an issue by such authority to provide for property 
     described in section 141(b)(6)(C)(ii).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act and before December 31, 2015.

     SEC. 22. LIMITATION ON DISCRIMINATORY TAXATION OF CERTAIN 
                   PIPELINE PROPERTY.

       (a) Definitions.--For purposes of section:
       (1) Assessment.--The term ``assessment'' means valuation 
     for a property tax levied by a taxing authority.
       (2) Assessment jurisdiction.--The term ``assessment 
     jurisdiction'' means a geographical area used in determining 
     the assessed value of property for ad valorem taxation.
       (3) Commercial and industrial property.--The term 
     ``commercial and industrial property'' means property 
     (excluding pipeline property, public utility property, and 
     land used primarily for agricultural purposes or timber 
     growth) devoted to commercial or industrial use and subject 
     to a property tax levy.
       (4) Pipeline property.--The term ``pipeline property'' 
     means all property, real, personal, and intangible, owned or 
     used by a natural gas pipeline providing transportation or 
     storage of natural gas, subject to the jurisdiction of the 
     Federal Energy Regulatory Commission.
       (5) Public utility property.--The term ``public utility 
     property'' means property (excluding pipeline property) that 
     is devoted to public service and is owned or used by any 
     entity that performs a public service and is regulated by any 
     governmental agency.
       (b) Discriminatory Acts.--The acts specified in this 
     subsection unreasonably burden and discriminate against 
     interstate commerce. A State, subdivision of a State, 
     authority acting for a State or subdivision of a State, or 
     any other taxing authority (including a taxing jurisdiction 
     and a taxing district) may not do any of the following such 
     acts:
       (1) Assess pipeline property at a value that has a higher 
     ratio to the true market value of the pipeline property than 
     the ratio that the assessed value of other commercial and 
     industrial property in the same assessment jurisdiction has 
     to the true market value of the other commercial and 
     industrial property.
       (2) Levy or collect a tax on an assessment that may not be 
     made under paragraph (1).
       (3) Levy or collect an ad valorem property tax on pipeline 
     property at a tax rate that exceeds the tax rate applicable 
     to commercial and industrial property in the same assessment 
     jurisdiction.
       (4) Impose any other tax that discriminates against a 
     pipeline providing transportation subject to the jurisdiction 
     of the Federal Energy Regulatory Commission.
       (c) Jurisdiction of Courts; Relief.--
       (1) Grant of jurisdiction.--Notwithstanding section 1341 of 
     title 28, United States Code, and notions of comity, and 
     without regard to the amount in controversy or citizenship of 
     the parties, the district courts of the United States shall 
     have jurisdiction, concurrent with other jurisdiction of the 
     courts of the United States, of States, and of all other 
     taxing authorities and taxing jurisdictions, to prevent a 
     violation of subsection (b).
       (2) Relief.--Except as otherwise provided in this 
     paragraph, relief may be granted under this Act only if the 
     ratio of assessed value to true market value of pipeline 
     property exceeds by at least 5 percent the ratio of assessed 
     value to true market value of other commercial and industrial 
     property in the same assessment jurisdiction. If the ratio of 
     the assessed value of other commercial and industrial 
     property in the assessment jurisdiction to the true market 
     value of all other commercial and industrial property cannot 
     be determined to the satisfaction of the court through the 
     random-sampling method known as a sales assessment ratio 
     study (to be carried out under statistical principles 
     applicable to such a study), each of the following shall be a 
     violation of subsection (b) for which relief under this 
     section may be granted:
       (A) An assessment of the pipeline property at a value that 
     has a higher ratio of assessed value to the true market value 
     of the pipeline property than the ratio of the assessed value 
     of all other property (excluding public utility property) 
     subject to a property tax levy in the assessment jurisdiction 
     has to the true market value of all other property (excluding 
     public utility property).
       (B) The collection of an ad valorem property tax on the 
     pipeline property at a tax rate that exceeds the tax rate 
     applicable to all other taxable property (excluding public 
     utility property) in the taxing jurisdiction.

     SEC. 23. NATURAL GAS PIPELINE INTEGRITY REASSESSMENT 
                   INTERVALS BASED ON RISK.

       (a) In General.--Section 60109(c)(3)(B) of title 49, United 
     States Code, is amended by inserting ``, until the Secretary 
     issues regulations basing the reassessment intervals on 
     technical data, risk factors, and engineering analysis, 
     consistent with the recommendations of the Comptroller 
     General of the United States in Report 06-945'' after 
     ``subparagraph (A)''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 5140. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

             TITLE II--NEW AND REAUTHORIZED PRODUCING AREAS

       Subtitle A--Leasing Program for Land Within Coastal Plain

     SEC. 201. DEFINITIONS.

       In this subtitle:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as the ``1002 Coastal Plain Area'' on the 
     map.
       (2) Federal agreement.--The term ``Federal Agreement'' 
     means the Federal Agreement and Grant Right-of-Way for the 
     Trans-Alaska Pipeline issued on January 23, 1974, in 
     accordance with section 28 of the Mineral Leasing Act (30 
     U.S.C. 185) and the Trans-

[[Page S7349]]

     Alaska Pipeline Authorization Act (43 U.S.C. 1651 et seq.).
       (3) Final statement.--The term ``Final Statement'' means 
     the final legislative environmental impact statement on the 
     Coastal Plain, dated April 1987, and prepared pursuant to 
     section 1002 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3142) and section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).
       (4) Map.--The term ``map'' means the map entitled ``Arctic 
     National Wildlife Refuge'', dated September 2005, and 
     prepared by the United States Geological Survey.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior (or the designee of the Secretary), acting 
     through the Director of the Bureau of Land Management in 
     consultation with the Director of the United States Fish and 
     Wildlife Service and in coordination with a State coordinator 
     appointed by the Governor of the State of Alaska.

     SEC. 202. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

       (a) In General.--
       (1) Authorization.--Congress authorizes the exploration, 
     leasing, development, production, and economically feasible 
     and prudent transportation of oil and gas in and from the 
     Coastal Plain.
       (2) Actions.--The Secretary shall take such actions as are 
     necessary--
       (A) to establish and implement, in accordance with this 
     subtitle, a competitive oil and gas leasing program that will 
     result in an environmentally sound program for the 
     exploration, development, and production of the oil and gas 
     resources of the Coastal Plain while taking into 
     consideration the interests and concerns of residents of the 
     Coastal Plain, which is the homeland of the Kaktovikmiut 
     Inupiat; and
       (B) to administer this subtitle through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (i) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, subsistence resources, and the environment; and
       (ii) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production to all exploration, development, 
     and production operations under this subtitle in a manner 
     that ensures the receipt of fair market value by the public 
     for the mineral resources to be leased.
       (b) Repeal.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents contained 
     in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
     striking the item relating to section 1003.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
     seq.)--
       (A) the oil and gas pre-leasing and leasing program, and 
     activities authorized by this section in the Coastal Plain, 
     shall be considered to be compatible with the purposes for 
     which the Arctic National Wildlife Refuge was established; 
     and
       (B) no further findings or decisions shall be required to 
     implement that program and those activities.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The Final 
     Statement shall be considered to satisfy the requirements 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) that apply with respect to pre-leasing 
     activities, including exploration programs and actions 
     authorized to be taken by the Secretary to develop and 
     promulgate the regulations for the establishment of a leasing 
     program authorized by this subtitle before the conduct of the 
     first lease sale.
       (3) Compliance with nepa for other actions.--
       (A) In general.--Before conducting the first lease sale 
     under this subtitle, the Secretary shall prepare an 
     environmental impact statement in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with respect to the actions authorized by this subtitle 
     that are not referred to in paragraph (2).
       (B) Identification and analysis.--Notwithstanding any other 
     provision of law, in carrying out this paragraph, the 
     Secretary shall not be required--
       (i) to identify nonleasing alternative courses of action; 
     or
       (ii) to analyze the environmental effects of those courses 
     of action.
       (C) Identification of preferred action.--Not later than 18 
     months after the date of enactment of this Act, the Secretary 
     shall--
       (i) identify only a preferred action and a single leasing 
     alternative for the first lease sale authorized under this 
     subtitle; and
       (ii) analyze the environmental effects and potential 
     mitigation measures for those 2 alternatives.
       (D) Public comments.--In carrying out this paragraph, the 
     Secretary shall consider only public comments that are filed 
     not later than 20 days after the date of publication of a 
     draft environmental impact statement.
       (E) Effect of compliance.--Notwithstanding any other 
     provision of law, compliance with this paragraph shall be 
     considered to satisfy all requirements for the analysis and 
     consideration of the environmental effects of proposed 
     leasing under this subtitle.
       (d) Relationship to State and Local Authority.--Nothing in 
     this subtitle expands or limits any State or local regulatory 
     authority.
       (e) Special Areas.--
       (1) Designation.--
       (A) In general.--The Secretary, after consultation with the 
     State of Alaska, the North Slope Borough, Alaska, and the 
     City of Kaktovik, Alaska, may designate not more than 45,000 
     acres of the Coastal Plain as a special area if the Secretary 
     determines that the special area would be of such unique 
     character and interest as to require special management and 
     regulatory protection.
       (B) Sadlerochit spring area.--The Secretary shall designate 
     as a special area in accordance with subparagraph (A) the 
     Sadlerochit Spring area, comprising approximately 4,000 acres 
     as depicted on the map.
       (2) Management.--The Secretary shall manage each special 
     area designated under this subsection in a manner that--
       (A) respects and protects the Native people of the area; 
     and
       (B) preserves the unique and diverse character of the area, 
     including fish, wildlife, subsistence resources, and cultural 
     values of the area.
       (3) Exclusion from leasing or surface occupancy.--
       (A) In general.--The Secretary may exclude any special area 
     designated under this subsection from leasing.
       (B) No surface occupancy.--If the Secretary leases all or a 
     portion of a special area for the purposes of oil and gas 
     exploration, development, production, and related activities, 
     there shall be no surface occupancy of the land comprising 
     the special area.
       (4) Directional drilling.--Notwithstanding any other 
     provision of this subsection, the Secretary may lease all or 
     a portion of a special area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the special area.
       (f) Limitation on Closed Areas.--The Secretary may not 
     close land within the Coastal Plain to oil and gas leasing or 
     to exploration, development, or production except in 
     accordance with this subtitle.
       (g) Regulations.--
       (1) In general.--Not later than 15 months after the date of 
     enactment of this Act, in consultation with appropriate 
     agencies of the State of Alaska, the North Slope Borough, 
     Alaska, and the City of Kaktovik, Alaska, the Secretary shall 
     issue such regulations as are necessary to carry out this 
     subtitle, including rules and regulations relating to 
     protection of the fish and wildlife, fish and wildlife 
     habitat, and subsistence resources of the Coastal Plain.
       (2) Revision of regulations.--The Secretary may 
     periodically review and, as appropriate, revise the rules and 
     regulations issued under paragraph (1) to reflect any 
     significant scientific or engineering data that come to the 
     attention of the Secretary.

     SEC. 203. LEASE SALES.

       (a) In General.--Land may be leased pursuant to this 
     subtitle to any person qualified to obtain a lease for 
     deposits of oil and gas under the Mineral Leasing Act (30 
     U.S.C. 181 et seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after that nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this 
     subtitle shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--For the first lease 
     sale under this subtitle, the Secretary shall offer for lease 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons, taking into 
     consideration nominations received pursuant to subsection 
     (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) not later than 22 months after the date of enactment of 
     this Act, conduct the first lease sale under this subtitle;
       (2) not later than September 30, 2012, conduct a second 
     lease sale under this subtitle; and
       (3) conduct additional sales at appropriate intervals if 
     sufficient interest in exploration or development exists to 
     warrant the conduct of the additional sales.

     SEC. 204. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--Upon payment by a lessee of such bonus as 
     may be accepted by the Secretary, the Secretary may grant to 
     the highest responsible qualified bidder in a lease sale 
     conducted pursuant to section 203 a lease for any land on the 
     Coastal Plain.
       (b) Subsequent Transfers.--
       (1) In general.--No lease issued under this subtitle may be 
     sold, exchanged, assigned, sublet, or otherwise transferred 
     except with the approval of the Secretary.
       (2) Condition for approval.--Before granting any approval 
     described in paragraph (1), the Secretary shall consult with 
     and give due consideration to the opinion of the Attorney 
     General.

[[Page S7350]]

     SEC. 205. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this subtitle shall--
       (1) provide for the payment of a royalty of not less than 
     16\1/2\ percent of the amount or value of the production 
     removed or sold from the lease, as determined by the 
     Secretary in accordance with regulations applicable to other 
     Federal oil and gas leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, such portions of the Coastal Plain to exploratory 
     drilling activities as are necessary to protect caribou 
     calving areas and other species of fish and wildlife;
       (3) require that each lessee of land within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of land within the Coastal Plain and any other 
     Federal land that is adversely affected in connection with 
     exploration, development, production, or transportation 
     activities within the Coastal Plain conducted by the lessee 
     or by any of the subcontractors or agents of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, that reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for land 
     required to be reclaimed under this subtitle shall be, to the 
     maximum extent practicable--
       (A) a condition capable of supporting the uses that the 
     land was capable of supporting prior to any exploration, 
     development, or production activities; or
       (B) upon application by the lessee, to a higher or better 
     standard, as approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, fish and wildlife habitat, subsistence 
     resources, and the environment as required under section 
     202(a)(2);
       (7) provide that each lessee, and each agent and contractor 
     of a lessee, use their best efforts to provide a fair share 
     of employment and contracting for Alaska Natives and Alaska 
     Native Corporations from throughout the State of Alaska, as 
     determined by the level of obligation previously agreed to in 
     the Federal Agreement; and
       (8) contain such other provisions as the Secretary 
     determines to be necessary to ensure compliance with this 
     subtitle and regulations issued under this subtitle.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this subtitle, and in 
     recognizing the proprietary interest of the Federal 
     Government in labor stability and in the ability of 
     construction labor and management to meet the particular 
     needs and conditions of projects to be developed under the 
     leases issued pursuant to this subtitle (including the 
     special concerns of the parties to those leases), shall 
     require that each lessee, and each agent and contractor of a 
     lessee, under this subtitle negotiate to obtain a project 
     labor agreement for the employment of laborers and mechanics 
     on production, maintenance, and construction under the lease.

     SEC. 206. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard To Govern 
     Authorized Coastal Plain Activities.--In accordance with 
     section 202, the Secretary shall administer this subtitle 
     through regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, or other provisions that--
       (1) ensure, to the maximum extent practicable, that oil and 
     gas exploration, development, and production activities on 
     the Coastal Plain will result in no significant adverse 
     effect on fish and wildlife, fish and wildlife habitat, and 
     the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum surface acreage covered in 
     connection with the leasing program by production and support 
     facilities, including airstrips and any areas covered by 
     gravel berms or piers for support of pipelines, does not 
     exceed 2,000 acres on the Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall require, with respect to any proposed drilling and 
     related activities on the Coastal Plain, that--
       (1) a site-specific environmental analysis be made of the 
     probable effects, if any, that the drilling or related 
     activities will have on fish and wildlife, fish and wildlife 
     habitat, subsistence resources, subsistence uses, and the 
     environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the maximum extent practicable) any 
     significant adverse effect identified under paragraph (1); 
     and
       (3) the development of the plan occur after consultation 
     with--
       (A) each agency having jurisdiction over matters mitigated 
     by the plan;
       (B) the State of Alaska;
       (C) North Slope Borough, Alaska; and
       (D) the City of Kaktovik, Alaska.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this subtitle, 
     the Secretary shall prepare and issue regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     or other measures designed to ensure, to the maximum extent 
     practicable, that the activities carried out on the Coastal 
     Plain under this subtitle are conducted in a manner 
     consistent with the purposes and environmental requirements 
     of this subtitle.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this subtitle 
     shall require--
       (1) compliance with all applicable provisions of Federal 
     and State environmental law (including regulations);
       (2) implementation of and compliance with--
       (A) standards that are at least as effective as the safety 
     and environmental mitigation measures, as described in items 
     1 through 29 on pages 167 through 169 of the Final Statement, 
     on the Coastal Plain;
       (B) seasonal limitations on exploration, development, and 
     related activities, as necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration;
       (C) design safety and construction standards for all 
     pipelines and any access and service roads that minimize, to 
     the maximum extent practicable, adverse effects on--
       (i) the passage of migratory species (such as caribou); and
       (ii) the flow of surface water by requiring the use of 
     culverts, bridges, or other structural devices;
       (D) prohibitions on general public access to, and use of, 
     all pipeline access and service roads;
       (E) stringent reclamation and rehabilitation requirements 
     in accordance with this subtitle for the removal from the 
     Coastal Plain of all oil and gas development and production 
     facilities, structures, and equipment on completion of oil 
     and gas production operations, except in a case in which the 
     Secretary determines that those facilities, structures, or 
     equipment--
       (i) would assist in the management of the Arctic National 
     Wildlife Refuge; and
       (ii) are donated to the United States for that purpose;
       (F) appropriate prohibitions or restrictions on--
       (i) access by all modes of transportation;
       (ii) sand and gravel extraction; and
       (iii) use of explosives;
       (G) reasonable stipulations for protection of cultural and 
     archaeological resources;
       (H) measures to protect groundwater and surface water, 
     including--
       (i) avoidance, to the maximum extent practicable, of 
     springs, streams, and river systems;
       (ii) the protection of natural surface drainage patterns 
     and wetland and riparian habitats; and
       (iii) the regulation of methods or techniques for 
     developing or transporting adequate supplies of water for 
     exploratory drilling; and
       (I) research, monitoring, and reporting requirements;
       (3) that exploration activities (except surface geological 
     studies) be limited to the period between approximately 
     November 1 and May 1 of each year and be supported, if 
     necessary, by ice roads, winter trails with adequate snow 
     cover, ice pads, ice airstrips, and air transport methods 
     (except that those exploration activities may be permitted at 
     other times if the Secretary determines that the exploration 
     will have no significant adverse effect on fish and wildlife, 
     fish and wildlife habitat, subsistence resources, and the 
     environment of the Coastal Plain);
       (4) consolidation of facility siting;
       (5) avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife;
       (6) treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including, in accordance with 
     applicable Federal and State environmental laws (including 
     regulations)--
       (A) preparation of an annual waste management report;
       (B) development and implementation of a hazardous materials 
     tracking system; and
       (C) prohibition on the use of chlorinated solvents;
       (7) fuel storage and oil spill contingency planning;
       (8) conduct of periodic field crew environmental briefings;
       (9) avoidance of significant adverse effects on subsistence 
     hunting, fishing, and trapping;
       (10) compliance with applicable air and water quality 
     standards;
       (11) appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited; and
       (12) development and implementation of such other 
     protective environmental requirements, restrictions, terms, 
     or conditions as the Secretary, after consultation with the 
     State of Alaska, North Slope Borough, Alaska, and the City of 
     Kaktovik, Alaska, determines to be necessary.
       (e) Considerations.--In preparing and issuing regulations, 
     lease terms, conditions, restrictions, prohibitions, or 
     stipulations under this section, the Secretary shall take 
     into consideration--
       (1) the stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement;

[[Page S7351]]

       (2) the environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 through 37.33 of title 50, Code of Federal 
     Regulations (or successor regulations); and
       (3) the land use stipulations for exploratory drilling on 
     the KIC-ASRC private land described in Appendix 2 of the 
     agreement between Arctic Slope Regional Corporation and the 
     United States dated August 9, 1983.
       (f) Facility Consolidation Planning.--
       (1) In general.--After providing for public notice and 
     comment, the Secretary shall prepare and periodically update 
     a plan to govern, guide, and direct the siting and 
     construction of facilities for the exploration, development, 
     production, and transportation of oil and gas resources from 
     the Coastal Plain.
       (2) Objectives.--The objectives of the plan shall be--
       (A) the avoidance of unnecessary duplication of facilities 
     and activities;
       (B) the encouragement of consolidation of common facilities 
     and activities;
       (C) the location or confinement of facilities and 
     activities to areas that will minimize impact on fish and 
     wildlife, fish and wildlife habitat, subsistence resources, 
     and the environment;
       (D) the use of existing facilities, to the maximum extent 
     practicable; and
       (E) the enhancement of compatibility between wildlife 
     values and development activities.
       (g) Access to Public Land.--The Secretary shall--
       (1) manage public land in the Coastal Plain in accordance 
     with subsections (a) and (b) of section 811 of the Alaska 
     National Interest Lands Conservation Act (16 U.S.C. 3121); 
     and
       (2) ensure that local residents shall have reasonable 
     access to public land in the Coastal Plain for traditional 
     uses.

     SEC. 207. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaints.--
       (1) Deadline.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed--
       (A) except as provided in subparagraph (B), during the 90-
     day period beginning on the date on which the action being 
     challenged was carried out; or
       (B) in the case of a complaint based solely on grounds 
     arising after the 90-day period described in subparagraph 
     (A), during the 90-day period beginning on the date on which 
     the complainant knew or reasonably should have known about 
     the grounds for the complaint.
       (2) Venue.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed in the United States Court 
     of Appeals for the District of Columbia.
       (3) Scope.--
       (A) In general.--Judicial review of a decision of the 
     Secretary under this subtitle (including an environmental 
     analysis of such a lease sale) shall be--
       (i) limited to a review of whether the decision is in 
     accordance with this subtitle; and
       (ii) based on the administrative record of the decision.
       (B) Presumptions.--Any identification by the Secretary of a 
     preferred course of action relating to a lease sale, and any 
     analysis by the Secretary of environmental effects, under 
     this subtitle shall be presumed to be correct unless proven 
     otherwise by clear and convincing evidence.
       (b) Limitation on Other Review.--Any action of the 
     Secretary that is subject to judicial review under this 
     section shall not be subject to judicial review in any civil 
     or criminal proceeding for enforcement.

     SEC. 208. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

       For purposes of section 1102(4)(A) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), any 
     rights-of-way or easements across the Coastal Plain for the 
     exploration, development, production, or transportation of 
     oil and gas shall be considered to be established incident to 
     the management of the Coastal Plain under this section.

     SEC. 209. CONVEYANCE.

       Notwithstanding section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
     remove any cloud on title to land, and to clarify land 
     ownership patterns in the Coastal Plain, the Secretary 
     shall--
       (1) to the extent necessary to fulfill the entitlement of 
     the Kaktovik Inupiat Corporation under sections 12 and 14 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 
     1613), as determined by the Secretary, convey to that 
     Corporation the surface estate of the land described in 
     paragraph (1) of Public Land Order 6959, in accordance with 
     the terms and conditions of the agreement between the 
     Secretary, the United States Fish and Wildlife Service, the 
     Bureau of Land Management, and the Kaktovik Inupiat 
     Corporation, dated January 22, 1993; and
       (2) convey to the Arctic Slope Regional Corporation the 
     remaining subsurface estate to which that Corporation is 
     entitled under the agreement between that corporation and the 
     United States, dated August 9, 1983.

     SEC. 210. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Establishment of Fund.--
       (1) In general.--As a condition on the receipt of funds 
     under section 212(2), the State of Alaska shall establish in 
     the treasury of the State, and administer in accordance with 
     this section, a fund to be known as the ``Coastal Plain Local 
     Government Impact Aid Assistance Fund'' (referred to in this 
     section as the ``Fund'').
       (2) Deposits.--Subject to paragraph (1), the Secretary of 
     the Treasury shall deposit into the Fund, $35,000,000 each 
     year from the amount available under section 212(2)(A).
       (3) Investment.--The Governor of the State of Alaska 
     (referred to in this section as the ``Governor'') shall 
     invest amounts in the Fund in interest-bearing securities of 
     the United States or the State of Alaska.
       (b) Assistance.--The Governor, in cooperation with the 
     Mayor of the North Slope Borough, shall use amounts in the 
     Fund to provide assistance to North Slope Borough, Alaska, 
     the City of Kaktovik, Alaska, and any other borough, 
     municipal subdivision, village, or other community in the 
     State of Alaska that is directly impacted by exploration for, 
     or the production of, oil or gas on the Coastal Plain under 
     this subtitle, or any Alaska Native Regional Corporation 
     acting on behalf of the villages and communities within its 
     region whose lands lie along the right of way of the Trans 
     Alaska Pipeline System, as determined by the Governor.
       (c) Application.--
       (1) In general.--To receive assistance under subsection 
     (b), a community or Regional Corporation described in that 
     subsection shall submit to the Governor, or to the Mayor of 
     the North Slope Borough, an application in such time, in such 
     manner, and containing such information as the Governor may 
     require.
       (2) Action by north slope borough.--The Mayor of the North 
     Slope Borough shall submit to the Governor each application 
     received under paragraph (1) as soon as practicable after the 
     date on which the application is received.
       (3) Assistance of governor.--The Governor shall assist 
     communities in submitting applications under this subsection, 
     to the maximum extent practicable.
       (d) Use of Funds.--A community or Regional Corporation that 
     receives funds under subsection (b) may use the funds--
       (1) to plan for mitigation, implement a mitigation plan, or 
     maintain a mitigation project to address the potential 
     effects of oil and gas exploration and development on 
     environmental, social, cultural, recreational, and 
     subsistence resources of the community;
       (2) to develop, carry out, and maintain--
       (A) a project to provide new or expanded public facilities; 
     or
       (B) services to address the needs and problems associated 
     with the effects described in paragraph (1), including 
     firefighting, police, water and waste treatment, first 
     responder, and other medical services;
       (3) to compensate residents of the Coastal Plain for 
     significant damage to environmental, social, cultural, 
     recreational, or subsistence resources; and
       (4) in the City of Kaktovik, Alaska--
       (A) to develop a mechanism for providing members of the 
     Kaktovikmiut Inupiat community an opportunity to--
       (i) monitor development on the Coastal Plain; and
       (ii) provide information and recommendations to the 
     Governor based on traditional aboriginal knowledge of the 
     natural resources, flora, fauna, and ecological processes of 
     the Coastal Plain; and
       (B) to establish a local coordination office, to be managed 
     by the Mayor of the North Slope Borough, in coordination with 
     the City of Kaktovik, Alaska--
       (i) to coordinate with and advise developers on local 
     conditions and the history of areas affected by development;
       (ii) to provide to the Committee on Resources of the House 
     of Representatives and the Committee on Energy and Natural 
     Resources of the Senate annual reports on the status of the 
     coordination between developers and communities affected by 
     development;
       (iii) to collect from residents of the Coastal Plain 
     information regarding the impacts of development on fish, 
     wildlife, habitats, subsistence resources, and the 
     environment of the Coastal Plain; and
       (iv) to ensure that the information collected under clause 
     (iii) is submitted to--

       (I) developers; and
       (II) any appropriate Federal agency.

     SEC. 211. PROHIBITION ON EXPORTS.

       An oil lease issued under this subtitle shall prohibit the 
     exportation of oil produced under the lease.

     SEC. 212. ALLOCATION OF REVENUES.

       Notwithstanding the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.) or any other provision of law, the adjusted bonus, 
     rental, and royalty receipts from Federal oil and gas leasing 
     and operations authorized under this subtitle shall be 
     deposited in accordance with section 222(b).

 Subtitle B--Repeal of Moratoria and Disposition of Qualified Revenues

     SEC. 221. REPEAL OF MORATORIA.

       (a) Commercial Oil Shale Leasing.--Section 433 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2152) 
     is repealed.
       (b) Outer Continental Shelf Leasing.--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 repealed.

     SEC. 222. DISPOSITION OF QUALIFIED REVENUES FROM NEW 
                   PRODUCING AREAS.

       (a) Definitions.--In this section:

[[Page S7352]]

       (1) Fund.--The term ``Fund'' means the Energy Independence 
     Trust Fund established by subsection (c)(1).
       (2) New producing area.--The term ``new producing area'' 
     means--
       (A) 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) that is located greater than 50 miles from the 
     coastline of the State;
       (B) an area available for leasing under section 369(e) of 
     the Energy Policy Act of 2005 (42 U.S.C. 15927(e)); or
       (C) the Coastal Plain (as defined in section 201).
       (3) Qualified revenue.--The term ``qualified revenue'' 
     means the Federal share of 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 Act for new producing areas under the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1331 et seq.) or section 369(e) of 
     the Energy Policy Act of 2005 (42 U.S.C. 15927(e)).
       (b) Disposition of Qualified Revenues.--
       (1) In general.--Notwithstanding any other provision of 
     law--
       (A) 20 percent of qualified revenues shall be deposited in 
     the Highway Trust Fund; and
       (B) 80 percent of qualified revenues shall be deposited in 
     the Fund.
       (2) Limitation.--Notwithstanding subparagraph (A) of 
     paragraph (1), the total amount to be deposited under that 
     subparagraph for any fiscal year shall not exceed the deficit 
     in the Highway Trust Fund for the preceding fiscal year.
       (c) Energy Independence Trust Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a revolving fund, to be known as the 
     ``Energy Independence Trust Fund'', consisting of such 
     amounts as are deposited under subsection (b)(1)(B).
       (2) Expenditures from fund.--On request by the Secretary of 
     Energy, the Secretary of the Treasury shall transfer from the 
     Fund to the Secretary of Energy such amounts as the Secretary 
     of Energy determines are necessary to provide competitive 
     grants for--
       (A) the conduct of research on, and the development of, 
     alternative fuels, energy conservation products, and products 
     that develop and use energy in manners that are safer, 
     cleaner, and more efficient than similar existing products; 
     and
       (B) activities to provide information to the public on the 
     benefits of energy conservation.
       (3) Transfers of amounts.--
       (A) In general.--The amounts required to be transferred to 
     the Fund under this subsection shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       (B) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
                                 ______
                                 
  SA 5141. Ms. COLLINS (for herself and Mr. Lieberman) submitted an 
amendment intended to be proposed by her to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       In section 4(e)(1)(B)(iii) of the Commodity Exchange Act 
     (as added by section 3), strike ``legitimate and 
     nonlegitimate hedge trading'' and insert ``bona fide and non-
     bona fide hedge trading (as those terms are defined in 
     section 4a(h)(1))''.
       In section 4a(g) of the Commodity Exchange Act (as added by 
     section 5), strike ``nonlegitimate hedge trading'' and insert 
     ``non-bona fide hedge trading (as defined in section 
     4a(h)(1))''.
       In section 4a(h) of the Commodity Exchange Act (as added by 
     section 6)--
       (1) in the heading, strike ``Nonlegitimate Hedge'' and 
     insert ``Non-Bona Fide Hedge'';
       (2) strike paragraph (1) and insert the following:
       ``(1) Definitions.--In this subsection:
       ``(A) Bona fide hedge trade.--
       ``(i) In general.--The term `bona fide hedge trade' means a 
     transaction that--

       ``(I) represents a substitute for a transaction to be made 
     or a position to be taken at a later time in a physical 
     marketing channel;
       ``(II) is economically appropriate for the reduction of 
     risks in the conduct and management of a commercial 
     enterprise; and
       ``(III) arises from the potential change in the value of--

       ``(aa) assets that a person owns, produces, manufactures, 
     possesses, or merchandises (or anticipates owning, producing, 
     manufacturing, possessing, or merchandising);
       ``(bb) liabilities that a person incurs or anticipates 
     incurring; or
       ``(cc) services that a person provides or purchases (or 
     anticipates providing or purchasing).
       ``(ii) Exclusion.--The term `bona fide hedge trade' does 
     not include a transaction entered into on a designated 
     contract market for the purpose of offsetting a financial 
     risk arising from an over-the-counter commodity derivative.
       ``(B) Non-bona fide hedge trade.--The term `non-bona fide 
     hedge trade' means a transaction that is not a bona fide 
     hedge trade.'';
       (3) in paragraph (2)--
       (A) in the heading, strike ``legitimate hedge'' and insert 
     ``bona fide hedge''; and
       (B) in subparagraph (A), strike ``legitimate hedge'' and 
     insert ``bona fide hedge'';
       (4) in paragraph (3)(A), strike ``legitimate hedge'' and 
     insert ``bona fide hedge''; and
       (5) in paragraph (4)--
       (A) in subparagraph (A)(i), strike ``legitimate hedge'' and 
     insert ``bona fide hedge'';
       (B) in subparagraph (B)(i), strike ``legitimate hedge'' and 
     insert ``bona fide hedge'';
       (C) in subparagraph (C)--
       (i) in the heading, strike ``nonlegitimate hedge'' and 
     insert ``non-bona fide hedge'';
       (ii) in clause (i)(I), strike ``legitimate hedge'' and 
     insert ``bona fide hedge'';
       (iii) in clause (ii)(II)(aa), strike ``legitimate hedge'' 
     and insert ``bona fide hedge'';
       (iv) in clause (iv)(I)(aa), strike ``nonlegitimate hedge'' 
     and insert ``non-bona fide hedge''; and
       (v) in clause (v)(I), in the matter preceding item (aa), 
     strike ``nonlegitimate traders'' and insert ``non-bona fide 
     traders''; and
       (D) in subparagraph (D)(i)--
       (i) in subclause (I), strike ``legitimate hedging'' and 
     insert ``bona fide hedging'';
       (ii) in subclause (III), strike ``legitimate hedge'' and 
     insert ``bona fide hedge''; and
       (iii) in subclause (IV), strike ``nonlegitimate hedge'' and 
     insert ``non-bona fide hedge''.
       In section 2(j) of the Commodity Exchange Act (as added by 
     section 7)--
       (1) in paragraph (1)(C)(iii), strike ``nonlegitimate hedge 
     trading'' and insert ``non-bona fide hedge trading (as 
     defined in section 4a(h)(1))''; and
       (2) in paragraph (3)(B)(iii), strike ``legitimate hedge 
     trading from nonlegitimate hedge trading'' and insert ``bona 
     fide hedge trading from non-bona fide hedge trading (as those 
     terms are defined in section 4a(h)(1))''.
       In section 4(f)(4) of the Commodity Exchange Act (as added 
     by section 8), strike ``legitimate and nonlegitimate hedge 
     trading'' and insert ``bona fide hedge trading and non-bona 
     fide hedge trading (as those terms are defined in section 
     4a(h)(1))''.
                                 ______
                                 
  SA 5142. Ms. COLLINS (for herself and Mr. Lieberman) submitted an 
amendment intended to be proposed by her to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       In section 1(a), strike ``Energy Speculation'' and insert 
     ``Commodity Speculation''.
       In section 4(e) of the Commodity Exchange Act (as added by 
     section 3)--
       (1) in paragraph (1), in the matter preceding subparagraph 
     (A), strike ``an energy commodity'' and insert ``a covered 
     commodity (as defined in section 4a(h)(1))''; and
       (2) in paragraph (2), strike ``an energy commodity'' and 
     insert ``a covered commodity (as defined in section 
     4a(h)(1))''.
       In section 4a(e) of the Commodity Exchange Act, in the 
     second sentence (as amended by section 4(a)(2)(A)(ii))--
       (1) strike ``an energy commodity'' and insert ``a covered 
     commodity (as defined in subsection (h)(1))''; and
       (2) strike ``or energy commodity'' and insert ``or covered 
     commodity (as defined in subsection (h)(1))''.
       In section 4a(h) of the Commodity Exchange Act (as added by 
     section 6)--
       (1) strike paragraph (1) and insert the following:
       ``(1) Definitions.--In this subsection:
       ``(A) Covered commodity.--The term `covered commodity' 
     means--
       ``(i) an agricultural commodity; and
       ``(ii) an energy commodity.
       ``(B) Legitimate hedge trading.--
       ``(i) In general.--The term `legitimate hedge trading' 
     means the conduct of trading that involves transactions by 
     commercial producers and purchasers of actual covered 
     commodities for future delivery and the direct counterparties 
     to such trades (regardless of whether the counterparties are 
     commercial producers or purchasers).
       ``(ii) Inclusion.--To the extent a commercial producer or 
     purchaser of an actual physical covered commodity for future 
     delivery trades with an intermediary (referred to in this 
     subparagraph as an `initial trade'), each subsequent trade by 
     the intermediary arising solely due to the initial trade and 
     that directly results from such initial trade (referred to in 
     this subparagraph as a `follow-on trade') shall be considered 
     to be the conduct of `legitimate hedge trading' if each 
     follow-on trade executed by the intermediary is--

       ``(I) done proximate to the initial trade; and
       ``(II) in the aggregate, economically the same in size and 
     substance as the initial trade.''; and

       (2) in paragraph (4)(C)--
       (A) in clause (i)(II), strike ``an energy commodity'' each 
     place it appears and insert ``a covered commodity''; and
       (B) in clause (iv)(I)(aa), strike ``an energy commodity'' 
     and insert ``a covered commodity''.
       In section 2(j) of the Commodity Exchange Act (as added by 
     section 7)--
       (1) in paragraph (1)(E), in the matter preceding clause 
     (i), strike ``energy commodity'' and insert ``covered 
     commodity (as defined in section 4a(h)(1))''; and

[[Page S7353]]

       (2) in paragraph (5), strike ``energy commodity'' and 
     insert ``covered commodity (as defined in section 
     4a(h)(1))''.
       In section 15(a)--
       (1) in the heading, strike ``Energy Commodity'' and insert 
     ``Agricultural and Energy Commodities'';
       (2) in paragraph (1), strike ``energy commodity'' and 
     insert ``agricultural and energy commodities''; and
       (3) in paragraph (2)(A), strike ``energy commodity'' and 
     insert ``agricultural and energy commodities''.
                                 ______
                                 
  SA 5143. Mr. CORKER submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Increasing Transparency and 
     Accountability in Energy Prices Act of 2008''.

     SEC. 2. 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. 3. 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. 4. 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. 5. 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
       (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.
                                 ______
                                 
  SA 5144. Mr. MARTINEZ (for himself, Ms. Collins, Mrs. Feinstein, and 
Mr. Sununu) submitted an amendment intended to be proposed by him to 
the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. REPEAL OF TEMPORARY DUTY OF 54 CENTS PER GALLON.

       (a) In General.--Subchapter I of chapter 99 of the 
     Harmonized Tariff Schedule of the United States is amended--
       (1) by striking heading 9901.00.50; and
       (2) by striking U.S. Notes 2 and 3 relating to heading 
     9901.00.50.
       (b) Effective Date.--The amendments made by this section 
     apply with respect to goods entered, or withdrawn from 
     warehouse for consumption, on or after the 15th day after the 
     date of the enactment of this Act.
                                 ______
                                 
  SA 5145. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

                     TITLE _--REFINERY STREAMLINING

     SEC. _01. DEFINITIONS.

       In this title:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Applicant.--The term ``applicant'' means a person who 
     is seeking a Federal refinery authorization.
       (3) Biomass.--The term ``biomass'' has the meaning given 
     that term in section 932(a) of

[[Page S7354]]

     the Energy Policy Act of 2005 (42 U.S.C. 16232(a)).
       (4) Federal refinery authorization.--
       (A) In general.--The term ``Federal refinery 
     authorization'' means any authorization required under 
     Federal law, whether administered by a Federal or State 
     administrative agency or official, with respect to expansion 
     or operation of a refinery.
       (B) Inclusion.--The term ``Federal refinery authorization'' 
     includes any permits, licenses, special use authorizations, 
     certifications, opinions, or other approvals required under 
     Federal law with respect to expansion or operation of a 
     refinery.
       (5) Refinery.--The term ``refinery'' means--
       (A) a facility designed and operated to receive, load, 
     unload, store, transport, process, and refine crude oil by 
     any chemical or physical process, including distillation, 
     fluid catalytic cracking, hydrocracking, coking, alkylation, 
     etherification, polymerization, catalytic reforming, 
     isomerization, hydrotreating, blending, and any combination 
     thereof, in order to produce gasoline or distillate;
       (B) a facility designed and operated to receive, load, 
     unload, store, transport, process, and refine coal by any 
     chemical or physical process, including liquefaction, in 
     order to produce gasoline or diesel as the primary output; or
       (C) a facility designed and operated to receive, load, 
     unload, store, transport, process (including biochemical, 
     photochemical, and biotechnology processes), and refine 
     biomass in order to produce biofuel.
       (6) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.

     SEC. _02. STATE ASSISTANCE.

       (a) In General.--At the request of a governor of a State, 
     the Administrator is authorized to provide financial 
     assistance to the State to facilitate the hiring of 
     additional personnel to assist the State with expertise in 
     fields relevant to consideration of Federal refinery 
     authorizations.
       (b) Other Assistance.--At the request of a governor of a 
     State, a Federal agency responsible for a Federal refinery 
     authorization shall provide technical, legal, or other 
     nonfinancial assistance to the State to facilitate the 
     consideration of the State of Federal refinery 
     authorizations.

     SEC. _03. REFINERY PROCESS COORDINATION AND PROCEDURES.

       (a) Appointment of Federal Coordinator.--
       (1) In general.--The President shall appoint a Federal 
     coordinator to perform the responsibilities assigned to the 
     Federal coordinator under this Act.
       (2) Other agencies.--Each Federal and State agency or 
     official required to provide a Federal refinery authorization 
     shall cooperate with the Federal coordinator.
       (b) Federal Refinery Authorizations.--
       (1) Meeting participants.--
       (A) In general.--Not later than 30 days after receiving a 
     notification from an applicant that the applicant is seeking 
     a Federal refinery authorization pursuant to Federal law, the 
     Federal coordinator appointed under subsection (a) shall 
     convene a meeting of representatives from all Federal and 
     State agencies responsible for a Federal refinery 
     authorization with respect to the refinery.
       (B) Identification.--The governor of a State shall identify 
     each agency of the State that is responsible for a Federal 
     refinery authorization with respect to that refinery.
       (2) Memorandum of agreement.--
       (A) In general.--Not later than 90 days after receipt of a 
     notification described in paragraph (1), the Federal 
     coordinator and the other participants at a meeting convened 
     under that paragraph shall establish a memorandum of 
     agreement that describes the most expeditious coordinated 
     schedule possible for completion of all Federal refinery 
     authorizations with respect to the refinery, consistent with 
     the full substantive and procedural review required by 
     Federal law.
       (B) Schedule accommodation.--If a Federal or State agency 
     responsible for a Federal refinery authorization with respect 
     to the refinery is not represented at a meeting convened 
     under paragraph (1), the Federal coordinator shall ensure 
     that the schedule accommodates those Federal refinery 
     authorizations, consistent with Federal law.
       (C) Priority.--In the event of a conflict among Federal 
     refinery authorization scheduling requirements, the 
     requirements of the Administrator shall be given priority.
       (D) Publication.--Not later than 15 days after completing 
     the memorandum of agreement, the Federal coordinator shall 
     publish the memorandum of agreement in the Federal Register.
       (E) Implementation.--The Federal coordinator shall--
       (i) ensure that all parties to the memorandum of agreement 
     are working in good faith to carry out the memorandum of 
     agreement; and
       (ii) facilitate the maintenance of the schedule established 
     in the memorandum of agreement.
       (c) Consolidated Record.--
                                 ______
                                 
  SA 5146. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

         At the appropriate place, insert the following:

     SEC. ___. FEDERAL PERMIT STREAMLINING PILOT PROJECT.

         (a) Establishment.--The Secretary of the Interior 
     (referred to in this section as the ``Secretary'') shall 
     establish a Federal permit streamlining pilot project 
     (referred to in this section as the ``Pilot Project'').
         (b) Memorandum of Understanding.--Not later than 90 days 
     after the date of enactment of this Act, the Secretary shall 
     enter into a memorandum of understanding for purposes of this 
     section with the Secretary of Commerce.
         (c) Designation of Qualified Staff.--
         (1) In general.--Not later than 30 days after the date of 
     the signing of the memorandum of understanding under 
     subsection (b), the Secretary of Commerce shall assign to 
     each of the regional offices identified in subsection (d) an 
     employee who has expertise in--
         (A) the consultations and the preparation of biological 
     opinions under section 7 of the Endangered Species Act of 
     1973 (16 U.S.C. 1536);
         (B) the consultations and preparation of biological 
     opinions under the Marine Mammal Protection Act of 1972 (16 
     U.S.C. 1361 et seq.); and
         (C) the preparation of analyses under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
         (2) Duties.--Each employee assigned under paragraph (1) 
     shall--
         (A) not later than 90 days after the date of assignment, 
     report to the office of the Minerals Management Service 
     Regional Director to which the employee is assigned;
         (B) be responsible for all issues relating to the 
     jurisdiction of the Department of Commerce; and
         (C) participate as part of the team of personnel working 
     on proposed energy projects, planning, and environmental 
     analyses.
         (d) Regional Permitting Offices.--The following Minerals 
     Management Service Regional Offices shall serve as Pilot 
     Project offices:
         (1) The Gulf of Mexico.
         (2) Alaska.
         (e) Reports.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that--
         (1) outlines the results of the Pilot Project; and
         (2) makes a recommendation to the President regarding 
     whether the Pilot Project should become a permanent program.
         (f) Additional Personnel.--The Secretary shall assign to 
     each Pilot Project office identified in subsection (d) any 
     additional personnel that are necessary to ensure the 
     effective implementation of--
         (1) the Pilot Project; and
         (2) other programs administered by the Regional Offices, 
     including leasing and regulation of energy development on the 
     outer Continental Shelf in accordance with the requirements 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
     seq.).
                                 ______
                                 
  SA 5147. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

         At the appropriate place, insert the following:

     SEC. __. OIL AND NATURAL GAS LEASING IN NEW PRODUCING AREAS.

         (a) Definitions.--In this section:
         (1) Eligible producing state.--The term ``eligible 
     producing State'' means--
         (A) a new producing State; and
         (B) any other producing State that has, within the 
     offshore administrative boundaries beyond the submerged land 
     of a State, areas available for oil leasing, natural gas 
     leasing, or both.
         (2) New producing area.--The term ``new producing area'' 
     means an area that is--
         (A) within the offshore administrative boundaries beyond 
     the submerged land of a State; and
         (B) not available for oil or natural gas leasing as of 
     the date of enactment of this Act.
         (3) New producing state.--The term ``new producing 
     State'' means a State with respect to which a petition has 
     been approved by the Secretary under subsection (b).
         (4) Qualified revenues.--The term ``qualified 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 Act for new producing 
     areas.
         (5) Secretary.--The term ``Secretary'' means the 
     Secretary of the Interior.
         (b) Petition for Leasing New Producing Areas.--
         (1) In general.--Notwithstanding any other provision of 
     law, the Governor of a State, with the concurrence of the 
     State legislature, may submit to the Secretary a petition 
     requesting that the Secretary make a new producing area of 
     the State eligible for oil leasing, gas leasing, or both, as 
     determined by the State, in accordance with the

[[Page S7355]]

     Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) 
     and the Mineral Leasing Act (30 U.S.C. 181 et seq.).
         (2) Action by secretary.--As soon as practicable after 
     the date on which the Secretary receives a petition under 
     paragraph (1), the Secretary shall approve or disapprove the 
     petition.
         (c) Disposition of Qualified Outer Continental Shelf 
     Revenues From Eligible Producing States.--Notwithstanding 
     section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 
     1338), for each applicable fiscal year, the Secretary of the 
     Treasury shall deposit--
         (1) 50 percent of qualified revenues in the general fund 
     of the Treasury; and
         (2) 50 percent of qualified revenues in a special account 
     in the Treasury, which the Secretary shall disburse to 
     eligible producing States for new producing areas, to be 
     allocated in accordance with subsection (d).
         (d) Allocation to Eligible Producing States.--The amount 
     made available under subsection (c)(2) shall be allocated to 
     eligible producing States in amounts (based on a formula 
     established by the Secretary by regulation) that are 
     inversely proportional to the respective distances between 
     the point on the coastline of each eligible producing State 
     that is closest to the geographic center of the applicable 
     leased tract and the geographic center of the leased tract, 
     as determined by the Secretary.
         (e) Effect.--Nothing in this section affects any 
     authority that permits energy production under any other 
     provision of law.
                                 ______
                                 
  SA 5148. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the bill, add the following:

     TITLE II--COLLABORATIVE PERMITTING PROCESS FOR DOMESTIC FUELS 
                               FACILITIES

     SEC. 201. DEFINITIONS.

       In this title:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Coal-to-liquid.--The term ``coal-to-liquid'' means--
       (A) with respect to a process or technology, the use of a 
     feedstock, the majority of which is derived from the coal 
     resources of the United States, using the class of reactions 
     known as Fischer-Tropsch, to produce synthetic fuel suitable 
     for transportation; and
       (B) with respect to a facility, the portion of a facility 
     related to producing the inputs for the Fischer-Tropsch 
     process, or the finished fuel from the Fischer-Tropsch 
     process, using a feedstock that is primarily domestic coal at 
     the Fischer-Tropsch facility.
       (3) Domestic fuels facility.--
       (A) In general.--The term ``domestic fuels facility'' 
     means--
       (i) a coal liquification or coal-to-liquid facility at 
     which coal is processed into synthetic crude oil or any other 
     transportation fuel;
       (ii) a facility that produces a renewable fuel (as defined 
     in section 211(o)(1) of the Clean Air Act (42 U.S.C. 
     7545(o)(1))); and
       (iii) a facility at which crude oil is refined into 
     transportation fuel or other petroleum products.
       (B) Inclusion.--The term ``domestic fuels facility'' 
     includes a domestic fuels facility expansion.
       (4) Domestic fuels facility expansion.--The term ``domestic 
     fuels facility expansion'' means a physical change in a 
     domestic fuels facility that results in an increase in the 
     capacity of the domestic fuels facility.
       (5) Domestic fuels facility permitting agreement.--The term 
     ``domestic fuels facility permitting agreement'' means an 
     agreement entered into between the Administrator and a State 
     or Indian tribe under section 202.
       (6) Domestic fuels producer.--The term ``domestic fuels 
     producer'' means an individual or entity that--
       (A) owns or operates a domestic fuels facility; or
       (B) seeks to become an owner or operator of a domestic 
     fuels facility.
       (7) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (8) Permit.--The term ``permit'' means any permit, license, 
     approval, variance, or other form of authorization that a 
     refiner is required to obtain--
       (A) under any Federal law; or
       (B) from a State or Indian tribal government agency 
     delegated with authority by the Federal Government, or 
     authorized under Federal law to issue permits.
       (9) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.

     SEC. 202. COLLABORATIVE PERMITTING PROCESS FOR DOMESTIC FUELS 
                   FACILITIES.

       (a) In General.--At the request of the Governor of a State 
     or the governing body of an Indian tribe, the Administrator 
     shall enter into a domestic fuels facility permitting 
     agreement with the State or Indian tribe under which the 
     process for obtaining all permits necessary for the 
     construction and operation of a domestic fuels facility shall 
     be improved using a systematic interdisciplinary multimedia 
     approach as provided in this section.
       (b) Authority of Administrator.--Under a domestic fuels 
     facility permitting agreement--
       (1) the Administrator shall have authority, as applicable 
     and necessary, to--
       (A) accept from a refiner a consolidated application for 
     all permits that the domestic fuels producer is required to 
     obtain to construct and operate a domestic fuels facility;
       (B) establish a schedule under which each Federal, State, 
     or Indian tribal government agency that is required to make 
     any determination to authorize the issuance of a permit 
     shall--
       (i) concurrently consider, to the maximum extent 
     practicable, each determination to be made; and
       (ii) complete each step in the permitting process; and
       (C) issue a consolidated permit that combines all permits 
     that the domestic fuels producer is required to obtain; and
       (2) the Administrator shall provide to State and Indian 
     tribal government agencies--
       (A) financial assistance in such amounts as the agencies 
     reasonably require to hire such additional personnel as are 
     necessary to enable the government agencies to comply with 
     the applicable schedule established under paragraph (1)(B); 
     and
       (B) technical, legal, and other assistance in complying 
     with the domestic fuels facility permitting agreement.
       (c) Agreement by the State.--Under a domestic fuels 
     facility permitting agreement, a State or governing body of 
     an Indian tribe shall agree that--
       (1) the Administrator shall have each of the authorities 
     described in subsection (b); and
       (2) each State or Indian tribal government agency shall--
       (A) make such structural and operational changes in the 
     agencies as are necessary to enable the agencies to carry out 
     consolidated project-wide permit reviews concurrently and in 
     coordination with the Environmental Protection Agency and 
     other Federal agencies; and
       (B) comply, to the maximum extent practicable, with the 
     applicable schedule established under subsection (b)(1)(B).
       (d) Interdisciplinary Approach.--
       (1) In general.--The Administrator and a State or governing 
     body of an Indian tribe shall incorporate an 
     interdisciplinary approach, to the maximum extent 
     practicable, in the development, review, and approval of 
     domestic fuels facility permits subject to this section.
       (2) Options.--Among other options, the interdisciplinary 
     approach may include use of--
       (A) environmental management practices; and
       (B) third party contractors.
       (e) Deadlines.--
       (1) New domestic fuels facilities.--In the case of a 
     consolidated permit for the construction of a new domestic 
     fuels facility, the Administrator and the State or governing 
     body of an Indian tribe shall approve or disapprove the 
     consolidated permit not later than--
       (A) 360 days after the date of the receipt of the 
     administratively complete application for the consolidated 
     permit; or
       (B) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 90 days 
     after the expiration of the deadline established under 
     subparagraph (A).
       (2) Expansion of existing domestic fuels facilities.--In 
     the case of a consolidated permit for the expansion of an 
     existing domestic fuels facility, the Administrator and the 
     State or governing body of an Indian tribe shall approve or 
     disapprove the consolidated permit not later than--
       (A) 120 days after the date of the receipt of the 
     administratively complete application for the consolidated 
     permit; or
       (B) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 30 days 
     after the expiration of the deadline established under 
     subparagraph (A).
       (f) Federal Agencies.--Each Federal agency that is required 
     to make any determination to authorize the issuance of a 
     permit shall comply with the applicable schedule established 
     under subsection (b)(1)(B).
       (g) Judicial Review.--Any civil action for review of any 
     determination of any Federal, State, or Indian tribal 
     government agency in a permitting process conducted under a 
     domestic fuels facility permitting agreement brought by any 
     individual or entity shall be brought exclusively in the 
     United States district court for the district in which the 
     domestic fuels facility is located or proposed to be located.
       (h) Efficient Permit Review.--In order to reduce the 
     duplication of procedures, the Administrator shall use State 
     permitting and monitoring procedures to satisfy substantially 
     equivalent Federal requirements under this section.
       (i) Severability.--If 1 or more permits that are required 
     for the construction or operation of a domestic fuels 
     facility are not approved on or before any deadline 
     established under subsection (e), the Administrator may issue 
     a consolidated permit that

[[Page S7356]]

     combines all other permits that the domestic fuels producer 
     is required to obtain other than any permits that are not 
     approved.
       (j) Savings.--Nothing in this section affects the operation 
     or implementation of otherwise applicable law regarding 
     permits necessary for the construction and operation of a 
     domestic fuels facility.
       (k) Consultation With Local Governments.--Congress 
     encourages the Administrator, States, and tribal governments 
     to consult, to the maximum extent practicable, with local 
     governments in carrying out this section.
       (l) Effect on Local Authority.--Nothing in this section 
     affects--
       (1) the authority of a local government with respect to the 
     issuance of permits; or
       (2) any requirement or ordinance of a local government 
     (such as zoning regulations).
                                 ______
                                 
  SA 5149. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike section 4.
                                 ______
                                 
  SA 5150. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. 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.
                                 ______
                                 
  SA 5151. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. LIMITATIONS ON LEGISLATION THAT WOULD INCREASE 
                   NATIONAL AVERAGE FUEL PRICES FOR AUTOMOBILES.

       (a) Definition of Legislation.--In this section, the term 
     ``legislation'' means a bill, joint resolution, amendment, 
     motion, or conference report.
       (b) Point of Order.--
       (1) In general.--Subject to subsection (c), if the Senate 
     is considering legislation, on a point of order being made by 
     any Senator against legislation, or any part of the 
     legislation, that it has been determined in accordance with 
     paragraph (2) that the legislation, if enacted, would result 
     in an increase in the national average fuel price for 
     automobiles, and the point of order is sustained by the 
     Presiding Officer, the Senate shall cease consideration of 
     the legislation.
       (2) Determination.--For the purpose of paragraph (1), the 
     determination described in this paragraph means a 
     determination by the Director of the Congressional Budget 
     Office, in consultation with the Energy Information 
     Administration and the heads of other appropriate Federal 
     Government agencies, that is made on the request of a Senator 
     for review of legislation, that the legislation, or part of 
     the legislation, would, if enacted, result in an increase in 
     the national average fuel price for automobiles.
       (c) Waivers and Appeals.--
       (1) Waivers.--
       (A) In general.--Before the Presiding Officer rules on a 
     point of order described in subsection (b)(1), any Senator 
     may move to waive the point of order.
       (B) Amendments.--The motion to waive under this paragraph 
     shall not be subject to amendment.
       (C) Voting requirement.--A point of order described in 
     subsection (b)(1) shall be waived only by the affirmative 
     vote of at least 60 Members of the Senate, duly chosen and 
     sworn.
       (2) Appeals.--
       (A) In general.--After the Presiding Officer rules on a 
     point of order described in subsection (b)(1), any Senator 
     may appeal the ruling of the Presiding Officer on the point 
     of order as the ruling applies to some or all of the 
     provisions on which the Presiding Officer ruled.
       (B) Voting requirement.--A ruling of the Presiding Officer 
     on a point of order described in subsection (b)(1) shall be 
     sustained unless at least 60 Members of the Senate, duly 
     chosen and sworn, vote not to sustain the ruling.
       (3) Debate.--
       (A) In general.--Debate on the motion to waive under 
     paragraph (1) or on an appeal of the ruling of the Presiding 
     Officer under paragraph (2) shall be limited to 1 hour.
       (B) Division of time.--The time shall be equally divided 
     between, and controlled by, the Majority Leader and the 
     Minority Leader of the Senate, or designees.
                                 ______
                                 
  SA 5152. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Section 4a(h)(1)(B) of the Commodity Exchange Act (as added 
     by section 6) is amended in the matter preceding clause (i) 
     by inserting ``, or a commercial consumer of a product 
     derived from,'' after ``producer or purchaser of''.
                                 ______
                                 
  SA 5153. Mr. CRAIG (for himself, Mr. Crapo, Mr. Bond, Mr. Vitter, and 
Mr. Inhofe) submitted an amendment intended to be proposed by him to 
the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MORATORIUM OF OIL AND GAS LEASING IN CERTAIN AREAS 
                   OF 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 ``50 miles'';
       (3) in paragraph (3), by striking ``100 miles'' each place 
     it appears and inserting ``50 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. __. DISPOSITION OF REVENUES FROM NEW PRODUCING AREAS OF 
                   THE EASTERN GULF OF MEXICO.

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

     ``SEC. 32. DISPOSITION OF REVENUES FROM NEW PRODUCING AREAS 
                   OF THE EASTERN GULF OF MEXICO.

       ``(a) Definitions.--In this section:
       ``(1) Coastal political subdivision.--The term `coastal 
     political subdivision' means a political subdivision of an 
     Eastern Gulf 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 Eastern Gulf 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) Eastern gulf producing state.--The term `Eastern Gulf 
     producing State' means each of the States of Alabama, 
     Florida, Louisiana, Mississippi, and Texas.
       ``(3) Moratorium area.--The term `moratorium area' means an 
     area covered by section 104(a) of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432) (as in effect on the day before the date of enactment of 
     this section).
       ``(4) New producing area.--The term `new producing area' 
     means any moratorium area beyond the submerged land of a 
     State that is located greater than 50 miles from the 
     coastline of the State of Florida.

[[Page S7357]]

       ``(5) Qualified outer continental shelf revenues.--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) Leasing New Producing Areas.--The Secretary shall 
     make new producing areas available for leasing in accordance 
     with this Act.
       ``(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 Eastern Gulf 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 eastern gulf producing states and 
     coastal political subdivisions.--
       ``(A) Allocation to eastern gulf producing states.--
     Effective for fiscal year 2009 and each fiscal year 
     thereafter, the amount made available under paragraph 
     (1)(B)(i) shall be allocated to each Eastern Gulf producing 
     State in amounts (based on a formula established by the 
     Secretary by regulation) that are inversely proportional to 
     the respective distances between the point on the coastline 
     of each Eastern Gulf producing State that is closest to the 
     geographic center of the applicable leased tract and the 
     geographic center of the leased tract.
       ``(B) Payments to coastal political subdivisions.--
       ``(i) In general.--The Secretary shall pay 20 percent of 
     the allocable share of each Eastern Gulf producing State, as 
     determined under subparagraph (A), to the coastal political 
     subdivisions of the Eastern Gulf 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 
     subparagraphs (B) and (C) of section 31(b)(4).
       ``(3) Minimum allocation.--The amount allocated to an 
     Eastern Gulf producing State each fiscal year under paragraph 
     (2)(A) shall be at least 10 percent of the amounts available 
     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 
     Eastern Gulf 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) Mitigation of the impact of outer Continental Shelf 
     activities through the 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 an Eastern Gulf 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.''.
                                 ______
                                 
  SA 5154. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

                    DIVISION B--AMERICAN ENERGY ACT

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``American Energy Act''.
       (b) Table of Contents.--The table of contents for this 
     division is as follows:

Sec. 1. Short title; table of contents.

                        TITLE I--AMERICAN ENERGY

                            Subtitle A--OCS

Sec. 101. Short title.
Sec. 102. Policy.
Sec. 103. Definitions under the Submerged Lands Act.
Sec. 104. Seaward boundaries of States.
Sec. 105. Exceptions from confirmation and establishment of States' 
              title, power, and rights.
Sec. 106. Definitions under the Outer Continental Shelf Lands Act.
Sec. 107. Determination of adjacent zones and planning areas.
Sec. 108. Administration of leasing.
Sec. 109. Grant of leases by Secretary.
Sec. 110. Disposition of receipts.
Sec. 111. Reservation of lands and rights.
Sec. 112. Outer Continental Shelf leasing program.
Sec. 113. Coordination with adjacent States.
Sec. 114. Environmental studies.
Sec. 115. Termination of effect of laws prohibiting the spending of 
              appropriated funds for certain purposes.
Sec. 116. Outer Continental Shelf incompatible use.
Sec. 117. Repurchase of certain leases.
Sec. 118. Offsite environmental mitigation.
Sec. 119. OCS regional headquarters.
Sec. 120. Leases for areas located within 100 miles of California or 
              Florida.
Sec. 121. Coastal impact assistance.
Sec. 122. Repeal of the Gulf of Mexico Energy Security Act of 2006.

                            Subtitle B--ANWR

Sec. 141. Short title.
Sec. 142. Definitions.
Sec. 143. Leasing program for lands within the Coastal Plain.
Sec. 144. Lease sales.
Sec. 145. Grant of leases by the Secretary.
Sec. 146. Lease terms and conditions.
Sec. 147. Coastal Plain environmental protection.
Sec. 148. Expedited judicial review.
Sec. 149. Federal and State distribution of revenues.
Sec. 150. Rights-of-way across the Coastal Plain.
Sec. 151. Conveyance.
Sec. 152. Local government impact aid and community service assistance.

                         Subtitle C--Oil Shale

Sec. 161. Repeal.

                 TITLE II--CONSERVATION AND EFFICIENCY

             Subtitle A--Tax Incentives for Fuel Efficiency

Sec. 201. Credit for new qualified plug-in electric drive motor 
              vehicles.
Sec. 202. Extension of credit for alternative fuel vehicles.
Sec. 203. Extension of alternative fuel vehicle refueling property 
              credit.

         Subtitle B--Tapping America's Ingenuity and Creativity

Sec. 211. Definitions.
Sec. 212. Statement of policy.
Sec. 213. Prize authority.
Sec. 214. Eligibility.
Sec. 215. Intellectual property.
Sec. 216. Waiver of liability.
Sec. 217. Authorization of appropriations.
Sec. 218. Next generation automobile prize program.
Sec. 219. Advanced battery manufacturing incentive program.

              Subtitle C--Home and Business Tax Incentives

Sec. 221. Extension of credit for energy efficient appliances.
Sec. 222. Extension of credit for nonbusiness energy property.
Sec. 223. Extension of credit for residential energy efficient 
              property.
Sec. 224. Extension of new energy efficient home credit.
Sec. 225. Extension of energy efficient commercial buildings deduction.
Sec. 226. Extension of special rule to implement FERC and State 
              electric restructuring policy.
Sec. 227. Home energy audits.
Sec. 228. Accelerated recovery period for depreciation of smart meters.

              Subtitle D--Refinery Permit Process Schedule

Sec. 231. Short title.
Sec. 232. Definitions.
Sec. 233. State assistance.
Sec. 234. Refinery process coordination and procedures.
Sec. 235. Designation of closed military bases.
Sec. 236. Savings clause.
Sec. 237. Refinery revitalization repeal.

               TITLE III--NEW AND EXPANDING TECHNOLOGIES

                     Subtitle A--Alternative Fuels

Sec. 301. Repeal.
Sec. 302. Government auction of long term put option contracts on coal-
              to-liquid fuel produced by qualified coal-to-liquid 
              facilities.
Sec. 303. Standby loans for qualifying coal-to-liquids projects.

                       Subtitle B--Tax Provisions

Sec. 311. Extension of renewable electricity, refined coal, and Indian 
              coal production credit.
Sec. 312. Extension of energy credit.
Sec. 313. Extension and modification of credit for clean renewable 
              energy bonds.

[[Page S7358]]

Sec. 314. Extension of credits for biodiesel and renewable diesel.

                          Subtitle C--Nuclear

Sec. 321. Use of funds for recycling.
Sec. 322. Rulemaking for licensing of spent nuclear fuel recycling 
              facilities.
Sec. 323. Nuclear waste fund budget status.
Sec. 324. Waste Confidence.
Sec. 325. ASME Nuclear Certification credit.

    Subtitle D--American Renewable and Alternative Energy Trust Fund

Sec. 331. American Renewable and Alternative Energy Trust Fund.

                        TITLE I--AMERICAN ENERGY

                            Subtitle A--OCS

     SEC. 101. SHORT TITLE.

       This subtitle may be cited as the ``Deep Ocean Energy 
     Resources Act of 2008''.

     SEC. 102. POLICY.

       It is the policy of the United States that--
       (1) the United States is blessed with abundant energy 
     resources on the outer Continental Shelf and has developed a 
     comprehensive framework of environmental laws and regulations 
     and fostered the development of state-of-the-art technology 
     that allows for the responsible development of these 
     resources for the benefit of its citizenry;
       (2) Adjacent States are required by the circumstances to 
     commit significant resources in support of exploration, 
     development, and production activities for mineral resources 
     on the outer Continental Shelf, and it is fair and proper for 
     a portion of the receipts from such activities to be shared 
     with Adjacent States and their local coastal governments;
       (3) the existing laws governing the leasing and production 
     of the mineral resources of the outer Continental Shelf have 
     reduced the production of mineral resources, have preempted 
     Adjacent States from being sufficiently involved in the 
     decisions regarding the allowance of mineral resource 
     development, and have been harmful to the national interest;
       (4) the national interest is served by granting the 
     Adjacent States more options related to whether or not 
     mineral leasing should occur in the outer Continental Shelf 
     within their Adjacent Zones;
       (5) it is not reasonably foreseeable that exploration of a 
     leased tract located more than 25 miles seaward of the 
     coastline, development and production of a natural gas 
     discovery located more than 25 miles seaward of the 
     coastline, or development and production of an oil discovery 
     located more than 50 miles seaward of the coastline will 
     adversely affect resources near the coastline;
       (6) transportation of oil from a leased tract might 
     reasonably be foreseen, under limited circumstances, to have 
     the potential to adversely affect resources near the 
     coastline if the oil is within 50 miles of the coastline, but 
     such potential to adversely affect such resources is likely 
     no greater, and probably less, than the potential impacts 
     from tanker transportation because tanker spills usually 
     involve large releases of oil over a brief period of time; 
     and
       (7) among other bodies of inland waters, the Great Lakes, 
     Long Island Sound, Delaware Bay, Chesapeake Bay, Albemarle 
     Sound, San Francisco Bay, and Puget Sound are not part of the 
     outer Continental Shelf, and are not subject to leasing by 
     the Federal Government for the exploration, development, and 
     production of any mineral resources that might lie beneath 
     them.

     SEC. 103. DEFINITIONS UNDER THE SUBMERGED LANDS ACT.

       Section 2 of the Submerged Lands Act (43 U.S.C. 1301) is 
     amended--
       (1) in subparagraph (2) of paragraph (a) by striking all 
     after ``seaward to a line'' and inserting ``twelve nautical 
     miles distant from the coast line of such State;'';
       (2) by striking out paragraph (b) and redesignating the 
     subsequent paragraphs in order as paragraphs (b) through (g);
       (3) by striking the period at the end of paragraph (g) (as 
     so redesignated) and inserting ``; and'';
       (4) by adding the following: ``(i) The term `Secretary' 
     means the Secretary of the Interior.''; and
       (5) by defining ``State'' as it is defined in section 2(r) 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(r)).

     SEC. 104. SEAWARD BOUNDARIES OF STATES.

       Section 4 of the Submerged Lands Act (43 U.S.C. 1312) is 
     amended--
       (1) in the first sentence by striking ``original'', and in 
     the same sentence by striking ``three geographical'' and 
     inserting ``twelve nautical''; and
       (2) by striking all after the first sentence and inserting 
     the following: ``Extension and delineation of lateral 
     offshore State boundaries under the provisions of this Act 
     shall follow the lines used to determine the Adjacent Zones 
     of coastal States under the Outer Continental Shelf Lands Act 
     to the extent such lines extend twelve nautical miles for the 
     nearest coastline.''

     SEC. 105. EXCEPTIONS FROM CONFIRMATION AND ESTABLISHMENT OF 
                   STATES' TITLE, POWER, AND RIGHTS.

       Section 5 of the Submerged Lands Act (43 U.S.C. 1313) is 
     amended--
       (1) by redesignating paragraphs (a) through (c) in order as 
     paragraphs (1) through (3);
       (2) by inserting ``(a)'' before ``There is excepted''; and
       (3) by inserting at the end the following:
       ``(b) Exception of Oil and Gas Mineral Rights.--There is 
     excepted from the operation of sections 3 and 4 all of the 
     oil and gas mineral rights for lands beneath the navigable 
     waters that are located within the expanded offshore State 
     seaward boundaries established under this Act. These oil and 
     gas mineral rights shall remain Federal property and shall be 
     considered to be part of the Federal outer Continental Shelf 
     for purposes of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331 et seq.) and subject to leasing under the 
     authority of that Act and to laws applicable to the leasing 
     of the oil and gas resources of the Federal outer Continental 
     Shelf. All existing Federal oil and gas leases within the 
     expanded offshore State seaward boundaries shall continue 
     unchanged by the provisions of this Act, except as otherwise 
     provided herein. However, a State may exercise all of its 
     sovereign powers of taxation within the entire extent of its 
     expanded offshore State boundaries.''.

     SEC. 106. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS 
                   ACT.

       Section 2 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331) is amended--
       (1) by amending paragraph (f) to read as follows:
       ``(f) The term `affected State' means the `Adjacent 
     State'.'';
       (2) by striking the semicolon at the end of each of 
     paragraphs (a) through (o) and inserting a period;
       (3) by striking ``; and'' at the end of paragraph (p) and 
     inserting a period;
       (4) by adding at the end the following:
       ``(r) The term `Adjacent State' means, with respect to any 
     program, plan, lease sale, leased tract or other activity, 
     proposed, conducted, or approved pursuant to the provisions 
     of this Act, any State the laws of which are declared, 
     pursuant to section 4(a)(2), to be the law of the United 
     States for the portion of the outer Continental Shelf on 
     which such program, plan, lease sale, leased tract or 
     activity appertains or is, or is proposed to be, conducted. 
     For purposes of this paragraph, the term `State' includes the 
     Commonwealth of Puerto Rico, the Commonwealth of the Northern 
     Mariana Islands, the Virgin Islands, American Samoa, Guam, 
     and the other Territories of the United States.
       ``(s) The term `Adjacent Zone' means, with respect to any 
     program, plan, lease sale, leased tract, or other activity, 
     proposed, conducted, or approved pursuant to the provisions 
     of this Act, the portion of the outer Continental Shelf for 
     which the laws of a particular Adjacent State are declared, 
     pursuant to section 4(a)(2), to be the law of the United 
     States.
       ``(t) The term `miles' means statute miles.
       ``(u) The term `coastline' has the same meaning as the term 
     `coast line' as defined in section 2(c) of the Submerged 
     Lands Act (43 U.S.C. 1301(c)).
       ``(v) The term `Neighboring State' means a coastal State 
     having a common boundary at the coastline with the Adjacent 
     State.''; and
       (5) in paragraph (a), by inserting after ``control'' the 
     following: ``or lying within the United States exclusive 
     economic zone adjacent to the Territories of the United 
     States''.

     SEC. 107. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.

       Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1333(a)(2)(A)) is amended in the first sentence by 
     striking ``, and the President'' and all that follows through 
     the end of the sentence and inserting the following: ``. The 
     lines extending seaward and defining each State's Adjacent 
     Zone, and each OCS Planning Area, are as indicated on the 
     maps for each outer Continental Shelf region entitled `Alaska 
     OCS Region State Adjacent Zone and OCS Planning Areas', 
     `Pacific OCS Region State Adjacent Zones and OCS Planning 
     Areas', `Gulf of Mexico OCS Region State Adjacent Zones and 
     OCS Planning Areas', and `Atlantic OCS Region State Adjacent 
     Zones and OCS Planning Areas', all of which are dated 
     September 2005 and on file in the Office of the Director, 
     Minerals Management Service.''.

     SEC. 108. ADMINISTRATION OF LEASING.

       Section 5 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1334) is amended by adding at the end the following:
       ``(k) Voluntary Partial Relinquishment of a Lease.--Any 
     lessee of a producing lease may relinquish to the Secretary 
     any portion of a lease that the lessee has no interest in 
     producing and that the Secretary finds is geologically 
     prospective. In return for any such relinquishment, the 
     Secretary shall provide to the lessee a royalty incentive for 
     the portion of the lease retained by the lessee, in 
     accordance with regulations promulgated by the Secretary to 
     carry out this subsection. The Secretary shall publish final 
     regulations implementing this subsection within 365 days 
     after the date of the enactment of the Deep Ocean Energy 
     Resources Act of 2008.
       ``(l) Natural Gas Lease Regulations.--Not later than July 
     1, 2010, the Secretary shall publish a final regulation that 
     shall--
       ``(1) establish procedures for entering into natural gas 
     leases;
       ``(2) ensure that natural gas leases are only available for 
     tracts on the outer Continental Shelf that are wholly within 
     100 miles of the coastline within an area withdrawn from 
     disposition by leasing on the day after the date of enactment 
     of the Deep Ocean Energy Resources Act of 2008;
       ``(3) provide that natural gas leases shall contain the 
     same rights and obligations established for oil and gas 
     leases, except as otherwise provided in the Deep Ocean Energy 
     Resources Act of 2008;
       ``(4) provide that, in reviewing the adequacy of bids for 
     natural gas leases, the

[[Page S7359]]

     value of any crude oil estimated to be contained within any 
     tract shall be excluded;
       ``(5) provide that any crude oil produced from a well and 
     reinjected into the leased tract shall not be subject to 
     payment of royalty, and that the Secretary shall consider, in 
     setting the royalty rates for a natural gas lease, the 
     additional cost to the lessee of not producing any crude oil; 
     and
       ``(6) provide that any Federal law that applies to an oil 
     and gas lease on the outer Continental Shelf shall apply to a 
     natural gas lease unless otherwise clearly inapplicable.''.

     SEC. 109. GRANT OF LEASES BY SECRETARY.

       Section 8 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337) is amended--
       (1) in subsection (a)(1) by inserting after the first 
     sentence the following: ``Further, the Secretary may grant 
     natural gas leases in a manner similar to the granting of oil 
     and gas leases and under the various bidding systems 
     available for oil and gas leases.'';
       (2) by adding at the end of subsection (b) the following:
       ``The Secretary may issue more than one lease for a given 
     tract if each lease applies to a separate and distinct range 
     of vertical depths, horizontal surface area, or a combination 
     of the two. The Secretary may issue regulations that the 
     Secretary determines are necessary to manage such leases 
     consistent with the purposes of this Act.'';
       (3) by amending subsection (p)(2)(B) to read as follows:
       ``(B) The Secretary shall provide for the payment to 
     coastal States, and their local coastal governments, of 75 
     percent of Federal receipts from projects authorized under 
     this section located partially or completely within the area 
     extending seaward of State submerged lands out to 4 marine 
     leagues from the coastline, and the payment to coastal States 
     of 50 percent of the receipts from projects completely 
     located in the area more than 4 marine leagues from the 
     coastline. Payments shall be based on a formula established 
     by the Secretary by rulemaking no later than 180 days after 
     the date of the enactment of the Deep Ocean Energy Resources 
     Act of 2008 that provides for equitable distribution, based 
     on proximity to the project, among coastal States that have 
     coastline that is located within 200 miles of the geographic 
     center of the project.''.
       (4) by adding at the end the following:
       ``(q) Natural Gas Leases.--
       ``(1) Right to produce natural gas.--A lessee of a natural 
     gas lease shall have the right to produce the natural gas 
     from a field on a natural gas leased tract if the Secretary 
     estimates that the discovered field has at least 40 percent 
     of the economically recoverable Btu content of the field 
     contained within natural gas and such natural gas is 
     economical to produce.
       ``(2) Crude oil.--A lessee of a natural gas lease may not 
     produce crude oil from the lease unless the Governor of the 
     Adjacent State agrees to such production.
       ``(3) Estimates of btu content.--The Secretary shall make 
     estimates of the natural gas Btu content of discovered fields 
     on a natural gas lease only after the completion of at least 
     one exploration well, the data from which has been tied to 
     the results of a three-dimensional seismic survey of the 
     field. The Secretary may not require the lessee to further 
     delineate any discovered field prior to making such 
     estimates.
       ``(4) Definition of natural gas.--For purposes of a natural 
     gas lease, natural gas means natural gas and all substances 
     produced in association with gas, including, but not limited 
     to, hydrocarbon liquids (other than crude oil) that are 
     obtained by the condensation of hydrocarbon vapors and 
     separate out in liquid form from the produced gas stream.
       ``(r) Removal of Restrictions on Joint Bidding in Certain 
     Areas of the Outer Continental Shelf.--Restrictions on joint 
     bidders shall no longer apply to tracts located in the Alaska 
     OCS Region. Such restrictions shall not apply to tracts in 
     other OCS regions determined to be `frontier tracts' or 
     otherwise `high cost tracts' under final regulations that 
     shall be published by the Secretary by not later than 365 
     days after the date of the enactment of the Deep Ocean Energy 
     Resources Act of 2008.
       ``(s) Royalty Suspension Provisions.--After the date of the 
     enactment of the Deep Ocean Energy Resources Act of 2008, 
     price thresholds shall apply to any royalty suspension 
     volumes granted by the Secretary. Unless otherwise set by 
     Secretary by regulation or for a particular lease sale, the 
     price thresholds shall be $40.50 for oil (January 1, 2006 
     dollars) and $6.75 for natural gas (January 1, 2006 dollars).
       ``(t) Conservation of Resources Fees.--Not later than one 
     year after the date of the enactment of the Deep Ocean Energy 
     Resources Act of 2008, the Secretary by regulation shall 
     establish a conservation of resources fee for nonproducing 
     leases that will apply to new and existing leases which shall 
     be set at $3.75 per acre per year. This fee shall apply from 
     and after October 1, 2008, and shall be treated as offsetting 
     receipts.'';
       (5) by striking subsection (a)(3)(A) and redesignating the 
     subsequent subparagraphs as subparagraphs (A) and (B), 
     respectively;
       (6) in subsection (a)(3)(A) (as so redesignated) by 
     striking ``In the Western'' and all that follows through 
     ``the Secretary'' the first place it appears and inserting 
     ``The Secretary''; and
       (7) effective October 1, 2008, in subsection (g)--
       (A) by striking all after ``(g)'', except paragraph (3);
       (B) by striking the last sentence of paragraph (3); and
       (C) by striking ``(3)''.

     SEC. 110. DISPOSITION OF RECEIPTS.

       Section 9 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1338) is amended--
       (1) by designating the existing text as subsection (a);
       (2) in subsection (a) (as so designated) by inserting ``, 
     if not paid as otherwise provided in this title'' after 
     ``receipts''; and
       (3) by adding the following:
       ``(b) Treatment of OCS Receipts From Tracts Completely 
     Within 100 Miles of the Coastline.--
       ``(1) Deposit.--The Secretary shall deposit into a separate 
     account in the Treasury the portion of OCS Receipts for each 
     fiscal year that will be shared under paragraphs (2), (3), 
     and (4).
       ``(2) Phased-in receipts sharing.--
       ``(A) Beginning October 1, 2008, the Secretary shall share 
     OCS Receipts derived from the following areas:
       ``(i) Lease tracts located on portions of the Gulf of 
     Mexico OCS Region completely beyond 4 marine leagues from any 
     coastline and completely within 100 miles of any coastline 
     that were available for leasing under the 2002-2007 5-Year 
     OCS Oil and Gas Leasing Program.
       ``(ii) Lease tracts in production prior to October 1, 2008, 
     completely beyond 4 marine leagues from any coastline and 
     completely within 100 miles of any coastline located on 
     portions of the OCS that were not available for leasing under 
     the 2002-2007 5-Year OCS Oil and Gas Leasing Program.
       ``(iii) Lease tracts for which leases are issued prior to 
     October 1, 2008, located in the Alaska OCS Region completely 
     beyond 4 marine leagues from any coastline and completely 
     within 100 miles of the coastline.
       ``(B) The Secretary shall share the following percentages 
     of OCS Receipts from the leases described in subparagraph (A) 
     derived during the fiscal year indicated:
       ``(i) For fiscal year 2009, 5 percent.
       ``(ii) For fiscal year 2010, 8 percent.
       ``(iii) For fiscal year 2011, 11 percent.
       ``(iv) For fiscal year 2012, 14 percent.
       ``(v) For fiscal year 2013, 17 percent.
       ``(vi) For fiscal year 2014, 20 percent.
       ``(vii) For fiscal year 2015, 23 percent.
       ``(viii) For fiscal year 2016, 26 percent.
       ``(ix) For fiscal year 2017, 29 percent.
       ``(x) For fiscal year 2018, 32 percent.
       ``(xi) For fiscal year 2019, 35 percent.
       ``(xii) For fiscal year 2020 and each subsequent fiscal 
     year, 37.5 percent.
       ``(C) The provisions of this paragraph shall not apply to 
     leases that could not have been issued but for section 5(k) 
     of this Act or section 6(2) of the Deep Ocean Energy 
     Resources Act of 2008.
       ``(3) Immediate receipts sharing.--Beginning October 1, 
     2008, the Secretary shall share 37.50 percent of OCS Receipts 
     derived from all leases located completely beyond 4 marine 
     leagues from any coastline and completely within 100 miles of 
     any coastline not included within the provisions of paragraph 
     (2), and 90 percent of the balance of such OCS Receipts shall 
     be deposited into the American Renewable and Alternative 
     Energy Trust Fund established by section 331 of the American 
     Energy Act.
       ``(4) Receipts sharing from tracts within 4 marine leagues 
     of any coastline.--
       ``(A) Areas described in paragraph (2).--Beginning October 
     1, 2008, and continuing through September 30, 2010, the 
     Secretary shall share 25 percent of OCS Receipts derived from 
     all leases located within 4 marine leagues from any coastline 
     within areas described in paragraph (2). For each fiscal year 
     after September 30, 2010, the Secretary shall increase the 
     percent shared in 5 percent increments each fiscal year until 
     the sharing rate for all leases located within 4 marine 
     leagues from any coastline within areas described in 
     paragraph (2) becomes 75 percent.
       ``(B) Areas not described in paragraph (2).--Beginning 
     October 1, 2008, the Secretary shall share 75 percent of OCS 
     receipts derived from all leases located completely or 
     partially within 4 marine leagues from any coastline within 
     areas not described paragraph (2).
       ``(5) Allocations.--The Secretary shall allocate the OCS 
     Receipts deposited into the separate account established by 
     paragraph (1) that are shared under paragraphs (2), (3), and 
     (4) as follows:
       ``(A) Bonus bids.--Deposits derived from bonus bids from a 
     leased tract, including interest thereon, shall be allocated 
     at the end of each fiscal year to the Adjacent State.
       ``(B) Royalties.--Deposits derived from royalties from a 
     leased tract, including interest thereon, shall be allocated 
     at the end of each fiscal year to the Adjacent State and any 
     other producing State or States with a leased tract within 
     its Adjacent Zone within 100 miles of its coastline that 
     generated royalties during the fiscal year, if the other 
     producing or States have a coastline point within 300 miles 
     of any portion of the leased tract, in which case the amount 
     allocated for the leased tract shall be--
       ``(i) one-third to the Adjacent State; and
       ``(ii) two-thirds to each producing State, including the 
     Adjacent State, inversely proportional to the distance 
     between the nearest point on the coastline of the producing 
     State and the geographic center of the leased tract.

[[Page S7360]]

       ``(c) Treatment of OCS Receipts From Tracts Partially or 
     Completely Beyond 100 Miles of the Coastline.--
       ``(1) Deposit.--The Secretary shall deposit into a separate 
     account in the Treasury the portion of OCS Receipts for each 
     fiscal year that will be shared under paragraphs (2) and (3).
       ``(2) Phased-in receipts sharing.--
       ``(A) Beginning October 1, 2008, the Secretary shall share 
     OCS Receipts derived from the following areas:
       ``(i) Lease tracts located on portions of the Gulf of 
     Mexico OCS Region partially or completely beyond 100 miles of 
     any coastline that were available for leasing under the 2002-
     2007 5-Year OCS Oil and Gas Leasing Program.
       ``(ii) Lease tracts in production prior to October 1, 2008, 
     partially or completely beyond 100 miles of any coastline 
     located on portions of the OCS that were not available for 
     leasing under the 2002-2007 5-Year OCS Oil and Gas Leasing 
     Program.
       ``(iii) Lease tracts for which leases are issued prior to 
     October 1, 2008, located in the Alaska OCS Region partially 
     or completely beyond 100 miles of the coastline.
       ``(B) The Secretary shall share the following percentages 
     of OCS Receipts from the leases described in subparagraph (A) 
     derived during the fiscal year indicated:
       ``(i) For fiscal year 2009, 5 percent.
       ``(ii) For fiscal year 2010, 8 percent.
       ``(iii) For fiscal year 2011, 11 percent.
       ``(iv) For fiscal year 2012, 14 percent.
       ``(v) For fiscal year 2013, 17 percent.
       ``(vi) For fiscal year 2014, 20 percent.
       ``(vii) For fiscal year 2015, 23 percent.
       ``(viii) For fiscal year 2016, 26 percent.
       ``(ix) For fiscal year 2017, 29 percent.
       ``(x) For fiscal year 2018, 32 percent.
       ``(xi) For fiscal year 2019, 35 percent.
       ``(xii) For fiscal year 2020 and each subsequent fiscal 
     year, 37.5 percent.
       ``(C) The provisions of this paragraph shall not apply to 
     leases that could not have been issued but for section 5(k) 
     of this Act or section 106(2) of the Deep Ocean Energy 
     Resources Act of 2008.
       ``(3) Immediate receipts sharing.--Beginning October 1, 
     2008, the Secretary shall share 37.5 percent of OCS Receipts 
     derived on and after October 1, 2008, from all leases located 
     partially or completely beyond 100 miles of any coastline not 
     included within the provisions of paragraph (2), except that 
     the Secretary shall only share 25 percent of such OCS 
     Receipts derived from all such leases within a State's 
     Adjacent Zone if no leasing is allowed within any portion of 
     that State's Adjacent Zone located completely within 100 
     miles of any coastline.
       ``(4) Allocations.--The Secretary shall allocate the OCS 
     Receipts deposited into the separate account established by 
     paragraph (1) that are shared under paragraphs (2) and (3) as 
     follows:
       ``(A) Bonus bids.--Deposits derived from bonus bids from a 
     leased tract, including interest thereon, shall be allocated 
     at the end of each fiscal year to the Adjacent State.
       ``(B) Royalties.--Deposits derived from royalties from a 
     leased tract, including interest thereon, shall be allocated 
     at the end of each fiscal year to the Adjacent State and any 
     other producing State or States with a leased tract within 
     its Adjacent Zone partially or completely beyond 100 miles of 
     its coastline that generated royalties during the fiscal 
     year, if the other producing State or States have a coastline 
     point within 300 miles of any portion of the leased tract, in 
     which case the amount allocated for the leased tract shall 
     be--
       ``(i) one-third to the Adjacent State; and
       ``(ii) two-thirds to each producing State, including the 
     Adjacent State, inversely proportional to the distance 
     between the nearest point on the coastline of the producing 
     State and the geographic center of the leased tract.
       ``(d) Transmission of Allocations.--
       ``(1) In general.--Not later than 90 days after the end of 
     each fiscal year, the Secretary shall transmit--
       ``(A) to each State 60 percent of such State's allocations 
     under subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and 
     (c)(4)(B) for the immediate prior fiscal year;
       ``(B) to each coastal county-equivalent and municipal 
     political subdivisions of such State a total of 40 percent of 
     such State's allocations under subsections (b)(5)(A), 
     (b)(5)(B), (c)(4)(A), and (c)(4)(B), together with all 
     accrued interest thereon; and
       ``(C) the remaining allocations under subsections (b)(5) 
     and (c)(4), together with all accrued interest thereon.
       ``(2) Allocations to coastal county-equivalent political 
     subdivisions.--The Secretary shall make an initial allocation 
     of the OCS Receipts to be shared under paragraph (1)(B) as 
     follows:
       ``(A) 25 percent shall be allocated to coastal county-
     equivalent political subdivisions that are completely more 
     than 25 miles landward of the coastline and at least a part 
     of which lies not more than 75 miles landward from the 
     coastline, with the allocation among such coastal county-
     equivalent political subdivisions based on population.
       ``(B) 75 percent shall be allocated to coastal county-
     equivalent political subdivisions that are completely or 
     partially less than 25 miles landward of the coastline, with 
     the allocation among such coastal county-equivalent political 
     subdivisions to be further allocated as follows:
       ``(i) 25 percent shall be allocated based on the ratio of 
     such coastal county-equivalent political subdivision's 
     population to the coastal population of all coastal county-
     equivalent political subdivisions in the State.
       ``(ii) 25 percent shall be allocated based on the ratio of 
     such coastal county-equivalent political subdivision's 
     coastline miles to the coastline miles of all coastal county-
     equivalent political subdivisions in the State as calculated 
     by the Secretary. In such calculations, coastal county-
     equivalent political subdivisions without a coastline shall 
     be considered to have 50 percent of the average coastline 
     miles of the coastal county-equivalent political subdivisions 
     that do have coastlines.
       ``(iii) 25 percent shall be allocated to all coastal 
     county-equivalent political subdivisions having a coastline 
     point within 300 miles of the leased tract for which OCS 
     Receipts are being shared based on a formula that allocates 
     the funds based on such coastal county-equivalent political 
     subdivision's relative distance from the leased tract.
       ``(iv) 25 percent shall be allocated to all coastal county-
     equivalent political subdivisions having a coastline point 
     within 300 miles of the leased tract for which OCS Receipts 
     are being shared based on the relative level of outer 
     Continental Shelf oil and gas activities in a coastal 
     political subdivision compared to the level of outer 
     Continental Shelf activities in all coastal political 
     subdivisions in the State. The Secretary shall define the 
     term `outer Continental Shelf oil and gas activities' for 
     purposes of this subparagraph to include, but not be limited 
     to, construction of vessels, drillships, and platforms 
     involved in exploration, production, and development on the 
     outer Continental Shelf; support and supply bases, ports, and 
     related activities; offices of geologists, geophysicists, 
     engineers, and other professionals involved in support of 
     exploration, production, and development of oil and gas on 
     the outer Continental Shelf; pipelines and other means of 
     transporting oil and gas production from the outer 
     Continental Shelf; and processing and refining of oil and gas 
     production from the outer Continental Shelf. For purposes of 
     this subparagraph, if a coastal county-equivalent political 
     subdivision does not have a coastline, its coastal point 
     shall be the point on the coastline closest to it.
       ``(3) Allocations to coastal municipal political 
     subdivisions.--The initial allocation to each coastal county-
     equivalent political subdivision under paragraph (2) shall be 
     further allocated to the coastal county-equivalent political 
     subdivision and any coastal municipal political subdivisions 
     located partially or wholly within the boundaries of the 
     coastal county-equivalent political subdivision as follows:
       ``(A) One-third shall be allocated to the coastal county-
     equivalent political subdivision.
       ``(B) Two-thirds shall be allocated on a per capita basis 
     to the municipal political subdivisions and the county-
     equivalent political subdivision, with the allocation to the 
     latter based upon its population not included within the 
     boundaries of a municipal political subdivision.
       ``(e) Investment of Deposits.--Amounts deposited under this 
     section shall be invested by the Secretary of the Treasury in 
     securities backed by the full faith and credit of the United 
     States having maturities suitable to the needs of the account 
     in which they are deposited and yielding the highest 
     reasonably available interest rates as determined by the 
     Secretary of the Treasury.
       ``(f) Use of Funds.--A recipient of funds under this 
     section may use the funds for one or more of the following:
       ``(1) To reduce in-State college tuition at public 
     institutions of higher learning and otherwise support public 
     education, including career technical education.
       ``(2) To make transportation infrastructure improvements.
       ``(3) To reduce taxes.
       ``(4) To promote, fund, and provide for--
       ``(A) coastal or environmental restoration;
       ``(B) fish, wildlife, and marine life habitat enhancement;
       ``(C) waterways construction and maintenance;
       ``(D) levee construction and maintenance and shore 
     protection; and
       ``(E) marine and oceanographic education and research.
       ``(5) To promote, fund, and provide for--
       ``(A) infrastructure associated with energy production 
     activities conducted on the outer Continental Shelf;
       ``(B) energy demonstration projects;
       ``(C) supporting infrastructure for shore-based energy 
     projects;
       ``(D) State geologic programs, including geologic mapping 
     and data storage programs, and State geophysical data 
     acquisition;
       ``(E) State seismic monitoring programs, including 
     operation of monitoring stations;
       ``(F) development of oil and gas resources through enhanced 
     recovery techniques;
       ``(G) alternative energy development, including bio fuels, 
     coal-to-liquids, oil shale, tar sands, geothermal, 
     geopressure, wind, waves, currents, hydro, and other 
     renewable energy;
       ``(H) energy efficiency and conservation programs; and
       ``(I) front-end engineering and design for facilities that 
     produce liquid fuels from hydrocarbons and other biological 
     matter.
       ``(6) To promote, fund, and provide for--
       ``(A) historic preservation programs and projects;
       ``(B) natural disaster planning and response; and

[[Page S7361]]

       ``(C) hurricane and natural disaster insurance programs.
       ``(7) For any other purpose as determined by State law.
       ``(g) No Accounting Required.--No recipient of funds under 
     this section shall be required to account to the Federal 
     Government for the expenditure of such funds, except as 
     otherwise may be required by law. However, States may enact 
     legislation providing for accounting for and auditing of such 
     expenditures. Further, funds allocated under this section to 
     States and political subdivisions may be used as matching 
     funds for other Federal programs.
       ``(h) Effect of Future Laws.--Enactment of any future 
     Federal statute that has the effect, as determined by the 
     Secretary, of restricting any Federal agency from spending 
     appropriated funds, or otherwise preventing it from 
     fulfilling its pre-existing responsibilities as of the date 
     of enactment of the statute, unless such responsibilities 
     have been reassigned to another Federal agency by the statute 
     with no prevention of performance, to issue any permit or 
     other approval impacting on the OCS oil and gas leasing 
     program, or any lease issued thereunder, or to implement any 
     provision of this Act shall automatically prohibit any 
     sharing of OCS Receipts under this section directly with the 
     States, and their coastal political subdivisions, for the 
     duration of the restriction. The Secretary shall make the 
     determination of the existence of such restricting effects 
     within 30 days of a petition by any outer Continental Shelf 
     lessee or producing State.
       ``(i) Definitions.--In this section:
       ``(1) Coastal county-equivalent political subdivision.--The 
     term `coastal county-equivalent political subdivision' means 
     a political jurisdiction immediately below the level of State 
     government, including a county, parish, borough in Alaska, 
     independent municipality not part of a county, parish, or 
     borough in Alaska, or other equivalent subdivision of a 
     coastal State, that lies within the coastal zone.
       ``(2) Coastal municipal political subdivision.--The term 
     `coastal municipal political subdivision' means a 
     municipality located within and part of a county, parish, 
     borough in Alaska, or other equivalent subdivision of a 
     State, all or part of which coastal municipal political 
     subdivision lies within the coastal zone.
       ``(3) Coastal population.--The term `coastal population' 
     means the population of all coastal county-equivalent 
     political subdivisions, as determined by the most recent 
     official data of the Census Bureau.
       ``(4) Coastal zone.--The term `coastal zone' means that 
     portion of a coastal State, including the entire territory of 
     any coastal county-equivalent political subdivision at least 
     a part of which lies, within 75 miles landward from the 
     coastline, or a greater distance as determined by State law 
     enacted to implement this section.
       ``(5) Bonus bids.--The term `bonus bids' means all funds 
     received by the Secretary to issue an outer Continental Shelf 
     minerals lease.
       ``(6) Royalties.--The term `royalties' means all funds 
     received by the Secretary from production of oil or natural 
     gas, or the sale of production taken in-kind, from an outer 
     Continental Shelf minerals lease.
       ``(7) Producing state.--The term `producing State' means an 
     Adjacent State having an Adjacent Zone containing leased 
     tracts from which OCS Receipts were derived.
       ``(8) OCS receipts.--The term `OCS Receipts' means bonus 
     bids, royalties, and conservation of resources fees.''.

     SEC. 111. RESERVATION OF LANDS AND RIGHTS.

       Section 12 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1341) is amended--
       (1) in subsection (a) by adding at the end the following: 
     ``The President may partially or completely revise or revoke 
     any prior withdrawal made by the President under the 
     authority of this section. The President may not revise or 
     revoke a withdrawal that is extended by a State under 
     subsection (h), nor may the President withdraw from leasing 
     any area for which a State failed to prohibit, or petition to 
     prohibit, leasing under subsection (g). Further, in the area 
     of the outer Continental Shelf more than 100 miles from any 
     coastline, not more than 25 percent of the acreage of any OCS 
     Planning Area may be withdrawn from leasing under this 
     section at any point in time. A withdrawal by the President 
     may be for a term not to exceed 10 years. When considering 
     potential uses of the outer Continental Shelf, to the maximum 
     extent possible, the President shall accommodate competing 
     interests and potential uses.'';
       (2) by adding at the end the following:
       ``(g) Availability for Leasing Within Certain Areas of the 
     Outer Continental Shelf.--
       ``(1) Prohibition against leasing.--
       ``(A) Unavailable for leasing without state request.--
     Except as otherwise provided in this subsection, from and 
     after enactment of the Deep Ocean Energy Resources Act of 
     2008, the Secretary shall not offer for leasing for oil and 
     gas, or natural gas, any area within 50 miles of the 
     coastline that was withdrawn from disposition by leasing in 
     the Atlantic OCS Region or the Pacific OCS Region, or the 
     Gulf of Mexico OCS Region Eastern Planning Area, as depicted 
     on the maps referred to in this subparagraph, under the 
     `Memorandum on Withdrawal of Certain Areas of the United 
     States Outer Continental Shelf from Leasing Disposition', 34 
     Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, or any 
     area within 50 miles of the coastline not withdrawn under 
     that Memorandum that is included within the Gulf of Mexico 
     OCS Region Eastern Planning Area as indicated on the map 
     entitled `Gulf of Mexico OCS Region State Adjacent Zones and 
     OCS Planning Areas' or the Florida Straits Planning Area as 
     indicated on the map entitled `Atlantic OCS Region State 
     Adjacent Zones and OCS Planning Areas', both of which are 
     dated September 2005 and on file in the Office of the 
     Director, Minerals Management Service.
       ``(B) Areas between 50 and 100 miles from the coastline.--
     Unless an Adjacent State petitions under subsection (h) 
     within one year after the date of the enactment of the Deep 
     Ocean Energy Resources Act of 2008 for natural gas leasing or 
     by June 30, 2010, for oil and gas leasing, the Secretary 
     shall offer for leasing any area more than 50 miles but less 
     than 100 miles from the coastline that was withdrawn from 
     disposition by leasing in the Atlantic OCS Region, the 
     Pacific OCS Region, or the Gulf of Mexico OCS Region Eastern 
     Planning Area, as depicted on the maps referred to in this 
     subparagraph, under the `Memorandum on Withdrawal of Certain 
     Areas of the United States Outer Continental Shelf from 
     Leasing Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated 
     June 12, 1998, or any area more than 50 miles but less than 
     100 miles of the coastline not withdrawn under that 
     Memorandum that is included within the Gulf of Mexico OCS 
     Region Eastern Planning Area as indicated on the map entitled 
     `Gulf of Mexico OCS Region State Adjacent Zones and OCS 
     Planning Areas' or within the Florida Straits Planning Area 
     as indicated on the map entitled `Atlantic OCS Region State 
     Adjacent Zones and OCS Planning Areas', both of which are 
     dated September 2005 and on file in the Office of the 
     Director, Minerals Management Service.
       ``(2) Petition for leasing.--
       ``(A) In general.--The Governor of the State, upon 
     concurrence of its legislature, may submit to the Secretary a 
     petition requesting that the Secretary make available any 
     area that is within the State's Adjacent Zone, included 
     within the provisions of paragraph (1), and that (i) is 
     greater than 25 miles from any point on the coastline of a 
     Neighboring State for the conduct of offshore leasing, pre-
     leasing, and related activities with respect to natural gas 
     leasing; or (ii) is greater than 50 miles from any point on 
     the coastline of a Neighboring State for the conduct of 
     offshore leasing, pre-leasing, and related activities with 
     respect to oil and gas leasing. The Adjacent State may also 
     petition for leasing any other area within its Adjacent Zone 
     if leasing is allowed in the similar area of the Adjacent 
     Zone of the applicable Neighboring State, or if not allowed, 
     if the Neighboring State, acting through its Governor, 
     expresses its concurrence with the petition. The Secretary 
     shall only consider such a petition upon making a finding 
     that leasing is allowed in the similar area of the Adjacent 
     Zone of the applicable Neighboring State or upon receipt of 
     the concurrence of the Neighboring State. The date of receipt 
     by the Secretary of such concurrence by the Neighboring State 
     shall constitute the date of receipt of the petition for that 
     area for which the concurrence applies.
       ``(B) Limitations on leasing.--In its petition, a State 
     with an Adjacent Zone that contains leased tracts may 
     condition new leasing for oil and gas, or natural gas for 
     tracts within 25 miles of the coastline by--
       ``(i) requiring a net reduction in the number of production 
     platforms;
       ``(ii) requiring a net increase in the average distance of 
     production platforms from the coastline;
       ``(iii) limiting permanent surface occupancy on new leases 
     to areas that are more than 10 miles from the coastline;
       ``(iv) limiting some tracts to being produced from shore or 
     from platforms located on other tracts; or
       ``(v) other conditions that the Adjacent State may deem 
     appropriate as long as the Secretary does not determine that 
     production is made economically or technically impracticable 
     or otherwise impossible.
       ``(C) Action by secretary.--Not later than 90 days after 
     receipt of a petition under subparagraph (A), the Secretary 
     shall approve the petition, unless the Secretary determines 
     that leasing the area would probably cause serious harm or 
     damage to the marine resources of the State's Adjacent Zone. 
     Prior to approving the petition, the Secretary shall complete 
     an environmental assessment that documents the anticipated 
     environmental effects of leasing in the area included within 
     the scope of the petition.
       ``(D) Failure to act.--If the Secretary fails to approve or 
     deny a petition in accordance with subparagraph (C) the 
     petition shall be considered to be approved 90 days after 
     receipt of the petition.
       ``(E) Amendment of the 5-year leasing program.--
     Notwithstanding section 18, within 180 days of the approval 
     of a petition under subparagraph (C) or (D), after the 
     expiration of the time limits in paragraph (1)(B), the 
     Secretary shall amend the current 5-Year Outer Continental 
     Shelf Oil and Gas Leasing Program to include a lease sale or 
     sales for at least 75 percent of the associated areas, unless 
     there are, from the date of approval, expiration of such time 
     limits, as applicable, fewer than 12 months remaining in the 
     current 5-Year Leasing Program in which case the Secretary 
     shall include the

[[Page S7362]]

     associated areas within lease sales under the next 5-Year 
     Leasing Program. For purposes of amending the 5-Year Program 
     in accordance with this section, further consultations with 
     States shall not be required. For purposes of this section, 
     an environmental assessment performed under the provisions of 
     the National Environmental Policy Act of 1969 to assess the 
     effects of approving the petition shall be sufficient to 
     amend the 5-Year Leasing Program.
       ``(h) Option To Extend Withdrawal From Leasing Within 
     Certain Areas of the Outer Continental Shelf.--A State, 
     through its Governor and upon the concurrence of its 
     legislature, may extend for a period of time of up to 5 years 
     for each extension the withdrawal from leasing for all or 
     part of any area within the State's Adjacent Zone located 
     more than 50 miles, but less than 100 miles, from the 
     coastline that is subject to subsection (g)(1)(B). A State 
     may extend multiple times for any particular area but not 
     more than once per calendar year for any particular area. A 
     State must prepare separate extensions, with separate votes 
     by its legislature, for oil and gas leasing and for natural 
     gas leasing. An extension by a State may affect some areas to 
     be withdrawn from all leasing and some areas to be withdrawn 
     only from one type of leasing.
       ``(i) Effect of Other Laws.--Adoption by any Adjacent State 
     of any constitutional provision, or enactment of any State 
     statute, that has the effect, as determined by the Secretary, 
     of restricting either the Governor or the Legislature, or 
     both, from exercising full discretion related to subsection 
     (g) or (h), or both, shall automatically (1) prohibit any 
     sharing of OCS Receipts under this Act with the Adjacent 
     State, and its coastal political subdivisions, and (2) 
     prohibit the Adjacent State from exercising any authority 
     under subsection (h), for the duration of the restriction. 
     The Secretary shall make the determination of the existence 
     of such restricting constitutional provision or State statute 
     within 30 days of a petition by any outer Continental Shelf 
     lessee or coastal State.
       ``(j) Prohibition on Leasing East of the Military Mission 
     Line.--
       ``(1) Notwithstanding any other provision of law, from and 
     after the enactment of the Deep Ocean Energy Resources Act of 
     2008, prior to January 1, 2022, no area of the outer 
     Continental Shelf located in the Gulf of Mexico east of the 
     military mission line may be offered for leasing for oil and 
     gas or natural gas unless a waiver is issued by the Secretary 
     of Defense. If such a waiver is granted, 62.5 percent of the 
     OCS Receipts from a lease within such area issued because of 
     such waiver shall be paid annually to the National Guards of 
     all States having a point within 1000 miles of such a lease, 
     allocated among the States on a per capita basis using the 
     entire population of such States.
       ``(2) In this subsection, the term `military mission line' 
     means a line located at 86 degrees, 41 minutes West 
     Longitude, and extending south from the coast of Florida to 
     the outer boundary of United States territorial waters in the 
     Gulf of Mexico.''.

     SEC. 112. OUTER CONTINENTAL SHELF LEASING PROGRAM.

       Section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344) is amended--
       (1) in subsection (a), by adding at the end of paragraph 
     (3) the following: ``The Secretary shall, in each 5-Year 
     Program, include lease sales that when viewed as a whole 
     propose to offer for oil and gas or natural gas leasing at 
     least 75 percent of the available unleased acreage within 
     each OCS Planning Area. Available unleased acreage is that 
     portion of the outer Continental Shelf that is not under 
     lease at the time of the proposed lease sale, and has not 
     otherwise been made unavailable for leasing by law.'';
       (2) in subsection (c), by striking so much as precedes 
     paragraph (3) and inserting the following:
       ``(c)(1) During the preparation of any proposed leasing 
     program under this section, the Secretary shall consider and 
     analyze leasing throughout the entire outer Continental Shelf 
     without regard to any other law affecting such leasing. 
     During this preparation the Secretary shall invite and 
     consider suggestions from any interested Federal agency, 
     including the Attorney General, in consultation with the 
     Federal Trade Commission, and from the Governor of any 
     coastal State. The Secretary may also invite or consider any 
     suggestions from the executive of any local government in a 
     coastal State that have been previously submitted to the 
     Governor of such State, and from any other person. Further, 
     the Secretary shall consult with the Secretary of Defense 
     regarding military operational needs in the outer Continental 
     Shelf. The Secretary shall work with the Secretary of Defense 
     to resolve any conflicts that might arise regarding offering 
     any area of the outer Continental Shelf for oil and gas or 
     natural gas leasing. If the Secretaries are not able to 
     resolve all such conflicts, any unresolved issues shall be 
     elevated to the President for resolution.
       ``(2) After the consideration and analysis required by 
     paragraph (1), including the consideration of the suggestions 
     received from any interested Federal agency, the Federal 
     Trade Commission, the Governor of any coastal State, any 
     local government of a coastal State, and any other person, 
     the Secretary shall publish in the Federal Register a 
     proposed leasing program accompanied by a draft environmental 
     impact statement prepared pursuant to the National 
     Environmental Policy Act of 1969. After the publishing of the 
     proposed leasing program and during the comment period 
     provided for on the draft environmental impact statement, the 
     Secretary shall submit a copy of the proposed program to the 
     Governor of each affected State for review and comment. The 
     Governor may solicit comments from those executives of local 
     governments in the Governor's State that the Governor, in the 
     discretion of the Governor, determines will be affected by 
     the proposed program. If any comment by such Governor is 
     received by the Secretary at least 15 days prior to 
     submission to the Congress pursuant to paragraph (3) and 
     includes a request for any modification of such proposed 
     program, the Secretary shall reply in writing, granting or 
     denying such request in whole or in part, or granting such 
     request in such modified form as the Secretary considers 
     appropriate, and stating the Secretary's reasons therefor. 
     All such correspondence between the Secretary and the 
     Governor of any affected State, together with any additional 
     information and data relating thereto, shall accompany such 
     proposed program when it is submitted to the Congress.''; and
       (3) by adding at the end the following:
       ``(i) Projection of State Adjacent Zone Resources and State 
     and Local Government Shares of OCS Receipts.--Concurrent with 
     the publication of the scoping notice at the beginning of the 
     development of each 5-Year Outer Continental Shelf Oil and 
     Gas Leasing Program, or as soon thereafter as possible, the 
     Secretary shall--
       ``(1) provide to each Adjacent State a current estimate of 
     proven and potential oil and gas resources located within the 
     State's Adjacent Zone; and
       ``(2) provide to each Adjacent State, and coastal political 
     subdivisions thereof, a best-efforts projection of the OCS 
     Receipts that the Secretary expects will be shared with each 
     Adjacent State, and its coastal political subdivisions, using 
     the assumption that the unleased tracts within the State's 
     Adjacent Zone are fully made available for leasing, including 
     long-term projected OCS Receipts. In addition, the Secretary 
     shall include a macroeconomic estimate of the impact of such 
     leasing on the national economy and each State's economy, 
     including investment, jobs, revenues, personal income, and 
     other categories.''.

     SEC. 113. COORDINATION WITH ADJACENT STATES.

       Section 19 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1345) is amended--
       (1) in subsection (a) in the first sentence by inserting 
     ``, for any tract located within the Adjacent State's 
     Adjacent Zone,'' after ``government''; and
       (2) by adding the following:
       ``(f)(1) No Federal agency may permit or otherwise approve, 
     without the concurrence of the Adjacent State, the 
     construction of a crude oil or petroleum products (or both) 
     pipeline within the part of the Adjacent State's Adjacent 
     Zone that is withdrawn from oil and gas or natural gas 
     leasing, except that such a pipeline may be approved, without 
     such Adjacent State's concurrence, to pass through such 
     Adjacent Zone if at least 50 percent of the production 
     projected to be carried by the pipeline within its first 10 
     years of operation is from areas of the Adjacent State's 
     Adjacent Zone.
       ``(2) No State may prohibit the construction within its 
     Adjacent Zone or its State waters of a natural gas pipeline 
     that will transport natural gas produced from the outer 
     Continental Shelf. However, an Adjacent State may prevent a 
     proposed natural gas pipeline landing location if it proposes 
     two alternate landing locations in the Adjacent State, 
     acceptable to the Adjacent State, located within 50 miles on 
     either side of the proposed landing location.''.

     SEC. 114. ENVIRONMENTAL STUDIES.

       Section 20(d) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1346) is amended--
       (1) by inserting ``(1)'' after ``(d)''; and
       (2) by adding at the end the following:
       ``(2) For all programs, lease sales, leases, and actions 
     under this Act, the following shall apply regarding the 
     application of the National Environmental Policy Act of 1969:
       ``(A) Granting or directing lease suspensions and the 
     conduct of all preliminary activities on outer Continental 
     Shelf tracts, including seismic activities, are categorically 
     excluded from the need to prepare either an environmental 
     assessment or an environmental impact statement, and the 
     Secretary shall not be required to analyze whether any 
     exceptions to a categorical exclusion apply for activities 
     conducted under the authority of this Act.
       ``(B) The environmental impact statement developed in 
     support of each 5-Year Oil and Gas Leasing Program provides 
     the environmental analysis for all lease sales to be 
     conducted under the program and such sales shall not be 
     subject to further environmental analysis.
       ``(C) Exploration plans shall not be subject to any 
     requirement to prepare an environmental impact statement, and 
     the Secretary may find that exploration plans are eligible 
     for categorical exclusion due to the impacts already being 
     considered within an environmental impact statement or due to 
     mitigation measures included within the plan.
       ``(D) Within each OCS Planning Area, after the preparation 
     of the first development and production plan environmental 
     impact statement for a leased tract within the Area, future 
     development and production plans for leased tracts within the 
     Area shall only require the preparation of an environmental 
     assessment unless the most recent development and production 
     plan environmental impact statement within the Area was 
     finalized

[[Page S7363]]

     more than 10 years prior to the date of the approval of the 
     plan, in which case an environmental impact statement shall 
     be required.''.

     SEC. 115. TERMINATION OF EFFECT OF LAWS PROHIBITING THE 
                   SPENDING OF APPROPRIATED FUNDS FOR CERTAIN 
                   PURPOSES.

       All provisions of existing Federal law prohibiting the 
     spending of appropriated funds to conduct oil and natural gas 
     leasing and preleasing activities, or to issue a lease to any 
     person, for any area of the outer Continental Shelf shall 
     have no force or effect.

     SEC. 116. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.

       (a) In General.--No Federal agency may permit construction 
     or operation (or both) of any facility, or designate or 
     maintain a restricted transportation corridor or operating 
     area on the Federal outer Continental Shelf or in State 
     waters, that will be incompatible with, as determined by the 
     Secretary of the Interior, oil and gas or natural gas leasing 
     and substantially full exploration and production of tracts 
     that are geologically prospective for oil or natural gas (or 
     both).
       (b) Exceptions.--Subsection (a) shall not apply to any 
     facility, transportation corridor, or operating area the 
     construction, operation, designation, or maintenance of which 
     is or will be--
       (1) located in an area of the outer Continental Shelf that 
     is unavailable for oil and gas or natural gas leasing by 
     operation of law;
       (2) used for a military readiness activity (as defined in 
     section 315(f) of Public Law 107-314; 16 U.S.C. 703 note); or
       (3) required in the national interest, as determined by the 
     President.

     SEC. 117. REPURCHASE OF CERTAIN LEASES.

       (a) Authority To Repurchase and Cancel Certain Leases.--The 
     Secretary of the Interior shall repurchase and cancel any 
     Federal oil and gas, geothermal, coal, oil shale, tar sands, 
     or other mineral lease, whether onshore or offshore, but not 
     including any outer Continental Shelf oil and gas leases that 
     were subject to litigation in the Court of Federal Claims on 
     January 1, 2006, if the Secretary finds that such lease 
     qualifies for repurchase and cancellation under the 
     regulations authorized by this section.
       (b) Regulations.--Not later than 365 days after the date of 
     the enactment of this Act, the Secretary shall publish a 
     final regulation stating the conditions under which a lease 
     referred to in subsection (a) would qualify for repurchase 
     and cancellation, and the process to be followed regarding 
     repurchase and cancellation. Such regulation shall include, 
     but not be limited to, the following:
       (1) The Secretary shall repurchase and cancel a lease after 
     written request by the lessee upon a finding by the Secretary 
     that--
       (A) a request by the lessee for a required permit or other 
     approval complied with applicable law, except the Coastal 
     Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), and 
     terms of the lease and such permit or other approval was 
     denied;
       (B) a Federal agency failed to act on a request by the 
     lessee for a required permit, other approval, or 
     administrative appeal within a regulatory or statutory time-
     frame associated with the requested action, whether advisory 
     or mandatory, or if none, within 180 days; or
       (C) a Federal agency attached a condition of approval, 
     without agreement by the lessee, to a required permit or 
     other approval if such condition of approval was not mandated 
     by Federal statute or regulation in effect on the date of 
     lease issuance, or was not specifically allowed under the 
     terms of the lease.
       (2) A lessee shall not be required to exhaust 
     administrative remedies regarding a permit request, 
     administrative appeal, or other required request for approval 
     for the purposes of this section.
       (3) The Secretary shall make a final agency decision on a 
     request by a lessee under this section within 180 days of 
     request.
       (4) Compensation to a lessee to repurchase and cancel a 
     lease under this section shall be the amount that a lessee 
     would receive in a restitution case for a material breach of 
     contract.
       (5) Compensation shall be in the form of a check or 
     electronic transfer from the Department of the Treasury from 
     funds deposited into miscellaneous receipts under the 
     authority of the same Act that authorized the issuance of the 
     lease being repurchased.
       (6) Failure of the Secretary to make a final agency 
     decision on a request by a lessee under this section within 
     180 days of request shall result in a 10 percent increase in 
     the compensation due to the lessee if the lease is ultimately 
     repurchased.
       (c) No Prejudice.--This section shall not be interpreted to 
     prejudice any other rights that the lessee would have in the 
     absence of this section.

     SEC. 118. OFFSITE ENVIRONMENTAL MITIGATION.

       Notwithstanding any other provision of law, any person 
     conducting activities under the Mineral Leasing Act (30 
     U.S.C. 181 et seq.), the Geothermal Steam Act (30 U.S.C. 1001 
     et seq.), the Mineral Leasing Act for Acquired Lands (30 
     U.S.C. 351 et seq.), the Weeks Act (16 U.S.C. 552 et seq.), 
     the General Mining Act of 1872 (30 U.S.C. 22 et seq.), the 
     Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in 
     satisfying any mitigation requirements associated with such 
     activities propose mitigation measures on a site away from 
     the area impacted and the Secretary of the Interior shall 
     accept these proposed measures if the Secretary finds that 
     they generally achieve the purposes for which mitigation 
     measures appertained.

     SEC. 119. OCS REGIONAL HEADQUARTERS.

       Not later than July 1, 2010, the Secretary of the Interior 
     shall establish the headquarters for the Atlantic OCS Region, 
     the headquarters for the Gulf of Mexico OCS Region, and the 
     headquarters for the Pacific OCS Region within a State 
     bordering the Atlantic OCS Region, a State bordering the Gulf 
     of Mexico OCS Region, and a State bordering the Pacific OCS 
     Region, respectively, from among the States bordering those 
     Regions, that petitions by no later than January 1, 2010, for 
     leasing, for oil and gas or natural gas, covering at least 40 
     percent of the area of its Adjacent Zone within 100 miles of 
     the coastline. Such Atlantic and Pacific OCS Regions 
     headquarters shall be located within 25 miles of the 
     coastline and each MMS OCS regional headquarters shall be the 
     permanent duty station for all Minerals Management Service 
     personnel that on a daily basis spend on average 60 percent 
     or more of their time in performance of duties in support of 
     the activities of the respective Region, except that the 
     Minerals Management Service may house regional inspection 
     staff in other locations. Each OCS Region shall each be led 
     by a Regional Director who shall be an employee within the 
     Senior Executive Service.

     SEC. 120. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF 
                   CALIFORNIA OR FLORIDA.

       (a) Authorization To Cancel and Exchange Certain Existing 
     Oil and Gas Leases; Prohibition on Submittal of Exploration 
     Plans for Certain Leases Prior to June 30, 2012.--
       (1) Authority.--Within 2 years after the date of enactment 
     of this Act, the lessee of an existing oil and gas lease for 
     an area located completely within 100 miles of the coastline 
     within the California or Florida Adjacent Zones shall have 
     the option, without compensation, of exchanging such lease 
     for a new oil and gas lease having a primary term of 5 years. 
     For the area subject to the new lease, the lessee may select 
     any unleased tract on the outer Continental Shelf that is in 
     an area available for leasing. Further, with the permission 
     of the relevant Governor, such a lessee may convert its 
     existing oil and gas lease into a natural gas lease having a 
     primary term of 5 years and covering the same area as the 
     existing lease or another area within the same State's 
     Adjacent Zone within 100 miles of the coastline.
       (2) Administrative process.--The Secretary of the Interior 
     shall establish a reasonable administrative process to 
     implement paragraph (1). Exchanges and conversions under 
     subsection (a), including the issuance of new leases, shall 
     not be considered to be major Federal actions for purposes of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.). Further, such actions conducted in accordance with 
     this section are deemed to be in compliance all provisions of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
     seq.).
       (3) Operating restrictions.--A new lease issued in exchange 
     for an existing lease under this section shall be subject to 
     such national defense operating stipulations on the OCS tract 
     covered by the new lease as may be applicable upon issuance.
       (4) Priority.--The Secretary shall give priority in the 
     lease exchange process based on the amount of the original 
     bonus bid paid for the issuance of each lease to be 
     exchanged. The Secretary shall allow leases covering partial 
     tracts to be exchanged for leases covering full tracts 
     conditioned upon payment of additional bonus bids on a per-
     acre basis as determined by the average per acre of the 
     original bonus bid per acre for the partial tract being 
     exchanged.
       (5) Exploration plans.--Any exploration plan submitted to 
     the Secretary of the Interior after the date of the enactment 
     of this Act and before July 1, 2012, for an oil and gas lease 
     for an area wholly within 100 miles of the coastline within 
     the California Adjacent Zone or Florida Adjacent Zone shall 
     not be treated as received by the Secretary until the earlier 
     of July 1, 2012, or the date on which a petition by the 
     Adjacent State for oil and gas leasing covering the area 
     within which is located the area subject to the oil and gas 
     lease was approved.
       (b) Further Lease Cancellation and Exchange Provisions.--
       (1) Cancellation of lease.--As part of the lease exchange 
     process under this section, the Secretary shall cancel a 
     lease that is exchanged under this section.
       (2) Consent of lessees.--All lessees holding an interest in 
     a lease must consent to cancellation of their leasehold 
     interests in order for the lease to be cancelled and 
     exchanged under this section.
       (3) Waiver of rights.--As a prerequisite to the exchange of 
     a lease under this section, the lessee must waive any rights 
     to bring any litigation against the United States related to 
     the transaction.
       (4) Plugging and abandonment.--The plugging and abandonment 
     requirements for any wells located on any lease to be 
     cancelled and exchanged under this section must be complied 
     with by the lessees prior to the cancellation and exchange.
       (c) Area Partially Within 100 Miles of Florida.--An 
     existing oil and gas lease for an area located partially 
     within 100 miles of the coastline within the Florida Adjacent 
     Zone may only be developed and produced using wells drilled 
     from well-head locations

[[Page S7364]]

     at least 100 miles from the coastline to any bottom-hole 
     location on the area of the lease. This subsection shall not 
     apply if Florida has petitioned for leasing closer to the 
     coastline than 100 miles.
       (d) Existing Oil and Gas Lease Defined.--In this section 
     the term ``existing oil and gas lease'' means an oil and gas 
     lease in effect on the date of the enactment of this Act.

     SEC. 121. COASTAL IMPACT ASSISTANCE.

       Section 31 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1356a) is repealed.

     SEC. 122. REPEAL OF THE GULF OF MEXICO ENERGY SECURITY ACT OF 
                   2006.

       The Gulf of Mexico Energy Security Act of 2006 is repealed 
     effective October 1, 2008.

                            Subtitle B--ANWR

     SEC. 141. SHORT TITLE.

       This subtitle may be cited as the ``American Energy 
     Independence and Price Reduction Act''.

     SEC. 142. DEFINITIONS.

       In this subtitle:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area described in appendix I to part 37 of title 50, Code of 
     Federal Regulations.
       (2) Secretary.--The term ``Secretary'', except as otherwise 
     provided, means the Secretary of the Interior or the 
     Secretary's designee.

     SEC. 143. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

       (a) In General.--The Secretary shall take such actions as 
     are necessary--
       (1) to establish and implement, in accordance with this 
     subtitle and acting through the Director of the Bureau of 
     Land Management in consultation with the Director of the 
     United States Fish and Wildlife Service, a competitive oil 
     and gas leasing program that will result in an 
     environmentally sound program for the exploration, 
     development, and production of the oil and gas resources of 
     the Coastal Plain; and
       (2) to administer the provisions of this subtitle through 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, and other provisions that ensure 
     the oil and gas exploration, development, and production 
     activities on the Coastal Plain will result in no significant 
     adverse effect on fish and wildlife, their habitat, 
     subsistence resources, and the environment, including, in 
     furtherance of this goal, by requiring the application of the 
     best commercially available technology for oil and gas 
     exploration, development, and production to all exploration, 
     development, and production operations under this subtitle in 
     a manner that ensures the receipt of fair market value by the 
     public for the mineral resources to be leased.
       (b) Repeal.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents in section 
     1 of such Act is amended by striking the item relating to 
     section 1003.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
     seq.), the oil and gas leasing program and activities 
     authorized by this section in the Coastal Plain are deemed to 
     be compatible with the purposes for which the Arctic National 
     Wildlife Refuge was established, and no further findings or 
     decisions are required to implement this determination.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain prepared pursuant to section 1002 of the 
     Alaska National Interest Lands Conservation Act of 1980 (16 
     U.S.C. 3142) and section 102(2)(C) of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
     deemed to satisfy the requirements under the National 
     Environmental Policy Act of 1969 that apply with respect to 
     prelease activities, including actions authorized to be taken 
     by the Secretary to develop and promulgate the regulations 
     for the establishment of a leasing program authorized by this 
     subtitle before the conduct of the first lease sale.
       (3) Compliance with nepa for other actions.--Before 
     conducting the first lease sale under this subtitle, the 
     Secretary shall prepare an environmental impact statement 
     under the National Environmental Policy Act of 1969 with 
     respect to the actions authorized by this subtitle that are 
     not referred to in paragraph (2). Notwithstanding any other 
     law, the Secretary is not required to identify nonleasing 
     alternative courses of action or to analyze the environmental 
     effects of such courses of action. The Secretary shall only 
     identify a preferred action for such leasing and a single 
     leasing alternative, and analyze the environmental effects 
     and potential mitigation measures for those two alternatives. 
     The identification of the preferred action and related 
     analysis for the first lease sale under this subtitle shall 
     be completed within 18 months after the date of enactment of 
     this Act. The Secretary shall only consider public comments 
     that specifically address the Secretary's preferred action 
     and that are filed within 20 days after publication of an 
     environmental analysis. Notwithstanding any other law, 
     compliance with this paragraph is deemed to satisfy all 
     requirements for the analysis and consideration of the 
     environmental effects of proposed leasing under this 
     subtitle.
       (d) Relationship to State and Local Authority.--Nothing in 
     this subtitle shall be considered to expand or limit State 
     and local regulatory authority.
       (e) Special Areas.--
       (1) In general.--The Secretary, after consultation with the 
     State of Alaska, the city of Kaktovik, and the North Slope 
     Borough, may designate up to a total of 45,000 acres of the 
     Coastal Plain as a Special Area if the Secretary determines 
     that the Special Area is of such unique character and 
     interest so as to require special management and regulatory 
     protection. The Secretary shall designate as such a Special 
     Area the Sadlerochit Spring area, comprising approximately 
     4,000 acres.
       (2) Management.--Each such Special Area shall be managed so 
     as to protect and preserve the area's unique and diverse 
     character including its fish, wildlife, and subsistence 
     resource values.
       (3) Exclusion from leasing or surface occupancy.--The 
     Secretary may exclude any Special Area from leasing. If the 
     Secretary leases a Special Area, or any part thereof, for 
     purposes of oil and gas exploration, development, production, 
     and related activities, there shall be no surface occupancy 
     of the lands comprising the Special Area.
       (4) Directional drilling.--Notwithstanding the other 
     provisions of this subsection, the Secretary may lease all or 
     a portion of a Special Area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the Special Area.
       (f) Limitation on Closed Areas.--The Secretary's sole 
     authority to close lands within the Coastal Plain to oil and 
     gas leasing and to exploration, development, and production 
     is that set forth in this subtitle.
       (g) Regulations.--
       (1) In general.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out this subtitle, 
     including rules and regulations relating to protection of the 
     fish and wildlife, their habitat, subsistence resources, and 
     environment of the Coastal Plain, by no later than 15 months 
     after the date of enactment of this Act.
       (2) Revision of regulations.--The Secretary shall 
     periodically review and, if appropriate, revise the rules and 
     regulations issued under subsection (a) to reflect any 
     significant biological, environmental, or engineering data 
     that come to the Secretary's attention.

     SEC. 144. LEASE SALES.

       (a) In General.--Lands may be leased pursuant to this 
     subtitle to any person qualified to obtain a lease for 
     deposits of oil and gas under the Mineral Leasing Act (30 
     U.S.C. 181 et seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after such nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this 
     subtitle shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--In the first lease sale 
     under this subtitle, the Secretary shall offer for lease 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons, taking into 
     consideration nominations received pursuant to subsection 
     (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) conduct the first lease sale under this subtitle within 
     22 months after the date of the enactment of this Act;
       (2) evaluate the bids in such sale and issue leases 
     resulting from such sale, within 90 days after the date of 
     the completion of such sale; and
       (3) conduct additional sales so long as sufficient interest 
     in development exists to warrant, in the Secretary's 
     judgment, the conduct of such sales.

     SEC. 145. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--The Secretary may grant to the highest 
     responsible qualified bidder in a lease sale conducted 
     pursuant to section 144 any lands to be leased on the Coastal 
     Plain upon payment by the lessee of such bonus as may be 
     accepted by the Secretary.
       (b) Subsequent Transfers.--No lease issued under this 
     subtitle may be sold, exchanged, assigned, sublet, or 
     otherwise transferred except with the approval of the 
     Secretary. Prior to any such approval the Secretary shall 
     consult with, and give due consideration to the views of, the 
     Attorney General.

     SEC. 146. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this subtitle shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent in amount or value of the production removed 
     or sold from the lease, as determined by the Secretary under 
     the regulations applicable to other Federal oil and gas 
     leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, portions of the Coastal Plain to exploratory drilling 
     activities as necessary to protect caribou calving areas and 
     other species of fish and wildlife;
       (3) require that the lessee of lands within the Coastal 
     Plain shall be fully responsible

[[Page S7365]]

     and liable for the reclamation of lands within the Coastal 
     Plain and any other Federal lands that are adversely affected 
     in connection with exploration, development, production, or 
     transportation activities conducted under the lease and 
     within the Coastal Plain by the lessee or by any of the 
     subcontractors or agents of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, the reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for lands 
     required to be reclaimed under this subtitle shall be, as 
     nearly as practicable, a condition capable of supporting the 
     uses which the lands were capable of supporting prior to any 
     exploration, development, or production activities, or upon 
     application by the lessee, to a higher or better use as 
     approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, their habitat, subsistence resources, and 
     the environment as required pursuant to section 143(a)(2);
       (7) provide that the lessee, its agents, and its 
     contractors use best efforts to provide a fair share, as 
     determined by the level of obligation previously agreed to in 
     the 1974 agreement implementing section 29 of the Federal 
     Agreement and Grant of Right of Way for the Operation of the 
     Trans-Alaska Pipeline, of employment and contracting for 
     Alaska Natives and Alaska Native Corporations from throughout 
     the State;
       (8) prohibit the export of oil produced under the lease; 
     and
       (9) contain such other provisions as the Secretary 
     determines necessary to ensure compliance with the provisions 
     of this subtitle and the regulations issued under this 
     subtitle.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this subtitle and in 
     recognizing the Government's proprietary interest in labor 
     stability and in the ability of construction labor and 
     management to meet the particular needs and conditions of 
     projects to be developed under the leases issued pursuant to 
     this subtitle and the special concerns of the parties to such 
     leases, shall require that the lessee and its agents and 
     contractors negotiate to obtain a project labor agreement for 
     the employment of laborers and mechanics on production, 
     maintenance, and construction under the lease.

     SEC. 147. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard To Govern 
     Authorized Coastal Plain Activities.--The Secretary shall, 
     consistent with the requirements of section 143, administer 
     the provisions of this subtitle through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (1) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, and the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum amount of surface acreage 
     covered by production and support facilities, including 
     airstrips and any areas covered by gravel berms or piers for 
     support of pipelines, does not exceed 2,000 acres on the 
     Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall also require, with respect to any proposed drilling and 
     related activities, that--
       (1) a site-specific analysis be made of the probable 
     effects, if any, that the drilling or related activities will 
     have on fish and wildlife, their habitat, subsistence 
     resources, and the environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the extent practicable) any significant 
     adverse effect identified under paragraph (1); and
       (3) the development of the plan shall occur after 
     consultation with the agency or agencies having jurisdiction 
     over matters mitigated by the plan.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this subtitle, 
     the Secretary shall prepare and promulgate regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other measures designed to ensure that the activities 
     undertaken on the Coastal Plain under this subtitle are 
     conducted in a manner consistent with the purposes and 
     environmental requirements of this subtitle.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this subtitle 
     shall require compliance with all applicable provisions of 
     Federal and State environmental law, and shall also require 
     the following:
       (1) Standards at least as effective as the safety and 
     environmental mitigation measures set forth in items 1 
     through 29 at pages 167 through 169 of the ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain.
       (2) Seasonal limitations on exploration, development, and 
     related activities, where necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration.
       (3) That exploration activities, except for surface 
     geological studies, be limited to the period between 
     approximately November 1 and May 1 each year and that 
     exploration activities shall be supported, if necessary, by 
     ice roads, winter trails with adequate snow cover, ice pads, 
     ice airstrips, and air transport methods, except that such 
     exploration activities may occur at other times if the 
     Secretary finds that such exploration will have no 
     significant adverse effect on the fish and wildlife, their 
     habitat, and the environment of the Coastal Plain.
       (4) Design safety and construction standards for all 
     pipelines and any access and service roads, that--
       (A) minimize, to the maximum extent possible, adverse 
     effects upon the passage of migratory species such as 
     caribou; and
       (B) minimize adverse effects upon the flow of surface water 
     by requiring the use of culverts, bridges, and other 
     structural devices.
       (5) Prohibitions on general public access and use on all 
     pipeline access and service roads.
       (6) Stringent reclamation and rehabilitation requirements, 
     consistent with the standards set forth in this subtitle, 
     requiring the removal from the Coastal Plain of all oil and 
     gas development and production facilities, structures, and 
     equipment upon completion of oil and gas production 
     operations, except that the Secretary may exempt from the 
     requirements of this paragraph those facilities, structures, 
     or equipment that the Secretary determines would assist in 
     the management of the Arctic National Wildlife Refuge and 
     that are donated to the United States for that purpose.
       (7) Appropriate prohibitions or restrictions on access by 
     all modes of transportation.
       (8) Appropriate prohibitions or restrictions on sand and 
     gravel extraction.
       (9) Consolidation of facility siting.
       (10) Appropriate prohibitions or restrictions on use of 
     explosives.
       (11) Avoidance, to the extent practicable, of springs, 
     streams, and river system; the protection of natural surface 
     drainage patterns, wetlands, and riparian habitats; and the 
     regulation of methods or techniques for developing or 
     transporting adequate supplies of water for exploratory 
     drilling.
       (12) Avoidance or minimization of air traffic-related 
     disturbance to fish and wildlife.
       (13) Treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including an annual waste management 
     report, a hazardous materials tracking system, and a 
     prohibition on chlorinated solvents, in accordance with 
     applicable Federal and State environmental law.
       (14) Fuel storage and oil spill contingency planning.
       (15) Research, monitoring, and reporting requirements.
       (16) Field crew environmental briefings.
       (17) Avoidance of significant adverse effects upon 
     subsistence hunting, fishing, and trapping by subsistence 
     users.
       (18) Compliance with applicable air and water quality 
     standards.
       (19) Appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited.
       (20) Reasonable stipulations for protection of cultural and 
     archeological resources.
       (21) All other protective environmental stipulations, 
     restrictions, terms, and conditions deemed necessary by the 
     Secretary.
       (e) Considerations.--In preparing and promulgating 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, and stipulations under this section, the 
     Secretary shall consider the following:
       (1) The stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement.
       (2) The environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 to 37.33 of title 50, Code of Federal 
     Regulations.
       (3) The land use stipulations for exploratory drilling on 
     the KIC-ASRC private lands that are set forth in Appendix 2 
     of the August 9, 1983, agreement between Arctic Slope 
     Regional Corporation and the United States.
       (f) Facility Consolidation Planning.--
       (1) In general.--The Secretary shall, after providing for 
     public notice and comment, prepare and update periodically a 
     plan to govern, guide, and direct the siting and construction 
     of facilities for the exploration, development, production, 
     and transportation of Coastal Plain oil and gas resources.
       (2) Objectives.--The plan shall have the following 
     objectives:
       (A) Avoiding unnecessary duplication of facilities and 
     activities.
       (B) Encouraging consolidation of common facilities and 
     activities.
       (C) Locating or confining facilities and activities to 
     areas that will minimize impact on fish and wildlife, their 
     habitat, and the environment.
       (D) Utilizing existing facilities wherever practicable.
       (E) Enhancing compatibility between wildlife values and 
     development activities.

[[Page S7366]]

       (g) Access to Public Lands.--The Secretary shall--
       (1) manage public lands in the Coastal Plain subject to 
     subsections (a) and (b) of section 811 of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3121); and
       (2) ensure that local residents shall have reasonable 
     access to public lands in the Coastal Plain for traditional 
     uses.

     SEC. 148. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaint.--
       (1) Deadline.--Subject to paragraph (2), any complaint 
     seeking judicial review of any provision of this subtitle or 
     any action of the Secretary under this subtitle shall be 
     filed--
       (A) except as provided in subparagraph (B), within the 90-
     day period beginning on the date of the action being 
     challenged; or
       (B) in the case of a complaint based solely on grounds 
     arising after such period, within 90 days after the 
     complainant knew or reasonably should have known of the 
     grounds for the complaint.
       (2) Venue.--Any complaint seeking judicial review of any 
     provision of this subtitle or any action of the Secretary 
     under this subtitle may be filed only in the United States 
     Court of Appeals for the District of Columbia.
       (3) Limitation on scope of certain review.--Judicial review 
     of a Secretarial decision to conduct a lease sale under this 
     subtitle, including the environmental analysis thereof, shall 
     be limited to whether the Secretary has complied with the 
     terms of this subtitle and shall be based upon the 
     administrative record of that decision. The Secretary's 
     identification of a preferred course of action to enable 
     leasing to proceed and the Secretary's analysis of 
     environmental effects under this subtitle shall be presumed 
     to be correct unless shown otherwise by clear and convincing 
     evidence to the contrary.
       (b) Limitation on Other Review.--Actions of the Secretary 
     with respect to which review could have been obtained under 
     this section shall not be subject to judicial review in any 
     civil or criminal proceeding for enforcement.

     SEC. 149. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

       (a) In General.--Notwithstanding any other provision of 
     law, of the amount of adjusted bonus, rental, and royalty 
     revenues from Federal oil and gas leasing and operations 
     authorized under this subtitle--
       (1) 50 percent shall be paid to the State of Alaska; and
       (2) except as provided in section 152(d), 90 percent of the 
     balance shall be deposited into the American Renewable and 
     Alternative Energy Trust Fund established by section 331.
       (b) Payments to Alaska.--Payments to the State of Alaska 
     under this section shall be made semiannually.

     SEC. 150. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

       (a) In General.--The Secretary shall issue rights-of-way 
     and easements across the Coastal Plain for the transportation 
     of oil and gas--
       (1) except as provided in paragraph (2), under section 28 
     of the Mineral Leasing Act (30 U.S.C. 185), without regard to 
     title XI of the Alaska National Interest Lands Conservation 
     Act (30 U.S.C. 3161 et seq.); and
       (2) under title XI of the Alaska National Interest Lands 
     Conservation Act (30 U.S.C. 3161 et seq.), for access 
     authorized by sections 1110 and 1111 of that Act (16 U.S.C. 
     3170 and 3171).
       (b) Terms and Conditions.--The Secretary shall include in 
     any right-of-way or easement issued under subsection (a) such 
     terms and conditions as may be necessary to ensure that 
     transportation of oil and gas does not result in a 
     significant adverse effect on the fish and wildlife, 
     subsistence resources, their habitat, and the environment of 
     the Coastal Plain, including requirements that facilities be 
     sited or designed so as to avoid unnecessary duplication of 
     roads and pipelines.
       (c) Regulations.--The Secretary shall include in 
     regulations under section 143(g) provisions granting rights-
     of-way and easements described in subsection (a) of this 
     section.

     SEC. 151. CONVEYANCE.

       In order to maximize Federal revenues by removing clouds on 
     title to lands and clarifying land ownership patterns within 
     the Coastal Plain, the Secretary, notwithstanding the 
     provisions of section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), shall 
     convey--
       (1) to the Kaktovik Inupiat Corporation the surface estate 
     of the lands described in paragraph 1 of Public Land Order 
     6959, to the extent necessary to fulfill the Corporation's 
     entitlement under sections 12 and 14 of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance 
     with the terms and conditions of the Agreement between the 
     Department of the Interior, the United States Fish and 
     Wildlife Service, the Bureau of Land Management, and the 
     Kaktovik Inupiat Corporation effective January 22, 1993; and
       (2) to the Arctic Slope Regional Corporation the remaining 
     subsurface estate to which it is entitled pursuant to the 
     August 9, 1983, agreement between the Arctic Slope Regional 
     Corporation and the United States of America.

     SEC. 152. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Financial Assistance Authorized.--
       (1) In general.--The Secretary may use amounts available 
     from the Coastal Plain Local Government Impact Aid Assistance 
     Fund established by subsection (d) to provide timely 
     financial assistance to entities that are eligible under 
     paragraph (2) and that are directly impacted by the 
     exploration for or production of oil and gas on the Coastal 
     Plain under this subtitle.
       (2) Eligible entities.--The North Slope Borough, the City 
     of Kaktovik, and any other borough, municipal subdivision, 
     village, or other community in the State of Alaska that is 
     directly impacted by exploration for, or the production of, 
     oil or gas on the Coastal Plain under this subtitle, as 
     determined by the Secretary, shall be eligible for financial 
     assistance under this section.
       (b) Use of Assistance.--Financial assistance under this 
     section may be used only for--
       (1) planning for mitigation of the potential effects of oil 
     and gas exploration and development on environmental, social, 
     cultural, recreational, and subsistence values;
       (2) implementing mitigation plans and maintaining 
     mitigation projects;
       (3) developing, carrying out, and maintaining projects and 
     programs that provide new or expanded public facilities and 
     services to address needs and problems associated with such 
     effects, including fire-fighting, police, water, waste 
     treatment, medivac, and medical services; and
       (4) establishment of a coordination office, by the North 
     Slope Borough, in the City of Kaktovik, which shall--
       (A) coordinate with and advise developers on local 
     conditions, impact, and history of the areas utilized for 
     development; and
       (B) provide to the Committee on Resources of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate an annual report on the status of 
     coordination between developers and the communities affected 
     by development.
       (c) Application.--
       (1) In general.--Any community that is eligible for 
     assistance under this section may submit an application for 
     such assistance to the Secretary, in such form and under such 
     procedures as the Secretary may prescribe by regulation.
       (2) North slope borough communities.--A community located 
     in the North Slope Borough may apply for assistance under 
     this section either directly to the Secretary or through the 
     North Slope Borough.
       (3) Application assistance.--The Secretary shall work 
     closely with and assist the North Slope Borough and other 
     communities eligible for assistance under this section in 
     developing and submitting applications for assistance under 
     this section.
       (d) Establishment of Fund.--
       (1) In general.--There is established in the Treasury the 
     Coastal Plain Local Government Impact Aid Assistance Fund.
       (2) Use.--Amounts in the fund may be used only for 
     providing financial assistance under this section.
       (3) Deposits.--Subject to paragraph (4), there shall be 
     deposited into the fund amounts received by the United States 
     as revenues derived from rents, bonuses, and royalties from 
     Federal leases and lease sales authorized under this 
     subtitle.
       (4) Limitation on deposits.--The total amount in the fund 
     may not exceed $11,000,000.
       (5) Investment of balances.--The Secretary of the Treasury 
     shall invest amounts in the fund in interest bearing 
     government securities.
       (e) Authorization of Appropriations.--To provide financial 
     assistance under this section there is authorized to be 
     appropriated to the Secretary from the Coastal Plain Local 
     Government Impact Aid Assistance Fund $5,000,000 for each 
     fiscal year.

                         Subtitle C--Oil Shale

     SEC. 161. REPEAL.

       Section 433 of the Consolidated Appropriations Act, 2008 is 
     repealed.

                 TITLE II--CONSERVATION AND EFFICIENCY

             Subtitle A--Tax Incentives for Fuel Efficiency

     SEC. 201. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
                   MOTOR VEHICLES.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
                   VEHICLES.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of the credit amounts 
     determined under subsection (b) with respect to each new 
     qualified plug-in electric drive motor vehicle placed in 
     service by the taxpayer during the taxable year.
       ``(b) Per Vehicle Dollar Limitation.--
       ``(1) In general.--The amount determined under this 
     subsection with respect to any new qualified plug-in electric 
     drive motor vehicle is the sum of the amounts determined 
     under paragraphs (2) and (3) with respect to such vehicle.
       ``(2) Base amount.--The amount determined under this 
     paragraph is $3,000.
       ``(3) Battery capacity.--In the case of a vehicle which 
     draws propulsion energy from a battery with not less than 5 
     kilowatt hours of capacity, the amount determined under this 
     paragraph is $200, plus $200 for each kilowatt hour of 
     capacity in excess of 5 kilowatt hours. The amount determined 
     under this paragraph shall not exceed $2,000.

[[Page S7367]]

       ``(c) 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.--
       ``(A) In general.--For purposes of this title, the credit 
     allowed under subsection (a) for any taxable year (determined 
     after application of paragraph (1)) shall be treated as a 
     credit allowable under subpart A for such taxable year.
       ``(B) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     (determined after application of paragraph (1)) shall not 
     exceed the excess of--
       ``(i) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(ii) the sum of the credits allowable under subpart A 
     (other than this section and sections 23 and 25D) and section 
     27 for the taxable year.
       ``(d) New Qualified Plug-In Electric Drive Motor Vehicle.--
     For purposes of this section--
       ``(1) In general.--The term `new qualified plug-in electric 
     drive motor vehicle' means a motor vehicle (as defined in 
     section 30(c)(2))--
       ``(A) the original use of which commences with the 
     taxpayer,
       ``(B) which is acquired for use or lease by the taxpayer 
     and not for resale,
       ``(C) which is made by a manufacturer,
       ``(D) which has a gross vehicle weight rating of less than 
     14,000 pounds,
       ``(E) which has received a certificate of conformity under 
     the Clean Air Act and meets or exceeds 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
       ``(F) which is propelled to a significant extent by an 
     electric motor which draws electricity from a battery which--
       ``(i) has a capacity of not less than 4 kilowatt hours, and
       ``(ii) is capable of being recharged from an external 
     source of electricity.
       ``(2) Exception.--The term `new qualified plug-in electric 
     drive motor vehicle' shall not include any vehicle which is 
     not a passenger automobile or light truck if such vehicle has 
     a gross vehicle weight rating of less than 8,500 pounds.
       ``(3) Other terms.--The terms `passenger automobile', 
     `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.).
       ``(4) Battery capacity.--The term `capacity' means, with 
     respect to any battery, the quantity of electricity which the 
     battery is capable of storing, expressed in kilowatt hours, 
     as measured from a 100 percent state of charge to a 0 percent 
     state of charge.
       ``(e) Limitation on Number of New Qualified Plug-In 
     Electric Drive Motor Vehicles Eligible for Credit.--
       ``(1) In general.--In the case of a new qualified plug-in 
     electric drive motor vehicle sold during the phaseout period, 
     only the applicable percentage of the credit otherwise 
     allowable under subsection (a) shall be allowed.
       ``(2) Phaseout period.--For purposes of this subsection, 
     the phaseout period is the period beginning with the second 
     calendar quarter following the calendar quarter which 
     includes the first date on which the number of new qualified 
     plug-in electric drive motor vehicles manufactured by the 
     manufacturer of the vehicle referred to in paragraph (1) sold 
     for use in the United States after the date of the enactment 
     of this section, is at least 60,000.
       ``(3) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is--
       ``(A) 50 percent for the first 2 calendar quarters of the 
     phaseout period,
       ``(B) 25 percent for the 3d and 4th calendar quarters of 
     the phaseout period, and
       ``(C) 0 percent for each calendar quarter thereafter.
       ``(4) Controlled groups.--Rules similar to the rules of 
     section 30B(f)(4) shall apply for purposes of this 
     subsection.
       ``(f) Special Rules.--
       ``(1) Basis reduction.--The basis of any property for which 
     a credit is allowable under subsection (a) shall be reduced 
     by the amount of such credit (determined without regard to 
     subsection (c)).
       ``(2) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit.
       ``(3) Property used outside united states, etc., not 
     qualified.--No credit shall be allowed 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 to not have this section apply to such vehicle.
       ``(5) Property used by tax-exempt entity; interaction with 
     air quality and motor vehicle safety standards.--Rules 
     similar to the rules of paragraphs (6) and (10) of section 
     30B(h) shall apply for purposes of this section.''.
       (b) Coordination With Alternative Motor Vehicle Credit.--
     Section 30B(d)(3) of such Code is amended by adding at the 
     end the following new subparagraph:
       ``(D) Exclusion of plug-in vehicles.--Any vehicle with 
     respect to which a credit is allowable under section 30D 
     (determined without regard to subsection (c) thereof) shall 
     not be taken into account under this section.''.
       (c) Credit Made Part of General Business Credit.--Section 
     38(b) of such Code is amended--
       (1) by striking ``and'' each place it appears at the end of 
     any paragraph,
       (2) by striking ``plus'' each place it appears at the end 
     of any paragraph,
       (3) by striking the period at the end of paragraph (31) and 
     inserting ``, plus'', and
       (4) by adding at the end the following new paragraph:
       ``(32) the portion of the new qualified plug-in electric 
     drive motor vehicle credit to which section 30D(c)(1) 
     applies.''.
       (d) Conforming Amendments.--
       (1)(A) Section 24(b)(3)(B) of such Code is amended by 
     striking ``and 25D'' and inserting ``25D, and 30D''.
       (B) Section 25(e)(1)(C)(ii) of such Code is amended by 
     inserting ``30D,'' after ``25D,''.
       (C) Section 25B(g)(2) of such Code is amended by striking 
     ``and 25D'' and inserting ``, 25D, and 30D''.
       (D) Section 26(a)(1) of such Code is amended by striking 
     ``and 25D'' and inserting ``25D, and 30D''.
       (E) Section 1400C(d)(2) of such Code is amended by striking 
     ``and 25D'' and inserting ``25D, and 30D''.
       (2) Section 1016(a) of such Code is amended by striking 
     ``and'' at the end of paragraph (35), by striking the period 
     at the end of paragraph (36) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(37) to the extent provided in section 30D(f)(1).''.
       (3) Section 6501(m) of such Code is amended by inserting 
     ``30D(f)(4),'' after ``30C(e)(5),''.
       (4) 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 plug-in electric drive motor vehicles.''.

       (e) Treatment of Alternative Motor Vehicle Credit as a 
     Personal Credit.--
       (1) In general.--Paragraph (2) of section 30B(g) of such 
     Code is amended to read as follows:
       ``(2) Personal credit.--The credit allowed under subsection 
     (a) for any taxable year (after application of paragraph (1)) 
     shall be treated as a credit allowable under subpart A for 
     such taxable year.''.
       (2) Conforming amendments.--
       (A) Subparagraph (A) of section 30C(d)(2) of such Code is 
     amended by striking ``sections 27, 30, and 30B'' and 
     inserting ``sections 27 and 30''.
       (B) Paragraph (3) of section 55(c) of such Code is amended 
     by striking ``30B(g)(2),''.
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years beginning after December 31, 2008.
       (2) Treatment of alternative motor vehicle credit as 
     personal credit.--The amendments made by subsection (e) shall 
     apply to taxable years beginning after December 31, 2007.
       (g) Application of EGTRRA Sunset.--The amendment made by 
     subsection (d)(1)(A) shall be subject to title IX of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 in 
     the same manner as the provision of such Act to which such 
     amendment relates.

     SEC. 202. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLES.

       Paragraph (4) of section 30B(j) of the Internal Revenue 
     Code of 1986 is amended by striking ``December 31, 2010'' and 
     inserting ``December 31, 2014''.

     SEC. 203. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING 
                   PROPERTY CREDIT.

       Paragraph (1) of section 30C(g) of the Internal Revenue 
     Code of 1986 is amended by striking ``hydrogen,'' inserting 
     ``hydrogen or alternative fuels (as defined in section 
     30B(e)(4)(B)),''.

         Subtitle B--Tapping America's Ingenuity and Creativity

     SEC. 211. DEFINITIONS.

       In this subtitle:
       (1) Administering entity.--The term ``administering 
     entity'' means the entity with which the Secretary enters 
     into an agreement under section 214(c).
       (2) Department.--The term ``Department'' means the 
     Department of Energy.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 212. STATEMENT OF POLICY.

       It is the policy of the United States to provide incentives 
     to encourage the development and implementation of innovative 
     energy technologies and new energy sources that will reduce 
     our reliance on foreign energy.

     SEC. 213. PRIZE AUTHORITY.

       (a) In General.--The Secretary shall carry out a program to 
     competitively award cash

[[Page S7368]]

     prizes in conformity with this subtitle to advance the 
     research, development, demonstration, and commercial 
     application of innovative energy technologies and new energy 
     sources.
       (b) Advertising and Solicitation of Competitors.--
       (1) Advertising.--The Secretary shall widely advertise 
     prize competitions to encourage broad participation in the 
     program carried out under subsection (a), including 
     individuals, universities, communities, and large and small 
     businesses.
       (2) Announcement through federal register notice.--The 
     Secretary shall announce each prize competition by publishing 
     a notice in the Federal Register. This notice shall include 
     essential elements of the competition such as the subject of 
     the competition, the duration of the competition, the 
     eligibility requirements for participation in the 
     competition, the process for participants to register for the 
     competition, the amount of the prize, and the criteria for 
     awarding the prize.
       (c) Administering the Competition.--The Secretary may enter 
     into an agreement with a private, nonprofit entity to 
     administer the prize competitions, subject to the provisions 
     of this subtitle. The administering entity shall perform the 
     following functions:
       (1) Advertise the competition and its results.
       (2) Raise funds from private entities and individuals to 
     pay for administrative costs and cash prizes.
       (3) Develop, in consultation with and subject to the final 
     approval of the Secretary, criteria to select winners based 
     upon the goal of safely and adequately storing nuclear used 
     fuel.
       (4) Determine, in consultation with and subject to the 
     final approval of the Secretary, the appropriate amount of 
     the awards.
       (5) Protect against the administering entity's unauthorized 
     use or disclosure of a registered participant's intellectual 
     property, trade secrets, and confidential business 
     information. Any information properly identified as trade 
     secrets or confidential business information that is 
     submitted by a participant as part of a competitive program 
     under this subtitle may be withheld from public disclosure.
       (6) Develop and promulgate sufficient rules to define the 
     parameters of designing and proposing innovative energy 
     technologies and new energy sources with input from industry, 
     citizens, and corporations familiar with such activities.
       (d) Funding Sources.--Prizes under this subtitle may 
     consist of Federal appropriated funds, funds provided by the 
     administering entity, or funds raised through grants or 
     donations. The Secretary may accept funds from other Federal 
     agencies for such cash prizes and, notwithstanding section 
     3302(b) of title 31, United States Code, may use such funds 
     for the cash prize program. Other than publication of the 
     names of prize sponsors, the Secretary may not give any 
     special consideration to any private sector entity or 
     individual in return for a donation to the Secretary or 
     administering entity.
       (e) Announcement of Prizes.--The Secretary may not publish 
     a notice required by subsection (b)(2) until all the funds 
     needed to pay out the announced amount of the prize have been 
     appropriated to the Department or the Department has received 
     from the administering entity a written commitment to provide 
     all necessary funds.

     SEC. 214. ELIGIBILITY.

       To be eligible to win a prize under this subtitle, an 
     individual or entity--
       (1) shall notify the administering entity of intent to 
     submit ideas and intent to collect the prize upon selection;
       (2) shall comply with all the requirements stated in the 
     Federal Register notice required under section 213(b)(2);
       (3) in the case of a private entity, shall be incorporated 
     in and maintain a primary place of business in the United 
     States, and in the case of an individual, whether 
     participating singly or in a group, shall be a citizen of the 
     United States;
       (4) shall not be a Federal entity, a Federal employee 
     acting within the scope of his or her employment, or an 
     employee of a national laboratory acting within the scope of 
     employment;
       (5) shall not use Federal funding or other Federal 
     resources to compete for the prize; and
       (6) shall not be an entity acting on behalf of any foreign 
     government or agent.

     SEC. 215. INTELLECTUAL PROPERTY.

       The Federal Government shall not, by virtue of offering or 
     awarding a prize under this subtitle, be entitled to any 
     intellectual property rights derived as a consequence of, or 
     in direct relation to, the participation by a registered 
     participant in a competition authorized by this subtitle. 
     This section shall not be construed to prevent the Federal 
     Government from negotiating a license for the use of 
     intellectual property developed for a prize competition under 
     this subtitle. The Federal Government may seek assurances 
     that technologies for which prizes are awarded under this 
     subtitle are offered for commercialization in the event an 
     award recipient does not take, or is not expected to take 
     within a reasonable time, effective steps to achieve 
     practical application of the technology.

     SEC. 216. WAIVER OF LIABILITY.

       The Secretary may require registered participants to waive 
     claims against the Federal Government and the administering 
     entity (except claims for willful misconduct) for any injury, 
     death, damage, or loss of property, revenue, or profits 
     arising from the registered participants' participation in a 
     competition under this subtitle. The Secretary shall give 
     notice of any waiver required under this section in the 
     notice required by section 213(b)(2). The Secretary may not 
     require a registered participant to waive claims against the 
     administering entity arising out of the unauthorized use or 
     disclosure by the administering entity of the registered 
     participant's intellectual property, trade secrets, or 
     confidential business information.

     SEC. 217. AUTHORIZATION OF APPROPRIATIONS.

       (a) Awards.--40 percent of amounts in the American Energy 
     Trust Fund shall be available without further appropriation 
     to carry out specified provisions of this section.
       (b) Treatment of Awards.--Amounts received pursuant to an 
     award under this subtitle may not be taxed by any Federal, 
     State, or local authority.
       (c) Administration.--In addition to the amounts authorized 
     under subsection (a), there are authorized to be appropriated 
     to the Secretary for each of fiscal years 2009 through 2020 
     $2,000,000 for the administrative costs of carrying out this 
     subtitle.
       (d) Carryover of Funds.--Funds appropriated for prize 
     awards under this subtitle shall remain available until 
     expended and may be transferred, reprogrammed, or expended 
     for other purposes only after the expiration of 11 fiscal 
     years after the fiscal year for which the funds were 
     originally appropriated. No provision in this subtitle 
     permits obligation or payment of funds in violation of 
     section 1341 of title 31, United States Code.

     SEC. 218. NEXT GENERATION AUTOMOBILE PRIZE PROGRAM.

       The Secretary of Energy shall establish a program to award 
     a prize in the amount of $500,000,000 to the first automobile 
     manufacturer incorporated in the United States to manufacture 
     and sell in the United States 50,000 midsized sedan 
     automobiles which operate on gasoline and can travel 100 
     miles per gallon.

     SEC. 219. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.

       (a) Definitions.--In this section:
       (1) Advanced battery.--The term ``advanced battery'' means 
     an electrical storage device suitable for vehicle 
     applications.
       (2) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the cost of engineering tasks 
     relating to--
       (A) incorporation of qualifying components into the design 
     of advanced batteries; and
       (B) design of tooling and equipment and developing 
     manufacturing processes and material suppliers for production 
     facilities that produce qualifying components or advanced 
     batteries.
       (b) Advanced Battery Manufacturing Facility.--The Secretary 
     shall provide facility funding awards under this section to 
     advanced battery manufacturers to pay not more than 30 
     percent of the cost of reequipping, expanding, or 
     establishing a manufacturing facility in the United States to 
     produce advanced batteries.
       (c) Period of Availability.--An award under subsection (b) 
     shall apply to--
       (1) facilities and equipment placed in service before 
     December 30, 2020; and
       (2) engineering integration costs incurred during the 
     period beginning on the date of enactment of this Act and 
     ending on December 30, 2020.
       (d) Direct Loan Program.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this subtitle, and subject to the availability 
     of appropriated funds, the Secretary shall carry out a 
     program to provide a total of not more than $100,000,000 in 
     loans to eligible individuals and entities (as determined by 
     the Secretary) for the costs of activities described in 
     subsection (b).
       (2) Selection of eligible projects.--The Secretary shall 
     select eligible projects to receive loans under this 
     subsection in cases in which, as determined by the Secretary, 
     the award recipient--
       (A) is financially viable without the receipt of additional 
     Federal funding associated with the proposed project;
       (B) will provide sufficient information to the Secretary 
     for the Secretary to ensure that the qualified investment is 
     expended efficiently and effectively; and
       (C) has met such other criteria as may be established and 
     published by the Secretary.
       (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 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; and
       (ii) 25 years;
       (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; and
       (D) shall be made by the Federal Financing Bank.
       (e) Fees.--The cost of administering a loan made under this 
     section shall not exceed $100,000.
       (f) Set Aside for Small Manufacturers.--

[[Page S7369]]

       (1) Definition of covered firm.--In this subsection, the 
     term ``covered firm'' means a firm that--
       (A) employs fewer than 500 individuals; and
       (B) manufactures automobiles or components of automobiles.
       (2) Set aside.--Of the amount of funds used to provide 
     awards for each fiscal year under subsection (b), the 
     Secretary shall use not less than 10 percent to provide 
     awards to covered firms or consortia led by a covered firm.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated from the American Energy Trust Fund such 
     sums as are necessary to carry out this section for each of 
     fiscal years 2009 through 2013.

              Subtitle C--Home and Business Tax Incentives

     SEC. 221. EXTENSION OF CREDIT FOR ENERGY EFFICIENT 
                   APPLIANCES.

       (a) In General.--Subsection (b) of section 45M of the 
     Internal Revenue Code of 1986 (relating to applicable amount) 
     is amended by striking ``calendar year 2006 or 2007'' each 
     place it appears in paragraphs (1)(A)(i), (1)(B)(i), 
     (1)(C)(ii)(I), and (1)(C)(iii)(I), and inserting ``calendar 
     year 2006, 2007, 2008, 2009, 2010, 2011, 2012, or 2013''.
       (b) Restart of Credit Limitation.--Paragraph (1) of section 
     45M(e) of such Code (relating to aggregate credit amount 
     allowed) is amended by inserting ``beginning after December 
     31, 2007'' after ``for all prior taxable years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007.

     SEC. 222. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY 
                   PROPERTY.

       (a) In General.--Section 25C(g) of the Internal Revenue 
     Code of 1986 (relating to termination) is amended by striking 
     ``December 31, 2007'' and inserting ``December 31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2007.

     SEC. 223. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY 
                   EFFICIENT PROPERTY.

       Section 25D(g) of the Internal Revenue Code of 1986 
     (relating to termination) is amended by striking ``December 
     31, 2008'' and inserting ``December 31, 2013''.

     SEC. 224. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

       Subsection (g) of section 45L of the Internal Revenue Code 
     of 1986 (relating to termination) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2013''.

     SEC. 225. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
                   DEDUCTION.

       Section 179D(h) of the Internal Revenue Code of 1986 
     (relating to termination) is amended by striking ``December 
     31, 2008'' and inserting ``December 31, 2013''.

     SEC. 226. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC AND 
                   STATE ELECTRIC RESTRUCTURING POLICY.

       (a) In General.--Paragraph (3) of section 451(i) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``January 1, 2008'' and inserting ``January 1, 2014''.
       (b) Extension of Period for Transfer of Operational Control 
     Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) of 
     such Code is amended by striking ``December 31, 2007'' and 
     inserting ``the date which is 4 years after the close of the 
     taxable year in which the transaction occurs''.
       (c) Effective Dates.--
       (1) Extension.--The amendments made by subsection (a) shall 
     apply to transactions after December 31, 2007.
       (2) Transfers of operational control.--The amendment made 
     by subsection (b) shall take effect as if included in section 
     909 of the American Jobs Creation Act of 2004.

     SEC. 227. HOME ENERGY AUDITS.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 25D the following new section:

     ``SEC. 25E. HOME ENERGY AUDITS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to 50 percent of 
     the amount of qualified energy audit paid or incurred by the 
     taxpayer during the taxable year.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--The amount allowed as a credit 
     under subsection (a) with respect to a residence of the 
     taxpayer for a taxable year shall not exceed $400.
       ``(2) Limitation based on amount of tax.--In the case of 
     any taxable year to which section 26(a)(2) does not apply, 
     the credit allowed under subsection (a) shall not exceed the 
     excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section) and section 27 for the taxable 
     year.
       ``(c) Qualified Energy Audit.--For purposes of this 
     section, the term `qualified energy audit' means an energy 
     audit of the principal residence of the taxpayer performed by 
     a qualified energy auditor through a comprehensive site 
     visit. Such audit may include a blower door test, an infra-
     red camera test, and a furnace combustion efficiency test. In 
     addition, such audit shall include such substitute tests for 
     the tests specified in the preceding sentence, and such 
     additional tests, as the Secretary may by regulation require. 
     A principal residence shall not be taken into consideration 
     under this subparagraph unless such residence is located in 
     the United States.
       ``(d) Principal Residence.--For purposes of this section, 
     the term `principal residence' has the same meaning as when 
     used in section 121.
       ``(e) Qualified Energy Auditor.--
       ``(1) In general.--The Secretary shall specify by 
     regulations the qualifications required to be a qualified 
     energy auditor for purposes of this section. Such regulations 
     shall include rules prohibiting conflicts-of-interest, 
     including the disallowance of commissions or other payments 
     based on goods or non-audit services purchased by the 
     taxpayer from the auditor.
       ``(2) Certification.--The Secretary shall prescribe the 
     procedures and methods for certifying that an auditor is a 
     qualified energy auditor. To the maximum extent practicable, 
     such procedures and methods shall provide for a variety of 
     sources to obtain certifications.''.
       (b) Conforming Amendments.--
       (1) Section 23(b)(4)(B) of the Internal Revenue Code of 
     1986 is amended by inserting ``and section 25E'' after ``this 
     section''.
       (2) Section 23(c)(1) of such Code is amended by inserting 
     ``, 25E,'' after ``25D''.
       (3) Section 24(b)(3)(B) of such Code is amended by striking 
     ``and 25B'' and inserting ``, 25B, and 25E''.
       (4) Clauses (i) and (ii) of section 25(e)(1)(C) of such 
     Code are each amended by inserting ``25E,'' after ``25D,''.
       (5) Section 25B(g)(2) of such Code is amended by striking 
     ``section 23'' and inserting ``sections 23 and 25E''.
       (6) Section 25D(c)(1) of such Code is amended by inserting 
     ``and section 25E'' after ``this section''.
       (7) Section 25D(c)(2) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (8) The table of sections for subpart A of part IV of 
     subchapter A chapter 1 of such Code is amended by inserting 
     after the item relating to section 25D the following new 
     item:

``Sec. 25E. Home energy audits.''.

       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to amounts paid or incurred in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Application of egtrra sunset.--The amendments made by 
     paragraphs (1) and (3) of subsection (b) shall be subject to 
     title IX of the Economic Growth and Tax Relief Reconciliation 
     Act of 2001 in the same manner as the provisions of such Act 
     to which such amendments relate.

     SEC. 228. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF 
                   SMART METERS.

       (a) In General.--Section 168(e)(3)(B) of the Internal 
     Revenue Code of 1986 is amended by striking ``and'' at the 
     end of clause (v), by striking the period at the end of 
     clause (vi) and inserting ``, and'', and by inserting after 
     clause (vi) the following new clause:
       ``(vii) any qualified smart electric meter.''.
       (b) Definition.--Section 168(i) of such Code is amended by 
     inserting at the end the following new paragraph:
       ``(18) Qualified smart electric meters.--
       ``(A) In general.--The term `qualified smart electric 
     meter' means any smart electric meter which is placed in 
     service by a taxpayer who is a supplier of electric energy or 
     a provider of electric energy services.
       ``(B) Smart electric meter.--For purposes of subparagraph 
     (A), the term `smart electric meter' means any time-based 
     meter and related communication equipment which is capable of 
     being used by the taxpayer as part of a system that--
       ``(i) measures and records electricity usage data on a 
     time-differentiated basis in at least 24 separate time 
     segments per day,
       ``(ii) provides for the exchange of information between 
     supplier or provider and the customer's electric meter in 
     support of time-based rates or other forms of demand 
     response,
       ``(iii) provides data to such supplier or provider so that 
     the supplier or provider can provide energy usage information 
     to customers electronically, and
       ``(iv) provides net metering.''.
       (c) Continued Application of 150 Percent Declining Balance 
     Method.--Paragraph (2) of section 168(b) of such Code is 
     amended by striking ``or'' at the end of subparagraph (B), by 
     redesignating subparagraph (C) as subparagraph (D), and by 
     inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) any property (other than property described in 
     paragraph (3)) which is a qualified smart electric meter, 
     or''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

              Subtitle D--Refinery Permit Process Schedule

     SEC. 231. SHORT TITLE.

       This subtitle may be cited as the ``Refinery Permit Process 
     Schedule Act''.

     SEC. 232. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``Administrator'' means the Administrator of 
     the Environmental Protection Agency;
       (2) the term ``applicant'' means a person who (with the 
     approval of the governor of the State, or in the case of 
     Native American tribes or tribal territories the designated 
     leader of the tribe or tribal community, where the proposed 
     refinery would be located) is seeking a Federal refinery 
     authorization;

[[Page S7370]]

       (3) the term ``biomass'' has the meaning given that term in 
     section 932(a)(1) of the Energy Policy Act of 2005;
       (4) the term ``Federal refinery authorization''--
       (A) means any authorization required under Federal law, 
     whether administered by a Federal or State administrative 
     agency or official, with respect to siting, construction, 
     expansion, or operation of a refinery; and
       (B) includes any permits, licenses, special use 
     authorizations, certifications, opinions, or other approvals 
     required under Federal law with respect to siting, 
     construction, expansion, or operation of a refinery;
       (5) the term ``refinery'' means--
       (A) a facility designed and operated to receive, load, 
     unload, store, transport, process, and refine crude oil by 
     any chemical or physical process, including distillation, 
     fluid catalytic cracking, hydrocracking, coking, alkylation, 
     etherification, polymerization, catalytic reforming, 
     isomerization, hydrotreating, blending, and any combination 
     thereof, in order to produce gasoline or distillate;
       (B) a facility designed and operated to receive, load, 
     unload, store, transport, process, and refine coal by any 
     chemical or physical process, including liquefaction, in 
     order to produce gasoline or diesel as its primary output; or
       (C) a facility designed and operated to receive, load, 
     unload, store, transport, process (including biochemical, 
     photochemical, and biotechnology processes), and refine 
     biomass in order to produce biofuel; and
       (6) the term ``State'' means a State, the District of 
     Columbia, the Commonwealth of Puerto Rico, and any other 
     territory or possession of the United States.

     SEC. 233. STATE ASSISTANCE.

       (a) State Assistance.--At the request of a governor of a 
     State, or in the case of Native American tribes or tribal 
     territories the designated leader of the tribe or tribal 
     community, the Administrator is authorized to provide 
     financial assistance to that State or tribe or tribal 
     community to facilitate the hiring of additional personnel to 
     assist the State or tribe or tribal community with expertise 
     in fields relevant to consideration of Federal refinery 
     authorizations.
       (b) Other Assistance.--At the request of a governor of a 
     State, or in the case of Native American tribes or tribal 
     territories the designated leader of the tribe or tribal 
     community, a Federal agency responsible for a Federal 
     refinery authorization shall provide technical, legal, or 
     other nonfinancial assistance to that State or tribe or 
     tribal community to facilitate its consideration of Federal 
     refinery authorizations.

     SEC. 234. REFINERY PROCESS COORDINATION AND PROCEDURES.

       (a) Appointment of Federal Coordinator.--
       (1) In general.--The President shall appoint a Federal 
     coordinator to perform the responsibilities assigned to the 
     Federal coordinator under this subtitle.
       (2) Other agencies.--Each Federal and State agency or 
     official required to provide a Federal refinery authorization 
     shall cooperate with the Federal coordinator.
       (b) Federal Refinery Authorizations.--
       (1) Meeting participants.--Not later than 30 days after 
     receiving a notification from an applicant that the applicant 
     is seeking a Federal refinery authorization pursuant to 
     Federal law, the Federal coordinator appointed under 
     subsection (a) shall convene a meeting of representatives 
     from all Federal and State agencies responsible for a Federal 
     refinery authorization with respect to the refinery. The 
     governor of a State shall identify each agency of that State 
     that is responsible for a Federal refinery authorization with 
     respect to that refinery.
       (2) Memorandum of agreement.--(A) Not later than 90 days 
     after receipt of a notification described in paragraph (1), 
     the Federal coordinator and the other participants at a 
     meeting convened under paragraph (1) shall establish a 
     memorandum of agreement setting forth the most expeditious 
     coordinated schedule possible for completion of all Federal 
     refinery authorizations with respect to the refinery, 
     consistent with the full substantive and procedural review 
     required by Federal law. If a Federal or State agency 
     responsible for a Federal refinery authorization with respect 
     to the refinery is not represented at such meeting, the 
     Federal coordinator shall ensure that the schedule 
     accommodates those Federal refinery authorizations, 
     consistent with Federal law. In the event of conflict among 
     Federal refinery authorization scheduling requirements, the 
     requirements of the Environmental Protection Agency shall be 
     given priority.
       (B) Not later than 15 days after completing the memorandum 
     of agreement, the Federal coordinator shall publish the 
     memorandum of agreement in the Federal Register.
       (C) The Federal coordinator shall ensure that all parties 
     to the memorandum of agreement are working in good faith to 
     carry out the memorandum of agreement, and shall facilitate 
     the maintenance of the schedule established therein.
       (c) Consolidated Record.--The Federal coordinator shall, 
     with the cooperation of Federal and State administrative 
     agencies and officials, maintain a complete consolidated 
     record of all decisions made or actions taken by the Federal 
     coordinator or by a Federal administrative agency or officer 
     (or State administrative agency or officer acting under 
     delegated Federal authority) with respect to any Federal 
     refinery authorization. Such record shall be the record for 
     judicial review under subsection (d) of decisions made or 
     actions taken by Federal and State administrative agencies 
     and officials, except that, if the Court determines that the 
     record does not contain sufficient information, the Court may 
     remand the proceeding to the Federal coordinator for further 
     development of the consolidated record.
       (d) Remedies.--
       (1) In general.--The United States District Court for the 
     district in which the proposed refinery is located shall have 
     exclusive jurisdiction over any civil action for the review 
     of the failure of an agency or official to act on a Federal 
     refinery authorization in accordance with the schedule 
     established pursuant to the memorandum of agreement.
       (2) Standing.--If an applicant or a party to a memorandum 
     of agreement alleges that a failure to act described in 
     paragraph (1) has occurred and that such failure to act would 
     jeopardize timely completion of the entire schedule as 
     established in the memorandum of agreement, such applicant or 
     other party may bring a cause of action under this 
     subsection.
       (3) Court action.--If an action is brought under paragraph 
     (2), the Court shall review whether the parties to the 
     memorandum of agreement have been acting in good faith, 
     whether the applicant has been cooperating fully with the 
     agencies that are responsible for issuing a Federal refinery 
     authorization, and any other relevant materials in the 
     consolidated record. Taking into consideration those factors, 
     if the Court finds that a failure to act described in 
     paragraph (1) has occurred, and that such failure to act 
     would jeopardize timely completion of the entire schedule as 
     established in the memorandum of agreement, the Court shall 
     establish a new schedule that is the most expeditious 
     coordinated schedule possible for completion of proceedings, 
     consistent with the full substantive and procedural review 
     required by Federal law. The court may issue orders to 
     enforce any schedule it establishes under this paragraph.
       (4) Federal coordinator's action.--When any civil action is 
     brought under this subsection, the Federal coordinator shall 
     immediately file with the Court the consolidated record 
     compiled by the Federal coordinator pursuant to subsection 
     (c).
       (5) Expedited review.--The Court shall set any civil action 
     brought under this subsection for expedited consideration.

     SEC. 235. DESIGNATION OF CLOSED MILITARY BASES.

       (a) Designation Requirement.--Not later than 90 days after 
     the date of enactment of this Act, the President shall 
     designate no less than 3 closed military installations, or 
     portions thereof, as potentially suitable for the 
     construction of a refinery. At least 1 such site shall be 
     designated as potentially suitable for construction of a 
     refinery to refine biomass in order to produce biofuel.
       (b) Redevelopment Authority.--The redevelopment authority 
     for each installation designated under subsection (a), in 
     preparing or revising the redevelopment plan for the 
     installation, shall consider the feasibility and 
     practicability of siting a refinery on the installation.
       (c) Management and Disposal of Real Property.--The 
     Secretary of Defense, in managing and disposing of real 
     property at an installation designated under subsection (a) 
     pursuant to the base closure law applicable to the 
     installation, shall give substantial deference to the 
     recommendations of the redevelopment authority, as contained 
     in the redevelopment plan for the installation, regarding the 
     siting of a refinery on the installation. The management and 
     disposal of real property at a closed military installation 
     or portion thereof found to be suitable for the siting of a 
     refinery under subsection (a) shall be carried out in the 
     manner provided by the base closure law applicable to the 
     installation.
       (d) Definitions.--For purposes of this section--
       (1) the term ``base closure law'' means the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note) and title II of the 
     Defense Authorization Amendments and Base Closure and 
     Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note); 
     and
       (2) the term ``closed military installation'' means a 
     military installation closed or approved for closure pursuant 
     to a base closure law.

     SEC. 236. SAVINGS CLAUSE.

       Nothing in this subtitle shall be construed to affect the 
     application of any environmental or other law, or to prevent 
     any party from bringing a cause of action under any 
     environmental or other law, including citizen suits.

     SEC. 237. REFINERY REVITALIZATION REPEAL.

       Subtitle H of title III of the Energy Policy Act of 2005 
     and the items relating thereto in the table of contents of 
     such Act are repealed.

               TITLE III--NEW AND EXPANDING TECHNOLOGIES

                     Subtitle A--Alternative Fuels

     SEC. 301. REPEAL.

       Section 526 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17142) is repealed.

     SEC. 302. GOVERNMENT AUCTION OF LONG TERM PUT OPTION 
                   CONTRACTS ON COAL-TO-LIQUID FUEL PRODUCED BY 
                   QUALIFIED COAL-TO-LIQUID FACILITIES.

       (a) In General.--The Secretary shall, from time to time, 
     auction to the public coal-to-

[[Page S7371]]

     liquid fuel put option contracts having expiration dates of 5 
     years, 10 years, 15 years, or 20 years.
       (b) Consultation With Secretary of Energy.--The Secretary 
     shall consult with the Secretary of Energy regarding--
       (1) the frequency of the auctions;
       (2) the strike prices specified in the contracts;
       (3) the number of contracts to be auctioned with a given 
     strike price and expiration date; and
       (4) the capacity of existing or planned facilities to 
     produce coal-to-liquid fuel.
       (c) Definitions.--In this section:
       (1) Coal-to-liquid fuel.--The term ``coal-to-liquid fuel'' 
     means any transportation-grade liquid fuel derived primarily 
     from coal (including peat) and produced at a qualified coal-
     to-liquid facility.
       (2) Coal-to-liquid put option contract.--The term ``coal-
     to-liquid put option contract'' means a contract, written by 
     the Secretary, which--
       (A) gives the holder the right (but not the obligation) to 
     sell to the Government of the United States a certain 
     quantity of a specific type of coal-to-liquid fuel produced 
     by a qualified coal-to-liquid facility specified in the 
     contract, at a strike price specified in the contract, on or 
     before an expiration date specified in the contract; and
       (B) is transferable by the holder to any other entity.
       (3) Qualified coal-to-liquid facility.--The term 
     ``qualified coal-to-liquid facility'' means a manufacturing 
     facility that has the capacity to produce at least 10,000 
     barrels per day of transportation grade liquid fuels from a 
     feedstock that is primarily domestic coal (including peat and 
     any property which allows for the capture, transportation, or 
     sequestration of by-products resulting from such process, 
     including carbon emissions).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (5) Strike price.--The term ``strike price'' means, with 
     respect to a put option contract, the price at which the 
     holder of the contract has the right to sell the fuel which 
     is the subject of the contract.
       (d) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out this section.
       (e) Effective Date.--This section shall take effect 1 year 
     after the date of the enactment of this Act.

     SEC. 303. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQUIDS 
                   PROJECTS.

       Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 
     16512) is amended by adding at the end the following new 
     subsection:
       ``(k) Standby Loans for Qualifying CTL Projects.--
       ``(1) Definitions.--For purposes of this subsection:
       ``(A) Cap price.--The term `cap price' means a market price 
     specified in the standby loan agreement above which the 
     project is required to make payments to the United States.
       ``(B) Full term.--The term `full term' means the full term 
     of a standby loan agreement, as specified in the agreement, 
     which shall not exceed the lesser of 30 years or 90 percent 
     of the projected useful life of the project (as determined by 
     the Secretary).
       ``(C) Market price.--The term `market price' means the 
     average quarterly price of a petroleum price index specified 
     in the standby loan agreement.
       ``(D) Minimum price.--The term `minimum price' means a 
     market price specified in the standby loan agreement below 
     which the United States is obligated to make disbursements to 
     the project.
       ``(E) Output.--The term `output' means some or all of the 
     liquid or gaseous transportation fuels produced from the 
     project, as specified in the loan agreement.
       ``(F) Primary term.--The term `primary term' means the 
     initial term of a standby loan agreement, as specified in the 
     agreement, which shall not exceed the lesser of 20 years or 
     75 percent of the projected useful life of the project (as 
     determined by the Secretary).
       ``(G) Qualifying ctl project.--The term `qualifying CTL 
     project' means--
       ``(i) a commercial-scale project that converts coal to one 
     or more liquid or gaseous transportation fuels; or
       ``(ii) not more than one project at a facility that 
     converts petroleum refinery waste products, including 
     petroleum coke, into one or more liquids or gaseous 
     transportation fuels,
     that demonstrates the capture, and sequestration or disposal 
     or use of, the carbon dioxide produced in the conversion 
     process, and that, on the basis of a carbon dioxide 
     sequestration plan prepared by the applicant, is certified by 
     the Administrator of the Environmental Protection Agency, in 
     consultation with the Secretary, as producing fuel with life 
     cycle carbon dioxide emissions at or below the average life 
     cycle carbon dioxide emissions for the same type of fuel 
     produced at traditional petroleum based facilities with 
     similar annual capacities.
       ``(H) Standby loan agreement.--The term `standby loan 
     agreement' means a loan agreement entered into under 
     paragraph (2).
       ``(2) Standby loans.--
       ``(A) Loan authority.--The Secretary may enter into standby 
     loan agreements with not more than six qualifying CTL 
     projects, at least one of which shall be a project jointly or 
     in part owned by two or more small coal producers. Such an 
     agreement--
       ``(i) shall provide that the Secretary will make a direct 
     loan (within the meaning of section 502(1) of the Federal 
     Credit Reform Act of 1990) to the qualifying CTL project; and
       ``(ii) shall set a cap price and a minimum price for the 
     primary term of the agreement.
       ``(B) Loan disbursements.--Such a loan shall be disbursed 
     during the primary term of such agreement whenever the market 
     price falls below the minimum price. The amount of such 
     disbursements in any calendar quarter shall be equal to the 
     excess of the minimum price over the market price, times the 
     output of the project (but not more than a total level of 
     disbursements specified in the agreement).
       ``(C) Loan repayments.--The Secretary shall establish terms 
     and conditions, including interest rates and amortization 
     schedules, for the repayment of such loan within the full 
     term of the agreement, subject to the following limitations:
       ``(i) If in any calendar quarter during the primary term of 
     the agreement the market price is less than the cap price, 
     the project may elect to defer some or all of its repayment 
     obligations due in that quarter. Any unpaid obligations will 
     continue to accrue interest.
       ``(ii) If in any calendar quarter during the primary term 
     of the agreement the market price is greater than the cap 
     price, the project shall meet its scheduled repayment 
     obligation plus deferred repayment obligations, but shall not 
     be required to pay in that quarter an amount that is more 
     than the excess of the market price over the cap price, times 
     the output of the project.
       ``(iii) At the end of the primary term of the agreement, 
     the cumulative amount of any deferred repayment obligations, 
     together with accrued interest, shall be amortized (with 
     interest) over the remainder of the full term of the 
     agreement.
       ``(3) Profit-sharing.--The Secretary is authorized to enter 
     into a profit-sharing agreement with the project at the time 
     the standby loan agreement is executed. Under such an 
     agreement, if the market price exceeds the cap price in a 
     calendar quarter, a profit-sharing payment shall be made for 
     that quarter, in an amount equal to--
       ``(A) the excess of the market price over the cap price, 
     times the output of the project; less
       ``(B) any loan repayments made for the calendar quarter.
       ``(4) Compliance with federal credit reform act.--
       ``(A) Upfront payment of cost of loan.--No standby loan 
     agreement may be entered into under this subsection unless 
     the project makes a payment to the United States that the 
     Office of Management and Budget determines is equal to the 
     cost of such loan (determined under 502(5)(B) of the Federal 
     Credit Reform Act of 1990). Such payment shall be made at the 
     time the standby loan agreement is executed.
       ``(B) Minimization of risk to the government.--In making 
     the determination of the cost of the loan for purposes of 
     setting the payment for a standby loan under subparagraph 
     (A), the Secretary and the Office of Management and Budget 
     shall take into consideration the extent to which the minimum 
     price and the cap price reflect historical patterns of 
     volatility in actual oil prices relative to projections of 
     future oil prices, based upon publicly available data from 
     the Energy Information Administration, and employing 
     statistical methods and analyses that are appropriate for the 
     analysis of volatility in energy prices.
       ``(C) Treatment of payments.--The value to the United 
     States of a payment under subparagraph (A) and any profit-
     sharing payments under paragraph (3) shall be taken into 
     account for purposes of section 502(5)(B)(iii) of the Federal 
     Credit Reform Act of 1990 in determining the cost to the 
     Federal Government of a standby loan made under this 
     subsection. If a standby loan has no cost to the Federal 
     Government, the requirements of section 504(b) of such Act 
     shall be deemed to be satisfied.
       ``(5) Other provisions.--
       ``(A) No double benefit.--A project receiving a loan under 
     this subsection may not, during the primary term of the loan 
     agreement, receive a Federal loan guarantee under subsection 
     (a) of this section, or under other laws.
       ``(B) Subrogation, etc.--Subsections (g)(2) (relating to 
     subrogation), (h) (relating to fees), and (j) (relating to 
     full faith and credit) shall apply to standby loans under 
     this subsection to the same extent they apply to loan 
     guarantees.''.

                       Subtitle B--Tax Provisions

     SEC. 311. EXTENSION OF RENEWABLE ELECTRICITY, REFINED COAL, 
                   AND INDIAN COAL PRODUCTION CREDIT.

       (a) Credit Made Permanent.--
       (1) In general.--Subsection (d) of section 45 of the 
     Internal Revenue Code of 1986 (relating to qualified 
     facilities) is amended--
       (A) by striking ``and before January 1, 2009'' each place 
     it occurs,
       (B) by striking ``, and before January 1, 2009'' in 
     paragraphs (1) and (2)(A)(i), and
       (C) by striking ``before January 1, 2009'' in paragraph 
     (10).
       (2) Open-loop biomass facilities.--Subparagraph (A) of 
     section 45(d)(3) of such Code is amended to read as follows:
       ``(A) In general.--In the case of a facility using open-
     loop biomass to produce electricity, the term `qualified 
     facility' means any facility owned by the taxpayer which is 
     originally placed in service after October 22, 2004.''.

[[Page S7372]]

       (3) Effective date.--The amendments made by this subsection 
     shall apply to electricity produced and sold after December 
     31, 2008, in taxable years ending after such date.
       (b) Sales of Net Electricity to Regulated Public Utilities 
     Treated as Sales to Unrelated Persons.--Paragraph (4) of 
     section 45(e) of such Code is amended by adding at the end 
     the following new sentence: ``The net amount of electricity 
     sold by any taxpayer to a regulated public utility (as 
     defined in section 7701(a)(33)) shall be treated as sold to 
     an unrelated person.''.
       (c) Allowance Against Alternative Minimum Tax.--
       (1) In general.--Clause (ii) of section 38(c)(4)(B) of such 
     Code (relating to specified credits) is amended by striking 
     ``produced--'' and all that follows and inserting ``produced 
     at a facility which is originally placed in service after the 
     date of the enactment of this paragraph.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 312. EXTENSION OF ENERGY CREDIT.

       (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) of the Internal Revenue Code of 
     1986 (relating to energy credit) are each amended by striking 
     ``but only with respect to periods ending before January 1, 
     2009''.
       (b) Fuel Cell Property.--Section 48(c)(1) of such Code 
     (relating to qualified fuel cell property) is amended by 
     striking subparagraph (E).
       (c) Microturbine Property.--Subparagraph (E) of section 
     48(c)(2) of the Internal Revenue Code of 1986 (relating to 
     qualified microturbine property) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2013''.
       (d) Allowance Against Alternative Minimum Tax.--
       (1) In general.--Subparagraph (B) of section 38(c)(4) of 
     such Code (relating to specified credits) is amended by 
     striking ``and'' at the end of clause (iii), by redesignating 
     clause (iv) as clause (v), and by inserting after clause 
     (iii) the following new clause:
       ``(iv) the credit determined under section 48, and''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 313. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN 
                   RENEWABLE ENERGY BONDS.

       (a) Extension.--Section 54(m) of the Internal Revenue Code 
     of 1986 (relating to termination) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2013''.
       (b) Increase in National Limitation.--Section 54(f) of such 
     Code (relating to limitation on amount of bonds designated) 
     is amended--
       (1) by striking ``$1,200,000,000'' in paragraph (1) and 
     inserting ``$1,600,000,000'', and
       (2) by striking ``$750,000,000'' in paragraph (2) and 
     inserting ``$1,000,000,000''.
       (c) Modification of Ratable Principal Amortization 
     Requirement.--
       (1) In general.--Paragraph (5) of section 54(l) of such 
     Code is amended to read as follows:
       ``(5) Ratable principal amortization required.--A bond 
     shall not be treated as a clean renewable energy bond unless 
     it is part of an issue which provides for an equal amount of 
     principal to be paid by the qualified issuer during each 12-
     month period that the issue is outstanding (other than the 
     first 12-month period).''.
       (2) Technical amendment.--The third sentence of section 
     54(e)(2) of such Code is amended by striking ``subsection 
     (l)(6)'' and inserting ``subsection (l)(5)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 314. EXTENSION OF CREDITS FOR BIODIESEL AND RENEWABLE 
                   DIESEL.

       (a) In General.--Sections 40A(g), 6426(c)(6), and 
     6427(e)(5)(B) of the Internal Revenue Code of 1986 are each 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2013''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuel produced, and sold or used, after 
     December 31, 2008.

                          Subtitle C--Nuclear

     SEC. 321. USE OF FUNDS FOR RECYCLING.

       Section 302 of the Nuclear Waste Policy Act of 1982 (42 
     U.S.C. 10222) is amended--
       (1) in subsection (d), by striking ``The Secretary may'' 
     and inserting ``Except as provided in subsection (f), the 
     Secretary may''; and
       (2) by adding at the end the following new subsection:
       ``(f) Recycling.--
       ``(1) In general.--Amounts in the Waste Fund may be used by 
     the Secretary of Energy to make grants to or enter into long-
     term contracts with private sector entities for the recycling 
     of spent nuclear fuel.
       ``(2) Competitive selection.--Grants and contracts 
     authorized under paragraph (1) shall be awarded on the basis 
     of a competitive bidding process that--
       ``(A) maximizes the competitive efficiency of the projects 
     funded;
       ``(B) best serves the goal of reducing the amount of waste 
     requiring disposal under this Act; and
       ``(C) ensures adequate protection against the proliferation 
     of nuclear materials that could be used in the manufacture of 
     nuclear weapons.''.

     SEC. 322. RULEMAKING FOR LICENSING OF SPENT NUCLEAR FUEL 
                   RECYCLING FACILITIES.

       (a) Requirement.--The Nuclear Regulatory Commission shall, 
     as expeditiously as possible, but in no event later than 2 
     years after the date of enactment of this Act, complete a 
     rulemaking establishing a process for the licensing by the 
     Nuclear Regulatory Commission, under the Atomic Energy Act of 
     1954, of facilities for the recycling of spent nuclear fuel.
       (b) Funding.--Amounts in the Nuclear Waste Fund established 
     under section 302 of the Nuclear Waste Policy Act of 1982 (42 
     U.S.C. 10222) shall be made available to the Nuclear 
     Regulatory Commission to cover the costs of carrying out 
     subsection (a) of this section.

     SEC. 323. NUCLEAR WASTE FUND BUDGET STATUS.

       Section 302(e) of the Nuclear Waste Policy Act of 1982 (42 
     U.S.C. 10222(e)) is amended by adding at the end the 
     following new paragraph:
       ``(7) The receipts and disbursements of the Waste Fund 
     shall not be counted as new budget authority, outlays, 
     receipts, or deficits or surplus for purposes of--
       ``(A) the budget of the United States Government as 
     submitted by the President;
       ``(B) the congressional budget; or
       ``(C) the Balanced Budget and Emergency Deficit Control Act 
     of 1985.''.

     SEC. 324. WASTE CONFIDENCE.

       The Nuclear Regulatory Commission may not deny an 
     application for a license, permit, or other authorization 
     under the Atomic Energy Act of 1954 on the grounds that 
     sufficient capacity does not exist, or will not become 
     available on a timely basis, for disposal of spent nuclear 
     fuel or high-level radioactive waste from the facility for 
     which the license, permit, or other authorization is sought.

     SEC. 325. ASME NUCLEAR CERTIFICATION CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45O. ASME NUCLEAR CERTIFICATION CREDIT.

       ``(a) In General.--For purposes of section 38, the ASME 
     Nuclear Certification credit determined under this section 
     for any taxable year is an amount equal to 15 percent of the 
     qualified nuclear expenditures paid or incurred by the 
     taxpayer.
       ``(b) Qualified Nuclear Expenditures.--For purposes of this 
     section, the term `qualified nuclear expenditures' means any 
     expenditure related to--
       ``(1) obtaining a certification under the American Society 
     of Mechanical Engineers Nuclear Component Certification 
     program, or
       ``(2) increasing the taxpayer's capacity to construct, 
     fabricate, assemble, or install components--
       ``(A) for any facility which uses nuclear energy to produce 
     electricity, and
       ``(B) with respect to the construction, fabrication, 
     assembly, or installation of which the taxpayer is certified 
     under such program.
       ``(c) Timing of Credit.--The credit allowed under 
     subsection (a) for any expenditures shall be allowed--
       ``(1) in the case of a qualified nuclear expenditure 
     described in subsection (b)(1), for the taxable year of such 
     certification, and
       ``(2) in the case of any other qualified nuclear 
     expenditure, for the taxable year in which such expenditure 
     is paid or incurred.
       ``(d) Special Rules.--
       ``(1) Basis adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section for an expenditure, 
     the increase in basis which would result (but for this 
     subsection) for such expenditure shall be reduced by the 
     amount of the credit allowed under this section.
       ``(2) Denial of double benefit.--No deduction shall be 
     allowed under this chapter for any amount taken into account 
     in determining the credit under this section.
       ``(e) Termination.--This section shall not apply to any 
     expenditures paid or incurred in taxable years beginning 
     after December 31, 2019.''.
       (b) Conforming Amendments.--(1) Subsection (b) of section 
     38 is amended by striking ``plus'' at the end of paragraph 
     (30), by striking the period at the end of paragraph (31) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(32) the ASME Nuclear Certification credit determined 
     under section 45O(a).''.
       (2) Subsection (a) of section 1016 (relating to adjustments 
     to basis) 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 45O(e)(1).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2007.

    Subtitle D--American Renewable and Alternative Energy Trust Fund

     SEC. 331. AMERICAN RENEWABLE AND ALTERNATIVE ENERGY TRUST 
                   FUND.

       (a) Establishment of Trust Fund.--There is established in 
     the Treasury of the United States a trust fund to be known as 
     the ``American Renewable and Alternative Energy Trust Fund'', 
     consisting of such

[[Page S7373]]

     amounts as may be transferred to the American Renewable and 
     Alternative Energy Trust Fund as provided in section 149 and 
     the amendments made by section 110 of this division.
       (b) Expenditures From American Renewable and Alternative 
     Energy Trust Fund.--
       (1) In general.--Amounts in the American Renewable and 
     Alternative Energy Trust Fund shall be available without 
     further appropriation to carry out specified provisions of 
     the Energy Policy Act of 2005 (Public Law 109-58; in this 
     section referred to as ``EPAct2005'') and the Energy 
     Independence and Security Act of 2007 (Public Law 110-140; in 
     this section referred to as ``EISAct2007''), as follows:
       (A) Grants to improve the commercial value of forest 
     biomass for electric energy, useful heat, transportation 
     fuels, and other commercial purposes, section 210 of 
     EPAct2005, 3 percent
       (B) Hydroelectric production incentives, section 242 of 
     EPAct2005, 2 percent.
       (C) Oil shale, tar sands, and other strategic 
     unconventional fuels, section 369 of EPAct2005, 3 percent.
       (D) Clean Coal Power Initiative, section 401 of EPAct2005, 
     7 percent.
       (E) Solar and wind technologies, section 812 of EPAct2005, 
     7 percent.
       (F) Renewable Energy, section 931 of EPAct2005, 20 percent.
       (G) Production incentives for cellulosic biofuels, section 
     942 of EPAct2005, 2.5 percent.
       (H) Coal and related technologies program, section 962 of 
     EPAct2005, 4 percent.
       (I) Methane hydrate research, section 968 of EPAct2005, 2.5 
     percent.
       (J) Incentives for Innovative Technologies, section 1704 of 
     EPAct2005, 7 percent.
       (K) Grants for production of advanced biofuels, section 207 
     of EISAct2007, 16 percent.
       (L) Photovoltaic demonstration program, section 607 
     EISAct2007, 2.5 percent.
       (M) Geothermal Energy, title VI, subtitle B of EISAct2007, 
     4 percent.
       (N) Marine and Hydrokinetic Renewable Energy Technologies, 
     title VI, subtitle C of EISAct2007, 2.5 percent.
       (O) Energy storage competitiveness, section 641 of 
     EISAct2007, 10 percent.
       (P) Smart grid technology research, development, and 
     demonstration, section 1304 of EISAct2007, 7 percent.
       (2) Apportionment of excess amount.--Notwithstanding 
     paragraph (1), any amounts allocated under paragraph (1) that 
     are in excess of the amounts authorized in the applicable 
     cited section or subtitle of EPAct2005 and EISAct2007 shall 
     be reallocated to the remaining sections and subtitles cited 
     in paragraph (1), up to the amounts otherwise authorized by 
     law to carry out such sections and subtitles, in proportion 
     to the amounts authorized by law to be appropriated for such 
     other sections and subtitles.
                                 ______
                                 
  SA 5155. Mr. CRAPO submitted an amendment intended to be proposed by 
bim to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Increasing Transparency and 
     Accountability in Energy Prices Act of 2008''.

     SEC. 2. DEFINITIONS.

       For the purposes of this Act, the term ``excessive 
     speculation'' has the meaning described in section 4a(a) of 
     the Commodity Exchange Act (7 U.S.C. 6a(a)).

     SEC. 3. SENSE OF SENATE ON THE NEED FOR GREATER TRANSPARENCY 
                   IN AND REGULATORY RESOURCES OVERSEEING THE 
                   ENERGY FUTURES MARKETS.

       (a) Sense of Senate.--It is the sense of the Senate that--
       (1) excessive speculation may be adding to the price of oil 
     and other energy commodities;
       (2) the public and Congress are concerned that because the 
     regulator of the energy futures markets, the Commodity 
     Futures Trading Commission, does not have access to all of 
     the national and international data required to fully assess 
     the role of excessive speculation, it cannot definitively 
     determine whether energy futures prices are being driven 
     solely by supply and demand;
       (3) the staffing levels of the Commission have dropped to 
     the lowest levels in the 33-year history of the Commission, 
     thereby making it difficult for the Commission to analyze the 
     growing volumes of futures transactions adequately;
       (4) the acting Chairman of the Commission has said publicly 
     that an additional 100 employees are needed in light of the 
     inflow of trading data; and
       (5) a more robust regulator over the energy futures markets 
     can help restore public confidence in the proper functioning 
     of energy futures markets with respect to the price discovery 
     mechanism they are meant to provide, at least in part by more 
     aggressively applying and enforcing section 9 of the Act, 
     including provisions relating to manipulation or attempted 
     manipulation, the making of false statements, and willful 
     violations of this Act; and
       (6) the Commodity Futures Trading Commission should be 
     provided with additional resources sufficient to--
       (A) help restore public confidence in energy commodities 
     markets;
       (B) significantly improve the information technology 
     capabilities of the Commission to help the Commission 
     effectively regulate energy futures markets; and
       (C) fund at least 100 new full-time positions at the 
     Commission to oversee energy commodity market speculation and 
     to enforce the Commodity Exchange Act (7 U.S.C. 1 et seq.).

     SEC. 4. ADDITIONAL COMMISSION EMPLOYEES FOR IMPROVED 
                   OVERSIGHT AND ENFORCEMENT.

       Section 2(a)(7) of the Commodity Exchange Act (7 U.S.C. 
     2(a)(7)) is amended by adding at the end the following:
       ``(D) Additional employees.--As soon as practicable after 
     the date of enactment of this subparagraph, the Commission 
     shall appoint at least 100 full-time employees (in addition 
     to the employees employed by the Commission as of the date of 
     enactment of this subparagraph)--
       ``(i) to increase the public transparency of operations in 
     energy futures markets;
       ``(ii) to improve the enforcement of this Act in those 
     markets; and
       ``(iii) to carry out such other duties as are prescribed by 
     the Commission.''.

     SEC. 5. STUDY OF INTERNATIONAL REGULATION OF ENERGY COMMODITY 
                   MARKETS.

       (a) In General.--The Comptroller General of the United 
     States shall 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 market 
     oversight and enforcement standards and activities;
       (2) variations among countries in the use of position 
     limits, accountability limits, or other thresholds to detect 
     and prevent price manipulation, excessive speculation, or 
     other unfair trading practices;
       (3) variations in practices regarding the differentiation 
     of commercial and noncommercial trading;
       (4) agreements and practices for sharing market and trading 
     data between regulatory bodies and between individual 
     regulators and the entities they oversee; 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 Comptroller General shall submit 
     to the appropriate committees of Congress a report that--
       (1) describes the results of the study;
       (2) addresses the effects of excessive speculation and 
     energy price volatility on energy futures; and
       (3) provides recommendations to improve openness, 
     transparency, and other necessary elements of a properly 
     functioning market in a manner that protects consumers in the 
     United States.

     SEC. 6. SPECULATIVE LIMITS AND TRANSPARENCY FOR OFF-SHORE OIL 
                   TRADING.

       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 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 trading 
     information published by the registered entity for the 
     contract or contracts against which it settles;
       ``(B) the foreign board of trade or foreign futures 
     authority adopts position limits (including related hedge 
     exemption provisions) or position accountability for 
     speculators for the agreement, contract, or transaction that 
     are comparable to the position limits (including related 
     hedge exemption provisions) or position accountability 
     adopted by the registered entity for the contract or 
     contracts against which it settles;
       ``(C) the foreign board of trade or foreign futures 
     authority has the authority to require or direct market 
     participants to limit, reduce, or liquidate any position it 
     deems necessary to prevent or reduce the threat of price 
     manipulation, excessive speculation, price distortion, or 
     disruption of delivery or the cash settlement process;
       ``(D) the foreign board of trade or foreign futures 
     authority provides such information to the Commission 
     regarding the extent of speculative and nonspeculative 
     trading in the agreement, contract, or transaction that is 
     comparable to the information the Commission determines is 
     necessary to publish its Commitment of Traders report for the 
     contract or contracts against which it settles; and

[[Page S7374]]

       ``(E) the foreign board of trade or foreign futures 
     authority regularly notifies the Commission before 
     implementing any regulatory changes regarding the information 
     it will make public, the position and accountability limits 
     it will adopt and enforce, the position reductions it will 
     require to prevent manipulation, or any other area of 
     interest expressed by the Commission.
       ``(2) Existing foreign boards of trade.--Paragraph (1) 
     shall become effective 6 months 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 had granted relief prior to the date of 
     enactment of this subsection.''.

     SEC. 7. COMMISSION AUTHORITY OVER TRADERS.

       (a) In General.--
       (1) Violations.--Section 9(a) of the Commodity Exchange Act 
     (7 U.S.C. 13(a)) is amended by inserting ``, including any 
     person trading on a foreign board of trade,'' after ``Any 
     person''.
       (2) Excessive speculation as a burden on interstate 
     commerce.--Section 4a(e) of the Commodity Exchange Act (7 
     U.S.C. 6a(e)) is amended by adding after ``fixed by the 
     Commission.'' the following: ``It shall be a violation of 
     this Act for any person located within the United States, its 
     territories, or possessions, or who enters trades into a 
     foreign board of trade's trade matching system from the 
     United States, its territories, or possessions, to violate 
     any bylaw, rule, regulation, or resolution of any foreign 
     board of trade or foreign futures authority fixing limits on 
     the amount of trading which may be done or positions which 
     may be held under contacts of a sale of an energy commodity 
     (as defined by the Commission) for future delivery or under 
     options on such contracts or commodities, that settle against 
     any price, including the daily or final settlement price, of 
     a contract or contracts listed for trading on a registered 
     entity.''
       (3) Restriction of futures trading to contract markets or 
     derivatives transaction execution facilities.--Section 4(b) 
     of the Commodity Exchange Act (7 U.S.C. 6(b)) is amended by 
     adding after the first sentence the following: ``The 
     Commission may adopt rules and regulations requiring the 
     keeping of books and records by any person located within the 
     United States, its territories, or possessions, or who enters 
     trades into a foreign board of trade's trade matching system 
     from the United States, its territories, or possessions.''
       (b) Consultation.--Prior to the issuance of any order to 
     reduce a position on a foreign board of trade located outside 
     located outside the United States, its territories, or 
     possessions, the Commission shall consult with the foreign 
     board of trade and the appropriate regulatory authority.
       (c) Administration.--Nothing in this subsection limits any 
     of the otherwise applicable authorities of the Commission.

     SEC. 8. DETAILED REPORTING FROM INDEX TRADERS AND SWAP 
                   DEALERS.

       Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as 
     amended by section 6) 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 defining and classifying index 
     traders and swap dealers (as those terms are defined in the 
     rulemaking by the Commission) for purposes of data reporting 
     requirements and setting routine detailed reporting 
     requirements for such entities in energy and agricultural 
     transactions within the jurisdiction of the Commission not 
     later than 60 days after the enactment of this subsection, 
     and issue a final rule within 120 days after the 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 positions in the 
     energy and agricultural futures markets, comparing these 
     positions and values to the speculative positions of bona 
     fide physical hedgers in those markets.
       ``(2) Report.--The Commission shall submit a report to the 
     Senate Committee on Agriculture, Nutrition, and Forestry and 
     the House Agriculture Committee, not later than September 15, 
     2008, regarding--
       ``(A) the scope of commodity index trading in the futures 
     markets;
       ``(B) whether and how the classification of index traders 
     and swap dealers in the futures markets can be improved for 
     regulatory reporting purposes;
       ``(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.''.
                                 ______
                                 
  SA 5156. Mr. CRAPO submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. 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. 2. 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 nonspeculative 
     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. 3. 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 2) 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;

[[Page S7375]]

       ``(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. 4. 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
       (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.
                                 ______
                                 
  SA 5157. Mr. ENZI (for himself and Mr. Barrasso) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows;

       At the appropriate place, insert the following:

     SEC. __. TERMINATION OF AUTHORITY TO DEDUCT AMOUNTS FROM 
                   SHARE OF OIL AND GAS LEASING REVENUES PROVIDED 
                   TO STATES.

       (a) In General.--Effective December 26, 2007, the matter 
     under the heading ``administrative provisions'' under the 
     heading ``Minerals Management Service'' of title I of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Subdivision F of Public Law 110-
     161; 121 Stat. 2109) is amended by striking the second 
     undesignated paragraph.
       (b) Administration.--Notwithstanding any other provision of 
     law, the Secretary of the Treasury and the Secretary of the 
     Interior shall not deduct any amount from or reduce the 
     amount of payments otherwise payable to States under section 
     35 of the Mineral Leasing Act (30 U.S.C. 191).
                                 ______
                                 
  SA 5158. Mr. ENZI submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows;

       Strike section 3.
                                 ______
                                 
  SA 5159. Mr. ENZI submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows;

       Strike section 6.
                                 ______
                                 
  SA 5160. Mr. STEVENS (for himself and Ms. Murkowski) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Supporting 
     Alternative and Viable Energy for America 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--LEASING PROGRAM FOR LAND WITHIN COASTAL PLAIN

Sec. 101. Definitions.
Sec. 102. Leasing program for land within the Coastal Plain.
Sec. 103. Lease sales.
Sec. 104. Grant of leases by the Secretary.
Sec. 105. Lease terms and conditions.
Sec. 106. Coastal plain environmental protection.
Sec. 107. Expedited judicial review.
Sec. 108. Rights-of-way and easements across Coastal Plain.
Sec. 109. Conveyance.
Sec. 110. Federal and State distribution of revenues.
Sec. 111. Local government impact aid and community service assistance.
Sec. 112. ANWR Alternative Energy Trust Fund.
Sec. 113. Prohibition on exports.
Sec. 114. Severability.

               TITLE II--OCS IMPACT READINESS ACT OF 2008

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Disposition of qualified outer continental shelf receipts 
              from outer continental shelf oil and gas leasing planning 
              areas.

                 TITLE III--ALASKA NATURAL GAS PIPELINE

Sec. 301. Discharges into navigable waters.
Sec. 302. Federal Coordinator.

          TITLE IV--INVENTORY OF ALASKA WATER POWER RESOURCES

Sec. 401. Inventory of Alaska water power resources.

                   TITLE V--NUCLEAR POWER GENERATION

         Subtitle A--Nuclear Power Technology and Manufacturing

Sec. 501. Definitions.
Sec. 502. Spent fuel recycling program.
Sec. 503. Financial incentives program.
Sec. 504. Forms of awards.
Sec. 505. Selection criteria.

                  Subtitle B--Accelerated Depreciation

Sec. 511. 5-year accelerated depreciation period for new nuclear power 
              plants.

                       TITLE VI--JUDICIAL REVIEW

Sec. 601. Judicial review.

                       TITLE VII--OIL SPECULATION

Sec. 701. Short title.
Sec. 702. Definition of institutional investor.
Sec. 703. Inspector General.
Sec. 704. Trading practices review with respect to index traders, swap 
              dealers, and institutional investors.
Sec. 705. Bona fide hedging transactions or positions.
Sec. 706. Speculation limits relating to speculators in energy markets.
Sec. 707. Large trader reporting with respect to index traders, swap 
              dealers, and institutional investors.
Sec. 708. Institutional investor speculation limits.

               TITLE VIII--OIL SPILL DAMAGES CONSISTENCY

Sec. 801. Short title.
Sec. 802. Punitive damages for discharges of oil or hazardous 
              substances.

                     TITLE IX--TELEWORK ENHANCEMENT

Sec. 901. Short title.
Sec. 902. Definitions.
Sec. 903. Executive Agencies telework requirement.
Sec. 904. Training and monitoring.
Sec. 905. Policy and support.
Sec. 906. Telework Managing Officer.
Sec. 907. Annual Report to Congress.
Sec. 908. Compliance of executive agencies.
Sec. 909. Extension of travel expenses test programs.

         TITLE I--LEASING PROGRAM FOR LAND WITHIN COASTAL PLAIN

     SEC. 101. DEFINITIONS.

       In this title:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as the ``1002 Coastal Plain Area'' on the 
     map.
       (2) Federal agreement.--The term ``Federal Agreement'' 
     means the Federal Agreement and Grant Right-of-Way for the 
     Trans-Alaska Pipeline issued on January 23, 1974, in 
     accordance with section 28 of the Mineral Leasing Act (30 
     U.S.C. 185) and the Trans-Alaska Pipeline Authorization Act 
     (43 U.S.C. 1651 et seq.).
       (3) Final statement.--The term ``Final Statement'' means 
     the final legislative environmental impact statement on the 
     Coastal Plain, dated April 1987, and prepared pursuant to 
     section 1002 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3142) and section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).
       (4) Map.--The term ``map'' means the map entitled ``Arctic 
     National Wildlife Refuge'', dated September 2005, and 
     prepared by the United States Geological Survey.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior (or the designee of the Secretary), acting 
     through the Director of the Bureau of Land Management in 
     consultation with the Director of the United States Fish and 
     Wildlife Service and in coordination with a State coordinator 
     appointed by the Governor of the State of Alaska.

     SEC. 102. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

       (a) In General.--
       (1) Authorization.--Congress authorizes the exploration, 
     leasing, development, production, and economically feasible 
     and prudent transportation of oil and gas in and from the 
     Coastal Plain.

[[Page S7376]]

       (2) Actions.--The Secretary shall take such actions as are 
     necessary--
       (A) to establish and implement, in accordance with this 
     title, a competitive oil and gas leasing program that will 
     result in an environmentally sound program for the 
     exploration, development, and production of the oil and gas 
     resources of the Coastal Plain while taking into 
     consideration the interests and concerns of residents of the 
     Coastal Plain, which is the homeland of the Kaktovikmiut 
     Inupiat; and
       (B) to administer this title through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (i) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, subsistence resources, and the environment; and
       (ii) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production to all exploration, development, 
     and production operations under this title in a manner that 
     ensures the receipt of fair market value by the public for 
     the mineral resources to be leased.
       (b) Repeal.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents contained 
     in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
     striking the item relating to section 1003.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
     seq.)--
       (A) the oil and gas pre-leasing and leasing program, and 
     activities authorized by this section in the Coastal Plain, 
     shall be considered to be compatible with the purposes for 
     which the Arctic National Wildlife Refuge was established; 
     and
       (B) no further findings or decisions shall be required to 
     implement that program and those activities.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The Final 
     Statement shall be considered to satisfy the requirements 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) that apply with respect to pre-leasing 
     activities, including exploration programs and actions 
     authorized to be taken by the Secretary to develop and 
     promulgate the regulations for the establishment of a leasing 
     program authorized by this title before the conduct of the 
     first lease sale.
       (3) Compliance with nepa for other actions.--
       (A) In general.--Before conducting the first lease sale 
     under this title, the Secretary shall prepare an 
     environmental impact statement under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with respect to the actions authorized by this title that are 
     not referred to in paragraph (2).
       (B) Identification and analysis.--Notwithstanding any other 
     law, in carrying out this paragraph, the Secretary shall not 
     be required--
       (i) to identify nonleasing alternative courses of action; 
     or
       (ii) to analyze the environmental effects of those courses 
     of action.
       (C) Identification of preferred action.--Not later than 18 
     months after the date of enactment of this Act, the Secretary 
     shall--
       (i) identify only a preferred action and a single leasing 
     alternative for the first lease sale authorized under this 
     title; and
       (ii) analyze the environmental effects and potential 
     mitigation measures for those 2 alternatives.
       (D) Public comments.--In carrying out this paragraph, the 
     Secretary shall consider only public comments that are filed 
     not later than 20 days after the date of publication of an 
     environmental analysis.
       (E) Effect of compliance.--Notwithstanding any other 
     provision of law, compliance with this paragraph shall be 
     considered to satisfy all requirements for the analysis and 
     consideration of the environmental effects of proposed 
     leasing under this title.
       (d) Relationship to State and Local Authority.--Nothing in 
     this title expands or limits any State or local regulatory 
     authority.
       (e) Special Areas.--
       (1) Designation.--
       (A) In general.--The Secretary, after consultation with the 
     State of Alaska, the North Slope Borough, Alaska, and the 
     City of Kaktovik, Alaska, may designate not more than 45,000 
     acres of the Coastal Plain as a special area if the Secretary 
     determines that the special area would be of such unique 
     character and interest as to require special management and 
     regulatory protection.
       (B) Sadlerochit spring area.--The Secretary shall designate 
     as a special area in accordance with subparagraph (A) the 
     Sadlerochit Spring area, comprising approximately 4,000 acres 
     as depicted on the map.
       (2) Management.--The Secretary shall manage each special 
     area designated under this subsection in a manner that--
       (A) respects and protects the Native people of the area; 
     and
       (B) preserves the unique and diverse character of the area, 
     including fish, wildlife, subsistence resources, and cultural 
     values of the area.
       (3) Exclusion from leasing or surface occupancy.--
       (A) In general.--The Secretary may exclude any special area 
     designated under this subsection from leasing.
       (B) No surface occupancy.--If the Secretary leases all or a 
     portion of a special area for the purposes of oil and gas 
     exploration, development, production, and related activities, 
     there shall be no surface occupancy of the land comprising 
     the special area.
       (4) Directional drilling.--Notwithstanding any other 
     provision of this subsection, the Secretary may lease all or 
     a portion of a special area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the special area.
       (f) Limitation on Closed Areas.--The Secretary may not 
     close land within the Coastal Plain to oil and gas leasing or 
     to exploration, development, or production except in 
     accordance with this title.
       (g) Regulations.--
       (1) In general.--Not later than 15 months after the date of 
     enactment of this Act, in consultation with appropriate 
     agencies of the State of Alaska, the North Slope Borough, 
     Alaska, and the City of Kaktovik, Alaska, the Secretary shall 
     issue such regulations as are necessary to carry out this 
     title, including rules and regulations relating to protection 
     of the fish and wildlife, fish and wildlife habitat, and 
     subsistence resources of the Coastal Plain.
       (2) Revision of regulations.--The Secretary may 
     periodically review and, as appropriate, revise the rules and 
     regulations issued under paragraph (1) to reflect any 
     significant scientific or engineering data that come to the 
     attention of the Secretary.

     SEC. 103. LEASE SALES.

       (a) In General.--Land may be leased pursuant to this title 
     to any person qualified to obtain a lease for deposits of oil 
     and gas under the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after that nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this title 
     shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--For the first lease 
     sale under this title, the Secretary shall offer for lease 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons, taking into 
     consideration nominations received pursuant to subsection 
     (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) not later than 22 months after the date of enactment of 
     this Act, conduct the first lease sale under this title;
       (2) not later than 90 days after the date of the completion 
     of the sale, evaluate the bids in the sale and issue leases 
     resulting from the sale; and
       (3) conduct additional sales at appropriate intervals if 
     sufficient interest in exploration or development exists to 
     warrant the conduct of the additional sales.

     SEC. 104. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--Upon payment by a lessee of such bonus as 
     may be accepted by the Secretary, the Secretary may grant to 
     the highest responsible qualified bidder in a lease sale 
     conducted pursuant to section 103 a lease for any land on the 
     Coastal Plain.
       (b) Subsequent Transfers.--No lease issued under this title 
     may be sold, exchanged, assigned, sublet, or otherwise 
     transferred except with the approval of the Secretary.

     SEC. 105. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this title shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent of the amount or value of the production 
     removed or sold from the lease, as determined by the 
     Secretary in accordance with regulations applicable to other 
     Federal oil and gas leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, such portions of the Coastal Plain to exploratory 
     drilling activities as are necessary to protect caribou 
     calving areas and other species of fish and wildlife;
       (3) require that each lessee of land within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of land within the Coastal Plain and any other 
     Federal land that is adversely affected in connection with 
     exploration, development, production, or transportation 
     activities within the Coastal Plain conducted by the lessee 
     or by any of the subcontractors or agents of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, that reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for land 
     required to be reclaimed under this title shall be, as nearly 
     as practicable--
       (A) a condition capable of supporting the uses that the 
     land was capable of supporting

[[Page S7377]]

     prior to any exploration, development, or production 
     activities; or
       (B) upon application by the lessee, to a higher or better 
     standard, as approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, fish and wildlife habitat, subsistence 
     resources, and the environment as required under section 
     102(a)(2);
       (7) provide that the lessee, and each agent and contractor 
     of a lessee, use their best efforts to provide a fair share 
     of employment and contracting for Alaska Natives and Alaska 
     Native Corporations from throughout the State of Alaska, as 
     determined by the level of obligation previously agreed to in 
     the 1974 agreement implementing section 29 of the Federal 
     Agreement and Grant of Right of Way for the Operation of the 
     Trans-Alaska Pipeline; and
       (8) contain such other provisions as the Secretary 
     determines to be necessary to ensure compliance with this 
     title and regulations issued under this title.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this title, and in recognizing 
     the proprietary interest of the Federal Government in labor 
     stability and in the ability of construction labor and 
     management to meet the particular needs and conditions of 
     projects to be developed under the leases issued pursuant to 
     this title (including the special concerns of the parties to 
     those leases), shall require that each lessee, and each agent 
     and contractor of a lessee, under this title negotiate to 
     obtain a project labor agreement for the employment of 
     laborers and mechanics on production, maintenance, and 
     construction under the lease.

     SEC. 106. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard To Govern 
     Authorized Coastal Plain Activities.--In accordance with 
     section 102, the Secretary shall administer this title 
     through regulations, lease terms, conditions, restrictions, 
     prohibitions, or stipulations that--
       (1) ensure, to the maximum extent practicable, that oil and 
     gas exploration, development, and production activities on 
     the Coastal Plain will result in no significant adverse 
     effect on fish and wildlife, fish and wildlife habitat, and 
     the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum surface acreage covered in 
     connection with the leasing program by production and support 
     facilities, including airstrips and any areas covered by 
     gravel berms or piers for support of pipelines, does not 
     exceed 2,000 acres on the Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall require, with respect to any proposed drilling and 
     related activities on the Coastal Plain, that--
       (1) a site-specific environmental analysis be made of the 
     probable effects, if any, that the drilling or related 
     activities will have on fish and wildlife, fish and wildlife 
     habitat, subsistence resources, subsistence uses, and the 
     environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the maximum extent practicable) any 
     significant adverse effect identified under paragraph (1); 
     and
       (3) the development of the plan occur after consultation 
     with--
       (A) each agency having jurisdiction over matters mitigated 
     by the plan;
       (B) the State of Alaska;
       (C) North Slope Borough, Alaska; and
       (D) the City of Kaktovik, Alaska.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this title, 
     the Secretary shall prepare and issue regulations, lease 
     terms, conditions, restrictions, prohibitions, or 
     stipulations designed to ensure, to the maximum extent 
     practicable, that the activities carried out on the Coastal 
     Plain under this title are conducted in a manner consistent 
     with the purposes and environmental requirements of this 
     title.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this title shall 
     require--
       (1) compliance with all applicable provisions of Federal 
     and State environmental law (including regulations);
       (2) implementation of and compliance with--
       (A) standards that are at least as effective as the safety 
     and environmental mitigation measures, as described in items 
     1 through 29 on pages 167 through 169 of the Final Statement, 
     on the Coastal Plain;
       (B) seasonal limitations, the duration of which shall not 
     exceed 120 days, on exploration, development, and related 
     activities, as necessary, to avoid significant adverse 
     effects during periods of concentrated fish and wildlife 
     breeding, denning, nesting, spawning, and migration;
       (C) design safety and construction standards for all 
     pipelines and any access and service roads that minimize, to 
     the maximum extent practicable, adverse effects on--
       (i) the passage of migratory species (such as caribou); and
       (ii) the flow of surface water by requiring the use of 
     culverts, bridges, or other structural devices;
       (D) prohibitions on general public access to, and use of, 
     all pipeline access and service roads;
       (E) stringent reclamation and rehabilitation requirements 
     in accordance with this title for the removal from the 
     Coastal Plain of all oil and gas development and production 
     facilities, structures, and equipment on completion of oil 
     and gas production operations, except in a case in which the 
     Secretary determines that those facilities, structures, or 
     equipment--
       (i) would assist in the management of the Arctic National 
     Wildlife Refuge; and
       (ii) are donated to the United States for that purpose;
       (F) appropriate prohibitions or restrictions on--
       (i) access by all modes of transportation;
       (ii) sand and gravel extraction; and
       (iii) use of explosives;
       (G) reasonable stipulations for protection of cultural and 
     archaeological resources;
       (H) measures to protect surface water, including--
       (i) avoidance, to the maximum extent practicable, of 
     springs, streams, and river systems;
       (ii) the protection of natural surface drainage patterns 
     and wetland and riparian habitats; and
       (iii) the regulation of methods or techniques for 
     developing or transporting adequate supplies of water for 
     exploratory drilling; and
       (I) research, monitoring, and reporting requirements;
       (3) that exploration activities (except surface geological 
     studies) be limited to the period between approximately 
     November 1 and May 1 of each year and be supported, if 
     necessary, by ice roads, winter trails with adequate snow 
     cover, ice pads, ice airstrips, and air transport methods 
     (except that those exploration activities may be permitted at 
     other times if the Secretary determines that the exploration 
     will have no significant adverse effect on fish and wildlife, 
     fish and wildlife habitat, subsistence resources, and the 
     environment of the Coastal Plain);
       (4) consolidation of facility siting;
       (5) avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife;
       (6) treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including, in accordance with 
     applicable Federal and State environmental laws (including 
     regulations)--
       (A) preparation of an annual waste management report;
       (B) development and implementation of a hazardous materials 
     tracking system; and
       (C) prohibition on the use of chlorinated solvents;
       (7) fuel storage and oil spill contingency planning;
       (8) conduct periodic field crew environmental briefings;
       (9) avoidance of significant adverse effects on subsistence 
     hunting, fishing, and trapping;
       (10) compliance with applicable air and water quality 
     standards; and
       (11) appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping may be limited.
       (e) Considerations.--In preparing and issuing regulations, 
     lease terms, conditions, restrictions, prohibitions, or 
     stipulations under this section, the Secretary shall take 
     into consideration--
       (1) the stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement;
       (2) the environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 through 37.33 of title 50, Code of Federal 
     Regulations; and
       (3) the land use stipulations for exploratory drilling on 
     the KIC-ASRC private land described in Appendix 2 of the 
     agreement between Arctic Slope Regional Corporation and the 
     United States dated August 9, 1983.
       (f) Facility Consolidation Planning.--
       (1) In general.--After providing for public notice and 
     comment, the Secretary shall prepare and periodically update 
     a plan to govern, guide, and direct the siting and 
     construction of facilities for the exploration, development, 
     production, and transportation of oil and gas resources from 
     the Coastal Plain.
       (2) Objectives.--The objectives of the plan shall be--
       (A) the avoidance of unnecessary duplication of facilities 
     and activities;
       (B) the encouragement of consolidation of common facilities 
     and activities;
       (C) the location or confinement of facilities and 
     activities to areas that will minimize impact on fish and 
     wildlife, fish and wildlife habitat, subsistence resources, 
     and the environment;
       (D) the use of existing facilities, to the maximum extent 
     practicable; and
       (E) the enhancement of compatibility between wildlife 
     values and development activities.
       (g) Access to Public Land.--The Secretary shall--
       (1) manage public land in the Coastal Plain in accordance 
     with subsections (a) and (b) of

[[Page S7378]]

     section 811 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3121); and
       (2) ensure that local residents shall have reasonable 
     access to public land in the Coastal Plain for traditional 
     uses.

     SEC. 107. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaints.--
       (1) Deadline.--A complaint seeking judicial review of a 
     provision of this title or an action of the Secretary under 
     this title shall be filed during the 90-day period beginning 
     on the date on which the action being challenged was carried 
     out.
       (2) Venue.--A complaint seeking judicial review of a 
     provision of this title or an action of the Secretary under 
     this title shall be filed in the United States Court of 
     Appeals for the District of Columbia.
       (3) Scope.--
       (A) In general.--Judicial review of a decision of the 
     Secretary under this title (including an environmental 
     analysis of such a lease sale) shall be--
       (i) limited to a review of whether the decision is in 
     accordance with this title; and
       (ii) based on the administrative record of the decision.
       (B) Presumptions.--Any identification by the Secretary of a 
     preferred course of action relating to a lease sale, and any 
     analysis by the Secretary of environmental effects, under 
     this title shall be presumed to be correct unless proven 
     otherwise by clear and convincing evidence.
       (b) Limitation on Other Review.--Any action of the 
     Secretary that is subject to judicial review under this 
     section shall not be subject to judicial review in any civil 
     or criminal proceeding.

     SEC. 108. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

       For purposes of section 1102(4)(A) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), any 
     rights-of-way or easements across the Coastal Plain for the 
     exploration, development, production, or transportation of 
     oil and gas shall be considered to be established incident to 
     the management of the Coastal Plain under this section.

     SEC. 109. CONVEYANCE.

       Notwithstanding section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
     remove any cloud on title to land, and to clarify land 
     ownership patterns in the Coastal Plain, the Secretary 
     shall--
       (1) to the extent necessary to fulfill the entitlement of 
     the Kaktovik Inupiat Corporation under sections 12 and 14 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 
     1613), as determined by the Secretary, convey to that 
     Corporation the surface estate of the land described in 
     paragraph (1) of Public Land Order 6959, in accordance with 
     the terms and conditions of the agreement between the 
     Secretary, the United States Fish and Wildlife Service, the 
     Bureau of Land Management, and the Kaktovik Inupiat 
     Corporation, dated January 22, 1993; and
       (2) convey to the Arctic Slope Regional Corporation the 
     remaining subsurface estate to which that Corporation is 
     entitled under the agreement between that corporation and the 
     United States, dated August 9, 1983.

     SEC. 110. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

       (a) In General.--Notwithstanding any other provision of 
     law, of the amount of adjusted bonus, rental, and royalty 
     revenues from Federal oil and gas leasing and operations 
     authorized under this title for each fiscal year--
       (1) 50 percent shall be paid to the State of Alaska each 
     fiscal year, of which not less than 37.5 percent shall be 
     used each fiscal year to provide local government impact aid 
     and community service assistance under section 111; and
       (2) the balance shall be transferred to the ANWR 
     Alternative Energy Trust Fund established by section 112.
       (b) Payments to Alaska.--Payments to the State of Alaska 
     under this section shall be made semiannually.

     SEC. 111. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Establishment of Fund.--
       (1) In general.--As a condition on the receipt of funds 
     under section 110(a)(1), the State of Alaska shall establish 
     in the treasury of the State, and administer in accordance 
     with this section, a fund to be known as the ``Coastal Plain 
     Local Government Impact Aid Assistance Fund'' (referred to in 
     this section as the ``Fund'').
       (2) Deposits.--Subject to paragraph (1), the amount made 
     available under section 110(a)(1) to provide local government 
     impact aid and community service assistance shall be 
     deposited into the Fund.
       (3) Investment.--The Governor of the State of Alaska 
     (referred to in this section as the ``Governor'') shall 
     invest amounts in the Fund in interest-bearing securities of 
     the United States or the State of Alaska.
       (b) Assistance.--The Governor, in cooperation with the 
     Mayor of the North Slope Borough, shall use amounts in the 
     Fund to provide assistance to North Slope Borough, Alaska, 
     the City of Kaktovik, Alaska, and any other borough, 
     municipal subdivision, village, or other community in the 
     State of Alaska that is directly impacted by exploration for, 
     or the production of, oil or gas on the Coastal Plain under 
     this title, or any Alaska Native Regional Corporation acting 
     on behalf of the villages and communities within its region 
     whose lands lie along the right of way of the Trans Alaska 
     Pipeline System, as determined by the Governor.
       (c) Application.--
       (1) In general.--To receive assistance under subsection 
     (b), a community or Regional Corporation described in that 
     subsection shall submit to the Governor, or to the Mayor of 
     the North Slope Borough, an application in such time, in such 
     manner, and containing such information as the Governor may 
     require.
       (2) Action by north slope borough.--The Mayor of the North 
     Slope Borough shall submit to the Governor each application 
     received under paragraph (1) as soon as practicable after the 
     date on which the application is received.
       (3) Assistance of governor.--The Governor shall assist 
     communities in submitting applications under this subsection, 
     to the maximum extent practicable.
       (d) Use of Funds.--A community or Regional Corporation that 
     receives funds under subsection (b) may use the funds--
       (1) to plan for mitigation, implement a mitigation plan, or 
     maintain a mitigation project to address the potential 
     effects of oil and gas exploration and development on 
     environmental, social, cultural, recreational, and 
     subsistence resources of the community;
       (2) to develop, carry out, and maintain--
       (A) a project to provide new or expanded public facilities; 
     or
       (B) services to address the needs and problems associated 
     with the effects described in paragraph (1), including 
     firefighting, police, water and waste treatment, first 
     responder, and other medical services;
       (3) to compensate residents of the Coastal Plain for 
     significant damage to environmental, social, cultural, 
     recreational, or subsistence resources; and
       (4) in the City of Kaktovik, Alaska--
       (A) to develop a mechanism for providing members of the 
     Kaktovikmiut Inupiat community an opportunity to--
       (i) monitor development on the Coastal Plain; and
       (ii) provide information and recommendations to the 
     Governor based on traditional aboriginal knowledge of the 
     natural resources, flora, fauna, and ecological processes of 
     the Coastal Plain; and
       (B) to establish a local coordination office, to be managed 
     by the Mayor of the North Slope Borough, in coordination with 
     the City of Kaktovik, Alaska--
       (i) to coordinate with and advise developers on local 
     conditions and the history of areas affected by development;
       (ii) to provide to the Committee on Resources of the House 
     of Representatives and the Committee on Energy and Natural 
     Resources of the Senate annual reports on the status of the 
     coordination between developers and communities affected by 
     development;
       (iii) to collect from residents of the Coastal Plain 
     information regarding the impacts of development on fish, 
     wildlife, habitats, subsistence resources, and the 
     environment of the Coastal Plain; and
       (iv) to ensure that the information collected under clause 
     (iii) is submitted to--

       (I) developers; and
       (II) any appropriate Federal agency.

     SEC. 112. ANWR ALTERNATIVE ENERGY TRUST FUND.

       (a) Establishment of Trust Fund.--There is established in 
     the Treasury of the United States a trust fund to be known as 
     the ``ANWR Alternative Energy Trust Fund'', consisting of 
     such amounts as may be transferred to the ANWR Alternative 
     Energy Trust Fund as provided in section 110(a)(2).
       (b) Expenditures From ANWR Alternative Energy Trust Fund.--
       (1) In general.--Amounts in the ANWR Alternative Energy 
     Trust Fund shall be available without further appropriation 
     to carry out specified provisions of the Energy Policy Act of 
     2005 (Public Law 109-58; referred to in this section as 
     ``EPAct2005''), the Energy Independence and Security Act of 
     2007 (Public Law 110-140; referred to in this section as 
     ``EISAct2007''), and subtitle A of title V of this Act, as 
     follows:

 
                                                      The following
                                                   percentage of annual
                                                   receipts to the ANWR
                                                    Alternative Energy
        To carry out the provisions of:           Trust Fund, but not to
                                                   exceed the limit on
                                                  amount authorized, if
                                                           any:
 
EPAct2005:
  Section 210..................................              1.5 percent
  Section 242..................................              1.0 percent
  Section 369..................................              2.0 percent
  Section 401..................................              6.0 percent
  Section 812..................................              6.0 percent
  Section 931..................................             16.0 percent
  Section 942..................................              1.5 percent
  Section 962..................................              3.0 percent
  Section 968..................................              1.5 percent
  Section 1704.................................              5.5 percent
EISAct2007:
  Section 207..................................             15.0 percent
  Section 607..................................              1.0 percent
  Title VI, Subtitle B.........................              3.0 percent
  Title VI, Subtitle C.........................              1.5 percent
  Section 641..................................              9.0 percent
  Title VII, Subtitle A........................             10.0 percent
  Section 1112.................................              1.5 percent
  Section 1304.................................              5.0 percent
  Title V of this Act, Subtitle A:.............            10.0 percent.
 

       (2) Apportionment of excess amount.--Notwithstanding 
     paragraph (1), any amounts allocated under paragraph (1) that 
     are in excess of the amounts authorized in the applicable 
     cited section or subtitle of EPAct2005 and EISAct2007 shall 
     be reallocated to the remaining sections and subtitles cited 
     in

[[Page S7379]]

     paragraph (1), up to the amounts otherwise authorized by law 
     to carry out those sections and subtitles, in proportion to 
     the amounts authorized by law to be appropriated for those 
     other sections and subtitles.

     SEC. 113. PROHIBITION ON EXPORTS.

       An oil or gas lease issued under this title shall prohibit 
     the exportation of oil or gas produced under the lease.

     SEC. 114. SEVERABILITY.

       If any provision of this title, or the application of such 
     provision to any person or circumstance, is held to be 
     unconstitutional, the remainder of this title and the 
     application of such provisions to any person or circumstance 
     shall not be affected thereby.

               TITLE II--OCS IMPACT READINESS ACT OF 2008

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``OCS Impact Readiness Act 
     of 2008''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Coastal political subdivision.--The term ``coastal 
     political subdivision'', with respect to a Fairness State, 
     means a county-equivalent subdivision of a Fairness State--
       (A) all or a portion of which lies within the coastal zone 
     (as defined in section 304 of the Coastal Zone Management Act 
     of 1972 (16 U.S.C. 1453); and
       (B) the closest point of which is not more than 300 statute 
     miles from the geographical center of any leased tract.
       (2) Distance.--The term ``distance'' means minimum great 
     circle distance.
       (3) Fairness state.--The term ``Fairness State'' means a 
     coastal State with a coastal seaward boundary within a 
     distance of 300 statute miles of the geographical center of a 
     leased tract in an outer Continental Shelf planning area 
     that, as of January 1, 2000--
       (A) had no oil or natural gas production; and
       (B) is not a ``Gulf producing State'' (as defined in 
     section 102 of the Gulf of Mexico Energy Security Act of 2006 
     (43 U.S.C. 1331 note; Public Law 109-432)).
       (4) Leased tract.--The term ``leased tract'' means a tract 
     leased under the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) for the purpose of drilling for, developing, 
     and producing oil or natural gas resources.
       (5) Qualified outer continental shelf receipts.--
       (A) In general.--The term ``qualified outer Continental 
     Shelf receipts'' means all amounts received by the United 
     States, in the fiscal year immediately following the fiscal 
     year in which this Act is enacted and each fiscal year 
     thereafter--
       (i) from each leased tract or portion of a leased tract, 
     the geographical center of which lies within a distance of 
     300 statute miles from any part of the coastline of a 
     Fairness State, including--

       (I) bonus bids;
       (II) rents;
       (III) royalties (including the value of royalties taken in 
     kind);
       (IV) net profit share payments;
       (V) fees; and
       (VI) related late payment interest; and

       (ii) from leases entered into on or after January 1, 2000.
       (B) Exclusions.--The term ``qualified outer Continental 
     Shelf receipts'' does not include--
       (i) receipts from the forfeiture of a bond or other surety 
     securing obligations other than royalties, or civil 
     penalties; or
       (ii) receipts generated from leases subject to section 8(g) 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)).
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 203. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF 
                   RECEIPTS FROM OUTER CONTINENTAL SHELF OIL AND 
                   GAS LEASING PLANNING AREAS.

       (a) In General.--Notwithstanding section 9 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1338) and subject to 
     the other provisions of this section, for each applicable 
     fiscal year, the Secretary of the Treasury shall deposit--
       (1) 62.5 percent of qualified outer Continental Shelf 
     receipts in the miscellaneous receipts of the Treasury; and
       (2) 37.5 percent of qualified outer Continental Shelf 
     receipts in a special account in the Treasury that the 
     Secretary shall disburse to Fairness States and certain 
     coastal political subdivisions of those Fairness States.
       (b) Allocation Among Fairness States and Their Coastal 
     Political Subdivisions.--
       (1) Allocation among fairness states.--
       (A) In general.--Effective for the fiscal year immediately 
     following the fiscal year in which this Act is enacted and 
     each fiscal year thereafter, the amount made available under 
     subsection (a)(2) shall be allocated by the Secretary to each 
     Fairness State in amounts (based on a formula established by 
     the Secretary by regulation) that are inversely proportional 
     to the respective distances between the point on the 
     coastline of each Fairness State that is closest to the 
     geographical center of the applicable leased tract and the 
     geographical center of the leased tract.
       (B) Single fairness state.--If only 1 Fairness State is 
     within a distance of 300 miles of the geographical center of 
     a lease described in subparagraph (A), the entire amount made 
     available under subsection (a)(2) from the lease shall be 
     allocated to that Fairness State.
       (2) Allocation among coastal political subdivisions of 
     fairness states.--
       (A) In general.--The Secretary shall pay 40 percent of the 
     allocable share of each Fairness State, as determined under 
     paragraph (1), to certain coastal political subdivisions of 
     the Fairness State.
       (B) Allocation.--
       (i) In general.--For each leased tract used to calculate 
     the allocation for a Fairness State, the Secretary shall pay 
     each coastal political subdivision located within a distance 
     of 300 miles of the geographical center of the leased tract 
     based on the relative distance of the coastal political 
     subdivision from the leased tract in accordance with clauses 
     (ii) and (iii).
       (ii) Determination of distances.--For each coastal 
     political subdivision described in clause (i), the Secretary 
     shall determine the distance between the point on the coastal 
     political subdivision coastline closest to the geographical 
     center of the leased tract and the geographical center of the 
     tract.
       (iii) Inversely proportional allocation.--The Secretary 
     shall divide and allocate the qualified Outer Continental 
     Shelf receipts derived from the leased tract among coastal 
     political subdivisions described in clause (i) in amounts 
     that are inversely proportional to the distances determined 
     under clause (ii).
       (c) Timing.--The amounts required to be deposited under 
     subsection (a)(2) for the applicable fiscal year shall be 
     made available in accordance with subsection (a)(2) during 
     the first 90 days of the fiscal year immediately following 
     the applicable fiscal year.
       (d) Authorized Uses.--Each Fairness State and coastal 
     political subdivision shall use all amounts received under 
     subsection (b), in accordance with all applicable Federal and 
     State laws, only for 1 or more of the following purposes:
       (1) Projects and activities for the purposes of coastal 
     protection (including conservation), coastal restoration, 
     storm protection, and infrastructure directly affected by 
     coastal wetland and tundra losses.
       (2) Mitigation of damage to fish, wildlife, or natural 
     resources.
       (3) Implementation of a federally-approved marine, coastal, 
     or comprehensive conservation management plan.
       (4) Mitigation of the impact of outer Continental Shelf 
     activities through the funding of onshore infrastructure 
     projects.
       (5) Any other purpose authorized for the use of those 
     amounts under State law.
       (e) Revenue Sharing From Areas in Alaska Adjacent Zone.--
       (1) In general.--Subject to paragraphs (2) through (4), 
     revenues from production that occurs beginning on the date 
     that is 5 years after the date of enactment of this Act in an 
     area in the Alaska Adjacent Zone shall be distributed in the 
     same proportion as provided in subsection (b).
       (2) Establishment of alaska offshore continental shelf 
     coordination office.--Before disbursing funds otherwise 
     allocable to coastal political subdivisions in the State of 
     Alaska under subsection (b)(2), the Secretary shall annually 
     set aside $10,000,000 for an Alaska Offshore Continental 
     Shelf Coordination Office to be established and maintained by 
     the Mayor of the North Slope Borough.
       (3) Deposits.--
       (A) In general.--Subject to subparagraph (B), for each 
     fiscal year, the Secretary shall pay to the North Slope 
     Borough $10,000,000 from the amount otherwise allocable to 
     coastal political subdivisions in the State of Alaska under 
     subsection (b)(2) for the purpose of establishing and 
     maintaining a local coordination office.
       (B) Insufficient amounts.--If, for any fiscal year, less 
     than $10,000,000 is available under subsection (b)(2), the 
     Secretary shall set aside and pay to the North Slope Borough 
     all funds available under subsection (b)(2) for the purpose 
     of establishing and maintaining the Alaska Offshore 
     Continental Shelf Coordination Office.
       (4) Use of funds for local coordination office.--The North 
     Slope Borough shall use amounts received under paragraph (3), 
     in accordance with all applicable Federal and State laws, to 
     establish a local coordination office--
       (A) to coordinate with and advise developers on local 
     conditions and the history of areas affected by development;
       (B) to provide to the Committee on Natural Resources of the 
     House of Representatives and the Committee on Energy and 
     Natural Resources of the Senate annual reports on the status 
     of the coordination between developers and communities 
     affected by development;
       (C) to collect from residents of the North Slope 
     information regarding the impacts of development on marine 
     wildlife, coastal habitats, marine and coastal subsistence 
     resources, and the marine and coastal environment of the 
     North Slope region of the State of Alaska; and
       (D) to ensure that the information collected under 
     subparagraph (C) is submitted to--
       (i) developers of the Alaska outer Continental Shelf; and
       (ii) any appropriate Federal agency.
       (f) Limitations on Amount of Distributed Qualified Outer 
     Continental Shelf Receipts.--The total amount of qualified 
     outer Continental Shelf receipts made available under 
     subsection (a)(2) to an individual Fairness State and coastal 
     political subdivisions of the Fairness State shall not exceed 
     $500,000,000 for each fiscal year, as indexed

[[Page S7380]]

     for United States dollar inflation from fiscal year 2008 (as 
     measured by the Consumer Price Index).

                 TITLE III--ALASKA NATURAL GAS PIPELINE

     SEC. 301. DISCHARGES INTO NAVIGABLE WATERS.

       Section 104 of the Alaska Natural Gas Pipeline Act (15 
     U.S.C. 720b) is amended by adding at the end the following:
       ``(e) Discharges Into Navigable Waters.--The discharge of 
     dredged or fill material into the navigable waters at any 
     site necessary for the construction of the pipeline under 
     this Act or to otherwise carry out this Act shall not be 
     subject to section 404 of the Federal Water Pollution Control 
     Act (33 U.S.C. 1251) (including any consultation or 
     mitigation requirements of that section) unless the discharge 
     directly enters into navigable waters that exhibit a 
     continuous, visible surface flow for a substantial part of 
     the year during which the discharge takes place.''.

     SEC. 302. FEDERAL COORDINATOR.

       (a) Prohibition of Certain Actions.--Section 106(d)(3) of 
     the Alaska Natural Gas Pipeline Act (15 U.S.C. 720d(d)(3)) is 
     amended by striking ``Unless required by law'' and inserting 
     ``Unless explicitly required by statute''.
       (b) State Coordination.--Section 106(e) of the Alaska 
     Natural Gas Pipeline Act (15 U.S.C. 720d(e)) is amended by 
     adding at the end the following:
       ``(3) Administrative compliance.--The Federal Coordinator 
     may establish a schedule and deadline for administrative 
     compliance of Federal agencies with this Act using authority 
     that is commensurate with and parallel to the authority 
     provided to the Commission under section 104(c)(1).''.
       (c) Agency Authorized Officers.--Section 106(h) of the 
     Alaska Natural Gas Pipeline Act (15 U.S.C. 720d(h)) is 
     amended by adding at the end the following:
       ``(5) Agency authorized officers.--The Federal Coordinator 
     may require a Federal agency to designate and provide 
     mutually-agreed on agency authorized officers to the Office 
     of the Federal Coordinator for purposes of expediting and 
     coordinating the duties of the agency in furtherance of the 
     objectives of the Federal Coordinator.''.

          TITLE IV--INVENTORY OF ALASKA WATER POWER RESOURCES

     SEC. 401. INVENTORY OF ALASKA WATER POWER RESOURCES.

       (a) In General.--The Secretary of Energy, in consultation 
     with representatives of the State of Alaska, shall conduct an 
     inventory of water power resources of the State of Alaska, 
     including hydropower, stream, and ocean (including current, 
     wave, tidal, kinetic, and thermal) resources.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress, the President, and the 
     Governor of the State of Alaska a report describing the 
     results of the inventory.

                   TITLE V--NUCLEAR POWER GENERATION

         Subtitle A--Nuclear Power Technology and Manufacturing

     SEC. 501. DEFINITIONS.

       In this subtitle:
       (1) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the costs of engineering tasks 
     relating to--
       (A) the redesign of manufacturing processes to produce 
     qualifying components and nuclear power generation 
     technologies;
       (B) the design of new tooling and equipment for production 
     facilities that produce qualifying components and nuclear 
     power generation technologies; and
       (C) the establishment or expansion of manufacturing or 
     processing operations for qualifying components and nuclear 
     power generation technologies.
       (2) Nuclear power generation.--The term ``nuclear power 
     generation'' means generation of electricity by an electric 
     generation unit that--
       (A) emits no carbon dioxide into the atmosphere;
       (B) uses uranium as its fuel source; and
       (C) was placed into commercial service after the date of 
     enactment of this Act.
       (3) Nuclear power generation technology.--The term 
     ``nuclear power generation technology'' means a technology 
     used to produce nuclear power generation.
       (4) Qualifying component.--The term ``qualifying 
     component'' means a component that the Secretary determines 
     to be specially designed for nuclear power generation 
     technology.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 502. SPENT FUEL RECYCLING PROGRAM.

       (a) Purpose.--It is the policy of the United States to 
     recycle spent nuclear fuel to advance energy independence by 
     maximizing the energy potential of nuclear fuel in a 
     proliferation-resistant manner that reduces the quantity of 
     waste dedicated to a permanent Federal repository.
       (b) Spent Fuel Recycling Research and Development 
     Facility.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall begin construction 
     of a spent fuel recycling research and development facility.
       (2) Purpose.--The facility described in paragraph (1) shall 
     serve as the lead site for continuing research and 
     development of advanced nuclear fuel cycles and separation 
     technologies.
       (3) Site selection.--In selecting a site for the facility, 
     the Secretary shall give preference to a site that has--
       (A) the most technically sound bid;
       (B) a demonstrated technical expertise in spent fuel 
     recycling; and
       (C) proximity to existing and proposed nuclear reactors.
       (c) Contracts.--The Secretary shall use amounts made 
     available under section 112(b), and such other amounts as are 
     appropriated to carry out this section, to enter into long-
     term contracts with private sector entities for the recycling 
     of spent nuclear fuel.
       (d) Competitive Selection.--Contracts awarded under 
     subsection (c) shall be awarded on the basis of a competitive 
     bidding process that--
       (1) maximizes the competitive efficiency of the projects 
     funded;
       (2) best serves the goal of reducing the amount of waste 
     requiring disposal under this Act; and
       (3) ensures adequate protection against the proliferation 
     of nuclear materials that could be used in the manufacture of 
     nuclear weapons.
       (e) Regulatory Authority.--Not later than 1 year after the 
     date of enactment of this Act, the Nuclear Regulatory 
     Commission, in collaboration with the Secretary, shall 
     promulgate regulations for the licensing of facilities for 
     recovery and use of spent nuclear fuel that provide 
     reasonable assurance that licenses issued for that purpose 
     will not be counter to the defense, security, and national 
     interests of the United States.

     SEC. 503. FINANCIAL INCENTIVES PROGRAM.

       (a) In General.--For each fiscal year beginning on or after 
     October 1, 2010, the Secretary shall use amounts made 
     available under section 112(b) (but not to exceed a total 
     amount of $1,000,000,000 for any fiscal year) to 
     competitively award financial incentives under this subtitle 
     in the following technology categories:
       (1) The production of electricity from new nuclear power 
     generation.
       (2) Facility establishment or conversion by manufacturers 
     and suppliers of nuclear power generation technology and 
     qualifying components.
       (b) Requirements.--
       (1) In general.--The Secretary shall make awards under this 
     section to--
       (A) domestic producers of new nuclear power generation;
       (B) manufacturers and suppliers of nuclear power generation 
     technology and qualifying components; and
       (C) owners or operators of existing nuclear power 
     generation facilities.
       (2) Basis for awards.--The Secretary shall make awards 
     under this section--
       (A) in the case of producers of new nuclear power 
     generation, based on the bid of each producer in terms of 
     dollars per megawatt-hour of electricity generated;
       (B) in the case of manufacturers and suppliers of nuclear 
     power generation technology and qualifying components, based 
     on the criteria described in section 505; and
       (C) in the case of owners or operators of existing nuclear 
     power generating facilities, based upon criteria described in 
     section 505.
       (3) Acceptance of bids.--In making awards under this 
     subsection, the Secretary shall--
       (A) solicit bids for reverse auction from appropriate 
     producers, manufacturers, and suppliers, as determined by the 
     Secretary; and
       (B) award financial incentives to the producers, 
     manufacturers, and suppliers that submit the lowest bids that 
     meet the requirements established by the Secretary.

     SEC. 504. FORMS OF AWARDS.

       (a) Nuclear Power Generators.--
       (1) In general.--An award for nuclear power generation 
     under this subtitle shall be in the form of a contract to 
     provide a production payment for commercial service of the 
     generation unit in an amount equal to the product obtained by 
     multiplying--
       (A) the amount bid by the producer of the nuclear power 
     generation; and
       (B) except as provided in paragraph (2), the net megawatt-
     hours generated by the nuclear power generation unit each 
     year during the first 10 years following the end of the 
     calendar year of the award.
       (2) First year.--For purposes of paragraph (1)(B), the 
     first year of commercial service of the generating unit shall 
     be within 5 years of the end of the calendar year of the 
     award.
       (b) Manufacturing of Nuclear Power Generation Technology.--
       (1) In general.--An award for facility establishment or 
     conversion costs for nuclear power generation technology 
     under this subtitle shall be in an amount equal to not more 
     than 30 percent of the cost of--
       (A) establishing, reequipping, or expanding a manufacturing 
     facility to produce--
       (i) qualifying nuclear power generation technology; or
       (ii) qualifying components;
       (B) engineering integration costs of nuclear power 
     generation technology and qualifying components; and
       (C) property, machine tools, and other equipment acquired 
     or constructed primarily to enable the recipient to test 
     equipment necessary for the construction or operation of a 
     nuclear power generation facility.
       (2) Amount.--The Secretary shall use the amounts made 
     available to carry out this section to make awards to 
     entities for the manufacturing of nuclear power generation 
     technology.

     SEC. 505. SELECTION CRITERIA.

       In making awards under this subtitle to producers, 
     manufacturers, and suppliers of

[[Page S7381]]

     nuclear power generation technology and qualifying 
     components, the Secretary shall select producers, 
     manufacturers, and suppliers that--
       (1) document the greatest use of domestically-sourced parts 
     and components;
       (2) return to productive service existing idle 
     manufacturing capacity;
       (3) are located in States or political subdivisions with 
     the greatest dependence on fossil fuel-based energy;
       (4) demonstrate a high probability of commercial success; 
     and
       (5) meet other appropriate criteria, as determined by the 
     Secretary.

                  Subtitle B--Accelerated Depreciation

     SEC. 511. 5-YEAR ACCELERATED DEPRECIATION PERIOD FOR NEW 
                   NUCLEAR POWER PLANTS.

       (a) In General.--Subparagraph (B) of section 168(e)(3) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``and'' at the end of clause (v), by striking the period at 
     the end of clause (vi)(III) and inserting ``, and'', and by 
     inserting after clause (vi) the following new clause:
       ``(vii) any advanced nuclear power facility (as defined in 
     section 45J(d)(1), determined without regard to subparagraph 
     (B) thereof) the original use of which commences with the 
     taxpayer after December 31, 2008.''.
       (b) Conforming Amendment.--Section 168(e)(3)(E)(vii) of the 
     Internal Revenue Code of 1986 is amended by inserting ``and 
     not described in subparagraph (B)(vii) of this paragraph'' 
     after ``section 1245(a)(3)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2008.

                       TITLE VI--JUDICIAL REVIEW

     SEC. 601. JUDICIAL REVIEW.

       (a) Exclusive Jurisdiction.--Except for review by the 
     Supreme Court on writ of certiorari, the United States Court 
     of Appeals for the District of Columbia Circuit shall have 
     original and exclusive jurisdiction to determine--
       (1) the validity of any final order or action (including 
     any failure to act) of any Federal agency or officer under or 
     in furtherance of titles II and V;
       (2) the constitutionality of any provision of this Act, or 
     any decision made or action taken under or in furtherance of 
     titles II and V; and
       (3) the adequacy of any environmental impact statement or 
     similar analysis required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to 
     any action under or in furtherance of titles II and V, 
     including--
       (A) the final environmental impact statement for Chukchi 
     Sea Planning Area Oil and Gas Lease Sale 193 as the statement 
     relates to activities proposed and undertaken in affected 
     areas, including activities to lease blocks--
       (i) NR 03-01;
       (ii) NR 03-02;
       (iii) NR 03-03;
       (iv) NR 03-04;
       (v) NR 03-08; and
       (vi) NR 04-01; and
       (B) the environmental assessment for Proposed Beaufort Sea 
     Planning Area Oil and Gas Lease Sale 202 as the assessment 
     relates to activities proposed and undertaken in affected 
     areas, including activities to lease blocks--
       (i) NR 05-01;
       (ii) NR 05-02;
       (iii) NR 05-04;
       (iv) NR 06-03;
       (v) NR 06-04;
       (vi) NR 07-03; and
       (vii) NR 07-05.
       (b) Deadline for Filing Claim.--A claim arising under title 
     II or V may be brought not later than 60 days after the date 
     of the decision or action giving rise to the claim.
       (c) Expedited Consideration.--The United States Court of 
     Appeals for the District of Columbia Circuit shall set any 
     action brought under subsection (a) for expedited 
     consideration, taking into account the national interest of 
     enhancing national energy security by providing access to the 
     significant resources needed to meet the continuing and 
     anticipated domestic demand for energy.
       (d) Administrative Appeal.--
       (1) In general.--The Secretary of the Interior and the 
     Secretary of Energy may not extend the time period for 
     administrative review of, or action against, any project, 
     proposal, or activity taken under title II or V.
       (2) Constructive approval.--If no decision on 
     administrative review of an action under title II or V is 
     made within the time period required under that title, the 
     decision shall be considered affirmed.

                       TITLE VII--OIL SPECULATION

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Oil Speculation Control 
     Act of 2008''.

     SEC. 702. DEFINITION OF INSTITUTIONAL INVESTOR.

       (a) Definition.--Section 1a of the Commodity Exchange Act 
     (7 U.S.C. 1a) is amended--
       (1) by redesignating paragraphs (22) through (34) as 
     paragraphs (23) through (35), respectively; and
       (2) by inserting after paragraph (21) the following:
       ``(22) Institutional investor.--The term `institutional 
     investor' means a long-term investor in financial markets 
     (including pension funds, endowments, and foundations) that--
       ``(A) invests in energy commodities as an asset class in a 
     portfolio of financial investments; and
       ``(B) does not take or make physical delivery of energy 
     commodities on a frequent basis, as determined by the 
     Commission.''.
       (b) Conforming Amendments.--
       (1) Section 13106(b)(1) of the Food, Conservation, and 
     Energy Act of 2008 is amended by striking ``section 1a(32)'' 
     and inserting ``section 1a''.
       (2) Section 402(d)(1)(B) of the Legal Certainty for Bank 
     Products Act of 2000 (7 U.S.C. 27(d)(1)(B)) is amended by 
     striking ``section 1a(33)'' and inserting ``section 1a''.

     SEC. 703. INSPECTOR GENERAL.

       Section 2(a) of the Commodity Exchange Act (7 U.S.C. 2(a)) 
     is amended by adding at the end the following:
       ``(13) Inspector general.--
       ``(A) Office.--There shall be in the Commission, as an 
     independent office, an Office of the Inspector General.
       ``(B) Appointment.--The Office shall be headed by an 
     Inspector General, appointed in accordance with the Inspector 
     General Act of 1978 (5 U.S.C. App.).
       ``(C) Compensation.--The Inspector General shall be 
     compensated at the rate provided for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code.
       ``(D) Administration.--The Inspector General shall exert 
     independent control of the budget allocations, expenditures, 
     and staffing levels, personnel decisions and processes, 
     procurement, and other administrative and management 
     functions of the Office.''.

     SEC. 704. TRADING PRACTICES REVIEW WITH RESPECT TO INDEX 
                   TRADERS, SWAP DEALERS, AND INSTITUTIONAL 
                   INVESTORS.

       Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is 
     amended by adding at the end the following:
       ``(e) Trading Practices Review With Respect to Index 
     Traders, Swap Dealers, and Institutional Investors.--
       ``(1) Review.--
       ``(A) In general.--Not later than 30 days after the date of 
     enactment of this subsection, the Commission shall carry out 
     a review of the trading practices of index traders, swap 
     dealers, and institutional investors in markets under the 
     jurisdiction of the Commission--
       ``(i) to ensure that index trading is not adversely 
     impacting the price discovery process;
       ``(ii) to determine whether different practices or 
     regulations should be implemented; and
       ``(iii) to gather data for use in proposing regulations to 
     limit the size and influence of institutional investor 
     positions in commodity markets.
       ``(B) Emergency authority.--For the 60-day period described 
     in subparagraph (A), in accordance with each applicable rule 
     adopted under section 5(d)(6), the Commission shall exercise 
     the emergency authority of the Commission to prevent 
     institutional investors from increasing the positions of the 
     institutional investors in--
       ``(i) energy commodity futures; and
       ``(ii) commodity future index funds.
       ``(2) Report.--Not later than 30 days after the date 
     described in paragraph (1)(A), the Commission shall submit to 
     the appropriate committees of Congress a report that contains 
     recommendations for such legislation as the Commission 
     determines to be necessary to limit the size and influence of 
     institutional investor positions in commodity markets.''.

     SEC. 705. BONA FIDE HEDGING TRANSACTIONS OR POSITIONS.

       Section 4a(c) of the Commodity Exchange Act (7 U.S.C. 
     6a(c)) is amended by striking ``(c) No rule'' and inserting 
     the following:
       ``(c) Bona Fide Hedging Transactions or Positions.--
       ``(1) Definition of bona fide hedging transaction or 
     position.--The term `bona fide hedging transaction or 
     position' means a transaction or position that represents a 
     hedge against price risk exposure relating to physical 
     transactions involving an energy commodity.
       ``(2) Application with respect to bona fide hedging 
     transactions or positions.--No rule''.

     SEC. 706. SPECULATION LIMITS RELATING TO SPECULATORS IN 
                   ENERGY MARKETS.

       Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is 
     amended by adding at the end the following:
       ``(f) Speculation Limits Relating to Speculators in Energy 
     Markets.--
       ``(1) Definition of speculator.--In this subsection, the 
     term `speculator' includes any institutional investor or 
     investor of an investment fund that holds a position through 
     an intermediary broker or dealer.
       ``(2) Enforcement of speculation limits.--The Commission 
     shall enforce speculation limits with respect to speculators 
     in energy markets.''.

     SEC. 707. LARGE TRADER REPORTING WITH RESPECT TO INDEX 
                   TRADERS, SWAP DEALERS, AND INSTITUTIONAL 
                   INVESTORS.

       Section 4g of the Commodity Exchange Act (7 U.S.C. 6g) is 
     amended by adding at the end the following:
       ``(g) Large Trader Reporting With Respect to Index Traders, 
     Swap Dealers, and Institutional Investors.--
       ``(1) In general.--Each recordkeeping and reporting 
     requirement under this section relating to large trader 
     transactions and positions shall apply to index traders, 
     swaps

[[Page S7382]]

     dealers, and institutional investors in markets under the 
     jurisdiction of the Commission.
       ``(2) Promulgation of regulations.--As soon as practicable 
     after the date of enactment of this subsection, the 
     Commission shall promulgate regulations to establish separate 
     classifications for index traders, swaps dealers, and 
     institutional investors--
       ``(A) to enforce the recordkeeping and reporting 
     requirements described in paragraph (1); and
       ``(B) to enforce position limits and position 
     accountability levels with respect to energy commodities 
     under section 4a(f).''.

     SEC. 708. INSTITUTIONAL INVESTOR SPECULATION LIMITS.

       (a) Core Principles Applicable to Significant Price 
     Discovery Contracts.--Section 2(h)(7)(C)(ii)(IV) of the 
     Commodity Exchange Act (7 U.S.C. 2(h)(7)(C)(ii)(IV)) is 
     amended by inserting after ``speculators'' the following: 
     ``(including institutional investors that do not take 
     delivery of energy commodities and that hold positions in 
     energy commodities through swaps dealers or other third 
     parties)''.
       (b) Core Principles for Contract Markets.--Section 5(d)(5) 
     of the Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended 
     by inserting after ``speculators'' the following: 
     ``(including institutional investors that do not take 
     delivery of energy commodities and that hold positions in 
     energy commodities through swaps dealers or other third 
     parties)''.

               TITLE VIII--OIL SPILL DAMAGES CONSISTENCY

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Oil Spill Damages 
     Consistency Act''.

     SEC. 802. PUNITIVE DAMAGES FOR DISCHARGES OF OIL OR HAZARDOUS 
                   SUBSTANCES.

       Title III of the Federal Water Pollution Control Act is 
     amended by inserting after section 311 (33 U.S.C. 1321) the 
     following:

     ``SEC. 311A. DISCHARGES OF CARGO.

       ``(a) Definitions.--In this section:
       ``(1) In general.--The terms `contiguous zone', 
     `discharge', `hazardous substance', `inland waters of the 
     United States', `oil', `owner or operator', and `vessel' have 
     the meanings given the terms in section 311.
       ``(2) Cargo.--The term `cargo' means any lading or freight 
     of a vessel, including--
       ``(A) oil; and
       ``(B) a hazardous substance.
       ``(3) Detrimental discharge.--The term `detrimental 
     discharge' means a discharge of the cargo of a vessel--
       ``(A)(i) into or on--
       ``(I) navigable waters or inland waters of the United 
     States;
       ``(II) an adjoining shoreline; or
       ``(III) the waters of the contiguous zone; or
       ``(ii) in connection with an activity carried out under--
       ``(I) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
     et seq.); or
       ``(II) the Deepwater Port Act of 1974 (33 U.S.C. 1501 et 
     seq.); and
       ``(B) in a quantity that, as determined by the Secretary, 
     may adversely affect a natural resource belonging to, or 
     under the exclusive management authority of, the United 
     States (including any resource under the Magnuson-Stevens 
     Fishery Conservation and Management Act (16 U.S.C. 1801 et 
     seq.)).
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of the department in which the Coast Guard is operating.
       ``(b) Prohibition on Detrimental Discharges.--
       ``(1) Prohibition.--Except as provided in paragraph (2) or 
     any other provision of this Act, a detrimental discharge is 
     prohibited.
       ``(2) Exceptions.--The prohibition under paragraph (1) 
     shall not apply to a detrimental discharge that is--
       ``(A) permitted under the International Convention for the 
     Prevention of Pollution from Ships, 1973, as modified by the 
     Protocol of 1978 relating thereto (MARPOL); or
       ``(B) in such quantities and at such times and locations or 
     under such circumstances or conditions as the Secretary 
     determines, by regulation, not to be harmful.
       ``(c) Enforcement Actions.--
       ``(1) In general.--A person who has been harmed by a 
     detrimental discharge may bring a civil action for relief 
     against any owner or operator or person in charge of a vessel 
     from which the detrimental discharge was made, in accordance 
     with this subsection.
       ``(2) Relief.--In a civil action under paragraph (1), a 
     court of competent jurisdiction may award appropriate relief, 
     including--
       ``(A) compensatory damages; and
       ``(B) punitive damages in an amount not to exceed an amount 
     equal to the product obtained by multiplying--
       ``(i) the amount of compensatory damages awarded under 
     subparagraph (A); and
       ``(ii) 5.
       ``(3) Corporate liability.--A corporation shall be liable 
     under this section for punitive damages awarded under 
     paragraph (2)(B) for harm resulting from any act of 
     recklessness by a managerial employee of the corporation, 
     including the captain of any applicable vessel.
       ``(4) Jurisdiction.--A civil action under paragraph (1) may 
     be brought in--
       ``(A) the United States District Court for the District of 
     Columbia; or
       ``(B) the United States district court for the district in 
     which the applicable detrimental discharge is alleged to have 
     occurred.
       ``(d) Relationship to Other Provisions.--Nothing in this 
     section limits or otherwise affects the application of any 
     administrative or civil penalty under--
       ``(1) section 311; or
       ``(2) any other provision of law.''.

                     TITLE IX--TELEWORK ENHANCEMENT

     SEC. 901. SHORT TITLE.

       This title may be cited as the ``Telework Enhancement Act 
     of 2008''.

     SEC. 902. DEFINITIONS.

       In this title:
       (1) Employee.--The term ``employee'' has the meaning given 
     that term by section 2105 of title 5, United States Code.
       (2) Executive agency.--The term ``executive agency'' has 
     the meaning given that term by section 105 of title 5, United 
     States Code.
       (3) Noncompliant.--The term ``noncompliant'' means not 
     conforming to the requirements under this title.
       (4) Telework.--The term ``telework'' means a work 
     arrangement in which an employee regularly performs 
     officially assigned duties at home or other worksites 
     geographically convenient to the residence of the employee 
     during at least 20 percent of each pay period that the 
     employee is performing officially assigned duties.

     SEC. 903. EXECUTIVE AGENCIES TELEWORK REQUIREMENT.

       (a) Telework Eligibility.--Not later than 180 days after 
     the date of enactment of this Act, the head of each executive 
     agency shall--
       (1) establish a policy under which eligible employees of 
     the agency may be authorized to telework;
       (2) determine the eligibility for all employees of the 
     agency to participate in telework; and
       (3) notify all employees of the agency of their eligibility 
     to telework.
       (b) Participation.--The policy described under subsection 
     (a) shall--
       (1) ensure that telework does not diminish employee 
     performance or agency operations;
       (2) require a written agreement between an agency manager 
     and an employee authorized to telework in order for that 
     employee to participate in telework;
       (3) provide that an employee may not be authorized to 
     telework if the performance of that employee does not comply 
     with the terms of the written agreement between the agency 
     manager and that employee;
       (4) except in emergency situations as determined by an 
     agency head, not apply to any employee of the agency whose 
     official duties require daily physical presence for activity 
     with equipment or handling of secure materials; and
       (5) determine the use of telework as part of the continuity 
     of operations plans the agency in the event of an emergency.

     SEC. 904. TRAINING AND MONITORING.

       The head of each executive agency shall ensure that--
       (1) an interactive telework training program is provided 
     to--
       (A) employees eligible to participate in the telework 
     program of the agency; and
       (B) all managers of teleworkers;
       (2) no distinction is made between teleworkers and 
     nonteleworkers for the purposes of performance appraisals; 
     and
       (3) when determining what constitutes diminished employee 
     performance, the agency shall consult the established 
     performance management guidelines of the Office of Personnel 
     Management.

     SEC. 905. POLICY AND SUPPORT.

       (a) Agency Consultation With the Office of Personnel 
     Management.--Each executive agency shall consult with the 
     Office of Personnel Management in developing telework 
     policies.
       (b) Guidance and Consultation.--The Office of Personnel 
     Management shall--
       (1) provide policy and policy guidance for telework in the 
     areas of pay and leave, agency closure, performance 
     management, official worksite, recruitment and retention, and 
     accommodations for employees with disabilities; and
       (2) consult with--
       (A) the Federal Emergency Management Agency on policy and 
     policy guidance for telework in the areas of continuation of 
     operations and long-term emergencies; and
       (B) the General Services Administration on policy and 
     policy guidance for telework in the areas of telework 
     centers, travel, technology, and equipment.
       (c) Continuity of Operations Plans.--During any period that 
     an agency is operating under a continuity of operations plan, 
     that plan shall supersede any telework policy.
       (d) Telework Website.--The Office of Personnel Management 
     shall--
       (1) maintain a central telework website; and
       (2) include on that website related--
       (A) telework links;
       (B) announcements;
       (C) guidance developed by the Office of Personnel 
     Management; and
       (D) guidance submitted by the Federal Emergency Management 
     Agency, and the General Services Administration to the Office 
     of Personnel Management not later than 10 business days after 
     the date of submission.

     SEC. 906. TELEWORK MANAGING OFFICER.

       (a) In General.--
       (1) Appointment.--The head of each executive agency shall 
     appoint an employee of the agency as the Telework Managing 
     Officer. The Telework Managing Officer shall be established 
     within the Office of the Chief

[[Page S7383]]

     Human Capital Officer or a comparable office with similar 
     functions.
       (2) Telework coordinators.--
       (A) Appropriations act, 2004.--Section 627 of the 
     Departments of Commerce, Justice, and State, the Judiciary, 
     and Related Agencies Appropriations Act, 2004 (Public Law 
     108-199; 118 Stat. 99) is amended by striking ``designate a 
     `Telework Coordinator' to be'' and inserting ``appoint a 
     Telework Managing Officer to be''.
       (B) Appropriations act, 2005.--Section 622 of the 
     Departments of Commerce, Justice, and State, the Judiciary, 
     and Related Agencies Appropriations Act, 2005 (Public Law 
     108-447; 118 Stat. 2919) is amended by striking ``designate a 
     `Telework Coordinator' to be'' and inserting ``appoint a 
     Telework Managing Officer to be''.
       (b) Duties.--The Telework Managing Officer shall--
       (1) be devoted to policy development and implementation 
     related to agency telework programs;
       (2) serve as--
       (A) an advisor for agency leadership, including the Chief 
     Human Capital Officer;
       (B) a resource for managers and employees; and
       (C) a primary agency point of contact for the Office of 
     Personnel Management on telework matters; and
       (3) perform other duties as the applicable appointing 
     authority may assign.

     SEC. 907. ANNUAL REPORT TO CONGRESS.

       (a) Submission of Reports.--Not later than 18 months after 
     the date of enactment of this Act and on an annual basis 
     thereafter, the Director of the Office of Personnel 
     Management shall--
       (1) submit a report addressing the telework programs of 
     each executive agency to--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (B) the Committee on Oversight and Government Reform of the 
     House of Representatives; and
       (2) transmit a copy of the report to the Comptroller 
     General and the Office of Management and Budget.
       (b) Contents.--Each report submitted under this section 
     shall include--
       (1) the telework policy, the measures in place to carry out 
     the policy, and an analysis of employee telework 
     participation during the preceding 12-month period provided 
     by each executive agency;
       (2) an assessment of the progress of each agency in 
     maximizing telework opportunities for employees of that 
     agency without diminishing employee performance or agency 
     operations;
       (3) the definition of telework and telework policies and 
     any modifications to such definitions;
       (4) the degree of participation by employees of each agency 
     in teleworking during the period covered by the evaluation, 
     including--
       (A) the number and percent of the employees in the agency 
     who are eligible to telework;
       (B) the number and percent of employees who engage in 
     telework;
       (C) the number and percent of eligible employees in each 
     agency who have declined the opportunity to telework; and
       (D) the number of employees who were not authorized, 
     willing, or able to telework and the reason;
       (5) the extent to which barriers to maximize telework 
     opportunities have been identified and eliminated; and
       (6) best practices in agency telework programs.

     SEC. 908. COMPLIANCE OF EXECUTIVE AGENCIES.

       (a) Executive Agencies.--An executive agency shall be in 
     compliance with this title if each employee of that agency 
     participating in telework regularly performs officially 
     assigned duties at home or other worksites geographically 
     convenient to the residence of the employee during at least 
     20 percent of each pay period that the employee is performing 
     officially assigned duties.
       (b) Agency Manager Reports.--Not later than 180 days after 
     the establishment of a policy described under section 903, 
     and annually thereafter, each agency manager shall submit a 
     report to the Chief Human Capital Officer and Telework 
     Managing Officer of that agency that contains a summary of--
       (1) efforts to promote telework opportunities for employees 
     supervised by that manager; and
       (2) any obstacles which hinder the ability of that manager 
     to promote telework opportunities.
       (c) Chief Human Capital Officer Reports.--
       (1) In general.--Each year the Chief Human Capital Officer 
     of each agency, in consultation with the Telework Managing 
     Officer of that agency, shall submit a report to the Chair 
     and Vice Chair of the Chief Human Capital Offices Council on 
     agency management efforts to promote telework.
       (2) Review and inclusion of relevant information.--The 
     Chair and Vice Chair of the Chief Human Capital Offices 
     Council shall--
       (A) review the reports submitted under paragraph (1);
       (B) include relevant information from the submitted reports 
     in the annual report to Congress required under section 
     907(b)(2); and
       (C) use that relevant information for other purposes 
     related to the strategic management of human capital.
       (d) Compliance Reports.--Not later than 90 days after the 
     date of submission of each report under section 907, the 
     Office of Management and Budget shall submit a report to 
     Congress that--
       (1) identifies and recommends corrective actions and time 
     frames for each executive agency that the Office of 
     Management and Budget determines is noncompliant; and
       (2) describes progress of noncompliant executive agencies, 
     justifications of any continuing noncompliance, and any 
     recommendations for corrective actions planned by the Office 
     of Management and Budget or the executive agency to eliminate 
     noncompliance.

     SEC. 909. EXTENSION OF TRAVEL EXPENSES TEST PROGRAMS.

       (a) In General.--Section 5710 of title 5, United States 
     Code, is amended--
       (1) in subsection (a)(1), by striking ``for a period not to 
     exceed 24 months''; and
       (2) in subsection (e), by striking ``7 years'' and 
     inserting ``16 years''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as though enacted as part of the Travel and 
     Transportation Reform Act of 1998 (Public Law 105-264; 112 
     Stat. 2350).
                                 ______
                                 
  SA 5161. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. PRESIDENTIAL APPROVAL OF EXPLORATION, DEVELOPMENT, 
                   AND PRODUCTION PROJECTS UNDER FEDERAL OIL AND 
                   GAS LEASES.

       (a) Findings.--Congress finds that--
       (1) the responsible development of the domestic oil and gas 
     resources of the United States is vital to the economy and 
     national security of the United States;
       (2) the immediate and long-term interests of the people of 
     United States are served by encouraging domestic oil and gas 
     exploration, development, and production;
       (3) to achieve those objectives, domestic energy 
     development projects should proceed without persistent 
     litigation, subject to the regulatory oversight of 
     responsible Federal agencies; and
       (4) the long-term planning and heavy investments of human 
     and financial resources necessary to develop and produce 
     domestic oil and gas resources are frustrated, and future 
     investments discouraged, when projects that have been 
     reviewed and approved by the responsible executive branch 
     agencies are enjoined or otherwise halted in the courts.
       (b) Purpose.--The purpose of this section is to authorize 
     the President to review and approve oil and gas exploration, 
     development, and production projects under Federal oil and 
     gas leases, both onshore and offshore, on a finding that the 
     project complies with all applicable Federal law.
       (c) Review by President.--Notwithstanding any other 
     provision of law, the President may review any project for 
     the exploration, development, or production of oil or gas 
     resources under a Federal lease, located onshore or offshore, 
     to determine whether the project complies with all applicable 
     Federal law.
       (d) Approval.--A project described in subsection (c) 
     (including all authorizations, permits, studies, or other 
     forms of executive branch approvals otherwise required to 
     conduct the project) shall be conclusively approved and 
     authorized to proceed on a written finding submitted by the 
     President to Congress that the project--
       (1) serves the public interest in responsible domestic oil 
     or gas development; and
       (2) complies with all applicable Federal law.
       (e) Administrative or Judicial Review.--The decision of the 
     President under this section and the project approved under 
     subsection (d) shall not be subject to further administrative 
     or judicial review, stay, or injunction or, if pending, 
     continued administrative or judicial review, stay, or 
     injunction, except with respect to an appeal filed by an 
     applicant for a permit to carry out the project or a claim 
     based on the Constitution of the United States.
       (f) Regulatory Oversight.--A project approved by the 
     President under this section shall--
       (1) continue to be subject to the regulatory oversight of 
     the Federal agencies with jurisdiction over activities 
     conducted under the project, as otherwise provided by law; 
     and
       (2) be regulated under the terms, conditions, and 
     requirements of any authorization, permit, or other approval 
     necessary to conduct the activities.
                                 ______
                                 
  SA 5162. Mr. WARNER (for himself and Mr. Webb) submitted an amendment 
intended to be proposed by him to the bill S. 3268, to amend the 
Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. AVAILABILITY OF CERTAIN AREAS FOR LEASING.

       Section 8 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337) is amended by adding at the end the following:
       ``(q) Availability of Certain Areas for Leasing.--

[[Page S7384]]

       ``(1) Definitions.--In this subsection:
       ``(A) Atlantic coastal state.--The term `Atlantic Coastal 
     State' means each of the States of Maine, New Hampshire, 
     Massachusetts, Connecticut, Rhode Island, Delaware, New York, 
     New Jersey, Maryland, Virginia, North Carolina, South 
     Carolina, Georgia, and Florida.
       ``(B) Governor.--The term `Governor' means the Governor of 
     the State.
       ``(C) Qualified revenues.--The term `qualified 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 Act for natural gas 
     exploration and extraction activities authorized by the 
     Secretary under this subsection.
       ``(D) State.--The term `State' means the State of Virginia.
       ``(2) Petition.--
       ``(A) In general.--The Governor may submit to the 
     Secretary--
       ``(i) a petition requesting that the Secretary issue leases 
     authorizing the conduct of natural gas exploration activities 
     only to ascertain the presence or absence of a natural gas 
     reserve in any area that is at least 50 miles beyond the 
     coastal zone of the State; and
       ``(ii) if a petition for exploration by the State described 
     in clause (i) has been approved in accordance with paragraph 
     (3) and the geological finding of the exploration justifies 
     extraction, a second petition requesting that the Secretary 
     issue leases authorizing the conduct of natural gas 
     extraction activities in any area that is at least 50 miles 
     beyond the coastal zone of the State.
       ``(B) Contents.--In any petition under subparagraph (A), 
     the Governor shall include a detailed plan of the proposed 
     exploration and subsequent extraction activities, as 
     applicable.
       ``(3) Action by secretary.--
       ``(A) In general.--Subject to subparagraph (F), as soon as 
     practicable after the date of receipt of a petition under 
     paragraph (2), the Secretary shall approve or deny the 
     petition.
       ``(B) Requirements for exploration.--The Secretary shall 
     not approve a petition submitted under paragraph (2)(A)(i) 
     unless the State legislature has enacted legislation 
     supporting exploration for natural gas in the coastal zone of 
     the State.
       ``(C) Requirements for extraction.--The Secretary shall not 
     approve a petition submitted under paragraph (2)(A)(ii) 
     unless the State legislature has enacted legislation 
     supporting extraction for natural gas in the coastal zone of 
     the State.
       ``(D) Consistency with legislation.--The plan provided in 
     the petition under paragraph (2)(B) shall be consistent with 
     the legislation described in subparagraph (B) or (C), as 
     applicable.
       ``(E) Comments from atlantic coastal states.--On receipt of 
     a petition under paragraph (2), the Secretary shall--
       ``(i) provide Atlantic Coastal States with an opportunity 
     to provide to the Secretary comments on the petition; and
       ``(ii) take into consideration, but not be bound by, any 
     comments received under clause (i).
       ``(F) Conflicts with military operations.--The Secretary 
     shall not approve a petition for a drilling activity under 
     this paragraph if the drilling activity would conflict with 
     any military operation, as determined by the Secretary of 
     Defense.
       ``(4) Disposition of revenues.--Notwithstanding section 9, 
     for each applicable fiscal year, the Secretary of the 
     Treasury shall deposit--
       ``(A) 50 percent of qualified revenues in a Clean Energy 
     Fund in the Treasury, which shall be established by the 
     Secretary; and
       ``(B) 50 percent of qualified revenues in a special account 
     in the Treasury from which the Secretary shall disburse--
       ``(i) 75 percent to the State;
       ``(ii) 12.5 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); and
       ``(iii) 12.5 percent to a reserve fund to be used to 
     mitigate for any environmental damage that occurs as a result 
     of extraction activities authorized under this subsection, 
     regardless of whether the damage is--

       ``(I) reasonably foreseeable; or
       ``(II) caused by negligence, natural disasters, or other 
     acts.''.

                                 ______
                                 
  SA 5163. Mr. WARNER (for himself and Mr. Lieberman) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commmodity Exchange Act, to prevent excessive price speculation 
with respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. IMMEDIATE STEPS TO CONSERVE GASOLINE ACT.

       (a) Short Title.--This section may be cited as the 
     ``Immediate Steps to Conserve Gasoline Act''.
       (b) Federal Conservation of Gasoline.--
       (1) Findings.--Congress finds that--
       (A) each day, as Americans contend with rising gasoline 
     prices, personal stories reflect the ways in which Americans 
     are altering their family budgets, including food budgets, to 
     cope with record high gasoline costs;
       (B) as a consequence of economic pressures, Americans are 
     taking initiatives to reduce consumption of gasoline, such 
     as--
       (i) driving less frequently;
       (ii) altering daily routines; and
       (iii) changing, or even cancelling, family vacation plans;
       (C) the conservation efforts being taken by Americans, on 
     their own initiative, bring hardships but save funds that can 
     be redirected--
       (i) to meet essential family needs; and
       (ii) to relieve, to some extent, the demand for gasoline;
       (D) just as individuals are taking initiatives to reduce 
     gasoline consumption, the Federal Government, including 
     Congress, should take initiatives to conserve gasoline;
       (E) such Government-wide initiatives to conserve gasoline 
     would send a signal to Americans that the Federal 
     Government--
       (i) recognizes the burdens imposed by unprecedented 
     gasoline costs; and
       (ii) will participate in activities to reduce gasoline 
     consumption;
       (F) an overall reduction of gasoline consumption by the 
     Federal Government by even 3 percentage points would send a 
     strong signal that, as a nation, the United States is working 
     to conserve energy;
       (G) in 2005, policies directed at reducing the usage of 
     energy in Federal agency and department buildings by 20 
     percent by 2015, at a rate of a 2-percent reduction per 
     calendar year, were enacted by the President and Congress;
       (H) in 2007, policies increasing the energy reduction goal 
     to 30 percent by 2015, at a rate of a 3-percent reduction per 
     calendar year, were enacted by the President and Congress; 
     and
       (I) Congress and the President should extend the precedent 
     of those mandatory conservation initiatives taken in 2005 and 
     2007 to usage by the Federal Government of gasoline.
       (2) Reduction of gasoline usage by federal departments and 
     agencies.--For fiscal year 2009, each Federal department and 
     agency shall develop and carry out initiatives to reduce by 
     not less than 3 percent the annual consumption of gasoline by 
     the department or agency.
       (3) Congressional conservation of gasoline.--For fiscal 
     year 2009, Congress shall develop and carry out initiatives 
     to reduce by not less than 3 percent the annual consumption 
     of gasoline by Congress.
       (c) Studies and Reports on National Speed Limit and Future 
     Gasoline Conservation.--
       (1) National speed limit.--
       (A) In general.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator of the Energy 
     Information Administration shall conduct, and submit to 
     Congress a report describing the results of, a study of the 
     potential transportation fuel savings of imposing a national 
     speed limit on highways on the Interstate System of 60 miles 
     per hour.
       (B) Inclusions.--The study under subparagraph (B) shall 
     include--
       (i) an examination of the fuel efficiency of automobiles in 
     use as of the date on which the study is conducted;
       (ii) a description of the range at which those automobiles 
     are most fuel-efficient on highways on the Interstate System;
       (iii) an analysis of actions carried out by the Federal 
     Government, with the full support of Congress, during the 
     1973-1974 energy crisis, resulting in a national speed limit 
     on highways on the Interstate System of 55 miles per hour, 
     which remained in effect until 1995;
       (iv) a recognition that in 1974, when fewer than 
     137,000,000 cars traveled in the United States (as compared 
     to 250,000,000 cars in 2006) and only 30 percent of United 
     States oil was imported from foreign sources (as compared to 
     60 percent of oil so imported on the date of enactment of 
     this Act), 167,000 barrels of oil per day were saved by the 
     imposition of a national speed limit, such that greater 
     savings are possible on the date of enactment of this Act 
     than the savings realized in 1974; and
       (v) a determination of whether a limitation on the national 
     speed limit on highways on the Interstate System similar to 
     the limitation described in clause (iii) could serve as a 
     model to generate gasoline savings, through a national speed 
     limit on highways on the Interstate System of 60 miles per 
     hour, given the improved fuel efficiency of automobile 
     engines in use on the date of enactment of this Act.
       (2) Future gasoline conservation.--
       (A) In general.--Not later than 60 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall conduct, and submit to the Committees on 
     Homeland Security and Governmental Affairs, Environment and 
     Public Works, and Energy and Natural Resources of the Senate 
     and the Committees on House Administration, Transportation 
     and Infrastructure, and Energy and Commerce of the House of 
     Representatives a report describing the results of, a study 
     to determine whether additional gasoline reduction measures 
     by Federal departments and agencies and Congress are 
     technically feasible.
       (B) Inclusion.--The report under subparagraph (A) shall 
     include a proposed schedule of future gasoline reduction 
     measures, if the measures are determined to be technically 
     feasible.

[[Page S7385]]

                                 ______
                                 
  SA 5164. Mr. BURR submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commmodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. MORATORIUM ON ALL OUTER CONTINENTAL SHELF LEASING.

       Notwithstanding the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331 et seq.), the Gulf of Mexico Energy Security Act 
     of 2006 (43 U.S.C. 1331 note; Public Law 109-432), or any 
     other provision of law, the Secretary of the Interior shall 
     not offer for leasing, preleasing, or any related activity 
     any area on the outer Continental Shelf (as defined in 
     section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331)).
                                 ______
                                 
  SA 5165. Mr. BURR submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. USE OF INFORMATION ABOUT OIL AND GAS PUBLIC 
                   CHALLENGES.

       (a) Findings.--Congress finds that the Government 
     Accountability Office, in report GAO-05-124, found that--
       (1) the Bureau of Land Management does not systematically 
     gather and use nationwide information on public challenges to 
     manage the oil and gas program of the Bureau; and
       (2) that failure--
       (A) prevents the Director of the Bureau from assessing the 
     impact of public challenges on the workload of the Bureau of 
     Land Management State offices; and
       (B) eliminates the ability of the Director to make 
     appropriate staffing and funding resource allocation 
     decisions.
       (b) Requirements.--The Secretary of the Interior and the 
     Secretary of Agriculture shall systematically--
       (1) collect and use nationwide information on public 
     challenges to manage the oil and gas programs of the 
     Department of the Interior and the Department of Agriculture, 
     respectively;
       (2) gather the information at the planning, leasing, 
     exploration, and development stages; and
       (3) maintain the information electronically with current 
     data.
                                 ______
                                 
  SA 5166. Mr. BURR submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the bill, add the following:

                     TITLE II--DEEP SEA EXPLORATION

     SEC. 201. 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 Stop Excessive Energy 
     Speculation 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.
       ``(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. 202. 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

[[Page S7386]]

     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. 203. 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''.

     SEC. 204. LOW-INCOME HOME ENERGY ASSISTANCE APPROPRIATIONS.

       (a) In General.--Subject to subsection (b), in addition to 
     any amounts appropriated under any other provision of Federal 
     law, there is appropriated, out of any money in the Treasury 
     not otherwise appropriated, for fiscal year 2008--
       (1) $1,265,000,000 (to remain available until expended) for 
     making payments under subsections (a) through (d) of section 
     2604 of the Low-Income Home Energy Assistance Act of 1981 (42 
     U.S.C. 8623); and
       (2) $1,265,000,000 (to remain available until expended) for 
     making payments under section 2604(e) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8623(e)), 
     notwithstanding the designation requirement of section 
     2602(e) of such Act (42 U.S.C. 8621(e)).
       (b) New Producing States.--In the case of a new producing 
     State (as defined in section 32(a) of the Outer Continental 
     Shelf Lands Act), amounts made available under subsection (a) 
     shall not be allocated for a new producing State until the 
     legislature of the new producing State considers and approves 
     or disapproves legislation that would make new producing 
     areas (as so defined) in the new producing State available 
     for oil and gas leasing.
       (c) Emergency Requirement.--The amount provided under this 
     section is designated as an emergency requirement and 
     necessary to meet emergency needs, pursuant to section 204 of 
     S. Con. Res. 21 (110th Congress), the concurrent resolution 
     on the budget for fiscal year 2008.
                                 ______
                                 
  SA 5167. Mr. BURR submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. IMPROVING MOTOR FUEL SUPPLY AND DISTRIBUTION.

       (a) Limiting Number of Boutique Fuels.--Section 
     211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) 
     is amended by striking the second clause (v) (as added by 
     section 1541(b) of Public Law 109-58) and inserting the 
     following:
       ``(vi)(I) The Administrator shall have no authority, when 
     considering a State implementation plan or a State 
     implementation plan revision, to approve under this paragraph 
     any fuel included in such plan or revision if the effect of 
     such approval would be to increase the total number of fuels 
     approved under this paragraph as of January 1, 2009 in all 
     State implementation plans.
       ``(II) The Administrator, in consultation with the 
     Secretary of Energy, shall determine the total number of 
     fuels approved under this paragraph as of January 1, 2009, in 
     all State implementation plans and shall publish a list of 
     such fuels, including the states and Petroleum Administration 
     for Defense District in which they are used, in the Federal 
     Register no later than 90 days after enactment.
       ``(III) The Administrator shall remove a fuel from the list 
     published under subclause (II) if a fuel ceases to be 
     included in a State implementation plan or if a fuel in a 
     State implementation plan is identical to a Federal fuel 
     formulation implemented by the Administrator, but the 
     Administrator shall not reduce the total number of fuels 
     authorized under the list published under subclause (II).
       ``(IV) Subclause (I) shall not apply to approval by the 
     Administrator of a control or prohibition respecting any new 
     fuel under this paragraph in a State's implementation plan or 
     a revision to that State's implementation plan after the date 
     of enactment of this Act if the fuel, as of the date of 
     consideration by the Administrator--

       ``(aa) would replace completely a fuel on the list 
     published under subclause (II);
       ``(bb) has been approved in at least one State 
     implementation plan in the applicable Petroleum 
     Administration for Defense District; or
       ``(cc) is a fuel that differs from the Federal conventional 
     gasoline specifications under subsection (k)(8) only with 
     respect to the requirement of a summertime Reid Vapor 
     Pressure of 7.0 or 7.8 pounds per square inch.

       ``(V) Nothing in this clause shall be construed to have any 
     effect regarding any available authority of States to require 
     the use of any fuel additive registered in accordance with 
     subsection (b), including any fuel additive registered in 
     accordance with subsection (b) after the enactment of this 
     subclause.
       ``(VI) In this clause:

       ``(aa) The term `control or prohibition respecting a new 
     fuel' means a control or prohibition on the formulation, 
     composition, or emissions characteristics of a fuel that 
     would require the increase or decrease of a constituent in 
     gasoline or diesel fuel.
       ``(bb) The term `fuel' means gasoline, diesel fuel, and any 
     other liquid petroleum product commercially known as gasoline 
     and diesel fuel for use in highway and non-road motor 
     vehicles.''.

       (b) Temporary Waivers During Supply Emergencies.--Section 
     211(c)(4) of the Clean Air Act (42 U.S.C. 7545(c)(4)) is 
     amended by adding at the end the following:
       ``(D) Temporary Waivers During Supply Emergencies.--The 
     Administrator may temporarily waive a control or prohibition 
     with respect to the use of a fuel or fuel additive required 
     or regulated by the Administrator under subsection (c), (h), 
     (i), (k), or (m), or prescribed in an applicable 
     implementation plan under section 110 that is approved by the 
     Administrator under subparagraph (c)(4)(C)(i), if, after 
     consultation with and concurrence by the Secretary of Energy, 
     the Administrator determines that--
       ``(i) an extreme and unusual fuel or fuel additive supply 
     circumstance exists in a State or region that prevents the 
     distribution of an adequate supply of the fuel or fuel 
     additive to consumers;
       ``(ii) the extreme and unusual fuel or fuel additive supply 
     circumstance is the result of a natural disaster, an act of 
     God, a pipeline or refinery equipment failure, or another 
     event that could not reasonably have been foreseen or 
     prevented and not a lack of prudent planning on the part of 
     the suppliers of the fuel or fuel additive to the State or 
     region; and
       ``(iii) it is in the public interest to grant the waiver.
       ``(E) Requirements for Waiver.--
       ``(i) Definition of motor fuel distribution system.--In 
     this subparagraph, the term `motor fuel distribution system' 
     has the meaning given the term by the Administrator, by 
     regulation.
       ``(ii) Requirements.--A waiver under subparagraph (D) shall 
     be permitted only if--
       ``(I) the waiver applies to the smallest geographic area 
     necessary to address the extreme and unusual fuel or fuel 
     additive supply circumstance;
       ``(II) the waiver is effective for a period of 15 calendar 
     days or, if the Administrator determines that a shorter or 
     longer waiver period is adequate, for the shortest 
     practicable time period necessary to permit the correction of 
     the extreme and unusual fuel or fuel additive supply 
     circumstances and to mitigate impact on air quality;
       ``(III) the waiver permits a transitional period, the 
     duration of which shall be determined by the Administrator, 
     after the termination of the temporary waiver to permit 
     wholesalers and retailers to blend down wholesale and retail 
     inventory;
       ``(IV) the waiver applies to all persons in the motor fuel 
     distribution system; and
       ``(V) the Administrator has given public notice regarding 
     consideration by the Administrator of, and, if applicable, 
     the granting of, a waiver to all parties in the motor fuel 
     distribution system, State and local regulators, public 
     interest groups, and consumers in the State or region to be 
     covered by the waiver.
       ``(F) Affect on Waiver Authority.--Nothing in subparagraph 
     (D)--

[[Page S7387]]

       ``(i) limits or otherwise affects the application of any 
     other waiver authority of the Administrator under this 
     section or a regulation promulgated pursuant to this section; 
     or
       ``(ii) subjects any State or person to an enforcement 
     action, penalties, or liability solely arising from actions 
     taken pursuant to the issuance of a waiver under subparagraph 
     (D).''.
                                 ______
                                 
  SA 5168. Mr. BURR submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

            TITLE II--NEW RESOURCES FOR DOMESTIC CONSUMPTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``New Resources for Domestic 
     Consumption Act of 2008''.

     SEC. 202. DEFINITION OF 1002 AREA OF ALASKA.

       In this title, the term ``1002 Area of Alaska'' means the 
     area described in appendix I to part 37 of title 50, Code of 
     Federal Regulations, as in effect on July 14, 2008, popularly 
     known as the ``Coastal Plain of the Arctic National Wildlife 
     Refuge''.

     SEC. 203. PURPOSE.

       The purpose of this title is to provide for the expeditious 
     development of oil, natural gas, and other resources of the 
     1002 Area of Alaska by transferring to the State of Alaska 
     all right, title, and interest of the United States in and to 
     the 1002 Area of Alaska.

     SEC. 204. TRANSFER OF 1002 AREA TO STATE OF ALASKA.

       (a) In General.--Subject to subsection (b) and 
     notwithstanding any other provision of law, not later than 30 
     days after the date of enactment of this Act, the Secretary 
     of the Interior shall transfer to the State of Alaska all 
     right, title, and interest of the United States in and to the 
     1002 Area of Alaska.
       (b) Condition.--As a condition of any transfer under this 
     section, the Secretary shall require the State of Alaska to 
     pay to the United States 50 percent of all amounts received 
     by the State of Alaska as a result of development of oil, 
     natural gas, and other natural resources of the 1002 Area of 
     Alaska.

     SEC. 205. PROHIBITION ON EXPORT OF OIL.

       No oil produced in the 1002 Area of Alaska after the date 
     of any transfer under section 204 may be exported from the 
     United States.
                                 ______
                                 
  SA 5169. Mr. BURR submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. REPROCESSING OF COMMERCIAL NUCLEAR WASTE.

       Not later than 90 days after the date of enactment of this 
     Act, the Secretary of Energy shall take such actions as are 
     necessary to ensure, to the maximum extent practicable, that 
     all commercial nuclear waste in existence on the date of 
     enactment of this Act be designated for reprocessing only.
                                 ______
                                 
  SA 5170. Mr. SMITH (for himself, Mr. Craig, Mr. Stevens, and Ms. 
Murkowski) submitted an amendment intended to be proposed by him to the 
bill S. 3268, to amend the Commodity Exchange Act, to prevent excessive 
price speculation with respect to energy commodities, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. ____. SECURE RURAL SCHOOLS AND COMMUNITY SELF-
                   DETERMINATION PROGRAM.

       (a) Reauthorization of the Secure Rural Schools and 
     Community Self-Determination Act of 2000.--The Secure Rural 
     Schools and Community Self-Determination Act of 2000 (16 
     U.S.C. 500 note; Public Law 106-393) is amended by striking 
     sections 1 through 403 and inserting the following:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Secure Rural Schools and 
     Community Self-Determination Act of 2000'.

     ``SEC. 2. PURPOSES.

       ``The purposes of this Act are--
       ``(1) to stabilize and transition payments to counties to 
     provide funding for schools and roads that supplements other 
     available funds;
       ``(2) to make additional investments in, and create 
     additional employment opportunities through, projects that--
       ``(A)(i) improve the maintenance of existing 
     infrastructure;
       ``(ii) implement stewardship objectives that enhance forest 
     ecosystems; and
       ``(iii) restore and improve land health and water quality;
       ``(B) enjoy broad-based support; and
       ``(C) have objectives that may include--
       ``(i) road, trail, and infrastructure maintenance or 
     obliteration;
       ``(ii) soil productivity improvement;
       ``(iii) improvements in forest ecosystem health;
       ``(iv) watershed restoration and maintenance;
       ``(v) the restoration, maintenance, and improvement of 
     wildlife and fish habitat;
       ``(vi) the control of noxious and exotic weeds; and
       ``(vii) the reestablishment of native species; and
       ``(3) to improve cooperative relationships among--
       ``(A) the people that use and care for Federal land; and
       ``(B) the agencies that manage the Federal land.

     ``SEC. 3. DEFINITIONS.

       ``In this Act:
       ``(1) Adjusted share.--The term `adjusted share' means the 
     number equal to the quotient obtained by dividing--
       ``(A) the number equal to the quotient obtained by 
     dividing--
       ``(i) the base share for the eligible county; by
       ``(ii) the income adjustment for the eligible county; by
       ``(B) the number equal to the sum of the quotients obtained 
     under subparagraph (A) and paragraph (8)(A) for all eligible 
     counties.
       ``(2) Base share.--The term `base share' means the number 
     equal to the average of--
       ``(A) the quotient obtained by dividing--
       ``(i) the number of acres of Federal land described in 
     paragraph (7)(A) in each eligible county; by
       ``(ii) the total number acres of Federal land in all 
     eligible counties in all eligible States; and
       ``(B) the quotient obtained by dividing--
       ``(i) the amount equal to the average of the 3 highest 25-
     percent payments and safety net payments made to each 
     eligible State for each eligible county during the 
     eligibility period; by
       ``(ii) the amount equal to the sum of the amounts 
     calculated under clause (i) and paragraph (9)(B)(i) for all 
     eligible counties in all eligible States during the 
     eligibility period.
       ``(3) County payment.--The term `county payment' means the 
     payment for an eligible county calculated under section 
     101(b).
       ``(4) Eligible county.--The term `eligible county' means 
     any county that--
       ``(A) contains Federal land (as defined in paragraph (7)); 
     and
       ``(B) elects to receive a share of the State payment or the 
     county payment under section 102(b).
       ``(5) Eligibility period.--The term `eligibility period' 
     means fiscal year 1986 through fiscal year 1999.
       ``(6) Eligible state.--The term `eligible State' means a 
     State or territory of the United States that received a 25-
     percent payment for 1 or more fiscal years of the eligibility 
     period.
       ``(7) Federal land.--The term `Federal land' means--
       ``(A) land within the National Forest System, as defined in 
     section 11(a) of the Forest and Rangeland Renewable Resources 
     Planning Act of 1974 (16 U.S.C. 1609(a)) exclusive of the 
     National Grasslands and land utilization projects designated 
     as National Grasslands administered pursuant to the Act of 
     July 22, 1937 (7 U.S.C. 1010-1012); and
       ``(B) such portions of the revested Oregon and California 
     Railroad and reconveyed Coos Bay Wagon Road grant land as are 
     or may hereafter come under the jurisdiction of the 
     Department of the Interior, which have heretofore or may 
     hereafter be classified as timberlands, and power-site land 
     valuable for timber, that shall be managed, except as 
     provided in the former section 3 of the Act of August 28, 
     1937 (50 Stat. 875; 43 U.S.C. 1181c), for permanent forest 
     production.
       ``(8) 50-Percent adjusted share.--The term `50-percent 
     adjusted share' means the number equal to the quotient 
     obtained by dividing--
       ``(A) the number equal to the quotient obtained by 
     dividing--
       ``(i) the 50-percent base share for the eligible county; by
       ``(ii) the income adjustment for the eligible county; by
       ``(B) the number equal to the sum of the quotients obtained 
     under subparagraph (A) and paragraph (1)(A) for all eligible 
     counties.
       ``(9) 50-Percent base share.--The term `50-percent base 
     share' means the number equal to the average of--
       ``(A) the quotient obtained by dividing--
       ``(i) the number of acres of Federal land described in 
     paragraph (7)(B) in each eligible county; by
       ``(ii) the total number acres of Federal land in all 
     eligible counties in all eligible States; and
       ``(B) the quotient obtained by dividing--
       ``(i) the amount equal to the average of the 3 highest 50-
     percent payments made to each eligible county during the 
     eligibility period; by
       ``(ii) the amount equal to the sum of the amounts 
     calculated under clause (i) and paragraph (2)(B)(i) for all 
     eligible counties in all eligible States during the 
     eligibility period.
       ``(10) 50-percent payment.--The term `50-percent payment' 
     means the payment that is the sum of the 50-percent share 
     otherwise paid to a county pursuant to title II of the Act of 
     August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f), 
     and the payment made to a county pursuant to the Act of May 
     24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et 
     seq.).

[[Page S7388]]

       ``(11) Full funding amount.--The term `full funding amount' 
     means--
       ``(A) $526,079,656 for fiscal year 2008;
       ``(B) $520,000,000 for fiscal year 2009; and
       ``(C) for fiscal year 2010 and each fiscal year thereafter, 
     the amount that is equal to 90 percent of the full funding 
     amount for the preceding fiscal year.
       ``(12) Income adjustment.--The term `income adjustment' 
     means the square of the quotient obtained by dividing--
       ``(A) the per capita personal income for each eligible 
     county; by
       ``(B) the median per capita personal income of all eligible 
     counties.
       ``(13) Per capita personal income.--The term `per capita 
     personal income' means the most recent per capita personal 
     income data, as determined by the Bureau of Economic 
     Analysis.
       ``(14) Safety net payments.--The term `safety net payments' 
     means the special payment amounts paid to States and counties 
     required by section 13982 or 13983 of the Omnibus Budget 
     Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500 
     note; 43 U.S.C. 1181f note).
       ``(15) Secretary concerned.--The term `Secretary concerned' 
     means--
       ``(A) the Secretary of Agriculture or the designee of the 
     Secretary of Agriculture with respect to the Federal land 
     described in paragraph (7)(A); and
       ``(B) the Secretary of the Interior or the designee of the 
     Secretary of the Interior with respect to the Federal land 
     described in paragraph (7)(B).
       ``(16) State payment.--The term `State payment' means the 
     payment for an eligible State calculated under section 
     101(a).
       ``(17) 25-Percent payment.--The term `25-percent payment' 
     means the payment to States required by the sixth paragraph 
     under the heading of `forest service' in the Act of May 23, 
     1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act 
     of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).

 ``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                  LAND

     ``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL 
                   LAND.

       ``(a) State Payment.--For each of fiscal years 2008 through 
     2011, the Secretary of Agriculture shall calculate for each 
     eligible State an amount equal to the sum of the products 
     obtained by multiplying--
       ``(1) the adjusted share for each eligible county within 
     the eligible State; by
       ``(2) the full funding amount for the fiscal year.
       ``(b) County Payment.--For each of fiscal years 2008 
     through 2011, the Secretary of the Interior shall calculate 
     for each eligible county that received a 50-percent payment 
     during the eligibility period an amount equal to the product 
     obtained by multiplying--
       ``(1) the 50-percent adjusted share for the eligible 
     county; by
       ``(2) the full funding amount for the fiscal year.

     ``SEC. 102. PAYMENTS TO STATES AND COUNTIES.

       ``(a) Payment Amounts.--Except as provided in section 103, 
     the Secretary of the Treasury shall pay to--
       ``(1) a State or territory of the United States an amount 
     equal to the sum of the amounts elected under subsection (b) 
     by each county within the State or territory for--
       ``(A) if the county is eligible for the 25-percent payment, 
     the share of the 25-percent payment; or
       ``(B) the share of the State payment of the eligible 
     county; and
       ``(2) a county an amount equal to the amount elected under 
     subsection (b) by each county for--
       ``(A) if the county is eligible for the 50-percent payment, 
     the 50-percent payment; or
       ``(B) the county payment for the eligible county.
       ``(b) Election to Receive Payment Amount.--
       ``(1) Election; submission of results.--
       ``(A) In general.--The election to receive a share of the 
     State payment, the county payment, a share of the State 
     payment and the county payment, a share of the 25-percent 
     payment, the 50-percent payment, or a share of the 25-percent 
     payment and the 50-percent payment, as applicable, shall be 
     made at the discretion of each affected county by August 1, 
     2008, and August 1 of each second fiscal year thereafter, in 
     accordance with paragraph (2), and transmitted to the 
     Secretary concerned by the Governor of each eligible State.
       ``(B) Failure to transmit.--If an election for an affected 
     county is not transmitted to the Secretary concerned by the 
     date specified under subparagraph (A), the affected county 
     shall be considered to have elected to receive a share of the 
     State payment, the county payment, or a share of the State 
     payment and the county payment, as applicable.
       ``(2) Duration of election.--
       ``(A) In general.--A county election to receive a share of 
     the 25-percent payment or 50-percent payment, as applicable 
     shall be effective for 2 fiscal years.
       ``(B) Full funding amount.--If a county elects to receive a 
     share of the State payment or the county payment, the 
     election shall be effective for all subsequent fiscal years 
     through fiscal year 2011.
       ``(3) Source of payment amounts.--The payment to an 
     eligible State or eligible county under this section for a 
     fiscal year shall be derived from--
       ``(A) any revenues, fees, penalties, or miscellaneous 
     receipts, exclusive of deposits to any relevant trust fund, 
     special account, or permanent operating funds, received by 
     the Federal Government from activities by the Bureau of Land 
     Management or the Forest Service on the applicable Federal 
     land;
       ``(B) for fiscal year 2008, any funds appropriated to carry 
     out this Act; and
       ``(C) to the extent of any shortfall, out of any amounts in 
     the Treasury of the United States not otherwise appropriated.
       ``(c) Distribution and Expenditure of Payments.--
       ``(1) Distribution method.--A State that receives a payment 
     under subsection (a) for Federal land described in section 
     3(7)(A) shall distribute the appropriate payment amount among 
     the appropriate counties in the State in accordance with--
       ``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
       ``(B) section 13 of the Act of March 1, 1911 (36 Stat. 963; 
     16 U.S.C. 500).
       ``(2) Expenditure purposes.--Subject to subsection (d), 
     payments received by a State under subsection (a) and 
     distributed to counties in accordance with paragraph (1) 
     shall be expended as required by the laws referred to in 
     paragraph (1).
       ``(d) Expenditure Rules for Eligible Counties.--
       ``(1) Allocations.--
       ``(A) Use of portion in same manner as 25-percent payment 
     or 50-percent payment, as applicable.--Except as provided in 
     paragraph (3)(B), if an eligible county elects to receive its 
     share of the State payment or the county payment, not less 
     than 80 percent, but not more than 85 percent, of the funds 
     shall be expended in the same manner in which the 25-percent 
     payments or 50-percent payment, as applicable, are required 
     to be expended.
       ``(B) Election as to use of balance.--Except as provided in 
     subparagraph (C), an eligible county shall elect to do 1 or 
     more of the following with the balance of any funds not 
     expended pursuant to subparagraph (A):
       ``(i) Reserve any portion of the balance for projects in 
     accordance with title II.
       ``(ii) Reserve not more than 7 percent of the total share 
     for the eligible county of the State payment or the county 
     payment for projects in accordance with title III.
       ``(iii) Return the portion of the balance not reserved 
     under clauses (i) and (ii) to the Treasury of the United 
     States.
       ``(C) Counties with modest distributions.--In the case of 
     each eligible county to which more than $100,000, but less 
     than $350,000, is distributed for any fiscal year pursuant to 
     either or both of paragraphs (1)(B) and (2)(B) of subsection 
     (a), the eligible county, with respect to the balance of any 
     funds not expended pursuant to subparagraph (A) for that 
     fiscal year, shall--
       ``(i) reserve any portion of the balance for--

       ``(I) carrying out projects under title II;
       ``(II) carrying out projects under title III; or
       ``(III) a combination of the purposes described in 
     subclauses (I) and (II); or

       ``(ii) return the portion of the balance not reserved under 
     clause (i) to the Treasury of the United States.
       ``(2) Distribution of funds.--
       ``(A) In general.--Funds reserved by an eligible county 
     under subparagraph (B)(i) or (C)(i) of paragraph (1) for 
     carrying out projects under title II shall be deposited in a 
     special account in the Treasury of the United States.
       ``(B) Availability.--Amounts deposited under subparagraph 
     (A) shall--
       ``(i) be available for expenditure by the Secretary 
     concerned, without further appropriation; and
       ``(ii) remain available until expended in accordance with 
     title II.
       ``(3) Election.--
       ``(A) Notification.--
       ``(i) In general.--An eligible county shall notify the 
     Secretary concerned of an election by the eligible county 
     under this subsection not later than September 30 of each 
     fiscal year.
       ``(ii) Failure to elect.--Except as provided in 
     subparagraph (B), if the eligible county fails to make an 
     election by the date specified in clause (i), the eligible 
     county shall--

       ``(I) be considered to have elected to expend 85 percent of 
     the funds in accordance with paragraph (1)(A); and
       ``(II) return the balance to the Treasury of the United 
     States.

       ``(B) Counties with minor distributions.--In the case of 
     each eligible county to which less than $100,000 is 
     distributed for any fiscal year pursuant to either or both of 
     paragraphs (1)(B) and (2)(B) of subsection (a), the eligible 
     county may elect to expend all the funds in the same manner 
     in which the 25-percent payments or 50-percent payments, as 
     applicable, are required to be expended.
       ``(e) Time for Payment.--The payments required under this 
     section for a fiscal year shall be made as soon as 
     practicable after the end of that fiscal year.

     ``SEC. 103. TRANSITION PAYMENTS TO CERTAIN STATES.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted amount.--The term `adjusted amount' means, 
     with respect to a covered State--
       ``(A) for fiscal year 2008--
       ``(i) the sum of the amounts paid for fiscal year 2006 
     under section 102(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the covered State that have 
     elected under section 102(b) to receive a share of the State 
     payment for fiscal year 2008; and

[[Page S7389]]

       ``(ii) the sum of the amounts paid for fiscal year 2006 
     under section 103(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the State of Oregon that have 
     elected under section 102(b) to receive the county payment 
     for fiscal year 2008;
       ``(B) for fiscal year 2009, 90 percent of--
       ``(i) the sum of the amounts paid for fiscal year 2006 
     under section 102(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the covered State that have 
     elected under section 102(b) to receive a share of the State 
     payment for fiscal year 2009; and
       ``(ii) the sum of the amounts paid for fiscal year 2006 
     under section 103(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the State of Oregon that have 
     elected under section 102(b) to receive the county payment 
     for fiscal year 2009;
       ``(C) for fiscal year 2010, 81 percent of--
       ``(i) the sum of the amounts paid for fiscal year 2006 
     under section 102(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the covered State that have 
     elected under section 102(b) to receive a share of the State 
     payment for fiscal year 2010; and
       ``(ii) the sum of the amounts paid for fiscal year 2006 
     under section 103(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the State of Oregon that have 
     elected under section 102(b) to receive the county payment 
     for fiscal year 2010; and
       ``(D) for fiscal year 2011, 73 percent of--
       ``(i) the sum of the amounts paid for fiscal year 2006 
     under section 102(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the covered State that have 
     elected under section 102(b) to receive a share of the State 
     payment for fiscal year 2011; and
       ``(ii) the sum of the amounts paid for fiscal year 2006 
     under section 103(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the State of Oregon that have 
     elected under section 102(b) to receive the county payment 
     for fiscal year 2011.
       ``(2) Covered state.--The term `covered State' means each 
     of the States of California, Louisiana, Oregon, Pennsylvania, 
     South Carolina, South Dakota, Texas, and Washington.
       ``(b) Transition Payments.--For each of fiscal years 2008 
     through 2011, in lieu of the payment amounts that otherwise 
     would have been made under paragraphs (1)(B) and (2)(B) of 
     section 102(a), the Secretary of the Treasury shall pay the 
     adjusted amount to each covered State and the eligible 
     counties within the covered State, as applicable.
       ``(c) Distribution of Adjusted Amount in Oregon and 
     Washington.--It is the intent of Congress that the method of 
     distributing the payments under subsection (b) among the 
     counties in a covered State (other than California) for each 
     of fiscal years 2008 through 2011 be in the same proportion 
     that the payments were distributed to the eligible counties 
     in that State in fiscal year 2006.
       ``(d) Distribution of Payments in California.--The 
     following payments shall be distributed among the eligible 
     counties in the State of California in the same proportion 
     that payments under section 102(a)(2) (as in effect on 
     September 29, 2006) were distributed to the eligible counties 
     for fiscal year 2006:
       ``(1) Payments to the State of California under subsection 
     (b).
       ``(2) The shares of the eligible counties of the State 
     payment for California under section 102 for fiscal year 
     2011.
       ``(e) Treatment of Payments.--For purposes of this Act, any 
     payment made under subsection (b) shall be considered to be a 
     payment made under section 102(a).

              ``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND

     ``SEC. 201. DEFINITIONS.

       ``In this title:
       ``(1) Participating county.--The term `participating 
     county' means an eligible county that elects under section 
     102(d) to expend a portion of the Federal funds received 
     under section 102 in accordance with this title.
       ``(2) Project funds.--The term `project funds' means all 
     funds an eligible county elects under section 102(d) to 
     reserve for expenditure in accordance with this title.
       ``(3) Resource advisory committee.--The term `resource 
     advisory committee' means--
       ``(A) an advisory committee established by the Secretary 
     concerned under section 205; or
       ``(B) an advisory committee determined by the Secretary 
     concerned to meet the requirements of section 205.
       ``(4) Resource management plan.--The term `resource 
     management plan' means--
       ``(A) a land use plan prepared by the Bureau of Land 
     Management for units of the Federal land described in section 
     3(7)(B) pursuant to section 202 of the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1712); or
       ``(B) a land and resource management plan prepared by the 
     Forest Service for units of the National Forest System 
     pursuant to section 6 of the Forest and Rangeland Renewable 
     Resources Planning Act of 1974l (16 U.S.C. 1604).

     ``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.

       ``(a) Limitation.--Project funds shall be expended solely 
     on projects that meet the requirements of this title.
       ``(b) Authorized Uses.--Project funds may be used by the 
     Secretary concerned for the purpose of entering into and 
     implementing cooperative agreements with willing Federal 
     agencies, State and local governments, private and nonprofit 
     entities, and landowners for protection, restoration, and 
     enhancement of fish and wildlife habitat, and other resource 
     objectives consistent with the purposes of this Act on 
     Federal land and on non-Federal land where projects would 
     benefit the resources on Federal land.

     ``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.

       ``(a) Submission of Project Proposals to Secretary 
     Concerned.--
       ``(1) Projects funded using project funds.--Not later than 
     September 30 for fiscal year 2008, and each September 30 
     thereafter for each succeeding fiscal year through fiscal 
     year 2011, each resource advisory committee shall submit to 
     the Secretary concerned a description of any projects that 
     the resource advisory committee proposes the Secretary 
     undertake using any project funds reserved by eligible 
     counties in the area in which the resource advisory committee 
     has geographic jurisdiction.
       ``(2) Projects funded using other funds.--A resource 
     advisory committee may submit to the Secretary concerned a 
     description of any projects that the committee proposes the 
     Secretary undertake using funds from State or local 
     governments, or from the private sector, other than project 
     funds and funds appropriated and otherwise available to do 
     similar work.
       ``(3) Joint projects.--Participating counties or other 
     persons may propose to pool project funds or other funds, 
     described in paragraph (2), and jointly propose a project or 
     group of projects to a resource advisory committee 
     established under section 205.
       ``(b) Required Description of Projects.--In submitting 
     proposed projects to the Secretary concerned under subsection 
     (a), a resource advisory committee shall include in the 
     description of each proposed project the following 
     information:
       ``(1) The purpose of the project and a description of how 
     the project will meet the purposes of this title.
       ``(2) The anticipated duration of the project.
       ``(3) The anticipated cost of the project.
       ``(4) The proposed source of funding for the project, 
     whether project funds or other funds.
       ``(5)(A) Expected outcomes, including how the project will 
     meet or exceed desired ecological conditions, maintenance 
     objectives, or stewardship objectives.
       ``(B) An estimate of the amount of any timber, forage, and 
     other commodities and other economic activity, including jobs 
     generated, if any, anticipated as part of the project.
       ``(6) A detailed monitoring plan, including funding needs 
     and sources, that--
       ``(A) tracks and identifies the positive or negative 
     impacts of the project, implementation, and provides for 
     validation monitoring; and
       ``(B) includes an assessment of the following:
       ``(i) Whether or not the project met or exceeded desired 
     ecological conditions; created local employment or training 
     opportunities, including summer youth jobs programs such as 
     the Youth Conservation Corps where appropriate.
       ``(ii) Whether the project improved the use of, or added 
     value to, any products removed from land consistent with the 
     purposes of this title.
       ``(7) An assessment that the project is to be in the public 
     interest.
       ``(c) Authorized Projects.--Projects proposed under 
     subsection (a) shall be consistent with section 2.

     ``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY 
                   CONCERNED.

       ``(a) Conditions for Approval of Proposed Project.--The 
     Secretary concerned may make a decision to approve a project 
     submitted by a resource advisory committee under section 203 
     only if the proposed project satisfies each of the following 
     conditions:
       ``(1) The project complies with all applicable Federal laws 
     (including regulations).
       ``(2) The project is consistent with the applicable 
     resource management plan and with any watershed or subsequent 
     plan developed pursuant to the resource management plan and 
     approved by the Secretary concerned.
       ``(3) The project has been approved by the resource 
     advisory committee in accordance with section 205, including 
     the procedures issued under subsection (e) of that section.
       ``(4) A project description has been submitted by the 
     resource advisory committee to the Secretary concerned in 
     accordance with section 203.
       ``(5) The project will improve the maintenance of existing 
     infrastructure, implement stewardship objectives that enhance 
     forest ecosystems, and restore and improve land health and 
     water quality.
       ``(b) Environmental Reviews.--
       ``(1) Request for payment by county.--The Secretary 
     concerned may request the resource advisory committee 
     submitting a proposed project to agree to the use of project 
     funds to pay for any environmental review, consultation, or 
     compliance with applicable environmental laws required in 
     connection with the project.
       ``(2) Conduct of environmental review.--If a payment is 
     requested under paragraph (1) and the resource advisory 
     committee agrees to the expenditure of funds for this 
     purpose, the Secretary concerned shall conduct environmental 
     review, consultation, or other compliance responsibilities in 
     accordance with Federal laws (including regulations).
       ``(3) Effect of refusal to pay.--
       ``(A) In general.--If a resource advisory committee does 
     not agree to the expenditure

[[Page S7390]]

     of funds under paragraph (1), the project shall be deemed 
     withdrawn from further consideration by the Secretary 
     concerned pursuant to this title.
       ``(B) Effect of withdrawal.--A withdrawal under 
     subparagraph (A) shall be deemed to be a rejection of the 
     project for purposes of section 207(c).
       ``(c) Decisions of Secretary Concerned.--
       ``(1) Rejection of projects.--
       ``(A) In general.--A decision by the Secretary concerned to 
     reject a proposed project shall be at the sole discretion of 
     the Secretary concerned.
       ``(B) No administrative appeal or judicial review.--
     Notwithstanding any other provision of law, a decision by the 
     Secretary concerned to reject a proposed project shall not be 
     subject to administrative appeal or judicial review.
       ``(C) Notice of rejection.--Not later than 30 days after 
     the date on which the Secretary concerned makes the rejection 
     decision, the Secretary concerned shall notify in writing the 
     resource advisory committee that submitted the proposed 
     project of the rejection and the reasons for rejection.
       ``(2) Notice of project approval.--The Secretary concerned 
     shall publish in the Federal Register notice of each project 
     approved under subsection (a) if the notice would be required 
     had the project originated with the Secretary.
       ``(d) Source and Conduct of Project.--Once the Secretary 
     concerned accepts a project for review under section 203, the 
     acceptance shall be deemed a Federal action for all purposes.
       ``(e) Implementation of Approved Projects.--
       ``(1) Cooperation.--Notwithstanding chapter 63 of title 31, 
     United States Code, using project funds the Secretary 
     concerned may enter into contracts, grants, and cooperative 
     agreements with States and local governments, private and 
     nonprofit entities, and landowners and other persons to 
     assist the Secretary in carrying out an approved project.
       ``(2) Best value contracting.--
       ``(A) In general.--For any project involving a contract 
     authorized by paragraph (1) the Secretary concerned may elect 
     a source for performance of the contract on a best value 
     basis.
       ``(B) Factors.--The Secretary concerned shall determine 
     best value based on such factors as--
       ``(i) the technical demands and complexity of the work to 
     be done;
       ``(ii)(I) the ecological objectives of the project; and
       ``(II) the sensitivity of the resources being treated;
       ``(iii) the past experience by the contractor with the type 
     of work being done, using the type of equipment proposed for 
     the project, and meeting or exceeding desired ecological 
     conditions; and
       ``(iv) the commitment of the contractor to hiring highly 
     qualified workers and local residents.
       ``(3) Merchantable timber contracting pilot program.--
       ``(A) Establishment.--The Secretary concerned shall 
     establish a pilot program to implement a certain percentage 
     of approved projects involving the sale of merchantable 
     timber using separate contracts for--
       ``(i) the harvesting or collection of merchantable timber; 
     and
       ``(ii) the sale of the timber.
       ``(B) Annual percentages.--Under the pilot program, the 
     Secretary concerned shall ensure that, on a nationwide basis, 
     not less than the following percentage of all approved 
     projects involving the sale of merchantable timber are 
     implemented using separate contracts:
       ``(i) For fiscal year 2008, 25 percent.
       ``(ii) For fiscal year 2009, 35 percent.
       ``(iii) For fiscal year 2010, 45 percent.
       ``(iv) For each of fiscal years 2011 and 2012, 50 percent.
       ``(C) Inclusion in pilot program.--The decision whether to 
     use separate contracts to implement a project involving the 
     sale of merchantable timber shall be made by the Secretary 
     concerned after the approval of the project under this title.
       ``(D) Assistance.--
       ``(i) In general.--The Secretary concerned may use funds 
     from any appropriated account available to the Secretary for 
     the Federal land to assist in the administration of projects 
     conducted under the pilot program.
       ``(ii) Maximum amount of assistance.--The total amount 
     obligated under this subparagraph may not exceed $1,000,000 
     for any fiscal year during which the pilot program is in 
     effect.
       ``(E) Review and report.--
       ``(i) Initial report.--Not later than September 30, 2009, 
     the Comptroller General shall submit to the Committees on 
     Agriculture, Nutrition, and Forestry and Energy and Natural 
     Resources of the Senate and the Committees on Agriculture and 
     Natural Resources of the House of Representatives a report 
     assessing the pilot program.
       ``(ii) Annual report.--The Secretary concerned shall submit 
     to the Committees on Agriculture, Nutrition, and Forestry and 
     Energy and Natural Resources of the Senate and the Committees 
     on Agriculture and Natural Resources of the House of 
     Representatives an annual report describing the results of 
     the pilot program.
       ``(f) Requirements for Project Funds.--The Secretary shall 
     ensure that at least 50 percent of all project funds be used 
     for projects that are primarily dedicated--
       ``(1) to road maintenance, decommissioning, or 
     obliteration; or
       ``(2) to restoration of streams and watersheds.

     ``SEC. 205. RESOURCE ADVISORY COMMITTEES.

       ``(a) Establishment and Purpose of Resource Advisory 
     Committees.--
       ``(1) Establishment.--The Secretary concerned shall 
     establish and maintain resource advisory committees to 
     perform the duties in subsection (b), except as provided in 
     paragraph (4).
       ``(2) Purpose.--The purpose of a resource advisory 
     committee shall be--
       ``(A) to improve collaborative relationships; and
       ``(B) to provide advice and recommendations to the land 
     management agencies consistent with the purposes of this 
     title.
       ``(3) Access to resource advisory committees.--To ensure 
     that each unit of Federal land has access to a resource 
     advisory committee, and that there is sufficient interest in 
     participation on a committee to ensure that membership can be 
     balanced in terms of the points of view represented and the 
     functions to be performed, the Secretary concerned may, 
     establish resource advisory committees for part of, or 1 or 
     more, units of Federal land.
       ``(4) Existing advisory committees.--
       ``(A) In general.--An advisory committee that meets the 
     requirements of this section, a resource advisory committee 
     established before September 29, 2006, or an advisory 
     committee determined by the Secretary concerned before 
     September 29, 2006, to meet the requirements of this section 
     may be deemed by the Secretary concerned to be a resource 
     advisory committee for the purposes of this title.
       ``(B) Charter.--A charter for a committee described in 
     subparagraph (A) that was filed on or before September 29, 
     2006, shall be considered to be filed for purposes of this 
     Act.
       ``(C) Bureau of land management advisory committees.--The 
     Secretary of the Interior may deem a resource advisory 
     committee meeting the requirements of subpart 1784 of part 
     1780 of title 43, Code of Federal Regulations, as a resource 
     advisory committee for the purposes of this title.
       ``(b) Duties.--A resource advisory committee shall--
       ``(1) review projects proposed under this title by 
     participating counties and other persons;
       ``(2) propose projects and funding to the Secretary 
     concerned under section 203;
       ``(3) provide early and continuous coordination with 
     appropriate land management agency officials in recommending 
     projects consistent with purposes of this Act under this 
     title;
       ``(4) provide frequent opportunities for citizens, 
     organizations, tribes, land management agencies, and other 
     interested parties to participate openly and meaningfully, 
     beginning at the early stages of the project development 
     process under this title;
       ``(5)(A) monitor projects that have been approved under 
     section 204; and
       ``(B) advise the designated Federal official on the 
     progress of the monitoring efforts under subparagraph (A); 
     and
       ``(6) make recommendations to the Secretary concerned for 
     any appropriate changes or adjustments to the projects being 
     monitored by the resource advisory committee.
       ``(c) Appointment by the Secretary.--
       ``(1) Appointment and term.--
       ``(A) In general.--The Secretary concerned, shall appoint 
     the members of resource advisory committees for a term of 4 
     years beginning on the date of appointment.

[[Page S7391]]

       ``(B) Reappointment.--The Secretary concerned may reappoint 
     members to subsequent 4-year terms.
       ``(2) Basic requirements.--The Secretary concerned shall 
     ensure that each resource advisory committee established 
     meets the requirements of subsection (d).
       ``(3) Initial appointment.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary 
     concerned shall make initial appointments to the resource 
     advisory committees.
       ``(4) Vacancies.--The Secretary concerned shall make 
     appointments to fill vacancies on any resource advisory 
     committee as soon as practicable after the vacancy has 
     occurred.
       ``(5) Compensation.--Members of the resource advisory 
     committees shall not receive any compensation.
       ``(d) Composition of Advisory Committee.--
       ``(1) Number.--Each resource advisory committee shall be 
     comprised of 15 members.
       ``(2) Community interests represented.--Committee members 
     shall be representative of the interests of the following 3 
     categories:
       ``(A) 5 persons that--
       ``(i) represent organized labor or non-timber forest 
     product harvester groups;
       ``(ii) represent developed outdoor recreation, off highway 
     vehicle users, or commercial recreation activities;
       ``(iii) represent--

       ``(I) energy and mineral development interests; or
       ``(II) commercial or recreational fishing interests;

       ``(iv) represent the commercial timber industry; or
       ``(v) hold Federal grazing or other land use permits, or 
     represent nonindustrial private forest land owners, within 
     the area for which the committee is organized.
       ``(B) 5 persons that represent--
       ``(i) nationally recognized environmental organizations;
       ``(ii) regionally or locally recognized environmental 
     organizations;
       ``(iii) dispersed recreational activities;
       ``(iv) archaeological and historical interests; or
       ``(v) nationally or regionally recognized wild horse and 
     burro interest groups, wildlife or hunting organizations, or 
     watershed associations.
       ``(C) 5 persons that--
       ``(i) hold State elected office (or a designee);
       ``(ii) hold county or local elected office;
       ``(iii) represent American Indian tribes within or adjacent 
     to the area for which the committee is organized;
       ``(iv) are school officials or teachers; or
       ``(v) represent the affected public at large.
       ``(3) Balanced representation.--In appointing committee 
     members from the 3 categories in paragraph (2), the Secretary 
     concerned shall provide for balanced and broad representation 
     from within each category.
       ``(4) Geographic distribution.--The members of a resource 
     advisory committee shall reside within the State in which the 
     committee has jurisdiction and, to extent practicable, the 
     Secretary concerned shall ensure local representation in each 
     category in paragraph (2).
       ``(5) Chairperson.--A majority on each resource advisory 
     committee shall select the chairperson of the committee.
       ``(e) Approval Procedures.--
       ``(1) In general.--Subject to paragraph (3), each resource 
     advisory committee shall establish procedures for proposing 
     projects to the Secretary concerned under this title.
       ``(2) Quorum.--A quorum must be present to constitute an 
     official meeting of the committee.
       ``(3) Approval by majority of members.--A project may be 
     proposed by a resource advisory committee to the Secretary 
     concerned under section 203(a), if the project has been 
     approved by a majority of members of the committee from each 
     of the 3 categories in subsection (d)(2).
       ``(f) Other Committee Authorities and Requirements.--
       ``(1) Staff assistance.--A resource advisory committee may 
     submit to the Secretary concerned a request for periodic 
     staff assistance from Federal employees under the 
     jurisdiction of the Secretary.
       ``(2) Meetings.--All meetings of a resource advisory 
     committee shall be announced at least 1 week in advance in a 
     local newspaper of record and shall be open to the public.
       ``(3) Records.--A resource advisory committee shall 
     maintain records of the meetings of the committee and make 
     the records available for public inspection.

     ``SEC. 206. USE OF PROJECT FUNDS.

       ``(a) Agreement Regarding Schedule and Cost of Project.--
       ``(1) Agreement between parties.--The Secretary concerned 
     may carry out a project submitted by a resource advisory 
     committee under section 203(a) using project funds or other 
     funds described in section 203(a)(2), if, as soon as 
     practicable after the issuance of a decision document for the 
     project and the exhaustion of all administrative appeals and 
     judicial review of the project decision, the Secretary 
     concerned and the resource advisory committee enter into an 
     agreement addressing, at a minimum, the following:
       ``(A) The schedule for completing the project.
       ``(B) The total cost of the project, including the level of 
     agency overhead to be assessed against the project.
       ``(C) For a multiyear project, the estimated cost of the 
     project for each of the fiscal years in which it will be 
     carried out.
       ``(D) The remedies for failure of the Secretary concerned 
     to comply with the terms of the agreement consistent with 
     current Federal law.
       ``(2) Limited use of federal funds.--The Secretary 
     concerned may decide, at the sole discretion of the Secretary 
     concerned, to cover the costs of a portion of an approved 
     project using Federal funds appropriated or otherwise 
     available to the Secretary for the same purposes as the 
     project.
       ``(b) Transfer of Project Funds.--
       ``(1) Initial transfer required.--As soon as practicable 
     after the agreement is reached under subsection (a) with 
     regard to a project to be funded in whole or in part using 
     project funds, or other funds described in section 203(a)(2), 
     the Secretary concerned shall transfer to the applicable unit 
     of National Forest System land or Bureau of Land Management 
     District an amount of project funds equal to--
       ``(A) in the case of a project to be completed in a single 
     fiscal year, the total amount specified in the agreement to 
     be paid using project funds, or other funds described in 
     section 203(a)(2); or
       ``(B) in the case of a multiyear project, the amount 
     specified in the agreement to be paid using project funds, or 
     other funds described in section 203(a)(2) for the first 
     fiscal year.
       ``(2) Condition on project commencement.--The unit of 
     National Forest System land or Bureau of Land Management 
     District concerned, shall not commence a project until the 
     project funds, or other funds described in section 203(a)(2) 
     required to be transferred under paragraph (1) for the 
     project, have been made available by the Secretary concerned.
       ``(3) Subsequent transfers for multiyear projects.--
       ``(A) In general.--For the second and subsequent fiscal 
     years of a multiyear project to be funded in whole or in part 
     using project funds, the unit of National Forest System land 
     or Bureau of Land Management District concerned shall use the 
     amount of project funds required to continue the project in 
     that fiscal year according to the agreement entered into 
     under subsection (a).
       ``(B) Suspension of work.--The Secretary concerned shall 
     suspend work on the project if the project funds required by 
     the agreement in the second and subsequent fiscal years are 
     not available.

     ``SEC. 207. AVAILABILITY OF PROJECT FUNDS.

       ``(a) Submission of Proposed Projects to Obligate Funds.--
     By September 30 of each fiscal year through fiscal year 2011, 
     a resource advisory committee shall submit to the Secretary 
     concerned pursuant to section 203(a)(1) a sufficient number 
     of project proposals that, if approved, would result in the 
     obligation of at least the full amount of the project funds 
     reserved by the participating county in the preceding fiscal 
     year.
       ``(b) Use or Transfer of Unobligated Funds.--Subject to 
     section 208, if a resource advisory committee fails to comply 
     with subsection (a) for a fiscal year, any project funds 
     reserved by the participating county in the preceding fiscal 
     year and remaining unobligated shall be available for use as 
     part of the project submissions in the next fiscal year.
       ``(c) Effect of Rejection of Projects.--Subject to section 
     208, any project funds reserved by a participating county in 
     the preceding fiscal year that are unobligated at the end of 
     a fiscal year because the Secretary concerned has rejected 
     one or more proposed projects shall be available for use as 
     part of the project submissions in the next fiscal year.
       ``(d) Effect of Court Orders.--
       ``(1) In general.--If an approved project under this Act is 
     enjoined or prohibited by a Federal court, the Secretary 
     concerned shall return the unobligated project funds related 
     to the project to the participating county or counties that 
     reserved the funds.
       ``(2) Expenditure of funds.--The returned funds shall be 
     available for the county to expend in the same manner as the 
     funds reserved by the county under subparagraph (B) or (C)(i) 
     of section 102(d)(1).

     ``SEC. 208. TERMINATION OF AUTHORITY.

       ``(a) In General.--The authority to initiate projects under 
     this title shall terminate on September 30, 2011.
       ``(b) Deposits in Treasury.--Any project funds not 
     obligated by September 30, 2012, shall be deposited in the 
     Treasury of the United States.

                       ``TITLE III--COUNTY FUNDS

     ``SEC. 301. DEFINITIONS.

       ``In this title:
       ``(1) County funds.--The term `county funds' means all 
     funds an eligible county elects under section 102(d) to 
     reserve for expenditure in accordance with this title.
       ``(2) Participating county.--The term `participating 
     county' means an eligible county that elects under section 
     102(d) to expend a portion of the Federal funds received 
     under section 102 in accordance with this title.

     ``SEC. 302. USE.

       ``(a) Authorized Uses.--A participating county, including 
     any applicable agencies of the participating county, shall 
     use county funds, in accordance with this title, only--
       ``(1) to carry out activities under the Firewise 
     Communities program to provide to homeowners in fire-
     sensitive ecosystems education on, and assistance with 
     implementing, techniques in home siting, home

[[Page S7392]]

     construction, and home landscaping that can increase the 
     protection of people and property from wildfires;
       ``(2) to reimburse the participating county for search and 
     rescue and other emergency services, including firefighting, 
     that are--
       ``(A) performed on Federal land after the date on which the 
     use was approved under subsection (b);
       ``(B) paid for by the participating county; and
       ``(3) to develop community wildfire protection plans in 
     coordination with the appropriate Secretary concerned.
       ``(b) Proposals.--A participating county shall use county 
     funds for a use described in subsection (a) only after a 45-
     day public comment period, at the beginning of which the 
     participating county shall--
       ``(1) publish in any publications of local record a 
     proposal that describes the proposed use of the county funds; 
     and
       ``(2) submit the proposal to any resource advisory 
     committee established under section 205 for the participating 
     county.

     ``SEC. 303. CERTIFICATION.

       ``(a) In General.--Not later than February 1 of the year 
     after the year in which any county funds were expended by a 
     participating county, the appropriate official of the 
     participating county shall submit to the Secretary concerned 
     a certification that the county funds expended in the 
     applicable year have been used for the uses authorized under 
     section 302(a), including a description of the amounts 
     expended and the uses for which the amounts were expended.
       ``(b) Review.--The Secretary concerned shall review the 
     certifications submitted under subsection (a) as the 
     Secretary concerned determines to be appropriate.

     ``SEC. 304. TERMINATION OF AUTHORITY.

       ``(a) In General.--The authority to initiate projects under 
     this title terminates on September 30, 2011.
       ``(b) Availability.--Any county funds not obligated by 
     September 30, 2012, shall be returned to the Treasury of the 
     United States.

                  ``TITLE IV--MISCELLANEOUS PROVISIONS

     ``SEC. 401. REGULATIONS.

       ``The Secretary of Agriculture and the Secretary of the 
     Interior shall issue regulations to carry out the purposes of 
     this Act.

     ``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     such sums as are necessary to carry out this Act for each of 
     fiscal years 2008 through 2011.
       ``(b) Emergency Designation.--Of the amounts authorized to 
     be appropriated under subsection (a) for fiscal year 2008, 
     $425,000,000 is designated as an emergency requirement 
     pursuant to section 402 of H. Con. Res. 95 (109th Congress).

     ``SEC. 403. TREATMENT OF FUNDS AND REVENUES.

       ``(a) Relation to Other Appropriations.--Funds made 
     available under section 402 and funds made available to a 
     Secretary concerned under section 206 shall be in addition to 
     any other annual appropriations for the Forest Service and 
     the Bureau of Land Management.
       ``(b) Deposit of Revenues and Other Funds.--All revenues 
     generated from projects pursuant to title II, including any 
     interest accrued from the revenues, shall be deposited in the 
     Treasury of the United States.''.
       (b) Forest Receipt Payments to Eligible States and 
     Counties.--
       (1) Act of may 23, 1908.--The sixth paragraph under the 
     heading ``forest service'' in the Act of May 23, 1908 (16 
     U.S.C. 500) is amended in the first sentence by striking 
     ``twenty-five percentum'' and all that follows through 
     ``shall be paid'' and inserting the following: ``an amount 
     equal to the annual average of 25 percent of all amounts 
     received for the applicable fiscal year and each of the 
     preceding 6 fiscal years from each national forest shall be 
     paid''.
       (2) Weeks law.--Section 13 of the Act of March 1, 1911 
     (commonly known as the ``Weeks Law'') (16 U.S.C. 500) is 
     amended in the first sentence by striking ``twenty-five 
     percentum'' and all that follows through ``shall be paid'' 
     and inserting the following: ``an amount equal to the annual 
     average of 25 percent of all amounts received for the 
     applicable fiscal year and each of the preceding 6 fiscal 
     years from each national forest shall be paid''.
       (c) Payments in Lieu of Taxes.--
       (1) In general.--Section 6906 of title 31, United States 
     Code, is amended to read as follows:

     ``Sec. 6906. Funding

       ``For each of fiscal years 2008 through 2011--
       ``(1) each county or other eligible unit of local 
     government shall be entitled to payment under this chapter; 
     and
       ``(2) sums shall be made available to the Secretary of the 
     Interior for obligation or expenditure in accordance with 
     this chapter.''.
       (2) Conforming amendment.--The table of sections for 
     chapter 69 of title 31, United States Code, is amended by 
     striking the item relating to section 6906 and inserting the 
     following:

``6906. Funding.''.

       (3) Budget scorekeeping.--
       (A) In general.--Notwithstanding the Budget Scorekeeping 
     Guidelines and the accompanying list of programs and accounts 
     set forth in the joint explanatory statement of the committee 
     of conference accompanying Conference Report 105-217, the 
     amendment made by paragraph (1)--
       (i) shall be treated under section 252 of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (as in 
     effect before September 30, 2002), by the Chairpersons of the 
     Committee on the Budget of the House of Representatives and 
     the Committee on the Budget of the Senate, as appropriate, 
     for purposes of budget enforcement in the House of 
     Representatives and the Senate, and under the Congressional 
     Budget Act of 1974 (2 U.S.C. 601 et seq.) as changing direct 
     spending or receipts, as appropriate (as if such language 
     were included in an Act other than an appropriations Act); 
     and
       (ii) shall be treated in the baseline after fiscal year 
     2008 for purposes of section 257 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 907) (as in 
     effect before September 30, 2002), by the Chairpersons of the 
     Committee on the Budget of the House of Representatives and 
     the Committee on the Budget of the Senate, as appropriate, 
     for purposes of budget enforcement in the House of 
     Representatives and the Senate, and under the Congressional 
     Budget Act of 1974 (2 U.S.C. 601 et seq.) as if Payment in 
     Lieu of Taxes (14-1114-0-1-806) were an account designated as 
     Appropriated Entitlements and Mandatories for Fiscal Year 
     1997 in the joint explanatory statement of the committee of 
     conference accompanying Conference Report 105-217.
       (B) Effective date.--This paragraph shall--
       (i) be effective beginning on the date of enactment of this 
     Act; and
       (ii) remain in effect for any fiscal year for which the 
     entitlement in section 6906 of title 31, United States Code 
     (as amended by paragraph (1)), applies.
       (d) Modification of Effective Date of Leasing Provisions of 
     the American Jobs Creation Act of 2004.--
       (1) Leases to foreign entities.--Section 849(b) of the 
     American Jobs Creation Act of 2004 is amended by adding at 
     the end the following new paragraph:
       ``(5) Leases to foreign entities.--In the case of tax-
     exempt use property leased to a tax-exempt entity which is a 
     foreign person or entity, the amendments made by this part 
     shall apply to taxable years beginning after December 31, 
     2006, with respect to leases entered into on or before March 
     12, 2004.''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the enactment of the 
     American Jobs Creation Act of 2004.
       (e) Application of Rules Treating Inverted Corporations as 
     Domestic Corporations to Certain Transactions Occurring After 
     March 20, 2002.--
       (1) In general.--Section 7874(b) (relating to inverted 
     corporations treated as domestic corporations) is amended to 
     read as follows:
       ``(b) Inverted Corporations Treated as Domestic 
     Corporations.--
       ``(1) In general.--Notwithstanding section 7701(a)(4), a 
     foreign corporation shall be treated for purposes of this 
     title as a domestic corporation if such corporation would be 
     a surrogate foreign corporation if subsection (a)(2) were 
     applied by substituting `80 percent' for `60 percent'.
       ``(2) Special rule for certain transactions occurring after 
     march 20, 2002.--
       ``(A) In general.--If--
       ``(i) paragraph (1) does not apply to a foreign 
     corporation, but
       ``(ii) paragraph (1) would apply to such corporation if, in 
     addition to the substitution under paragraph (1), subsection 
     (a)(2) were applied by substituting `March 20, 2002' for 
     `March 4, 2003' each place it appears,
     then paragraph (1) shall apply to such corporation but only 
     with respect to taxable years of such corporation beginning 
     after December 31, 2006.
       ``(B) Special rules.--Subject to such rules as the 
     Secretary may prescribe, in the case of a corporation to 
     which paragraph (1) applies by reason of this paragraph--
       ``(i) the corporation shall be treated, as of the close of 
     its last taxable year beginning before January 1, 2008, as 
     having transferred all of its assets, liabilities, and 
     earnings and profits to a domestic corporation in a 
     transaction with respect to which no tax is imposed under 
     this title,
       ``(ii) the bases of the assets transferred in the 
     transaction to the domestic corporation shall be the same as 
     the bases of the assets in the hands of the foreign 
     corporation, subject to any adjustments under this title for 
     built-in losses,
       ``(iii) the basis of the stock of any shareholder in the 
     domestic corporation shall be the same as the basis of the 
     stock of the shareholder in the foreign corporation for which 
     it is treated as exchanged, and
       ``(iv) the transfer of any earnings and profits by reason 
     of clause (i) shall be disregarded in determining any deemed 
     dividend or foreign tax creditable to the domestic 
     corporation with respect to such transfer.
       ``(C) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this paragraph, including regulations to prevent the 
     avoidance of the purposes of this paragraph.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2006.
                                 ______
                                 
  SA 5171. Mr. VOINOVICH (for himself, Mr. Roberts, and Mr. Sununu) 
submitted an amendment intended to

[[Page S7393]]

be proposed by him to the bill S. 3268, to amend the Commodity Exchange 
Act, to prevent excessive price speculation with respect to energy 
commodities, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

                     TITLE II--DEEP SEA EXPLORATION

     SEC. 201. 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 Stop Excessive Energy 
     Speculation 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.
       ``(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. 202. 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).
       ``(7) Qualified revenue.--The term `qualified revenue' 
     means the amount estimated by the Secretary of the Federal 
     share of 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 the enactment of the Stop Excessive 
     Energy Speculation Act of 2008 for new producing areas under 
     this section.
       ``(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.
       ``(e) Energy Trust Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     of the United States a revolving fund, to be known as the 
     `Energy Trust Fund', consisting of such amounts as

[[Page S7394]]

     may be transferred to the Trust Fund under paragraph (2).
       ``(2) Transfers to trust fund.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall transfer to the Energy Trust Fund amounts 
     equivalent to 20 percent of the qualified revenue received 
     for each fiscal year under this section.
       ``(B) Limitation on transfers to energy trust fund.--The 
     amounts transferred to the Energy Trust Fund for any fiscal 
     year under this paragraph shall not exceed $1,000,000,000.
       ``(3) Expenditures.--On request by the Secretary of Energy, 
     the Secretary of the Treasury shall transfer from the Energy 
     Trust Fund to the Secretary of Energy such amounts as the 
     Secretary of Energy determines are necessary to carry out 
     activities--
       ``(A) to accelerate the use of clean domestic renewable 
     energy resources (including solar, wind, clean coal, and 
     nuclear energy resources) and alternative fuels (including 
     ethanol, and including cellulosic ethanol, biodiesel, and 
     fuel cell technology);
       ``(B) to promote the use of energy-efficient products and 
     practices and conservation; and
       ``(C) to increase research, development, and deployment of 
     clean renewable energy and efficiency technologies.
       ``(4) Transfers of amounts.--
       ``(A) In general.--The amounts required to be transferred 
     to the Energy Trust Fund under this subsection shall be 
     transferred at least monthly from the general fund of the 
     Treasury to the Energy Trust Fund on the basis of estimates 
     made by the Secretary of the Treasury.
       ``(B) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.''.

     SEC. 203. 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''.
                                 ______
                                 
  SA 5172. Mr. SESSIONS submitted an amendment intended to be proposed 
by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. GULF OF MEXICO ENERGY SECURITY.

       (a) Definitions.--Section 102(9)(A)(i) of the Gulf of 
     Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; 
     Public Law 109-432) is amended--
       (1) in subclause (I), by striking ``and'' at the end; and
       (2) by adding at the end the following:

       ``(III) any area in the 181 Area that was not available for 
     leasing on July 1, 2008; and''.

       (b) Offshore Oil and Gas Leasing.--Section 103(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 ``Except'' and inserting the following:
       ``(1) In general.--Except''; and
       (2) by adding at the end the following:
       ``(2) Leasing after certain date.--The Secretary shall 
     offer any part of the 181 Area for oil and gas leasing 
     pursuant to the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) that was not available for leasing on July 1, 
     2008, as soon as practicable, but not later than 2 years, 
     after that date and at any time thereafter, as the Secretary 
     determines to be appropriate.''.
       (c) Moratorium on Leasing.--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 by striking paragraph (3) and 
     inserting the following:
       ``(3) any area in the Central Planning Area that is--
       ``(A) outside the 181 Area;
       ``(B) east of the western edge of the Pensacola Official 
     Protection Diagram (UTM X coordinate 1,393,920 (NAD 27 
     feet)); and
       ``(C) within 100 miles of the coastline of the State of 
     Florida.''.
                                 ______
                                 
  SA 5173. Mr. SESSIONS submitted an amendment intended to be proposed 
by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

             TITLE __--BETTER ENERGY STRATEGY FOR TOMORROW

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Better Energy Strategy for 
     Tomorrow Act of 2008'' or the ``BEST Act of 2008''.

     SEC. _02. DEFINITIONS.

       In this title:
       (1) Air pollutant.--The term ``air pollutant'' has the 
     meaning given the term in section 302 of the Clean Air Act 
     (42 U.S.C. 7602).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. _03. FEDERAL ENERGY POLICIES.

       Not later than 90 days after the date of enactment of this 
     Act and annually thereafter, the Secretary shall--
       (1) conduct an analysis of all policies of the Federal 
     Government (including mandates, subsidies, tariffs, and tax 
     policy) that encourage, or have the potential to encourage, 
     energy production in the United States; and
       (2) submit to the Committee on Energy and Natural Resources 
     of the Senate and the Committee on Energy and Commerce of the 
     House of Representatives a report that contains 
     recommendations for the adjustment of the policies described 
     in paragraph (1) to reduce--
       (A) the dependence of the United States on foreign sources 
     of energy;
       (B) the quantity of air pollutants in the environment;
       (C) greenhouse gas emissions; and
       (D) the cost of energy.

     SEC. _04. ENERGY SECURITY STRATEGY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act and every 4 years thereafter, the 
     President shall develop an energy security strategy that 
     proposes comprehensive and long-range energy policies for the 
     United States to reduce--
       (1) the dependence of the United States on foreign sources 
     of energy;
       (2) the quantity of air pollutants in the environment;
       (3) greenhouse gas emissions; and
       (4) the cost of energy.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act and every 4 years year thereafter, the 
     President shall submit to the Committee on Energy and Natural 
     Resources of the Senate and the Committee on Energy and 
     Commerce of the House of Representatives a report that 
     describes the latest energy security strategy developed under 
     subsection (a), including--
       (1) an estimate of the domestic and foreign energy supplies 
     needed to meet the projected energy demand of the United 
     States consistent with the strategy developed under 
     subsection (a); and
       (2) a summary of research and development efforts funded by 
     the Federal Government to achieve the strategy developed 
     under subsection (a).

     SEC. _05. ADMINISTRATION.

       (a) Comments.--In preparing each report required under 
     sections _03(2) and _04(b) (referred to in this section as 
     ``each report''), the Secretary and the President, 
     respectively, shall seek the comments of State and local 
     agencies and the private sector to ensure, to the maximum 
     extent practicable, that the views and proposals of all 
     segments of the economy are taken into account in preparing 
     each report.
       (b) Data and Analysis.--The Secretary and the President 
     shall include in each report such data and analyses as are 
     necessary to support the objectives, resource needs, and 
     policy recommendations of each report.
       (c) Review.--The Secretary and the President shall enter 
     into an arrangement with the National Academy of Sciences 
     under which the Academy shall--
       (1) conduct a review of each report; and
       (2) submit to the Committee on Energy and Natural Resources 
     of the Senate, the Committee on Energy and Commerce of the 
     House of Representatives, and the Secretary a report that 
     describes the results of each review.
                                 ______
                                 
  SA 5174. Mr. SESSIONS submitted an amendment intended to be proposed 
by him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. STUDY OF DIESEL VEHICLE ATTRIBUTES.

       (a) In General.--The Secretary of Energy, in consultation 
     with the Administrator of the Environmental Protection Agency 
     and the Secretary of Transportation, shall conduct a study to 
     identify--
       (1) the environmental and efficiency attributes of diesel-
     fueled vehicles as compared to comparable vehicles fueled by 
     gasoline or E-85 fuel and hybrid vehicles;
       (2) the technical, economic, regulatory, environmental, and 
     other obstacles to increasing the usage of diesel-fueled 
     vehicles;
       (3) the legislative, administrative, and other actions that 
     could reduce or eliminate the obstacles identified under 
     paragraph (2); and
       (4) the costs and benefits associated with reducing or 
     eliminating the obstacles identified under paragraph (2).
       (b) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Energy and Commerce of the House of 
     Representatives a report describing the results of the study 
     conducted under subsection (a).
                                 ______
                                 
  SA 5175. Mr. INHOFE (for himself and Mr. Domenici) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:


[[Page S7395]]


       At the appropriate place, insert the following:

     SEC. __. REPEAL.

       Section 526 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17142) is repealed.
                                 ______
                                 
  SA 5176. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 43, after line 24, add the following:

     SEC. 17. ESTABLISHMENT OF CHIEF ENERGY AND ENERGY SERVICES 
                   NEGOTIATOR.

       (a) In General.--Section 141(b)(2) of the Trade Act of 1974 
     (19 U.S.C. 2171(b)(2)) is amended to read as follows:
       ``(2)(A) There shall be in the Office 3 Deputy United 
     States Trade Representatives, 1 Chief Agricultural 
     Negotiator, and 1 Chief Energy and Energy Services 
     Negotiator.
       ``(B) The 3 Deputy United States Trade Representatives, the 
     Chief Agricultural Negotiator, and the Chief Energy and 
     Energy Services Negotiator shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       ``(C) As an exercise of the rulemaking power of the Senate, 
     any nomination of a Deputy United States Trade 
     Representative, the Chief Agricultural Negotiator, or the 
     Chief Energy and Energy Services Negotiator submitted to the 
     Senate for its advice and consent, and referred to a 
     committee, shall be referred to the Committee on Finance.
       ``(D) Each Deputy United States Trade Representative, the 
     Chief Agricultural Negotiator, and the Chief Energy and 
     Energy Services Negotiator shall hold office at the pleasure 
     of the President and shall have the rank of Ambassador''.
       (b) Duties.--Section 141(c) of the Trade Act of 1974 (19 
     U.S.C. 2171(c)) is amended by adding at the end the 
     following:
       ``(6) The principal function of the Chief Energy and Energy 
     Services Negotiator shall be to eliminate energy subsidies 
     and policies of foreign governments that distort trade and 
     adversely affect the United States.''.

     SEC. 18. STUDIES AND REPORTS ON SUBSIDIZATION OF FUELS AND 
                   ENERGY USE BY FOREIGN COUNTRIES.

       (a) ITC Annual Study and Report on Economic Impact of 
     Foreign Subsidization of Retail Fuel and Energy.--
       (1) Study.--Not later than 60 days after the date of the 
     enactment of this Act and annually thereafter, the 
     International Trade Commission shall commence a study on--
       (A) the subsidization by foreign governments of retail fuel 
     and energy use in foreign countries; and
       (B) the impact of such subsidization on the economy of the 
     United States.
       (2) Report.--Not later than June 1, 2009, and June 1 of 
     each year thereafter, the Secretary shall submit to Congress 
     a report describing the findings of the Secretary with 
     respect to the most recent study commenced by the Secretary 
     under paragraph (1).
       (b) USTR Bi-Annual Study and Report on Energy Use Subsidies 
     Provided by Foreign Governments.--
       (1) Study.--Not later than 90 days after the date of the 
     enactment of this Act and every 180 days thereafter, the 
     United States Trade Representative shall conduct a study on 
     the provision by foreign governments of energy use subsidies.
       (2) Report.--Not later than January 1, 2009, and every 180 
     days thereafter, the United States Trade Representative shall 
     submit to the Industry Trade Advisory Committee on Energy and 
     Energy Services of the Department of Commerce and Congress a 
     report on the findings of the United States Trade 
     Representative with respect to the most recent study 
     conducted by the United States Trade Representative under 
     paragraph (1), including a description of the amounts of 
     energy use subsidies provided by foreign governments.
       (c) Energy Information Agency Annual Study and Report on 
     Foreign Subsidization of Energy and Fuel Use.--
       (1) Annual study.--Each year, the Secretary of Energy 
     shall, acting through the Administrator of the Energy 
     Information Administration, conduct a study on foreign 
     governments that subsidize energy and fuel use and assess the 
     impact of such subsidization on energy costs in the United 
     States.
       (2) Annual report.--Not later than June 1 of each year, the 
     Secretary of Energy shall submit to the President and 
     Congress a report on the findings of the Secretary with 
     respect to the most recent study conducted under paragraph 
     (1).

     SEC. 19. DEPARTMENT OF STATE ANNUAL REPORT ON ENERGY 
                   SECURITY.

       (a) Annual Report.--Not later than March 1 of each year, 
     the Secretary of State shall submit to the appropriate 
     committees of Congress a report on the efforts undertaken by 
     the Secretary in the previous calendar year to achieve the 
     following goals:
       (1) To eliminate energy subsidies and policies of foreign 
     governments that distort trade and adversely affect the 
     United States.
       (2) To enhance United States and global energy security 
     by--
       (A) promoting open and transparent, integrated, and 
     diversified energy markets;
       (B) encouraging appropriate energy-sector investments to 
     expand access to energy and increase economic growth and 
     opportunity; and
       (C) developing clean and efficient energy technologies.
       (b) Appropriate Committees of Congress.--In this section, 
     the term ``appropriate committees of Congress'' means--
       (1) the Committee on Foreign Relations of the Senate;
       (2) the Committee on Energy and Natural Resources of the 
     Senate;
       (3) the Committee on Foreign Affairs of the House of 
     Representatives; and
       (4) the Committee on Energy and Commerce of the House of 
     Representatives.
                                 ______
                                 
  SA 5177. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

                         TITLE II--NATURAL GAS

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Drive America on Natural 
     Gas Act of 2008''.

     SEC. 202. NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHICLE CREDIT 
                   ALLOWED FOR DUAL FUELED MOTOR VEHICLES.

       (a) In General.--Clause (i) of section 30B(e)(4)(A) of the 
     Internal Revenue Code of 1986 (relating to definition of new 
     qualified alternative fuel motor vehicle) is amended to read 
     as follows:
       ``(i) which--

       ``(I) is only capable of operating on an alternative fuel, 
     or
       ``(II) is capable of operating on an alternative fuel alone 
     and gasoline or diesel fuel alone,''.

       (b) 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. NATURAL GAS VEHICLE RESEARCH, DEVELOPMENT, AND 
                   DEMONSTRATION PROJECTS.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Natural gas.--The term ``natural gas'' means compressed 
     natural gas, liquefied natural gas, biomethane, and mixtures 
     of hydrogen and methane or natural gas.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (b) Program.--The Secretary, in coordination with the 
     Administrator, shall conduct a program of natural gas vehicle 
     research, development, and demonstration.
       (c) Purpose.--The program under this section shall focus 
     on--
       (1) the continued improvement and development of new, 
     cleaner, more efficient light-duty, medium-duty, and heavy-
     duty natural gas vehicle engines;
       (2) the integration of those engines into light-duty, 
     medium-duty, and heavy-duty natural gas vehicles for onroad 
     and offroad applications;
       (3) expanding product availability by assisting 
     manufacturers with the certification of the engines or 
     vehicles described in paragraph (1) or (2) to Federal and 
     California certification requirements and in-use emission 
     standards;
       (4) the demonstration and proper operation and use of the 
     vehicles described in paragraph (2) under all operating 
     conditions;
       (5) the development and improvement of nationally 
     recognized codes and standards for the continued safe 
     operation of natural gas vehicles and components;
       (6) improvement in the reliability and efficiency of 
     natural gas fueling station infrastructure;
       (7) the certification of natural gas fueling station 
     infrastructure to nationally recognized and industry safety 
     standards;
       (8) the improvement in the reliability and efficiency of 
     onboard natural gas fuel storage systems;
       (9) the development of new natural gas fuel storage 
     materials;
       (10) the certification of onboard natural gas fuel storage 
     systems to nationally recognized and industry safety 
     standards; and
       (11) the use of natural gas engines in hybrid vehicles.
       (d) Certification of Conversion Systems.--The Secretary 
     shall coordinate with the Administrator on issues related to 
     streamlining the certification of natural gas conversion 
     systems to the appropriate Federal certification requirements 
     and in-use emission standards.
       (e) Cooperation and Coordination With Industry.--In 
     developing and carrying out the program under this section, 
     the Secretary shall coordinate with the natural gas vehicle 
     industry to ensure cooperation between the public and the 
     private sector.
       (f) Conduct of Program.--The program under this section 
     shall be conducted in accordance with sections 3001 and 3002 
     of the Energy Policy Act of 1992 (42 U.S.C. 13541, 13542).
       (g) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the implementation of this section.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as are 
     necessary to carry out this section.

[[Page S7396]]

     SEC. 204. DEVELOPMENT OF LOW-EMISSION NATURAL GAS 
                   TRANSPORTATION-FUELED VEHICLES.

       Part C of title II of the Clean Air Act (42 U.S.C. 7581 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 251. DEVELOPMENT OF LOW-EMISSION NATURAL GAS 
                   TRANSPORTATION-FUELED VEHICLES.

       ``(a) Definitions.--In this section:
       ``(1) Alternative fuel.--The term `alternative fuel' means 
     compressed or liquefied natural gas or liquefied petroleum 
     gas.
       ``(2) Alternative-fueled vehicle.--The term `alternative-
     fueled vehicle' means a vehicle that is manufactured or 
     converted to operate using alternative fuel.
       ``(3) Bi-fueled vehicle.--The term `bi-fueled vehicle' 
     means a vehicle that is capable of operating on gasoline or 
     an alternative fuel, but not both at the same time.
       ``(4) Convert.--The term `convert', with respect to a 
     vehicle, means to modify the engine and other applicable 
     components of the vehicle to enable the vehicle to operate 
     using an alternative fuel (including compressed natural gas).
       ``(5) OBD system.--The term `OBD system' means an on-board, 
     computer-based diagnostic system built into certain vehicles 
     to monitor the performance of certain primary engine 
     components of the vehicle (including components responsible 
     for controlling emissions).
       ``(6) Program.--The term `program' means the alternative-
     fueled vehicle development demonstration program established 
     under subsection (b).
       ``(7) Small volume manufacturer.--
       ``(A) In general.--The term `small volume manufacturer' 
     means a manufacturer of vehicles described in section 86.001-
     1(e) of title 40, Code of Federal Regulations (or a successor 
     regulation) that is approved and certified in accordance with 
     part 86 of subchapter C of chapter I of title 40, Code of 
     Federal Regulations (or successor regulations).
       ``(B) Inclusion.--The term `small volume manufacturer' 
     includes a manufacturer of kits or equipment used to convert 
     vehicles.
       ``(b) Program.--
       ``(1) Establishment.--For the period of fiscal years 2009 
     through 2013, the Administrator shall establish and carry out 
     a demonstration program to assist States in facilitating the 
     development of alternative-fueled vehicles.
       ``(2) Application.--A State may participate in the program 
     by submitting to the Administrator an application at such 
     time, in such form, and containing such information as the 
     Administrator shall specify.
       ``(3) Benefits available to participating small volume 
     manufacturers.--Under the program, with respect to small 
     volume manufacturers located in States participating in the 
     program, the Administrator shall, by regulation--
       ``(A) waive all fees applicable to small volume 
     manufacturers for the certification and conversion of 
     alternative-fueled vehicles;
       ``(B) waive requirements for recertification of kits for 
     the conversion of vehicles in any case in which, as 
     determined by the Administrator--
       ``(i) the kit has been previously certified for the model 
     of vehicle to be converted; and
       ``(ii) neither the kit nor the design and specifications of 
     the model of vehicle to be converted have substantially 
     changed;
       ``(C) modify such regulatory requirements relating to OBD 
     systems as the Administrator determines to be appropriate to 
     provide flexibility to small volume manufacturers in 
     reprogramming OBD systems to be compatible with the use of 
     alternative fuel;
       ``(D) permit small volume manufacturers to include more 
     vehicles and engines in a single engine category to improve 
     the cost-efficiency of emission testing of converted 
     vehicles;
       ``(E) waive the liability of small volume manufacturers, in 
     the case of a bi-fueled vehicle capable of operating on 
     gasoline or compressed natural gas, for the compliance of the 
     gasoline system of the bi-fueled vehicle with applicable 
     emission requirements;
       ``(F) provide additional guidance to small volume 
     manufacturers with respect to the conversion of older models 
     of vehicles; and
       ``(G) revise and streamline certification requirements 
     applicable to small volume manufacturers.
       ``(4) State responsibility.--As a condition of 
     participating in the program, during the period of fiscal 
     years 2009 through 2013, a State shall--
       ``(A) develop regulations for (as compared to Federal 
     requirements in effect as of the date of enactment of this 
     section) an equally effective but less burdensome system of 
     certifying and verifying emissions of alternative-fueled 
     vehicles and equipment used for conversions; and
       ``(B) not later than December 31, 2012, submit the proposed 
     regulations of the State to the Administrator for review.
       ``(c) State Programs.--Upon receipt of proposed regulations 
     of a State under subsection (b)(4), the Administrator shall--
       ``(1) review the regulations; and
       ``(2) if the Administrator determines that the 
     implementation of the regulations would result in (as 
     compared to Federal requirements in effect as of the date of 
     enactment of this section) an equally effective but less 
     burdensome system of certifying and verifying emissions of 
     alternative-fueled vehicles and equipment used for 
     conversions, authorize the State to implement the regulations 
     with respect to small volume manufacturers in the State for 
     the period of fiscal years 2014 through 2018, subject to--
       ``(A) the submission of annual reports to the 
     Administrator; and
       ``(B) such periodic inspection and other oversight 
     requirements as the Administrator determines to be 
     appropriate.
       ``(d) Duration of Program.--The program and all authority 
     under the program (other than the authority of the 
     Administrator described in subsection (c)) shall terminate on 
     December 31, 2013, unless the Administrator--
       ``(1) in consultation with the States, elects to continue 
     the program; and
       ``(2) promulgates such regulations as are necessary to 
     continue the program.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 205. NATURAL GAS CONVERSION EMISSION CERTIFICATIONS.

       Part C of title II of the Clean Air Act (42 U.S.C. 7581 et 
     seq.) (as amended by section 204) is amended by adding at the 
     end the following:

     ``SEC. 252. NATURAL GAS CONVERSION EMISSION CERTIFICATIONS.

       ``(a) In General.--The Administrator shall waive 
     requirements for recertification of kits for the conversion 
     of vehicles into vehicles that are powered by natural gas or 
     liquefied petroleum gas in any case in which, as determined 
     by the Administrator--
       ``(1) the kit has been previously certified for the model 
     of vehicle to be converted; and
       ``(2) neither the kit nor the design and specifications of 
     the model of vehicle to be converted have substantially 
     changed.
       ``(b) Older Vehicles.--The Administrator shall waive 
     emission certification system requirements for a vehicle that 
     is over 10 years old or has over 120,000 miles that is 
     powered by natural gas.''.
                                 ______
                                 
  SA 5178. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

    TITLE II--MARGINAL WELL PRODUCTION PRESERVATION AND ENHANCEMENT

     SEC. 21. TAX TREATMENT FOR PROLONGED MARGINAL PRODUCTION.

       (a) Increase in Percentage Depletion for Oil and Natural 
     Gas Produced From Marginal Properties.--
       (1) In general.--Paragraph (6) of section 613A(c) of the 
     Internal Revenue Code of 1986 (relating to oil and natural 
     gas produced from marginal properties), as amended by this 
     Act, is amended to read as follows:
       ``(6) Oil and natural gas produced from marginal 
     properties.--
       ``(A) In general.--Except as provided in subsection (d)--
       ``(i) the allowance for depletion under section 611 shall 
     be computed in accordance with section 613 with respect to 
     the taxpayer's marginal production of domestic crude oil and 
     domestic natural gas, and
       ``(ii) 27.5 percent shall be deemed to be specified in 
     subsection (b) of section 613 for purposes of subsection (a) 
     of that section.
       ``(B) Coordination with other production of domestic oil 
     and natural gas.--For purposes of this subsection--
       ``(i) no allowance for depletion shall be allowed by reason 
     of paragraph (1) with respect to the taxpayer's marginal 
     production of domestic crude oil and domestic natural gas, 
     and
       ``(ii) such production shall not be taken into account--

       ``(I) in determining under paragraph (1) how much of the 
     taxpayer's depletable oil quantity or depletable natural gas 
     quantity has been used, or
       ``(II) for purposes of applying subparagraph (A), (B), or 
     (C) of paragraph (7).

       ``(C) Marginal production.--The term `marginal production' 
     means domestic crude oil or domestic natural gas which is 
     produced during any taxable year from a property which--
       ``(i) is a stripper well property for the calendar year in 
     which the taxable year begins, or
       ``(ii) is a property substantially all of the production of 
     which during such calendar year is heavy oil.
       ``(D) Stripper well property.--For purposes of this 
     paragraph, the term `stripper well property' means, with 
     respect to any calendar year, any property with respect to 
     which the amount determined by dividing--
       ``(i) the average daily production of domestic crude oil 
     and domestic natural gas from producing wells on such 
     property for such calendar year, by
       ``(ii) the number of such wells,
     is 15 barrel equivalents or less.
       ``(E) Heavy oil.--For purposes of this paragraph, the term 
     `heavy oil' means domestic crude oil produced from any 
     property if such crude oil had a weighted average gravity of 
     20 degrees API or less (corrected to 60 degrees Fahrenheit).
       ``(F) Nonapplication of taxable income limit with respect 
     to marginal production.--The second sentence of subsection 
     (a) of section 613 shall not apply to so much of the 
     allowance for depletion as is determined under subparagraph 
     (A).''.

[[Page S7397]]

       (2) Conforming amendments.--
       (A) Section 613A(c)(3) of the Internal Revenue Code of 1986 
     (defining depletable oil quantity) is amended to read as 
     follows:
       ``(3) Depletable oil quantity.--For purposes of paragraph 
     (1), the taxpayer's depletable oil quantity shall be 1,000 
     barrels.''.
       (B) Subparagraphs (A) and (B) of section 613A(c)(7) of such 
     Code are each amended by striking ``or (6), as the case may 
     be''.
       (3) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2008.
       (b) 1-Year Extension of Suspension of Taxable Income 
     Limit.--Section 613A(c)(6)(H) of the Internal Revenue Code of 
     1986 (relating to temporary suspension of taxable income 
     limit with respect to marginal production) is amended by 
     striking ``2008'' and inserting ``2009''.

     SEC. 22. OIL AND GAS WELLS AND PIPELINE FACILITIES TECHNICAL 
                   AMENDMENT.

       Section 112(n)(4)(A) of the Clean Air Act (42 U.S.C. 
     7412(n)(4)(A)) is amended by striking ``this section'' and 
     inserting ``this Act''.

     SEC. 23. NATIONAL RESPONSE SYSTEM.

       Section 311(j) of the Federal Water Pollution Control Act 
     (33 U.S.C. 1321(j)) is amended by striking paragraph (1) and 
     inserting the following:
       ``(1) System.--
       ``(A) Definition of.--In this paragraph, the term 
     `wastewater treatment facility' includes produced water from 
     an oil production facility.
       ``(B) Regulations.--Consistent with the National 
     Contingency Plan required under subsection (d), as soon as 
     practicable after the effective date of this section, and 
     from time to time thereafter, the President shall promulgate 
     regulations consistent with maritime safety and marine and 
     navigation laws--
       ``(i) establishing methods and procedures for removal of 
     discharged oil and hazardous substances;
       ``(ii) establishing criteria for the development and 
     implementation of local and regional oil and hazardous 
     substance removal contingency plans;
       ``(iii) establishing procedures, methods, and equipment and 
     other requirements for equipment to prevent discharges of oil 
     and hazardous substances from vessels and from onshore 
     facilities and offshore facilities (other than wastewater 
     treatment facilities), and to contain those discharges; and
       ``(iv) governing the inspection of vessels carrying cargoes 
     of oil and hazardous substances and the inspection of those 
     cargoes in order to reduce the likelihood of discharges of 
     oil from vessels in violation of this section.
       ``(C) Small facilities.--In carrying out clause (iii) of 
     subparagraph (B), not later than 1 year after the date of 
     enactment of that clause, the Administrator shall establish 
     procedures, methods, and equipment and other requirements 
     for, and consider the cost-effectiveness of those 
     requirements on, small facilities (including agricultural and 
     oil production facilities) to prevent discharges from 
     facilities and offshore facilities, and to contain those 
     discharges, by developing regulations based on storage volume 
     and capacity that, with respect to those small facilities--
       ``(i) apply to any facility the total oil storage capacity 
     of which is at least 1,320 gallons but less than 50,000 
     gallons, and at which no single tank exceeds a nominal 
     capacity of 21,000 gallons; and
       ``(ii) establish minimal requirements and plans by 
     eliminating engineer certification, flow lines, loading and 
     unloading areas, integrity testing, and other requirements 
     that, as determined by the Administrator, do not take into 
     consideration and meet cost-effectiveness standards.''.

     SEC. 24. RECOVERY PERIOD FOR DEPRECIATION OF PROPERTY USED TO 
                   INJECT QUALIFIED TERTIARY INJECTANTS.

       (a) In General.--Section 168(e)((3)(A) of the Internal 
     Revenue Code of 1986 (defining 3-year property) is amended by 
     striking ``and'' at the end of clause (ii), by striking the 
     period at the end of clause (iii) and inserting ``, and'', 
     and by adding at the end the following new clause:
       ``(iv) any qualified tertiary injectant property.''.
       (b) Qualified Tertiary Injectant Property.--Section 168(e) 
     of the Internal Revenue Code of 1986 (relating to 
     classification of property) is amended by adding at the end 
     the following new paragraph:
       ``(8) Qualified tertiary injectant property.--The term 
     `qualified tertiary injectant property' means--
       ``(A) any property--
       ``(i) the principal use of which is to inject any tertiary 
     injectant as a part of a tertiary recovery method (as defined 
     in section 193(b)(3)), or
       ``(ii) which is a pipeline used to carry any tertiary 
     injectant in connection with such tertiary recovery method, 
     and
       ``(B) which has a class life of more than 4 years.''.
       (c) Alternative System.--The table contained in section 
     168(g)(3)(B) of the Internal Revenue Code of 1986 is amended 
     by inserting after the item relating to subparagraph (A)(iii) 
     the following new item:
``(A)(iv)..........................................................7''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.
                                 ______
                                 
  SA 5179. Mr. GRAHAM (for himself, Mr. Kyl, Mr. McCain, and Mr. 
Inhofe) submitted an amendment intended to be proposed by him to the 
bill S. 3268, to amend the Commodity Exchange Act, to prevent excessive 
price speculation with respect to energy commodities, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                   TITLE _--NUCLEAR POWER GENERATION

     Subtitle A--Credit for Qualifying Nuclear Power Manufacturing

     SEC. __01. CREDIT FOR QUALIFYING NUCLEAR POWER MANUFACTURING.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986, as amended by 
     this Act, is amended by inserting after section 48B the 
     following new section:

     ``SEC. 48C. QUALIFYING NUCLEAR POWER MANUFACTURING CREDIT.

       ``(a) Allowance of Credit.--For purposes of section 46, the 
     qualifying nuclear power manufacturing credit for any taxable 
     year is an amount equal to 20 percent of the qualified 
     investment for such taxable year.
       ``(b) Qualified Investment.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment for any taxable year is the basis of 
     property placed in service by the taxpayer during such 
     taxable year which is certified under subsection (c) and--
       ``(A) which is either part of a qualifying nuclear power 
     manufacturing project or is qualifying nuclear power 
     manufacturing equipment,
       ``(B)(i) the construction, reconstruction, or erection of 
     which is completed by the taxpayer, or
       ``(ii) which is acquired by the taxpayer if the original 
     use of such property commences with the taxpayer,
       ``(C) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable, and
       ``(D) which is placed in service on or before December 31, 
     2015.
       ``(2) Special rule for certain subsidized property.--Rules 
     similar to the rules of section 48(a)(4) shall apply for 
     purposes of this section.
       ``(3) Certain qualified progress expenditures rules made 
     applicable.--Rules similar to the rules of subsections (c)(4) 
     and (d) of section 46 (as in effect on the day before the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of this section.
       ``(c) Qualifying Nuclear Power Manufacturing Project and 
     Qualifying Nuclear Power Manufacturing Equipment 
     Certification.--Not later than 180 days after the date of the 
     enactment of this section, the Secretary, in consultation 
     with the Secretary of Energy, shall establish a program to 
     consider and award certifications for property eligible for 
     credits under this section as part of either a qualifying 
     nuclear power manufacturing project or as qualifying nuclear 
     power manufacturing equipment. The total amounts of credit 
     that may be allocated under the program shall not exceed 
     $100,000,000.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualifying nuclear power manufacturing project.--The 
     term `qualifying nuclear power manufacturing project' means 
     any project which is designed primarily to enable the 
     taxpayer to produce or test equipment necessary for the 
     construction or operation of a nuclear power plant.
       ``(2) Qualifying nuclear power manufacturing equipment.--
     The term `qualifying nuclear power manufacturing equipment' 
     means machine tools and other similar equipment, including 
     computers and other peripheral equipment, acquired or 
     constructed primarily to enable the taxpayer to produce or 
     test equipment necessary for the construction or operation of 
     a nuclear power plant.
       ``(3) Project.--The term `project' includes any building 
     constructed to house qualifying nuclear power manufacturing 
     equipment.''.
       (b) Conforming Amendments.--
       (1) Additional investment credit.--Section 46 of the 
     Internal Revenue Code of 1986, as amended by this Act, is 
     amended--
       (A) by striking ``and'' at the end of paragraph (4);
       (B) by striking the period at the end of paragraph (5) and 
     inserting ``, and''; and
       (C) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) the qualifying nuclear power manufacturing credit.''.
       (2) Application of section 49.--Subparagraph (C) of section 
     49(a)(1) of such Code, as amended by this Act, is amended--
       (A) by striking ``and'' at the end of clause (iv);
       (B) by striking the period at the end of clause (v) and 
     inserting ``, and''; and
       (C) by inserting after clause (v) the following new clause:
       ``(vi) the basis of any property which is part of a 
     qualifying nuclear power manufacturing project or qualifying 
     nuclear power manufacturing equipment under section 48C.''.
       (c) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 of such Code, as 
     amended by this Act, is amended by inserting after the item 
     relating to section 48B the following new item:


[[Page S7398]]


``Sec. 48C. Qualifying nuclear power manufacturing credit.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to property--
       (1) the construction, reconstruction, or erection of which 
     begins after the date of enactment of this Act; or
       (2) which is acquired by the taxpayer on or after such date 
     and not pursuant to a binding contract which was in effect on 
     the day prior to such date.

                  Subtitle B--Accelerated Depreciation

     SEC. _11. 5-YEAR ACCELERATED DEPRECIATION PERIOD FOR NEW 
                   NUCLEAR POWER PLANTS.

       (a) In General.--Subparagraph (B) of section 168(e)(3) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``and'' at the end of clause (v), by striking the period at 
     the end of clause (vi)(III) and inserting ``, and'', and by 
     inserting after clause (vi) the following new clause:
       ``(vii) any advanced nuclear power facility (as defined in 
     section 45J(d)(1), determined without regard to subparagraph 
     (B) thereof) the original use of which commences with the 
     taxpayer after December 31, 2008.''.
       (b) Conforming Amendment.--Section 168(e)(3)(E)(vii) of the 
     Internal Revenue Code of 1986 is amended by inserting ``and 
     not described in subparagraph (B)(vii) of this paragraph'' 
     after ``section 1245(a)(3)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2008.

    Subtitle C--Next Generation Nuclear Plant Project Modifications

     SEC. _21. NEXT GENERATION NUCLEAR PLANT PROJECT 
                   MODIFICATIONS.

       (a) Project Establishment.--Section 641 of the Energy 
     Policy Act of 2005 (42 U.S.C. 16021) is amended--
       (1) in subsection (a)--
       (A) by striking the subsection designation and heading and 
     all that follows through ``The Secretary'' and inserting the 
     following:
       ``(a) Establishment and Objective.--
       ``(1) Establishment.--The Secretary''; and
       (B) by adding at the end the following:
       ``(2) Objective.--
       ``(A) Definition of high-temperature, gas-cooled nuclear 
     energy technology.--In this paragraph, the term `high-
     temperature, gas-cooled nuclear energy technology' means any 
     nongreenhouse gas-emitting nuclear energy technology that 
     provides--
       ``(i) an alternative to the burning of fossil fuels for 
     industrial applications; and
       ``(ii) process heat to generate, for example, electricity, 
     steam, hydrogen, and oxygen for activities such as--

       ``(I) petroleum refining;
       ``(II) petrochemical processes;
       ``(III) converting coal to synfuels and other hydrocarbon 
     feedstocks; and
       ``(IV) desalination.

       ``(B) Description of objective.--The objective of the 
     Project shall be to carry out demonstration projects for the 
     development, licensing, and operation of high-temperature, 
     gas-cooled nuclear energy technologies to support 
     commercialization of those technologies.
       ``(C) Requirements.--The functional, operational, and 
     performance requirements for high-temperature, gas-cooled 
     nuclear energy technologies shall be determined by the needs 
     of marketplace industrial end-users (such as owners and 
     operators of nuclear energy facilities, petrochemical 
     entities, and petroleum entities), as projected for the 40-
     year period beginning on the date of enactment of this 
     paragraph.''; and
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``licensing,'' after ``design,'';
       (B) in paragraph (1), by striking ``942(d)'' and inserting 
     ``952(d)''; and
       (C) by striking paragraph (2) and inserting the following:
       ``(2) demonstrates the capability of the nuclear energy 
     system to provide high-temperature process heat to produce--
       ``(A) electricity, steam, and other heat transport fluids; 
     and
       ``(B) hydrogen and oxygen, separately or in combination.''.
       (b) Project Management.--Section 642 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16022) is amended to read as follows:

     ``SEC. 642. PROJECT MANAGEMENT.

       ``(a) Departmental Management.--
       ``(1) In general.--The Project shall be managed in the 
     Department by the Office of Nuclear Energy.
       ``(2) Generation iv nuclear energy systems initiative.--
       ``(A) In general.--Subject to subparagraph (B), the Project 
     may be carried out in coordination with the Generation IV 
     Nuclear Energy Systems Initiative.
       ``(B) Requirement.--Regardless of whether the Project is 
     carried out in coordination with the Generation IV Nuclear 
     Energy Systems Initiative under subparagraph (A), the 
     Secretary shall establish a separate budget line-item for the 
     Project.
       ``(3) Interaction with industry.--Any activity to support 
     the Project by an individual or entity in the private 
     industry shall be carried out pursuant to a competitive 
     cooperative agreement or other assistance agreement (such as 
     a technology investment agreement) between the Department and 
     the industry group established under subsection (c).
       ``(b) Laboratory Management.--
       ``(1) In general.--The Idaho National Laboratory shall be 
     the lead National Laboratory for the Project.
       ``(2) Collaboration.--The Idaho National Laboratory shall 
     collaborate regarding research and development activities 
     with other National Laboratories, institutions of higher 
     education, research institutes, representatives of industry, 
     international organizations, and Federal agencies to support 
     the Project.
       ``(c) Industry Group.--
       ``(1) Establishment.--The Secretary shall establish a group 
     of appropriate industrial partners in the private sector to 
     carry out cost-shared activities with the Department to 
     support the Project.
       ``(2) Cooperative agreement.--
       ``(A) In general.--The Secretary shall offer to enter into 
     a cooperative agreement or other assistance agreement with 
     the industry group established under paragraph (1) to manage 
     and support the development, licensing, construction, and 
     initial operation of the Project.
       ``(B) Requirement.--The agreement under subparagraph (A) 
     shall contain a provision under which the industry group may 
     enter into contracts with entities in the public sector for 
     the provision of services and products to that sector that 
     reflect typical commercial practices, including (without 
     limitation) the conditions applicable to sales under section 
     2563 of title 10, United States Code.
       ``(C) Project management.--
       ``(i) In general.--The industry group shall use commercial 
     practices and project management processes and tools in 
     carrying out activities to support the Project.
       ``(ii) Interface requirements.--The requirements for 
     interface between the project management requirements of the 
     Department (including the requirements contained in the 
     document of the Department numbered DOE O 413.3A and entitled 
     `Program and Project Management for the Acquisition of 
     Capital Assets') and the commercial practices and project 
     management processes and tools described in clause (i) shall 
     be defined in the agreement under subparagraph (A).
       ``(3) Cost sharing.--Activities of industrial partners 
     funded by the Project shall be cost-shared in accordance with 
     section 988.
       ``(4) Preference.--Preference in determining the final 
     structure of industrial partnerships under this part shall be 
     given to a structure (including designating as a lead 
     industrial partner an entity incorporated in the United 
     States) that retains United States technological leadership 
     in the Project while maximizing cost sharing opportunities 
     and minimizing Federal funding responsibilities.
       ``(d) Reactor Test Capabilities.--The Project shall use, if 
     appropriate, reactor test capabilities at the Idaho National 
     Laboratory.
       ``(e) Other Laboratory Capabilities.--The Project may use, 
     if appropriate, facilities at other National Laboratories.''.
       (c) Project Organization.--Section 643 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16023) is amended--
       (1) in subsection (a)(2), by inserting ``transport and'' 
     before ``conversion'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking subparagraph (C); and
       (ii) by redesignating subparagraphs (A), (B), and (D) as 
     clauses (i), (ii), and (iii), respectively, and indenting the 
     clauses appropriately;
       (B) in paragraph (2)--
       (i) in subparagraph (B), by striking ``, through a 
     competitive process,'';
       (ii) in subparagraph (C), by striking ``reactor'' and 
     inserting ``energy system'';
       (iii) in subparagraph (D), by striking ``hydrogen or 
     electricity'' and inserting ``energy transportation, 
     conversion, and''; and
       (iv) by redesignating subparagraphs (A) through (D) as 
     clauses (i) through (iv), respectively, and indenting the 
     clauses appropriately;
       (C) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting the 
     subparagraphs appropriately;
       (D) by striking ``The Project shall be'' and inserting the 
     following:
       ``(1) In general.--The Project shall be''; and
       (E) by adding at the end the following:
       ``(2) Overlapping phases.--The phases described in 
     paragraph (1) may overlap for the Project or any portion of 
     the Project, as necessary.''; and
       (3) in subsection (c)--
       (A) in paragraph (1)(A), by striking ``powerplant'' and 
     inserting ``power plant'';
       (B) in paragraph (2), by adding at the end the following:
       ``(E) Industry group.--The industry group established under 
     section 642(c) may enter into any necessary contracts for 
     services, support, or equipment in carrying out an agreement 
     with the Department.''; and
       (C) in paragraph (3)--
       (i) in the paragraph heading, by striking ``research'';
       (ii) in the matter preceding subparagraph (A), by striking 
     ``Research'';
       (iii) by striking ``NERAC'' each place it appears and 
     inserting ``NEAC'';
       (iv) in subparagraph (A)--

       (I) by striking clause (i) and inserting the following:

       ``(i) review program plans for the Project prepared by the 
     Office of Nuclear Energy and all progress under the Project 
     on an ongoing basis;'';

       (II) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (III) by adding at the end the following:

[[Page S7399]]

       ``(iii) ensure that industrial support for the first 
     project phase under subsection (b)(1)(A) is continued before 
     initiating the second project phase under subsection 
     (b)(1)(B).'';
       (v) in subparagraph (B), by striking ``or appoint'' and 
     inserting ``by appointing''; and
       (vi) in subparagraph (D)--

       (I) by striking ``On a determination'' and inserting the 
     following:

       ``(i) In general.--On a determination'';

       (II) in clause (i) (as designated by subclause (I))--

       (aa) by striking ``subsection (b)(1)'' and inserting 
     ``subsection (b)(1)(A)''; and
       (bb) by striking ``subsection (b)(2)'' and inserting 
     ``subsection (b)(1)(B)''; and

       (III) by adding at the end the following:

       ``(ii) Scope.--The scope of the review conducted under 
     clause (i) shall be in accordance with an applicable 
     cooperative agreement or other assistance agreement (such as 
     a technology investment agreement) between the Secretary and 
     the industry group established under section 642(c).''.
       (d) Nuclear Regulatory Commission.--Section 644 of the 
     Energy Policy Act of 2005 (42 U.S.C. 16024) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively, and indenting 
     the subparagraphs appropriately;
       (B) by striking ``Not later than'' and inserting the 
     following:
       ``(1) In general.--Not later than''; and
       (C) by adding at the end the following:
       ``(2) Requirement.--To the maximum extent practicable, in 
     carrying out subparagraphs (B) and (C) of paragraph (1), the 
     Nuclear Regulatory Commission shall independently review and, 
     as appropriate, use the results of analyses conducted for or 
     by the license applicant.''; and
       (2) by striking subsection (c) and inserting the following:
       ``(c) Ongoing Interaction.--The Nuclear Regulatory 
     Commission shall establish a separate program office for 
     advanced reactors--
       ``(1) to develop and implement regulatory requirements 
     consistent with the safety bases of the type of nuclear 
     reactor developed by the Project, with the specific objective 
     that the requirements shall be applied to follow-on 
     commercialized high-temperature, gas-cooled nuclear reactors;
       ``(2) to avoid conflicts in the availability of resources 
     with licensing activities for light water reactors;
       ``(3) to focus and develop resources of the Nuclear 
     Regulatory Commission for the review of advanced reactors;
       ``(4) to support the effective and timely review of 
     preapplication activities and review of applications to 
     support applicant needs; and
       ``(5) to provide for the timely development of regulatory 
     requirements, including through the preapplication process, 
     and review of applications for advanced technologies, such as 
     high-temperature, gas-cooled nuclear technology systems.''.
       (e) Project Timelines and Authorization of 
     Appropriations.--Section 645 of the Energy Policy Act of 2005 
     (42 U.S.C. 16025) is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) Summary of Agreement.--Not later than December 31, 
     2009, the Secretary shall submit to Congress a report that 
     contains a summary of each cooperative agreement or other 
     assistance agreement (such as a technology investment 
     agreement) entered into between the Secretary and the 
     industry group under section 642(a)(3), including a 
     description of the means by which the agreement will provide 
     for successful completion of the development, design, 
     licensing, construction, and initial operation and 
     demonstration period of the prototype facility of the 
     Project.
       ``(b) Overall Project Plan.--
       ``(1) In general.--Not later than December 31, 2009, the 
     Secretary shall submit to Congress an overall plan for the 
     Project, to be prepared jointly by the Secretary and the 
     industry group established under section 642(c), pursuant to 
     a cooperative agreement or other assistance agreement (such 
     as a technology investment agreement).
       ``(2) Inclusions.--The plan under paragraph (1) shall 
     include--
       ``(A) a summary of the schedule for the design, licensing, 
     construction, and initial operation and demonstration period 
     for the nuclear energy system prototype facility and hydrogen 
     production prototype facility of the Project;
       ``(B) the process by which a specific design for the 
     prototype nuclear energy system facility and hydrogen 
     production facility will be selected;
       ``(C) the specific licensing strategy for the Project, 
     including--
       ``(i) resource requirements of the Nuclear Regulatory 
     Commission; and
       ``(ii) the schedule for the submission of a preapplication, 
     the submission of an application, and application review for 
     the prototype nuclear energy system facility of the Project;
       ``(D) a summary of the schedule for each major event 
     relating to the Project; and
       ``(E) a time-based cost and cost-sharing profile to support 
     planning for appropriations.''; and
       (2) in subsection (d), in the matter preceding paragraph 
     (1), by striking ``research and construction activities'' and 
     inserting ``research and development, design, licensing, 
     construction, and initial operation and demonstration 
     activities''.
                                 ______
                                 
  SA 5180. Mr. LIEBERMAN (for himself and Ms. Collins) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       In section 4a(h)(4)(C)(i) of the Commodity Exchange Act (as 
     added by section 6), strike subclause (II) and insert the 
     following:

       ``(II) Application.--The Commission shall apply the limits 
     imposed under subclause (I) to--

       ``(aa) any person who executes accounts, agreements, or 
     transactions involving an energy commodity for the own 
     account of the person and to any person for whom an agent in 
     fact or substance executes accounts, agreements, or 
     transactions involving an energy commodity, on a registered 
     entity or in covered over-the-counter trading; and
       ``(bb) any citizen of the United States who executes 
     accounts, agreements, or transactions involving an energy 
     commodity for the own account of the citizen and to any 
     citizen of the United States for whom an agent in fact or 
     substance executes accounts, agreements, or transactions 
     involving an energy commodity, on a foreign board of trade or 
     trading facility based in a country other than the United 
     States.
                                 ______
                                 
  SA 5181. Mr. THUNE submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

     SEC. 16. 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 Stop Excessive Energy 
     Speculation 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.
       ``(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. 17. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING 
                   AREAS AND FEDERAL PRODUCTION AREAS.

       (a) In General.--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) Federal production area.--The term `Federal 
     production area' means any moratorium area within the 
     offshore administrative boundaries beyond the submerged land 
     of a State that is located more than 60 miles from the 
     coastline of the State and more than 125 miles off the Gulf 
     Coast of Florida.
       ``(3) Moratorium area.--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).
       ``(4) 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 within 60 miles of the coastline of the State and 
     within 125 miles of the Gulf Coast of Florida.
       ``(5) 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).
       ``(6) Offshore administrative boundaries.--The term 
     `offshore administrative boundaries' means the administrative 
     boundaries established by the Secretary beyond

[[Page S7400]]

     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).
       ``(7) Qualified federal protection area revenues.--The term 
     `qualified Federal protection area revenues' means qualified 
     outer Continental Shelf revenues from leases for Federal 
     protection areas.
       ``(8) Qualified new producing area revenues.--The term 
     `qualified new producing area revenues' means qualified Outer 
     Continental Shelf revenues from leases for new producing 
     areas.
       ``(9) 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.
       ``(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 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.
       ``(3) Disposition of qualified new producing area 
     revenues.--
       ``(A) In general.--Notwithstanding section 9 and subject to 
     the other provisions of this paragraph, for each applicable 
     fiscal year, the Secretary of the Treasury shall deposit--
       ``(i) 50 percent of qualified new producing area revenues 
     in the Energy Independence Fund established under section 19 
     of the Stop Excessive Energy Speculation Act of 2008; and
       ``(ii) 50 percent of qualified new producing area revenues 
     in a special account in the Treasury from which the Secretary 
     shall disburse--

       ``(I) 75 percent to new producing States in accordance with 
     subparagraph (B); 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).

       ``(B) Allocation to new producing states and coastal 
     political subdivisions.--
       ``(i) Allocation to new producing states.--Effective for 
     fiscal year 2008 and each fiscal year thereafter, the amount 
     made available under subparagraph (A)(ii)(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 new producing area 
     revenues generated in the new producing area offshore each 
     State.
       ``(ii) 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 clause (i), 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 
     subparagraphs (B) and (C) of section 31(b)(4).

       ``(C) Minimum allocation.--The amount allocated to a new 
     producing State for each fiscal year under subparagraph (B) 
     shall be at least 5 percent of the amounts available under 
     for the fiscal year under subparagraph (A)(ii)(I).
       ``(D) Timing.--The amounts required to be deposited under 
     clause (ii) of subparagraph (B) for the applicable fiscal 
     year shall be made available in accordance with that clause 
     during the fiscal year immediately following the applicable 
     fiscal year.
       ``(E) Authorized uses.--
       ``(i) In general.--Subject to clause (ii), each new 
     producing State and coastal political subdivision shall use 
     all amounts received under subparagraph (B) 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) Mitigation of the impact of outer Continental Shelf 
     activities through the funding of onshore infrastructure 
     projects.
       ``(V) Planning assistance and the administrative costs of 
     complying with this section.

       ``(ii) Limitation.--Not more than 3 percent of amounts 
     received by a new producing State or coastal political 
     subdivision under subparagraph (B) may be used for the 
     purposes described in clause (i)(V).
       ``(F) Administration.--Amounts made available under 
     subparagraph (A)(ii) shall--
       ``(i) be made available, without further appropriation, in 
     accordance with this paragraph;
       ``(ii) remain available until expended; and
       ``(iii) 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.

       ``(4) Disposition of qualified outer continental shelf 
     revenues from other areas.--Notwithstanding section 9, for 
     each applicable fiscal year, the terms and conditions of 
     paragraph (3) shall apply to the disposition of qualified 
     outer Continental Shelf revenues that--
       ``(A) 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
       ``(B) are not assumed in the budget of the United States 
     Government submitted by the President under section 1105 of 
     title 31, United States Code.
       ``(c) Leasing in Federal Production Areas.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall make the Federal 
     production areas available for oil and gas leasing.
       ``(2) Priority.--The Secretary may prioritize the lease 
     sales under paragraph (1) based on available data of oil and 
     gas reserves in the Federal production areas.
       ``(3) Disposition of qualified federal producing area 
     revenues.--For each applicable fiscal year, the Secretary of 
     the Treasury shall deposit--
       ``(A) 85 percent of qualified Federal producing area 
     revenues in the Energy Independence Fund established by 
     section 19; and
       ``(B) 15 percent of qualified Federal producing area 
     revenues in a special account in the Treasury from which the 
     Secretary shall disburse 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)''.
       (b) Conforming Amendment.--Sections 104 through 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2118) 
     are repealed.

     SEC. 18. OUTER CONTINENTAL SHELF INVENTORY.

       (a) In General .--Not later than 3 years after the date of 
     enactment of this Act, the Director of the Minerals 
     Management Service shall conduct a comprehensive inventory of 
     oil and gas reserves of the outer Continental Shelf.
       (b) Annual Report.--Beginning on the date that is 1 year 
     after the date of enactment of this Act and annually 
     thereafter until the inventory required under subsection (a) 
     is completed, the Director of the Minerals Management Service 
     shall submit to the appropriate committees of Congress a 
     report describing the progress of the inventory.

     SEC. 19. ENERGY INDEPENDENCE TRUST FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``Energy 
     Independence Trust Fund'' (referred to in this section as the 
     ``Fund''), consisting of--
       (1) such amounts as are deposited in the Fund under 
     subsections (b)(3)(A)(i) and (c)(3)(A) of the Outer 
     Continental Shelf Lands Act (as added by section 17(a)); and
       (2) any interest earned from investment of amounts in the 
     Fund.
       (b)  Authorized Uses.--Subject to appropriations, the 
     amounts in the Fund shall be available to offset the cost of 
     alternative fuel and conservation programs carried out by the 
     Department of Agriculture, Department of Energy, and 
     Department of Transportation that--
       (1) enhance and accelerate the use of domestic renewable 
     energy resources and alternative fuels, with an emphasis on 
     cellulosic ethanol;
       (2) increase the development and deployment of biofuels 
     infrastructure, including--
       (A) alternative fuel refueling pumps, which are capable of 
     dispensing blends of gasoline from 10 percent ethanol to 85 
     percent ethanol; and
       (B) a biofuel dedicated pipeline;
       (3) promote the utilization of energy-efficient products 
     and practices and encourage and reward sound energy 
     conservation practices;
       (4) expand research, development, and deployment of 
     renewable energy and efficiency technologies;
       (5) expand research development, and deployment of hydrogen 
     fuel cell technology; or

[[Page S7401]]

       (6) expand research, development, and deployment of 
     electric plug-in vehicle and advanced battery technology.
                                 ______
                                 
  SA 5182. Mr. BURR submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       In section 1(a) of the Commodity Exchange Act (as amended 
     by section 2(a)), strike paragraph (13) and insert the 
     following:
       ``(13) Energy commodity.--
       ``(A) In general.--The term `energy commodity' means each 
     energy commodity traded on--
       ``(i) the Chicago Mercantile Exchange;
       ``(ii) the Chicago Board of Trade;
       ``(iii) the New York Mercantile Exchange; and
       ``(iv) any other United States Exchange.
       ``(B) Inclusions.--The term `energy commodity' includes--
       ``(i) a petroleum product, including--

       ``(I) light sweet crude oil;
       ``(II) heating oil; and
       ``(III) Reformulated Blendstock for Oxygenate Blending 
     (RBOB) gasoline;

       ``(ii) natural gas;
       ``(iii) ethanol;
       ``(iv) electricity;
       ``(v) uranium;
       ``(vi) coal; and
       ``(vii) carbon.''.
                                 ______
                                 
  SA 5183. Mr. SMITH submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 43, after line 17, add the following:

     SEC. 17. EMERGENCY TRANSFER FROM AIRPORT AND AIRWAY TRUST 
                   FUND.

       (a) In General.--The Department of Transportation 
     Appropriations Act, 2008 (title I of division K of Public Law 
     110-161) is amended, under the heading ``payments to air 
     carriers'', by striking ``$60,000,000'' and inserting 
     ``$120,000,000''.
       (b) Emergency Requirement.--The additional amount made 
     available by the amendment under subsection (a) is designated 
     as an emergency requirement pursuant to section 204 of S. 
     Con. Res. 21 (110th Congress).
                                 ______
                                 
  SA 5184. Mr. REED (for himself and Ms. Snowe) submitted an amendment 
intended to be proposed by him to the bill S. 3268, to amend the 
Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

              TITLE _--NATIONAL OILHEAT RESEARCH ALLIANCE

     SEC. _01. NATIONAL OILHEAT RESEARCH ALLIANCE ACT OF 2000.

       (a) Findings.--Section 702 of the National Oilheat Research 
     Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106-
     469) is amended by striking ``oilheat'' each place it appears 
     and inserting ``oilheat fuel''.
       (b) Definitions.--Section 703 of the National Oilheat 
     Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public 
     Law 106-469) is amended--
       (1) by striking ``oilheat'' each place it appears (other 
     than paragraph (10)) and inserting ``oilheat fuel'';
       (2) by striking paragraph (7) and inserting the following:
       ``(7) Oilheat fuel.--The term `oilheat fuel' means 
     distillate liquid that is used as a fuel for nonindustrial 
     commercial or residential space or hot water heating.'';
       (3) in paragraph (8), by striking ``Oilheat'' and inserting 
     ``Oilheat fuel'';
       (4) in paragraph (14)--
       (A) by striking ``No. 1 distillate or No. 2 dyed 
     distillate'' each place it appears and inserting ``distillate 
     liquid''; and
       (B) in subparagraph (B), by striking ``sells the 
     distillate'' and inserting ``sells the distillate liquid'';
       (5) by redesignating paragraphs (3) through (13) and (14) 
     as paragraphs (4) through (14) and (16), respectively, and 
     moving paragraph (16) (as so redesignated) to appear after 
     paragraph (15); and
       (6) by inserting after paragraph (2) the following:
       ``(3) Distillate liquid.--The term `distillate liquid' 
     means--
       ``(A) No. 1 distillate;
       ``(B) No. 2 dyed distillate; or
       ``(C) a liquid blended with No. 1 distillate or No. 2 dyed 
     distillate.''.
       (c) Referenda.--Section 704 of the National Oilheat 
     Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public 
     Law 106-469) is amended--
       (1) by striking ``oilheat'' each place it appears and 
     inserting ``oilheat fuel'';
       (2) by striking ``No. 1 distillate and No. 2 dyed 
     distillate'' each place it appears in subsections (a) and (c) 
     and inserting ``distillate liquid'';
       (3) in subsection (a)--
       (A) in paragraph (5)(B), by striking ``Except as provided 
     in subsection (b), the'' and inserting ``The''; and
       (B) in paragraph (6), by striking ``, No. 1 distillate, or 
     No. 2 dyed distillate'' and inserting ``or distillate 
     liquid''; and
       (4) in subsection (b), by striking ``under'' and inserting 
     ``consistent with''.
       (d) Membership.--Section 705 of the National Oilheat 
     Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public 
     Law 106-469) is amended--
       (1) by striking ``oilheat'' each place it appears and 
     inserting ``oilheat fuel'';
       (2) in subsection (b)(2), by striking ``No. 1 distillate 
     and No. 2 dyed distillate'' and inserting ``distillate 
     liquid''; and
       (3) by striking subsection (c) and inserting the following:
       ``(c) Number of Members.--
       ``(1) In general.--The membership of the Alliance shall be 
     as follows:
       ``(A) 1 member representing each State participating in the 
     Alliance.
       ``(B) 5 representatives of retail marketers, of whom 1 
     shall be selected by each of the qualified State associations 
     of the 5 States with the highest volume of annual oilheat 
     fuel sales.
       ``(C) 5 additional representatives of retail marketers.
       ``(D) 21 representatives of wholesale distributors.
       ``(E) 6 public members, who shall be representatives of 
     significant users of oilheat fuel, the oilheat fuel research 
     community, State energy officials, or other groups with 
     expertise in oilheat fuel.
       ``(2) Full-time owners or employees.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     other than the public members of the Alliance, Alliance 
     members shall be full-time managerial owners or employees of 
     members of the oilheat fuel industry.
       ``(B) Employees.--Members described in subparagraphs (B), 
     (C), and (D) of paragraph (1) may be employees of the 
     qualified industry organization or an industry trade 
     association.''.
       (e) Functions.--Section 706 of the National Oilheat 
     Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public 
     Law 106-469) is amended by striking ``oilheat'' each place it 
     appears and inserting ``oilheat fuel''.
       (f) Assessments.--Section 707 of the National Oilheat 
     Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public 
     Law 106-469) is amended--
       (1) by striking ``oilheat'' each place it appears and 
     inserting ``oilheat fuel'';
       (2) by striking subsection (a) and inserting the following:
       ``(a) Rate.--
       ``(1) In general.--The assessment rate for calendar years 
     2008 and 2009 shall be equal to \2/10\ of 1 cent per gallon 
     of distillate liquid.
       ``(2) Subsequent assessments.--Subject to paragraphs (3) 
     and (4), beginning with calendar year 2010, the annual 
     assessment rate shall be sufficient to cover the costs of the 
     plans and programs developed by the Alliance.
       ``(3) Maximum rate.--The annual assessment rate shall not 
     exceed \1/2\ of 1 cent per gallon of distillate liquid.
       ``(4) Limitations on increase.--
       ``(A) In general.--The annual assessment shall not be 
     increased by more than \1/2\ of 1 cent per gallon in any 1 
     year.
       ``(B) Approval.--No increase in the assessment may occur 
     unless the increase is approved by \2/3\ of the members 
     voting at a regularly scheduled meeting of the Alliance.
       ``(C) Notice.--The Alliance shall provide notice of a 
     change in assessment at least 90 days before the date on 
     which the change is to take effect.'';
       (3) in subsection (b)--
       (A) by striking ``No. 1 distillate or No. 2 dyed 
     distillate'' each place it appears and inserting ``distillate 
     liquid''; and
       (B) in paragraphs (2)(B) and (5)(B), by striking ``fuel'' 
     each place it appears and inserting ``distillate liquid''; 
     and
       (4) in subsection (c), by striking ``No. 1 distillate and 
     No. 2 dyed distillate'' and inserting ``Distillate liquid''.
       (g) Market Survey and Consumer Protection.--Section 708 of 
     the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 
     6201 note; Public Law 106-469) is amended by striking 
     ``oilheat'' each place it appears and inserting ``oilheat 
     fuel''.
       (h) Violations.--Section 712(a) of the National Oilheat 
     Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public 
     Law 106-469) is amended--
       (1) in paragraph (2), by striking ``oilheat'' and inserting 
     ``oilheat fuel''; and
       (2) by striking paragraph (3) and inserting the following:
       ``(3) a direct reference to a competing product.''.
       (i) Repeal of Sunset.--Section 713 of the National Oilheat 
     Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public 
     Law 106-469) is repealed.
                                 ______
                                 
  SA 5185. Mr. CARDIN submitted an amendment intended to be proposed by 
him to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

                       TITLE __--ENERGY SECURITY

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Energy Security Act of 
     2008''.

[[Page S7402]]

     SEC. _02. PURPOSE AND GOALS.

       The purpose of this title is to provide support for 
     projects and activities to facilitate the energy security of 
     the United States so as to ensure that all but 10 percent of 
     the energy needs of the United States are supplied by 
     domestic energy sources by calendar year 2017.

     SEC. _03. NATIONAL COMMISSION ON ENERGY SECURITY.

       (a) Establishment.--
       (1) In general.--There is established a commission, to be 
     known as the ``National Commission on Energy Security'' 
     (referred to in this section as the ``Commission'').
       (2) Membership.--The Commission shall be composed of 15 
     members, of whom--
       (A) 3 shall be appointed by the President;
       (B) 3 shall be appointed by the majority leader of the 
     Senate;
       (C) 3 shall be appointed by the minority leader of the 
     Senate;
       (D) 3 shall be appointed by the Speaker of the House of 
     Representatives; and
       (E) 3 shall be appointed by the minority leader of the 
     House of Representatives.
       (3) Co-chairpersons.--
       (A) In general.--The President shall designate 2 co-
     chairpersons from among the members of the Commission 
     appointed.
       (B) Political affiliation.--The co-chairpersons designated 
     under subparagraph (A) shall not both be affiliated with the 
     same political party.
       (4) Deadline for appointment.--Members of the Commission 
     shall be appointed not later than 90 days after the date of 
     enactment of this Act.
       (5) Term; vacancies.--
       (A) Term.--A member of the Commission shall be appointed 
     for the life of the Commission.
       (B) Vacancies.--Any vacancy in the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled in the same manner as the original 
     appointment.
       (b) Purpose.--The Commission shall conduct a comprehensive 
     review of the energy policy of the United States by--
       (1) reviewing relevant analyses of the current and long-
     term energy policy of, and conditions in, the United States;
       (2) identifying problems that may threaten the achievement 
     by the United States of long-term energy policy goals, 
     including energy security;
       (3) analyzing potential solutions to problems that threaten 
     the long-term ability of the United States to achieve those 
     energy policy goals; and
       (4) providing recommendations that will ensure, to the 
     maximum extent practicable, that the energy policy goals of 
     the United States are achieved.
       (c) Report and Recommendations.--
       (1) In general.--Not later than June 30 of each of calendar 
     years 2009, 2011, 2013, and 2015, the Commission shall submit 
     to Congress and the President a report on the progress of 
     United States in meeting the long-term energy policy goal of 
     energy security, including a detailed statement of the 
     findings, conclusions, and recommendations of the Commission.
       (2) Legislative language.--If a recommendation submitted 
     under paragraph (1) involves legislative action, the report 
     shall include proposed legislative language to carry out the 
     action.
       (d) Commission Personnel Matters.--
       (1) Staff and director.--The Commission shall have a staff 
     headed by an Executive Director.
       (2) Staff appointment.--The Executive Director may appoint 
     such personnel as the Executive Director and the Commission 
     determine to be appropriate.
       (3) Experts and consultants.--With the approval of the 
     Commission, the Executive Director may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code.
       (4) Federal agencies.--
       (A) Detail of government employees.--
       (i) In general.--Upon the request of the Commission, the 
     head of any Federal agency may detail, without reimbursement, 
     any of the personnel of the Federal agency to the Commission 
     to assist in carrying out the duties of the Commission.
       (ii) Nature of detail.--Any detail of a Federal employee 
     under clause (i) shall not interrupt or otherwise affect the 
     civil service status or privileges of the Federal employee.
       (B) Technical assistance.--Upon the request of the 
     Commission, the head of a Federal agency shall provide such 
     technical assistance to the Commission as the Commission 
     determines to be necessary to carry out the duties of the 
     Commission.
       (e) Resources.--
       (1) In general.--The Commission shall have reasonable 
     access to materials, resources, statistical data, and such 
     other information from Executive agencies as the Commission 
     determines to be necessary to carry out the duties of the 
     Commission.
       (2) Form of requests.--The co-chairpersons of the 
     Commission shall make requests for access described in 
     paragraph (1) in writing, as necessary.
                                 ______
                                 
  SA 5186. Ms. CANTWELL (for herself, Mr. Lieberman, and Mr. Nelson of 
Florida) submitted an amendment intended to be proposed by her to the 
bill S. 3268, to amend the Commodity Exchange Act, to prevent excessive 
price speculation with respect to energy commodities, and for other 
purposes; which was ordered to lie on the table; as follows:

       In section 6, at page 10 line 8, strike all through page 20 
     line 6 and insert the following:
       Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) (as 
     amended by section 5) is amended by adding at the end the 
     following:
       ``(h) Elimination of Excessive Speculation as a Cause of 
     High Oil, Gas, and Energy Prices.--
       ``(1) ``(1).--Definition of bona-fide hedge trading.--
       (A) In general.--The term `Bona-Fide Hedge Trading' means a 
     transaction that--
       (aa) represents a substitute for a transaction to be made 
     or a position to be taken at a later time in a physical 
     marketing channel;
       (bb) is economically appropriate for the reduction of risks 
     in the conduct and management of a commercial enterprise that 
     uses the underlying commodity in the production or operation 
     of its business; and
       (cc) arises from the potential change in the value of--
       (AA) assets that a person owns, produces, manufactures, 
     possesses, or merchandises (or anticipates owning, producing, 
     manufacturing, possessing, or merchandising);
       (BB) liabilities that a person incurs or anticipates 
     incurring; or
       (CC) services that a person provides or purchases (or 
     anticipates providing or purchasing).
       (B) Exclusion.--The term `Bona-fide Hedge Trading' does not 
     include a transaction entered into on a designated contract 
     market for the purpose of offsetting a financial risk arising 
     from an over-the-counter commodity derivative.''
       ``(2) Identification of bona-fide hedge trading.--In 
     carrying out this Act, the Commission shall distinguish 
     between--
       ``(A) bona-fide hedge trading; and
       ``(B) all other trading in energy commodities.
       (3) Definition of covered over-the-counter commodity 
     derivative.--The term `over-the-counter commodity derivative' 
     means any agreement, contract, or transaction that--
       (A) (aa) traded or executed in the United States;
       (bb) is held by a person located in the United States; or
       (B) is not traded on a designated contract market or 
     derivatives transaction execution facility; and
       (C) (aa) is a put, call, cap, floor, collar, or similar 
     option of any kind for the purchase or sale of, or 
     substantially based on the value of, or more qualifying 
     commodities or an economic or financial index or measure of 
     economic or financial risk primarily associated with 1 or 
     more qualifying commodities;
       (bb) provides on an executory basis for the applicable 
     transaction, on a fixed or contingent basis, of 1 or more 
     payments substantially based on the value of 1 or more 
     qualifying commodities or an economic or financial index or 
     measure of economic or financial risk primarily associated 
     with 1 or more qualifying commodities, and that transfers 
     between the parties to the transaction, in whole or in part, 
     the economic or financial risk associated with a future 
     change in any such value without also conveying a current or 
     future direct or indirect ownership interest in an asset or 
     liability that incorporates the financial risk that is 
     transferred; or
       (cc) is any combination or permutation of, or option on, 
     any agreement, contract, or transaction described in item 
     (aa) or (bb).
       ``(4) ``Control entity.--For purposes of this Act, a 
     control entity shall mean a person or entity that holds or 
     controls a position in proportion to the person or entity's 
     direct or indirect ownership or equity interest in the 
     position.
       (5) In section 4a(h)(4)(C)(i) of the Commodity Exchange Act 
     (as added by section 6), strike subclause (II) and insert the 
     following:
       ``(II) Application.--The Commission shall apply the limits 
     imposed under subclause (I) to--
       ``(aa) any person who executes accounts, agreements, or 
     transactions involving an energy commodity for the own 
     account of the person and to any person for whom an agent in 
     fact or substance executes accounts, agreements, or 
     transactions involving an energy commodity, on a registered 
     entity or in covered over-the-counter trading; and
       ``(bb) any citizen of the United States who executes 
     accounts, agreements, or transactions involving an energy 
     commodity for the own account of the citizen and to any 
     citizen of the United States for whom an agent in fact or 
     substance executes accounts, agreements, or transactions 
     involving an energy commodity, on a foreign board of trade or 
     trading facility based in a country other than the United 
     States.
       ``(4) Elimination of excessive speculation.--
       ``(A) In general.--Notwithstanding any other provision of 
     this Act, the Commission shall review all regulations, rules, 
     exemptions, exclusions, guidance, no action letters, orders, 
     and other actions taken by or on behalf of the Commission 
     (including any action or inaction taken pursuant to delegated 
     authority by an exchange, self-regulatory organization, or 
     any other entity) regarding all energy futures market 
     participants or market activity (referred to in this 
     subsection individually as a `prior action') to ensure that--

[[Page S7403]]

       ``(i) bona fide hedge trading is protected and promoted; 
     and
       ``(ii) excessive speculation is eliminated.
       ``(B) Prior action.--
       ``(i) In general.--The Commission shall modify or revoke 
     the application after the date of enactment of this 
     subsection of any prior action taken by the Commission 
     (including any prior action taken pursuant to delegated 
     authority by any other entity) with respect to any trade on 
     any market, exchange, foreign board of trade, swap or swap 
     transaction, index or index market participant or trade, 
     hedge fund, pension fund, and any other transaction, trade, 
     trader, or petroleum or energy futures market activity unless 
     the Commission affirmatively determines that such prior 
     action will protect and promote bona fide hedge trading and 
     does not permit or encourage excessive speculation.
       ``(ii) Revocation.--In carrying out this subparagraph, the 
     Commission shall modify or revoke the results of each prior 
     action that, in whole or in part, has the direct or indirect 
     affect of limiting, reducing, or eliminating the filing of 
     any report or data regarding any direct or indirect trade or 
     trader, including the filing of large trader reports.
       ``(C) Aggregate speculative position limits applicable to 
     trading in energy commodities and derivatives that is not 
     bonafide hedge trading.--
       ``(i) Aggregate speculative position limits.--
       ``(I) In general.--Not later than 30 days after the date of 
     enactment of this subsection, the Commission shall impose, by 
     rule, regulation, or order, aggregate speculative position 
     limits on trading that is not bona fide hedge trading at the 
     control entity level,
       ``(a) on designated contract markets;
       ``(b) on derivatives transaction execution facilities; and
       ``(c) in covered over-the-counter commodity derivatives.
       ``(II) In establishing aggregate speculative position 
     limits, the Commission shall set the limits at the minimum 
     level practicable--
       (a) to ensure sufficient market liquidity for the conduct 
     of bonafide hedging activities;
       (b) to ensure that price discovery is not disrupted;
       (c) to protect and promote bonafide hedge trading;
       (d) to minimize non-bonafide hedge trading; and (e) to 
     eliminate excess speculation.''
       ``(II) The aggregate speculative position limits shall 
     apply to positions held that expire during--
       (a) the spot month;
       (b) each separate futures trading month (other than the 
     spot month); or
       (c) the sum of each trading month (including the spot 
     month).''
       ``(ii) Advisory group.--Physical Hedgers Energy Advisory 
     Committee
       (a) Advisory committee.--Not later than 30 days after 
     enactment, the CFTC shall establish a ``physical hedgers 
     energy advisory committee'' for users of futures and swaps 
     transactions for price discovery or hedging price risk of 
     physical energy commodities (hereinafter ``physical 
     hedgers''), which shall include:
       (aa) commercial producers or sellers,
       (bb) purchasers or users, or
       (cc) middlemen involved with the purchase or sale of such 
     energy commodities
       (b) Composition.--In making appointments, not fewer than 
     75% of the membership of this committee shall be composed of 
     participants (or their associations) for whom the 
     preponderance of their participation in futures or over the 
     counter markets is confined to hedging price risk for an 
     energy commodity in their capacity as a commercial producer, 
     seller, purchaser, user or middleman involved with such 
     commodities. Not fewer than two representatives shall be 
     appointed from each category:
       (aa) Airlines
       (bb) Trucking and Railroads
       (cc) Petroleum Marketers and Heating Oil Distributors
       (dd) Industrial Energy Consumers
       (ee) Public and private gas and electric utilities
       (ff) Oil and distillate refiners
       (gg) Crude oil producers and shippers/terminal operators
       (hh) Natural gas producers and pipeline operators
       (ii) Other energy producers or sellers who use futures 
     markets
       Up to 25% of such committee shall include consumer advocacy 
     organizations, futures exchanges and trading facilities, 
     state and local governments, financial services industry 
     participants.
       (c) Meetings.--This committee shall meet not less than 4 
     times per year, but shall meet more often upon the call of 
     the Chair or by the request of the Commission.
       (d) Purposes.--The Physical Hedgers Energy Advisory 
     Committee shall provide advice to the Commission on rules, 
     regulations and policies related to energy commodity markets, 
     recommend appropriate levels of liquidity necessary for price 
     discovery and physical hedging, review and make 
     recommendations on the size of speculative positions limits, 
     review and make recommendations on transactions that should 
     be deemed commercial or non-commercial, evaluate whether 
     additional policies are needed to prevent excessive 
     speculation, and recommend improvements to rules, regulations 
     and policies, and for other purposes.
       (e) Chair and Tenure.--The Chair shall be selected by the 
     full Commission. Members shall serve for 3 year terms. The 
     Committee shall have not more than 24 members.
       (f) FACA.--The Committee shall be subject to the Federal 
     Advisory Committee Act (FACA).
       (g) Interim Recommendations to CFTC.--Not later than 60 
     days after enactment, the ``physical hedgers energy advisory 
     committee'' shall submit to the CFTC interim recommendations 
     on the establishment of an appropriate level for aggregate 
     speculative position limits for each energy commodity. Such 
     recommendation shall be transmitted to Congress.
       ``(iii) Review of recommendations.--Not later than 270 days 
     after the date of enactment of this subsection, the 
     Commission shall--
       ``(I) analyze and review the recommendations submitted by 
     the advisory group under clause (ii)(II); and
       ``(II) submit to the appropriate committees of Congress a 
     report describing each recommendation (including each 
     modification to the statutory authority of the Commission 
     that the Commission determines to be necessary to effectuate 
     each recommendation).
       ``(iv) Rulemaking.--
       ``(I) In general.--Not later than 18 months after the date 
     of enactment of this subsection, the Commission shall 
     promulgate a final rule that establishes speculative position 
     limits--
       ``(aa) for any person engaged in trading of an energy 
     commodity that is not bona-fide hedge trading; and
       ``(bb) that are consistent with this Act.
       ``(II) Effective date.--The final rule described in 
     subclause (I) shall take effect on the date that is 30 days 
     after the date on which the Commission promulgates the final 
     rule.
       ``(V) Development of methodology.--
       ``(I) In general.--Not later than 180 days after the date 
     of enactment of this subsection, the Commission shall propose 
     a methodology to determine and set aggregate speculative 
     position limits for each person engaging trading that is not 
     bona-fide hedge trading of energy commodities--
       ``(aa) on designated contract markets;
       ``(bb) on derivatives transaction execution facilities; and
       ``(cc) in covered over-the-counter commodity derivatives.
       ``(dd) The aggregate speculative position limits 
     established under this subsection shall apply to positions 
     held that expire during--
       (AA) the spot month;
       (BB) each separate futures trading month (other than the 
     spot month); or
       (CC) the sum of each trading month (including the spot 
     month).''
       ``(II) Report.--Not later than 180 days after the date of 
     enactment of this subsection, the Commission shall submit to 
     the appropriate committees of Congress a report that 
     contains--
       ``(aa) any recommendations regarding any additional 
     statutory authority that the Commission determines to be 
     necessary for the imposition of the speculative position 
     limits described in subclause (I); and
       ``(bb) a description of the resources that the Commission 
     considers to be necessary to implement the speculative 
     position limits.
       ``(D) Maximum level of speculative position limits.--
       ``(i) In general. In establishing speculative position 
     limits under this section (including subparagraph (C)(iv)), 
     the Commission shall set the limits at the minimum level 
     practicable--
       ``(I) to ensure sufficient market liquidity for the conduct 
     of bona-fide hedging activities;
       ``(II) to ensure that price discovery is not disrupted;
       ``(III) to protect and promote bona-fide hedge trading;
       ``(IV) to minimize trading of an energy commodity that is 
     not bona-fide hedge trading; and
       ``(V) to eliminate excess speculation.
                                 ______
                                 
  SA 5187. Mrs. DOLE submitted an amendment intended to be proposed by 
her to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

                       TITLE II--NEW CLEAN FUELS

     SEC. 21. SHORT TITLE.

       (a) Short Title.--This title may be cited as the ``New 
     Clean Energy Tax Extenders Act''.
       (b) Reference.--Except as otherwise expressly provided, 
     whenever in this title an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of the Internal Revenue Code of 
     1986.
       (c) Table of Contents.--The table of contents for this 
     title is as follows:

                       TITLE II--NEW CLEAN FUELS

Sec. 21. Short title.

      Subtitle A--Extension of Clean Energy Production Incentives

Sec. 22. Extension and modification of renewable energy production tax 
              credit.
Sec. 23. Extension and modification of solar energy and fuel cell 
              investment tax credit.

[[Page S7404]]

Sec. 24. Extension and modification of residential energy efficient 
              property credit.
Sec. 25. Extension and modification of credit for clean renewable 
              energy bonds.
Sec. 26. Extension of special rule to implement FERC restructuring 
              policy.

    Subtitle B--Extension of Incentives to Improve Energy Efficiency

Sec. 27. Extension and modification of credit for energy efficiency 
              improvements to existing homes.
Sec. 28. Extension and modification of tax credit for energy efficient 
              new homes.
Sec. 29. Extension and modification of energy efficient commercial 
              buildings deduction.
Sec. 30. Modification and extension of energy efficient appliance 
              credit for appliances produced after 2007.

                     Subtitle C--Revenue Provisions

Sec. 31. Denial of deduction for major integrated oil companies for 
              income attributable to domestic production of oil, gas, 
              or primary products thereof.
Sec. 32. Elimination of the different treatment of foreign oil and gas 
              extraction income and foreign oil related income for 
              purposes of the foreign tax credit.

      Subtitle A--Extension of Clean Energy Production Incentives

     SEC. 22. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY 
                   PRODUCTION TAX CREDIT.

       (a) Extension of Credit.--Each of the following provisions 
     of section 45(d) (relating to qualified facilities) is 
     amended by striking ``January 1, 2009'' and inserting 
     ``January 1, 2013'':
       (1) Paragraph (1).
       (2) Clauses (i) and (ii) of paragraph (2)(A).
       (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
       (4) Paragraph (4).
       (5) Paragraph (5).
       (6) Paragraph (6).
       (7) Paragraph (7).
       (8) Paragraph (8).
       (9) Subparagraphs (A) and (B) of paragraph (9).
       (b) Production Credit for Electricity Produced From Marine 
     Renewables.--
       (1) In general.--Paragraph (1) of section 45(c) (relating 
     to resources) is amended by striking ``and'' at the end of 
     subparagraph (G), by striking the period at the end of 
     subparagraph (H) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(I) marine and hydrokinetic renewable energy.''.
       (2) Marine renewables.--Subsection (c) of section 45 is 
     amended by adding at the end the following new paragraph:
       ``(10) Marine and hydrokinetic renewable energy.--
       ``(A) In general.--The term `marine and hydrokinetic 
     renewable energy' means energy derived from--
       ``(i) waves, tides, and currents in oceans, estuaries, and 
     tidal areas,
       ``(ii) free flowing water in rivers, lakes, and streams,
       ``(iii) free flowing water in an irrigation system, canal, 
     or other man-made channel, including projects that utilize 
     nonmechanical structures to accelerate the flow of water for 
     electric power production purposes, or
       ``(iv) differentials in ocean temperature (ocean thermal 
     energy conversion).
       ``(B) Exceptions.--Such term shall not include any energy 
     which is derived from any source which utilizes a dam, 
     diversionary structure (except as provided in subparagraph 
     (A)(iii)), or impoundment for electric power production 
     purposes.''.
       (3) Definition of facility.--Subsection (d) of section 45 
     is amended by adding at the end the following new paragraph:
       ``(11) Marine and hydrokinetic renewable energy 
     facilities.--In the case of a facility producing electricity 
     from marine and hydrokinetic renewable energy, the term 
     `qualified facility' means any facility owned by the 
     taxpayer--
       ``(A) which has a nameplate capacity rating of at least 150 
     kilowatts, and
       ``(B) which is originally placed in service on or after the 
     date of the enactment of this paragraph and before January 1, 
     2013.''.
       (4) Credit rate.--Subparagraph (A) of section 45(b)(4) is 
     amended by striking ``or (9)'' and inserting ``(9), or 
     (11)''.
       (5) Coordination with small irrigation power.--Paragraph 
     (5) of section 45(d), as amended by subsection (a), is 
     amended by striking ``January 1, 2010'' and inserting ``the 
     date of the enactment of paragraph (11)''.
       (c) Sales of Electricity to Regulated Public Utilities 
     Treated as Sales to Unrelated Persons.--Section 45(e)(4) 
     (relating to related persons) is amended by adding at the end 
     the following new sentence: ``A taxpayer shall be treated as 
     selling electricity to an unrelated person if such 
     electricity is sold to a regulated public utility (as defined 
     in section 7701(a)(33).''.
       (d) Trash Facility Clarification.--Paragraph (7) of section 
     45(d) is amended--
       (1) by striking ``facility which burns'' and inserting 
     ``facility (other than a facility described in paragraph (6)) 
     which uses'', and
       (2) by striking ``combustion''.
       (e) Effective Dates.--
       (1) Extension.--The amendments made by subsection (a) shall 
     apply to property originally placed in service after December 
     31, 2008.
       (2) Modifications.--The amendments made by subsections (b) 
     and (c) shall apply to electricity produced and sold after 
     the date of the enactment of this Act, in taxable years 
     ending after such date.
       (3) Trash facility clarification.--The amendments made by 
     subsection (d) shall apply to electricity produced and sold 
     before, on, or after December 31, 2007.

     SEC. 23. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND FUEL 
                   CELL INVESTMENT TAX CREDIT.

       (a) Extension of Credit.--
       (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) (relating to energy credit) are 
     each amended by striking ``January 1, 2009'' and inserting 
     ``January 1, 2017''.
       (2) Fuel cell property.--Subparagraph (E) of section 
     48(c)(1) (relating to qualified fuel cell property) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``January 1, 2017''.
       (3) Qualified microturbine property.--Subparagraph (E) of 
     section 48(c)(2) (relating to qualified microturbine 
     property) is amended by striking ``December 31, 2008'' and 
     inserting ``January 1, 2017''.
       (b) Allowance of Energy Credit Against Alternative Minimum 
     Tax.--Subparagraph (B) of section 38(c)(4) (relating to 
     specified credits) is amended by striking ``and'' at the end 
     of clause (iii), by striking the period at the end of clause 
     (iv) and inserting ``, and'', and by adding at the end the 
     following new clause:
       ``(v) the credit determined under section 46 to the extent 
     that such credit is attributable to the energy credit 
     determined under section 48.''.
       (c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell 
     Property.--
       (1) In general.--Section 48(c)(1) (relating to qualified 
     fuel cell), as amended by subsection (a)(2), is amended by 
     striking subparagraph (B) and by redesignating subparagraphs 
     (C), (D), and (E) as subparagraphs (B), (C), and (D), 
     respectively.
       (2) Conforming amendment.--Section 48(a)(1) is amended by 
     striking ``paragraphs (1)(B) and (2)(B) of subsection (c)'' 
     and inserting ``subsection (c)(2)(B)''.
       (d) Public Electric Utility Property Taken Into Account.--
       (1) In general.--Paragraph (3) of section 48(a) is amended 
     by striking the second sentence thereof.
       (2) Conforming amendments.--
       (A) Paragraph (1) of section 48(c), as amended by this 
     section, is amended by striking subparagraph (C) and 
     redesignating subparagraph (D) as subparagraph (C).
       (B) Paragraph (2) of section 48(c), as amended by 
     subsection (a)(3), is amended by striking subparagraph (D) 
     and redesignating subparagraph (E) as subparagraph (D).
       (e) Effective Dates.--
       (1) Extension.--The amendments made by subsection (a) shall 
     take effect on the date of the enactment of this Act.
       (2) Allowance against alternative minimum tax.--The 
     amendments made by subsection (b) shall apply to credits 
     determined under section 46 of the Internal Revenue Code of 
     1986 in taxable years beginning after the date of the 
     enactment of this Act and to carrybacks of such credits.
       (3) Fuel cell property and public electric utility 
     property.--The amendments made by subsections (c) and (d) 
     shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).

     SEC. 24. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY 
                   EFFICIENT PROPERTY CREDIT.

       (a) Extension.--Section 25D(g) (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2012''.
       (b) No Dollar Limitation for Credit for Solar Electric 
     Property.--
       (1) In general.--Section 25D(b)(1) (relating to maximum 
     credit) is amended by striking subparagraph (A) and by 
     redesignating subparagraphs (B) and (C) as subparagraphs (A) 
     and (B), respectively.
       (2) Conforming amendments.--Section 25D(e)(4) is amended--
       (A) by striking clause (i) in subparagraph (A),
       (B) by redesignating clauses (ii) and (iii) in subparagraph 
     (A) as clauses (i) and (ii), respectively, and
       (C) by striking ``, (2),'' in subparagraph (C).
       (c) Credit Allowed Against Alternative Minimum Tax.--
       (1) In general.--Subsection (c) of section 25D is amended 
     to read as follows:
       ``(c) Limitation Based on Amount of Tax; Carryforward of 
     Unused Credit.--
       ``(1) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for the taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section) and section 27 for the taxable 
     year.
       ``(2) Carryforward of unused credit.--
       ``(A) Rule for years in which all personal credits allowed 
     against regular

[[Page S7405]]

     and alternative minimum tax.--In the case of a taxable year 
     to which section 26(a)(2) applies, if the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     section 26(a)(2) for such taxable year reduced by the sum of 
     the credits allowable under this subpart (other than this 
     section), such excess shall be carried to the succeeding 
     taxable year and added to the credit allowable under 
     subsection (a) for such succeeding taxable year.
       ``(B) Rule for other years.--In the case of a taxable year 
     to which section 26(a)(2) does not apply, if the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such succeeding 
     taxable year.''.
       (2) Conforming amendments.--
       (A) Section 23(b)(4)(B) is amended by inserting ``and 
     section 25D'' after ``this section''.
       (B) Section 24(b)(3)(B) is amended by striking ``and 25B'' 
     and inserting ``, 25B, and 25D''.
       (C) Section 25B(g)(2) is amended by striking ``section 23'' 
     and inserting ``sections 23 and 25D''.
       (D) Section 26(a)(1) is amended by striking ``and 25B'' and 
     inserting ``25B, and 25D''.
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2007.
       (2) Application of egtrra sunset.--The amendments made by 
     subparagraphs (A) and (B) of subsection (c)(2) shall be 
     subject to title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 in the same manner as the 
     provisions of such Act to which such amendments relate.

     SEC. 25. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN 
                   RENEWABLE ENERGY BONDS.

       (a) Extension.--Section 54(m) (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2012''.
       (b) Increase in National Limitation.--Section 54(f) 
     (relating to limitation on amount of bonds designated) is 
     amended--
       (1) by inserting ``, and for the period beginning after the 
     date of the enactment of the New Clean Energy Tax Extenders 
     Act and ending before January 1, 2013, $400,000,000'' after 
     ``$1,200,000,000'' in paragraph (1),
       (2) by striking ``$750,000,000 of the'' in paragraph (2) 
     and inserting ``$750,000,000 of the $1,200,000,000'', and
       (3) by striking ``bodies'' in paragraph (2) and inserting 
     ``bodies, and except that the Secretary may not allocate more 
     than \1/3\ of the $400,000,000 national clean renewable 
     energy bond limitation to finance qualified projects of 
     qualified borrowers which are public power providers nor more 
     than \1/3\ of such limitation to finance qualified projects 
     of qualified borrowers which are mutual or cooperative 
     electric companies described in section 501(c)(12) or section 
     1381(a)(2)(C)''.
       (c) Public Power Providers Defined.--Section 54(j) is 
     amended--
       (1) by adding at the end the following new paragraph:
       ``(6) Public power provider.--The term `public power 
     provider' means a State utility with a service obligation, as 
     such terms are defined in section 217 of the Federal Power 
     Act (as in effect on the date of the enactment of this 
     paragraph).'', and
       (2) by inserting ``; Public Power Provider'' before the 
     period at the end of the heading.
       (d) Technical Amendment.--The third sentence of section 
     54(e)(2) is amended by striking ``subsection (l)(6)'' and 
     inserting ``subsection (l)(5)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 26. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC 
                   RESTRUCTURING POLICY.

       (a) Qualifying Electric Transmission Transaction.--
       (1) In general.--Section 451(i)(3) (defining qualifying 
     electric transmission transaction) is amended by striking 
     ``January 1, 2008'' and inserting ``January 1, 2013''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to transactions after December 31, 2007.
       (b) Independent Transmission Company.--
       (1) In general.--Section 451(i)(4)(B)(ii) (defining 
     independent transmission company) is amended by striking 
     ``December 31, 2007'' and inserting ``the date which is 5 
     years after the date of such transaction''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the amendments made by 
     section 909 of the American Jobs Creation Act of 2004.

    Subtitle B--Extension of Incentives to Improve Energy Efficiency

     SEC. 27. EXTENSION AND MODIFICATION OF CREDIT FOR ENERGY 
                   EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.

       (a) Extension of Credit.--Section 25C(g) (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2012''.
       (b) Qualified Biomass Fuel Property.--
       (1) In general.--Section 25C(d)(3) is amended--
       (A) by striking ``and'' at the end of subparagraph (D),
       (B) by striking the period at the end of subparagraph (E) 
     and inserting ``, and'', and
       (C) by adding at the end the following new subparagraph:
       ``(F) a stove which uses the burning of biomass fuel to 
     heat a dwelling unit located in the United States and used as 
     a residence by the taxpayer, or to heat water for use in such 
     a dwelling unit, and which has a thermal efficiency rating of 
     at least 75 percent.''.
       (2) Biomass fuel.--Section 25C(d) (relating to residential 
     energy property expenditures) is amended by adding at the end 
     the following new paragraph:
       ``(6) Biomass fuel.--The term `biomass fuel' means any 
     plant-derived fuel available on a renewable or recurring 
     basis, including agricultural crops and trees, wood and wood 
     waste and residues (including wood pellets), plants 
     (including aquatic plants), grasses, residues, and fibers.''.
       (c) Modifications of Standards for Energy-Efficient 
     Building Property.--
       (1) Electric heat pumps.--Subparagraph (B) of section 
     25C(d)(3) is amended to read as follows:
       ``(A) an electric heat pump which achieves the highest 
     efficiency tier established by the Consortium for Energy 
     Efficiency, as in effect on January 1, 2008.''.
       (2) Central air conditioners.--Section 25C(d)(3)(D) is 
     amended by striking ``2006'' and inserting ``2008''.
       (3) Water heaters.--Subparagraph (E) of section 25C(d) is 
     amended to read as follows:
       ``(E) a natural gas, propane, or oil water heater which has 
     either an energy factor of at least 0.80 or a thermal 
     efficiency of at least 90 percent.''.
       (4) Oil furnaces and hot water boilers.--Paragraph (4) of 
     section 25C(d) is amended to read as follows:
       ``(4) Qualified natural gas, propane, and oil furnaces and 
     hot water boilers.--
       ``(A) Qualified natural gas furnace.--The term `qualified 
     natural gas furnace' means any natural gas furnace which 
     achieves an annual fuel utilization efficiency rate of not 
     less than 95.
       ``(B) Qualified natural gas hot water boiler.--The term 
     `qualified natural gas hot water boiler' means any natural 
     gas hot water boiler which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(C) Qualified propane furnace.--The term `qualified 
     propane furnace' means any propane furnace which achieves an 
     annual fuel utilization efficiency rate of not less than 95.
       ``(D) Qualified propane hot water boiler.--The term 
     `qualified propane hot water boiler' means any propane hot 
     water boiler which achieves an annual fuel utilization 
     efficiency rate of not less than 90.
       ``(E) Qualified oil furnaces.--The term `qualified oil 
     furnace' means any oil furnace which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(F) Qualified oil hot water boiler.--The term `qualified 
     oil hot water boiler' means any oil hot water boiler which 
     achieves an annual fuel utilization efficiency rate of not 
     less than 90.''.
       (d) Effective Date.--The amendments made this section shall 
     apply to expenditures made after December 31, 2007.

     SEC. 28. EXTENSION AND MODIFICATION OF TAX CREDIT FOR ENERGY 
                   EFFICIENT NEW HOMES.

       (a) Extension of Credit.--Subsection (g) of section 45L 
     (relating to termination) is amended by striking ``December 
     31, 2008'' and inserting ``December 31, 2012''.
       (b) Allowance for Contractor's Personal Residence.--
     Subparagraph (B) of section 45L(a)(1) is amended to read as 
     follows:
       ``(B)(i) acquired by a person from such eligible contractor 
     and used by any person as a residence during the taxable 
     year, or
       ``(ii) used by such eligible contractor as a residence 
     during the taxable year.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to homes acquired after December 31, 2008.

     SEC. 29. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT 
                   COMMERCIAL BUILDINGS DEDUCTION.

       (a) Extension.--Section 179D(h) (relating to termination) 
     is amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2012''.
       (b) Adjustment of Maximum Deduction Amount.--
       (1) In general.--Subparagraph (A) of section 179D(b)(1) 
     (relating to maximum amount of deduction) is amended by 
     striking ``$1.80'' and inserting ``$2.25''.
       (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
     amended--
       (A) by striking ``$.60'' and inserting ``$0.75'', and
       (B) by striking ``$1.80'' and inserting ``$2.25''.
       (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. 30. MODIFICATION AND EXTENSION OF ENERGY EFFICIENT 
                   APPLIANCE CREDIT FOR APPLIANCES PRODUCED AFTER 
                   2007.

       (a) In General.--Subsection (b) of section 45M (relating to 
     applicable amount) is amended to read as follows:
       ``(b) Applicable Amount.--For purposes of subsection (a)--
       ``(1) Dishwashers.--The applicable amount is--
       ``(A) $45 in the case of a dishwasher which is manufactured 
     in calendar year 2008 or 2009 and which uses no more than 324 
     kilowatt hours per year and 5.8 gallons per cycle, and
       ``(B) $75 in the case of a dishwasher which is manufactured 
     in calendar year 2008, 2009,

[[Page S7406]]

     or 2010 and which uses no more than 307 kilowatt hours per 
     year and 5.0 gallons per cycle (5.5 gallons per cycle for 
     dishwashers designed for greater than 12 place settings).
       ``(2) Clothes washers.--The applicable amount is--
       ``(A) $75 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 which meets or 
     exceeds a 1.72 modified energy factor and does not exceed a 
     8.0 water consumption factor,
       ``(B) $125 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 or 2009 which meets 
     or exceeds a 1.8 modified energy factor and does not exceed a 
     7.5 water consumption factor,
       ``(C) $150 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets or exceeds 2.0 modified energy factor and 
     does not exceed a 6.0 water consumption factor, and
       ``(D) $250 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets or exceeds 2.2 modified energy factor and 
     does not exceed a 4.5 water consumption factor.
       ``(3) Refrigerators.--The applicable amount is--
       ``(A) $50 in the case of a refrigerator which is 
     manufactured in calendar year 2008, and consumes at least 20 
     percent but not more than 22.9 percent less kilowatt hours 
     per year than the 2001 energy conservation standards,
       ``(B) $75 in the case of a refrigerator which is 
     manufactured in calendar year 2008 or 2009, and consumes at 
     least 23 percent but no more than 24.9 percent less kilowatt 
     hours per year than the 2001 energy conservation standards,
       ``(C) $100 in the case of a refrigerator which is 
     manufactured in calendar year 2008, 2009, or 2010, and 
     consumes at least 25 percent but not more than 29.9 percent 
     less kilowatt hours per year than the 2001 energy 
     conservation standards, and
       ``(D) $200 in the case of a refrigerator manufactured in 
     calendar year 2008, 2009, or 2010 and which consumes at least 
     30 percent less energy than the 2001 energy conservation 
     standards.''.
       (b) Eligible Production.--
       (1) Similar treatment for all appliances.--Subsection (c) 
     of section 45M (relating to eligible production) is amended--
       (A) by striking paragraph (2),
       (B) by striking ``(1) In general'' and all that follows 
     through ``the eligible'' and inserting ``The eligible'', and
       (C) by moving the text of such subsection in line with the 
     subsection heading and redesignating subparagraphs (A) and 
     (B) as paragraphs (1) and (2), respectively.
       (2) Modification of base period.--Paragraph (2) of section 
     45M(c), as amended by paragraph (1) of this section, is 
     amended by striking ``3-calendar year'' and inserting ``2-
     calendar year''.
       (c) Types of Energy Efficient Appliances.--Subsection (d) 
     of section 45M (defining types of energy efficient 
     appliances) is amended to read as follows:
       ``(d) Types of Energy Efficient Appliance.--For purposes of 
     this section, the types of energy efficient appliances are--
       ``(1) dishwashers described in subsection (b)(1),
       ``(2) clothes washers described in subsection (b)(2), and
       ``(3) refrigerators described in subsection (b)(3).''.
       (d) Aggregate Credit Amount Allowed.--
       (1) Increase in limit.--Paragraph (1) of section 45M(e) 
     (relating to aggregate credit amount allowed) is amended to 
     read as follows:
       ``(1) Aggregate credit amount allowed.--The aggregate 
     amount of credit allowed under subsection (a) with respect to 
     a taxpayer for any taxable year shall not exceed $75,000,000 
     reduced by the amount of the credit allowed under subsection 
     (a) to the taxpayer (or any predecessor) for all prior 
     taxable years beginning after December 31, 2007.''.
       (2) Exception for certain refrigerator and clothes 
     washers.--Paragraph (2) of section 45M(e) is amended to read 
     as follows:
       ``(2) Amount allowed for certain refrigerators and clothes 
     washers.--Refrigerators described in subsection (b)(3)(D) and 
     clothes washers described in subsection (b)(2)(D) shall not 
     be taken into account under paragraph (1).''.
       (e) Qualified Energy Efficient Appliances.--
       (1) In general.--Paragraph (1) of section 45M(f) (defining 
     qualified energy efficient appliance) is amended to read as 
     follows:
       ``(1) Qualified energy efficient appliance.--The term 
     `qualified energy efficient appliance' means--
       ``(A) any dishwasher described in subsection (b)(1),
       ``(B) any clothes washer described in subsection (b)(2), 
     and
       ``(C) any refrigerator described in subsection (b)(3).''.
       (2) Clothes washer.--Section 45M(f)(3) (defining clothes 
     washer) is amended by inserting ``commercial'' before 
     ``residential'' the second place it appears.
       (3) Top-loading clothes washer.--Subsection (f) of section 
     45M (relating to definitions) is amended by redesignating 
     paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), 
     (7), and (8), respectively, and by inserting after paragraph 
     (3) the following new paragraph:
       ``(4) Top-loading clothes washer.--The term `top-loading 
     clothes washer' means a clothes washer which has the clothes 
     container compartment access located on the top of the 
     machine and which operates on a vertical axis.''.
       (4) Replacement of energy factor.--Section 45M(f)(6), as 
     redesignated by paragraph (3), is amended to read as follows:
       ``(6) Modified energy factor.--The term `modified energy 
     factor' means the modified energy factor established by the 
     Department of Energy for compliance with the Federal energy 
     conservation standard.''.
       (5) Gallons per cycle; water consumption factor.--Section 
     45M(f) (relating to definitions), as amended by paragraph 
     (3), is amended by adding at the end the following:
       ``(9) Gallons per cycle.--The term `gallons per cycle' 
     means, with respect to a dishwasher, the amount of water, 
     expressed in gallons, required to complete a normal cycle of 
     a dishwasher.
       ``(10) Water consumption factor.--The term `water 
     consumption factor' means, with respect to a clothes washer, 
     the quotient of the total weighted per-cycle water 
     consumption divided by the cubic foot (or liter) capacity of 
     the clothes washer.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007.

                     Subtitle C--Revenue Provisions

     SEC. 31. DENIAL OF DEDUCTION FOR MAJOR INTEGRATED OIL 
                   COMPANIES FOR INCOME ATTRIBUTABLE TO DOMESTIC 
                   PRODUCTION OF OIL, 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (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) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 32. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN 
                   OIL AND GAS EXTRACTION INCOME AND FOREIGN OIL 
                   RELATED INCOME FOR PURPOSES OF THE FOREIGN TAX 
                   CREDIT.

       (a) In General.--Subsections (a) and (b) of section 907 
     (relating to special rules in case of foreign oil and gas 
     income) are amended to read as follows:
       ``(a) Reduction in Amount Allowed as Foreign Tax Under 
     Section 901.--In applying section 901, the amount of any 
     foreign oil and gas taxes paid or accrued (or deemed to have 
     been paid) during the taxable year which would (but for this 
     subsection) be taken into account for purposes of section 901 
     shall be reduced by the amount (if any) by which the amount 
     of such taxes exceeds the product of--
       ``(1) the amount of the combined foreign oil and gas income 
     for the taxable year,
       ``(2) multiplied by--
       ``(A) in the case of a corporation, the percentage which is 
     equal to the highest rate of tax specified under section 
     11(b), or
       ``(B) in the case of an individual, a fraction the 
     numerator of which is the tax against which the credit under 
     section 901(a) is taken and the denominator of which is the 
     taxpayer's entire taxable income.
       ``(b) Combined Foreign Oil and Gas Income; Foreign Oil and 
     Gas Taxes.--For purposes of this section--
       ``(1) Combined foreign oil and gas income.--The term 
     `combined foreign oil and gas income' means, with respect to 
     any taxable year, the sum of--
       ``(A) foreign oil and gas extraction income, and
       ``(B) foreign oil related income.
       ``(2) Foreign oil and gas taxes.--The term `foreign oil and 
     gas taxes' means, with respect to any taxable year, the sum 
     of--
       ``(A) oil and gas extraction taxes, and
       ``(B) any income, war profits, and excess profits taxes 
     paid or accrued (or deemed to have been paid or accrued under 
     section 902 or 960) during the taxable year with respect to 
     foreign oil related income (determined without regard to 
     subsection (c)(4)) or loss which would be taken into account 
     for purposes of section 901 without regard to this 
     section.''.
       (b) Recapture of Foreign Oil and Gas Losses.--Paragraph (4) 
     of section 907(c) (relating to recapture of foreign oil and 
     gas extraction losses by recharacterizing later extraction 
     income) is amended to read as follows:
       ``(4) Recapture of foreign oil and gas losses by 
     recharacterizing later combined foreign oil and gas income.--
       ``(A) In general.--The combined foreign oil and gas income 
     of a taxpayer for a taxable year (determined without regard 
     to this paragraph) shall be reduced--
       ``(i) first by the amount determined under subparagraph 
     (B), and
       ``(ii) then by the amount determined under subparagraph 
     (C).


[[Page S7407]]


     The aggregate amount of such reductions shall be treated as 
     income (from sources without the United States) which is not 
     combined foreign oil and gas income.
       ``(B) Reduction for pre-2008 foreign oil extraction 
     losses.--The reduction under this paragraph shall be equal to 
     the lesser of--
       ``(i) the foreign oil and gas extraction income of the 
     taxpayer for the taxable year (determined without regard to 
     this paragraph), or
       ``(ii) the excess of--

       ``(I) the aggregate amount of foreign oil extraction losses 
     for preceding taxable years beginning after December 31, 
     1982, and before January 1, 2008, over
       ``(II) so much of such aggregate amount as was 
     recharacterized under this paragraph (as in effect before and 
     after the date of the enactment of the Energy Advancement and 
     Investment Act of 2007) for preceding taxable years beginning 
     after December 31, 1982.

       ``(C) Reduction for post-2008 foreign oil and gas losses.--
     The reduction under this paragraph shall be equal to the 
     lesser of--
       ``(i) the combined foreign oil and gas income of the 
     taxpayer for the taxable year (determined without regard to 
     this paragraph), reduced by an amount equal to the reduction 
     under subparagraph (A) for the taxable year, or
       ``(ii) the excess of--

       ``(I) the aggregate amount of foreign oil and gas losses 
     for preceding taxable years beginning after December 31, 
     2007, over
       ``(II) so much of such aggregate amount as was 
     recharacterized under this paragraph for preceding taxable 
     years beginning after December 31, 2007.

       ``(D) Foreign oil and gas loss defined.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `foreign oil and gas loss' means the amount by which--

       ``(I) the gross income for the taxable year from sources 
     without the United States and its possessions (whether or not 
     the taxpayer chooses the benefits of this subpart for such 
     taxable year) taken into account in determining the combined 
     foreign oil and gas income for such year, is exceeded by
       ``(II) the sum of the deductions properly apportioned or 
     allocated thereto.

       ``(ii) Net operating loss deduction not taken into 
     account.--For purposes of clause (i), the net operating loss 
     deduction allowable for the taxable year under section 172(a) 
     shall not be taken into account.
       ``(iii) Expropriation and casualty losses not taken into 
     account.--For purposes of clause (i), there shall not be 
     taken into account--

       ``(I) any foreign expropriation loss (as defined in section 
     172(h) (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990)) for the 
     taxable year, or
       ``(II) any loss for the taxable year which arises from 
     fire, storm, shipwreck, or other casualty, or from theft,

     to the extent such loss is not compensated for by insurance 
     or otherwise.
       ``(iv) Foreign oil extraction loss.--For purposes of 
     subparagraph (B)(ii)(I), foreign oil extraction losses shall 
     be determined under this paragraph as in effect on the day 
     before the date of the enactment of the Energy Advancement 
     and Investment Act of 2007.''.
       (c) Carryback and Carryover of Disallowed Credits.--Section 
     907(f) (relating to carryback and carryover of disallowed 
     credits) is amended--
       (1) by striking ``oil and gas extraction taxes'' each place 
     it appears and inserting ``foreign oil and gas taxes'', and
       (2) by adding at the end the following new paragraph:
       ``(4) Transition rules for pre-2008 and 2008 disallowed 
     credits.--
       ``(A) Pre-2008 credits.--In the case of any unused credit 
     year beginning before January 1, 2008, this subsection shall 
     be applied to any unused oil and gas extraction taxes carried 
     from such unused credit year to a year beginning after 
     December 31, 2007, by substituting `oil and gas extraction 
     taxes' for `foreign oil and gas taxes' each place it appears 
     in paragraphs (1), (2), and (3), and by substituting `foreign 
     oil and gas extraction income' for `foreign oil and gas 
     income' in applying subsection (a) for each relevant year.
       ``(B) 2008 credits.--In the case of any unused credit year 
     beginning in 2008, the amendments made to this subsection by 
     the Energy Advancement and Investment Act of 2007 shall be 
     treated as being in effect for any preceding year beginning 
     before January 1, 2008, solely for purposes of determining 
     how much of the unused foreign oil and gas taxes for such 
     unused credit year may be deemed paid or accrued in such 
     preceding year.''.
       (d) Conforming Amendment.--Section 6501(i) is amended by 
     striking ``oil and gas extraction taxes'' and inserting 
     ``foreign oil and gas taxes''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.
                                 ______
                                 
  SA 5188. Mr. LAUTENBERG submitted an amendment intended to be 
proposed by him to the bill S. 3268, to amend the Commodity Exchange 
Act, to prevent excessive price speculation with respect to energy 
commodities, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. OPEC ACCOUNTABILITY.

       (a) Short Title.--This section may be cited as the ``OPEC 
     Accountability Act''.
       (b) Findings.--Congress makes the following findings:
       (1) Gasoline prices have more than quadrupled since January 
     2002, with crude oil recently trading at more than $119 per 
     barrel for the first time ever.
       (2) Rising gasoline prices have placed an inordinate burden 
     on American families.
       (3) High gasoline prices have hindered and will continue to 
     hinder economic recovery.
       (4) The Organization of Petroleum Exporting Countries 
     (OPEC) has formed a cartel and engaged in anticompetitive 
     practices to manipulate the price of oil, keeping it 
     artificially high.
       (5) Eight member nations of OPEC--Ecuador, Indonesia, 
     Kuwait, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, 
     and Venezuela--are also members of the World Trade 
     Organization. Algeria, Iran, Iraq, and Libya are also 
     Observer Governments of the World Trade Organization.
       (6) The agreement among OPEC member nations to limit oil 
     exports is an illegal prohibition or restriction on the 
     exportation or sale for export of a product under article XI 
     of the GATT 1994.
       (7) The export quotas and resulting high prices harm 
     American families, undermine the American economy, impede 
     American and foreign commerce, and are contrary to the 
     national interests of the United States.
       (c) Actions To Curb Certain Cartel Anticompetitive 
     Practices.--
       (1) Definitions.--In this section:
       (A) Gatt 1994.--The term ``GATT 1994'' has the meaning 
     given such term in section 2(1)(B) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3501(1)(B)).
       (B) Understanding on rules and procedures governing the 
     settlement of disputes.--The term ``Understanding on Rules 
     and Procedures Governing the Settlement of Disputes'' means 
     the agreement described in section 101(d)(16) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3511(d)(16)).
       (C) World trade organization.--
       (i) In general.--The term ``World Trade Organization'' 
     means the organization established pursuant to the WTO 
     Agreement.
       (ii) WTO agreement.--The term ``WTO Agreement'' means the 
     Agreement Establishing The World Trade Organization entered 
     into on April 15, 1994.
       (2) Action by president.--
       (A) In general.--Notwithstanding any other provision of 
     law, the President shall, not later than 15 days after the 
     date of enactment of this Act, initiate consultations with 
     the countries described in subparagraph (B) to seek the 
     elimination by those countries of any action that--
       (i) limits the production or distribution of oil, natural 
     gas, or any other petroleum product;
       (ii) sets or maintains the price of oil, natural gas, or 
     any petroleum product; or
       (iii) otherwise is an action in restraint of trade with 
     respect to oil, natural gas, or any petroleum product, when 
     such action constitutes an act, policy, or practice that is 
     unjustifiable and burdens and restricts United States 
     commerce.
       (B) Countries described.--The countries described in this 
     paragraph are the following:
       (i) Indonesia.
       (ii) Kuwait.
       (iii) Nigeria.
       (iv) Qatar.
       (v) The United Arab Emirates.
       (vi) Venezuela.
       (vii) Ecuador.
       (viii) Saudi Arabia.
       (3) Initiation of wto dispute proceedings.--If the 
     consultations described in paragraph (2) are not successful 
     with respect to any country described in paragraph (2)(B), 
     the United States Trade Representative shall, not later than 
     60 days after the date of enactment of this Act, institute 
     proceedings pursuant to the Understanding on Rules and 
     Procedures Governing the Settlement of Disputes with respect 
     to that country and shall take appropriate action with 
     respect to that country under the trade remedy laws of the 
     United States.
                                 ______
                                 
  SA 5189. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5181 submitted by Mr. Thune and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008

[[Page S7408]]

     (Public Law 110-161; 121 Stat. 2118), regardless of whether 
     any preleasing, leasing, or related activity is ongoing in 
     the waters of the State as of the date of enactment of this 
     Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5190. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5171 submitted by Mr. Voinovich (for himself, Mr. 
Roberts, and Mr. Sununu) and intended to be proposed to the bill S. 
3268, to amend the Commodity Exchange Act, to prevent excessive price 
speculation with respect to energy commodities, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5191. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5166 submitted by Mr. Burr and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5192. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5162 submitted by Mr. Warner (for himself and Mr. Webb) 
and intended to be proposed to the bill S. 3268, to amend the Commodity 
Exchange Act, to prevent excessive price speculation with respect to 
energy commodities, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5193. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5161 submitted by Mr. Cornyn and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5194. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5154 submitted by Mr. Coburn and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5195. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5153 submitted by Mr. Craig (for himself, Mr. Crapo, 
Mr. Bond, Mr. Vitter, and Mr. Inhofe) and intended to be proposed to 
the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5196. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5147 submitted by Mr. DeMint and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent

[[Page S7409]]

excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5197. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5137 submitted by Mr. Coleman (for himself, Mr. 
Domenici, Mrs. Hutchison, Mr. McConnell, Mr. Alexander, Mr. Allard, Mr. 
Bond, Mr. Brownback, Mr. Bunning, Mr. Burr, Mr. Cochran, Mr. Cornyn, 
Mr. Craig, Mr. Crapo, Mrs. Dole, Mr. Enzi, Mr. Graham, Mr. Inhofe, Mr. 
Isakson, Mr. Martinez, Mr. Roberts, Mr. Vitter, Mr. Voinovich, Mr. 
Wicker, and Mr. Sununu) and intended to be proposed to the bill S. 
3268, to amend the Commodity Exchange Act, to prevent excessive price 
speculation with respect to energy commodities, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5198. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5132 submitted by Ms. Landrieu and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5199. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5123 submitted by Mr. Bond and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5200. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5121 submitted by Mr. Bond and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5201. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5116 submitted by Mr. Domenici and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5202. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5110 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--

[[Page S7410]]

       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5203. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5090 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5204. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5097 submitted by Mr. Coleman and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5205. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5108 submitted by Mr. McConnell and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income'

[[Page S7411]]

     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5206. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5109 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5207. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5110 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5208. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5116 submitted by Mr. Domenici and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.

[[Page S7412]]

       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5209. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5121 submitted by Mr. Bond and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5210. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5123 submitted by Mr. Bond and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5211. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5132 submitted by Ms. Landrieu and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

[[Page S7413]]

                                 ______
                                 
  SA 5212. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5137 submitted by Mr. Coleman (for himself, Mr. 
Domenici, Mrs. Hutchison, Mr. McConnell, Mr. Alexander, Mr. Allard, Mr. 
 Bond, Mr. Brownback, Mr. Bunning, Mr. Burr, Mr. Cochran, Mr. Cornyn, 
Mr. Craig, Mr. Crapo, Mrs. Dole, Mr. Enzi, Mr. Graham, Mr. Inhofe, Mr. 
Isakson, Mr. Martinez, Mr. Roberts, Mr. Vitter, Mr. Voinovich, Mr. 
Wicker, and Mr. Sununu) and intended to be proposed to the bill S. 
3268, to amend the Commodity Exchange Act, to prevent excessive price 
speculation with respect to energy commodities, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5213. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5147 submitted by Mr. DeMint and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5214. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5153 submitted by Mr. Craig (for himself, Mr. Crapo, 
Mr. Bond, Mr. Vitter, and Mr. Inhofe) and intended to be proposed to 
the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.

[[Page S7414]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5215. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5154 submitted by Mr. Coburn and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5216. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5161 submitted by Mr. Cornyn and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5217. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5162 submitted by Mr. Warner (for himself and Mr. Webb) 
and intended to be proposed to the bill S. 3268, to amend the Commodity 
Exchange Act, to prevent excessive price speculation with respect to 
energy commodities, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5218. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5166 submitted by

[[Page S7415]]

Mr. Burr and intended to be proposed to the bill S. 3268, to amend the 
Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5219. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5171 submitted by Mr. Voinovich (for himself, Mr. 
Roberts, and Mr. Sununu) and intended to be proposed to the bill S. 
3268, to amend the Commodity Exchange Act, to prevent excessive price 
speculation with respect to energy commodities, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5220. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5181 submitted by Mr. Thune and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5221. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5090 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other

[[Page S7416]]

purposes; which was ordered to lie on the table; as follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5222. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5092 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5223. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5097 submitted by Mr. Coleman and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5224. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5108 submitted by Mr. McConnell and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5225. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5109 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike the period at the end of the amendment and insert a 
     period and the following:

     SEC. ___. CONSENT FOR NEW OIL AND GAS LEASING ACTIVITIES.

       Notwithstanding any other provision of law, no new offshore 
     oil and gas leasing, preleasing, or related activity may 
     commence in any State--
       (1)(A) in the waters of which offshore oil and gas 
     preleasing, leasing, and related activity has, as of the date 
     of enactment of this Act, never been permitted; or
       (B) all or a portion of the waters of which are subject to 
     any moratorium on oil and gas preleasing, leasing, and 
     related activity described in section 104 or 105 of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2118), regardless of whether any preleasing, leasing, or 
     related activity is ongoing in the waters of the State as of 
     the date of enactment of this Act; and
       (2) without the consent of each other State the waters of 
     which are located within 100 miles of the waters of the State 
     in which the new offshore oil and gas preleasing, leasing, or 
     related activity is proposed to occur.
                                 ______
                                 
  SA 5226. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5090 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5227. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5092 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect

[[Page S7417]]

to energy commodities, and for other purposes; which was ordered to lie 
on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5228. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5097 submitted by Mr. Coleman and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5229. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5108 submitted by Mr. McConnell and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5230. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5109 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5231. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5110 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other

[[Page S7418]]

purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5232. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5116 submitted by Mr. Domenici and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5233. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5121 submitted by Mr. Bond and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5234. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5123 submitted by Mr. Bond and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5235. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5132 submitted by Ms. Landrieu and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:


[[Page S7419]]


       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5236. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5137 submitted by Mr. Coleman (for himself, Mr. 
Domenici, Mrs. Hutchison, Mr. McConnell, Mr. Alexander, Mr. Allard, Mr. 
Bond, Mr. Brownback, Mr. Bunning, Mr. Burr, Mr. Cochran, Mr. Cornyn, 
Mr. Craig, Mr. Crapo, Mrs. Dole, Mr. Enzi, Mr. Graham, Mr. Inhofe, Mr. 
Isakson, Mr. Martinez, Mr. Roberts, Mr. Vitter, Mr. Voinovich, Mr. 
Wicker, and Mr. Sununu) and intended to be proposed to the bill S. 
3268, to amend the Commodity Exchange Act, to prevent excessive price 
speculation with respect to energy commodities, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5237. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5147 submitted by Mr. DeMint and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5238. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5153 submitted by Mr. Craig (for himself, Mr. Crapo, 
Mr. Bond, Mr. Vitter, and Mr. Inhofe) and intended to be proposed to 
the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).

[[Page S7420]]

                                 ______
                                 
  SA 5239. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5154 submitted by Mr. Coburn and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5240. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5161 submitted by Mr. Cornyn and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5241. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5161 submitted by Mr. Cornyn and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5242. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5166 submitted by Mr. Burr and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5243. Mr. MENENDEZ submitted an amendment intended to be proposed

[[Page S7421]]

to amendment SA 5171 submitted by Mr. Voinovich (for himself, Mr. 
Roberts, and Mr. Sununu) and intended to be proposed to the bill S. 
3268, to amend the Commodity Exchange Act, to prevent excessive price 
speculation with respect to energy commodities, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5244. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5181 submitted by Mr. Thune and intended to be proposed 
to the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ISSUANCE OF NEW LEASES.

       (a) Definitions.--In this section:
       (1) 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.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Leases.--Effective beginning on the date of 
     promulgation of regulations under subsection (c), the 
     Secretary shall not issue any new lease that authorizes the 
     exploration for or production of oil or natural gas under 
     section 17 of the Mineral Leasing Act (33 U.S.C. 226), the 
     Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
     seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 
     1331 et seq.) to a person unless the person--
       (1) certifies for each existing lease under those Acts for 
     the production of oil or gas with respect to which the person 
     is a lessee, that the person has diligently developed the 
     Federal land that is subject to the lease in order to produce 
     oil or natural gas or is producing oil or natural gas from 
     the land; or
       (2) has relinquished all Federal oil and gas leases under 
     which oil and gas is not being diligently developed.
       (c) Diligent Development.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that define ``diligently developed'' for purposes 
     of this section.
       (2) Regulations.--The regulations shall--
       (A) include benchmarks for oil and gas development that 
     will ensure that leaseholders produce oil and gas from each 
     lease within the original term of the lease; and
       (B) require each leaseholder to submit to the Secretary a 
     diligent development plan demonstrating how the lessee will 
     meet the benchmarks.
       (d) Failure To Comply With Requirements.--Any person that 
     fails to comply with this section (including any regulation 
     or order issued under this section) shall be liable for a 
     civil penalty under the terms and conditions of section 109 
     of the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1719).
                                 ______
                                 
  SA 5245. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 5092 submitted by Mr. Vitter and intended to be 
proposed to the bill S. 3268, to amend the Commodity Exchange Act, to 
prevent excessive price speculation with respect to energy commodities, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

     SEC. ___. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) 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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (9) as 
     paragraph (10) and by inserting after paragraph (8) the 
     following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income' 
     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) of such Code 
     (relating to application to individuals) is amended by 
     striking ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
                                 ______
                                 
  SA 5246. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 5135 submitted by Mr. Bingaman (for himself, Mr. Reid, 
Mr. Schumer, Mr. Salazar, Mr. Dorgan, Mr. Durbin, Mr. Kerry, Ms. 
Stabenow, Mr. Whitehouse, Mrs. Clinton, Mrs. Murray, Mr. Lieberman, Mr. 
Nelson of Florida, and Ms. Klobuchar) and intended to be proposed to 
the bill S. 3268, to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 92, after line 23, insert the following:

                        TITLE V--TAX PROVISIONS

     SEC. 501. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.

                Subtitle A--Energy Production Incentives

                  PART I--RENEWABLE ENERGY INCENTIVES

     SEC. 511. RENEWABLE ENERGY CREDIT.

       (a) Extension of Credit.--
       (1) 1-year extension for wind facilities.--Paragraph (1) of 
     section 45(d) is amended by striking ``January 1, 2009'' and 
     inserting ``January 1, 2010''.
       (2) 3-year extension for certain other facilities.--Each of 
     the following provisions of section 45(d) is amended by 
     striking ``January 1, 2009'' and inserting ``January 1, 
     2012'':
       (A) Clauses (i) and (ii) of paragraph (2)(A).
       (B) Clauses (i)(I) and (ii) of paragraph (3)(A).
       (C) Paragraph (4).

[[Page S7422]]

       (D) Paragraph (5).
       (E) Paragraph (6).
       (F) Paragraph (7).
       (G) Subparagraphs (A) and (B) of paragraph (9).
       (b) Modification of Credit Phaseout.--
       (1) Repeal of phaseout.--Subsection (b) of section 45 is 
     amended--
       (A) by striking paragraph (1), and
       (B) by striking ``the 8 cent amount in paragraph (1),'' in 
     paragraph (2) thereof.
       (2) Limitation based on investment in facility.--Subsection 
     (b) of section 45 is amended by inserting before paragraph 
     (2) the following new paragraph:
       ``(1) Limitation based on investment in facility.--
       ``(A) In general.--In the case of any qualified facility 
     originally placed in service after December 31, 2009, the 
     amount of the credit determined under subsection (a) for any 
     taxable year with respect to electricity produced at such 
     facility shall not exceed the product of--
       ``(i) the applicable percentage with respect to such 
     facility, multiplied by
       ``(ii) the eligible basis of such facility.
       ``(B) Carryforward of unused limitation and excess 
     credit.--
       ``(i) Unused limitation.--If the limitation imposed under 
     subparagraph (A) with respect to any facility for any taxable 
     year exceeds the prelimitation credit for such facility for 
     such taxable year, the limitation imposed under subparagraph 
     (A) with respect to such facility for the succeeding taxable 
     year shall be increased by the amount of such excess.
       ``(ii) Excess credit.--If the prelimitation credit with 
     respect to any facility for any taxable year exceeds the 
     limitation imposed under subparagraph (A) with respect to 
     such facility for such taxable year, the credit determined 
     under subsection (a) with respect to such facility for the 
     succeeding taxable year (determined before the application of 
     subparagraph (A) for such succeeding taxable year) shall be 
     increased by the amount of such excess. With respect to any 
     facility, no amount may be carried forward under this clause 
     to any taxable year beginning after the 10-year period 
     described in subsection (a)(2)(A)(ii) with respect to such 
     facility.
       ``(iii) Prelimitation credit.--The term `prelimitation 
     credit' with respect to any facility for a taxable year means 
     the credit determined under subsection (a) with respect to 
     such facility for such taxable year, determined without 
     regard to subparagraph (A) and after taking into account any 
     increase for such taxable year under clause (ii).
       ``(C) Applicable percentage.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable percentage' means, 
     with respect to any facility, the appropriate percentage 
     prescribed by the Secretary for the month in which such 
     facility is originally placed in service.
       ``(ii) Method of prescribing applicable percentages.--The 
     applicable percentages prescribed by the Secretary for any 
     month under clause (i) shall be percentages which yield over 
     a 10-year period amounts of limitation under subparagraph (A) 
     which have a present value equal to 35 percent of the 
     eligible basis of the facility.
       ``(iii) Method of discounting.--The present value under 
     clause (ii) shall be determined--

       ``(I) as of the last day of the 1st year of the 10-year 
     period referred to in clause (ii),
       ``(II) by using a discount rate equal to the greater of 110 
     percent of the Federal long-term rate as in effect under 
     section 1274(d) for the month preceding the month for which 
     the applicable percentage is being prescribed, or 4.5 
     percent, and
       ``(III) by taking into account the limitation under 
     subparagraph (A) for any year on the last day of such year.

       ``(D) Eligible basis.--For purposes of this paragraph--
       ``(i) In general.--The term `eligible basis' means, with 
     respect to any facility, the sum of--

       ``(I) the basis of such facility determined as of the time 
     that such facility is originally placed in service, and
       ``(II) the portion of the basis of any shared qualified 
     property which is properly allocable to such facility under 
     clause (ii).

       ``(ii) Rules for allocation.--For purposes of subclause 
     (II) of clause (i), the basis of shared qualified property 
     shall be allocated among all qualified facilities which are 
     projected to be placed in service and which require 
     utilization of such property in proportion to projected 
     generation from such facilities.
       ``(iii) Shared qualified property.--For purposes of this 
     paragraph, the term `shared qualified property' means, with 
     respect to any facility, any property described in section 
     168(e)(3)(B)(vi)--

       ``(I) which a qualified facility will require for 
     utilization of such facility, and
       ``(II) which is not a qualified facility.

       ``(iv) Special rule relating to geothermal facilities.--In 
     the case of any qualified facility using geothermal energy to 
     produce electricity, the basis of such facility for purposes 
     of this paragraph shall be determined as though intangible 
     drilling and development costs described in section 263(c) 
     were capitalized rather than expensed.
       ``(E) Special rule for first and last year of credit 
     period.--In the case of any taxable year any portion of which 
     is not within the 10-year period described in subsection 
     (a)(2)(A)(ii) with respect to any facility, the amount of the 
     limitation under subparagraph (A) with respect to such 
     facility shall be reduced by an amount which bears the same 
     ratio to the amount of such limitation (determined without 
     regard to this subparagraph) as such portion of the taxable 
     year which is not within such period bears to the entire 
     taxable year.
       ``(F) Election to treat all facilities placed in service in 
     a year as 1 facility.--At the election of the taxpayer, all 
     qualified facilities which are part of the same project and 
     which are placed in service during the same calendar year 
     shall be treated for purposes of this section as 1 facility 
     which is placed in service at the mid-point of such year or 
     the first day of the following calendar year.''.
       (c) Trash Facility Clarification.--Paragraph (7) of section 
     45(d) is amended--
       (1) by striking ``facility which burns'' and inserting 
     ``facility (other than a facility described in paragraph (6)) 
     which uses'', and
       (2) by striking ``combustion''.
       (d) Expansion of Biomass Facilities.--
       (1) Open-loop biomass facilities.--Paragraph (3) of section 
     45(d) is amended by redesignating subparagraph (B) as 
     subparagraph (C) and by inserting after subparagraph (A) the 
     following new subparagraph:
       ``(B) Expansion of facility.--Such term shall include a new 
     unit placed in service after the date of the enactment of 
     this subparagraph in connection with a facility described in 
     subparagraph (A), but only to the extent of the increased 
     amount of electricity produced at the facility by reason of 
     such new unit.''.
       (2) Closed-loop biomass facilities.--Paragraph (2) of 
     section 45(d) is amended by redesignating subparagraph (B) as 
     subparagraph (C) and inserting after subparagraph (A) the 
     following new subparagraph:
       ``(B) Expansion of facility.--Such term shall include a new 
     unit placed in service after the date of the enactment of 
     this subparagraph in connection with a facility described in 
     subparagraph (A)(i), but only to the extent of the increased 
     amount of electricity produced at the facility by reason of 
     such new unit.''.
       (e) Sales of Net Electricity to Regulated Public Utilities 
     Treated as Sales to Unrelated Persons.--Paragraph (4) of 
     section 45(e) is amended by adding at the end the following 
     new sentence: ``The net amount of electricity sold by any 
     taxpayer to a regulated public utility (as defined in section 
     7701(a)(33)) shall be treated as sold to an unrelated 
     person.''.
       (f) Modification of Rules for Hydropower Production.--
     Subparagraph (C) of section 45(c)(8) is amended to read as 
     follows:
       ``(C) Nonhydroelectric dam.--For purposes of subparagraph 
     (A), a facility is described in this subparagraph if--
       ``(i) the hydroelectric project installed on the 
     nonhydroelectric dam is licensed by the Federal Energy 
     Regulatory Commission and meets all other applicable 
     environmental, licensing, and regulatory requirements,
       ``(ii) the nonhydroelectric dam was placed in service 
     before the date of the enactment of this paragraph and 
     operated for flood control, navigation, or water supply 
     purposes and did not produce hydroelectric power on the date 
     of the enactment of this paragraph, and
       ``(iii) the hydroelectric project is operated so that the 
     water surface elevation at any given location and time that 
     would have occurred in the absence of the hydroelectric 
     project is maintained, subject to any license requirements 
     imposed under applicable law that change the water surface 
     elevation for the purpose of improving environmental quality 
     of the affected waterway.
     The Secretary, in consultation with the Federal Energy 
     Regulatory Commission, shall certify if a hydroelectric 
     project licensed at a nonhydroelectric dam meets the criteria 
     in clause (iii). Nothing in this section shall affect the 
     standards under which the Federal Energy Regulatory 
     Commission issues licenses for and regulates hydropower 
     projects under part I of the Federal Power Act.''.
       (g) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to property originally placed in service after December 31, 
     2008.
       (2) Repeal of credit phaseout.--The amendments made by 
     subsection (b)(1) shall apply to taxable years ending after 
     December 31, 2008.
       (3) Limitation based on investment in facility.--The 
     amendment made by subsection (b)(2) shall apply to property 
     originally placed in service after December 31, 2009.
       (4) Trash facility clarification; sales to related 
     regulated public utilities.--The amendments made by 
     subsections (c) and (e) shall apply to electricity produced 
     and sold after the date of the enactment of this Act.
       (5) Expansion of biomass facilities.--The amendments made 
     by subsection (d) shall apply to property placed in service 
     after the date of the enactment of this Act.

     SEC. 512. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM 
                   MARINE RENEWABLES.

       (a) In General.--Paragraph (1) of section 45(c) is amended 
     by striking ``and'' at the end of subparagraph (G), by 
     striking the period at the end of subparagraph (H) and 
     inserting ``, and'', and by adding at the end the following 
     new subparagraph:
       ``(I) marine and hydrokinetic renewable energy.''.
       (b) Marine Renewables.--Subsection (c) of section 45 is 
     amended by adding at the end the following new paragraph:

[[Page S7423]]

       ``(10) Marine and hydrokinetic renewable energy.--
       ``(A) In general.--The term `marine and hydrokinetic 
     renewable energy' means energy derived from--
       ``(i) waves, tides, and currents in oceans, estuaries, and 
     tidal areas,
       ``(ii) free flowing water in rivers, lakes, and streams,
       ``(iii) free flowing water in an irrigation system, canal, 
     or other man-made channel, including projects that utilize 
     nonmechanical structures to accelerate the flow of water for 
     electric power production purposes, or
       ``(iv) differentials in ocean temperature (ocean thermal 
     energy conversion).
       ``(B) Exceptions.--Such term shall not include any energy 
     which is derived from any source which utilizes a dam, 
     diversionary structure (except as provided in subparagraph 
     (A)(iii)), or impoundment for electric power production 
     purposes.''.
       (c) Definition of Facility.--Subsection (d) of section 45 
     is amended by adding at the end the following new paragraph:
       ``(11) Marine and hydrokinetic renewable energy 
     facilities.--In the case of a facility producing electricity 
     from marine and hydrokinetic renewable energy, the term 
     `qualified facility' means any facility owned by the 
     taxpayer--
       ``(A) which has a nameplate capacity rating of at least 150 
     kilowatts, and
       ``(B) which is originally placed in service on or after the 
     date of the enactment of this paragraph and before January 1, 
     2012.''.
       (d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is 
     amended by striking ``or (9)'' and inserting ``(9), or 
     (11)''.
       (e) Coordination With Small Irrigation Power.--Paragraph 
     (5) of section 45(d), as amended by section 101, is amended 
     by striking ``January 1, 2012'' and inserting ``the date of 
     the enactment of paragraph (11)''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to electricity produced and sold after the date 
     of the enactment of this Act, in taxable years ending after 
     such date.

     SEC. 513. ENERGY CREDIT.

       (a) Extension of Credit.--
       (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) are each amended by striking 
     ``January 1, 2009'' and inserting ``January 1, 2015''.
       (2) Fuel cell property.--Subparagraph (E) of section 
     48(c)(1) is amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2014''.
       (3) Microturbine property.--Subparagraph (E) of section 
     48(c)(2) is amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2014''.
       (b) Allowance of Energy Credit Against Alternative Minimum 
     Tax.--Subparagraph (B) of section 38(c)(4) is amended by 
     striking ``and'' at the end of clause (iii), by redesignating 
     clause (iv) as clause (v), and by inserting after clause 
     (iii) the following new clause:
       ``(iv) the credit determined under section 46 to the extent 
     that such credit is attributable to the energy credit 
     determined under section 48, and''.
       (c) Energy Credit for Combined Heat and Power System 
     Property.--
       (1) In general.--Section 48(a)(3)(A) (defining energy 
     property) is amended by striking ``or'' at the end of clause 
     (iii), by inserting ``or'' at the end of clause (iv), and by 
     adding at the end the following new clause:
       ``(v) combined heat and power system property,''.
       (2) Combined heat and power system property.--Section 48 is 
     amended by adding at the end the following new subsection:
       ``(d) Combined Heat and Power System Property.--For 
     purposes of subsection (a)(3)(A)(v)--
       ``(1) Combined heat and power system property.--The term 
     `combined heat and power system property' means property 
     comprising a system--
       ``(A) which uses the same energy source for the 
     simultaneous or sequential generation of electrical power, 
     mechanical shaft power, or both, in combination with the 
     generation of steam or other forms of useful thermal energy 
     (including heating and cooling applications),
       ``(B) which produces--
       ``(i) at least 20 percent of its total useful energy in the 
     form of thermal energy which is not used to produce 
     electrical or mechanical power (or combination thereof), and
       ``(ii) at least 20 percent of its total useful energy in 
     the form of electrical or mechanical power (or combination 
     thereof),
       ``(C) the energy efficiency percentage of which exceeds 60 
     percent, and
       ``(D) which is placed in service before January 1, 2015.
       ``(2) Limitation.--
       ``(A) In general.--In the case of combined heat and power 
     system property with an electrical capacity in excess of the 
     applicable capacity placed in service during the taxable 
     year, the credit under subsection (a)(1) (determined without 
     regard to this paragraph) for such year shall be equal to the 
     amount which bears the same ratio to such credit as the 
     applicable capacity bears to the capacity of such property.
       ``(B) Applicable capacity.--For purposes of subparagraph 
     (A), the term `applicable capacity' means 15 megawatts or a 
     mechanical energy capacity of more than 20,000 horsepower or 
     an equivalent combination of electrical and mechanical energy 
     capacities.
       ``(C) Maximum capacity.--The term `combined heat and power 
     system property' shall not include any property comprising a 
     system if such system has a capacity in excess of 50 
     megawatts or a mechanical energy capacity in excess of 67,000 
     horsepower or an equivalent combination of electrical and 
     mechanical energy capacities.
       ``(3) Special rules.--
       ``(A) Energy efficiency percentage.--For purposes of this 
     subsection, the energy efficiency percentage of a system is 
     the fraction--
       ``(i) the numerator of which is the total useful 
     electrical, thermal, and mechanical power produced by the 
     system at normal operating rates, and expected to be consumed 
     in its normal application, and
       ``(ii) the denominator of which is the lower heating value 
     of the fuel sources for the system.
       ``(B) Determinations made on btu basis.--The energy 
     efficiency percentage and the percentages under paragraph 
     (1)(B) shall be determined on a Btu basis.
       ``(C) Input and output property not included.--The term 
     `combined heat and power system property' does not include 
     property used to transport the energy source to the facility 
     or to distribute energy produced by the facility.
       ``(4) Systems using biomass.--If a system is designed to 
     use biomass (within the meaning of paragraphs (2) and (3) of 
     section 45(c) without regard to the last sentence of 
     paragraph (3)(A)) for at least 90 percent of the energy 
     source--
       ``(A) paragraph (1)(C) shall not apply, but
       ``(B) the amount of credit determined under subsection (a) 
     with respect to such system shall not exceed the amount which 
     bears the same ratio to such amount of credit (determined 
     without regard to this paragraph) as the energy efficiency 
     percentage of such system bears to 60 percent.''.
       (d) Increase of Credit Limitation for Fuel Cell Property.--
     Subparagraph (B) of section 48(c)(1) is amended by striking 
     ``$500'' and inserting ``$1,500''.
       (e) Public Utility Property Taken Into Account.--
       (1) In general.--Paragraph (3) of section 48(a) is amended 
     by striking the second sentence thereof.
       (2) Conforming amendments.--
       (A) Paragraph (1) of section 48(c) is amended by striking 
     subparagraph (D) and redesignating subparagraph (E) as 
     subparagraph (D).
       (B) Paragraph (2) of section 48(c) is amended by striking 
     subparagraph (D) and redesignating subparagraph (E) as 
     subparagraph (D).
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall take 
     effect on the date of the enactment of this Act.
       (2) Allowance against alternative minimum tax.--The 
     amendments made by subsection (b) shall apply to credits 
     determined under section 46 of the Internal Revenue Code of 
     1986 in taxable years beginning after the date of the 
     enactment of this Act and to carrybacks of such credits.
       (3) Combined heat and power and fuel cell property.--The 
     amendments made by subsections (c) and (d) shall apply to 
     periods after the date of the enactment of this Act, in 
     taxable years ending after such date, under rules similar to 
     the rules of section 48(m) of the Internal Revenue Code of 
     1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).
       (4)  Public utility property.--The amendments made by 
     subsection (e) shall apply to periods after February 13, 
     2008, in taxable years ending after such date, under rules 
     similar to the rules of section 48(m) of the Internal Revenue 
     Code of 1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).

     SEC. 514. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

       (a) Extension.--Section 25D(g) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2014''.
       (b) Maximum Credit for Solar Electric Property.--
       (1) In general.--Section 25D(b)(1)(A) is amended by 
     striking ``$2,000'' and inserting ``$4,000''.
       (2) Conforming amendment.--Section 25D(e)(4)(A)(i) is 
     amended by striking ``$6,667'' and inserting ``$13,333''.
       (c) Credit for Residential Wind Property.--
       (1) In general.--Section 25D(a) is amended by striking 
     ``and'' at the end of paragraph (2), by striking the period 
     at the end of paragraph (3) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(4) 30 percent of the qualified small wind energy 
     property expenditures made by the taxpayer during such 
     year.''.
       (2) Limitation.--Section 25D(b)(1) is amended by striking 
     ``and'' at the end of subparagraph (B), by striking the 
     period at the end of subparagraph (C) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(D) $500 with respect to each half kilowatt of capacity 
     (not to exceed $4,000) of wind turbines for which qualified 
     small wind energy property expenditures are made.''.
       (3) Qualified small wind energy property expenditures.--
       (A) In general.--Section 25D(d) is amended by adding at the 
     end the following new paragraph:
       ``(4) Qualified small wind energy property expenditure.--
     The term `qualified

[[Page S7424]]

     small wind energy property expenditure' means an expenditure 
     for property which uses a wind turbine to generate 
     electricity for use in connection with a dwelling unit 
     located in the United States and used as a residence by the 
     taxpayer.''.
       (B) No double benefit.--Section 45(d)(1) is amended by 
     adding at the end the following new sentence: ``Such term 
     shall not include any facility with respect to which any 
     qualified small wind energy property expenditure (as defined 
     in subsection (d)(4) of section 25D) is taken into account in 
     determining the credit under such section.''.
       (4) Maximum expenditures in case of joint occupancy.--
     Section 25D(e)(4)(A) is amended by striking ``and'' at the 
     end of clause (ii), by striking the period at the end of 
     clause (iii) and inserting ``, and'', and by adding at the 
     end the following new clause:
       ``(iv) $1,667 in the case of each half kilowatt of capacity 
     (not to exceed $13,333) of wind turbines for which qualified 
     small wind energy property expenditures are made.''.
       (d) Credit for Geothermal Heat pump Systems.--
       (1) In general.--Section 25D(a), as amended by subsection 
     (c), is amended by striking ``and'' at the end of paragraph 
     (3), by striking the period at the end of paragraph (4) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(5) 30 percent of the qualified geothermal heat pump 
     property expenditures made by the taxpayer during such 
     year.''.
       (2) Limitation.--Section 25D(b)(1), as amended by 
     subsection (c), is amended by striking ``and'' at the end of 
     subparagraph (C), by striking the period at the end of 
     subparagraph (D) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(E) $2,000 with respect to any qualified geothermal heat 
     pump property expenditures.''.
       (3) Qualified geothermal heat pump property expenditure.--
     Section 25D(d), as amended by subsection (c), is amended by 
     adding at the end the following new paragraph:
       ``(5) Qualified geothermal heat pump property 
     expenditure.--
       ``(A) In general.--The term `qualified geothermal heat pump 
     property expenditure' means an expenditure for qualified 
     geothermal heat pump property installed on or in connection 
     with a dwelling unit located in the United States and used as 
     a residence by the taxpayer.
       ``(B) Qualified geothermal heat pump property.--The term 
     `qualified geothermal heat pump property' means any equipment 
     which--
       ``(i) uses the ground or ground water as a thermal energy 
     source to heat the dwelling unit referred to in subparagraph 
     (A) or as a thermal energy sink to cool such dwelling unit, 
     and
       ``(ii) meets the requirements of the Energy Star program 
     which are in effect at the time that the expenditure for such 
     equipment is made.''.
       (4) Maximum expenditures in case of joint occupancy.--
     Section 25D(e)(4)(A), as amended by subsection (c), is 
     amended by striking ``and'' at the end of clause (iii), by 
     striking the period at the end of clause (iv) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(v) $6,667 in the case of any qualified geothermal heat 
     pump property expenditures.''.
       (e) Credit Allowed Against Alternative Minimum Tax.--
       (1) In general.--Subsection (c) of section 25D is amended 
     to read as follows:
       ``(c) Limitation Based on Amount of Tax; Carryforward of 
     Unused Credit.--
       ``(1) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for the taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section) and section 27 for the taxable 
     year.
       ``(2) Carryforward of unused credit.--
       ``(A) Rule for years in which all personal credits allowed 
     against regular and alternative minimum tax.--In the case of 
     a taxable year to which section 26(a)(2) applies, if the 
     credit allowable under subsection (a) exceeds the limitation 
     imposed by section 26(a)(2) for such taxable year reduced by 
     the sum of the credits allowable under this subpart (other 
     than this section), such excess shall be carried to the 
     succeeding taxable year and added to the credit allowable 
     under subsection (a) for such succeeding taxable year.
       ``(B) Rule for other years.--In the case of a taxable year 
     to which section 26(a)(2) does not apply, if the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such succeeding 
     taxable year.''.
       (2) Conforming amendments.--
       (A) Section 23(b)(4)(B) is amended by inserting ``and 
     section 25D'' after ``this section''.
       (B) Section 24(b)(3)(B) is amended by striking ``and 25B'' 
     and inserting ``, 25B, and 25D''.
       (C) Section 25B(g)(2) is amended by striking ``section 23'' 
     and inserting ``sections 23 and 25D''.
       (D) Section 26(a)(1) is amended by striking ``and 25B'' and 
     inserting ``25B, and 25D''.
       (f) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2007.
       (2) Application of egtrra sunset.--The amendments made by 
     subparagraphs (A) and (B) of subsection (e)(2) shall be 
     subject to title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 in the same manner as the 
     provisions of such Act to which such amendments relate.

     SEC. 515. SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC 
                   RESTRUCTURING POLICY.

       (a) Extension for Qualified Electric Utilities.--
       (1) In general.--Paragraph (3) of section 451(i) is amended 
     by inserting ``(before January 1, 2010, in the case of a 
     qualified electric utility)'' after ``January 1, 2008''.
       (2) Qualified electric utility.--Subsection (i) of section 
     451 is amended by redesignating paragraphs (6) through (10) 
     as paragraphs (7) through (11), respectively, and by 
     inserting after paragraph (5) the following new paragraph:
       ``(6) Qualified electric utility.--For purposes of this 
     subsection, the term `qualified electric utility' means a 
     person that, as of the date of the qualifying electric 
     transmission transaction, is vertically integrated, in that 
     it is both--
       ``(A) a transmitting utility (as defined in section 3(23) 
     of the Federal Power Act (16 U.S.C. 796(23))) with respect to 
     the transmission facilities to which the election under this 
     subsection applies, and
       ``(B) an electric utility (as defined in section 3(22) of 
     the Federal Power Act (16 U.S.C. 796(22))).''.
       (b) Extension of Period for Transfer of Operational Control 
     Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is 
     amended by striking ``December 31, 2007'' and inserting ``the 
     date which is 4 years after the close of the taxable year in 
     which the transaction occurs''.
       (c) Property Located Outside the United States Not Treated 
     as Exempt Utility Property.--Paragraph (5) of section 451(i) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) Exception for property located outside the united 
     states.--The term `exempt utility property' shall not include 
     any property which is located outside the United States.''.
       (d) Effective Dates.--
       (1) Extension.--The amendments made by subsection (a) shall 
     apply to transactions after December 31, 2007.
       (2) Transfers of operational control.--The amendment made 
     by subsection (b) shall take effect as if included in section 
     909 of the American Jobs Creation Act of 2004.
       (3) Exception for property located outside the united 
     states.--The amendment made by subsection (c) shall apply to 
     transactions after the date of the enactment of this Act.

     SEC. 516. NEW CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Subpart I of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS.

       ``(a) New Clean Renewable Energy Bond.--For purposes of 
     this subpart, the term `new clean renewable energy bond' 
     means any bond issued as part of an issue if--
       ``(1) 100 percent of the available project proceeds of such 
     issue are to be used for capital expenditures incurred by 
     governmental bodies, public power providers, or cooperative 
     electric companies for one or more qualified renewable energy 
     facilities,
       ``(2) the bond is issued by a qualified issuer, and
       ``(3) the issuer designates such bond for purposes of this 
     section.
       ``(b) Reduced Credit Amount.--The annual credit determined 
     under section 54A(b) with respect to any new clean renewable 
     energy bond shall be 70 percent of the amount so determined 
     without regard to this subsection.
       ``(c) Limitation on Amount of Bonds Designated.--
       ``(1) In general.--The maximum aggregate face amount of 
     bonds which may be designated under subsection (a) by any 
     issuer shall not exceed the limitation amount allocated under 
     this subsection to such issuer.
       ``(2) National limitation on amount of bonds designated.--
     There is a national new clean renewable energy bond 
     limitation of $2,000,000,000 which shall be allocated by the 
     Secretary as provided in paragraph (3), except that--
       ``(A) not more than 33\1/3\ percent thereof may be 
     allocated to qualified projects of public power providers,
       ``(B) not more than 33\1/3\ percent thereof may be 
     allocated to qualified projects of governmental bodies, and
       ``(C) not more than 33\1/3\ percent thereof may be 
     allocated to qualified projects of cooperative electric 
     companies.
       ``(3) Method of allocation.--
       ``(A) Allocation among public power providers.--After the 
     Secretary determines the qualified projects of public power 
     providers which are appropriate for receiving an allocation 
     of the national new clean renewable energy bond limitation, 
     the Secretary shall, to the maximum extent practicable, make 
     allocations among such projects in such manner that the 
     amount allocated to each such project bears the same ratio to 
     the cost

[[Page S7425]]

     of such project as the limitation under paragraph (2)(A) 
     bears to the cost of all such projects.
       ``(B) Allocation among governmental bodies and cooperative 
     electric companies.--The Secretary shall make allocations of 
     the amount of the national new clean renewable energy bond 
     limitation described in paragraphs (2)(B) and (2)(C) among 
     qualified projects of governmental bodies and cooperative 
     electric companies, respectively, in such manner as the 
     Secretary determines appropriate.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified renewable energy facility.--The term 
     `qualified renewable energy facility' means a qualified 
     facility (as determined under section 45(d) without regard to 
     paragraphs (8) and (10) thereof and to any placed in service 
     date) owned by a public power provider, a governmental body, 
     or a cooperative electric company.
       ``(2) Public power provider.--The term `public power 
     provider' means a State utility with a service obligation, as 
     such terms are defined in section 217 of the Federal Power 
     Act (as in effect on the date of the enactment of this 
     paragraph).
       ``(3) Governmental body.--The term `governmental body' 
     means any State or Indian tribal government, or any political 
     subdivision thereof.
       ``(4) Cooperative electric company.--The term `cooperative 
     electric company' means a mutual or cooperative electric 
     company described in section 501(c)(12) or section 
     1381(a)(2)(C).
       ``(5) Clean renewable energy bond lender.--The term `clean 
     renewable energy bond lender' means a lender which is a 
     cooperative which is owned by, or has outstanding loans to, 
     100 or more cooperative electric companies and is in 
     existence on February 1, 2002, and shall include any 
     affiliated entity which is controlled by such lender.
       ``(6) Qualified issuer.--The term `qualified issuer' means 
     a public power provider, a cooperative electric company, a 
     governmental body, a clean renewable energy bond lender, or a 
     not-for-profit electric utility which has received a loan or 
     loan guarantee under the Rural Electrification Act.''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d) is amended to read as 
     follows:
       ``(1) Qualified tax credit bond.--The term `qualified tax 
     credit bond' means--
       ``(A) a qualified forestry conservation bond, or
       ``(B) a new clean renewable energy bond,
     which is part of an issue that meets requirements of 
     paragraphs (2), (3), (4), (5), and (6).''.
       (2) Subparagraph (C) of section 54A(d)(2) is amended to 
     read as follows:
       ``(C) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means--
       ``(i) in the case of a qualified forestry conservation 
     bond, a purpose specified in section 54B(e), and
       ``(ii) in the case of a new clean renewable energy bond, a 
     purpose specified in section 54C(a)(1).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 54C. Qualified clean renewable energy bonds.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

                 PART II--CARBON MITIGATION PROVISIONS

     SEC. 521. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT 
                   INVESTMENT CREDIT.

       (a) Modification of Credit Amount.--Section 48A(a) is 
     amended by striking ``and'' at the end of paragraph (1), by 
     striking the period at the end of paragraph (2) and inserting 
     ``, and'', and by adding at the end the following new 
     paragraph:
       ``(3) 30 percent of the qualified investment for such 
     taxable year in the case of projects described in clause 
     (iii) of subsection (d)(3)(B).''.
       (b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A) 
     is amended by striking ``$1,300,000,000'' and inserting 
     ``$2,550,000,000''.
       (c) Authorization of Additional Projects.--
       (1) In general.--Subparagraph (B) of section 48A(d)(3) is 
     amended to read as follows:
       ``(B) Particular projects.--Of the dollar amount in 
     subparagraph (A), the Secretary is authorized to certify--
       ``(i) $800,000,000 for integrated gasification combined 
     cycle projects the application for which is submitted during 
     the period described in paragraph (2)(A)(i),
       ``(ii) $500,000,000 for projects which use other advanced 
     coal-based generation technologies the application for which 
     is submitted during the period described in paragraph 
     (2)(A)(i), and
       ``(iii) $1,250,000,000 for advanced coal-based generation 
     technology projects the application for which is submitted 
     during the period described in paragraph (2)(A)(ii).''.
       (2) Application period for additional projects.--
     Subparagraph (A) of section 48A(d)(2) is amended to read as 
     follows:
       ``(A) Application period.--Each applicant for certification 
     under this paragraph shall submit an application meeting the 
     requirements of subparagraph (B). An applicant may only 
     submit an application--
       ``(i) for an allocation from the dollar amount specified in 
     clause (i) or (ii) of paragraph (3)(B) during the 3-year 
     period beginning on the date the Secretary establishes the 
     program under paragraph (1), and
       ``(ii) for an allocation from the dollar amount specified 
     in paragraph (3)(B)(iii) during the 3-year period beginning 
     at the earlier of the termination of the period described in 
     clause (i) or the date prescribed by the Secretary.''.
       (3) Capture and sequestration of carbon dioxide emissions 
     requirement.--
       (A) In general.--Section 48A(e)(1) is amended by striking 
     ``and'' at the end of subparagraph (E), by striking the 
     period at the end of subparagraph (F) and inserting ``; 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(G) in the case of any project the application for which 
     is submitted during the period described in subsection 
     (d)(2)(A)(ii), the project includes equipment which separates 
     and sequesters at least 65 percent (70 percent in the case of 
     an application for reallocated credits under subsection 
     (d)(4)) of such project's total carbon dioxide emissions.''.
       (B) Highest priority for projects which sequester carbon 
     dioxide emissions.--Section 48A(e)(3) is amended by striking 
     ``and'' at the end of subparagraph (A)(iii), by striking the 
     period at the end of subparagraph (B)(iii) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(C) give highest priority to projects with the greatest 
     separation and sequestration percentage of total carbon 
     dioxide emissions.''.
       (C) Recapture of credit for failure to sequester.--Section 
     48A is amended by adding at the end the following new 
     subsection:
       ``(i) Recapture of Credit for Failure To Sequester.--The 
     Secretary shall provide for recapturing the benefit of any 
     credit allowable under subsection (a) with respect to any 
     project which fails to attain or maintain the separation and 
     sequestration requirements of subsection (e)(1)(G).''.
       (4) Additional priority for research partnerships.--Section 
     48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
       (A) by striking ``and'' at the end of clause (ii),
       (B) by redesignating clause (iii) as clause (iv), and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) applicant participants who have a research 
     partnership with an eligible educational institution (as 
     defined in section 529(e)(5)), and''.
       (5) Clerical amendment.--Section 48A(e)(3) is amended by 
     striking ``integrated gasification combined cycle'' in the 
     heading and inserting ``certain''.
       (d) Disclosure of Allocations.--Section 48A(d) is amended 
     by adding at the end the following new paragraph:
       ``(5) Disclosure of allocations.--The Secretary shall, upon 
     making a certification under this subsection or section 
     48B(d), publicly disclose the identity of the applicant and 
     the amount of the credit certified with respect to such 
     applicant.''.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to credits the application for which is submitted during the 
     period described in section 48A(d)(2)(A)(ii) of the Internal 
     Revenue Code of 1986 and which are allocated or reallocated 
     after the date of the enactment of this Act.
       (2) Disclosure of allocations.--The amendment made by 
     subsection (d) shall apply to certifications made after the 
     date of the enactment of this Act.
       (3) Clerical amendment.--The amendment made by subsection 
     (c)(5) shall take effect as if included in the amendment made 
     by section 1307(b) of the Energy Tax Incentives Act of 2005.

     SEC. 522. EXPANSION AND MODIFICATION OF COAL GASIFICATION 
                   INVESTMENT CREDIT.

       (a) Modification of Credit Amount.--Section 48B(a) is 
     amended by inserting ``(30 percent in the case of credits 
     allocated under subsection (d)(1)(B))'' after ``20 percent''.
       (b) Expansion of Aggregate Credits.--Section 48B(d)(1) is 
     amended by striking ``shall not exceed $350,000,000'' and all 
     that follows and inserting ``shall not exceed--
       ``(A) $350,000,000, plus
       ``(B) $250,000,000 for qualifying gasification projects 
     that include equipment which separates and sequesters at 
     least 75 percent of such project's total carbon dioxide 
     emissions.''.
       (c) Recapture of Credit for Failure To Sequester.--Section 
     48B is amended by adding at the end the following new 
     subsection:
       ``(f) Recapture of Credit for Failure To Sequester.--The 
     Secretary shall provide for recapturing the benefit of any 
     credit allowable under subsection (a) with respect to any 
     project which fails to attain or maintain the separation and 
     sequestration requirements for such project under subsection 
     (d)(1).''.
       (d) Selection Priorities.--Section 48B(d) is amended by 
     adding at the end the following new paragraph:
       ``(4) Selection priorities.--In determining which 
     qualifying gasification projects to certify under this 
     section, the Secretary shall--
       ``(A) give highest priority to projects with the greatest 
     separation and sequestration percentage of total carbon 
     dioxide emissions, and

[[Page S7426]]

       ``(B) give high priority to applicant participants who have 
     a research partnership with an eligible educational 
     institution (as defined in section 529(e)(5)).''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to credits described in section 48B(d)(1)(B) of 
     the Internal Revenue Code of 1986 which are allocated or 
     reallocated after the date of the enactment of this Act.

     SEC. 523. TEMPORARY INCREASE IN COAL EXCISE TAX.

       Paragraph (2) of section 4121(e) is amended--
       (1) by striking ``January 1, 2014'' in subparagraph (A) and 
     inserting ``December 31, 2018'', and
       (2) by striking ``January 1 after 1981'' in subparagraph 
     (B) and inserting ``December 31 after 2007''.

     SEC. 524. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO 
                   CERTAIN COAL PRODUCERS AND EXPORTERS.

       (a) Refund.--
       (1) Coal producers.--
       (A) In general.--Notwithstanding subsections (a)(1) and (c) 
     of section 6416 and section 6511 of the Internal Revenue Code 
     of 1986, if--
       (i) a coal producer establishes that such coal producer, or 
     a party related to such coal producer, exported coal produced 
     by such coal producer to a foreign country or shipped coal 
     produced by such coal producer to a possession of the United 
     States, or caused such coal to be exported or shipped, the 
     export or shipment of which was other than through an 
     exporter who meets the requirements of paragraph (2),
       (ii) such coal producer filed an excise tax return on or 
     after October 1, 1990, and on or before the date of the 
     enactment of this Act, and
       (iii) such coal producer files a claim for refund with the 
     Secretary not later than the close of the 30-day period 
     beginning on the date of the enactment of this Act,

     then the Secretary shall pay to such coal producer an amount 
     equal to the tax paid under section 4121 of such Code on such 
     coal exported or shipped by the coal producer or a party 
     related to such coal producer, or caused by the coal producer 
     or a party related to such coal producer to be exported or 
     shipped.
       (B) Special rules for certain taxpayers.--For purposes of 
     this section--
       (i) In general.--If a coal producer or a party related to a 
     coal producer has received a judgment described in clause 
     (iii), such coal producer shall be deemed to have established 
     the export of coal to a foreign country or shipment of coal 
     to a possession of the United States under subparagraph 
     (A)(i).
       (ii) Amount of payment.--If a taxpayer described in clause 
     (i) is entitled to a payment under subparagraph (A), the 
     amount of such payment shall be reduced by any amount paid 
     pursuant to the judgment described in clause (iii).
       (iii) Judgment described.--A judgment is described in this 
     subparagraph if such judgment--

       (I) is made by a court of competent jurisdiction within the 
     United States,
       (II) relates to the constitutionality of any tax paid on 
     exported coal under section 4121 of the Internal Revenue Code 
     of 1986, and
       (III) is in favor of the coal producer or the party related 
     to the coal producer.

       (2) Exporters.--Notwithstanding subsections (a)(1) and (c) 
     of section 6416 and section 6511 of the Internal Revenue Code 
     of 1986, and a judgment described in paragraph (1)(B)(iii) of 
     this subsection, if--
       (A) an exporter establishes that such exporter exported 
     coal to a foreign country or shipped coal to a possession of 
     the United States, or caused such coal to be so exported or 
     shipped,
       (B) such exporter filed a tax return on or after October 1, 
     1990, and on or before the date of the enactment of this Act, 
     and
       (C) such exporter files a claim for refund with the 
     Secretary not later than the close of the 30-day period 
     beginning on the date of the enactment of this Act,

     then the Secretary shall pay to such exporter an amount equal 
     to $0.825 per ton of such coal exported by the exporter or 
     caused to be exported or shipped, or caused to be exported or 
     shipped, by the exporter.
       (b) Limitations.--Subsection (a) shall not apply with 
     respect to exported coal if a settlement with the Federal 
     Government has been made with and accepted by, the coal 
     producer, a party related to such coal producer, or the 
     exporter, of such coal, as of the date that the claim is 
     filed under this section with respect to such exported coal. 
     For purposes of this subsection, the term ``settlement with 
     the Federal Government'' shall not include any settlement or 
     stipulation entered into as of the date of the enactment of 
     this Act, the terms of which contemplate a judgment 
     concerning which any party has reserved the right to file an 
     appeal, or has filed an appeal.
       (c) Subsequent Refund Prohibited.--No refund shall be made 
     under this section to the extent that a credit or refund of 
     such tax on such exported or shipped coal has been paid to 
     any person.
       (d) Definitions.--For purposes of this section--
       (1) Coal producer.--The term ``coal producer'' means the 
     person in whom is vested ownership of the coal immediately 
     after the coal is severed from the ground, without regard to 
     the existence of any contractual arrangement for the sale or 
     other disposition of the coal or the payment of any royalties 
     between the producer and third parties. The term includes any 
     person who extracts coal from coal waste refuse piles or from 
     the silt waste product which results from the wet washing (or 
     similar processing) of coal.
       (2) Exporter.--The term ``exporter'' means a person, other 
     than a coal producer, who does not have a contract, fee 
     arrangement, or any other agreement with a producer or seller 
     of such coal to export or ship such coal to a third party on 
     behalf of the producer or seller of such coal and--
       (A) is indicated in the shipper's export declaration or 
     other documentation as the exporter of record, or
       (B) actually exported such coal to a foreign country or 
     shipped such coal to a possession of the United States, or 
     caused such coal to be so exported or shipped.
       (3) Related party.--The term ``a party related to such coal 
     producer'' means a person who--
       (A) is related to such coal producer through any degree of 
     common management, stock ownership, or voting control,
       (B) is related (within the meaning of section 144(a)(3) of 
     the Internal Revenue Code of 1986) to such coal producer, or
       (C) has a contract, fee arrangement, or any other agreement 
     with such coal producer to sell such coal to a third party on 
     behalf of such coal producer.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Treasury or the Secretary's designee.
       (e) Timing of Refund.--With respect to any claim for refund 
     filed pursuant to this section, the Secretary shall determine 
     whether the requirements of this section are met not later 
     than 180 days after such claim is filed. If the Secretary 
     determines that the requirements of this section are met, the 
     claim for refund shall be paid not later than 180 days after 
     the Secretary makes such determination.
       (f) Interest.--Any refund paid pursuant to this section 
     shall be paid by the Secretary with interest from the date of 
     overpayment determined by using the overpayment rate and 
     method under section 6621 of the Internal Revenue Code of 
     1986.
       (g) Denial of Double Benefit.--The payment under subsection 
     (a) with respect to any coal shall not exceed--
       (1) in the case of a payment to a coal producer, the amount 
     of tax paid under section 4121 of the Internal Revenue Code 
     of 1986 with respect to such coal by such coal producer or a 
     party related to such coal producer, and
       (2) in the case of a payment to an exporter, an amount 
     equal to $0.825 per ton with respect to such coal exported by 
     the exporter or caused to be exported by the exporter.
       (h) Application of Section.--This section applies only to 
     claims on coal exported or shipped on or after October 1, 
     1990, through the date of the enactment of this Act.
       (i) Standing Not Conferred.--
       (1) Exporters.--With respect to exporters, this section 
     shall not confer standing upon an exporter to commence, or 
     intervene in, any judicial or administrative proceeding 
     concerning a claim for refund by a coal producer of any 
     Federal or State tax, fee, or royalty paid by the coal 
     producer.
       (2) Coal producers.--With respect to coal producers, this 
     section shall not confer standing upon a coal producer to 
     commence, or intervene in, any judicial or administrative 
     proceeding concerning a claim for refund by an exporter of 
     any Federal or State tax, fee, or royalty paid by the 
     producer and alleged to have been passed on to an exporter.

     SEC. 525. CARBON AUDIT OF THE TAX CODE.

       (a) Study.--The Secretary of the Treasury shall enter into 
     an agreement with the National Academy of Sciences to 
     undertake a comprehensive review of the Internal Revenue Code 
     of 1986 to identify the types of and specific tax provisions 
     that have the largest effects on carbon and other greenhouse 
     gas emissions and to estimate the magnitude of those effects.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the National Academy of Sciences shall 
     submit to Congress a report containing the results of study 
     authorized under this section.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,500,000 for 
     the period of fiscal years 2008 and 2009.

    Subtitle B--Transportation and Domestic Fuel Security Provisions

     SEC. 531. INCLUSION OF CELLULOSIC BIOFUEL IN BONUS 
                   DEPRECIATION FOR BIOMASS ETHANOL PLANT 
                   PROPERTY.

       (a) In General.--Paragraph (3) of section 168(l) is amended 
     to read as follows:
       ``(3) Cellulosic biofuel.--The term `cellulosic biofuel' 
     means any liquid fuel which is produced from any 
     lignocellulosic or hemicellulosic matter that is available on 
     a renewable or recurring basis.''.
       (b) Conforming Amendments.--Subsection (l) of section 168 
     is amended--
       (1) by striking ``cellulosic biomass ethanol'' each place 
     it appears and inserting ``cellulosic biofuel'',
       (2) by striking ``Cellulosic Biomass Ethanol'' in the 
     heading of such subsection and inserting ``Cellulosic 
     Biofuel'', and
       (3) by striking ``cellulosic biomass ethanol'' in the 
     heading of paragraph (2) thereof and inserting ``cellulosic 
     biofuel''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property

[[Page S7427]]

     placed in service after the date of the enactment of this 
     Act, in taxable years ending after such date.

     SEC. 532. CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

       (a) In General.--Sections 40A(g), 6426(c)(6), and 
     6427(e)(5)(B) are each amended by striking ``December 31, 
     2008'' and inserting ``December 31, 2009''.
       (b) Increase in Rate of Credit.--
       (1) Income tax credit.--Paragraphs (1)(A) and (2)(A) of 
     section 40A(b) are each amended by striking ``50 cents'' and 
     inserting ``$1.00''.
       (2) Excise tax credit.--Paragraph (2) of section 6426(c) is 
     amended to read as follows:
       ``(2) Applicable amount.--For purposes of this subsection, 
     the applicable amount is $1.00.''.
       (3) Conforming amendments.--
       (A) Subsection (b) of section 40A is amended by striking 
     paragraph (3) and by redesignating paragraphs (4) and (5) as 
     paragraphs (3) and (4), respectively.
       (B) Paragraph (2) of section 40A(f) is amended to read as 
     follows:
       ``(2) Exception.--Subsection (b)(4) shall not apply with 
     respect to renewable diesel.''.
       (C) Paragraphs (2) and (3) of section 40A(e) are each 
     amended by striking ``subsection (b)(5)(C)'' and inserting 
     ``subsection (b)(4)(C)''.
       (D) Clause (ii) of section 40A(d)(3)(C) is amended by 
     striking ``subsection (b)(5)(B)'' and inserting ``subsection 
     (b)(4)(B)''.
       (c) Uniform Treatment of Diesel Produced From Biomass.--
     Paragraph (3) of section 40A(f) is amended--
       (1) by striking ``diesel fuel'' and inserting ``liquid 
     fuel'',
       (2) by striking ``using a thermal depolymerization 
     process'', and
       (3) by striking ``or D396'' in subparagraph (B) and 
     inserting ``, D396, or other equivalent standard approved by 
     the Secretary''.
       (d) Coproduction of Renewable Diesel With Petroleum 
     Feedstock.--
       (1) In general.--Paragraph (3) of section 40A(f) (defining 
     renewable diesel) is amended by adding at the end the 
     following new sentence: ``Such term does not include any fuel 
     derived from coprocessing biomass with a feedstock which is 
     not biomass. For purposes of this paragraph, the term 
     `biomass' has the meaning given such term by section 
     45K(c)(3).''.
       (2) Conforming amendment.--Paragraph (3) of section 40A(f) 
     is amended by striking ``(as defined in section 45K(c)(3))''.
       (e) Eligibility of Certain Aviation Fuel.--Paragraph (3) of 
     section 40A(f) (defining renewable diesel) is amended by 
     adding at the end the following: ``The term `renewable 
     diesel' also means fuel derived from biomass which meets the 
     requirements of a Department of Defense specification for 
     military jet fuel or an American Society of Testing and 
     Materials specification for aviation turbine fuel.''.
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to fuel produced, and sold or used, after December 31, 2008.
       (2) Coproduction of renewable diesel with petroleum 
     feedstock.--The amendments made by subsection (d) shall apply 
     to fuel produced, and sold or used, after the date of the 
     enactment of this Act.

     SEC. 533. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO 
                   PROVIDE AN INCENTIVE FOR UNITED STATES 
                   PRODUCTION.

       (a) Alcohol Fuels Credit.--Paragraph (6) of section 40(d) 
     is amended to read as follows:
       ``(6) Limitation to alcohol with connection to the united 
     states.--No credit shall be determined under this section 
     with respect to any alcohol which is produced outside the 
     United States for use as a fuel outside the United States. 
     For purposes of this paragraph, the term `United States' 
     includes any possession of the United States.''.
       (b) Biodiesel Fuels Credit.--Subsection (d) of section 40A 
     is amended by adding at the end the following new paragraph:
       ``(5) Limitation to biodiesel with connection to the united 
     states.--No credit shall be determined under this section 
     with respect to any biodiesel which is produced outside the 
     United States for use as a fuel outside the United States. 
     For purposes of this paragraph, the term `United States' 
     includes any possession of the United States.''.
       (c) Excise Tax Credit.--
       (1) In general.--Section 6426 is amended by adding at the 
     end the following new subsection:
       ``(i) Limitation to Fuels With Connection to the United 
     States.--
       ``(1) Alcohol.--No credit shall be determined under this 
     section with respect to any alcohol which is produced outside 
     the United States for use as a fuel outside the United 
     States.
       ``(2) Biodiesel and alternative fuels.--No credit shall be 
     determined under this section with respect to any biodiesel 
     or alternative fuel which is produced outside the United 
     States for use as a fuel outside the United States.

     For purposes of this subsection, the term `United States' 
     includes any possession of the United States.''.
       (2) Conforming amendment.--Subsection (e) of section 6427 
     is amended by redesignating paragraph (5) as paragraph (6) 
     and by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) Limitation to fuels with connection to the united 
     states.--No amount shall be payable under paragraph (1) or 
     (2) with respect to any mixture or alternative fuel if credit 
     is not allowed with respect to such mixture or alternative 
     fuel by reason of section 6426(i).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to claims for credit or payment made on or after 
     May 15, 2008.

     SEC. 534. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
                   MOTOR VEHICLES.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
                   VEHICLES.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of the credit amounts 
     determined under subsection (b) with respect to each new 
     qualified plug-in electric drive motor vehicle placed in 
     service by the taxpayer during the taxable year.
       ``(b) Per Vehicle Dollar Limitation.--
       ``(1) In general.--The amount determined under this 
     subsection with respect to any new qualified plug-in electric 
     drive motor vehicle is the sum of the amounts determined 
     under paragraphs (2) and (3) with respect to such vehicle.
       ``(2) Base amount.--The amount determined under this 
     paragraph is $3,000.
       ``(3) Battery capacity.--In the case of a vehicle which 
     draws propulsion energy from a battery with not less than 5 
     kilowatt hours of capacity, the amount determined under this 
     paragraph is $200, plus $200 for each kilowatt hour of 
     capacity in excess of 5 kilowatt hours. The amount determined 
     under this paragraph shall not exceed $2,000.
       ``(c) 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.--
       ``(A) In general.--For purposes of this title, the credit 
     allowed under subsection (a) for any taxable year (determined 
     after application of paragraph (1)) shall be treated as a 
     credit allowable under subpart A for such taxable year.
       ``(B) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     (determined after application of paragraph (1)) shall not 
     exceed the excess of--
       ``(i) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(ii) the sum of the credits allowable under subpart A 
     (other than this section and sections 23 and 25D) and section 
     27 for the taxable year.
       ``(d) New Qualified Plug-In Electric Drive Motor Vehicle.--
     For purposes of this section--
       ``(1) In general.--The term `new qualified plug-in electric 
     drive motor vehicle' means a motor vehicle (as defined in 
     section 30(c)(2))--
       ``(A) the original use of which commences with the 
     taxpayer,
       ``(B) which is acquired for use or lease by the taxpayer 
     and not for resale,
       ``(C) which is made by a manufacturer,
       ``(D) which has a gross vehicle weight rating of less than 
     14,000 pounds,
       ``(E) which has received a certificate of conformity under 
     the Clean Air Act and meets or exceeds 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
       ``(F) which is propelled to a significant extent by an 
     electric motor which draws electricity from a battery which--
       ``(i) has a capacity of not less than 4 kilowatt hours, and
       ``(ii) is capable of being recharged from an external 
     source of electricity.
       ``(2) Exception.--The term `new qualified plug-in electric 
     drive motor vehicle' shall not include any vehicle which is 
     not a passenger automobile or light truck if such vehicle has 
     a gross vehicle weight rating of less than 8,500 pounds.
       ``(3) Other terms.--The terms `passenger automobile', 
     `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.).
       ``(4) Battery capacity.--The term `capacity' means, with 
     respect to any battery, the quantity of electricity which the 
     battery is capable of storing, expressed in kilowatt hours, 
     as measured from a 100 percent state of charge to a 0 percent 
     state of charge.
       ``(e) Limitation on Number of New Qualified Plug-In 
     Electric Drive Motor Vehicles Eligible for Credit.--
       ``(1) In general.--In the case of a new qualified plug-in 
     electric drive motor vehicle sold during the phaseout period, 
     only the applicable percentage of the credit otherwise 
     allowable under subsection (a) shall be allowed.
       ``(2) Phaseout period.--For purposes of this subsection, 
     the phaseout period is the period beginning with the second 
     calendar

[[Page S7428]]

     quarter following the calendar quarter which includes the 
     first date on which the number of new qualified plug-in 
     electric drive motor vehicles manufactured by the 
     manufacturer of the vehicle referred to in paragraph (1) sold 
     for use in the United States after the date of the enactment 
     of this section, is at least 60,000.
       ``(3) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is--
       ``(A) 50 percent for the first 2 calendar quarters of the 
     phaseout period,
       ``(B) 25 percent for the 3d and 4th calendar quarters of 
     the phaseout period, and
       ``(C) 0 percent for each calendar quarter thereafter.
       ``(4) Controlled groups.--Rules similar to the rules of 
     section 30B(f)(4) shall apply for purposes of this 
     subsection.
       ``(f) Special Rules.--
       ``(1) Basis reduction.--The basis of any property for which 
     a credit is allowable under subsection (a) shall be reduced 
     by the amount of such credit (determined without regard to 
     subsection (c)).
       ``(2) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit.
       ``(3) Property used outside united states, etc., not 
     qualified.--No credit shall be allowed 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 to not have this section apply to such vehicle.
       ``(5) Property used by tax-exempt entity; interaction with 
     air quality and motor vehicle safety standards.--Rules 
     similar to the rules of paragraphs (6) and (10) of section 
     30B(h) shall apply for purposes of this section.''.
       (b) Coordination With Alternative Motor Vehicle Credit.--
     Section 30B(d)(3) is amended by adding at the end the 
     following new subparagraph:
       ``(D) Exclusion of plug-in vehicles.--Any vehicle with 
     respect to which a credit is allowable under section 30D 
     (determined without regard to subsection (c) thereof) shall 
     not be taken into account under this section.''.
       (c) Credit Made Part of General Business Credit.--Section 
     38(b) is amended--
       (1) by striking ``and'' each place it appears at the end of 
     any paragraph,
       (2) by striking ``plus'' each place it appears at the end 
     of any paragraph,
       (3) by striking the period at the end of paragraph (32) and 
     inserting ``, plus'', and
       (4) by adding at the end the following new paragraph:
       ``(33) the portion of the new qualified plug-in electric 
     drive motor vehicle credit to which section 30D(c)(1) 
     applies.''.
       (d) Conforming Amendments.--
       (1)(A) Section 24(b)(3)(B), as amended by section 104, is 
     amended by striking ``and 25D'' and inserting ``25D, and 
     30D''.
       (B) Section 25(e)(1)(C)(ii) is amended by inserting 
     ``30D,'' after ``25D,''.
       (C) Section 25B(g)(2), as amended by section 104, is 
     amended by striking ``and 25D'' and inserting ``, 25D, and 
     30D''.
       (D) Section 26(a)(1), as amended by section 104, is amended 
     by striking ``and 25D'' and inserting ``25D, and 30D''.
       (E) Section 1400C(d)(2) is amended by striking ``and 25D'' 
     and inserting ``25D, and 30D''.
       (2) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (35), by striking the period at the end of 
     paragraph (36) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(37) to the extent provided in section 30D(f)(1).''.
       (3) Section 6501(m) is amended by inserting ``30D(f)(4),'' 
     after ``30C(e)(5),''.
       (4) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.

       (e) Treatment of Alternative Motor Vehicle Credit as a 
     Personal Credit.--
       (1) In general.--Paragraph (2) of section 30B(g) is amended 
     to read as follows:
       ``(2) Personal credit.--The credit allowed under subsection 
     (a) for any taxable year (after application of paragraph (1)) 
     shall be treated as a credit allowable under subpart A for 
     such taxable year.''.
       (2) Conforming amendments.--
       (A) Subparagraph (A) of section 30C(d)(2) is amended by 
     striking ``sections 27, 30, and 30B'' and inserting 
     ``sections 27 and 30''.
       (B) Paragraph (3) of section 55(c) is amended by striking 
     ``30B(g)(2),''.
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years beginning after December 31, 2008.
       (2) Treatment of alternative motor vehicle credit as 
     personal credit.--The amendments made by subsection (e) shall 
     apply to taxable years beginning after December 31, 2007.
       (g) Application of EGTRRA Sunset.--The amendment made by 
     subsection (d)(1)(A) shall be subject to title IX of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 in 
     the same manner as the provision of such Act to which such 
     amendment relates.

     SEC. 535. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION 
                   UNITS AND ADVANCED INSULATION.

       (a) In General.--Section 4053 is amended by adding at the 
     end the following new paragraphs:
       ``(9) Idling reduction device.--Any device or system of 
     devices which--
       ``(A) is designed to provide to a vehicle those services 
     (such as heat, air conditioning, or electricity) that would 
     otherwise require the operation of the main drive engine 
     while the vehicle is temporarily parked or remains stationary 
     using one or more devices affixed to a tractor, and
       ``(B) is determined by the Administrator of the 
     Environmental Protection Agency, in consultation with the 
     Secretary of Energy and the Secretary of Transportation, to 
     reduce idling of such vehicle at a motor vehicle rest stop or 
     other location where such vehicles are temporarily parked or 
     remain stationary.
       ``(10) Advanced insulation.--Any insulation that has an R 
     value of not less than R35 per inch.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to sales or installations after the date of the 
     enactment of this Act.

     SEC. 536. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.

       (a) In General.--Part I of subchapter Y of chapter 1 is 
     amended by redesignating section 1400L as section 1400K and 
     by adding at the end the following new section:

     ``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.

       ``(a) In General.--In the case of a New York Liberty Zone 
     governmental unit, there shall be allowed as a credit against 
     any taxes imposed for any payroll period by section 3402 for 
     which such governmental unit is liable under section 3403 an 
     amount equal to so much of the portion of the qualifying 
     project expenditure amount allocated under subsection (b)(3) 
     to such governmental unit for the calendar year as is 
     allocated by such governmental unit to such period under 
     subsection (b)(4).
       ``(b) Qualifying Project Expenditure Amount.--For purposes 
     of this section--
       ``(1) In general.--The term `qualifying project expenditure 
     amount' means, with respect to any calendar year, the sum 
     of--
       ``(A) the total expenditures paid or incurred during such 
     calendar year by all New York Liberty Zone governmental units 
     and the Port Authority of New York and New Jersey for any 
     portion of qualifying projects located wholly within the City 
     of New York, New York, and
       ``(B) any such expenditures--
       ``(i) paid or incurred in any preceding calendar year which 
     begins after the date of enactment of this section, and
       ``(ii) not previously allocated under paragraph (3).
       ``(2) Qualifying project.--The term `qualifying project' 
     means any transportation infrastructure project, including 
     highways, mass transit systems, railroads, airports, ports, 
     and waterways, in or connecting with the New York Liberty 
     Zone (as defined in section 1400K(h)), which is designated as 
     a qualifying project under this section jointly by the 
     Governor of the State of New York and the Mayor of the City 
     of New York, New York.
       ``(3) General allocation.--
       ``(A) In general.--The Governor of the State of New York 
     and the Mayor of the City of New York, New York, shall 
     jointly allocate to each New York Liberty Zone governmental 
     unit the portion of the qualifying project expenditure amount 
     which may be taken into account by such governmental unit 
     under subsection (a) for any calendar year in the credit 
     period.
       ``(B) Aggregate limit.--The aggregate amount which may be 
     allocated under subparagraph (A) for all calendar years in 
     the credit period shall not exceed $2,000,000,000.
       ``(C) Annual limit.--The aggregate amount which may be 
     allocated under subparagraph (A) for any calendar year in the 
     credit period shall not exceed the sum of--
       ``(i) $115,000,000 ($425,000,000 in the case of the last 2 
     years in the credit period), plus
       ``(ii) the aggregate amount authorized to be allocated 
     under this paragraph for all preceding calendar years in the 
     credit period which was not so allocated.
       ``(D) Unallocated amounts at end of credit period.--If, as 
     of the close of the credit period, the amount under 
     subparagraph (B) exceeds the aggregate amount allocated under 
     subparagraph (A) for all calendar years in the credit period, 
     the Governor of the State of New York and the Mayor of the 
     City of New York, New York, may jointly allocate to New York 
     Liberty Zone governmental units for any calendar year in the 
     5-year period following the credit period an amount equal 
     to--
       ``(i) the lesser of--

       ``(I) such excess, or
       ``(II) the qualifying project expenditure amount for such 
     calendar year, reduced by

       ``(ii) the aggregate amount allocated under this 
     subparagraph for all preceding calendar years.
       ``(4) Allocation to payroll periods.--Each New York Liberty 
     Zone governmental unit which has been allocated a portion of 
     the qualifying project expenditure amount under paragraph (3) 
     for a calendar year may allocate such portion to payroll 
     periods beginning in such calendar year as such governmental 
     unit determines appropriate.
       ``(c) Carryover of Unused Allocations.--

[[Page S7429]]

       ``(1) In general.--Except as provided in paragraph (2), if 
     the amount allocated under subsection (b)(3) to a New York 
     Liberty Zone governmental unit for any calendar year exceeds 
     the aggregate taxes imposed by section 3402 for which such 
     governmental unit is liable under section 3403 for periods 
     beginning in such year, such excess shall be carried to the 
     succeeding calendar year and added to the allocation of such 
     governmental unit for such succeeding calendar year.
       ``(2) Reallocation.--If a New York Liberty Zone 
     governmental unit does not use an amount allocated to it 
     under subsection (b)(3) within the time prescribed by the 
     Governor of the State of New York and the Mayor of the City 
     of New York, New York, then such amount shall after such time 
     be treated for purposes of subsection (b)(3) in the same 
     manner as if it had never been allocated.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Credit period.--The term `credit period' means the 
     12-year period beginning on January 1, 2009.
       ``(2) New york liberty zone governmental unit.--The term 
     `New York Liberty Zone governmental unit' means--
       ``(A) the State of New York,
       ``(B) the City of New York, New York, and
       ``(C) any agency or instrumentality of such State or City.
       ``(3) Treatment of funds.--Any expenditure for a qualifying 
     project taken into account for purposes of the credit under 
     this section shall be considered State and local funds for 
     the purpose of any Federal program.
       ``(4) Treatment of credit amounts for purposes of 
     withholding taxes.--For purposes of this title, a New York 
     Liberty Zone governmental unit shall be treated as having 
     paid to the Secretary, on the day on which wages are paid to 
     employees, an amount equal to the amount of the credit 
     allowed to such entity under subsection (a) with respect to 
     such wages, but only if such governmental unit deducts and 
     withholds wages for such payroll period under section 3401 
     (relating to wage withholding).
       ``(e) Reporting.--The Governor of the State of New York and 
     the Mayor of the City of New York, New York, shall jointly 
     submit to the Secretary an annual report--
       ``(1) which certifies--
       ``(A) the qualifying project expenditure amount for the 
     calendar year, and
       ``(B) the amount allocated to each New York Liberty Zone 
     governmental unit under subsection (b)(3) for the calendar 
     year, and
       ``(2) includes such other information as the Secretary may 
     require to carry out this section.
       ``(f) Guidance.--The Secretary may prescribe such guidance 
     as may be necessary or appropriate to ensure compliance with 
     the purposes of this section.''.
       (b) Termination of Special Allowance and Expensing.--
     Subparagraph (A) of section 1400K(b)(2), as redesignated by 
     subsection (a), is amended by striking the parenthetical 
     therein and inserting ``(in the case of nonresidential real 
     property and residential rental property, the date of the 
     enactment of the Energy Independence and Tax Relief Act of 
     2008 or, if acquired pursuant to a binding contract in effect 
     on such enactment date, December 31, 2009)''.
       (c) Conforming Amendments.--
       (1) Section 38(c)(3)(B) is amended by striking ``section 
     1400L(a)'' and inserting ``section 1400K(a)''.
       (2) Section 168(k)(2)(D)(ii) is amended by striking 
     ``section 1400L(c)(2)'' and inserting ``section 
     1400K(c)(2)''.
       (3) The table of sections for part I of subchapter Y of 
     chapter 1 is amended by redesignating the item relating to 
     section 1400L as an item relating to section 1400K and by 
     inserting after such item the following new item:

``Sec. 1400L. New York Liberty Zone tax credits.''

     .  (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 537. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.

       (a) In General.--Paragraph (1) of section 132(f) is amended 
     by adding at the end the following:
       ``(D) Any qualified bicycle commuting reimbursement.''.
       (b) Limitation on Exclusion.--Paragraph (2) of section 
     132(f) is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(C) the applicable annual limitation in the case of any 
     qualified bicycle commuting reimbursement.''.
       (c) Definitions.--Paragraph (5) of section 132(f) is 
     amended by adding at the end the following:
       ``(F) Definitions related to bicycle commuting 
     reimbursement.--
       ``(i) Qualified bicycle commuting reimbursement.--The term 
     `qualified bicycle commuting reimbursement' means, with 
     respect to any calendar year, any employer reimbursement 
     during the 15-month period beginning with the first day of 
     such calendar year for reasonable expenses incurred by the 
     employee during such calendar year for the purchase of a 
     bicycle and bicycle improvements, repair, and storage, if 
     such bicycle is regularly used for travel between the 
     employee's residence and place of employment.
       ``(ii) Applicable annual limitation.--The term `applicable 
     annual limitation' means, with respect to any employee for 
     any calendar year, the product of $20 multiplied by the 
     number of qualified bicycle commuting months during such 
     year.
       ``(iii) Qualified bicycle commuting month.--The term 
     `qualified bicycle commuting month' means, with respect to 
     any employee, any month during which such employee--

       ``(I) regularly uses the bicycle for a substantial portion 
     of the travel between the employee's residence and place of 
     employment, and
       ``(II) does not receive any benefit described in 
     subparagraph (A), (B), or (C) of paragraph (1).''.

       (d) Constructive Receipt of Benefit.--Paragraph (4) of 
     section 132(f) is amended by inserting ``(other than a 
     qualified bicycle commuting reimbursement)'' after 
     ``qualified transportation fringe''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 538. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

       (a) Increase in Credit Amount.--Section 30C is amended--
       (1) by striking ``30 percent'' in subsection (a) and 
     inserting ``50 percent'', and
       (2) by striking ``$30,000'' in subsection (b)(1) and 
     inserting ``$50,000''.
       (b) Extension of Credit.--Paragraph (2) of section 30C(g) 
     is amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (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, in taxable years ending after such 
     date.

       Subtitle C--Energy Conservation and Efficiency Provisions

     SEC. 541. QUALIFIED ENERGY CONSERVATION BONDS.

       (a) In General.--Subpart I of part IV of subchapter A of 
     chapter 1, as amended by section 106, is amended by adding at 
     the end the following new section:

     ``SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS.

       ``(a) Qualified Energy Conservation Bond.--For purposes of 
     this subchapter, the term `qualified energy conservation 
     bond' means any bond issued as part of an issue if--
       ``(1) 100 percent of the available project proceeds of such 
     issue are to be used for one or more qualified conservation 
     purposes,
       ``(2) the bond is issued by a State or local government, 
     and
       ``(3) the issuer designates such bond for purposes of this 
     section.
       ``(b) Reduced Credit Amount.--The annual credit determined 
     under section 54A(b) with respect to any qualified energy 
     conservation bond shall be 70 percent of the amount so 
     determined without regard to this subsection.
       ``(c) Limitation on Amount of Bonds Designated.--The 
     maximum aggregate face amount of bonds which may be 
     designated under subsection (a) by any issuer shall not 
     exceed the limitation amount allocated to such issuer under 
     subsection (e).
       ``(d) National Limitation on Amount of Bonds Designated.--
     There is a national qualified energy conservation bond 
     limitation of $3,000,000,000.
       ``(e) Allocations.--
       ``(1) In general.--The limitation applicable under 
     subsection (d) shall be allocated by the Secretary among the 
     States in proportion to the population of the States.
       ``(2) Allocations to largest local governments.--
       ``(A) In general.--In the case of any State in which there 
     is a large local government, each such local government shall 
     be allocated a portion of such State's allocation which bears 
     the same ratio to the State's allocation (determined without 
     regard to this subparagraph) as the population of such large 
     local government bears to the population of such State.
       ``(B) Allocation of unused limitation to state.--The amount 
     allocated under this subsection to a large local government 
     may be reallocated by such local government to the State in 
     which such local government is located.
       ``(C) Large local government.--For purposes of this 
     section, the term `large local government' means any 
     municipality or county if such municipality or county has a 
     population of 100,000 or more.
       ``(3) Allocation to issuers; restriction on private 
     activity bonds.--Any allocation under this subsection to a 
     State or large local government shall be allocated by such 
     State or large local government to issuers within the State 
     in a manner that results in not less than 70 percent of the 
     allocation to such State or large local government being used 
     to designate bonds which are not private activity bonds.
       ``(f) Qualified Conservation Purpose.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified conservation 
     purpose' means any of the following:
       ``(A) Capital expenditures incurred for purposes of--
       ``(i) reducing energy consumption in publicly-owned 
     buildings by at least 20 percent,
       ``(ii) implementing green community programs,
       ``(iii) rural development involving the production of 
     electricity from renewable energy resources, or

[[Page S7430]]

       ``(iv) any qualified facility (as determined under section 
     45(d) without regard to paragraphs (8) and (10) thereof and 
     without regard to any placed in service date).
       ``(B) Expenditures with respect to research facilities, and 
     research grants, to support research in--
       ``(i) development of cellulosic ethanol or other nonfossil 
     fuels,
       ``(ii) technologies for the capture and sequestration of 
     carbon dioxide produced through the use of fossil fuels,
       ``(iii) increasing the efficiency of existing technologies 
     for producing nonfossil fuels,
       ``(iv) automobile battery technologies and other 
     technologies to reduce fossil fuel consumption in 
     transportation, or
       ``(v) technologies to reduce energy use in buildings.
       ``(C) Mass commuting facilities and related facilities that 
     reduce the consumption of energy, including expenditures to 
     reduce pollution from vehicles used for mass commuting.
       ``(D) Demonstration projects designed to promote the 
     commercialization of--
       ``(i) green building technology,
       ``(ii) conversion of agricultural waste for use in the 
     production of fuel or otherwise,
       ``(iii) advanced battery manufacturing technologies,
       ``(iv) technologies to reduce peak use of electricity, or
       ``(v) technologies for the capture and sequestration of 
     carbon dioxide emitted from combusting fossil fuels in order 
     to produce electricity.
       ``(E) Public education campaigns to promote energy 
     efficiency.
       ``(2) Special rules for private activity bonds.--For 
     purposes of this section, in the case of any private activity 
     bond, the term `qualified conservation purposes' shall not 
     include any expenditure which is not a capital expenditure.
       ``(g) Population.--
       ``(1) In general.--The population of any State or local 
     government shall be determined for purposes of this section 
     as provided in section 146(j) for the calendar year which 
     includes the date of the enactment of this section.
       ``(2) Special rule for counties.--In determining the 
     population of any county for purposes of this section, any 
     population of such county which is taken into account in 
     determining the population of any municipality which is a 
     large local government shall not be taken into account in 
     determining the population of such county.
       ``(h) Application to Indian Tribal Governments.--An Indian 
     tribal government shall be treated for purposes of this 
     section in the same manner as a large local government, 
     except that--
       ``(1) an Indian tribal government shall be treated for 
     purposes of subsection (e) as located within a State to the 
     extent of so much of the population of such government as 
     resides within such State, and
       ``(2) any bond issued by an Indian tribal government shall 
     be treated as a qualified energy conservation bond only if 
     issued as part of an issue the available project proceeds of 
     which are used for purposes for which such Indian tribal 
     government could issue bonds to which section 103(a) 
     applies.''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d), as amended by section 
     106, is amended to read as follows:
       ``(1) Qualified tax credit bond.--The term `qualified tax 
     credit bond' means--
       ``(A) a qualified forestry conservation bond,
       ``(B) a new clean renewable energy bond, or
       ``(C) a qualified energy conservation bond,
     which is part of an issue that meets requirements of 
     paragraphs (2), (3), (4), (5), and (6).''.
       (2) Subparagraph (C) of section 54A(d)(2), as amended by 
     section 106, is amended to read as follows:
       ``(C) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means--
       ``(i) in the case of a qualified forestry conservation 
     bond, a purpose specified in section 54B(e),
       ``(ii) in the case of a new clean renewable energy bond, a 
     purpose specified in section 54C(a)(1), and
       ``(iii) in the case of a qualified energy conservation 
     bond, a purpose specified in section 54D(a)(1).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 54D. Qualified energy conservation bonds.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 542. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

       (a) Extension of Credit.--Section 25C(g) is amended by 
     striking ``December 31, 2007'' and inserting ``December 31, 
     2008''.
       (b) Qualified Biomass Fuel Property.--
       (1) In general.--Section 25C(d)(3) is amended--
       (A) by striking ``and'' at the end of subparagraph (D),
       (B) by striking the period at the end of subparagraph (E) 
     and inserting ``, and'', and
       (C) by adding at the end the following new subparagraph:
       ``(F) a stove which uses the burning of biomass fuel to 
     heat a dwelling unit located in the United States and used as 
     a residence by the taxpayer, or to heat water for use in such 
     a dwelling unit, and which has a thermal efficiency rating of 
     at least 75 percent.''.
       (2) Biomass fuel.--Section 25C(d) is amended by adding at 
     the end the following new paragraph:
       ``(6) Biomass fuel.--The term `biomass fuel' means any 
     plant-derived fuel available on a renewable or recurring 
     basis, including agricultural crops and trees, wood and wood 
     waste and residues (including wood pellets), plants 
     (including aquatic plants), grasses, residues, and fibers.''.
       (c) Coordination With Credit for Qualified Geothermal Heat 
     Pump Property Expenditures.--
       (1) In general.--Paragraph (3) of section 25C(d), as 
     amended by subsection (b), is amended by striking 
     subparagraph (C) and by redesignating subparagraphs (D), (E), 
     and (F) as subparagraphs (C), (D), and (E), respectively.
       (2) Conforming amendment.--Subparagraph (C) of section 
     25C(d)(2) is amended to read as follows:
       ``(C) Requirements and standards for air conditioners and 
     heat pumps.--The standards and requirements prescribed by the 
     Secretary under subparagraph (B) with respect to the energy 
     efficiency ratio (EER) for central air conditioners and 
     electric heat pumps--
       ``(i) shall require measurements to be based on published 
     data which is tested by manufacturers at 95 degrees 
     Fahrenheit, and
       ``(ii) may be based on the certified data of the Air 
     Conditioning and Refrigeration Institute that are prepared in 
     partnership with the Consortium for Energy Efficiency.''.
       (d) Modification of Qualified Energy Efficiency 
     Improvements.--
       (1) In general.--Paragraph (1) of section 25C(c) is amended 
     by inserting ``, or an asphalt roof with appropriate cooling 
     granules,'' before ``which meet the Energy Star program 
     requirements''.
       (2) Building envelope component.--Subparagraph (D) of 
     section 25C(c)(2) is amended--
       (A) by inserting ``or asphalt roof'' after ``metal roof'', 
     and
       (B) by inserting ``or cooling granules'' after ``pigmented 
     coatings''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made this section shall apply to expenditures made 
     after December 31, 2007.
       (2) Modification of qualified energy efficiency 
     improvements.--The amendments made by subsection (d) shall 
     apply to property placed in service after the date of the 
     enactment of this Act.

     SEC. 543. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

       Subsection (h) of section 179D is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2013''.

     SEC. 544. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT 
                   FOR APPLIANCES PRODUCED AFTER 2007.

       (a) In General.--Subsection (b) of section 45M is amended 
     to read as follows:
       ``(b) Applicable Amount.--For purposes of subsection (a)--
       ``(1) Dishwashers.--The applicable amount is--
       ``(A) $45 in the case of a dishwasher which is manufactured 
     in calendar year 2008 or 2009 and which uses no more than 324 
     kilowatt hours per year and 5.8 gallons per cycle, and
       ``(B) $75 in the case of a dishwasher which is manufactured 
     in calendar year 2008, 2009, or 2010 and which uses no more 
     than 307 kilowatt hours per year and 5.0 gallons per cycle 
     (5.5 gallons per cycle for dishwashers designed for greater 
     than 12 place settings).
       ``(2) Clothes washers.--The applicable amount is--
       ``(A) $75 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 which meets or 
     exceeds a 1.72 modified energy factor and does not exceed a 
     8.0 water consumption factor,
       ``(B) $125 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 or 2009 which meets 
     or exceeds a 1.8 modified energy factor and does not exceed a 
     7.5 water consumption factor,
       ``(C) $150 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets or exceeds 2.0 modified energy factor and 
     does not exceed a 6.0 water consumption factor, and
       ``(D) $250 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets or exceeds 2.2 modified energy factor and 
     does not exceed a 4.5 water consumption factor.
       ``(3) Refrigerators.--The applicable amount is--
       ``(A) $50 in the case of a refrigerator which is 
     manufactured in calendar year 2008, and consumes at least 20 
     percent but not more than 22.9 percent less kilowatt hours 
     per year than the 2001 energy conservation standards,
       ``(B) $75 in the case of a refrigerator which is 
     manufactured in calendar year 2008 or 2009, and consumes at 
     least 23 percent but no more than 24.9 percent less kilowatt 
     hours per year than the 2001 energy conservation standards,
       ``(C) $100 in the case of a refrigerator which is 
     manufactured in calendar year 2008, 2009, or 2010, and 
     consumes at least 25 percent but not more than 29.9 percent 
     less kilowatt hours per year than the 2001 energy 
     conservation standards, and
       ``(D) $200 in the case of a refrigerator manufactured in 
     calendar year 2008, 2009, or 2010 and which consumes at least 
     30 percent less

[[Page S7431]]

     energy than the 2001 energy conservation standards.''.
       (b) Eligible Production.--
       (1) Similar treatment for all appliances.--Subsection (c) 
     of section 45M is amended--
       (A) by striking paragraph (2),
       (B) by striking ``(1) In general'' and all that follows 
     through ``the eligible'' and inserting ``The eligible'',
       (C) by moving the text of such subsection in line with the 
     subsection heading, and
       (D) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively, and by moving such 
     paragraphs 2 ems to the left.
       (2) Modification of base period.--Paragraph (2) of section 
     45M(c), as amended by paragraph (1), is amended by striking 
     ``3-calendar year'' and inserting ``2-calendar year''.
       (c) Types of Energy Efficient Appliances.--Subsection (d) 
     of section 45M (defining types of energy efficient 
     appliances) is amended to read as follows:
       ``(d) Types of Energy Efficient Appliance.--For purposes of 
     this section, the types of energy efficient appliances are--
       ``(1) dishwashers described in subsection (b)(1),
       ``(2) clothes washers described in subsection (b)(2), and
       ``(3) refrigerators described in subsection (b)(3).''.
       (d) Aggregate Credit Amount Allowed.--
       (1) Increase in limit.--Paragraph (1) of section 45M(e) is 
     amended to read as follows:
       ``(1) Aggregate credit amount allowed.--The aggregate 
     amount of credit allowed under subsection (a) with respect to 
     a taxpayer for any taxable year shall not exceed $75,000,000 
     reduced by the amount of the credit allowed under subsection 
     (a) to the taxpayer (or any predecessor) for all prior 
     taxable years beginning after December 31, 2007.''.
       (2) Exception for certain refrigerator and clothes 
     washers.--Paragraph (2) of section 45M(e) is amended to read 
     as follows:
       ``(2) Amount allowed for certain refrigerators and clothes 
     washers.--Refrigerators described in subsection (b)(3)(D) and 
     clothes washers described in subsection (b)(2)(D) shall not 
     be taken into account under paragraph (1).''.
       (e) Qualified Energy Efficient Appliances.--
       (1) In general.--Paragraph (1) of section 45M(f) (defining 
     qualified energy efficient appliance) is amended to read as 
     follows:
       ``(1) Qualified energy efficient appliance.--The term 
     `qualified energy efficient appliance' means--
       ``(A) any dishwasher described in subsection (b)(1),
       ``(B) any clothes washer described in subsection (b)(2), 
     and
       ``(C) any refrigerator described in subsection (b)(3).''.
       (2) Clothes washer.--Section 45M(f)(3) is amended by 
     inserting ``commercial'' before ``residential'' the second 
     place it appears.
       (3) Top-loading clothes washer.--Subsection (f) of section 
     45M is amended by redesignating paragraphs (4), (5), (6), and 
     (7) as paragraphs (5), (6), (7), and (8), respectively, and 
     by inserting after paragraph (3) the following new paragraph:
       ``(4) Top-loading clothes washer.--The term `top-loading 
     clothes washer' means a clothes washer which has the clothes 
     container compartment access located on the top of the 
     machine and which operates on a vertical axis.''.
       (4) Replacement of energy factor.--Section 45M(f)(6), as 
     redesignated by paragraph (3), is amended to read as follows:
       ``(6) Modified energy factor.--The term `modified energy 
     factor' means the modified energy factor established by the 
     Department of Energy for compliance with the Federal energy 
     conservation standard.''.
       (5) Gallons per cycle; water consumption factor.--Section 
     45M(f), as amended by paragraph (3), is amended by adding at 
     the end the following:
       ``(9) Gallons per cycle.--The term `gallons per cycle' 
     means, with respect to a dishwasher, the amount of water, 
     expressed in gallons, required to complete a normal cycle of 
     a dishwasher.
       ``(10) Water consumption factor.--The term `water 
     consumption factor' means, with respect to a clothes washer, 
     the quotient of the total weighted per-cycle water 
     consumption divided by the cubic foot (or liter) capacity of 
     the clothes washer.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007.

     SEC. 545. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF 
                   SMART METERS AND SMART GRID SYSTEMS.

       (a) In General.--Section 168(e)(3)(D) is amended by 
     striking ``and'' at the end of clause (i), by striking the 
     period at the end of clause (ii) and inserting a comma, and 
     by inserting after clause (ii) the following new clauses:
       ``(iii) any qualified smart electric meter, and
       ``(iv) any qualified smart electric grid system.''.
       (b) Definitions.--Section 168(i) is amended by inserting at 
     the end the following new paragraph:
       ``(18) Qualified smart electric meters.--
       ``(A) In general.--The term `qualified smart electric 
     meter' means any smart electric meter which is placed in 
     service by a taxpayer who is a supplier of electric energy or 
     a provider of electric energy services.
       ``(B) Smart electric meter.--For purposes of subparagraph 
     (A), the term `smart electric meter' means any time-based 
     meter and related communication equipment which is capable of 
     being used by the taxpayer as part of a system that--
       ``(i) measures and records electricity usage data on a 
     time-differentiated basis in at least 24 separate time 
     segments per day,
       ``(ii) provides for the exchange of information between 
     supplier or provider and the customer's electric meter in 
     support of time-based rates or other forms of demand 
     response,
       ``(iii) provides data to such supplier or provider so that 
     the supplier or provider can provide energy usage information 
     to customers electronically, and
       ``(iv) provides net metering.
       ``(19) Qualified smart electric grid systems.--
       ``(A) In general.--The term `qualified smart electric grid 
     system' means any smart grid property used as part of a 
     system for electric distribution grid communications, 
     monitoring, and management placed in service by a taxpayer 
     who is a supplier of electric energy or a provider of 
     electric energy services.
       ``(B) Smart grid property.--For the purposes of 
     subparagraph (A), the term `smart grid property' means 
     electronics and related equipment that is capable of--
       ``(i) sensing, collecting, and monitoring data of or from 
     all portions of a utility's electric distribution grid,
       ``(ii) providing real-time, two-way communications to 
     monitor or manage such grid, and
       ``(iii) providing real time analysis of and event 
     prediction based upon collected data that can be used to 
     improve electric distribution system reliability, quality, 
     and performance.''.
       (c) Continued Application of 150 Percent Declining Balance 
     Method.--Paragraph (2) of section 168(b) is amended by 
     striking ``or'' at the end of subparagraph (B), by 
     redesignating subparagraph (C) as subparagraph (D), and by 
     inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) any property (other than property described in 
     paragraph (3)) which is a qualified smart electric meter or 
     qualified smart electric grid system, or''.
       (d) 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. 546. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN 
                   PROJECTS.

       (a) In General.--Paragraph (8) of section 142(l) is amended 
     by striking ``September 30, 2009'' and inserting ``September 
     30, 2012''.
       (b) Treatment of Current Refunding Bonds.--Paragraph (9) of 
     section 142(l) is amended by striking ``October 1, 2009'' and 
     inserting ``October 1, 2012''.
       (c) Accountability.--The second sentence of section 701(d) 
     of the American Jobs Creation Act of 2004 is amended by 
     striking ``issuance,'' and inserting ``issuance of the last 
     issue with respect to such project,''.

                Subtitle D--Limitation of Oil Incentives

     SEC. 551. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Major Integrated Oil Companies 
     for Income Attributable to Domestic Production of Oil, Gas, 
     or Primary Products Thereof.--
       (1) In general.--Subparagraph (B) of section 199(c)(4) 
     (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) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (2) Primary product.--Section 199(c)(4)(B) 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.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Major Integrated 
     Oil Companies.--
       (1) In general.--Section 199(d) is amended by redesignating 
     paragraph (9) as paragraph (10) and by inserting after 
     paragraph (8) the following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a major 
     integrated oil company (as defined in section 167(h)(5)(B))) 
     has oil related qualified production activities income for 
     any taxable year beginning after 2009, the amount of the 
     deduction under subsection (a) shall be reduced by 3 percent 
     of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     The term `oil related qualified production activities income'

[[Page S7432]]

     means for any taxable year the qualified production 
     activities income which is attributable to the production, 
     refining, processing, transportation, or distribution of oil, 
     gas, or any primary product thereof during such taxable 
     year.''.
       (2) Conforming amendment.--Section 199(d)(2) (relating to 
     application to individuals) is amended by striking 
     ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 552. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND 
                   GAS EXTRACTION INCOME.

       (a) In General.--Paragraph (1) of section 907(c) is amended 
     by redesignating subparagraph (B) as subparagraph (C), by 
     striking ``or'' at the end of subparagraph (A), and by 
     inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) so much of any transportation of such minerals as 
     occurs before the fair market value event, or''.
       (b) Fair Market Value Event.--Subsection (c) of section 907 
     is amended by adding at the end the following new paragraph:
       ``(6) Fair market value event.--For purposes of this 
     section, the term `fair market value event' means, with 
     respect to any mineral, the first point in time at which such 
     mineral--
       ``(A) has a fair market value which can be determined on 
     the basis of a transfer, which is an arm's length 
     transaction, of such mineral from the taxpayer to a person 
     who is not related (within the meaning of section 482) to 
     such taxpayer, or
       ``(B) is at a location at which the fair market value is 
     readily ascertainable by reason of transactions among 
     unrelated third parties with respect to the same mineral 
     (taking into account source, location, quality, and chemical 
     composition).''.
       (c) Special Rule for Certain Petroleum Taxes.--Subsection 
     (c) of section 907, as amended by subsection (b), is amended 
     to by adding at the end the following new paragraph:
       ``(7) Oil and gas taxes.--In the case of any tax imposed by 
     a foreign country which is limited in its application to 
     taxpayers engaged in oil or gas activities--
       ``(A) the term `oil and gas extraction taxes' shall include 
     such tax,
       ``(B) the term `foreign oil and gas extraction income' 
     shall include any taxable income which is taken into account 
     in determining such tax (or is directly attributable to the 
     activity to which such tax relates), and
       ``(C) the term `foreign oil related income' shall not 
     include any taxable income which is treated as foreign oil 
     and gas extraction income under subparagraph (B).''.
       (d) Conforming Amendments.--
       (1) Subparagraph (C) of section 907(c)(1), as redesignated 
     by this section, is amended by inserting ``or used by the 
     taxpayer in the activity described in subparagraph (B)'' 
     before the period at the end.
       (2) Subparagraph (B) of section 907(c)(2) is amended to 
     read as follows:
       ``(B) so much of the transportation of such minerals or 
     primary products as is not taken into account under paragraph 
     (1)(B),''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

                          ____________________