[Congressional Record Volume 154, Number 159 (Wednesday, October 1, 2008)]
[Senate]
[Pages S10328-S10335]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. VOINOVICH:
  S. 3669. A bill to reduce gas prices by promoting domestic energy 
production, alternative energy, and conservation, and for other 
purposes; to the Committee on Energy and Natural Resources.
  Mr. VOINOVICH. Mr. President, I rise today to introduce legislation, 
the Harmonizing America's Energy, Economy, Environment, and National 
Security Act, that I believe can lead our Nation out of the current 
energy crisis.

[[Page S10329]]

  Much of the Nation's attention has understandably been focused on the 
financial turmoil taking place on Wall Street. Since the very 
beginning, I have been hard at work in addressing the financial crisis 
and I will be supporting the economic stabilization bill when the 
Senate votes tonight.
  But I will vote with a heavy heart, for I have spent my entire career 
focusing on eliminating debt at the local, State and Federal level. 
While deciding to vote for a package of this magnitude feels like being 
punched in the gut, the thought of what would happen to average 
Americans if we did nothing is much more painful. I am, however, very 
pleased to see that any profit we may make off this deal will be used 
to pay down the national debt.
  This is affecting not only Wall Street but Main Street and my street. 
Ohioans depend on credit to buy a home, drive to work and send their 
children to school. If this doesn't pass, the possible ramifications 
are staggering. Imagine if you can, businesses laying off staff or 
closing completely because they can't make payroll; retirement funds 
that have already taken a dramatic hit being reduced to nothing; 
parents unable to get a loan to pay for child's college tuition; 
families unable to get credit for a car or a house; cities unable to 
float bonds to build hospitals or schools; and home prices continuing 
to plummet.
  We must act Mr. President. We must set aside our differences and our 
ideologies and do what is right. But our work cannot stop here. We must 
make a full-court press to stabilize the housing market and secure our 
energy supplies. While we have been debating and acting on the 
financial crisis, our energy crisis has not only continued, but in many 
ways grown worse. It remains an issue that needs to be addressed sooner 
rather than later, and if our economy is to quickly recover, a 
comprehensive energy policy will need to be part of the equation.
  I have heard loud and clear from thousands of Ohioans how this energy 
crisis is directly affecting them and their loved ones. They are 
expecting that we work together in bipartisan fashion to craft 
legislation that will address our Nation's long-term energy 
requirements.
  Take for example, the severe fuel supply disruption created by our 
shortsighted offshore drilling policy and hurricanes Ike and Gustav. 
Both hurricanes followed paths that paved straight through the heart of 
our Nation's offshore oil production and home to the bulk of our 
refining capacity. Due to the frequency of gulf hurricanes, many oil 
experts have pointed to this as a reason we need to open additional 
areas of the Outer Continental Shelf outside of the Gulf of Mexico. 
With 25 percent of our oil production currently taking place within the 
Gulf of Mexico, gulf hurricanes frequently lead to wild price spikes in 
the gasoline market as oil rigs and refineries are taken off line to 
avoid damage and loss of life.
  According to the Energy Information Agency, Ike and Gustav lead to a 
25 percent drop in our domestic oil production compared to this time 
last year, from 5.1 billion barrels a day to 3.8 billion barrels per 
day. The loss in refining capacity cut our gasoline inventories to 
levels we have not seen since 1967, resulting in widespread fuel 
shortages that left many in the Southeast driving from gas station to 
gas station, desperate to find fuel for their cars. Much of the reason 
why these supply disruptions have not spread across the country is that 
we have reached out and imported large quantities of gasoline from 
overseas. Some of which has undoubtedly come from countries like 
Venezuela, that do not have our best interests at heart.
  This situation is cause for concern in its own right, but is also 
underscored by the current financial crisis and the fact that this is 
no longer a question about the price of oil. Energy security is a 
matter of national security.
  We have clearly ignored our financial situation for far too long. The 
national debt stands at $9.6 trillion, almost double the $5.4 trillion 
debt that existed when the senator came to the Senate in 1999. By the 
end of 2009, the national debt is expected to have grown to $10.5 
trillion. The Congressional Budget Office said the Federal Government 
will finish the fiscal year with a near-record deficit of $407 billion. 
These numbers do not include borrowing from the Social Security Trust 
Fund which would put the overall number close to $600 billion and $700 
billion by next year.
  We cannot overlook our ballooning national debt. Today, 51 percent of 
the privately-owned national debt is held by foreign creditors--mostly 
foreign central banks. Foreign creditors provided more than 70 percent 
of the funds that the U.S. has borrowed since 2001, according to the 
Department of Treasury. And who are these creditors?
  According to the Treasury Department, the three largest foreign 
holders of U.S. debt are China, Japan, and OPEC Nations.
  This is insane and it has to stop. We cannot afford to allow the 
countries that control our oil and our debt to control our future.
  Americans are hurting from our addiction to oil, I'm not sure they 
fully realize the extent our national security, and indeed our very way 
of life, is threatened by our reliance on foreign oil.
  Every year we send billions of dollars overseas for oil to pad the 
coffers of many Nations that wish our demise. In fact, in 2007, we 
spent more than $327 billion to import oil, and 60 percent of that, or 
nearly $200 billion, went to the oil-exporting OPEC nations. In 2008, 
the amount we will spend to import oil is expected to double to more 
than $600 billion, $360 billion of which will come from OPEC. Let's 
take a moment to put those import figures into context. When compared 
to our FY2008 budget for our Nation's defense, which was more than $693 
billion, the $600 billion we will spend to import oil in 2008 is nearly 
equal to our entire defense budget.
  There is no question that our dependence on foreign oil has serious 
national security implications. In addition to funding our enemies--as 
I just explained--we cannot ignore the fact that much of our oil comes 
from and travels through the most volatile regions of the world.
  A couple of years ago, I attended a series of war games hosted by the 
National Defense University. I saw firsthand how our country's economy 
could be brought to its knees if somebody cut off our oil.
  In 2006, Hillard Huntington, Executive Director of Stanford 
University's Energy Modeling Forum testified before the Senate Foreign 
Relations Committee, and based on his modeling, ``the odds of a foreign 
oil disruption happening over the next 10 years are slightly higher 
[than] 80 percent.'' He went on to testify that if global production 
were reduced by merely 2.1 percent due to some event, that it would 
have a more serious effect on oil prices and the economy than 
hurricanes Katrina and Rita.
  Let us take a moment to think of our Nation like a business. Our 
feedstock is oil, and our of competitors control the cost of our oil. 
We have debt, but our competitors also control our debt. What's to keep 
our competitors from raising prices, calling in our debt and running us 
out of business?
  I hope this scenario scares you as much as it scares me.
  But also keep in mind, that as Congress sat here and twiddle its 
thumbs over simply expanding domestic drilling within our own borders, 
Russia and China were actively and aggressively laying claim to energy 
resources around the globe.
  Russia, the world's second biggest oil exporter, has its sights on a 
large section of the Arctic seafloor that is believed to contain 
billion of barrels of fuel equivalent. The country has also made moves 
to control a larger portion of the world's natural gas reserves. 
Russia, which has significant reserves of natural gas, is considering 
the creation of a natural gas cartel similar to OPEC. Venezuela and 
Iran have expressed interest.
  Russia has proven it has no qualms with using energy as a weapon. In 
1990, Russia tried to suppress independence movements in the Baltics by 
cutting energy supplies. In all, Russia has used energy as a tool to 
further their foreign policy goals on no less than six countries. 
Energy is believed to be one of the driving reasons for Russia's 
military action in the independent nation of Georgia.
  China as well is moving ahead in securing its energy future. In 
Africa, China is handing out loans and funding

[[Page S10330]]

expansive infrastructure projects in an effort to lay claim to 
lucrative oil reserves. With the help of Chinese investment, Angola 
recently passed Nigeria to become the largest petroleum producer on the 
continent.
  I am going to be brutally honest with you folks, the future of our 
country is in jeopardy. We cannot continue to transfer our wealth 
overseas to this degree without expecting serious consequences. Rather 
than addressing these national security concerns we have been living 
the life of Riley, and allowed the environmental movement to run wild.
  Congress let them get away with. We let them get away with it Mr. 
President. Why? Because oil was cheap and so Congress felt no urgency 
to act. Well, oil is not cheap anymore. While detrimental to our 
economy and competitiveness, the high price of oil finally spurred some 
of my colleagues into action and I am proud that Congress has taken 
some steps to address the energy crisis.
  The recently passed fiscal year 2009 Continuing Resolution removed 
the moratoria on oil exploration in the Outer Continental Shelf and 
moratorium on regulations for the development of oil shale. Reserves in 
the Outer Continental Shelf are believed to equal 8.5 billion barrels 
of oil, and undiscovered resources could equal ten times that. There 
are currently 800 billion barrels of technically recoverable reserves 
locked up in our Nation's oil shale. This is three times larger than 
the total proven oil reserves of Saudi Arabia.
  The Senate has also passed a tax extenders package that includes many 
incentives to develop advanced alternative energies that will lead our 
country to a future free of oil. Included in the package were popular 
tax credits for the wind and solar industry that have helped foster 
strong emerging industries in my home State of Ohio.
  Congress needs to continue to act. I believe the Harmonizing 
America's Energy, Economy, Environment, and National Security Act is 
the vehicle for a bipartisan effort to develop a meaningful 
comprehensive energy plan.
  Addressing this crisis requires nothing less than a Second 
Declaration of Independence--to move us away from foreign sources of 
energy in the near term and away from oil in the long term.
  As you know, oil is not easily found nor substituted, and it will 
remain an integral component to our economy in the short-term. But we 
must make investments today that will help us achieve our goal 
tomorrow. To do this I believe we must find more, use less, and 
conserve what we have.
  In order to find more and stabilize our Nation's energy supply, my 
legislation would encourage the development of oil resources within the 
Outer Continental Shelf and with regards to our oil shale reserves. It 
would also open ANWR to responsible development, where it is believed 
that there is over 10 billion barrels of oil.
  While these resources will not physically come online for a number of 
years, moves to expand development will send a clear signal to the 
market that we are serious about meeting our future energy demands and 
begin to drive down the cost of oil because investors will know that 
gas won't be worth as much in the future and will therefore sell it off 
today--lowering the cost immediately.
  And while we must increase our production of fossil fuels to relieve 
costs and reestablish our independence in the short term, in the long 
term we must reduce our demand for oil.
  With that goal in mind, it is essential that we explore alternative 
means to meet our Nation's energy needs.
  It is long past time for our government to provide the spark to 
rekindle our Nation's creativity and innovation. Following Russia's 
launch of Sputnik, President Kennedy challenged our country to be the 
first in the world to land a man on the moon. We must now undertake a 
similar Apollo-like project to establish clean, reliable and 
domestically abundant energy alternatives and in turn usher in a new 
era of American freedom and independence.
  My legislation would help to fund such a project by setting aside a 
portion of the federal revenues raised through lease revenues in the 
Outer Continental Shelf and ANWR to be used for the development of 
advanced alternative energies, like wind, solar, fuel cells, advanced 
batteries, and advanced biofuels. It would also set aside funds to be 
explicitly to boost funding for the Low-Income Home Energy Assistance 
Program and to pay down our national debt.
  The bill will also repeal Section 526, a provision that places our 
domestic coal-to-liquid industry in jeopardy. We have the largest coal 
reserves in the world, and at current rates of consumption, U.S. coal 
deposits will last for more than 240 years.
  Coal can provide significant new supplies of affordable synthetic 
fuels for transportation. A lot of Americans don't understand that many 
country's get their oil from coal. In fact, South Africa gets nearly 70 
percent of their oil from coal. But we are beginning to make advances 
here. In fact, Baard Energy is planning a CTL and biomass facility in 
SE Ohio that will produce 53,000 BPD of jet and diesel fuel, and other 
liquid production from coal and biomass feedstocks.
  Last but not least, as we look to increase our supply and spark new 
innovation, we must also be more responsible with the energy we 
currently use. My legislation would fund the development of new 
conservation technologies and practices and would help to disseminate 
these across the country.
  Americans today demand action and they demand we come together in a 
bipartisan fashion to solve our energy crisis. For 10 years I have been 
a member of the Environmental and Public Works Committee and for 10 
years I have tried to coax Congress into harmonizing our energy, 
economy and the environment. Congress has refused and now the chickens 
have come home to roost.
  I believe that the best message we can send to OPEC, those investing 
in the oil market, and indeed the entire world, is that we get it. We 
must demonstrate that we are going to find more by going after every 
drop of oil that we can responsibly drill and that we are going to use 
less by undertaking a new Apollo project to make the U.S. the most oil 
independent nation in the world.
  I envision an America ten years from now where we have enough oil to 
take care of our needs. I imagine an America that is the least reliant 
country in the world on oil, an America where our economy is not 
threatened by our reliance on foreign energy sources. It will be an 
America that has created hundreds of thousands of jobs through the 
responsible development of our Nation's resources and the through the 
creation of new industries in the field of alternative energy.
  Wouldn't it be great for our children and grandchildren to one day 
celebrate the time America put aside its differences and came together 
to reaffirm its independence a second time and rekindled the American 
spirit of self reliance, innovation and creativity to usher in new era 
of prosperity?
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3669

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Harmonizing America's Energy, Economy, Environment, and 
     National Security 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--DOMESTIC ENERGY PRODUCTION

                  Subtitle A--Outer Continental Shelf

Sec. 101. Termination of prohibitions on expenditures for, and 
              withdrawals from, offshore and onshore leasing and other 
              limitations on energy production.
Sec. 102. Coordination with Secretary of Defense on leasing.
Sec. 103. Sharing of revenues.

       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. Rights-of-way and easements across coastal plain.

[[Page S10331]]

Sec. 118. Conveyance.
Sec. 119. Local government impact aid and community service assistance.
Sec. 120. Allocation of revenues.

                         Subtitle C--Oil Shale

Sec. 131. Removal of prohibition on final regulations for commercial 
              leasing program for oil shale resources on public land.

             TITLE II--ALTERNATIVE ENERGY AND CONSERVATION

 Subtitle A--Conservation Reserve and Renewable Energy Reserve Accounts

Sec. 201. Conservation Reserve and Renewable Energy Reserve Accounts.

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

Sec. 211. Procurement and acquisition of alternative fuels.

                  TITLE I--DOMESTIC ENERGY PRODUCTION

                  Subtitle A--Outer Continental Shelf

     SEC. 101. TERMINATION OF PROHIBITIONS ON EXPENDITURES FOR, 
                   AND WITHDRAWALS FROM, OFFSHORE AND ONSHORE 
                   LEASING AND OTHER LIMITATIONS ON ENERGY 
                   PRODUCTION.

       (a) Prohibitions on Expenditures.--Notwithstanding any 
     other provision of law, all provisions of Federal law that 
     prohibit the expenditure of appropriated funds to conduct 
     natural gas, oil, oil shale, and other energy production 
     leasing, preleasing, and related activities on Federal land 
     shall have no force or effect with respect to the activities.
       (b) Revocation Withdrawals.--Notwithstanding any other 
     provision of law, all withdrawals of Federal submerged land 
     of the outer Continental Shelf from leasing (including 
     withdrawals by the President under section 12(a) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1341(a)), are revoked 
     and are no longer in force or effect with respect to the 
     leasing of areas for exploration for, and development and 
     production of, natural gas and oil.
       (c) Gulf of Mexico Oil and Gas.--Section 104 of the Gulf of 
     Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; 
     Public Law 109-432) is repealed.
       (d) Conforming Amendments.--
       (1) 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.
       (2) 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 by striking ``Except as provided in section 104, 
     the'' and inserting ``The''.

     SEC. 102. COORDINATION WITH SECRETARY OF DEFENSE ON LEASING.

       The Outer Continental Shelf Lands Act is amended by 
     inserting after section 9 (43 U.S.C. 1338) the following:

     ``SEC. 10. COORDINATION WITH SECRETARY OF DEFENSE ON LEASING.

       ``(a) In General.--The Secretary shall consult with the 
     Secretary of Defense regarding military operations needs for 
     the outer Continental Shelf.
       ``(b) Conflicts.--
       ``(1) In general.--The Secretary shall work with the 
     Secretary of Defense to resolve any conflict that may arise 
     between operations described in subsection (a) and leasing 
     under this Act.
       ``(2) Unresolved issues.--If the Secretary and the 
     Secretary of Defense are unable to resolve any conflict 
     described in paragraph (1), any unresolved issue shall be 
     referred by the Secretaries to the President in a timely 
     fashion for immediate resolution.''.

     SEC. 103. SHARING OF REVENUES.

       (a) In General.--Section 8(g) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1337(g)) is amended--
       (1) in paragraph (2), by striking ``(2) Notwithstanding'' 
     and inserting the following:
       ``(2) Disposition of revenues.--Except as provided in 
     paragraph (6) and notwithstanding'';
       (2) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively; and
       (3) by inserting after paragraph (5) the following:
       ``(6) Bonus bids and royalties under qualified leases.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Adjacent state.--The term `adjacent State' means, 
     with respect to any program, plan, lease sale, leased tract, 
     or other activity proposed, conducted, or approved pursuant 
     to 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 the program, plan, lease sale, leased tract, or 
     activity applies or is, or is proposed to be, conducted.
       ``(ii) Adjacent zone.--The term `adjacent zone' means, with 
     respect to any program, plan, lease sale, leased tract, or 
     other activity proposed, conducted, or approved pursuant to 
     this Act, the portion of the outer Continental Shelf for 
     which the laws of an adjacent State are declared, pursuant to 
     section 4(a)(2), to be the law of the United States.
       ``(iii) Producing state.--The term `producing State' means 
     an adjacent State having an adjacent zone containing leased 
     tracts from which are derived bonus bids and royalties under 
     a lease under this Act.
       ``(iv) Qualified lease.--The term `qualified lease' means a 
     natural gas or oil lease made available under this Act 
     granted after the date of enactment of the Harmonizing 
     America's Energy, Economy, Environment, and National Security 
     Act of 2008, for an area that is available for leasing as a 
     result of enactment of section 101 of that Act.
       ``(v) State.--The term `State' includes--

       ``(I) the Commonwealth of Puerto Rico; and
       ``(II) any other territory or possession of the United 
     States.

       ``(B) New leases.--Of amounts received by the United States 
     as bonus bids, royalties, rentals, and other sums collected 
     under any qualified lease on submerged land made available 
     for leasing under this Act by the enactment of section 101 of 
     the Harmonizing America's Energy, Economy, Environment, and 
     National Security Act of 2008 that are located within the 
     seaward boundaries of a State established under section 
     4(a)(2)(A)--
       ``(i) 27 percent shall be paid to producing States with 
     respect to that submerged land;
       ``(ii) 25 percent shall be deposited in the Conservation 
     Reserve Account established by section 201(a)(1) of the 
     Harmonizing America's Energy, Economy, Environment, and 
     National Security Act of 2008;
       ``(iii) 25 percent shall be deposited in the Renewable 
     Energy Reserve Account established by section 201(a)(2) of 
     that Act;
       ``(iv) 20 percent shall be deposited in the general fund of 
     the Treasury of the United States for debt reduction; and
       ``(v) subject to the availability of appropriations, 3 
     percent may be available to the Secretary of Health and Human 
     Services for carrying 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.).
       ``(C) Leased tract that lies partially within the seaward 
     boundaries of a state.--In the case of a leased tract that 
     lies partially within the seaward boundaries of a State, the 
     amount of bonus bids and royalties from the tract that is 
     subject to subparagraph (B) with respect to the State shall 
     be a percentage of the total amounts of bonus bids and 
     royalties from the tract that is equivalent to the total 
     percentage of the surface acreage of the tract that lies 
     within the seaward boundaries.
       ``(D) Application.--This paragraph applies to bonus bids 
     and royalties received by the United States under qualified 
     leases after September 30, 2008.''.
       (b) Establishment of State Seaward Boundaries.--Section 
     4(a)(2) of the Outer Continental Shelf Lands Act (43 U.S.C. 
     1333(a)(2)) is amended--
       (1) by striking ``(2)(A) To'' and inserting the following:
       ``(2) Laws of adjacent states; international boundary 
     disputes.--
       ``(A) Laws of adjacent states.--
       ``(i) In general.--To''; and
       (2) in subparagraph (A)--
       (A) in the first sentence, by striking ``, and the 
     President'' and all that follows through the end of the 
     sentence and inserting a period;
       (B) by inserting after clause (i) (as designated by 
     paragraph (1)) the following:
       ``(ii) Extended lines.--

       ``(I) In general.--Subject to subclauses (II) and (III), 
     the extended lines described in clause (i) shall be 
     considered to be indicated on the maps for each outer 
     Continental Shelf region entitled--

       ``(aa) `Alaska OCS Region State Adjacent Zone and OCS 
     Planning Areas';
       ``(bb) `Pacific OCS Region State Adjacent Zones and OCS 
     Planning Areas';
       ``(cc) `Gulf of Mexico OCS Region State Adjacent Zones and 
     OCS Planning Areas'; and
       ``(dd) `Atlantic OCS Region State Adjacent Zones and OCS 
     Planning Areas'.

       ``(II) Maps.--For the purpose of subclause (I), all of the 
     maps described in subclause (I) are dated September 2005 and 
     on file in the Office of the Director, Minerals Management 
     Service.
       ``(III) Gulf of mexico.--Subclause (I) shall not apply with 
     respect to the treatment under section 105 of the Gulf of 
     Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; 
     Public Law 109-432) of qualified outer Continental Shelf 
     revenues deposited and disbursed under section 105(a)(2) of 
     that Act.''; and

       (C) by striking ``All of such applicable laws'' and 
     inserting the following:
       ``(iii) Administration; enforcement.--The applicable laws 
     described in subparagraph (A)''.

       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

[[Page S10332]]

     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, 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

[[Page S10333]]

     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;
       (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.--

[[Page S10334]]

       (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. 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. 118. 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. 119. 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 120(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 Secretary of 
     the Treasury shall deposit into the Fund, $35,000,000 each 
     year from the amount available under section 120(1).
       (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 land lies 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. 120. 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) 27 percent shall be disbursed to the State of Alaska.
       (2) 25 percent shall be deposited in the Conservation 
     Reserve Account established by section 201(a)(1).
       (3) 25 percent shall be deposited in the Renewable Energy 
     Reserve Account established by section 201(a)(2).
       (4) 20 percent shall be deposited in the general fund of 
     the Treasury of the United States for debt reduction.
       (5) 3 percent shall be available to the Secretary of Health 
     and Human Services for carrying 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.).

                         Subtitle C--Oil Shale

     SEC. 131. REMOVAL OF PROHIBITION ON FINAL REGULATIONS FOR 
                   COMMERCIAL LEASING PROGRAM FOR OIL SHALE 
                   RESOURCES ON PUBLIC LAND.

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

             TITLE II--ALTERNATIVE ENERGY AND CONSERVATION

 Subtitle A--Conservation Reserve and Renewable Energy Reserve Accounts

     SEC. 201. CONSERVATION RESERVE AND RENEWABLE ENERGY RESERVE 
                   ACCOUNTS.

       (a) In General.--For budgetary purposes, there are 
     established in the Treasury of the United States as separate 
     accounts--
       (1) the Conservation Reserve Account, to offset the cost of 
     legislation enacted on or after the date of enactment of this 
     Act for conservation programs (including weatherization) and 
     conservation tax credits and deductions for energy efficiency 
     in the residential, commercial, industrial, and public 
     sectors (including conservation districts); and
       (2) the Renewable Energy Reserve Account, to offset the 
     cost of legislation enacted on or after the date of enactment 
     of this Act--
       (A) to accelerate the use of cleaner domestic energy 
     resources and alternative fuels;
       (B) to promote the use of energy-efficient products and 
     practices; and
       (C) to increase research, development, and deployment of 
     clean renewable energy and efficiency technologies and job 
     training programs for those purposes.
       (b) Procedure for Adjustments.--
       (1) Budget committee chairman.--After the reporting of a 
     bill or joint resolution, or the offering of an amendment or 
     the submission of a conference report for a bill or joint 
     resolution, that provides funding for the purposes described 
     in paragraph (1) or (2) of subsection (a) in excess of the 
     amount of the deposits under this Act or an amendment made by 
     this Act for those purposes for fiscal year 2009, the 
     chairman of the Committee on the Budget of the applicable 
     House of Congress shall make the adjustments described in 
     paragraph (2) for the amount of new budget authority and 
     outlays in that measure and the outlays resulting from the 
     budget authority.
       (2) Matters to be adjusted.--The adjustments referred to in 
     paragraph (1) shall be made to--
       (A) the discretionary spending limits, if any, specified in 
     the appropriate concurrent resolution on the budget;

[[Page S10335]]

       (B) the allocations made pursuant to the appropriate 
     concurrent resolution on the budget pursuant to section 
     302(a) of the Congressional Budget Act of 1974 (2 U.S.C. 
     633(a)); and
       (C) the budget aggregates contained in the appropriate 
     concurrent resolution on the budget as required by section 
     301(a) of the Congressional Budget Act of 1974 (2 U.S.C. 
     632(a)).
       (3) Amounts of adjustments.--The adjustments referred to in 
     paragraphs (1) and (2) shall not exceed the receipts 
     estimated by the Congressional Budget Office that are 
     attributable to this Act and the amendments made by this Act 
     for the fiscal year in which the adjustments are made.
       (c) Consultation.--Legislation shall not be treated as 
     legislation referred to in subsection (a) unless any 
     expenditure under the legislation for a purpose referred to 
     in that subsection may be made only after consultation with 
     (as appropriate)--
       (1) the Administrator of the Environmental Protection 
     Agency;
       (2) the Administrator of the National Oceanic and 
     Atmospheric Administration;
       (3) the Secretary of the Army, acting through the Corps of 
     Engineers; and
       (4) the Secretary of State.
       (d) Maintenance of Effort by States.--The Secretary of the 
     Interior, the Secretary of Health and Human Services, the 
     Secretary of Energy, and any other Federal official with 
     authority to implement legislation referred to in subsection 
     (a) shall ensure that financial assistance provided to a 
     State under the legislation for any purpose with amounts made 
     available under this section or in any legislation with 
     respect to which subsection (a) applies supplements, and does 
     not replace, the amounts expended by the State for that 
     purpose before the date of enactment of this Act.

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

     SEC. 211. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

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