[Congressional Record Volume 158, Number 50 (Tuesday, March 27, 2012)]
[Senate]
[Pages S2093-S2112]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                           TEXT OF AMENDMENTS

  SA 1953. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, between lines 3 and 4, insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. BAN ON EXPORTING CRUDE OIL PRODUCED ON FEDERAL 
                   LAND.

       (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.
       (F) Residual fuel oil.
       (G) Lubricants.
       (H) Waxes.
       (I) Petroleum coke.
       (J) Asphalt and road oil.
       (2) Public land.--The term ``public land'' means any land 
     and interest in land owned by the United States within the 
     several States and administered by the Secretary concerned, 
     without regard to how the United States acquired ownership.
       (3) Secretary concerned.--The term ``Secretary concerned'' 
     means--
       (A) the Secretary of Agriculture (acting through the Chief 
     of the Forest Service), with respect to National Forest 
     System land; and
       (B) the Secretary of the Interior, with respect to land 
     managed by the Bureau of Land Management (including land held 
     for the benefit of an Indian tribe).
       (b) Ban.--Notwithstanding any other provision of law, 
     petroleum extracted from public land in the United States 
     (including land located on the outer Continental Shelf), or a 
     petroleum product produced from the petroleum, may not be 
     exported from the United States.
                                 ______
                                 
  SA 1954. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, between lines 3 and 4, insert the following:

     TITLE III--DILIGENT DEVELOPMENT OF FEDERAL OIL AND GAS LEASES

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Use It or Lose It Act of 
     2012''.

     SEC. 302. 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); 
     and
       (2) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
     et seq.).

     SEC. 303. NONPRODUCING LEASE FEE.

       (a) Onshore Oil and Gas Leases.--Section 17 of the Mineral 
     Leasing Act (30 U.S.C. 226) is amended by adding at the end 
     the following:
       ``(q) Nonproducing Lease Fee.--In the case of any lease for 
     oil or gas issued on or after the date of enactment of this 
     subsection, as a condition of the lease, the Secretary shall 
     require the lessee to pay an annual fee of $4 per acre on the 
     acres covered by the lease if production is not occurring.''.
       (b) Outer Continental Shelf Oil and Gas Leases.--Section 8 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(d)) 
     is amended--
       (1) by striking ``(d) No bid'' and inserting the following:
       ``(d) Due Diligence.--
       ``(1) In general.--No bid''; and
       (2) by adding at the end the following:
       ``(2) Nonproducing lease fee.--In the case of any lease for 
     oil or gas issued on or after the date of enactment of this 
     paragraph, as a condition of the lease, the Secretary shall 
     require the lessee to pay an annual fee of $4 per acre on the 
     acres covered by the lease if production is not occurring.''.

     SEC. 304. REGULATIONS.

       In the case of leases covered by this title and the 
     amendments made by this title, not later than 180 days after 
     the date of enactment of this Act, the Secretary of the 
     Interior shall issue 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 describing how the lessee will meet 
     the benchmarks;
       (3) in establishing requirements under paragraphs (1) and 
     (2), take into account the differences in development 
     conditions and circumstances in the areas to be developed; 
     and
       (4) implement the fee requirements established by the 
     amendments made by section 303.
                                 ______
                                 
  SA 1955. Mr. KOHL (for himself, Mr. Leahy, Mr. Grassley, Mr. Casey, 
Mr. Brown of Ohio, Mr. Blumenthal, Mr. Manchin, and Mr. Schumer) 
submitted an amendment intended to be proposed by him to the bill S. 
2204, to eliminate unnecessary tax subsidies and promote renewable 
energy and energy conservation; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC. __. NO OIL PRODUCING AND EXPORTING CARTELS ACT OF 2012.

       (a) Short Title.--This section may be cited as the ``No Oil 
     Producing and Exporting Cartels Act of 2012'' 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.--
       ``(1) In general.--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.
       ``(2) No private right of action.--No private right of 
     action is authorized under this section.''.
       (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 1956. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       At the end of the bill, add the following:

                  TITLE IV--WESTERN ENERGY DEVELOPMENT

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``American Energy and 
     Western Jobs Act''.

     SEC. 402. RESCISSION OF CERTAIN INSTRUCTION MEMORANDA.

       The following are rescinded and shall have no force or 
     effect:
       (1) The Bureau of Land Management Instruction Memorandum 
     entitled ``Oil and Gas Leasing Reform--Land Use Planning and 
     Lease Parcel Reviews'', numbered 2010 117, and dated May 17, 
     2010.
       (2) The Bureau of Land Management Instruction Memorandum 
     entitled ``Energy Policy Act Section 390 Categorical 
     Exclusion Policy Revision'', numbered 2010 118, and dated May 
     17, 2010.
       (3) Secretarial Order No. 3310 issued by the Secretary of 
     the Interior on December 22, 2010.

     SEC. 403. AMENDMENTS TO THE MINERAL LEASING ACT.

       (a) Onshore Oil and Gas Lease Issuance Improvement.--
     Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C. 
     226(b)(1)(A)) is amended in the seventh sentence, by striking 
     ``Leases shall be issued within 60 days following payment by 
     the successful bidder of the remainder of the bonus bid, if 
     any, and the annual rental for the first lease year'' and 
     inserting ``The Secretary of the Interior shall automatically 
     issue a lease 60 days after the date of the payment by the 
     successful bidder of the remainder of the bonus bid, if any, 
     and the annual rental for the first lease year, unless the 
     Secretary of the Interior is able to issue the lease before 
     that date. The filing of any protest to the sale or issuance 
     of a lease shall not extend the date by which the lease is to 
     be issued''.

[[Page S2094]]

       (b) Judicial Review.--Section 17 of the Mineral Leasing Act 
     (30 U.S.C. 226) is amended by adding at the end the 
     following:
       ``(q) Judicial Review.--Any action seeking judicial review 
     of the adequacy of any program or site-specific environmental 
     impact statement under section 102 of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332) concerning 
     oil and gas leasing for onshore Federal land shall be barred 
     unless the action is brought in the appropriate district 
     court of the United States by the date that is 60 days after 
     the date on which there is published in the Federal Register 
     the notice of the availability of the environmental impact 
     statement.''.
       (c) Determination of Impact of Proposed Policy 
     Modifications.--The Mineral Leasing Act is amended by 
     inserting after section 37 (30 U.S.C. 193) the following:

     ``SEC. 38. DETERMINATION OF IMPACT OF PROPOSED POLICY 
                   MODIFICATIONS.

       ``(a) Definitions.--In this section:
       ``(1) Department.--The term `Department' means the 
     Department of the Interior.
       ``(2) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.
       ``(b) Duty of Secretary.--
       ``(1) In general.--Before the modification and 
     implementation of any onshore oil or natural gas preleasing 
     or leasing and development policy (as in effect as of January 
     1, 2010) or a policy relating to protecting the wilderness 
     characteristics of public land, the Secretary shall--
       ``(A) complete an economic impact assessment in accordance 
     with paragraph (2); and
       ``(B) issue a determination that the proposed policy 
     modification would have the effects described in paragraph 
     (2)(A).
       ``(2) Requirements.--In carrying out an assessment to 
     determine the impact of a proposed policy modification 
     described in paragraph (1), the Secretary shall--
       ``(A) in consultation with the appropriate officials of 
     each State (including political subdivisions of the State) in 
     which 1 or more parcels of land subject to oil and natural 
     gas leasing are located and any other appropriate individuals 
     or entities, as determined by the Secretary--
       ``(i)(I) carry out an economic analysis of the impact of 
     the policy modification on oil- and natural gas-related 
     employment opportunities and domestic reliance on foreign 
     imports of petroleum resources; and
       ``(II) certify that the policy modification would not 
     result in a detrimental impact on employment opportunities 
     relating to oil- and natural gas-related development or 
     contribute to an increase in the domestic use of imported 
     petroleum resources; and
       ``(ii) carry out a policy assessment to determine the 
     manner by which the policy modification would impact--

       ``(I) revenues from oil and natural gas receipts to the 
     general fund of the Treasury, including a certification that 
     the modification would, for the 10-year period beginning on 
     the date of implementation of the modification, not 
     contribute to an aggregate loss of oil and natural gas 
     receipts; and
       ``(II) revenues to the treasury of each affected State that 
     shares oil and natural gas receipts with the Federal 
     Government, including a certification that the modification 
     would, for the 10-year period beginning on the date of 
     implementation of the modification, not contribute to an 
     aggregate loss of oil and natural gas receipts; and

       ``(B) provide notice to the public of, and an opportunity 
     to comment on, the policy modification in a manner consistent 
     with subchapter II of chapter 5 and chapter 7 of title 5, 
     United States Code (commonly known as the `Administrative 
     Procedure Act').''.

     SEC. 404. ANNUAL REPORT ON REVENUES GENERATED FROM MULTIPLE 
                   USE OF PUBLIC LAND.

       (a) Annual Report.--As part of the annual agency budget, 
     the Secretary of the Interior (acting through the Director of 
     the Bureau of Land Management) and the Secretary of 
     Agriculture (acting through the Chief of the Forest Service) 
     shall submit an annual report detailing, for each field 
     office, the revenues generated by each use of public land.
       (b) Inclusions.--The report shall include--
       (1) a line item for each use of public land, including use 
     for--
       (A) grazing;
       (B) recreation;
       (C) timber;
       (D) leasable minerals, including a distinct accounting for 
     each of oil, natural gas, coal, and geothermal development;
       (E) locatable minerals;
       (F) renewable energy sources, including a distinct 
     accounting for each of wind and solar energy;
       (G) the sale of land; and
       (H) transmission; and
       (2) identification of the total acres designated as 
     wilderness, wilderness study areas, and wild lands.
       (c) Availability.--The Secretary of the Interior and the 
     Secretary of Agriculture shall make the report prepared under 
     this section publicly available on the applicable agency 
     website.

     SEC. 405. FEDERAL ONSHORE OIL AND NATURAL GAS PRODUCTION 
                   GOAL.

       (a) In General.--The Secretary of the Interior shall 
     establish a domestic strategic production goal for the 
     development of oil and natural gas managed by the Federal 
     Government.
       (b) Requirements.--In establishing the goal under 
     subsection (a), the Secretary shall--
       (1) ensure that the United States maintains or increases 
     production of Federal onshore oil and natural gas;
       (2) ensure that the 10-year production outlook for Federal 
     onshore oil and natural gas be provided annually;
       (3) examine steps to streamline the permitting process to 
     meet the goal;
       (4) include the goal in each resource management plan; and
       (5) analyze each proposed policy of the Department of the 
     Interior for the potential impact of the policy on achieving 
     the goal before implementation of the policy.

     SEC. 406. OIL SHALE.

       (a) Additional Research and Development Lease Sales.--Not 
     later than 180 days after the date of enactment of this Act, 
     the Secretary of the Interior shall hold a lease sale in 
     which the Secretary of the Interior shall offer an additional 
     10 parcels for lease for research, development, and 
     demonstration of oil shale resources in accordance with the 
     terms offered in the solicitation of bids for the leases 
     described in the notice entitled ``Potential for Oil Shale 
     Development; Call for Nominations--Oil Shale Research, 
     Development, and Demonstration (R, D, and D) Program'' (74 
     Fed. Reg. 2611).
       (b) Application of Regulations.--The final rule entitled 
     ``Oil Shale Management--General'' (73 Fed. Reg. 69414), shall 
     apply to all commercial leasing for the management of 
     federally owned oil shale and any associated minerals located 
     on Federal land.
                                 ______
                                 
  SA 1957. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, strike lines 4 and 5 and insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. ADOPTION OF EXISTING ENVIRONMENTAL DOCUMENTS.

       (a) Definitions.--In this section:
       (1) Agency.--The term ``agency'' has the meaning given the 
     term in section 551 of title 5, United States Code.
       (2) Circulate.--The term ``circulate'' means to distribute 
     an environmental impact statement to another agency for the 
     consideration of that agency.
       (3) Cooperating agency.--The term ``cooperating agency'' 
     means any agency, other than a lead agency, that has 
     jurisdiction by law or special expertise with respect to any 
     environmental impact involved in a proposal (or a reasonable 
     alternative) for legislation or other major Federal action 
     significantly affecting the quality of the human environment.
       (4) Environmental assessment.--The term ``environmental 
     assessment'' has the meaning given the term in section 1508.9 
     of title 40, Code of Federal Regulations (or a successor 
     regulation).
       (5) Environmental document.--The term ``environmental 
     document'' means an environmental impact statement or an 
     environmental assessment.
       (6) Environmental impact statement.--The term 
     ``environmental impact statement'' has the meaning given the 
     term in section 1508.11 of title 40, Code of Federal 
     Regulations (or a successor regulation).
       (7) Finding of no significant impact.--The term ``finding 
     of no significant impact'' has the meaning given the term in 
     section 1508.13 of title 40, Code of Federal Regulations (or 
     a successor regulation).
       (8) Human environment.--The term ``human environment'' has 
     the meaning given the term in section 1508.14 of title 40, 
     Code of Federal Regulations (or a successor regulation).
       (9) Lead agency.--The term ``lead agency'' has the meaning 
     given the term in section 1508.16 of title 40, Code of 
     Federal Regulations (or a successor regulation).
       (10) Major federal action.--The term ``major Federal 
     action'' has the meaning given the term in section 1508.18 of 
     title 40, Code of Federal Regulations (or a successor 
     regulation).
       (11) Notice of intent.--The term ``notice of intent'' has 
     the meaning given the term in section 1508.22 of title 40, 
     Code of Federal Regulations (or a successor regulation).
       (b) Adoption of Existing Environmental Assessments.--If an 
     agency determines that an environmental assessment should be 
     prepared for a proposed action relating to oil and gas 
     development on Federal public land or water, the agency shall 
     adopt, in whole or in part, an existing Federal draft or 
     final environmental assessment if--
       (1) the existing assessment meets the standards for an 
     adequate assessment under the regulations promulgated by the 
     agency and the Council on Environmental Quality;
       (2) the action covered by the existing assessment and the 
     proposed action are substantially the same; and
       (3) there are no significant new circumstances or 
     information relating to the quality of the human environment 
     affected by the proposed action.
       (c) Publication of Findings of No Significant Impact and 
     Notices of Intent.--
       (1) Finding of no significant impact.--If a proposed action 
     is determined not to be a major Federal action that 
     significantly affects the quality of the human environment 
     under the National Environmental Policy Act (42 U.S.C. 4321 
     et seq.), an agency adopting an existing environmental 
     assessment under subsection (b) shall publish for public 
     review a finding of no significant impact in

[[Page S2095]]

     accordance with the regulations of the agency.
       (2) Notice of intent.--If a proposed action is determined 
     to be a major Federal action that significantly affects the 
     quality of the human environment under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), an 
     agency adopting an existing environmental assessment under 
     subsection (b) shall publish for public review a notice of 
     intent in accordance with the regulations of the agency.
       (d) Adoption of Existing Environmental Impact Statements.--
     If a proposed action of an agency relating to oil and gas 
     development on Federal public land or water is determined to 
     be a major Federal action that significantly affects the 
     quality of the human environment under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 
     the agency shall adopt, in whole or in part, an existing 
     Federal draft or final environmental impact statement if--
       (1) the existing statement meets the standards for an 
     adequate statement under the regulations promulgated by the 
     Council on Environmental Quality;
       (2) the action covered by the existing statement and the 
     proposed action are substantially the same; and
       (3) there are no significant new circumstances or 
     information relating to the quality of the human environment 
     affected by the proposed action.
       (e) Recirculation of Environmental Impact Statements.--
       (1) Draft statement.--Subject to paragraphs (2) and (3), an 
     agency adopting an environmental impact statement of another 
     agency shall recirculate the statement as a draft statement.
       (2) Final statement.--An agency adopting as final the 
     environmental impact statement of another agency may 
     recirculate the statement as a final statement.
       (3) Cooperating agency.--A cooperating agency adopting the 
     environmental impact statement of a lead agency shall not 
     recirculate the statement if the cooperating agency 
     determines, after an independent review of the statement, 
     that the comments and suggestions of the cooperating agency 
     have been satisfied.
       (f) Finality of Adopted Document.--An agency may not adopt 
     as final an environmental document prepared by another agency 
     if, at the time of the proposed adoption--
       (1) the existing document was not final within the agency 
     that prepared the environmental document;
       (2) the adequacy of the existing document is the subject of 
     a pending judicial action; or
       (3) in the case of an environmental impact statement, the 
     action the existing statement assesses is the subject of a 
     referral under part 1504 of title 40, Code of Federal 
     Regulations (commonly known as ``Predecision referrals to the 
     Council of proposed Federal actions determined to be 
     environmentally unsatisfactory'') (or a successor 
     regulation).
       (g) Judicial Review.--The decision of an agency to adopt, 
     in whole or in part, an existing environmental assessment or 
     environmental impact statement shall not be subject to 
     judicial review.
       (h) Regulations.--Notwithstanding any other provision of 
     this section, an agency shall not adopt, in whole or in part, 
     an existing environmental impact statement when issuing a 
     proposed or final rule.

                      TITLE IV--BUDGETARY EFFECTS

     SEC. 401. DEFICIT REDUCTION.

                                 ______
                                 
  SA 1958. Mr. HELLER submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; 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 ``Gas Price 
     Relief Act of 2012''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:
       Sec. 1. Short title; table of contents.

                   TITLE I--CONSUMER GAS PRICE RELIEF

       Sec. 101. Reduction of fuel taxes on highway motor fuels.

      TITLE II--INCREASING DOMESTIC TRANSPORTATION FUEL PRODUCTION

              Subtitle A--Outer Continental Shelf Leasing

       Sec. 201. Leasing program considered approved.
       Sec. 202. Lease sales.
       Sec. 203. Coastal Impact assistance program amendments.
       Sec. 204. Seaward boundaries of States.

       Subtitle B--Leasing Program for Land Within Coastal Plain

       Sec. 211. Definitions.
       Sec. 212. Leasing program for land within the Coastal 
           Plain.
       Sec. 213. Lease sales.
       Sec. 214. Grant of leases by the Secretary.
       Sec. 215. Lease terms and conditions.
       Sec. 216. Coastal plain environmental protection.
       Sec. 217. Expedited judicial review.
       Sec. 218. Federal and State distribution of revenues.
       Sec. 219. Rights-of-way across the Coastal plain.
       Sec. 220. Conveyance.
       Sec. 221. Local government impact aid and community service 
           assistance.

          Subtitle C--Approval of Keystone XL Pipeline Project

       Sec. 231. Approval of Keystone XL pipeline project.

    TITLE III--CLOSING LOOPHOLES TO FUND CONSUMER RELIEF AT THE PUMP

       Sec. 301. Modifications of foreign tax credit rules 
           applicable to major integrated oil companies which are 
           dual capacity taxpayers.
       Sec. 302. Limitation on section 199 deduction attributable 
           to oil, natural gas, or primary products thereof.
       Sec. 303. Limitation on deduction for intangible drilling 
           and development costs.
       Sec. 304. Transfer of revenues to Highway Trust Fund.

                   TITLE I--CONSUMER GAS PRICE RELIEF

     SEC. 101. REDUCTION OF FUEL TAXES ON HIGHWAY MOTOR FUELS.

       (a) Taxable Fuels.--
       (1) In general.--Subparagraph (A) of section 4081(a)(2) of 
     the Internal Revenue Code of 1986 is amended--
       (A) by striking ``18.3 cents'' in clause (i) and inserting 
     ``17.3 cents'',
       (B) by striking ``and'' at the end of clause (ii), and
       (C) by striking clause (iii) and inserting the following 
     new clauses:
       ``(iii) in the case of aviation-grade kerosene, 24.3 cents 
     per gallon, and
       ``(iv) in the case of diesel fuel or kerosene not described 
     in clause (iii), 23.3 cents per gallon''.
       (2) Conforming amendment.--Subparagraph (D) of section 
     4081(a)(2) of such Code is amended by striking ``subparagraph 
     (A)(iii) shall be applied by substituting `19.7 cents' for 
     `24.3 cents' '' and inserting ``subparagraph (A)(iv) shall be 
     applied by substituting `17.7 cents' for `23.3 cents' ''.
       (3) Floor stock refunds.--
       (A) In general.--If--
       (i) before the tax reduction date, tax has been imposed 
     under section 4081 of the Internal Revenue Code of 1986 on 
     any highway motor fuel, and
       (ii) on such date such fuel is held by a dealer and has not 
     been used and is intended for sale,

     there shall be credited or refunded (without interest) to the 
     person who paid such tax (hereafter in this subsection 
     referred to as the ``taxpayer'') an amount equal to the 
     excess of the tax paid by the taxpayer over the tax which 
     would be imposed on such fuel had the taxable event occurred 
     on such date.
       (B) Time for filing claims.--No credit or refund shall be 
     allowed or made under this subsection unless--
       (i) claim therefor is filed with the Secretary of the 
     Treasury before the date which is 6 months after the tax 
     reduction date based on a request submitted to the taxpayer 
     before the date which is 3 months after the tax date by the 
     dealer who held the highway motor fuel on such date, and
       (ii) the taxpayer has repaid or agreed to repay the amount 
     so claimed to such dealer or has obtained the written consent 
     of such dealer to the allowance of the credit or the making 
     of the refund.
       (C) Exception for fuel held in retail stocks.--No credit or 
     refund shall be allowed under this subsection with respect to 
     any highway motor fuel in retail stocks held at the place 
     where intended to be sold at retail.
       (D) Definitions.--For purposes of this subsection--
       (i) Tax reduction date.--The term ``tax reduction date'' 
     means the date of enactment of this Act.
       (ii) Other terms.--The terms ``dealer'' and ``held by a 
     dealer'' have the respective meanings given to such terms by 
     section 6412 of such Code.
       (E) Certain rules to apply.--Rules similar to the rules of 
     subsections (b) and (c) of section 6412 of such Code shall 
     apply for purposes of this subsection.
       (b) Retail Tax on Special Fuels.--
       (1) School buses.--Subclause (I) of section 
     4041(a)(1)(C)(iii) of the Internal Revenue Code of 1986 is 
     amended by striking ``7.3 cents'' and inserting ``6.3 
     cents''.
       (2) Certain alternative fuels.--Clause (ii) of section 
     4041(a)(2)(B) of such Code is amended by striking ``24.3 
     cents'' and inserting ``23.3 cents''.
       (3) Compressed natural gas.--Subparagraph (A) of section 
     4041(a)(3) of such Code is amended by striking ``18.3 cents'' 
     and inserting ``17.3 cents''.
       (4) Certain alcohol fuels.--Subparagraph (A) of section 
     4041(m) of such Code is amended--
       (A) by striking ``9.15 cents'' in clause (i) and inserting 
     ``8.15 cents'', and
       (B) by striking ``11.3 cents'' in clause (ii) and inserting 
     ``10.3 cents''.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.
       (d) Sense of the Senate Regarding Consumer Relief.--It is 
     the sense of the Senate that the reduction in tax rates under 
     the amendments made by this section is for the purpose of 
     lowering consumer gas prices.

      TITLE II--INCREASING DOMESTIC TRANSPORTATION FUEL PRODUCTION

              Subtitle A--Outer Continental Shelf Leasing

     SEC. 201. LEASING PROGRAM CONSIDERED APPROVED.

       (a) In General.--The Draft Proposed Outer Continental Shelf 
     Oil and Gas Leasing Program 2010 2015 issued by the Secretary 
     of the Interior (referred to in this section as the 
     ``Secretary'') under section 18 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1344)

[[Page S2096]]

     is considered to have been approved by the Secretary as a 
     final oil and gas leasing program under that section.
       (b) Final Environmental Impact Statement.--The Secretary is 
     considered to have issued a final environmental impact 
     statement for the program described in subsection (a) in 
     accordance with all requirements under section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).
       (c) Exceptions.--Notwithstanding subsections (a) and (b), 
     lease sales 214, 232, and 239 shall not be included in the 
     final leasing program for 2013-2018.

     SEC. 202. LEASE SALES.

       (a) Outer Continental Shelf.--
       (1) In general.--Except as provided in paragraph (2), not 
     later than 30 days after the date of enactment of this Act 
     and every 270 days thereafter, the Secretary of the Interior 
     (referred to in this section as the ``Secretary'') shall 
     conduct a lease sale in each outer Continental Shelf planning 
     area for which the Secretary determines that there is a 
     commercial interest in purchasing Federal oil and gas leases 
     for production on the outer Continental Shelf.
       (2) Subsequent determinations and sales.--If the Secretary 
     determines that there is not a commercial interest in 
     purchasing Federal oil and gas leases for production on the 
     outer Continental Shelf in a planning area under this 
     subsection, not later than 2 years after the date of 
     enactment of the determination and every 2 years thereafter, 
     the Secretary shall--
       (A) determine whether there is a commercial interest in 
     purchasing Federal oil and gas leases for production on the 
     outer Continental Shelf in the planning area; and
       (B) if the Secretary determines that there is a commercial 
     interest described in subparagraph (A), conduct a lease sale 
     in the planning area.
       (b) Renewable Energy and Mariculture.--The Secretary may 
     conduct commercial lease sales of resources owned by United 
     States--
       (1) to produce renewable energy (as defined in section 
     203(b) of the Energy Policy Act of 2005 (42 U.S.C. 
     15852(b))); or
       (2) to cultivate marine organisms in the natural habitat of 
     the organisms.

     SEC. 203. COASTAL IMPACT ASSISTANCE PROGRAM AMENDMENTS.

       Section 31 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1356a) is amended--
       (1) in subsection (c), by adding at the end the following:
       ``(5) Application requirements; availability of funding.--
     On approval of a plan by the Secretary under this section, 
     the producing State shall--
       ``(A) not be subject to any additional application or other 
     requirements (other than notifying the Secretary of which 
     projects are being carried out under the plan) to receive the 
     payments; and
       ``(B) be immediately eligible to receive payments under 
     this section.''; and
       (2) by adding at the end the following:
       ``(e) Funding.--
       ``(1) Streamlining.--
       ``(A) Report.--Not later than 180 days after the date of 
     enactment of this subsection, the Secretary of the Interior 
     (acting through the Director of the Minerals Management 
     Service) (referred to in this subsection as the `Secretary') 
     shall develop a plan that addresses streamlining the process 
     by which payments are made under this section, including 
     recommendations for--
       ``(i) decreasing the time required to approve plans 
     submitted under subsection (c)(1);
       ``(ii) ensuring that allocations to producing States under 
     subsection (b) are adequately funded; and
       ``(iii) any modifications to the authorized uses for 
     payments under subsection (d).
       ``(B) Clean water.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary and the 
     Administrator of the Environmental Protection Agency shall 
     jointly develop procedures for streamlining the permit 
     process required under the Federal Water Pollution Control 
     Act (33 U.S.C. 1251 et seq.) and State laws for restoration 
     projects that are included in an approved plan under 
     subsection (c).
       ``(C) Environmental requirements.--A project funded under 
     this section that does not involve wetlands shall not be 
     subject to environmental review requirements under Federal 
     law.
       ``(2) Cost-sharing requirements.--Any amounts made 
     available to producing States under this section may be used 
     to meet the cost-sharing requirements of other Federal grant 
     programs, including grant programs that support coastal 
     wetland protection and restoration.
       ``(3) Expedited funding.--Not later than 180 days after the 
     date of enactment of this subsection, the Secretary shall 
     develop a procedure to provide expedited funding to projects 
     under this section based on estimated revenues to ensure that 
     the projects may--
       ``(A) secure additional funds from other sources; and
       ``(B) use the amounts made available under this section on 
     receipt.''.

     SEC. 204. SEAWARD BOUNDARIES OF STATES.

       (a) Seaward Boundaries.--Section 4 of the Submerged Lands 
     Act (43 U.S.C. 1312) is amended by striking ``three 
     geographical miles'' each place it appears and inserting ``12 
     nautical miles''.
       (b) Conforming Amendments.--Section 2 of the Submerged 
     Lands Act (43 U.S.C. 1301) is amended--
       (1) in subsection (a)(2), by striking ``three geographical 
     miles'' and inserting ``12 nautical miles''; and
       (2) in subsection (b)--
       (A) by striking ``three geographical miles'' and inserting 
     ``12 nautical miles''; and
       (B) by striking ``three marine leagues'' and inserting ``12 
     nautical miles''.
       (c) Effect of Amendments.--
       (1) In general.--Subject to paragraphs (2) through (4), the 
     amendments made by this section shall not effect Federal oil 
     and gas mineral rights.
       (2) Submerged land.--Submerged land within the seaward 
     boundaries of States shall be--
       (A) subject to Federal oil and gas mineral rights to the 
     extent provided by law;
       (B) 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
       (C) 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.
       (3) Existing leases.--The amendments made by this section 
     shall not affect any Federal oil and gas lease in effect on 
     the date of enactment of this Act.
       (4) Taxation.--
       (A) In general.--Subject to subparagraph (B), a State may 
     exercise all of the sovereign powers of taxation of the State 
     within the entire extent of the seaward boundaries of the 
     State (as extended by the amendments made by this section).
       (B) Limitation.--Nothing in this paragraph affects the 
     authority of a State to tax any Federal oil and gas lease in 
     effect on the date of enactment of this Act.

       Subtitle B--Leasing Program for Land Within Coastal Plain

     SEC. 211. 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.

     SEC. 212. LEASING PROGRAM FOR LAND 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, 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 this subtitle through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (A) 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
       (B) 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 of 1980 (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.
       (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

[[Page S2097]]

       (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.
       (c) Relationship to State and Local Authority.--Nothing in 
     this subtitle expands or limits any State or local regulatory 
     authority.
       (d) 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 
     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.
       (e) 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.
       (f) Regulations.--
       (1) In general.--Not later than 15 months after the date of 
     enactment of this Act, the Secretary shall promulgate 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, subsistence 
     resources, and environment of the Coastal Plain.
       (2) Revision of regulations.--The Secretary shall 
     periodically review and, as appropriate, revise the rules and 
     regulations issued under paragraph (1) to reflect any 
     significant biological, environmental, scientific or 
     engineering data that come to the attention of the Secretary.

     SEC. 213. 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 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. 214. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--On 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 213 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. 215. LEASE TERMS AND CONDITIONS.

       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 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) on 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 
     212(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 the regulations promulgated under this subtitle.

     SEC. 216. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard To Govern 
     Authorized Coastal Plain Activities.--In accordance with 
     section 212, 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 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 shall occur after 
     consultation with the 1 or more 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 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.

[[Page S2098]]

       (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, 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 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. 217. 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), 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 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 Circuit.
       (3) Scope.--
       (A) In general.--Judicial review of a decision of the 
     Secretary relating to a lease sale 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. 218. 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 for each fiscal year--
       (1) 50 percent shall be paid to the State of Alaska; and
       (2) except as provided in section 221(d), the balance shall 
     be deposited in the Treasury and used for Federal budget 
     deficit reduction.
       (b) Payments to Alaska.--Payments to the State of Alaska 
     under this section shall be made semiannually.

     SEC. 219. 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 (16 U.S.C. 3161 et seq.); and
       (2) under title XI of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3161 et seq.), for access 
     authorized by sections 1110 and 1111 of that Act (16 U.S.C. 
     3170, 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 212(f) provisions granting rights-
     of-way and easements described in subsection (a).

     SEC. 220. CONVEYANCE.

       Notwithstanding section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
     remove any

[[Page S2099]]

     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. 221. 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).
       (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--
       (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; and
       (3) 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--
       (A) to coordinate with and advise developers on local 
     conditions and the history of areas affected by development; 
     and
       (B) 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.
       (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'' 
     (referred to in this section as the ``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.--There is authorized 
     to be appropriated to the Secretary from the Fund to provide 
     financial assistance under this section $5,000,000 for each 
     fiscal year.

          Subtitle C--Approval of Keystone XL Pipeline Project

     SEC. 231. APPROVAL OF KEYSTONE XL PIPELINE PROJECT.

       (a) Approval of Cross-border Facilities.--
       (1) In general.--In accordance with section 8 of article 1 
     of the Constitution (delegating to Congress the power to 
     regulate commerce with foreign nations), TransCanada Keystone 
     Pipeline, L.P. is authorized to construct, connect, operate, 
     and maintain pipeline facilities, subject to subsection (c), 
     for the import of crude oil and other hydrocarbons at the 
     United States-Canada Border at Phillips County, Montana, in 
     accordance with the application filed with the Department of 
     State on September 19, 2008 (as supplemented and amended).
       (2) Permit.--Notwithstanding any other provision of law, no 
     permit pursuant to Executive Order 13337 (3 U.S.C. 301 note) 
     or any other similar Executive Order regulating construction, 
     connection, operation, or maintenance of facilities at the 
     borders of the United States, and no additional environmental 
     impact statement, shall be required for TransCanada Keystone 
     Pipeline, L.P. to construct, connect, operate, and maintain 
     the facilities described in paragraph (1).
       (b) Construction and Operation of Keystone XL Pipeline in 
     United States.--
       (1) In general.--The final environmental impact statement 
     issued by the Department of State on August 26, 2011, shall 
     be considered to satisfy all requirements of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
     any other provision of law that requires Federal agency 
     consultation or review with respect to the cross-border 
     facilities described in subsection (a)(1) and the related 
     facilities in the United States described in the application 
     filed with the Department of State on September 19, 2008 (as 
     supplemented and amended).
       (2) Permits.--Any Federal permit or authorization issued 
     before the date of enactment of this Act for the cross-border 
     facilities described in subsection (a)(1), and the related 
     facilities in the United States described in the application 
     filed with the Department of State on September 19, 2008 (as 
     supplemented and amended), shall remain in effect.
       (c) Conditions.--In constructing, connecting, operating, 
     and maintaining the cross-border facilities described in 
     subsection (a)(1) and related facilities in the United States 
     described in the application filed with the Department of 
     State on September 19, 2008 (as supplemented and amended), 
     TransCanada Keystone Pipeline, L.P. shall comply with the 
     following conditions:
       (1) TransCanada Keystone Pipeline, L.P. shall comply with 
     all applicable Federal and State laws (including regulations) 
     and all applicable industrial codes regarding the 
     construction, connection, operation, and maintenance of the 
     facilities.
       (2) Except as provided in subsection (a)(2), TransCanada 
     Keystone Pipeline, L.P. shall comply with all requisite 
     permits from Canadian authorities and applicable Federal, 
     State, and local government agencies in the United States.
       (3) TransCanada Keystone Pipeline, L.P. shall take all 
     appropriate measures to prevent or mitigate any adverse 
     environmental impact or disruption of historic properties in 
     connection with the construction, connection, operation, and 
     maintenance of the facilities.
       (4) The construction, connection, operation, and 
     maintenance of the facilities shall be--
       (A) in all material respects, similar to that described 
     in--
       (i) the application filed with the Department of State on 
     September 19, 2008 (as supplemented and amended); and
       (ii) the final environmental impact statement described in 
     subsection (b)(1); and
       (B) carried out in accordance with--
       (i) the construction, mitigation, and reclamation measures 
     agreed to for the project in the construction mitigation and 
     reclamation plan contained in appendix B of the final 
     environmental impact statement described in subsection 
     (b)(1);
       (ii) the special conditions agreed to between the owners 
     and operators of the project and the Administrator of the 
     Pipeline and Hazardous Materials Safety Administration of the 
     Department of Transportation, as contained in appendix U of 
     the final environmental impact statement;
       (iii) the measures identified in appendix H of the final 
     environmental impact statement, if the modified route 
     submitted by the State of Nebraska to the Secretary of State 
     crosses the Sand Hills region; and
       (iv) the stipulations identified in appendix S of the final 
     environmental impact statement.
       (d) Route in Nebraska.--
       (1) In general.--Any route and construction, mitigation, 
     and reclamation measures for the project in the State of 
     Nebraska that is identified by the State of Nebraska and 
     submitted to the Secretary of State under this section is 
     considered sufficient for the purposes of this section.
       (2) Prohibition.--Construction of the facilities in the 
     United States described in the application filed with the 
     Department of State on September 19, 2008 (as supplemented 
     and amended), shall not commence in the State of Nebraska 
     until the date on which the Secretary of State receives a 
     route for the project in the State of Nebraska that is 
     identified by the State of Nebraska.
       (3) Receipt.--On the date of receipt of the route described 
     in paragraph (1) by the Secretary of State, the route for the 
     project within the State of Nebraska under this section shall 
     supersede the route for the project in the State specified in 
     the application filed with the Department of State on 
     September 19, 2008 (including supplements and amendments).
       (4) Cooperation.--Not later than 30 days after the date on 
     which the State of Nebraska submits a request to the 
     Secretary of State or any appropriate Federal official, the 
     Secretary of State or Federal official shall provide 
     assistance that is consistent with the law of the State of 
     Nebraska.
       (e) Administration.--

[[Page S2100]]

       (1) In general.--Any action taken to carry out this section 
     (including the modification of any route under subsection 
     (d)) shall not constitute a major Federal action under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       (2) State siting authority.--Nothing in this section alters 
     any provision of State law relating to the siting of 
     pipelines.
       (3) Private property.--Nothing in this section alters any 
     Federal, State, or local process or condition in effect on 
     the date of enactment of this Act that is necessary to secure 
     access from an owner of private property to construct the 
     project.
       (f) Federal Judicial Review.--The cross-border facilities 
     described in subsection (a)(1), and the related facilities in 
     the United States described in the application filed with the 
     Department of State on September 19, 2008 (as supplemented 
     and amended), that are approved by this section, and any 
     permit, right-of-way, or other action taken to construct or 
     complete the project pursuant to Federal law, shall only be 
     subject to judicial review on direct appeal to the United 
     States Court of Appeals for the District of Columbia Circuit.

    TITLE III--CLOSING LOOPHOLES TO FUND CONSUMER RELIEF AT THE PUMP

     SEC. 301. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o) and by inserting after subsection (m) the 
     following new subsection:
       ``(n) Special Rules Relating to Major Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a major integrated oil company (as defined 
     in section 167(h)(5)(B)) to a foreign country or possession 
     of the United States shall not be considered a tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.

     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

     SEC. 302. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO 
                   OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

       (a) Denial of Deduction.--Paragraph (4) of section 199(c) 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subparagraph:
       ``(E) Special rule for certain oil and gas income.--In the 
     case of any taxpayer who is a major integrated oil company 
     (as defined in section 167(h)(5)(B)) for the taxable year, 
     the term `domestic production gross receipts' shall not 
     include gross receipts from the production, transportation, 
     or distribution of oil, natural gas, or any primary product 
     (within the meaning of subsection (d)(9)) thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 303. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
                   DEVELOPMENT COSTS.

       (a) In General.--Section 263(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new sentence: ``This subsection shall not apply to amounts 
     paid or incurred by a taxpayer in any taxable year in which 
     such taxpayer is a major integrated oil company (as defined 
     in section 167(h)(5)(B)).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2011.

     SEC. 304. TRANSFER OF REVENUES TO HIGHWAY TRUST FUND.

       Subsection (b) of section 9503 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(7) Transfers of certain revenues.--There are hereby 
     appropriated the Highway Trust Fund amounts equivalent to the 
     amounts received in the Treasury that are attributable to the 
     amendments made by sections 301, 302, and 303 of the Gas 
     Price Relief Act of 2012.''.
                                 ______
                                 
  SA 1959. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, strike lines 4 and 5 and insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. HIGHWAY BRIDGE PROGRAM AND DEFICIT REDUCTION.

       (a) In General.--Of the amounts made available as a result 
     of the repeal under subsection (b) for each fiscal year--
       (1) 50 percent shall be transferred to the Secretary of 
     Transportation and used to carry out the highway bridge 
     program under section 144 of title 23, United States Code; 
     and
       (2) 50 percent shall be transferred to the general fund of 
     the Treasury and used for deficit reduction.
       (b) Repeal.--Title XVII of the Energy Policy Act of 2005 
     (22 U.S.C. 16511 et seq.) is repealed.

                      TITLE IV--BUDGETARY EFFECTS

     SEC. 401. DEFICIT REDUCTION.

                                 ______
                                 
  SA 1960. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SEC. __1. TAX ON BUSINESS ACTIVITIES.

       (a) In General.--Section 11 of the Internal Revenue Code of 
     1986 is amended to read as follows:

     ``SEC. 11. TAX IMPOSED ON BUSINESS ACTIVITIES.

       ``(a) Tax Imposed.--There is hereby imposed on every person 
     engaged in a business activity a tax equal to 17 percent of 
     the business taxable income of such person.
       ``(b) Liability for Tax.--The tax imposed by this section 
     shall be paid by the person engaged in the business activity, 
     whether such person is an individual, partnership, 
     corporation, or otherwise.
       ``(c) Business Taxable Income.--For purposes of this 
     section--
       ``(1) In general.--The term `business taxable income' means 
     gross active income reduced by the deductions specified in 
     subsection (d).
       ``(2) Gross active income.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `gross active income' means gross receipts from--
       ``(i) the sale or exchange of property or services in the 
     United States by any person in connection with a business 
     activity, and
       ``(ii) the export of property or services from the United 
     States in connection with a business activity.
       ``(B) Exchanges.--For purposes of this section, the amount 
     treated as gross receipts from the exchange of property or 
     services is the fair market value of the property or services 
     received, plus any money received.
       ``(C) Coordination with special rules for financial 
     services, etc.--Except as provided in subsection (e)--
       ``(i) the term `property' does not include money or any 
     financial instrument, and
       ``(ii) the term `services' does not include financial 
     services.
       ``(3) Exemption from tax for activities of governmental 
     entities and tax-exempt organizations.--For purposes of this 
     section, the term `business activity' does not include any 
     activity of a governmental entity or of any other 
     organization which is exempt from tax under this chapter.
       ``(d) Deductions.--
       ``(1) In general.--The deductions specified in this 
     subsection are--
       ``(A) the cost of business inputs for the business 
     activity,
       ``(B) wages (as defined in section 3121(a) without regard 
     to paragraph (1) thereof) which are paid in cash for services 
     performed in the United States as an employee, and
       ``(C) retirement contributions to or under any plan or 
     arrangement which makes retirement distributions for the 
     benefit of such employees to the extent such contributions 
     are allowed as a deduction under section 404.
       ``(2) Business inputs.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `cost of business inputs' means--

[[Page S2101]]

       ``(i) the amount paid for property sold or used in 
     connection with a business activity,
       ``(ii) the amount paid for services (other than for the 
     services of employees, including fringe benefits paid by 
     reason of such services) in connection with a business 
     activity, and
       ``(iii) any excise tax, sales tax, customs duty, or other 
     separately stated levy imposed by a Federal, State, or local 
     government on the purchase of property or services which are 
     for use in connection with a business activity.

     Such term shall not include any tax imposed by chapter 2 or 
     21.
       ``(B) Exceptions.--Such term shall not include--
       ``(i) items described in subparagraphs (B) and (C) of 
     paragraph (1), and
       ``(ii) items for personal use not in connection with any 
     business activity.
       ``(C) Exchanges.--For purposes of this section, the amount 
     treated as paid in connection with the exchange of property 
     or services is the fair market value of the property or 
     services exchanged, plus any money paid.
       ``(3) Retirement distributions.--For purposes of paragraph 
     (1)(C), the term `retirement distribution' means any 
     distribution from--
       ``(A) a plan described in section 401(a) which includes a 
     trust exempt from tax under section 501(a),
       ``(B) an annuity plan described in section 403(a),
       ``(C) an annuity contract described in section 403(b),
       ``(D) an individual retirement account described in section 
     408(a),
       ``(E) an individual retirement annuity described in section 
     408(b),
       ``(F) an eligible deferred compensation plan (as defined in 
     section 457),
       ``(G) a governmental plan (as defined in section 414(d)), 
     or
       ``(H) a trust described in section 501(c)(18).

     Such term includes any plan, contract, account, annuity, or 
     trust which, at any time, has been determined by the 
     Secretary to be such a plan, contract, account, annuity, or 
     trust.
       ``(e) Special Rules for Financial Inter-mediation Service 
     Activities.--In the case of the business activity of 
     providing financial intermediation services, the taxable 
     income from such activity shall be equal to the value of the 
     intermediation services provided in such activity.
       ``(f) Exception for Services Performed as Employee.--For 
     purposes of this section, the term `business activity' does 
     not include the performance of services by an employee for 
     the employee's employer.
       ``(g) Carryover of Credit-equivalent of Excess 
     Deductions.--
       ``(1) In general.--If the aggregate deductions for any 
     taxable year exceed the gross active income for such taxable 
     year, the credit-equivalent of such excess shall be allowed 
     as a credit against the tax imposed by this section for the 
     following taxable year.
       ``(2) Credit-equivalent of excess deductions.--For purposes 
     of paragraph (1), the credit-equivalent of the excess 
     described in paragraph (1) for any taxable year is an amount 
     equal to--
       ``(A) the sum of--
       ``(i) such excess, plus
       ``(ii) the product of such excess and the 3-month Treasury 
     rate for the last month of such taxable year, multiplied by
       ``(B) the rate of the tax imposed by subsection (a) for 
     such taxable year.
       ``(3) Carryover of unused credit.--If the credit allowable 
     for any taxable year by reason of this subsection exceeds the 
     tax imposed by this section for such year, then (in lieu of 
     treating such excess as an overpayment) the sum of--
       ``(A) such excess, plus
       ``(B) the product of such excess and the 3-month Treasury 
     rate for the last month of such taxable year,

     shall be allowed as a credit against the tax imposed by this 
     section for the following taxable year.
       ``(4) 3-month treasury rate.--For purposes of this 
     subsection, the 3-month Treasury rate is the rate determined 
     by the Secretary based on the average market yield (during 
     any 1-month period selected by the Secretary and ending in 
     the calendar month in which the determination is made) on 
     outstanding marketable obligations of the United States with 
     remaining periods to maturity of 3 months or less.''
       (b) Tax on Tax-exempt Entities Providing Noncash 
     Compensation to Employees.--Section 4977 of the Internal 
     Revenue Code of 1986 is amended to read as follows:

     ``SEC. 4977. TAX ON NONCASH COMPENSATION PROVIDED TO 
                   EMPLOYEES NOT ENGAGED IN BUSINESS ACTIVITY.

       ``(a) Imposition of Tax.--There is hereby imposed a tax 
     equal to 17 percent of the value of excludable compensation 
     provided during the calendar year by an employer for the 
     benefit of employees to whom this section applies.
       ``(b) Liability for Tax.--The tax imposed by this section 
     shall be paid by the employer.
       ``(c) Excludable Compensation.--For purposes of subsection 
     (a), the term `excludable compensation' means any 
     remuneration for services performed as an employee other 
     than--
       ``(1) wages (as defined in section 3121(a) without regard 
     to paragraph (1) thereof) which are paid in cash,
       ``(2) remuneration for services performed outside the 
     United States, and
       ``(3) retirement contributions to or under any plan or 
     arrangement which makes retirement distributions (as defined 
     in section 11(d)(3)).
       ``(d) Employees to Whom Section Applies.--This section 
     shall apply to an employee who is employed in any activity 
     by--
       ``(1) any organization which is exempt from taxation under 
     this chapter, or
       ``(2) any agency or instrumentality of the United States, 
     any State or political subdivision of a State, or the 
     District of Columbia.''
       (c) Effective Date.--The amendments made by this title 
     shall apply to taxable years beginning after December 31, 
     2012.

     SEC. __2. REPEAL OF ALTERNATIVE MINIMUM TAX ON CORPORATIONS.

       (a) In General.--Subsection (a) of section 55 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new sentence:
       ``No tax shall be imposed by this section on any 
     corporation for any taxable year beginning after December 31, 
     2012, and the tentative minimum tax of any corporation for 
     any such taxable year shall be zero for purposes of this 
     title.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2012.

     SEC. __3. REPEAL OF BUSINESS RELATED CREDITS.

       Subparts D, E, F, G, H, I, and J of part IV of subchapter A 
     of chapter 1 of the Internal Revenue Code of 1986 are 
     repealed with respect to taxable years beginning after 
     December 31, 2012.

     SEC. __4. TECHNICAL AND CONFORMING AMENDMENTS.

       The Secretary of the Treasury or the Secretary's delegate 
     shall not later than 90 days after the date of the enactment 
     of this Act, submit to the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate a draft of any technical and conforming changes in the 
     Internal Revenue Code of 1986 which are necessary to reflect 
     throughout such Code the purposes of the provisions of, and 
     amendments made by, this Act.

     SEC. __5. SUPERMAJORITY REQUIRED TO CONSIDER BUSINESS REVENUE 
                   MEASURE.

       A bill, joint resolution, amendment to a bill or joint 
     resolution, or conference report that--
       (1) includes an increase in the rate of tax specified in 
     section 11(a) of the Internal Revenue Code of 1986 (as 
     amended by this Act), or
       (2) reduces the deductions specified in section 11(d) of 
     such Code (as so amended),

     may not be considered as passed or agreed to by the House of 
     Representatives or the Senate unless so determined by a vote 
     of not less than two-thirds of the Members of the House of 
     Representatives or the Senate (as the case may be) voting, a 
     quorum being present.
                                 ______
                                 
  SA 1961. Mr. PRYOR submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, between lines 3 and 4, insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. POSITION LIMITS FOR PETROLEUM AND RELATED PRODUCTS.

       Section 4a(a)(6) of the Commodity Exchange Act (7 U.S.C. 
     6a(a)(6)) is amended--
       (1) by redesignating subparagraphs (A) through (C) as 
     clauses (i) through (iii), respectively, and indenting 
     appropriately;
       (2) by striking ``The Commission shall'' and inserting the 
     following:
       ``(A) In general.--The Commission shall''; and
       (3) by adding at the end the following:
       ``(B) Petroleum and related products.--The Commission 
     shall, by regulation, establish limits on the aggregate 
     number or amount of positions in contracts for petroleum or 
     related products that may be held by any person, including 
     any group or class of traders, for each month across 
     contracts described in clauses (i) through (iii) of 
     subparagraph (A), so that--
       ``(i) the short position for traditional bona fide hedgers 
     in the aggregate is not less than 50 percent; and
       ``(ii) the long position for traditional bona fide hedgers 
     in the aggregate is not less than 50 percent.''.
                                 ______
                                 
  SA 1962. Mr. PRYOR submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, between lines 3 and 4, insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. QUADRENNIAL ENERGY REVIEW.

       (a) Findings.--Congress finds that--
       (1) the President's Council of Advisors on Science and 
     Technology recommends that the United States develop a 
     Government wide Federal energy policy and update the policy 
     regularly with strategic Quadrennial Energy Reviews similar 
     to the reviews conducted by the Department of Defense;

[[Page S2102]]

       (2) as the lead agency in support of energy science and 
     technology innovation, the Department of Energy has conducted 
     a Quadrennial Technology Review of the energy technology 
     policies and programs of the Department;
       (3) the Quadrennial Technology Review of the Department of 
     Energy serves as the basis for coordination with other 
     agencies and on other programs for which the Department has a 
     key role;
       (4) a Quadrennial Energy Review would--
       (A) establish integrated, Government wide national energy 
     objectives in the context of economic, environmental, and 
     security priorities;
       (B) coordinate actions across Federal agencies;
       (C) identify the resources needed for the invention, 
     adoption, and diffusion of energy technologies; and
       (D) provide a strong analytical base for Federal energy 
     policy decisions;
       (5) the development of an energy policy resulting from a 
     Quadrennial Energy Review would--
       (A) enhance the energy security of the United States;
       (B) create jobs; and
       (C) mitigate environmental harm; and
       (6) while a Quadrennial Energy Review will be a product of 
     the executive branch, the review will have substantial input 
     from--
       (A) Congress;
       (B) the energy industry;
       (C) academia;
       (D) nongovernmental organizations; and
       (E) the public.
       (b) Quadrennial Energy Review.--Section 801 of the 
     Department of Energy Organization Act (42 U.S.C. 7321) is 
     amended to read as follows:

     ``SEC. 801. QUADRENNIAL ENERGY REVIEW.

       ``(a) Definitions.--In this section:
       ``(1) Director.--The term `Director' means the Director of 
     the Office of Science and Technology Policy within the 
     Executive Office of the President.
       ``(2) Federal laboratory.--
       ``(A) In general.--The term `Federal Laboratory' has the 
     meaning given the term `laboratory' in section 12(d) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a(d)).
       ``(B) Inclusion.--The term `Federal Laboratory' includes a 
     federally funded research and development center sponsored by 
     a Federal agency.
       ``(3) Interagency energy coordination council.--The term 
     `interagency energy coordination council' means a council 
     established under subsection (b)(1).
       ``(4) Quadrennial energy review.--The term `Quadrennial 
     Energy Review' means a comprehensive multiyear review, 
     coordinated across the Federal agencies, that--
       ``(A) covers all energy programs and technologies of the 
     Federal Government;
       ``(B) establishes energy objectives across the Federal 
     Government; and
       ``(C) covers each of the areas described in subsection 
     (d)(2).
       ``(b) Interagency Energy Coordination Council.--
       ``(1) Establishment.--Beginning on February 1, 2013, and 
     every 4 years thereafter, the President shall establish an 
     interagency energy coordination council to coordinate the 
     Quadrennial Energy Review.
       ``(2) Co-chairpersons.--The Secretary and the Director 
     shall be co-chairpersons of the interagency energy 
     coordination council.
       ``(3) Membership.--The interagency energy coordination 
     council shall be comprised of representatives at level I or 
     II of the Executive Schedule of--
       ``(A) the Department of Commerce;
       ``(B) the Department of Defense;
       ``(C) the Department of State;
       ``(D) the Department of the Interior;
       ``(E) the Department of Agriculture;
       ``(F) the Department of the Treasury;
       ``(G) the Department of Transportation;
       ``(H) the Office of Management and Budget;
       ``(I) the National Science Foundation;
       ``(J) the Environmental Protection Agency; and
       ``(K) such other Federal organizations, departments, and 
     agencies that the President considers to be appropriate.
       ``(c) Conduct of Review.--Each Quadrennial Energy Review 
     shall be conducted to provide an integrated view of national 
     energy objectives and Federal energy policy, including (to 
     the maximum extent practicable) alignment of research 
     programs, incentives, regulations, and partnerships.
       ``(d) Submission of Quadrennial Energy Review to 
     Congress.--
       ``(1) In general.--Not later than February 1, 2015, and 
     every 4 years thereafter, the Secretary, in cooperation with 
     the Director, shall publish and submit to Congress a report 
     on the Quadrennial Energy Review.
       ``(2) Inclusions.--The report described in paragraph (1) 
     shall include, at a minimum--
       ``(A) an integrated view of short-, intermediate-, and 
     long-term objectives for Federal energy policy in the context 
     of economic, environmental, and security priorities;
       ``(B) anticipated Federal actions (including programmatic, 
     regulatory, and fiscal actions) and resource requirements--
       ``(i) to achieve the objectives described in subparagraph 
     (A); and
       ``(ii) to be coordinated across multiple agencies;
       ``(C) an analysis of the prospective roles of parties 
     (including academia, industry, consumers, the public, and 
     Federal agencies) in achieving the objectives described in 
     subparagraph (A), including--
       ``(i) an analysis, by energy use sector, including--

       ``(I) commercial and residential buildings;
       ``(II) the industrial sector;
       ``(III) transportation; and
       ``(IV) electric power;

       ``(ii) requirements for invention, adoption, development, 
     and diffusion of energy technologies that are mapped onto 
     each of the energy use sectors; and
       ``(iii) other research that inform strategies to 
     incentivize desired actions;
       ``(D) an assessment of policy options to increase domestic 
     energy supplies;
       ``(E) an evaluation of energy storage, transmission, and 
     distribution requirements, including requirements for 
     renewable energy;
       ``(F) an integrated plan for the involvement of the Federal 
     Laboratories in energy programs;
       ``(G) portfolio assessments that describe the optimal 
     deployment of resources, including prioritizing financial 
     resources for energy programs;
       ``(H) a mapping of the linkages among basic research and 
     applied programs, demonstration programs, and other 
     innovation mechanisms across the Federal agencies;
       ``(I) an identification of, and projections for, 
     demonstration projects, including timeframes, milestones, 
     sources of funding, and management;
       ``(J) an identification of public and private funding needs 
     for various energy technologies, systems, and infrastructure, 
     including consideration of public-private partnerships, 
     loans, and loan guarantees;
       ``(K) an assessment of global competitors and an 
     identification of programs that can be enhanced with 
     international cooperation;
       ``(L) an identification of policy gaps that need to be 
     filled to accelerate the adoption and diffusion of energy 
     technologies, including consideration of--
       ``(i) Federal tax policies; and
       ``(ii) the role of Federal agencies as early adopters and 
     purchasers of new energy technologies;
       ``(M) an analysis of--
       ``(i) points of maximum leverage for policy intervention to 
     achieve outcomes; and
       ``(ii) areas of energy policy that can be most effective in 
     meeting national goals for the energy sector; and
       ``(N) recommendations for executive branch organization 
     changes to facilitate the development and implementation of 
     Federal energy policies.
       ``(e) Executive Secretariat.--
       ``(1) In general.--The Secretary shall provide the 
     Executive Secretariat with the necessary analytical, 
     financial, and administrative support for the conduct of each 
     Quadrennial Energy Review required under this section.
       ``(2) Cooperation.--The heads of applicable Federal 
     agencies shall cooperate with the Secretary and provide such 
     assistance, information, and resources as the Secretary may 
     require to assist in carrying out this section.''.
       (c) Administration.--Nothing in this section or an 
     amendment made by this section supersedes, modifies, amends, 
     or repeals any provision of Federal law not expressly 
     superseded, modified, amended, or repealed by this section.
                                 ______
                                 
  SA 1963. Mr. INHOFE (for himself and Mr. Barrasso) submitted an 
amendment intended to be proposed by him to the bill S. 2204, to 
eliminate unnecessary tax subsidies and promote renewable energy and 
energy conservation; which was ordered to lie on the table; as follows:

       On page 22, between lines 3 and 4, insert the following:

                    TITLE III--GASOLINE REGULATIONS

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Gasoline Regulations Act 
     of 2012''.

     SEC. 302. DEFINITIONS.

       In this title:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Commission.--The term ``Commission'' means the 
     Transportation Fuels Regulatory Commission established by 
     section 303(a).
       (3) Covered action.--The term ``covered action'' means any 
     action, to the extent the action affects facilities involved 
     in the production, transportation, or distribution of 
     gasoline or diesel fuel, taken--
       (A) on or after January 1, 2009, by the Administrator, a 
     State, a local government, or a permitting agency; and
       (B) to conform with part C of title I or title V of the 
     Clean Air Act (42 U.S.C. 7401 et seq.) regarding an air 
     pollutant identified as a greenhouse gas in the final rule 
     entitled ``Endangerment and Cause or Contribute Findings for 
     Greenhouse Gases Under Section 202(a) of the Clean Air Act'' 
     (74 Fed. Reg. 66496 (December 15, 2009)).
       (4) Covered rule.--The term ``covered rule'' means the 
     following rules (and includes any successor or substantially 
     similar rules):
       (A) ``Control of Air Pollution From New Motor Vehicles: 
     Tier 3 Motor Vehicle Emission and Fuel Standards'', as 
     described in the Unified Agenda of Federal Regulatory and 
     Deregulatory Actions under Regulatory Identification Number 
     2060 AQ86.

[[Page S2103]]

       (B) ``National Ambient Air Quality Standards for Ozone'' 
     (73 Fed. Reg. 16436 (March 27, 2008)).
       (C) ``Reconsideration of the 2008 Ozone Primary and 
     Secondary National Ambient Air Quality Standards'', as 
     described in the Unified Agenda of Federal Regulatory and 
     Deregulatory Actions under Regulatory Identification Number 
     2060 AP98.
       (D) Any rule proposed after March 15, 2012, establishing or 
     revising a standard of performance or emission standard under 
     section 111 or 112 of the Clean Air Act (42 U.S.C. 7411, 
     7412) applicable to petroleum refineries.
       (E) Any rule proposed after March 15, 2012, to implement 
     any portion of the renewable fuel program under section 
     211(o) of the Clean Air Act (42 U.S.C. 7545(o)).
       (F) Any rule proposed after March 15, 2012, revising or 
     supplementing the national ambient air quality standards for 
     ozone under section 109 of the Clean Air Act (42 U.S.C. 
     7409).

     SEC. 303. TRANSPORTATION FUELS REGULATORY COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the ``Transportation Fuels Regulatory Commission''.
       (b) Members.--The Commission shall be composed of the 
     following officials (or designees of the officials):
       (1) The Secretary of Energy, who shall serve as the Chair 
     of the Commission.
       (2) The Secretary of Transportation, acting through the 
     Administrator of the National Highway Traffic Safety 
     Administration.
       (3) The Secretary of Commerce, acting through the Chief 
     Economist and the Under Secretary for International Trade.
       (4) The Secretary of Labor, acting through the Commissioner 
     of the Bureau of Labor Statistics.
       (5) The Secretary of the Treasury, acting through the 
     Deputy Assistant Secretary for Environment and Energy.
       (6) The Administrator.
       (7) The Chairman of the United States International Trade 
     Commission, acting through the Director of the Office of 
     Economics.
       (8) The Administrator of the Energy Information 
     Administration.
       (c) Duties of the Commission.--The Commission shall analyze 
     and report on the cumulative impacts of certain rules and 
     actions of the Environmental Protection Agency on gasoline 
     and diesel fuel prices, in accordance with sections 304 and 
     305.
       (d) Consultation by Chair.--In carrying out the functions 
     of the Chair of the Commission, the Chair shall consult with 
     the other members of the Commission.
       (e) Termination.--The Commission shall terminate on the 
     date that is 60 days after the date on which the Commission 
     submits the report under section 305(c).

     SEC. 304. ANALYSES.

       (a) Scope.--The Commission shall conduct analyses, for each 
     of the calendar years 2016 and 2020, of the cumulative impact 
     of all covered rules and covered actions.
       (b) Contents.--In conducting each analysis under this 
     section, the Commission shall include the following:
       (1) Estimates of the cumulative impacts of the covered 
     rules and covered actions with respect to--
       (A) any resulting change in the national, State, or 
     regional price of gasoline or diesel fuel;
       (B) required capital investments and projected costs for 
     the operation and maintenance of new equipment required to be 
     installed;
       (C) global economic competitiveness of the United States 
     and any loss of domestic refining capacity;
       (D) other cumulative costs and cumulative benefits, 
     including evaluation through a general equilibrium model 
     approach; and
       (E) national, State, and regional employment, including 
     impacts associated with increased gasoline or diesel fuel 
     prices and facility closures.
       (2) Discussion of key uncertainties and assumptions 
     associated with each estimate under paragraph (1).
       (3) A sensitivity analysis reflecting alternative 
     assumptions with respect to the aggregate demand for gasoline 
     or diesel fuel.
       (4) Discussion, and where feasible an assessment, of the 
     cumulative impact of the covered rules and covered actions 
     on--
       (A) consumers;
       (B) small businesses;
       (C) regional economies;
       (D) State, local, and tribal governments;
       (E) low-income communities;
       (F) public health;
       (G) local and industry-specific labor markets; and
       (H) any uncertainties associated with each topic listed in 
     subparagraphs (A) through (G).
       (c) Methods.--In conducting an analysis under this section, 
     the Commission shall use the best available methods, 
     consistent with guidance from the Office of Information and 
     Regulatory Affairs and the Office of Management and Budget 
     Circular A 4.
       (d) Data.--In conducting an analysis under this section, 
     the Commission shall not be required to create data or to use 
     data that are not readily accessible.

     SEC. 305. REPORTS; PUBLIC COMMENT.

       (a) Preliminary Report.--Not later than 90 days after the 
     date of enactment of this Act, the Commission shall make 
     public and submit to the Committee on Environment and Public 
     Works of the Senate and the Committee on Energy and Commerce 
     of the House of Representatives a preliminary report 
     containing the results of the analyses conducted under 
     section 304.
       (b) Public Comment Period.--The Commission shall accept 
     public comments regarding the preliminary report submitted 
     under subsection (a) for a period of 60 days after the date 
     on which the preliminary report is submitted.
       (c) Final Report.--Not later than 60 days after the 
     expiration of the 60-day period described in subsection (b), 
     the Commission shall submit to Congress a final report 
     containing the analyses conducted under section 304, 
     including--
       (1) any revisions to the analyses made as a result of 
     public comments; and
       (2) a response to the public comments.

     SEC. 306. NO FINAL ACTION ON CERTAIN RULES.

       The Administrator shall not finalize any of the following 
     rules until a date (to be determined by the Administrator) 
     that is at least 180 days after the day on which the 
     Commission submits the final report under section 305(c):
       (1) ``Control of Air Pollution From New Motor Vehicles: 
     Tier 3 Motor Vehicle Emission and Fuel Standards'', as 
     described in the Unified Agenda of Federal Regulatory and 
     Deregulatory Actions under Regulatory Identification Number 
     2060 AQ86, and any successor or substantially similar rule.
       (2) Any rule proposed after March 15, 2012, establishing or 
     revising a standard of performance or emission standard under 
     section 111 or 112 of the Clean Air Act (42 U.S.C. 7411, 
     7412) that is applicable to petroleum refineries.
       (3) Any rule revising or supplementing the national ambient 
     air quality standards for ozone under section 109 of the 
     Clean Air Act (42 U.S.C. 7409).

     SEC. 307. CONSIDERATION OF FEASIBILITY AND COST IN REVISING 
                   OR SUPPLEMENTING NATIONAL AMBIENT AIR QUALITY 
                   STANDARDS FOR OZONE.

       In revising or supplementing any national primary or 
     secondary ambient air quality standards for ozone under 
     section 109 of the Clean Air Act (42 U.S.C. 7409), the 
     Administrator shall consider the feasibility and cost of the 
     revision or supplement.
                                 ______
                                 
  SA 1964. Mr. BROWN of Massachusetts submitted an amendment intended 
to be proposed by him to the bill S. 2204, to eliminate unnecessary tax 
subsidies and promote renewable energy and energy conservation; which 
was ordered to lie on the table; as follows:

       On page 2, between lines 20 and 21, insert the following:

     SEC. 103. CREDIT FOR HYBRID CONVERSION.

       (a) In General.--Section 30B of the Internal Revenue Code 
     of 1986 is amended by redesignating subsections (j) and (k) 
     as subsections (k) and (l), respectively, and by inserting 
     after subsection (i) the following new subsection:
       ``(j) Hybrid Conversion Credit.--
       ``(1) Credit allowed.--
       ``(A) In general.--For purposes of subsection (a), the 
     hybrid conversion credit determined under this subsection 
     with respect to any motor vehicle which is converted to a 
     qualified hybrid motor vehicle is an amount equal to so much 
     of the cost of the conversion of such vehicle as does not 
     exceed the applicable amount determined under the following 
     table:
``If gross vehicle weight (prior to conversionThe applicable amount is:
  Not more than 8,500 pounds.....................................$3,000
  More than 8,500 pounds but not more than 14,000 pounds.........$4,000
  More than 14,000 pounds but not more than 26,000 pounds........$6,000
  More than 26,000 pounds.......................................$8,000.

       ``(2) Qualified hybrid motor vehicle.--For purposes of this 
     subsection, the term `qualified hybrid motor vehicle' means 
     any new qualified hybrid motor vehicle (as defined in 
     subsection (d)(3), determined without regard to whether such 
     vehicle is made by a manufacturer or whether the original use 
     of such vehicle commences with the taxpayer) which--
       ``(A) is used or leased by the taxpayer and is not for 
     resale, and
       ``(B) achieves the minimum required reduction in fuel 
     consumption determined under the following table, relative to 
     the fuel consumption of an uncoverted vehicle of the same 
     make and model under the Urban Dynamometer Driving Schedule 
     (UDDS) test procedure issued by the Environmental Protection 
     Agency (40 CFR 86.115 and Appendix I to 40 CFR Part 86):

``If vehicle (prior to conversion) isThe minimum required reduction is:
  A passenger vehicle with a gross vehicle weight of not more than 
    8,500 pounds.............................................19 percent
  A light truck with a gross vehicle weight of not more than 8,500 
    pounds...................................................15 percent
  A diesel vehicle with a gross vehicle weight of more than 8,500 
    pounds but not more than 14,000 pounds...................17 percent
  A gasoline vehicle with a gross vehicle weight of more than 8,500 
    pounds but not more than 14,000 pounds...................12 percent

[[Page S2104]]

  A vehicle with a gross vehicle weight of more than 14,000 10 percent.

       ``(3) 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 and subsection (i)) 
     in any preceding taxable year. No credit shall be allowed 
     under this subsection with respect to a motor vehicle if the 
     credit under subsection (i) is allowed with respect to such 
     motor vehicle in any taxable year.
       ``(4) Limitation on number of hybrid conversions eligible 
     for credit.--This subsection shall not apply to the 
     conversion of any motor vehicle after the last day of the 
     calendar quarter which includes the first date on which the 
     total number of conversions with respect to which a credit 
     under this subsection has been allowed for all taxable years 
     is at least equal to the applicable number determined under 
     the following table:

``If gross vehicle weight (prior to conversionThe applicable number is:
  Not more than 8,500 pounds....................................100,000
  More than 8,500 pounds but not more than 14,000 pounds.........70,000
  More than 14,000 pounds but not more than 26,000 pounds........20,000
  More than 26,000 pounds.......................................10,000.

       ``(5) Termination.--This subsection shall not apply to 
     conversions made after the date which is 5 years after the 
     date of the enactment of the RETRO Act.''.
       (b) Credit Treated as Part of Alternative Motor Vehicle 
     Credit.--Subsection (a) of section 30B of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of paragraph (4),
       (2) by striking the period at the end of paragraph (5) and 
     inserting ``, and'', and
       (3) by adding at the end the following new paragraph:
       ``(6) the hybrid conversion credit determined under 
     subsection (j).''.
       (c) No Recapture for Vehicles Converted to Qualified Hybrid 
     Motor Vehicles.--Paragraph (8) of section 30B(h) of the 
     Internal Revenue Code of 1986 is amended by striking ``a 
     vehicle)'' and all that follows and inserting ``a vehicle), 
     except that no benefit shall be recaptured if such property 
     ceases to be eligible for such credit by reason of conversion 
     to a qualified plug-in electric drive motor vehicle or a 
     qualified hybrid motor vehicle.''.
       (d) Denial of Double Benefit.--Paragraph (3) of section 
     30B(i) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following: ``No credit shall be allowed 
     under this subsection with respect to a motor vehicle if the 
     credit under subsection (j) is allowed with respect to such 
     motor vehicle in any taxable year.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.
       (f) Rescission of Unobligated Federal Funds to Offset Loss 
     in Revenues.--
       (1) In general.--Notwithstanding any other provision of 
     law, of all available unobligated funds, appropriated 
     discretionary funds are hereby rescinded in such amounts as 
     determined by the Director of the Office of Management and 
     Budget such that the aggregate amount of such rescission 
     equals the reduction in revenues to the Treasury by reason of 
     the amendments made by this section.
       (2) Implementation.--The Director of the Office of 
     Management and Budget shall determine and identify from which 
     appropriation accounts the rescission under paragraph (1) 
     shall apply and the amount of such rescission that shall 
     apply to each such account. Not later than 60 days after the 
     date of the enactment of this Act, the Director of the Office 
     of Management and Budget shall submit a report to the 
     Secretary of the Treasury and Congress of the accounts and 
     amounts determined and identified for rescission under the 
     preceding sentence.
       (3) Exception.--This subsection shall not apply to the 
     unobligated funds of the Department of Veterans Affairs, the 
     Department of Defense, or any funds appropriated for disaster 
     relief.

  SA 1965. Mr. VITTER (for himself and Mr. Sessions) submitted an 
amendment intended to be proposed by him to the bill S. 2204, to 
eliminate unnecessary tax subsidies and promote renewable energy and 
energy conservation; which was ordered to lie on the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. EXTENSION OF LEASING PROGRAM.

       (a) In General.--Subject to subsection (c), the Draft 
     Proposed Outer Continental Shelf Oil and Gas Leasing Program 
     2010 2015 issued by the Secretary of the Interior (referred 
     to in this section as the ``Secretary'') under section 18 of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1344) shall 
     be considered to be the final oil and gas leasing program 
     under that section for the period of fiscal years 2013 
     through 2018.
       (b) Final Environmental Impact Statement.--The Secretary is 
     considered to have issued a final environmental impact 
     statement for the program applicable to the period described 
     in subsection (a) in accordance with all requirements under 
     section 102(2)(C) of the National Environmental Policy Act of 
     1969 (42 U.S.C. 4332(2)(C)).
       (c) Exceptions.--Lease Sales 214, 232, and 239 shall not be 
     included in the final oil and gas leasing program for the 
     period of fiscal years 2013 through 2018.
                                 ______
                                 
  SA 1966. Mr. WICKER submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, between lines 3 and 4, insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL.

       Section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344) is amended by striking subsection (b) and 
     inserting the following:
       ``(b) Domestic Oil and Natural Gas Production Goal.--
       ``(1) In general.--In developing a 5-year oil and gas 
     leasing program, the Secretary shall establish a domestic 
     strategic production goal for the development of oil and 
     natural gas under the program that is--
       ``(A) the best estimate of the potential increase in 
     domestic production of oil and natural gas from the outer 
     Continental Shelf; and
       ``(B) focused on--
       ``(i) meeting the demand for oil and natural gas in the 
     United States;
       ``(ii) reducing the dependence of the United States on 
     foreign energy sources; and
       ``(iii) the production increases to be achieved by the 
     leasing program at the end of the 15-year period beginning on 
     the effective date of the program.
       ``(2) 2012 2017 program goal.--For purposes of the 5-year 
     oil and gas leasing program for fiscal years 2012-2017, the 
     production goal referred to in paragraph (1) shall be an 
     increase by 2027 of--
       ``(A) not less than 3,000,000 barrels in the quantity of 
     oil produced per day; and
       ``(B) not less than 10,000,000,000 cubic feet in the 
     quantity of natural gas produced per day.
       ``(3) Reports.--At the end of each 5-year oil and gas 
     leasing program and annually thereafter, 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 that describes the progress 
     of the applicable 5-year program with respect to achieving 
     the production goal established for the program, including--
       ``(A) any projections for production under the program; and
       ``(B) identifying any problems with leasing, permitting, or 
     production that would prevent the production goal from being 
     achieved.''.
                                 ______
                                 
  SA 1967. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, between lines 3 and 4, insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Energy Tax Prevention Act 
     of 2011''.

     SEC. 302. NO REGULATION OF EMISSIONS OF GREENHOUSE GASES.

       (a) In General.--Title III of the Clean Air Act (42 U.S.C. 
     7601 et seq.) is amended by adding at the end the following:

     ``SEC. 330. NO REGULATION OF EMISSIONS OF GREENHOUSE GASES.

       ``(a) Definition.--In this section, the term `greenhouse 
     gas' means any of the following:
       ``(1) Water vapor.
       ``(2) Carbon dioxide.
       ``(3) Methane.
       ``(4) Nitrous oxide.
       ``(5) Sulfur hexafluoride.
       ``(6) Hydrofluorocarbons.
       ``(7) Perfluorocarbons.
       ``(8) Any other substance subject to, or proposed to be 
     subject to, regulation, action, or consideration under this 
     Act to address climate change.
       ``(b) Limitation on Agency Action.--
       ``(1) Limitation.--
       ``(A) In general.--The Administrator may not, under this 
     Act, promulgate any regulation concerning, take action 
     relating to, or take into consideration the emission of a 
     greenhouse gas to address climate change.
       ``(B) Air pollutant definition.--The definition of the term 
     `air pollutant' in section 302(g) does not include a 
     greenhouse gas. Nothwithstanding the previous sentence, such 
     definition may include a greenhouse gas for purposes of 
     addressing concerns other than climate change.
       ``(2) Exceptions.--Paragraph (1) does not prohibit the 
     following:
       ``(A) Notwithstanding paragraph (4)(B), implementation and 
     enforcement of the rule entitled `Light-Duty Vehicle 
     Greenhouse Gas Emission Standards and Corporate Average Fuel 
     Economy Standards' (75 Fed. Reg. 25324 (May 7, 2010) and 
     without further revision)

[[Page S2105]]

     and finalization, implementation, enforcement, and revision 
     of the proposed rule entitled `Greenhouse Gas Emissions 
     Standards and Fuel Efficiency Standards for Medium- and 
     Heavy-Duty Engines and Vehicles' published at 75 Fed. Reg. 
     74152 (November 30, 2010).
       ``(B) Implementation and enforcement of section 211(o).
       ``(C) Statutorily authorized Federal research, development, 
     and demonstration programs addressing climate change.
       ``(D) Implementation and enforcement of title VI to the 
     extent such implementation or enforcement only involves one 
     or more class I or class II substances (as such terms are 
     defined in section 601).
       ``(E) Implementation and enforcement of section 821 (42 
     U.S.C. 7651k note) of Public Law 101 549 (commonly referred 
     to as the `Clean Air Act Amendments of 1990').
       ``(3) Inapplicability of provisions.--Nothing listed in 
     paragraph (2) shall cause a greenhouse gas to be subject to 
     part C of title I (relating to prevention of significant 
     deterioration of air quality) or considered an air pollutant 
     for purposes of title V (relating to air permits).
       ``(4) Certain prior agency actions.--The following rules, 
     and actions (including any supplement or revision to such 
     rules and actions) are repealed and shall have no legal 
     effect:
       ``(A) `Mandatory Reporting of Greenhouse Gases', published 
     at 74 Fed. Reg. 56260 (October 30, 2009).
       ``(B) `Endangerment and Cause or Contribute Findings for 
     Greenhouse Gases under section 202(a) of the Clean Air Act' 
     published at 74 Fed. Reg. 66496 (Dec. 15, 2009).
       ``(C) `Reconsideration of the Interpretation of Regulations 
     That Determine Pollutants Covered by Clean Air Act Permitting 
     Programs' published at 75 Fed. Reg. 17004 (April 2, 2010) and 
     the memorandum from Stephen L. Johnson, Environmental 
     Protection Agency (EPA) Administrator, to EPA Regional 
     Administrators, concerning `EPA's Interpretation of 
     Regulations that Determine Pollutants Covered by Federal 
     Prevention of Significant Deterioration (PSD) Permit Program' 
     (Dec. 18, 2008).
       ``(D) `Prevention of Significant Deterioration and Title V 
     Greenhouse Gas Tailoring Rule', published at 75 Fed. Reg. 
     31514 (June 3, 2010).
       ``(E) `Action To Ensure Authority To Issue Permits Under 
     the Prevention of Significant Deterioration Program to 
     Sources of Greenhouse Gas Emissions: Finding of Substantial 
     Inadequacy and SIP Call', published at 75 Fed. Reg. 77698 
     (December 13, 2010).
       ``(F) `Action To Ensure Authority To Issue Permits Under 
     the Prevention of Significant Deterioration Program to 
     Sources of Greenhouse Gas Emissions: Finding of Failure to 
     Submit State Implementation Plan Revisions Required for 
     Greenhouse Gases', published at 75 Fed. Reg. 81874 (December 
     29, 2010).
       ``(G) `Action To Ensure Authority To Issue Permits Under 
     the Prevention of Significant Deterioration Program to 
     Sources of Greenhouse Gas Emissions: Federal Implementation 
     Plan', published at 75 Fed. Reg. 82246 (December 30, 2010).
       ``(H) `Action To Ensure Authority To Implement Title V 
     Permitting Programs Under the Greenhouse Gas Tailoring Rule', 
     published at 75 Fed. Reg. 82254 (December 30, 2010).
       ``(I) `Determinations Concerning Need for Error Correction, 
     Partial Approval and Partial Disapproval, and Federal 
     Implementation Plan Regarding Texas Prevention of Significant 
     Deterioration Program', published at 75 Fed. Reg. 82430 
     (December 30, 2010).
       ``(J) `Limitation of Approval of Prevention of Significant 
     Deterioration Provisions Concerning Greenhouse Gas Emitting-
     Sources in State Implementation Plans; Final Rule', published 
     at 75 Fed. Reg. 82536 (December 30, 2010).
       ``(K) `Determinations Concerning Need for Error Correction, 
     Partial Approval and Partial Disapproval, and Federal 
     Implementation Plan Regarding Texas Prevention of Significant 
     Deterioration Program; Proposed Rule', published at 75 Fed. 
     Reg. 82365 (December 30, 2010).
       ``(L) Except for action listed in paragraph (2), any other 
     Federal action under this Act occurring before the date of 
     enactment of this section that applies a stationary source 
     permitting requirement or an emissions standard for a 
     greenhouse gas to address climate change.
       ``(5) State action.--
       ``(A) No limitation.--This section does not limit or 
     otherwise affect the authority of a State to adopt, amend, 
     enforce, or repeal State laws and regulations pertaining to 
     the emission of a greenhouse gas.
       ``(B) Exception.--
       ``(i) Rule.--Notwithstanding subparagraph (A), any 
     provision described in clause (ii)--

       ``(I) is not federally enforceable;
       ``(II) is not deemed to be a part of Federal law; and
       ``(III) is deemed to be stricken from the plan described in 
     clause (ii)(I) or the program or permit described in clause 
     (ii)(II), as applicable.

       ``(ii) Provisions defined.--For purposes of clause (i), the 
     term `provision' means any provision that--

       ``(I) is contained in a State implementation plan under 
     section 110 and authorizes or requires a limitation on, or 
     imposes a permit requirement for, the emission of a 
     greenhouse gas to address climate change; or
       ``(II) is part of an operating permit program under title 
     V, or a permit issued pursuant to title V, and authorizes or 
     requires a limitation on the emission of a greenhouse gas to 
     address climate change.

       ``(C) Action by administrator.--The Administrator may not 
     approve or make federally enforceable any provision described 
     in subparagraph (B)(ii).''.

     SEC. 303. PRESERVING ONE NATIONAL STANDARD FOR AUTOMOBILES.

       Section 209(b) of the Clean Air Act (42 U.S.C. 7543) is 
     amended by adding at the end the following:
       ``(4) With respect to standards for emissions of greenhouse 
     gases (as defined in section 330) for model year 2017 or any 
     subsequent model year for new motor vehicles and new motor 
     vehicle engines--
       ``(A) the Administrator may not waive application of 
     subsection (a); and
       ``(B) no waiver granted prior to the date of enactment of 
     this paragraph may be considered to waive the application of 
     subsection (a).''.
                                 ______
                                 
  SA 1968. Mr. REID proposed an amendment to the bill S. 2204, to 
eliminate unnecessary tax subsidies and promote renewable energy and 
energy conservation; as follows:

       At the end, add the following:
       This Act shall become effective 1 day after enactment.
                                 ______
                                 
  SA 1969. Mr. REID proposed an amendment to amendment SA 1968 proposed 
by Mr. Reid to the bill S. 2204, to eliminate unnecessary tax subsidies 
and promote renewable energy and energy conservation; as follows:

       In the amendment, strike ``1 day'' and insert ``2 days''.
                                 ______
                                 
  SA 1970. Mr. REID proposed an amendment to the bill S. 2204, to 
eliminate unnecessary tax subsidies and promote renewable energy and 
energy conservation; as follows:

       At the end, add the following:
       This Act shall become effective 3 days after enactment.
                                 ______
                                 
  SA 1971. Mr. REID proposed an amendment to amendment SA 1970 proposed 
by Mr. Reid to the bill S. 2204, to eliminate unnecessary tax subsidies 
and promote renewable energy and energy conservation; as follows:

       In the amendment, strike ``3 days'' and insert ``4 days''.
                                 ______
                                 
  SA 1972. Mr. REID proposed an amendment to amendment SA 1971 proposed 
by Mr. Reid to the amendment SA 1970 proposed by Mr. Reid to the bill 
S. 2204, to eliminate unnecessary tax subsidies and promote renewable 
energy and energy conservation; as follows;

       In the amendment, strike ``4 days'' and insert ``5 days''.
                                 ______
                                 
  SA 1973. Mr. TESTER submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, between lines 3 and 4, insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. PROHIBITION ON EXPORT OF CRUDE OIL TRANSPORTED BY 
                   KEYSTONE XL PIPELINE.

       (a) Definition of Keystone XL Pipeline.--In this section, 
     the term ``Keystone XL pipeline'' means the pipeline for the 
     import of crude oil and other hydrocarbons at the United 
     States-Canada Border at Phillips County, Montana, in 
     accordance with the application filed with the Department of 
     State on September 19, 2008 (as supplemented and amended).
       (b) Prohibition on Exports.--Subject to subsection (c), no 
     crude oil transported by the Keystone XL pipeline, or 
     petroleum products derived from the crude oil, may be 
     exported from the United States.
       (c) Waivers.--The President may grant a waiver from the 
     application of subsection (b) if the President--
       (1) determines that the waiver is necessary as the result 
     of--
       (A) national security; or
       (B) a natural or manmade disaster; or
       (2) makes an express finding that the exports described in 
     subsection (b)--
       (A) will not diminish the total quantity or quality of 
     petroleum available in the United States; and
       (B) are in the national interest of the United States.
                                 ______
                                 
  SA 1974. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; 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 
     Jobs and Domestic Energy Production Act''.

[[Page S2106]]

       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--OUTER CONTINENTAL SHELF

Sec. 101. Definitions.
Sec. 102. Outer Continental Shelf leasing program.
Sec. 103. Domestic oil and natural gas production goal.
Sec. 104. Requirement to conduct proposed oil and gas Lease Sale 216 in 
              the Central Gulf of Mexico.
Sec. 105. Requirement to conduct proposed oil and gas Lease Sale 220 on 
              the Outer Continental Shelf offshore Virginia.
Sec. 106. Requirement to conduct proposed oil and gas Lease Sale 222 in 
              the Central Gulf of Mexico.
Sec. 107. Additional leases.

               TITLE II--COASTAL PLAIN ENERGY DEVELOPMENT

Sec. 201. Definitions.
Sec. 202. Leasing program for land within the Coastal Plain.
Sec. 203. Lease sales.
Sec. 204. Grant of leases by the Secretary.
Sec. 205. Lease terms and conditions.
Sec. 206. Coastal Plain environmental protection.
Sec. 207. Expedited judicial review.
Sec. 208. Rights-of-way and easements across Coastal Plain.
Sec. 209. Conveyance.
Sec. 210. Prohibition on exports.
Sec. 211. Allocation of revenues.

                          TITLE III--OIL SHALE

Sec. 301. Findings.
Sec. 302. Definition of Secretary.
Sec. 303. Effectiveness of oil shale regulations, amendments to 
              resource management plans, and record of decisions.
Sec. 304. Lease sales.

         TITLE IV--ENERGY DEVELOPMENT AT MILITARY INSTALLATIONS

Sec. 401. Energy development at military installations.

                     TITLE V--HYDRAULIC FRACTURING

Sec. 501. Findings.
Sec. 502. Definition of Federal land.
Sec. 503. State authority.

                    TITLE I--OUTER CONTINENTAL SHELF

     SEC. 101. DEFINITIONS.

       In this title:
       (1) Environmental impact statement for the 2007 2012 5 year 
     outer continental shelf plan.--The term ``Environmental 
     Impact Statement for the 2007 2012 5 Year Outer Continental 
     Shelf Plan'' means the Final Environmental Impact Statement 
     for Outer Continental Shelf Oil and Gas Leasing Program: 2007 
     2012 (April 2007) prepared by the Secretary.
       (2) Multisale environmental impact statement.--The term 
     ``Multisale Environmental Impact Statement'' means the 
     Environmental Impact Statement for Proposed Western Gulf of 
     Mexico Outer Continental Shelf Oil and Gas Lease Sales 204, 
     207, 210, 215, and 218, and Proposed Central Gulf of Mexico 
     Outer Continental Shelf Oil and Gas Lease Sales 205, 206, 
     208, 213, 216, and 222 (September 2008) prepared by the 
     Secretary.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 102. OUTER CONTINENTAL SHELF LEASING PROGRAM.

       Section 18(a) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344(a)) is amended by adding at the end the 
     following:
       ``(5) In each oil and gas leasing program under this 
     section, the Secretary shall make available for leasing and 
     conduct lease sales that include--
       ``(A) at least 75 percent of the available acreage within 
     each outer Continental Shelf planning area that is--
       ``(i) not under lease at the time of a proposed lease sale 
     and has not otherwise been made unavailable for leasing by 
     law; and
       ``(ii) considered to have the largest undiscovered, 
     technically recoverable oil and gas resources (on a total btu 
     basis) based on the most recent national geologic assessment 
     of the outer Continental Shelf, with an emphasis on offering 
     the most geologically prospective parts of the planning area; 
     and
       ``(B) any State subdivision of an outer Continental Shelf 
     planning area that the Governor of the State that represents 
     that subdivision requests be made available for leasing.
       ``(6) In the 2012 2017 5-year oil and gas leasing program, 
     the Secretary shall make available for leasing any outer 
     Continental Shelf planning area that the Secretary 
     determines, based on the document entitled `Minerals 
     Management Service Assessment of Undiscovered Technically 
     Recoverable Oil and Gas Resources of the Nation's Outer 
     Continental Shelf, 2006'--
       ``(A) is estimated to contain more than 2,500,000,000 
     barrels of oil; or
       ``(B) is estimated to contain more than 7,500,000,000,000 
     cubic feet of natural gas.''.

     SEC. 103. DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL.

       Section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344) is amended by striking subsection (b) and 
     inserting the following:
       ``(b) Domestic Oil and Natural Gas Production Goal.--
       ``(1) In general.--In developing a 5-year oil and gas 
     leasing program, the Secretary shall establish a domestic 
     strategic production goal for the development of oil and 
     natural gas under the program that is--
       ``(A) the best estimate of the potential increase in 
     domestic production of oil and natural gas from the outer 
     Continental Shelf; and
       ``(B) focused on--
       ``(i) meeting the demand for oil and natural gas in the 
     United States;
       ``(ii) reducing the dependence of the United States on 
     foreign energy sources; and
       ``(iii) the production increases to be achieved by the 
     leasing program at the end of the 15-year period beginning on 
     the effective date of the program.
       ``(2) 2012 2017 program goal.--For purposes of the 5-year 
     oil and gas leasing program for fiscal years 2012-2017, the 
     production goal referred to in paragraph (1) shall be an 
     increase by 2027 of--
       ``(A) not less than 3,000,000 barrels in the quantity of 
     oil produced per day; and
       ``(B) not less than 10,000,000,000 cubic feet in the 
     quantity of natural gas produced per day.
       ``(3) Reports.--At the end of each 5-year oil and gas 
     leasing program and annually thereafter, 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 that describes the progress 
     of the applicable 5-year program with respect to achieving 
     the production goal established for the program, including--
       ``(A) any projections for production under the program; and
       ``(B) identifying any problems with leasing, permitting, or 
     production that would prevent the production goal from being 
     achieved.''.

     SEC. 104. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE 
                   SALE 216 IN THE CENTRAL GULF OF MEXICO.

       (a) In General.--The Secretary shall conduct offshore oil 
     and gas Lease Sale 216 under section 8 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1337) as soon as 
     practicable, but not later than 4 months, after the date of 
     enactment of this Act.
       (b) Environmental Review.--For the purposes of that lease 
     sale, the Environmental Impact Statement for the 2007 2012 5 
     Year Outer Continental Shelf Plan and the Multisale 
     Environmental Impact Statement shall be considered to satisfy 
     the requirements of the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.).

     SEC. 105. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE 
                   SALE 220 ON THE OUTER CONTINENTAL SHELF 
                   OFFSHORE VIRGINIA.

       (a) In General.--Notwithstanding the inclusion of Lease 
     Sale 220 in the fiscal years 2012 through 2017 5 Year Outer 
     Continental Shelf Oil and Gas Leasing Program, the Secretary 
     shall conduct offshore oil and gas Lease Sale 220 under 
     section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 
     1337) as soon as practicable, but not later than 1 year, 
     after the date of enactment of this Act.
       (b) Prohibition on Conflicts With Military Operations.--No 
     person may engage in any exploration, development, or 
     production of oil or natural gas off the coast of Virginia 
     that would conflict with any military operation, as 
     determined in accordance with the Memorandum of Agreement 
     between the Department of Defense and the Department of the 
     Interior on Mutual Concerns on the Outer Continental Shelf 
     signed July 20, 1983, and any revision or replacement for 
     that agreement that is agreed to by the Secretary of Defense 
     and the Secretary of the Interior after that date but before 
     the date of issuance of the lease under which the 
     exploration, development, or production is conducted.

     SEC. 106. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE 
                   SALE 222 IN THE CENTRAL GULF OF MEXICO.

       (a) In General.--The Secretary shall conduct offshore oil 
     and gas Lease Sale 222 under section 8 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1337) as soon as 
     practicable after the date of enactment of this Act, but not 
     later than September 1, 2012.
       (b) Environmental Review.--For the purposes of that lease 
     sale, the Environmental Impact Statement for the 2007 2012 5 
     Year Outer Continental Shelf Plan and the Multisale 
     Environmental Impact Statement shall be considered to satisfy 
     the requirements of the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.).

     SEC. 107. ADDITIONAL LEASES.

       Section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344) is amended by adding at the end the following:
       ``(i) Additional Lease Sales.--In addition to lease sales 
     conducted in accordance with a leasing program under this 
     section, the Secretary may hold lease sales for areas 
     identified by the Secretary to have the greatest potential 
     for new oil and gas development as a result of local support, 
     new seismic findings, or nomination by interested persons.''.

               TITLE II--COASTAL PLAIN ENERGY DEVELOPMENT

     SEC. 201. DEFINITIONS.

       In this title:
       (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) 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)).

[[Page S2107]]

       (3) Peer reviewed.--The term ``peer reviewed'' means a peer 
     review conducted--
       (A) by individuals chosen by the National Academy of 
     Sciences that have no contractual relationship with or an 
     application for a grant or other funding pending with a 
     Federal agency with leasing jurisdiction; or
       (B) if individuals described in subparagraph (A) are not 
     available, by the top individuals in the specified biological 
     fields, as determined by the National Academy of Sciences.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior (or a designee of the Secretary of the 
     Interior), acting through the Director of the Bureau of Land 
     Management (or any successor organization) in consultation 
     with the Director of the United States Fish and Wildlife 
     Service (or any successor organization).

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

       (a) In General.--Subject to subsection (b), the Secretary 
     shall take such actions as are necessary--
       (1) to establish and implement, in accordance with this 
     title, a competitive oil and gas leasing program that will 
     result in the exploration, development, and production of the 
     oil and gas resources of the Coastal Plain; and
       (2) to administer this title through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (A) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant permanent and irreversible adverse effect on fish 
     and wildlife, their habitat, subsistence resources, and the 
     environment; and
       (B) 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) Administration.--None of the provisions of this title 
     (including regulations, terms, conditions, restrictions, 
     prohibitions, stipulations, and other provisions determined 
     by the Secretary to be necessary under this title) shall 
     limit the ability of a lessee--
       (1) to create jobs; or
       (2) to conduct, to the maximum extent practicable, any of 
     the activities required to fully and completely explore, 
     develop, and produce oil and gas resources under a lease.
       (c) 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.
       (d) 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 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) only 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 10 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.
       (e) Relationship to State and Local Authority.--Nothing in 
     this title expands or limits any State or local regulatory 
     authority.
       (f) 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 is 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.
       (2) Management.--The Secretary shall manage each special 
     area designated under this subsection in a manner that 
     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 shall lease any 
     portion of a special area for which there is commercial 
     demand for oil and gas exploration, development, and 
     production (as determined under section 203) under terms that 
     permit the use of horizontal drilling technology from sites 
     on leases located outside the special area.
       (g) Limitation on Closed Areas.--The sole authority of the 
     Secretary to close land within the Coastal Plain to oil and 
     gas leasing or to exploration, development, or production 
     shall be the authority provided under this title.
       (h) Regulations.--
       (1) In general.--Subject to subsection (b), not later than 
     15 months after the date of enactment of this Act, 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, through a 
     rulemaking conducted in accordance with section 553 of title 
     5, United States Code, periodically review and, if 
     appropriate, revise the regulations issued under paragraph 
     (1) to reflect a preponderance of the best available 
     scientific evidence that is peer reviewed and obtained by 
     following appropriate, documented scientific procedures, the 
     results of which can be repeated using those same procedures.

     SEC. 203. 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.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall, by regulation, 
     establish procedures for--
       (1) the quarterly 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.--Lease sales under this title may be 
     conducted through an Internet leasing program, if the 
     Secretary determines that the program will result in--
       (1) savings to the taxpayer;
       (2) an increase in the number of bidders participating; and
       (3) higher returns than oral bidding or a sealed bidding 
     system.
       (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.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall--
       (A) not later than 22 months after the date of enactment of 
     this Act, conduct the first lease sale under this title;
       (B) offer for lease under this title not less than an 
     additional 50,000 acres at 6-, 12-, and 18-month intervals 
     following the first lease sale conducted under subparagraph 
     (A);
       (C) conduct additional sales at appropriate intervals, that 
     are not less frequent than quarterly, if sufficient interest 
     in exploration or development exists to warrant the conduct 
     of the additional sales; and
       (D) evaluate bids for each sale and issue leases resulting 
     from the sales, not later than 60 days after the date of the 
     completion of the sale.

[[Page S2108]]

       (2) Administration.--Nothing in paragraph (1) shall prevent 
     the Secretary from issuing a lease during the 60-day period 
     beginning on the date of the completion of a lease sale.

     SEC. 204. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--On payment by a lessee of such bonus as 
     may be accepted by the Secretary, the Secretary shall 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 title may be 
     sold, exchanged, assigned, sublet, or otherwise transferred 
     except with the approval of the Secretary.
       (2) Approval or denial.--
       (A) In general.--Not later 30 days after the date a lessee 
     requests approval for a transfer under paragraph (1), the 
     Secretary shall--
       (i) approve or deny the request; and
       (ii) announce the decision.
       (B) Constructive approval.--If the Secretary does not 
     announce the approval or denial of a request for a transfer 
     in accordance with subparagraph (A), the request shall be 
     considered approved.
       (3) 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. 205. LEASE TERMS AND CONDITIONS.

       (a) In General.--Subject to section 202(b) and subsection 
     (b), 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, for a period of not more than 60 days, 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 based on a preponderance of the 
     best available scientific evidence that is peer reviewed and 
     obtained by following appropriate, documented scientific 
     procedures, the results of which can be repeated using those 
     same procedures;
       (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 
     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); and
       (7) contain such other provisions as the Secretary 
     determines to be necessary to ensure compliance with this 
     title and regulations issued under this title.
       (b) Approval or Denial.--
       (1) In general.--Not later 30 days after the date a lessee 
     requests approval for a delegation or conveyance under 
     subsection (a)(4), the Secretary shall--
       (A) approve or deny the request; and
       (B) announce the decision.
       (2) Constructive approval.--If the Secretary does not 
     announce the approval or denial of a request for a delegation 
     or conveyance in accordance with paragraph (1), the request 
     shall be considered approved.

     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 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 permanent and 
     irreversible 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 10,000 acres on the Coastal Plain for each 100,000 
     acres of area leased.
       (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 permanent and irreversible adverse effect 
     identified under paragraph (1); and
       (3) the development of the plan occur after consultation 
     with each agency having jurisdiction over matters mitigated 
     by the plan.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Not later 
     than 180 days after the date of enactment of this Act, 
     subject to section 202(b), 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.--Subject to section 202(b), 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 
     permanent and irreversible adverse effects during periods of 
     concentrated fish and wildlife breeding, denning, nesting, 
     spawning, and migration based on the best available 
     scientific evidence that is peer reviewed and obtained by 
     following appropriate, documented scientific procedures, the 
     results of which can be repeated using those same procedures;
       (C) design safety and construction standards for all 
     pipelines and any access and service roads that minimize, to 
     the maximum extent practicable, significant permanent and 
     irreversible 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) reasonable 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 permanent and irreversible 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

[[Page S2109]]

       (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 by subsistence users;
       (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, 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. 207. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaints.--
       (1) Deadline.--A complaint seeking judicial review--
       (A) of a provision of this title shall be filed by not 
     later than 1 year after the date of enactment of this Act; or
       (B) of any action of the Secretary under this title shall 
     be filed--
       (i) 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
       (ii) 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 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.
       (c) Limitation on Attorneys' Fees and Court Costs.--No 
     person seeking judicial review of any action under this title 
     shall receive payment from the Federal Government for 
     attorneys' fees and other court costs under any provision of 
     law, including under any amendment made by the Equal Access 
     to Justice Act (5 U.S.C. 504 note; Public Law 96 481).

     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.

       In order to maximize revenue to the Federal Government, 
     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. 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. 211. 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 title:
       (1) 50 percent shall be deposited in the general fund of 
     the Treasury.
       (2) 50 percent shall be disbursed to the State of Alaska.

                          TITLE III--OIL SHALE

     SEC. 301. FINDINGS.

       Congress finds that--
       (1) the Office of Naval Petroleum and Oil Shale Reserves at 
     the Department of Energy has estimated that oil shale 
     resources located on Federal land hold approximately 
     2,000,000,000,000 recoverable barrels of oil;
       (2) oil shale is a strategically important domestic 
     resource that should be developed to reduce the growing 
     dependence of the United States on politically and 
     economically unstable sources of foreign oil imports;
       (3) the development of oil shale for research and 
     commercial development should be conducted--
       (A) in an environmentally sound manner;
       (B) using practices that minimize the impacts of the 
     development;
       (C) with an emphasis on sustainability; and
       (D) in a manner that benefits the United States while 
     taking into account affected States and communities;
       (4) oil shale is 1 of the best resources available for 
     advancing technology and creating jobs in the United States; 
     and
       (5) oil shale will be a critically important component of 
     the transportation fuel sector by providing a secure domestic 
     source of aviation fuel for commercial and military uses.

     SEC. 302. DEFINITION OF SECRETARY.

       In this title, the term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 303. EFFECTIVENESS OF OIL SHALE REGULATIONS, AMENDMENTS 
                   TO RESOURCE MANAGEMENT PLANS, AND RECORD OF 
                   DECISIONS.

       (a) Regulations.--
       (1) In general.--Notwithstanding any other provision of 
     law, the final rule entitled ``Oil Shale Management--
     General'' (73 Fed. Reg. 69414 (November 18, 2008)) shall be 
     considered to satisfy all legal and procedural requirements 
     of applicable law, including--
       (A) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.);
       (B) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       (C) the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1701 et seq.); and
       (D) the Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.) 
     and amendments made by that Act.
       (2) Implementation.--The Secretary shall implement the 
     regulations described in paragraph (1) (including the oil 
     shale and oil sands leasing program authorized by the 
     regulations) without regard to any other administrative 
     requirements.
       (b) Resource Management Plan and Record of Decision.--
       (1) Definition of covered oil shale and leasing program.--
     In this subsection, the term ``covered oil shale and leasing 
     program'' means the oil shale and leasing program established 
     by--
       (A) the programmatic environmental impact statement for 
     commercial leasing for oil and tar sand development in 
     Colorado, Utah, and Wyoming issued by the Bureau of Land 
     Management during September 2008; and
       (B) the Record of Decision that adopted the proposed land 
     use amendments issued by the Bureau of Land Management on 
     November 17, 2008.
       (2) Requirements.--Notwithstanding any other provision of 
     law, the covered oil shale and leasing program shall be 
     considered to satisfy all legal and procedural requirements

[[Page S2110]]

     of applicable law, including the provisions of law described 
     in subsection (a)(1).
       (3) Implementation.--The Secretary shall implement the 
     covered oil shale and leasing program without regard to any 
     other administrative requirements.

     SEC. 304. LEASE SALES.

       (a) Additional Research and Development Lease Sales.--Not 
     later than 180 days after the date of enactment of this Act, 
     the Secretary shall hold a lease sale in which the Secretary 
     shall offer an additional 10 parcels for lease for research, 
     development, and demonstration of oil shale resources in 
     accordance with the terms offered in the solicitation of bids 
     for the leases published on January 15, 2009 (74 Fed. Reg. 
     2611).
       (b) Commercial Lease Sales.--
       (1) In general.--Not later than January 1, 2016, the 
     Secretary shall hold not less than 5 separate commercial 
     lease sales in areas considered to have the most potential 
     for oil shale or oil sands development, as determined by the 
     Secretary, in areas nominated through public comment.
       (2) Administration.--Each lease sale shall be--
       (A) for an area of not less than 25,000 acres; and
       (B) in multiple lease blocs.
       (c) Reduced Payments to Ensure Production.--If the 
     Secretary determines that the royalties, fees, rentals, bonus 
     bids, or other payments for leases of Federal land for the 
     development and production of oil shale resources authorized 
     by Federal law are hindering production of the oil shale 
     resources, the Secretary may temporarily reduce the 
     royalties, fees, rentals, bonus bids, or other payments to 
     provide incentives for, and encourage the development of, the 
     oil shale resources.

         TITLE IV--ENERGY DEVELOPMENT AT MILITARY INSTALLATIONS

     SEC. 401. ENERGY DEVELOPMENT AT MILITARY INSTALLATIONS.

       Section 35 of the Mineral Leasing Act (30 U.S.C. 191) is 
     amended--
       (1) in the first sentence of subsection (a), by striking 
     ``All money received'' and inserting ``Subject to subsection 
     (d), all money received''; and
       (2) by adding at the end the following:
       ``(d) Certain Sales, Bonuses, and Royalties.--
       ``(1) In general.--Of the amounts received under subsection 
     (a), the Secretary of the Treasury shall transfer to the 
     Secretary of Defense for each military installation that 
     holds title to or occupies land on which oil and gas 
     production is carried out, an amount equal to the total 
     amount received from sales, bonuses, rentals, or royalties 
     (including interest charges) from the production or leasing 
     of shale gas on the land.
       ``(2) Use of funds.--Any amounts received by the Secretary 
     of Defense under paragraph (1) shall be used to offset costs 
     of military installations for--
       ``(A) administrative operations; and
       ``(B) the maintenance and repair of facilities and 
     infrastructure of military installations.''.

                     TITLE V--HYDRAULIC FRACTURING

     SEC. 501. FINDINGS.

       Congress finds that--
       (1) hydraulic fracturing is a commercially viable practice 
     that has been used in the United States for more than 60 
     years in more than 1,000,000 wells;
       (2) the Ground Water Protection Council, a national 
     association of State water regulators that is considered to 
     be a leading groundwater protection organization in the 
     United States, released a report finding that the ``current 
     State regulation of oil and gas activities is environmentally 
     proactive and preventive'';
       (3) that report also concluded that ``[a]ll oil and gas 
     producing States have regulations which are designed to 
     provide protection for water resources'';
       (4) a 2004 study by the Environmental Protection Agency, 
     entitled ``Evaluation of Impacts to Underground Sources of 
     Drinking Water by Hydraulic Fracturing of Coalbed Methane 
     Reservoirs'', found no evidence of drinking water wells 
     contaminated by fracture fluid from the fracked formation;
       (5) a 2009 report by the Ground Water Protection Council, 
     entitled ``State Oil and Natural Gas Regulations Designed to 
     Protect Water Resources'', found a ``lack of evidence'' that 
     hydraulic fracturing conducted in both deep and shallow 
     formations presents a risk of endangerment to ground water;
       (6) a January 2009 resolution by the Interstate Oil and Gas 
     Compact Commission stated ``The states, who regulated 
     production, have comprehensive laws and regulations to ensure 
     operations are safe and to protect drinking water. States 
     have found no verified cases of groundwater contamination 
     associated with hydraulic fracturing.'';
       (7) on May 24, 2011, before the Oversight and Government 
     Reform Committee of the House of Representatives, Lisa 
     Jackson, the Administrator of the Environmental Protection 
     Agency, testified that she was ``not aware of any proven case 
     where the fracking process itself has affected water'';
       (8) in 2011, Bureau of Land Management Director Bob Abbey 
     stated, ``We have not seen evidence of any adverse effect as 
     a result of the use of the chemicals that are part of that 
     fracking technology.'';
       (9)(A) activities relating to hydraulic fracturing (such as 
     surface discharges, wastewater disposal, and air emissions) 
     are already regulated at the Federal level under a variety of 
     environmental statutes, including portions of--
       (i) the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.);
       (ii) the Safe Drinking Water Act (42 U.S.C. 300f et seq.); 
     and
       (iii) the Clean Air Act (42 U.S.C. 7401 et seq.); but
       (B) Congress has continually elected not to include the 
     hydraulic fracturing process in the underground injection 
     control program under the Safe Drinking Water Act (42 U.S.C. 
     300f et seq.);
       (10) in 2011, the Secretary of the Interior announced the 
     intention to promulgate new Federal regulations governing 
     hydraulic fracturing on Federal land; and
       (11) a February 2012 study by the Energy Institute at the 
     University of Texas at Austin entitled ``Fact-Based 
     Regulation for Environmental Protection in Shale Gas 
     Development'' found that ``[n]o evidence of chemicals from 
     hydraulic fracturing fluid has been found in aquifers as a 
     result of fracturing operations.''.

     SEC. 502. DEFINITION OF FEDERAL LAND.

       In this title, the term ``Federal land'' means--
       (1) public lands (as defined in section 103 of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1702));
       (2) National Forest System land;
       (3) land under the jurisdiction of the Bureau of 
     Reclamation;
       (4) land under the jurisdiction of the Corps of Engineers; 
     and
       (5) Indian lands (as defined in section 3 of the Native 
     American Business Development, Trade Promotion, and Tourism 
     Act of 2000 (25 U.S.C. 4302)).

     SEC. 503. STATE AUTHORITY.

       (a) In General.--A State shall have the sole authority to 
     promulgate or enforce any regulation, guidance, or permit 
     requirement regarding the underground injection of fluids or 
     propping agents pursuant to the hydraulic fracturing process, 
     or any component of that process, relating to oil, gas, or 
     geothermal production activities on or under any land within 
     the boundaries of the State.
       (b) Federal Land.--The underground injection of fluids or 
     propping agents pursuant to the hydraulic fracturing process, 
     or any components of that process, relating to oil, gas, or 
     geothermal production activities on Federal land shall be 
     subject to the law of the State in which the land is located.
                                 ______
                                 
  SA 1975. Mr. MERKLEY (for himself, Mr. Lee, Mr. Tester, Mr. Baucus, 
and Mr. Wyden) submitted an amendment intended to be proposed by him to 
the bill S. 1789, to improve, sustain, and transform the United States 
Postal Service which was ordered to lie on the table; as follows:

       At the end of section 204, add the following:
       (d) Limitation on Closing of Post Offices.--Section 404(d) 
     of title 39, United States Code, as amended by this Act, is 
     amended by adding at the end the following:
       ``(7)(A) Notwithstanding any other provision of this 
     subsection, in making any determination under subsection 
     (a)(3) as to the necessity for the closing or consolidation 
     of any post office, the Postal Service may not close any post 
     office if the closing would--
       ``(i) result in more than 10 miles distance (as measured on 
     roads with year-round access) between any 2 post offices; or
       ``(ii) require a postal customer to travel more than 10 
     miles to reach a post office that is inaccessible by road.
       ``(B) Nothing in this paragraph may be construed to 
     encourage the Postal Service to close a post office not 
     described in subparagraph (A).''.
                                 ______
                                 
  SA 1976. Ms. MURKOWSKI (for herself, Mr. Vitter, Mr. Begich, and Mr. 
Barrasso) submitted an amendment intended to be proposed by her to the 
bill S. 2204, to eliminate unnecessary tax subsidies and promote 
renewable energy and energy conservation; 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 ``No Surface Occupancy Western 
     Arctic Coastal Plain Domestic Energy Security Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Coastal plain.--The term ``Coastal Plain'' means the 
     area identified as the ``1002 Coastal Plain Area'' on the 
     map.
       (2) Final statement.--The term ``Final Statement'' means 
     the final legislative environmental impact statement on the 
     Coastal Plain, dated April 1987, and prepared pursuant to--
       (A) section 1002 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3142); and
       (B) section 102(2)(C) of the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4332(2)(C)).
       (3) Map.--The term ``map'' means the map entitled ``Arctic 
     National Wildlife Refuge'', dated September 2005, and 
     prepared by the United States Geological Survey.
       (4) 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

[[Page S2111]]

     the United States Fish and Wildlife Service and in 
     coordination with a State coordinator appointed by the 
     Governor of the State of Alaska.
       (5) Western coastal plain.--The term ``Western Coastal 
     Plain'' means that area of the Coastal Plain--
       (A) that borders the land of the State of Alaska to the 
     west and State of Alaska offshore waters of the Beaufort Sea 
     on the north; and
       (B) from which the Secretary, in the sole discretion of the 
     Secretary, finds oil and gas can be produced through the use 
     of horizontal drilling or other subsurface technology from 
     sites outside or underneath the surface of the Coastal Plain.

     SEC. 3. LEASING PROGRAM FOR LAND WITHIN THE WESTERN COASTAL 
                   PLAIN.

       (a) In General.--
       (1) Authorization.--There is authorized the exploration, 
     leasing, development, and production of oil and gas from the 
     Western Coastal Plain.
       (2) Actions.--The Secretary shall take such actions as are 
     necessary--
       (A) to establish and implement, in accordance with this 
     Act, 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 Western Coastal Plain; and
       (B) to administer this Act 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 Western Coastal Plain will 
     result in no significant adverse effect on fish and wildlife, 
     fish and wildlife habitat, subsistence resources, and the 
     environment;
       (ii) prohibit surface occupancy of the Western Coastal 
     Plain during oil and gas development and production; and
       (iii) 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 Act in a manner that 
     ensures the receipt of fair market value by the public for 
     the mineral resources to be leased.
       (b) 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 leasing program and activities 
     authorized by this section in the Western 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 doi legislative environmental impact 
     statement.--The Final Statement shall be considered to 
     satisfy the requirements of the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.) 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 Act before the conduct of the first lease 
     sale.
       (c) Relationship to State and Local Authority.--Nothing in 
     this Act expands or limits any State or local regulatory 
     authority.
       (d) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall promulgate such 
     regulations as are necessary to carry out this Act.
       (2) Revision of regulations.--The Secretary shall 
     periodically review and, as appropriate, revise the rules and 
     regulations promulgated under paragraph (1) to reflect any 
     significant biological, environmental, or engineering data 
     that come to the attention of the Secretary.

     SEC. 4. LEASE SALES.

       (a) Qualified Lessees.--
       (1) In general.--Except as provided in paragraph (2), land 
     may be leased under this Act 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.).
       (2) Exclusion.--Land may not be leased under this Act to 
     any person prohibited from participation in a lease sale 
     under section 1002(e)(2)(C) of the Alaska National Interest 
     Lands Conservation Act (16 U.S.C. 3142(e)(2)(C)).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Western Coastal Plain for inclusion in, or 
     exclusion from, a lease sale;
       (2) the holding of lease sales after the nomination process 
     described in paragraph (1); 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 Act 
     shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--For the first lease 
     sale under this Act, 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 18 months after the date of enactment of 
     this Act, conduct the first lease sale under this Act;
       (2) not later than 2 years after the first lease sale, 
     conduct a second lease sale under this Act; and
       (3) conduct additional sales at appropriate intervals if, 
     as determined by the Secretary, sufficient interest in 
     development exists to warrant the conduct of the additional 
     sales.

     SEC. 5. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--On 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 4 a lease for any land on the 
     Western Coastal Plain.
       (b) Subsequent Transfers.--
       (1) In general.--No lease issued under this Act may be 
     sold, exchanged, assigned, sublet, or otherwise transferred 
     except with the approval of the Secretary.
       (2) Condition for approval.--Before granting any approval 
     under paragraph (1), the Secretary shall consult with, and 
     give due consideration to the opinion of, the Attorney 
     General.

     SEC. 6. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this Act shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent of the quantity 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 Western 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 Western 
     Coastal Plain shall be fully responsible and liable for the 
     reclamation of land within the Western Coastal Plain and any 
     other Federal land that is adversely affected in connection 
     with exploration activities conducted under the lease and 
     within the Western 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 described in paragraph (3) to another person 
     without the express written approval of the Secretary;
       (5) contain terms and conditions relating to protection of 
     fish and wildlife, fish and wildlife habitat, subsistence 
     resources, and the environment as required under section 
     3(a)(2);
       (6) provide that each lessee, and each agent and contractor 
     of a lessee, shall use the best efforts of the lessee to 
     provide a fair share of employment and contracting for Alaska 
     Natives and Alaska Native Corporations from throughout the 
     State, as determined by the level of obligation previously 
     agreed to in the Federal Agreement; and
       (7) contain such other provisions as the Secretary 
     determines to be necessary to ensure compliance with this 
     Act, including regulations promulgated under this Act.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this Act, 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 Act (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 Act negotiate to 
     obtain a project labor agreement for the employment of 
     laborers and mechanics on production, maintenance, and 
     construction under the lease.

     SEC. 7. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaints.--
       (1) Deadline.--A complaint seeking judicial review of a 
     provision of this Act or an action of the Secretary under 
     this Act 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 Act or an action of the Secretary under 
     this Act shall be filed in the United States Court of Appeals 
     for the District of Columbia Circuit.
       (3) Scope.--
       (A) In general.--Judicial review of a decision of the 
     Secretary relating to a lease sale under this Act (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 Act; 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 Act shall be presumed to be correct unless proven 
     otherwise by clear and convincing evidence.

[[Page S2112]]

       (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. 8. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Establishment of Fund.--
       (1) In general.--The Secretary shall establish in the 
     Treasury a fund to be known as the ``Coastal Plain Local 
     Government Impact Aid Assistance Fund'' (referred to in this 
     section as the ``Fund'') to offset any planning, land use-
     related, or service-related impacts of offshore development 
     caused by this Act.
       (2) Deposits.--The Secretary of the Treasury shall deposit 
     into the Fund, $15,000,000 each year from the amount 
     available under section 9(1).
       (b) Assistance.--The Governor of Alaska, in cooperation 
     with the Mayor of the North Slope Borough, shall use amounts 
     in the Fund to provide assistance to the 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 or near the Coastal Plain 
     under this Act, 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, rescue, and other medical services;
       (3) to compensate residents of the Coastal Plain or nearby 
     waters for significant damage to environmental, social, 
     cultural, recreation, 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--
       (i) to monitor development in or near the Coastal Plain; 
     and
       (ii) to provide information and recommendations based on 
     traditional knowledge; 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 collect from residents of the Coastal Plain 
     information regarding the impacts of development on fish, 
     wildlife, whales, other marine mammals, habitats, subsistence 
     resources, and the environment of the Coastal Plain; and
       (iii) to ensure that the information collected under clause 
     (ii) is submitted to any appropriate Federal agency.

     SEC. 9. ALLOCATION 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 Act--
       (1) 50 percent shall be paid semiannually to the State of 
     Alaska; and
       (2) 50 percent shall be allocated in accordance with 
     subsection (b).
       (b) Allocation of Federal Funds.--Any amounts made 
     available under subsection (a)(2), plus an appropriated 
     amount equal to the amount of Federal income tax attributable 
     to sales of oil and gas produced from operations described in 
     subsection (a), 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) $15,000,000 shall be deposited by the Secretary of the 
     Treasury into the Fund created under section 8(a)(1).
       (2) The remainder shall be available as follows:
       (A) Twenty-five 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) Ten 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) Ten 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) Ten percent shall be available to the Department of the 
     Interior for award to wildlife habitat and fish and game 
     programs authorized by the Pittman-Robertson Wildlife 
     Restoration Act (16 U.S.C. 669 et seq.) and the Dingell-
     Johnson Sport Fish Restoration Act) (commonly known as the 
     ``Wallop-Breaux Act'') (16 U.S.C. 777 et seq.).
       (E) The balance shall be deposited into the Treasury as 
     miscellaneous receipts.

                          ____________________