[Congressional Record (Bound Edition), Volume 152 (2006), Part 5]
[Senate]
[Pages 6115-6121]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           NOTICES OF INTENT

  Mr. DORGAN. Mr. President, I submit the following notice in writing: 
In accordance with rule V of the Standing Rules of the Senate, I hereby 
give notice in writing that it is my intention to move to suspend 
paragraph 4 of rule XVI for the purpose of proposing to the bill H.R. 
4939 amendment No. 3670. (The amendment is printed in today's Record 
under ``Text of amendments.'')
  Mr. DOMENICI. Mr. President, I submit the following notice in 
writing: In accordance with Rule V of the Standing Rules of the Senate, 
I hereby give notice in writing that it is my intention to move to 
suspend paragraph 4 of rule XVI for the purpose of proposing to the 
bill H.R. 4939 the attached amendment, as follows:

       On page 253, between lines 19 and 20, insert the following:

                 TITLE VIII--GAS TAX RELIEF AND REBATE

                  Subtitle A--Fuel Tax Holiday Rebate

     SEC. 8101. FUEL TAX HOLIDAY REBATE.

       (a) In General.--Subchapter B of chapter 65 of the Internal 
     Revenue Code of 1986 (relating to rules of special 
     application in the case of abatements, credits, and refunds) 
     is amended by adding at the end the following new section:

     ``SEC. 6430. FUEL TAX HOLIDAY REBATE.

       ``(a) General Rule.--Except as otherwise provided in this 
     section, each individual shall be treated as having made a 
     payment against the tax imposed by chapter 1 for the taxable 
     year beginning in 2006 in an amount equal to $100.
       ``(b) Remittance of Payment.--The Secretary shall remit to 
     each taxpayer the payment described in subsection (a) not 
     later than August 30, 2006.
       ``(c) Certain Persons Not Eligible.--This section shall not 
     apply to--
       ``(1) any taxpayer who did not have any adjusted gross 
     income for the preceding taxable year or whose adjusted gross 
     income for such preceding taxable year exceeded the threshold 
     amount (as determined under section 151(d)(3)(C) for such 
     preceding taxable year),
       ``(2) any individual with respect to whom a deduction under 
     section 151 is allowable to another taxpayer for the taxable 
     year beginning in 2006,
       ``(3) any estate or trust, or
       ``(4) any nonresident alien individual.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting before the period 
     ``, or from section 6430 of such Code''.
       (c) Clerical Amendment.--The table of sections for 
     subchapter B of chapter 65 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new item:

``Sec. 6430. Fuel tax holiday rebate.''.

       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

                       Subtitle B--Price Gouging

     SEC. 8201. SHORT TITLE.

       This subtitle may be cited as the ``Gasoline Consumer Anti-
     Price-Gouging Protection Act''.

     SEC. 8202. PROTECTION OF CONSUMERS AGAINST PRICE GOUGING.

       It is unlawful for any person to increase the price at 
     which that person sells, or offers to sell, gasoline or 
     petroleum distillates to the public (for purposes other than 
     resale) in, or for use in, an area covered by an emergency 
     proclamation by an unconscionable amount while the 
     proclamation is in effect.

     SEC. 8203. JUSTIFIABLE PRICE INCREASES.

       (a) In General.--The prohibition in section 8202 does not 
     apply to the extent that the increase in the retail price of 
     the gasoline or petroleum distillate is attributable to--
       (1) an increase in the wholesale cost of gasoline and 
     petroleum distillates for the region in which the area to 
     which a proclamation under section 8202 applies is located;
       (2) an increase in the replacement costs for gasoline or 
     petroleum distillate sold;
       (3) an increase in operational costs; or
       (4) regional, national, or international market conditions.
       (b) Other Mitigating Factors.--In determining whether a 
     violation of section 8202 has occurred, there also shall be 
     taken into account, among other factors, the price that would 
     reasonably equate supply and demand in a competitive and 
     freely functioning market and whether the price at which the 
     gasoline or petroleum distillate was sold reasonably reflects 
     additional costs, not within the control of the seller, that 
     were paid or incurred by the seller.

     SEC. 8204. FEDERAL AND STATE PROCLAMATIONS.

       (a) In General.--For purposes of this subtitle--
       (1) the President may issue an emergency proclamation for 
     any area within the United States in which an abnormal market 
     disruption has occurred or is reasonably expected to occur; 
     and

[[Page 6116]]

       (2) the chief executive officer of any State may issue an 
     emergency proclamation for any such area within that State.
       (b) Scope and Duration.--
       (1) In general.--An emergency proclamation issued under 
     subsection (a) shall specify with particularity--
       (A) the geographic area to which it applies;
       (B) the period for which the proclamation applies; and
       (C) the event, circumstance, or condition that is the 
     reason such a proclamation is determined to be necessary.
       (2) Limitations.--An emergency proclamation issued under 
     subsection (a)--
       (A) may not apply for a period of more than 30 consecutive 
     days (renewable for a consecutive period of not more than 30 
     days); and
       (B) may apply to a period of not more than 7 days preceding 
     the occurrence of an event, circumstance, or condition that 
     is the reason such a proclamation is determined to be 
     necessary.

     SEC. 8205. ENFORCEMENT BY FEDERAL TRADE COMMISSION.

       (a) Violation Is Unfair or Deceptive Act or Practice.--This 
     subtitle shall be enforced by the Federal Trade Commission as 
     if the violation of section 8202 were an unfair or deceptive 
     act or practice proscribed under a rule issued under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (b) Actions by the Commission.--The Commission shall 
     prevent any person from violating this subtitle in the same 
     manner, by the same means, and with the same jurisdiction, 
     powers, and duties as though all applicable terms and 
     provisions of the Federal Trade Commission Act (15 U.S.C. 41 
     et seq.) were incorporated into and made a part of this 
     subtitle. Any entity that violates any provision of this 
     subtitle is subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     subtitle.
       (c) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Federal Trade Commission shall 
     prescribe such regulations as may be necessary or appropriate 
     to implement this subtitle.

     SEC. 8206. ENFORCEMENT BY STATES.

       (a) In General.--A State, as parens patriae, may bring a 
     civil action on behalf of its residents in an appropriate 
     district court of the United States to enforce the provisions 
     of this subtitle, whenever the chief legal officer of the 
     State has reason to believe that the interests of the 
     residents of the State have been or are being threatened or 
     adversely affected by a violation of this subtitle or a 
     regulation under this subtitle.
       (b) Notice.--The State shall serve written notice to the 
     Federal Trade Commission of any civil action under subsection 
     (a) prior to initiating such civil action. The notice shall 
     include a copy of the complaint to be filed to initiate such 
     civil action, except that if it is not feasible for the State 
     to provide such prior notice, the State shall provide such 
     notice immediately upon instituting such civil action.
       (c) Authority To Intervene.--Upon receiving the notice 
     required by subsection (b), the Commission may intervene in 
     such civil action and upon intervening--
       (1) be heard on all matters arising in such civil action; 
     and
       (2) file petitions for appeal of a decision in such civil 
     action.
       (d) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this section shall 
     prevent the chief legal officer of a State from exercising 
     the powers conferred on that officer by the laws of such 
     State to conduct investigations or to administer oaths or 
     affirmations or to compel the attendance of witnesses or the 
     production of documentary and other evidence.
       (e) Venue; Service of Process.--In a civil action brought 
     under subsection (a)--
       (1) the venue shall be a judicial district in which the 
     violation occurred;
       (2) process may be served without regard to the territorial 
     limits of the district or of the State in which the civil 
     action is instituted; and
       (3) a person who participated in an alleged violation that 
     is being litigated in the civil action may be joined in the 
     civil action without regard to the residence of the person.
       (f) Limitation on State Action While Federal Action Is 
     Pending.--If the Commission has instituted a civil action or 
     an administrative action for violation of this subtitle, the 
     chief legal officer of the State in which the violation 
     occurred may not bring an action under this section during 
     the pendency of that action against any defendant named in 
     the complaint of the Commission or the other agency for any 
     violation of this subtitle alleged in the complaint.
       (g) Enforcement of State Law.--Nothing contained in this 
     section shall prohibit an authorized State official from 
     proceeding in State court to enforce a civil or criminal 
     statute of such State.

     SEC. 8207. PENALTIES.

       (a) Civil Penalty.--
       (1) In general.--In addition to any penalty applicable 
     under the Federal Trade Commission Act any person who 
     violates this subtitle is punishable by a civil penalty of--
       (A) not more than $500,000, in the case of an independent 
     small business marketer of gasoline (within the meaning of 
     section 324(c) of the Clean Air Act (42 U.S.C. 7625(c)); and
       (B) not more than $5,000,000 in the case of any other 
     person.
       (2) Method of assessment.--The penalty provided by 
     paragraph (1) shall be assessed in the same manner as civil 
     penalties imposed under section 5 of the Federal Trade 
     Commission Act (15 U.S.C. 45).
       (3) Multiple offenses; mitigating factors.--In assessing 
     the penalty provided by subsection (a)--
       (A) each day of a continuing violation shall be considered 
     a separate violation; and
       (B) the Commission shall take into consideration the 
     seriousness of the violation and the efforts of the person 
     committing the violation to remedy the harm caused by the 
     violation in a timely manner.
       (b) Criminal Penalty.--
       (1) In general.--In addition to any penalty applicable 
     under the Federal Trade Commission Act, the violation of this 
     subtitle is punishable by a fine of not more than $1,000,000, 
     imprisonment for not more than 2 years, or both.
       (2) Enforcement.--The criminal penalty provided by 
     paragraph (1) may be imposed only pursuant to a criminal 
     action brought by the Attorney General or other officer of 
     the Department of Justice, or any attorney specially 
     appointed by the Attorney General of the United States, in 
     accordance with section 515 of title 28, United States Code.

     SEC. 8208. DEFINITIONS.

       In this subtitle:
       (1) Abnormal market disruption.--The term ``abnormal market 
     disruption'' means there is a reasonable likelihood that, in 
     the absence of a proclamation under section 8204(a), there 
     will be an increase in the average retail price of gasoline 
     or petroleum distillates in the area to which the 
     proclamation applies as a result of a change in the market, 
     whether actual or imminently threatened, resulting from 
     weather, a natural disaster, strike, civil disorder, war, 
     military action, a national or local emergency, or other 
     similar cause, that adversely affects the availability or 
     delivery gasoline or petroleum distillates.
       (2) State.--The term ``State'' means the several States of 
     the United States and the District of Columbia.
       (3) Unconscionable amount.--The term ``unconscionable 
     amount'' means, with respect to any person to whom section 
     8202 applies, a significant increase in the price at which 
     gasoline or petroleum distillates are sold or offered for 
     sale by that person that increases the price, for the same 
     grade of gasoline or petroleum distillate, to an amount 
     that--
       (A) substantially exceeds the average price at which 
     gasoline or petroleum distillates were sold or offered for 
     sale by that person during the 30-day period immediately 
     preceding the sale or offer; and
       (B) cannot be justified by taking into account the factors 
     described in section --03(b).

     SEC. 8209. EFFECTIVE DATE.

       This subtitle shall take effect on the date on which a 
     final rule issued by the Federal Trade Commission under 
     section 8205(c) is published in the Federal Register.

                       Subtitle C--Tax Provisions

     SEC. 8301. REPEAL OF THE LIMITATION ON NUMBER OF NEW 
                   QUALIFIED HYBRID AND ADVANCED LEAN -BURN 
                   TECHNOLOGY VEHICLES ELIGIBLE FOR CREDIT.

       (a) In General.--Subsection (f) of section 30B of the 
     Internal Revenue Code of 1986 is repealed.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendment made by 
     section 1341(a) of the Energy Policy Act of 2005.

     SEC. 8302. EXCEPTION FROM DEPRECIATION LIMITATION FOR CERTAIN 
                   ALTERNATIVE AND ELECTRIC PASSENGER AUTOMOBILES.

       (a) In General.--Paragraph (1) of section 280F(a) of the 
     Internal Revenue Code of 1986 (relating to limitation) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Special rule for certain alternative motor vehicles 
     and qualified electric vehicles.--Subparagraph (A) shall not 
     apply to any motor vehicle for which a credit is allowable 
     under section 30 or 30B.''.
       (b) Conforming Amendment.--Subparagraph (C) of section 
     280F(a)(1) of the Internal Revenue Code of 1986 is amended by 
     striking clause (ii) and by redesignating clause (iii) as 
     clause (ii).
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 8303. EXTENSION OF ELECTION TO EXPENSE CERTAIN 
                   REFINERIES.

       (a) In General.--Section 179C(c)(1) of the Internal Revenue 
     Code of 1986 (defining qualified refinery property) is 
     amended--
       (1) by striking ``and before January 1, 2012'' in 
     subparagraph (B) and inserting ``and, in the case of any 
     qualified refinery described in subsection (d)(1), before 
     January 1, 2012'', and

[[Page 6117]]

       (2) by inserting ``if described in subsection (d)(1)'' 
     after ``of which'' in subparagraph (F)(i).
       (b) Conforming Amendment.--Subsection (d) of section 179C 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(d) Qualified Refinery.--For purposes of this section, 
     the term `qualified refinery' means any refinery located in 
     the United States which is designed to serve the primary 
     purpose of processing liquid fuel from--
       ``(1) crude oil, or
       ``(2) qualified fuels (as defined in section 45K(c)).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendment made by 
     section 1323(a) of the Energy Policy Act of 2005.

     SEC. 8304. 5-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
                   EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL 
                   COMPANIES.

       (a) In General.--Section 167(h) of the Internal Revenue 
     Code of 1986 (relating to amortization of geological and 
     geophysical expenditures) is amended by adding at the end the 
     following new paragraph:
       ``(5) Special rule for major integrated oil companies.--
       ``(A) In general.--In the case of an integrated oil company 
     described in subparagraph (B), paragraphs (1) and (4) shall 
     be applied by substituting `5-year' for `24 month'.
       ``(B) Integrated oil company described.--An integrated oil 
     company is described in this subparagraph if such company is 
     an integrated oil company (as defined in section 291(b)(4)) 
     which--
       ``(i) has an average daily worldwide production of crude 
     oil of at least 500,000 barrels for the taxable year,
       ``(ii) had gross receipts in excess of $1,000,000,000 for 
     its last taxable year ending during calendar year 2005, and
       ``(iii) has an ownership interest (within the meaning of 
     section 613A(d)(3)) in crude oil refiner of 15 percent or 
     more.

     For purposes of the preceding sentence, all persons treated 
     as a single employer under subsections (a) and (b) of section 
     shall be treated as 1 person and, in case of a short taxable 
     year, the rule under section 448(c)(3)(B) shall apply''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendment made by 
     section 1329 of the Energy Policy Act of 2005.

     SEC. 8305. REPEAL OF LIFO METHOD OF INVENTORY ACCOUNTING.

       (a) In General.--Sections 472, 473, and 474 of the Internal 
     Revenue Code of 1986 are repealed.
       (b) Conforming Amendments.--
       (1) Section 56(g)(4)(D)(iii) of such Code is repealed.
       (2) Section 312(n)(4) of such Code is repealed.
       (3) Section 1363(d) of such Code is repealed.
       (c) Effective Date.--The repeals made by this section shall 
     apply to taxable years beginning after the date of the 
     enactment of this Act.
       (d) Change in Method of Accounting.--In the case of any 
     taxpayer required by the repeals made by subsection (a) to 
     change its method accounting for its first taxable year 
     beginning after the date of the enactment of this Act--
       (1) such change shall be treated as initiated by the 
     taxpayer,
       (2) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (3) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     ratably over the 20-taxable year period beginning with the 
     first taxable year beginning after such date of enactment.

                       Subtitle D--CAFE Standards

     SEC. 8401. CLARIFICATION OF AUTHORITY OF SECRETARY OF 
                   TRANSPORTATION TO AMEND FUEL ECONOMY STANDARDS 
                   FOR PASSENGER VEHICLES.

       Section 32902(c) of title 49, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``(1) Subject to 
     paragraph (2) of this subsection, the'' and inserting 
     ``The''; and
       (2) by striking paragraph (2).

                     Subtitle E--Alternative Fuels

     SEC. 8501. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

       Section 942(f) of the Energy Policy Act of 2005 (42 U.S.C. 
     16251(f)) is amended by striking ``$250,000,000'' and 
     inserting ``$150,000,000 for fiscal year 2007, $200,000,000 
     for fiscal year 2008, and $250,000,000 for each of fiscal 
     years 2009 through 2011''.

     SEC. 8502. ADVANCED ENERGY INITIATIVE FOR VEHICLES.

       (a) Purposes.--The purposes of this section are--
       (1) to enable and promote, in partnership with industry, 
     comprehensive development, demonstration, and 
     commercialization of a wide range of electric drive 
     components, systems, and vehicles using diverse electric 
     drive transportation technologies;
       (2) to make critical public investments to help private 
     industry, institutions of higher education, National 
     Laboratories, and research institutions to expand innovation, 
     industrial growth, and jobs in the United States;
       (3) to expand the availability of the existing electric 
     infrastructure for fueling light duty transportation and 
     other on-road and nonroad vehicles that are using petroleum 
     and are mobile sources of emissions--
       (A) including the more than 3,000,000 reported units (such 
     as electric forklifts, golf carts, and similar nonroad 
     vehicles) in use on the date of enactment of this Act; and
       (B) with the goal of enhancing the energy security of the 
     United States, reduce dependence on imported oil, and reduce 
     emissions through the expansion of grid-supported mobility;
       (4) to accelerate the widespread commercialization of all 
     types of electric drive vehicle technology into all sizes and 
     applications of vehicles, including commercialization of 
     plug-in hybrid electric vehicles and plug-in hybrid fuel cell 
     vehicles; and
       (5) to improve the energy efficiency of and reduce the 
     petroleum use in transportation.
       (b) Definitions.--In this section:
       (1) Battery.--The term ``battery'' means an energy storage 
     device used in an on-road or nonroad vehicle powered in whole 
     or in part using an off-board or on-board source of 
     electricity.
       (2) Electric drive transportation technology.--The term 
     ``electric drive transportation technology'' means--
       (A) a vehicle that--
       (i) uses an electric motor for all or part of the motive 
     power of the vehicle; and
       (ii) may use off-board electricity, including battery 
     electric vehicles, fuel cell vehicles, engine dominant hybrid 
     electric vehicles, plug-in hybrid electric vehicles, plug-in 
     hybrid fuel cell vehicles, and electric rail; or
       (B) equipment relating to transportation or mobile sources 
     of air pollution that uses an electric motor to replace an 
     internal combustion engine for all or part of the work of the 
     equipment, including corded electric equipment linked to 
     transportation or mobile sources of air pollution.
       (3) Engine dominant hybrid electric vehicle.--The term 
     ``engine dominant hybrid electric vehicle'' means an on-road 
     or nonroad vehicle that--
       (A) is propelled by an internal combustion engine or heat 
     engine using--
       (i) any combustible fuel; and
       (ii) an on-board, rechargeable storage device; and
       (B) has no means of using an off-board source of 
     electricity.
       (4) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
     means an on-road or nonroad vehicle that uses a fuel cell (as 
     defined in section 803 of the Energy Policy Act of 2005 (42 
     U.S.C. 16152)).
       (5) Initiative.--The term ``Initiative'' means the Advanced 
     Battery Initiative established by the Secretary under 
     subsection (f)(1).
       (6) Nonroad vehicle.--The term ``nonroad vehicle'' has the 
     meaning given the term in section 216 of the Clean Air Act 
     (42 U.S.C. 7550).
       (7) Plug-in hybrid electric vehicle.--The term ``plug-in 
     hybrid electric vehicle'' means an on-road or nonroad vehicle 
     that is propelled by an internal combustion engine or heat 
     engine using--
       (A) any combustible fuel;
       (B) an on-board, rechargeable storage device; and
       (C) a means of using an off-board source of electricity.
       (8) Plug-in hybrid fuel cell vehicle.--The term ``plug-in 
     hybrid fuel cell vehicle'' means a fuel cell vehicle with a 
     battery powered by an off-board source of electricity.
       (9) Industry alliance.--The term ``Industry Alliance'' 
     means the entity selected by the Secretary under subsection 
     (f)(2).
       (10) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 
     15801).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (c) Goals.--The goals of the electric drive transportation 
     technology program established under subsection (e) shall be 
     to develop, in partnership with industry and institutions of 
     higher education, projects that focus on--
       (1) innovative electric drive technology developed in the 
     United States;
       (2) growth of employment in the United States in electric 
     drive design and manufacturing;
       (3) validation of the plug-in hybrid potential through 
     fleet demonstrations; and
       (4) acceleration of fuel cell commercialization through 
     comprehensive development and commercialization of the 
     electric drive technology systems that are the foundational 
     technology of the fuel cell vehicle system.
       (d) Assessment.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall offer to enter 
     into an arrangement with the National Academy of Sciences--
       (1) to conduct an assessment (in cooperation with industry, 
     standards development organizations, and other entities, as 
     appropriate), of state-of-the-art battery technologies with 
     potential application for electric drive transportation;
       (2) to identify knowledge gaps in the scientific and 
     technological bases of battery manufacture and use;

[[Page 6118]]

       (3) to identify fundamental research areas that would 
     likely have a significant impact on the development of 
     superior battery technologies for electric drive vehicle 
     applications; and
       (4) to recommend steps to the Secretary to accelerate the 
     development of battery technologies for electric drive 
     transportation.
       (e) Program.--The Secretary shall conduct a program of 
     research, development, demonstration, and commercial 
     application for electric drive transportation technology, 
     including--
       (1) high-capacity, high-efficiency batteries;
       (2) high-efficiency on-board and off-board charging 
     components;
       (3) high-powered drive train systems for passenger and 
     commercial vehicles and for nonroad equipment;
       (4) control system development and power train development 
     and integration for plug-in hybrid electric vehicles, plug-in 
     hybrid fuel cell vehicles, and engine dominant hybrid 
     electric vehicles, including--
       (A) development of efficient cooling systems;
       (B) analysis and development of control systems that 
     minimize the emissions profile when clean diesel engines are 
     part of a plug-in hybrid drive system; and
       (C) development of different control systems that optimize 
     for different goals, including--
       (i) battery life;
       (ii) reduction of petroleum consumption; and
       (iii) green house gas reduction;
       (5) nanomaterial technology applied to both battery and 
     fuel cell systems;
       (6) large-scale demonstrations, testing, and evaluation of 
     plug-in hybrid electric vehicles in different applications 
     with different batteries and control systems, including--
       (A) military applications;
       (B) mass market passenger and light-duty truck 
     applications;
       (C) private fleet applications; and
       (D) medium- and heavy-duty applications;
       (7) a nationwide education strategy for electric drive 
     transportation technologies providing secondary and high 
     school teaching materials and support for education offered 
     by institutions of higher education that is focused on 
     electric drive system and component engineering;
       (8) development, in consultation with the Administrator of 
     the Environmental Protection Agency, of procedures for 
     testing and certification of criteria pollutants, fuel 
     economy, and petroleum use for light-, me-
     dium-, and heavy-duty vehicle applications, including 
     consideration of--
       (A) the vehicle and fuel as a system, not just an engine; 
     and
       (B) nightly off-board charging; and
       (9) advancement of battery and corded electric 
     transportation technologies in mobile source applications 
     by--
       (A) improvement in battery, drive train, and control system 
     technologies; and
       (B) working with industry and the Administrator of the 
     Environmental Protection Agency--
       (i) to understand and inventory markets; and
       (ii) to identify and implement methods of removing barriers 
     for existing and emerging applications.
       (f) Advanced Battery Initiative.--
       (1) In general.--The Secretary shall establish and carry 
     out an Advanced Battery Initiative in accordance with this 
     subsection to support research, development, demonstration, 
     and commercial application of battery technologies.
       (2) Industry alliance.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary shall 
     competitively select an Industry Alliance to represent 
     participants who are private, for-profit firms, the primary 
     business of which is the manufacturing of batteries.
       (3) Research.--
       (A) Grants.--The Secretary shall carry out research 
     activities of the Initiative through competitively-awarded 
     grants to--
       (i) researchers, including Industry Alliance participants;
       (ii) small businesses;
       (iii) National Laboratories; and
       (iv) institutions of higher education.
       (B) Industry alliance.--The Secretary shall annually 
     solicit from the Industry Alliance--
       (i) comments to identify advanced battery technology needs 
     relevant to electric drive technology;
       (ii) an assessment of the progress of research activities 
     of the Initiative; and
       (iii) assistance in annually updating advanced battery 
     technology roadmaps.
       (4) Availability to the public.--The information and 
     roadmaps developed under this subsection shall be available 
     to the public.
       (5) Preference.--In making awards under this subsection, 
     the Secretary shall give preference to participants in the 
     Industry Alliance.
       (g) Cost Sharing.--In carrying out this section, the 
     Secretary shall require cost sharing in accordance with 
     section 988 of the Energy Policy Act of 2005 (42 U.S.C. 
     16352).
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $300,000,000 for 
     each of fiscal years 2007 through 2012.

                Subtitle F--Strategic Petroleum Reserve

     SEC. 8601. STRATEGIC PETROLEUM RESERVE.

       (a) Findings.--The Senate finds that--
       (1) the Strategic Petroleum Reserve, as established by the 
     Energy Policy and Conservation Act (42 U.S.C. 6201 et seq.), 
     provides the United States with an emergency crude oil supply 
     reserve that ensures that a disruption in commercial oil 
     supplies will not threaten the United States economy;
       (2) the Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.) 
     strengthened the Strategic Petroleum Reserve by authorizing a 
     capacity of 1,000,000,000 barrels of crude oil;
       (3) as of the date of enactment of this Act, the inventory 
     in the Strategic Petroleum Reserve is sufficiently large 
     enough to guard against supply disruptions during the time 
     period for the temporary cessation of deposits described in 
     subsection (b)(1); and
       (4) the cessation of deposits to the Strategic Petroleum 
     Reserve will add approximately 2,000,000 barrels of crude oil 
     supply into the market.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) consistent with the authority granted under the Energy 
     Policy and Conservation Act (42 U.S.C. 6201 et seq.), the 
     Secretary of Energy should cease deposits to the Strategic 
     Petroleum Reserve for a period of not less than 6 months;
       (2) the Secretary of Energy should continue to work toward 
     establishing the infrastructure necessary to achieve the 
     1,000,0000,0000 barrels of crude oil capacity authorized 
     under the Energy Policy Act of 2005 (42 U.S.C. 15801 et 
     seq.); and
       (3) after the temporary cessation of deposits to the 
     Strategic Petroleum Reserve, the Secretary of Energy should 
     continue to increase the inventory of crude oil in the 
     Strategic Petroleum Reserve to work toward meeting the 
     authorized capacity level to enhance the energy security of 
     the United States.

            Subtitle G--Arctic Coastal Plain Domestic Energy

     SEC. 8701. SHORT TITLE.

       This subtitle may be cited as the ``Arctic Coastal Plain 
     Domestic Energy Security Act of 2006''.

     SEC. 8702. DEFINITIONS.

       In this subtitle:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as such in the map entitled ``Arctic National 
     Wildlife Refuge'', dated August 1980, as referenced in 
     section 1002(b) of the Alaska National Interest Lands 
     Conservation Act of 1980 (16 U.S.C. 3142(b)(1)), comprising 
     approximately 1,549,000 acres, and as described in appendix I 
     to part 37 of title 50, Code of Federal Regulations.
       (2) Secretary.--The term ``Secretary'', except as otherwise 
     provided, means the Secretary of the Interior or the 
     Secretary's designee.

     SEC. 8703. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL 
                   PLAIN.

       (a) In General.--The Secretary shall take such actions as 
     are necessary--
       (1) to establish and implement in accordance with this Act 
     a competitive oil and gas leasing program under the Mineral 
     Leasing Act (30 U.S.C. 181 et seq.) that will result in an 
     environmentally sound program for the exploration, 
     development, and production of the oil and gas resources of 
     the Coastal Plain; and
       (2) to administer the provisions of this subtitle through 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, and other provisions that ensure 
     the oil and gas exploration, development, and production 
     activities on the Coastal Plain will result in no significant 
     adverse effect on fish and wildlife, their habitat, 
     subsistence resources, and the environment, and including, in 
     furtherance of this goal, by requiring the application of the 
     best commercially available technology for oil and gas 
     exploration, development, and production to all exploration, 
     development, and production operations under this subtitle in 
     a manner that ensures the receipt of fair market value by the 
     public for the mineral resources to be leased.
       (b) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966, the oil and gas 
     leasing program and activities authorized by this section in 
     the Coastal Plain are deemed to be compatible with the 
     purposes for which the Arctic National Wildlife Refuge was 
     established, and that no further findings or decisions are 
     required to implement this determination.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain prepared pursuant to section 1002 of the 
     Alaska National Interest Lands Conservation Act of 1980 (16 
     U.S.C. 3142) and section 102(2)(C) of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
     deemed to satisfy the requirements under the National 
     Environmental Policy Act of 1969 that apply with respect to

[[Page 6119]]

     actions authorized to be taken by the Secretary to develop 
     and promulgate the regulations for the establishment of a 
     leasing program authorized by this subtitle before the 
     conduct of the first lease sale.
       (3) Compliance with nepa for other actions.--Before 
     conducting the first lease sale under this subtitle, the 
     Secretary shall prepare an environmental impact statement 
     under the National Environmental Policy Act of 1969 with 
     respect to the actions authorized by this subtitle that are 
     not referred to in paragraph (2). Notwithstanding any other 
     law, the Secretary is not required to identify nonleasing 
     alternative courses of action or to analyze the environmental 
     effects of such courses of action. The Secretary shall only 
     identify a preferred action for such leasing and a single 
     leasing alternative, and analyze the environmental effects 
     and potential mitigation measures for those two alternatives. 
     The identification of the preferred action and related 
     analysis for the first lease sale under this subtitle shall 
     be completed within 18 months after the date of the enactment 
     of this Act. The Secretary shall only consider public 
     comments that specifically address the Secretary's preferred 
     action and that are filed within 20 days after publication of 
     an environmental analysis. Notwithstanding any other law, 
     compliance with this paragraph is deemed to satisfy all 
     requirements for the analysis and consideration of the 
     environmental effects of proposed leasing under this 
     subtitle.
       (d) Relationship to State and Local Authority.--Nothing in 
     this subtitle shall be considered to expand or limit State 
     and local regulatory authority.
       (e) Special Areas.--
       (1) In general.--The Secretary, after consultation with the 
     State of Alaska, the city of Kaktovik, and the North Slope 
     Borough, may designate up to a total of 45,000 acres of the 
     Coastal Plain as a Special Area if the Secretary determines 
     that the Special Area is of such unique character and 
     interest so as to require special management and regulatory 
     protection. The Secretary shall designate as such a Special 
     Area the Sadlerochit Spring area, comprising approximately 
     4,000 acres as depicted on such map as shall be identified by 
     the Secretary.
       (2) Management.--Each such Special Area shall be managed so 
     as to protect and preserve the area's unique and diverse 
     character including its fish, wildlife, and subsistence 
     resource values.
       (3) Exclusion from leasing or surface occupancy.--The 
     Secretary may exclude any Special Area from leasing. If the 
     Secretary leases a Special Area, or any part thereof, for 
     purposes of oil and gas exploration, development, production, 
     and related activities, there shall be no surface occupancy 
     of the lands comprising the Special Area.
       (4) Directional drilling.--Notwithstanding the other 
     provisions of this subsection, the Secretary may lease all or 
     a portion of a Special Area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the area.
       (f) Limitation on Closed Areas.--The Secretary's sole 
     authority to close lands within the Coastal Plain to oil and 
     gas leasing and to exploration, development, and production 
     is that set forth in this subtitle.
       (g) Regulations.--
       (1) In general.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out this subtitle, 
     including rules and regulations relating to protection of the 
     fish and wildlife, their habitat, subsistence resources, and 
     environment of the Coastal Plain, by no later than 15 months 
     after the date of the enactment of this Act.
       (2) Revision of regulations.--The Secretary shall 
     periodically review and, if appropriate, revise the rules and 
     regulations issued under subsection (a) to reflect any 
     significant biological, environmental, or engineering data 
     that come to the Secretary's attention.

     SEC. 8704. LEASE SALES.

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

     SEC. 8705. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--The Secretary may grant to the highest 
     responsible qualified bidder in a lease sale conducted 
     pursuant to section 8704 any lands to be leased on the 
     Coastal Plain upon payment by the lessee of such bonus as may 
     be accepted by the Secretary.
       (b) Subsequent Transfers.--No lease issued under this 
     subtitle may be sold, exchanged, assigned, sublet, or 
     otherwise transferred except with the approval of the 
     Secretary. Prior to any such approval the Secretary shall 
     consult with, and give due consideration to the views of, the 
     Attorney General.

     SEC. 8706. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this subtitle shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent in amount or value of the production removed 
     or sold from the lease, as determined by the Secretary under 
     the regulations applicable to other Federal oil and gas 
     leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, portions of the Coastal Plain to exploratory drilling 
     activities as necessary to protect caribou calving areas and 
     other species of fish and wildlife;
       (3) require that the lessee of lands within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of lands within the Coastal Plain and any other 
     Federal lands that are adversely affected in connection with 
     exploration, development, production, or transportation 
     activities conducted under the lease and within the Coastal 
     Plain by the lessee or by any of the subcontractors or agents 
     of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, the reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for lands 
     required to be reclaimed under this subtitle shall be, as 
     nearly as practicable, a condition capable of supporting the 
     uses which the lands were capable of supporting prior to any 
     exploration, development, or production activities, or upon 
     application by the lessee, to a higher or better use as 
     approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, their habitat, and the environment as 
     required pursuant to section 8703(a)(2);
       (7) provide that the lessee, its agents, and its 
     contractors use best efforts to provide a fair share, as 
     determined by the level of obligation previously agreed to in 
     the 1974 agreement implementing section 29 of the Federal 
     Agreement and Grant of Right of Way for the Operation of the 
     Trans-Alaska Pipeline, of employment and contracting for 
     Alaska Natives and Alaska Native Corporations from throughout 
     the State;
       (8) prohibit the export of oil produced under the lease; 
     and
       (9) contain such other provisions as the Secretary 
     determines necessary to ensure compliance with the provisions 
     of this subtitle and the regulations issued under this 
     subtitle.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this subtitle and in 
     recognizing the Government's proprietary interest in labor 
     stability and in the ability of construction labor and 
     management to meet the particular needs and conditions of 
     projects to be developed under the leases issued pursuant to 
     this subtitle and the special concerns of the parties to such 
     leases, shall require that the lessee and its agents and 
     contractors negotiate to obtain a project labor agreement for 
     the employment of laborers and mechanics on production, 
     maintenance, and construction under the lease.

     SEC. 8707. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard to Govern 
     Authorized Coastal Plain Activities.--The Secretary shall, 
     consistent with the requirements of section 8703, administer 
     the provisions of this subtitle through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (1) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, and the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum amount of surface acreage 
     covered by production and support facilities, including 
     airstrips and any areas covered by gravel berms or piers for 
     support of pipelines, does not exceed 2,000 acres on the 
     Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall also require, with respect to any proposed drilling and 
     related activities, that--
       (1) a site-specific analysis be made of the probable 
     effects, if any, that the drilling or

[[Page 6120]]

     related activities will have on fish and wildlife, their 
     habitat, and the environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the extent practicable) any significant 
     adverse effect identified under paragraph (1); and
       (3) the development of the plan shall occur after 
     consultation with the agency or agencies having jurisdiction 
     over matters mitigated by the plan.
       (c) Regulations to Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this subtitle, 
     the Secretary shall prepare and promulgate regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other measures designed to ensure that the activities 
     undertaken on the Coastal Plain under this subtitle are 
     conducted in a manner consistent with the purposes and 
     environmental requirements of this subtitle.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this subtitle 
     shall require compliance with all applicable provisions of 
     Federal and State environmental law and shall also require 
     the following:
       (1) Standards at least as effective as the safety and 
     environmental mitigation measures set forth in items 1 
     through 29 at pages 167 through 169 of the ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain.
       (2) Seasonal limitations on exploration, development, and 
     related activities, where necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration.
       (3) That exploration activities, except for surface 
     geological studies, be limited to the period between 
     approximately November 1 and May 1 each year and that 
     exploration activities shall be supported by ice roads, 
     winter trails with adequate snow cover, ice pads, ice 
     airstrips, and air transport methods, except that such 
     exploration activities may occur at other times, if the 
     Secretary finds that such exploration will have no 
     significant adverse effect on the fish and wildlife, their 
     habitat, and the environment of the Coastal Plain.
       (4) Design safety and construction standards for all 
     pipelines and any access and service roads, that--
       (A) minimize, to the maximum extent possible, adverse 
     effects upon the passage of migratory species such as 
     caribou; and
       (B) minimize adverse effects upon the flow of surface water 
     by requiring the use of culverts, bridges, and other 
     structural devices.
       (5) Prohibitions on public access and use on all pipeline 
     access and service roads.
       (6) Stringent reclamation and rehabilitation requirements, 
     consistent with the standards set forth in this subtitle, 
     requiring the removal from the Coastal Plain of all oil and 
     gas development and production facilities, structures, and 
     equipment upon completion of oil and gas production 
     operations, except that the Secretary may exempt from the 
     requirements of this paragraph those facilities, structures, 
     or equipment that the Secretary determines would assist in 
     the management of the Arctic National Wildlife Refuge and 
     that are donated to the United States for that purpose.
       (7) Appropriate prohibitions or restrictions on access by 
     all modes of transportation.
       (8) Appropriate prohibitions or restrictions on sand and 
     gravel extraction.
       (9) Consolidation of facility siting.
       (10) Appropriate prohibitions or restrictions on use of 
     explosives.
       (11) Avoidance, to the extent practicable, of springs, 
     streams, and river system; the protection of natural surface 
     drainage patterns, wetlands, and riparian habitats; and the 
     regulation of methods or techniques for developing or 
     transporting adequate supplies of water for exploratory 
     drilling.
       (12) Avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife.
       (13) Treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including an annual waste management 
     report, a hazardous materials tracking system, and a 
     prohibition on chlorinated solvents, in accordance with 
     applicable Federal and State environmental law.
       (14) Fuel storage and oil spill contingency planning.
       (15) Research, monitoring, and reporting requirements.
       (16) Field crew environmental briefings.
       (17) Avoidance of significant adverse effects upon 
     subsistence hunting, fishing, and trapping by subsistence 
     users.
       (18) Compliance with applicable air and water quality 
     standards.
       (19) Appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited.
       (20) Reasonable stipulations for protection of cultural and 
     archeological resources.
       (21) All other protective environmental stipulations, 
     restrictions, terms, and conditions deemed necessary by the 
     Secretary.
       (e) Considerations.--In preparing and promulgating 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, and stipulations under this section, the 
     Secretary shall consider the following:
       (1) The stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement.
       (2) The environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 to 37.33 of title 50, Code of Federal 
     Regulations.
       (3) The land use stipulations for exploratory drilling on 
     the KIC-ASRC private lands that are set forth in Appendix 2 
     of the August 9, 1983, agreement between Arctic Slope 
     Regional Corporation and the United States.
       (f) Facility Consolidation Planning.--
       (1) In general.--The Secretary shall, after providing for 
     public notice and comment, prepare and update periodically a 
     plan to govern, guide, and direct the siting and construction 
     of facilities for the exploration, development, production, 
     and transportation of Coastal Plain oil and gas resources.
       (2) Objectives.--The plan shall have the following 
     objectives:
       (A) Avoiding unnecessary duplication of facilities and 
     activities.
       (B) Encouraging consolidation of common facilities and 
     activities.
       (C) Locating or confining facilities and activities to 
     areas that will minimize impact on fish and wildlife, their 
     habitat, and the environment.
       (D) Utilizing existing facilities wherever practicable.
       (E) Enhancing compatibility between wildlife values and 
     development activities.
       (g) Access to Public Lands.--The Secretary shall--
       (1) manage public lands in the Coastal Plain subject to 
     section subsections (a) and (b) of section 811 of the Alaska 
     National Interest Lands Conservation Act (16 U.S.C. 3121); 
     and
       (2) ensure that local residents shall have reasonable 
     access to public lands in the Coastal Plain for traditional 
     uses.

     SEC. 8708. EXPEDITED JUDICIAL REVIEW.

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

     SEC. 8709. 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 oil and gas leasing and operations authorized 
     under this subtitle--
       (1) 50 percent shall be paid to the State of Alaska; and
       (2) except as provided in section 712(d), the balance shall 
     be deposited into the Treasury as miscellaneous receipts.
       (b) Payments to Alaska.--Payments to the State of Alaska 
     under this section shall be made semiannually.
       (c) Use of Bonus Payments for Low-Income Home Energy 
     Assistance.--Amounts that are received by the United States 
     as bonuses for leases under this subtitle and deposited into 
     the Treasury under subsection (a)(2) may be appropriated to 
     the Secretary of the Health and Human Services, in addition 
     to amounts otherwise available, to provide assistance under 
     the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8621 et seq.).

     SEC. 8710. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

       (a) Exemption.--Title XI of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall 
     not apply to

[[Page 6121]]

     the issuance by the Secretary under section 28 of the Mineral 
     Leasing Act (30 U.S.C. 185) of rights-of-way and easements 
     across the Coastal Plain for the transportation of oil and 
     gas.
       (b) Terms and Conditions.--The Secretary shall include in 
     any right-of-way or easement referred to in 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 8703(g) provisions granting rights-
     of-way and easements described in subsection (a) of this 
     section.

     SEC. 8711. CONVEYANCE.

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

     SEC. 8712. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

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

                          ____________________