[Congressional Record (Bound Edition), Volume 154 (2008), Part 12]
[House]
[Pages 16934-16955]
[From the U.S. Government Publishing Office, www.gpo.gov]




                               AMENDMENTS

  Under clause 8 of rule XVIII, proposed amendments were submitted as 
follows:

                               H.R. 6599

                         Offered By: Mr. Buyer

       Amendment No. 1: Page 34, line 21, after the dollar amount 
     insert ``(increased by $150,000,000)''.
       Page 38, line 23, after the dollar amount insert ``(reduced 
     by $150,000,000)''.
       Page 40, line 9, after the dollar amount insert ``reduced 
     by $150,000,000)''.

                               H.R. 6599

                         Offered By: Mr. Buyer

       Amendment No. 2: Page 34, line 21, after the dollar amount 
     insert ``(increased by $7,000,000)''.
       Page 38, line 23, after the dollar amount insert ``(reduced 
     by $7,000,000)''.
       Page 40, line 9, after the dollar amount insert ``reduced 
     by $7,000,000)''.

                               H.R. 6599

                      Offered By: Mr. King of Iowa

       Amendment No. 3: Insert after section 407 the following:
       Sec. 408. None of the funds made available in this Act may 
     be used to enforce subchapter IV of Chapter 31 of title 40, 
     United States Code (commonly referred to as the Davis-Bacon 
     Act).

                               H.R. 6599

                         Offered By: Mr. Flake

       Amendment No. 4: At the end of the bill (before the short 
     title), insert the following:
       Sec. __. (a) Elimination of Military Construction 
     Congressional Earmarks.--None of the funds provided in this 
     Act shall be available from the following Department of 
     Defense military construction accounts for the following 
     projects, and the amount otherwise provided in this Act for 
     each such account is hereby reduced by the sum of the amounts 
     specified for such projects from such account:

----------------------------------------------------------------------------------------------------------------
                                                                                                      Amount (in
             Account                       State               Location            Project Title      thousands)
----------------------------------------------------------------------------------------------------------------
Army.............................  Alabama.............  Anniston Army Depot.  Lake Yard Railroad         $1,400
                                                                                Interchange.
Army.............................  Alabama.............  Fort Rucker.........  Chapel Center.......       $6,800
Air Force........................  Arizona.............  Luke AFB............  Repair Runway              $1,755
                                                                                Pavement.
Army.............................  Arizona.............  Fort Huachuca.......  ATC Radar Operations       $2,000
                                                                                Building.
Army NG..........................  Arkansas............  Cabot...............  Readiness Center....      $10,868
Air NG...........................  Arkansas............  Little Rock AFB.....  Replace Engine Shop.       $4,000
Navy.............................  California..........  Monterey............  Education Facility..       $9,990
Air Force........................  California..........  Edwards AFB.........  Main Base Runway Ph        $6,000
                                                                                4.
Navy.............................  California..........  North Island........  Training Pool              $6,890
                                                                                Replacement.
Navy.............................  California..........  Twentynine Palms....  Lifelong Learning          $9,760
                                                                                Center Ph 1.
Air NG...........................  Connecticut.........  Bradley IAP.........  TFI Upgrade Engine         $7,200
                                                                                Shop.
Air Force........................  Florida.............  Tyndall AFB.........  325 ACS Ops Training      $11,600
                                                                                Complex.
Army NG..........................  Florida.............  Camp Blanding.......  Regional Training         $20,907
                                                                                Institute Ph 4.
Air Force........................  Florida.............  MacDill AFB.........  Combat Training            $5,000
                                                                                Facility.
Navy.............................  Florida.............  Mayport.............  Aircraft Refueling..       $3,380
Air NG...........................  Georgia.............  Savannah CRTC.......  Troop Training             $7,500
                                                                                Quarters.

[[Page 16935]]

 
Navy.............................  Georgia.............  Kings Bay...........  Add to Limited Area        $6,130
                                                                                Reaction Force
                                                                                Facility.
Air Force........................  Georgia.............  Robins AFB..........  Avionics Facility...       $5,250
Army.............................  Hawaii..............  Pohakuloa TA........  Access Road, Ph 1...       $9,000
Air NG...........................  Illinois............  Greater Peoria RAP..  C-130 Squadron               $400
                                                                                Operations Center.
Army NG..........................  Indiana.............  Muscatatuck.........  Combined Arms              $6,000
                                                                                Collective Training
                                                                                Facility Ph 1.
Air NG...........................  Indiana.............  Fort Wayne IAP......  Aircraft Ready             $5,600
                                                                                Shelters/Fuel Fill
                                                                                Stands.
Army NG..........................  Iowa................  Camp Dodge..........  MOUT Site Add/Alt...       $1,500
Army NG..........................  Iowa................  Davenport...........  Readiness Center Add/      $1,550
                                                                                Alt.
Air NG...........................  Iowa................  Fort Dodge..........  Vehicle Maintenance        $5,600
                                                                                & Comm. Training
                                                                                Complex.
Army NG..........................  Iowa................  Mount Pleasant......  Readiness Center Add/      $1,500
                                                                                Alt.
Army.............................  Kansas..............  Fort Leavenworth....  Chapel Complex Ph 2.       $4,200
Army.............................  Kansas..............  Fort Riley..........  Fire Station........       $3,000
Air Force........................  Kansas..............  McConnell AFB.......  MXG Consolidation &        $6,800
                                                                                Forward Logistics
                                                                                Center Ph 2.
Army NG..........................  Kentucky............  London..............  Aviation Operations        $7,191
                                                                                Facility Ph III.
Navy.............................  Maine...............  Portsmouth NSY......  Dry Dock 3                 $1,450
                                                                                Waterfront Support
                                                                                Facility.
Navy.............................  Maine...............  Portsmouth NSY......  Consolidated Global        $9,980
                                                                                Sub Component Ph 1.
Navy.............................  Maryland............  Carderock...........  RDTE Support               $6,980
                                                                                Facility Ph 1.
Army NG..........................  Maryland............  Dundalk.............  Readiness Center....         $579
Navy.............................  Maryland............  Indian Head.........  Energetics Systems &      $12,050
                                                                                Tech Lab Complex Ph
                                                                                1.
Air NG...........................  Maryland............  Martin State Airport  Replace Fire Station       $7,900
Air NG...........................  Massachusetts.......  Otis ANGB...........  TFI Digital Ground         $1,700
                                                                                Station FOC Beddown.
Air Reserve......................  Massachusetts.......  Westover ARB........  Joint Service                $943
                                                                                Lodging Facility.
Army NG..........................  Michigan............  Camp Grayling.......  Live Fire Shoot            $2,000
                                                                                House.
Army NG..........................  Michigan............  Camp Grayling.......  Urban Assault Course       $2,000
Army NG..........................  Minnesota...........  Arden Hills.........  Infrastructure             $1,005
                                                                                Improvements.
Air NG...........................  Minnesota...........  Duluth..............  Replace Fuel Cell          $4,500
                                                                                Hangar.
Air NG...........................  Minnesota...........  Minneapolis-St. Paul  Aircraft Deicing           $1,500
                                                          IAP.                  Apron.
Navy.............................  Mississippi.........  Gulfport............  Battalion                  $5,870
                                                                                Maintenance
                                                                                Facility.
Army.............................  Missouri............  Fort Leonard Wood...  Vehicle Maintenance        $9,500
                                                                                Shop.
Air Force........................  Missouri............  Whiteman AFB........  Security Forces            $4,200
                                                                                Animal Clinic.
Army.............................  Missouri............  Fort Leonard Wood...  Chapel Complex......       $3,500
Air NG...........................  New Jersey..........  Atlantic City IAP...  Operations and             $8,400
                                                                                Training Facility.
Air Force........................  New Jersey..........  McGuire AFB.........  Security Forces            $7,200
                                                                                Operations Facility
                                                                                Ph 1.
Army.............................  New Jersey..........  Picatinny Arsenal...  Ballistic Evaluation       $9,900
                                                                                Facility Ph 1.
Air Force........................  New Mexico..........  Cannon AFB..........  CV-22 Flight               $8,300
                                                                                Simulator Facility.
Air NG...........................  New York............  Gabreski Airport....  Replace Pararescue         $7,500
                                                                                Ops Facility Ph 2.
Army.............................  New York............  Fort Drum...........  Replace Fire Station       $6,900
Air Reserve......................  New York............  Niagara Falls ARS...  Dining Facility/           $9,000
                                                                                Community Center.
Air NG...........................  New York............  Hancock Field.......  Upgrade ASOS               $5,400
                                                                                Facilities.
Army.............................  North Carolina......  Fort Bragg..........  Access Roads Ph 1          $8,600
                                                                                (Additional Funds).
Army NG..........................  North Carolina......  Camp Butner.........  Training Complex....       $1,376
Army.............................  North Carolina......  Fort Bragg..........  Mass Casualty              $1,300
                                                                                Facility.
Army.............................  North Carolina......  Fort Bragg..........  Chapel..............      $11,600
Army NG..........................  Ohio................  Camp Perry..........  Barracks............       $2,000
Army NG..........................  Ohio................  Ravenna.............  Barracks............       $2,000
Air NG...........................  Ohio................  Springfield ANGB....  Combat                    $12,800
                                                                                Communications
                                                                                Training Complex.
Air Force........................  Ohio................  Wright-Patterson AFB  Security Forces           $14,000
                                                                                Operations Facility.
Army.............................  Oklahoma............  McAlester AAP.......  AP3 Connecting Rail.       $5,800
Air Force........................  Oklahoma............  Tinker AFB..........  Realign Air Depot          $5,400
                                                                                Street.
Army NG..........................  Pennsylvania........  Honesdale...........  Readiness Center Add/      $6,117
                                                                                Alt.
Army NG..........................  Pennsylvania........  Honesdale...........  Readiness Center Add/        $504
                                                                                Alt.
Army NG..........................  Pennsylvania........  Pittsburgh..........  Combined Support           $3,250
                                                                                Maintenance Shop.
Army.............................  Pennsylvania........  Letterkenny Depot...  Upgrade Munition           $7,500
                                                                                Igloos Phase 2.
Navy.............................  Rhode Island........  Newport.............  Unmanned ASW Support       $9,900
                                                                                Facility.
Air NG...........................  Rhode Island........  Quonset State         Replace Control              $600
                                                          Airport.              Tower.

[[Page 16936]]

 
Army NG..........................  South Carolina......  Hemingway...........  Field Maintenance          $4,600
                                                                                Shop Ph 1.
Army NG..........................  South Carolina......  Sumter..............  Readiness Center....         $382
Air Force........................  South Carolina......  Shaw AFB............  Physical Fitness           $9,900
                                                                                Center.
Air NG...........................  South Dakota........  Joe Foss Field......  Aircraft Ready             $4,500
                                                                                Shelters/AMU.
Army NG..........................  Tennessee...........  Tullahoma...........  Readiness Center....      $10,372
Army Reserve.....................  Texas...............  Bryan...............  Army Reserve Center.         $920
Army.............................  Texas...............  Camp Bullis.........  Live Fire Shoot            $4,200
                                                                                House.
Air NG...........................  Texas...............  Ellington Field.....  ASOS Facility.......       $7,600
Army.............................  Texas...............  Fort Hood...........  Chapel with               $17,500
                                                                                Education Center.
Air Force........................  Texas...............  Lackland AFB........  Security Forces              $900
                                                                                Building Ph 1.
Air Force........................  Texas...............  Laughlin AFB........  Student Officer            $1,440
                                                                                Quarters Ph 2.
Air Force........................  Texas...............  Randolph AFB........  Fire and Rescue              $972
                                                                                Station.
Navy.............................  Texas...............  Corpus Christi......  Parking Apron              $3,500
                                                                                Recapitalization Ph
                                                                                1.
Army.............................  Texas...............  Fort Bliss..........  Medical Parking           $12,500
                                                                                Garage Ph 1.
Air NG...........................  Texas...............  Fort Worth NAS JRB..  Security Forces            $5,000
                                                                                Training Facility.
Navy.............................  Texas...............  Kingsville..........  Fitness Center......      $11,580
Air Force........................  Utah................  Hill AFB............  Three-Bay Fire             $5,400
                                                                                Station.
Army NG..........................  Vermont.............  Ethan Allen Range...  Readiness Center....         $323
Army NG..........................  Virginia............  Fort Belvoir........  Readiness Center and       $1,085
                                                                                NGB Conference
                                                                                Center.
Army.............................  Virginia............  Fort Myer...........  Hatfield Gate                $300
                                                                                Expansion.
Army.............................  Virginia............  Fort Eustis.........  Vehicle Paint              $3,900
                                                                                Facility.
Navy.............................  Virginia............  Norfolk NS..........  Fire and Emergency         $9,960
                                                                                Services Station.
Navy.............................  Virginia............  Norfolk NSY.........  Industrial Access          $9,990
                                                                                Improvements, Main
                                                                                Gate 15.
Navy.............................  Virginia............  Quantico............  OCS Headquarters           $5,980
                                                                                Facility.
Navy.............................  Washington..........  Kitsap NB...........  Saltwater Cooling &        $5,110
                                                                                Fire Protection
                                                                                Improvements.
Air NG...........................  Washington..........  McChord AFB.........  262 Info Warfare           $8,600
                                                                                Aggressor Squadron
                                                                                Facility.
Navy.............................  Washington..........  Whidbey Island......  Firefighting               $6,160
                                                                                Facility.
Army NG..........................  West Virginia.......  Camp Dawson.........  Shoot House.........       $2,000
Army NG..........................  West Virginia.......  Camp Dawson.........  Access Control Point       $2,000
Army NG..........................  West Virginia.......  Camp Dawson.........  Multi-Purpose              $5,000
                                                                                Building Ph 2.
Air Force........................  Guam................  Andersen AFB........  ISR/STF Realign Arc        $5,400
                                                                                Light Boulevard.
----------------------------------------------------------------------------------------------------------------

       (b) Elimination of VA Congressional Earmark.--None of the 
     funds provided in this Act shall be available from the 
     following Department of Veterans Affairs account for the 
     following project, and the amount otherwise provided in this 
     Act for such account is hereby reduced by the amount 
     specified for such project from such account:

----------------------------------------------------------------------------------------------------------------
                                                                                                      Amount (in
             Account                       State               Location            Project Title      thousands)
----------------------------------------------------------------------------------------------------------------
Major Construction...............  Kentucky............  Louisville..........  Site Acquisition and      $45,000
                                                                                Prep.
----------------------------------------------------------------------------------------------------------------

                               H.R. 6599

                       Offered By: Mr. Hensarling

       Amendment No. 5: At the end of the bill (before the short 
     title), add the following new section:
       Sec. 408.  None of the funds provided by this Act shall be 
     available to enforce section 526 of the Energy Independence 
     and Security Act of 2007 (Public Law 110-140; 42 U.S.C. 
     17142).

                               H.R. 6599

                    Offered By: Mr. McCaul of Texas

       Amendment No. 6: At the end of the bill (before the short 
     title), insert the following:
       Sec. _____.  None of the funds made available in this Act 
     may be used for a project or program named for an individual 
     then serving as a Member, Delegate, Resident Commissioner, or 
     Senator of the United States Congress.

                               H.R. 6599

                        Offered By: Mr. Burgess

       Amendment No. 7: Page 3, line 8, insert before the period 
     the following: ``Provided further, That of the amount 
     appropriated in this paragraph, $100,000,000 shall be 
     available for the design and construction of one petroleum 
     refinery for the Army''.
       Page 4, line 4, insert before the period the following: 
     ``Provided further, That of the amount appropriated in this 
     paragraph, $200,000,000 shall be available for the design and 
     construction of one petroleum refinery each for the Navy and 
     Marine Corps''.
       Page 5, line 7, insert before the period the following: 
     ``Provided further, That of the amount appropriated in this 
     paragraph, $100,000,000 shall be available for the design and 
     construction of one petroleum refinery for the Air Force''.
       Page 15, line 17, insert after the dollar amount ``(reduced 
     by $400,000,000)''.

                               H.R. 6599

                         Offered By: Mr. Terry

       Amendment No. 8: At the end of title II (page 51, after 
     line 11), insert the following:


                   establishment of national cemetery

       Sec. 226.  (a) In General.--The Secretary of Veterans 
     Affairs shall establish, in accordance with chapter 24 of 
     title 38, United States Code, a national cemetery in the 
     Sarpy County region to serve the needs of veterans and their 
     families.
       (b) Consultation in Selection of Site.--Before selecting 
     the site for the national cemetery established under 
     subsection (a), the Secretary shall consult with--
       (1) appropriate officials of the State of Nebraska and 
     local officials in the Sarpy County region; and
       (2) appropriate officials of the United States, including 
     the Administrator of General Services, with respect to land 
     belonging to the United States in that area that would be 
     suitable to establish the national cemetery under subsection 
     (a).
       (c) Authority To Accept Donation of Parcel of Land.--
       (1) In general.--The Secretary of Veterans Affairs may 
     accept on behalf of the United States the gift of an 
     appropriate parcel of real property. The Secretary shall have 
     administrative jurisdiction over such parcel of real 
     property, and shall use such parcel to establish the national 
     cemetery under subsection (a).
       (2) Income tax treatment of gift.--For purposes of Federal 
     income, estate, and gift taxes, the real property accepted 
     under paragraph (1) shall be considered as a gift to the 
     United States.
       (d) Report.--As soon as practicable after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the establishment of the national cemetery under 
     subsection (a). The report shall

[[Page 16937]]

     set forth a schedule for such establishment and an estimate 
     of the costs associated with such establishment.
       (e) Sarpy County Region Defined.--In this section, the term 
     ``Sarpy County region'' means the geographic area consisting 
     of the following Nebraska counties: Knox, Antelope, Boone, 
     Nance, Merrick, Hamilton, Clay, Nuckolls, Thayer, Fillmore, 
     York, Polk, Platte, Madison, Pierce, Cedar, Wayne, Stanton, 
     Colfax, Butler, Seward, Saline, Jefferson, Gage, Lancaster, 
     Saunders, Dodge, Cuming, Thurston, Dixon, Dakota, Burt, 
     Washington, Douglas, Sarpy, Cass, Otoe, Johnson, Nemaha, 
     Pawnee, Richardson, and the following counties in Iowa; Lyon, 
     Sioux, Plymouth, Woodbury, Monona, Harrison, Pottawatomie, 
     Mills, Fremont, Osceola, Dickinson, O"Brien, Clay, Cherokee, 
     Buena Vista, Ida, Sac, Crawford, Carroll, Shelby, Audubon, 
     Guthrie, Cass, Adair, Montgomery, Adams, Union, Page, Taylor, 
     and Ringgold.

                               H.R. 6599

                  Offered By: Ms. Jackson-Lee of Texas

       Amendment No. 9: At the end of title II (page 51, after 
     line 11), insert the following new section:
       Sec. 226. (a) The Secretary of Veterans Affairs shall 
     increase the number of medical centers specializing in post-
     traumatic stress disorder in underserved urban areas, which 
     shall include using the services of existing health care 
     entities, pursuant to the authority in section 1703 of title 
     38, United States Code.
       (b) At least one of the existing health care institutions 
     used by the Secretary pursuant to subsection (a) shall be--
       (1) located in an area defined as a HUBzone (as that term 
     is defined in section 3(p) of the Small Business Act (15 
     U.S.C. 632(p)) on the basis of one or more qualified census 
     tracts;
       (2) located within a State that has sustained more than 
     five percent of the total casualties suffered by the United 
     States Armed Forces in Operation Enduring Freedom and 
     Operation Iraqi Freedom; and
       (3) have at least 7 years experience and significant 
     expertise in providing treatment and counseling services with 
     respect to substance abuse, alcohol addiction, and 
     psychiatric or stress-related disorders to populations with 
     special needs, including veterans and members of the Armed 
     Forces serving on active duty.

                               H.R. 6599

                 Offered By: Mr. Murphy of Connecticut

       Amendment No. 10: At the end of the bill (before the short 
     title), insert the following:
       Sec. 408.  None of the funds made available in this Act may 
     be used to obstruct nonpartisan voter registration drives at 
     Department of Veterans Affairs facilities or to prohibit 
     nonpartisan organizations from providing voter registration 
     information and assistance at facilities of the Department of 
     Veterans Affairs.

                               H.R. 6599

                 Offered By: Mr. Garrett of New Jersey

       Amendment No. 11: Page 36, line 5, after the dollar amount, 
     insert ``(reduced by $18,018,000)''.
       Page 41, line 22, after the dollar amount, insert 
     ``(increased by $18,018,000)''.

                               H.R. 6599

                        Offered By: Mr. Lamborn

       Amendment No. 12: In section 127, insert after ``action'' 
     the following: ``(other than the purchase of land from a 
     willing seller)''.

                               H.R. 6599

                       Offered By: Mr. Perlmutter

       Amendment No. 13: Page 36, line 5, after the dollar amount, 
     insert ``(reduced by $42,000,000)''.
       Page 38, line 23, after the dollar amount, insert 
     ``(increased by $42,000,000)''.

                               H.R. 6599

                         Offered By: Mr. Stupak

       Amendment No. 14: At the end of the bill (before the short 
     title), insert the following:
       Sec. 408. (a) In General.--None of the funds appropriated 
     or otherwise made available to the Secretary of Defense by 
     this Act may be used for a project for the construction, 
     alteration, maintenance, or repair of a public building or 
     public work unless all of the iron and steel used in such 
     project is produced in the United States.
       (b) Exceptions.--Subsection (a) shall not apply in any case 
     in which the Secretary of Defense finds that--
       (1) its application would be inconsistent with the public 
     interest;
       (2) iron and steel are not produced in the United States in 
     sufficient and reasonably available quantities and of a 
     satisfactory quality; or
       (3) inclusion of iron and steel produced in the United 
     States will increase the cost of the overall project contract 
     by more than 25 percent.
       (c) Public Building; Public Work Defined.--In this section, 
     the terms ``public building'' and ``public work'' have the 
     meanings given such terms in section 1 of the Buy American 
     Act (41 U.S.C. 10c) and include airports, bridges, canals, 
     dams, dikes, pipelines, railroads, multiline mass transit 
     systems, roads, tunnels, harbors, and piers.

                               H.R. 6599

                         Offered By: Mr. Stupak

       Amendment No. 15: At the end of the bill (before the short 
     title), insert the following:
       Sec. 408. (a) In General.--None of the funds appropriated 
     or otherwise made available to the Secretary of Veterans 
     Affairs by this Act may be used for a project for the 
     construction, alteration, maintenance, or repair of a public 
     building or public work unless all of the iron and steel used 
     in such project is produced in the United States.
       (b) Exceptions.--Subsection (a) shall not apply in any case 
     in which the Secretary of Veterans Affairs finds that--
       (1) its application would be inconsistent with the public 
     interest;
       (2) iron and steel are not produced in the United States in 
     sufficient and reasonably available quantities and of a 
     satisfactory quality; or
       (3) inclusion of iron and steel produced in the United 
     States will increase the cost of the overall project contract 
     by more than 25 percent.
       (c) Public Building; Public Work Defined.--In this section, 
     the terms ``public building'' and ``public work'' have the 
     meanings given such terms in section 1 of the Buy American 
     Act (41 U.S.C. 10c) and include airports, bridges, canals, 
     dams, dikes, pipelines, railroads, multiline mass transit 
     systems, roads, tunnels, harbors, and piers.

                               H.R. 6599

                         Offered By: Mr. Stupak

       Amendment No. 16: At the end of the bill (before the short 
     title), insert the following:
       Sec. 408.  None of the funds made available in this Act may 
     be used to carry out section 111(c)(5) of title 38, United 
     States Code, during fiscal year 2009.

                               H.R. 6599

                  Offered By: Mr. Hastings of Florida

       Amendment No. 17: At the end of the bill (before the short 
     title), insert the following:
       Sec. __.  None of the funds made available in this Act may 
     be used to establish contracts or procurement methods and 
     procedures in contravention of title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.).

                               H.R. 6599

                         Offered By: Mr. Filner

       Amendment No. 18: At the end of title II of the bill, (page 
     51, after line 11), add the following new section:
       Sec. 226.  Appropriations made available in this title for 
     ``Medical services'' shall be used by the Secretary of 
     Veterans Affairs, in an amount not to exceed $250,000,000, to 
     establish a community grant program to provide rehabilitative 
     services to veterans and servicemembers with post-traumatic 
     stress disorder or traumatic brain injury. The Secretary of 
     Veterans Affairs may enter into cooperative agreements with 
     States and localities in order to inform veterans and 
     servicemembers of programs and benefits under this grant 
     program.

                               H.R. 6599

                         Offered By: Mr. Filner

       Amendment No. 19: At the end of title II of the bill (page 
     51, after line 11), add the following new section:
       Sec. 226. Appropriations made available in this title for 
     ``Medical services'' shall be used by the Secretary of 
     Veterans Affairs, in an amount not to exceed $10,000,000, to 
     establish, in cooperation with the Secretary of Defense, a 
     heroes' homecoming pilot program to evaluate the 
     effectiveness of offering compulsory screening, evaluation, 
     and when indicated, treatment for mental health conditions 
     such as post-traumatic stress disorder, and traumatic brain 
     injury, to servicemembers (and immediate family members) 
     returning from deployment and those recently discharged.

                               H.R. 6599

                        Offered By: Mr. Gingrey

       Amendment No. 20: At the end of the bill (before the short 
     title), add the following new section:
       Sec. 408.  None of the funds appropriated or otherwise made 
     available in this Act may be used to take private property 
     for public use without just compensation.

                               H.R. 6599

                         Offered By: Mr. Filner

       Amendment No. 21: At the end of title II (page 51, after 
     line 11), add the following new section:
       Sec. 226. (a) Clarification of Meaning of ``Combat With the 
     Enemy'' for Purposes of Service-Connection of Disabilities.--
     (1) Section 1154(b) of title 38, United States Code, is 
     amended--
       (A) by striking ``In the case'' and inserting ``(1) In the 
     case''; and
       (B) by adding at the end the following new paragraph:
       ``(2) For the purposes of this subsection, the term `combat 
     with the enemy' includes service on active duty--
       ``(A) in a theater of combat operations (as determined by 
     the Secretary in consultation with the Secretary of Defense) 
     during a period of war; or
       ``(B) in combat against a hostile force during a period of 
     hostilities.''.
       (2) Paragraph (2) of subsection (b) of section 1154 of 
     title 38, United States Code, as

[[Page 16938]]

     added by this subsection, shall apply with respect to a claim 
     for disability compensation under chapter 11 of such title 
     pending on or after the date of the enactment of this Act.
       (b) Pilot Programs To Provide Disability Compensation on 
     Basis of Certain Presumptions of Service-Connection.--The 
     Secretary of Veterans Affairs (in this section referred to as 
     the ``Secretary'') shall carry out two pilot programs, each 
     for a period of two years, at regional offices of the 
     Department of Veterans Affairs. The first pilot program shall 
     be carried out at each regional office of the Department for 
     which the Secretary, as of the date of enactment of this Act, 
     has entered into a contract with a private entity for the 
     entity to conduct medical examinations required to administer 
     claims for disability compensation under chapter 11 of title 
     38, United States Code. The second pilot program shall be 
     carried out at four other regional offices of the Department 
     selected by the Secretary, one for each of the four regions 
     of the Department.
       (c) Presumption of Service-Connection.--At each regional 
     office participating in a pilot program under this section, 
     the Secretary shall administer claims for disability 
     compensation under chapter 11 of title 38, United States 
     Code, by considering each disability for which a claim is 
     submitted to that regional office by a veteran to have been 
     incurred in or aggravated by the veteran's service in the 
     active military, naval, or air service during a period of 
     war, campaign, or expedition or in a theater of combat 
     operations during a period of war or in combat against the 
     hostile force during a period of hostilities, notwithstanding 
     there is no record of evidence of such disability during the 
     period of service.
       (d) Minimum Disability Rating.--In the case of any claim 
     for disability compensation submitted to a regional office 
     participating in a pilot program under this section, the 
     Secretary shall assign to the veteran who submits the claim a 
     disability rating of at least minimal under the schedule for 
     rating disabilities adopted and applied by the Secretary 
     under subsection (e).
       (e) Evaluation and Compensation of Disabilities Under Pilot 
     Programs.--Under the pilot programs--
       (1) the Secretary shall reduce the number of grades of 
     disability upon which payments of compensation are based that 
     would otherwise be applicable under section 1155 of title 38, 
     United States Code, from ten to four;
       (2) the four grades of disability shall be minimal, 
     moderate, severe, and very severe; and
       (3) the Secretary shall determine the amount of 
     compensation payable for each of such four grades of 
     disability so that the amount of a compensation payment for a 
     veteran in that grade of disability is equal to the amount of 
     compensation payment for a veteran under such section 1155 
     with the highest percentage of disability that corresponds to 
     such grade.
       (f) Compensation Not Treated as Overpayment.--If the 
     Secretary adjusts the amount of compensation payable to a 
     veteran for a disability subject to a presumption of service-
     connection under a pilot program under this section, any 
     payment of compensation to the veteran before such adjustment 
     shall not be considered an overpayment for any purpose.
       (g) Audit of Certain Claims.--The Secretary shall conduct 
     an audit of between five and ten percent of all claims 
     administered under each pilot program under this section.
       (h) Time Frame for Adjudication of Claims.--The Secretary 
     shall ensure that for each claim that is administered as part 
     of a pilot program under this section a final determination 
     is made not later than 90 days after the date of the 
     submission of the claim. Notwithstanding section 5103A(d) of 
     title 38, United States Code, a final determination for such 
     a claim may be made without a medical examination.
       (i) Authority To Enter Into Contracts.--(1) The Secretary 
     may enter into a contract with a medical professional, 
     including medical professionals who are not physicians, for 
     the provision of medical reference assistance to employees of 
     the Department who are responsible for rating disabilities at 
     a regional office participating in a pilot program under this 
     section. In no case shall such a medical professional be 
     utilized or employed to rate any disability or evaluate any 
     claim.
       (2) If the Secretary utilizes or employs medical 
     professionals in a pilot program under this section, the 
     Secretary shall ensure that employees of the Department in 
     all regional offices of the Veterans Benefits Administration 
     participating in the two pilot programs have access to such 
     medical professionals as a medical reference resource.
       (j) Surveys.-- In carrying out each of the two pilot 
     programs under this section, the Secretary shall--
       (1) conduct statistically significant surveys of employees 
     of the Veterans Benefits Administration participating in the 
     pilot program to ascertain whether, how, and to what degree a 
     medical professional would provide assistance to such 
     employees in carrying out their duties; and
       (2) submit a written report of the findings of each survey 
     to Congress not later than 30 days after the date of the 
     conclusion of the pilot program.
       (k) Limitation on Statutory Construction.--Nothing in this 
     section shall be construed as limiting or affecting any 
     veteran participating in a pilot program under this section 
     from being eligible for disability compensation under chapter 
     11 of title 38, United States Code, other than as specified 
     in such chapter.
       (l) Report to Congress.--Not later than 30 days after the 
     date of the conclusion of each pilot program under this 
     section, the Secretary shall submit to Congress a report on 
     the pilot program. Such report shall include--
       (1) the number of claims for disability compensation under 
     chapter 11 of title 38, United States Code, that are pending 
     at the regional offices participating in the pilot program on 
     the date of the conclusion of the pilot program;
       (2) the average amount of time required to process a claim 
     for such compensation at such regional offices during the 
     period covered by the pilot program;
       (3) a quantitative and qualitative comparison of how such 
     claims were processed at such regional offices during the 
     period covered by the pilot program and how such claims were 
     processed at other regional offices during such period;
       (4) the results of the surveys conducted under subsection 
     (j); and
       (5) the recommendations of the Secretary with respect to 
     implementing the pilot program at all regional offices of the 
     Department.
       (m) Emergency Designation.--The amounts required to carry 
     out the amendment made by subsection (a) and the pilot 
     programs under this section are designated as an emergency 
     requirement and necessary to meet emergency needs pursuant to 
     subsections (a) and (b) of section 204 of S. Con. Res. 21 
     (110th Congress) and section 301(b) of S. Con. Res. 70 (110th 
     Congress), the concurrent resolutions on the budget for 
     fiscal years 2008 and 2009.

                               H.R. 6599

                         Offered By: Mr. Filner

       Amendment No. 22: At the end of title II (page 51, after 
     line 11), add the following new section:
       Sec. 226. (a) Payments to Veterans Who Served in 
     Philippines During World War II.--During the one-year period 
     beginning on the date of the enactment of this Act, the 
     Secretary of Veterans Affairs (in this section referred to as 
     the ``Secretary'') shall make a payment to a person described 
     in subsection (e) who, during such period, submits to the 
     Secretary an application containing such information and 
     assurances as the Secretary may require.
       (b) Payment Amounts.--Each payment under this section shall 
     be--
       (1) in the case of a person described in subsection (e) who 
     is not a citizen of the United States, in the amount of 
     $9,000; and
       (2) in the case of a person described in subsection (e) who 
     is a citizen of the United States, in the amount of $15,000.
       (c) Limitation.--The Secretary may not make more than one 
     payment under this section for each person described in 
     subsection (d).
       (d) Eligibility of Individuals Living Outside the United 
     States Entitled to Certain Social Security Benefits.--Receipt 
     of a payment under this section shall not affect the 
     eligibility of an individual residing outside the United 
     States to receive benefits under title VIII of the Social 
     Security Act (42 U.S.C. 1001 et seq.) or the amount of such 
     benefits.
       (e) Eligible Persons.--A person covered by this section is 
     any person who served--
       (1) before July 1, 1946, in the organized military forces 
     of the Government of the Commonwealth of the Philippines, 
     while such forces were in the service of the Armed Forces of 
     the United States pursuant to the military order of the 
     President dated July 26, 1941, including among such military 
     forces organized guerrilla forces under commanders appointed, 
     designated, or subsequently recognized by the Commander in 
     Chief, Southwest Pacific Area, or other competent authority 
     in the Army of the United States; or
       (2) in the Philippine Scouts under section 14 of the Armed 
     Forces Voluntary Recruitment Act of 1945 (59 Stat. 538).
       (f) Offsetting Reduction.--The amount otherwise provided by 
     this title for ``information technology systems'' is revised 
     by reducing the amount by $198,000,000.

                               H.R. 6599

                         Offered By: Mr. Filner

       Amendment No. 23: At the end of title II (page 51, after 
     line 11), add the following new section:
       Sec. 226. (a) Payments to Individuals Who Served During 
     World War II in the United States Merchant Marine.--
     Subchapter II of chapter 5 of title 38, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 532. Merchant Mariner Equity Compensation Fund

       ``(a) Compensation Fund.--(1) There is in the general fund 
     of the Treasury a fund to be known as the `Merchant Mariner 
     Equity Compensation Fund' (in this section referred to as the 
     `compensation fund').
       ``(2) Subject to the availability of appropriations for 
     such purpose, amounts in the

[[Page 16939]]

     fund shall be available to the Secretary without fiscal year 
     limitation to make payments to eligible individuals in 
     accordance with this section.
       ``(b) Eligible Individuals.--(1) An eligible individual is 
     an individual who--
       ``(A) before October 1, 2009, submits to the Secretary an 
     application containing such information and assurances as the 
     Secretary may require;
       ``(B) has not received benefits under the Servicemen's 
     Readjustment Act of 1944 (Public Law 78-346); and
       ``(C) has engaged in qualified service.
       ``(2) For purposes of paragraph (1), a person has engaged 
     in qualified service if, between December 7, 1941, and 
     December 31, 1946, the person--
       ``(A) was a member of the United States merchant marine 
     (including the Army Transport Service and the Naval Transport 
     Service) serving as a crewmember of a vessel that was--
       ``(i) operated by the War Shipping Administration or the 
     Office of Defense Transportation (or an agent of the 
     Administration or Office);
       ``(ii) operated in waters other than inland waters, the 
     Great Lakes, and other lakes, bays, and harbors of the United 
     States;
       ``(iii) under contract or charter to, or property of, the 
     Government of the United States; and
       ``(iv) serving the Armed Forces; and
       ``(B) while so serving, was licensed or otherwise 
     documented for service as a crewmember of such a vessel by an 
     officer or employee of the United States authorized to 
     license or document the person for such service.
       ``(c) Amount of Payments.--The Secretary shall make a 
     monthly payment out of the compensation fund in the amount of 
     $1,000 to an eligible individual. The Secretary shall make 
     such payments to eligible individuals in the order in which 
     the Secretary receives the applications of the eligible 
     individuals.
       ``(d) Reports.--The Secretary shall include, in documents 
     submitted to Congress by the Secretary in support of the 
     President's budget for each fiscal year, detailed information 
     on the operation of the compensation fund, including the 
     number of applicants, the number of eligible individuals 
     receiving benefits, the amounts paid out of the compensation 
     fund, the administration of the compensation fund, and an 
     estimate of the amounts necessary to fully fund the 
     compensation fund for that fiscal year and each of the three 
     subsequent fiscal years.
       ``(e) Regulations.--The Secretary shall prescribe 
     regulations to carry out this section.''.
       (b) Appropriation.--In addition to other amounts 
     appropriated by this Act, there is hereby appropriated to the 
     Merchant Mariner Equity Compensation Fund required by section 
     532 of title 38, United States Code, as added by subsection 
     (a), $120,000,000, to remain available until expended, to 
     make payments under such section.
       (c) Offsetting Reduction.--The amount otherwise provided by 
     this title for ``information technology systems'' is revised 
     by reducing the amount by $120,000,000.
       (d) Regulations.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary shall prescribe the 
     regulations required under subsection (e) of section 532 of 
     title 38, United States Code, as added by subsection (a).
       (e) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item related to section 531 the following new item:

``532. Merchant Mariner Equity Compensation Fund.''....................

                               H.R. 6599

                        Offered By: Mr. Boehner

       Amendment No. 24: Before title I, insert the following:

                               DIVISION A

       At the end of the bill, before the short title, insert the 
     following:

                               DIVISION B

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

                        TITLE I--AMERICAN ENERGY

                            Subtitle A--OCS

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

                            Subtitle B--ANWR

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

                         Subtitle C--Oil Shale

Sec. 161. Repeal.

                 TITLE II--CONSERVATION AND EFFICIENCY

             Subtitle A--Tax Incentives for Fuel Efficiency

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

         Subtitle B--Tapping America's Ingenuity and Creativity

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

              Subtitle C--Home and Business Tax Incentives

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

              Subtitle D--Refinery Permit Process Schedule

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

               TITLE III--NEW AND EXPANDING TECHNOLOGIES

                     Subtitle A--Alternative Fuels

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

                       Subtitle B--Tax Provisions

Sec. 311. Extension of renewable electricity, refined coal, and Indian 
              coal production credit.
Sec. 312. Extension of energy credit.
Sec. 313. Extension and modification of credit for clean renewable 
              energy bonds.
Sec. 314. Extension of credits for biodiesel and renewable diesel.

                          Subtitle C--Nuclear

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

    Subtitle D--American Renewable and Alternative Energy Trust Fund

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

                        TITLE I--AMERICAN ENERGY

                            Subtitle A--OCS

     SEC. 101. SHORT TITLE.

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

[[Page 16940]]



     SEC. 102. POLICY.

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

     SEC. 103. DEFINITIONS UNDER THE SUBMERGED LANDS ACT.

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

     SEC. 104. SEAWARD BOUNDARIES OF STATES.

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

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

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

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

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

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

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

     SEC. 108. ADMINISTRATION OF LEASING.

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

[[Page 16941]]

     gas lease unless otherwise clearly inapplicable.''.

     SEC. 109. GRANT OF LEASES BY SECRETARY.

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

     SEC. 110. DISPOSITION OF RECEIPTS.

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

[[Page 16942]]

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

[[Page 16943]]

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

     SEC. 111. RESERVATION OF LANDS AND RIGHTS.

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

[[Page 16944]]

       ``(E) Amendment of the 5-year leasing program.--
     Notwithstanding section 18, within 180 days of the approval 
     of a petition under subparagraph (C) or (D), after the 
     expiration of the time limits in paragraph (1)(B), the 
     Secretary shall amend the current 5-Year Outer Continental 
     Shelf Oil and Gas Leasing Program to include a lease sale or 
     sales for at least 75 percent of the associated areas, unless 
     there are, from the date of approval, expiration of such time 
     limits, as applicable, fewer than 12 months remaining in the 
     current 5-Year Leasing Program in which case the Secretary 
     shall include the associated areas within lease sales under 
     the next 5-Year Leasing Program. For purposes of amending the 
     5-Year Program in accordance with this section, further 
     consultations with States shall not be required. For purposes 
     of this section, an environmental assessment performed under 
     the provisions of the National Environmental Policy Act of 
     1969 to assess the effects of approving the petition shall be 
     sufficient to amend the 5-Year Leasing Program.
       ``(h) Option To Extend Withdrawal From Leasing Within 
     Certain Areas of the Outer Continental Shelf.--A State, 
     through its Governor and upon the concurrence of its 
     legislature, may extend for a period of time of up to 5 years 
     for each extension the withdrawal from leasing for all or 
     part of any area within the State's Adjacent Zone located 
     more than 50 miles, but less than 100 miles, from the 
     coastline that is subject to subsection (g)(1)(B). A State 
     may extend multiple times for any particular area but not 
     more than once per calendar year for any particular area. A 
     State must prepare separate extensions, with separate votes 
     by its legislature, for oil and gas leasing and for natural 
     gas leasing. An extension by a State may affect some areas to 
     be withdrawn from all leasing and some areas to be withdrawn 
     only from one type of leasing.
       ``(i) Effect of Other Laws.--Adoption by any Adjacent State 
     of any constitutional provision, or enactment of any State 
     statute, that has the effect, as determined by the Secretary, 
     of restricting either the Governor or the Legislature, or 
     both, from exercising full discretion related to subsection 
     (g) or (h), or both, shall automatically (1) prohibit any 
     sharing of OCS Receipts under this Act with the Adjacent 
     State, and its coastal political subdivisions, and (2) 
     prohibit the Adjacent State from exercising any authority 
     under subsection (h), for the duration of the restriction. 
     The Secretary shall make the determination of the existence 
     of such restricting constitutional provision or State statute 
     within 30 days of a petition by any outer Continental Shelf 
     lessee or coastal State.
       ``(j) Prohibition on Leasing East of the Military Mission 
     Line.--
       ``(1) Notwithstanding any other provision of law, from and 
     after the enactment of the Deep Ocean Energy Resources Act of 
     2008, prior to January 1, 2022, no area of the outer 
     Continental Shelf located in the Gulf of Mexico east of the 
     military mission line may be offered for leasing for oil and 
     gas or natural gas unless a waiver is issued by the Secretary 
     of Defense. If such a waiver is granted, 62.5 percent of the 
     OCS Receipts from a lease within such area issued because of 
     such waiver shall be paid annually to the National Guards of 
     all States having a point within 1000 miles of such a lease, 
     allocated among the States on a per capita basis using the 
     entire population of such States.
       ``(2) In this subsection, the term `military mission line' 
     means a line located at 86 degrees, 41 minutes West 
     Longitude, and extending south from the coast of Florida to 
     the outer boundary of United States territorial waters in the 
     Gulf of Mexico.''.

     SEC. 112. OUTER CONTINENTAL SHELF LEASING PROGRAM.

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

     SEC. 113. COORDINATION WITH ADJACENT STATES.

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

     SEC. 114. ENVIRONMENTAL STUDIES.

       Section 20(d) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1346) is amended--
       (1) by inserting ``(1)'' after ``(d)''; and
       (2) by adding at the end the following:
       ``(2) For all programs, lease sales, leases, and actions 
     under this Act, the following shall apply regarding the 
     application of the National Environmental Policy Act of 1969:
       ``(A) Granting or directing lease suspensions and the 
     conduct of all preliminary activities on outer Continental 
     Shelf tracts, including seismic activities, are categorically 
     excluded from the need to prepare either an environmental 
     assessment or an environmental impact statement, and the 
     Secretary shall not be required to analyze whether any 
     exceptions to a categorical exclusion apply

[[Page 16945]]

     for activities conducted under the authority of this Act.
       ``(B) The environmental impact statement developed in 
     support of each 5-Year Oil and Gas Leasing Program provides 
     the environmental analysis for all lease sales to be 
     conducted under the program and such sales shall not be 
     subject to further environmental analysis.
       ``(C) Exploration plans shall not be subject to any 
     requirement to prepare an environmental impact statement, and 
     the Secretary may find that exploration plans are eligible 
     for categorical exclusion due to the impacts already being 
     considered within an environmental impact statement or due to 
     mitigation measures included within the plan.
       ``(D) Within each OCS Planning Area, after the preparation 
     of the first development and production plan environmental 
     impact statement for a leased tract within the Area, future 
     development and production plans for leased tracts within the 
     Area shall only require the preparation of an environmental 
     assessment unless the most recent development and production 
     plan environmental impact statement within the Area was 
     finalized more than 10 years prior to the date of the 
     approval of the plan, in which case an environmental impact 
     statement shall be required.''.

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

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

     SEC. 116. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.

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

     SEC. 117. REPURCHASE OF CERTAIN LEASES.

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

     SEC. 118. OFFSITE ENVIRONMENTAL MITIGATION.

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

     SEC. 119. OCS REGIONAL HEADQUARTERS.

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

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

       (a) Authorization To Cancel and Exchange Certain Existing 
     Oil and Gas Leases; Prohibition on Submittal of Exploration 
     Plans for Certain Leases Prior to June 30, 2012.--
       (1) Authority.--Within 2 years after the date of enactment 
     of this Act, the lessee of an existing oil and gas lease for 
     an area located completely within 100 miles of the coastline 
     within the California or Florida Adjacent Zones shall have 
     the option, without compensation, of exchanging such lease 
     for a new oil and gas lease having a primary term of 5 years. 
     For the area subject to the new lease, the lessee may select 
     any unleased tract on the outer Continental Shelf that is in 
     an area available for leasing. Further, with the permission 
     of the relevant Governor, such a lessee may convert its 
     existing oil and gas lease into a natural gas lease having a 
     primary term of 5 years and covering the same area as the 
     existing lease or another area within the same State's 
     Adjacent Zone within 100 miles of the coastline.
       (2) Administrative process.--The Secretary of the Interior 
     shall establish a reasonable administrative process to 
     implement paragraph (1). Exchanges and conversions under 
     subsection (a), including the issuance of new leases, shall 
     not be considered to be major Federal actions for purposes of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.). Further, such actions conducted in accordance with 
     this section are deemed to be in compliance all provisions of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
     seq.).
       (3) Operating restrictions.--A new lease issued in exchange 
     for an existing lease under this section shall be subject to 
     such national defense operating stipulations on the OCS tract 
     covered by the new lease as may be applicable upon issuance.
       (4) Priority.--The Secretary shall give priority in the 
     lease exchange process based on the amount of the original 
     bonus bid paid for the issuance of each lease to be 
     exchanged. The Secretary shall allow leases covering partial 
     tracts to be exchanged for leases covering full tracts 
     conditioned upon payment of additional bonus bids on a per-
     acre basis as determined by the average per acre of the 
     original bonus bid per acre for the partial tract being 
     exchanged.
       (5) Exploration plans.--Any exploration plan submitted to 
     the Secretary of the Interior after the date of the enactment 
     of this

[[Page 16946]]

     Act and before July 1, 2012, for an oil and gas lease for an 
     area wholly within 100 miles of the coastline within the 
     California Adjacent Zone or Florida Adjacent Zone shall not 
     be treated as received by the Secretary until the earlier of 
     July 1, 2012, or the date on which a petition by the Adjacent 
     State for oil and gas leasing covering the area within which 
     is located the area subject to the oil and gas lease was 
     approved.
       (b) Further Lease Cancellation and Exchange Provisions.--
       (1) Cancellation of lease.--As part of the lease exchange 
     process under this section, the Secretary shall cancel a 
     lease that is exchanged under this section.
       (2) Consent of lessees.--All lessees holding an interest in 
     a lease must consent to cancellation of their leasehold 
     interests in order for the lease to be cancelled and 
     exchanged under this section.
       (3) Waiver of rights.--As a prerequisite to the exchange of 
     a lease under this section, the lessee must waive any rights 
     to bring any litigation against the United States related to 
     the transaction.
       (4) Plugging and abandonment.--The plugging and abandonment 
     requirements for any wells located on any lease to be 
     cancelled and exchanged under this section must be complied 
     with by the lessees prior to the cancellation and exchange.
       (c) Area Partially Within 100 Miles of Florida.--An 
     existing oil and gas lease for an area located partially 
     within 100 miles of the coastline within the Florida Adjacent 
     Zone may only be developed and produced using wells drilled 
     from well-head locations at least 100 miles from the 
     coastline to any bottom-hole location on the area of the 
     lease. This subsection shall not apply if Florida has 
     petitioned for leasing closer to the coastline than 100 
     miles.
       (d) Existing Oil and Gas Lease Defined.--In this section 
     the term ``existing oil and gas lease'' means an oil and gas 
     lease in effect on the date of the enactment of this Act.

     SEC. 121. COASTAL IMPACT ASSISTANCE.

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

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

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

                            Subtitle B--ANWR

     SEC. 141. SHORT TITLE.

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

     SEC. 142. DEFINITIONS.

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

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

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

     SEC. 144. LEASE SALES.

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

[[Page 16947]]

     taking into consideration nominations received pursuant to 
     subsection (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) conduct the first lease sale under this subtitle within 
     22 months after the date of the enactment of this Act;
       (2) evaluate the bids in such sale and issue leases 
     resulting from such sale, within 90 days after the date of 
     the completion of such sale; and
       (3) conduct additional sales so long as sufficient interest 
     in development exists to warrant, in the Secretary's 
     judgment, the conduct of such sales.

     SEC. 145. GRANT OF LEASES BY THE SECRETARY.

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

     SEC. 146. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this subtitle shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent in amount or value of the production removed 
     or sold from the lease, as determined by the Secretary under 
     the regulations applicable to other Federal oil and gas 
     leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, portions of the Coastal Plain to exploratory drilling 
     activities as necessary to protect caribou calving areas and 
     other species of fish and wildlife;
       (3) require that the lessee of lands within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of lands within the Coastal Plain and any other 
     Federal lands that are adversely affected in connection with 
     exploration, development, production, or transportation 
     activities conducted under the lease and within the Coastal 
     Plain by the lessee or by any of the subcontractors or agents 
     of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, the reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for lands 
     required to be reclaimed under this subtitle shall be, as 
     nearly as practicable, a condition capable of supporting the 
     uses which the lands were capable of supporting prior to any 
     exploration, development, or production activities, or upon 
     application by the lessee, to a higher or better use as 
     approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, their habitat, subsistence resources, and 
     the environment as required pursuant to section 143(a)(2);
       (7) provide that the lessee, its agents, and its 
     contractors use best efforts to provide a fair share, as 
     determined by the level of obligation previously agreed to in 
     the 1974 agreement implementing section 29 of the Federal 
     Agreement and Grant of Right of Way for the Operation of the 
     Trans-Alaska Pipeline, of employment and contracting for 
     Alaska Natives and Alaska Native Corporations from throughout 
     the State;
       (8) prohibit the export of oil produced under the lease; 
     and
       (9) contain such other provisions as the Secretary 
     determines necessary to ensure compliance with the provisions 
     of this subtitle and the regulations issued under this 
     subtitle.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this subtitle and in 
     recognizing the Government's proprietary interest in labor 
     stability and in the ability of construction labor and 
     management to meet the particular needs and conditions of 
     projects to be developed under the leases issued pursuant to 
     this subtitle and the special concerns of the parties to such 
     leases, shall require that the lessee and its agents and 
     contractors negotiate to obtain a project labor agreement for 
     the employment of laborers and mechanics on production, 
     maintenance, and construction under the lease.

     SEC. 147. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

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

[[Page 16948]]

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

     SEC. 148. EXPEDITED JUDICIAL REVIEW.

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

     SEC. 149. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

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

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

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

     SEC. 151. CONVEYANCE.

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

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

       (a) Financial Assistance Authorized.--
       (1) In general.--The Secretary may use amounts available 
     from the Coastal Plain Local Government Impact Aid Assistance 
     Fund established by subsection (d) to provide timely 
     financial assistance to entities that are eligible under 
     paragraph (2) and that are directly impacted by the 
     exploration for or production of oil and gas on the Coastal 
     Plain under this subtitle.
       (2) Eligible entities.--The North Slope Borough, the City 
     of Kaktovik, and any other borough, municipal subdivision, 
     village, or other community in the State of Alaska that is 
     directly impacted by exploration for, or the production of, 
     oil or gas on the Coastal Plain under this subtitle, as 
     determined by the Secretary, shall be eligible for financial 
     assistance under this section.
       (b) Use of Assistance.--Financial assistance under this 
     section may be used only for--
       (1) planning for mitigation of the potential effects of oil 
     and gas exploration and development on environmental, social, 
     cultural, recreational, and subsistence values;
       (2) implementing mitigation plans and maintaining 
     mitigation projects;
       (3) developing, carrying out, and maintaining projects and 
     programs that provide new or expanded public facilities and 
     services to address needs and problems associated with such 
     effects, including fire-fighting, police, water, waste 
     treatment, medivac, and medical services; and
       (4) establishment of a coordination office, by the North 
     Slope Borough, in the City of Kaktovik, which shall--
       (A) coordinate with and advise developers on local 
     conditions, impact, and history of the areas utilized for 
     development; and
       (B) provide to the Committee on Resources of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate an annual report on the status of 
     coordination between developers and the communities affected 
     by development.
       (c) Application.--
       (1) In general.--Any community that is eligible for 
     assistance under this section may submit an application for 
     such assistance to the Secretary, in such form and under such 
     procedures as the Secretary may prescribe by regulation.
       (2) North slope borough communities.--A community located 
     in the North Slope Borough may apply for assistance under 
     this section either directly to the Secretary or through the 
     North Slope Borough.
       (3) Application assistance.--The Secretary shall work 
     closely with and assist the North Slope Borough and other 
     communities eligible for assistance under this section in 
     developing and submitting applications for assistance under 
     this section.

[[Page 16949]]

       (d) Establishment of Fund.--
       (1) In general.--There is established in the Treasury the 
     Coastal Plain Local Government Impact Aid Assistance Fund.
       (2) Use.--Amounts in the fund may be used only for 
     providing financial assistance under this section.
       (3) Deposits.--Subject to paragraph (4), there shall be 
     deposited into the fund amounts received by the United States 
     as revenues derived from rents, bonuses, and royalties from 
     Federal leases and lease sales authorized under this 
     subtitle.
       (4) Limitation on deposits.--The total amount in the fund 
     may not exceed $11,000,000.
       (5) Investment of balances.--The Secretary of the Treasury 
     shall invest amounts in the fund in interest bearing 
     government securities.
       (e) Authorization of Appropriations.--To provide financial 
     assistance under this section there is authorized to be 
     appropriated to the Secretary from the Coastal Plain Local 
     Government Impact Aid Assistance Fund $5,000,000 for each 
     fiscal year.

                         Subtitle C--Oil Shale

     SEC. 161. REPEAL.

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

                 TITLE II--CONSERVATION AND EFFICIENCY

             Subtitle A--Tax Incentives for Fuel Efficiency

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

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

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

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of the credit amounts 
     determined under subsection (b) with respect to each new 
     qualified plug-in electric drive motor vehicle placed in 
     service by the taxpayer during the taxable year.
       ``(b) Per Vehicle Dollar Limitation.--
       ``(1) In general.--The amount determined under this 
     subsection with respect to any new qualified plug-in electric 
     drive motor vehicle is the sum of the amounts determined 
     under paragraphs (2) and (3) with respect to such vehicle.
       ``(2) Base amount.--The amount determined under this 
     paragraph is $3,000.
       ``(3) Battery capacity.--In the case of a vehicle which 
     draws propulsion energy from a battery with not less than 5 
     kilowatt hours of capacity, the amount determined under this 
     paragraph is $200, plus $200 for each kilowatt hour of 
     capacity in excess of 5 kilowatt hours. The amount determined 
     under this paragraph shall not exceed $2,000.
       ``(c) Application With Other Credits.--
       ``(1) Business credit treated as part of general business 
     credit.--So much of the credit which would be allowed under 
     subsection (a) for any taxable year (determined without 
     regard to this subsection) that is attributable to property 
     of a character subject to an allowance for depreciation shall 
     be treated as a credit listed in section 38(b) for such 
     taxable year (and not allowed under subsection (a)).
       ``(2) Personal credit.--
       ``(A) In general.--For purposes of this title, the credit 
     allowed under subsection (a) for any taxable year (determined 
     after application of paragraph (1)) shall be treated as a 
     credit allowable under subpart A for such taxable year.
       ``(B) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     (determined after application of paragraph (1)) shall not 
     exceed the excess of--
       ``(i) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(ii) the sum of the credits allowable under subpart A 
     (other than this section and sections 23 and 25D) and section 
     27 for the taxable year.
       ``(d) New Qualified Plug-In Electric Drive Motor Vehicle.--
     For purposes of this section--
       ``(1) In general.--The term `new qualified plug-in electric 
     drive motor vehicle' means a motor vehicle (as defined in 
     section 30(c)(2))--
       ``(A) the original use of which commences with the 
     taxpayer,
       ``(B) which is acquired for use or lease by the taxpayer 
     and not for resale,
       ``(C) which is made by a manufacturer,
       ``(D) which has a gross vehicle weight rating of less than 
     14,000 pounds,
       ``(E) which has received a certificate of conformity under 
     the Clean Air Act and meets or exceeds the Bin 5 Tier II 
     emission standard established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year vehicle, and
       ``(F) which is propelled to a significant extent by an 
     electric motor which draws electricity from a battery which--
       ``(i) has a capacity of not less than 4 kilowatt hours, and
       ``(ii) is capable of being recharged from an external 
     source of electricity.
       ``(2) Exception.--The term `new qualified plug-in electric 
     drive motor vehicle' shall not include any vehicle which is 
     not a passenger automobile or light truck if such vehicle has 
     a gross vehicle weight rating of less than 8,500 pounds.
       ``(3) Other terms.--The terms `passenger automobile', 
     `light truck', and `manufacturer' have the meanings given 
     such terms in regulations prescribed by the Administrator of 
     the Environmental Protection Agency for purposes of the 
     administration of title II of the Clean Air Act (42 U.S.C. 
     7521 et seq.).
       ``(4) Battery capacity.--The term `capacity' means, with 
     respect to any battery, the quantity of electricity which the 
     battery is capable of storing, expressed in kilowatt hours, 
     as measured from a 100 percent state of charge to a 0 percent 
     state of charge.
       ``(e) Limitation on Number of New Qualified Plug-In 
     Electric Drive Motor Vehicles Eligible for Credit.--
       ``(1) In general.--In the case of a new qualified plug-in 
     electric drive motor vehicle sold during the phaseout period, 
     only the applicable percentage of the credit otherwise 
     allowable under subsection (a) shall be allowed.
       ``(2) Phaseout period.--For purposes of this subsection, 
     the phaseout period is the period beginning with the second 
     calendar quarter following the calendar quarter which 
     includes the first date on which the number of new qualified 
     plug-in electric drive motor vehicles manufactured by the 
     manufacturer of the vehicle referred to in paragraph (1) sold 
     for use in the United States after the date of the enactment 
     of this section, is at least 60,000.
       ``(3) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is--
       ``(A) 50 percent for the first 2 calendar quarters of the 
     phaseout period,
       ``(B) 25 percent for the 3d and 4th calendar quarters of 
     the phaseout period, and
       ``(C) 0 percent for each calendar quarter thereafter.
       ``(4) Controlled groups.--Rules similar to the rules of 
     section 30B(f)(4) shall apply for purposes of this 
     subsection.
       ``(f) Special Rules.--
       ``(1) Basis reduction.--The basis of any property for which 
     a credit is allowable under subsection (a) shall be reduced 
     by the amount of such credit (determined without regard to 
     subsection (c)).
       ``(2) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit.
       ``(3) Property used outside united states, etc., not 
     qualified.--No credit shall be allowed under subsection (a) 
     with respect to any property referred to in section 50(b)(1) 
     or with respect to the portion of the cost of any property 
     taken into account under section 179.
       ``(4) Election not to take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects to not have this section apply to such vehicle.
       ``(5) Property used by tax-exempt entity; interaction with 
     air quality and motor vehicle safety standards.--Rules 
     similar to the rules of paragraphs (6) and (10) of section 
     30B(h) shall apply for purposes of this section.''.
       (b) Coordination With Alternative Motor Vehicle Credit.--
     Section 30B(d)(3) of such Code is amended by adding at the 
     end the following new subparagraph:
       ``(D) Exclusion of plug-in vehicles.--Any vehicle with 
     respect to which a credit is allowable under section 30D 
     (determined without regard to subsection (c) thereof) shall 
     not be taken into account under this section.''.
       (c) Credit Made Part of General Business Credit.--Section 
     38(b) of such Code is amended--
       (1) by striking ``and'' each place it appears at the end of 
     any paragraph,
       (2) by striking ``plus'' each place it appears at the end 
     of any paragraph,
       (3) by striking the period at the end of paragraph (31) and 
     inserting ``, plus'', and
       (4) by adding at the end the following new paragraph:
       ``(32) the portion of the new qualified plug-in electric 
     drive motor vehicle credit to which section 30D(c)(1) 
     applies.''.
       (d) Conforming Amendments.--
       (1)(A) Section 24(b)(3)(B) of such Code is amended by 
     striking ``and 25D'' and inserting ``25D, and 30D''.
       (B) Section 25(e)(1)(C)(ii) of such Code is amended by 
     inserting ``30D,'' after ``25D,''.
       (C) Section 25B(g)(2) of such Code is amended by striking 
     ``and 25D'' and inserting ``, 25D, and 30D''.
       (D) Section 26(a)(1) of such Code is amended by striking 
     ``and 25D'' and inserting ``25D, and 30D''.
       (E) Section 1400C(d)(2) of such Code is amended by striking 
     ``and 25D'' and inserting ``25D, and 30D''.
       (2) Section 1016(a) of such Code is amended by striking 
     ``and'' at the end of paragraph (35), by striking the period 
     at the end of paragraph (36) and inserting ``, and'', and by 
     adding at the end the following new paragraph:

[[Page 16950]]

       ``(37) to the extent provided in section 30D(f)(1).''.
       (3) Section 6501(m) of such Code is amended by inserting 
     ``30D(f)(4),'' after ``30C(e)(5),''.
       (4) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 of such Code is amended by adding 
     at the end the following new item:

``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.

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

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

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

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

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

         Subtitle B--Tapping America's Ingenuity and Creativity

     SEC. 211. DEFINITIONS.

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

     SEC. 212. STATEMENT OF POLICY.

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

     SEC. 213. PRIZE AUTHORITY.

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

     SEC. 214. ELIGIBILITY.

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

     SEC. 215. INTELLECTUAL PROPERTY.

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

     SEC. 216. WAIVER OF LIABILITY.

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

     SEC. 217. AUTHORIZATION OF APPROPRIATIONS.

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

[[Page 16951]]



     SEC. 218. NEXT GENERATION AUTOMOBILE PRIZE PROGRAM.

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

     SEC. 219. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.

       (a) Definitions.--In this section:
       (1) Advanced battery.--The term ``advanced battery'' means 
     an electrical storage device suitable for vehicle 
     applications.
       (2) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the cost of engineering tasks 
     relating to--
       (A) incorporation of qualifying components into the design 
     of advanced batteries; and
       (B) design of tooling and equipment and developing 
     manufacturing processes and material suppliers for production 
     facilities that produce qualifying components or advanced 
     batteries.
       (b) Advanced Battery Manufacturing Facility.--The Secretary 
     shall provide facility funding awards under this section to 
     advanced battery manufacturers to pay not more than 30 
     percent of the cost of reequipping, expanding, or 
     establishing a manufacturing facility in the United States to 
     produce advanced batteries.
       (c) Period of Availability.--An award under subsection (b) 
     shall apply to--
       (1) facilities and equipment placed in service before 
     December 30, 2020; and
       (2) engineering integration costs incurred during the 
     period beginning on the date of enactment of this Act and 
     ending on December 30, 2020.
       (d) Direct Loan Program.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this subtitle, and subject to the availability 
     of appropriated funds, the Secretary shall carry out a 
     program to provide a total of not more than $100,000,000 in 
     loans to eligible individuals and entities (as determined by 
     the Secretary) for the costs of activities described in 
     subsection (b).
       (2) Selection of eligible projects.--The Secretary shall 
     select eligible projects to receive loans under this 
     subsection in cases in which, as determined by the Secretary, 
     the award recipient--
       (A) is financially viable without the receipt of additional 
     Federal funding associated with the proposed project;
       (B) will provide sufficient information to the Secretary 
     for the Secretary to ensure that the qualified investment is 
     expended efficiently and effectively; and
       (C) has met such other criteria as may be established and 
     published by the Secretary.
       (3) Rates, terms, and repayment of loans.--A loan provided 
     under this subsection--
       (A) shall have an interest rate that, as of the date on 
     which the loan is made, is equal to the cost of funds to the 
     Department of the Treasury for obligations of comparable 
     maturity;
       (B) shall have a term equal to the lesser of--
       (i) the projected life, in years, of the eligible project 
     to be carried out using funds from the loan, as determined by 
     the Secretary; and
       (ii) 25 years;
       (C) may be subject to a deferral in repayment for not more 
     than 5 years after the date on which the eligible project 
     carried out using funds from the loan first begins 
     operations, as determined by the Secretary; and
       (D) shall be made by the Federal Financing Bank.
       (e) Fees.--The cost of administering a loan made under this 
     section shall not exceed $100,000.
       (f) Set Aside for Small Manufacturers.--
       (1) Definition of covered firm.--In this subsection, the 
     term ``covered firm'' means a firm that--
       (A) employs fewer than 500 individuals; and
       (B) manufactures automobiles or components of automobiles.
       (2) Set aside.--Of the amount of funds used to provide 
     awards for each fiscal year under subsection (b), the 
     Secretary shall use not less than 10 percent to provide 
     awards to covered firms or consortia led by a covered firm.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated from the American Energy Trust Fund such 
     sums as are necessary to carry out this section for each of 
     fiscal years 2009 through 2013.

              Subtitle C--Home and Business Tax Incentives

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

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

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

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

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

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

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

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

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

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

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

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

     SEC. 227. HOME ENERGY AUDITS.

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

     ``SEC. 25E. HOME ENERGY AUDITS.

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

[[Page 16952]]

       (3) Section 24(b)(3)(B) of such Code is amended by striking 
     ``and 25B'' and inserting ``, 25B, and 25E''.
       (4) Clauses (i) and (ii) of section 25(e)(1)(C) of such 
     Code are each amended by inserting ``25E,'' after ``25D,''.
       (5) Section 25B(g)(2) of such Code is amended by striking 
     ``section 23'' and inserting ``sections 23 and 25E''.
       (6) Section 25D(c)(1) of such Code is amended by inserting 
     ``and section 25E'' after ``this section''.
       (7) Section 25D(c)(2) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (8) The table of sections for subpart A of part IV of 
     subchapter A chapter 1 of such Code is amended by inserting 
     after the item relating to section 25D the following new 
     item:

``Sec. 25E. Home energy audits.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to amounts paid or incurred in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Application of egtrra sunset.--The amendments made by 
     paragraphs (1) and (3) of subsection (b) shall be subject to 
     title IX of the Economic Growth and Tax Relief Reconciliation 
     Act of 2001 in the same manner as the provisions of such Act 
     to which such amendments relate.

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

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

              Subtitle D--Refinery Permit Process Schedule

     SEC. 231. SHORT TITLE.

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

     SEC. 232. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``Administrator'' means the Administrator of 
     the Environmental Protection Agency;
       (2) the term ``applicant'' means a person who (with the 
     approval of the governor of the State, or in the case of 
     Native American tribes or tribal territories the designated 
     leader of the tribe or tribal community, where the proposed 
     refinery would be located) is seeking a Federal refinery 
     authorization;
       (3) the term ``biomass'' has the meaning given that term in 
     section 932(a)(1) of the Energy Policy Act of 2005;
       (4) the term ``Federal refinery authorization''--
       (A) means any authorization required under Federal law, 
     whether administered by a Federal or State administrative 
     agency or official, with respect to siting, construction, 
     expansion, or operation of a refinery; and
       (B) includes any permits, licenses, special use 
     authorizations, certifications, opinions, or other approvals 
     required under Federal law with respect to siting, 
     construction, expansion, or operation of a refinery;
       (5) the term ``refinery'' means--
       (A) a facility designed and operated to receive, load, 
     unload, store, transport, process, and refine crude oil by 
     any chemical or physical process, including distillation, 
     fluid catalytic cracking, hydrocracking, coking, alkylation, 
     etherification, polymerization, catalytic reforming, 
     isomerization, hydrotreating, blending, and any combination 
     thereof, in order to produce gasoline or distillate;
       (B) a facility designed and operated to receive, load, 
     unload, store, transport, process, and refine coal by any 
     chemical or physical process, including liquefaction, in 
     order to produce gasoline or diesel as its primary output; or
       (C) a facility designed and operated to receive, load, 
     unload, store, transport, process (including biochemical, 
     photochemical, and biotechnology processes), and refine 
     biomass in order to produce biofuel; and
       (6) the term ``State'' means a State, the District of 
     Columbia, the Commonwealth of Puerto Rico, and any other 
     territory or possession of the United States.

     SEC. 233. STATE ASSISTANCE.

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

     SEC. 234. REFINERY PROCESS COORDINATION AND PROCEDURES.

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

[[Page 16953]]

     failure to act described in paragraph (1) has occurred and 
     that such failure to act would jeopardize timely completion 
     of the entire schedule as established in the memorandum of 
     agreement, such applicant or other party may bring a cause of 
     action under this subsection.
       (3) Court action.--If an action is brought under paragraph 
     (2), the Court shall review whether the parties to the 
     memorandum of agreement have been acting in good faith, 
     whether the applicant has been cooperating fully with the 
     agencies that are responsible for issuing a Federal refinery 
     authorization, and any other relevant materials in the 
     consolidated record. Taking into consideration those factors, 
     if the Court finds that a failure to act described in 
     paragraph (1) has occurred, and that such failure to act 
     would jeopardize timely completion of the entire schedule as 
     established in the memorandum of agreement, the Court shall 
     establish a new schedule that is the most expeditious 
     coordinated schedule possible for completion of proceedings, 
     consistent with the full substantive and procedural review 
     required by Federal law. The court may issue orders to 
     enforce any schedule it establishes under this paragraph.
       (4) Federal coordinator's action.--When any civil action is 
     brought under this subsection, the Federal coordinator shall 
     immediately file with the Court the consolidated record 
     compiled by the Federal coordinator pursuant to subsection 
     (c).
       (5) Expedited review.--The Court shall set any civil action 
     brought under this subsection for expedited consideration.

     SEC. 235. DESIGNATION OF CLOSED MILITARY BASES.

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

     SEC. 236. SAVINGS CLAUSE.

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

     SEC. 237. REFINERY REVITALIZATION REPEAL.

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

               TITLE III--NEW AND EXPANDING TECHNOLOGIES

                     Subtitle A--Alternative Fuels

     SEC. 301. REPEAL.

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

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

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

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

       Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 
     16512) is amended by adding at the end the following new 
     subsection:
       ``(k) Standby Loans for Qualifying CTL Projects.--
       ``(1) Definitions.--For purposes of this subsection:
       ``(A) Cap price.--The term `cap price' means a market price 
     specified in the standby loan agreement above which the 
     project is required to make payments to the United States.
       ``(B) Full term.--The term `full term' means the full term 
     of a standby loan agreement, as specified in the agreement, 
     which shall not exceed the lesser of 30 years or 90 percent 
     of the projected useful life of the project (as determined by 
     the Secretary).
       ``(C) Market price.--The term `market price' means the 
     average quarterly price of a petroleum price index specified 
     in the standby loan agreement.
       ``(D) Minimum price.--The term `minimum price' means a 
     market price specified in the standby loan agreement below 
     which the United States is obligated to make disbursements to 
     the project.
       ``(E) Output.--The term `output' means some or all of the 
     liquid or gaseous transportation fuels produced from the 
     project, as specified in the loan agreement.
       ``(F) Primary term.--The term `primary term' means the 
     initial term of a standby loan agreement, as specified in the 
     agreement, which shall not exceed the lesser of 20 years or 
     75 percent of the projected useful life of the project (as 
     determined by the Secretary).
       ``(G) Qualifying ctl project.--The term `qualifying CTL 
     project' means--
       ``(i) a commercial-scale project that converts coal to one 
     or more liquid or gaseous transportation fuels; or
       ``(ii) not more than one project at a facility that 
     converts petroleum refinery waste products, including 
     petroleum coke, into one or more liquids or gaseous 
     transportation fuels,

     that demonstrates the capture, and sequestration or disposal 
     or use of, the carbon dioxide produced in the conversion 
     process, and that, on the basis of a carbon dioxide 
     sequestration plan prepared by the applicant, is certified by 
     the Administrator of the Environmental Protection Agency, in 
     consultation with the Secretary, as producing fuel with life 
     cycle carbon dioxide emissions at or below the average life 
     cycle carbon dioxide emissions for the same type of fuel 
     produced at traditional petroleum based facilities with 
     similar annual capacities.
       ``(H) Standby loan agreement.--The term `standby loan 
     agreement' means a loan agreement entered into under 
     paragraph (2).
       ``(2) Standby loans.--
       ``(A) Loan authority.--The Secretary may enter into standby 
     loan agreements with not more than six qualifying CTL 
     projects, at least one of which shall be a project jointly or 
     in part owned by two or more small coal producers. Such an 
     agreement--
       ``(i) shall provide that the Secretary will make a direct 
     loan (within the meaning of section 502(1) of the Federal 
     Credit Reform Act of 1990) to the qualifying CTL project; and
       ``(ii) shall set a cap price and a minimum price for the 
     primary term of the agreement.
       ``(B) Loan disbursements.--Such a loan shall be disbursed 
     during the primary term of such agreement whenever the market 
     price falls below the minimum price. The

[[Page 16954]]

     amount of such disbursements in any calendar quarter shall be 
     equal to the excess of the minimum price over the market 
     price, times the output of the project (but not more than a 
     total level of disbursements specified in the agreement).
       ``(C) Loan repayments.--The Secretary shall establish terms 
     and conditions, including interest rates and amortization 
     schedules, for the repayment of such loan within the full 
     term of the agreement, subject to the following limitations:
       ``(i) If in any calendar quarter during the primary term of 
     the agreement the market price is less than the cap price, 
     the project may elect to defer some or all of its repayment 
     obligations due in that quarter. Any unpaid obligations will 
     continue to accrue interest.
       ``(ii) If in any calendar quarter during the primary term 
     of the agreement the market price is greater than the cap 
     price, the project shall meet its scheduled repayment 
     obligation plus deferred repayment obligations, but shall not 
     be required to pay in that quarter an amount that is more 
     than the excess of the market price over the cap price, times 
     the output of the project.
       ``(iii) At the end of the primary term of the agreement, 
     the cumulative amount of any deferred repayment obligations, 
     together with accrued interest, shall be amortized (with 
     interest) over the remainder of the full term of the 
     agreement.
       ``(3) Profit-sharing.--The Secretary is authorized to enter 
     into a profit-sharing agreement with the project at the time 
     the standby loan agreement is executed. Under such an 
     agreement, if the market price exceeds the cap price in a 
     calendar quarter, a profit-sharing payment shall be made for 
     that quarter, in an amount equal to--
       ``(A) the excess of the market price over the cap price, 
     times the output of the project; less
       ``(B) any loan repayments made for the calendar quarter.
       ``(4) Compliance with federal credit reform act.--
       ``(A) Upfront payment of cost of loan.--No standby loan 
     agreement may be entered into under this subsection unless 
     the project makes a payment to the United States that the 
     Office of Management and Budget determines is equal to the 
     cost of such loan (determined under 502(5)(B) of the Federal 
     Credit Reform Act of 1990). Such payment shall be made at the 
     time the standby loan agreement is executed.
       ``(B) Minimization of risk to the government.--In making 
     the determination of the cost of the loan for purposes of 
     setting the payment for a standby loan under subparagraph 
     (A), the Secretary and the Office of Management and Budget 
     shall take into consideration the extent to which the minimum 
     price and the cap price reflect historical patterns of 
     volatility in actual oil prices relative to projections of 
     future oil prices, based upon publicly available data from 
     the Energy Information Administration, and employing 
     statistical methods and analyses that are appropriate for the 
     analysis of volatility in energy prices.
       ``(C) Treatment of payments.--The value to the United 
     States of a payment under subparagraph (A) and any profit-
     sharing payments under paragraph (3) shall be taken into 
     account for purposes of section 502(5)(B)(iii) of the Federal 
     Credit Reform Act of 1990 in determining the cost to the 
     Federal Government of a standby loan made under this 
     subsection. If a standby loan has no cost to the Federal 
     Government, the requirements of section 504(b) of such Act 
     shall be deemed to be satisfied.
       ``(5) Other provisions.--
       ``(A) No double benefit.--A project receiving a loan under 
     this subsection may not, during the primary term of the loan 
     agreement, receive a Federal loan guarantee under subsection 
     (a) of this section, or under other laws.
       ``(B) Subrogation, etc.--Subsections (g)(2) (relating to 
     subrogation), (h) (relating to fees), and (j) (relating to 
     full faith and credit) shall apply to standby loans under 
     this subsection to the same extent they apply to loan 
     guarantees.''.

                       Subtitle B--Tax Provisions

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

       (a) Credit Made Permanent.--
       (1) In general.--Subsection (d) of section 45 of the 
     Internal Revenue Code of 1986 (relating to qualified 
     facilities) is amended--
       (A) by striking ``and before January 1, 2009'' each place 
     it occurs,
       (B) by striking ``, and before January 1, 2009'' in 
     paragraphs (1) and (2)(A)(i), and
       (C) by striking ``before January 1, 2009'' in paragraph 
     (10).
       (2) Open-loop biomass facilities.--Subparagraph (A) of 
     section 45(d)(3) of such Code is amended to read as follows:
       ``(A) In general.--In the case of a facility using open-
     loop biomass to produce electricity, the term `qualified 
     facility' means any facility owned by the taxpayer which is 
     originally placed in service after October 22, 2004.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to electricity produced and sold after December 
     31, 2008, in taxable years ending after such date.
       (b) Sales of Net Electricity to Regulated Public Utilities 
     Treated as Sales to Unrelated Persons.--Paragraph (4) of 
     section 45(e) of such Code is amended by adding at the end 
     the following new sentence: ``The net amount of electricity 
     sold by any taxpayer to a regulated public utility (as 
     defined in section 7701(a)(33)) shall be treated as sold to 
     an unrelated person.''.
       (c) Allowance Against Alternative Minimum Tax.--
       (1) In general.--Clause (ii) of section 38(c)(4)(B) of such 
     Code (relating to specified credits) is amended by striking 
     ``produced--'' and all that follows and inserting ``produced 
     at a facility which is originally placed in service after the 
     date of the enactment of this paragraph.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 312. EXTENSION OF ENERGY CREDIT.

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

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

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

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

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

                          Subtitle C--Nuclear

     SEC. 321. USE OF FUNDS FOR RECYCLING.

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

[[Page 16955]]

     could be used in the manufacture of nuclear weapons.''.

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

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

     SEC. 323. NUCLEAR WASTE FUND BUDGET STATUS.

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

     SEC. 324. WASTE CONFIDENCE.

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

     SEC. 325. ASME NUCLEAR CERTIFICATION CREDIT.

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

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

       ``(a) In General.--For purposes of section 38, the ASME 
     Nuclear Certification credit determined under this section 
     for any taxable year is an amount equal to 15 percent of the 
     qualified nuclear expenditures paid or incurred by the 
     taxpayer.
       ``(b) Qualified Nuclear Expenditures.--For purposes of this 
     section, the term `qualified nuclear expenditures' means any 
     expenditure related to--
       ``(1) obtaining a certification under the American Society 
     of Mechanical Engineers Nuclear Component Certification 
     program, or
       ``(2) increasing the taxpayer's capacity to construct, 
     fabricate, assemble, or install components--
       ``(A) for any facility which uses nuclear energy to produce 
     electricity, and
       ``(B) with respect to the construction, fabrication, 
     assembly, or installation of which the taxpayer is certified 
     under such program.
       ``(c) Timing of Credit.--The credit allowed under 
     subsection (a) for any expenditures shall be allowed--
       ``(1) in the case of a qualified nuclear expenditure 
     described in subsection (b)(1), for the taxable year of such 
     certification, and
       ``(2) in the case of any other qualified nuclear 
     expenditure, for the taxable year in which such expenditure 
     is paid or incurred.
       ``(d) Special Rules.--
       ``(1) Basis adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section for an expenditure, 
     the increase in basis which would result (but for this 
     subsection) for such expenditure shall be reduced by the 
     amount of the credit allowed under this section.
       ``(2) Denial of double benefit.--No deduction shall be 
     allowed under this chapter for any amount taken into account 
     in determining the credit under this section.
       ``(e) Termination.--This section shall not apply to any 
     expenditures paid or incurred in taxable years beginning 
     after December 31, 2019.''.
       (b) Conforming Amendments.--(1) Subsection (b) of section 
     38 is amended by striking ``plus'' at the end of paragraph 
     (30), by striking the period at the end of paragraph (31) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(32) the ASME Nuclear Certification credit determined 
     under section 45O(a).''.
       (2) Subsection (a) of section 1016 (relating to adjustments 
     to basis) is amended by striking ``and'' at the end of 
     paragraph (36), by striking the period at the end of 
     paragraph (37) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(38) to the extent provided in section 45O(e)(1).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2007.

    Subtitle D--American Renewable and Alternative Energy Trust Fund

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

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

                               H.R. 6599

                        Offered By: Mrs. Capito

       Amendment No. 25: Page 34, line 21, after the dollar 
     amount, insert ``(increased by $100,000,000)''.
       Page 38, line 23, after the dollar amount, insert 
     ``(reduced by $70,000,000)''.
       Page 41, line 22, after the dollar amount, insert 
     ``(reduced by $30,000,000)''.

                               H.R. 6599

                        Offered By: Mrs. Capito

       Amendment No. 26: Page 33, line 18, insert before the 
     period the following: ``: Provided further, That the 
     Secretary of Veterans Affairs shall increase the mileage 
     reimbursement rate for veterans by an additional 6.5 cents, 
     to 41.5 cents per mile''.

                               H.R. 6599

                        Offered By: Mr. Stearns

       Amendment No. 27: Page 36, line 22, insert before the 
     period at the end the following: ``: Provided further, that 
     using funds made available under this heading, the Secretary 
     of Veterans Affairs shall offer veterans an Internet website 
     with a comprehensive list of employment opportunities 
     throughout the United States so that veterans are better able 
     to secure employment''.