[Congressional Record (Bound Edition), Volume 154 (2008), Part 13]
[House]
[Pages 17513-17539]
[From the U.S. Government Publishing Office, www.gpo.gov]




  MILITARY CONSTRUCTION AND VETERANS AFFAIRS APPROPRIATIONS ACT, 2009

  The committee resumed its sitting.
  Mr. McCARTHY of California. Mr. Chairman, I move to strike the last 
word.
  The Acting CHAIRMAN. The gentleman is recognized for 5 minutes.
  Mr. McCARTHY of California. I rise today to enter into a colloquy 
with my colleagues, the chairman of the Military Construction 
Subcommittee, Mr. Edwards, and Ranking Member Wamp, about an issue of 
significant importance to my constituents in Ridgecrest, California.
  China Lake, the large naval installation in Ridgecrest, was slated to 
become the Navy's Center of Excellence for weapons development as part 
of the 2005 round of Base Realignment and Closure. This news confirmed 
what those of us familiar with China Lake have always known; China 
Lake's location, access to airspace, 350 days of flying a year and 
exceptional personnel make it an excellent place for the military to 
develop the tools for the men and women serving on the front line.
  Unfortunately, since the recommendation was made, I have had concerns 
that it is not being implemented as consistently with the original 
recommendation as it should be. I am concerned that the number of jobs 
slated to move and overall construction plan has decreased more than 
would be expected.
  For these reasons, I come to the floor today to ask the chairman that 
he work with me to ensure that Congress continues its oversight of the 
BRAC implementation process.
  I would yield to the subcommittee chairman.
  Mr. EDWARDS of Texas. I want to thank Mr. McCarthy for mentioning 
this issue. I was one of those several years ago who raised serious 
questions about whether BRAC was adequately funded or not. We were told 
it was. It turns out construction costs have skyrocketed in fact above 
original estimates.
  I would look forward to working with the gentleman to see that our 
subcommittee, working with Mr. Wamp in good faith, exercises the 
oversight that we have a responsibility to carry out to see that BRAC 
dollars are spent, spent wisely, spent efficiently, and that we do 
everything humanly possible to keep the BRAC process on time.
  Mr. WAMP. If the gentleman will yield, I thank the gentleman from 
California for raising this issue before the House tonight. As the 
gentleman has seen firsthand, dealing with this multiyear, 
multibillion-dollar BRAC process, some of the business plans that were 
initially adopted have changed. He is doing everything he can to make 
sure that the Department of Defense sticks as close as possible to 
those plans. I join Chairman Edwards and commit to working to ensure 
that we conduct proper oversight of the BRAC process.
  I want to thank the chairman for this commitment to fully fund the 
BRAC process, which was a major point of discussion throughout our 100 
hours and 19 hearings this year, to make sure BRAC is fully funded on 
time.
  I am grateful the gentleman from California has taken this initiative 
tonight.
  Mr. McCARTHY of California. I want to thank Chairman Edwards and 
Ranking Member Wamp for their leadership on this issue, and I yield 
back the balance of my time.


             Amendment No. 24 Offered by Mr. Bishop of Utah

  Mr. BISHOP of Utah. Mr. Chairman, I would ask unanimous consent to 
offer the amendment of Mr. Boehner, the minority leader, at this point 
in the reading.
  The Acting CHAIRMAN. Is there objection to the request of the 
gentleman from Utah?
  Mr. OBEY. Reserving the right to object, Mr. Chairman, it is 9:15 at 
night. We don't know how long it is going to take us to complete this 
bill tonight. And what we are being asked to do, as I understand it, is 
to give unanimous consent so that the gentleman may be able to offer an 
amendment which he otherwise would not be able to offer because we have 
already moved past that point in the bill. That is my understanding.
  Mr. BISHOP of Utah. Would the gentleman yield to a question?
  Mr. OBEY. Go ahead.
  Mr. BISHOP of Utah. It was our understanding as I was waiting for the 
proper time to offer this amendment that the body would take the two 
colloquies first, and then we would have the opportunity of presenting 
this in this form. So I think actually going through this form in the 
long run was probably more timesaving than doing other kinds of actions 
if this was not allowed.
  Mr. OBEY. Mr. Chairman, continuing under my reservation, I am not 
interested in the reason why the gentleman's request is tardy. I simply 
want to repeat, it is my understanding that what the gentleman is 
asking us to do

[[Page 17514]]

is to allow him to offer an amendment which we have already passed in 
the reading of the bill.
  I will not object to that request, provided we have certain 
understandings about how long we are going to drone on on these issues. 
Since this is already a non-germane amendment, I want to make sure I 
understand what the full request is going to be.
  My understanding is that Mr. Burgess also has an amendment which he 
wants to offer which has also been passed in the reading; is that 
correct?

                              {time}  2115

  Mr. BISHOP of Utah. I don't know that one.
  The Acting CHAIRMAN. I believe the gentleman is correct.
  Mr. OBEY. If that is the correct understanding, then I simply want to 
make certain that if we grant this request, that there will be only one 
speaker on that side on the subject of the amendment that the gentleman 
from Utah wants to offer and one speaker on that side of the aisle on 
the amendment that Mr. Burgess desires to offer.
  Mr. BISHOP of Utah. If the gentleman will yield on that issue? That 
was always our intent. I think I am enough.
  Mr. OBEY. But is that the understanding?
  Mr. BISHOP of Utah. That is my understanding.
  Mr. WAMP. If the chairman would yield.
  Mr. OBEY. I will be happy to yield.
  Mr. WAMP. I just want to say, in all fairness, Mr. Chairman, the 
Chair allowed the reader to read past this point with people on their 
feet for the colloquy, with an understanding on both sides that the 
colloquy would go first and then we would start this point in the bill.
  The reading was an accidental reading, not that someone wasn't here 
ready to offer the amendments. Mr. Burgess was sitting right here. And 
points of order are going to be raised against both. So, with all due 
respect, Mr. Chairman, if we can get on with it, we will dispose of it 
quickly.
  Mr. OBEY. If I can take back the time. I know Mr. Burgess was here. I 
saw him sitting here for a considerable length of time, and I am not 
trying to pin a tail on anybody. My point is simply that this has not 
been a day noted for its courtesy across the aisle. And I am perfectly 
willing to grant courtesy, provided that we have a clear understanding 
that the House is not going to be abused, in terms of its time, in the 
process.
  With that, Mr. Chairman, I withdraw my reservation.
  The Acting CHAIRMAN. Without objection, the gentleman from Utah is 
the designee of the gentleman from Ohio and may offer his amendment at 
this time.
  There was no objection.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 24 offered by Mr. Bishop of Utah:
         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 17515]]



     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 17516]]

     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 17517]]

     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 17518]]

       ``(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 17519]]

       ``(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 17520]]

     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 17521]]

     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 17522]]

     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 17523]]

       (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 17524]]

       (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 17525]]

       ``(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 17526]]



     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 17527]]

       (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 17528]]

     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 17529]]

     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 17530]]

     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.

  Mr. EDWARDS of Texas. Mr. Chairman, I reserve a point of order on the 
gentleman's amendment.
  The Acting CHAIRMAN. A point of order is reserved.
  The gentleman from Utah is recognized for 5 minutes.
  Mr. BISHOP of Utah. Thank you, Mr. Chairman. I appreciate the 
courtesies, real or unreal, that have been granted to this point so 
far.
  If you go back to the movie The Natural, there is a wonderful scene 
where this mythical team, the New York Knights, are on a losing 
tradition, so they bring a sports psychologist down to try and talk to 
the team. And as the sports psychologist is droning on to them, he 
says, ``You know, men, the mind is a strange thing. What is losing? 
Losing is a disease as contagious as the bubonic plague, attacking one 
but infecting all. And consider yourself, if you are on a ship at sea 
gently rocking, gently rocking.''
  And at that point, Roy Hobbs can't take it anymore, so he bolts out 
of there because he realizes that if you are in a losing situation, 
talking about it doesn't help, only action on the field of play will 
help.
  And when given the chance to go on the field and play, he pounded the 
ball and led them to victory after victory after victory.
  And what we are talking about simply here tonight is what Americans 
want, which is for us to do something here on this playing field on the 
issue of energy and energy security.
  We are fighting for the people of my district who will be faced with 
a 30 percent increase in heating costs this winter. We are fighting for 
the 1,100 people who lost their jobs with an airline because 100 planes 
were not able to be provided the fuel to fly. We are flying for an 
Ethiopian-born cab driver here in Washington, D.C. who, for the first

[[Page 17531]]

time in his life since coming here, he cannot meet his kids at home 
because he has to drive two extra hours every night just to make up 
what he loses in these fees. We are fighting for a father in Virginia 
who can no longer go to his father-and-son outings because he can't 
afford the gasoline to drive there. We are talking about the Clark 
County School District which had an unexpected 62 percent of its budget 
all related to energy costs, and that all comes out of future salaries 
of the teachers of those poor areas.
  If you are rich, this problem is simply an annoyance. Only 11 cents 
out of $1 goes to energy. But if you are on the poverty line, 50 cents 
of every dollar goes to energy. And that 50 cents that comes out of the 
pocket of a poor person or somebody on a fixed income is money that 
cannot be spent on luxuries like tuna casseroles or Hamburger Helper.
  We are a country that has the technology and the ability to solve 
this problem. We are a country with a proud history of solving our 
problems with technology. Since 1784 when we invented the bifocals, to 
1867 when we changed the world by inventing the typewriter and changed 
the West by inventing barbed wire and changed our lives by inventing 
toilet paper in the same year, to 1945 with the microwave, to even soft 
contacts today. We have had the technology to be able to solve this 
energy problem. And before us is an amendment which will reward 
Americans for their efforts of conservation in a way that we have not 
done in a long time. It will increase production of our energy sources 
by recognizing that not only do we have to have the fossil fuels 
increased, but all the royalties that we will now make by increased 
production in oil and gas and oil shale and coal will be used to fund 
the improvements and the innovations and the research for alternative 
energy so that we can look forward to the future.
  We recognize that we have to do something with our infrastructure. We 
do not have the refinery capacity that we need. We recognize that 
Washington is not the seat of all wisdom, that bringing an expert into 
a room here is not going to solve our problems; but what we need to do 
is unlock the brilliance within Americans and within what they have to 
offer to the American people. By offering prizes, we can find solutions 
that have been plaguing and missing us for years.
  In 1714, the British didn't have a way of mapping their waters in the 
navigation, so they offered a $20,000 prize and a clock maker came up 
with the system of longitude and latitude that we still use today.
  In 1810, Napoleon needed a way to feed his troops. He gave a 12,000 
franc prize to find somebody to use the vacuum-packed processes we 
still use today.
  Lindbergh flew across the ocean to get a prize from a newspaper, and 
it spawned a $32 billion industry.
  We have that capability today. We have the Roy Hobbs who realizes 
that the only way you solve the problem is get on the playing field and 
do it.
  We have the ability to solve our problem today if we just come to 
this playing field and do it, and to require a vote on this amendment 
so that we can fulfill the words of Daniel Webster that are looking at 
us every day we come here to inspire us, to tell us to take our 
resources and to build from that, and to do something that is worthy to 
be remembered.
  This amendment would be worthy to be remembered, and I urge that we 
accept this amendment and I urge that we have a vote on this amendment. 
This may be the only chance we actually have to have an up or down vote 
on this particular amendment, which impacts the lives of everybody but 
especially the most vulnerable in our society.
  Mr. Chairman, may I ask how much time remains?
  The Acting CHAIRMAN. The gentleman has 15 seconds.
  Mr. BISHOP of Utah. Mr. Chairman, I yield back the balance of my 
time.
  Mr. EDWARDS of Texas. Mr. Chairman, I rise in opposition to the 
amendment.
  The Acting CHAIRMAN. The gentleman is recognized for 5 minutes.
  Mr. EDWARDS of Texas. Mr. Chairman, this is a bill to provide health 
care and benefits for America's veterans and their families, America's 
service men and women and their families. This is not an energy bill. 
The speaker that just spoke knows it, I know it, and the veterans of 
America know it.
  Let me read to you from the VFW Action Alert from 3 days ago.
  ``Some Members of Congress may try to attach nonrelated items to the 
bill which would hold up or even defeat final passage. We ask you to 
contact your representatives today and urge them to pass a clean VA-
MilCon Appropriations bill. Tell them that further delay hurts our 
veterans and our troops on the ground. Let them know that we expect 
them to reaffirm their priorities by doing the right thing and passing 
the funding bill quickly.''
  Mr. BISHOP of Utah. Mr. Chairman, I apologize for interrupting; I 
just want to be clear. Is the gentleman speaking to a point of order, 
or is he speaking to the amendment itself? I would make the point of 
order the gentleman is not speaking----
  Mr. EDWARDS of Texas. I am speaking in opposition to the amendment.
  The Acting CHAIRMAN. The gentleman is recognized on the amendment.
  The gentleman will continue.
  Mr. EDWARDS of Texas. Mr. Chairman, let me say to this body what the 
Disabled American Veterans said about amendments such as this. ``It is 
our strongest recommendation that this bill be unfettered with 
nongermane amendments. We observe in media accounts that some Members 
of the body may wish to offer such amendments, and we fear that if 
these amendments are ruled in order for floor debate, they may bring 
down the bill. Accordingly, we ask that you work with the majority 
leader and minority leader to ensure this key bill, one that impacts 
one in every four Americans and is a vital priority for DAV and our 
membership, is passed in the most orderly manner without the 
distractions attendant to the political season or party differences on 
unrelated national priorities.''
  Mr. Chairman, let me tell you what the Veterans of Foreign Wars have 
said about this type of amendment, and I quote from their newsletter 
from 6 days ago. ``We believe attaching them (nongermane amendments) to 
this critical veterans' bill could jeopardize its passage by 
unnecessarily delaying it or even grinding debate completely to a halt. 
This is unacceptable.''
  Mr. Chairman, I have to make a choice on this amendment to stand with 
the gentleman and Mr. Boehner, or stand with millions of America's 
veterans. For me, that is an easy choice. I will stand with our 
veterans, fight for a clean VA military construction bill that was put 
in good faith together on a bipartisan basis. The energy debate should 
be left for another day. Let's take care of our veterans. Let's honor 
our veterans, our troops, and their families. They deserve no less.
  The Acting CHAIRMAN. Does the gentleman continue to reserve his point 
of order?
  Mr. EDWARDS of Texas. Yes, I do.
  Mr. OBEY. Mr. Chairman. I move to strike the last word.
  The Acting CHAIRMAN. The gentleman from Wisconsin is recognized for 5 
minutes.
  Mr. OBEY. Mr. Chairman, one month ago when we were trying to add 
funding to provide the largest expansion of the GI bill in the history 
of the bill since it was first approved in 1945, the House Minority 
Leader issued the following statement. He said, ``House Republicans 
believe that loading up the troop funding bill with billions upon 
billions of unrelated Washington spending is reckless and dangerous.''
  Now, it was difficult for me at the time to understand how adding 
education benefits for our troops was unrelated to funding the troops, 
but today we are now being asked to consider a nongermane amendment 
which would bring a divisive energy debate into legislation which is 
trying to provide for the needs of our military families around the 
country and which is trying to provide the needs in the health care 
area for our veterans.

[[Page 17532]]

  If I were to debate energy in the middle of this bill, I would point 
out that one of the reasons that we have $4 gas today is that we have 
an administration which has pursued fiscal policies that have borrowed 
almost $2 trillion to finance tax cuts and to finance the war in Iraq, 
and that has contributed to driving down the value of the dollar, which 
has in turn raised the cost of purchasing a gallon of gasoline by 30 
percent.
  If I were to debate energy on this bill, I would point out that, 
since Jimmy Carter left office, we have had a succession of 
administrations running from Reagan to Bush that systemically presided 
over the gutting of energy research done by the government on 
alternative energy sources.
  I would also point out that over the last 8 years we have had an 
energy policy run by an administration dominated by two oil men in the 
President and the Vice President.
  I would point out that their national security advisor, Secretary 
Rice, served on Chevron's board of directors for 10 years and even had 
an oil tanker named after her; that Interior Secretary Gale Norton 
started her career at a think tank funded by energy companies; commerce 
Secretary Don Evans was former president and CEO of a Texas oil 
company; Deputy Interior Secretary Griles was a former lobbyist for the 
oil, chemical, and mining industry, et cetera, et cetera, et cetera,
  I would also point out that we on this side of the aisle have worked 
to pass increased fuel economy standards for automobiles; we have voted 
to eliminate $14 billion in special tax breaks for oil and gas 
companies; we voted to crack down on speculation which has driven up 
the cost of oil and gas at the expense of the American people. I would 
have pointed out that we have voted to get more oil from the National 
Petroleum Reserve in Alaska. And, I would be pointing out that we have 
also asked the President to release oil from the Strategic Petroleum 
Reserve.

                              {time}  2130

  I would also point out that we support drilling on the 68 million 
acres of public lands that are already leased and not being developed. 
That is what I would point out if I were in a debate on energy. But, in 
fact, this is supposed to be a discussion about the needs of our 
military families for housing, for education, and the needs of our 
veterans for health care. And I think we would best serve the country 
in this Chamber tonight if we would focus our remarks on that issue. 
And that is what I will continue to do.


                             Point of Order

  Mr. EDWARDS of Texas. Mr. Chairman, I make a point of order against 
the amendment because it proposes to change existing law and 
constitutes legislation in an appropriation bill and, therefore, 
violates clause 2 of rule XXI.
  The rule states, in pertinent part: ``An amendment to a general 
appropriation bill shall not be in order if changing existing law.'' 
The amendment changes the application of existing law.
  I ask for a ruling from the Chair.
  The Acting CHAIRMAN. Does anyone wish to be heard on the point of 
order?
  Mr. BISHOP of Utah. Mr. Chairman, I do.
  The Acting CHAIRMAN. The Chair recognizes the gentleman from Utah 
(Mr. Bishop).
  Mr. BISHOP of Utah. Mr. Chairman, I appreciate the fact that the 
gentleman from Wisconsin chose not to extend our time by debating 
energy here tonight.
  I wish to speak specifically to this point of order. The issue on a 
point of order is the nexus between the amendment to the underlying 
bill, and it would be my contention there are multiple in which one can 
look. This particular bill on MILCON has at least eight references to 
runways and roads which are to be produced, all of which will be made 
by asphalt, which is a petroleum-based substance. With costs 
increasing, it would be a difficult price to try and do that.
  We will have people coming in here talking about VA benefits to 
people, falling all over themselves stumbling to be good about it. That 
is great. But if, indeed, those VA hospitals are going to have a 30 
percent increase in heating costs which have to be paid first, many of 
the benefits that we are looking at in this bill will be unable to be 
provided. It is almost like taking medicine off their trays when we 
require people to get those benefits to pay 4 and $5 a gallon to get 
there.
  The couple in West Virginia that drove 80 miles every week and were 
reimbursed 11 cents a mile. For 8 bucks they could not fund their 
ability to get those benefits.
  We will increase our benefits and, at the same time, tell veterans 
they are going to have to pay at a higher price out of their pocket to 
get those benefits. What we give with one hand will be taken back 
simply with another because of our inaction.
  There is precedent for what I am attempting to do. In 1999, there was 
an amendment that was made in order even though it was in violation of 
the germaneness rule by Spence and Ortiz. In 2000 there were two more 
that were part of the Department of Transportation bill, bipartisan 
amendment.
  There was another one that was made in 1990, and those are the 
original ones we were able to look at, let alone the concept of all 
sorts of legislation that we routinely put into appropriations types of 
measures. There is precedent for what I am trying to talk about.
  Mr. Chairman, this is one of those situations where a ruling by the 
Chair will make a decision on whether we deny discussion on energy in 
this body or not. A ruling by the Chair will decide whether we talk 
about conservation and production and infrastructure needs; will deny 
or not a vote by the representatives of the people on an issue the 
people are asking for us to take a vote.
  Benjamin Franklin, when talking about the Revolution once said that 
``revolutions come into this world like illegitimate children.'' He 
didn't use the word illegitimate, but illegitimate children, ``half 
improvised and half compromised.''
  We have provided the improvisation for this issue. We are looking to 
the gentleman at the Chair to provide the compromise; to simply say 
that we can go forward with the debate that is significant, it is 
timely, it is important and does have significant nexus to this 
particular piece of legislation for, indeed, what we are appropriating 
cannot be accomplished if the energy prices continue to soar and make 
it an impossibility to do that.
  This is a chance, Mr. Chairman, that the fate of the American economy 
and maybe our military intelligence will rest in the hands of your 
decision. It is my hope that you will decide in the favor of people on 
this particular point of order.
  Mr. OBEY. Mr. Chairman, on the point of order, I would simply observe 
that the ruling of the Chair will do one thing and one thing only: it 
will determine what the rules of the House are and whether this 
amendment is in compliance with those rules. And I would ask for a 
ruling.
  The Acting CHAIRMAN. Does any other Member wish to be heard on the 
point of order?
  If not, the Chair is prepared to rule. The amendment offered by the 
gentleman from Utah proposes directly to amend existing law. As such, 
it constitutes legislation in violation of clause 2(c) of rule XXI. 
Therefore, the point of order is sustained and the amendment is not in 
order.


                Amendment No. 35 Offered by Mr. Burgess

  Mr. BURGESS. Mr. Chairman, I ask unanimous consent that I be 
permitted to offer my amendment at this point in the reading.
  The Acting CHAIRMAN. Is there objection to consideration of the 
amendment at this point?
  Mr. OBEY. Reserving the right to object, Mr. Chairman, so long as the 
understanding that was expressed earlier stands and that there will be 
only one speaker on that side of the aisle on this nongermane 
amendment, I would not have an objection.
  Mr. BURGESS. Will the gentleman yield?
  Mr. OBEY. I yield to the gentleman from Texas.
  Mr. BURGESS. Other than myself, the gentleman from Texas and the 
gentleman from Wisconsin, I see no other speakers to speak on my 
amendment.

[[Page 17533]]


  Mr. OBEY. Well, the gentleman from Wisconsin does not intend to 
participate on this one, so it will just be two of you.
  Mr. BURGESS. Thank you, Mr. Chairman.
  Mr. OBEY. I withdraw my reservation.
  The Acting CHAIRMAN. Without objection, the gentleman may offer his 
amendment at this point.
  There was no objection.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 35 offered by Mr. Burgess:
       Page 2, line 14, insert after the dollar amount 
     ``(increased by $100,000,000)''.
       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 3, line 16, insert after the dollar amount 
     ``(increased by $200,000,000)''.
       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 4, line 10, insert after the dollar amount 
     ``(increased by $100,000,000)''.
       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)''.

  Mr. EDWARDS of Texas. Mr. Chairman, I reserve a point of order 
against the gentleman's amendment.
  The Acting CHAIRMAN. The point of order is reserved.
  The gentleman from Texas is recognized for 5 minutes.
  Mr. BURGESS. Mr. Chairman, the amendment I am offering tonight 
provides $400 million towards new construction projects. This money 
will be used to put American workers, pipe fitters, engineers, 
construction workers to work and build refineries that produce the 
specialized types and grades of fuel used by each branch of the service 
for their equipment. The refineries will be located on existing or 
former bases under the purview of the Department of Defense, and will 
represent the first refineries built in the United States since 1976. 
And the time to do it is now.
  The Air Force isn't going to have a fleet of plug-in hybrid fighter 
jets, and the Navy isn't going to have a solar battleship in the near 
future. They need fuel, plain and simple.
  Investing in critical infrastructure and protecting the Nation are 
our top responsibilities in the Federal Government. Today I am offering 
an amendment that provides Federal funds for the construction and 
design of one refinery for each branch of the military to produce the 
petroleum products required by that branch, combining these two 
critical roles for the public good.
  Prices are high. So is demand. Let's address both sides of the energy 
equation, and let's put our Americans back to work to help the military 
protect the Nation.
  We have heard a lot about exploring and drilling for American sources 
of energy. Hands down, Americans agree on this point. It is an 80 
percent issue across the country and, indeed, it is even higher in my 
district and other districts of north and central Texas. Polls show the 
vast majority of Americans favor drilling offshore in the ANWR.
  The United States Department of Defense is straining under record 
high prices. In 2007, with operations in Iraq and Afghanistan, the 
United States armed service consumed 16 gallons of fuel per soldier per 
day, or about $3 million worth of fuel every day. That is a lot of 
fuel, and that is a lot of opportunity for American energy and American 
jobs.
  But this is not regular gasoline. All military planes, vehicles, 
generators and heavy equipment in areas of foreign operation use jet 
petroleum to avoid transporting and carrying different fuel grades and 
accidentally putting the wrong type of fuel in their equipment.
  Right now global refineries are operating at a very tight capacity. 
This, in turn, limits the quantity of gasoline and other products that 
they can produce. This squeeze impacts the consumers, domestic refiners 
and the military as the cost of refining comprises between 10 and 20 
percent of the price at the pump. It means the taxpayers are getting 
hit with higher costs twice, and it also leaves military fuel supplies 
vulnerable to disruptions from terrorist attacks and natural disasters.
  And then there's the question of importing refined products. We 
already heard under the colloquy about how important it is to use an 
American product, American-made steel. Well, how about we use American-
made gasoline? Use the gasoline that is produced here in America.
  Domestic refinery production has declined as industry operates with 
tight profit margins and lower inventories of crude oil to cut gasoline 
costs, and these constraints mean a greater proportion of gasoline 
demand has to be met with imported products. We know what that means. 
We buy it from people who don't like us. We are funding both sides in 
the war on terror.
  Four of five of the top suppliers of military fuel are foreign 
companies or foreign state-owned entities. This poses a serious threat 
to our national and our economic security and must be addressed.
  Let me stress that this is a win/win for America. These military 
specific refineries could produce and protect specialized military 
fuels from capacity limitations that squeeze supply and increase prices 
for everyone; would free up commercial refining capacity and ensure 
that we are not forced to outsource a significant portion of our 
defense when we buy from foreign refineries.
  Military commanders say you can't kick behind without tanker gas, or 
something like that. The Air Force isn't going to have a fleet of plug-
in hybrids, as I already said. Our national defense and our national 
economic security are too important to risk on shortages of refinery 
capacities when we are faced with natural disasters.
  We have a Strategic Petroleum Reserve. What good is it if there is no 
strategic way to refine it?
  And this amendment would provide the beginning of that strategic way 
to put the refineries in areas that are already cleared 
environmentally, already have the security in place, and it makes 
sense.
  We have also heard tonight that we need to pass a clean bill. It is 
important to get this bill done because our veterans and our military 
need the monies that will be appropriated in this bill, and I agree 
with that very much. It is my understanding this bill has been ready to 
go for 4 or 5 weeks.
  I don't know why we have not seen fit to bring it up before tonight. 
I don't know why we had to bring it up under a modified closed rule. 
But those are the rules the majority has set. Those are the rules under 
which we will play.
  So I thank the chairman for hearing this amendment. I think it is an 
important concept that needs to be furthered.
  I yield back the balance of my time.
  Mr. EDWARDS of Texas. Mr. Chairman, I rise in opposition.
  The Acting CHAIRMAN. Does the gentleman continue to reserve his point 
of order?
  Mr. EDWARDS of Texas. Yes, I do.
  The Acting CHAIRMAN. The gentleman is recognized for 5 minutes.
  Mr. EDWARDS of Texas. Mr. Chairman, I won't repeat the statements by 
the Veterans of Foreign Wars, the Disabled American Veterans, and the 
American Legion and others who have spoken out against non-germane 
amendments on this bill whose purpose is to support our veterans, their 
families, our troops, and their families.
  I know the gentleman from Texas. He is a friend of mine. I think he 
is genuine in his efforts to accomplish what he would like to 
accomplish, but this is not the bill. This is not the time. This is not 
the place in which to do it.
  Furthermore, despite the gentleman's good intentions, there is a 
serious flaw in this amendment for which I would strongly oppose it, 
and that is, it would take $400 million out of the President's budget 
request for the Base

[[Page 17534]]

Realignment and Closing process. That would be a terrible mistake 
because its result would be that thousands of America's veterans 
returning home from their second and even third tours of duty in Iraq 
and Afghanistan would come home to find that the barracks that were 
supposed to have been built with that BRAC money were not built.
  They would come home, and then those troops, as they began to train 
to go back to Iraq and Afghanistan, would find the training ranges that 
they needed that were to have been built with this $400 million in BRAC 
funding were not built; the very training ranges that are a vital part 
of not only allowing those troops to carry out their mission in our 
Nation's behalf, but help them come home safely to their families.
  So, for those reasons, as well as a number of others, Mr. Chairman, I 
would like to make a point of order against the amendment because it 
provides an appropriation for an unauthorized program and, therefore, 
violates clause 2 of rule XXI. Clause 2 of rule XXI states, in 
pertinent part, ``An appropriation may not be in order as an amendment 
for an expenditure not previously authorized by law.''
  Mr. Chairman, the amendment proposes to appropriate funds that are 
not authorized. The amendment therefore violates clause 2 of rule XXI.
  I ask for a ruling from the Chair.
  Mr. BURGESS. Mr. Chairman, I will not dispute the point of order. I 
believe that the amendment is germane because it is a military 
construction bill. But I understand the concept of authorizing. I would 
point out Congressional Budget Office does score this as a savings, so 
as the old saying goes, it doesn't cost, it pays. And I was willing to 
offer this money in the spirit of bipartisanship. But also in the 
spirit of bipartisanship I will, at this time, ask unanimous consent to 
withdraw the amendment.
  Mr. EDWARDS. I thank the gentleman.
  The Acting CHAIRMAN. Without objection, the amendment is withdrawn.
  There was no objection.
  Ms. BERKLEY. I move to strike the last word.
  The Acting CHAIRMAN. The gentlewoman from Nevada is recognized for 5 
minutes.
  Ms. BERKLEY. Mr. Chairman, I rise tonight in support of this bill. I 
want to thank Chairman Edwards and Ranking Member Wamp for their 
extraordinary efforts on behalf of this Nation's veterans, and for 
including report language on veterans burial benefits.

                              {time}  2145

  I'm deeply concerned about the eroding value of plot allowance and 
burial benefits provided to our Nation's veterans. Because the benefits 
are not indexed to inflation, their value continues to diminish each 
year. As a result, families and State veteran cemeteries have been left 
to cover the increasing costs of burying their loved ones. The VA 
simply must assess the need to increase the plot allowance of burial 
benefits to cover the same percentage of burial benefit costs that were 
covered in 1973 when these benefits were first initiated.
  I appreciate the fact that the chairman has included the report 
language in the report the need for increasing burial benefits for our 
veterans.
  I'm also pleased that the committee recognizes the importance of 
veterans' mental health and substance abuse services. This is an issue 
of great importance to me. I had a constituent by the name of Justin 
Bailey. He volunteered to serve this Nation, he was sent to Iraq, he 
served with honor and distinction. And when he returned, he developed a 
substance abuse problem. At the suggestion of his parents, he checked 
himself into a VA facility, and even though he was suffering from a 
substance abuse problem due to PTSD and other mental health issues, he 
was given more medication while he was in the VA facility. And he 
ultimately ended up overdosing while he was in the care of the VA.
  Unfortunately, Justin is not an isolated incident. There are 
thousands of young men and women returning from service overseas that 
come back with a mental health problem or substance abuse problem or 
PTSD. I'm very delighted that this committee and Chairman Edwards have 
recognized that this is a crisis and this bill increases funding for 
mental health and substance abuse services for our veterans.
  Again, I want to thank Chairman Edwards and Ranking Member Wamp for 
recognizing the importance of these issues, and I would like to urge my 
colleagues to support this legislation without reservation and without 
continuing to add on things that do not belong in this bill and are not 
germane.
  Let's stand up for our veterans, and let's stand up for them this 
evening.
  I yield back.
  The Acting CHAIRMAN. The Clerk will read.
  The Clerk read as follows:

                    Military Construction, Air Force

                    (including rescissions of funds)

         For acquisition, construction, installation, and 
     equipment of temporary or permanent public works, military 
     installations, facilities, and real property for the Air 
     Force as currently authorized by law, $976,524,000, to remain 
     available until September 30, 2013: Provided, That of this 
     amount, not to exceed $77,314,000 shall be available for 
     study, planning, design, and architect and engineer services, 
     as authorized by law, unless the Secretary of Defense 
     determines that additional obligations are necessary for such 
     purposes and notifies the Committees on Appropriations of 
     both Houses of Congress of the determination and the reasons 
     therefor: Provided further, That the amount appropriated in 
     this paragraph shall be for the projects and activities, and 
     in the amounts, specified under the headings ``Air Force'' in 
     the table entitled ``Military Construction'' in the report of 
     the Committee on Appropriations of the House of 
     Representatives to accompany this bill: Provided further, 
     That of the funds appropriated for ``Military Construction, 
     Air Force'' under Public Law 109-114, $1,359,000 are hereby 
     rescinded: Provided further, That of the funds appropriated 
     for ``Military Construction, Air Force'' under Public Law 
     110-5, $3,581,000 are hereby rescinded: Provided further, 
     That of the funds appropriated for ``Military Construction, 
     Air Force'' under Public Law 110-161, $12,741,000 are hereby 
     rescinded.

  Mr. PERLMUTTER. Mr. Chairman, I move to strike the last word.
  The Acting CHAIRMAN. The gentleman from Colorado is recognized for 5 
minutes.
  Mr. PERLMUTTER. Mr. Chairman, I would like to inquire whether the 
gentleman from Texas would be willing to engage in a colloquy with me.
  Mr. EDWARDS of Texas. I would be honored to do so.
  Mr. PERLMUTTER. I thank the gentleman.
  Simply put, dirt needs to be turned on the replacement Veterans 
Medical Center in Aurora, Colorado. This facility is the centerpiece of 
the VA's capital construction plan under the Capital Asset Realignment 
for Enhanced Services, the CARES project, which began in 1999.
  Eight years are gone, millions of dollars in additional costs have 
been incurred, and three VA secretaries later, it is safe to say the 
time for action for Colorado and the Rocky Mountain veterans is now. 
They've waited far too long, and our taxpayers will pay far more the 
longer this project is dragged out. We have to get this project done.
  It is for these reasons I understand and identify with the 
frustration many in our veterans' community feel in being shut out of 
the design process as they continue to see the construction of this 
important undertaking pushed back year after year.
  Achieving consensus and moving forward with the construction of this 
facility has and will continue to be one of my top priorities in 
Congress. Simply put, it is not fair or right to punish our veterans by 
the repeated delays resulting each time a new Secretary of Veterans 
Affairs is appointed.
  I believe our veterans deserve better than they've been treated 
through this process, and to quote the Denver Post, ``Changing plans 
midstream without bringing in the people who would use the facility or 
those who put their political capital to work to get money for the 
project is an affront.'' And the editorial concludes with, ``We hope 
the VA reconsiders its decision and honors the commitment made to 
veterans in the Colorado region. The long-anticipated standalone 
facility is sorely needed and further delay is unacceptable.'' And I 
couldn't agree more.

[[Page 17535]]

  That is why I feel it is vital to provide the funding necessary for 
the Veterans Administration to move forward with the construction of 
the central utility substation, the parking garage, and the surface 
parking lots of the proposed facility. These are all projects for which 
money has already been appropriated and is in the bank, and they're 
ready to go. In all likelihood, this is going to take more than the $20 
million that the administration is currently calling for.
  But with that, I would like to yield to the gentleman to ask if he's 
willing to continue to work with me to secure the funding required to 
build a facility our veterans can be proud of as soon as possible.
  Mr. EDWARDS of Texas. The answer to the gentleman's question is 
absolutely yes, and I want to salute the gentleman from Colorado for 
his tireless devotion for seeing that the veterans in the Denver area 
in Colorado have a VA medical center that is worthy of their service to 
our country.
  It is simply not right that this process has been like a ping pong 
game going back and forth. The veterans of Colorado are told one year 
one thing's going to happen, the next year another thing is going to 
happen. The gentleman is right in saying that if plans are changing, 
there should be input from the veterans in the local communities.
  So I look forward to working with the gentleman not only in this 
House but in meetings with the VA officials so that we see we move this 
important project forward expeditiously.
  Mr. PERLMUTTER. I thank the gentleman, and I look forward to his 
visit to Aurora, Colorado, at the end of August.
  I yield back.
  The Acting CHAIRMAN. The Clerk will read.
  The Clerk read as follows:

                  Military Construction, Defense-Wide

              (including transfer and rescission of funds)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, installations, 
     facilities, and real property for activities and agencies of 
     the Department of Defense (other than the military 
     departments), as currently authorized by law, $1,614,450,000, 
     to remain available until September 30, 2013: Provided, That 
     such amounts of this appropriation as may be determined by 
     the Secretary of Defense may be transferred to such 
     appropriations of the Department of Defense available for 
     military construction or family housing as the Secretary may 
     designate, to be merged with and to be available for the same 
     purposes, and for the same time period, as the appropriation 
     or fund to which transferred: Provided further, That of the 
     amount appropriated, not to exceed $211,606,000 shall be 
     available for study, planning, design, and architect and 
     engineer services, as authorized by law, unless the Secretary 
     of Defense determines that additional obligations are 
     necessary for such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of the 
     determination and the reasons therefor: Provided further, 
     That the amount appropriated in this paragraph shall be for 
     the projects and activities, and in the amounts, specified 
     under the headings ``Defense-Wide'' in the table entitled 
     ``Military Construction'' in the report of the Committee on 
     Appropriations of the House of Representatives to accompany 
     this bill: Provided further, That of the funds appropriated 
     for ``Military Construction, Defense-Wide'' under Public Law 
     108-324, $3,589,000 are hereby rescinded.

               Military Construction, Army National Guard

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Army National Guard, and contributions 
     therefor, as authorized by chapter 1803 of title 10, United 
     States Code, and Military Construction Authorization Acts, 
     $628,668,000, to remain available until September 30, 2013: 
     Provided, That of the amount appropriated, not to exceed 
     $50,563,000 shall be available for study, planning, design, 
     and architect and engineer services, as authorized by law, 
     unless the Secretary of Defense determines that additional 
     obligations are necessary for such purposes and notifies the 
     Committees on Appropriations of both Houses of Congress of 
     the determination and the reasons therefor:  Provided 
     further, That the amount appropriated in this paragraph shall 
     be for the projects and activities, and in the amounts, 
     specified under the headings ``Army National Guard'' in the 
     table entitled ``Military Construction'' in the report of the 
     Committee on Appropriations of the House of Representatives 
     to accompany this bill.

               Military Construction, Air National Guard

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Air National Guard, and contributions 
     therefor, as authorized by chapter 1803 of title 10, United 
     States Code, and Military Construction Authorization Acts, 
     $142,809,000, to remain available until September 30, 2013: 
     Provided, That of the amount appropriated, not to exceed 
     $10,209,000 shall be available for study, planning, design, 
     and architect and engineer services, as authorized by law, 
     unless the Secretary of Defense determines that additional 
     obligations are necessary for such purposes and notifies the 
     Committees on Appropriations of both Houses of Congress of 
     the determination and the reasons therefor:  Provided 
     further, That the amount appropriated in this paragraph shall 
     be for the projects and activities, and in the amounts, 
     specified under the headings ``Air National Guard'' in the 
     table entitled ``Military Construction'' in the report of the 
     Committee on Appropriations of the House of Representatives 
     to accompany this bill.

  Ms. SHEA-PORTER. Mr. Chairman, I move to strike the last word.
  The Acting CHAIRMAN. The gentlewoman from New Hampshire is recognized 
for 5 minutes.
  Ms. SHEA-PORTER. Mr. Chairman, I rise for the purpose of engaging in 
a colloquy with the chairman.
  Mr. Chairman, I would like to thank you for your leadership in 
supporting our veterans and particularly on this bill. The 110th 
Congress has made great strides in fulfilling the promises made to our 
veterans.
  Mr. Chairman, there are more than 130,000 veterans in New Hampshire. 
Those veterans have gone without a full service VA hospital for the 
past 7 years. Last year, over 700 veterans who visited our VA facility 
in Manchester for acute care were transported to Boston VA facilities 
or to the White River Junction in Vermont. For some of our more rural 
northern residents, this can be an arduous ordeal. Hours can be spent 
in a car or bus traveling for medical care.
  To address this inequity, I introduced legislation this week that 
would require the VA to either provide full-service hospital care or 
comparable services to veterans in every State.
  Mr. Chairman, the legislation before us also includes an increase of 
$200 million in fee-based care funding, care that our veterans can 
receive in local non-VA medical facilities. This program can provide 
much-needed assistance to veterans in New Hampshire, and I wanted to 
receive your assurances that we would continue to work together to 
ensure that New Hampshire veterans have adequate access to in-State 
health care.
  At this time, I would like to yield to my friend and colleague from 
the Second District of New Hampshire.
  Mr. HODES. I thank the gentlewoman for yielding.
  I want to thank the chairman for his extraordinary leadership on this 
important issue and for standing up for veterans around the country.
  I rise today to echo the concern of my colleague, Congresswoman Carol 
Shea-Porter. New Hampshire remains the only State in the Nation without 
a full service VA hospital, forcing many veterans to drive long 
distances to get the care and treatment they desperately need and that 
they've earned. With record high gas prices, New Hampshire veterans are 
simply paying more to get critical medical care, and that's plain 
wrong.
  I would like to echo the concerns of my colleague and also ask the 
chairman to clarify that the increases in fee-based care contained in 
the underlying bill are meant to address issues like those we have in 
New Hampshire.
  And I look forward to continuing to work with the chairman and 
members of his committee on this important issue for Granite State 
veterans.
  Mr. EDWARDS of Texas. I would like to answer the gentleman's question 
by saying that the answer is ``yes.''
  And I want to thank Mr. Hodes and Ms. Shea-Porter for fighting on 
behalf of improved medical care for the veterans of New Hampshire. You 
have not only done that by your election to Congress, you have been key 
players in making it possible for us to pass the largest increase in VA 
health care funding in the VA 77-year history. It wouldn't have 
happened without your election to Congress and your leadership.

[[Page 17536]]

  I look forward to working with both of you in our subcommittee to see 
that we can ensure that the veterans of New Hampshire who have served 
our country receive the medical care that they deserve.
  Ms. SHEA-PORTER. Thank you. I yield back.
  The Acting CHAIRMAN. The Clerk will read.
  The Clerk read as follows:

                  Military Construction, Army Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Army Reserve as authorized by chapter 
     1803 of title 10, United States Code, and Military 
     Construction Authorization Acts, $282,607,000, to remain 
     available until September 30, 2013: Provided, That of the 
     amount appropriated, not to exceed $14,883,000 shall be 
     available for study, planning, design, and architect and 
     engineer services, as authorized by law, unless the Secretary 
     of Defense determines that additional obligations are 
     necessary for such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of the 
     determination and the reasons therefor:  Provided further, 
     That the amount appropriated in this paragraph shall be for 
     the projects and activities, and in the amounts, specified 
     under the headings ``Army Reserve'' in the table entitled 
     ``Military Construction'' in the report of the Committee on 
     Appropriations of the House of Representatives to accompany 
     this bill.

                  Military Construction, Navy Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the reserve components of the Navy and 
     Marine Corps as authorized by chapter 1803 of title 10, 
     United States Code, and Military Construction Authorization 
     Acts, $57,045,000, to remain available until September 30, 
     2013:  Provided, That of the amount appropriated, not to 
     exceed $2,045,000 shall be available for study, planning, 
     design, and architect and engineer services, as authorized by 
     law, unless the Secretary of Defense determines that 
     additional obligations are necessary for such purposes and 
     notifies the Committees on Appropriations of both Houses of 
     Congress of the determination and the reasons therefor:  
     Provided further, That the amount appropriated in this 
     paragraph shall be for the projects and activities, and in 
     the amounts, specified under the headings ``Navy Reserve'' in 
     the table entitled ``Military Construction'' in the report of 
     the Committee on Appropriations of the House of 
     Representatives to accompany this bill.

                Military Construction, Air Force Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Air Force Reserve as authorized by 
     chapter 1803 of title 10, United States Code, and Military 
     Construction Authorization Acts, $30,018,000, to remain 
     available until September 30, 2013: Provided, That of the 
     amount appropriated, not to exceed $5,675,000 shall be 
     available for study, planning, design, and architect and 
     engineer services, as authorized by law, unless the Secretary 
     of Defense determines that additional obligations are 
     necessary for such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of the 
     determination and the reasons therefor:  Provided further, 
     That the amount appropriated in this paragraph shall be for 
     the projects and activities, and in the amounts, specified 
     under the headings ``Air Force Reserve'' in the table 
     entitled ``Military Construction'' in the report of the 
     Committee on Appropriations of the House of Representatives 
     to accompany this bill.

                   North Atlantic Treaty Organization

                      Security Investment Program

       For the United States share of the cost of the North 
     Atlantic Treaty Organization Security Investment Program for 
     the acquisition and construction of military facilities and 
     installations (including international military headquarters) 
     and for related expenses for the collective defense of the 
     North Atlantic Treaty Area as authorized by section 2806 of 
     title 10, United States Code, and Military Construction 
     Authorization Acts, $218,867,000, to remain available until 
     expended.

  Mr. EDWARDS of Texas. Mr. Chairman, I ask unanimous consent that the 
remainder of the bill through title II, page 35, line 18, be considered 
as read, printed in the Record, and open to amendment at any point.
  The Acting CHAIRMAN. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  The text of that portion of the bill is as follows:

                   Family Housing Construction, Army

       For expenses of family housing for the Army for 
     construction, including acquisition, replacement, addition, 
     expansion, extension, and alteration, as authorized by law, 
     $646,580,000, to remain available until September 30, 2013: 
     Provided, That the amount appropriated in this paragraph 
     shall be for the projects and activities, and in the amounts, 
     specified under the heading ``Family Housing Construction, 
     Army'' in the table entitled ``Military Construction'' in the 
     report of the Committee on Appropriations of the House of 
     Representatives to accompany this bill.

             Family Housing Operation and Maintenance, Army

       For expenses of family housing for the Army for operation 
     and maintenance, including debt payment, leasing, minor 
     construction, principal and interest charges, and insurance 
     premiums, as authorized by law, $716,110,000.

           Family Housing Construction, Navy and Marine Corps

       For expenses of family housing for the Navy and Marine 
     Corps for construction, including acquisition, replacement, 
     addition, expansion, extension, and alteration, as authorized 
     by law, $382,778,000, to remain available until September 30, 
     2013:  Provided, That the amount appropriated in this 
     paragraph shall be for the projects and activities, and in 
     the amounts, specified under the heading ``Family Housing 
     Construction, Navy and Marine Corps'' in the table entitled 
     ``Military Construction'' in the report of the Committee on 
     Appropriations of the House of Representatives to accompany 
     this bill.

    Family Housing Operation and Maintenance, Navy and Marine Corps

       For expenses of family housing for the Navy and Marine 
     Corps for operation and maintenance, including debt payment, 
     leasing, minor construction, principal and interest charges, 
     and insurance premiums, as authorized by law, $376,062,000.

                 Family Housing Construction, Air Force

       For expenses of family housing for the Air Force for 
     construction, including acquisition, replacement, addition, 
     expansion, extension, and alteration, as authorized by law, 
     $395,879,000, to remain available until September 30, 2013:  
     Provided, That the amount appropriated in this paragraph 
     shall be for the projects and activities, and in the amounts, 
     specified under the heading ``Family Housing Construction, 
     Air Force'' in the table entitled ``Military Construction'' 
     in the report of the Committee on Appropriations of the House 
     of Representatives to accompany this bill.

          Family Housing Operation and Maintenance, Air Force

       For expenses of family housing for the Air Force for 
     operation and maintenance, including debt payment, leasing, 
     minor construction, principal and interest charges, and 
     insurance premiums, as authorized by law, $594,465,000.

         Family Housing Operation and Maintenance, Defense-Wide

       For expenses of family housing for the activities and 
     agencies of the Department of Defense (other than the 
     military departments) for operation and maintenance, leasing, 
     and minor construction, as authorized by law, $49,231,000.

         Department of Defense Family Housing Improvement Fund

       For the Department of Defense Family Housing Improvement 
     Fund, $850,000, to remain available until expended, for 
     family housing initiatives undertaken pursuant to section 
     2883 of title 10, United States Code, providing alternative 
     means of acquiring and improving military family housing and 
     supporting facilities.

                       Homeowners Assistance Fund

       For the Homeowners Assistance Fund established by section 
     1013 of the Demonstration Cities and Metropolitan Development 
     Act of 1966, as amended (42 U.S.C. 3374), $4,500,000, to 
     remain available until expended.

          Chemical Demilitarization Construction, Defense-Wide

                     (including transfer of funds)

       For expenses of construction, not otherwise provided for, 
     necessary for the destruction of the United States stockpile 
     of lethal chemical agents and munitions in accordance with 
     section 1412 of the Department of Defense Authorization Act, 
     1986 (50 U.S.C. 1521), and for the destruction of other 
     chemical warfare materials that are not in the chemical 
     weapon stockpile, as currently authorized by law, 
     $134,278,000, to remain available until September 30, 2013: 
     Provided, That such amounts of this appropriation as may be 
     determined by the Secretary of Defense may be transferred to 
     such appropriations of the Department of Defense available 
     for military construction as the Secretary may designate, to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation to which 
     transferred:  Provided further, That the amount appropriated 
     in this paragraph shall be for the projects and activities, 
     and in the amounts, specified in the table entitled 
     ``Chemical Demilitarization Construction'' in the report of 
     the Committee on Appropriations of the House of 
     Representatives to accompany this bill.

            Department of Defense Base Closure Account 1990

       For deposit into the Department of Defense Base Closure 
     Account 1990, established by section 2906(a)(1) of the 
     Defense Base Closure and Realignment Act of 1990 (10 U.S.C.

[[Page 17537]]

     2687 note), $473,377,000, to remain available until expended.

            Department of Defense Base Closure Account 2005

       For deposit into the Department of Defense Base Closure 
     Account 2005, established by section 2906A(a)(1) of the 
     Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 
     2687 note), $9,065,386,000, to remain available until 
     expended: Provided, That the Department of Defense shall 
     notify the Committees on Appropriations of both Houses of 
     Congress 14 days prior to obligating an amount for a 
     construction project that exceeds or reduces the amount 
     identified for that project in the most recently submitted 
     budget request for this account by 20 percent or $2,000,000, 
     whichever is less: Provided further, That the previous 
     proviso shall not apply to projects costing less than 
     $5,000,000, except for those projects not previously 
     identified in any budget submission for this account and 
     exceeding the minor construction threshold under 10 U.S.C. 
     2805.

                       Administrative Provisions

       Sec. 101.  None of the funds made available in this title 
     shall be expended for payments under a cost-plus-a-fixed-fee 
     contract for construction, where cost estimates exceed 
     $25,000, to be performed within the United States, except 
     Alaska, without the specific approval in writing of the 
     Secretary of Defense setting forth the reasons therefor.
       Sec. 102.  Funds made available in this title for 
     construction shall be available for hire of passenger motor 
     vehicles.
       Sec. 103.  Funds made available in this title for 
     construction may be used for advances to the Federal Highway 
     Administration, Department of Transportation, for the 
     construction of access roads as authorized by section 210 of 
     title 23, United States Code, when projects authorized 
     therein are certified as important to the national defense by 
     the Secretary of Defense.
       Sec. 104.  None of the funds made available in this title 
     may be used to begin construction of new bases in the United 
     States for which specific appropriations have not been made.
       Sec. 105.  None of the funds made available in this title 
     shall be used for purchase of land or land easements in 
     excess of 100 percent of the value as determined by the Army 
     Corps of Engineers or the Naval Facilities Engineering 
     Command, except: (1) where there is a determination of value 
     by a Federal court; (2) purchases negotiated by the Attorney 
     General or the designee of the Attorney General; (3) where 
     the estimated value is less than $25,000; or (4) as otherwise 
     determined by the Secretary of Defense to be in the public 
     interest.
       Sec. 106.  None of the funds made available in this title 
     shall be used to: (1) acquire land; (2) provide for site 
     preparation; or (3) install utilities for any family housing, 
     except housing for which funds have been made available in 
     annual Acts making appropriations for military construction.
       Sec. 107.  None of the funds made available in this title 
     for minor construction may be used to transfer or relocate 
     any activity from one base or installation to another, 
     without prior notification to the Committees on 
     Appropriations of both Houses of Congress.
       Sec. 108.  None of the funds made available in this title 
     may be used for the procurement of steel for any construction 
     project or activity for which American steel producers, 
     fabricators, and manufacturers have been denied the 
     opportunity to compete for such steel procurement.
       Sec. 109.  None of the funds available to the Department of 
     Defense for military construction or family housing during 
     the current fiscal year may be used to pay real property 
     taxes in any foreign nation.
       Sec. 110.  None of the funds made available in this title 
     may be used to initiate a new installation overseas without 
     prior notification to the Committees on Appropriations of 
     both Houses of Congress.
       Sec. 111.  None of the funds made available in this title 
     may be obligated for architect and engineer contracts 
     estimated by the Government to exceed $500,000 for projects 
     to be accomplished in Japan, in any North Atlantic Treaty 
     Organization member country, or in countries bordering the 
     Arabian Sea, unless such contracts are awarded to United 
     States firms or United States firms in joint venture with 
     host nation firms.
       Sec. 112.  None of the funds made available in this title 
     for military construction in the United States territories 
     and possessions in the Pacific and on Kwajalein Atoll, or in 
     countries bordering the Arabian Sea, may be used to award any 
     contract estimated by the Government to exceed $1,000,000 to 
     a foreign contractor: Provided, That this section shall not 
     be applicable to contract awards for which the lowest 
     responsive and responsible bid of a United States contractor 
     exceeds the lowest responsive and responsible bid of a 
     foreign contractor by greater than 20 percent: Provided 
     further, That this section shall not apply to contract awards 
     for military construction on Kwajalein Atoll for which the 
     lowest responsive and responsible bid is submitted by a 
     Marshallese contractor.
       Sec. 113.  The Secretary of Defense is to inform the 
     appropriate committees of both Houses of Congress, including 
     the Committees on Appropriations, of the plans and scope of 
     any proposed military exercise involving United States 
     personnel 30 days prior to its occurring, if amounts expended 
     for construction, either temporary or permanent, are 
     anticipated to exceed $100,000.
       Sec. 114.  Not more than 20 percent of the funds made 
     available in this title which are limited for obligation 
     during the current fiscal year shall be obligated during the 
     last two months of the fiscal year.

                     (including transfer of funds)

       Sec. 115.  Funds appropriated to the Department of Defense 
     for construction in prior years shall be available for 
     construction authorized for each such military department by 
     the authorizations enacted into law during the current 
     session of Congress.
       Sec. 116.  For military construction or family housing 
     projects that are being completed with funds otherwise 
     expired or lapsed for obligation, expired or lapsed funds may 
     be used to pay the cost of associated supervision, 
     inspection, overhead, engineering and design on those 
     projects and on subsequent claims, if any.
       Sec. 117.  Notwithstanding any other provision of law, any 
     funds made available to a military department or defense 
     agency for the construction of military projects may be 
     obligated for a military construction project or contract, or 
     for any portion of such a project or contract, at any time 
     before the end of the fourth fiscal year after the fiscal 
     year for which funds for such project were made available, if 
     the funds obligated for such project: (1) are obligated from 
     funds available for military construction projects; and (2) 
     do not exceed the amount appropriated for such project, plus 
     any amount by which the cost of such project is increased 
     pursuant to law.
       Sec. 118. (a) The Secretary of Defense, in consultation 
     with the Secretary of State, shall submit to the Committees 
     on Appropriations of both Houses of Congress, by February 15 
     of each year, an annual report, in unclassified and, if 
     necessary classified form, on actions taken by the Department 
     of Defense and the Department of State during the previous 
     fiscal year to encourage host countries to assume a greater 
     share of the common defense burden of such countries and the 
     United States.
       (b) The report under subsection (a) shall include a 
     description of--
       (1) attempts to secure cash and in-kind contributions from 
     host countries for military construction projects;
       (2) attempts to achieve economic incentives offered by host 
     countries to encourage private investment for the benefit of 
     the United States Armed Forces;
       (3) attempts to recover funds due to be paid to the United 
     States by host countries for assets deeded or otherwise 
     imparted to host countries upon the cessation of United 
     States operations at military installations;
       (4) the amount spent by host countries on defense, in 
     dollars and in terms of the percent of gross domestic product 
     (GDP) of the host country; and
       (5) for host countries that are members of the North 
     Atlantic Treaty Organization (NATO), the amount contributed 
     to NATO by host countries, in dollars and in terms of the 
     percent of the total NATO budget.
       (c) In this section, the term ``host country'' means other 
     member countries of NATO, Japan, South Korea, and United 
     States allies bordering the Arabian Sea.

                     (including transfer of funds)

       Sec. 119.  In addition to any other transfer authority 
     available to the Department of Defense, proceeds deposited to 
     the Department of Defense Base Closure Account established by 
     section 207(a)(1) of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (10 U.S.C. 2687 note) 
     pursuant to section 207(a)(2)(C) of such Act, may be 
     transferred to the account established by section 2906(a)(1) 
     of the Defense Base Closure and Realignment Act of 1990 (10 
     U.S.C. 2687 note), to be merged with, and to be available for 
     the same purposes and the same time period as that account.

                     (including transfer of funds)

       Sec. 120.  Subject to 30 days prior notification, or 14 
     days for a notification provided in an electronic medium 
     pursuant to sections 480 and 2883, of title 10, United States 
     Code, to the Committees on Appropriations of both Houses of 
     Congress, such additional amounts as may be determined by the 
     Secretary of Defense may be transferred to: (1) the 
     Department of Defense Family Housing Improvement Fund from 
     amounts appropriated for construction in ``Family Housing'' 
     accounts, to be merged with and to be available for the same 
     purposes and for the same period of time as amounts 
     appropriated directly to the Fund; or (2) the Department of 
     Defense Military Unaccompanied Housing Improvement Fund from 
     amounts appropriated for construction of military 
     unaccompanied housing in ``Military Construction'' accounts, 
     to be merged with and to be available for the same purposes 
     and for the same period of time as amounts appropriated 
     directly to the Fund: Provided, That appropriations made 
     available to the Funds shall be available to cover the costs, 
     as defined in section 502(5) of the Congressional Budget Act 
     of 1974, of direct loans or loan guarantees issued by the 
     Department of Defense pursuant to the provisions of 
     subchapter IV of chapter 169 of title 10, United States Code,

[[Page 17538]]

     pertaining to alternative means of acquiring and improving 
     military family housing, military unaccompanied housing, and 
     supporting facilities.
       Sec. 121. (a) Not later than 60 days before issuing any 
     solicitation for a contract with the private sector for 
     military family housing the Secretary of the military 
     department concerned shall submit to the Committees on 
     Appropriations of both Houses of Congress the notice 
     described in subsection (b).
       (b)(1) A notice referred to in subsection (a) is a notice 
     of any guarantee (including the making of mortgage or rental 
     payments) proposed to be made by the Secretary to the private 
     party under the contract involved in the event of--
       (A) the closure or realignment of the installation for 
     which housing is provided under the contract;
       (B) a reduction in force of units stationed at such 
     installation; or
       (C) the extended deployment overseas of units stationed at 
     such installation.
       (2) Each notice under this subsection shall specify the 
     nature of the guarantee involved and assess the extent and 
     likelihood, if any, of the liability of the Federal 
     Government with respect to the guarantee.

                     (including transfer of funds)

       Sec. 122.  In addition to any other transfer authority 
     available to the Department of Defense, amounts may be 
     transferred from the accounts established by sections 
     2906(a)(1) and 2906A(a)(1) of the Defense Base Closure and 
     Realignment Act of 1990 (10 U.S.C. 2687 note), to the fund 
     established by section 1013(d) of the Demonstration Cities 
     and Metropolitan Development Act of 1966 (42 U.S.C. 3374) to 
     pay for expenses associated with the Homeowners Assistance 
     Program. Any amounts transferred shall be merged with and be 
     available for the same purposes and for the same time period 
     as the fund to which transferred.
       Sec. 123.  Notwithstanding this or any other provision of 
     law, funds made available in this title for operation and 
     maintenance of family housing shall be the exclusive source 
     of funds for repair and maintenance of all family housing 
     units, including general or flag officer quarters: Provided, 
     That not more than $35,000 per unit may be spent annually for 
     the maintenance and repair of any general or flag officer 
     quarters without 30 days prior notification to the Committees 
     on Appropriations of both Houses of Congress, except that an 
     after-the-fact notification shall be submitted if the 
     limitation is exceeded solely due to costs associated with 
     environmental remediation that could not be reasonably 
     anticipated at the time of the budget submission: Provided 
     further, That the Under Secretary of Defense (Comptroller) is 
     to report annually to the Committees on Appropriations of 
     both Houses of Congress all operation and maintenance 
     expenditures for each individual general or flag officer 
     quarters for the prior fiscal year.
       Sec. 124.  Amounts contained in the Ford Island Improvement 
     Account established by subsection (h) of section 2814 of 
     title 10, United States Code, are appropriated and shall be 
     available until expended for the purposes specified in 
     subsection (i)(1) of such section or until transferred 
     pursuant to subsection (i)(3) of such section.

                     (including transfer of funds)

       Sec. 125.  None of the funds made available in this title, 
     or in any Act making appropriations for military construction 
     which remain available for obligation, may be obligated or 
     expended to carry out a military construction, land 
     acquisition, or family housing project at or for a military 
     installation approved for closure, or at a military 
     installation for the purposes of supporting a function that 
     has been approved for realignment to another installation, in 
     2005 under 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), unless such a project at a military installation 
     approved for realignment will support a continuing mission or 
     function at that installation or a new mission or function 
     that is planned for that installation, or unless the 
     Secretary of Defense certifies that the cost to the United 
     States of carrying out such project would be less than the 
     cost to the United States of cancelling such project, or if 
     the project is at an active component base that shall be 
     established as an enclave or in the case of projects having 
     multi-agency use, that another Government agency has 
     indicated it will assume ownership of the completed project. 
     The Secretary of Defense may not transfer funds made 
     available as a result of this limitation from any military 
     construction project, land acquisition, or family housing 
     project to another account or use such funds for another 
     purpose or project without the prior approval of the 
     Committees on Appropriations of both Houses of Congress. This 
     section shall not apply to military construction projects, 
     land acquisition, or family housing projects for which the 
     project is vital to the national security or the protection 
     of health, safety, or environmental quality: Provided, That 
     the Secretary of Defense shall notify the congressional 
     defense committees within seven days of a decision to carry 
     out such a military construction project.

                     (including transfer of funds)

       Sec. 126.  During the 5-year period after appropriations 
     available in this Act to the Department of Defense for 
     military construction and family housing operation and 
     maintenance and construction have expired for obligation, 
     upon a determination that such appropriations will not be 
     necessary for the liquidation of obligations or for making 
     authorized adjustments to such appropriations for obligations 
     incurred during the period of availability of such 
     appropriations, unobligated balances of such appropriations 
     may be transferred into the appropriation ``Foreign Currency 
     Fluctuations, Construction, Defense'', to be merged with and 
     to be available for the same time period and for the same 
     purposes as the appropriation to which transferred.
       Sec. 127.  None of the funds appropriated or otherwise made 
     available in this title may be used for any action that is 
     related to or promotes the expansion of the boundaries or 
     size of the Pinon Canyon Maneuver Site, Colorado.

                                TITLE II

                     DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration

                       compensation and pensions

                     (including transfer of funds)

       For the payment of compensation benefits to or on behalf of 
     veterans and a pilot program for disability examinations as 
     authorized by section 107 and chapters 11, 13, 18, 51, 53, 
     55, and 61 of title 38, United States Code; pension benefits 
     to or on behalf of veterans as authorized by chapters 15, 51, 
     53, 55, and 61 of title 38, United States Code; and burial 
     benefits, the Reinstated Entitlement Program for Survivors, 
     emergency and other officers' retirement pay, adjusted-
     service credits and certificates, payment of premiums due on 
     commercial life insurance policies guaranteed under the 
     provisions of title IV of the Servicemembers Civil Relief Act 
     (50 U.S.C. App. 541 et seq.) and for other benefits as 
     authorized by sections 107, 1312, 1977, and 2106, and 
     chapters 23, 51, 53, 55, and 61 of title 38, United States 
     Code, $43,111,681,000, to remain available until expended: 
     Provided, That not to exceed $26,798,000 of the amount 
     appropriated under this heading shall be reimbursed to 
     ``General operating expenses'', ``Medical support and 
     compliance'', and ``Information technology systems'' for 
     necessary expenses in implementing the provisions of chapters 
     51, 53, and 55 of title 38, United States Code, the funding 
     source for which is specifically provided as the 
     ``Compensation and pensions'' appropriation: Provided 
     further, That such sums as may be earned on an actual 
     qualifying patient basis, shall be reimbursed to ``Medical 
     care collections fund'' to augment the funding of individual 
     medical facilities for nursing home care provided to 
     pensioners as authorized.

                         readjustment benefits

       For the payment of readjustment and rehabilitation benefits 
     to or on behalf of veterans as authorized by chapters 21, 30, 
     31, 34, 35, 36, 39, 51, 53, 55, and 61 of title 38, United 
     States Code, $3,086,944,000, to remain available until 
     expended: Provided, That expenses for rehabilitation program 
     services and assistance which the Secretary is authorized to 
     provide under subsection (a) of section 3104 of title 38, 
     United States Code, other than under paragraphs (1), (2), 
     (5), and (11) of that subsection, shall be charged to this 
     account.

                   veterans insurance and indemnities

       For military and naval insurance, national service life 
     insurance, servicemen's indemnities, service-disabled 
     veterans insurance, and veterans mortgage life insurance as 
     authorized by title 38, United States Code, chapters 19 and 
     21, $42,300,000, to remain available until expended.

         veterans housing benefit program fund program account

       For the cost of direct and guaranteed loans, such sums as 
     may be necessary to carry out the program, as authorized by 
     subchapters I through III of chapter 37 of title 38, United 
     States Code: Provided, That such costs, including the cost of 
     modifying such loans, shall be as defined in section 502 of 
     the Congressional Budget Act of 1974: Provided further, That 
     during fiscal year 2009, within the resources available, not 
     to exceed $500,000 in gross obligations for direct loans are 
     authorized for specially adapted housing loans.
       In addition, for administrative expenses to carry out the 
     direct and guaranteed loan programs, $157,210,000.

            vocational rehabilitation loans program account

                     (including transfer of funds)

       For the cost of direct loans, $61,000, as authorized by 
     chapter 31 of title 38, United States Code: Provided, That 
     such costs, including the cost of modifying such loans, shall 
     be as defined in section 502 of the Congressional Budget Act 
     of 1974: Provided further, That funds made available under 
     this heading are available to subsidize gross obligations for 
     the principal amount of direct loans not to exceed 
     $3,180,000.
       In addition, for administrative expenses necessary to carry 
     out the direct loan program, $320,000, which may be 
     transferred to and merged with the appropriation for 
     ``General operating expenses''.

[[Page 17539]]



          native american veteran housing loan program account

       For administrative expenses to carry out the direct loan 
     program authorized by subchapter V of chapter 37 of title 38, 
     United States Code, $646,000.

  guaranteed transitional housing loans for homeless veterans program 
                                account

       For the administrative expenses to carry out the guaranteed 
     transitional housing loan program authorized by subchapter VI 
     of chapter 20 of title 38, United States Code, not to exceed 
     $750,000 of the amounts appropriated by this Act for 
     ``General operating expenses'' and ``Medical support and 
     compliance'' may be expended.

                     Veterans Health Administration

                            medical services

                     (including transfer of funds)

       For necessary expenses for furnishing, as authorized by 
     law, inpatient and outpatient care and treatment to 
     beneficiaries of the Department of Veterans Affairs and 
     veterans described in section 1705(a) of title 38, United 
     States Code, including care and treatment in facilities not 
     under the jurisdiction of the Department, and including 
     medical supplies and equipment, food services, and salaries 
     and expenses of health-care employees hired under title 38, 
     United States Code, and aid to State homes as authorized by 
     section 1741 of title 38, United States Code; 
     $30,854,270,000, plus reimbursements, of which not less than 
     $3,800,000,000 shall be expended for specialty mental health 
     care: Provided, That of the funds made available under this 
     heading, not to exceed $1,350,000,000 shall be available 
     until September 30, 2010: Provided further, That, 
     notwithstanding any other provision of law, the Secretary of 
     Veterans Affairs shall establish a priority for the provision 
     of medical treatment for veterans who have service-connected 
     disabilities, lower income, or have special needs: Provided 
     further, That, notwithstanding any other provision of law, 
     the Secretary of Veterans Affairs shall give priority funding 
     for the provision of basic medical benefits to veterans in 
     enrollment priority groups 1 through 6: Provided further, 
     That, notwithstanding any other provision of law, the 
     Secretary of Veterans Affairs may authorize the dispensing of 
     prescription drugs from Veterans Health Administration 
     facilities to enrolled veterans with privately written 
     prescriptions based on requirements established by the 
     Secretary: Provided further, That the implementation of the 
     program described in the previous proviso shall incur no 
     additional cost to the Department of Veterans Affairs: 
     Provided further, That for the Department of Defense/
     Department of Veterans Affairs Health Care Sharing Incentive 
     Fund, as authorized by section 8111(d) of title 38, United 
     States Code, a minimum of $15,000,000, to remain available 
     until expended, for any purpose authorized by section 8111 of 
     title 38, United States Code.

                     medical support and compliance

       For necessary expenses in the administration of the 
     medical, hospital, nursing home, domiciliary, construction, 
     supply, and research activities, as authorized by law; 
     administrative expenses in support of capital policy 
     activities; and administrative and legal expenses of the 
     Department for collecting and recovering amounts owed the 
     Department as authorized under chapter 17 of title 38, United 
     States Code, and the Federal Medical Care Recovery Act (42 
     U.S.C. 2651 et seq.): $4,400,000,000, plus reimbursements, of 
     which $250,000,000 shall be available until September 30, 
     2010.

                           medical facilities

       For necessary expenses for the maintenance and operation of 
     hospitals, nursing homes, and domiciliary facilities and 
     other necessary facilities of the Veterans Health 
     Administration; for administrative expenses in support of 
     planning, design, project management, real property 
     acquisition and disposition, construction, and renovation of 
     any facility under the jurisdiction or for the use of the 
     Department; for oversight, engineering, and architectural 
     activities not charged to project costs; for repairing, 
     altering, improving, or providing facilities in the several 
     hospitals and homes under the jurisdiction of the Department, 
     not otherwise provided for, either by contract or by the hire 
     of temporary employees and purchase of materials; for leases 
     of facilities; and for laundry services, $5,029,000,000, plus 
     reimbursements, of which $350,000,000 shall be available 
     until September 30, 2010: Provided, That $300,000,000 for 
     non-recurring maintenance provided under this heading shall 
     be allocated in a manner not subject to the Veterans 
     Equitable Resource Allocation.

                    medical and prosthetic research

       For necessary expenses in carrying out programs of medical 
     and prosthetic research and development as authorized by 
     chapter 73 of title 38, United States Code, $500,000,000, 
     plus reimbursements, to remain available until September 30, 
     2010.

                    National Cemetery Administration

       For necessary expenses of the National Cemetery 
     Administration for operations and maintenance, not otherwise 
     provided for, including uniforms or allowances therefor; 
     cemeterial expenses as authorized by law; purchase of one 
     passenger motor vehicle for use in cemeterial operations; 
     hire of passenger motor vehicles; and repair, alteration or 
     improvement of facilities under the jurisdiction of the 
     Department, $240,000,000, of which not to exceed $20,000,000 
     shall be available until September 30, 2010.

  The Acting CHAIRMAN. The Committee will rise informally.
  The SPEAKER pro tempore (Mr. Perlmutter) assumed the chair.

                          ____________________