[Congressional Record (Bound Edition), Volume 154 (2008), Part 14]
[House]
[Pages 19235-19317]
[From the U.S. Government Publishing Office, www.gpo.gov]




   COMPREHENSIVE AMERICAN ENERGY SECURITY AND CONSUMER PROTECTION ACT

  Mr. RAHALL. Mr. Speaker, pursuant to House Resolution 1433, I call up 
the bill (H.R. 6899) to advance the national security interests of the 
United States by reducing its dependency on oil through renewable and 
clean, alternative fuel technologies while building a bridge to the 
future through expanded access to Federal oil and natural gas 
resources, revising the relationship between the oil and gas industry 
and the consumers who own those resources and deserve a fair return 
from the development of publicly owned oil and gas, ending tax 
subsidies for large oil and gas companies, and facilitating energy 
efficiencies in the building, housing, and transportation sectors, and 
for other purposes, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6899

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Comprehensive American 
     Energy Security and Consumer Protection Act''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                  TITLE I--FEDERAL OIL AND GAS LEASING

        Subtitle A--Outer Continental Shelf Oil and Gas Leasing

Sec. 101. Prohibition on leasing.
Sec. 102. Opening of certain areas to oil and gas leasing.
Sec. 103. Coastal State roles and responsibilities.
Sec. 104. Protection of the environment and conservation of the natural 
              resources of the Outer Continental Shelf.
Sec. 105. Limitations.
Sec. 106. Prohibition on leasing in certain Federal protected areas.
Sec. 107. No effect on applicable law.
Sec. 108. Buy American requirements.
Sec. 109. Small, woman-owned, and minority-owned businesses.
Sec. 110. Definitions.

     Subtitle B--Diligent Development of Federal Oil and Gas Leases

Sec. 121. Clarification.
Sec. 122. Covered provisions.
Sec. 123. Regulations.
Sec. 124. Resource estimates and leasing program management indicators.

        Subtitle C--Royalties Under Offshore Oil and Gas Leases

Sec. 131. Short title.

[[Page 19236]]

Sec. 132. Price thresholds for royalty suspension provisions.
Sec. 133. Clarification of authority to impose price thresholds for 
              certain lease sales.
Sec. 134. Eligibility for new leases and the transfer of leases; 
              conservation of resources fees.
Sec. 135. Strategic Energy Efficiency and Renewables Reserve.

 Subtitle D--Accountability and Integrity in the Federal Energy Program

Sec. 141. Royalty in-kind.
Sec. 142. Fair return on production of Federal oil and gas resources.
Sec. 143. Royalty-in-kind ethics.
Sec. 144. Prohibition on certain gifts.
Sec. 145. Strengthening the ability of the Interior Department 
              Inspector General to secure cooperation.

             Subtitle E--Federal Oil and Gas Royalty Reform

Sec. 151. Amendments to definitions.
Sec. 152. Interest.
Sec. 153. Obligation period.
Sec. 154. Tolling agreements and subpoenas.
Sec. 155. Liability for royalty payments.

            Subtitle F--National Petroleum Reserve in Alaska

Sec. 161. Short title.
Sec. 162. Acceleration of lease sales for National Petroleum Reserve in 
              Alaska.
Sec. 163. National Petroleum Reserve in Alaska: pipeline construction.
Sec. 164. Alaska natural gas pipeline project facilitation.
Sec. 165. Project labor agreements and other pipeline requirements.
Sec. 166. Ban on export of Alaskan oil.

                         Subtitle G--Oil Shale

Sec. 171. Oil shale leasing.

                    TITLE II--CONSUMER ENERGY SUPPLY

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Sale and replacement of oil from the Strategic Petroleum 
              Reserve.

                    TITLE III--PUBLIC TRANSPORTATION

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Grants to improve public transportation services.
Sec. 304. Increased Federal share for Clean Air Act compliance.
Sec. 305. Transportation fringe benefits.
Sec. 306. Capital cost of contracting vanpool pilot program.
Sec. 307. National consumer awareness program.
Sec. 308. Exception to alternative fuel procurement requirement.

         TITLE IV--GREATER ENERGY EFFICIENCY IN BUILDING CODES

Sec. 401. Greater energy efficiency in building codes.

            TITLE V--FEDERAL RENEWABLE ELECTRICITY STANDARD

Sec. 501. Federal renewable electricity standard.

      TITLE VI--GREEN RESOURCES FOR ENERGY EFFICIENT NEIGHBORHOODS

Sec. 601. Short title and table of contents.
Sec. 602. Definitions.
Sec. 603. Implementation of energy efficiency participation incentives 
              for HUD programs.
Sec. 604. Minimum HUD energy efficiency standards and standards for 
              additional credit.
Sec. 605. Energy efficiency and conservation demonstration program for 
              multifamily housing projects assisted with project-based 
              rental assistance.
Sec. 606. Additional credit for Fannie Mae and Freddie Mac housing 
              goals for energy efficient mortgages.
Sec. 607. Duty to serve underserved markets for energy-efficient and 
              location-efficient mortgages.
Sec. 608. Consideration of energy efficiency under FHA mortgage 
              insurance programs and Native American and Native 
              Hawaiian loan guarantee programs.
Sec. 609. Energy efficient mortgages education and outreach campaign.
Sec. 610. Collection of information on energy-efficient and location 
              efficient mortgages through Home Mortgage Disclosure Act.
Sec. 611. Ensuring availability of homeowners insurance for homes not 
              connected to electricity grid.
Sec. 612. Mortgage incentives for energy-efficient multifamily housing.
Sec. 613. Energy efficiency certifications for housing with mortgages 
              insured by FHA.
Sec. 614. Assisted housing energy loan pilot program.
Sec. 615. Residential energy efficiency block grant program.
Sec. 616. Including sustainable development in comprehensive housing 
              affordability strategies.
Sec. 617. Grant program to increase sustainable low-income community 
              development capacity.
Sec. 618. Utilization of energy performance contracts in HOPE VI.
Sec. 619. HOPE VI green developments requirement.
Sec. 620. Consideration of energy-efficiency improvements in 
              appraisals.
Sec. 621. Assistance for Housing Assistance Council.
Sec. 622. Rural housing and economic development assistance.
Sec. 623. Loans to States and Indian tribes to carry out renewable 
              energy sources activities.
Sec. 624. Green banking centers.
Sec. 625. Public housing energy cost report.

                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Alternative fuel pumps.
Sec. 702. National Energy Center of Excellence.
Sec. 703. Sense of Congress regarding renewable biomass.

                   TITLE VIII--ENERGY TAX INCENTIVES

Sec. 800. Short title, etc.

                Subtitle A--Energy Production Incentives

                  Part 1--Renewable Energy Incentives

Sec. 801. Renewable energy credit.
Sec. 802. Production credit for electricity produced from marine 
              renewables.
Sec. 803. Energy credit.
Sec. 804. Credit for residential energy efficient property.
Sec. 805. Special rule to implement FERC and State electric 
              restructuring policy.
Sec. 806. New clean renewable energy bonds.

                  Part 2--Carbon Mitigation Provisions

Sec. 811. Expansion and modification of advanced coal project 
              investment credit.
Sec. 812. Expansion and modification of coal gasification investment 
              credit.
Sec. 813. Temporary increase in coal excise tax.
Sec. 814. Special rules for refund of the coal excise tax to certain 
              coal producers and exporters.
Sec. 815. Carbon audit of the tax code.

    Subtitle B--Transportation and Domestic Fuel Security Provisions

Sec. 821. Inclusion of cellulosic biofuel in bonus depreciation for 
              biomass ethanol plant property.
Sec. 822. Credits for biodiesel and renewable diesel.
Sec. 823. Clarification that credits for fuel are designed to provide 
              an incentive for United States production.
Sec. 824. Credit for new qualified plug-in electric drive motor 
              vehicles.
Sec. 825. Exclusion from heavy truck tax for idling reduction units and 
              advanced insulation.
Sec. 826. Restructuring of New York Liberty Zone tax credits.
Sec. 827. Transportation fringe benefit to bicycle commuters.
Sec. 828. Alternative fuel vehicle refueling property credit.
Sec. 829. Energy security bonds.
Sec. 830. Certain income and gains relating to alcohol fuels and 
              mixtures, biodiesel fuels and mixtures, and alternative 
              fuels and mixtures treated as qualifying income for 
              publicly traded partnerships.

       Subtitle C--Energy Conservation and Efficiency Provisions

Sec. 841. Qualified energy conservation bonds.
Sec. 842. Credit for nonbusiness energy property.
Sec. 843. Energy efficient commercial buildings deduction.
Sec. 844. Modifications of energy efficient appliance credit for 
              appliances produced after 2007.
Sec. 845. Accelerated recovery period for depreciation of smart meters 
              and smart grid systems.
Sec. 846. Qualified green building and sustainable design projects.

                     Subtitle D--Revenue Provisions

Sec. 851. Limitation of deduction for income attributable to domestic 
              production of oil, gas, or primary products thereof.
Sec. 852. Clarification of determination of foreign oil and gas 
              extraction income.
Sec. 853. Time for payment of corporate estimated taxes.

                  TITLE I--FEDERAL OIL AND GAS LEASING

        Subtitle A--Outer Continental Shelf Oil and Gas Leasing

     SEC. 101. PROHIBITION ON LEASING.

       (a) Prohibition.--The Outer Continental Shelf Lands Act (43 
     U.S.C. 1331 et seq.) notwithstanding, the Secretary shall not 
     take nor authorize any action related to oil and gas 
     preleasing or leasing of any area of the Outer Continental 
     Shelf that was not available for oil and gas leasing as of 
     July 1, 2008, unless that action is expressly authorized by 
     this subtitle or a statute enacted by Congress after the date 
     of enactment of this Act.
       (b) Treatment of Areas in Gulf of Mexico.--For purposes of 
     this subtitle, such action with respect to an area referred 
     to in section 104(a) of the Gulf of Mexico Energy Security 
     Act of 2006 (title I of division C of Public Law 109-432; 42 
     U.S.C. 1331 note) taken

[[Page 19237]]

     or authorized after the period referred to in that section 
     shall be treated as authorized by this subtitle, and such 
     leasing of such area shall be treated as authorized under 
     section 102(a).

     SEC. 102. OPENING OF CERTAIN AREAS TO OIL AND GAS LEASING.

       (a) Leasing Authorized.--The Secretary may offer for oil 
     and gas leasing, preleasing, or other related activities, in 
     accordance with this section and the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1331 et seq.) and subject to subsection 
     (b) of this section, section 103 of this Act, and section 307 
     of the Coastal Zone Management Act of 1972 (16 U.S.C. 1456), 
     any area--
       (1) that is in any Outer Continental Shelf Planning Area in 
     the Atlantic Ocean or Pacific Ocean that is located farther 
     than 50 miles from the coastline; and
       (2) that was not otherwise available for oil and gas 
     leasing, preleasing, and other related activities as of July 
     1, 2008.
       (b) Inclusion in Leasing Program Required.--An area may be 
     offered for lease under this section only if it has been 
     included in an Outer Continental Shelf leasing program 
     approved by the Secretary in accordance with section 18 of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1344).
       (c) Requirement To Conduct Lease Sales.--As soon as 
     practicable, consistent with subsection (b) and section 
     103(a), but not later than 3 years after the date of 
     enactment of this Act, and as appropriate thereafter, the 
     Secretary shall conduct oil and gas lease sales under the 
     Outer Continental Shelf lands Act (43 U.S.C. 1331 et seq.) 
     for areas that are made available for leasing by this 
     section.

     SEC. 103. COASTAL STATE ROLES AND RESPONSIBILITIES.

       (a) State Approval of Certain Leasing Required.--The 
     Secretary may not conduct any oil and gas leasing or 
     preleasing activity in any area made available for oil and 
     gas leasing by section 102(a) that is located within 100 
     miles from the coastline and within the seaward lateral 
     boundaries of an adjacent State, unless the adjacent State 
     has enacted a law approving of the issuance of such leasing 
     by the Secretary.
       (b) Consultation With Adjacent and Neighboring States.--
       (1) In general.--In addition to the consultation provided 
     for under section 19 of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1345), the Governor of a State that has a 
     coastline within 100 miles of an area of the Outer 
     Continental Shelf being considered for oil and gas leasing 
     and made available for such leasing by section 102(a) may 
     submit recommendations to the Secretary with respect to--
       (A) the size, timing, or location of a proposed lease sale; 
     or
       (B) a proposed development and production plan.
       (2) Requirements.--Subsections (b), (c), and (d) of section 
     19 of the Outer Continental Shelf Lands Act (43 U.S.C. 1345) 
     shall apply to the recommendations provided for in paragraph 
     (1).

     SEC. 104. PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF 
                   THE NATURAL RESOURCES OF THE OUTER CONTINENTAL 
                   SHELF.

       The Secretary--
       (1) shall ensure that any activity under this subtitle is 
     carried out in a manner that provides for the protection of 
     the coastal environment, marine environment, and human 
     environment of State coastal zones and the Outer Continental 
     Shelf; and
       (2) shall review all Federal regulations that are otherwise 
     applicable to activities authorized by this subtitle to 
     ensure environmentally sound oil and gas operations on the 
     Outer Continental Shelf.

     SEC. 105. LIMITATIONS.

       (a) Compliance With Memorandum.--Any oil and gas leasing of 
     areas of the Outer Continental Shelf shall be conducted in 
     accordance with the document entitled ``Memorandum of 
     Agreement between the Department of Defense and the 
     Department of the Interior on Mutual Concerns On The Outer 
     Continental Shelf'' and dated July 2, 1983, and such 
     revisions thereto as may be agreed to by the Secretary of 
     Defense and the Secretary of the Interior; except that no 
     such revisions may be made prior to January 21, 2009.
       (b) National Security.--Notwithstanding subsection (a), the 
     United States reserves the right to designate by and through 
     the Secretary of Defense, with the approval of the President, 
     national defense areas on the Outer Continental Shelf 
     pursuant to section 12(d) of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1341(d)).

     SEC. 106. PROHIBITION ON LEASING IN CERTAIN FEDERAL PROTECTED 
                   AREAS.

       (a) In General.--Notwithstanding any other provision of 
     this or any other Federal law, no lease or other 
     authorization may be issued by the Federal Government that 
     authorizes exploration, development, or production of oil or 
     natural gas in--
       (1) any marine national monument or national marine 
     sanctuary; or
       (2) the fishing grounds known as Georges Bank in the waters 
     of the United States, which is one of the largest and 
     historically important fishing grounds of the United States.
       (b) Identification of Coordinates of Georges Bank.--The 
     Secretary of Commerce, after publication of public notice and 
     an opportunity for public comment, shall identify the 
     specific coordinates that delineate Georges Bank in the 
     waters of the United States for purposes of subsection (a).

     SEC. 107. NO EFFECT ON APPLICABLE LAW.

       Except as otherwise specifically provided in this subtitle, 
     nothing in this subtitle waives or modifies any applicable 
     environmental or other law.

     SEC. 108. BUY AMERICAN REQUIREMENTS.

       (a) In General.--It is the intent of Congress that this 
     Act, among other things, result in a healthy and growing 
     American industrial, manufacturing, transportation, and 
     service sector employing the vast talents of America's 
     workforce to assist in the development of energy from 
     domestic sources. Moreover, the Congress intends to monitor 
     the deployment of personnel and material onshore and offshore 
     to encourage the development of American technology and 
     manufacturing to enable United States workers to benefit from 
     this Act by good jobs and careers, as well as the 
     establishment of important industrial facilities to support 
     expanded access to American resources.
       (b) Safeguard for Extraordinary Ability.--Section 30(a) of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is 
     amended in the matter preceding paragraph (1) by striking 
     ``regulations which'' and inserting ``regulations that shall 
     be supplemental and complimentary with and under no 
     circumstances a substitution for the provisions of the 
     Constitution and laws of the United States extended to the 
     subsoil and seabed of the outer Continental Shelf pursuant to 
     section 4 of this Act, except insofar as such laws would 
     otherwise apply to individuals who have extraordinary ability 
     in the sciences, arts, education, or business, which has been 
     demonstrated by sustained national or international acclaim, 
     and that''.

     SEC. 109. SMALL, WOMAN-OWNED, AND MINORITY-OWNED BUSINESSES.

       Section 8 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337) is amended by adding at the end the following:
       ``(q) Opportunities for Leasing.--The Secretary shall 
     establish goals to ensure equal opportunity to bid on 
     offshore leases for qualified small, women-owned, and 
     minority-owned exploration and production companies and may 
     implement, where appropriate, outreach programs for qualified 
     historically underutilized exploration and production 
     companies to participate in the bidding process for offshore 
     leases.''.

     SEC. 110. DEFINITIONS.

       In this subtitle:
       (1) Adjacent state.--The term ``adjacent State'' means, 
     with respect to any program, plan, lease sale, leased tract, 
     or other activity, proposed, conducted, or approved in 
     accordance with the Outer Continental Shelf Lands Act 
     (43U.S.C. 1331 et seq.), the State, the laws of which are 
     declared pursuant to section 4(a)(2) of the Outer Continental 
     Shelf Lands Act (43 U.S.C.1333(a)(2)) to be the law of the 
     United States for the portion of the Outer Continental Shelf 
     on which the program, plan, lease sale, leased tract, or 
     activity is, or is proposed to be, conducted.
       (2) Coastal environment.--The term ``coastal environment'' 
     has the meaning given that term in the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1331 et seq.).
       (3) Coastal zone.--The term ``coastal zone'' has the 
     meaning given that term in the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1331 et seq.).
       (4) Coastline.--The term ``coastline'' has the meaning 
     given the term ``coast line'' under section 2 of the 
     Submerged Lands Act (43 U.S.C. 1301).
       (5) Human environment.--The term ``human environment'' has 
     the meaning given that term in the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1331 et seq.).
       (6) Marine environment.--The term ``marine environment'' 
     has the meaning given that term in the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1331 et seq.).
       (7) Outer continental shelf.--The term ``Outer Continental 
     Shelf'' has the meaning given the term ``outer Continental 
     Shelf'' under section 2 of the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1331).
       (8) Seaward lateral boundary.--The term ``seaward lateral 
     boundary'' means a boundary drawn by the Minerals Management 
     Service in the Federal Register notice of January 3, 2006 
     (vol 71, no. 1).
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     Subtitle B--Diligent Development of Federal Oil and Gas Leases

     SEC. 121. CLARIFICATION.

       The lands subject to each lease that authorizes the 
     exploration for or development or production of oil or 
     natural gas that is issued under a provision of law described 
     in section 122 shall be diligently developed for such 
     production by the person holding the lease in order to ensure 
     timely production from the lease.

     SEC. 122. COVERED PROVISIONS.

       The provisions referred to in section 121 are the 
     following:
       (1) Section 17 of the Mineral Leasing Act (30 U.S.C. 226).

[[Page 19238]]

       (2) Section 107 of the Naval Petroleum Reserves Production 
     Act of 1976 (42 U.S.C. 6506a).
       (3) The Outer Continental Shelf Lands Act (43 11 U.S.C. 
     1331 et seq.).
       (4) The Mineral Leasing Act for Acquired Lands (30 U.S.C. 
     351 et seq.).

     SEC. 123. REGULATIONS.

       The Secretary shall issue regulations within 180 days after 
     the date of enactment of this Act that establish what 
     constitutes diligently developing for purposes of this 
     subtitle.

     SEC. 124. RESOURCE ESTIMATES AND LEASING PROGRAM MANAGEMENT 
                   INDICATORS.

       (a) In General.--The Secretary of the Interior shall 
     annually collect and report to Congress--
       (1) the number of leases and the number of acres of land 
     under Federal onshore oil and gas lease, per State and per 
     year the lease was issued--
       (A) on which seismic exploration activity is occurring or 
     has occurred;
       (B) on which permits to drill have been applied for, but 
     not yet awarded;
       (C) on which permits to drill have been approved, but no 
     drilling has yet occurred;
       (D) on which wells have been drilled but no production has 
     occurred; and
       (E) on which production is occurring;
       (2) resource estimates for and the number of acres of 
     Federal onshore and offshore lands, by State or offshore 
     planning area--
       (A) under lease, per year the lease was issued;
       (B) under lease and not producing, per year the lease was 
     issued;
       (C) under lease and drilled, but not producing, per year 
     the lease was issued;
       (D) offered for lease in a lease sale conducted during the 
     previous year, but not leased; and
       (E) available for leasing but not under lease or offered 
     for leasing in the previous year;
       (3) resource estimates for and the number of acres of 
     unleased Federal onshore and offshore land available for oil 
     and gas leasing;
       (4) resource estimates for and the number of acres of areas 
     of the Outer Continental Shelf--
       (A) included in proposed sale areas in the most recent 5-
     year plan developed by the Secretary pursuant to section 18 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 1344); 
     and
       (B) available for oil and gas leasing but not included in 
     the 5-year plan;
       (5) the number of leases and the number of acres of Federal 
     onshore land, per Bureau of Land Management field office, 
     offered in a lease sale conducted during the previous year, 
     including data on the number of protests filed and how many 
     lease tracts were withdrawn as a result of such protests, and 
     how many leases were offered and issued with stipulations as 
     a result of those protests, including the name of the entity 
     or entities filing the protests;
       (6) the number of applications for permits to drill 
     received, approved, pending, and denied, in the previous year 
     per Bureau of Land Management and Minerals Management Service 
     field office;
       (7) the number of environmental inspections conducted per 
     State and per Bureau of Land Management and Minerals 
     Management Service field office in the previous year; and
       (8) the number of full time staff equivalent (FTEs) devoted 
     to permit processing and oversight per Bureau of Land 
     Management and Minerals Management Service field office.
       (b) Covered Provisions.--Subsection (a) shall apply with 
     respect to leases and land eligible for leasing pursuant to--
       (1) section 17 of the Mineral Leasing Act (30 U.S.C. 226);
       (2) the Mineral Leasing Act for Acquired Lands (30 U.S.C. 
     351 et seq.);
       (3) section 107 of the Naval Petroleum Reserves Production 
     Act of 1976 (42 U.S.C. 6506a); or
       (4) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
     et seq.).

        Subtitle C--Royalties Under Offshore Oil and Gas Leases

     SEC. 131. SHORT TITLE.

       This subtitle may be cited as the ``Royalty Relief for 
     American Consumers Act of 2008''.

     SEC. 132. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.

       The Secretary of the Interior shall agree to a request by 
     any lessee to amend any oil and gas lease issued for any Gulf 
     of Mexico tract during the period of January 1, 1998, through 
     December 31, 1999, to incorporate price thresholds applicable 
     to royalty suspension provisions, that are equal to or less 
     than the price thresholds described in clauses (v) through 
     (vii) of section 8(a)(3)(C) of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1337(a)(3)(C)). Any amended lease shall 
     impose the new or revised price thresholds effective October 
     1, 2006. Existing lease provisions shall prevail through 
     September 30, 2006.

     SEC. 133. CLARIFICATION OF AUTHORITY TO IMPOSE PRICE 
                   THRESHOLDS FOR CERTAIN LEASE SALES.

       Congress reaffirms the authority of the Secretary of the 
     Interior under section 8(a)(1)(H) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)) to vary, based on 
     the price of production from a lease, the suspension of 
     royalties under any lease subject to section 304 of the Outer 
     Continental Shelf Deep Water Royalty Relief Act (Public Law 
     104-58; 43 U.S.C. 1337 note).

     SEC. 134. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF 
                   LEASES; CONSERVATION OF RESOURCES FEES.

       (a) Issuance of New Leases.--
       (1) In general.--The Secretary shall not issue any new 
     lease that authorizes the production of oil or natural gas in 
     the Gulf of Mexico under the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1331 et seq.) to a person described in 
     paragraph (2) unless--
       (A) the person has renegotiated each covered lease with 
     respect to which the person is a lessee, to modify the 
     payment responsibilities of the person to include price 
     thresholds that are equal to or less than the price 
     thresholds described in clauses (v) through (vii) of section 
     8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337(a)(3)(C)); or
       (B) the person has--
       (i) paid all fees established by the Secretary under 
     subsection (b) that are due with respect to each covered 
     lease for which the person is a lessee; or
       (ii) entered into an agreement with the Secretary under 
     which the person is obligated to pay such fees.
       (2) Persons described.--A person referred to in paragraph 
     (1) is a person that--
       (A) is a lessee that--
       (i) holds a covered lease on the date on which the 
     Secretary considers the issuance of the new lease; or
       (ii) was issued a covered lease before the date of 
     enactment of this Act, but transferred the covered lease to 
     another person or entity (including a subsidiary or affiliate 
     of the lessee) after the date of enactment of this Act; or
       (B) any other person or entity who has any direct or 
     indirect interest in, or who derives any benefit from, a 
     covered lease;
       (3) Multiple lessees.--
       (A) In general.--For purposes of paragraph (1), if there 
     are multiple lessees that own a share of a covered lease, the 
     Secretary may implement separate agreements with any lessee 
     with a share of the covered lease that modifies the payment 
     responsibilities with respect to the share of the lessee to 
     include price thresholds that are equal to or less than the 
     price thresholds described in clauses (v) through (vii) of 
     section 8(a)(3)(C) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1337(a)(3)(C)).
       (B) Treatment of share as covered lease.--Beginning on the 
     effective date of an agreement under subparagraph (A), any 
     share subject to the agreement shall not constitute a covered 
     lease with respect to any lessees that entered into the 
     agreement.
       (b) Conservation of Resources Fees.--
       (1) In general.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary of the Interior by 
     regulation shall establish--
       (A) a conservation of resources fee for producing Federal 
     oil and gas leases in the Gulf of Mexico; and
       (B) a conservation of resources fee for nonproducing 
     Federal oil and gas leases in the Gulf of Mexico.
       (2) Producing lease fee terms.--The fee under paragraph 
     (1)(A)--
       (A) subject to subparagraph (C), shall apply to covered 
     leases that are producing leases;
       (B) shall be set at $9 per barrel for oil and $1.25 per 
     million Btu for gas, respectively, in 2005 dollars; and
       (C) shall apply only to production of oil or gas 
     occurring--
       (i) in any calendar year in which the arithmetic average of 
     the daily closing prices for light sweet crude oil on the New 
     York Mercantile Exchange (NYMEX) exceeds $34.73 per barrel 
     for oil and $4.34 per million Btu for gas in 2005 dollars; 
     and
       (ii) on or after October 1, 2006.
       (3) Nonproducing lease fee terms.--The fee under paragraph 
     (1)(B)--
       (A) subject to subparagraph (C), shall apply to leases that 
     are nonproducing leases;
       (B) shall be set at $3.75 per acre per year in 2005 
     dollars; and
       (C) shall apply on and after October 1, 2006.
       (4) Treatment of receipts.--Amounts received by the United 
     States as fees under this subsection shall be treated as 
     offsetting receipts.
       (c) Transfers.--A lessee or any other person who has any 
     direct or indirect interest in, or who derives a benefit 
     from, a lease shall not be eligible to obtain by sale or 
     other transfer (including through a swap, spinoff, servicing, 
     or other agreement) any covered lease, the economic benefit 
     of any covered lease, or any other lease for the production 
     of oil or natural gas in the Gulf of Mexico under the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), 
     unless--
       (1) the lessee or other person has--
       (A) renegotiated all covered leases of the lessee or other 
     person; and
       (B) entered into an agreement with the Secretary to modify 
     the terms of all covered leases of the lessee or other person 
     to include limitations on royalty relief based on market 
     prices that are equal to or less than the price thresholds 
     described in clauses (v) through (vii) of section 8(a)(3)(C) 
     of the

[[Page 19239]]

     Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); 
     or
       (2) the lessee or other person has--
       (A) paid all fees established by the Secretary under 
     subsection (b) that are due with respect to each covered 
     lease for which the person is a lessee; or
       (B) entered into an agreement with the Secretary under 
     which the person is obligated to pay such fees.
       (d) Definitions.--In this section--
       (1) Covered lease.--The term ``covered lease'' means a 
     lease for oil or gas production in the Gulf of Mexico that 
     is--
       (A) in existence on the date of enactment of this Act;
       (B) issued by the Department of the Interior under section 
     304 of the Outer Continental Shelf Deep Water Royalty Relief 
     Act (43 U.S.C. 1337 note; Public Law 104-58); and
       (C) not subject to limitations on royalty relief based on 
     market price that are equal to or less than the price 
     thresholds described in clauses (v) through (vii) of section 
     8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337(a)(3)(C)).
       (2) Lessee.--The term ``lessee'' includes any person or 
     other entity that controls, is controlled by, or is in or 
     under common control with, a lessee.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 135. STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE.

       (a) In General.--For budgetary purposes, the net increase 
     in Federal receipts by reason of the enactment of this Act 
     shall be held in a separate account to be known as the 
     ``Strategic Energy Efficiency and Renewables Reserve''. The 
     Strategic Energy Efficiency and Renewables Reserve shall be 
     available to offset the cost of subsequent legislation--
       (1) to accelerate the use of clean domestic renewable 
     energy resources and alternative fuels;
       (2) to promote the utilization of energy-efficient products 
     and practices and energy conservation;
       (3) to increase research, development, and deployment of 
     clean renewable energy and efficiency technologies;
       (4) to provide increased assistance for low income home 
     energy and weatherization programs;
       (5) to further the purposes set forth in section 1(b) of 
     the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 
     460l-4); and
       (6) to increase research, development, and demonstration of 
     carbon capture and sequestration technologies.
       (b) Procedure for Adjustments.--
       (1) Budget committee chairman.--After the reporting of a 
     bill or joint resolution, or the offering of an amendment 
     thereto or the submission of a conference report thereon, 
     providing funding for the purposes set forth in subsection 
     (a) in excess of the amounts provided for those purposes for 
     fiscal year 2007, the chairman of the Committee on the Budget 
     of the applicable House of Congress shall make the 
     adjustments set forth in paragraph (2) for the amount of new 
     budget authority and outlays in that measure and the outlays 
     flowing from that budget authority.
       (2) Matters to be adjusted.--The adjustments referred to in 
     paragraph (1) are to be made to--
       (A) the discretionary spending limits, if any, set forth in 
     the appropriate concurrent resolution on the budget;
       (B) the allocations made pursuant to the appropriate 
     concurrent resolution on the budget pursuant to section 
     302(a) of Congressional Budget Act of 1974; and
       (C) the budget aggregates contained in the appropriate 
     concurrent resolution on the budget as required by section 
     301(a) of Congressional Budget Act of 1974.
       (3) Amounts of adjustments.--The adjustments referred to in 
     paragraphs (1) and (2) shall not exceed the total of the 
     receipts over a 10-year period, as estimated by the 
     Congressional Budget Office upon the enactment of this Act.

 Subtitle D--Accountability and Integrity in the Federal Energy Program

     SEC. 141. ROYALTY IN-KIND.

       Section 342(d) of the Energy Policy Act of 2005 (42 U.S.C. 
     15902(d)) is amended to read as follows:
       ``(d) Benefit to the United States Required.--The Secretary 
     may receive oil or gas royalties in-kind only if the 
     Secretary determines that receiving royalties in-kind 
     provides benefits to the United States that are greater than 
     or equal to the benefits that would likely be received if the 
     royalties were taken in-value, and if the Secretary 
     determines that receiving royalties in-kind is consistent 
     with the fiduciary duties of the Secretary on behalf of the 
     American people.''.

     SEC. 142. FAIR RETURN ON PRODUCTION OF FEDERAL OIL AND GAS 
                   RESOURCES.

       (a) Royalty Payments.--The Secretary of the Interior shall 
     take all steps necessary to ensure that lessees under leases 
     for exploration, development, and production of oil and 
     natural gas on Federal lands, including leases under the 
     Mineral Leasing Act (30 U.S.C. 181 et seq.), the Mineral 
     Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), the 
     Outer Continental Shelf Lands Act (30 U.S.C. 1331 et seq.), 
     and all other mineral leasing laws, are making prompt, 
     transparent, and accurate royalty payments under such leases.
       (b) Recommendations for Legislative Action.--In order to 
     facilitate implementation of subsection (a), the Secretary of 
     the Interior shall, within 180 days after the date of 
     enactment of this Act and in consultation with the affected 
     States, prepare and transmit to Congress recommendations for 
     legislative action to improve the accurate collection of 
     Federal oil and gas royalties.

     SEC. 143. ROYALTY-IN-KIND ETHICS.

       (a) Gift Ban.--
       (1) Prohibition.--No employee of the Minerals Management 
     Service may--
       (A) accept gifts of any value from any prohibited source; 
     or
       (B) seek, accept, or hold employment with any prohibited 
     source.
       (2) Penalty.--Any person who violates paragraph (1) shall 
     be subject to such penalties as the Secretary of the Interior 
     considers appropriate, which may include suspension without 
     pay or termination.
       (b) Training.--The Secretary of the Interior shall 
     implement a robust ethics training program for employees of 
     the Royalty-In-Kind division of the Minerals Management 
     Service that is in addition to the standard ethics training 
     that such employees are already required to attend. Such 
     additional training program shall require written 
     certification by each such employee that the employee knows 
     and understands the ethics requirements by which the employee 
     is bound.
       (c) Code of Ethics.--The Secretary of the Interior shall 
     promulgate, within 180 days after the date of the enactment 
     of this Act, a code of ethics for all employees of the 
     Minerals Management Service. The code of ethics shall provide 
     clear direction relating to the obligations, prohibitions, 
     and consequences of misconduct.
       (d) Drug Testing.--The Secretary of the Interior shall, 
     within 180 days after the date of the enactment of this Act, 
     implement a random drug testing program for the employees of 
     the royalty-in-kind division of the Minerals Management 
     Service.
       (e) Definitions.--In this section:
       (1) Gift.--The term ``gift''--
       (A) includes any gratuity, favor, discount, entertainment, 
     hospitality, loan, forbearance, or other item having monetary 
     value; and
       (B) includes services as well as gifts of training, 
     transportation, local travel, lodgings and meals, whether 
     provided in-kind, by purchase of a ticket, payment in 
     advance, or reimbursement after the expense has been 
     incurred.
       (2) Prohibited source.--The term ``prohibited source'' 
     means, with respect to an employee, any person who--
       (A) is seeking official action by the Minerals Management 
     Service;
       (B) does business or seeks to do business with the Minerals 
     Management Service;
       (C) conducts activities regulated by the Minerals 
     Management Service;
       (D) has interests that may be substantially affected by 
     performance or nonperformance of the employee's official 
     duties; or
       (E) is an organization a majority of whose members are 
     described in any of subparagraphs (A) through (D).
       (f) Other Ethics Requirements Apply.--The prohibitions and 
     requirements under this section are to be in addition to any 
     other requirements that apply to employees of the Minerals 
     Management Service.

     SEC. 144. PROHIBITION ON CERTAIN GIFTS.

       Section 201 of title 18, United States Code, is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f); and
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d)(1) Whoever--
       ``(A) seeking or holding one or more leases of property 
     from the United States, through the Minerals Management 
     Service of the Department of the Interior, for purposes of 
     oil or mineral extraction, knowingly engages in a course of 
     conduct that consists of providing things of value to a 
     public official of, or person who has been selected to be a 
     public official of, the Minerals Management Service, because 
     of the official's or person's position in the Minerals 
     Management Service; or
       ``(B) being a public official of, or person who has been 
     selected to be a public official of, the Minerals Management 
     Service of the Department of the Interior, knowingly engages 
     in a course of conduct consisting of receiving things of 
     value, knowing that such things of value were provided 
     because of the official's or person's position in the 
     Minerals Management Service, from a person seeking or holding 
     one or more leases of property from the United States, 
     through the Minerals Management Service, for purposes of oil 
     or mineral extraction;
     shall be fined under this title, imprisoned for not more than 
     two years, or both, except that a corporation, partnership, 
     or other organization that violates subparagraph (A) shall be 
     fined $25,000,000 and an amount equal to its gross revenues 
     arising, during the period in which the course of conduct 
     described in subparagraph (A) occurred, from the lease or 
     leases described in that subparagraph.

[[Page 19240]]

       ``(2) For purposes of this subsection, the term `course of 
     conduct' means a series of acts over a period of time 
     evidencing a continuity of purpose.
       ``(3)(A) The Attorney General may bring a civil action in 
     the appropriate United States district court against any 
     corporation, partnership, or other organization that engages 
     in conduct constituting an offense under paragraph (1)(A) 
     and, upon proof of such conduct by a preponderance of the 
     evidence, such corporation, partnership, or other 
     organization shall be subject to a civil penalty of not more 
     than $25,000,000 and an amount equal to its gross revenues 
     arising, during the period in which the course of conduct 
     described in paragraph (1)(A) occurred, from the lease or 
     leases described in that paragraph.
       ``(B) If a corporation, partnership, or other organization 
     is held liable for a civil penalty under subparagraph (A) for 
     a violation of paragraph (1)(A), the United States may 
     terminate the lease or leases that were the subject to the 
     violation, and the United States shall not be liable for any 
     damages to any party to such lease or leases by reason of 
     such termination.
       ``(C) The imposition of a civil penalty under this 
     paragraph does not preclude any other criminal or civil 
     statutory, common law, or administrative remedy that is 
     available to the United States, or any other person, under 
     this section or any other law.''.

     SEC. 145. STRENGTHENING THE ABILITY OF THE INTERIOR 
                   DEPARTMENT INSPECTOR GENERAL TO SECURE 
                   COOPERATION.

       The Inspector General Act of 1978 (5 U.S.C. App.) is 
     amended by inserting after section 8K the following:


     ``special provisions concerning the department of the interior

       ``Sec. 8L.  Notwithstanding section 6(a)(4), the Inspector 
     General of the Department of the Interior may, in any inquiry 
     or investigation involving leases of property from the United 
     States through the Minerals Management Services for purposes 
     of oil and mineral extraction, require by subpoena the 
     production of all information, documents, reports, answers, 
     records, accounts, papers, and other data in any medium, 
     including electronically stored information and tangible 
     things, and testimony necessary in the performance of the 
     functions assigned by this Act, which subpoena, in the case 
     of contumacy or refusal to obey, shall be enforceable by 
     order of any appropriate United States district court: 
     Provided, that procedures other than subpoenas shall be used 
     by the Inspector General to obtain documents, information, or 
     testimony from Federal agencies.''.

             Subtitle E--Federal Oil and Gas Royalty Reform

     SEC. 151. AMENDMENTS TO DEFINITIONS.

       Section 3 of the Federal Oil and Gas Royalty Management Act 
     of 1982 (30 U.S.C. 1702) is amended--
       (1) in paragraph (20)(A), by striking ``: Provided, That'' 
     and all that follows through ``subject of the judicial 
     proceeding'';
       (2) in paragraph (20)(B), by striking ``(with written 
     notice to the lessee who designated the designee)'';
       (3) in paragraph (23)(A), by striking ``(with written 
     notice to the lessee who designated the designee)'';
       (4) by amending paragraph (24) to read as follows:
       ``(24) `designee' means any person who pays, offsets, or 
     credits monies, makes adjustments, requests and receives 
     refunds, or submits reports with respect to payments a lessee 
     must make pursuant to section 102(a);'';
       (5) in paragraph (25)(B), by striking ``(subject to the 
     provisions of section 102(a) of this Act)''; and
       (6) in paragraph (26), by striking ``(with notice to the 
     lessee who designated the designee)''.

     SEC. 152. INTEREST.

       (a) Estimated Payments; Interest on Amount of 
     Underpayment.--Section 111(j) of the Federal Oil and Gas 
     Royalty Management Act of 1982 (30 U.S.C. 1721(j)) is amended 
     by striking ``If the estimated payment exceeds the actual 
     royalties due, interest is owed on the overpayment.''.
       (b) Overpayments.--Section 111 of the Federal Oil and Gas 
     Royalty Management Act of 1982 (30 U.S.C. 1721) is amended by 
     striking subsections (h) and (i).
       (c) Effective Date.--The amendments made by this section 
     shall be effective one year after the date of enactment of 
     this Act.

     SEC. 153. OBLIGATION PERIOD.

       Section 115(c) of the Federal Oil and Gas Royalty 
     Management Act of 1982 (30 U.S.C. 1724(c)) is amended by 
     adding at the end the following:
       ``(3) Adjustments.--In the case of an adjustment under 
     section 111A(a) (30 U.S.C. 1721a(a)) in which a recoupment by 
     the lessee results in an underpayment of an obligation, for 
     purposes of this Act the obligation becomes due on the date 
     the lessee or its designee makes the adjustment.''.

     SEC. 154. TOLLING AGREEMENTS AND SUBPOENAS.

       (a) Tolling Agreements.--Section 115(d)(1) of the Federal 
     Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 
     1724(d)(1)) is amended by striking ``(with notice to the 
     lessee who designated the designee)''.
       (b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and 
     Gas Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) 
     is amended by striking ``(with notice to the lessee who 
     designated the designee, which notice shall not constitute a 
     subpoena to the lessee)''.

     SEC. 155. LIABILITY FOR ROYALTY PAYMENTS.

       Section 102(a) of the Federal Oil and Gas Royalty 
     Management Act of 1982 (30 U.S.C. 1712(a)) is amended to read 
     as follows:
       ``(a) In order to increase receipts and achieve effective 
     collections of royalty and other payments, a lessee who is 
     required to make any royalty or other payment under a lease 
     or under the mineral leasing laws, shall make such payments 
     in the time and manner as may be specified by the Secretary 
     or the applicable delegated State. Any person who pays, 
     offsets or credits monies, makes adjustments, requests and 
     receives refunds, or submits reports with respect to payments 
     the lessee must make is the lessee's designee under this Act. 
     Notwithstanding any other provision of this Act to the 
     contrary, a designee shall be liable for any payment 
     obligation of any lessee on whose behalf the designee pays 
     royalty under the lease. The person owning operating rights 
     in a lease and a person owning legal record title in a lease 
     shall be liable for that person's pro rata share of payment 
     obligations under the lease.''.

            Subtitle F--National Petroleum Reserve in Alaska

     SEC. 161. SHORT TITLE.

       This subtitle may be cited as the ``Drill Responsibly in 
     Leased Lands Act of 2008''.

     SEC. 162. ACCELERATION OF LEASE SALES FOR NATIONAL PETROLEUM 
                   RESERVE IN ALASKA.

       Section 107(d) of the Naval Petroleum Reserves Production 
     Act of 1976 (42 U.S.C. 6506a(d)) is amended--
       (1) by striking ``(d)'' and all that follows through ``; 
     first lease sale'' and inserting the following:
       ``(d) Lease Sales.--
       ``(1) First lease sale.--The first lease sale''; and
       (2) by adding at the end the following:
       ``(2) Subsequent lease sales.--The Secretary shall 
     accelerate, to the maximum extent practicable, competitive 
     and environmentally responsible leasing of oil and gas in the 
     Reserve in accordance with this Act and all applicable 
     environmental laws, including at least 1 lease sale during 
     each of calendar years 2009 through 2013.''.

     SEC. 163. NATIONAL PETROLEUM RESERVE IN ALASKA: PIPELINE 
                   CONSTRUCTION.

       The Federal Energy Regulatory Commission shall facilitate, 
     in an environmentally responsible manner and in coordination 
     with the Secretary of the Interior, the Secretary of 
     Transportation, the Secretary of Energy, and the State of 
     Alaska, the construction of pipelines necessary to transport 
     oil and natural gas from or through the National Petroleum 
     Reserve in Alaska to existing transportation or processing 
     infrastructure on the North Slope of Alaska.

     SEC. 164. ALASKA NATURAL GAS PIPELINE PROJECT FACILITATION.

       (a) Findings.--Congress finds the following:
       (1) Over 35 trillion cubic feet of natural gas reserves 
     have been discovered on Federal and State lands currently 
     open to oil and natural gas leasing on the North Slope of 
     Alaska.
       (2) These gas supplies could make a significant 
     contribution to meeting the energy needs of the United 
     States, but the lack of a natural gas transportation system 
     has prevented these natural gas reserves from reaching 
     markets in the lower 48 States.
       (b) Facilitation by President.--The President shall, 
     pursuant to the Alaska Natural Gas Pipeline Act (division C 
     of Public Law 108-324; 15 U.S.C. 720 et seq.) and other 
     applicable law, coordinate with producers of natural gas on 
     the North Slope of Alaska, Federal agencies, the State of 
     Alaska, Canadian authorities, pipeline companies, and other 
     interested persons in order to facilitate construction of a 
     natural gas pipeline from Alaska to United States markets as 
     expeditiously as possible.

     SEC. 165. PROJECT LABOR AGREEMENTS AND OTHER PIPELINE 
                   REQUIREMENTS.

       (a) Project Labor Agreements.--The President, as a term and 
     condition of any permit required under Federal law for the 
     pipelines referred to in section 163 and 164, and in 
     recognizing the Government's interest in labor stability and 
     in the ability of construction labor and management to meet 
     the particular needs and conditions of such pipelines to be 
     developed under such permits and the special concerns of the 
     holders of such permits, shall require that the operators of 
     such pipelines and their agents and contractors negotiate to 
     obtain a project labor agreement for the employment of 
     laborers and mechanics on production, maintenance, and 
     construction for such pipelines.
       (b) Pipeline Maintenance.--The Secretary of Transportation 
     shall require every pipeline operator authorized to transport 
     oil and gas produced under Federal oil and gas leases in 
     Alaska through the Trans-Alaska Pipeline, any pipeline 
     constructed pursuant to

[[Page 19241]]

     section 163 or 164 of this Act, or any other federally 
     approved pipeline transporting oil and gas from the North 
     Slope of Alaska, to certify to the Secretary of 
     Transportation annually that such pipeline is being fully 
     maintained and operated in an efficient manner. The Secretary 
     of Transportation shall assess appropriate civil penalties 
     for violations of this requirement in the same manner as 
     civil penalties are assessed for violations under section 
     60122(a)(1) of title 49, United States Code.

     SEC. 166. BAN ON EXPORT OF ALASKAN OIL.

       (a) Repeal of Provision Authorizing Exports.--Section 28(s) 
     of the Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.
       (b) Reimposition of Prohibition on Crude Oil Exports.--Upon 
     the effective date of this Act, subsection (d) of section 7 
     of the Export Administration Act of 1979 (50 U.S.C. App. 
     2406(d)), shall be effective, and any other provision of that 
     Act (including sections 11 and 12) shall be effective to the 
     extent necessary to carry out such section 7(d), 
     notwithstanding section 20 of that Act or any other provision 
     of law that would otherwise allow exports of oil to which 
     such section 7(d) applies.

                         Subtitle G--Oil Shale

     SEC. 171. OIL SHALE LEASING.

       (a) Repeal of Restriction.--Section 433 of the Department 
     of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (division F of Public Law 110-161; 
     121 Stat. 2152) is repealed.
       (b) Requirement That State Approve of Oil Shale Leasing.--
     Section 369 of the Energy Policy Act of 2005 (42 U.S.C. 
     15927) is amended by adding at the end the following:
       ``(t) Requirement That State Approve of Oil Shale 
     Leasing.--No lease may be issued under this section, section 
     21 of the Mineral Leasing Act (30 U.S.C. 241), or any other 
     law, for exploration, research, development, or production of 
     oil shale on lands located in a State, unless the State has 
     enacted a law approving of Federal oil shale leasing in the 
     State. Nothing in this subsection shall be construed as 
     preventing the Department of the Interior from preparing an 
     environmental impact statement under the existing authority 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) with respect to an individual lease sale 
     proposed under the commercial leasing program established 
     under this section.''.

                    TITLE II--CONSUMER ENERGY SUPPLY

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Consumer Energy Supply Act 
     of 2008''.

     SEC. 202. DEFINITIONS.

       In this title--
       (1) the term ``light grade petroleum'' means crude oil with 
     an API gravity of 30 degrees or higher;
       (2) the term ``heavy grade petroleum'' means crude oil with 
     an API gravity of 26 degrees or lower; and
       (3) the term ``Secretary'' means the Secretary of Energy.

     SEC. 203. SALE AND REPLACEMENT OF OIL FROM THE STRATEGIC 
                   PETROLEUM RESERVE.

       (a) Initial Petroleum Sale and Replacement.--
     Notwithstanding section 161 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6241), the Secretary shall 
     publish a plan not later than 15 days after the date of 
     enactment of this Act to--
       (1) sell, in the amounts and on the schedule described in 
     subsection (b), light grade petroleum from the Strategic 
     Petroleum Reserve and acquire an equivalent volume of heavy 
     grade petroleum;
       (2) deposit the cash proceeds from sales under paragraph 
     (1) into the SPR Petroleum Account established under section 
     167 of the Energy Policy and Conservation Act (42 U.S.C. 
     6247); and
       (3) from the cash proceeds deposited pursuant to paragraph 
     (2), withdraw the amount necessary to pay for the direct 
     administrative and operational costs of the sale and 
     acquisition.
       (b) Amounts and Schedule.--The sale and acquisition 
     described in subsection (a) shall require the offer for sale 
     of a total quantity of 70,000,000 barrels of light grade 
     petroleum from the Strategic Petroleum Reserve. The sale 
     shall commence, whether or not a plan has been published 
     under subsection (a), not later than 30 days after the date 
     of enactment of this Act and be completed no more than six 
     months after the date of enactment of this Act, with at least 
     20,000,000 barrels to be offered for sale within the first 60 
     days after the date of enactment of this Act. In no event 
     shall the Secretary sell barrels of oil under subsection (a) 
     that would result in a Strategic Petroleum Reserve that 
     contains fewer than 90 percent of the total amount of barrels 
     in the Strategic Petroleum Reserve as of the date of 
     enactment of this Act. Heavy grade petroleum, to replace the 
     quantities of light grade petroleum sold under this section, 
     shall be obtained through acquisitions which--
       (1) shall commence no sooner than 6 months after the date 
     of enactment of this Act;
       (2) shall be completed, at the discretion of the Secretary, 
     not later than 5 years after the date of enactment of this 
     Act;
       (3) shall be carried out in a manner so as to maximize the 
     monetary value to the Federal Government; and
       (4) shall be carried out using the receipts from the sales 
     of light grade petroleum authorized under this section.
       (c) Deferrals.--The Secretary is encouraged to, when 
     economically beneficial and practical, grant requests to 
     defer scheduled deliveries of petroleum to the Reserve under 
     subsection (a) if the deferral will result in a premium paid 
     in additional barrels of oil which will reduce the cost of 
     oil acquisition and increase the volume of oil delivered to 
     the Reserve or yield additional cash bonuses.

                    TITLE III--PUBLIC TRANSPORTATION

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Saving Energy Through 
     Public Transportation Act of 2008''.

     SEC. 302. FINDINGS.

       Congress finds the following:
       (1) In 2007, people in the United States took more than 
     10.3 billion trips using public transportation, the highest 
     level in 50 years.
       (2) Public transportation use in the United States is up 32 
     percent since 1995, a figure that is more than double the 
     growth rate of the Nation's population and is substantially 
     greater than the growth rate for vehicle miles traveled on 
     the Nation's highways for that same period.
       (3) Public transportation use saves fuel, reduces 
     emissions, and saves money for the people of the United 
     States.
       (4) The direct petroleum savings attributable to public 
     transportation use is 1.4 billion gallons per year, and when 
     the secondary effects of transit availability on travel are 
     also taken into account, public transportation use saves the 
     United States the equivalent of 4.2 billion gallons of 
     gasoline per year (more than 11 million gallons of gasoline 
     per day).
       (5) Public transportation use in the United States is 
     estimated to reduce carbon dioxide emissions by 37 million 
     metric tons annually.
       (6) An individual who commutes to work using a single 
     occupancy vehicle can reduce carbon dioxide emissions by 20 
     pounds per day (more than 4,800 pounds per year) by switching 
     to public transportation.
       (7) Public transportation use provides an affordable 
     alternative to driving, as households that use public 
     transportation save an average of $6,251 every year.
       (8) Although under existing laws Federal employees in the 
     National Capital Region receive transit benefits, transit 
     benefits should be available to all Federal employees in the 
     United States so that the Federal Government sets a leading 
     example of greater public transportation use.
       (9) Public transportation stakeholders should engage and 
     involve local communities in the education and promotion of 
     the importance of utilizing public transportation.
       (10) Increasing public transportation use is a national 
     priority.

     SEC. 303. GRANTS TO IMPROVE PUBLIC TRANSPORTATION SERVICES.

       (a) Authorizations of Appropriations.--
       (1) Urbanized area formula grants.--In addition to amounts 
     allocated under section 5338(b)(2)(B) of title 49, United 
     States Code, to carry out section 5307 of such title, there 
     is authorized to be appropriated $750,000,000 for each of 
     fiscal years 2008 and 2009 to carry out such section 5307. 
     Such funds shall be apportioned, not later than 7 days after 
     the date on which the funds are appropriated, in accordance 
     with section 5336 (other than subsections (i)(1) and (j)) of 
     such title but may not be combined or commingled with any 
     other funds apportioned under such section 5336.
       (2) Formula grants for other than urbanized areas.--In 
     addition to amounts allocated under section 5338(b)(2)(G) of 
     title 49, United States Code, to carry out section 5311 of 
     such title, there is authorized to be appropriated 
     $100,000,000 for each of fiscal years 2008 and 2009 to carry 
     out such section 5311. Such funds shall be apportioned, not 
     later than 7 days after the date on which the funds are 
     appropriated, in accordance with such section 5311 but may 
     not be combined or commingled with any other funds 
     apportioned under such section 5311.
       (b) Use of Funds.--Notwithstanding sections 5307 and 5311 
     of title 49, United States Code, the Secretary of 
     Transportation may make grants under such sections from 
     amounts appropriated under subsection (a) only for one or 
     more of the following:
       (1) If the recipient of the grant is reducing, or certifies 
     to the Secretary within the time the Secretary prescribes 
     that, during the term of the grant, the recipient will reduce 
     one or more fares the recipient charges for public 
     transportation, or in the case of subsection (f) of such 
     section 5311, intercity bus service, those operating costs of 
     equipment and facilities being used to provide the public 
     transportation, or in the case of subsection (f) of such 
     section 5311, intercity bus service, that the recipient is no 
     longer able to pay from the revenues derived from such fare 
     or fares as a result of such reduction.
       (2) If the recipient of the grant is expanding, or 
     certifies to the Secretary within the time the Secretary 
     prescribes that, during the term of the grant, the recipient 
     will expand public transportation service, or in the case of 
     subsection (f) of such section 5311, intercity bus service, 
     those operating and capital costs of equipment and facilities 
     being used to provide the public transportation service, or 
     in the case of subsection (f)

[[Page 19242]]

     of such section 5311, intercity bus service, that the 
     recipient incurs as a result of the expansion of such 
     service.
       (3) To avoid increases in fares for public transportation, 
     or in the case of subsection (f) of such section 5311, 
     intercity bus service, or decreases in current public 
     transportation service, or in the case of subsection (f) of 
     such section 5311, intercity bus service, that would 
     otherwise result from an increase in costs to the public 
     transportation or intercity bus agency for transportation-
     related fuel or meeting additional transportation-related 
     equipment or facility maintenance needs, if the recipient of 
     the grant certifies to the Secretary within the time the 
     Secretary prescribes that, during the term of the grant, the 
     recipient will not increase the fares that the recipient 
     charges for public transportation, or in the case of 
     subsection (f) of such section 5311, intercity bus service, 
     or, will not decrease the public transportation service, or 
     in the case of subsection (f) of such section 5311, intercity 
     bus service, that the recipient provides.
       (4) If the recipient of the grant is acquiring, or 
     certifies to the Secretary within the time the Secretary 
     prescribes that, during the term of the grant, the recipient 
     will acquire, clean fuel or alternative fuel vehicle-related 
     equipment or facilities for the purpose of improving fuel 
     efficiency, the costs of acquiring the equipment or 
     facilities.
       (5) If the recipient of the grant is establishing or 
     expanding, or certifies to the Secretary within the time the 
     Secretary prescribes that, during the term of the grant, the 
     recipient will establish or expand, commuter matching 
     services to provide commuters with information and assistance 
     about alternatives to single occupancy vehicle use, those 
     administrative costs in establishing or expanding such 
     services.
       (c) Federal Share.--Notwithstanding any other provision of 
     law, the Federal share of the costs for which a grant is made 
     under this section shall be 100 percent.
       (d) Period of Availability.--Funds appropriated under this 
     section shall remain available for a period of 2 fiscal 
     years.

     SEC. 304. INCREASED FEDERAL SHARE FOR CLEAN AIR ACT 
                   COMPLIANCE.

       Notwithstanding section 5323(i)(1) of title 49, United 
     States Code, a grant for a project to be assisted under 
     chapter 53 of such title during fiscal years 2008 and 2009 
     that involves acquiring clean fuel or alternative fuel 
     vehicle-related equipment or facilities for the purposes of 
     complying with or maintaining compliance with the Clean Air 
     Act (42 U.S.C. 7401 et seq.) shall be for 100 percent of the 
     net project cost of the equipment or facility attributable to 
     compliance with that Act unless the grant recipient requests 
     a lower grant percentage.

     SEC. 305. TRANSPORTATION FRINGE BENEFITS.

       (a) Requirement That Agencies Offer Transit Pass 
     Transportation Fringe Benefits to Their Employees 
     Nationwide.--
       (1) In general.--Section 3049(a)(1) of the Safe, 
     Accountable, Flexible, Efficient Transportation Equity Act: A 
     Legacy for Users (5 U.S.C. 7905 note; 119 Stat. 1711) is 
     amended--
       (A) by striking ``Effective'' and all that follows through 
     ``each covered agency'' and inserting ``Each agency''; and
       (B) by inserting ``at a location in an urbanized area of 
     the United States that is served by fixed route public 
     transportation'' before ``shall be offered''.
       (2) Conforming amendments.--Section 3049(a) of such Act (5 
     U.S.C. 7905 note; 119 Stat. 1711) is amended--
       (A) in paragraph (3)--
       (i) by striking subparagraph (A); and
       (ii) by redesignating subparagraphs (B) through (F) as 
     subparagraphs (A) through (E), respectively; and
       (B) in paragraph (4) by striking ``a covered agency'' and 
     inserting ``an agency''.
       (b) Benefits Described.--Section 3049(a)(2) of such Act (5 
     U.S.C. 7905 note; 119 Stat. 1711) is amended by striking the 
     period at the end and inserting the following: ``, except 
     that the maximum level of such benefits shall be the maximum 
     amount which may be excluded from gross income for qualified 
     parking as in effect for a month under section 132(f)(2)(B) 
     of the Internal Revenue Code of 1986.''.
       (c) Guidance.--Section 3049(a) of such Act (5 U.S.C. 7905 
     note; 119 Stat. 1711) is amended by adding at the end the 
     following:
       ``(5) Guidance.--
       ``(A) Issuance.--Not later than 60 days after the date of 
     enactment of this paragraph, the Secretary of Transportation 
     shall issue guidance on nationwide implementation of the 
     transit pass transportation fringe benefits program under 
     this subsection.
       ``(B) Uniform application.--
       ``(i) In general.--The guidance to be issued under 
     subparagraph (A) shall contain a uniform application for use 
     by all Federal employees applying for benefits from an agency 
     under the program.
       ``(ii) Required information.--As part of such an 
     application, an employee shall provide, at a minimum, the 
     employee's home and work addresses, a breakdown of the 
     employee's commuting costs, and a certification of the 
     employee's eligibility for benefits under the program.
       ``(iii) Warning against false statements.--Such an 
     application shall contain a warning against making false 
     statements in the application.
       ``(C) Independent verification requirements.--The guidance 
     to be issued under subparagraph (A) shall contain independent 
     verification requirements to ensure that, with respect to an 
     employee of an agency--
       ``(i) the eligibility of the employee for benefits under 
     the program is verified by an official of the agency;
       ``(ii) employee commuting costs are verified by an official 
     of the agency; and
       ``(iii) records of the agency are checked to ensure that 
     the employee is not receiving parking benefits from the 
     agency.
       ``(D) Program implementation requirements.--The guidance to 
     be issued under subparagraph (A) shall contain program 
     implementation requirements applicable to each agency to 
     ensure that--
       ``(i) benefits provided by the agency under the program are 
     adjusted in cases of employee travel, leave, or change of 
     address;
       ``(ii) removal from the program is included in the 
     procedures of the agency relating to an employee separating 
     from employment with the agency; and
       ``(iii) benefits provided by the agency under the program 
     are made available using an electronic format (rather than 
     using paper fare media) where such a format is available for 
     use.
       ``(E) Enforcement and penalties.--The guidance to be issued 
     under subparagraph (A) shall contain a uniform administrative 
     policy on enforcement and penalties. Such policy shall be 
     implemented by each agency to ensure compliance with program 
     requirements, to prevent fraud and abuse, and, as 
     appropriate, to penalize employees who have abused or misused 
     the benefits provided under the program.
       ``(F) Periodic reviews.--The guidance to be issued under 
     subparagraph (A) shall require each agency, not later than 
     September 1 of the first fiscal year beginning after the date 
     of enactment of this paragraph, and every 3 years thereafter, 
     to develop and submit to the Secretary a review of the 
     agency's implementation of the program. Each such review 
     shall contain, at a minimum, the following:
       ``(i) An assessment of the agency's implementation of the 
     guidance, including a summary of the audits and 
     investigations, if any, of the program conducted by the 
     Inspector General of the agency.
       ``(ii) Information on the total number of employees of the 
     agency that are participating in the program.
       ``(iii) Information on the total number of single occupancy 
     vehicles removed from the roadway network as a result of 
     participation by employees of the agency in the program.
       ``(iv) Information on energy savings and emissions 
     reductions, including reductions in greenhouse gas emissions, 
     resulting from reductions in single occupancy vehicle use by 
     employees of the agency that are participating in the 
     program.
       ``(v) Information on reduced congestion and improved air 
     quality resulting from reductions in single occupancy vehicle 
     use by employees of the agency that are participating in the 
     program.
       ``(vi) Recommendations to increase program participation 
     and thereby reduce single occupancy vehicle use by Federal 
     employees nationwide.
       ``(6) Reporting requirements.--Not later than September 30 
     of the first fiscal year beginning after the date of 
     enactment of this paragraph, and every 3 years thereafter, 
     the Secretary shall submit to the Committee on Transportation 
     and Infrastructure and the Committee on Oversight and 
     Government Reform of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate a report on nationwide implementation of the transit 
     pass transportation fringe benefits program under this 
     subsection, including a summary of the information submitted 
     by agencies pursuant to paragraph (5)(F).''.
       (d) Effective Date.--Except as otherwise specifically 
     provided, the amendments made by this section shall become 
     effective on the first day of the first fiscal year beginning 
     after the date of enactment of this Act.

     SEC. 306. CAPITAL COST OF CONTRACTING VANPOOL PILOT PROGRAM.

       (a) Establishment.--The Secretary of Transportation shall 
     establish and implement a pilot program to carry out vanpool 
     demonstration projects in not more than 3 urbanized areas and 
     not more than 2 other than urbanized areas.
       (b) Pilot Program.--
       (1) In general.--Notwithstanding section 5323(i) of title 
     49, United States Code, for each project selected for 
     participation in the pilot program, the Secretary shall allow 
     the non-Federal share provided by a recipient of assistance 
     for a capital project under chapter 53 of such title to 
     include the amounts described in paragraph (2).
       (2) Conditions on acquisition of vans.--The amounts 
     referred to in paragraph (1) are any amounts expended by a 
     private provider of public transportation by vanpool for the 
     acquisition of vans to be used by such private provider in 
     the recipient's service area, excluding any amounts the 
     provider may have received in Federal, State, or local 
     government assistance for such acquisition, if the private 
     provider enters into a legally binding agreement with the 
     recipient that

[[Page 19243]]

     requires the private provider to use all revenues it receives 
     in providing public transportation in such service area, in 
     excess of its operating costs, for the purpose of acquiring 
     vans to be used by the private provider in such service area.
       (c) Program Term.--The Secretary may approve an application 
     for a vanpool demonstration project for fiscal years 2008 
     through 2009.
       (d) Report to Congress.--Not later than one year after the 
     date of enactment of this Act, the Secretary shall submit to 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate a report containing 
     an assessment of the costs, benefits, and efficiencies of the 
     vanpool demonstration projects.

     SEC. 307. NATIONAL CONSUMER AWARENESS PROGRAM.

       (a) In General.--The Secretary of Transportation shall 
     carry out a national consumer awareness program to educate 
     the public on the environmental, energy, and economic 
     benefits of public transportation alternatives to the use of 
     single occupancy vehicles.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,000,000 for 
     fiscal year 2009. Such sums shall remain available until 
     expended.

     SEC. 308. EXCEPTION TO ALTERNATIVE FUEL PROCUREMENT 
                   REQUIREMENT.

       Section 526 of the Energy Independence and Security Act of 
     2007 (Public Law 110-140; 42 U.S. C. 17142) is amended--
       (1) by striking ``No Federal agency'' and inserting ``(a) 
     Requirement.--Except as provided in subsection (b), no 
     Federal agency''; and
       (2) by adding at the end the following:
       ``(b) Exception.--Subsection (a) does not prohibit a 
     Federal agency from entering into a contract to purchase a 
     generally available fuel that is not an alternative or 
     synthetic fuel or predominantly produced from a 
     nonconventional petroleum source, if--
       ``(1) the contract does not specifically require the 
     contractor to provide an alternative or synthetic fuel or 
     fuel from a nonconventional petroleum source;
       ``(2) the purpose of the contract is not to obtain an 
     alternative or synthetic fuel or fuel from a nonconventional 
     petroleum source; and
       ``(3) the contract does not provide incentives for a 
     refinery upgrade or expansion to allow a refinery to use or 
     increase its use of fuel from a nonconventional petroleum 
     source.''.

         TITLE IV--GREATER ENERGY EFFICIENCY IN BUILDING CODES

     SEC. 401. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

       (a) In General.--Section 304 of the Energy Conservation and 
     Production Act (42 U.S.C. 6833) is amended to read as 
     follows:

     ``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

       ``(a) Updating National Model Building Energy Codes.--(1) 
     The Secretary shall support updating the national model 
     building energy codes and standards at least every three 
     years to achieve overall energy savings, compared to the 2006 
     IECC for residential buildings and ASHRAE Standard 90.1-2004 
     for commercial buildings, of at least--
       ``(A) 30 percent in editions of each model code or standard 
     released in or after 2010; and
       ``(B) 50 percent in editions of each model code or standard 
     released in or after 2020.
     Targets for specific years shall be set by the Secretary at 
     least 3 years in advance of each target year, coordinated 
     with the IECC and ASHRAE Standard 90.1 cycles, at the maximum 
     level of energy efficiency that is technologically feasible 
     and life-cycle cost effective.
       ``(2)(A) Whenever the provisions of the IECC or ASHRAE 
     Standard 90.1 regarding building energy use are revised, the 
     Secretary shall make a preliminary determination not later 
     than 90 days after the date of the revision, and a final 
     determination not later than 12 months after the date of such 
     revision, on--
       ``(i) whether such revision will improve energy efficiency 
     in buildings; and
       ``(ii) whether such revision will meet the targets under 
     paragraph (1).
       ``(B) If the Secretary makes a determination under 
     subparagraph (A)(ii) that a code or standard does not meet 
     the targets under paragraph (1), or if a national model code 
     or standard is not updated for more than three years, then 
     the Secretary shall, within 12 months after such 
     determination, establish a modified code or standard that 
     meets such targets. Any such modified code or standard--
       ``(i) shall achieve the maximum level of energy savings 
     that is technologically feasible and life-cycle cost-
     effective;
       ``(ii) shall be based on the latest revision of the IECC or 
     ASHRAE Standard 90.1, including any amendments or additions 
     thereto, but may also consider other model codes or 
     standards; and
       ``(iii) shall serve as the baseline for the next 
     determination under subparagraph (A)(i).
       ``(C) The Secretary shall provide the opportunity for 
     public comment on targets, determinations, and modified codes 
     and standards under this subsection, and shall publish notice 
     of targets, determinations, and modified codes and standards 
     under this subsection in the Federal Register.
       ``(b) State Certification of Building Energy Code 
     Updates.--(1) Not later than 2 years after the date of 
     enactment of this subsection, each State shall certify to the 
     Secretary that it has reviewed and updated the provisions of 
     its residential and commercial building codes regarding 
     energy efficiency. Such certification shall include a 
     demonstration that such State's code provisions meet or 
     exceed the 2006 IECC for residential buildings and the ASHRAE 
     Standard 90.1-2007 for commercial buildings, or achieve 
     equivalent or greater energy savings.
       ``(2)(A) If the Secretary makes an affirmative 
     determination under subsection (a)(2)(A)(i) or establishes a 
     modified code or standard under subsection (a)(2)(B), each 
     State shall, within 2 years after such determination or 
     establishment, certify that it has reviewed and updated the 
     provisions of its building code regarding energy efficiency. 
     Such certification shall include a demonstration that such 
     State's code provisions meet or exceed the revised code or 
     standard, or achieve equivalent or greater energy savings.
       ``(B) If the Secretary fails to make a determination under 
     subsection (a)(2)(A)(i) by the date specified in subsection 
     (a)(2), or makes a negative determination, each State shall 
     within 2 years after the specified date or the date of the 
     determination, certify that it has reviewed the revised code 
     or standard, and updated the provisions of its building code 
     regarding energy efficiency to meet or exceed any provisions 
     found to improve energy efficiency in buildings, or to 
     achieve equivalent or greater energy savings in other ways.
       ``(c) State Certification of Compliance With Building 
     Codes.--(1) Each State shall, not later than 3 years after a 
     certification under subsection (b), certify that it has--
       ``(A) achieved compliance under paragraph (3) with the 
     certified State building energy code or with the associated 
     model code or standard; or
       ``(B) made significant progress under paragraph (4) toward 
     achieving compliance with the certified State building energy 
     code or with the associated model code or standard.
     If the State certifies progress toward achieving compliance, 
     the State shall repeat the certification each year until it 
     certifies that it has achieved compliance.
       ``(2) A certification under paragraph (1) shall include 
     documentation of the rate of compliance based on independent 
     inspections of a random sample of the new and renovated 
     buildings covered by the code in the preceding year, or based 
     on an alternative method that yields an accurate measure of 
     compliance.
       ``(3)(A) A State shall be considered to achieve compliance 
     under paragraph (1) if--
       ``(i) at least 90 percent of new and renovated building 
     space covered by the code in the preceding year substantially 
     meets all the requirements of the code regarding energy 
     efficiency, or achieves an equivalent energy savings level; 
     or
       ``(ii) the estimated excess energy use of new and renovated 
     buildings that did not meet the code in the preceding year, 
     compared to a baseline of comparable buildings that meet the 
     code, is not more than 5 percent of the estimated energy use 
     of all new and renovated buildings covered by the code in the 
     preceding year.
       ``(B) Only renovations with building permits are covered 
     under this paragraph. If the Secretary determines the 
     percentage targets under subparagraph (A) are not reasonably 
     achievable for renovated residential or commercial buildings, 
     the Secretary may reduce the targets for such renovated 
     buildings to the highest achievable level.
       ``(4)(A) A State shall be considered to have made 
     significant progress toward achieving compliance for purposes 
     of paragraph (1) if the State--
       ``(i) has developed and is implementing a plan for 
     achieving compliance within 8 years, assuming continued 
     adequate funding, including active training and enforcement 
     programs;
       ``(ii) after one or more years of adequate funding, has 
     demonstrated progress, in conformance with the plan described 
     in clause (i), toward compliance;
       ``(iii) after five or more years of adequate funding, meets 
     the requirement in paragraph (3) substituting 80 percent for 
     90 percent or substituting 10 percent for 5 percent; and
       ``(iv) has not had more than 8 years of adequate funding.
       ``(B) Funding shall be considered adequate, for purposes of 
     this paragraph, when the Federal Government provides to the 
     States at least $50,000,000 in a year in funding and support 
     for development and implementation of State building energy 
     codes, including for training and enforcement.
       ``(d) Failure To Meet Deadlines.--(1) A State that has not 
     made a certification required under subsection (b) or (c) by 
     the applicable deadline shall submit to the Secretary a 
     report on--
       ``(A) the status of the State with respect to meeting the 
     requirements and submitting the certification; and
       ``(B) a plan for meeting the requirements and submitting 
     the certification.

[[Page 19244]]

       ``(2) Any State for which the Secretary has not accepted a 
     certification by a deadline under subsection (b) or (c) of 
     this section is out of compliance with this section.
       ``(3) In any State that is out of compliance with this 
     section, a local government may be in compliance with this 
     section by meeting the certification requirements under 
     subsections (b) and (c) of this section.
       ``(4) The Secretary shall annually submit to Congress, and 
     publish in the Federal Register, a report on the status of 
     national model building energy codes and standards, the 
     status of code adoption and compliance in the States, and 
     implementation of this section. The report shall include 
     estimates of impacts of past action under this section and 
     potential impacts of further action on lifetime energy use by 
     buildings and resulting energy costs to individuals and 
     businesses.
       ``(e) Technical Assistance.--(1) The Secretary shall on a 
     timely basis provide technical assistance to model code-
     setting and standard development organizations. This 
     assistance shall include technical assistance as requested by 
     the organizations in evaluating code or standards proposals 
     or revisions, building energy analysis and design tools, 
     building demonstrations, and design assistance and training. 
     The Secretary shall submit code and standard amendment 
     proposals, with supporting evidence, sufficient to enable the 
     national model building energy codes and standards to meet 
     the targets in subsection (a)(1).
       ``(2) The Secretary shall provide technical assistance to 
     States to implement the requirements of this section, 
     including procedures for States to demonstrate that their 
     code provisions achieve equivalent or greater energy savings 
     than the national model codes and standards, and to improve 
     and implement State residential and commercial building 
     energy efficiency codes or to otherwise promote the design 
     and construction of energy efficient buildings.
       ``(f) Availability of Incentive Funding.--(1) The Secretary 
     shall provide incentive funding to States to implement the 
     requirements of this section, and to improve and implement 
     State residential and commercial building energy efficiency 
     codes, including increasing and verifying compliance with 
     such codes. In determining whether, and in what amount, to 
     provide incentive funding under this subsection, the 
     Secretary shall consider the actions proposed by the State to 
     implement the requirements of this section, to improve and 
     implement residential and commercial building energy 
     efficiency codes, and to promote building energy efficiency 
     through the use of such codes.
       ``(2) Additional funding shall be provided under this 
     subsection for implementation of a plan to achieve and 
     document at least a 90 percent rate of compliance with 
     residential and commercial building energy efficiency codes, 
     based on energy performance--
       ``(A) to a State that has adopted and is implementing, on a 
     Statewide basis--
       ``(i) a residential building energy efficiency code that 
     meets or exceeds the requirements of the 2006 IECC, or any 
     succeeding version of that code that has received an 
     affirmative determination from the Secretary under subsection 
     (a)(2)(A)(i); and
       ``(ii) a commercial building energy efficiency code that 
     meets or exceeds the requirements of the ASHRAE Standard 
     90.1-2007, or any succeeding version of that standard that 
     has received an affirmative determination from the Secretary 
     under subsection (a)(2)(A)(i); or
       ``(B) in a State in which there is no Statewide energy code 
     for either residential buildings or commercial buildings, or 
     where State codes fail to comply with subparagraph (A), to a 
     local government that has adopted and is implementing 
     residential and commercial building energy efficiency codes, 
     as described in subparagraph (A).
       ``(3) Of the amounts made available under this subsection, 
     the Secretary may use amounts required, not exceeding 
     $500,000 for each State, to train State and local officials 
     to implement codes described in paragraph (2).
       ``(4) There are authorized to be appropriated to carry out 
     this subsection--
       ``(A) $70,000,000 for each of fiscal years 2009 through 
     2013; and
       ``(B) such sums as are necessary for fiscal year 2014 and 
     each fiscal year thereafter.''.
       (b) Definition.--Section 303 of the Energy Conservation and 
     Production Act (42 U.S.C. 6832) is amended by adding at the 
     end the following new paragraph:
       ``(17) The term `IECC' means the International Energy 
     Conservation Code.''.

            TITLE V--FEDERAL RENEWABLE ELECTRICITY STANDARD

     SEC. 501. FEDERAL RENEWABLE ELECTRICITY STANDARD.

       (a) In General.--Title VI of the Public Utility Regulatory 
     Policies Act of 1978 is amended by adding at the end the 
     following:

     ``SEC. 610. FEDERAL RENEWABLE ELECTRICITY STANDARD.

       ``(a) Definitions.--For purposes of this section:
       ``(1) Biomass.--
       ``(A) In general.--The term `biomass' means each of the 
     following:
       ``(i) Cellulosic (plant fiber) organic materials from a 
     plant that is planted for the purpose of being used to 
     produce energy.
       ``(ii) Nonhazardous, plant or algal matter that is derived 
     from any of the following:

       ``(I) An agricultural crop, crop byproduct or residue 
     resource.
       ``(II) Waste such as landscape or right-of-way trimmings 
     (but not including municipal solid waste, recyclable 
     postconsumer waste paper, painted, treated, or pressurized 
     wood, wood contaminated with plastic or metals).

       ``(iii) Animal waste or animal byproducts.
       ``(iv) Landfill methane.
       ``(B) National forest lands and certain other public 
     lands.--With respect to organic material removed from 
     National Forest System lands or from public lands 
     administered by the Secretary of the Interior, the term 
     `biomass' covers only organic material from (i) ecological 
     forest restoration; (ii) pre-commercial thinnings; (iii) 
     brush; (iv) mill residues; and (v) slash.
       ``(C) Exclusion of certain federal lands.--Notwithstanding 
     subparagraph (B), material or matter that would otherwise 
     qualify as biomass are not included in the term biomass if 
     they are located on the following Federal lands:
       ``(i) Federal land containing old growth forest or late 
     successional forest unless the Secretary of the Interior or 
     the Secretary of Agriculture determines that the removal of 
     organic material from such land is appropriate for the 
     applicable forest type and maximizes the retention of late-
     successional and large and old growth trees, late-
     successional and old growth forest structure, and late-
     successional and old growth forest composition.
       ``(ii) Federal land on which the removal of vegetation is 
     prohibited, including components of the National Wilderness 
     Preservation System.
       ``(iii) Wilderness Study Areas.
       ``(iv) Inventoried roadless areas.
       ``(v) Components of the National Landscape Conservation 
     System.
       ``(vi) National Monuments.
       ``(2) Eligible facility.--The term `eligible facility' 
     means--
       ``(A) a facility for the generation of electric energy from 
     a renewable energy resource that is placed in service on or 
     after January 1, 2001; or
       ``(B) a repowering or cofiring increment.
       ``(3) Existing facility.--The term `existing facility' 
     means a facility for the generation of electric energy from a 
     renewable energy resource that is not an eligible facility.
       ``(4) Incremental hydropower.--The term `incremental 
     hydropower' means additional generation that is achieved from 
     increased efficiency or additions of capacity made on or 
     after January 1, 2001, or the effective date of an existing 
     applicable State renewable portfolio standard program at a 
     hydroelectric facility that was placed in service before that 
     date.
       ``(5) Indian land.--The term `Indian land' means--
       ``(A) any land within the limits of any Indian reservation, 
     pueblo, or rancheria;
       ``(B) any land not within the limits of any Indian 
     reservation, pueblo, or rancheria title to which was on the 
     date of enactment of this paragraph either held by the United 
     States for the benefit of any Indian tribe or individual or 
     held by any Indian tribe or individual subject to restriction 
     by the United States against alienation;
       ``(C) any dependent Indian community; or
       ``(D) any land conveyed to any Alaska Native corporation 
     under the Alaska Native Claims Settlement Act.
       ``(6) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community, including any Alaskan Native village or regional 
     or village corporation as defined in or established pursuant 
     to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.), which is recognized as eligible for the special 
     programs and services provided by the United States to 
     Indians because of their status as Indians.
       ``(7) Renewable energy.--The term `renewable energy' means 
     electric energy generated by a renewable energy resource.
       ``(8) Renewable energy resource.--The term `renewable 
     energy resource' means solar, wind, ocean, tidal, geothermal 
     energy, biomass, landfill gas, incremental hydropower, or 
     hydrokinetic energy.
       ``(9) Repowering or cofiring increment.--The term 
     `repowering or cofiring increment' means--
       ``(A) the additional generation from a modification that is 
     placed in service on or after January 1, 2001, to expand 
     electricity production at a facility used to generate 
     electric energy from a renewable energy resource;
       ``(B) the additional generation above the average 
     generation in the 3 years preceding the date of enactment of 
     this section at a facility used to generate electric energy 
     from a renewable energy resource or to cofire biomass that 
     was placed in service before the date of enactment of this 
     section: or
       ``(C) the portion of the electric generation from a 
     facility placed in service on or after January 1, 2001, or a 
     modification to a facility placed in service before the date 
     of enactment of this section made on or after January 1, 
     2001, associated with cofiring biomass.
       ``(10) Retail electric supplier.--(A) The term `retail 
     electric supplier' means a person that sells electric energy 
     to electric consumers (other than consumers in Hawaii)

[[Page 19245]]

     that sold not less than 1,000,000 megawatt-hours of electric 
     energy to electric consumers for purposes other than resale 
     during the preceding calendar year. For purposes of this 
     section, a person that sells electric energy to electric 
     consumers that, in combination with the sales of any 
     affiliate organized after the date of enactment of this 
     section, sells not less that 1,000,000 megawatt hours of 
     electric energy to consumers for purposes other than resale 
     shall qualify as a retail electric supplier. For purposes of 
     this paragraph, sales by any person to a parent company or to 
     other affiliates of such person shall not be treated as sales 
     to electric consumers.
       ``(B) Such term does not include the United States, a State 
     or any political subdivision of a State, or any agency, 
     authority, or instrumentality of any one or more of the 
     foregoing, or a rural electric cooperative, except that a 
     political subdivision of a State, or an agency, authority, or 
     instrumentality of the United States, a State or a political 
     subdivision of a State, or a rural electric cooperative that 
     sells electric energy to electric consumers or any other 
     entity that sells electric energy to electric consumers that 
     would not otherwise qualify as a retail electric supplier 
     shall be deemed a retail electric supplier if such entity 
     notifies the Secretary that it voluntarily agrees to 
     participate in the Federal renewable electricity standard 
     program.
       ``(11) Retail electric supplier's base amount.--The term 
     `retail electric supplier's base amount' means the total 
     amount of electric energy sold by the retail electric 
     supplier, expressed in terms of kilowatt hours, to electric 
     customers for purposes other than resale during the most 
     recent calendar year for which information is available, 
     excluding--
       ``(A) electric energy that is not incremental hydropower 
     generated by a hydroelectric facility; and
       ``(B) electricity generated through the incineration of 
     municipal solid waste.
       ``(b) Compliance.--For each calendar year beginning in 
     calendar year 2010, each retail electric supplier shall meet 
     the requirements of subsection (c) by submitting to the 
     Secretary, not later than April 1 of the following calendar 
     year, one or more of the following:
       ``(1) Federal renewable energy credits issued under 
     subsection (e).
       ``(2) Federal energy efficiency credits issued under 
     subsection (i), except that Federal energy efficiency credits 
     may not be used to meet more than 27 percent of the 
     requirements of subsection (c) in any calendar year. Energy 
     efficiency credits may only be used for compliance in a State 
     where the Governor has petitioned the Secretary pursuant to 
     subjection (i)(2).
       ``(3) Certification of the renewable energy generated and 
     electricity savings pursuant to the funds associated with 
     State compliance payments as specified in subsection 
     (e)(3)(G).
       ``(4) Alternative compliance payments pursuant to 
     subsection (j).
       ``(c) Required Annual Percentage.--For calendar years 2010 
     through 2039, the required annual percentage of the retail 
     electric supplier's base amount that shall be generated from 
     renewable energy resources, or otherwise credited towards 
     such percentage requirement pursuant to subsection (d), shall 
     be the percentage specified in the following table:

                                                        Required annual
``Calendar Years                                             percentage
  2010.............................................................2.75
  2011.............................................................2.75
  2012.............................................................3.75
  2013..............................................................4.5
  2014..............................................................5.5
  2015..............................................................6.5
  2016..............................................................7.5
  2017.............................................................8.25
  2018............................................................10.25
  2019............................................................12.25
  2020 and thereafter through 2039...................................15

       ``(d) Renewable Energy and Energy Efficiency Credits.--(1) 
     A retail electric supplier may satisfy the requirements of 
     subsection (b)(1) through the submission of Federal renewable 
     energy credits--
       ``(A) issued to the retail electric supplier under 
     subsection (e);
       ``(B) obtained by purchase or exchange under subsection (f) 
     or (g); or
       ``(C) borrowed under subsection (h).
       ``(2) A retail electric supplier may satisfy the 
     requirements of subsection (b)(2) through the submission of 
     Federal energy efficiency credits issued to the retail 
     electric supplier obtained by purchase or exchange pursuant 
     to subsection (i).
       ``(3) A Federal renewable energy credit may be counted 
     toward compliance with subsection (b)(1) only once. A Federal 
     energy efficiency credit may be counted toward compliance 
     with subsection (b)(2) only once.
       ``(e) Issuance of Federal Renewable Energy Credits.--(1) 
     The Secretary shall establish by rule, not later than 1 year 
     after the date of enactment of this section, a program to 
     verify and issue Federal renewable energy credits to 
     generators of renewable energy, track their sale, exchange, 
     and retirement and to enforce the requirements of this 
     section. To the extent possible, in establishing such 
     program, the Secretary shall rely upon existing and emerging 
     State or regional tracking systems that issue and track non-
     Federal renewable energy credits.
       ``(2) An entity that generates electric energy through the 
     use of a renewable energy resource may apply to the Secretary 
     for the issuance of renewable energy credits. The applicant 
     must demonstrate that the electric energy will be transmitted 
     onto the grid or, in the case of a generation offset, that 
     the electric energy offset would have otherwise been consumed 
     on site. The application shall indicate--
       ``(A) the type of renewable energy resource used to produce 
     the electricity;
       ``(B) the location where the electric energy was produced; 
     and
       ``(C) any other information the Secretary determines 
     appropriate.
       ``(3)(A) Except as provided in subparagraphs (B), (C), and 
     (D), the Secretary shall issue to a generator of electric 
     energy one Federal renewable energy credit for each kilowatt 
     hour of electric energy generated by the use of a renewable 
     energy resource at an eligible facility.
       ``(B) For purpose of compliance with this section, Federal 
     renewable energy credits for incremental hydropower shall be 
     based, on the increase in average annual generation resulting 
     from the efficiency improvements or capacity additions. The 
     incremental generation shall be calculated using the same 
     water flow information used to determine a historic average 
     annual generation baseline for the hydroelectric facility and 
     certified by the Secretary or the Federal Energy Regulatory 
     Commission. The calculation of the Federal renewable energy 
     credits for incremental hydropower shall not be based on any 
     operational changes at the hydroelectric facility not 
     directly associated with the efficiency improvements or 
     capacity additions.
       ``(C) The Secretary shall issue 2 renewable energy credits 
     for each kilowatt hour of electric energy generated and 
     supplied to the grid in that calendar year through the use of 
     a renewable energy resource at an eligible facility located 
     on Indian land. For purposes of this paragraph, renewable 
     energy generated by biomass cofired with other fuels is 
     eligible for two credits only if the biomass was grown on 
     such land.
       ``(D) For electric energy generated by a renewable energy 
     resource at an on-site eligible facility no larger than one 
     megawatt in capacity and used to offset part or all of the 
     customer's requirements for electric energy, the Secretary 
     shall issue 3 renewable energy credits to such customer for 
     each kilowatt hour generated.
       ``(E) In the case of an on-site eligible facility on Indian 
     land no more than 3 credits per kilowatt hour may be issued.
       ``(F) If both a renewable energy resource and a non-
     renewable energy resource are used to generate the electric 
     energy, the Secretary shall issue the Federal renewable 
     energy credits based on the proportion of the renewable 
     energy resources used.
       ``(G) When a generator has sold electric energy generated 
     through the use of a renewable energy resource to a retail 
     electric supplier under a contract for power from an existing 
     facility, and the contract has not determined ownership of 
     the Federal renewable energy credits associated with such 
     generation, the Secretary shall issue such Federal renewable 
     energy credits to the retail electric supplier for the 
     duration of the contract.
       ``(H) Payments made by a retail electricity supplier, 
     directly or indirectly, to a State for compliance with a 
     State renewable portfolio standard program, or for an 
     alternative compliance mechanism, shall be valued at one 
     credit per kilowatt hour for the purpose of subsection (b)(2) 
     based on the amount of electric energy generation from 
     renewable resources and electricity savings up to 27 percent 
     of the utility's requirement that results from those 
     payments.
       ``(f) Existing Facilities.--The Secretary shall ensure that 
     a retail electric supplier that acquires Federal renewable 
     energy credits associated with the generation of renewable 
     energy from an existing facility may use such credits for 
     purpose of its compliance with subsection (b)(1). Such 
     credits may not be sold, exchanged, or transferred for the 
     purpose of compliance by another retail electric supplier.
       ``(g) Renewable Energy Credit Trading.--(1) A Federal 
     renewable energy credit, may be sold, transferred, or 
     exchanged by the entity to whom issued or by any other entity 
     who acquires the Federal renewable energy credit, except for 
     those renewable energy credits from existing facilities. A 
     Federal renewable energy credit for any year that is not 
     submitted to satisfy the minimum renewable generation 
     requirement of subsection (c) for that year may be carried 
     forward for use pursuant to subsection (b)(1) within the next 
     3 years.
       ``(2) A federally owned or cooperatively owned utility, or 
     a State or subdivision thereof, that is not a retail electric 
     supplier that generates electric energy by the use of a 
     renewable energy resource at an eligible facility may only 
     sell, transfer or exchange a Federal renewable energy credit 
     to a cooperatively owned utility or an agency, authority, or 
     instrumentality of a State or political subdivision of a 
     State that is a retail electric supplier that has acquired 
     the electric energy associated with the credit.

[[Page 19246]]

       ``(3) The Secretary may delegate to an appropriate market-
     making entity the administration of a national tradeable 
     renewable energy credit market and a national energy 
     efficiency credit market for purposes of creating a 
     transparent national market for the sale or trade of 
     renewable energy credits and a transparent national market 
     for the sale or trade of Federal energy efficiency credits.
       ``(h) Renewable Energy Credit Borrowing.--At any time 
     before the end of calendar year 2012, a retail electric 
     supplier that has reason to believe it will not be able to 
     fully comply with subsection (b) may--
       ``(1) submit a plan to the Secretary demonstrating that the 
     retail electric supplier will earn sufficient Federal 
     renewable energy credits and Federal energy efficiency 
     credits within the next 3 calendar years which, when taken 
     into account, will enable the retail electric supplier to 
     meet the requirements of subsection (b) for calendar year 
     2012 and the subsequent calendar years involved; and
       ``(2) upon the approval of the plan by the Secretary, apply 
     Federal renewable energy credits and Federal energy 
     efficiency credits that the plan demonstrates will be earned 
     within the next 3 calendar years to meet the requirements of 
     subsection (b) for each calendar year involved.
     The retail electric supplier must repay all of the borrowed 
     Federal renewable energy credits and Federal energy 
     efficiency credits by submitting an equivalent number of 
     Federal renewable energy credits and Federal energy 
     efficiency credits, in addition to those otherwise required 
     under subsection (b), by calendar year 2020 or any earlier 
     deadlines specified in the approved plan. Failure to repay 
     the borrowed Federal renewable energy credits and Federal 
     energy efficiency credits shall subject the retail electric 
     supplier to civil penalties under subsection (i) for 
     violation of the requirements of subsection (b) for each 
     calendar year involved.
       ``(i) Energy Efficiency Credits.--
       ``(1) Definitions.--In this subsection--
       ``(A) Customer facility savings.--The term `customer 
     facility savings' means a reduction in end-use electricity at 
     a facility of an end-use consumer of electricity served by a 
     retail electric supplier, as compared to--
       ``(i) consumption at the facility during a base year;
       ``(ii) in the case of new equipment (regardless of whether 
     the new equipment replaces existing equipment at the end of 
     the useful life of the existing equipment), consumption by 
     the new equipment of average efficiency; or
       ``(iii) in the case of a new facility, consumption at a 
     reference facility.
       ``(B) Electricity savings.--The term `electricity savings' 
     means--
       ``(i) customer facility savings of electricity consumption 
     adjusted to reflect any associated increase in fuel 
     consumption at the facility;
       ``(ii) reductions in distribution system losses of 
     electricity achieved by a retail electricity distributor, as 
     compared to losses during the base years;
       ``(iii) the output of new combined heat and power systems, 
     to the extent provided under paragraph (5); and
       ``(iv) recycled energy savings.
       ``(C) Qualifying electricity savings.--The term `qualifying 
     electricity savings' means electricity savings that meet the 
     measurement and verification requirements of paragraph (4).
       ``(D) Recycled energy savings.--The term `recycled energy 
     savings' means a reduction in electricity consumption that is 
     attributable to electrical or mechanical power, or both, 
     produced by modifying an industrial or commercial system that 
     was in operation before July 1, 2007, in order to recapture 
     energy that would otherwise be wasted.
       ``(2) Petition.--The Governor of a State may petition the 
     Secretary to allow up to 27 percent of the requirements of a 
     retail electric supplier under subsection (c) in the State to 
     be met by submitting Federal energy efficiency credits issued 
     pursuant to this subsection.
       ``(3) Issuance of credits.--(A) Upon petition by the 
     Governor, the Secretary shall issue energy efficiency credits 
     for electricity savings described in subparagraph (B) 
     achieved in States described in paragraph (2) in accordance 
     with this subsection.
       ``(B) In accordance with regulations promulgated by the 
     Secretary, the Secretary shall issue credits for--
       ``(i) qualified electricity savings achieved by a retail 
     electric supplier in a calendar year; and
       ``(ii) qualified electricity savings achieved by other 
     entities if--
       ``(I) the measures used to achieve the qualifying 
     electricity savings were installed or placed in operation by 
     the entity seeking the credit or the designated agent of the 
     entity; and
       ``(II) no retail electric supplier paid a substantial 
     portion of the cost of achieving the qualified electricity 
     savings (unless the retail electric supplier has waived any 
     entitlement to the credit).
       ``(4) Measurement and verification of electricity 
     savings.--Not later than June 30, 2009, the Secretary shall 
     promulgate regulations regarding the measurement and 
     verification of electricity savings under this subsection, 
     including regulations covering--
       ``(A) procedures and standards for defining and measuring 
     electricity savings that will be eligible to receive credits 
     under paragraph (3), which shall--
       ``(i) specify the types of energy efficiency and energy 
     conservation that will be eligible for the credits;
       ``(ii) require that energy consumption for customer 
     facilities or portions of facilities in the applicable base 
     and current years be adjusted, as appropriate, to account for 
     changes in weather, level of production, and building area;
       ``(iii) account for the useful life of electricity savings 
     measures;
       ``(iv) include specified electricity savings values for 
     specific, commonly-used efficiency measures;
       ``(v) specify the extent to which electricity savings 
     attributable to measures carried out before the date of 
     enactment of this section are eligible to receive credits 
     under this subsection; and
       ``(vi) exclude electricity savings that (I) are not 
     properly attributable to measures carried out by the entity 
     seeking the credit; or (II) have already been credited under 
     this section to another entity;
       ``(B) procedures and standards for third-party verification 
     of reported electricity savings; and
       ``(C) such requirements for information, reports, and 
     access to facilities as may be necessary to carry out this 
     subsection.
       ``(5) Combined heat and power.--Under regulations 
     promulgated by the Secretary, the increment of electricity 
     output of a new combined heat and power system that is 
     attributable to the higher efficiency of the combined system 
     (as compared to the efficiency of separate production of the 
     electric and thermal outputs), shall be considered 
     electricity savings under this subsection.
       ``(j) Enforcement.--A retail electric supplier that does 
     not comply with subsection (b) shall be liable for the 
     payment of a civil penalty. That penalty shall be calculated 
     on the basis of the number of kilowatt-hours represented by 
     the retail electric supplier's failure to comply with 
     subsection (b), multiplied by the lesser of 4.5 cents 
     (adjusted for inflation for such calendar year, based on the 
     Gross Domestic Product Implicit Price Deflator) or 300 
     percent of the average market value of Federal renewable 
     energy credits and energy efficiency credits for the 
     compliance period. Any such penalty shall be due and payable 
     without demand to the Secretary as provided in the 
     regulations issued under subsection (e).
       ``(k) Alternative Compliance Payments.--The Secretary shall 
     accept payment equal to the lesser of:
       ``(1) 200 percent of the average market value of Federal 
     renewable energy credits and Federal energy efficiency 
     credits for the applicable compliance period; or
       ``(2) 2.5 cents per kilowatt hour adjusted on January 1 of 
     each year following calendar year 2006 based on the Gross 
     Domestic Product Implicit Price Deflator,
     as a means of compliance under subsection (b)(4)
       ``(l) Information Collection.--The Secretary may collect 
     the information necessary to verify and audit--
       ``(1) the annual renewable energy generation of any retail 
     electric supplier, Federal renewable energy credits submitted 
     by a retail electric supplier pursuant to subsection (b)(1) 
     and Federal energy efficiency credits submitted by a retail 
     electric supplier pursuant to subsection (b)(2);
       ``(2) annual electricity savings achieved pursuant to 
     subsection (i);
       ``(3) the validity of Federal renewable energy credits 
     submitted for compliance by a retail electric supplier to the 
     Secretary; and
       ``(4) the quantity of electricity sales of all retail 
     electric suppliers.
       ``(m) Environmental Savings Clause.--Incremental hydropower 
     shall be subject to all applicable environmental laws and 
     licensing and regulatory requirements.
       ``(n) State Programs.--(1) Nothing in this section 
     diminishes any authority of a State or political subdivision 
     of a State to--
       ``(A) adopt or enforce any law or regulation respecting 
     renewable energy or energy efficiency, including but not 
     limited to programs that exceed the required amount of 
     renewable energy or energy efficiency under this section, or
       ``(B) regulate the acquisition and disposition of Federal 
     renewable energy credits and Federal energy efficiency 
     credits by retail electric suppliers.
     No law or regulation referred to in subparagraph (A) shall 
     relieve any person of any requirement otherwise applicable 
     under this section. The Secretary, in consultation with 
     States having renewable energy programs and energy efficiency 
     programs, shall preserve the integrity of such State 
     programs, including programs that exceed the required amount 
     of renewable energy and energy efficiency under this section, 
     and shall facilitate coordination between the Federal program 
     and State programs.
       ``(2) In the rule establishing the program under this 
     section, the Secretary shall incorporate common elements of 
     existing renewable energy and energy efficiency programs, 
     including State programs, to ensure administrative ease, 
     market transparency, and effective enforcement. The Secretary 
     shall work with the States to minimize administrative burdens 
     and costs to retail electric suppliers.

[[Page 19247]]

       ``(o) Recovery of Costs.--An electric utility whose sales 
     of electric energy are subject to rate regulation, including 
     any utility whose rates are regulated by the Commission and 
     any State regulated electric utility, shall not be denied the 
     opportunity to recover the full amount of the prudently 
     incurred incremental cost of renewable energy and energy 
     efficiency obtained to comply with the requirements of 
     subsection (b). For purposes of this subsection, the 
     definitions in section 3 of this Act shall apply to the terms 
     electric utility, State regulated electric utility, State 
     agency, Commission, and State regulatory authority.
       ``(p) Program Review.--The Secretary shall enter into a 
     contract with the National Academy of Sciences to conduct a 
     comprehensive evaluation of all aspects of the program 
     established under this section, within 8 years of enactment 
     of this section. The study shall include an evaluation of--
       ``(1) the effectiveness of the program in increasing the 
     market penetration and lowering the cost of the eligible 
     renewable energy and energy efficiency technologies;
       ``(2) the opportunities for any additional technologies and 
     sources of renewable energy and energy efficiency emerging 
     since enactment of this section;
       ``(3) the impact on the regional diversity and reliability 
     of supply sources, including the power quality benefits of 
     distributed generation;
       ``(4) the regional resource development relative to 
     renewable potential and reasons for any under investment in 
     renewable resources; and
       ``(5) the net cost/benefit of the renewable electricity 
     standard to the national and State economies, including 
     retail power costs, economic development benefits of 
     investment, avoided costs related to environmental and 
     congestion mitigation investments that would otherwise have 
     been required, impact on natural gas demand and price, 
     effectiveness of green marketing programs at reducing the 
     cost of renewable resources.
     The Secretary shall transmit the results of the evaluation 
     and any recommendations for modifications and improvements to 
     the program to Congress not later than January 1, 2016.
       ``(q) State Renewable Energy and Energy Efficiency Account 
     Program.--(1) There is established in the Treasury a State 
     renewable energy and energy efficiency account program.
       ``(2) All money collected by the Secretary from the 
     alternative compliance payments under subsection (k) shall be 
     deposited into the State renewable energy and energy 
     efficiency account established pursuant to this subsection.
       ``(3) Proceeds deposited in the State renewable energy and 
     energy efficiency account shall be used by the Secretary, 
     subject to annual appropriations, for a program to provide 
     grants to the State agency responsible for administering a 
     fund to promote renewable energy generation and energy 
     efficiency for customers of the State, or an alternative 
     agency designated by the State, or if no such agency exists, 
     to the State agency developing State energy conservation 
     plans under section 363 of the Energy Policy and Conservation 
     Act (42 U.S.C. 6322) for the purposes of promoting renewable 
     energy production and providing energy assistance and 
     weatherization services to low-income consumers.
       ``(4) The Secretary may issue guidelines and criteria for 
     grants awarded under this subsection. At least 75 percent of 
     the funds provided to each State shall be used for promoting 
     renewable energy production and energy efficiency through 
     grants, production incentives or other state-approved funding 
     mechanisms. The funds shall be allocated to the States on the 
     basis of retail electric sales subject to the Renewable 
     electricity Standard under this section or through voluntary 
     participation. State agencies receiving grants under this 
     section shall maintain such records and evidence of 
     compliance as the Secretary may require.''.
       (b) Table of Contents.--The table of contents for such 
     title is amended by adding the following new item at the end:

``Sec. 610. Federal renewable electricity standard.''.
       (c) Sunset.--Section 610 of such title and the item 
     relating to such section 610 in the table of contents for 
     such title are each repealed as of December 31, 2039.

      TITLE VI--GREEN RESOURCES FOR ENERGY EFFICIENT NEIGHBORHOODS

     SEC. 601. SHORT TITLE AND TABLE OF CONTENTS.

       This title may be cited as the ``Green Resources for Energy 
     Efficient Neighborhoods Act of 2008'' or the ``GREEN Act of 
     2008''.

     SEC. 602. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Green building standards.--The term ``green building 
     standards'' means standards to require use of sustainable 
     design principles to reduce the use of nonrenewable 
     resources, encourage energy-efficient construction and 
     rehabilitation and the use of renewable energy resources, 
     minimize the impact of development on the environment, and 
     improve indoor air quality.
       (2) HUD.--The term ``HUD'' means the Department of Housing 
     and Urban Development.
       (3) HUD assistance.--The term ``HUD assistance'' means 
     financial assistance that is awarded, competitively or 
     noncompetitively, allocated by formula, or provided by HUD 
     through loan insurance or guarantee.
       (4) Nonresidential structure.--The term ``nonresidential 
     structures'' means only nonresidential structures that are 
     appurtenant to single family or multifamily housing 
     residential structures, or those that are funded by the 
     Secretary of Housing and Urban Development through the HUD 
     Community Development Block Grant program.
       (5) Secretary.--The term ``Secretary'', unless otherwise 
     specified, means the Secretary of Housing and Urban 
     Development.

     SEC. 603. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION 
                   INCENTIVES FOR HUD PROGRAMS.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary shall issue such 
     regulations as may be necessary to establish annual energy 
     efficiency participation incentives to encourage participants 
     in programs administered by the Secretary, including 
     recipients under programs for which HUD assistance is 
     provided, to achieve substantial improvements in energy 
     efficiency.
       (b) Requirement for Appropriation of Funds.--The 
     requirement under subsection (a) for the Secretary to provide 
     annual energy efficiency participation incentives pursuant to 
     the provisions of this title shall be subject to the annual 
     appropriation of necessary funds.

     SEC. 604. MINIMUM HUD ENERGY EFFICIENCY STANDARDS AND 
                   STANDARDS FOR ADDITIONAL CREDIT.

       (a) Minimum HUD Standard.--
       (1) Residential structures.--A residential single family or 
     multifamily structure shall be considered to comply with the 
     energy efficiency requirements under this subsection if--
       (A) the structure complies with the applicable provisions 
     of the American Society of Heating, Refrigerating, and Air-
     Conditioning Engineers Standard 90.1-2007, as such standard 
     or successor standard is in effect for purposes of this 
     section pursuant subsection (c);
       (B) the structure complies with the applicable provisions 
     of the 2006 International Energy Conservation Code, as such 
     standard or successor standard is in effect for purposes of 
     this section pursuant subsection (c);
       (C) in the case only of an existing structure, where 
     determined cost effective, the structure has undergone 
     rehabilitation or improvements, completed after the date of 
     the enactment of this Act, and the energy consumption for the 
     structure has been reduced by at least 20 percent from the 
     previous level of consumption, as determined in accordance 
     with energy audits performed both before and after any 
     rehabilitation or improvements undertaken to reduce such 
     consumption; or
       (D) the structure complies with the applicable provisions 
     of such other energy efficiency requirements, standards, 
     checklists, or ratings systems as the Secretary may adopt and 
     apply by regulation, as may be necessary, for purposes of 
     this section for specific types of residential single family 
     or multifamily structures or otherwise, except that the 
     Secretary shall make a determination regarding whether to 
     adopt and apply any such requirements, standards, checklists, 
     or rating system for purposes of this section not later than 
     the expiration of the 180-day period beginning upon the date 
     of receipt of any written request, made in such form as the 
     Secretary shall provide, for such adoption and application.
     In addition to compliance with any of subparagraphs (A) 
     through (D), the Secretary shall by regulation require, for 
     any newly constructed residential single family or 
     multifamily structure to be considered to comply with the 
     energy efficiency requirements under this subsection, that 
     the structure have appropriate electrical outlets with the 
     facility and capacity to recharge a standard electric 
     passenger vehicle, including an electric hybrid vehicle, 
     where such vehicle would normally be parked.
       (2) Nonresidential structures.--For purposes of this 
     section, the Secretary shall identify and adopt by 
     regulation, as may be necessary, energy efficiency 
     requirements, standards, checklists, or rating systems 
     applicable to nonresidential structures that are constructed 
     or rehabilitated with HUD assistance. A nonresidential 
     structure shall be considered to comply with the energy 
     efficiency requirements under this subsection if the 
     structure complies with the applicable provisions of any such 
     energy efficiency requirements, standards, checklist, or 
     rating systems identified and adopted by the Secretary 
     pursuant to this paragraph, as such standards are in effect 
     for purposes of this section pursuant to subsection (c).
       (b) Additional Credit for Compliance With Enhanced Energy 
     Efficiency Standards.--
       (1) In general.--In addition to compliance with the energy 
     efficiency requirements under subsection (a), a residential 
     or nonresidential structure shall be considered to comply 
     with the enhanced energy efficiency and conservation 
     standards or the green building standards under this 
     subsection, to

[[Page 19248]]

     the extent that such structure complies with the applicable 
     provisions of the standards under paragraph (2) or (3), 
     respectively (as such standards are in effect for purposes of 
     this section, pursuant to subsection (c)), in a manner that 
     is not required for compliance with the energy efficiency 
     requirements under subsection (a) and subject to the 
     Secretary's determination of which standards are applicable 
     to which structures.
       (2) Energy efficiency and conservation standards.--The 
     energy efficiency and conservation standards under this 
     paragraph are as follows:
       (A) Residential structures.--With respect to residential 
     structures:
       (i) New construction.--For new construction, the Energy 
     Star standards established by the Environmental Protection 
     Agency, as such standards are in effect for purposes of this 
     subsection pursuant to subsection (c);
       (ii) Existing structures.--For existing structures, a 
     reduction in energy consumption from the previous level of 
     consumption for the structure, as determined in accordance 
     with energy audits performed both before and after any 
     rehabilitation or improvements undertaken to reduce such 
     consumption, that exceeds the reduction necessary for 
     compliance with the energy efficiency requirement under 
     subsection (a)(1)(C).
       (B) Nonresidential structures.--With respect to 
     nonresidential structures, such energy efficiency and 
     conservation requirements, standards, checklists, or rating 
     systems for nonresidential structures as the Secretary shall 
     identify and adopt by regulation, as may be necessary, for 
     purposes of this paragraph.
       (3) Green building standards.--The green building standards 
     under this paragraph are as follows:
       (A) The national Green Communities criteria checklist for 
     residential construction that provides criteria for the 
     design, development, and operation of affordable housing, as 
     such checklist or successor checklist is in effect for 
     purposes of this section pursuant to subsection (c).
       (B) The gold certification level for the LEED for New 
     Construction rating system, the LEED for Homes rating system, 
     the LEED for Core and Shell rating system, as applicable, as 
     such systems or successor systems are in effect for purposes 
     of this section pursuant to subsection (c).
       (C) The Green Globes assessment and rating system of the 
     Green Buildings Initiative.
       (D) For manufactured housing, energy star rating with 
     respect to fixtures, appliances, and equipment in such 
     housing, as such standard or successor standard is in effect 
     for purposes of this section pursuant to subsection (c).
       (E) The National Green Building Standard, but such standard 
     shall apply for purposes of this paragraph only--
       (i) if such standard is ratified under the American 
     National Standards Institute process;
       (ii) upon expiration of the 180-day period beginning upon 
     such ratification; and
       (iii) if, during such 180-day period, the Secretary of 
     Housing and Urban Development does not reject the 
     applicability of such standard for purposes of this 
     paragraph.
       (F) Any other requirements, standards, checklists, or 
     rating systems for green building or sustainability as the 
     Secretary may identify and adopt by regulation, as may be 
     necessary for purposes of this paragraph, except that the 
     Secretary shall make a determination regarding whether to 
     adopt and apply any such requirements, standards, checklist, 
     or rating system for purposes of this section not later than 
     the expiration of the 180-day period beginning upon date of 
     receipt of any written request, made in such form as the 
     Secretary shall provide, for such adoption and application.
       (4) Green building.--For purposes of this subsection, the 
     term ``green building'' means, with respect to standards for 
     structures, standards to require use of sustainable design 
     principles to reduce the use of nonrenewable resources, 
     minimize the impact of development on the environment, and to 
     improve indoor air quality.
       (5) Energy audits.--The Secretary shall establish standards 
     and requirements for energy audits for purposes of paragraph 
     (2)(A)(ii) and, in establishing such standards, may consult 
     with any advisory committees established pursuant to section 
     605(c)(2) of this title.
       (c) Applicability and Updating of Standards.--
       (1) Applicability.--Except as provided in paragraph (2), 
     the requirements, standards, checklists, and rating systems 
     referred to in subsections (a) and (b) that are in effect for 
     purposes of this section are such requirements, standards, 
     checklists, and systems are as in existence upon the date of 
     the enactment of this Act.
       (2) Updating.--For purposes of this section, the Secretary 
     may adopt and apply by regulation, as may be necessary, 
     future amendments and supplements to, and editions of, the 
     requirements, standards, checklists, and rating systems 
     referred to in subsections (a) and (b).

     SEC. 605. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION 
                   PROGRAM FOR MULTIFAMILY HOUSING PROJECTS 
                   ASSISTED WITH PROJECT-BASED RENTAL ASSISTANCE.

       (a) Authority.--For multifamily housing projects for which 
     project-based rental assistance is provided under a covered 
     multifamily assistance program, the Secretary shall, subject 
     to the availability of amounts provided in advance in 
     appropriation Acts, carry out a program to demonstrate the 
     effectiveness of funding a portion of the costs of meeting 
     the enhanced energy efficiency standards under section 
     604(b). At the discretion of the Secretary, the demonstration 
     program may include incentives for housing that is assisted 
     with Indian housing block grants provided pursuant to the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996, but only to the extent that such inclusion does not 
     violate such Act, its regulations, and the goal of such Act 
     of tribal self-determination.
       (b) Goals.--The demonstration program under this section 
     shall be carried out in a manner that--
       (1) protects the financial interests of the Federal 
     Government;
       (2) reduces the proportion of funds provided by the Federal 
     Government and by owners and residents of multifamily housing 
     projects that are used for costs of utilities for the 
     projects;
       (3) encourages energy efficiency and conservation by owners 
     and residents of multifamily housing projects and 
     installation of renewable energy improvements, such as 
     improvements providing for use of solar, wind, geothermal, or 
     biomass energy sources;
       (4) creates incentives for project owners to carry out such 
     energy efficiency renovations and improvements by allowing a 
     portion of the savings in operating costs resulting from such 
     renovations and improvements to be retained by the project 
     owner, notwithstanding otherwise applicable limitations on 
     dividends;
       (5) promotes the installation, in existing residential 
     buildings, of energy-efficient and cost-effective 
     improvements and renewable energy improvements, such as 
     improvements providing for use of solar, wind, geothermal, or 
     biomass energy sources;
       (6) tests the efficacy of a variety of energy efficiency 
     measures for multifamily housing projects of various sizes 
     and in various geographic locations;
       (7) tests methods for addressing the various, and often 
     competing, incentives that impede owners and residents of 
     multifamily housing projects from working together to achieve 
     energy efficiency or conservation; and
       (8) creates a database of energy efficiency and 
     conservation, and renewable energy, techniques, energy 
     savings management practices, and energy efficiency and 
     conservation financing vehicles.
       (c) Approaches.--In carrying out the demonstration program 
     under this section, the Secretary may--
       (1) enter into agreements with the Building America Program 
     of the Department of Energy and other consensus committees 
     under which such programs, partnerships, or committees assume 
     some or all of the functions, obligations, and benefits of 
     the Secretary with respect to energy savings;
       (2) establish advisory committees to advise the Secretary 
     and any such third party partners on technological and other 
     developments in the area of energy efficiency and the 
     creation of an energy efficiency and conservation credit 
     facility and other financing opportunities, which committees 
     shall include representatives of homebuilders, realtors, 
     architects, nonprofit housing organizations, environmental 
     protection organizations, renewable energy organizations, and 
     advocacy organizations for the elderly and persons with 
     disabilities; any advisory committees established pursuant to 
     this paragraph shall not be subject to the Federal Advisory 
     Committee Act (5 U.S.C. App.);
       (3) approve, for a period not to exceed 10 years, 
     additional adjustments in the maximum monthly rents or 
     additional project rental assistance, or additional Indian 
     housing block grant funds under the Native American Housing 
     Assistance and Self-Determination Act of 1996, as applicable, 
     for dwelling units in multifamily housing projects that are 
     provided project-based rental assistance under a covered 
     multifamily assistance program, in such amounts as may be 
     necessary to amortize a portion of the cost of energy 
     efficiency and conservation measures for such projects;
       (4) develop a competitive process for the award of such 
     additional assistance for multifamily housing projects 
     seeking to implement energy efficiency, renewable energy 
     sources, or conservation measures; and
       (5) waive or modify any existing statutory or regulatory 
     provision that would otherwise impair the implementation or 
     effectiveness of the demonstration program under this 
     section, including provisions relating to methods for rent 
     adjustments, comparability standards, maximum rent schedules, 
     and utility allowances; notwithstanding the preceding 
     provisions of this paragraph, the Secretary may not waive any 
     statutory requirement relating to fair housing, 
     nondiscrimination, labor standards, or the environment, 
     except pursuant to existing authority to waive non-statutory 
     environmental and other applicable requirements.
       (d) Requirement.--During the 4-year period beginning 12 
     months after the date of

[[Page 19249]]

     the enactment of this Act, the Secretary shall carry out 
     demonstration programs under this section with respect to not 
     fewer than 50,000 dwelling units.
       (e) Selection.--
       (1) Scope.--In order to provide a broad and representative 
     profile for use in designing a program which can become 
     operational and effective nationwide, the Secretary shall 
     carry out the demonstration program under this section with 
     respect to dwelling units located in a wide variety of 
     geographic areas and project types assisted by the various 
     covered multifamily assistance programs and using a variety 
     of energy efficiency and conservation and funding techniques 
     to reflect differences in climate, types of dwelling units 
     and technical and scientific methodologies, and financing 
     options. The Secretary shall ensure that the geographic areas 
     included in the demonstration program include dwelling units 
     on Indian lands (as such term is defined in section 2601 of 
     the Energy Policy Act of 1992 (25 U.S.C. 3501), to the extent 
     that dwelling units on Indian land have the type of 
     residential structures that are the focus of the 
     demonstration program.
       (2) Priority.--The Secretary shall provide priority for 
     selection for participation in the program under this section 
     based on the extent to which, as a result of assistance 
     provided, the project will comply with the energy efficiency 
     standards under subsection (a), (b), or (c) of section 604 of 
     this title.
       (f) Use of Existing Partnerships.--To the extent feasible, 
     the Secretary shall--
       (1) utilize the Partnership for Advancing Technology in 
     Housing of the Department of Housing and Urban Development to 
     assist in carrying out the requirements of this section and 
     to provide education and outreach regarding the demonstration 
     program authorized under this section; and
       (2) consult with the Secretary of Energy, the Administrator 
     of the Environmental Protection Agency, and the Secretary of 
     the Army regarding utilizing the Building America Program of 
     the Department of Energy, the Energy Star Program, and the 
     Army Corps of Engineers, respectively, to determine the 
     manner in which they might assist in carrying out the goals 
     of this section and providing education and outreach 
     regarding the demonstration program authorized under this 
     section.
       (g) Reports.--
       (1) Annual.--Not later than the expiration of the 2-year 
     beginning upon the date of the enactment of this Act, and for 
     each year thereafter during the term of the demonstration 
     program, the Secretary shall submit a report to the Congress 
     annually that describes and assesses the demonstration 
     program under this section.
       (2) Final.--Not later than six months after the expiration 
     of the 4-year period described in subsection (d), the 
     Secretary shall submit a final report to the Congress 
     assessing the demonstration program, which--
       (A) shall assess the potential for expanding the 
     demonstration program on a nationwide basis; and
       (B) shall include descriptions of--
       (i) the size of each multifamily housing project for which 
     assistance was provided under the program;
       (ii) the geographic location of each project assisted, by 
     State and region;
       (iii) the criteria used to select the projects for which 
     assistance is provided under the program;
       (iv) the energy efficiency and conservation measures and 
     financing sources used for each project that is assisted 
     under the program;
       (v) the difference, before and during participation in the 
     demonstration program, in the amount of the monthly 
     assistance payments under the covered multifamily assistance 
     program for each project assisted under the program;
       (vi) the average length of the term of the such assistance 
     provided under the program for a project;
       (vii) the aggregate amount of savings generated by the 
     demonstration program and the amount of savings expected to 
     be generated by the program over time on a per-unit and 
     aggregate program basis;
       (viii) the functions performed in connection with the 
     implementation of the demonstration program that were 
     transferred or contracted out to any third parties;
       (ix) an evaluation of the overall successes and failures of 
     the demonstration program; and
       (x) recommendations for any actions to be taken as a result 
     of the such successes and failures.
       (3) Contents.--Each annual report pursuant to paragraph (1) 
     and the final report pursuant to paragraph (2) shall 
     include--
       (A) a description of the status of each multifamily housing 
     project selected for participation in the demonstration 
     program under this section; and
       (B) findings from the program and recommendations for any 
     legislative actions.
       (h) Covered Multifamily Assistance Program.--For purposes 
     of this section, the term ``covered multifamily assistance 
     program'' means--
       (1) the program under section 8 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f) for project-based 
     rental assistance;
       (2) the program under section 202 of the Housing Act of 
     1959 (12 U.S.C. 1701q) for assistance for supportive housing 
     for the elderly;
       (3) the program under section 811 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 8013) for 
     supportive housing for persons with disabilities; and
       (4) the program for assistance under the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4111).
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each fiscal year in which the demonstration program under 
     this section is carried out.
       (j) Regulations.--Not later than the expiration of the 180-
     day period beginning on the date of the enactment of this 
     Act, the Secretary shall issue any regulations necessary to 
     carry out this section.

     SEC. 606. ADDITIONAL CREDIT FOR FANNIE MAE AND FREDDIE MAC 
                   HOUSING GOALS FOR ENERGY EFFICIENT MORTGAGES.

       Section 1336(a) of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 4566(a)), as amended by the Federal 
     Housing Finance Regulatory Reform Act of 2008 (Public Law 
     110-289; 122 Stat. 2654), is amended--
       (1) in paragraph (2), by striking ``paragraph (5)'' and 
     inserting ``paragraphs (5) and (6)''; and
       (2) by adding at the end the following new paragraph:
       ``(6) Additional credit.--
       ``(A) In general.--In assigning credit toward achievement 
     under this section of the housing goals for mortgage purchase 
     activities of the enterprises, the Director shall assign--
       ``(i) more than 125 percent credit, for such purchases that 
     both--

       ``(I) comply with the requirements of such goals; and
       ``(II) support housing that meets the energy efficiency 
     standards under section 604(a) of the Green Resources for 
     Energy Efficient Neighborhoods Act of 2008; and

       ``(ii) credit in addition to credit under clause (i), for 
     purchases that both--

       ``(I) comply with the requirements of such goals, and
       ``(II) support housing that complies with the enhanced 
     energy efficiency and conservation standards, or the green 
     building standards, under section 604(b) of such Act, or 
     both,

     and such additional credit shall be given based on the extent 
     to which the housing supported with such purchases complies 
     with such standards.
       ``(B) Treatment of additional credit.--The availability of 
     additional credit under this paragraph shall not be used to 
     increase any housing goal, subgoal, or target established 
     under this subpart.''.

     SEC. 607. DUTY TO SERVE UNDERSERVED MARKETS FOR ENERGY-
                   EFFICIENT AND LOCATION-EFFICIENT MORTGAGES.

       Section 1335 of Federal Housing Enterprises Financial 
     Safety and Soundness Act of 1992 (12 U.S.C. 4565), as amended 
     by the Federal Housing Finance Regulatory Reform Act of 2008 
     (Public Law 110-289; 122 Stat. 2654), is amended--
       (1) in subsection (a)(1), by adding at the end the 
     following new subparagraph:
       ``(D) Markets for energy-efficient and location-efficient 
     mortgages.--
       ``(i) Duty.--Subject to clause (ii), the enterprise shall 
     develop loan products and flexible underwriting guidelines to 
     facilitate a secondary market for energy-efficient and 
     location-efficient mortgages on housing for very low-, low-, 
     and moderate income families, and for second and junior 
     mortgages made for purposes of energy efficiency or renewable 
     energy improvements, or both.
       ``(ii) Authority to suspend.--Notwithstanding any other 
     provision of this section, the Director may suspend the 
     applicability of the requirement under clause (i) with 
     respect to an enterprise, for such period as is necessary, if 
     the Director determines that exigent circumstances exist and 
     such suspension is appropriate to ensure the safety and 
     soundness of the portfolio holdings of the enterprise.'';
       (2) by adding at the end the following new subsection:
       ``(e) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Energy-efficient mortgage.--The term `energy 
     efficient mortgage' means a mortgage loan under which the 
     income of the borrower, for purposes of qualification for 
     such loan, is considered to be increased by not less than $1 
     for each $1 of savings projected to be realized by the 
     borrower as a result of cost-effective energy saving design, 
     construction or improvements (including use of renewable 
     energy sources, such as solar, geothermal, biomass, and wind, 
     super-insulation, energy-saving windows, insulating glass and 
     film, and radiant barrier) for the home for which the loan is 
     made.
       ``(2) Location-efficient mortgage.--The term `location 
     efficient mortgage' means a mortgage loan under which--
       ``(A) the income of the borrower, for purposes of 
     qualification for such loan, is considered to be increased by 
     not less than $1 for each $1 of savings projected to be 
     realized by the borrower because the location of the home for 
     which loan is made will result in decreased transportation 
     costs for the household of the borrower; or

[[Page 19250]]

       ``(B) the sum of the principal, interest, taxes, and 
     insurance due under the mortgage loan is decreased by not 
     less than $1 for each $1 of savings projected to be realized 
     by the borrower because the location of the home for which 
     loan is made will result in decreased transportation costs 
     for the household of the borrower.''.

     SEC. 608. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA 
                   MORTGAGE INSURANCE PROGRAMS AND NATIVE AMERICAN 
                   AND NATIVE HAWAIIAN LOAN GUARANTEE PROGRAMS.

       (a) FHA Mortgage Insurance.--
       (1) Requirement.--Title V of the National Housing Act is 
     amended by adding after section 542 (12 U.S.C. 1735f-20) the 
     following new section:

     ``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.

       ``(a) Underwriting Standards.--The Secretary shall 
     establish a method to consider, in its underwriting standards 
     for mortgages on single-family housing meeting the energy 
     efficiency standards under section 604(a) of the Green 
     Resources for Energy Efficient Neighborhoods Act of 2008 that 
     are insured under this Act, the impact that savings on 
     utility costs has on the income of the mortgagor.
       ``(b) Goal.--It is the sense of the Congress that, in 
     carrying out this Act, the Secretary should endeavor to 
     insure mortgages on single-family housing meeting the energy 
     efficiency standards under section 604(a) of the Green 
     Resources for Energy Efficient Neighborhoods Act of 2008 such 
     that at least 50,000 such mortgages are insured during the 
     period beginning upon the date of the enactment of such Act 
     and ending on December 31, 2012.''.
       (2) Reporting on defaults.--Section 540(b) of the National 
     Housing Act (12 U.S.C. 1735f-18(b)) is amended by adding at 
     the end the following new paragraph:
       ``(3) With respect to each collection period that commences 
     after December 31, 2011, the total number of mortgages on 
     single-family housing meeting the energy efficiency standards 
     under section 604(a) of the Green Resources for Energy 
     Efficient Neighborhoods Act of 2008 that are insured by the 
     Secretary during the applicable collection period, the number 
     of defaults and foreclosures occurring on such mortgages 
     during such period, the percentage of the total of such 
     mortgages insured during such period on which defaults and 
     foreclosure occurred, and the rate for such period of 
     defaults and foreclosures on such mortgages compared to the 
     overall rate for such period of defaults and foreclosures on 
     mortgages for single-family housing insured under this Act by 
     the Secretary.''.
       (b) Indian Housing Loan Guarantees.--
       (1) Requirement.--Section 184 of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
       (A) by redesignating subsection (l) as subsection (m); and
       (B) by inserting after subsection (k) the following new 
     subsection:
       ``(l) Consideration of Energy Efficiency.--The Secretary 
     shall establish a method to consider, in its underwriting 
     standards for loans for single-family housing meeting the 
     energy efficiency standards under section 604(a) of the Green 
     Resources for Energy Efficient Neighborhoods Act of 2008 that 
     are guaranteed under this section, the impact that savings on 
     utility costs has on the income of the borrower.''.
       (2) Reporting on defaults.--Section 540(b) of the National 
     Housing Act (12 U.S.C. 1735f-18(b)), as amended by subsection 
     (a)(2) of this section, is further amended by adding at the 
     end the following new paragraph:
       ``(4) With respect to each collection period that commences 
     after December 31, 2011, the total number of loans guaranteed 
     under section 184 of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1715z-13a) on single-family housing 
     meeting the enhanced energy efficiency standards under 
     section 604(a) of the Green Resources for Energy Efficient 
     Neighborhoods Act of 2008 that are guaranteed by the 
     Secretary during the applicable collection period, the number 
     of defaults and foreclosures occurring on such loans during 
     such period, the percentage of the total of such loans 
     guaranteed during such period on which defaults and 
     foreclosure occurred, and the rate for such period of 
     defaults and foreclosures on such loans compared to the 
     overall rate for such period of defaults and foreclosures on 
     loans for single-family housing guaranteed under such section 
     184 by the Secretary.''.
       (c) Native Hawaiian Housing Loan Guarantees.--
       (1) Requirement.--Section 184A of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1715z-13b) is amended by 
     inserting after subsection (l) the following new subsection:
       ``(m) Energy-Efficient Housing Requirement.--The Secretary 
     shall establish a method to consider, in its underwriting 
     standards for loans for single-family housing meeting the 
     energy efficiency standards under section 604(a) of the Green 
     Resources for Energy Efficient Neighborhoods Act of 2008 that 
     are guaranteed under this section, the impact that savings on 
     utility costs has on the income of the borrower.''.
       (2) Reporting on defaults.--Section 540(b) of the National 
     Housing Act (12 U.S.C. 1735f-18(b)), as amended by the 
     preceding provisions of this section, is further amended by 
     adding at the end the following new paragraph:
       ``(5) With respect to each collection period that commences 
     after December 31, 2011, the total number of loans guaranteed 
     under section 184A of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1715z-13b) on single-family housing 
     meeting the enhanced energy efficiency standards under 
     section 604(a) of the Green Resources for Energy Efficient 
     Neighborhoods Act of 2008 that are guaranteed by the 
     Secretary during the applicable collection period, the number 
     of defaults and foreclosures occurring on such loans during 
     such period, the percentage of the total of such loans 
     guaranteed during such period on which defaults and 
     foreclosure occurred, and the rate for such period of 
     defaults and foreclosures on such loans compared to the 
     overall rate for such period of defaults and foreclosures on 
     loans for single-family housing guaranteed under such section 
     184A by the Secretary.''.

     SEC. 609. ENERGY EFFICIENT MORTGAGES EDUCATION AND OUTREACH 
                   CAMPAIGN.

       Section 106 of the Energy Policy Act of 1992 (12 U.S.C. 
     1701z-16) is amended by adding at the end the following new 
     subsection:
       ``(g) Education and Outreach Campaign.--
       ``(1) Development of energy-efficient mortgage outreach 
     program.--
       ``(A) Commission.--The Secretary, in consultation and 
     coordination with the Secretary of Energy, the Secretary of 
     Education, the Secretary of Agriculture, and the 
     Administrator of the Environmental Protection Agency, shall 
     establish a commission to develop and recommend model 
     mortgage products and underwriting guidelines that provide 
     market-based incentives to prospective home buyers, lenders, 
     and sellers to incorporate energy efficiency upgrades in new 
     mortgage loan transactions.
       ``(B) Report.--Not later than 24 months after the date of 
     the enactment of the Green Resources for Energy Efficient 
     Neighborhoods Act of 2008, the Secretary shall provide a 
     written report to the Congress on the results of work of the 
     commission established pursuant to subparagraph (A) and that 
     identifies model mortgage products and underwriting 
     guidelines that may encourage energy efficiency.
       ``(2) Implementation.--After submission of the report under 
     paragraph (1)(B), the Secretary, in consultation and 
     coordination with the Secretary of Energy, the Secretary of 
     Education, and the Administrator of the Environmental 
     Protection Agency, shall carry out a public awareness, 
     education, and outreach campaign based on the findings of the 
     commission established pursuant to paragraph (1) to inform 
     and educate residential lenders and prospective borrowers 
     regarding the availability, benefits, advantages, and terms 
     of energy efficient mortgages made available pursuant to this 
     section, energy efficient mortgages that meet the 
     requirements of section 1335 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 4565), and other 
     mortgages, including mortgages for multifamily housing, that 
     have energy improvement features and to publicize such 
     availability, benefits, advantages, and terms. Such actions 
     may include entering into a contract with an appropriate 
     entity to publicize and market such mortgages through 
     appropriate media.
       ``(3) Renewable energy home product expos.--The Congress 
     hereby encourages the Secretary of Housing and Urban 
     Development to work with appropriate entities to organize and 
     hold renewable energy expositions that provide an opportunity 
     for the public to view and learn about renewable energy 
     products for the home that are currently on the market.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this 
     subsection $5,000,000 for each of fiscal years 2009 through 
     2012.''.

     SEC. 610. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND 
                   LOCATION EFFICIENT MORTGAGES THROUGH HOME 
                   MORTGAGE DISCLOSURE ACT.

       (a) In General.--Section 304(b) of the Home Mortgage 
     Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(5) the number and dollar amount of mortgage loans for 
     single-family housing and for multifamily housing that are 
     energy-efficient mortgages (as such term is defined in 
     section 1335 of Housing and Community Development Act of 
     1992); and
       ``(6) the number and dollar amount of mortgage loans for 
     single-family housing and for multifamily housing that are 
     location-efficient mortgages (as such term is defined in 
     section 1335 of Housing and Community Development Act of 
     1992).''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to the first calendar year that 
     begins after the expiration of the 30-day period beginning on 
     the date of the enactment of this Act.

[[Page 19251]]



     SEC. 611. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR 
                   HOMES NOT CONNECTED TO ELECTRICITY GRID.

       (a) In General.--In the case of any covered structure (as 
     such term is defined in subsection (d)), it shall be unlawful 
     for any insurer to deny homeowners insurance coverage for the 
     structure, or to otherwise discriminate in the issuance, 
     cancellation, amount of such coverage, or conditions of such 
     coverage for the structure, based solely and without any 
     additional actuarial risks upon the fact that the structure 
     is not connected to, or able to receive electricity service 
     from, any wholesale or retail electric power provider.
       (b) Consideration of Actuarial Risk.--Subsection (a) may 
     not be construed to prevent any insurer from charging rates 
     for homeowners insurance coverage for a structure that are 
     based on a good faith actuarial analysis of the risk 
     associated with the structure not being connected to, or able 
     to receive electricity service from, any wholesale or retail 
     electric power provide. Any good faith analysis of such risk 
     shall include analysis of the manner in which electric power 
     for the structure is provided.
       (c) Insuring Homes and Related Property in Indian Areas.--
     Notwithstanding any other provision of law, covered 
     structures located in Indian areas (as such term is defined 
     in section 4 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4103)) and 
     constructed or maintained using assistance, loan guarantees, 
     or other authority under the Native American Housing 
     Assistance and Self-Determination Act of 1996 may be insured 
     by any tribally owned self-insurance risk pool approved by 
     the Secretary of Housing and Urban Development.
       (d) Covered Structure.--For purposes of this section, the 
     term ``covered structure'' means a residential structure 
     that--
       (1) consists of one to four dwelling units;
       (2) is provided power, heat, or electricity from renewable 
     energy sources (such as solar, wind, geothermal, or biomass) 
     or a fuel cell; and
       (3) is not connected to any wholesale or retail electrical 
     power grid.

     SEC. 612. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT 
                   MULTIFAMILY HOUSING.

       (a) In General.--The Secretary of Housing and Urban 
     Development shall establish incentives for increasing the 
     energy efficiency of multifamily housing that is subject to a 
     mortgage to be insured under title II of the National Housing 
     Act (12 U.S.C. 1707 et seq.) so that the housing meets the 
     energy efficiency standards under section 604(a) of this 
     title and incentives to encourage compliance of such housing 
     with the energy efficiency and conservation standards, and 
     the green building standards, under section 604(b) of this 
     title, to the extent that such incentives are based on the 
     impact that savings on utility costs has on the operating 
     costs of the housing, as determined by the Secretary.
       (b) Incentives.--Such incentives may include, for any such 
     multifamily housing that complies with the energy efficiency 
     standards under section 604(a)--
       (1) providing a discount on the chargeable premiums for the 
     mortgage insurance for such housing from the amount otherwise 
     chargeable for such mortgage insurance;
       (2) allowing mortgages to exceed the dollar amount limits 
     otherwise applicable under law to the extent such additional 
     amounts are used to finance improvements or measures designed 
     to meet the standards referred to in subsection (a); and
       (3) reducing the amount that the owner of such multifamily 
     housing meeting the standards referred to in subsection (a) 
     is required to contribute.

     SEC. 613. ENERGY EFFICIENCY CERTIFICATIONS FOR HOUSING WITH 
                   MORTGAGES INSURED BY FHA.

       Section 526 of the National Housing Act (12 U.S.C. 1735f-
     4(a)) is amended--
       (1) in subsection (a)--
       (A) by striking ``, other than manufactured homes,'' each 
     place such term appears;
       (B) by inserting after the period at the end the following: 
     ``The energy performance requirements developed and 
     established by the Secretary under this section for 
     manufactured homes shall require energy star rating for wall 
     fixtures, appliances, and equipment in such housing.'';
       (C) by inserting ``(1)'' after ``(a)''; and
       (D) by adding at the end the following new paragraphs:
       ``(2) The Secretary shall require, with respect to any 
     single- or multi-family residential housing subject to a 
     mortgage insured under this Act, that any approval or 
     certification of the housing for meeting any energy 
     efficiency or conservation criteria, standards, or 
     requirements pursuant to this title and any approval or 
     certification required pursuant to this title with respect to 
     energy conserving improvements or any renewable energy 
     sources, such as wind, solar energy geothermal, or biomass, 
     shall be conducted only by an individual certified by a home 
     energy rating system provider who has been accredited to 
     conduct such ratings by the Home Energy Ratings System 
     Council, the Residential Energy Services Network, or such 
     other appropriate national organization, as the Secretary may 
     provide, or by licensed professional architect or engineer. 
     If any organization makes a request to the Secretary for 
     approval to accredit individuals to conduct energy efficiency 
     or conservation ratings, the Secretary shall review and 
     approve or disapprove such request not later than the 
     expiration of the 6-month period beginning upon receipt of 
     such request.
       ``(3) The Secretary shall periodically examine the method 
     used to conduct inspections for compliance with the 
     requirements under this section, analyze various other 
     approaches for conducting such inspections, and review the 
     costs and benefits of the current method compared with other 
     methods.''; and
       (2) in subsection (b), by striking ``, other than a 
     manufactured home,''.

     SEC. 614. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.

       (a) Authority.--Not later than the expiration of the 12-
     month period beginning on the date of the enactment of this 
     Act, the Secretary shall develop and implement a pilot 
     program under this section to facilitate the financing of 
     cost-effective capital improvements for covered assisted 
     housing projects to improve the energy efficiency and 
     conservation of such projects.
       (b) Loans.--The pilot program under this section shall 
     involve not less than three and not more than five lenders, 
     and shall provide for a privately financed loan to be made 
     for a covered assisted housing project, which shall--
       (1) finance capital improvements for the project that meet 
     such requirements as the Secretary shall establish, and may 
     involve contracts with third parties to perform such capital 
     improvements, including the design of such improvements by 
     licensed professional architects or engineers;
       (2) have a term to maturity of not more than 20 years, 
     which shall be based upon the duration necessary to realize 
     cost savings sufficient to repay the loan;
       (3) be secured by a mortgage subordinate to the mortgage 
     for the project that is insured under the National Housing 
     Act; and
       (4) provide for a reduction in the remaining principal 
     obligation under the loan based on the actual resulting cost 
     savings realized from the capital improvements financed with 
     the loan.
       (c) Underwriting Standards.--The Secretary shall establish 
     underwriting requirements for loans made under the pilot 
     program under this section, which shall--
       (1) require the cost savings projected to be realized from 
     the capital improvements financed with the loan, during the 
     term of the loan, to exceed the costs of repaying the loan;
       (2) allow the designer or contractor involved in designing 
     capital improvements to be financed with a loan under the 
     program to carry out such capital improvements; and
       (3) include such energy, audit, property, financial, 
     ownership, and approval requirements as the Secretary 
     considers appropriate.
       (d) Treatment of Savings.--The pilot program under this 
     section shall provide that the project owner shall receive 
     the full financial benefit from any reduction in the cost of 
     utilities resulting from capital improvements financed with a 
     loan made under the program.
       (e) Covered Assisted Housing Projects.--For purposes of 
     this section, the term ``covered assisted housing project'' 
     means a housing project that--
       (1) is financed by a loan or mortgage that is--
       (A) insured by the Secretary under subsection (d)(3) or 
     (d)(4) of section 221 of the National Housing Act (12 U.S.C. 
     1715l), and bears interest at a rate determined under the 
     proviso of section 221(d)(5) of such Act; or
       (B) insured or assisted under section 236 of the National 
     Housing Act (12 U.S.C. 1715z-1);
       (2) at the time a loan under this section is made, is 
     provided project-based rental assistance under section 8 of 
     the United States Housing Act of 1937 (42 U.S.C. 1437f) for 
     50 percent or more of the dwelling units in the project; and
       (3) is not a housing project owned or held by the 
     Secretary, or subject to a mortgage held by the Secretary.

     SEC. 615. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

       Title I of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5301 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT 
                   PROGRAM.

       ``(a) In General.--To the extent amounts are made available 
     for grants under this section, the Secretary shall make 
     grants under this section to States, metropolitan cities and 
     urban counties, Indian tribes, and insular areas to carry out 
     energy efficiency improvements in new and existing single-
     family and multifamily housing.
       ``(b) Allocations.--
       ``(1) In general.--Of the total amount made available for 
     each fiscal year for grants under this section that remains 
     after reserving amounts pursuant to paragraph (2), the 
     Secretary shall allocate for insular areas, for metropolitan 
     cities and urban counties, and for States, an amount that 
     bears the same ratio to such total amount as the amount 
     allocated for such fiscal year under section 106 for Indian 
     tribes, for insular areas, for metropolitan cities and urban 
     counties, and for

[[Page 19252]]

     States, respectively, bears to the total amount made 
     available for such fiscal year for grants under section 106.
       ``(2) Set aside for indian tribes.--Of the total amount 
     made available for each fiscal year for grants under this 
     section, the Secretary shall allocate not less than one 
     percent to Indian tribes.
       ``(c) Grant Amounts.--
       ``(1) Entitlement communities.--From the amounts allocated 
     pursuant to subsection (b) for metropolitan cities and urban 
     counties for each fiscal year, the Secretary shall make a 
     grant for such fiscal year to each metropolitan city and 
     urban county that complies with the requirement under 
     subsection (d), in the amount that bears the same ratio such 
     total amount so allocated as the amount of the grant for such 
     fiscal year under section 106 for such metropolitan city or 
     urban county bears to the aggregate amount of all grants for 
     such fiscal year under section 106 for all metropolitan 
     cities and urban counties.
       ``(2) States.--From the amounts allocated pursuant to 
     subsection (b) for States for each fiscal year, the Secretary 
     shall make a grant for such fiscal year to each State that 
     complies with the requirement under subsection (d), in the 
     amount that bears the same ratio such total amount so 
     allocated as the amount of the grant for such fiscal year 
     under section 106 for such State bears to the aggregate 
     amount of all grants for such fiscal year under section 106 
     for all States. Grant amounts received by a State shall be 
     used only for eligible activities under subsection (e) 
     carried out in nonentitlement areas of the State.
       ``(3) Indian tribes.--From the amounts allocated pursuant 
     to subsection (b) for Indian tribes, the Secretary shall make 
     grants to Indian tribes that comply with the requirement 
     under subsection (d) on the basis of a competition conducted 
     pursuant to specific criteria, as the Secretary shall 
     establish by regulation, for the selection of Indian tribes 
     to receive such amount.
       ``(4) Insular areas.--From the amounts allocated pursuant 
     to subsection (b) for insular areas, the Secretary shall make 
     a grant to each insular area that complies with the 
     requirement under subsection (d) on the basis of the ratio of 
     the population of the insular area to the aggregate 
     population of all insular areas. In determining the 
     distribution of amounts to insular areas, the Secretary may 
     also include other statistical criteria as data become 
     available from the Bureau of Census of the Department of 
     Labor, but only if such criteria are set forth by regulation 
     issued after notice and an opportunity for comment.
       ``(d) Statement of Activities.--
       ``(1) Requirement.--Before receipt the receipt in any 
     fiscal year of a grant under subsection (c) by any grantee, 
     the grantee shall have prepared a final statement of housing 
     energy efficiency objectives and projected use of funds as 
     the Secretary shall require and shall have provided the 
     Secretary with such certifications regarding such objectives 
     and use as the Secretary may require. In the case of 
     metropolitan cities, urban counties, units of general local 
     government, and insular areas receiving grants, the statement 
     of projected use of funds shall consist of proposed housing 
     energy efficiency activities. In the case of States receiving 
     grants, the statement of projected use of funds shall consist 
     of the method by which the States will distribute funds to 
     units of general local government.
       ``(2) Public participation.--The Secretary may establish 
     requirements to ensure the public availability of information 
     regarding projected use of grant amounts and public 
     participation in determining such projected use.
       ``(e) Eligible Activities.--
       ``(1) Requirement.--Amounts from a grant under this section 
     may be used only to carry out activities for single-family or 
     multifamily housing that are designed to improve the energy 
     efficiency of the housing so that the housing complies with 
     the energy efficiency standard under section 604(a) of the 
     Green Resources for Energy Efficient Neighborhoods Act of 
     2008, including such activities to provide energy for such 
     housing from renewable sources, such as wind, waves, solar, 
     biomass, and geothermal sources.
       ``(2) Preference for compliance beyond minimum 
     requirements.--In selecting activities to be funded with 
     amounts from a grant under this section, a grantee shall give 
     more preference to activities based on the extent to which 
     the activities will result in compliance by the housing with 
     the enhanced energy efficiency and conservation standards, 
     and the green building standards, under section 604(b) of 
     such Act.
       ``(f) Reports.--Each grantee of a grant under this section 
     for a fiscal year shall submit to the Secretary, at a time 
     determined by the Secretary, a performance and evaluation 
     report concerning the use of grant amounts, which shall 
     contain an assessment by the grantee of the relationship of 
     such use to the objectives identified in the grantees 
     statement under subsection (d).
       ``(g) Applicability of CDBG Provisions.--Sections 109, 110, 
     and 111 of the Housing and Community Development Act of 1974 
     (42 U.S.C. 5309, 5310, 5311) shall apply to assistance 
     received under this section to the same extent and in the 
     same manner that such sections apply to assistance received 
     under title I of such Act.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated for grants under this section 
     $2,500,000,000 for fiscal year 2009 and such sums as may be 
     necessary for each fiscal year thereafter.''.

     SEC. 616. INCLUDING SUSTAINABLE DEVELOPMENT IN COMPREHENSIVE 
                   HOUSING AFFORDABILITY STRATEGIES.

       Section 105(b) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12705(b)) is amended--
       (1) by striking ``and'' at the end of paragraph (19);
       (2) by striking the period at the end of paragraph (20) and 
     inserting ``; and'';
       (3) and by inserting after paragraph (20) the following:
       ``(21) describe the jurisdiction's strategies to encourage 
     sustainable development for affordable housing, including 
     single-family and multifamily housing, as measured by--
       ``(A) greater energy efficiency and use of renewable energy 
     sources, including any strategies regarding compliance with 
     the energy efficiency requirements under section 604(a) of 
     the Green Resources for Energy Efficient Neighborhoods Act of 
     2008 and with the enhanced energy efficiency and conservation 
     standards, and the green building standards, under section 
     604(b) of such Act;
       ``(B) increased conservation, recycling, and reuse of 
     resources;
       ``(C) more effective use of existing infrastructure;
       ``(D) use of building materials and methods that are 
     healthier for residents of the housing, including use of 
     building materials that are free of added known carcinogens 
     that are classified as Group 1 Known Carcinogens by the 
     International Agency for Research on Cancer; and
       ``(E) such other criteria as the Secretary determines, in 
     consultation with the Secretary of Energy, the Secretary of 
     Agriculture, and the Administrator of the Environmental 
     Protection Agency, are in accordance with the purposes of 
     this paragraph.''.

     SEC. 617. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME 
                   COMMUNITY DEVELOPMENT CAPACITY.

       (a) In General.--The Secretary may make grants to nonprofit 
     organizations to use for any of the following purposes:
       (1) Training, educating, supporting, or advising an 
     eligible community development organization or qualified 
     youth service and conservation corps in improving energy 
     efficiency, resource conservation and reuse, design 
     strategies to maximize energy efficiency, installing or 
     constructing renewable energy improvements (such as wind, 
     wave, solar, biomass, and geothermal energy sources), and 
     effective use of existing infrastructure in affordable 
     housing and economic development activities in low-income 
     communities, taking into consideration energy efficiency 
     requirements under section 604(a) of this title and with the 
     enhanced energy efficiency and conservation standards, and 
     the green building standards, under section 604(b) of this 
     title.
       (2) Providing loans, grants, or predevelopment assistance 
     to eligible community development organizations or qualified 
     youth service and conservation corps to carry out energy 
     efficiency improvements that comply with the energy 
     efficiency requirements under section 604(a) of this title, 
     resource conservation and reuse, and effective use of 
     existing infrastructure in affordable housing and economic 
     development activities in low-income communities. In 
     providing assistance under this paragraph, the Secretary 
     shall give more preference to activities based on the extent 
     to which the activities will result in compliance with the 
     enhanced energy efficiency and conservation standards, and 
     the green building standards, under section 604(b) of this 
     title.
       (3) Such other purposes as the Secretary determines are in 
     accordance with the purposes of this subsection.
       (b) Application Requirement.--To be eligible for a grant 
     under this section, a nonprofit organization shall prepare 
     and submit to the Secretary an application at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       (c) Award of Contracts.--Contracts for architectural or 
     engineering services funded with amounts from grants made 
     under this section shall be awarded in accordance with 
     chapter 11 of title 40, United States Code (relating to 
     selection of architects and engineers).
       (d) Matching Requirement.--A grant made under this section 
     may not exceed the amount that the nonprofit organization 
     receiving the grant certifies, to the Secretary, will be 
     provided (in cash or in kind) from non-governmental sources 
     to carry out the purposes for which the grant is made.
       (e) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) The term ``nonprofit organization'' has the meaning 
     given such term in section 104 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12704).
       (2) The term ``eligible community development 
     organization'' means--
       (A) a unit of general local government (as defined in 
     section 104 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12704));
       (B) a community housing development organization (as 
     defined in section 104 of the

[[Page 19253]]

     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12704));
       (C) an Indian tribe or tribally designated housing entity 
     (as such terms are defined in section 4 of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4103)); or
       (D) a public housing agency, as such term is defined in 
     section 3(b) of the United States Housing Act of 1937 (42 
     U.S.C. 1437(b)).
       (3) The term ``low-income community'' means a census tract 
     in which 50 percent or more of the households have an income 
     which is less than 80 percent of the greater of--
       (A) the median gross income for such year for the area in 
     which such census tract is located; or
       (B) the median gross income for such year for the State in 
     which such census tract is located.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     $10,000,000 for each of fiscal years 2008 through 2012.

     SEC. 618. UTILIZATION OF ENERGY PERFORMANCE CONTRACTS IN HOPE 
                   VI.

       Section 24(d) of the United States Housing Act of 1937 (42 
     U.S.C. 1437v(d)) is amended by adding at the end the 
     following new paragraph:
       ``(3) Energy performance contracts.--
       ``(A) In general.--The Secretary shall provide that a 
     public housing agency shall receive the full financial 
     benefit, as determined by the Secretary, from any reduction 
     in the cost of utilities resulting from any contract with a 
     third party to undertake energy conservation improvements in 
     connection with a revitalization plan under this section.
       ``(B) Third party contracts.--Contracts described in 
     subparagraph (A) may include contracts for equipment 
     conversions to less costly utility sources, projects with 
     resident-paid utilities, and adjustments to frozen base year 
     consumption, including systems repaired to meet applicable 
     building and safety codes and adjustments for occupancy rates 
     increased by rehabilitation.
       ``(C) Term of contract.--The total term of a contract 
     described in subparagraph (A) shall not exceed 20 years to 
     allow longer payback periods for retrofits, including 
     windows, heating system replacements, wall insulation, site-
     based generation, advanced energy savings technologies, 
     including renewable energy generation, and other such 
     retrofits.''.

     SEC. 619. HOPE VI GREEN DEVELOPMENTS REQUIREMENT.

       (a) Mandatory Component.--Section 24(e) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437v(e)) is amended by 
     adding at the end the following new paragraph:
       ``(4) Green developments requirement.--
       ``(A) Requirement.--The Secretary may not make a grant 
     under this section to an applicant unless the proposed 
     revitalization plan of the applicant to be carried out with 
     such grant amounts meets the following requirements:
       ``(i) Green communities criteria checklist.--All 
     residential construction under the proposed plan complies 
     with the national Green Communities criteria checklist for 
     residential construction that provides criteria for the 
     design, development, and operation of affordable housing, as 
     such checklist is in effect for purposes of this paragraph 
     pursuant to subparagraph (D) at the date of the application 
     for the grant, or any substantially equivalent standard or 
     standards as determined by the Secretary, as follows:

       ``(I) The proposed plan shall comply with all items of the 
     national Green Communities criteria checklist for residential 
     construction that are identified as mandatory.
       ``(II) The proposed plan shall comply with such other 
     nonmandatory items of such national Green Communities 
     criteria checklist so as to result in a cumulative number of 
     points attributable to such nonmandatory items under such 
     checklist of not less than--

       ``(aa) 25 points, in the case of any proposed plan (or 
     portion thereof) consisting of new construction; and
       ``(bb) 20 points, in the case of any proposed plan (or 
     portion thereof) consisting of rehabilitation.
       ``(ii) Green buildings certification system.--All non-
     residential construction under the proposed plan complies 
     with all minimum required levels of the green building rating 
     systems and levels identified by the Secretary pursuant to 
     subparagraph (C), as such systems and levels are in effect 
     for purposes of this paragraph pursuant to subparagraph (D) 
     at the time of the application for the grant.
       ``(B) Verification.--
       ``(i) In general.--The Secretary shall verify, or provide 
     for verification, sufficient to ensure that each proposed 
     revitalization plan carried out with amounts from a grant 
     under this section complies with the requirements under 
     subparagraph (A) and that the revitalization plan is carried 
     out in accordance with such requirements and plan.
       ``(ii) Timing.--In providing for such verification, the 
     Secretary shall establish procedures to ensure such 
     compliance with respect to each grantee, and shall report to 
     the Congress with respect to the compliance of each grantee, 
     at each of the following times:

       ``(I) Not later than 6 months after execution of the grant 
     agreement under this section for the grantee.
       ``(II) Upon completion of the revitalization plan of the 
     grantee.

       ``(C) Identification of green buildings rating systems and 
     levels.--
       ``(i) In general.--For purposes of this paragraph, the 
     Secretary shall identify rating systems and levels for green 
     buildings that the Secretary determines to be the most likely 
     to encourage a comprehensive and environmentally-sound 
     approach to ratings and standards for green buildings. The 
     identification of the ratings systems and levels shall be 
     based on the criteria specified in clause (ii), shall 
     identify the highest levels the Secretary determines are 
     appropriate above the minimum levels required under the 
     systems selected. Within 90 days of the completion of each 
     study required by clause (iii), the Secretary shall review 
     and update the rating systems and levels, or identify 
     alternative systems and levels for purposes of this 
     paragraph, taking into account the conclusions of such study.
       ``(ii) Criteria.--In identifying the green rating systems 
     and levels, the Secretary shall take into consideration--

       ``(I) the ability and availability of assessors and 
     auditors to independently verify the criteria and measurement 
     of metrics at the scale necessary to implement this 
     paragraph;
       ``(II) the ability of the applicable ratings system 
     organizations to collect and reflect public comment;
       ``(III) the ability of the standards to be developed and 
     revised through a consensus-based process;
       ``(IV) An evaluation of the robustness of the criteria for 
     a high-performance green building, which shall give credit 
     for promoting--

       ``(aa) efficient and sustainable use of water, energy, and 
     other natural resources;
       ``(bb) use of renewable energy sources;
       ``(cc) improved indoor and outdoor environmental quality 
     through enhanced indoor and outdoor air quality, thermal 
     comfort, acoustics, outdoor noise pollution, day lighting, 
     pollutant source control, sustainable landscaping, and use of 
     building system controls and low- or no-emission materials, 
     including preference for materials with no added carcinogens 
     that are classified as Group 1 Known Carcinogens by the 
     International Agency for Research on Cancer; and
       ``(dd) such other criteria as the Secretary determines to 
     be appropriate; and

       ``(V) national recognition within the building industry.

       ``(iii) 5-year evaluation.--At least once every five years, 
     the Secretary shall conduct a study to evaluate and compare 
     available third-party green building rating systems and 
     levels, taking into account the criteria listed in clause 
     (ii).
       ``(D) Applicability and updating of standards.--
       ``(i) Applicability.--Except as provided in clause (ii) of 
     this subparagraph, the national Green Communities criteria 
     checklist and green building rating systems and levels 
     referred to in clauses (i) and (ii) of subparagraph (A) that 
     are in effect for purposes of this paragraph are such 
     checklist systems, and levels as in existence upon the date 
     of the enactment of the Green Resources for Energy Efficient 
     Neighborhoods Act of 2008.
       ``(ii) Updating.--The Secretary may, by regulation, adopt 
     and apply, for purposes of this paragraph, future amendments 
     and supplements to, and editions of, the national Green 
     Communities criteria checklist, any standard or standards 
     that the Secretary has determined to be substantially 
     equivalent to such checklist, and the green building ratings 
     systems and levels identified by the Secretary pursuant to 
     subparagraph (C).''.
       (b) Selection Criteria; Graded Component.--Section 24(e)(2) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437v(e)(2)) is amended--
       (1) in subparagraph (K), by striking ``and'' at the end;
       (2) by redesignating subparagraph (L) as subparagraph (M); 
     and
       (3) by inserting after subparagraph (K) the following new 
     subparagraph:
       ``(L) the extent to which the proposed revitalization 
     plan--
       ``(i) in the case of residential construction, complies 
     with the nonmandatory items of the national Green Communities 
     criteria checklist identified in paragraph (4)(A)(i), or any 
     substantially equivalent standard or standards as determined 
     by the Secretary, but only to the extent such compliance 
     exceeds the compliance necessary to accumulate the number of 
     points required under such paragraph; and
       ``(ii) in the case of non-residential construction, 
     complies with the components of the green building rating 
     systems and levels identified by the Secretary pursuant to 
     paragraph (4)(C), but only to the extent such compliance 
     exceeds the minimum level required under such systems and 
     levels; and''.

     SEC. 620. CONSIDERATION OF ENERGY-EFFICIENCY IMPROVEMENTS IN 
                   APPRAISALS.

       (a) Appraisals in Connection With Federally Related 
     Transactions.--
       (1) Requirement.--Section 1110 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3339) is amended--

[[Page 19254]]

       (A) in paragraph (1), by striking ``and'' at the end;
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) that such appraisals be performed in accordance with 
     appraisal standards that require, in determining the value of 
     a property, consideration of any renewable energy sources 
     for, or energy-efficiency or energy-conserving improvements 
     or features of, the property; and''.
       (2) Revision of appraisal standards.--Each Federal 
     financial institutions regulatory agency shall, not later 
     than 6 months after the date of the enactment of this Act, 
     revise its standards for the performance of real estate 
     appraisals in connection with federally related transactions 
     under the jurisdiction of the agency to comply with the 
     requirement under the amendments made by paragraph (1) of 
     this subsection.
       (b) Appraiser Certification and Licensing Requirements.--
     Section 1116 of the Financial Institutions Reform, Recovery, 
     and Enforcement Act of 1989 (12 U.S.C. 3345) is amended--
       (1) in subsection (a), by inserting before the period at 
     the end the following: ``, and meets the requirements 
     established pursuant to subsection (f) for qualifications 
     regarding consideration of any renewable energy sources for, 
     or energy-efficiency or energy-conserving improvements or 
     features of, the property'';
       (2) in subsection (c), by inserting before the period at 
     the end the following: ``, which shall include compliance 
     with the requirements established pursuant to subsection (f) 
     regarding consideration of any renewable energy sources for, 
     or energy-efficiency or energy-conserving improvements or 
     features of, the property'';
       (3) in subsection (e), by striking ``The'' and inserting 
     ``Except as provided in subsection (f), the''; and
       (4) by adding at the end the following new subsection:
       ``(f) Requirements for Appraisers Regarding Energy-
     Efficiency Features.--The Appraisal Subcommittee shall 
     establish requirements for State certification of State 
     certified real estate appraisers and for State licensing of 
     State licensed appraisers, to ensure that appraisers consider 
     and are qualified to consider, in determining the value of a 
     property, any renewable energy sources for, or energy-
     efficiency or energy-conserving improvements or features of, 
     the property.''.
       (c) Guidelines for Appraising Photovoltaic Measures and 
     Training of Appraisers.--Section 1122 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3351) is amended by adding at the end the 
     following new subsection:
       ``(g) Guidelines for Appraising Photovoltaic Measures and 
     Training of Appraisers.--The Appraisal Subcommittee shall, in 
     consultation with the Secretary of Housing and Urban 
     Development, the Federal National Mortgage Association, and 
     the Federal Home Loan Mortgage Corporation, establish 
     specific guidelines for--
       ``(1) appraising off- and on-grid photovoltaic measures for 
     compliance with the appraisal standards prescribed pursuant 
     to section 1110(2);
       ``(2) requirements under section 1116(f) for certification 
     of State certified real estate appraisers and for State 
     licensing of State licensed appraisers, to ensure that 
     appraisers consider, and are qualified to consider, such 
     photovoltaic measures in determining the value of a property; 
     and
       ``(3) training of appraisers to meet the requirements 
     established pursuant to paragraph (2) of this subsection.''.

     SEC. 621. ASSISTANCE FOR HOUSING ASSISTANCE COUNCIL.

       The Secretary shall require the Housing Assistance 
     Council--
       (1) to encourage each organization that receives assistance 
     from the Council with any amounts made available from the 
     Secretary to provide that any structures and buildings 
     developed or assisted under projects, programs, and 
     activities funded with such amounts complies with the 
     enhanced energy efficiency requirements under section 604(a) 
     of this title; and
       (2) to establish incentives to encourage each such 
     organization to provide that any such structures and 
     buildings comply with the energy efficiency and conservation 
     standards, and the green building standards, under section 
     604(b) of this title.

     SEC. 622. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.

       The Secretary shall--
       (1) encourage each tribe, agency, organization, 
     corporation, and other entity that receives any assistance 
     from the Office of Rural Housing and Economic Development of 
     the Department of Housing and Urban Development to provide 
     that any structures and buildings developed or assisted under 
     activities funded with such amounts complies with the energy 
     efficiency requirements under section 604(a) of this title; 
     and
       (2) establish incentives to encourage each such tribe, 
     agency, organization, corporation, and other entity to 
     provide that any such structures and buildings comply with 
     the enhanced energy efficiency and conservation standards, 
     and the green building standards, under section 604(b) of 
     this title.

     SEC. 623. LOANS TO STATES AND INDIAN TRIBES TO CARRY OUT 
                   RENEWABLE ENERGY SOURCES ACTIVITIES.

       (a) Establishment of Fund.--There is established in the 
     Treasury of the United States a fund, to be known as the 
     ``Alternative Energy Sources State Loan Fund''.
       (b) Expenditures.--
       (1) In general.--Subject to paragraph (2), on request by 
     the Secretary, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary such amounts as the Secretary 
     determines are necessary to provide loans under subsection 
     (c)(1).
       (2) Administrative expenses.--Of the amounts in the Fund, 
     not more than 5 percent shall be available for each fiscal 
     year to pay the administrative expenses of the Department of 
     Housing and Urban Development to carry out this section.
       (c) Loans to States and Indian Tribes.--
       (1) In general.--The Secretary shall use amounts in the 
     Fund to provide loans to States and Indian tribes to provide 
     incentives to owners of single-family and multifamily 
     housing, commercial properties, and public buildings to 
     provide--
       (A) renewable energy sources for such structures, such as 
     wind, wave, solar, biomass, or geothermal energy sources, 
     including incentives to companies and business to change 
     their source of energy to such renewable energy sources and 
     for changing the sources of energy for public buildings to 
     such renewable energy sources;
       (B) energy efficiency and energy conserving improvements 
     and features for such structures; or
       (C) infrastructure related to the delivery of electricity 
     and hot water for structures lacking such amenities.
       (2) Eligibility.--To be eligible to receive a loan under 
     this subsection, a State or Indian tribe, directly or through 
     an appropriate State or tribal agency, shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require.
       (3) Criteria for approval.--The Secretary may approve an 
     application of a State or Indian tribe under paragraph (2) 
     only if the Secretary determines that the State or tribe will 
     use the funds from the loan under this subsection to carry 
     out a program to provide incentives described in paragraph 
     (1) that--
       (A) requires that any such renewable energy sources, and 
     energy efficiency and energy conserving improvements and 
     features, developed pursuant to assistance under the program 
     result in compliance of the structure so improved with the 
     energy efficiency requirements under section 604(a) of this 
     title; and
       (B) includes such compliance and audit requirements as the 
     Secretary determines are necessary to ensure that the program 
     is operated in a sound and effective manner.
       (4) Preference.--In making loans during each fiscal year, 
     the Secretary shall give preference to States and Indian 
     tribes that have not previously received a loan under this 
     subsection.
       (5) Maximum amount.--The aggregate outstanding principal 
     amount from loans under this subsection to any single State 
     or Indian tribe may not exceed $500,000,000.
       (6) Loan terms.--Each loan under this subsection shall have 
     a term to maturity of not more than 10 years and shall bear 
     interest at annual rate, determined by the Secretary, that 
     shall not exceed interest rate charged by the Federal Reserve 
     Bank of New York to commercial banks and other depository 
     institutions for very short-term loans under the primary 
     credit program, as most recently published in the Federal 
     Reserve Statistical Release on selected interest rates (daily 
     or weekly), and commonly referred to as the H.15 release, 
     preceding the date of a determination for purposes of 
     applying this paragraph.
       (7) Loan repayment.--The Secretary shall require full 
     repayment of each loan made under this section.
       (d) Investment of Amounts.--
       (1) In general.--The Secretary of the Treasury shall invest 
     such amounts in the Fund that are not, in the judgment of the 
     Secretary of the Treasury, required to meet needs for current 
     withdrawals.
       (2) Obligations of united states.--Investments may be made 
     only in interest-bearing obligations of the United States.
       (e) Reports.--
       (1) Reports to secretary.--For each year during the term of 
     a loan made under subsection (c), the State or Indian tribe 
     that received the loan shall submit to the Secretary a report 
     describing the State or tribal alternative energy sources 
     program for which the loan was made and the activities 
     conducted under the program using the loan funds during that 
     year.
       (2) Report to congress.--Not later than September 30 of 
     each year that loans made under subsection (c) are 
     outstanding, the Secretary shall submit a report to the 
     Congress describing the total amount of such loans provided 
     under subsection (c) to each eligible State and Indian tribe 
     during the fiscal year ending on such date, and an evaluation 
     on effectiveness of the Fund.

[[Page 19255]]

       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Fund $5,000,000,000.
       (g) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given such term in section 4 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4103).
       (2) State.--The term ``State'' means each of the several 
     States, the Commonwealth of Puerto Rico, the District of 
     Columbia, the Commonwealth of the Northern Mariana Islands, 
     Guam, the Virgin Islands, American Samoa, the Trust 
     Territories of the Pacific, or any other possession of the 
     United States.

     SEC. 624. GREEN BANKING CENTERS.

       (a) Insured Depository Institutions.--Section 8 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by 
     adding at the end the following new subsection:
       ``(x) `Green Banking' Centers.--
       ``(1) In general.--The Federal banking agencies shall 
     prescribe guidelines encouraging the establishment and 
     maintenance of `green banking' centers by insured depository 
     institutions to provide any consumer who seeks information on 
     obtaining a mortgage, home improvement loan, or home equity 
     loan with additional information on--
       ``(A) obtaining an home energy rating or audit for the 
     residence for which such mortgage or loan is sought;
       ``(B) obtaining financing for cost-effective energy-saving 
     improvements to such property; and
       ``(C) obtaining beneficial terms for any mortgage or loan, 
     or qualifying for a larger mortgage or loan, secured by a 
     residence which meets or will meet energy-efficiency 
     standards.
       ``(2) Information and referrals.--The information made 
     available to consumers under paragraph (1) may include--
       ``(A) information on obtaining a home energy rating and 
     contact information on qualified energy raters in the area of 
     the residence;
       ``(B) information on the secondary market guidelines that 
     permit lenders to provide more favorable terms by allowing 
     lenders to increase the ratio on debt-to-income requirements 
     or to use the projected utility savings as a compensating 
     factor;
       ``(C) information including eligibility information about, 
     and contact information for, any conservation or renewable 
     energy programs, grants, or loans offered by the Secretary of 
     Housing and Urban Development, including the Energy Efficient 
     Mortgage Program;
       ``(D) information including eligibility information about, 
     and contact information for, any conservation or renewable 
     energy programs, grants, or loans offered for qualified 
     military personal, reservists, and veterans by the Secretary 
     of Veterans Affairs;
       ``(E) information about, and contact information for, the 
     Office of Efficiency and Renewable Energy at the Department 
     of Energy, including the weatherization assistance program;
       ``(F) information about, and contact information for, the 
     Energy Star Program of the Environmental Protection Agency;
       ``(G) information from, and contact information for, the 
     Federal Citizen Information Center of the General Services 
     Administration on energy efficient mortgages and loans, home 
     energy rating systems, and the availability of energy 
     efficient mortgage information from a variety of Federal 
     agencies; and
       ``(H) such other information as the agencies or the insured 
     depository institution may determine to be appropriate or 
     useful.''.
       (b) Insured Credit Unions.--Section 206 of the Federal 
     Credit Union Act (12 U.S.C. 1786) is amended by adding at the 
     end the following new subsection:
       ``(x) `Green Banking' Centers.--
       ``(1) In general.--The Board shall prescribe guidelines 
     encouraging the establishment and maintenance of `green 
     banking' centers by insured credit unions to provide any 
     member who seeks information on obtaining a mortgage, home 
     improvement loan, or home equity loan with additional 
     information on--
       ``(A) obtaining an home energy rating or audit for the 
     residence for which such mortgage or loan is sought;
       ``(B) obtaining financing for cost-effective energy-saving 
     improvements to such property; and
       ``(C) obtaining beneficial terms for any mortgage or loan, 
     or qualifying for a larger mortgage or loan, secured by a 
     residence which meets or will meet energy-efficiency 
     standards.
       ``(2) Information and referrals.--The information made 
     available to members under paragraph (1) may include--
       ``(A) information on obtaining a home energy rating and 
     contact information on qualified energy raters in the area of 
     the residence;
       ``(B) information on the secondary market guidelines that 
     permit lenders to provide more favorable terms by allowing 
     lenders to increase the ratio on debt-to-income requirements 
     or to use the projected utility savings as a compensating 
     factor;
       ``(C) information including eligibility information about, 
     and contact information for, any conservation or renewable 
     energy programs, grants, or loans offered by the Secretary of 
     Housing and Urban Development, including the Energy Efficient 
     Mortgage Program;
       ``(D) information including eligibility information about, 
     and contact information for, any conservation or renewable 
     energy programs, grants, or loans offered for qualified 
     military personal, reservists, and veterans by the Secretary 
     of Veterans Affairs;
       ``(E) information about, and contact information for, the 
     Office of Efficiency and Renewable Energy at the Department 
     of Energy, including the weatherization assistance program;
       ``(F) information from, and contact information for, the 
     Federal Citizen Information Center of the General Services 
     Administration on energy efficient mortgages and loans, home 
     energy rating systems, and the availability of energy 
     efficient mortgage information from a variety of Federal 
     agencies; and
       ``(G) such other information as the Board or the insured 
     credit union may determine to be appropriate or useful.''.

     SEC. 625. PUBLIC HOUSING ENERGY COST REPORT.

       (a) Collection of Information by HUD.--The Secretary of 
     Housing and Urban Development shall obtain from each public 
     housing agency, by such time as may be necessary to comply 
     with the reporting requirement under subsection (b), 
     information regarding the energy costs for public housing 
     administered or operated by the agency. For each public 
     housing agency, such information shall include the monthly 
     energy costs associated with each separate building and 
     development of the agency, for the most recently completed 
     12-month period for which such information is available, and 
     such other information as the Secretary determines is 
     appropriate in determining which public housing buildings and 
     developments are most in need of repairs and improvements to 
     reduce energy needs and costs and become more energy 
     efficient.
       (b) Report.--Not later than the expiration of the 12-month 
     period beginning on the date of the enactment of this Act, 
     the Secretary of Housing and Urban Development shall submit a 
     report to the Congress setting forth the information 
     collected pursuant to subsection (a).

                  TITLE VII--MISCELLANEOUS PROVISIONS

     SEC. 701. ALTERNATIVE FUEL PUMPS.

       (a) Requirement.--Not later than January 1, 2018, each 
     retail automotive fueling station owned by a major integrated 
     oil company shall have at least 1 alternative fuel pump (and 
     necessary infrastructure and storage facilities) available to 
     dispense for automotive purposes a fuel referred to in 
     subparagraph (A), (B), (C), or (D) of subsection (c)(2) .
       (b) Penalty.--A major integrated oil company that has 
     failed to comply with subsection (a) as of January 1 of any 
     calendar year beginning with 2018 shall be liable for a civil 
     penalty in the amount of $100,000 for each automotive fueling 
     station owned by such company that is not in compliance. Any 
     such penalty may be assessed and collected by the Secretary 
     of Energy by order. The Secretary may bring an action in the 
     appropriate United States District court to require the 
     payment of civil penalties imposed under this subsection, and 
     such court shall have jurisdiction to enforce any order of 
     the Secretary under this subsection.
       (c) Definitions.--For purposes of this section:
       (1) The term ``major integrated oil company'' has the 
     meaning given that term in section 167(h)(5)(B) of the 
     Internal Revenue Code of 1986.
       (2) The term ``alternative fuel pump'' means a fuel pump 
     that dispenses as a fuel for automotive purposes--
       (A) natural gas;
       (B) any fuel at least 85 percent of the volume of which 
     consists of ethanol;
       (C) any mixture of biodiesel and diesel or renewable diesel 
     (as defined in regulations under section 211(o) of the Clean 
     Air Act), determined without regard to any use of kerosene 
     and containing at least 20 percent biodiesel or renewable 
     diesel; or
       (D) hydrogen.
       (d) Regulations.--The Secretary of Energy shall promulgate 
     such regulations as may be necessary to carry out this 
     section.

     SEC. 702. NATIONAL ENERGY CENTER OF EXCELLENCE.

       (a) Establishment.--The Secretary of Energy shall award a 
     grant on a competitive basis to one consortium of 
     institutions of higher education (as such term is defined in 
     section 102 of the Higher Education Act of 1965) for the 
     establishment of a National Energy Center of Excellence to 
     conduct research and education activities in geological and 
     geothermal sciences, renewable energy and energy efficiency 
     (including energy technology using clean coal, solar, wind, 
     oil, natural gas, hydroelectric, biofuels, ethanol, and other 
     energy alternatives), and energy conservation, including a 
     special emphasis on environmentally safe energy.
       (b) Consortium.--The consortium shall include at least two 
     institutions of higher education, one of which must be 
     eligible to receive assistance under part A or B of title III 
     or title V of the Higher Education Act of 1965.

[[Page 19256]]

       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     each of the fiscal years 2009 through 2013.

     SEC. 703. SENSE OF CONGRESS REGARDING RENEWABLE BIOMASS.

       It is the sense of Congress that--
       (1) in order to fulfill the commitment of the United States 
     to energy security and independence, the current definition 
     of renewable biomass in the Renewable Fuel Standard (RFS) 
     could be improved;
       (2) in order to meet the United States' energy challenges 
     in an environmentally responsible way, the RFS should be as 
     inclusive as possible to better reflect the realities of our 
     Nation's resources, to encourage investment, and to help us 
     meet the congressional mandate for advanced biofuels;
       (3) Congress recognizes that renewable fuels are important 
     to our climate and energy security strategy, as well as the 
     rural communities they support; and
       (4) cellulosic biofuels can and should be produced from a 
     highly diverse array of feedstocks, allowing every region of 
     the country to be a potential producer of this fuel.

                   TITLE VIII--ENERGY TAX INCENTIVES

     SEC. 800. SHORT TITLE, ETC.

       (a) Short Title.--This title may be cited as the ``Energy 
     Tax Incentives Act of 2008''.
       (b) Reference.--Except as otherwise expressly provided, 
     whenever in this title an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of the Internal Revenue Code of 
     1986.

                Subtitle A--Energy Production Incentives

                  PART 1--RENEWABLE ENERGY INCENTIVES

     SEC. 801. RENEWABLE ENERGY CREDIT.

       (a) Extension of Credit.--
       (1) 1-year extension for wind facilities.--Paragraph (1) of 
     section 45(d) is amended by striking ``January 1, 2009'' and 
     inserting ``January 1, 2010''.
       (2) 3-year extension for certain other facilities.--Each of 
     the following provisions of section 45(d) is amended by 
     striking ``January 1, 2009'' and inserting ``January 1, 
     2012'':
       (A) Clauses (i) and (ii) of paragraph (2)(A).
       (B) Clauses (i)(I) and (ii) of paragraph (3)(A).
       (C) Paragraph (4).
       (D) Paragraph (5).
       (E) Paragraph (6).
       (F) Paragraph (7).
       (G) Subparagraphs (A) and (B) of paragraph (9).
       (b) Modification of Credit Phaseout.--
       (1) Repeal of phaseout.--Subsection (b) of section 45 is 
     amended--
       (A) by striking paragraph (1), and
       (B) by striking ``the 8 cent amount in paragraph (1),'' in 
     paragraph (2) thereof.
       (2) Limitation based on investment in facility.--Subsection 
     (b) of section 45 is amended by inserting before paragraph 
     (2) the following new paragraph:
       ``(1) Limitation based on investment in facility.--
       ``(A) In general.--In the case of any qualified facility 
     originally placed in service after December 31, 2009, the 
     amount of the credit determined under subsection (a) for any 
     taxable year with respect to electricity produced at such 
     facility shall not exceed the product of--
       ``(i) the applicable percentage with respect to such 
     facility, multiplied by
       ``(ii) the eligible basis of such facility.
       ``(B) Carryforward of unused limitation and excess 
     credit.--
       ``(i) Unused limitation.--If the limitation imposed under 
     subparagraph (A) with respect to any facility for any taxable 
     year exceeds the prelimitation credit for such facility for 
     such taxable year, the limitation imposed under subparagraph 
     (A) with respect to such facility for the succeeding taxable 
     year shall be increased by the amount of such excess.
       ``(ii) Excess credit.--If the prelimitation credit with 
     respect to any facility for any taxable year exceeds the 
     limitation imposed under subparagraph (A) with respect to 
     such facility for such taxable year, the credit determined 
     under subsection (a) with respect to such facility for the 
     succeeding taxable year (determined before the application of 
     subparagraph (A) for such succeeding taxable year) shall be 
     increased by the amount of such excess. With respect to any 
     facility, no amount may be carried forward under this clause 
     to any taxable year beginning after the 10-year period 
     described in subsection (a)(2)(A)(ii) with respect to such 
     facility.
       ``(iii) Prelimitation credit.--The term `prelimitation 
     credit' with respect to any facility for a taxable year means 
     the credit determined under subsection (a) with respect to 
     such facility for such taxable year, determined without 
     regard to subparagraph (A) and after taking into account any 
     increase for such taxable year under clause (ii).
       ``(C) Applicable percentage.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable percentage' means, 
     with respect to any facility, the appropriate percentage 
     prescribed by the Secretary for the month in which such 
     facility is originally placed in service.
       ``(ii) Method of prescribing applicable percentage.--The 
     applicable percentage prescribed by the Secretary for any 
     month under clause (i) shall be the percentage which yields 
     over a 10-year period amounts of limitation under 
     subparagraph (A) which have a present value equal to 35 
     percent of the eligible basis of the facility.
       ``(iii) Method of discounting.--The present value under 
     clause (ii) shall be determined--

       ``(I) as of the last day of the 1st year of the 10-year 
     period referred to in clause (ii),
       ``(II) by using a discount rate equal to the greater of 110 
     percent of the Federal long-term rate as in effect under 
     section 1274(d) for the month preceding the month for which 
     the applicable percentage is being prescribed, or 4.5 
     percent, and
       ``(III) by taking into account the limitation under 
     subparagraph (A) for any year on the last day of such year.

       ``(D) Eligible basis.--For purposes of this paragraph--
       ``(i) In general.--The term `eligible basis' means, with 
     respect to any facility, the sum of--

       ``(I) the basis of such facility determined as of the time 
     that such facility is originally placed in service, and
       ``(II) the portion of the basis of any shared qualified 
     property which is properly allocable to such facility under 
     clause (ii).

       ``(ii) Rules for allocation.--For purposes of subclause 
     (II) of clause (i), the basis of shared qualified property 
     shall be allocated among all qualified facilities which are 
     projected to be placed in service and which require 
     utilization of such property in proportion to projected 
     generation from such facilities.
       ``(iii) Shared qualified property.--For purposes of this 
     paragraph, the term `shared qualified property' means, with 
     respect to any facility, any property described in section 
     168(e)(3)(B)(vi)--

       ``(I) which a qualified facility will require for 
     utilization of such facility, and
       ``(II) which is not a qualified facility.

       ``(iv) Special rule relating to geothermal facilities.--In 
     the case of any qualified facility using geothermal energy to 
     produce electricity, the basis of such facility for purposes 
     of this paragraph shall be determined as though intangible 
     drilling and development costs described in section 263(c) 
     were capitalized rather than expensed.
       ``(E) Special rule for first and last year of credit 
     period.--In the case of any taxable year any portion of which 
     is not within the 10-year period described in subsection 
     (a)(2)(A)(ii) with respect to any facility, the amount of the 
     limitation under subparagraph (A) with respect to such 
     facility shall be reduced by an amount which bears the same 
     ratio to the amount of such limitation (determined without 
     regard to this subparagraph) as such portion of the taxable 
     year which is not within such period bears to the entire 
     taxable year.
       ``(F) Election to treat all facilities placed in service in 
     a year as 1 facility.--At the election of the taxpayer, all 
     qualified facilities which are part of the same project and 
     which are originally placed in service during the same 
     calendar year shall be treated for purposes of this section 
     as 1 facility which is originally placed in service at the 
     mid-point of such year or the first day of the following 
     calendar year.''.
       (c) Trash Facility Clarification.--Paragraph (7) of section 
     45(d) is amended--
       (1) by striking ``facility which burns'' and inserting 
     ``facility (other than a facility described in paragraph (6)) 
     which uses'', and
       (2) by striking ``combustion''.
       (d) Expansion of Biomass Facilities.--
       (1) Open-loop biomass facilities.--Paragraph (3) of section 
     45(d) is amended by redesignating subparagraph (B) as 
     subparagraph (C) and by inserting after subparagraph (A) the 
     following new subparagraph:
       ``(B) Expansion of facility.--Such term shall include a new 
     unit placed in service after the date of the enactment of 
     this subparagraph in connection with a facility described in 
     subparagraph (A), but only to the extent of the increased 
     amount of electricity produced at the facility by reason of 
     such new unit.''.
       (2) Closed-loop biomass facilities.--Paragraph (2) of 
     section 45(d) is amended by redesignating subparagraph (B) as 
     subparagraph (C) and inserting after subparagraph (A) the 
     following new subparagraph:
       ``(B) Expansion of facility.--Such term shall include a new 
     unit placed in service after the date of the enactment of 
     this subparagraph in connection with a facility described in 
     subparagraph (A)(i), but only to the extent of the increased 
     amount of electricity produced at the facility by reason of 
     such new unit.''.
       (e) Modification of Rules for Hydropower Production.--
     Subparagraph (C) of section 45(c)(8) is amended to read as 
     follows:
       ``(C) Nonhydroelectric dam.--For purposes of subparagraph 
     (A), a facility is described in this subparagraph if--
       ``(i) the hydroelectric project installed on the 
     nonhydroelectric dam is licensed by the Federal Energy 
     Regulatory Commission and meets all other applicable 
     environmental, licensing, and regulatory requirements,
       ``(ii) the nonhydroelectric dam was placed in service 
     before the date of the enactment of this paragraph and 
     operated for flood control, navigation, or water supply 
     purposes and did not produce hydroelectric power on the date 
     of the enactment of this paragraph, and

[[Page 19257]]

       ``(iii) the hydroelectric project is operated so that the 
     water surface elevation at any given location and time that 
     would have occurred in the absence of the hydroelectric 
     project is maintained, subject to any license requirements 
     imposed under applicable law that change the water surface 
     elevation for the purpose of improving environmental quality 
     of the affected waterway.
     The Secretary, in consultation with the Federal Energy 
     Regulatory Commission, shall certify if a hydroelectric 
     project licensed at a nonhydroelectric dam meets the criteria 
     in clause (iii). Nothing in this section shall affect the 
     standards under which the Federal Energy Regulatory 
     Commission issues licenses for and regulates hydropower 
     projects under part I of the Federal Power Act.''.
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to property originally placed in service after December 31, 
     2008.
       (2) Repeal of credit phaseout.--The amendments made by 
     subsection (b)(1) shall apply to taxable years ending after 
     December 31, 2008.
       (3) Limitation based on investment in facility.--The 
     amendment made by subsection (b)(2) shall apply to property 
     originally placed in service after December 31, 2009.
       (4) Trash facility clarification.--The amendments made by 
     subsection (c) shall apply to electricity produced and sold 
     after the date of the enactment of this Act.
       (5) Expansion of biomass facilities.--The amendments made 
     by subsection (d) shall apply to property placed in service 
     after the date of the enactment of this Act.

     SEC. 802. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM 
                   MARINE RENEWABLES.

       (a) In General.--Paragraph (1) of section 45(c) is amended 
     by striking ``and'' at the end of subparagraph (G), by 
     striking the period at the end of subparagraph (H) and 
     inserting ``, and'', and by adding at the end the following 
     new subparagraph:
       ``(I) marine and hydrokinetic renewable energy.''.
       (b) Marine Renewables.--Subsection (c) of section 45 is 
     amended by adding at the end the following new paragraph:
       ``(10) Marine and hydrokinetic renewable energy.--
       ``(A) In general.--The term `marine and hydrokinetic 
     renewable energy' means energy derived from--
       ``(i) waves, tides, and currents in oceans, estuaries, and 
     tidal areas,
       ``(ii) free flowing water in rivers, lakes, and streams,
       ``(iii) free flowing water in an irrigation system, canal, 
     or other man-made channel, including projects that utilize 
     nonmechanical structures to accelerate the flow of water for 
     electric power production purposes, or
       ``(iv) differentials in ocean temperature (ocean thermal 
     energy conversion).
       ``(B) Exceptions.--Such term shall not include any energy 
     which is derived from any source which utilizes a dam, 
     diversionary structure (except as provided in subparagraph 
     (A)(iii)), or impoundment for electric power production 
     purposes.''.
       (c) Definition of Facility.--Subsection (d) of section 45 
     is amended by adding at the end the following new paragraph:
       ``(11) Marine and hydrokinetic renewable energy 
     facilities.--In the case of a facility producing electricity 
     from marine and hydrokinetic renewable energy, the term 
     `qualified facility' means any facility owned by the 
     taxpayer--
       ``(A) which has a nameplate capacity rating of at least 150 
     kilowatts, and
       ``(B) which is originally placed in service on or after the 
     date of the enactment of this paragraph and before January 1, 
     2012.''.
       (d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is 
     amended by striking ``or (9)'' and inserting ``(9), or 
     (11)''.
       (e) Coordination With Small Irrigation Power.--Paragraph 
     (5) of section 45(d), as amended by section 801, is amended 
     by striking ``January 1, 2012'' and inserting ``the date of 
     the enactment of paragraph (11)''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to electricity produced and sold after the date 
     of the enactment of this Act, in taxable years ending after 
     such date.

     SEC. 803. ENERGY CREDIT.

       (a) Extension of Credit.--
       (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) are each amended by striking 
     ``January 1, 2009'' and inserting ``January 1, 2017''.
       (2) Fuel cell property.--Subparagraph (E) of section 
     48(c)(1) is amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2016''.
       (3) Microturbine property.--Subparagraph (E) of section 
     48(c)(2) is amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2016''.
       (b) Allowance of Energy Credit Against Alternative Minimum 
     Tax.--Subparagraph (B) of section 38(c)(4) is amended by 
     striking ``and'' at the end of clause (iii), by redesignating 
     clauses (v) and (vi) as clauses (vi) and (vii), respectively, 
     and by inserting after clause (iv) the following new clause:
       ``(v) the credit determined under section 46 to the extent 
     that such credit is attributable to the energy credit 
     determined under section 48, and''.
       (c) Energy Credit for Combined Heat and Power System 
     Property.--
       (1) In general.--Section 48(a)(3)(A) (defining energy 
     property) is amended by striking ``or'' at the end of clause 
     (iii), by inserting ``or'' at the end of clause (iv), and by 
     adding at the end the following new clause:
       ``(v) combined heat and power system property,''.
       (2) Combined heat and power system property.--Section 48 is 
     amended by adding at the end the following new subsection:
       ``(d) Combined Heat and Power System Property.--For 
     purposes of subsection (a)(3)(A)(v)--
       ``(1) Combined heat and power system property.--The term 
     `combined heat and power system property' means property 
     comprising a system--
       ``(A) which uses the same energy source for the 
     simultaneous or sequential generation of electrical power, 
     mechanical shaft power, or both, in combination with the 
     generation of steam or other forms of useful thermal energy 
     (including heating and cooling applications),
       ``(B) which produces--
       ``(i) at least 20 percent of its total useful energy in the 
     form of thermal energy which is not used to produce 
     electrical or mechanical power (or combination thereof), and
       ``(ii) at least 20 percent of its total useful energy in 
     the form of electrical or mechanical power (or combination 
     thereof),
       ``(C) the energy efficiency percentage of which exceeds 60 
     percent, and
       ``(D) which is placed in service before January 1, 2017.
       ``(2) Limitation.--
       ``(A) In general.--In the case of combined heat and power 
     system property with an electrical capacity in excess of the 
     applicable capacity placed in service during the taxable 
     year, the credit under subsection (a)(1) (determined without 
     regard to this paragraph) for such year shall be equal to the 
     amount which bears the same ratio to such credit as the 
     applicable capacity bears to the capacity of such property.
       ``(B) Applicable capacity.--For purposes of subparagraph 
     (A), the term `applicable capacity' means 15 megawatts or a 
     mechanical energy capacity of more than 20,000 horsepower or 
     an equivalent combination of electrical and mechanical energy 
     capacities.
       ``(C) Maximum capacity.--The term `combined heat and power 
     system property' shall not include any property comprising a 
     system if such system has a capacity in excess of 50 
     megawatts or a mechanical energy capacity in excess of 67,000 
     horsepower or an equivalent combination of electrical and 
     mechanical energy capacities.
       ``(3) Special rules.--
       ``(A) Energy efficiency percentage.--For purposes of this 
     subsection, the energy efficiency percentage of a system is 
     the fraction--
       ``(i) the numerator of which is the total useful 
     electrical, thermal, and mechanical power produced by the 
     system at normal operating rates, and expected to be consumed 
     in its normal application, and
       ``(ii) the denominator of which is the lower heating value 
     of the fuel sources for the system.
       ``(B) Determinations made on btu basis.--The energy 
     efficiency percentage and the percentages under paragraph 
     (1)(B) shall be determined on a Btu basis.
       ``(C) Input and output property not included.--The term 
     `combined heat and power system property' does not include 
     property used to transport the energy source to the facility 
     or to distribute energy produced by the facility.
       ``(4) Systems using biomass.--If a system is designed to 
     use biomass (within the meaning of paragraphs (2) and (3) of 
     section 45(c) without regard to the last sentence of 
     paragraph (3)(A)) for at least 90 percent of the energy 
     source--
       ``(A) paragraph (1)(C) shall not apply, but
       ``(B) the amount of credit determined under subsection (a) 
     with respect to such system shall not exceed the amount which 
     bears the same ratio to such amount of credit (determined 
     without regard to this paragraph) as the energy efficiency 
     percentage of such system bears to 60 percent.''.
       (d) Increase of Credit Limitation for Fuel Cell Property.--
     Subparagraph (B) of section 48(c)(1) is amended by striking 
     ``$500'' and inserting ``$1,500''.
       (e) Public Utility Property Taken Into Account.--
       (1) In general.--Paragraph (3) of section 48(a) is amended 
     by striking the second sentence thereof.
       (2) Conforming amendments.--
       (A) Paragraph (1) of section 48(c) is amended by striking 
     subparagraph (D) and redesignating subparagraph (E) as 
     subparagraph (D).
       (B) Paragraph (2) of section 48(c) is amended by striking 
     subparagraph (D) and redesignating subparagraph (E) as 
     subparagraph (D).
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall take 
     effect on the date of the enactment of this Act.

[[Page 19258]]

       (2) Allowance against alternative minimum tax.--The 
     amendments made by subsection (b) shall apply to credits 
     determined under section 46 of the Internal Revenue Code of 
     1986 in taxable years beginning after the date of the 
     enactment of this Act and to carrybacks of such credits.
       (3) Combined heat and power and fuel cell property.--The 
     amendments made by subsections (c) and (d) shall apply to 
     periods after the date of the enactment of this Act, in 
     taxable years ending after such date, under rules similar to 
     the rules of section 48(m) of the Internal Revenue Code of 
     1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).
       (4)  Public utility property.--The amendments made by 
     subsection (e) shall apply to periods after February 13, 
     2008, in taxable years ending after such date, under rules 
     similar to the rules of section 48(m) of the Internal Revenue 
     Code of 1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).

     SEC. 804. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

       (a) Extension.--Section 25D(g) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2016''.
       (b) Maximum Credit for Solar Electric Property.--
       (1) In general.--Section 25D(b)(1)(A) is amended by 
     striking ``$2,000'' and inserting ``$4,000''.
       (2) Conforming amendment.--Section 25D(e)(4)(A)(i) is 
     amended by striking ``$6,667'' and inserting ``$13,333''.
       (c) Credit for Residential Wind Property.--
       (1) In general.--Section 25D(a) is amended by striking 
     ``and'' at the end of paragraph (2), by striking the period 
     at the end of paragraph (3) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(4) 30 percent of the qualified small wind energy 
     property expenditures made by the taxpayer during such 
     year.''.
       (2) Limitation.--Section 25D(b)(1) is amended by striking 
     ``and'' at the end of subparagraph (B), by striking the 
     period at the end of subparagraph (C) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(D) $500 with respect to each half kilowatt of capacity 
     (not to exceed $4,000) of wind turbines for which qualified 
     small wind energy property expenditures are made.''.
       (3) Qualified small wind energy property expenditures.--
       (A) In general.--Section 25D(d) is amended by adding at the 
     end the following new paragraph:
       ``(4) Qualified small wind energy property expenditure.--
     The term `qualified small wind energy property expenditure' 
     means an expenditure for property which uses a wind turbine 
     to generate electricity for use in connection with a dwelling 
     unit located in the United States and used as a residence by 
     the taxpayer.''.
       (B) No double benefit.--Section 45(d)(1) is amended by 
     adding at the end the following new sentence: ``Such term 
     shall not include any facility with respect to which any 
     qualified small wind energy property expenditure (as defined 
     in subsection (d)(4) of section 25D) is taken into account in 
     determining the credit under such section.''.
       (4) Maximum expenditures in case of joint occupancy.--
     Section 25D(e)(4)(A) is amended by striking ``and'' at the 
     end of clause (ii), by striking the period at the end of 
     clause (iii) and inserting ``, and'', and by adding at the 
     end the following new clause:
       ``(iv) $1,667 in the case of each half kilowatt of capacity 
     (not to exceed $13,333) of wind turbines for which qualified 
     small wind energy property expenditures are made.''.
       (d) Credit for Geothermal Heat pump Systems.--
       (1) In general.--Section 25D(a), as amended by subsection 
     (c), is amended by striking ``and'' at the end of paragraph 
     (3), by striking the period at the end of paragraph (4) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(5) 30 percent of the qualified geothermal heat pump 
     property expenditures made by the taxpayer during such 
     year.''.
       (2) Limitation.--Section 25D(b)(1), as amended by 
     subsection (c), is amended by striking ``and'' at the end of 
     subparagraph (C), by striking the period at the end of 
     subparagraph (D) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(E) $2,000 with respect to any qualified geothermal heat 
     pump property expenditures.''.
       (3) Qualified geothermal heat pump property expenditure.--
     Section 25D(d), as amended by subsection (c), is amended by 
     adding at the end the following new paragraph:
       ``(5) Qualified geothermal heat pump property 
     expenditure.--
       ``(A) In general.--The term `qualified geothermal heat pump 
     property expenditure' means an expenditure for qualified 
     geothermal heat pump property installed on or in connection 
     with a dwelling unit located in the United States and used as 
     a residence by the taxpayer.
       ``(B) Qualified geothermal heat pump property.--The term 
     `qualified geothermal heat pump property' means any equipment 
     which--
       ``(i) uses the ground or ground water as a thermal energy 
     source to heat the dwelling unit referred to in subparagraph 
     (A) or as a thermal energy sink to cool such dwelling unit, 
     and
       ``(ii) meets the requirements of the Energy Star program 
     which are in effect at the time that the expenditure for such 
     equipment is made.''.
       (4) Maximum expenditures in case of joint occupancy.--
     Section 25D(e)(4)(A), as amended by subsection (c), is 
     amended by striking ``and'' at the end of clause (iii), by 
     striking the period at the end of clause (iv) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(v) $6,667 in the case of any qualified geothermal heat 
     pump property expenditures.''.
       (e) Credit Allowed Against Alternative Minimum Tax.--
       (1) In general.--Subsection (c) of section 25D is amended 
     to read as follows:
       ``(c) Limitation Based on Amount of Tax; Carryforward of 
     Unused Credit.--
       ``(1) 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 the taxable year 
     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.
       ``(2) Carryforward of unused credit.--
       ``(A) Rule for years in which all personal credits allowed 
     against regular and alternative minimum tax.--In the case of 
     a taxable year to which section 26(a)(2) applies, if the 
     credit allowable under subsection (a) exceeds the limitation 
     imposed by section 26(a)(2) for such taxable year reduced by 
     the sum of the credits allowable under this subpart (other 
     than this section), such excess shall be carried to the 
     succeeding taxable year and added to the credit allowable 
     under subsection (a) for such succeeding taxable year.
       ``(B) Rule for other years.--In the case of a taxable year 
     to which section 26(a)(2) does not apply, if the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such succeeding 
     taxable year.''.
       (2) Conforming amendments.--
       (A) Section 23(b)(4)(B) is amended by inserting ``and 
     section 25D'' after ``this section''.
       (B) Section 24(b)(3)(B) is amended by striking ``and 25B'' 
     and inserting ``, 25B, and 25D''.
       (C) Section 25B(g)(2) is amended by striking ``section 23'' 
     and inserting ``sections 23 and 25D''.
       (D) Section 26(a)(1) is amended by striking ``and 25B'' and 
     inserting ``25B, and 25D''.
       (f) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2007.
       (2) Application of egtrra sunset.--The amendments made by 
     subparagraphs (A) and (B) of subsection (e)(2) 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. 805. SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC 
                   RESTRUCTURING POLICY.

       (a) Extension for Qualified Electric Utilities.--
       (1) In general.--Paragraph (3) of section 451(i) is amended 
     by inserting ``(before January 1, 2010, in the case of a 
     qualified electric utility)'' after ``January 1, 2008''.
       (2) Qualified electric utility.--Subsection (i) of section 
     451 is amended by redesignating paragraphs (6) through (10) 
     as paragraphs (7) through (11), respectively, and by 
     inserting after paragraph (5) the following new paragraph:
       ``(6) Qualified electric utility.--For purposes of this 
     subsection, the term `qualified electric utility' means a 
     person that, as of the date of the qualifying electric 
     transmission transaction, is vertically integrated, in that 
     it is both--
       ``(A) a transmitting utility (as defined in section 3(23) 
     of the Federal Power Act (16 U.S.C. 796(23))) with respect to 
     the transmission facilities to which the election under this 
     subsection applies, and
       ``(B) an electric utility (as defined in section 3(22) of 
     the Federal Power Act (16 U.S.C. 796(22))).''.
       (b) Extension of Period for Transfer of Operational Control 
     Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) 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) Property Located Outside the United States Not Treated 
     as Exempt Utility Property.--Paragraph (5) of section 451(i) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) Exception for property located outside the united 
     states.--The term `exempt utility property' shall not include 
     any property which is located outside the United States.''.

[[Page 19259]]

       (d) 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.
       (3) Exception for property located outside the united 
     states.--The amendment made by subsection (c) shall apply to 
     transactions after the date of the enactment of this Act.

     SEC. 806. NEW CLEAN RENEWABLE ENERGY BONDS.

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

     ``SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS.

       ``(a) New Clean Renewable Energy Bond.--For purposes of 
     this subpart, the term `new clean renewable energy bond' 
     means any bond issued as part of an issue if--
       ``(1) 100 percent of the available project proceeds of such 
     issue are to be used for capital expenditures incurred by 
     public power providers or cooperative electric companies for 
     one or more qualified renewable energy facilities,
       ``(2) the bond is issued by a qualified issuer, and
       ``(3) the issuer designates such bond for purposes of this 
     section.
       ``(b) Reduced Credit Amount.--The annual credit determined 
     under section 54A(b) with respect to any new clean renewable 
     energy bond shall be 70 percent of the amount so determined 
     without regard to this subsection.
       ``(c) Limitation on Amount of Bonds Designated.--
       ``(1) In general.--The maximum aggregate face amount of 
     bonds which may be designated under subsection (a) by any 
     issuer shall not exceed the limitation amount allocated under 
     this subsection to such issuer.
       ``(2) National limitation on amount of bonds designated.--
     There is a national new clean renewable energy bond 
     limitation of $1,750,000,000 which shall be allocated by the 
     Secretary as provided in paragraph (3), except that--
       ``(A) not more than 33\1/3\ percent thereof may be 
     allocated to qualified projects of public power providers,
       ``(B) not more than 33\1/3\ percent thereof may be 
     allocated to qualified projects of governmental bodies, and
       ``(C) not more than 33\1/3\ percent thereof may be 
     allocated to qualified projects of cooperative electric 
     companies.
       ``(3) Method of allocation.--
       ``(A) Allocation among public power providers.--After the 
     Secretary determines the qualified projects of public power 
     providers which are appropriate for receiving an allocation 
     of the national new clean renewable energy bond limitation, 
     the Secretary shall, to the maximum extent practicable, make 
     allocations among such projects in such manner that the 
     amount allocated to each such project bears the same ratio to 
     the cost of such project as the limitation under paragraph 
     (2)(A) bears to the cost of all such projects.
       ``(B) Allocation among governmental bodies and cooperative 
     electric companies.--The Secretary shall make allocations of 
     the amount of the national new clean renewable energy bond 
     limitation described in paragraphs (2)(B) and (2)(C) among 
     qualified projects of governmental bodies and cooperative 
     electric companies, respectively, in such manner as the 
     Secretary determines appropriate.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified renewable energy facility.--The term 
     `qualified renewable energy facility' means a qualified 
     facility (as determined under section 45(d) without regard to 
     paragraphs (8) and (10) thereof and to any placed in service 
     date) owned by a public power provider, a governmental body, 
     or a cooperative electric company.
       ``(2) Public power provider.--The term `public power 
     provider' means a State utility with a service obligation, as 
     such terms are defined in section 217 of the Federal Power 
     Act (as in effect on the date of the enactment of this 
     paragraph).
       ``(3) Governmental body.--The term `governmental body' 
     means any State or Indian tribal government, or any political 
     subdivision thereof.
       ``(4) Cooperative electric company.--The term `cooperative 
     electric company' means a mutual or cooperative electric 
     company described in section 501(c)(12) or section 
     1381(a)(2)(C).
       ``(5) Clean renewable energy bond lender.--The term `clean 
     renewable energy bond lender' means a lender which is a 
     cooperative which is owned by, or has outstanding loans to, 
     100 or more cooperative electric companies and is in 
     existence on February 1, 2002, and shall include any 
     affiliated entity which is controlled by such lender.
       ``(6) Qualified issuer.--The term `qualified issuer' means 
     a public power provider, a cooperative electric company, a 
     governmental body, a clean renewable energy bond lender, or a 
     not-for-profit electric utility which has received a loan or 
     loan guarantee under the Rural Electrification Act.''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d) is amended to read as 
     follows:
       ``(1) Qualified tax credit bond.--The term `qualified tax 
     credit bond' means--
       ``(A) a qualified forestry conservation bond, or
       ``(B) a new clean renewable energy bond,
     which is part of an issue that meets requirements of 
     paragraphs (2), (3), (4), (5), and (6).''.
       (2) Subparagraph (C) of section 54A(d)(2) is amended to 
     read as follows:
       ``(C) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means--
       ``(i) in the case of a qualified forestry conservation 
     bond, a purpose specified in section 54B(e), and
       ``(ii) in the case of a new clean renewable energy bond, a 
     purpose specified in section 54C(a)(1).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 54C. New clean renewable energy bonds.''.
       (c) Application of Certain Labor Standards on Projects 
     Financed Under Tax Credit Bonds.--Subchapter IV of chapter 31 
     of title 40, United States Code, shall apply to projects 
     financed with the proceeds of any tax credit bond (as defined 
     in section 54A of the Internal Revenue Code of 1986) other 
     than qualified forestry conservation bonds (as defined in 
     section 54B of such Code).
       (d) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

                  PART 2--CARBON MITIGATION PROVISIONS

     SEC. 811. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT 
                   INVESTMENT CREDIT.

       (a) Modification of Credit Amount.--Section 48A(a) is 
     amended by striking ``and'' at the end of paragraph (1), by 
     striking the period at the end of paragraph (2) and inserting 
     ``, and'', and by adding at the end the following new 
     paragraph:
       ``(3) 30 percent of the qualified investment for such 
     taxable year in the case of projects described in clause 
     (iii) of subsection (d)(3)(B).''.
       (b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A) 
     is amended by striking ``$1,300,000,000'' and inserting 
     ``$2,250,000,000''.
       (c) Authorization of Additional Projects.--
       (1) In general.--Subparagraph (B) of section 48A(d)(3) is 
     amended to read as follows:
       ``(B) Particular projects.--Of the dollar amount in 
     subparagraph (A), the Secretary is authorized to certify--
       ``(i) $800,000,000 for integrated gasification combined 
     cycle projects the application for which is submitted during 
     the period described in paragraph (2)(A)(i),
       ``(ii) $500,000,000 for projects which use other advanced 
     coal-based generation technologies the application for which 
     is submitted during the period described in paragraph 
     (2)(A)(i), and
       ``(iii) $950,000,000 for advanced coal-based generation 
     technology projects the application for which is submitted 
     during the period described in paragraph (2)(A)(ii).''.
       (2) Application period for additional projects.--
     Subparagraph (A) of section 48A(d)(2) is amended to read as 
     follows:
       ``(A) Application period.--Each applicant for certification 
     under this paragraph shall submit an application meeting the 
     requirements of subparagraph (B). An applicant may only 
     submit an application--
       ``(i) for an allocation from the dollar amount specified in 
     clause (i) or (ii) of paragraph (3)(B) during the 3-year 
     period beginning on the date the Secretary establishes the 
     program under paragraph (1), and
       ``(ii) for an allocation from the dollar amount specified 
     in paragraph (3)(B)(iii) during the 3-year period beginning 
     at the earlier of the termination of the period described in 
     clause (i) or the date prescribed by the Secretary.''.
       (3) Capture and sequestration of carbon dioxide emissions 
     requirement.--
       (A) In general.--Section 48A(e)(1) is amended by striking 
     ``and'' at the end of subparagraph (E), by striking the 
     period at the end of subparagraph (F) and inserting ``; 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(G) in the case of any project the application for which 
     is submitted during the period described in subsection 
     (d)(2)(A)(ii), the project includes equipment which separates 
     and sequesters at least 65 percent (70 percent in the case of 
     an application for reallocated credits under subsection 
     (d)(4)) of such project's total carbon dioxide emissions.''.
       (B) Highest priority for projects which sequester carbon 
     dioxide emissions.--Section 48A(e)(3) is amended by striking 
     ``and'' at the end of subparagraph (A)(iii), by striking the 
     period at the end of subparagraph (B)(iii) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(C) give highest priority to projects with the greatest 
     separation and sequestration percentage of total carbon 
     dioxide emissions.''.

[[Page 19260]]

       (C) Recapture of credit for failure to sequester.--Section 
     48A is amended by adding at the end the following new 
     subsection:
       ``(i) Recapture of Credit for Failure To Sequester.--The 
     Secretary shall provide for recapturing the benefit of any 
     credit allowable under subsection (a) with respect to any 
     project which fails to attain or maintain the separation and 
     sequestration requirements of subsection (e)(1)(G).''.
       (4) Additional priority for research partnerships.--Section 
     48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
       (A) by striking ``and'' at the end of clause (ii),
       (B) by redesignating clause (iii) as clause (iv), and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) applicant participants who have a research 
     partnership with an eligible educational institution (as 
     defined in section 529(e)(5)), and''.
       (5) Clerical amendment.--Section 48A(e)(3) is amended by 
     striking ``integrated gasification combined cycle'' in the 
     heading and inserting ``certain''.
       (d) Disclosure of Allocations.--Section 48A(d) is amended 
     by adding at the end the following new paragraph:
       ``(5) Disclosure of allocations.--The Secretary shall, upon 
     making a certification under this subsection or section 
     48B(d), publicly disclose the identity of the applicant and 
     the amount of the credit certified with respect to such 
     applicant.''.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to credits the application for which is submitted during the 
     period described in section 48A(d)(2)(A)(ii) of the Internal 
     Revenue Code of 1986 and which are allocated or reallocated 
     after the date of the enactment of this Act.
       (2) Disclosure of allocations.--The amendment made by 
     subsection (d) shall apply to certifications made after the 
     date of the enactment of this Act.
       (3) Clerical amendment.--The amendment made by subsection 
     (c)(5) shall take effect as if included in the amendment made 
     by section 1307(b) of the Energy Tax Incentives Act of 2005.

     SEC. 812. EXPANSION AND MODIFICATION OF COAL GASIFICATION 
                   INVESTMENT CREDIT.

       (a) Modification of Credit Amount.--Section 48B(a) is 
     amended by inserting ``(30 percent in the case of credits 
     allocated under subsection (d)(1)(B))'' after ``20 percent''.
       (b) Expansion of Aggregate Credits.--Section 48B(d)(1) is 
     amended by striking ``shall not exceed $350,000,000'' and all 
     that follows and inserting ``shall not exceed--
       ``(A) $350,000,000, plus
       ``(B) $150,000,000 for qualifying gasification projects 
     that include equipment which separates and sequesters at 
     least 75 percent of such project's total carbon dioxide 
     emissions.''.
       (c) Recapture of Credit for Failure To Sequester.--Section 
     48B is amended by adding at the end the following new 
     subsection:
       ``(f) Recapture of Credit for Failure To Sequester.--The 
     Secretary shall provide for recapturing the benefit of any 
     credit allowable under subsection (a) with respect to any 
     project which fails to attain or maintain the separation and 
     sequestration requirements for such project under subsection 
     (d)(1).''.
       (d) Selection Priorities.--Section 48B(d) is amended by 
     adding at the end the following new paragraph:
       ``(4) Selection priorities.--In determining which 
     qualifying gasification projects to certify under this 
     section, the Secretary shall--
       ``(A) give highest priority to projects with the greatest 
     separation and sequestration percentage of total carbon 
     dioxide emissions, and
       ``(B) give high priority to applicant participants who have 
     a research partnership with an eligible educational 
     institution (as defined in section 529(e)(5)).''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to credits described in section 48B(d)(1)(B) of 
     the Internal Revenue Code of 1986 which are allocated or 
     reallocated after the date of the enactment of this Act.

     SEC. 813. TEMPORARY INCREASE IN COAL EXCISE TAX.

       Paragraph (2) of section 4121(e) is amended--
       (1) by striking ``January 1, 2014'' in subparagraph (A) and 
     inserting ``December 31, 2018'', and
       (2) by striking ``January 1 after 1981'' in subparagraph 
     (B) and inserting ``December 31 after 2007''.

     SEC. 814. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO 
                   CERTAIN COAL PRODUCERS AND EXPORTERS.

       (a) Refund.--
       (1) Coal producers.--
       (A) In general.--Notwithstanding subsections (a)(1) and (c) 
     of section 6416 and section 6511 of the Internal Revenue Code 
     of 1986, if--
       (i) a coal producer establishes that such coal producer, or 
     a party related to such coal producer, exported coal produced 
     by such coal producer to a foreign country or shipped coal 
     produced by such coal producer to a possession of the United 
     States, or caused such coal to be exported or shipped, the 
     export or shipment of which was other than through an 
     exporter who meets the requirements of paragraph (2),
       (ii) such coal producer filed an excise tax return on or 
     after October 1, 1990, and on or before the date of the 
     enactment of this Act, and
       (iii) such coal producer files a claim for refund with the 
     Secretary not later than the close of the 30-day period 
     beginning on the date of the enactment of this Act,

     then the Secretary shall pay to such coal producer an amount 
     equal to the tax paid under section 4121 of such Code on such 
     coal exported or shipped by the coal producer or a party 
     related to such coal producer, or caused by the coal producer 
     or a party related to such coal producer to be exported or 
     shipped.
       (B) Special rules for certain taxpayers.--For purposes of 
     this section--
       (i) In general.--If a coal producer or a party related to a 
     coal producer has received a judgment described in clause 
     (iii), such coal producer shall be deemed to have established 
     the export of coal to a foreign country or shipment of coal 
     to a possession of the United States under subparagraph 
     (A)(i).
       (ii) Amount of payment.--If a taxpayer described in clause 
     (i) is entitled to a payment under subparagraph (A), the 
     amount of such payment shall be reduced by any amount paid 
     pursuant to the judgment described in clause (iii).
       (iii) Judgment described.--A judgment is described in this 
     subparagraph if such judgment--

       (I) is made by a court of competent jurisdiction within the 
     United States,
       (II) relates to the constitutionality of any tax paid on 
     exported coal under section 4121 of the Internal Revenue Code 
     of 1986, and
       (III) is in favor of the coal producer or the party related 
     to the coal producer.

       (2) Exporters.--Notwithstanding subsections (a)(1) and (c) 
     of section 6416 and section 6511 of the Internal Revenue Code 
     of 1986, and a judgment described in paragraph (1)(B)(iii) of 
     this subsection, if--
       (A) an exporter establishes that such exporter exported 
     coal to a foreign country or shipped coal to a possession of 
     the United States, or caused such coal to be so exported or 
     shipped,
       (B) such exporter filed a tax return on or after October 1, 
     1990, and on or before the date of the enactment of this Act, 
     and
       (C) such exporter files a claim for refund with the 
     Secretary not later than the close of the 30-day period 
     beginning on the date of the enactment of this Act,

     then the Secretary shall pay to such exporter an amount equal 
     to $0.825 per ton of such coal exported by the exporter or 
     caused to be exported or shipped, or caused to be exported or 
     shipped, by the exporter.
       (b) Limitations.--Subsection (a) shall not apply with 
     respect to exported coal if a settlement with the Federal 
     Government has been made with and accepted by, the coal 
     producer, a party related to such coal producer, or the 
     exporter, of such coal, as of the date that the claim is 
     filed under this section with respect to such exported coal. 
     For purposes of this subsection, the term ``settlement with 
     the Federal Government'' shall not include any settlement or 
     stipulation entered into as of the date of the enactment of 
     this Act, the terms of which contemplate a judgment 
     concerning which any party has reserved the right to file an 
     appeal, or has filed an appeal.
       (c) Subsequent Refund Prohibited.--No refund shall be made 
     under this section to the extent that a credit or refund of 
     such tax on such exported or shipped coal has been paid to 
     any person.
       (d) Definitions.--For purposes of this section--
       (1) Coal producer.--The term ``coal producer'' means the 
     person in whom is vested ownership of the coal immediately 
     after the coal is severed from the ground, without regard to 
     the existence of any contractual arrangement for the sale or 
     other disposition of the coal or the payment of any royalties 
     between the producer and third parties. The term includes any 
     person who extracts coal from coal waste refuse piles or from 
     the silt waste product which results from the wet washing (or 
     similar processing) of coal.
       (2) Exporter.--The term ``exporter'' means a person, other 
     than a coal producer, who does not have a contract, fee 
     arrangement, or any other agreement with a producer or seller 
     of such coal to export or ship such coal to a third party on 
     behalf of the producer or seller of such coal and--
       (A) is indicated in the shipper's export declaration or 
     other documentation as the exporter of record, or
       (B) actually exported such coal to a foreign country or 
     shipped such coal to a possession of the United States, or 
     caused such coal to be so exported or shipped.
       (3) Related party.--The term ``a party related to such coal 
     producer'' means a person who--
       (A) is related to such coal producer through any degree of 
     common management, stock ownership, or voting control,
       (B) is related (within the meaning of section 144(a)(3) of 
     the Internal Revenue Code of 1986) to such coal producer, or
       (C) has a contract, fee arrangement, or any other agreement 
     with such coal producer to

[[Page 19261]]

     sell such coal to a third party on behalf of such coal 
     producer.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Treasury or the Secretary's designee.
       (e) Timing of Refund.--With respect to any claim for refund 
     filed pursuant to this section, the Secretary shall determine 
     whether the requirements of this section are met not later 
     than 180 days after such claim is filed. If the Secretary 
     determines that the requirements of this section are met, the 
     claim for refund shall be paid not later than 180 days after 
     the Secretary makes such determination.
       (f) Interest.--Any refund paid pursuant to this section 
     shall be paid by the Secretary with interest from the date of 
     overpayment determined by using the overpayment rate and 
     method under section 6621 of the Internal Revenue Code of 
     1986.
       (g) Denial of Double Benefit.--The payment under subsection 
     (a) with respect to any coal shall not exceed--
       (1) in the case of a payment to a coal producer, the amount 
     of tax paid under section 4121 of the Internal Revenue Code 
     of 1986 with respect to such coal by such coal producer or a 
     party related to such coal producer, and
       (2) in the case of a payment to an exporter, an amount 
     equal to $0.825 per ton with respect to such coal exported by 
     the exporter or caused to be exported by the exporter.
       (h) Application of Section.--This section applies only to 
     claims on coal exported or shipped on or after October 1, 
     1990, through the date of the enactment of this Act.
       (i) Standing Not Conferred.--
       (1) Exporters.--With respect to exporters, this section 
     shall not confer standing upon an exporter to commence, or 
     intervene in, any judicial or administrative proceeding 
     concerning a claim for refund by a coal producer of any 
     Federal or State tax, fee, or royalty paid by the coal 
     producer.
       (2) Coal producers.--With respect to coal producers, this 
     section shall not confer standing upon a coal producer to 
     commence, or intervene in, any judicial or administrative 
     proceeding concerning a claim for refund by an exporter of 
     any Federal or State tax, fee, or royalty paid by the 
     producer and alleged to have been passed on to an exporter.

     SEC. 815. CARBON AUDIT OF THE TAX CODE.

       (a) Study.--The Secretary of the Treasury shall enter into 
     an agreement with the National Academy of Sciences to 
     undertake a comprehensive review of the Internal Revenue Code 
     of 1986 to identify the types of and specific tax provisions 
     that have the largest effects on carbon and other greenhouse 
     gas emissions and to estimate the magnitude of those effects.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the National Academy of Sciences shall 
     submit to Congress a report containing the results of study 
     authorized under this section.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,500,000 for 
     the period of fiscal years 2009 and 2010.

    Subtitle B--Transportation and Domestic Fuel Security Provisions

     SEC. 821. INCLUSION OF CELLULOSIC BIOFUEL IN BONUS 
                   DEPRECIATION FOR BIOMASS ETHANOL PLANT 
                   PROPERTY.

       (a) In General.--Paragraph (3) of section 168(l) is amended 
     to read as follows:
       ``(3) Cellulosic biofuel.--The term `cellulosic biofuel' 
     means any liquid fuel which is produced from any 
     lignocellulosic or hemicellulosic matter that is available on 
     a renewable or recurring basis.''.
       (b) Conforming Amendments.--Subsection (l) of section 168 
     is amended--
       (1) by striking ``cellulosic biomass ethanol'' each place 
     it appears and inserting ``cellulosic biofuel'',
       (2) by striking ``Cellulosic Biomass Ethanol'' in the 
     heading of such subsection and inserting ``Cellulosic 
     Biofuel'', and
       (3) by striking ``cellulosic biomass ethanol'' in the 
     heading of paragraph (2) thereof and inserting ``cellulosic 
     biofuel''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 822. CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

       (a) In General.--Sections 40A(g), 6426(c)(6), and 
     6427(e)(5)(B) are each amended by striking ``December 31, 
     2008'' and inserting ``December 31, 2009''.
       (b) Increase in Rate of Credit.--
       (1) Income tax credit.--Paragraphs (1)(A) and (2)(A) of 
     section 40A(b) are each amended by striking ``50 cents'' and 
     inserting ``$1.00''.
       (2) Excise tax credit.--Paragraph (2) of section 6426(c) is 
     amended to read as follows:
       ``(2) Applicable amount.--For purposes of this subsection, 
     the applicable amount is $1.00.''.
       (3) Conforming amendments.--
       (A) Subsection (b) of section 40A is amended by striking 
     paragraph (3) and by redesignating paragraphs (4) and (5) as 
     paragraphs (3) and (4), respectively.
       (B) Paragraph (2) of section 40A(f) is amended to read as 
     follows:
       ``(2) Exception.--Subsection (b)(4) shall not apply with 
     respect to renewable diesel.''.
       (C) Paragraphs (2) and (3) of section 40A(e) are each 
     amended by striking ``subsection (b)(5)(C)'' and inserting 
     ``subsection (b)(4)(C)''.
       (D) Clause (ii) of section 40A(d)(3)(C) is amended by 
     striking ``subsection (b)(5)(B)'' and inserting ``subsection 
     (b)(4)(B)''.
       (c) Uniform Treatment of Diesel Produced From Biomass.--
     Paragraph (3) of section 40A(f) is amended--
       (1) by striking ``diesel fuel'' and inserting ``liquid 
     fuel'',
       (2) by striking ``using a thermal depolymerization 
     process'', and
       (3) by striking ``or D396'' in subparagraph (B) and 
     inserting ``, D396, or other equivalent standard approved by 
     the Secretary''.
       (d) Coproduction of Renewable Diesel With Petroleum 
     Feedstock.--
       (1) In general.--Paragraph (3) of section 40A(f) (defining 
     renewable diesel) is amended by adding at the end the 
     following flush sentence:

     ``Such term does not include any fuel derived from 
     coprocessing biomass with a feedstock which is not biomass. 
     For purposes of this paragraph, the term `biomass' has the 
     meaning given such term by section 45K(c)(3).''.
       (2) Conforming amendment.--Paragraph (3) of section 40A(f) 
     is amended by striking ``(as defined in section 45K(c)(3))''.
       (e) Eligibility of Certain Aviation Fuel.--Subsection (f) 
     of section 40A (relating to renewable diesel) is amended by 
     adding at the end the following new paragraph:
       ``(4) Certain aviation fuel.--
       ``(A) In general.--Except as provided in the last three 
     sentences of paragraph (3), the term `renewable diesel' shall 
     include fuel derived from biomass which meets the 
     requirements of a Department of Defense specification for 
     military jet fuel or an American Society of Testing and 
     Materials specification for aviation turbine fuel.
       ``(B) Application of mixture credits.--In the case of fuel 
     which is treated as renewable diesel solely by reason of 
     subparagraph (A), subsection (b)(1) and section 6426(c) shall 
     be applied with respect to such fuel by treating kerosene as 
     though it were diesel fuel.''.
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to fuel produced, and sold or used, after December 31, 2008.
       (2) Coproduction of renewable diesel with petroleum 
     feedstock.--The amendments made by subsection (c) shall apply 
     to fuel produced, and sold or used, after February 13, 2008.

     SEC. 823. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO 
                   PROVIDE AN INCENTIVE FOR UNITED STATES 
                   PRODUCTION.

       (a) Alcohol Fuels Credit.--Subsection (d) of section 40 is 
     amended by adding at the end the following new paragraph:
       ``(7) Limitation to alcohol with connection to the united 
     states.--No credit shall be determined under this section 
     with respect to any alcohol which is produced outside the 
     United States for use as a fuel outside the United States. 
     For purposes of this paragraph, the term `United States' 
     includes any possession of the United States.''.
       (b) Biodiesel Fuels Credit.--Subsection (d) of section 40A 
     is amended by adding at the end the following new paragraph:
       ``(5) Limitation to biodiesel with connection to the united 
     states.--No credit shall be determined under this section 
     with respect to any biodiesel which is produced outside the 
     United States for use as a fuel outside the United States. 
     For purposes of this paragraph, the term `United States' 
     includes any possession of the United States.''.
       (c) Excise Tax Credit.--
       (1) In general.--Section 6426 is amended by adding at the 
     end the following new subsection:
       ``(i) Limitation to Fuels With Connection to the United 
     States.--
       ``(1) Alcohol.--No credit shall be determined under this 
     section with respect to any alcohol which is produced outside 
     the United States for use as a fuel outside the United 
     States.
       ``(2) Biodiesel and alternative fuels.--No credit shall be 
     determined under this section with respect to any biodiesel 
     or alternative fuel which is produced outside the United 
     States for use as a fuel outside the United States.

     For purposes of this subsection, the term `United States' 
     includes any possession of the United States.''.
       (2) Conforming amendment.--Subsection (e) of section 6427 
     is amended by redesignating paragraph (5) as paragraph (6) 
     and by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) Limitation to fuels with connection to the united 
     states.--No amount shall be payable under paragraph (1) or 
     (2) with respect to any mixture or alternative fuel if credit 
     is not allowed with respect to such mixture or alternative 
     fuel by reason of section 6426(i).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to claims for credit or payment made on or after 
     May 15, 2008.

     SEC. 824. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
                   MOTOR VEHICLES.

       (a) In General.--Section 30 is amended to read as follows:

[[Page 19262]]



     ``SEC. 30. 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--
       ``(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) Motor vehicle.--The term `motor vehicle' means any 
     vehicle which is manufactured primarily for use on public 
     streets, roads, and highways (not including a vehicle 
     operated exclusively on a rail or rails) and which has at 
     least 4 wheels.
       ``(4) 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.).
       ``(5) 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) 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 30 
     (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) is amended by striking ``plus'' at the end of paragraph 
     (32), by striking the period at the end of paragraph (33) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(34) the portion of the new qualified plug-in electric 
     drive motor vehicle credit to which section 30(c)(1) 
     applies.''.
       (d) Conforming Amendments.--
       (1)(A) Section 24(b)(3)(B), as amended by section 804, is 
     amended by striking ``and 25D'' and inserting ``25D, and 
     30''.
       (B) Section 25(e)(1)(C)(ii) is amended by inserting ``30,'' 
     after ``25D,''.
       (C) Section 25B(g)(2), as amended by section 804, is 
     amended by striking ``and 25D'' and inserting ``, 25D, and 
     30''.
       (D) Section 26(a)(1), as amended by section 804, is amended 
     by striking ``and 25D'' and inserting ``25D, and 30''.
       (E) Section 1400C(d)(2) is amended by striking ``and 25D'' 
     and inserting ``25D, and 30''.
       (2) Section 30B(h)(1) is amended by striking ``section 
     30(c)(2)'' and inserting ``section 30(d)(3)''.
       (3)(A) Section 53(d)(1)(B) is amended by striking clause 
     (iii) and redesignating clause (iv) as clause (iii).
       (B) Subclause (II) of section 53(d)(1)(B)(iii), as so 
     redesignated, is amended by striking ``increased in the 
     manner provided in clause (iii)''.
       (4) Section 55(c)(3) is amended by striking ``30(b)(3),''.
       (5) Section 1016(a)(25) is amended by striking ``section 
     30(d)(1)'' and inserting ``section 30(f)(1)''.
       (6) Section 6501(m) is amended by striking ``section 
     30(d)(4)'' and inserting ``section 30(f)(4)''.
       (7) The item in the table of sections for subpart B of part 
     IV of subchapter A of chapter 1 is amended to read as 
     follows:

``Sec. 30. 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) 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) is amended by 
     striking ``sections 27, 30, and 30B'' and inserting ``section 
     27''.
       (B) Paragraph (3) of section 55(c) 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.

[[Page 19263]]

       (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. 825. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION 
                   UNITS AND ADVANCED INSULATION.

       (a) In General.--Section 4053 is amended by adding at the 
     end the following new paragraphs:
       ``(9) Idling reduction device.--Any device or system of 
     devices which--
       ``(A) is designed to provide to a vehicle those services 
     (such as heat, air conditioning, or electricity) that would 
     otherwise require the operation of the main drive engine 
     while the vehicle is temporarily parked or remains stationary 
     using one or more devices affixed to a tractor, and
       ``(B) is determined by the Administrator of the 
     Environmental Protection Agency, in consultation with the 
     Secretary of Energy and the Secretary of Transportation, to 
     reduce idling of such vehicle at a motor vehicle rest stop or 
     other location where such vehicles are temporarily parked or 
     remain stationary.
       ``(10) Advanced insulation.--Any insulation that has an R 
     value of not less than R35 per inch.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to sales or installations after the date of the 
     enactment of this Act.

     SEC. 826. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.

       (a) In General.--Part I of subchapter Y of chapter 1 is 
     amended by redesignating section 1400L as section 1400K and 
     by adding at the end the following new section:

     ``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.

       ``(a) In General.--In the case of a New York Liberty Zone 
     governmental unit, there shall be allowed as a credit against 
     any taxes imposed for any payroll period by section 3402 for 
     which such governmental unit is liable under section 3403 an 
     amount equal to so much of the portion of the qualifying 
     project expenditure amount allocated under subsection (b)(3) 
     to such governmental unit for the calendar year as is 
     allocated by such governmental unit to such period under 
     subsection (b)(4).
       ``(b) Qualifying Project Expenditure Amount.--For purposes 
     of this section--
       ``(1) In general.--The term `qualifying project expenditure 
     amount' means, with respect to any calendar year, the sum 
     of--
       ``(A) the total expenditures paid or incurred during such 
     calendar year by all New York Liberty Zone governmental units 
     and the Port Authority of New York and New Jersey for any 
     portion of qualifying projects located wholly within the City 
     of New York, New York, and
       ``(B) any such expenditures--
       ``(i) paid or incurred in any preceding calendar year which 
     begins after the date of enactment of this section, and
       ``(ii) not previously allocated under paragraph (3).
       ``(2) Qualifying project.--The term `qualifying project' 
     means any transportation infrastructure project, including 
     highways, mass transit systems, railroads, airports, ports, 
     and waterways, in or connecting with the New York Liberty 
     Zone (as defined in section 1400K(h)), which is designated as 
     a qualifying project under this section jointly by the 
     Governor of the State of New York and the Mayor of the City 
     of New York, New York.
       ``(3) General allocation.--
       ``(A) In general.--The Governor of the State of New York 
     and the Mayor of the City of New York, New York, shall 
     jointly allocate to each New York Liberty Zone governmental 
     unit the portion of the qualifying project expenditure amount 
     which may be taken into account by such governmental unit 
     under subsection (a) for any calendar year in the credit 
     period.
       ``(B) Aggregate limit.--The aggregate amount which may be 
     allocated under subparagraph (A) for all calendar years in 
     the credit period shall not exceed $2,000,000,000.
       ``(C) Annual limit.--The aggregate amount which may be 
     allocated under subparagraph (A) for any calendar year in the 
     credit period shall not exceed the sum of--
       ``(i) $115,000,000 ($425,000,000 in the case of the last 2 
     years in the credit period), plus
       ``(ii) the aggregate amount authorized to be allocated 
     under this paragraph for all preceding calendar years in the 
     credit period which was not so allocated.
       ``(D) Unallocated amounts at end of credit period.--If, as 
     of the close of the credit period, the amount under 
     subparagraph (B) exceeds the aggregate amount allocated under 
     subparagraph (A) for all calendar years in the credit period, 
     the Governor of the State of New York and the Mayor of the 
     City of New York, New York, may jointly allocate to New York 
     Liberty Zone governmental units for any calendar year in the 
     5-year period following the credit period an amount equal 
     to--
       ``(i) the lesser of--

       ``(I) such excess, or
       ``(II) the qualifying project expenditure amount for such 
     calendar year, reduced by

       ``(ii) the aggregate amount allocated under this 
     subparagraph for all preceding calendar years.
       ``(4) Allocation to payroll periods.--Each New York Liberty 
     Zone governmental unit which has been allocated a portion of 
     the qualifying project expenditure amount under paragraph (3) 
     for a calendar year may allocate such portion to payroll 
     periods beginning in such calendar year as such governmental 
     unit determines appropriate.
       ``(c) Carryover of Unused Allocations.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     the amount allocated under subsection (b)(3) to a New York 
     Liberty Zone governmental unit for any calendar year exceeds 
     the aggregate taxes imposed by section 3402 for which such 
     governmental unit is liable under section 3403 for periods 
     beginning in such year, such excess shall be carried to the 
     succeeding calendar year and added to the allocation of such 
     governmental unit for such succeeding calendar year.
       ``(2) Reallocation.--If a New York Liberty Zone 
     governmental unit does not use an amount allocated to it 
     under subsection (b)(3) within the time prescribed by the 
     Governor of the State of New York and the Mayor of the City 
     of New York, New York, then such amount shall after such time 
     be treated for purposes of subsection (b)(3) in the same 
     manner as if it had never been allocated.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Credit period.--The term `credit period' means the 
     12-year period beginning on January 1, 2009.
       ``(2) New york liberty zone governmental unit.--The term 
     `New York Liberty Zone governmental unit' means--
       ``(A) the State of New York,
       ``(B) the City of New York, New York, and
       ``(C) any agency or instrumentality of such State or City.
       ``(3) Treatment of funds.--Any expenditure for a qualifying 
     project taken into account for purposes of the credit under 
     this section shall be considered State and local funds for 
     the purpose of any Federal program.
       ``(4) Treatment of credit amounts for purposes of 
     withholding taxes.--For purposes of this title, a New York 
     Liberty Zone governmental unit shall be treated as having 
     paid to the Secretary, on the day on which wages are paid to 
     employees, an amount equal to the amount of the credit 
     allowed to such entity under subsection (a) with respect to 
     such wages, but only if such governmental unit deducts and 
     withholds wages for such payroll period under section 3401 
     (relating to wage withholding).
       ``(e) Reporting.--The Governor of the State of New York and 
     the Mayor of the City of New York, New York, shall jointly 
     submit to the Secretary an annual report--
       ``(1) which certifies--
       ``(A) the qualifying project expenditure amount for the 
     calendar year, and
       ``(B) the amount allocated to each New York Liberty Zone 
     governmental unit under subsection (b)(3) for the calendar 
     year, and
       ``(2) includes such other information as the Secretary may 
     require to carry out this section.
       ``(f) Guidance.--The Secretary may prescribe such guidance 
     as may be necessary or appropriate to ensure compliance with 
     the purposes of this section.''.
       (b) Termination of Special Allowance and Expensing.--
     Subparagraph (A) of section 1400K(b)(2), as redesignated by 
     subsection (a), is amended by striking the parenthetical 
     therein and inserting ``(in the case of nonresidential real 
     property and residential rental property, the date of the 
     enactment of the Energy Tax Incentives Act of 2008 or, if 
     acquired pursuant to a binding contract in effect on such 
     enactment date, December 31, 2009)''.
       (c) Conforming Amendments.--
       (1) Section 38(c)(3)(B) is amended by striking ``section 
     1400L(a)'' and inserting ``section 1400K(a)''.
       (2) Section 168(k)(2)(D)(ii) is amended by striking 
     ``section 1400L(c)(2)'' and inserting ``section 
     1400K(c)(2)''.
       (3) The table of sections for part I of subchapter Y of 
     chapter 1 is amended by redesignating the item relating to 
     section 1400L as an item relating to section 1400K and by 
     inserting after such item the following new item:

``Sec. 1400L. New York Liberty Zone tax credits.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 827. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.

       (a) In General.--Paragraph (1) of section 132(f) is amended 
     by adding at the end the following:
       ``(D) Any qualified bicycle commuting reimbursement.''.
       (b) Limitation on Exclusion.--Paragraph (2) of section 
     132(f) is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(C) the applicable annual limitation in the case of any 
     qualified bicycle commuting reimbursement.''.
       (c) Definitions.--Paragraph (5) of section 132(f) is 
     amended by adding at the end the following:

[[Page 19264]]

       ``(F) Definitions related to bicycle commuting 
     reimbursement.--
       ``(i) Qualified bicycle commuting reimbursement.--The term 
     `qualified bicycle commuting reimbursement' means, with 
     respect to any calendar year, any employer reimbursement 
     during the 15-month period beginning with the first day of 
     such calendar year for reasonable expenses incurred by the 
     employee during such calendar year for the purchase of a 
     bicycle and bicycle improvements, repair, and storage, if 
     such bicycle is regularly used for travel between the 
     employee's residence and place of employment.
       ``(ii) Applicable annual limitation.--The term `applicable 
     annual limitation' means, with respect to any employee for 
     any calendar year, the product of $20 multiplied by the 
     number of qualified bicycle commuting months during such 
     year.
       ``(iii) Qualified bicycle commuting month.--The term 
     `qualified bicycle commuting month' means, with respect to 
     any employee, any month during which such employee--

       ``(I) regularly uses the bicycle for a substantial portion 
     of the travel between the employee's residence and place of 
     employment, and
       ``(II) does not receive any benefit described in 
     subparagraph (A), (B), or (C) of paragraph (1).''.

       (d) Constructive Receipt of Benefit.--Paragraph (4) of 
     section 132(f) is amended by inserting ``(other than a 
     qualified bicycle commuting reimbursement)'' after 
     ``qualified transportation fringe''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 828. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

       (a) Increase in Credit Amount.--Section 30C is amended--
       (1) by striking ``30 percent'' in subsection (a) and 
     inserting ``50 percent'',
       (2) by striking ``$30,000'' in subsection (b)(1) and 
     inserting ``$50,000'', and
       (3) by striking ``$1,000'' in subsection (b)(2) and 
     inserting ``$2,000''.
       (b) Extension of Credit.--Subsection (g) of section 30C is 
     amended--
       (1) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3) and inserting before paragraph (2) (as so 
     redesignated) the following new paragraph:
       ``(1) in the case of property relating to natural gas, 
     compressed natural gas, or liquified natural gas, and which 
     is not of a character subject to an allowance for 
     depreciation, December 31, 2017,'', and
       (2) by striking ``December 31, 2009'' in paragraph (3) (as 
     so redesignated) and inserting ``December 31, 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 829. ENERGY SECURITY BONDS.

       (a) In General.--Subpart I of part IV of subchapter A of 
     chapter 1, as amended by sections 806 and 841, is amended by 
     adding at the end the following new section:

     ``SEC. 54E. ENERGY SECURITY BONDS.

       ``(a) Energy Security Bond.--For purposes of this 
     subchapter, the term `energy security bond' means any bond 
     issued as part of an issue if--
       ``(1) 100 percent of the available project proceeds of such 
     issue are to be used for qualified purposes,
       ``(2) the bond is issued by a qualified issuer,
       ``(3) the issuer designates such bond for purposes of this 
     section, and
       ``(4) repayments of principal and applicable interest on 
     financing provided by the issue are used not later than the 
     close of the 3-month period beginning on the date the 
     repayment (or complete repayment) is received--
       ``(A) to redeem bonds which are part of the issue, or
       ``(B) for any qualified purpose.
     For purposes of paragraph (4), the term `applicable interest' 
     means so much of the interest on any loan as exceeds the 
     amount payable at a 1 percent rate.
       ``(b) Qualified Purpose.--For purposes of this section--
       ``(1) In general.--The term `qualified purpose' means the 
     making of grants and low-interest loans for the purpose of 
     placing in service natural gas refueling property at retail 
     motor fuel stations located in the United States.
       ``(2) Limitation on loans.--Such term shall not include--
       ``(A) any loan of more than $200,000 for property located 
     at any one retail motor fuel station, and
       ``(B) any loan for more than 50 percent of the cost of such 
     property and its installation.
       ``(3) Natural gas refueling property.--The term `natural 
     gas refueling property' means qualified clean-fuel refueling 
     property (as defined in section 179A(d)) which is described 
     in section 179A(d)(3) with respect to natural gas fuel.
       ``(4) Low-interest loan.--The term `low-interest loan' 
     means any loan the rate of interest on which does not exceed 
     the applicable Federal rate in effect under section 
     1288(b)(1) determined as of the issuance of the loan.
       ``(c) Limitation on Amount of Bonds Designated.--The 
     maximum aggregate face amount of bonds which may be 
     designated under subsection (a) by any issuer shall not 
     exceed the limitation amount allocated to such issuer under 
     subsection (e).
       ``(d) National Limitation on Amount of Bonds Designated.--
     There is a national energy security bond limitation of 
     $1,750,000,000.
       ``(e) Allocation.--
       ``(1) In general.--The Secretary shall make allocations of 
     the amount of the national energy security bond limitation 
     under subsection (d) among qualified issuers in such manner 
     as the Secretary determines appropriate.
       ``(2) Reservation for property in metropolitan area.--50 
     percent of the national energy security bond limitation under 
     subsection (d) may be allocated only for loans to provide 
     natural gas refueling property located in metropolitan 
     statistical areas (within the meaning of section 
     143(k)(2)(B)).
       ``(3) Percentage of stations receiving loans.--In making 
     allocations under paragraph (1), the Secretary shall attempt 
     to ensure that at least 10 percent of the retail motor fuel 
     stations in the United States received loans from the 
     proceeds of energy security bonds.
       ``(f) Qualified Issuer.--For purposes of this section, the 
     term `qualified issuer' means any State or any political 
     subdivision or instrumentality thereof.
       ``(g) Termination.--This section shall not apply with 
     respect to any bond issued after December 31, 2017.''.
       (b) Coordination With Refueling Property Credit.--
     Subsection (e) of section 30C of such Code is amended by 
     adding at the end the following new paragraph:
       ``(6) Coordination with energy security bonds.--The cost 
     otherwise taken into account under this section with respect 
     to any property shall be reduced by the portion of such cost 
     which is financed by any loan provided from the proceeds of 
     any energy security bond (as defined in section 54E).''.
       (c) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d), as amended by sections 
     806 and 841, is amended by striking ``or'' at the end of 
     subparagraph (B), by adding ``or'' at the end of subparagraph 
     (C), and by inserting after subparagraph (C) the following 
     new subparagraph:
       ``(D) an energy security bond,''.
       (2) Subparagraph (C) of section 54A(d)(2), as amended by 
     sections 806 and 841, is amended by striking ``and'' at the 
     end of clause (ii), by striking the period at the end of 
     clause (iii) and inserting ``and'', and by adding at the end 
     the following new clause:
       ``(iv) in the case of an energy security bond, a purpose 
     specified in section 54E(b).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1, as amended by sections 806 and 
     841, is amended by adding at the end the following new item:

``Sec. 54E. Energy security bonds.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2008.

     SEC. 830. CERTAIN INCOME AND GAINS RELATING TO ALCOHOL FUELS 
                   AND MIXTURES, BIODIESEL FUELS AND MIXTURES, AND 
                   ALTERNATIVE FUELS AND MIXTURES TREATED AS 
                   QUALIFYING INCOME FOR PUBLICLY TRADED 
                   PARTNERSHIPS.

       (a) In General.--Subparagraph (E) of section 7704(d)(1) is 
     amended by inserting ``, or the transportation or storage of 
     any fuel described in subsection (b), (c), (d), or (e) of 
     section 6426, or any alcohol fuel defined in section 
     6426(b)(4)(A) or any biodiesel fuel as defined in section 
     40A(d)(1)'' after ``timber)''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

       Subtitle C--Energy Conservation and Efficiency Provisions

     SEC. 841. QUALIFIED ENERGY CONSERVATION BONDS.

       (a) In General.--Subpart I of part IV of subchapter A of 
     chapter 1, as amended by section 806, is amended by adding at 
     the end the following new section:

     ``SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS.

       ``(a) Qualified Energy Conservation Bond.--For purposes of 
     this subchapter, the term `qualified energy conservation 
     bond' means any bond issued as part of an issue if--
       ``(1) 100 percent of the available project proceeds of such 
     issue are to be used for one or more qualified conservation 
     purposes,
       ``(2) the bond is issued by a State or local government, 
     and
       ``(3) the issuer designates such bond for purposes of this 
     section.
       ``(b) Reduced Credit Amount.--The annual credit determined 
     under section 54A(b) with respect to any qualified energy 
     conservation bond shall be 70 percent of the amount so 
     determined without regard to this subsection.
       ``(c) Limitation on Amount of Bonds Designated.--The 
     maximum aggregate face amount of bonds which may be 
     designated under subsection (a) by any issuer shall not 
     exceed the limitation amount allocated to such issuer under 
     subsection (e).
       ``(d) National Limitation on Amount of Bonds Designated.--
     There is a national qualified energy conservation bond 
     limitation of $2,625,000,000.

[[Page 19265]]

       ``(e) Allocations.--
       ``(1) In general.--The limitation applicable under 
     subsection (d) shall be allocated by the Secretary among the 
     States in proportion to the population of the States.
       ``(2) Allocations to largest local governments.--
       ``(A) In general.--In the case of any State in which there 
     is a large local government, each such local government shall 
     be allocated a portion of such State's allocation which bears 
     the same ratio to the State's allocation (determined without 
     regard to this subparagraph) as the population of such large 
     local government bears to the population of such State.
       ``(B) Allocation of unused limitation to state.--The amount 
     allocated under this subsection to a large local government 
     may be reallocated by such local government to the State in 
     which such local government is located.
       ``(C) Large local government.--For purposes of this 
     section, the term `large local government' means any 
     municipality or county if such municipality or county has a 
     population of 100,000 or more.
       ``(3) Allocation to issuers; restriction on private 
     activity bonds.--Any allocation under this subsection to a 
     State or large local government shall be allocated by such 
     State or large local government to issuers within the State 
     in a manner that results in not less than 70 percent of the 
     allocation to such State or large local government being used 
     to designate bonds which are not private activity bonds.
       ``(f) Qualified Conservation Purpose.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified conservation 
     purpose' means any of the following:
       ``(A) Capital expenditures incurred for purposes of--
       ``(i) reducing energy consumption in publicly-owned 
     buildings by at least 20 percent,
       ``(ii) implementing green community programs,
       ``(iii) rural development involving the production of 
     electricity from renewable energy resources, or
       ``(iv) any qualified facility (as determined under section 
     45(d) without regard to paragraphs (8) and (10) thereof and 
     without regard to any placed in service date).
       ``(B) Expenditures with respect to research facilities, and 
     research grants, to support research in--
       ``(i) development of cellulosic ethanol or other nonfossil 
     fuels,
       ``(ii) technologies for the capture and sequestration of 
     carbon dioxide produced through the use of fossil fuels,
       ``(iii) increasing the efficiency of existing technologies 
     for producing nonfossil fuels,
       ``(iv) automobile battery technologies and other 
     technologies to reduce fossil fuel consumption in 
     transportation, or
       ``(v) technologies to reduce energy use in buildings.
       ``(C) Mass commuting facilities and related facilities that 
     reduce the consumption of energy, including expenditures to 
     reduce pollution from vehicles used for mass commuting.
       ``(D) Demonstration projects designed to promote the 
     commercialization of--
       ``(i) green building technology,
       ``(ii) conversion of agricultural waste for use in the 
     production of fuel or otherwise,
       ``(iii) advanced battery manufacturing technologies,
       ``(iv) technologies to reduce peak use of electricity, or
       ``(v) technologies for the capture and sequestration of 
     carbon dioxide emitted from combusting fossil fuels in order 
     to produce electricity.
       ``(E) Public education campaigns to promote energy 
     efficiency.
       ``(2) Special rules for private activity bonds.--For 
     purposes of this section, in the case of any private activity 
     bond, the term `qualified conservation purposes' shall not 
     include any expenditure which is not a capital expenditure.
       ``(g) Population.--
       ``(1) In general.--The population of any State or local 
     government shall be determined for purposes of this section 
     as provided in section 146(j) for the calendar year which 
     includes the date of the enactment of this section.
       ``(2) Special rule for counties.--In determining the 
     population of any county for purposes of this section, any 
     population of such county which is taken into account in 
     determining the population of any municipality which is a 
     large local government shall not be taken into account in 
     determining the population of such county.
       ``(h) Application to Indian Tribal Governments.--An Indian 
     tribal government shall be treated for purposes of this 
     section in the same manner as a large local government, 
     except that--
       ``(1) an Indian tribal government shall be treated for 
     purposes of subsection (e) as located within a State to the 
     extent of so much of the population of such government as 
     resides within such State, and
       ``(2) any bond issued by an Indian tribal government shall 
     be treated as a qualified energy conservation bond only if 
     issued as part of an issue the available project proceeds of 
     which are used for purposes for which such Indian tribal 
     government could issue bonds to which section 103(a) 
     applies.''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d), as amended by section 
     806, is amended by striking ``or'' at the end of subparagraph 
     (A), by adding ``or'' at the end of subparagraph (B), and by 
     inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) a qualified energy conservation bond,''.
       (2) Subparagraph (C) of section 54A(d)(2), as amended by 
     section 806, is amended by striking ``and'' at the end of 
     clause (i), by striking the period at the end of clause (ii) 
     and inserting ``and'', and by adding at the end the following 
     new clause:
       ``(iii) in the case of a qualified energy conservation 
     bond, a purpose specified in section 54D(a)(1).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1, as amended by section 806, is 
     amended by adding at the end the following new item:

``Sec. 54D. Qualified energy conservation bonds.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 842. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

       (a) Extension of Credit.--Section 25C(g) is amended by 
     striking ``December 31, 2007'' and inserting ``December 31, 
     2008''.
       (b) Qualified Biomass Fuel Property.--
       (1) In general.--Section 25C(d)(3) is amended--
       (A) by striking ``and'' at the end of subparagraph (D),
       (B) by striking the period at the end of subparagraph (E) 
     and inserting ``, and'', and
       (C) by adding at the end the following new subparagraph:
       ``(F) a stove which uses the burning of biomass fuel to 
     heat a dwelling unit located in the United States and used as 
     a residence by the taxpayer, or to heat water for use in such 
     a dwelling unit, and which has a thermal efficiency rating of 
     at least 75 percent.''.
       (2) Biomass fuel.--Section 25C(d) is amended by adding at 
     the end the following new paragraph:
       ``(6) Biomass fuel.--The term `biomass fuel' means any 
     plant-derived fuel available on a renewable or recurring 
     basis, including agricultural crops and trees, wood and wood 
     waste and residues (including wood pellets), plants 
     (including aquatic plants), grasses, residues, and fibers.''.
       (c) Coordination With Credit for Qualified Geothermal Heat 
     Pump Property Expenditures.--
       (1) In general.--Paragraph (3) of section 25C(d), as 
     amended by subsection (b), is amended by striking 
     subparagraph (C) and by redesignating subparagraphs (D), (E), 
     and (F) as subparagraphs (C), (D), and (E), respectively.
       (2) Conforming amendment.--Subparagraph (C) of section 
     25C(d)(2) is amended to read as follows:
       ``(C) Requirements and standards for air conditioners and 
     heat pumps.--The standards and requirements prescribed by the 
     Secretary under subparagraph (B) with respect to the energy 
     efficiency ratio (EER) for central air conditioners and 
     electric heat pumps--
       ``(i) shall require measurements to be based on published 
     data which is tested by manufacturers at 95 degrees 
     Fahrenheit, and
       ``(ii) may be based on the certified data of the Air 
     Conditioning and Refrigeration Institute that are prepared in 
     partnership with the Consortium for Energy Efficiency.''.
       (d) Effective Date.--The amendments made this section shall 
     apply to expenditures made after December 31, 2007.

     SEC. 843. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

       Subsection (h) of section 179D is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2013''.

     SEC. 844. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT 
                   FOR APPLIANCES PRODUCED AFTER 2007.

       (a) In General.--Subsection (b) of section 45M is amended 
     to read as follows:
       ``(b) Applicable Amount.--For purposes of subsection (a)--
       ``(1) Dishwashers.--The applicable amount is--
       ``(A) $45 in the case of a dishwasher which is manufactured 
     in calendar year 2008 or 2009 and which uses no more than 324 
     kilowatt hours per year and 5.8 gallons per cycle, and
       ``(B) $75 in the case of a dishwasher which is manufactured 
     in calendar year 2008, 2009, or 2010 and which uses no more 
     than 307 kilowatt hours per year and 5.0 gallons per cycle 
     (5.5 gallons per cycle for dishwashers designed for greater 
     than 12 place settings).
       ``(2) Clothes washers.--The applicable amount is--
       ``(A) $75 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 which meets or 
     exceeds a 1.72 modified energy factor and does not exceed a 
     8.0 water consumption factor,
       ``(B) $125 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 or 2009 which meets 
     or exceeds a 1.8 modified energy factor and does not exceed a 
     7.5 water consumption factor,
       ``(C) $150 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets

[[Page 19266]]

     or exceeds 2.0 modified energy factor and does not exceed a 
     6.0 water consumption factor, and
       ``(D) $250 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets or exceeds 2.2 modified energy factor and 
     does not exceed a 4.5 water consumption factor.
       ``(3) Refrigerators.--The applicable amount is--
       ``(A) $50 in the case of a refrigerator which is 
     manufactured in calendar year 2008, and consumes at least 20 
     percent but not more than 22.9 percent less kilowatt hours 
     per year than the 2001 energy conservation standards,
       ``(B) $75 in the case of a refrigerator which is 
     manufactured in calendar year 2008 or 2009, and consumes at 
     least 23 percent but no more than 24.9 percent less kilowatt 
     hours per year than the 2001 energy conservation standards,
       ``(C) $100 in the case of a refrigerator which is 
     manufactured in calendar year 2008, 2009, or 2010, and 
     consumes at least 25 percent but not more than 29.9 percent 
     less kilowatt hours per year than the 2001 energy 
     conservation standards, and
       ``(D) $200 in the case of a refrigerator manufactured in 
     calendar year 2008, 2009, or 2010 and which consumes at least 
     30 percent less energy than the 2001 energy conservation 
     standards.''.
       (b) Eligible Production.--
       (1) Similar treatment for all appliances.--Subsection (c) 
     of section 45M is amended--
       (A) by striking paragraph (2),
       (B) by striking ``(1) In general'' and all that follows 
     through ``the eligible'' and inserting ``The eligible'',
       (C) by moving the text of such subsection in line with the 
     subsection heading, and
       (D) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively, and by moving such 
     paragraphs 2 ems to the left.
       (2) Modification of base period.--Paragraph (2) of section 
     45M(c), as amended by paragraph (1), is amended by striking 
     ``3-calendar year'' and inserting ``2-calendar year''.
       (c) Types of Energy Efficient Appliances.--Subsection (d) 
     of section 45M (defining types of energy efficient 
     appliances) is amended to read as follows:
       ``(d) Types of Energy Efficient Appliance.--For purposes of 
     this section, the types of energy efficient appliances are--
       ``(1) dishwashers described in subsection (b)(1),
       ``(2) clothes washers described in subsection (b)(2), and
       ``(3) refrigerators described in subsection (b)(3).''.
       (d) Aggregate Credit Amount Allowed.--
       (1) Increase in limit.--Paragraph (1) of section 45M(e) is 
     amended to read as follows:
       ``(1) Aggregate credit amount allowed.--The aggregate 
     amount of credit allowed under subsection (a) with respect to 
     a taxpayer for any taxable year shall not exceed $75,000,000 
     reduced by the amount of the credit allowed under subsection 
     (a) to the taxpayer (or any predecessor) for all prior 
     taxable years beginning after December 31, 2007.''.
       (2) Exception for certain refrigerator and clothes 
     washers.--Paragraph (2) of section 45M(e) is amended to read 
     as follows:
       ``(2) Amount allowed for certain refrigerators and clothes 
     washers.--Refrigerators described in subsection (b)(3)(D) and 
     clothes washers described in subsection (b)(2)(D) shall not 
     be taken into account under paragraph (1).''.
       (e) Qualified Energy Efficient Appliances.--
       (1) In general.--Paragraph (1) of section 45M(f) (defining 
     qualified energy efficient appliance) is amended to read as 
     follows:
       ``(1) Qualified energy efficient appliance.--The term 
     `qualified energy efficient appliance' means--
       ``(A) any dishwasher described in subsection (b)(1),
       ``(B) any clothes washer described in subsection (b)(2), 
     and
       ``(C) any refrigerator described in subsection (b)(3).''.
       (2) Clothes washer.--Section 45M(f)(3) is amended by 
     inserting ``commercial'' before ``residential'' the second 
     place it appears.
       (3) Top-loading clothes washer.--Subsection (f) of section 
     45M is amended by redesignating paragraphs (4), (5), (6), and 
     (7) as paragraphs (5), (6), (7), and (8), respectively, and 
     by inserting after paragraph (3) the following new paragraph:
       ``(4) Top-loading clothes washer.--The term `top-loading 
     clothes washer' means a clothes washer which has the clothes 
     container compartment access located on the top of the 
     machine and which operates on a vertical axis.''.
       (4) Replacement of energy factor.--Section 45M(f)(6), as 
     redesignated by paragraph (3), is amended to read as follows:
       ``(6) Modified energy factor.--The term `modified energy 
     factor' means the modified energy factor established by the 
     Department of Energy for compliance with the Federal energy 
     conservation standard.''.
       (5) Gallons per cycle; water consumption factor.--Section 
     45M(f), as amended by paragraph (3), is amended by adding at 
     the end the following:
       ``(9) Gallons per cycle.--The term `gallons per cycle' 
     means, with respect to a dishwasher, the amount of water, 
     expressed in gallons, required to complete a normal cycle of 
     a dishwasher.
       ``(10) Water consumption factor.--The term `water 
     consumption factor' means, with respect to a clothes washer, 
     the quotient of the total weighted per-cycle water 
     consumption divided by the cubic foot (or liter) capacity of 
     the clothes washer.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007.

     SEC. 845. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF 
                   SMART METERS AND SMART GRID SYSTEMS.

       (a) In General.--Section 168(e)(3)(D) is amended by 
     striking ``and'' at the end of clause (i), by striking the 
     period at the end of clause (ii) and inserting a comma, and 
     by inserting after clause (ii) the following new clauses:
       ``(iii) any qualified smart electric meter, and
       ``(iv) any qualified smart electric grid system.''.
       (b) Definitions.--Section 168(i) 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.
       ``(19) Qualified smart electric grid systems.--
       ``(A) In general.--The term `qualified smart electric grid 
     system' means any smart grid property used as part of a 
     system for electric distribution grid communications, 
     monitoring, and management placed in service by a taxpayer 
     who is a supplier of electric energy or a provider of 
     electric energy services.
       ``(B) Smart grid property.--For the purposes of 
     subparagraph (A), the term `smart grid property' means 
     electronics and related equipment that is capable of--
       ``(i) sensing, collecting, and monitoring data of or from 
     all portions of a utility's electric distribution grid,
       ``(ii) providing real-time, two-way communications to 
     monitor or manage such grid, and
       ``(iii) providing real time analysis of and event 
     prediction based upon collected data that can be used to 
     improve electric distribution system reliability, quality, 
     and performance.''.
       (c) Continued Application of 150 Percent Declining Balance 
     Method.--Paragraph (2) of section 168(b) 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 
     qualified smart electric grid system, 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.

     SEC. 846. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN 
                   PROJECTS.

       (a) In General.--Paragraph (8) of section 142(l) is amended 
     by striking ``September 30, 2009'' and inserting ``September 
     30, 2012''.
       (b) Treatment of Current Refunding Bonds.--Paragraph (9) of 
     section 142(l) is amended by striking ``October 1, 2009'' and 
     inserting ``October 1, 2012''.
       (c) Accountability.--The second sentence of section 701(d) 
     of the American Jobs Creation Act of 2004 is amended by 
     striking ``issuance,'' and inserting ``issuance of the last 
     issue with respect to such project,''.

                     Subtitle D--Revenue Provisions

     SEC. 851. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
                   PRODUCTS THEREOF.

       (a) Denial of Deduction for Specified Oil Companies for 
     Income Attributable to Domestic Production of Oil, Gas, or 
     Primary Products Thereof.--Subparagraph (B) of section 
     199(c)(4) (relating to exceptions) is amended by striking 
     ``or'' at the end of clause (ii), by striking the period at 
     the end of clause (iii) and inserting ``, or'', and by 
     inserting after clause (iii) the following new clause:
       ``(iv) in the case of any specified oil company (as defined 
     in subsection (d)(9)), the

[[Page 19267]]

     production, refining, processing, transportation, or 
     distribution of oil, gas, or any primary product thereof.''.
       (b) Limitation on Oil Related Qualified Production 
     Activities Income for Taxpayers Other Than Specified Oil 
     Companies.--
       (1) In general.--Section 199(d) is amended by redesignating 
     paragraph (9) as paragraph (10) and by inserting after 
     paragraph (8) the following new paragraph:
       ``(9) Special rule for taxpayers with oil related qualified 
     production activities income.--
       ``(A) In general.--If a taxpayer (other than a specified 
     oil company) has oil related qualified production activities 
     income for any taxable year beginning after 2009, the amount 
     otherwise allowable as a deduction under subsection (a) shall 
     be reduced by 3 percent of the least of--
       ``(i) the oil related qualified production activities 
     income of the taxpayer for the taxable year,
       ``(ii) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(iii) taxable income (determined without regard to this 
     section).
       ``(B) Oil related qualified production activities income.--
     For purposes of this section, the term `oil related qualified 
     production activities income' means for any taxable year the 
     qualified production activities income which is attributable 
     to the production, refining, processing, transportation, or 
     distribution of oil, gas, or any primary product thereof 
     during such taxable year.
       ``(C) Specified oil company.--For purposes of this section, 
     the term `specified oil company' means--
       ``(i) any major integrated oil company (as defined in 
     section 167(h)(5)(B)), and
       ``(ii) any entity in which a foreign government holds 
     (directly or indirectly)--

       ``(I) any interest which (by value or voting interest) is 
     50 percent or more of the total of such interests in such 
     entity, or
       ``(II) any other interest which provides the foreign 
     government with effective control of such entity.

       ``(D) Primary product.--For purposes of this section, the 
     term `primary product' has the same meaning as when used in 
     section 927(a)(2)(C), as in effect before its repeal.''.
       (2) Conforming amendment.--Section 199(d)(2) (relating to 
     application to individuals) is amended by striking 
     ``subsection (a)(1)(B)'' and inserting ``subsections 
     (a)(1)(B) and (d)(9)(A)(iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 852. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND 
                   GAS EXTRACTION INCOME.

       (a) In General.--Paragraph (1) of section 907(c) is amended 
     by redesignating subparagraph (B) as subparagraph (C), by 
     striking ``or'' at the end of subparagraph (A), and by 
     inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) so much of any transportation of such minerals as 
     occurs before the fair market value event, or''.
       (b) Fair Market Value Event.--Subsection (c) of section 907 
     is amended by adding at the end the following new paragraph:
       ``(6) Fair market value event.--For purposes of this 
     section, the term `fair market value event' means, with 
     respect to any mineral, the first point in time at which such 
     mineral--
       ``(A) has a fair market value which can be determined on 
     the basis of a transfer, which is an arm's length 
     transaction, of such mineral from the taxpayer to a person 
     who is not related (within the meaning of section 482) to 
     such taxpayer, or
       ``(B) is at a location at which the fair market value is 
     readily ascertainable by reason of transactions among 
     unrelated third parties with respect to the same mineral 
     (taking into account source, location, quality, and chemical 
     composition).''.
       (c) Special Rule for Certain Petroleum Taxes.--Subsection 
     (c) of section 907, as amended by subsection (b), is amended 
     to by adding at the end the following new paragraph:
       ``(7) Oil and gas taxes.--In the case of any tax imposed by 
     a foreign country which is limited in its application to 
     taxpayers engaged in oil or gas activities--
       ``(A) the term `oil and gas extraction taxes' shall include 
     such tax,
       ``(B) the term `foreign oil and gas extraction income' 
     shall include any taxable income which is taken into account 
     in determining such tax (or is directly attributable to the 
     activity to which such tax relates), and
       ``(C) the term `foreign oil related income' shall not 
     include any taxable income which is treated as foreign oil 
     and gas extraction income under subparagraph (B).''.
       (d) Conforming Amendments.--
       (1) Subparagraph (C) of section 907(c)(1), as redesignated 
     by this section, is amended by inserting ``or used by the 
     taxpayer in the activity described in subparagraph (B)'' 
     before the period at the end.
       (2) Subparagraph (B) of section 907(c)(2) is amended to 
     read as follows:
       ``(B) so much of the transportation of such minerals or 
     primary products as is not taken into account under paragraph 
     (1)(B),''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 853. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       In the case of a corporation--
       (1) to which paragraph (1) of section 401 of the Tax 
     Increase Prevention and Reconciliation Act of 2005 applies, 
     and
       (2) which had any significant income for the preceding 
     taxable year referred to in such paragraph from extraction, 
     production, processing, refining, transportation, 
     distribution, or retail sale, of any fuel or electricity,

     the percentage under subparagraph (C) of such paragraph (as 
     in effect on the date of the enactment of this Act) is 
     increased by 40 percentage points.

  The SPEAKER pro tempore (Mr. Obey). Pursuant to House Resolution 
1433, the gentleman from West Virginia (Mr. Rahall) and the gentleman 
from Alaska (Mr. Young) each will control 90 minutes.
  The Chair recognizes the gentleman from West Virginia.


                             General Leave

  Mr. RAHALL. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks and include 
extraneous material on H.R. 6899.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from West Virginia?
  There was no objection.
  Mr. RAHALL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the pending legislation, H.R. 6899, has as its 
additional cosponsors the gentleman from Texas (Mr. Gene Green), the 
gentleman from California (Mr. George Miller), and the gentleman from 
Michigan, the dean of the House, Mr. John Dingell.
  My colleagues, today we stand at a crossroads, and the two paths 
before us are crystal clear. Those of us supporting the pending 
legislation bring with us the new-age conviction that in order for this 
Nation to be truly secure, we must bridge the gap between our addiction 
to oil, to a future empowered by more secure, safe, and reliable 
sources of power, that we must shatter the shackles of the past and 
remove the bonds that have placed such a burden on the American people 
and on our security as a Nation.
  The other path is less enlightened. It carries with it the belief 
that a subservience to the policies of the past can sustain the country 
in the years and decades ahead. It would sacrifice America's energy 
security on the altar of Big Oil's profits and its profiteering. The 
choice is quite clear.
  Before us today is landmark legislation that would, for the first 
time since 1982, sweep away moratoria precluding oil and gas leasing in 
much of the Federal waters off America's coastlines.
  As a result of the pending measure, roughly 85 percent of all oil on 
the Outer Continental Shelf will be available for production. We are 
opening up to 400 million acres off the Atlantic and Pacific Coasts to 
drilling. We are expanding the availability of oil by at least 2 
billion barrels of oil, enough to power 1 million cars for 60 years.
  But in doing so, we have built in safeguards. I repeat that: we have 
built in safeguards. We do not undermine the defense posture of this 
country and the Defense Department's need to engage in military 
operations in America's waters.
  We protect national marine monuments and sanctuaries, and we provide 
for the consideration of the interests of the coastal marine and human 
environment. And importantly, we are cracking down on the incredible 
failure of the Interior Department to ensure that Americans are getting 
paid a fair rate of return for the production of their, and I emphasize 
their, Federal oil and gas reserves and resources. These reserves are 
not owned by Chevron or Shell or by Exxon; they are owned by all 
Americans. They are owned by all Americans by birthright.
  Yesterday, another former Interior Department official who was in 
charge of collecting Federal oil and gas royalties pleaded guilty to 
rigging bids. Last week reports were released by the Interior 
Department's Inspector General which found ``a culture of ethical 
failure'' in a division of the Minerals Management Service as part of 
what I believe to be a burgeoning scandal. This

[[Page 19268]]

is an agency that is supposed to safeguard one of the largest non-IRS 
streams of revenue to the Treasury. It is almost like Teapot Dome all 
over again.
  At the same time, Government Accountability Office reports were 
released that found that the United States receives one of the smallest 
shares of oil and gas revenue in the world. Think about that. We 
receive one of the smallest shares of oil and gas revenues of any 
country in the world.
  The reports also found that Federal oil and gas leases are not being 
diligently developed. We on this side of the aisle have been saying 
that for months. Production is only occurring on 12 percent of offshore 
leases and 5 percent of onshore leases. And as I have been bringing to 
light through a number of hearings held by the Natural Resources 
Committee, the Interior Department is unable to provide certainty that 
companies are paying the royalties owed to the American people, a 
culture of ethical failure, indeed.
  The legislation before us contains bold initiatives to crack down on 
this legacy of abuse. It would require the diligent development of 
Federal oil and gas leases, require that prompt, transparent and 
accurate royalty payments are made, and would tackle the ethical 
failures occurring at the Interior Department. Leading the vanguard in 
our march to a more energy self-reliant and secure future is this 
legislation's establishment of a strategic energy efficiency and 
renewable reserve.

                              {time}  1700

  This initiative would finance the development of renewable and 
alternative energy technologies, provide increased assistance for low-
income home energy and weatherization programs, and advance carbon 
capture and storage, among other items. And we are dedicating over $6 
billion to this fund over the next 10 years.
  All of the above. All of the above. How often have we heard that in 
this debate? All of the above. It is here my friends: oil, natural gas, 
oil shale, wind, solar, coal energy efficiencies and energy 
conservation.
  As I noted earlier, today we are at a crossroads. The difference is 
clear between those of us supporting this measure and some of those on 
the other side of the aisle who have been trumpeting their bumper 
sticker ``drill here, drill now'' approach to our serious energy 
situation.
  They would open up everything to Big Oil. Perhaps some of them would 
even open up the National Mall if they could to drilling rigs. They 
would give away the store, no accountability, no safeguards, no 
expectation of a return in terms of energy or revenue.
  We, on this side, instead, seek to protect America's interests in 
American resources. Make more Federal oil and gas available to 
drilling? Yes. That's what we're doing in this bill. But we're doing so 
in a manner that safeguards our environment, ensures the diligent 
development of those energy resources, and demands that the American 
taxpayer gets a fair return. Royalties due, royalties paid.
  Mr. Speaker, I reserve the balance of my time.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield myself as much time as I 
may consume.
  Mr. Speaker, and my colleagues, I rise in the strongest possible 
opposition to this ill-conceived, if it was conceived at all, 
legislation.
  I don't know how many of you ever saw the Peter Pan story, the movie, 
or even read it. This is a Peter Pan story. You know, they have the 
imaginary bowls, the bowls that were not imaginary but they were empty, 
and they convinced Peter Pan, Robin Williams, to use his imagination 
and the bowls will be full of food.
  And this is what you're doing today, Mr. Chairman, and the people 
that wrote this bill, who we do not know who did write it. Use your 
imagination. We're going to have the oil for everything because this 
bill produces oil.
  It produces nothing. This is a Peter Pan story. It's a figment of the 
imagination. It is a political gimmick. It is a sham on the American 
people.
  Shame on this House, that the courage wasn't there for the leadership 
to go on both sides of the aisle, listen to those that have some 
expertise in this problem we are facing today, the high cost of energy, 
and work together and pass an energy solution to a problem that 
produces not only fossil fuels but other forms of fuel, that solves the 
problems for the commuter who has to go to work. And Mr. and Mrs. 
Commuter, if you think this bill today that came out of this leadership 
on that side produces one bit of relief to you as you drive to work, 
don't believe it. Go see Peter Pan. That's all this bill is.
  It has nothing in there to produce energy. In fact, it probably will 
drive down the ability to produce energy. It will help foreign 
countries.
  I just heard my chairman talk about Big Oil, how bad Big Oil is, and 
put the blame on Big Oil. Where do you think you're getting your oil 
today as you put it in your tank? From Saudi Arabia, Venezuela, Chavez, 
foreign countries that have control of us right now. We ought to be 
talking about that. Forget talking about Big Oil, because this body, 
and I've said it before on this floor of the House, both sides of the 
aisle have not seized the ability to solve the energy problem by 
developing fossil fuels.
  Coal. There's nothing in this bill about coal to liquification or 
gasification. There's nothing in this bill about nuclear power. There's 
nothing in this bill that produces any energy. In fact, this bill takes 
land that's open now and closes it, and take lands that was closed and 
opens it, but it happens to be 50 miles offshore. Any oil in between 
there can't be developed.
  And by the way, my good friends, if any State contiguous to decides 
not to have it drill 50 miles and out they can say no, and they will 
say no because there's no revenue sharing in this bill. None.
  It is probably the best way to call this bill the Venezuela, Russian, 
Middle East Oil Production Act, because you're protecting the foreign 
countries under this legislation.
  I don't know why I'm getting worked up about it because we all know 
this is a political gimmick. It's never going to go anywhere. It's not 
going to become law. But it will give some people cover to say, I voted 
for more drilling and more production. This bill does not do that.
  It will increase energy costs. And I'm a little concerned on both 
sides of the aisle again because oil has dropped down to $93 a barrel 
today. You know, if that would have happened last year we would have 
said, my God, the world's coming to an end. Oil went to $93. But it was 
$145, and we are being lulled into this type of legislation saying 
we're going to solve the problem and nothing is occurring to solve the 
problems of the American consumer. We're right where we were last year 
and the year before that, and that's wrong.
  It does leave out ANWR. I wasn't going to bring up that, but the 
closest, quickest way to produce a million barrels a day to the United 
States was to open ANWR. No, we left that out. Can't happen. A million 
barrels a day for the next maybe hundred years, for the American 
consumer. Every barrel would have gone to the United States of America. 
A little provision says you can't export any of this oil to overseas. 
We're not exporting oil, we're consuming it. But we're consuming most 
of our oil from overseas, paying the foreign countries the oil prices 
today because you have not come to this floor, not one hearing in our 
committee on this issue.
  This bill was written in the midnight. I shouldn't say the midnight, 
the midnight sun. I would say it was written in the darkness of night. 
And introduced last night, had the rule last night, 500 pages. I have 
read it, and it produces nothing.
  You can get more energy out of this bill, ladies and gentlemen, if 
you take all the copies of the bill and put it in a bonfire. And that 
is not good for this House of this Nation. You had the opportunity.
  Now, I don't understand, really, why anybody would support this 
legislation at all because we're committing something wrong to the 
American people. We had a chance.

[[Page 19269]]

  I see people from oil-producing States over on that side. Why did you 
buy into the concept we wanted to bring a bill to the floor that does 
nothing but say I helped develop more oil when it doesn't do it?
  If you believe that, you would have let us have this bill, 2 weeks, 
3, 4 weeks ago, but you didn't because you know when it finally gets 
out to the public and they start understanding what's occurring, that 
the public will understand, yes, it was a sham.
  And I'm tired of politics on oil in this body. We have a Speaker that 
believes that we have to save the planet because we can't burn any more 
fossil fuel. If that's the case, then let's admit it. I believe this is 
what she believes, and I think that's sad.
  I believe we ought to say, okay, we do have to have fossil fuels and 
we can develop the other forms of energy but it takes time. We need 
that bridge. This bill doesn't do that.
  So we're going to come back here next year, the public will be 
hoodwinked. The public will have high prices again, nothing will be 
done.
  If we're really wise, we'd take this bill today, totally defeat it, 
send it back and work across the aisle for the American people, work 
across the aisle for solutions that would no longer have the yoke not 
of Big Oil around our necks, the yoke of the foreign countries that 
took those billions of dollars. The largest transfer of American wealth 
in history occurred because this body didn't act correctly and did not 
develop the resources so we wouldn't have to transfer that wealth 
overseas, and we did it.
  So we have a responsibility to defeat this legislation. It was 
conceived in the dark. Who the father is, I do not know. But we do know 
it's not legitimate.
  I reserve the balance of my time.
  Mr. RAHALL. Mr. Speaker, I yield myself 1 minute.
  I would note to the gentleman that just spoke, the minority, when 
they were in power, tried very hard writing bills late at night, so 
nothing should surprise them as far as the timing of this bill.
  I yield, Mr. Speaker, 3 minutes to the distinguished gentleman from 
Texas (Mr. Gene Green), a very important champion of this bill and 
cosponsor of the legislation.
  Mr. GENE GREEN of Texas. Mr. Speaker, I rise in strong support of 
H.R. 6899, the Comprehensive American Energy Security and Taxpayer 
Protection Act.
  I don't know why my Republican colleagues can't take yes for an 
answer. We are opening up over 305 million acres. Now, granted, it's a 
compromise. But when you were in charge, we opened up 8 million acres 
in the eastern Gulf of Mexico. I'd like to open up more, but, again, 
like you had to make compromises, we have. But for the first time we're 
going to open up more Outer Continental Shelf opportunity than anytime 
in history, even under years of Republican House control, Senate 
control and the President.
  I support opening ANWR, but that didn't happen even when the 
Republicans were in control.
  The royalty share, I'd love to share royalties with our States who 
allow drilling, but CBO won't let us. Maybe the Senate will bring up 
that point.
  But I don't know why we can't take yes for an answer. If you want to 
drill in our country, this is the bill. Now, if you want a political 
issue that you think you'll ride into the November election on like you 
tried in August, which was more theatrics than anything else then vote 
``no.'' But I'll tell you what, the American people are going to see 
this for what it is. And it's a comprehensive bill that will go 
forward.
  We're going to invest that royalty into renewable energy research. I 
don't think it's economically feasible now, but we need to get there. 
But we're going to produce domestically, and send that message to the 
world which, you know, maybe a bill on the floor has helped us with 
that oil prices going down every day per barrel.
  I want to thank my esteemed colleagues, Chairman Rahall, Chairman 
Miller and Chairman Dingell, as well as Speaker Pelosi and Majority 
Leader Hoyer and the entire Democratic Caucus for working together to 
craft legislation that our majority, our Congress and our country can 
be proud of.
  Now, I know some of my friends in Congress and maybe the energy 
industry and the environmental community may be asking themselves one 
question: ``How in the world can an unholy alliance of Green, Miller 
and Rahall ever come together to introduce a comprehensive energy plan. 
The answer is very simple. America's energy needs demand it. We need to 
do what's environmentally good, but we also need to make sure we can 
keep the prices of our current fuel costs low, and whether it's for 
lighting our homes or cooling or heating our homes or running our 
vehicles or running our industry.
  All sides of this debate can no longer insist my way or the highway 
approach to energy. We need all energy sources, both conventional and 
renewable, and everyone must be willing to sacrifice to reach a common 
good.
  I personally have questions about this, some of the things in this 
bill. But again, this is the first step. Why would you kill it right 
now when we still have to work with the Senate and also get a bill 
passed that the President will sign?
  So this is the first time we're opening this much Outer Continental 
Shelf drilling in the Democratic majority House of Representatives. 
Maybe it's just response to say no to everything that comes up because 
we're doing it many, many times more than what they did when they had 
the majority.
  Our legislation improves on the original H.R. 6 from last year, at 
least freezing independent oil and natural gas producers at their 
current section 199 manufacturing. It removes the arbitrary proposals 
for raising royalty. There was a proposal to go to 21 percent. This 
administration already increased it to 16 percent. But we don't need to 
go to 21. It retains accountability for the tainted royalty in kind 
that I support.
  Mr. Speaker, I will place the remainder of my statement into the 
Record, but let me just say one last thing.
  The SPEAKER pro tempore. The gentleman's time has expired.
  Mr. GENE GREEN of Texas. President Bush waited 7\1/2\ years to 
eliminate the executive moratorium. And the Democratic Congress has 
only taken 1\1/2\ years.
  It improves the management of the Strategic Petroleum Reserve--an 
idea first offered by my good friend from Texas, Nick Lampson--by 
allowing a swap for heavy crude which could immediately lower prices 
for consumers.
  Most dramatically, our proposal will help utilize our own domestic 
oil and natural gas resources in the Outer Continental Shelf.
  Our legislation incorporates many of the offshore drilling provisions 
I and other ``Energy Democrats'' first introduced in the LEASE Act by 
directing the immediate opening of all areas beyond 100 miles off our 
coasts.
  That's over 305 million acres in the OCS that are automatically 
opened for oil and natural gas leasing.
  States are also given discretion to ``opt-in'' to additional drilling 
from 50 to 100 miles off their coasts estimated at an additional 90 
million acres for production.
  My friends from the other side of the aisle will argue this bill does 
not open up enough acreage offshore.
  In some instances, as in the Eastern Gulf of Mexico, I agree.
  But let's not forget one fact: during the height of Republican rule, 
under both a Republican President and Congress, Republicans were only 
able to direct the opening of 8.3 million acres for leasing in the Gulf 
of Mexico. President Bush after almost 7\1/2\ years in office removed 
the Presidential moritorium.
  Today, Democrats are directing the opening of over 305 million acres 
with state concurrence.
  This is hundreds of millions more acres that are directly opened than 
in the Senate's ``Gang of 20'' proposal, or in Senate Republican Leader 
Mitch McConnell's ``Gas Price Reduction Act'', which has the support of 
44 Republican Senators.
  Most importantly, we use the revenues from oil and gas production to 
transition America to a clean energy future.
  Our bill will create a fund to invest in clean renewable energy, 
energy efficiency, the Land and Water Conservation Fund, carbon capture 
sequestration, and the Low-Income Home Energy Assistance Program.
  And we extend many of the critical tax credits for wind, solar, and 
other renewable energy sources that expire this year.

[[Page 19270]]

  While I believe it's also fundamental to allow states to share in any 
offshore revenues, ``pay-go'' rules require any revenue sharing-
provisions to be offset--whether it's included in this legislation or 
any other OCS proposal.
  Mr. Speaker, our legislation isn't perfect. But we cannot make the 
perfect the enemy of the good. Let's pass this bill and for the first 
time a Democratic Congress.
  Our constituents, and our Nation, can no longer wait for Congress to 
act on a balanced energy policy that will provide the conventional 
energy we need to fuel our economy and to develop the clean energy 
sources of tomorrow.
  I urge my colleagues to support the Rahall-Green-Miller legislation, 
and I yield back the balance of my time.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield myself 1 minute.
  Again, I have great respect for my friend from Texas, and I 
understand the pressure he's under.
  But just think for a minute. There's no real offshore exploration in 
their bill. There's no renewables in their bill. There's no oil shale 
in their bill. Of course there's no ANWR in their bill. There's no 
nuclear in their bill. There's no clean coal to coal to liquids in 
their bill. There's no new refinery capacity in their bill.

                              {time}  1715

  There is no electricity price hike control in their bill. And most of 
all, there is no lawsuit reform in their bill.
  This bill is, in fact, a ``no'' bill: no energy, no energy, no 
energy.
  Mr. Speaker, at this time I ask unanimous consent that the gentleman 
from Texas and the ranking Republican on the Energy and Commerce 
Committee be allowed to control 21 minutes of the general debate time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Alaska?
  There was no objection.
  Mr. BARTON of Texas. I would recognize myself, Mr. Speaker, for 3\1/
2\ minutes.
  Members of the House, we have before us a bill that proclaims to be 
one thing but which is, in reality, something entirely different. My 
good friend from Texas, the Honorable Gene Green, whose district has 
just been hit so hard by Hurricane Ike, made the point that under 
Republican majorities we only opened--his term was 8 million acres and 
this bill pretends to open 300 million so it's a better bill.
  Well, I would point out that if we put in the bill that you can drill 
anywhere in the Pacific Ocean beyond 200 miles or anywhere in the 
Atlantic Ocean beyond 200 miles, which is the international limit, that 
we could claim to open up for exploration literally billions of acres.
  The point is we don't have the technology in many cases to utilize 
that. And in any event, there is no prohibition now.
  What we need to do is have an energy development bill for America 
that makes it possible to develop the energy resources where we think 
we have the highest probability of actually finding and developing, in 
an environmentally and economically safe fashion, those resources. This 
bill doesn't do that. It simply doesn't do that.
  I would have liked in prior Congresses when I was chairman of the 
Energy and Commerce Committee or subcommittee chairman of the Energy 
and Air Quality Subcommittee to have opened up more of our domestic 
energy resources. But in those Congresses, we literally didn't have the 
votes. We did have debate on the floor, we had amendments offered, we 
had an open process in committee and on the floor; but in some of those 
cases, we lost those votes.
  This bill, we're not allowed to even have the amendment. I offered a 
number of amendments to the Rules Committee last evening, and they were 
not made in order. This is a closed rule, you know. Why not have this 
as the base text and then have a number of amendments to see what the 
will of the House is? That would be a fair process.
  This is not a fair process.
  When the first title, section 101 of your bill, is a title called 
``Prohibition on Leasing'' and in the very first paragraph, 
notwithstanding any other provision of the Outer Continental Shelf and 
several other laws, no leasing shall be allowed unless expressly 
authorized in this bill itself, that's not a pro-energy development 
bill. That's not a pro-energy development bill.
  So this is a bill that pretends to be one thing, Mr. Speaker, but in 
actuality is something completely different. If we had any kind of a 
regular process where the bill went through the gentleman's committee, 
the Resources Committee and the Ways and Means Committee and the Energy 
and Commerce Committee and the Agriculture Committee and the Science 
Committee so that we had these issues vetted, that would be a different 
thing.
  This is a 290-page bill. Nobody knows what is in the bill in its 
entirety. None of this has been vetted. I think it will come as a 
surprise to some Members of the majority that you have mandatory random 
drug testing in this bill. I don't know that everybody on the majority 
side--I happen to think that's one of the few good things in the bill. 
But it is in the bill. Now, I have participated in floor debates in 
prior Congresses where we tried to do mandatory drug testing, and huge 
majorities of the current majority opposed that.
  So, again, we've got a flawed process; we have a flawed bill. What we 
have is a title that pretends to be one thing and the substance of the 
bill is something else. We should vote this down and go back and have a 
bipartisan process.
  With that, I reserve the balance of my time.
  Mr. RAHALL. Mr. Speaker, I yield myself 1 minute.
  It's interesting to note that the gentleman from Texas has just 
spoken about that we should have a straight up-or-down--or, I'm sorry, 
that we should have amendments, that he's complaining about the closed 
rule as other Members on that side have. Yet their mantra over the last 
several months has been, Let's have a straight up-or-down vote; let's 
have a straight up-or-down vote. I would say that's what we're getting 
to before this evening is over with.
  I would note also the lack of hearings to which we've been charged. 
This energy debate has gone on ad infinitum on numerous pieces of 
legislation, often bills having nothing to do with energy, during 1-
minutes, during Special Orders. Even when the House was not in session, 
the other side had their energy debate.
  So I would say there are various parts of this bill that have passed 
the House before, have been debated on ad infinitum in committees and/
or on this floor. So there is really nothing new in this piece of 
legislation, and it's a piece of legislation that has been debated over 
and over.
  Mr. Speaker, I yield 3 minutes to the distinguished chairman of our 
Education and Labor Committee, the gentleman from California (Mr. 
George Miller), and also a cosponsor of this legislation.
  Mr. GEORGE MILLER of California. I thank the chairman for yielding 
and thank him for bringing this legislation to this floor. I'm honored 
to be a cosponsor of this legislation along with Mr. Rahall and Mr. 
Green.
  I rise in very strong support of this comprehensive, forward-looking 
bill that will provide relief at the pump, create good jobs here in 
America, and finally put our Nation on a path toward a clean and more 
independent energy future. Surely that is something that we could all 
support.
  Americans understand the problem. Our Nation is addicted to oil. 
Consumers are paying record prices to heat and cool their homes and to 
drive their cars and trucks. Global warming is real; it's serious and a 
growing problem. Meanwhile, oil companies are making more money than 
ever before. That's why Democrats made energy a top priority when we 
took back the House and Senate last year.
  We raised auto fuel economy standards for the first time in a 
generation, overcoming the objections of the auto and oil industries 
and the Republicans in Congress and the White House. And we passed one 
bill after another to improve America's energy policy to expand wind, 
solar, and other renewable

[[Page 19271]]

energy sources, to increase the efficiency and conservation, to curb 
speculation and energy markets, and to release oil from the Strategic 
Petroleum Reserve, and to recoup tens of billions of dollars that oil 
companies have unfairly taken from the taxpayers as they've exploited 
the taxpayers' resources on our public lands.
  Every bill we passed was opposed by a majority of the Republicans in 
Congress and by President Bush. And at the end of all of their 
objections, gas rose to $4 a gallon. Think how different this debate 
would have been if in the previous decade when the Republicans 
controlled this House and the 8 years when they controlled the White 
House and the Congress if they had pushed forward on energy in those 
days. Think how different the automobile industry would have been today 
had they not caved in to the oil industry and the auto industries and 
moved those standards. But no, it took 30 years, and we did it in this 
Congress with the Democratic leadership.
  Think how different this discussion would be on renewables and 
alternatives if the Republicans had chosen that. But no. Every time 
they brought an energy bill to the floor, they looked to the past. They 
said that we could drill our way out of this problem, we're just 
another drop of oil away from the problem. And at the end of that 
decade, we ended up more dependent upon foreign oil than at any other 
time in our history.
  So that's why we're here today. We're here to help consumers, to 
drive down the price of energy, to expand the energy resources in this 
Nation that are available to all consumers all across the country, and 
to create good American jobs in the process of doing that and to put us 
on that path to energy independence and to greater diversity in our 
sources of energy.
  We are not going to succumb to the old interests that tell us we have 
to continue to give away the public's resources and not provide the 
royalties that the public is entitled to, that the public, with all due 
respect, in most every other nation in the world gets when they give 
their resources to be exploited.
  We're going to stop the days of the royalty holidays, royalty 
holidays for oil companies that are making record profits because of 
their record ingenuity and their skill and their talent. But the fact 
of the matter is there is no royalty holiday for the ratepayers, for 
the people paying at the pump, for people trying to heat and cool their 
homes. And that's why this legislation must pass because this 
legislation speaks to the future, to a sustainable and renewable energy 
policy for this country for the first time in over a decade.
  Mr. BARTON of Texas. Mr. Speaker, I want to yield 2 minutes to a 
member of the Energy and Commerce Committee, Congresswoman Blackburn of 
Tennessee.
  Mrs. BLACKBURN. Mr. Speaker, I thank the gentleman from Texas for 
yielding the time.
  You know, this has been such an interesting discussion that we have 
carried forth on this bill. It has lasted for weeks. And finally the 
majority decides they're going to do something about it. But you know, 
it really is a bait-and-switch-type issue with the American people 
because the American people are for drilling on American soil for 
American energy resources because they want to move to energy 
independence. They want to lower the price at the pump. And the bill 
that we have in front of us is not going to do that.
  Indeed, Mr. Speaker, if you get into section 101 of this bill, what 
is it that you find right out of the gate, right from the start, what 
is it that the majority wants to do? And now bear in mind this bill 
never came to the Energy and Commerce Committee. It didn't go to the 
Energy Subcommittee. The 290 pages of this bill was dropped in the dark 
of night last night and brought to the floor today.
  But in section 101 of the bill, what do you have? Putting permanently 
off-limits some of the richest reserve areas in the Outer Continental 
Shelf.
  So it's like that situation where you want to give a little and take 
a lot, which is not appropriate when we have the price of gas in our 
States at all-time record highs today.
  Other things that it does not do is to address renewables without tax 
hikes. If you want renewables, run the taxes up, is what the majority 
says, what the Democrats say. Oil shale exploration? Not going to do 
that. Arctic coastal plain, ANWR? Not going to do that.
  If you want nuclear--in TVA and Tennessee, we're looking at a 20 
percent electric rate hike. But this bill would make it more difficult 
for expanding nuclear. There's nothing in there for emission-free 
nuclear. And we know that our rates are going up 20 percent. We know 
that moving from hydroelectric to nuclear is an imperative for us.
  I encourage my colleagues to vote this bill down and vote for the 
American Energy Act, all-of-the-above.
  Mr. RAHALL. Mr. Speaker, I yield 4 minutes to the distinguished 
chairman of our Subcommittee on Energy and Mineral Resources, an 
individual who's helped us a great deal in the drafting of this 
legislation, the gentleman from California (Mr. Costa).
  Mr. COSTA. Mr. Speaker, I want to thank Chairman Rahall, Chairman 
Miller, and Chairman Green for all their hard work and their continuous 
efforts to try to ensure that we deal with America's energy crisis 
today.
  I rise in support of the passage of H.R. 6899, but I view this bill 
as a work in progress. Obviously it's not in its final form. The Senate 
needs to vet its efforts, and the President needs to weigh in, and 
therefore it needs more work, in my opinion.
  I do appreciate, though, the Speaker's efforts on this bill. And I do 
hope to continue to support her efforts as we look at the compromise, 
the bipartisan compromise, that will continue to improve this measure.
  In its current form, however, it doesn't provide some of the 
comprehensive efforts and solutions that existed in the measure that 
Congressmen Abercrombie, Peterson, and others worked on in a bipartisan 
effort; and I want to thank them, Representatives Abercrombie and 
Peterson, for their hard work. Six weeks we worked in June and in July 
to form the bipartisan compromise effort otherwise known as the 
National Conservation Environment and Energy Independence Act, H.R. 
6709.

                              {time}  1730

  The differences between that effort and this are the following:
  First, the bill prohibits drilling within 50 miles of the coast, 
which, in my opinion, puts a lot of our most promising areas off-limits 
in terms of the Outer Continental Shelf.
  Second, by not allowing revenue sharing with States, as we do with 
Texas, Louisiana and Mississippi, I think it makes it less likely that 
States will opt in to leasing, even between the 50 and 100 miles.
  Third, the bill doesn't directly tie the new royalties generated to 
funding for renewables and energy efficiency. So it doesn't provide the 
same benefits that we have in H.R. 6709, although there are some PAYGO 
issues there. I think they are workable. I think we can get this 
measure out. I think we can work with them in the Senate.
  The bottom line is that we need to use all the energy tools in our 
energy toolbox. That includes both coal sequestration, as well as new 
advances in nuclear power that doesn't put it in Nevada.
  We talk a lot about the urge to put an Apollo-like program together. 
We do. We do need to do that in a bipartisan effort. But sometimes 
people forget that in the Apollo program, we had the Mercury program so 
that men could go into space. We had the Gemini project that showed 
that you could dock and you could spacewalk before we got to Apollo.
  The goal is to reduce our dependency on fossil fuels, reduce our 
dependency on foreign sources of energy. We can't get there overnight. 
We need to have this Apollo-like program that uses our current energy 
resources here in America to finance the renewables that will bridge 
the gap. That's what we need to do.
  It's my hope that the provisions of our previous measure can be 
incorporated into this bill as we work

[[Page 19272]]

through the legislative process, as we should do. But I think it's a 
step in the right direction, this measure. We need to move forward to 
take a closer look at how we come together in a bipartisan effort in 
that comprehensive energy package. The American public demands that we 
do this. Our economy requires that we do this.
  We are going to have a transfer of $750 million in wealth this year 
just to pay for our energy price tag. For all those reasons, I urge my 
colleagues to vote for this measure, even though you don't like some of 
the elements in this measure, as I don't believe some of the elements 
in this measure are pointed toward that comprehensive effort.
  But I want to commend my colleagues, Chairman Rahall, Chairman Miller 
and Chairman Green, for their willingness to compromise. I want to 
continue my efforts across the aisle with Congressman Peterson and 
others who are part of that bipartisan effort. That's what we need to 
do, that's what the American public expects, and that's why I'm voting 
for this measure.
  I thank the chairman.
  Mr. BARTON of Texas. Mr. Speaker, I yield 1 minute to the gentleman 
from Oklahoma (Mr. Lucas).
  Mr. LUCAS. Mr. Speaker, I come before you today to address the 
majority's so-called energy package. I find the name odd, considering 
it contains almost no energy provisions. Instead, it serves as 
political cover, an empty offering to the American people before the 
November elections. After all, it contains no language to build new 
nuclear power plants or oil refineries. And while it claims to allow 
offshore drilling, it actually keeps 88 percent of offshore oil 
reserves under lock and key.
  The American people want real action and meaningful solutions that 
include an increase in American-produced energy. The American Energy 
Act, on the other hand, will open all of our vast natural resources, 
allowing oil exploration offshore and in ANWR. It assists in the 
building of new oil refineries and nuclear power plants, and extends 
the tax credits to encourage more investment and research into wind and 
solar energy.
  This is the all-of-the-above energy solution that the American people 
have been asking for. I implore my colleagues to listen to the American 
people. Bring the real energy bill to the floor for a vote.
  Mr. RAHALL. Mr. Speaker, I am very honored to yield 1 minute to the 
distinguished dean of the House and cosponsor of the pending 
legislation and chairman of our Energy and Commerce Committee, Mr. 
Dingell of Michigan.
  Mr. DINGELL. Mr. Speaker, I rise in support of the legislation. I 
rise to commend and express my great respect for the distinguished 
gentleman from West Virginia (Mr. Rahall), chairman of the Committee on 
Natural Resources, and also to my colleague Mr. Green, a valuable 
member of the Committee on Energy and Commerce.
  They, working with the Speaker, have come forward with a good bill, 
one which is going to move this country forward in terms of reducing 
our dependency on foreign oil and increasing our utilization and 
development of more of our own domestic natural resources.
  This bill achieves the delicate balance between the need for 
increased production, aggressive conservation, and a greater use of 
renewable energy, a path that this Congress has established in last 
year's energy bill, and as I would note for my colleagues, we will be 
in business again next year. Last year, we did something. The year 
before, in the prior Congress under the leadership of my Republican 
colleagues, we passed legislation which also increased production. Next 
year, I assure you that when we confront the business of this Congress 
in the new Congress, we will again move forward on legislation. This is 
not a static matter. It is something which goes forward in an 
intelligent process, thoughtfully led by people like my good friend 
from West Virginia (Mr. Rahall).
  Again, I commend my colleagues who have worked on this legislation. I 
recognize that it has more to be done, but there's always business to 
be done around this place.
  I urge the adoption, and again, I commend my friend Mr. Rahall and 
his colleagues on the committee for the superb job they have done on 
this legislation working with our distinguished Speaker.
  Mr. BARTON of Texas. Mr. Speaker, I yield 2 minutes to a member of 
the Energy and Commerce Committee, Mr. Murphy of Pennsylvania.
  Mr. TIM MURPHY of Pennsylvania. Mr. Speaker, the American public 
wants real solutions to this energy crisis. Unfortunately, what we're 
voting on today is not a real solution. It's a no drill bill.
  Our country's security is threatened in four ways. One is family 
security. With the price of natural gas and food on the increase, 
families can't afford the next loaf of bread, the next gallon of milk, 
the next tank of gas or the heating bill for their homes.
  Two, job security. As we continue to rely on OPEC countries for oil, 
we are refusing to create jobs here. Consider this: One oil refinery 
during construction would be 8,000 jobs and then another 1,800 during 
its use. Oil and natural gas exploration employs nearly 386,000 
workers. We could double or triple this number if we drill for more 
oil. Indirect incomes in other industries resulting from this gas 
activity can support another 4 million jobs, and this bill cuts out our 
vast coal supplies and the jobs from clean coal energy and coal-to-
liquid.
  Three, our economic security is also threatened. As we rely on OPEC 
countries, other nations in the Mideast get rich off our dollars. Our 
national debt continues to rise and our dollar falls. OPEC buys our 
national debt, buys our businesses, and our trade deficit with energy 
gets worse.
  Fourth, our national security. Many of these oil producing countries 
are threatening the United States. Iran uses oil money to fund missiles 
and nuclear weapons and supplies bombs to attack our troops. Russia 
invades Georgia, threatens the Ukraine, threatens Poland, and sends 
bombers to Venezuela.
  We must drill for our own abundant oil as a means to end our 
dependence on foreign oil, but this bill cuts off 90 percent of U.S. 
oil off our coasts, which means we cannot use that energy to help our 
country.
  Americans understand: We cannot tax away the independence. We cannot 
cut off our energy as a way to independence. We can and should use our 
oil, use our coal, use our nuclear energy, use our innovation and use 
conservation to be energy independent. That comprehensive solution is 
what we have to have. That's not what we have yet.
  Mr. RAHALL. Mr. Speaker, I yield myself 30 seconds.
  I'm glad the gentleman from Alaska has returned to the floor and 
reclaimed managing on his part. I hope he's been back in the cloakroom 
speaking to his Governor, Sarah Palin, and urging her to speak with his 
Presidential nominee, John McCain, in regard to opening up ANWR, since 
the gentleman is so anxious to open up ANWR. I would note that his 
Presidential nominee is opposed opening ANWR as well.
  This legislation, however, increases domestic oil production in 
Alaska by mandating annual lease sales in the National Petroleum 
Reserve which has more than 10 billion barrels of oil, more oil than 
the Arctic Wildlife Refuge.
  Mr. Speaker, it's my honor to yield 4 minutes to a very distinguished 
member of our Committee on Natural Resources, the gentleman from 
Oklahoma (Mr. Boren).
  The SPEAKER pro tempore. The gentleman from Okmulgee is recognized 
for 4 minutes.
  Mr. BOREN. Thank you, Mr. Speaker. We're proud that you were born in 
Okmulgee, Oklahoma.
  Mr. Speaker, I rise today to join my colleagues in support of the 
Comprehensive American Energy Security and Consumer Protection Act. 
That's a long name. This legislation represents an investment in 
America's future that will reduce our dependence on foreign oil, 
develop our domestic energy resources, and lower energy costs for 
American families.
  There are several reasons to support this bill. However, the most 
important

[[Page 19273]]

one is that it expands the use of natural gas as a reliable energy 
resource for the future.
  Natural gas is clean, it is efficient, it is less expensive, and as 
recent studies have shown, available in abundant supplies. The natural 
gas provisions in this bill greatly expand our Nation's domestic gas 
infrastructure by providing tax incentives for consumers to install 
natural gas refueling stations in their homes and creating more natural 
gas pumps at gas stations across the United States.
  In my home State of Oklahoma, we have a long and proud legacy of 
leadership in providing our Nation with reliable energy. The energy 
industry in Oklahoma is one of the largest private employers in my 
State, providing economic opportunity to Oklahomans and a sense of 
purpose in helping our Nation meet its energy needs.
  In my congressional district, we have seen counties where 
unemployment rates stood between 10 and 15 percent year after year, now 
are reporting rates below 2 percent because of the energy industry. 
That is the type of economic prosperity that the natural gas provisions 
in this bill could bring to many other places across the United States.
  It's been said that natural gas is the bridge that will allow us--and 
you see this in the Boone Pickens ads--that will allow us to reach 
domestic energy independence and a future of renewable energy. Mr. 
Speaker, the natural gas provisions in this legislation will build that 
bridge.
  It's been an honor to work closely with my friend and colleague 
Representative Rahm Emanuel to make sure that the provisions of our 
natural gas vehicle bill were included in this legislation.
  In addition to natural gas, I'm also supportive of the expansion of 
coastal drilling. It is another critical step toward reducing our 
dependence on foreign oil and ultimately lowering gas prices.
  I have long supported expanded offshore drilling, as well as drilling 
in ANWR and everywhere else domestic energy can be found. It is my hope 
that as we move forward we can work together to increase domestic 
drilling opportunities in future legislation.
  While I support this bill before us today, I do have concerns about 
several provisions, including the repeal of important energy tax 
incentives, the increase of royalty fees, as well as the so-called use-
it-or-lose-it requirement.
  I also feel that the renewable electricity standard included in this 
bill could very well be an unrealistic mandate as it is written 
currently.
  I look forward to working with my fellow colleagues to address these 
concerns in the future, but at the end of the day, I support this 
legislation because it represents a critical turning point in our 
Nation's energy future. Today is the day we begin to open our domestic 
drilling opportunities. It is a day when we created a new market for 
the benefits of natural gas and a day when we began to take action 
towards securing our energy independence.
  Rather than viewing oil and gas companies as enemies as a lot of 
people on my side of the aisle do, I think they are for American 
progress. We must instead view them as partners in the effort to 
provide innovative solutions that we need.
  The contents of this bill were written in the spirit of compromise, 
and I commend my fellow colleagues on both sides of the aisle that have 
dedicated their efforts to increase energy supplies in this country.
  For these reasons, Mr. Speaker, I encourage my colleagues to support 
the final passage of this legislation.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield myself 30 seconds.
  The gentleman from West Virginia was giving a history lesson a moment 
ago. We passed ANWR on this House 10 times, never got out of the 
Democrat Senate side because of filibuster, and Bill Clinton vetoed it. 
And my candidate has sort of changed his mind with his new Vice 
Presidential candidate, who is going to be the next Vice President of 
the United States, who strongly supports drilling in ANWR.
  I am convinced with her great personality and her knowledge, she will 
be able to convince him the right way, more than we do Mr. Obama.
  I reserve the balance of my time.
  Mr. BARTON of Texas. Mr. Speaker, I yield 2 minutes to the gentleman 
from California (Mr. Radanovich).
  Mr. RADANOVICH. Mr. Speaker, I want to thank the ranking member from 
the Energy and Commerce Committee.
  When President Bush lifted the Presidential moratorium on offshore 
oil drilling, the price of oil dropped $12 a barrel immediately and 
began falling ever since.
  I have said many times over our summer recess that if Congress passes 
an energy bill that increases the production of domestic energy, the 
markets will react with lower prices.

                              {time}  1745

  That is the litmus test that Congress should use to determine whether 
we are delivering what the American people want, which is lower gas 
prices.
  The Democrat energy bill will be received with a resounding thud on 
the world markets. It won't move the price of gas one cent because it 
provides no incentive for States to increase production offshore. 
Unlike the comprehensive American Energy Act, the bill that we are 
voting on today does not address oil shale production, lawsuit reform, 
environmental ESA reform, streamlining nuclear energy processes, coal-
to-liquid technology, increasing refinery capacity, or opening ANWR. 
However, the bill does include a drawdown of our Strategic Petroleum 
Reserve, the fraudulent use-it-or-use-it legislation, and the extremely 
costly renewable energy mandate.
  Over the next 20 years, U.S. oil consumption is projected to grow 
even after factoring in a projected 26 percent increase in renewable 
energy supply and 29 percent increase in efficiency. Unless we look for 
and develop new U.S. reserves, reliance on foreign sources of oil--
already over 60 percent--will continue to rise. OPEC will continue to 
manipulate production levels and prices.
  Ladies and gentlemen, it's time to support the American Energy Act.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the distinguished 
gentlelady from Pennsylvania, a member of the Ways and Means Committee, 
Ms. Schwartz.
  Ms. SCHWARTZ. Mr. Speaker, I rise in support of the Comprehensive 
American Energy Security and Consumer Protection Act.
  The United States consumes 25 percent of the world's oil, yet only 
holds 2 percent of the world's oil reserve. The fact is that we cannot 
simply drill our way out of this energy crisis, but that's exactly what 
Republicans would lead you to believe, that drilling is the answer. But 
it is simply shortsighted, misleading, and wrong.
  We can drill responsibly, but lower gas prices and energy 
independence require immediate and significant investments in American 
innovation in alternative fuels, investments in renewable energy 
technology, and in energy efficiency.
  The Republicans say that they want an all-of-the-above plan. Well, 
that's exactly what we have before us today. This proposal is a 21st-
century energy plan that spurs innovation, puts the Nation on a path to 
energy independence, and lowers gas prices for American families and 
American businesses.
  It will expand renewable energy production and improve energy 
efficiency through $18 billion in tax incentives paid for by repealing 
subsidies to the oil industry. It will promote conservation by 
encouraging the construction of commercial buildings that are 50 
percent more energy efficient. It will increase domestic production of 
traditional energy sources by allowing new offshore drilling. And it 
will create hundreds of thousands of new high-quality, good-paying 
American jobs.
  This plan is a stark contrast to the Republicans' drill-only mantra. 
If my colleagues on the other side of the aisle want to vote for an 
all-of-the-above approach, this is their chance. Vote for a uniquely 
American solution to our security and to America's energy future.
  Mr. BARTON of Texas. Mr. Speaker, may I inquire as to how much time I 
have remaining.

[[Page 19274]]

  The SPEAKER pro tempore. The gentleman from Texas has 11 minutes 
remaining. The gentleman from Alaska, 60\1/2\; 64\1/2\ for the 
gentleman from West Virginia.
  Mr. BARTON of Texas. Mr. Speaker, at this time, I would like to 
reserve the balance of my time and yield back control of the Republican 
time to the distinguished ranking member of the Resources Committee, 
Mr. Young.
  Mr. YOUNG of Alaska. Mr. Speaker, at this time, I yield 2 minutes to 
the gentleman from Alabama (Mr. Bachus).
  Mr. BACHUS. Mr. Speaker, this is a gas receipt. All of us have seen 
our constituents give us these gas receipts. This is for $89. It's what 
Boone Pickens says is the largest transfer of wealth in the history of 
the world.
  Now I'm going to show you where that money is going. A lot of it is 
going to Dubai. Dubai, they're our allies. If you had gone to Dubai 
before the cost of gasoline went up, you would have seen this picture. 
This is the main street in Dubai, a dirt road; and the only thing 
higher than two stories was a mosque.
  Now let me show you Dubai today. That's where the infrastructure is 
being built. It's not in the United States. There are more construction 
cranes in Dubai than there are in the United States, 25 percent of them 
in the world.
  Now here's my point: Do you know what Dubai is doing? Do you know 
what Abu Dhabi--do you know what the United Emirates are doing at this 
very moment? They are building or plan to build 14 nuclear power 
plants. They're building nuclear power plants. They're going to 
generate their electricity exclusively from nuclear power. Why? Because 
we don't get it; they get it. They're going to sell oil to us because 
we're not going to develop nuclear power. China is building 30. India 
is building 17.
  This bill doesn't get it. Senator Obama, Senator Biden, they're 
opposed to nuclear power. They're not doing what the oil-rich Arabs are 
doing. Thank goodness Senator McCain and Governor Palin, they get it. 
The Republicans get it. This bill has no nuclear power in it. This bill 
is not going to stop the largest transfer of wealth in the history of 
the world. You can't do it without nuclear power.
  Let's come back with a real energy solution. And I say to my friends 
on the other side of the aisle, your bill doesn't get it. Dubai and Abu 
Dhabi will continue to build their nuclear power plants; we will build 
none.
  And energy is the number one factor in manufacturing. We're going to 
lose our manufacturing. They're going to get it because they get it and 
you don't.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the distinguished 
gentlelady from Nevada, Ms. Shelley Berkley.
  Ms. BERKLEY. Before I give my prepared remarks, I'd like to say that 
one of the reasons that I am so supportive of the Democratic proposal 
is because it does not have nuclear energy reliance which has a nuclear 
waste problem that no one has been able to solve.
  Mr. Speaker, I rise today in support of this important legislation 
which will help our Nation move towards a cleaner, more sustainable 
energy future.
  This bill provides necessary tax incentives for electricity produced 
from renewable resources, including wind, solar and geothermal. These 
incentives will provide badly needed assistance to clean renewable 
energy companies in my home State of Nevada and throughout the country 
that are working to diversify our Nation's energy portfolio and clean 
up our environment.
  Power from the sun and wind and geothermal are unlimited. And these 
entrepreneurs are ready to build and expand our renewable energy 
resources as soon as we in Congress give them the tools they need to 
move forward.
  Energy independence is not just an environmental issue or an economic 
issue, it's a national security imperative. We pay exorbitant prices 
for oil from countries like Venezuela and Saudi Arabia, who support and 
finance terrorism and terrorist attacks on America and our allies. We 
must stop funding both sides of this war on terror. By encouraging the 
development of renewable energy and energy independence, this bill 
helps move this country in the right direction.
  Our Nation has only 3 percent of the world's oil reserves, and yet 
our energy future is being held up on the fantasy that we can drill our 
way out of our energy problems.
  Mr. Speaker, we need to move ahead and grow our clean energy 
resources instead of relying on old 20th-century technologies like 
nuclear, that is not clean or safe or inexpensive, or industries like 
oil that pollute our air and contribute to global warming to satisfy 
our Nation's energy needs.
  Let's invest in our energy future by supporting this good piece of 
legislation.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield 2 minutes to the gentlelady 
from Illinois (Mrs. Biggert).
  Mrs. BIGGERT. I thank the gentleman for yielding.
  Mr. Speaker, I rise today to address the false choice being offered 
to America on the House floor today.
  Despite months of pleas from the American people, the Democrat 
leadership of this House is still trying to dodge the issue of real 
energy reform.
  We can't expect this country to break its addiction to foreign oil if 
we continue to address only half the problem. But that's exactly what 
this bill does. It includes numerous provisions aimed at boosting 
conservation. I support them. In fact, I'm the lead Republican 
cosponsor on a bill that closely mirrors a section of this legislation 
dealing with clean buildings. I'm also a strong supporter of the 
development and deployment of renewable and alternative energy 
technologies like hydrogen, cellulosic ethanol, geothermal, solar and 
wind. But to call this bill we're considering today a comprehensive 
energy solution is just plain wrong.
  Some on the other side of the aisle would have us believe that this 
bill will open new areas of the Outer Continental Shelf to offshore 
exploration. Instead, it discourages States from allowing drilling off 
their shores. By not allowing States to share in the royalties from 
offshore oil and natural gas exploration, we virtually guarantee that 
no State would permit production off its coast.
  In addition, it includes no new refinery capacity, no clean coal, and 
zero nuclear energy. In my home State of Illinois, we rely on nuclear 
power for 50 percent of our energy needs. It's safe, carbon-free, and 
could provide sustainable domestic energy for decades to come. 
Scientists at our national labs have developed new reprocessing 
technologies that will allow us to reburn spent nuclear fuel, vastly 
reducing the toxicity and the volume of waste. With this new process, 
we can solve the waste problem.
  Does anything in this bill take advantage of the advances we have 
made in nuclear power? No. Instead, the bill includes a renewable 
energy mandate that will raise energy costs for consumers who live in 
States like Illinois that rely heavily on clean nuclear power.
  Mr. Speaker, we can do better. Let's work together on the all-of-the-
above energy package that embraces long-term energy solutions while 
also boosting production and conservation to provide near-term relief 
at the pump.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the distinguished 
gentlelady from California, Ms. Anna Eshoo.
  Ms. ESHOO. I thank the distinguished chairman of the committee.
  Mr. Speaker, I rise today in support of H.R. 6899, the Comprehensive 
American Energy Security and Consumer Protection Act of 2008.
  As the title of the bill makes clear, there is no greater threat to 
our economic or our national security than our dependence on fossil 
fuels. Our Nation is acknowledging something, and that is that we have 
an addiction to oil and that we are so totally dependent upon it. And 
who benefits from this addiction? Iran, Venezuela, Russia, rogue 
regimes. And they are all getting rich off our reliance on a 19th-
century energy source. Today, we have an opportunity to strike a blow 
to some of the

[[Page 19275]]

most dangerous regimes and promote American economic and American 
national security. And that's what this bill represents.
  The simplistic and unconditional ``drill here, drill now'' rhetoric 
is not a real response to these challenges. It really falls short of 
what some of the great leaders of our Nation put forward at another 
time during the history of our country.
  We have to lift ourselves up to end this dangerous addiction by 
developing renewable energy sources and become energy efficient. Solar 
panels, electric cars, fuel cells, efficient data centers and green 
buildings are all being developed by innovators in my congressional 
district in Silicon Valley. With these technologies, we can export 
energy to the world instead of being an importer of fossil fuels.
  This bill is fully paid for--and I think my Republican friends need 
to listen up to this--by rolling back needless subsidies to the oil 
companies, and will develop a renewable energy industry, will create 
American jobs, will increase production, and will motivate investments 
in renewable energy through tax credits.
  Oil is a necessary source in the near term, and the bill provides for 
responsible drilling. I think we need to protect our precious coastal 
regions. And with the offshore oil drilling moratorium expiring in a 
few weeks, our coast will be open to new leases.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. RAHALL. I yield the gentlelady an additional 30 seconds.
  Ms. ESHOO. No one wants oil rigs sitting three miles off our coasts; 
my constituents don't, maybe some others do. But that's why this bill 
protects 50 miles off of all of our coasts and gives the States the 
right to review to opt in or not.
  This bill is all about the future. Some, placing our country at risk, 
will choose the past, to stay with the past and to remain addicted.
  This bill is a pathway to the future. I'm proud to support it, and I 
urge my colleagues to do the same.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore. The Chair would remind Members not to 
traffic the well while another Member is under recognition.

                              {time}  1800

  Mr. SALI. I yield 2 minutes to the gentleman from Indiana (Mr. 
Burton).
  Mr. BURTON of Indiana. Mr. Speaker, this bill is all about the 
future. It's about protecting the Democrat incumbents to make sure they 
get reelected. This should be called ``The Protect Congressmen and 
Congresswomen Bill.'' We're bringing this bill to the floor at the 11th 
hour just before we adjourn for this year, unless we have a special 
session. They know full well this bill is not going to get through the 
Senate. So we're not doing anything. This is window dressing.
  We have a severe problem in this country, and they're doing nothing 
but creating a facade so the American people will think they're doing 
something when they're not. This bill will not do anything to help 
people with the price they are paying for food, gasoline, clothes or 
anything else that is transported by diesel or gasoline. It's not going 
to do anything because it's not going to go anywhere.
  In addition to that, this bill has no nuclear, no clean coal, no 
refineries and no revenue sharing with the States. So if a State says 
they want to drill off the coast 50 or 100 miles, which is a long way 
and it's going to be really deep, they are not going to do it unless 
they're going to get something back, some revenue back. Why else would 
they do it? So this bill is really a facade because it's not going to 
encourage the States to allow drilling off their coast because they 
don't get anything for it. This bill increases taxes on the oil 
companies. It's going to discourage further exploration and further 
drilling.
  This bill is something that the American people ought to know is a 
fraud. It is not going anywhere. It's not going to solve the gasoline 
crisis problem. It's not going to solve the energy problem. But it's 
going to help reelect some of the Democrats because they have heard 
from their constituents when they went home, you have to do something 
about the energy problem. You have to drill here in America. You have 
to pass a bill. So they're going to pass a bill. But this bill is not 
going to do anything. It's going to accomplish nothing. It's not going 
to get through the Senate. And we're going to be in the same situation 
6 months from now because they will not move a real energy bill.
  There was a bipartisan bill that Mr. Abercrombie of Hawaii and Mr. 
Peterson of Pennsylvania sponsored. I was a cosponsor of that bill. It 
had all kinds of compromises in it. But it dealt with the energy 
crisis. They don't want that bill. The Speaker doesn't want that bill. 
And they're not going to do a darn thing, and the American people ought 
to know.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Oregon, a valued member of our Committee on Natural Resources, Mr. 
DeFazio.
  Mr. DeFAZIO. I thank the gentleman.
  The oil and gas industry contributed $166 million to the Republicans 
since 1990, 75 percent of their political contributions. Fact: When 
President Bush took office, gas cost $1.47 a gallon. Today gas costs 
$3.79 a gallon in my district. Fact: In 2002, the oil companies made 
$30 billion in profits. In 2008, it's projected they will make an 
unbelievable record $160 billion in profits, every penny of that 
extracted from American consumers and American small businesses and 
borrowed from overseas, putting us in huge trouble.
  The oil companies took care of their Republican cronies and the 
Republicans legislated on their behalf. When they controlled 
everything, the House, the White House and the Senate, they passed the 
so-called energy bill. It took them 5 years to write it. And they 
passed it. We're living with the consequences, which is the huge 
increase in profits and the huge increase in prices to consumers.
  The choice is clear. Do we pass a bill written by Democrats who are 
not beholden to Big Oil, or do we pass another Republican bill, those 
who legislated this mess in the first place? Do we break our dependence 
on fossil fuels and mandate renewal energy, or do we ignore the ravages 
of global warming, drill, dig, burn and borrow our Nation to debt and 
dust?
  Today I will vote for energy independence, sustainability and 
affordable energy prices. Many of my Republican colleagues will vote 
yet again for bigger oil company profits. Congratulations to the Grand 
Old Oil Party. They're very consistent.
  Mr. SALI. I yield 2 minutes to the gentleman from Colorado (Mr. 
Lamborn).
  Mr. LAMBORN. Mr. Speaker, I rise today as my colleagues across the 
aisle try to deceive the American people with this none-of-the-above, 
no energy plan. H.R. 6899, the Democrat energy bill, does nothing to 
address lawsuits from radical environmentalists, which means that 
leases will be tied up in court for years. It allows no drilling within 
50 miles of American shores. This alone rules out most of the promising 
areas in the Gulf of Mexico. It gives no revenue sharing to States that 
allow offshore drilling. This bill would actually cost these States 
money. States will have no incentive to allow drilling from 50 to 100 
miles. It imposes tax increases on oil companies right when they need 
to invest in new development. These tax hikes will be passed on to 
consumers and will raise the price of gasoline and home heating oil. It 
does nothing to promote oil shale, nuclear power, clean coal, new 
refineries or Alaskan oil.
  I am concerned about using oil shale in particular, being from 
Colorado. According to estimates, there are 1.23 trillion barrels of 
oil in oil shale deposits just in government-owned lands. This 
legislation does not provide a solution that advances oil shale 
development. It is estimated that access to this American supply of 
energy could supply American domestic gasoline needs for 200 years.
  In essence, the Democrat bill does not open up offshore drilling as 
it purports to do. It makes no progress on

[[Page 19276]]

other major sources of energy. And it actually raises the cost of oil 
and gas through tax hikes and raises the cost of electricity through 
its renewable energy standards. This bill is not just a sham and a 
fraud, though it is that. It will actually damage our economy. It will 
kill jobs, and it threatens our economic future as a country.
  Mr. RAHALL. Mr. Speaker, just to remind the previous gentleman, he 
ought to read the bill because there is a State opt-in for oil shale 
leasing, including in his own State.
  I yield 2 minutes to the gentleman from Pennsylvania (Mr. Altmire) 
who has been a real stalwart in helping us develop this comprehensive 
energy bill.
  Mr. ALTMIRE. My friends on the other side of the aisle, those who 
stood in this darkened House Chamber for weeks asking Congress to 
return to vote on a drilling bill, will bemoan the fact that this bill 
is not identical to their bill, but no one in this House, Republican or 
Democrat, got everything in this bill that they wanted. Every one of us 
could find something we would like to take out, something that was left 
out that we would like to put in, or language that we would like to 
change. But that is how the legislative process works. The finished 
product is a result of give-and-take compromise put together in a way 
that can pass by majority vote. That is what we're here for, right? To 
pass an energy bill.
  But the truth is, Mr. Speaker, those on the other side have been a 
part of this process. For months, we've heard their cries of ``drill 
here, drill now.'' For months they have talked of nothing else. So here 
we are today taking up a bill that triples the territory that is 
available for offshore drilling. And during the 6 years the Republicans 
held control of both Congress and the White House, they had the chance 
to write the bill exactly as they wanted. And during those 6 years, 
they did nothing to reduce our dependence on foreign oil and nothing to 
advance their ``drill, baby, drill'' war chant. For 6 years the 
American people watched and waited for the Republicans to act but got 
nothing in return.
  So now it's our turn, and today we will pass a bill to expand 
offshore drilling. So to my Republican colleagues, I say their voices 
have been heard. Their views have been included. And they should take 
``yes'' for an answer.
  Mr. SALI. I yield 2 minutes to the gentleman from Arizona (Mr. 
Shadegg).
  Mr. SHADEGG. I thank the gentleman. My colleague on the other side 
just said nobody got everything they wanted out of this bill. The 
reality is nobody gets anything out of this bill. Nobody gets anything 
of out of this bill except the environmental groups who will sue to 
block all oil production. The reality is we are legislating to solve a 
crisis that we created. It was the Congress at the urging of 
environmental groups that blocked Outer Continental Shelf drilling. It 
was the Congress that blocked drilling in the Inter-Mountain West. It 
was the Congress that blocked drilling in Alaska.
  Do you know what that has done? That has cost Americans jobs. That 
has cost the people in my district their chance to earn a livelihood 
because we locked that all up. Are we opening it up today? Is my 
colleague right that this is a compromise? Absolutely not. We are not 
opening up one single square inch of drilling. Let me make it clear. 
The Sierra Club said ``we are working very hard on this bill to ensure 
that its focus is not expanded offshore drilling.'' Mr. Murtha, a close 
friend of Speaker Pelosi, said, he admitted that, this is a political 
month. Last Wednesday, he said that there are all kinds of things we 
are going to try to do that will go away after we leave.
  They don't plan to produce oil under this bill. It's just talk. The 
legislative director of the radical Natural Resources Defense Council 
acknowledged the same thing about the Democrats' ploy: ``This is about 
politics, not necessarily about policy.'' Democrats know that not a 
drop of oil will be produced because lawyers will file lawsuits 
stopping every single one. Let me make the point: The administration 
last year issued 487 leases in the Chukchi Sea. Environmental groups 
sued to stop and have stopped all 487.
  The administration has a total of 748 leases in the Chukchi Sea and 
Beaufort Sea. How many lawsuits have been filed and how many leases 
have been challenged in lawsuits? All 748. Various oil companies in 
February of 2007 filed exploration plans for 12 separate leases in the 
Beaufort Sea. How many of the 12 have been challenged? Every single 
one. The BLM in New Mexico offered for sale 78 leases in New Mexico, 
Kansas, Oklahoma and Texas. How many have been sued? Every single one.
  The SPEAKER pro tempore. The time of the gentleman from Arizona has 
expired.
  Mr. SALI. I yield the gentleman 30 additional seconds.
  Mr. SHADEGG. The truth is this problem could be easily solved. If my 
Democrat colleagues were genuine about wanting to create American jobs, 
about putting Americans to work and about getting off our dependence on 
foreign oil, then put reasonable language in the bill that limits 
lawsuits. We can allow lawsuits. But they don't have to be dilatory. 
They don't have to be such that no oil will ever be produced.
  Sadly, the Speaker called our efforts to produce a hoax. If you don't 
fill the litigation loophole in this bill, this bill is a hoax. And 
it's not nice to fool the American people, to tell them you're doing 
something when you know you're not doing anything.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Colorado (Mr. Perlmutter).
  Mr. PERLMUTTER. Thank you, Mr. Rahall, for bringing this bill to the 
floor, building this bill and spending a lot of time over the last 2 
months to bring a compromise piece of legislation. And I want to focus 
first of all on the part of the bill that Mrs. Biggert was talking 
about, which is the Green Resources for Energy Efficient Neighborhoods 
(Green Act), which is a bipartisan section of this bill designed to 
make housing, commercial and industrial properties more energy 
efficient.
  Now, how anybody on your side of the aisle could complain about 
energy efficiency is way beyond me because a barrel of oil saved is a 
barrel of oil earned, a Btu saved is a Btu earned, and how anybody 
could complain about that section of the bill, which Mrs. Biggert 
didn't, is beyond belief. She is a cosponsor of the Green Act out of 
Financial Services. But it creates a green mortgage market, it upgrades 
50,000 units of HUD to energy efficient standards. We've seen and heard 
in our committee that HUD's utility costs have gone from $3.5 billion 4 
years ago to $4.6 billion this year. We need to come up with different 
ways to power our country and be more efficient in how we do that. So 
there are all sorts of energy efficient measures that are a bipartisan 
portion of this bill.
  But my friends on the Republican side of the aisle want to come up 
with the same old complaints, the same old arguments, the same old 
answers and the same old results. And it's all about oil. The problem 
is if we're addicted to one commodity, one fuel that is controlled by 
eight countries and five oil companies, we're going to have these 
problems all the time.
  And I would like to say that our friends had the opportunity several 
years ago to come up with their energy bill. And the Majority Leader at 
that time, John Boehner, said the GOP energy bill would bring down 
prices. He said, ``So what is being done to bring gas prices down? The 
Energy Policy Act of 2005 is a balanced bipartisan bill that will 
ultimately lower energy prices for consumers and spur our economy.'' 
(8/19/05).
  It couldn't be farther from the truth. Gas prices have just gone up, 
so we've got to have a comprehensive approach. It can't just be about 
oil, although this bill does expand domestic production by a lot.
  The SPEAKER pro tempore. The time of the gentleman from Colorado has 
expired.
  Mr. RAHALL. I yield the gentleman an additional 30 seconds.

                              {time}  1815

  Mr. PERLMUTTER. We have all sorts of opportunities for additional 
drilling, offshore and onshore. And my

[[Page 19277]]

friend from Colorado couldn't have been further from the truth when he 
said there was nothing in there about oil shale. Oil shale is part of 
the opt-in process here.
  This is a comprehensive bill that includes coal, includes renewables, 
includes energy efficiency, includes domestic production. This is the 
kind of thing that we need to break ourselves from the dependence upon 
oil from foreign countries. But with two oil men in the White House, 
what would you expect about gas prices? Gas prices are going straight 
up, and that is just what the Grand Old Party wants.
  Mr. SALI. Mr. Speaker, I yield 3 minutes to the gentleman from 
Louisiana (Mr. McCrery), the ranking member on the Ways and Means 
Committee.
  Mr. McCRERY. Mr. Speaker, I just want to say in response to the last 
speaker for the majority that the energy bill that he derided that we 
passed on a bipartisan basis in 2005 is basically included in this 
bill. You take the same tax provisions, for example, that we had in 
that bill and you just renew them. So the bill that we did in 2005 
wasn't bad, evidently, because you have embraced it. It is just that it 
wasn't enough.
  Now, finally, I think the country and people around the country 
understand the importance of not only preparing for the future, which 
admittedly we have to do, but in 2005 when we said ultimately that bill 
will lead to lower prices, we think it will, once we get alternative 
fuels on the market. But we have to develop those. We provided 
incentives in that bill, as you do in this bill, to generate activity 
in those alternative fuel sectors. But what we also need and what the 
country has come to embrace now I think is more domestic oil and gas 
production to bridge us to that future.
  We are not there yet. This bill, unfortunately, doesn't provide that 
bridge. It is advertised as such, but I would submit that it is false 
advertising.
  This legislation, produced unfortunately in secret by the majority 
and released just late last night, is a sham. It permanently locks up 
large portions of the Outer Continental Shelf, putting it off-limits to 
oil and gas producers, meaning that any claims that this bill will help 
promote energy security, certainly in the short-term, and by that I 
mean for the next 20 or 30 years, is just not the case.
  Moreover, in what surely must go down as one of the biggest bait-and-
switches in legislative history, the majority claims to open up some 
areas far offshore for production, but only if the States agree, only 
if the States opt in, and then it is only a few States. And to try to 
sour that deal, this bill removes the typical revenue sharing that 
would go to that State, in effect eliminating a major financial reason 
for States to allow drilling off their shores.
  Because of this omission in the bill, even my senior Senator, who is 
a Democrat, sees the foolishness of this bill's approach. She is quoted 
in the New Orleans paper as saying in reference to this bill that is on 
the floor right now, ``It most certainly won't see the light of day in 
the Senate.'' That is because of the omission of the revenue sharing in 
this bill. What she means is it won't see the light of day in the 
Senate because they know on a bipartisan basis in the Senate that this 
bill won't produce any more offshore drilling because States won't opt 
in if there is no revenue sharing for this bill.
  So, Mr. Speaker, I urge this House to do an all-of-the-above bill on 
energy, and not a none-of-the-above bill, like this bill represents.
  Mr. RAHALL. Mr. Speaker, I yield myself 1 minute.
  The gentleman from Louisiana has just described the revenue program 
as ``typical'' and that we are doing away with the ``typical revenue 
sharing.'' I would remind my colleagues, that is not an accurate 
statement.
  The OCS Lands Lease Act passed in 1954 had zero revenue sharing in 
it. Zero revenue sharing. It was only in 2006 when this Congress passed 
revenue sharing to allow four States to share in that money, due to 
hurricane relief, those four States being Texas, Louisiana, Mississippi 
and Alabama. Revenue sharing was a one-shot deal.
  So for the gentleman from Louisiana to describe it as typical, and 
many on that side have attacked this bill because there is no revenue 
sharing, a bribe to the States, if you will, to opt in, is just not an 
accurate description of this legislation. Revenue sharing has never 
been typical of leasing and the Outer Continental Shelf.
  Mr. McCRERY. Will the gentleman yield?
  Mr. RAHALL. I will yield.
  Mr. McCRERY. Thank you. You are right with respect to offshore 
drilling, and I think that has been an unfortunate omission throughout 
the years, and we have corrected that recently.
  Mr. RAHALL. Reclaiming my time, it was a one-shot correction due to 
hurricane relief, Katrina.
  Mr. McCRERY. That was the bridge that got us there. But certainly 
with respect to onshore production on Federal lands, there typically 
has been revenue sharing, is that correct?
  Mr. RAHALL. Onshore, yes. We are talking about the Outer Continental 
Shelf here. You said OCS.
  Mr. McCRERY. For the same reasons, we should have revenue sharing for 
offshore.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the distinguished 
gentleman from Florida (Mr. Klein).
  Mr. KLEIN of Florida. I thank the chairman.
  I rise to support the Comprehensive American Energy Security and 
Consumer Protection Act. This bill is a real comprehensive energy 
solution, one that will bring down gas prices in the short-term and, 
most importantly, end our national addiction to oil in the long-term.
  This is the energy plan that Americans have been waiting for since 
the oil embargo of 1973. The sooner we take oil out of the equation, 
the better it will be for our economy and our national security.
  This legislation has the potential to dramatically reduce gas prices 
and set our country on a path to energy independence with real 
investment in clean technologies and provide tax breaks for individuals 
and businesses which make smart energy choices.
  In this package we treat oil as a transition to the innovative 
technologies of the future, but it is only a transition. Congress has 
finally learned through the American people that we cannot continue to 
feed our oil addiction and remain competitive in a global economy.
  This package opens up new parts of the Outer Continental Shelf for 
drilling, 85 percent of it, and it also includes the drill-it-or-lose-
it provision that I have supported. This basically says that Congress 
is telling the oil companies that they must drill on the land or 
offshore areas that they already control, or step aside and let someone 
else drill on that area.
  I have always believed that most Americans believe that that 
ingenuity that put a man on the Moon can and will solve our energy 
crisis, and this package provides the necessary incentives for our 
scientists, researchers and entrepreneurs to perfect the next 
generation of clean, affordable energy sources. America is well ahead 
of the Bush administration on energy policy, and is more than ready to 
embrace this comprehensive energy plan.
  Mr. SALI. Mr. Speaker, I yield 2 minutes to the gentleman from 
Tennessee (Mr. Duncan).
  Mr. DUNCAN. Mr. Speaker, Carl Pope, the executive director of the 
Sierra Club, was quoted as saying, ``We are better off without cheap 
gas.'' Well, maybe the wealthy members of the Sierra Club aren't hurt 
by $4 gasoline and gasoline that will go much higher if we don't 
increase production, but many middle and lower income Americans are 
hurt by this, and we can't let radicals just put all types of energy 
production off-limits in this Nation if we are going to remain viable 
economically and not shut this country down from an economic 
standpoint.
  This bill has been described by several people as a hoax bill. The 
hoax bill that we are considering now claims to lift the congressional 
moratorium on offshore drilling. In reality, it would keep 85 to 88 
percent of offshore oil production off-limits and really allow drill 
only where there is very little oil and oil that is very expensive to 
get.

[[Page 19278]]

  The hoax bill that claims to be a consumer protection act would raise 
taxes on oil companies by $17.7 billion. Well, who do you think pays 
these taxes? The consumer does, that is who. So the hoax bill protects 
consumers by passing on billions of new taxes to them.
  The hoax bill allows States to opt in by allowing oil drilling, but 
does not allow States to share in the revenue. That is giving States no 
incentive to allow for this drilling.
  The hoax bill does not even open up the 19.8 million acre Arctic 
National Wildlife Refuge where billions of barrels of oil could be 
produced. This is an area, Mr. Speaker, 36 times the size of the Great 
Smoky Mountains National Park, where over 9 million people visit each 
year. Only a few hundred visit ANWR, and where they want to drill is a 
frozen tundra, millions of acres without a tree or bush on it. I have 
been there twice. They want to drill on only 2,000 or 3,000 acres out 
of these 19.8 million acres.
  We passed this 12 years ago, but President Clinton vetoed it, thus 
stopping a million barrels a day for the U.S. every day since then. We 
were told then and several times since then that allowing more drilling 
wouldn't help immediately. But we said it would in a few years.
  If the Republicans in Congress had their way, we never would have 
seen $4 a gallon gas. Now Republicans have bills that are not hoax 
bills and that would do something for the middle and lower income 
people of this country.
  Mr. Speaker, finally, if we are ever going to lower the cost of gas 
and other forms of energy, we need to restore government of, by and for 
the people, and not government of, by and for wealthy 
environmentalists.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore. The Chair would again remind Members not to 
traverse the well while another Member is under recognition.
  Mr. RAHALL. Mr. Speaker, I yield 3 minutes to the distinguished 
gentleman from Maryland (Mr. Van Hollen).
  Mr. VAN HOLLEN. I thank the chairman for his leadership.
  Today we have arrived at a moment of truth on energy policy in this 
body. For weeks, our Republican colleagues have claimed they want a 
comprehensive piece of legislation, an all-of-the-above piece of 
legislation when it comes to energy policy. Now we have just such an 
initiative before us on the floor of this House, and they won't take 
``yes'' for an answer.
  It turns out that they want all of the above with a big asterisk next 
to it. It turns out it is all of the above, except let's not take away 
some of the taxpayer giveaways and subsidies to the big oil and gas 
companies and use those moneys instead for renewable energy and energy 
efficiency.
  I think the American people know what a cozy relationship there has 
been between the Bush White House and Big Oil. I think last week we 
learned just how cozy that was between the Bush Department of the 
Interior and the oil industry.
  This bill does two main things. First of all, it greatly expands 
opportunities for responsible offshore drilling in our country, and 
uses the royalties and proceeds from those drilling operations to 
invest in renewable energy and energy efficiency.
  But let's not try and fool the American people. The Department of 
Energy has made it clear that even if you drilled on every square inch 
of this country today, you wouldn't see a drop in price of gas at the 
pump for a very long time and the price impact would be minimal. Why? 
The United States has 3 percent of the world's oil reserves and guzzles 
25 percent of the world's oil.
  You cannot drill your way to energy independence, which is why we 
have the second part of this bill, which is a huge increase in 
renewable energy and energy efficiency, why we establish a national 15 
percent renewable energy standard by 2020. That is why we redirect the 
subsidies away from the oil and gas industry, who are making record 
profits, and invest that money instead in renewable energy and energy 
efficiency.
  It is too bad that in listening to the debate today, that our 
Republican colleagues will not cease this opportunity to move forward 
together on what is a comprehensive plan. It is too bad that they 
refuse to break that connection with the oil and gas industry as a 
result of the provisions in this bill that say let's redirect those 
subsidies.
  This is a serious challenge that our country is facing. This is a 
serious proposal that is put forth to bridge the differences and try to 
move forward together on an important piece of legislation for the 
American people. It is unfortunate, just listening to the debate, that 
some of our colleagues want so badly to have a political issue to take 
to this election that they refuse to come together as one in this body 
to actually get something real done.
  Mr. Speaker, the American people deserve better than that. They 
deserve a piece of legislation that will move us forward on this very 
important issue. They deserve for this House to support this bill.
  Mr. SALI. Mr. Speaker, may I inquire as to the time remaining for 
each side.
  The SPEAKER pro tempore. The gentleman has 56 minutes remaining, and 
the gentleman from West Virginia has 48 minutes remaining.
  Mr. SALI. I yield 2 minutes to the gentleman from Indiana (Mr. 
Pence).
  Mr. PENCE. Mr. Speaker, I rise to oppose the Democrat energy bill, 
the Comprehensive American Energy Act.
  I have enormous respect for the gentleman from Maryland. This is a 
serious issue. The American people are hurting. Gasoline prices in 
eastern Indiana in 6 hours on Saturday went from $3.79 a gallon to 
$4.29 a gallon. They expect this Congress to come together. Where I 
respectfully disagree with my colleague from Maryland is this is a 
serious issue, but this is not a serious proposal.

                              {time}  1830

  A serious proposal is considered in committees. A serious proposal is 
the subject of hearings. A serious proposal is the subject of more than 
a half a day of debate on this floor. A serious proposal gives 
consideration to all the Members of this Congress through the amendment 
process.
  The truth of the matter is this Congress is coming to this point, 
because after 20 months of the Democrat majority refusing to bring a 
vote to the floor to allow more domestic drilling, House Republicans 
took this floor in the month of August, and we held it. We demanded an 
energy bill, a comprehensive bill that said ``yes'' to fuel efficiency, 
``yes'' to conservation, ``yes'' to solar, wind, and nuclear, and, 
``yes'' to more domestic drilling.
  The Democratic majority, the drill-nothing Congress, cried ``uncle,'' 
and it brings us to this day. But I would suggest to my countrymen, as 
you hear again and again, that Republicans are refusing to take yes for 
an answer. Read the fine print.
  Reality is that this is no longer a drill-nothing Congress; it's a 
drill almost-nothing Congress. They say ``yes'' to drilling in this 
bill, but not in Alaska, not in the eastern coast and not within 50 
miles. They say ``yes'' to drilling, but States can decide whether we 
do it or not, and they won't get a single penny from revenues for 
allowing drilling off their shores. I guess we are just going to rely 
on the goodness of our States' hearts to open up their shorelines to 
more drilling.
  They say ``yes'' to drilling, but litigation rules will allow 
environmental lawyers to tie up the leases from the very day they are 
filed. I say to my House Democrat colleagues, from my heart, don't do 
this.
  Daniel Webster said it a century ago, and it's chiseled on the wall. 
Let us develop the resources of our land and call forth its power, and 
let us do something worthy to be remembered.
  We can do better than this. We can pass a bipartisan comprehensive 
energy bill, and I urge my colleagues to do that.
  Mr. RAHALL. Mr. Speaker, God forbid, that this bill be known as a 
drill here, drill now, drill everywhere, drill irresponsibly piece of 
legislation.
  I yield 1 minute to the distinguished majority leader, a gentleman 
who has done yeoman's work in bringing this

[[Page 19279]]

together as a caucus on this legislation, and I salute his knowledge 
and expertise in developing this legislation, Mr. Hoyer.
  Mr. HOYER. I thank the gentleman for yielding.
  This is a serious issue, and there are a lot of related issues.
  The gentleman who spoke before me, and I have a great deal of respect 
and affection for him, we treat one another with respect. We put a 
price-gouging bill on the floor because we were concerned about the 
spikes in pricing. Indeed, we saw, as Ike was coming and bearing down 
on Texas, before it ever got to the shoreline, there were $5 per gallon 
prices, before it ever got to the shoreline, before it ever destroyed 
anything.
  My friend voted against the price-gouging bill.
  These are serious pieces of legislation. The Republicans were in 
charge of the House for 6 years. In 2001, 2002, 2003, 2004, 2005, and 
2006, they controlled the White House.
  I have in my hand the eight pages that the administration, Mr. Bush, 
has submitted to us, President Bush submitted to us, over the last 8 
years. Six of those years they were included in the appropriations 
bills passed by the Republican Congress and Republican Senate and 
signed by a Republican President.
  In each of those bills, the administration asked to continue the 
moratoria on drilling, every one of them, passed for 6 years by your 
Congress. We didn't have the votes to pass anything.
  Then we took over the control, because the Congress was fed up, 
frankly, with a complacent, do-nothing Congress, complicit in moving in 
the wrong direction, which 82 percent of America thinks we are now on, 
the wrong direction.
  This Congress has mightily tried to change direction, and, in fact, 
we have in many areas, including a comprehensive energy bill last year 
that the President signed. Sam Bodman said it was a great bill, the 
Secretary of Energy. It passed in a bipartisan fashion in both the 
Senate and the House.
  President Bush, in last year, fiscal year 2008, submitted a budget 
document, he submitted it, which said, the moratoria should continue. 
This year, the President submitted a bill, for the 2009 fiscal year, 
which said the moratoria should continue.
  So these crocodile tears about how Democrats have taken over and all 
of a sudden gas prices have spiked, you give us far more credit than we 
deserve in light of not being able to override the President's veto on 
almost anything that he didn't want. He signed some things that he 
didn't want like the minimum wage. He signed some things he said he 
wasn't going to sign, like the GI Bill. He signed some things that we 
passed through the House and Senate.
  But these crocodile tears are unwarranted by your record, and by the 
submissions of the budgets, by your President, for 8 years running. 
Now, a couple of months ago, the moratoria which was put on by George 
Bush, his father, was lifted. Why? Because our constituents are 
hurting. Why? Because we are being held up by those who are selling 
oil. Why? Because the market is being manipulated and speculators are 
impacting on price.
  You think that's not the case, or do you think all of a sudden demand 
went down by a third, so it went from $146 down to $92 today, within 
just a few months. Who believes the free market operates in a way that 
demand spikes for oil that much in a 90-day period? Nobody on this 
floor who is rational believes that.
  Something is rotten in my home of Denmark. And, actually, it's not 
rotten in Denmark; it's rotten someplace, though. Mr. Abercrombie is 
going to speak on behalf of this bill, as he met with Mr. Peterson and 
tried to come together.
  Originally this bill, the gang of 20 in the Senate, which apparently 
you don't like, because they are undermining the drill, drill, drill 
political advantage that you have sought, the 20 said let's deal with 
four States. We are saying let's deal with every State. We do say with 
sensitivity, as the previous speaker said about his State, States are 
going to have the opportunity to make a determination as to whether 
they want to proceed.
  Now, you could argue that that shouldn't be the case, because, after 
all, that's Federal. It's not State property, you get that far out.
  We have done a lot of work. We have done a lot of work in trying to 
work across this spectrum. I want to congratulate Mr. Rahall and Mr. 
Green and others who have worked so hard to try to bring us together.
  I will tell my friend, we do deal with oil shale in this bill. In 
your bill, you repeal a section which had caused a problem. We repealed 
that as well, so your bill and our bill did the same thing on that. 
Furthermore, we said three States that have substantial oil shale ought 
to have the same opportunity that the coastal States have to opt in to 
develop that.
  Whether the technology is available now, I don't know. In part, I 
believe the arguments used on this floor, which I will say as an aside, 
I think was a misuse of this floor. But notwithstanding that, arguments 
that were made day after day after day were not accurate, and you knew 
they were not accurate, which is why it made it so difficult to respond 
to.
  None of you ever mentioned the fact that the President of the United 
States, George Bush, submitted, months ago and 7 years prior to that, 
and you passed 6 years in a row, on your watch, the moratoria, of which 
you now wring your hands.
  All of us are concerned. All through the summer and into the fall 
Americans have been filling up their cars at record prices in my 
district and every district, $60, $80, $100 a tank and looking for 
Washington to help, to see what we could do about it. We are trying to 
do something about it.
  Now, you passed an energy bill in 2005. Your Speaker, Mr. Hastert, 
your majority leader or now minority leader, Mr. Boehner, and my good 
friend, your whip, said to us, and I won't quote them all at length but 
I will quote your Speaker, Americans need this bill--your energy bill 
passed in 2005--to lower their energy prices, to drive economic growth 
and job creation, and to promote greater energy independence. That's 
what you said your bill was going to do.
  You also said, of course, in 2001, that we were going to have the 
greatest economy we would ever have seen if we passed your economic 
improvement program. I doubt that any American believes that you 
accomplished that objective. You passed your bill, the President signed 
it. Just a short number of months later prices went from $1.46, when 
you took over, to over $4.20.
  If it was a successful energy program, it was a successful energy 
program in driving up the price of gasoline for all of our consumers. 
To see what we could do about this we met, we talked to Mr. 
Abercrombie, we talked to Mr. Peterson to try to bring our caucus 
together. It was a diverse caucus. A lot of people felt President Bush 
was right, those 8 years that he submitted those bills and that you 
passed 6 years you were in charge.
  To relieve the strain on their budgets and their families, not 10 
years from now but now, today, I am sure you are wondering whether we 
will throw up our hands on the work of compromise and retreat into 
finger pointing. I think we can do better than that on both sides.
  Both of us want to make sure that we bring prices down, and both 
sides of the aisle want to see energy independence. We can pass this 
bill, the Comprehensive American Energy Security and Consumer 
Protection Act. You say it's not perfect. Many Members on our side say 
it is not perfect, but it is a very significant step and a very 
significant expansion of where oil could be found.
  I would reiterate, there are 68 million acres right now, right now, 
as I stand here, that could be drilled upon right now without any 
further legislation, regulation or administrative action.
  This legislation, this bold step towards a comprehensive energy 
policy, is worthy of the 21st century. Lower gas prices today, American 
oil and natural gas for the years to come, that's what this bill 
promises and will provide, and serious investment in a new

[[Page 19280]]

generation of energy technologies for a cleaner, more secure energy 
future. It's all here, and we are all going on record this evening.
  Here is what the energy package is going to accomplish. First, we are 
going to drill for more oil and gas here at home. That's what Americans 
have said. Use our resources. Don't rely on the Middle East. Don't rely 
on Venezuela. Don't rely on Russia. Certainly, don't rely on Iran. 
Drill here.
  We have both said all along, we put a bill on the floor, drill 
responsibly in presently leased land, that Mr. Rahall led. Most of you, 
many of you voted against it. For many of my colleagues, I know that 
drilling is the most contentious part of this compromise, but we have 
worked hard to find common ground.
  Drilling will come with strong, new environmental protections. 
Americans want that. They want resources, but they want them safely 
gotten. It will take place well offshore, as opposed to the 3-mile zone 
that will go up for grabs in 15 days if we vote this bill down and do 
nothing.
  I don't know how many of you are for that. Maybe all of you are for 
it on that side. I don't think our citizens are for it. In the areas 
closer to shore, we are letting the States themselves make the final 
call. To my colleagues on the Republican side who argue that States 
won't opt in without revenue sharing, I reply this, if the ground swell 
for drilling is as strong as you have said it is, and I believe it is, 
surely our State leaders will listen.
  Do not ascribe to us the only ones who will respond to the public's 
desire to find more resources. Certainly our State leaders will respond 
as well. They will feel comfort that their State has made that 
determination.
  That's not to mention the job creation that will occur in States, 
what a motivation that is. We are also including diligent development 
provisions, which, by the way, you included in your 2005 bill. We 
thought it was a good provision. We called it ``use it or lose it.'' 
You voted against it because it wasn't your bill. You voted for it when 
it was development in your bill. When we put it on the floor, you voted 
against it.
  Second, we are going to take immediate action to lower the price of 
oil by releasing 10 percent of the oil in the Strategic Petroleum 
Reserve. We proposed that; the President said ``no.'' We said don't buy 
any more. The President said ``no.'' Both of those policies are now 
being pursued by the administration.
  Tax incentives for plug-in hybrid cars, solar and wind power, 
biofuels and energy efficient homes. Why? Because we can't drill 
ourselves out of this. We need to drill, we want to drill, we are 
providing for drilling, but that's not the solution.
  It is part of the solution. We all understand, you say, all of the 
above. We say, yes, let's invest in alternative research, for cutting-
edge energy research, support for mass transit and renewable energy.

                              {time}  1845

  We need all of those steps if we are going to be energy independent.
  Some day soon I think we will look back on these investments as the 
beginning of the end of our oil addiction. We are going to fund them by 
recovering the royalties the oil companies owe the American people. Who 
here believes you need to incentivize a company to produce a product 
that is getting the highest price it has ever gotten in history. I 
don't find that premise in my free market concept. The free market 
operates that if people are buying your product and they are paying you 
a very good price, by golly, you try to provide more product for them.
  Refineries were operating at less than 90 percent, or about 91 
percent this summer, the lowest point they have been at refining 
capacity in a number of years, not because they didn't have supply. 
They have got supply. There are no shortages, there are no lines. They 
are just charging a high price.
  We are going to fund that research, as I said, by asking the oil 
companies to pay their fair share. They are making good money and our 
citizens shouldn't have to pay more to run their government because 
some oil companies are not paying their fair share. It simply doesn't 
make economic sense to do billions of dollars of tax cuts to oil 
companies while our citizens are paying high taxes.
  All of that is our energy solution. We have not left a stone unturned 
or a remedy untried. To my Democratic colleagues, I don't think a 
single one of us is happy with every single provision in this bill. I 
know I am not. There would have been some additional things I would 
have liked in this bill. But I also know that is the price of a good 
compromise, and making good compromises is our business. To my 
Republican colleagues, you have told us loud and long, and I want to 
congratulate Mr. Peterson for the work he has done in bringing this 
issue to the fore and talking about it, not just this year because I 
have known him for a long time. We served on the Appropriations 
Committee, and he has been consistent and constant in his focus on this 
issue.
  Your Presidential candidate is running for office under the motto 
``Country First.'' We would all run on that platform.
  I am for Mr. Obama, as all of you know. He wants to see change and a 
new direction. But certainly all of us agree that our country comes 
first, perhaps not before God, perhaps we would say our family is 
critical, but certainly country is our consideration.
  Democrats and Republicans, we are all being watched today and they 
can see partisan differences, partisan divide, and sending a partisan 
bill to the Senate. We can perhaps do that, and maybe we will. Our 
public will not be pleased. This bill is not perfect. It is not 
everything you wanted; it is not everything I wanted. But it is a 
substantial expansion on drilling, a substantial investment on 
renewables, a substantial investment on conservation. We ought to pass 
this bill.
  Mr. BOUSTANY. Will the gentleman yield?
  Mr. HOYER. I would yield briefly to the gentleman.
  Mr. BOUSTANY. I would like to ask if you considered repealing section 
199, which is basically singling out the oil and gas industry for a tax 
which all of our manufacturers don't have to pay--
  Mr. HOYER. Reclaiming my time, that provision, of course, was added 
under your leadership to manufacturing. It wasn't in manufacturing, as 
you probably know, when it was originally adopted because it was not 
perceived that the oil companies were in manufacturing as the bill 
contemplated to be.
  Then you thought the oil companies weren't doing well enough, and so 
you wanted to add that provision and you added it under Republican 
leadership. Very frankly, we thought that was not a wise move at that 
time, and we don't think it is a wise move now. And very frankly, I 
don't think the American public thinks that the oil companies will go 
out of business if we don't give them this tax incentive.
  Mr. BOUSTANY. If the majority leader would yield.
  Mr. HOYER. I will yield one more time, and then I will conclude.
  Mr. BOUSTANY. This provision hurts the larger companies which are 
necessary with the technology to drill in deep water. The smaller 
companies participate in that. So if we hurt our deep water abilities 
in the United States off our Outer Continental Shelf, we are making 
ourselves less competitive and we are hurting job prospects.
  I have seen so many folks from Louisiana who are serving all over the 
world, working in the oil industry who have left the United States, 
left Louisiana because they have to work over there. We could keep 
these jobs here.
  Mr. HOYER. Reclaiming my time, they go no place in the world, my 
friend, where they pay less than they do in the United States to those 
nationalized countries that allow them to drill. No place in the world 
do they pay less. If they went to Venezuela, they pay 93 percent. If 
they went to Norway, they pay 78 percent. Nowhere in the world, my 
friend, do they pay less than they pay here, and the difference is made 
up by your taxpayers and my taxpayers.

[[Page 19281]]

  Ladies and gentlemen, this is a good bill. It is not a perfect bill. 
But it is a good-faith effort to move this issue forward, to make us 
independent, to bring prices down, to invest in the future which 
renewables are clearly the harbinger of, and to make sure that we take 
the action our public wants.
  I thank Mr. Rahall for his leadership, and I urge every Member of 
this body on both sides, vote for this piece of legislation. Move us 
toward energy independence, not just today but tomorrow and tomorrow.
  Mr. SALI. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, there has been a lot of discussion here and I think the 
main issue we are dealing with is how do we end our addiction to 
foreign oil. Can we drill our way out of this problem; can alternatives 
be used to replace crude oil. I think those are the two primary 
positions that are being bantered about on this floor.
  As the American public is watching this debate, I am sure they must 
be quite baffled because both sides claim only they are correct. I 
think the answer, can we drill our way out of this problem, can 
alternatives be used to replace crude oil, the answer to both of those 
questions is probably ``kind of.''
  Mr. Speaker, a couple of weeks ago I was at the Idaho National 
Laboratory. It is one of the premier nuclear and alternative energy 
research facilities in the U.S. Here is what the experts at the INL 
told me when I was there. They said wind energy is about a 2 percent 
energy solution. Solar is not much better, and it is a lot more 
expensive. They talked about hydrogen. Currently we generate hydrogen 
by burning natural gas. That actually loses energy. Today there is no 
good source for the carbon dioxide, carbon monoxide that they say is 
needed to develop other forms of alternative energy, unless we are 
going to burn coal, and coal is not included in this bill except that 
we are going to increase excise taxes on that coal.
  How will we get enough hydrogen, carbon monoxide, and carbon dioxide 
to make alternatives a reality? Well, the folks at the INL said we will 
need to have next generation nuclear reactor facilities, not today's 
light water reactors that people are seeking to permit today. Next 
generation reactors operate at higher temperatures, and at those 
temperatures, chemistry and the reactions that take place, they take on 
new characteristics and that will allow the generation of hydrogen, 
carbon dioxide, and carbon monoxide in quantities that will make 
alternatives a reality.
  Here is the problem. According to the Idaho National Laboratory, next 
generation nuclear facilities are two to three decades away from 
becoming a reality.
  This bill does nothing to develop next generation nuclear reactors, 
and it doesn't really address the alternative energy in a meaningful 
way because of that. The bridge has to be made with crude oil and 
natural gas. The problem is this bill permanently locks up almost 90 
percent of those offshore resources so it doesn't really address even 
our most limited need for crude oil.
  Mr. Speaker, we need crude oil for more than just gas and oil. No 
plastics will ever be made from a windmill. No industrial chemicals 
will ever come from solar panels. No ink for printing. No asphalt that 
we need to make pavement to drive those electric cars and hybrid cars 
on. Well, Mr. Speaker, it just doesn't deal with those energies.
  What does it deal with? Well, it increases taxes to the tune of about 
$18 billion. I wonder how many people in America believe that if we 
increase taxes on oil companies, that somehow that will cause them to 
reduce the price they charge for gas and oil. That is an absurd, absurd 
suggestion. In fact, what is going to happen is those taxes will go 
right down the pipeline, through the gas tank right into your gasoline 
tank where you will be paying higher prices for the gas and diesel that 
you need.
  It was suggested earlier that we use so much energy in this country. 
You have all heard T. Boone Pickens on television say, gosh, we burn so 
much of this crude oil. I am not ashamed that we use a lot of energy in 
this country. It has made us the most prosperous Nation on the face of 
the planet, and it has allowed us to help essentially every other 
country on the face of the planet at one time or another. And America 
has proven time and time again that with our prosperity, we will also 
be generous to other countries at the time when they need it. Without 
that prosperity, we would not be able to have that generosity. Using 
energy makes us prosperous.
  Just over a year ago, the Business Roundtable put out a report. Their 
conclusion was that to meet our energy needs for the future, we had 
better get our hands on every bit of energy we can from every source 
possible. That includes all of the alternatives. It includes nuclear. 
It includes crude oil and natural gas in increasing quantities. This 
bill does not get us there with any of those things.
  I guess the question at this point is what kind of future do we want 
for our kids and our grandkids.
  Mr. Speaker, ladies and gentlemen of this body, I am here to tell you 
that I want a future for my kids and grandkids where they will be 
prosperous. And for them to be prosperous, Mr. Speaker, we will need to 
get our hands on every bit of energy we can from every source possible, 
and this bill will not get that job done.
  Mr. RAHALL. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Texas (Ms. Jackson-Lee); and while she is taking the mike, I remind her 
that our thoughts and prayers are certainly with all of her 
constituents and all those who have suffered from the recent Hurricane 
Ike.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the chairman of the 
committee for his leadership and kind words to the people of the gulf 
coast. Let me thank all of my colleagues who have offered to us their 
concern and certainly their support. I just landed, and I came from the 
view of a devastated community, an area in Galveston represented by my 
colleagues that has experienced the greatest devastation that they have 
seen in decades. Three million people are without power, many of them 
desperate because of their financial conditions. As everyone knows, 
particularly my friends from Louisiana, sometimes getting power back 
together takes a long time.
  That is why this bill was important enough for me to come back, 
because it is a balance. As I left Houston, there were people crying 
out for diesel fuel, hospitals needing 700 gallons of fuel, and price 
gouging that law enforcement officers had to stop. People lined up at 
gas stations wherever they could find fuel, and those who could not 
find it were begging for fuel. So we know we have to do something about 
this calamity of energy and need.
  I come from what has been called the oil capital of the world. I 
practiced oil and gas law. And as someone said on the other side of the 
aisle, there is no fear over here. Democrats want to balance what is 
best for America, and we have done so.
  So there is a little bit of sacrifice that we are doing, but it is 
important to note that this bill brings relief to those suffering in 
the gulf and who need to find gasoline because in addition to many 
other aspects, it opens up leasing of 319 million acres; 85 million 
acres come from a State option.

                              {time}  1900

  That's a balance. But at the same time, this bill includes $18 
billion in tax cuts to spur green jobs. And energy is all kinds of 
energy sources. And so, in addition to the oil, we have the opportunity 
to do more with green jobs.
  We also allow a taking-out from the Strategic Petroleum Reserve. If 
we could get this bill passed and signed, I could help the people in 
the Gulf region because it would come to hospitals, it would come to 
gasoline stations. It would come to people who are in need.
  This is a bill that ends the current moratorium that allows drilling 
3 miles off, but it allows drilling through a State option, 50 to 100 
miles.
  Let me just say this, Mr. Speaker. I have listened to a lot of 
Republicans. And interestingly enough, in the 2005 bill, they even said 
they are trying to move toward energy independence. This is what we do.

[[Page 19282]]

  And I want to thank the chairman and Congressmen Green and Miller for 
allowing me to put language in this bill, and I'm proud of this 
language.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. RAHALL. I yield the gentlewoman an additional 30 seconds.
  Ms. JACKSON-LEE of Texas. Beyond the fact of the expansion of the 
leases offshore and opt-in, it allows minority women and small 
businesses to have the opportunity to do something they've never done, 
bid for these offshore leases, and it creates an energy consortium of 
our universities to work with wind and solar.
  I would like revenue sharing. I'm from the region. But we can't have 
everything. I hope to work on it, that we have these incentives that 
everybody is asking for. But now we have a balance, and the people in 
the Gulf region are crying out for resources and energy. And this bill, 
if it's gone to the Senate and it gets to the desk of the President, 
will help us do so.
  This is a good bill. This is a bill that should be signed. This is a 
bill we're proud of.
  And I want to thank my staff, Arthur Sidney.
  Mr. Speaker, I rise today in strong support of H.R. 6899, the 
Comprehensive American Energy Security and Consumer Protection Act. 
This legislation is a timely, necessary, and a comprehensive approach 
to addressing our energy crisis.
  I am especially proud to support this bill because my staff, and I 
worked tirelessly to ensure that appropriate language was included to 
benefit all Americans--especially, small, minority, and women-owned 
businesses, institutions of higher learning, particularly minority 
serving institutions. I also worked hard so that the American consumers 
would benefit from paying lower gas prices at the pump. I am proud that 
such a progressive and comprehensive piece of legislation is on the 
floor of the House today. I thank Speaker Nancy Pelosi, Democratic 
Majority Leader Steny Hoyer, and Representatives Rahall, Miller, and 
Green for their leadership in bringing today's important energy 
legislation to the floor that will address, in part, our current 
national energy crisis. I would also like to thank Mr. Arthur D. 
Sidney, my Legislative Director, for his work on this bill.


         i am pleased to have my language included in h.r. 6899

  I am especially proud to stand in support of this progressive piece 
of legislation because I was able to get my language included in this 
bill. Specifically, I was able to get included language in this bill 
that covers four critical issues: (1) the expansion of leases to 
offshore lands along the Outer Continental Shelf; (2) that States might 
opt-in to allow leasing off its costs by enacting legislation signed by 
the Governor or referendum; (3) allows the Secretary of Interior to 
establish goals to ensure equal opportunity to bid on offshore leases 
for qualified small, women-owned, and minority-owned exploration and 
production companies and may implement outreach programs for qualified 
historically underutilized exploration and production companies to 
participate in the bidding process for offshore leases; and (4) 
provides that the Secretary of Energy shall award a grant on a 
competitive basis to a consortium of institutions of higher learning 
for the establishment of a National Energy Center of Excellence to 
conduct research and education activities in geological and geothermal 
sciences, renewable energy and energy efficiency (including energy 
technology using clean coal, solar, wind, oil, natural gas, 
hydroelectric, biofuels, ethanol, and other energy alternatives), and 
energy conservation, including a special emphasis on environmentally 
safe energy. This consortium shall include at least two institutions of 
higher learning that are historically Black colleges, Hispanic-serving 
institutions, and tribally-based universities and colleges.
  As a senior Member of the House, representing the 18th Congressional 
District, which includes Houston, the energy capital of the world, I am 
pleased to support this bill. I am glad to have authored language and 
have it included in this bill. My language will go far in making sure 
that individuals, that heretofore have been underserved, are provided a 
seat at the proverbial energy table. I urge my colleagues to support 
this bill.
  Mr. Speaker, this bill could not come at a better time for Americans. 
To put it mildly, Americans are in desperate need of relief. Just a few 
months ago in May 2008, gas prices were at an all-time high. The price 
of regular-grade unleaded gasoline has risen well above $4 in some 
States. Increasingly, as the economy spirals to a recession, Americans 
must choose between food, energy, and gas. This crisis is of national 
and international importance. It is expected that the damage from 
Hurricane Ike which hit Houston and other parts of Texas, last week, 
will also drive up domestic oil prices.


    background on oil prices and the case for the necessity of this 
                              legislation

  The price of crude oil is the largest single factor in the retail 
price of gasoline. Oil prices have not been regulated since the Reagan 
Administration; however, the market situation since 2004 has yielded 
little excess capacity. The weakening value of the dollar, political 
uncertainty, and unrest in places such as Nigeria, Venezuela, India, 
and China, exacerbate the problem. Worse still, is the plight faced by 
the developing world. While the developed world is facing high oil 
prices, the developing world is facing even higher prices with the 
weakening value of the dollar. Food prices all over the world are 
rising, and instability is growing.
  Mr. Speaker, oil prices reached a record $147 per barrel and the 
American people are suffering. Many are faced with the decision to pay 
for gas or to pay for more food to feed their hungry families. 
Consumers are in desperate need of relief in the prices of oil, gas, 
and food.
  But even refiners cannot escape the impact of the rising price of 
crude oil. Refining companies that have no upstream component, all 
reported steep year-over-year profit losses for the first quarter of 
2008.
  The overall effects on the consumer have been deep and widespread. 
Concern over the rising price of retail gas has been mounting for 3 
years, and even as fuel exacts a greater toll on consumers' budgets, 
its macroeconomic effects have reverberated through all sectors of the 
economy.
  The rise in fuel prices is having a deleterious effect on other 
industries, including the automobile industry. Sales of mid-size cars 
and trucks have declined. Automakers reported an overall drop in sales 
of 6.3 percent in February of this year, led by light trucks--which 
were down 10.6 percent--and sport utility vehicles--down 7.7 percent. 
The average fuel economy of new vehicles has increased by more than 
half a mile per gallon since 2004.
  These rising gas prices are also spilling over into other sectors and 
they are having equally deleterious effects. In a recent survey of 
plumbing, heating, and cooling contractors, more than 90 percent of 
respondents expected their business to be harmed because of the high 
fuel costs. Without change, such as H.R. 6899, long-term, sustained gas 
price increases are going to severely affect persons living in the 
suburbs because of the high gas prices and the long commutes. H.R. 6899 
will bring marked improvements in energy prices.


             h.r. 6899--the legislation on the floor today

  H.R. 6899 will address the price at the pump by expanding drilling in 
an environmentally conscious manner. This bill is comprehensive, and 
its implementation will expand domestic and renewable sources of energy 
to bolster our national security. This is a real energy bill that will 
expand production and supply without sacrificing environmental 
concerns. The goal of this bill is to make the production and 
exploration of energy sources more affordable, more accessible, and 
more environmentally friendly.
  H.R. 6899 will end subsidies to the oil companies, promote good jobs 
here in America, and require Big Oil companies to pay what they owe 
America's taxpayers. It puts America on the path toward energy 
independence and a clean green energy future through greater energy 
efficiency and conservation, and protects consumers with strong action 
to lower the price you pay at the pump.
  This comprehensive and sweeping measure takes strong action to lower 
the price at the pump. It does so by releasing a small portion of oil 
from the Government's strategic reserve, and invests royalties from oil 
companies owed the American taxpayer in alternative energy technology.
  H.R. 6899 commits America to a renewable energy future and jobs by 
extending and expanding tax incentives for renewable electricity, solar 
and wind energy, and fuel from America's heartland, as well as for 
plug-in hybrid cars, while requiring 15 percent of American electricity 
to come from renewable energy. This is a real energy bill.
  This bill includes a compromise to responsibly open up the Outer 
Continental Shelf for drilling, with environmental protections, while 
demanding that Big Oil companies use the leases they have already been 
issued. It promotes efficiency and conservation that will save 
consumers billions, with tax incentives and loans for energy efficient 
homes, buildings, and appliances, and updated efficiency standards for 
buildings.

[[Page 19283]]

  I am pleased that this bill is one of the few recent energy bills 
that have already garnered strong bipartisan support on the House 
floor. Now, more than ever, in a time where the American people are 
experiencing serious economic woes, with a rampant mortgage crisis, the 
failings of major financial institutions, low wages and high prices, 
America needs legislation to make oil more accessible and more 
affordable. Because oil is a finite commodity, it is imperative that 
all Americans have access. This bill does just that: provides access in 
a responsible and sensible manner.
  Importantly, this bill lowers costs to consumers and protects 
taxpayers. This is critically important given our growing dependence 
upon sources of foreign oil and the ever increasing world price of oil. 
To that end, this bill temporarily releases nearly 10 percent of the 
oil from the Government's stockpile, known as the Strategic Petroleum 
Reserve, and replaces it later with heavier, cheaper crude oil. This is 
a real energy bill that provides real solutions to America's energy 
crisis.
  The bill provides royalty reform by making oil companies pay their 
fair share. Further, H.R. 6899 ensures that oil companies pay their 
fair share of royalties on flawed leases granted in 1998 and 1999. 
Because of mistakes made by the Interior Department, oil companies 
holding 70 percent of leases issued for drilling in the Gulf of Mexico 
in 1998 and 1999 became exempt from paying any royalties, costing 
American taxpayers about $15 billion. This bill makes it more efficient 
for the Interior Department to collect royalty payments from oil and 
gas companies owed to the American taxpayer. Additionally, this bill 
adds a new requirement that it must be in the fiduciary interest of the 
Federal Government for oil companies to be permitted to make royalty in 
kind, instead of cash, payments to the government.
  H.R. 6899 restores accountability and integrity in oil leasing at the 
Mineral Management Service. As you are aware, several recent events 
have called the integrity of this fine institution in question. This 
bill attempts to right some of those wrongs and address the misconduct 
that has occurred.
  This bill provides for a renewable energy future and creates American 
jobs. The bill includes $18 billion in tax cuts to spur green jobs and 
American energy independence, including an 8-year extension of the 
investment tax credit for solar energy and fuel cells.
  Mr. Speaker, H.R. 6899 includes a 3-year extension on the production 
tax credit for energy derived from biomass, geothermal hydropower, 
landfill gas, and solid waste. H.R. 6899 provides for a 1-year 
extension of the production tax credit for energy derived from wind and 
clean renewable energy bonds for electric cooperatives and public 
power. It also provides for incentives for the production of homegrown 
renewable fuels and tax credits for the purchase of fuel-efficient, 
plug in hybrid vehicles and it provides incentives for energy 
conservation for individual businesses and State and local governments.
  The bill expands domestic energy supply by ending the current 
moratorium which only allows drilling 3 miles offshore. The bill also 
increases domestic oil production across America and in Alaska.
  Regarding Alaska, this bill incorporates a modified version of the 
``Use It'' legislation that creates more stringent requirements that 
oil companies produce oil during the initial term of their lease. H.R. 
6899 mandates annual lease sales in the National Petroleum Reserve in 
Alaska to speed its development and oil and production. Importantly, 
the bill bans export of Alaskan oil outside of the United States. It 
also calls upon the Bush Administration to facilitate completion of the 
oil pipeline infrastructure into the National Petroleum Reserve in 
Alaska, and to facilitate the construction of the Alaskan Natural Gas 
Pipeline, which could create up to 100,000 jobs.
  H.R. 6899 provides the greatest energy efficiency and conservation of 
any other bill introduced before the Congress. This bill strengthens 
energy efficiency codes for buildings, provides incentives for energy 
efficient homes, and reduces transit fees for commuter rail and buses 
and expands service through $1.7 billion grants to transit agencies for 
the next 2 years. This is a real energy bill, and I urge its adoption.


                    MY FOUR AMENDMENTS TO H.R. 6899

  Mr. Speaker, I already briefly mentioned the language that my staff 
and I were able to get included in the bill. I would now like to take 
the opportunity to talk a little more at length about this language and 
explain why it is imperative that any comprehensive energy bill include 
this language. My language covers four areas.
  Critically, my language provides for the expansion of leases to 
offshore lands along the Outer Continental Shelf. This is important 
because it expands production and supply possibilities. This should 
alleviate the deficit of energy and should hopefully lead to lower 
energy prices.
  Second, my language addresses another critical issue: the ability for 
states to opt-in. Specifically, my language provides that states might 
opt-in to allow leasing off of its coasts by enacting legislation 
signed by the Governor or referendum. This is important because it 
gives States more latitude in the use and dispensation of energy along 
its coasts.
  Third, my language allows the Secretary of Interior to establish 
goals to ensure equal opportunity to bid on offshore leases for 
qualified small, women-owned, and minority-owned exploration and 
production companies and implement outreach programs for qualified 
historically underutilized exploration and production companies to 
participate in the bidding process for offshore leases. My city of 
Houston is the oil capital of the world, and as such, it has small, 
women-owned, and minority- owned exploration and development companies 
that would greatly benefit by outreach and leases that the Department 
of Interior could provide to them. I purposefully structured the 
language so that the Department of Interior would not be fettered and 
would have wide latitude in ensuring that money and leasing 
opportunities would be extended to underserved communities.
  Fourth, my language provides that the Secretary of Energy shall award 
a grant on a competitive basis to a consortium of institutions of 
higher learning for the establishment of a National Energy Center of 
Excellence to conduct research and education activities in geological 
and geothermal sciences, renewable energy and energy efficiency 
(including energy technology using clean coal, solar, wind, oil, 
natural gas, hydroelectric, biofuels, ethanol, and other energy 
alternatives), and energy conservation, including a special emphasis on 
environmentally safe energy.
  This consortium shall include at least two institutions of higher 
learning that are historically black colleges, hispanic-serving 
institutions, and tribally-based universities and colleges. This last 
piece is important because it ensures that minority-serving 
institutions benefit from the largess and capital that is set aside for 
energy and renewable research. It further ensures that these 
universities will develop top notch disciplines, programming, and 
educational infrastructure that will be used for energy development, 
renewables, and energy conservation. Energy development, renewables, 
clean energy, and energy conservation is the future, and it is here to 
stay. Minorities and other historically underserved populations must be 
encouraged to enter and thrive in these growing disciplines.
  I urge my colleagues to support this bill.
  Mr. PEARCE. Mr. Speaker, may I inquire of the time remaining for each 
side?
  The SPEAKER pro tempore. The gentleman has 48\1/2\ minutes remaining. 
And the gentleman from West Virginia has 44 minutes remaining.
  Mr. PEARCE. Mr. Speaker, I yield 2 minutes to the gentleman from 
Texas (Mr. Burgess).
  Mr. BURGESS. It's been a fascinating day, hasn't it?
  You have the votes to pass this bill, so congratulations. You'll pass 
it. But the bill is a ghost. It's going over to the Senate. It's dead 
on arrival. It will not do one thing for producing energy and American 
jobs for the American people.
  Now, there is almost no mention in this huge bill that we got at 9:45 
last night, almost no mention about new refineries. I think refineries 
were mentioned one time.
  Natural gas, I heard my friend from Oklahoma say natural gas is 
included in this bill. It's mentioned less than a half a dozen times. 
There is no title for natural gas in this bill.
  Nuclear energy, it's not here. I can't find it.
  Now, the polls currently show that faith in Congress, our 
congressional credibility is at an all-time low.
  You won an election 2 years ago on the basis of the fact that you're 
going to get us out of Iraq. You didn't do it. You're going to bring 
down gas prices. That didn't work. Most ethical Congress ever. I'm 
afraid not.
  And now the last thing was we are not going to drop large bills in 
the middle of the night into this House. We're going to do it the right 
way. Well, I'm afraid that's been lost as well.
  Now, why does it matter?
  Well, we have a subcommittee. We've had multiple hearings on energy 
over the past 18, 20 months. Mr. Boucher is

[[Page 19284]]

to be commended for the amount of hearings that he's had on this. But 
we didn't get to mark this bill up in subcommittee. Not one amendment 
came from a Republican at any time on this bill. We didn't see this 
bill in full committee.
  Now, there are things that we should do urgently; like we should 
protect our electrical grid in this country, which we're not doing in 
this bill. There's the urgency. Bring that bill to the House floor 
without going through subcommittee and full committee. That, the 
American people would understand.
  Well, notwithstanding what the majority leader has just told us, 
Paris Hilton will tell you, this is not rocket surgery. We do need all 
the above. Unfortunately, this bill does not provide that. I urge 
voting against this legislation.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to a valued member of our 
Committee on Natural Resources, the gentleman from Washington (Mr. 
Inslee).
  Mr. INSLEE. Mr. Speaker, nothing is more apt for Americans than the 
clean energy revolution that we will start with today's bill. Nothing 
is more apt for Americans because this bill depends on two very 
intrinsic American qualities. Those are the qualities of optimism and 
innovation. And we believe that this bill sets us on a course for 
innovation that will achieve for clean energy what we achieved in the 
space race of the 1960s.
  And I'd like to share why I'm optimistic about this. This is a 
picture I took a couple of weeks ago in Golden, Colorado, at the 
National Renewable Energy Laboratory, the center of our national effort 
on renewable energy. It's a picture of a photovoltaic cell. On the 
other side of this array is a 400-square-foot photovoltaic cell 
converting sunlight into electricity. That sunlight feeds down into 
these two cars that are plugged-in electric hybrid cars. This is a term 
Americans are going to get to know real well. They plug in. They use 
this solar-based power, and they will go 40 miles with zero gasoline. 
And then after you go more than 40 miles, they have a gasoline engine 
to go another 200 or 250 miles.
  Here's the stunning fact which they told me at the renewable lab. 
This panel, which can go on your roof, powers two cars in 8 hours to 
get that all-electric drive for a full 40 miles.
  We are in the midst of a transition. We are on the cusp of a great 
transition. It reminds me of another transition when we went from 
typewriters to software, and there were a bunch of optimists out in 
Redmond, Washington at Microsoft, in my district, that were optimistic 
about this new transition we were going to get into.
  Now, I will tell you this: I've heard some of my Republican friends 
saying ``drill, baby, drill.'' I think during that transition from 
typewriters to software, what they would have been saying is ``type, 
baby, type.''
  We know that we have to break our addiction to oil, not to continue 
it, and this bill is a comprehensive measure.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. RAHALL. I yield the gentleman 30 more seconds.
  Mr. INSLEE. Let's be clear. The Republicans who will vote against 
this bill today are voting against solar energy for Americans. They are 
voting against plug-in hybrid technology for Americans. They are voting 
against enhanced geothermal for Americans. They are voting against more 
wind energy for Americans. And this idea of drilling as a bridge to 
these technologies, it's a bridge to nowhere. It won't show up for 15 
years.
  We need this technology starting today. That's a future America 
deserves.
  Mr. PEARCE. Mr. Speaker, I yield myself 15 seconds.
  I would draw the attention of our viewers across America to look at 
the picture that the gentleman just presented to us. Make no mistake 
about it. The majority in this House wants to change your way of life 
to where you cannot drive the cars you drive today.
  I yield 2 minutes to the gentlelady from Minnesota (Mrs. Bachmann).
  Mrs. BACHMANN. For 21 months the Democrat-controlled Congress watched 
as gas prices increased over 76 percent on the American people. For 21 
months they sat in idleness as the American people became 70 percent 
dependent on foreign oil. They knew the American people paid an 
effective tax of $700 billion to foreign countries.
  For 21 months the Democrats presided while watching one-sixth of our 
economy, money and jobs going overseas. For 21 months the solution was 
obvious to anyone who was looking to win the energy battle for the 
American people, and it was this: Legalize American energy production, 
all of it, legalize it and have Congress get out of the way. Whether 
it's clean coal, natural gas, oil production, nuclear, alternative, 
conservation, the Democrats could have done every bit of this 21 months 
ago and been the heroes of the American people. They could have because 
they have been in charge. But they willingly, intentionally, with eyes 
wide open, chose not to.
  The Democrats defied the will of the American people, and now as the 
clock strikes midnight on the 110th Congress, with this sad chameleon 
they call an energy bill, the Democrats continue to defy the American 
people. But the truth is clear, this bill won't reduce the price of 
gasoline at the pump. The American people will suffer, as they have 
suffered under Democrat inaction.
  But let's throw the American people a lifeline. We can, because in 
November Americans can have their say, finally, and under Republicans 
and John McCain, they will be able to choose $2 a gallon or less for 
gasoline, or they can choose Senator Obama and the no-drill Democrats, 
and they can see gas climb to the heights of 5 or $6 gallon or more.
  The choice couldn't be more clear.


                Announcement By the Speaker Pro Tempore

  The SPEAKER pro tempore. The Chair would remind Members to address 
their remarks to the Chair, and not the television audience.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Illinois (Mr. Emanuel).
  Mr. EMANUEL. Mr. Speaker, for 30 years, since the first oil shock of 
1973, we've been facing an energy crisis in the United States. And 
let's be honest and level with the American people, both parties have 
missed opportunities to deal with it. And the American people hold all 
of us accountable.
  So I'm proud that this Congress, in its first time in less than a 
year, increased the fuel efficiency standards for cars, something 
that's been kicked around, talked about for 30 years. This Congress in 
its short, first year took action.
  And I'm proud that our Republican colleagues who claim to be for the 
all-of-the-above energy policy can vote for the most comprehensive 
energy policy and legislation in 20 years, what we have here today.
  Now, listen. You can be for drilling offshore. And this bill provides 
300 additional acres of drilling. But that is not a cure to our energy 
independence. It is not just drilling offshore, but it's also what we 
do onshore in our laboratories, our universities with our innovation 
and our technology for our energy independence.
  This bill provides that we invest in our renewable energy 
technologies and ends big subsidies for big oil companies. We require 
utility companies to use wind, solar and biomass to generate more 
electricity.
  What I'm most proud about is also what it does in the area of natural 
gas, which those who are in the industry see as revolutionary for their 
industry. Natural gas is 100 percent U.S. supply, 33 percent cleaner 
and 40 percent cheaper. And it provides the infrastructure to make sure 
that our auto industry can start to convert and start to use natural 
gas, something Europe has been doing and the United States has been 
lagging. And here's an energy source that today is available. Just in 
the State of Utah, drivers can pay $0.83 per gallon if they fill up 
with natural gas.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. RAHALL. I yield the gentleman 10 seconds.
  Mr. EMANUEL. So the question is before us, are we going to have an 
energy policy that keeps us wedded to the

[[Page 19285]]

past or begins to invest in our future? And this is the opportunity to 
do that.
  Mr. PEARCE. Mr. Speaker, I yield myself 10 seconds.
  I would point out that there is more stimulation in this bill for 
bicycles than nuclear power.
  I yield 2 minutes to the gentleman from Utah (Mr. Bishop).
  Mr. BISHOP of Utah. Mr. Speaker, when I was a young legislator in 
Utah, I was told that oftentimes the process we use in creating 
legislation is more important than the actual words of that 
legislation. Thus, here in Congress we have established a concept of 
regular order so that fair and competent legislation is brought forth 
that eliminates unintended consequences of poorly written provisions. 
So we in Congress review.
  And yet, by mutual understanding, the bill we have before us has had 
no public hearing, no committee work, no review, no amendments by 
Republicans or Democrats, rank and file, no reading of this bill since 
it was printed after everyone had left last night. It's not a 
comprehensive solution. It has the appearance of competence but is not 
a real solution to meet the needs of real Americans. It does not work.
  Let me give you one small example. The section on oil shale I 
originally thought was one of the bright lights in an otherwise dismal 
bill. And I'm sorry that my colleague--no, my colleague from Utah is 
still here. I congratulate him on his work.
  It removes the prohibition of oil shale development that this body 
callously placed in last year's appropriations act, despite a chorus of 
bipartisan opposition to do such. But rather than simply remove the 
prohibition and move forward, it replaces it with a mandate of States' 
actions to pass a law to allow it to take place, something I personally 
like, something I think the industry would support, but which also has 
potential of constitutional implications.
  There are other areas of this bill which have even more 
constitutional implications. And since this act has no severability 
clause, it simply means if one part of this bill goes down on 
constitutional issues, the entire bill goes down.

                              {time}  1915

  Rather than just take out the prohibition, it's almost as if we put 
in the margin a big sign that says, ``Look here to sue,'' so that 
outside agencies can do in court what some people have said they would 
like to do on the floor, which is not have a real solution.
  I am saddened because we could have done so much more. We could have 
done so much better, and instead, we will vote on a hollow shell of a 
bill.
  Mr. RAHALL. Mr. Speaker, it is my honor to yield to the lady that 
leads this body. I certainly commend her for the tremendous efforts 
that she's made meeting after meeting after meeting to bring us 
together as a caucus, often at much political sacrifice, including to 
her own desires.
  I yield 1 minute to the Speaker.
  Ms. PELOSI. I thank the gentleman for yielding and his recognition of 
the fact that this legislation is indeed a compromise. It isn't the 
bill that any one of us would have written individually, but it brings 
us together in consensus. I want to thank the distinguished chairman of 
the National Resources Committee, Mr. Rahall, for his extraordinary 
leadership on this bill.
  This is a difficult bill because we all had to come from different 
directions on it, and we've come to agreement.
  I want to also acknowledge the important work that was done by Gene 
Green, Congressman Gene Green of Texas; by George Miller, the Chair of 
the Education and Labor Committee; and John Dingell, the Chair of the 
Energy and Commerce Committee, all of whom who are cochairs of this 
important legislation.
  I would like to acknowledge Charlie Rangel, the Chair of the Ways and 
Means Committee for the provisions from his bill in this bill, and Neil 
Abercrombie who really tried to bring as many of the provisions of the 
legislation he was cosponsoring into this legislation so that it really 
did reflect the thinking of our colleagues on both sides of the aisle, 
if not to get the support from both.
  I also want to acknowledge Congresswoman Slaughter for her input. And 
Mr. Abercrombie has joined us. Thank you, Mr. Abercrombie. I'm pleased 
to acknowledge your great leadership on this, this step in the right 
direction with certainly more to come.
  I want to remind our colleagues or inform, for those who may not have 
been born yet, that in 1973 during that energy crisis, President Nixon 
became the first President to call for American energy independence. In 
his 1974 State of the Union address, President Nixon said that the 
United States should ``not be dependent on any other country for the 
energy we need to provide our jobs, to heat our homes, and to keep our 
transportation moving.'' He promised energy independence within 6 
years. That would be by 1980. In 1974, he had that vision.
  President Nixon was the first to make such a call, but certainly not 
the last. Practically every national leader in the intervening 33 years 
has called for energy independence.
  Today, this House of Representatives has the opportunity to take this 
country in a new direction on energy and make that energy independence 
happen. We have this opportunity with the comprehensive, I call it All 
American Energy Security and Consumer Protection Act.
  The legislation we debate today is a bold step forward that will help 
us end our dependence on foreign oil and strengthen our national 
security. And protecting the American people is our first 
responsibility, and so I list that first among the goals and the 
provisions of this legislation.
  The legislation is a result of reasonable compromise that will put us 
on a path toward energy independence by expanding domestic supply of 
oil drilled offshore, and expanding domestic supply of energy by 
investing in renewable energy resources. It will protect consumers with 
strong action to lower the cost of energy and to protect taxpayers by 
making Big Oil pay for its fair share of our transition to a clean, 
renewable energy future.
  It will ensure a clean, green energy future through energy efficiency 
and conservation. It will commit America to renewable energy and help 
create millions of good paying green jobs. It will do so by rearranging 
the financial relationship between the American people, their oil, and 
Big Oil.
  Right now I think that the arrangement is a real rip-off of the 
American taxpayer and the American consumer. And so we say in this 
legislation to Big Oil, if you want to drill--and to others, but 
particularly to Big Oil--if you want to drill in the Outer Continental 
Shelf, let's talk about that.
  We're in the position that we are today because for 8 years, 
President Bush has requested a moratorium on drilling in the Outer 
Continental Shelf. In recent months, he reversed his policy. And this 
is a reversal not only of his policy but of decades of policy that had 
prohibited drilling on the Outer Continental Shelf.
  So as a result of his lifting the moratorium on drilling, starting 
after September 30 at the end of this fiscal year, it will be possible 
for the U.S. Government to provide leases to companies to drill 3 
miles--3 miles--off the coast of our coastal States with no consent 
from the States. It will be 3 miles, leases given by the Federal 
Government.
  And that's why in order to remedy that, this legislation strikes a 
compromise and a balance by saying, yes, if you're going to drill 
offshore, it has to be 50 miles offshore and it has to have an opt-in 
by the State. The State has to agree that you can drill. The Federal 
Government can give leases to the private sector to drill 50 miles 
offshore.
  And it also says the following in terms of the financial arrangement. 
Right now, the status quo, which is what some of our Republican friends 
want to perpetuate, the status quo is the following: the oil belongs to 
the American people, and yet Big Oil drills for that oil subsidized by 
the U.S. taxpayer. At a time when Big Oil's enjoying record and 
historic profits, they

[[Page 19286]]

still insist that the U.S. taxpayer subsidize their drilling and have 
had royalty holidays of paying the taxpayer for the taxpayers' oil 
which they have been drilling.
  So what we're saying in this legislation is that day is over. Now if 
you want to drill, you're on your own. In the private sector, in the 
free market, you're on your own. The American people are not 
subsidizing that drilling. And, by the way, we want our share of the 
royalties. And lifting the subsidies and getting our royalties, 
including going back to the royalty holidays of the 1990s, by doing 
that we will be able to invest in America's energy future by using 
those funds to invest in renewable energy resources, whether it's wind 
or solar, biofuels, other clean alternatives.
  We'll be able to use that money from that offshore drilling, by now 
finally getting the taxpayers' fair share, to invest and provide more 
support for LIHEAP, the low income heating initiative, so important to 
so many, many families in America and even more so in this time of 
economic uncertainty. And to invest in our lands and conservation fund, 
some of the provisions which were in the original bill that Mr. 
Abercrombie was supporting. So we took up some of the investments that 
he would make from the royalties that we would recoup and also from not 
providing subsidies to Big Oil.
  Many of us have thought for a long time that there was something 
wrong with this relationship. Our oil, their profits, we subsidize, we 
don't get the full benefit of that. But it was only recently that we 
saw how wrong something was with that relationship. It tells us again 
and again why it is time for a new direction. And nothing demonstrates 
that more clearly, I think, than the recent scandal in the Bush 
Interior Department.
  On the Republicans' watch, Interior Department officials accepted 
football tickets, ski trips, golf outings, and other favors in return 
for rigging contracts to benefit Big Oil. They engaged in illicit 
behavior that gives new meaning to the words ``cozy relationship'' 
between the Republicans and Big Oil.
  These Republican officials, one of whom pled guilty just yesterday to 
corruption charges, were in charge of collecting billions of dollars' 
worth of oil and natural gas last year alone from companies allowed to 
drill on Federal lands and offshore. It just isn't right.
  So when I said earlier that this was a rip, it's a rip and it's 
corrupt, and it must be changed. I think all Americans believe that 
it's time for an oil change in America.
  The Democrats stand for that change. Democrats demand it. Republicans 
are demanding the status quo, but not all Republicans. Many have been 
involved, though they may not specifically approve of this particular 
bill, many of the provisions in this legislation were provisions 
advocated by Republicans in their bipartisan legislation with Mr. 
Abercrombie.
  The status quo, as has been suggested by some, will not bring down 
the price at the pump. The status quo will not protect taxpayers from 
subsidizing Big Oil, and the status quo will certainly not make America 
energy independent. It's time for a new direction. It's time for us to 
set aside partisan politics on this issue. This should not be an issue 
on which we are divided.
  The protection of our country by assuring energy independence, the 
creation of new jobs through a new energy green industry in our country 
with renewable energy resources, the assurance that we will never be in 
this position again because not only are we expanding the domestic 
supply of oil, but we are also investing in renewable and other 
alternatives; and also that, again, security, environmental protection, 
economic entrepreneurialship in this legislation and a moral 
responsibility to reduce our dependence on foreign oil and on fossil 
fuel, to do so in a way that reverses global warming, which in my view 
is a moral responsibility if you believe, and I think everyone does, 
that this beautiful planet is God's creation and we have a moral 
responsibility to preserve it and preserve it in a way that is fair to 
all of the people who inhabit this planet. And in our case, we're 
talking about the American people.
  So, again, this comprehensive energy package is a result of 
compromise in favor of sweeping and innovative solutions to America's 
energy future. I urge my colleagues on both sides of the aisle to join 
together to support a clean, renewable energy future by supporting this 
comprehensive legislation.
  Once again, I salute all of those who participated in bringing us to 
this compromise: some intentionally, some by the basic work that 
they've been doing in the Congress for a long time and may not, again, 
support this legislation today but have put their stamp of approval on 
many of the provisions that they had suggested in other legislation and 
which we have been pleased to pick up where we had bipartisan 
agreement.
  So I'm very excited about this. This is a very important day in our 
energy story for America. And I commend all who worked so hard, and so 
many people did. But we recognize it's only a first step. There are 
many more issues to be dealt with, more progress to be made, but we 
cannot wait for that to happen.
  In the meantime, I'm pleased that in this legislation we have our 
legislation related to the Strategic Petroleum Reserve which, if the 
oil is released, which we have asked the President to do, will 
immediately bring down the price at the pump within 10 days instead of 
10 years--which would be the length of time it would take to bring the 
price down for 2 cents. Two cents, 10 years; 10 days, our bill.
  The President originally resisted. Now he says he may release from 
the SPR not because Congress asked but because Big Oil asked.
  It's about time we got the leverage back to the American people, 
recognized our need to meet their needs, to protect the consumer and 
the taxpayer, to keep them safe with energy independence, to grow our 
economy through good green jobs, and to make sure that we never find 
ourselves in this situation by making investments in renewable energy 
resources.

                              {time}  1930

  Mr. PEARCE. Mr. Speaker, I recognize myself for 15 seconds before I 
recognize Mrs. Capito of West Virginia for 2 minutes.
  Mr. Speaker, we've just heard that we're going to sell oil out of our 
Strategic Petroleum Reserve in order to cure a marketing problem. That 
oil was put there for our national defense and now we're using it in 
pure marketing.
  I yield 2 minutes to Mrs. Capito.
  Mrs. CAPITO. I thank the gentleman for recognizing me.
  The Speaker, we just listened to her, and her leadership team had an 
opportunity to present this House with a truly bipartisan energy bill. 
Both she and the majority leader have talked about the compromises that 
they reached and how they worked on a compromise. I don't know who 
they're compromising with. They're compromising with themselves, 
negotiating with themselves.
  Instead, they chose to bring forth what I think is a blatantly 
partisan bill. It will increase energy costs in my State, and again, 
essentially ignores West Virginia, its people, its abundant supply of 
coal.
  I go back to the fact that I've listened to both the majority leader 
and the Speaker in their remarks, and not one mention of clean coal in 
both of their remarks.
  So let me be clear, in a time when West Virginians are making hard 
decisions based on their gas, electric and home heating needs, this 
bill offers them nothing more but Washington. All talk and no action.
  We know it's going to take a comprehensive plan to wean our Nation 
off of $700 billion worth of dependence on foreign sources of oil, but 
this bill just doesn't do the job.
  It includes a renewable portfolio standard that will send electric 
costs skyrocketing in a State like West Virginia by mandating difficult 
standards, all of this at a time when many of my constituents can 
barely afford gas or their heating bill.
  This bill doesn't invest in royalties for offshore exploration into 
alternative energy sources like clean coal

[[Page 19287]]

or renewable fuels. Coal-to-liquid has great promise to lead this 
Nation towards our energy independence.
  The American people gave the leadership of Congress a homework 
assignment to solve our energy crisis, and they responded by waiting 
till the last minute, hastily writing their bill, and delivering it 
late. Sadly, it fully deserves the ``F'' that the American people will 
be giving it.
  At a time when a solution demands real bipartisanship, this bill just 
doesn't cut the muster. I'm on the bipartisan bill. We worked night 
after night with no lobbyists, no leadership, no special interests, and 
we found good compromise in that bipartisan bill, and I'm proud of the 
efforts on both sides of the aisle where we joined together.
  With this empty shell of an energy bill, I'm afraid I'm disappointed 
and I'm afraid the American people will be, too.
  Mr. RAHALL. Mr. Speaker, I yield myself 1 minute.
  Mr. Speaker, reading the legislation will show that the strategic 
energy efficiency renewable reserve fund that we've set up--we 
explained the funding mechanism and how much earlier--would go toward 
accelerating the use of clean domestic renewable energy resources and 
alternative fuels. And an understanding of what alternative fuels is 
would lead one to know that that includes coal-to-liquid and clean coal 
technologies.
  In addition, we have a separate section that increases research, 
development, and demonstration of carbon capture and sequestration 
techniques, also clearly spelled out in the legislation.
  Furthermore, when we're talking about carbon capture and 
sequestration in this legislation, we do have language that 
specifically sets aside how the process is, that these grants will be 
made from this fund to go toward carbon capture and sequestration.
  We provide $1.1 billion of tax credits for the creation of advanced 
coal electricity projects and certain coal classification projects and 
we explain how that will be awarded.
  In addition, we ensure the solvency of the black lung disability 
trust fund, not a laughing matter to West Virginians.
  I yield 2 minutes to the gentleman from Illinois (Mr. Hare).
  Mr. HARE. I thank the chairman.
  Mr. Speaker, my constituents are frustrated and angry by rising 
energy costs and the impact on their businesses, their grocery bills, 
and their everyday lives. Today, we respond to that frustration and 
anger by considering the Comprehensive American Energy Security and 
Consumer Protection Act. I rise in strong support of this legislation 
that increases our domestic energy supply, invests in alternative 
fuels, and ends taxpayer subsidies for big oil companies.
  This important legislation includes several provisions to move us 
towards a 21st century energy policy. My friends on the other side of 
the aisle have called for increased drilling to capture more of our 
domestic resources. The bill does just that.
  Advocates for the environment have called on oil and gas companies to 
produce oil on Federal land to which they already hold leases or give 
up those leases. This bill requires them to do just that.
  After learning last week of the corrupt relationship between Big Oil 
and the Bush administration's Minerals Management Service, this bill 
strengthens oversight of the Interior Department.
  Most importantly, this bill launches a clean renewable energy future 
that creates new American jobs, specifically in my home State of 
Illinois.
  If this comprehensive bill isn't an all-of-the-above response to 
energy prices, then, quite frankly, I don't know what is.
  Mr. Speaker, I am proud of every energy vote I have taken in the 
110th Congress, from addressing oil speculation abuses, cracking down 
on price gouging by Big Oil, improving public transportation options, 
releasing millions of barrels of oil from the Strategic Petroleum 
Reserve, to increasing fuel economy standards in our vehicles and 
providing relief for consumers at the pump.
  The Comprehensive American Energy Security and Consumer Protection 
Act pulls many of these measures together, moving us closer to ending 
this energy crisis and establishing real energy independence.
  I urge all of my colleagues to support this incredibly wonderful 
piece of legislation.
  Mr. PEARCE. Mr. Speaker, I recognize myself for 15 seconds prior to 
recognizing Mr. Fortenberry of Nebraska.
  Two years ago when the new Speaker took over, we were promised a 
plan. Tonight, we're told that we're going in a new direction. The new 
direction: Sell off our Strategic Petroleum Reserve; provide more 
stimulus for bicycles than nuclear power; and the solar car that the 
gentleman from Washington showed us the picture of. That's the plan the 
American people are given while they're hurting at the pump.
  I would recognize Mr. Fortenberry for 2 minutes.
  Mr. FORTENBERRY. I thank the gentleman.
  Mr. Speaker, America needs, and is demanding from this Congress, a 
bold, new energy vision.
  We, as a Congress, have been presented with the opportunity of a 
generation: to step into the breach and deliver to the American people 
a victory over the vexing problem of dependence on foreign oil. Left 
unaddressed for far too long, it has compromised our national security, 
our economic security, and our environmental security. And now is not 
the time to retreat into the familiar trenches of partisan politics.
  Now is the time to establish a broad, comprehensive, new energy 
direction, and yes, I believe we should adopt long-term investments in 
a sustainable future. I support them: research and incentives for wind, 
solar, biofuels and geothermal. But we must also address, Mr. Speaker, 
the immediate problem of our overwhelming dependence on foreign oil.
  Let's have an honest debate about the full range of energy options in 
our portfolio. Increased use of domestic resources in an 
environmentally responsible way will promote our energy independence 
while bridging to a sustainable and independent energy future, fully 
integrating conservation, innovative technologies and a variety of 
renewable resources.
  Mr. Speaker, today, I believe, could have been a day of celebration 
instead of the rancorous political pushing and shoving. I am sure that 
many Members on both sides are eager for a bill, reached in true 
bipartisan fashion, yes, with the appropriate trade-offs and 
compromises but one that lays a new energy vision.
  What a message we could have sent to our own people, the financial 
markets, to innovators and entrepreneurs, to the world oil markets, 
that America has chosen a new way and we will no longer be captive and 
vulnerable. Instead, we have a bill that is the product of dysfunction 
in this House, Mr. Speaker. I just believe we can do better.
  Mr. RAHALL. Mr. Speaker, I yield 1 minute to the distinguished 
gentlelady from Arizona (Ms. Giffords).
  Ms. GIFFORDS. Mr. Speaker, the bill before us this evening is a 
strong response to one of the most challenging issues that faces our 
country: securing American energy independence. Meeting this challenge 
requires the comprehensive approach on the floor tonight: drilling, 
conservation, and renewable power.
  I am particularly pleased that this bill contains an 8-year extension 
of the solar investment tax credit, or the ITC. Solar power represents 
one of our Nation's best hopes for a clean, secure, and sustainable 
future. It will provide powerful economic benefits in my district in 
southern Arizona but to the rest of the country as well.
  According to a new study by Navigant Consulting, an 8-year extension 
of the solar ITC could lead to more than 440,000 permanent jobs and 
attract $232 billion in investment through 2016.
  I thank the leadership. I thank the chairman. I thank those who have 
worked so hard at listening to the people of southern Arizona and 
across this country about this newer, brighter future.

[[Page 19288]]

  I urge my colleagues on both sides of the aisle to support this 
balanced bill and call on our colleagues in the Senate to pass this 
legislation as well.
  Mr. PEARCE. Mr. Speaker, I would yield 2 minutes to the gentleman 
from Texas (Mr. Hensarling).
  Mr. HENSARLING. Mr. Speaker, since the Democrats took control of 
Congress the price of gas has increased 75 percent. Mr. Speaker, their 
first response was to declare a 6-week vacation while the American 
people suffered. Republicans spoke out. The American people heard. They 
demanded action.
  So now what do we have, Mr. Speaker? In the dark of night, we have 
produced a 240-page nonenergy energy bill, with no amendments, no 
substitutes, no committee hearings, supposedly from a Speaker who 
promised us the most open, democratic, and fair process known to 
mankind. These are strong-arm tactics that are more befitting of Hugo 
Chavez's Venezuela than they are the United States of America.
  Mr. Speaker, this bill does not produce American energy. It is a 
sham. It is a fraud. There are no new refineries, no clean coal, no 
ANWR, no nuclear, and regardless of what they say, Mr. Speaker, no 
production of our deep sea resources.
  And, in fact, this bill makes matters worse. It would permanently ban 
the development of our oil and gas resources on almost 88 percent of 
our offshore resources.
  You know, it's ironic, Mr. Speaker, if the Democrats would do 
nothing--and certainly, they've had lots of practice doing nothing--
this moratorium on development would go away in just 2 weeks. Decades 
and decades of American energy, oil and gas in the ground, ready to be 
developed, but the Democrats won't let us do it.
  In fact, this has called the publication Roll Call to ask, ``Is this 
just an elaborate exercise to give their Democrat Members a heaping 
dose of political cover?'' The answer, Mr. Speaker, is ``yes.''
  We need all of the above. We need conservation. We need renewables. 
We need alternative energy. But we need more American energy, too. 
Democrats view our oil and gas resources as toxic waste sites. 
Republicans view them as valuable natural resources that can be used to 
ease pain at the pump.
  Vote against that bill. Vote for American energy.
  Mr. RAHALL. Mr. Speaker, I yield 4 minutes to the gentleman from Utah 
(Mr. Matheson) who's been very instrumental in helping us develop this 
piece of legislation, especially in regards to the oil shale.
  Mr. MATHESON. Mr. Speaker, I thank the chairman, both for yielding 
the time, but more importantly I thank the chairman for his leadership 
on putting together a bill that really, I think, speaks to a number of 
issues that we all care about.
  It's no surprise we're less than 50 days before an election that the 
rhetoric out here on the House floor may get a little hotter than 
usual, and on an issue as important as this, I think that's 
unfortunate.
  I think if we can, for just a few moments, maybe set that aside and 
really take a look at what this bill is and talk about what's in the 
bill, I think that would be productive, because, you know, this bill 
actually takes ideas and clauses and sections from a lot of different 
bills that have been introduced by a lot of Members of Congress. There 
have been all kinds of energy bills introduced by Republicans, by 
Democrats. This particular bill we're talking about tonight 
incorporates a lot of those ideas, and that's a good thing, and it 
reflects a cross-section of the House of Representatives in terms of 
point of view.
  If we take a look at this bill, you will see that there are Democrats 
and Republicans who could actually come together and agree on a lot of 
these things. I suspect with the election coming up we may have more of 
a partisan nature on this vote than we would like. At the end of the 
day, I think we all spent a lot of time in August meeting with our 
constituents. We all have had the experience of going to the pump and 
paying a lot more than we are used to and a lot more than we like, and 
we've all felt the pain of that process. We've talked to a lot of our 
constituents who have also felt the unease of that circumstance, and 
they are anxious about looking for opportunities to move beyond that.
  That's what we're looking to do. I don't think my constituents think 
the government can wave a magic wand and solve all this. When I talk to 
my constituents, they know that this is a complicated issue, that it is 
going to take a comprehensive approach, and a lot of the solutions are 
going to come not necessarily from government but from the private 
sector, the innovators in our country. That's why this country has 
always done so well in global competitions through innovation.
  I've met with various businesses in my own congressional district 
just in the last few weeks who are making remarkable progress on 
technological advances, and it's exciting. It's invigorating. We should 
be optimistic about the future when you see what's going on out there 
in the private sector right now to help new technology move forward. We 
shouldn't be on the blame game of who's responsible for this.

                              {time}  1945

  Our caucus leader, Mr. Emanuel, said that the oil crisis first 
started 35 years ago with the 1973 oil embargo. Different parties have 
been in power in the White House and in the Congress, and we can look 
back in hindsight and say there may have been a lot of decisions that 
should have been made but weren't, or other actions that should have 
happened but didn't.
  The blame game is not particularly productive. What we ought to talk 
about doing is how do we move forward as a country? How do we set 
public privacy that allows the private sector to innovate? How do we 
make progress with new technology? How do we take ourselves to a new 
position where we are no longer dependent on foreign energy? That's the 
type of discussions I think most people around the country want us to 
have. That's the type of discussion we ought to be having here on the 
floor tonight. And I'm not hearing enough of that, quite frankly, from 
both sides of the aisle.
  This bill does increase production. It opens up substantial amounts 
of the offshore resource for exploration. The bill also includes oil 
shale production. A lot of people on the other side of the aisle said 
it does not, but it does. It eliminates the moratorium. It gives the 
States the ability to opt in to do that. It is a huge potential 
resource.
  It includes the important tax credit extensions that so many people 
in this body on both sides of the aisle support. Oh, I know there are 
things in this bill that probably every Member of Congress could come 
up with something they don't like. I'm sure every Member of Congress 
could come up with things they would like to see in this bill that are 
not in it tonight. When you try to put together a consensus bill, 
that's the nature of the process.
  But this is an important step. It's a step that allows us to say we 
are moving ahead with domestic production, we're moving ahead on 
accruing new technology, we're moving ahead on trying to reduce our 
dependence on foreign supply.
  Again, I commend the chairman for his leadership. I ask everyone to 
support this bill.
  Mr. PEARCE. Mr. Speaker, I recognize myself for 10 seconds before 
recognizing Mr. Johnson of Texas for 2 minutes.
  Mr. Speaker, this bill taxes American refinery jobs and does not tax 
foreign refineries. So we're giving the advantage to foreign jobs and 
we are hurting American jobs.
  Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. Sam 
Johnson).
  Mr. SAM JOHNSON of Texas. The American people want, need, and deserve 
a Congress that responds to their needs and acts diligently on their 
top priority. Sadly, the Democrats in Congress, beholden to their 
radical leftist interests, have blocked progress and will not let us do 
the job that the American people sent us to Washington to do--find real 
energy solutions.
  Ironically, the only border fence the Democrats seem to care about is 
the

[[Page 19289]]

fence they want to put up around the areas where we can't explore for 
oil. That's a disgrace. Solving our energy crisis means tapping all of 
America's resources for America's future to create American jobs and 
American prosperity. Folks are sick and tired of paying around $4 a 
gallon for gas. They're fed up with relying on foreign countries and 
brutal dictators to supply our energy needs. Americans have had it with 
a Democrat leadership who told the Congress to take a 5-week vacation 
instead of staying around to do their jobs.
  The Democrat bill before us today is a sham. They're refusing to 
allow us to tap into our own home-grown energy resources and 
discouraging investment in future energy supply. I'm here to tell you, 
in Texas, this bill is all hat and no cattle.
  On October 1, the ban on offshore energy exploration on the Outer 
Continental Shelf expires. This bill would put the lid on the OCS with 
no progress in sight. However, today's bill puts excessive rules and 
regulations back on the OCS, landing us basically back where we 
started. That's not what I call progress.
  We owe it to the American people to get this one done right. We need 
to open up the Outer Continental Shelf. We need to allow States to 
share the revenue of oil exploration. We need to tap Alaskan areas that 
hold potential for domestic energy resources, not just the parts 
cherry-picked by the Speaker.
  We must be open to oil shale, clean coal, nuclear, and renewable 
energy sources like wind and the sun. We don't need more bureaucracy, 
we need more innovation, and we need it all.
  I'm urging my colleagues on both sides of the aisle to work together 
to come up with real energy reform for our children, grandchildren and 
America's future.
  Mr. RAHALL. Mr. Speaker, I yield myself 15 seconds.
  The previous gentleman has once again referred to the so-called ``5-
week vacation'' during the month of August--a time period that we all 
have enjoyed with our families and working in our districts--without 
mentioning the fact that for the 90 days prior to that August district 
work period, Republicans called for 18 motions to adjourn this House, 
and they called for two motions today to adjourn this House without 
consideration of this bill.
  Mr. Speaker, I yield 2 minutes to the gentlelady from California (Ms. 
Loretta Sanchez).
  Ms. LORETTA SANCHEZ of California. I thank the kind chairman for not 
only allowing me to speak on this, but also for all the work that 
you've done to put this together.
  I rise today in support of the Comprehensive American Energy Security 
and Consumer Protection Act.
  A lack of action by the previous Republican-led Congresses and 
policies of the Bush Administration have led to skyrocketing gas prices 
while Big Oil companies are earning their largest profits in American 
history. We need to act now. We need to pass a balanced energy bill, 
which is exactly what H.R. 6899 is.
  Many Americans are facing financial hardship because of our country's 
energy struggles. This bill expands domestic drilling, it protects 
States' rights to maintain control over their shores, and it allows 
America to move towards the future by investing in new sources of 
energy.
  Despite some of the speeches we have heard on the floor today, the 
American people and the States are not unanimously in favor of an 
offshore drilling free-for-all.
  The looming expiration of the offshore drilling ban on September 30 
would allow drilling as close as three miles offshore in my home State 
of California. That's very concerning for Californians who are 
committed to protecting our shores from any drilling. And I support 
their sentiment.
  This bill provides a compromise, ensuring that States like California 
can opt out of offshore drilling. Quite frankly, it seems like those 
people who would be for States' rights would support this provision 
that ensures that States are involved in the decision of whether to 
drill between 50 and 100 miles off of their shores.
  In addition, the remaining Outer Continental Shelf beyond the 100 
miles would be open to oil and gas leasing. As you might imagine, that 
doesn't thrill Californians, but this is a compromise; it's a 
compromise that gives States control over the waters closest to them 
while also advancing the Federal drilling interests further offshore.
  In addition to the drilling provision, this bill will help enhance 
our national security and move toward energy independence by investing 
in renewable sources of energy. This legislation expands and extends 
tax incentives for renewable electricity, energy such as solar and wind 
and plug-in hybrid cars and energy-efficient homes and buildings and 
appliances.
  I urge everybody to vote for this bill.
  Mr. PEARCE. Mr. Speaker, I yield 2 minutes to the gentleman from 
Arizona (Mr. Flake).
  Mr. FLAKE. I thank the gentleman for yielding.
  You know, a lot of us who spent time at home hoping that we would 
come back here and vote on a serious piece of legislation are 
disappointed here. This is not a serious piece of legislation. This is 
a piece of legislation that seems to be geared simply to give some 
people some cover for the upcoming elections.
  If we had a serious piece of legislation that would provide for 
allowing us to exploit our own resources, it would allow States to 
share in the revenue generated by offshore drilling. Without allowing 
that, you simply guarantee that no State will opt in. So there is a lot 
of bait and switch here going on.
  It seems that the only recycling in this is a familiar pattern of 
loading the bill up with a lot of items so you can get votes from here 
and there. For example, one of the spending programs is a National 
Consumer Awareness Program to educate the public on the environmental 
and energy benefits of public transportation. That's not a serious bill 
about our energy crisis. This seems to be a San Francisco bill with New 
York sensibilities.
  And speaking of New York, there is a big fat item in for New York, 
about a $2 billion item which allows for the so-called Liberty Zone. 
This provision would allow New York City to keep $2 billion worth of 
the employers' share of payroll taxes to invest in transportation 
projects. That's a specific limited tax benefit for one entity here. 
That's an earmark by all definitions. And yet nobody has been able to 
explain--and we sought this morning, we sought all day to have somebody 
explain what that has to do with our energy future. Instead, it was 
just put in the bill to try to get a vote from here and there.
  Again, this is not a serious piece of legislation. It is meant to 
provide political cover. It should be rejected. And, hopefully, as the 
moratorium goes off, we will get to really addressing our energy 
future.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Texas (Mr. Chet Edwards).
  Mr. EDWARDS of Texas. Mr. Speaker, when it comes to reducing gasoline 
prices now, this energy bill does something important, something that 
Republican bills refused to do. This bill will release onto the market 
10 percent of the Strategic Petroleum Reserve, which already has 700 
million barrels of oil in it.
  By dramatically increasing the supply of oil onto the market this 
year, we will drive down the price of oil, which is being kept 
artificially high by oil speculators who don't produce anything except 
profits at the expense of average working families and businesses.
  Just look at the facts. In 1991, when former President Bush released 
just 17 million barrels of oil from the SPR, oil prices dropped by 33.4 
percent in just one day, 33 percent in one day. In 2000, when President 
Clinton released oil from the SPR, oil prices dropped by 18.7 percent. 
The fact is that releasing oil from the SPR is a proven way to drive 
prices down quickly, and that's why this bill mandates the release of 
70 million barrels of oil.
  Now I can see why oil speculators don't like the idea of lower 
prices. I

[[Page 19290]]

can see why ExxonMobil doesn't like the idea of lower prices. I can't 
quite see why my Republican House colleagues have voted against 
releasing oil from the SPR earlier this year. And none of their bills 
include this idea. It makes one wonder just whose side are they on now. 
Well, I'm going to be on the side of families and businesses in America 
who want lower oil prices today, not 20 years from now.
  The Republican bill says to the patient that's hemorrhaging, well, 
help is on the way 10 or 20 years from now. And the patient is 
hemorrhaging and the American economy, businesses and families are 
hemorrhaging economically today, they need and deserve help today. 
Let's vote for this bill tonight. And let's help Americans this year by 
lowering energy and gasoline prices.
  Mr. PEARCE. Mr. Speaker, I yield 2 minutes to the gentleman from Iowa 
(Mr. King).
  Mr. KING of Iowa. I thank the gentleman from New Mexico for yielding.
  The Strategic Petroleum Reserve, I think it's named exactly what it 
is. Why, at a time when we have hurricanes that have hit the gulf 
coast, that's a time we might want to have to tap into the Strategic 
Petroleum Reserve. When we've got Putin sitting over in Georgia, 
Ahmadinejad threatening to close the Straits of Hormuz and we're 
opening up the Strategic Petroleum Reserve for what, for political 
strategy? Not for strategy for the security of the United States of 
America. That defies logic, I would say.
  And to swap out sweet Texas crude for heavy Venezuelan oil at the 
same time also defies logic to track this. Why would anybody come to 
the floor and defend opening up the Strategic Petroleum Reserve?
  But, Mr. Speaker, I came here to address this overall energy piece. 
And first, I'm for all-American energy all the time. I want to open up 
all of it. And I'm also for an open process, not for a 290-page bill 
that hit the presses last night at 10 o'clock and the Rules Committee 
at 10:45. How in the world could they evaluate it? And furthermore, 
what's the purpose of this constitutional process if there is no 
subcommittee, no committee, no amendments allowed anywhere along the 
line, amendments denied at the Rules Committee as well, a closed 
process--yes, an open debate for 3 hours, but not a process that allows 
perfection?
  So it seems to me that we've handed the entire authority of the 
United States Congress over to the Speaker from San Francisco, who 
writes a policy, 290 pages, that doesn't do anything for us.
  And I would add, Mr. Speaker, that even the Outer Continental Shelf, 
if we do nothing, it opens up. If this bill passes and becomes law, 
then it blocks out the first 50 miles, and litigation blocks that out 
and all of the rest.
  I have here a copy of the Federal Code. This is the legislation that 
ended litigation on the North Slope of Alaska in 1973. That's what it 
took. No one got through the environmental litigation; it was an act of 
Congress. If we don't have an act of Congress, we're not going to get 
through this litigation, and all of our energy is going to be locked 
up, Mr. Speaker.
  So this bill does nothing for corn ethanol, coal, ANWR, nuclear, the 
first 50 miles, oil shale, natural gas, hydroelectric, or the 
litigation that's blocking it.

                              {time}  2000

  Mr. RAHALL. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from 
North Carolina (Mr. Etheridge).
  Mr. ETHERIDGE. Mr. Speaker, I rise tonight in support of H.R. 6899, a 
comprehensive plan to use our Nation's resources and Americans' know-
how to reduce prices and to free our Nation from the grips of foreign 
oil.
  This legislation invests in renewable energy sources such as 
cellulosic ethanol, biomass and soybean diesel, creating good-paying 
jobs here at home and growing our rural economies. This legislation has 
opened up the Outer Continental Shelf. It has renewed drilling while 
demanding that oil companies use the leases they already have that have 
been issued or lose the leases to other oil companies that will 
actually produce oil and gas. It is time to end the giveaway to big oil 
companies that are reaping record profits while my folks in North 
Carolina and their families are struggling to afford to fill their own 
gas tanks. Today's bill does just that.
  This legislation puts our Nation on a path toward a sustainable 
energy future through greater energy efficiency and conservation. This 
legislation is for the people of North Carolina and for America who 
would rather grow their own fuel instead of sending billions of dollars 
to the Middle East.
  Mr. Speaker, I urge my colleagues to vote in favor of this 
progressive, futuristic piece of legislation to free America.
  Mr. Speaker, I rise tonight in support of 6899, the Comprehensive 
American Energy Security and Consumer Protection Act.
  H.R. 6899 will increase American oil production, invest in renewable 
energy sources and new efficiency technology, end giveaways to big oil 
companies, and create jobs here at home. This legislation puts our 
Nation on a path toward energy independence through greater energy 
efficiency and conservation, and lowers the price average Americans 
consumers pay for the energy they need.
  For too long, this administration and the Republicans in Congress 
have relied on a single approach to our Nation's energy policy, 
allowing big oil companies to decide when and where to drill, while 
failing to ensure that they pay their fair share to the American people 
for the use of our federal lands. For too long the major oil companies 
have enjoyed the highest profits ever recorded at the expense of the 
American consumer, all while utilizing only a fraction of the Federal 
land available to them for drilling. This has only served to increase 
our reliance on foreign oil.
  The bill Democrats are proposing today represents a change in the 
direction for our Nation's energy policy. H.R 6899 puts our Nation on a 
path towards a sustainable renewable energy future by eliminating 
unnecessary tax breaks to oil companies and using these funds for 
research into alternative fuels and renewable energy and efficiency tax 
incentives. We can put American know-how to work, strengthening our 
economy and creating good-paying jobs here at home instead of $700 
billion each year to the Middle East. We can use the resources of rural 
America to grow energy right here at home and strengthen our 
communities.
  Finally Mr. Speaker, H.R. 6899 has shown that the Democratic Congress 
has listened to the American people and not the big oil companies. This 
is comprehensive legislation that includes a compromise that will 
responsibly open the Outer Continental Shelf, OCS, for drilling, while 
demanding that oil companies use the leases they have already been 
issued or lose these leases to oil companies that actually want to 
produce oil.
  This legislation gives States the authority to allow drilling from 50 
to 100 miles offshore and makes all OCS waters beyond 100 miles 
immediately available for oil exploration. This puts our resources to 
work to meet our Nation's needs while at the same time protecting our 
coasts.
  I know how high energy prices are hurting American families. This 
bill makes important changes to improve our energy supply and reduce 
costs. This is a bill that we can all support on behalf of the American 
people. I urge my colleagues to vote in favor of H.R. 6899.
  The SPEAKER pro tempore. The gentleman from New Mexico (Mr. Pearce) 
has 29\1/4\ minutes remaining. The gentleman from West Virginia (Mr. 
Rahall) has 23\3/4\ minutes remaining.
  Mr. PEARCE. Mr. Speaker, I would yield 2 minutes to the gentlewoman 
from Virginia (Mrs. Drake).
  Mrs. DRAKE. Actually, Mr. Speaker, I'm disappointed to be standing 
here tonight, discussing the bill that we're discussing, and I really 
wonder what the Americans who are sitting at home watching our debate 
tonight are thinking. From one side, they're hearing this is the best 
thing that has ever happened to America. From the other side, they're 
hearing what this bill is really all about.
  I represent Virginia's Second Congressional District. That's the 
entire coastline in Virginia--the Atlantic coastline. For the 4 years 
that I've served in Congress, 2 years of those were on the Natural 
Resources Committee. I worked on this issue of the Outer Continental 
Shelf. I can't tell you how disappointing it was to know that the 
rumors I was hearing over the weekend were true and that, yes, it would 
open up the Outer Continental

[[Page 19291]]

Shelf on paper but not in reality, because what this bill does is it 
says, from 50 to 100 miles, yes, States, you may opt in. However, 
Virginia and every other coastal State, you will receive no royalties 
for doing that.
  Now, when you look at the Gulf States--Alabama, Mississippi, 
Louisiana, Texas--37\1/2\ percent of those royalties go to those 
individual States. I don't think that this Congress believes in 
treating our States differently.
  So, in discussing this bill, the reality of this bill will be that 
States will say ``no'' because why would a State agree to be treated so 
completely differently? So the reality becomes industry can go harvest 
this resource at 100 miles out. The problem is that's very expensive; 
it's much more dangerous, and we know the bulk of the resource in the 
Outer Continental Shelf is within 50 miles of the coast.
  So what we're saying is, yes, America, we're going to do it, but in 
reality, no, America, it won't work. I think Americans are smarter than 
that, and Americans today understand that we have vast resources in 
this country that we've blocked. It's time for us to have a solution to 
open our American energy, to meet our needs and to treat our States 
fairly.


                Announcement By the Speaker Pro Tempore

  The SPEAKER pro tempore. Let the Chair remind Members, because it has 
happened three times during the debate, that Members should not traffic 
the well while another Member has been recognized and is in the process 
of speaking. Members should not approach the microphone in the well 
while another Member is speaking. It's discourteous, and Members owe 
better than that to each other.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the gentleman from 
North Dakota (Mr. Pomeroy).
  Mr. POMEROY. Mr. Speaker, I'm from North Dakota. I can understand why 
someone from Virginia would want the State of Virginia to get a lot of 
money for drilling more than 50 miles out, but you know, from where I 
come from, when you're past 50 miles off the coast, I'm not thinking of 
Virginia; I'm thinking of ocean. When you're dealing with leases owned 
by the United States of America, I think of resources that ought to 
come to the United States of America.
  By the time this administration is done bailing out Wall Street, we 
may be looking at a fiscal deficit this year of $500 billion. Sure, it 
would be nice to just cut a big, old slice and give it to States here 
or to States there, but what about the Federal Treasury for heaven's 
sake?
  I'm from a State that has got some oil. I'm very proud of what's 
going on in North Dakota. We've got a play called the Bakken shale 
play. They estimate there are 4 billion barrels of recoverable oil, 
some of it on U.S. leased land. North Dakota is not getting a big, old 
slice of that, but we're sure generating a lot of economic activity. 
Man, it's making our State's economy hum, and the economic activity of 
this drilling off the coast is going to make a lot of the economies of 
these States hum.
  I can sure understand. Look, if I were from Virginia, I'd be saying, 
``Hey, give us some money. Give us some of this.'' I understand that, 
but as a Nation, this year alone, it's going to run potentially $500 
billion in the red. Don't you think we have some responsibility to our 
Nation, to all of the States and to our children?
  You know, I like this bill, in my coming from an energy State, 
because it has got so many things in here that are positive. I 
mentioned our contribution in oil, but we also have a major wind 
dimension to our State. They call us the Saudi Arabia of wind. If 
you've ever been up to the high prairies of North Dakota, you'd know 
what they're talking about. We need to continue the tax support for the 
drilling-wind energy, and it's in this bill.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. RAHALL. I yield the gentleman an additional 30 seconds.
  Mr. POMEROY. There is one other thing I wanted to mention. We're 
sitting on 800 years of lignite coal at present consumptive rates. The 
provisions of this bill that deal with trying to get clean coal 
technology so that this can continue to be an abundant, affordable 
component of our energy sources while trying to meet new environmental 
concerns is going to take investment. It's in this bill. This bill is a 
diverse bill--oil, renewables like wind and clean coal. This bill 
deserves your support. I hope you will.
  Mr. PEARCE. Mr. Speaker, I would yield 3 minutes to the gentleman 
from Texas (Mr. Barton).
  Mr. BARTON of Texas. Mr. Speaker, I would point out for those States 
that are not coastal States, if they have Federal or State lands that 
have mineral development or hydrocarbon development, those States do 
get a royalty share if it's public. Now, if it's on private land, then 
the royalty goes to the private landowner, but if it's on public land--
State or Federal--and it's on an onshore State, there is a royalty that 
the Federal Government pays to the State.
  We are here this evening because this is the climactic day, 
apparently, or evening on whether we're going to have a domestic energy 
production program for America that comes out of this Congress. The 
bill before us pretends to be just that bill.
  The problem is in section 101. The first title of the bill is a 
leasing prohibition bill. There are so many prohibitions throughout the 
bill that, in point of fact, when you sort it all through, you have tax 
increases on coal because there's an existing coal tax that is set to 
expire in 2014, and it's extended to 2018. You have huge prohibitions 
against existing oil companies bidding on any of these new leases that 
might eventually come up. If you substitute Hollywood for Big Oil, 
that's like saying we won't let George Lucas or we won't let Steven 
Spielberg produce another movie because Star Wars or something like 
that made so much money the last time, which is simply silly.
  We want our major oil companies to be out there producing and 
developing these leases because they're the ones most likely to 
actually find something and to produce it in a cost-effective fashion. 
I would point out that, for every dollar of profit our major oil 
companies make, they pay 3\1/2\ times that in taxes. It's a 3-to-1 
return to the taxpayer when an oil company actually finds, develops, 
produces, and sells energy for America.
  The bill before us has absolutely no permitting reform. As 
Congressman Shadegg has pointed out, if you eliminated all of the 
moratoria and just did that and really let any area that's in the 
public domain be leased, it still wouldn't be developed because the 
national environmental groups preemptively file these lawsuits.
  If you really want to have development and production, we have to do 
something on permitting reform, and that is not in this bill either. We 
really do need to be working together. Congressman Abercrombie and 
Congressman Peterson have developed a bipartisan bill that, I believe, 
has over 100 cosponsors, I would assume, equally divided between the 
Republicans and the Democrats. Very little of that bill is in this 
bill.
  We simply must stop posturing politically and must really start 
developing good, sound public policy. The way to do that, in my 
opinion, would be to defeat the base text, to vote for a motion to 
recommit or to send the whole thing back and start over, I guess, next 
week with a clean sheet of paper.
  Vote ``no'' on the bill that's before us.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the gentleman from New 
York, a valued member of our Natural Resources Committee, Mr. Hinchey.
  Mr. HINCHEY. Mr. Speaker, I want to express my appreciation to 
Chairman Rahall for his leadership and for the good job that he has 
done with this bill and to Speaker Pelosi for her leadership in putting 
this together.
  It has taken some time, but nevertheless, we have now a good, 
forward-looking piece of energy legislation, and it's high time. We 
know that we have, roughly, 3 percent, actually less, of the known oil 
reserves around the world,

[[Page 19292]]

and we are now importing about 70 percent of the oil that we're 
consuming. Obviously, just those numbers tell us clearly that we have 
to be moving in a different direction.
  So this bill makes it a lot easier for us to drill for our own oil, 
and it makes that oil more accessible. Already we've seen what has 
happened. The price of a barrel of oil has dropped down by more than 30 
percent even though a price of a gallon of gasoline has dropped only by 
12 percent, which is interesting since the oil companies are continuing 
to exploit the situation.
  The fact of the matter is and, I think, one of the main parts of this 
bill which really needs our attention is the way in which it is moving 
us toward energy independence, energy independence on alternative 
renewable energy, which this bill opens up in a way that has never been 
opened up before. That is extremely positive and very good for us.
  What we really need here is a new industrial revolution, an 
industrial revolution which will enable us to develop all of the energy 
that we need from solar, from geothermal, from wind.

                              {time}  2015

  I think solar is the primary way, and that has been obvious to a lot 
of people, including somebody like Thomas Edison in 1933, who said it 
very clearly back then, solar energy is the one reliable form of 
energy. It ought to be increasingly clear to all of us now. And this 
bill opens that up. It is going to make solar energy real, significant, 
less expensive, and move us toward energy independence. And at the same 
time it does that, it will have a very positive effect on our economy. 
The likelihood is over a relatively few years, if we do this properly, 
solar energy will produce more than 1 million jobs in America.
  So I thank you for the job that you have done. You are finally moving 
us in the right direction.
  Mr. PEARCE. Mr. Speaker, I yield myself 15 seconds prior to yielding 
to Mr. Scalise 2 minutes.
  I would point out, Mr. Speaker, that the carbon footprint of solar is 
tremendously higher than that of wind. It is exponentially higher than 
the carbon footprint of nuclear. So while we are trying to clean up the 
environment, we are dumping now solar carbon into it.
  Mr. Speaker, I yield 2 minutes to the gentleman from Louisiana (Mr. 
Scalise).
  Mr. SCALISE. I want to thank my colleague.
  I am glad in one sense that we are finally having a real debate with 
people on both sides of the aisle. For the last 5 weeks, Republicans 
have been here debating this issue. For the last 4 months, we have 
actually had a proposal on the table.
  What is very unfortunate is we hadn't seen a formal proposal by our 
friends on the other side until 10 o'clock last night. The bill was 
filed by dark of night, no inclusion of the membership on the other 
side, no bipartisan agreement. And yet now the bill is going to be 
thrown up here with no ability to offer amendments to the most 
important issue facing our country today, and that is solving this 
national energy crisis.
  If you want to complain about Big Oil profits, you know how you can 
lower the profits of oil companies? You can increase the supply of 
American oil, which will immediately reduce the price of gas at the 
pumps. And, by the way, then their profits fall down.
  But we need to be mostly concerned about what we can do to help the 
American consumer, and that means increasing the American supply. This 
bill does nothing to increase American supply. And you don't have to 
just ask me, you don't have to ask my Republican colleagues. You can 
ask my Democratic colleague, Senator Landrieu, across the aisle; 
Senator Landrieu, who said this bill, the Democrat House liberal energy 
bill, is dead on arrival in the Senate because of the provisions in the 
bill that literally will allow no drilling to occur to help increase 
American supply, to reduce our dependence on Middle Eastern oil.
  Now, if you want to be relying on OPEC, this is your bill. This is 
the bill that takes away all of our leverage so that we can finally 
tell OPEC we are moving away from our dependence on Middle Eastern oil, 
we are not going to need you anymore, and then we have the money from 
all the billions that will be generated to bridge ourselves into all of 
the renewables we are trying to achieve in the American Energy Act.
  This bill won't get us there, though, because by taking away revenue 
sharing, which, by the way, for States like Louisiana is what we would 
use to restore our coast, which is our barrier against hurricanes. Why 
would they want to take away the money that we would use to protect us 
from future hurricanes? That is one of many reasons why this bill is 
clearly dead on arrival in the Senate. They don't want to pass a bill 
if this is the only option they are going to put on the table.
  Bring back the American Energy Act, a truly bipartisan bill, and 
let's solve this crisis together.
  Mr. RAHALL. Could I have a time check, please, Mr. Speaker?
  The SPEAKER pro tempore. The gentleman from West Virginia has 19\1/4\ 
minutes remaining, and the gentleman from New Mexico has 22 minutes.
  Mr. RAHALL. I have the right to close, I assume?
  The SPEAKER pro tempore. Yes.
  Mr. RAHALL. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from 
New York (Mr. Crowley).
  Mr. CROWLEY. I want to thank my friend, Mr. Rahall, for yielding me 
this time.
  Let me just remind my colleagues on the other side of the aisle, when 
this bill passes and when it becomes law, after passage of the 
Democratic energy bill, 85 percent of the total oil available offshore 
will be open for exploration and drilling. My colleagues on the other 
side simply can't take yes for an answer, and I am perplexed by that.
  We continue to come back, and I know that my friend Mr. Flake made 
reference once again, to a provision in this bill that would 
restructure the 9/11 New York Liberty Zone bonds. We had a more 
extensive debate about this earlier today, and I don't want to 
necessarily go back into that.
  But I think it is important to note for the record, on May 15 of this 
year, under questioning within the Ways and Means Committee, the Deputy 
Assistant Secretary for Tax Policy, Karen Sowell, stated that the 
President would oppose earmarks, but supports restructuring the New 
York Liberty Zone bonds and that the language included in his budget 
reflects that, that this is not an earmark.
  Once again, I repeat: The 9/11 restructuring money is not an earmark. 
It is part of the $20 billion that you, that we, promised New York 
after the attacks of 9/11, $18 billion of which has already been 
delivered, or thereabouts. $2 billion has yet to be used, and, quite 
frankly, in the form it is in today, is not usable, and that is why we 
are doing this. This is not something new. We have already passed this 
four previous times. We just have not yet been able to get it enacted 
into law.
  So I would just remind my colleagues once again that this is not an 
earmark. In fact, your former chairman of the Ways and Means Committee, 
Mr. Thomas, he is the person who put this into law. We are trying to 
fulfill a promise that you made.
  Mr. PEARCE. Mr. Speaker, I would yield myself 15 seconds before 
yielding 5 minutes to the gentleman from Pennsylvania (Mr. Peterson).
  I would again point out that there is more stimulation for bicycles 
in this bill than there is for nuclear power. That indicates this new 
direction we are being taken by the majority.
  Mr. Speaker, I yield 5 minutes to the gentleman from Pennsylvania 
(Mr. Peterson).
  Mr. PETERSON of Pennsylvania. I want to thank the gentleman for 
yielding, and I want to thank all the Members of this body for 
participating. Those of you that have been down here for hours, I want 
to thank you. I want to thank my friend Mr. Abercrombie from Hawaii, 
who has worked at my side for half a decade, bipartisanly, to try to 
figure out how we can make America energy independent and open up the 
resources that we have.
  How can the most powerful country in the world allow itself to be in 
a position where its energy prices depend on

[[Page 19293]]

three things that they have no control over? We just faced one, and we 
dodged a bullet again from major damage; storms in the gulf. They 
happen most years. It will depend on that whether we have available 
affordable energy.
  The stability of the 13 largest oil companies in the world, all 
bigger than Exxon, unstable countries, non-democracies who have 
governments that tip over often. And if any one of them tips and 
produces two or three million barrels less oil, there is a shortage of 
oil in the world.
  And then we have been lucky that terrorists have not yet attacked our 
energy system. It is so vulnerable.
  How did we let ourselves get there? Well, most of our lifetime, in 
fairness to the former Congresses, energy was cheap, $2 gas and $10 
oil. A spike in the seventies, a spike in the eighties, a spike in the 
nineties. We tried alternatives, but they didn't work, because cheap 
oil ran them out of the market.
  Folks, cheap oil is gone. Cheap natural gas is over. We are in a new 
era. We are sharing energy now with a whole part of the world that 
didn't use it before. We will soon not be the biggest user of energy.
  Twenty-eight years ago, we decided it was better to use theirs, not 
ours. We started locking up our Outer Continental Shelf. A few years 
later we tried to open ANWR when it was starting to get a little 
tighter, and a President vetoed it. About the same time, they set one 
of the largest coal reserves in America, I believe it was in the State 
of Utah, aside, as if it wasn't important, millions of acres.
  More recently, in legislation that slipped through and got signed, 
unfortunately, we locked up shale oil, the big new field that has 
awesome potential.
  And the one that stuns me, the fastest growing renewable, and I 
haven't heard anybody mention it here, woody biomass, 3.6 percent now. 
Woody biomass. Pellet stoves, wood waste for boilers, and we are hoping 
to do cellulosic ethanol from it. We have legislation that says wood 
waste from our Federal lands can't be used.
  Tar sand oil, the new oil from Canada that we have built our 
refineries to use, we have legislation that is going to made it 
difficult to get that.
  Every year since I have been here we have become 2 percent more 
dependent on foreign oil, and we will again next year. Unfortunately, 
this legislation locks up 97 percent of the west coast energy 
availability. It removes the part of the eastern gulf that is the most 
easy to obtain, close to where we are producing today, where the 
infrastructure is there and we can do it quickly. On the east coast, 
most of the energy is between 25 and 50 miles out, and it is locked up.
  Then I guess the part that bothers me, I was a State legislator 
before I came here, we are kicking the ball to the State legislatures. 
It is Congress' role to provide energy for America. We are saying to 
State legislators, vote to open up. We are not going to give you 
royalties. There is no win in it for you, but you be statesmen. You 
take on that environmental lobby and you open that land up, because we 
won't.
  Yes, prior to this bill, the ANWR Interior bill was available, and 
for the last number of years I forced many of you, and some of you 
groaned, to vote on whether we continued the moratorium.
  Fourteen Congresses and three Presidents have not adequately valued 
energy availability for America. There is lots of blame to go around. 
Let's stop blaming each other here.
  Who are the losers? The working people of America, Mary and Joe, 
retired seniors, living in a family homestead, struggling to have money 
for their automobile fuel and going to try to heat that big old home 
this year. Last year they kept it at 58. They don't know what they are 
going to do this year.
  Jim and Nicole with three children. They have an eight-year-old 
vehicle and a modest older home. They kept their home at 60 raising 
kids, and they don't know how they are going to do it, because their 
bills are going to be much higher this year.
  Then Margie, a single mom with a teenage daughter and a teenage son. 
She drives 40 miles to work one way, that is 400 miles a week. That is 
really stretching her budget with these gas prices. Her gas bill has 
gone from $175 to $220 to $230. She has no idea how she is going to pay 
it.
  The small businesses that employ the bulk of our friends and 
neighbors are struggling to pay their energy bill.
  Folks, we need to deal with this energy issue, and we need to deal 
with it bipartisanly and get cost-effective energy for this country.
  Mr. RAHALL. Mr. Speaker, I am very happy to yield 5 minutes to the 
gentleman from Hawaii (Mr. Abercrombie) and want to salute him not only 
as an extremely knowledgeable person on our Committee on Natural 
Resources, but one who has worked with us throughout this process, has 
been involved every step of the way and has contributed magnificently.
  I just want to salute Mr. Abercrombie for his tremendous efforts on 
behalf of this compromise bill.
  Mr. ABERCROMBIE. Mr. Speaker, I want to thank John Peterson as we 
move on this bill, whatever happens tonight. I notice there are some 
Members we have been working with.
  This is kind of an emotional moment for me, I will tell you, because 
one of the great sorrows that I am going to have out of this is not so 
much that our bill didn't make it to the floor, but that John Peterson 
is leaving the Congress of the United States. Of course, he is doing it 
always for the right reasons, for somebody else, and, of course, we 
hope that your wife, John, is going to be well. I send her greetings 
and love and affection tonight, the love and affection we bear for you. 
You make the word ``honorable'' mean something very deep and real in 
this House.
  I see Mr. Bishop and others. Mrs. Drake was here. There are so many 
names we were working with: Jim Costa and Dan Boren, Bill Foster, Timmy 
Walz, Tim Murphy. So many people. I am going to risk hurting people's 
feelings if I don't name everybody. But I have got to say Dan Burton or 
he will yell at me. So many folks. Jeff Miller, so many. Nick Lampson, 
he is down there tonight.
  The reason I bring all those names up is that we are productive with 
H.R. 6709 I think because we got away from lobbyists coming in or 
corporations coming, advocacy groups, and we got away from the 
leadership clash, if you will, over who is going to get the House or 
who might not.
  In all honesty, I want to move this bill tonight. I agree, by the 
way, with Don Young, I agree with what John just said, what Thelma 
said, all the folks over here on sharing the revenues. I think we 
didn't have enough information coming from the CBO on that. It looks 
now like we can put royalties in and it won't create a pay-as-you-go 
problem.
  There are a lot of things that can be done, if we can move the bill 
along. That is what I am asking, just move this bill along. It is like 
Jim Costa said earlier, a work in progress. Come on, there are very few 
rookies here, very few rookies legislatively, even if you are just new 
in the body. We have got four or five different shots at this in order 
to perfect a bill.
  I wouldn't vote for this bill if it came back now and this was 
conference bill. I wouldn't vote for it. But this gives us an 
opportunity to move this along. That is all I am looking for. And, 
believe me, the Republicans can claim they forced the Democrats to take 
it up and they made their point, and the Democrats will claim that they 
went for the bigger national interest and acted in a nonpartisan way.

                              {time}  2030

  Everybody can make their political claims. But let's keep this 
moving. We have been talking to Saxby Chambliss, come on, a lot of us 
served with him here in the House; and Lindsey Graham, he is our 
friend; Ben Nelson, Mary Landrieu. I told Mary, left a message, said, 
look, don't say it's dead on arrival. We are for the revenue sharing. 
We can work this out.
  The American people will blame all of us. The American people will 
not say the Democrats have showed up the Republicans, or the 
Republicans sure

[[Page 19294]]

showed the Democrats. They are going to blame the Congress, because 
they want energy independence. We have to have it.
  My plea to you is that we take this bill and move it along and get it 
into the Senate. We have nothing to lose and everything to gain in 
terms of energy independence, number one; and, number two, preventing 
the exporting of needed American dollars from investment in this 
country to import energy. That's the reason that we need to do this.
  We have got to get away from, I see there is something from the 
National Wildlife Federation, comes in today, a lot of praise for the 
bill, but they don't like the oil shale provision, where it's an opt-in 
from the State, so they still kill the whole bill, kill everything 
because there is something in it they don't like. We urge you to oppose 
it and the motion to recommit too. So we end up with nothing.
  Other people, we have been using words like ``hoax,'' despite claims 
to the contrary, this is not a drilling bill. Believe me, when the 
Speaker came around on this, and it's one of the reasons I feel we 
should move forward with the bill, the Speaker doesn't want this bill, 
believe me. But she is not the leader of the California delegation, she 
is the Speaker of the House, and she feels that something has to move 
along, even if she doesn't approve of most of the provisions that are 
in here, if she had her own personal way. What I am asking is let's 
rise above the arguments. Let's rise above the clash with one another.
  I don't say that for altruistic reasons, I say it for practical 
reasons, practical legislative reasons. We will not be forgiven by the 
people of this Nation if we are not able to move an energy bill to the 
Senate so we have a fighting chance to try and work the legislative 
process here. Let's not have the kids that come to visit us every day, 
the people who come to our office sincerely asking us for our help, 
look at us and say they couldn't do the job that they were sent here to 
do.
  Mr. PEARCE. Mr. Speaker, I submit for the Record three letters of 
opposition for this bill from The American Conservative Union, 
Industrial Energy Consumers of America, and the National Association of 
Manufacturers.

       Dear Representative Pearce: On behalf of the American 
     Conservative Union, I urge you to vote ``NO'' on H.R. 6899, 
     the so-called ``Comprehensive American Energy Security and 
     Consumer Protection Act,'' a 290 page bill put on the floor 
     with less than 24 hours notice under a closed rule with no 
     room for amendments.
       When we were kids, we all played a variation of the game 
     ``Let's Pretend'' in which we pretended to do something or be 
     somebody knowing it was make-believe. The authors of this 
     bill are playing ``Let's Pretend'' with the American people, 
     pretending they are passing a bill to increase domestic 
     energy production when they know it will do no such thing.
       By eliminating revenue sharing for the states in royalties 
     for offshore oil and gas drilling while requiring states to 
     approve the drilling leases, the bill's sponsors know it is 
     unlikely the states will bother to give their approval. Even 
     Democratic Senator Mary Landrieu of Louisiana has said this 
     bill ``will not see the light of day in the Senate'' should 
     it pass the House.
       The bill prohibits drilling less than 50 miles offshore 
     when the sponsors know that, to give an example, 95 percent 
     of the known reserves off the coast of California are less 
     than 50 miles out.
       Once again, as in other energy legislation, the bill 
     needlessly increases taxes that only serve to increase the 
     cost of energy. The bill will also increase electricity bills 
     for the average consumer by forcing utility companies to use 
     alternative fuels regardless of the cost. This provision has 
     already been rejected by the Senate in a previous energy 
     bill.
       The American people are demanding we change our bankrupt 
     energy policy which has prevented the U.S. from utilizing our 
     own resources and made us dangerously dependent on foreign 
     oil supplies from unfriendly countries. They will not fall 
     for a bill full of gimmicks which does not do the job.
       We strongly urge a ``no'' vote on H.R. 6899.
           Sincerely,

                                                   Larry Hart,

                                 Director of Government Relations,
     The American Conservative Union.
                                  ____

                                                 Industrial Energy


                                         Consumers of America,

                               Washington, DC, September 15, 2008.
     Hon. Nancy Pelosi
     Speaker of the House,
     Washington, DC.
       Dear Madam Speaker: We thank you for placing domestic 
     energy production at the top of the September legislative 
     priorities. Together, we must act to solve our energy crisis 
     that is impacting every American and threatens the 
     competitiveness of our manufacturing sector. On behalf of the 
     Industrial Energy Consumers of America (IECA), we look 
     forward to working with you to increase domestic production 
     of affordable and reliable energy and to increase 
     conservation and efficiency across all sectors of the 
     economy.
       The Industrial Energy Consumers of America is an 
     association of leading manufacturing companies with $500 
     billion in annual sales and with more than 850,000 employees 
     nationwide. It is an organization created to promote the 
     interests of manufacturing companies for which the 
     availability, use and cost of energy, power or feedstock play 
     a significant role in their ability to compete in domestic 
     and world markets.
       As significant consumers of energy, our competitiveness is 
     largely determined by the cost of energy and especially 
     natural gas and electricity. Given this, we have reviewed key 
     components of your legislation and offer the following 
     comments.
       Your legislative provision to open the outer continental 
     shelf (OCS) to drilling is a bold positive step and we 
     applaud you for it. However, unless modified, it will not 
     result in increased offshore production. To increase 
     production, either remove the provision that requires a state 
     to approve drilling in their offshore areas or provide 
     royalty incentives to states who agree to allow drilling. 
     Also, the 50 mile requirement is problematic because 
     according to the Minerals Management Service 80 percent of 
     our known natural gas and oil reserves are located within 50 
     miles offshore. If our goal is to increase domestic 
     production and increase our nation's energy security, we must 
     not limit drilling to beyond the 50 miles.
       IECA also encourages you to allow production access to the 
     Alaska National Wildlife Refuge. This is an area in Alaska 
     that is the size of the Los Angeles airport with tremendous 
     known hydrocarbon resources that will significantly add to 
     our national energy security.
       IECA strongly oppose provisions that provide monetary 
     incentives and mandates to use compressed natural gas (CNG) 
     as a motor vehicle fuel. The transportation fuels market 
     already has alternatives and is developing more options in 
     which to fuel their market while home owners, farmers and 
     manufacturers who use natural gas do not. This provision puts 
     the transportation market in direct competition for the same 
     natural gas and will result in much higher prices. We urge 
     you to delete this provision from your legislation. Later, 
     after we have had several years of increased natural gas 
     production such an initiative could be re-visited.
       Increasing demand without first significantly increasing 
     supply could devastate the manufacturing sector that relies 
     upon natural gas for both fuel and feedstock. We have lost 
     over 3.0 million high paying manufacturing jobs since 2000 
     and high natural gas prices have played a significant role.
       According to the Energy Information Administration, natural 
     gas demand has grown by 9.8 percent since 2000 while 
     production has remained flat despite record well completions. 
     Production in 2000 was 19.2 trillion cubic feet versus 19.3 
     trillion cubic feet in 2007. Recent growth in natural gas 
     from shale is encouraging, but this has not yet shown 
     sufficient production to accommodate the growing demand by 
     the power sector let alone provide additional supplies for 
     the motor vehicle industry.
       Congress has a history of passing mandates that increase 
     demand for natural gas while simultaneously failing to put in 
     place a long-term framework to increase production--this must 
     change. Federal mandates such as the low-sulfur fuels 
     standard and the biofuels (ethanol) mandate both increased 
     demand for natural gas. And, pressure to reduce greenhouse 
     gas emissions has resulted in a 35 percent increase in 
     natural gas demand by the power sector. Together, the 
     increases in demand and resulting higher price significantly 
     contributed to the erosion of US manufacturing base since 
     2000.
       IECA does not support the federal Renewable Portfolio 
     Standard (RPS). Incentives, not mandates are the appropriate 
     way to increase the nation's supply of renewable energy. 
     States that have abundant renewable energy resources have 
     enacted programs while those not endowed have not done so for 
     good reason. A federal RPS would have a devastating impact on 
     the global competitiveness of the pulp and paper industry 
     that uses biomass as a feedstock and fuel. We urge you to 
     delete this provision from your legislation.
        For both cost and security reasons, it is important the 
     Congress support research and deployment of carbon capture 
     and sequestration (CCS) technology to use our vast coal 
     reserves. IECA is troubled with this provision because it 
     increases the price of electricity to us and to consumers 
     thru a wires charge. It is essential that the provision be 
     modified to ensure that the wires charge be paid for by `all' 
     consumer classes and that it

[[Page 19295]]

     specifically designate that no less than 10 percent of the 
     revenues be directed for industrial applications for CCS.
       Thank you for considering our views and we look forward to 
     working with you.
            Sincerely,
                                                    Paul N. Cicio,
     President.
                                  ____

                                               September 16, 2008.
       Dear Representative: The National Association of 
     Manufacturers (NAM), the nation's largest industrial trade 
     association representing small and large manufacturers in 
     every industrial sector and in all 50 states, urges you to 
     oppose the Comprehensive American Energy Security and 
     Consumer Protection Act.
       We are encouraged that the House of Representatives has 
     taken steps to craft an energy bill that will result in 
     measurable energy efficiency gains and renewable energy 
     incentives. We also recognize the important attempt to expand 
     domestic energy development in the Outer Continental Shelf 
     (OCS). While we support an increase in domestic energy 
     supplies, we have serious concerns that without any state 
     revenue sharing mechanisms it is highly unlikely that states 
     will ``opt-in'' to leases and the result will be no new 
     access.
        Moreover, the NAM strongly opposes provisions in the bill 
     that would:
       Increase taxes on energy producers, including ending the 
     Sec. 199 deduction for certain producers and limiting it for 
     others and restricting the use of foreign tax credits. This 
     will directly add to the costs to energy production, 
     discourage new domestic oil and natural gas production and 
     make domestic energy investments less competitive 
     economically with foreign opportunities;
       Create a mandatory 15 percent federal renewable portfolio 
     standard. This provision will directly add to the cost of 
     electricity for manufacturers and consumers by mandating a 
     renewable standard in regions of the country that do not have 
     adequate resources to comply. In effect, it would translate 
     into a new tax on electricity, passed on to U.S. 
     manufacturers and consumers.
       While the NAM cannot support this legislation and urges its 
     defeat, we are prepared to continue to work with Congress to 
     advance energy legislation that lowers costs for 
     manufacturers and promotes energy security .
       The NAM's Key Vote Advisory Committee has indicated that 
     votes on the Comprehensive American Energy Security & 
     Consumer Protection Act will be considered for designation as 
     Key Manufacturing Votes in the 110th Congress. Thank you for 
     your consideration.
           Sincerely,

                                                  Jay Timmons,

                                         Executive Vice President,
                            National Association of Manufacturers.

  Mr. Speaker, I yield myself 6 minutes.
  We have heard my friend from Hawaii just compel us to vote for the 
bill. But with all respect, I would say that we have constituents who 
are struggling to make their budgets balanced. They have $4 a gallon 
gasoline, high cost of food, increasing taxes, and we are telling them, 
ride a bicycle. We are telling them we are not going to build nuclear 
power plants.
  China gets it. China is converting from bicycles to nuclear, while we 
are converting from nuclear to bicycles. If China gets it, how come we 
don't? Everyone in this country is worried about our jobs disappearing 
to China. They are worried about our standard of living decreasing. 
They are worried about the ability to pay for their kids' college, and 
we are sitting here saying ride a bicycle, drive a solar car.
  With all due respect, I wonder if the Speaker is going to leave 
tonight in a black solar limousine. I wonder if the Speaker has a 
nuclear car. I wonder if the Speaker has a wind-powered car. We are 
dealing in gibberish here while the American people are suffering and 
while our economy is suffering, and why are we doing it?
  I will tell you, I watched in the 1970s as this Congress began to do 
things to kill an industry, the timber industry. There were 20,000 jobs 
in New Mexico in the timber industry, and this Congress at that time 
eliminated those jobs by killing the industry, allowing litigation to 
stop every single project. There is nothing in this bill to stop 
litigation.
  I think that Americans are tired of watching special interest groups 
bring litigation to stop drilling, to stop mining, to stop oil and gas, 
to stop timber, to stop everything. They stopped construction projects.
  I think the American people are ready to take back this country from 
the extremists who obstruct our way of life and who obstruct everything 
that we stand for. I believe in American exceptionalism, I believe in 
our ability to bring hope to the entire world.
  Everyone wants to come to this Nation to find their hopes, and we are 
litigating ourselves out of it. I don't understand why this Congress 
and this majority is making the stance that we are not going to build 
nuclear. Instead, we want you to ride your bicycles.
  Oh, by the way, we are going to tax those American jobs. We are going 
to tax them out of existence if we have to, because we have got a point 
to prove. That's what I see in this bill. We are going to tax American 
jobs, and we are going to let that foreign gasoline come in here tax-
free, so we are going to do that, but we're going to get back at 
somebody. That's what I hear in this bill.
  We need every form of energy that we can get our hands on now, and, 
in the future, our need for energy increases dramatically. Why are we 
doing nothing in this bill for clean coal technology? Why are we doing 
nothing in this bill for the easy-to-get offshore gas and oil?
  We prohibit, forever, oil and gas that lies just off our shore. We 
say to the oil companies, you can go out there at 50 to 150 miles, that 
ultra-deep stuff, that's where the stimulations are right now. There 
are no stimulations for onshore production. There are no stimulations 
for that shallow-water production. The only stimulations are for that 
very deep, deep production, and we hear constant complaining and 
accusations.
  That stimulation to deep, offshore production is increasing our 
capability to produce our own jobs and our own energy. We are sending 
over $600 billion a year out this country to other countries. We are 
providing jobs for them, and we are not providing jobs here.
  If we reinvested, and if we invested in our local oil and gas 
economies, we could produce at least a 6 percent rate of growth in this 
economy just by that. Forget the other services that are going to come 
along with just the $600 billion. We are making foolish, upside-down 
decisions here, and this Nation is going to pay for it. Small 
businesses are going to go out of business. We are seeing the 
difficulty that we have competing worldwide, and this Nation is going 
to see a decline in the standard of living because of decisions that we 
are making here.
  Last December, we made a decision to put all shale off-limits, 2 
trillion barrels of shale. The American country has not used 1 trillion 
of shale, of oil, since our inception, and we put 2 trillion off-
limits. Then we come into this bill and we sort of tickle around with 
it and say, well, maybe you can if your State says you can.
  Where else do we allow the States to say, no, you can't produce those 
Federal assets. Where else do we give the States the veto power over 
our economy and over the production of Federal resources? It just 
doesn't make sense what we are doing here tonight.
  It does not make sense that we don't cure the litigation problems 
that are going to kill our economy dead. It doesn't make sense that we 
are saying ``yes'' to bicycles, no to nuclear, no to that easy to get 
to oil off the coast, no to clean-coal technology. We are saying 
``yes'' to the extremists and ``no'' to the American family.
  I think the American family is going to take note for a long time 
what we are doing here tonight.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RAHALL. Mr. Speaker, may we have a time check. I am prepared to 
close on this side.
  The SPEAKER pro tempore. The gentleman from New Mexico has 11 minutes 
remaining, and the gentleman from West Virginia has 12\3/4\ remaining.
  Mr. PEARCE. We have two more speakers.
  Mr. RAHALL. Mr. Speaker, I reserve the balance of our time.
  Mr. PEARCE. Mr. Speaker, I yield 3 minutes to the gentleman from 
Florida (Mr. Young).
  Mr. YOUNG of Florida. Mr. Speaker, when Puerto Rico kicked us out, 
yes, kicked us out of our training areas for the Air Force and the Navy 
in Vieques, we had to move that specialized type of training into the 
eastern Gulf of Mexico. We established a military mission

[[Page 19296]]

line and said there would be no drilling platforms or drilling ships 
there because it would not be compatible with the type of training.
  The type of training that we are doing there with the Air Force and 
the Navy aviation, as well as the naval surface ships are hypersonic 
weapons, supersonic aircraft, long-range missiles, stand-off missiles 
like AMRAAM, and we are talking about Patriot missiles. We are talking 
about all types of ordnance being used to train our pilots and our ship 
crews, a very specialized training.
  For those of us who are determined to make sure that our forces have 
the best training possible, this is the only place, according to a 
briefing that I had with the Deputy Secretary of Defense this week, the 
Air Force this week, the Navy this week, this is the only place east of 
the military mission line where this type of training can take place in 
America.
  So those who are concerned, those of us who are concerned about this, 
are curious as to what will the motion to recommit have to do or speak 
to this area east of the military mission line?
  It's very important to us. It's very important to our national 
security and to those fighter pilots who are going to be doing their 
training here before they get into a combat situation.
  Mr. BOEHNER. Will the gentleman yield?
  Mr. YOUNG of Florida. I will be happy to yield to the leader.
  Mr. BOEHNER. I thank my colleague for yielding.
  Mr. Speaker, it would be our intention in the motion to recommit to 
protect this military mission area.
  After we lost our training area off the coast of Puerto Rico, I think 
all of us understand how important this area is to the training of our 
war fighters and the fact that it needs to be preserved for that 
purpose.
  Mr. YOUNG of Florida. I want to thank the leader. This is important 
to most of us and to our military. So I thank the gentleman for his 
response.
  Mr. RAHALL. Mr. Speaker, I yield myself 1 minute.
  Mr. Speaker, I appreciate the comments of the gentleman from Florida 
and his concern for the area off his coast, and I appreciate the 
minority leader's comments in response that he would be protected in 
the motion to recommit. We do protect him in this bill.
  We met with the Florida delegation. We are perfectly aware of the 
concern of the Department of Defense to this particular area, the 
military training and equipment training that takes place therein. We 
are preserving existing law in our bill, which holds that area off-
limits to drilling unless there is a memorandum of understanding 
between the Secretary of Defense and the Secretary of Interior. That is 
the current law that was enacted in 2006.
  Mr. Speaker, I reserve the balance of my time.
  Mr. PEARCE. Mr. Speaker, I would recognize Mr. Brown for 2 minutes.
  Mr. BROWN of South Carolina. I appreciate the gentleman yielding.
  Mr. Speaker, the argument that we have today is an argument that we 
have been discussing for a long, long time about our energy and energy 
independence.
  We recognized, this past week, when the storm went through Houston, 
that we found another problem that we had. We were concerned about the 
price of gasoline.
  Now we are concerned about the price, not the price, but the 
availability. What we need is more supply if we are going to compete in 
the world arena.
  Some 70 percent of our energy today is coming from foreign sources. 
If you have been following the dialogue on the world market, Russia now 
controls most of the natural gas going to the European nations.
  You notice from time to time there is a threat to cut that supply 
off. One day that's going to happen to America. With 70 percent of our 
energy coming from offshore from people that don't like us, we are 
going to have the same problem one day, a supply problem. Just like we 
had back with the oil embargo in the 1970s, the same situation is going 
to happen to us, even as we see some families now going to stations, 
and they say ``out of supply today.''
  The bill we are looking at today concerns me. I represent the coast 
of South Carolina, some of the prettiest beaches in all the world. We 
would love to say there are alternate ways to find our energy 
solutions, but we are willing, in South Carolina, to pay the price, 
just like in Louisiana, just like in Texas, just like some other 
places, California and other places, that are using their energy 
resources to help cultivate the economy of this great Nation.

                              {time}  2045

  We recognize if we don't do all of the above, we are going to find 
ourselves in a Third World situation. We need nuclear power. We need 
wind, we need solar power. But we also need gas and oil. Gas is one of 
the best fuels we can find. We can burn it in our automobiles and we 
can burn it in our power plants. It is a clean-burning fuel, and we 
have an unlimited reserve off the Outer Continental Shelf. We need to 
be able to access those resources.
  Mr. RAHALL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Tennessee (Mr. Cohen).
  Mr. COHEN. Mr. Speaker, I wanted to reference today's New York Times 
editorial, not a Member of this body but the editorial page. It is 
titled, ``Ms. Pelosi Compromise.''
  ``This is obviously not the best moment for Congress to rush through 
an energy bill. The country is caught up in a heated Presidential 
campaign. Voters are furious at high gas prices. Republicans are 
happily pandering to that anger, while the Democrats fear it. And at 
the end of this month, just before Congress heads home for the election 
recess, the long-standing moratorium on offshore drilling is scheduled 
to expire--providing an opportunity for more grandstanding.''
  The editorial continues that ``these are not sensible times, which 
means that Congressional Democrats, particularly House Speaker Nancy 
Pelosi, must try hard to make the best of a bad situation.
  ``The situation, briefly, is this: the Republicans have been 
bludgeoning the Democrats with the claim that Democratic opposition to 
offshore drilling is to blame for high fuel prices and that drilling is 
the answer, or one answer to the country's dependence on foreign oil.
  ``We find it hard to imagine that they really believe what they say. 
Drilling will have no impact on fuel prices for at least 15 years, if 
then, and any number of efficiency measures will do more to reduce the 
country's dependence than drilling for America's modest offshore 
reserves. But the chant of 'drill, baby, drill!' is playing far too 
well on the campaign trail for the Republicans to let the facts get in 
the way.
  ``The Republicans have offered bills that would provide broad access 
to the Outer Continental Shelf and in one case allow drilling as close 
as 12 miles from shore. So Ms. Pelosi is taking no chances. As early as 
Tuesday she is expected to unveil what she advertised as a grand 
compromise. The bill would allow drilling in all of the Outer 
Continental Shelf beyond 100 miles offshore from States that permit 
it.''
  The bottom line: ``Ms. Pelosi's compromise deserves support. If it 
fails, the Democrats must fight to renew the moratorium. Otherwise, 
there could well be oil rigs within 3 miles of American shore.''
  Thank you, Mr. Speaker, and thank you to the New York Times.
  Mr. PEARCE. Mr. Speaker, I yield 1 minute to the gentleman from 
California (Mr. Calvert).
  Mr. CALVERT. Mr. Speaker, the American people have made it clear that 
they support all-of-the-above energy solutions that increase the 
production of American-made energy, including offshore energy. 
Unfortunately, the Democrats' so-called energy bill is anything but an 
all-of-the-above energy bill.
  The Democrat bill claims to expand offshore drilling, and yet it 
expands drilling in areas where there isn't any oil.
  The energy bill also requires the States to opt in to allow offshore 
energy exploration off their coast. However, it doesn't even provide 
them with a share of the royalty revenues.

[[Page 19297]]

  I think the American people would agree that we should be providing 
coastal States with incentives to produce energy, not discourage them. 
I strongly oppose any effort to treat California as a second-class 
State, and I am frankly surprised that the Speaker would support a bill 
that denies our State royalty revenue benefits that other States 
currently enjoy.
  This bill does nothing to increase production of nuclear power, 
nothing for hydropower, and nothing to increase refining capability. 
This bill is hardly change we can believe in. In fact, this bill isn't 
change at all.
  Mr. RAHALL. Mr. Speaker, I am prepared to close, so I reserve the 
balance of my time.
  Mr. PEARCE. How much time remains?
  The SPEAKER pro tempore. The gentleman has 5\1/2\ minutes remaining.
  Mr. PEARCE. Mr. Speaker, I yield 1 minute to the gentleman from Texas 
(Mr. Gohmert).
  Mr. GOHMERT. Mr. Speaker, we know that litigation has been stopping 
all of the attempts at drilling and will continue to do so unless there 
was something in the bill to end the litigation. So we know that is 
going to stop it. We know that this bill has an opt-in for States but 
won't give them a dime of revenue so they are not going to opt in.
  So what this has become is akin to what I saw this weekend after the 
hurricane. On the radio and on the phone people were told that this gas 
station at such and such location now has gas. People would run down 
there only to find it was out of gas. That is what this bill does.
  Here is energy; people are going to run out, and when they get there, 
they are going to find out there isn't any.
  Mr. PEARCE. Mr. Speaker, I yield 1 minute to the gentleman from 
Michigan (Mr. McCotter).
  Mr. McCOTTER. Mr. Speaker, two quick points as the debate draws to a 
close. First, I have to question again the use of the term 
``compromise.'' The use of the term ``compromise'' implies that the 
minority party was consulted, our advice was sought, that we could 
channel the wishes and aspirations and voices of our people into this 
debate as the legislation moves forward. We were denied that 
opportunity. Perhaps it would be best to clarify that this is a 
compromise amongst the Democratic Party itself and not amongst the 
majority and minority parties.
  Secondly, this bill continues to ration energy. This is a government 
rationing of energy, and at this point in time when America needs 
energy production, it will not meet the needs of people who are 
suffering.
  Mr. PEARCE. Mr. Speaker, I yield 1 minute to the gentleman from Texas 
(Mr. Barton).
  Mr. BARTON of Texas. Mr. Speaker, I want to thank the gentleman from 
New Mexico.
  My comments on this last 1 minute are more on the process. I have 
spoken at length on the policy, or lack thereof. I thought it was 
ironic that we had Congressman Abercrombie and Congressman Peterson on 
the floor earlier speaking about their efforts to come up with a 
bipartisan compromise bill. I think they made a noble effort.
  I went to John Dingell, the chairman of the Energy Committee, and 
asked if he would like to work with me on the Energy and Commerce 
section of the bill; and he said that, quite frankly, he wasn't able to 
do that.
  I just asked Don Young if he was ever asked by Mr. Rahall to work on 
a bill in his committee, and Mr. Young said that never happened.
  My guess is that if I asked Jim McCrery, the ranking member of the 
Ways and Means Committee, if he was asked by Mr. Rangel, the chairman, 
that Mr. McCrery would also say that he was never asked.
  The point of fact is we have a 290-page bill that is being voted on 
the day after the evening it was introduced. There is no way you can 
have a substantive vetting, debate on this massive amount of 
legislation in less than a 24-hour period. And none of the relevant 
committees on a bipartisan basis have held a markup, have held a 
hearing, any kind of a legislative drafting session at all. And yet we 
are asking the 435 Members of this body and the delegates that are 
allowed to vote on the floor to vote on the most important domestic 
public policy issue before this Congress.
  That is not fair to the American people. It is a disservice to the 
process; and for that reason alone, the bill should be voted down.
  Mr. PEARCE. Mr. Speaker, may I inquire of the time.
  The SPEAKER pro tempore. The gentleman has 2\1/2\ minutes remaining.
  Mr. PEARCE. Mr. Speaker, I yield myself 1\1/2\ minutes.
  Mr. Speaker, this debate has progressed for a long time, but made a 
very short distance. The American people have a right to expect that we 
would do our job, that we would do our job to ease the pain in their 
everyday life. They have a right to expect that we would increase the 
competitiveness of American companies so that we are able to hold a 
good, strong economy. They have a right to expect that we would give 
fairness to all States. They have a right to expect that we would use 
good common sense in establishing this bill.
  Mr. Speaker, we are failing on every account in the bill that is 
before us tonight. When we should be establishing American dominance in 
the energy field, we are saying ``no'' to nuclear and ``yes'' to 
bicycle power. When we should be doing our job to find new clean coal 
technologies, we don't even mention them here. When we should be 
drilling for every amount of oil that we can find here to create 
American jobs and to stop spending $700 billion overseas, we are 
limiting our ability to produce here.
  We were told 2 years ago that we were going to see a plan, and 
tonight we were told we have new ideas. Those new ideas are riding 
bicycles and killing the American economy with higher fuel prices, 
hurting the American family with continued restrictions of supplies, 
putting ourselves strategically at risk by selling off the Strategic 
Petroleum Reserve.
  Mr. Speaker, I request that all Members, Republican and Democrat, 
vote ``nay'' on the bill in front of us tonight.
  Mr. Speaker, I yield 1 minute to the gentleman from Ohio (Mr. 
Boehner).
  Mr. BOEHNER. Let me thank my colleague for yielding. Let's just stop 
and think for a moment about what our constituents are dealing with 
tonight as we stand here. They have got concerns about the economy, 
concerns about keeping their own jobs. They have concerns about whether 
they are going to be able to put gas in their car tomorrow considering 
the high price of gas. Or we have the home heating crisis about to come 
to us as they are filling their propane tanks and oil tanks and looking 
at the heating bills that are coming this winter.
  And what are we doing? We are sitting here tonight in the middle of 
the biggest hoax I have seen in the 18 years I have been in Congress. 
It is a sham, and everybody in this Chamber knows it is a sham. I know 
those are strong words and words that I don't use lightly, but I want 
my colleagues to consider this for a moment.
  We have a bill here that purports to be a compromise, but I don't 
know one Republican Member who was involved in one meeting with regard 
to this compromise. It was written by the Democrat leadership that runs 
this Congress in the dark of night on a napkin. It showed up here last 
night at 9:45, a 290-page bill at 9:45 last night that no Member had 
ever seen; and guess what, as we stand here tonight, no Member has 
read.
  All right, some Member, any Member stand up and tell me you have read 
this bill. That is what I suspected. Not one Member has read the bill 
that we are about to consider. No hearings on the bill, no committee 
action, no one has read, and the bill purports, purports to increase 
American energy. But I want you to consider this: 85 percent of the 
known reserves off of our coast on the Outer Continental Shelf, 85 
percent at a minimum are locked up permanently under this bill. And of 
the 15 percent that are purportedly opened, the States would have to 
comply to open those Outer Continental Shelf reserves. But there is no 
revenue sharing to the States like there is in Texas and Louisiana and 
Mississippi and other areas.

[[Page 19298]]

There is no revenue sharing, so the States have no incentive to want to 
open up the Outer Continental Shelf.
  So how much new drilling will we get out of this bill? Zero. It is 
just zero. And there isn't a Member in this body who doesn't know it is 
zero. So when I call it a hoax or a sham, I think you all understand 
what I am trying to say.
  No new nuclear plants in this bill, no new oil shale drilling in this 
bill. No clean-coal technology in this bill. We are the Saudi Arabia of 
the world when it comes to coal. We have clean-coal technology. Whether 
it is coal to gas, coal to liquid, we have ways to use our coal in a 
clean way. Nothing in this bill will allow it to happen.
  What does it have in it? It has a big old tax increase in it; you can 
be sure of that.
  What else does it have in it? It has a big earmark in it: $1.2 
billion for the City of New York on behalf of one Member in this bill. 
Here we are trying to take some steps toward energy security, and we 
have to load it up with a big old earmark, $1.2 billion.
  A compromise, huh? This is no compromise. The compromise might have 
been amongst a bunch of Democrat chairmen who wanted to have some bill, 
but there is no compromise here.
  Let's just describe this bill for what it really is. It is nothing 
more than political cover on the eve of an election to say that we 
voted for an energy bill, except there is no energy in it.
  Congressional approval today is at the lowest point in any time since 
polling began, and our Members wonder why.

                              {time}  2100

  And it's stunts like this that have the American people so cynical 
about their Congress. They expect that the Congress is going to do 
something about increasing energy security in our country; that we're 
going to do something about bringing down the high cost of gasoline; 
that we're going to do something about bringing down the high cost of 
heating oil or propane or natural gas this winter.
  And what are we doing?
  Playing political games on the eve of an election.
  The American people understand that 70 percent of our oil comes from 
overseas. More than half of that comes from OPEC, who's considering 
lowering their production in order to maintain the high price of oil. 
We're just teetering, they're just teetering with us, kind of have us 
on a string because, over the last 30 years, my Democrat colleagues 
have stood in the way of more energy production in the United States. 
That's why we're in this box that we're in today. And we have a chance 
to do something. We have a chance to move in the right direction, but 
this bill isn't it, and there's not a Member in this Chamber who 
doesn't understand this bill doesn't do anything about bringing us any 
closer to energy security.
  In a few minutes, we're going to have an opportunity for all of the 
Members on both sides of the aisle to do something of substance. The 
motion to recommit tonight will be the Abercrombie/Peterson bill. No 
changes. No tweaks, no nothing. And it's painful. And it may not be 
everything that I want, but let me tell you, this bill is a bipartisan 
bill worked on by serious Members from both sides of the aisle. It's a 
bill that does do all of the above. It gives us more drilling for oil 
and natural gas in an environmentally sensitive way off our coast. It 
does allow revenue sharing, revenue sharing to the States so they have 
an incentive to participate in helping to open up this area off our 
coast. It's got new nuclear in it. It's got oil shale drilling in it. 
It's got clean coal technology in it, and it's got a lot more money 
than the Democrat bill when it comes to putting money into renewables, 
trying to speed up their development to bring those renewables to 
market as soon as possible.
  And so we've got a chance to do the right thing tonight for the 
American people. We can show them, once and for all, that we can work 
together across the aisle. We can show them that we can do something to 
move our country toward more energy security, because most Americans 
understand that energy security is paramount and is, in effect, our 
national security.
  This bill that we're going to bring up under the motion to recommit 
will create a million new jobs here in America. And with all the talk 
about a stimulus bill, the greatest stimulus we could give our economy 
is to create a million new jobs, lower the cost of gasoline, lower the 
cost of heating oil, lower the cost of energy that will actually even 
create more American manufacturing jobs.
  The question is, do we have the courage to do the right thing? Do we 
have the courage of our own convictions about doing what we know that 
we have to do as a country to move ourselves toward more energy 
security? Or are we going to show our constituents that, once again, 
Congress is up there playing political games with our future?
  It's the American people. It's their jobs. It's their budget. It's 
their concerns. They send us here to represent their interests, and 
it's about damn time that we represent their interests. And by voting 
for the motion to recommit tonight we can show them that we're working 
in a bipartisan fashion on their behalf.


                Announcement By the Speaker Pro Tempore

  The SPEAKER pro tempore. The Chair would once again remind Members 
not to traffic the well while another Member is speaking. While the 
distinguished minority leader was speaking, another Member crossed 
across the well. That is not supposed to happen, and the Chair would 
ask all Members to remember that and honor it in the future.
  Mr. RAHALL. Mr. Speaker, I yield myself the remainder of my time.
  Mr. Speaker, my colleagues on both sides of the aisle, this has been 
a good debate that we've conducted today. It's been a debate that as 
we've heard for several months over the last time period in this body, 
we've had extensive debates in the House over the energy issue. We've 
had it on the House floor during consideration of various energy bills. 
We've had the debate during 1-minutes. We've had it during Special 
Orders. We've had it on bills that we've considered that have had 
nothing to do with energy, and we've even had a debate when the House 
was not in session.
  We've heard repeatedly that the Republican Members want a straight 
up-or-down vote. That's what we're giving them by this rule today, and 
we're about to near that point.
  It's regrettable that oftentimes the debate today has used the words 
hoax, sham, bait and switch, not serious, political gains, and I could 
go on and on about the venom that has been spewed from the other side. 
When it comes to political games and the bait and switch tactics that 
we've been alleged to be employing, I would say what is wrong when 
we're trying to represent the crying need and the desperate need of the 
American people.
  We are politicians in this body. We know what the art of compromise 
is all about, or at least we should know what the art of compromise is 
all about. We know the diversity that exists within both sides, both 
caucuses in this body, and the diversity that exists among the American 
people. But we all are united. We all are united in trying to resolve 
the crying need that the American people are telling us today needs to 
be addressed.
  This bill has worked with both sides of the aisle. In working with 
Representatives Abercrombie and Peterson, that has been working with 
the other side of the aisle.
  We have also taken a lot of this language, not a lot of it, but 
elements of this proposal come from the so-called Senate Gang of 10 or 
15, however many it is from the other body. Those that say this is dead 
on arrival over there, I think, are a little premature in their 
predictions.
  In working with my colleagues that are cosponsors, Representative 
Gene Green, Representative George Miller and Representative John 
Dingell, we have certainly reached out. Speaker Pelosi has been 
tremendous in her of efforts, and as well as the leadership of Steny 
Hoyer, Jim Clyburn, Chris Van Hollen and Rahm Emanuel, and I certainly 
want to thank each and every one of them.

[[Page 19299]]

  Charges have been made today that this bill does nothing to increase 
energy production. Indeed, the minority leader just said that. And I 
want to quote, by the way, in an August 2005 debate on this floor, when 
Minority Leader John Boehner said that the GOP energy bill, remember 
that bill, the GOP energy bill of 2005 would bring down prices, 
writing, and I quote from Minority Leader Boehner at that time. ``So 
what is being done to bring gas prices down? The Energy Policy Act of 
2005 is a balanced bipartisan bill that will ultimately lower energy 
prices for consumers and spur our economy.'' End quote from Minority 
Leader John Boehner addressing our energy concerns on August 19 of 
2005.
  The results speak for themselves. This legislation will increase 
domestic production of oil and gas. The offshore drilling provisions 
opened up from 63 to 80 percent. That's 309 up to 404 million acres of 
land off the Atlantic and Pacific coasts that are currently off limits 
to drilling. It depends, of course, on what the States decide. It goes 
beyond the bipartisan compromise proposal in the Senate, opening up the 
West Coast and the Northeast to drilling.
  The offshore drilling provisions expands oil available by at least 2 
billion barrels of oil, nearly 4 years worth of oil produced offshore 
in America and enough to power 1 million cars for 60 years. It also 
makes available enough natural gas to heat 6 million homes for over 42 
years.
  Now am I going to sit here and say that passage of this legislation 
is going to bring down the price of gas tomorrow or next month or next 
year? No, I'm not going to say that; just as the other side cannot say, 
no matter what is in their recommittal motion, that is not going to 
bring down the price of gas tomorrow, next month or next year either.
  We need a comprehensive energy plan. This bipartisan effort, this, as 
we will see by the final vote on this bill, shows that we are making 
efforts to begin the road toward a comprehensive energy package. We 
have provisions in here for carbon mitigation, for carbon capture and 
sequestration for those who say there's no coal.
  We provide $1.1 billion of tax credits for the creation of advanced 
coal electricity projects and certain coal gasification projects that 
demonstrate the greatest potential for carbon capture and 
sequestration. Of these $1.1 billion of incentives, $950 million would 
be awarded to advance electricity projects and $150 million would be 
awarded to certain coal gasification projects. Coming from a coal 
State, as I do, this provision is important.
  We also provide for the solvency for the Black Lung Disability Trust 
Fund in this legislation, something that is not inconsequential to 
those from coal States as well.
  On the revenue sharing point, we have not provided for revenue 
sharing in this bill because these are the people's resources. These 
are the resources that belong to the American people by birthright and, 
therefore, the money gained through royalties should be shared with the 
American people, and revenue sharing is not a commonly accepted method 
of providing the revenues from royalty collection. I refer to the OCS 
legislation passed in 1954 which provided for no revenue sharing.
  The only time Congress has provided for revenue sharing from these 
royalty leases is, as I said earlier, during Hurricane Katrina when the 
four States involved were in dire need of help to get back on their 
feet. So revenue sharing is not provided in this bill because we do not 
think a bribe is necessary for the States to opt in. The offer of new 
jobs, a new economy and all the related businesses thereto should be 
enough for a State if they want to opt in to this program to provide 
them incentives to opt in.
  In regard to the fiasco that's recently been revealed to the American 
people, what has taken place in the Office of the Minerals Management 
Service in their Denver office, these are public servants entrusted 
with fiduciary responsibilities of ensuring that the American people 
receive a just return for the use of their resources.
  This legislation sets up ethical codes of conduct. It prohibits 
acceptance of gifts and ski vacations and other extravaganzas that were 
being heaped upon these royalty collectors by big oil companies. This 
Committee on Natural Resources will have a hearing next Thursday and 
delve further into these hearings to see how much the American 
taxpayers were, once again, ripped off by the big oil companies.
  In conclusion, Mr. Speaker, let me comment generally about this bill 
and the need to pass it this evening. It is a real comprehensive effort 
based on the need to move toward a comprehensive energy bill. Are we 
all happy with this? No.
  As I said earlier, we are legislators. We know what the art of 
compromise is, and we know that this is a compromise between the ``no 
drillers anywhere'' and the ``drill everywherers.'' That's what this 
bill is all about.
  We cannot have opening all lands, all of our national monuments and 
other areas in this country to drilling and be fair with the American 
people. We must assure accountability. That's what we're doing with 
this legislation. As with all compromises, it does require both sides 
to give. And in return for a responsible opening of more of our 
offshore areas for drilling, our bill requires oil companies to pay 
their fair share so that we can make a historic commitment to renewable 
energy future and alternative fuels and jobs for our people.
  This bill puts us on the path toward energy independence. It protects 
our consumers. It provides transparency and accountability for the big 
oil companies. It strengthens our national security, it helps reduce 
global warming, the goals and the key ingredients that are needed for a 
comprehensive national strategy.
  And I say to my colleagues, let's look forward of where this bill can 
go provided that there is that spirit of compromise from the other 
side, from the other body and from the other end of Pennsylvania 
Avenue. And I think, when all is said at the end of the day, rather 
than shut the government down, we will see that those in the middle, 
those who truly feel compromise is part of the legislative process, 
that compromise is what the American people are yearning for these 
days, in order to meet their high energy costs, that that is where we 
will be when all is said and done on the pending bill.
  Again, I want to salute all of my colleagues that have worked so hard 
on this legislation on both sides of the aisle. I do not ignore the 
fact that there are certainly good-minded and fair-minded and 
compromise-minded individuals on the other side of the aisle. If only 
they were allowed to work their will as well.
  So this is a good bill. I again salute everybody that has been 
involved, and I ask for its passage and a defeat of the motion to 
recommit.
  Mrs. MALONEY of New York. Mr. Speaker, I rise in support of H.R. 
6899, and I thank Speaker Pelosi for bringing it to the floor today.
  This Democratic energy plan increases domestic energy supply, ensures 
more renewable energy and greater energy efficiency, and protects the 
American taxpayers by making sure that Big Oil pays their fair share of 
royalties.
  It takes strong action to lower the price at the pump, free our 
nation from its reliance on foreign oil, and create good-paying, green 
collar jobs right here in America.
  Quite simply, it is the American-owned, 21st century energy policy 
the country has been waiting for.
  My Republican counterparts have been advocating a ``drill, baby, 
drill'' approach, which supports any drilling, any where, any time, no 
matter the environmental consequences.
  Instead, H.R. 6899 offers a responsible compromise on drilling, with 
strong environmental protections.
  We don't need ``drill, baby, drill' when we can have ``change-baby-
change.''
  That's what this bill gives us.
  Mr. GOODLATTE. Mr. Speaker, during the month of August I was pleased 
to join over 130 of my Republican colleagues in Washington to represent 
the American people on the floor of this House. It is undeniable that 
the American people want us to develop our Nation's resources. This is 
demonstrated in poll after poll and exemplified with the meetings I 
have with my constituents. I always hear: Congressman, we must do 
something about energy costs!

[[Page 19300]]

  When I heard that the Speaker had announced she would be bringing a 
bill to the floor to allow us to expand energy production, I felt that 
we had achieved success for the American people. Yes, the Speaker did 
hear the calls of the American people demanding increased energy 
production, but she isn't bringing a bill to the floor to expand energy 
production. Instead, she is bringing to the floor a sham piece of 
legislation that seeks to only give political cover to vulnerable 
Democrats who disagree with the will of the American people.
  Some have cited how this bill opens up areas of the Outer Continental 
Shelf, OCS. It may technically remove some of the barriers, but it does 
not include provisions to provide the traditional revenue sharing 
between the Federal Government and States for the income generated from 
these developments. What incentive do coastal States have to then 
develop their resources? I represent a coastal State, a State that has 
expressed strong interest in developing the resources on our OCS. I 
think the Commonwealth of Virginia should benefit from revenue sharing, 
just as Texas, Louisiana, Mississippi, and Alabama have. It is unfair 
for Virginia to be treated differently than these other States when 
sharing our resources.
  Sadly, this isn't the only provision that will unfairly harm 
Virginia. This legislation also contains a one-size-fits-all Renewable 
Electric Standard. This legislation assumes that all States have the 
exact same amount of renewable resources and can develop them, and 
punishes them when they cannot with penalties. The costs of energy due 
to the Renewable Electric Standard, as estimated by just one of 
Virginia's many electric utilities, will increase $900 million for its 
retail customers. My constituents are already paying high prices for 
energy; we don't need to further increase these costs! The fact is 
Virginia does not have as many wind and solar resources as other 
states. In Virginia, we have a voluntary RPS but our RPS contains 
nuclear and waste-to-energy, two things not allowed if this legislation 
becomes law.
  Proponents of this legislation will tout how green this bill is; 
however, if my colleagues really want to promote green energy they 
should encourage the production of more nuclear sites which provide 
CO2 emission-free energy. The rest of the world is far 
outpacing the U.S. in its commitment to clean nuclear energy. We 
generate only 20 percent of our energy from this clean energy, when 
other countries can generate about 80 percent of their electricity 
needs through nuclear. It is a travesty that this legislation does not 
once mention or encourage the construction of clean and reliable 
nuclear plants. Nuclear energy is the most reliable and advanced of any 
renewable energy technology, and if we are serious about encouraging 
CO2-free energy use, we must support nuclear energy.
  Furthermore, this legislation does not even address some of our most 
promising domestic alternative and renewable energy supplies. There is 
not one thing in this bill that addresses clean coal technologies. Coal 
is one of our Nation's most abundant resources, yet the development of 
coal-to-liquid technologies is completely ignored by this bill.
  What's even more troubling is the energy resources this bill 
continues to keep out of the hands of American consumers. The 
Democrats' legislation prohibits environmentally responsible 
exploration of American oil shale resources unless states ``opt-in'' to 
such a system and the bill does not allow local communities to share in 
the revenues generated from oil shale exploration. The Department of 
Energy estimates that 2 trillion barrels of oil shale exists within the 
United States, resources that the Majority does not seem to want to 
develop.
  Furthermore, this legislation does not permit responsible exploration 
of the Arctic National Wildlife Refuge, known as ANWR, in Alaska. 
According to estimates by the U.S. Geological Survey, ANWR holds 
between 5.7 and 16 billion barrels of recoverable reserves, potentially 
producing nearly a million barrels of oil a day. Exploration and 
development in ANWR would open only 2,000 of the 19 million acres of 
the refuge, or the equivalent of an area one-fifth the size of Dulles 
Airport in an area the size of South Carolina.
  This legislation does nothing to address the energy concerns of our 
country. This legislation only makes the situation worse and it is the 
product of a flawed process that does not have bipartisan support! If 
we really want to make our country energy independent, this Congress 
must pass an energy bill that allows and encourages the development of 
our Nation's resources. Americans are tired of Congress playing 
politics when they are in desperate need of relief from high energy 
costs. It is time for Congress to get serious and allow Americans 
increased access to their energy resources.
  Mr. OBERSTAR. Mr. Speaker, I rise today in strong support of H.R. 
6899, the ``Comprehensive American Energy Security and Consumer 
Protection Act''. This bill promotes energy savings for all Americans 
and advances the national security interests of the United States by 
reducing its dependence on oil.
  In particular, I am pleased that this bill incorporates H.R. 6052, 
the ``Saving Energy Through Public Transportation Act of 2008'', which 
the House passed by a vote of 322-98 on June 26, 2008. The Committee on 
Transportation and Infrastructure also included these provisions in 
last year's House-passed energy bill, but unfortunately, they did not 
become law. At that time, decreasing America's demand for foreign oil 
was often lost in the debate, overshadowed by concerns over increasing 
our supply. But decreasing demand is one of the most immediate and 
effective ways we can deal with the high cost of gas and move America 
toward greater energy independence.
  Americans understand this. They are riding transit more and driving 
less. Public transportation all across the country is seeing record 
ridership while the number of miles traveled in personal automobiles is 
falling. Last year, Americans took more than 10.3 billion trips on 
public transportation, the highest level in 50 years. In the second 
quarter of 2008, commuters took more than 2.8 billion transit trips 
nationwide, an increase of 5.2 percent. Meanwhile, use of personal 
automobiles is falling by record numbers when measured by vehicle-miles 
traveled, VMT. In fact, much of the recent drop in both crude oil and 
gasoline prices has been due to a reduction in demand.
  People are making these choices based not only on the high price of 
gas, but also because of a very real desire to wean our country off our 
dangerous addiction to imported oil. At current rates, that means a 
saving of 1.4 billion gallons of gas a year, or 33.5 million barrels of 
oil. As transit ridership continues to grow, we can expect even greater 
reductions in oil consumption and demand. According to a recent study, 
if Americans used public transit at the same rate as Europeans--for 
roughly 10 percent of their daily travel needs--the United.States could 
reduce its dependence on imported oil by more than 40 percent. This 
``mode shift'' to transit should be a national goal, and strategies to 
achieve it should be at the forefront of any well-rounded energy 
debate.
  Unfortunately, this lesson appears to be lost on the Bush 
administration. Although voters continue to approve state and local 
ballot initiatives to support public transportation, the administration 
has opposed increased funding for transit to help public transit 
agencies keep pace with the rising costs of fuel and the demand for 
more transit service. In fact, by stressing the need for new transit 
projects to meet ``cost-effectiveness'' benchmarks above all other 
criteria, the administration has stunted or stifled altogether much 
needed growth in transit. And this short-sightedness couldn't be 
happening at a worse time.
  According to a recent study by the American Public Transportation 
Association, 85 percent of public transit systems nationwide are 
experiencing capacity problems due to the unprecedented rise in 
ridership. The survey revealed that 91 percent of public transit 
agencies report that they are reaching the limit in their ability to 
add service to meet increasing ridership demands. Further, more than 60 
percent of the transit systems report they are considering fare 
increases and 35 percent are considering service cuts, some for the 
second time in less than a year.
  Just as high gas prices and the desire to use less foreign oil are 
inspiring more Americans to take the train or bus to work rather than 
drive alone, our Nation's public transportation systems are facing 
budgetary nightmares and high fuel prices of their own that may cause 
them to be unable to meet any further growth in transit ridership. This 
bill recognizes the importance of funding public transportation to 
further our energy savings and security goals.
  Specifically, H.R. 6899 authorizes $1.7 billion over two years for 
grants to transit agencies nationwide to temporarily reduce fares, 
expand services, or offset the increased cost of system and fleet 
maintenance to meet the needs of the growing number of transit 
commuters.
  It also allows transit agencies to use these new grants to offset the 
increased cost of fuel or to acquire clean fuel or alternative fuel 
vehicle-related equipment or facilities. In addition, transit agencies 
may use these grants to establish or expand ``commuter matching 
services'', to provide commuters with information about alternatives to 
single occupancy vehicle use.
  H.R. 6899 increases to 100 percent the Federal share for clean fuel 
and alternative-

[[Page 19301]]

fuel transit bus, ferry, or locomotive-related equipment or facilities, 
thereby assisting transit agencies in becoming more fuel efficient.
  This legislation extends the Federal transit pass benefits program to 
require that all Federal agencies offer transit passes to Federal 
employees working in metropolitan areas with existing transit systems 
throughout the United States. Current law limits this program to 
Federal agencies in the Washington, DC, metropolitan region. This 
provision will provide more Federal employees with the incentives to 
choose transit options, thereby reducing their transportation-related 
energy consumption and reliance on foreign oil.
  Finally, H.R. 6899 creates a national consumer awareness program to 
educate the public on the environmental benefits of public 
transportation alternatives to the use of single occupancy vehicles.
  Mr. Speaker, public transportation in all its forms--buses, light 
rail, subways, to name a few--saves fuel and reduces our dependence on 
foreign oil. Increasing the use of public transportation by providing 
Americans the good transit service they want and need must be an 
important part of a holistic national energy policy.
  I strongly urge my colleagues to join me in supporting H.R. 6899.
  Mr. MARKEY. Mr. Speaker, I rise in strong support of this bill.
  This energy bill is truly a comprehensive energy plan. I commend the 
great work of the gentleman from West Virginia, Chairman Rahall, and 
Chairman Dingell and Chairman Miller in crafting this balanced 
legislation. I also want to commend Speaker Pelosi and Majority Leader 
Hoyer for their leadership in pulling together what is truly a 
bipartisan approach that Members from all regions should be able to 
support.
  The Republican leadership says that they want an ``all of the above'' 
energy plan. Well, today we get to see if they are serious, or if they 
have simply been playing politics. This energy bill is a comprehensive 
energy package that will protect consumers, unleash the renewable 
energy revolution, increase energy efficiency and conservation and even 
expand areas for domestic oil production.
  While the Republican leadership and the Bush administration have said 
that they want ``all of the above,'' for the 6 years that they 
controlled the White House, the House and Senate, they did almost 
nothing to increase our use of renewable energy and energy efficiency. 
For 8 years, the two oil men in the White House crafted an energy 
policy that put the interests of the American Petroleum Institute over 
the American people, and consumers are now paying the price at the pump 
for that failed fossil fuel agenda.
  One of the first actions the Bush administration took in 2001 after 
entering the White House was to convene the secret Cheney Energy Task 
Force to meet with executives from the oil industry and craft an energy 
policy. Then the Bush administration and the Republican Congress passed 
an energy bill in 2005 that gave billions of dollars to the oil and gas 
industries while nickel-and-diming renewables.
  And in this Congress, the Republican leadership has followed the 
marching orders of the Bush administration and voted 13 times to block 
legislation that Democrats have brought to the floor to increase our 
use of renewable energy, help protect consumers from high energy prices 
and ensure that big oil pays its fair share. While the Republican 
leadership says they want ``all of the above'' they have repeatedly 
chosen ``none of the above'' and voted against these measures. But here 
they are today, crying crocodile tears that all these policies that 
they have spent their entire career opposing have not been implemented.
  The Republican leadership says they want ``all of the above,'' but 
here they are today, once again opposing a truly comprehensive, 
compromise energy bill that will not only increase our use of renewable 
energy but will also provide for more drilling. Perhaps that's because 
it's not ``all of the above'' that the Republican leadership and big 
oil are really concerned with, it's really only ``all that's below''--
all the oil that's below our beaches 3 miles offshore, all the oil the 
below our national parks, all the oil that's below our most pristine 
wilderness areas.
  The comprehensive energy bill that we are considering today will 
build on last year's tremendous energy bill accomplishment. This bill 
will adopt a National Renewable Electricity standard to require that 15 
percent of the electricity that we generate in 2020 come from renewable 
sources and efficiency and will create 100,000 jobs. By further 
increasing the efficiency of our buildings, this comprehensive energy 
bill will save consumers $200 billion on energy costs. This 
comprehensive plan will extend the vital tax incentives for solar, wind 
and other renewables, and ensure that they are paid for, which will 
prevent the loss of $19 billion in investment and 116,000 jobs next 
year in these industries. And this comprehensive plan will protect more 
than 5 million Americans from an impending home heating crisis and an 
increase in the heating bill of the average family of nearly $600 this 
winter by funding the Low-Income Home Energy Assistance Program.
  And the Republicans say they want more offshore drilling, well this 
bill does that. I remain skeptical that additional offshore drilling 
will do anything to lower prices but this compromise bill ensures that 
there will be proper protections for Georges Bank off the coast of New 
England, which is one of our Nation's most important fisheries, and 
that if we are going to open more areas to drilling we first ensure 
that big oil cannot continue to drill for free on public land and reap 
billions of dollars in unnecessary tax breaks at a time when they are 
making record profits. With the renewable energy revolution that we 
will unleash with this bill it will make any additional drilling 
unnecessary in 20 years.
  The comprehensive energy bill that we are considering today, combined 
with the energy bill that Democrats passed in December, means that 
Democrats in the 110th will have passed energy bills that achieve one-
third of the reductions in global warming pollution needed by 2030 to 
save the planet and eliminate nearly twice the oil we currently import 
from the Persian Gulf.
  After 8 years of running on a Bush-Cheney-Big Oil energy plan, 
America, it is time for an oil change! It's time to change our 
dependence on foreign oil and OPEC. It's time to change from the dirty 
fossil fuels of the past to the renewable energies of the future. It's 
time to change to invest in wind and solar. It's time to change to 
start building green to save families money. The Republicans like to 
say ``drill, baby, drill,'' but for our Nation's energy policy the 
American public is saying it's high time we started saying ``change, 
baby, change.''
  Vote ``aye.'' Vote for change.
  Mr. STARK. Mr. Speaker, I rise today to support a comprehensive 
energy bill, H.R. 6899, that will help to end our addiction to foreign 
oil and will move our Nation toward a clean energy economy.
  For nearly 8 years, we have seen the consequences of policies made by 
an administration that was literally ``in bed'' with the oil companies, 
as evidenced by the recent scandal at the Mineral Management Service, 
MMS. Profits for Exxon-Mobil and others are setting records, while 
family budgets are stretched to the breaking point by high energy 
prices. Rather than putting forth real solutions, the President and his 
congressional Republican enablers have offered a regressive plan and a 
slick political slogan that amounts to more giveaways to oil companies 
with nothing that will lower prices in the short-term or move our 
Nation away from fossil fuel dependence in the long-term.
  The Democratic Congress, in contrast, has already passed legislation, 
H.R. 6, to raise fuel economy standards to 35 mpg by 2020--the first 
increase in a generation. Reaching the 35 mpg threshold will save 1.1 
million barrels of oil per day, more than 10 times the amount of oil 
that offshore drilling will be producing in 2020. By 2030, we will be 
saving 2.5 million barrels a day, or the same amount that we import 
from the Persian Gulf. That is a real solution.
  I agree with the Department of Energy's assessment that expanded 
drilling will only reduce prices at the pump by 3 or 4 cents and not 
for another 10 years in the future. However, I support the legislation 
before us today because it represents a commonsense compromise on 
drilling that protects the environment and allows individual States to 
decide whether drilling off their coasts is appropriate.
  But this legislation is about much more than drilling. It is a 
comprehensive plan that takes steps to lower gas prices in the near 
term by releasing oil from the Strategic Petroleum Reserve and fully 
funding energy assistance programs so families can heat and cool their 
homes. It reigns in the excesses of oil companies and ensures that they 
pay their fair share back to the taxpayer when they drill on public 
lands. Accountability will be restored to the scandal plagued MMS by 
enacting tough new laws with criminal penalties for MMS employees who 
engage in unethical behavior with the very oil companies they are 
charged with regulating.
  Finally, this bill ends our dangerous reliance on fossil fuels and 
confronts global warming. This legislation establishes a Renewable 
Portfolio Standard that will mandate 15 percent of electricity to be 
generated from renewable sources by 2020, lowering the demand for coal 
and other dirty fuels. It makes an $850 million yearly investment in 
public transportation so that cities and States can expand

[[Page 19302]]

services. In addition, the legislation will provide incentives for the 
production of renewable energy and will modernize energy efficiency 
codes for buildings.
  The Comprehensive American Energy Security and Consumer Protection 
Act is a real solution to America's energy needs. It may not satisfy 
the ``drill, baby, drill'' crowd, but after suffering through their 
failed policies for the last 8 years their slogans are little more than 
hot air.
  I urge all of my colleagues to support this legislation.
  Mr. CARSON. Mr. Speaker, the American people are hurting and in need 
of immediate relief. And the relief they need extends beyond their 
urgent need for lower energy costs. Mr. Speaker, the American people 
also need jobs and they need them now.
  And I am proud to say that this bill seeks to achieve both--it seeks 
to lower energy costs and create jobs. This legislation will create 
several green jobs by providing tax incentives to companies that invest 
in renewable energy resources.
  The creation of green jobs was the focus of a forum I recently hosted 
in my district. For too many years, hardworking Hoosiers have seen 
good-paying manufacturing jobs leave the great State of Indiana. 
Through the creation of green jobs, this bill will boost our economic 
performance and lessen our dependence on foreign oil.
  I am proud to support this legislation.
  Mr. THORNBERRY. Mr. Speaker, the approval ratings for Congress are at 
record lows, and it is no wonder. The American people see that too 
often this Congress has played partisan games rather than confronting 
the issues head-on in a straightforward way. Today the games continue.
  The Democrats' Energy Bill is a fig leaf designed to cover a 
political problem. It is not real. Rather than untie our hands so we 
can produce more energy of all kinds here at home, in many ways this 
bill makes it harder.
  In several important areas of energy production, this bill does 
nothing.
  This bill does nothing to develop more nuclear energy.
  This bill does nothing to build more refineries.
  This bill extends the wind tax credit by only 1 year, but does 
nothing to make it easier to plan and finance the large investments 
that are necessary to build wind farms.
  Even on drilling off our coasts, this bill replaces a temporary ban 
that will expire 2 weeks from today and with a permanent ban on 
exploring and producing where most of the oil is. It prohibits all 
drilling within 50 miles of the coast line, where the Minerals 
Management Service says 88 percent of the oil is located.
  From 50 to 100 miles, States can choose to drill, but get no royalty 
payments--none. So there is little incentive for them to allow drilling 
even for the 12 percent of the oil that may be there.
  Drilling can occur more than 100 miles away--which is technologically 
impossible in some areas. But even where it is possible, this very same 
bill repeals the existing tax incentives which encourage deep water 
drilling.
  Of course, should a new drilling opportunity slip through these new 
regulations and restrictions, lawsuits are ready and waiting to shut it 
down, and this bill does nothing to limit them.
  There are many good, serious energy proposals that have been 
introduced in this Congress. Over a year ago, for example, I introduced 
the ``No More Excuses Energy Act,'' a bill that would encourage energy 
production of all kinds here at home. Unfortunately, the legislation 
that we are discussing today is just another excuse not to take real 
action to solve our energy shortfalls.
  It hardly seems too much to ask to allow this House 2 or 3 days to go 
through the various ideas, allowing members to vote according to their 
districts and their consciences. Energy is that important, that central 
to our country's security and quality of life. Instead, this charade 
will disappoint the American people yet again on the issue that most 
directly affects their family and well-being. We can and should do 
better.
  Mr. LANGEVIN. Mr. Speaker, I rise today in strong support of the 
Comprehensive American Energy Security and Consumer Protection Act, and 
I would like to thank the Democratic Leadership of the House of 
Representatives for bringing this critical bill to the floor. In my 
home State of Rhode Island, the high cost of oil and gas have become 
the top concern for families and businesses struggling to keep up in 
today's economy. This legislation promotes short term solutions to 
increase supply of domestic oil and gas, while establishing a long term 
national energy policy that invests in the development of renewable 
energy resources.
  This legislation will open the Outer Continental Shelf to responsible 
oil and gas development between 50 and 200 miles off the coast, 
requiring state approval between 50 and 100 miles. It will protect 
national marine monuments and sanctuaries, as well as the Georges Bank 
fishing area off the coast of New England. Further, the Interior 
Department will be required to ensure that drilling is only approved if 
it can be done in a manner that protects the coastal environment, 
marine environment, and human environment of the State coastal areas 
and the Outer Continental Shelf. We cannot sacrifice the health of our 
coastlines and the people who live there, and I am pleased that this 
bill takes a safe and responsible approach to domestic drilling.
  While I support the provisions to increase domestic oil production, I 
have said time and time again that we cannot drill our way out of our 
national energy crisis. The U.S. represents 25 percent of the world's 
daily oil consumption, yet we only have two percent of the world's 
reserves--relying solely on new production simply doesn't add up. Under 
this bill, revenue from domestic offshore production will be reinvested 
into the development of renewable energy resources, such as wind, 
solar, and bio-fuels, to bring clean, affordable solutions to our 
Nation. I also strongly support a provision in this bill to require 
electric power companies to produce at least 15 percent of their 
electricity from renewable sources by 2020. Furthermore, the 
legislation includes several proposals requiring the Department of 
Energy and Department of Housing and Urban Development to create new 
efficiency standards for both residential and commercial buildings and 
to help educate consumers on how to become more energy efficient, 
therefore limiting our demand for foreign oil.
  I am also pleased to see tax credits included for the promotion of 
more energy efficient appliances and vehicles. Increased demand for 
green products will bring new jobs in green technology to our 
communities. Further, because this bill rolls back tax breaks to big 
oil and uses revenues from drilling to pay for the increased investment 
into renewable resources, we will not leave debt behind to be paid for 
by future generations.
  I believe that it is critical for our nation to achieve energy 
independence and to end our reliance on foreign oil, while preserving 
our environment for future generations in a fiscally responsible 
manner. The Comprehensive American Energy Security and Consumer 
Protection Act reaches a careful balance in support of these efforts, 
and I am pleased that this Congress is putting the safety and security 
of our Nation's families ahead of excessive industry profits. I urge my 
colleagues to join me in support of energy independence by voting yes 
on the Comprehensive American Energy Security and Consumer Protection 
Act.
  Ms. HARMAN. Mr. Speaker, I rise in support of the Comprehensive 
American Energy Security and Consumer Protection Act, but as a 
Representative of America's most stunning coastline, I do so with some 
reservations.
  There is much to like in this bill. It includes long-sought 
alternative energy tax credits, which are essential to the continued 
development of the emerging clean energy industry.
  It also requires utility companies to generate more power from 
renewable energy sources (following the lead of my home State of 
California), creates a reserve to pay for future research and 
development of clean renewable energy and energy efficiency 
technologies, and requires the adoption of more energy efficient 
building codes.
  These are all serious, much-needed answers to our energy crisis--
reasoned, carefully crafted, and targeted toward moving us into a new 
era of clean energy.
  That is not, unfortunately, the path pursued in other parts of the 
bill, particularly those that concern off-shore drilling.
  We've heard a lot about drilling these days. ``Drill, baby, drill,'' 
or so the chant goes. It's a nice pep rally cheer, a clever soundbite. 
But it's not serious policy, and everybody knows it.
  Here are the facts. Oil is traded on a global market, which sets 
prices based on global supply and global demand.
  Given the staggering amounts of oil that the world produces and 
consumes every day, only a staggering amount of new supply will affect 
price (particularly given the skyrocketing demand for oil in China, 
India, and the rest of the developing world).
  The amount of oil off the coasts of the United States is very far 
from staggering. Paltry is more like it.
  According to the Bush Administration's own Energy Information 
Administration, even if we opened the entire Outer Continental Shelf 
for drilling tomorrow, it would take years (possibly up to 2030) for 
that oil to hit the market.
  And then, all that drilling would only increase our domestic 
production by 200,000 barrels of oil per day.
  The world consumes around 80 million barrels of oil per day. This new 
production would be a tiny drop in an ocean of oil.

[[Page 19303]]

  Even the Bush Administration concedes that the impact on oil prices 
from such a minuscule increase would be, and I quote, 
``insignificant.''
  And what do we risk for this ``insignificant'' increase in supply?
  A few oil companies will make a little more money. But we'll also put 
the (mostly) pristine California coastline--an environmentally fragile 
yet economically indispensible asset--at the mercies of chance, human 
fallibility, and the ability of new oil rig technology to withstand the 
inevitable big quake.
  That's not a risk that I'm willing to take.
  Fortunately I'm not alone. Leadership wisely gave states some 
discretion. The bill would forbid drilling within 50 miles of the 
coast, and only allow drilling from 50-100 miles if a state ``opts-in'' 
(affirmatively passes a law allowing drilling).
  I am confident that California is unlikely to ever ``opt-in.''
  My strong preference is to retain the moratorium against off-shore 
drilling, but we don't have the votes to do that. The Democratic 
Leadership asserts that this compromise is necessary to avoid the 
calamity of a drilling free-for-all off our coasts. Many in the 
environmental community and leading newspaper editorial boards in 
California and around the country concur.
  In that case, I can live with it.
  I wish we could do better. The American public is engaged. The media 
is devoting front-page articles to energy issues. We have the chance to 
make a significant difference in the way our country thinks about and 
uses energy.
  Portions of this bill take big leaps in that direction, and 
Leadership should be commended for standing by these priorities.
  I hope that my three grandchildren will eventually be the 
beneficiaries of this foresight.
  Mr. ORTIZ. Mr. Speaker, I rise today in support of H.R. 6899, the 
Comprehensive American Energy and Consumer Protection Act.
  I appreciate the hard work that the sponsors of the bill--Chairmen 
Dingell, Rahall, and Miller and my fellow Texan, Chairman Green--have 
put into crafting this legislation.
  They considered different viewpoints and different approaches to the 
energy issue and came together in an inclusive manner that will lead us 
down the right path.
  We have heard from our constituents, time and time again, that we 
need to become more energy independent and we need to produce more of 
our energy supply domestically.
  We have heard from our constituents, time and time again, that we 
need to invest in the future and develop alternative energy resources, 
such as wind and solar power.
  We have heard from our constituents, time and time again, that we 
need to provide tax credits so that our businesses have the incentive 
and opportunity to produce more energy.
  And, we have heard from our constituents, time and time again, that 
we need to act on lowering the price at the pump, which is adversely 
affecting many south Texas families, farmers, and small businesses.
  We can look forward to a balanced plan that expands both conventional 
and renewable energy resources. It will provide for new domestic 
drilling opportunities, both off shore and on land. It will release oil 
from the Strategic Petroleum Reserve. It will spur companies and 
businesses to do more research and more exploration. It reforms the way 
royalties are paid between the Government and the oil companies. It 
provides incentives to conserve our energy use and raise energy 
efficiency standards.
  This legislation is a compromise. It directs us in the right 
direction towards energy independence. My colleagues have called for an 
all of the above approach when it comes to the energy issue. I believe 
we have accomplished that.
  Mr. NEAL of Massachusetts. Mr. Speaker, as the House considers tax 
legislation to promote the development and deployment of alternative 
and renewable energy technologies, I rise today in support of the 
proposed plug-in electric drive motor vehicle tax credit and, in 
particular, making the tax credit even more robust and immediate by 
including in the credit road-certified two-wheel vehicles and low- 
speed neighborhood electric vehicles. I support the underlying bill, 
but hope as it progresses that this clean energy incentive may also be 
included.
  I know that House Ways and Means Committee Chairman Rangel and the 
House Leadership are committed to renewing existing energy tax 
provisions and enacting new incentives for environmentally-friendly, 
domestic energy production. And I believe that the tax credit for plug-
in electric drive vehicles is a critical component of that commitment. 
This tax credit will encourage the ongoing efforts to develop and bring 
to the marketplace the technology that will be necessary for these 
vehicles to become a common occurrence on our roads and highways. 
Tailpipe emissions from the combustion of gasoline and diesel fuel are 
by far the largest contributors to climate change and the air quality 
problems that exist in many regions of our country. This tax credit 
will go directly at addressing these issues by displacing foreign oil 
with electricity that is domestically produced with--it is my hope--a 
significant and growing renewable component.
  The plug-in electric drive vehicle tax credit is so vital to our 
alternative and renewable energy priorities that it should begin 
working as soon as it is enacted, but it can only do so by expanding 
the credit to include both road-certified two-wheel vehicles and low-
speed neighborhood electric vehicles, which are now in retail 
production. These vehicles are specifically designed to address the 
short-haul transportation needs of urban and suburban communities. 
Because the first mile of a trip creates the most tailpipe emissions, 
these vehicles can play an important and significant role in mitigating 
the unique contribution of urban and suburban transportation to our air 
quality and climate change problems.
  If enacted, the plug-in electric drive motor vehicle tax credit will 
be an important element of our policy to encourage the development and 
deployment of alternatives to the consumption of foreign oil. As the 
manufacturers of electric drive two-wheel and low-speed vehicles 
already are demonstrating, this policy also has the added benefit of 
creating quality jobs here in the U.S.
  While the technology for plug-in electric cars is still being 
developed, road-certified two-wheel vehicles and low-speed neighborhood 
electric vehicles can begin reducing our reliance on foreign oil today, 
and including these vehicles in the tax credit will help develop a 
consumer market for them, just as the credit will help create a market 
for plug-in electric automobiles and trucks that are expected to come 
on-line in a few years.
  Again, I thank the Speaker and Chairman Rangel for their important 
work on the critical issue of ensuring our Nation's energy security.
  Mr. SHAYS. Mr. Speaker, this energy bill is a missed opportunity to 
have meaningful debate on America's energy needs and constructive 
compromise about America's energy solutions.
  High energy costs are bringing down our economy; energy bought from 
overseas is depriving us of American jobs; and foreign purchases of 
energy is transferring $700 billion to countries that would do us harm.
  I strongly believe in a comprehensive energy policy that includes 
conservation, renewable sources, nuclear power, and American oil and 
natural gas.
  H.R. 6899 brings us closer, but is silent on several important 
issues. Regrettably, the authors of this bill have refused to allow 
members to make any amendments.
  I am grateful this legislation encourages investment in renewable 
energy technologies by extending the production tax credit for wind, 
solar, geothermal and biomass. This measure provides the much-needed 
assurance that investors need to start developing these technologies.
  I am also grateful H.R. 6899 would establish a Renewable Energy 
Standard, requiring electricity companies to produce 15 percent of 
their electricity from renewable sources by 2020, although I have 
advocated increasing this standard to 20 percent by 2020.
  The bill also repeals the moratorium on drilling on the Outer 
Continental Shelf, OCS, and would allow states to ``opt-in'' to drill 
between 50 to 100 miles off of their coast. Unfortunately, without 
revenue sharing, I am concerned states will have little incentive to 
develop these resources.
  I would have particularly liked to have seen revenues derived from 
these leases directed towards further renewable energy investment, so 
that American oil and natural gas would pay for the renewables we all 
want.
  Although I will vote for this bill, I believe this is a missed 
opportunity for meaningful, bipartisan debate and a better bill.
  Mr. RAMSTAD. Mr. Speaker, I rise today in strong support of this 
bipartisan comprehensive energy bill that opens offshore areas to 
drilling, provides incentives for the development of renewable energy, 
clamps down on speculators and requires oil companies to drill on 69 
million acres of leased land and water.
  I oppose the alternative bill, which would give coastal states that 
support drilling over $40 billion from oil and gas royalties over the 
next 10 years. After 2019, the federal government would be required to 
transfer to coastal states nearly 40 percent of all federal revenues 
from offshore oil and gas drilling ($6 billion every year).
  Even the Administration has told us that such a cost would be too 
high!
  We should not hand coastal states billions of federal dollars, while 
giving them undue influence over national resource management.

[[Page 19304]]

And, despite its cost, the alternative plan would do little to increase 
the supply or reduce the price of oil, according to the Department of 
Energy.
  Congress should debate offshore drilling on its own merits without 
using resource revenues to buy votes. Our nation needs a comprehensive 
energy reform policy that will boost supplies of all types of energy, 
reduce our dependence on foreign oil and lower gas prices. The American 
people deserve nothing less!
  Mr. UDALL of Colorado. Mr. Speaker, I support this legislation that 
will help provide price relief for American families, open up new areas 
for domestic energy production, and assist us to make the transition to 
a new energy economy that will reduce our dependence on imported oil--
all without adding to the federal deficit.
  While this bill is not perfect--I would prefer to see the more 
comprehensive approach embodied in my ``American Innovation, American 
Energy'' plan--it is a step in the right direction and deserves 
approval.
  It will help us address gas prices in the short term by including a 
provision (as does my energy bill) to release additional oil from the 
Strategic Petroleum Reserve (SPR). This release would provide for a 
quick increase in the supply of petroleum in our consumer market and so 
could reduce the likelihood of further short-term increases in the 
price of gasoline and other refined products. And, it will do this in a 
way that is both cost-effective and protective of our national security 
interests.
  Under the bill, the Energy Department (DOE) would sell at least 20 
million barrels of light grade oil now stored in the Strategic 
Petroleum Reserve, and sales would continue for 6 months or until 70 
million barrels have been sold, whichever comes first. But the draw-
down would not be permanent because the bill would require the energy 
department to acquire, through purchase (using money from the sales) or 
exchange, heavy grade petroleum for storage in the strategic reserve, 
to replace the light grade petroleum that would be sold.
  Right now, slightly more than 700 million barrels of oil are stored 
in the strategic reserve--so the amount to be sold under the bill would 
be only about 10 percent of the amount on hand.
  Importantly, the bill specifies that the amount of oil stored in the 
strategic reserve could not drop below 90 percent of the amount stored 
when the bill is enacted. The most recent data I have seen indicate 
that the reserve is currently filled nearly to capacity, so the bill 
will not cause a significant reduction in the amount stored.
  Furthermore, this bill will help diversify the type of oil in the 
SPR, meaning that this bill not only is compatible with the national 
security purposes of the SPR, it can actually assist in achieving them.
  This bill will also require that oil companies pay their fair share 
of royalties on flawed leases granted in 1998 and 1999. Because of 
mistakes made by the Interior Department, oil companies holding 70 
percent of leases issued for drilling in the Gulf of Mexico in 1998 and 
1999 became exempt from paying any royalties, costing American 
taxpayers about $15 billion.
  And the bill will address the recently discovered ethical problems 
within the Department of Interior's Mineral Management Service (MMS)--
problems that were particularly rampant at the MMS office in Denver.
  Numerous government employees were found to have very inappropriate 
relationships with employees who worked for the very companies they 
were regulating. This bill will increase penalties for both MMS 
employees and companies that hold oil or gas leases, strengthen the MMS 
code of ethics, and strengthen the office of the Inspector General, 
which uncovered these problems.
  But, Mr. Speaker, this bill recognizes that short-term solutions and 
fixing past problems are no ``silver bullets'' for the factors that 
have led to the current high price of oil and products such as gasoline 
that are made from oil. We need long-term solutions as well.
  This bill includes opening up new areas of the Outer Continental 
Shelf (OCS) to oil and gas drilling. Specifically, the bill would end 
the current moratorium on OCS drilling and would permit leasing between 
50 and 100 miles offshore if a State ``opts-in'' to allow it off of 
their coast, while providing protection for environmentally sensitive 
areas. I think that is a critical component of this provision--states 
must be able to have a say in drilling activity within their territory.
  A separate provision in the bill deals with Federal lands that have 
been leased for energy exploration and development under the Mineral 
Leasing Act but where such activities have not yet occurred--yet 
another provision that is also in my energy plan. While it is important 
to understand the reality that oil and gas exploration is a complicated 
commercial and scientific enterprise involving efforts not easily 
fitting within strict regulatory timelines, I think that this is a 
reasonable response to current conditions. In essence, it would bar the 
current holders of federal mineral leases--whether for onshore or 
offshore areas--from obtaining additional leases unless they are able 
to show that they are ``diligently developing'' the leases they already 
hold. The Secretary of the Interior would be responsible for spelling 
out in regulations exactly what would be needed to show such ``due 
diligence.''
  These provisions also include a requirement for the Department of the 
Interior to offer at least one lease sale annually in the National 
Petroleum Reserve in Alaska. This is an area of well-established 
potential that was initially made available for leasing in the Clinton 
Administration, and with regard to which the current Administration 
just today announced that 2.6 million acres would be offered at lease 
sales in the near future. Dictating a leasing timetable in legislation 
is unusual, and I have reservations about that approach--but the 
potentially beneficial effects on prices from tapping the reserves in 
this part of Alaska are undeniable.
  In addition, the bill would reinstate a ban on the export of Alaskan 
oil that was previously a matter of federal law. Oil is a globally-
traded commodity, so the effect of this will be limited, but it to an 
extent might reduce the extent to which imports are used to supply the 
domestic market.
  And the bill calls on the President to use the powers of his office 
to facilitate the completion of oil pipelines into the National 
Petroleum Reserve and to facilitate the construction of an Alaska 
natural gas pipeline to the continental United States to move the 
product to market. These are only exhortations, but I see no objection 
to their inclusion in the legislation.
  I am particularly pleased that the measure before contains a 
provision that I authored, along with Representatives Tom Udall and 
Todd Platts, to establish a Renewable Electricity Standard (RES). This 
provision will require utilities to acquire 15 percent of electricity 
production from renewable resources by 2020. While I would prefer to 
see us adopt a RES of 20 percent by 2020, as we have in Colorado and as 
is in my energy plan, establishing a 15 percent by 2020 is a good step 
in the right direction.
  As co-chair of the Renewable Energy and Energy Efficiency Caucus, I 
am especially pleased to see the bill include needed extension for tax 
credits for renewable energy. The Production Tax Credit (PTC) in 
particular has been instrumental in promoting the creation of a 
renewable energy industry. An extended PTC will provide more market 
certainty and we must have an extension of this key tax credit before 
the current credit expires at the end of 2008.
  I must add that, while I am pleased that the bill provides a three 
year extension of the PTC for most renewable energy sources, I am 
concerned that it only provides a one-year extension for wind energy. 
Wind is a very promising renewable energy source and a one year 
extension will not be as helpful for the industry. I will continue to 
lead the fight to extend the PTC for more than one year in fact, my 
energy plan includes a four year extension of the PTC for all renewable 
energy sources.
  The bill also extends the Investment Tax Credit (ITC) for solar 
energy, qualified fuel cells, and microturbines for eight years. The 
ITC will help companies with initial investment costs in expanding 
these renewable energy sources across the country.
  The bill also authorizes new clean renewable energy bonds (CREBS) for 
public power providers and electric cooperatives. This is a critical 
tool, especially for Colorado's rural co-ops and municipal utilities.
  Of course, the cheapest kilowatt of energy is the one you don't use 
and energy efficiency also has a key role in addressing our energy 
needs. This bill will provide incentives to lenders and financial 
institutions, including the Federal Housing Administration, to provide 
lower interest loans and other benefits to consumers who build, buy or 
remodel their homes to improve their energy efficiency. It will also 
establish a residential energy efficiency block grant program to 
improve the energy efficiency of housing.
  Transportation is another area of high energy use and public 
transportation is becoming more and more necessary as gas prices 
continue to rise. This bill establishes $1.7 billion in grants to 
transit agencies for the next two years, which will help reduce transit 
fares for commuter rail and buses and expands service.
  While I would like to see much more for transportation, such as the 
increase in vehicle efficiency and additional advancements in 
alternative fuels that are included in my energy plan, this public 
transportation provision is a good start.

[[Page 19305]]

  I maintain strong reservations about the pace at which this 
Administration is pursuing oil shale development in Western Colorado. 
Before commercial leasing occurs, we need to know more about oil shale 
development's impacts on water and local communities.
  Until those questions are answered, I do not believe that the federal 
government should rush ahead with oil shale leasing and I therefore 
have been fighting, with my colleague Representative John Salazar, to 
ensure that the necessary research and development can be completed 
before we move ahead. I have also been fighting to ensure that the 
State of Colorado has a voice in the development of oil shale, so that 
the wisdom of Westerners can help us avoid the pitfalls that have sunk 
oil shale development in the past.
  At the end of this month, the moratorium on commercial oil shale 
leasing is scheduled to expire. In the event it does, I believe that 
the state of Colorado should have a safety valve so that it can 
determine the pace of oil shale development within its borders. Section 
171 of the energy bill currently before the House aims to create that 
safety valve, and to ensure that regardless of the Administration's 
desire to rush ahead with oil shale development at all costs, Colorado 
and other states can control the pace of development.
  In conclusion, Mr. Speaker, I think this bill deserves support. But 
it certainly is not all that is needed in terms of energy policy. We 
need to do more.
  I think we need to look at increasing mileage standards for new cars 
and trucks. Specifically, I believe we have the technology to require 
that all new vehicles achieve 35 miles per gallon by 2015 and, with 
additional American innovation, we can achieve 50 miles per gallon by 
2030. I also think we need additional incentives for Americans to 
purchase high efficiency vehicles and for manufactures to produce many 
vehicles that use alternative fuels. And we need to aggressively pursue 
development of alternative energy sources, including solar and wind 
power, in order to reduce our dependence not just on imported oil but 
on all fossil fuels. We also need to work even harder to increase 
energy efficiency, so that we get a greater payoff from all energy 
sources.
  I hope today we can move this bill forward and promote positive 
change that will benefit our families and rural communities, save 
consumers money, reduce air pollution, and increase reliability and 
energy security.
  I strongly encourage my colleagues in the House to vote for this 
needed legislation, and also encourage quick action in the Senate so 
that we may move it to the President's desk.
  Mr. HOLT. Mr. Speaker, there is no denying that America is suffering 
from an energy crisis. My constituents are paying record prices at the 
pump, they are paying higher prices for food and commodities. This 
problem is only going to get worse this winter when they will be paying 
15 percent more to heat their homes than last year. With family budgets 
already being stretched to the breaking point, Congress needs to act 
and to act quickly to address this problem. This will require both long 
term solutions that decrease our reliance on fossil fuels and imported 
fuels and short term solutions which will help bring down the price of 
energy now.
  I have heard from a number of my constituents that a proven way to 
address both our short term and long term energy costs is to renew the 
renewable energy tax credit and the production tax credit that are due 
to expire at the end of this year. We already know how effective these 
tax credits are. For example, wind energy is not only a significant 
component of the global warming solution, but also a powerful engine in 
our economy. Since January 2007, more than 40 wind industry 
manufacturing facilities have been announced, brought online, or 
expanded in the U.S., creating over 9,000 jobs and one billion in new 
manufacturing investment. When the production tax credit lapsed in 
2000, 2002 and 2004, wind capacity installation dropped 93 percent, 73 
percent and 77 percent, respectively, from the previous year. It is 
unwise to allow the wind production tax credit to expire and allow this 
bright spot in our economy to grind to a halt.
  The solar energy production tax credit and the solar residential tax 
credit have been instrumental in helping my home state of New Jersey 
become a leader in the production of solar energy technology. New 
Jersey is also one of the nation's fastest growing solar energy 
markets. The extension of the solar energy tax credit will spur job 
growth in communities and would help New Jersey reach its goal of 
having 20 percent of its electricity derived from renewable sources by 
the year 2020. I have heard from companies in my district that if we 
don't extend the production tax credit they will have to shut down new 
solar projects or charge more for energy.
  The tax credit for consumers has been equally effective in saving our 
constituents thousands of dollars on their energy bills. For example, I 
was recently contacted by Phyllis who lives in Marlboro, New Jersey. By 
utilizing the residential energy investment tax credit, Phyllis was 
able to install 55 solar panels on the roof of her home. Phyllis also 
used the investment tax credit to purchase a high efficiency heating 
and cooling system. Together these investments have decreased her 
energy costs to one fourth the cost she was paying the year before. 
Phyllis is also selling the excess energy her solar panels gather back 
into the grid and has made over $2,000 this summer. We need to 
encourage more Phyllises--that is how we will break our dependence on 
19th century technology.
  The renewal of these tax credits will also help to increase our 
economy by creating hundreds of thousands of jobs. According to a 
recent study, if the renewable energy tax breaks expire at the end of 
this year, over 116,000 jobs in wind and solar industries would be lost 
in one year. Today, when the predicted economic growth forecast is an 
anemic pace of 1.6 to 2 percent and unemployment is likely to continue 
to climb, we in Congress should do everything we can to ensure job 
growth and preserve jobs.
  Renewable energy tax credits are instrumental to ensuring growth in 
the renewable energy sector, bolstering our national economy, providing 
us with home growth energy and have the potential to save our 
constituents thousands on their energy costs. It would be a disservice 
to our constituents if we do not act prior to Congress adjourning to 
extend and expand renewable energy tax incentives. Therefore, I have 
introduced legislation today that will extend the renewable energy tax 
credit, production tax credit, and the hybrid vehicle tax credit for 
ten years. This legislation would help to grow our economy and provide 
for a secure energy future.
  Mr. BLUMENAUER. Mr. Speaker, I rise in support of the ``Comprehensive 
American Energy Security and Consumer Protection Act.'' It looks like 
the Republican mantra of ``drill, baby, drill!'' and their threat to 
hold the entire operation of government hostage in order to eliminate 
the decades-old ban on drilling off our coasts may actually end up 
doing a favor to those of us who want a comprehensive and sustainable 
approach to energy policy.
  Ironically, there is not much controversy about the impact of more 
drilling on gas prices. Even the Bush administration's own Department 
of Energy agrees that more drilling will make no difference for two up 
to decades, and even then any impact on the price at the pump would be 
insignificant.
  When it comes to drilling, the real issue is about surrendering more 
of our energy future to a handful of large oil companies to develop 
when they want to, according to their terms, and whether or not we are 
going to get full value for the taxpayer dollar. The American citizens, 
after all, own our oil and the evidence is that other countries drive a 
stronger bargain for their oil than we do.
  Indeed, the comic, yet tragic Inspector General's report about 
mismanagement, collusion, conflict of interest, partying, and even 
sexual liaisons between the Three Stooges operation that is the 
Minerals Management Service and the industry they are supposed to 
regulate, is an example of the failure of the Republican oil 
administration. It is also the fault of the Republicans, who ran 
Congress until recently, and who are even less concerned about 
providing adult supervision.
  I am proud that the Democrats have responded today with a wide-
ranging proposal that offers opportunities for some responsible 
drilling for gas and oil, but goes far beyond just drilling This bill 
ensures that taxpayers get fair value for the oil from public lands and 
waters and provides additional incentives for renewable energy and 
conservation. It presents another opportunity to extend the production 
tax credits so essential to the emerging new sustainable green energy 
sources like wind and solar which, despite having passed the House five 
times, is still resisted by Republicans in the Senate and the 
President.
  I am also pleased that this bill recognizes that giving Americans 
transportation choices will help reduce the pain at the pump by 
expanding service and reducing transit fares for commuter rail and 
buses.
  This legislation puts all the pieces together in a comprehensive, 
thoughtful way that answers the legitimate concerns of the American 
public with more than a bumper sticker solution. As is always the case 
in the legislative process in a democracy, this bill is not everything 
that anyone person would want. For example, I would prefer to extend 
the moratorium on drilling off our shores for more than just 50 miles.
  However, compared to the Republicans' one-dimensional, disingenuous 
approach to

[[Page 19306]]

energy policy, in which they seek to obscure their 7\1/2\ years of 
mismanagement and misdirection, this bill is certainly light-years 
ahead. It will also provide a framework to look at the big picture 
between now and November and an important point of departure for a new 
administration and Congress to follow through.
  We are not going to reverse years of myopia and mismanagement 
overnight; certainly not in one bill in the few remaining weeks of this 
Congress. Today, we do have an opportunity to tie the pieces together 
in a way that will move us further along to solving the problem rather 
than dueling sound bites.
  Mr. LEVIN. Mr. Speaker, I rise in strong support of the energy 
legislation before the House.
  We need a comprehensive approach that includes responsible 
development of additional energy resources, greater energy efficiency, 
tax incentives to spur alternative energy, investment in new 
technologies, and relief to American consumers. The bill before the 
House does that.
  It is clear that a more-of-the-same approach to energy will not work. 
If we've learned nothing else from the last eight years, we've learned 
that we cannot drill our way to energy security. Neither will 
conservation alone do the job.
  The legislation before us provides long-term incentives for renewable 
energy that will give the solar, wind, and biomass industries the 
stability they need to make investments in additional production 
capacity. There are also significant incentives for making our nation 
and economy more energy efficient.
  The offshore drilling provisions of this legislation open up as much 
as 400 million acres of land off the Atlantic and Pacific coasts that 
are currently off limits to drilling. Through this compromise, we will 
expand oil production offshore, while setting a reasonable buffer zone.
  The legislation requires electric utilities to produce more of their 
electricity from renewable energy sources. This is smart energy policy 
that will create new industries and new American jobs.
  The legislation increases the tax credit for alternative refueling 
property, such as E85 pumps, and extends the credit through 2010. 
Biofuels are an important component of our nation's energy strategy, 
and U.S. automakers have made significant investments to bring flex-
fuel vehicles to market. To maximize the impact of this progress we 
need to speed the deployment of E85 pumps.
  This legislation also provides incentives for manufacturers to 
produce washing machines, refrigerators and dishwashers that push the 
boundaries of energy and water efficiency, and to build them in the 
United States. Reducing the energy and water usage of a washing machine 
over time and across millions of households will produce remarkable 
reductions in energy and water usage, saving consumers billions on 
their utility bills.
  In a word, the approach taken by this bill is comprehensive. It 
addresses both the supply and demand sides of our nation's energy 
policy. It is a balanced, responsible and long-term approach to 
addressing the challenges of energy security. I urge all of my 
colleagues to support this comprehensive package.
  Mr. HOLT. Mr. Speaker, I rise today in opposition to H.R. 6899, The 
Comprehensive American Energy Security and Consumer Protection Act.
  Today's energy crisis is based on a generation of failed policies 
which have made us excessively dependent on foreign fuels. We must 
learn from the mistakes of the past and find a new direction that will 
decrease our reliance on gas and oil and move our energy policy 
forward. Today my constituents in New Jersey are paying more than $3.50 
at the pump. The steep increase in gas prices is stretching family 
budgets to the breaking point, and I am deeply concerned about the 
impact that prices are having on American consumers. Congress needs to 
pass comprehensive legislation that will help families struggling with 
rising gas and fuel oil prices in the short-term, while developing a 
long-term strategy that decreases our dependence on foreign oil and 
reduces our greenhouse gas emissions.
  The legislation that we are considering today, the Comprehensive 
American Energy Security and Consumer Protection Act, has some good 
provisions, provisions that could help to move our country's energy 
policy in the right direction. I consistently have supported many of 
these provisions in the past. I have voted in favor of renewing the 
renewable energy tax credits three times this Congress. I have voted to 
repeal the billions of dollars in tax breaks that have been given to 
oil companies at the expense of the American taxpayer and to invest 
this money in clean, renewable energy. I have voted to provide relief 
to our public transit agencies which are struggling to meet the 
skyrocketing demand for public transportation. Twice I have voted to 
encourage oil companies to drill on the 68 million acres of the lands 
open for drilling both onshore and offshore that currently are leased 
by oil companies for production, yet remain unused. I have supported 
legislation which would help to increase supply for oil and decrease 
demand for oil including releasing oil from the Strategic Petroleum 
Reserve, instituting a national Renewable Portfolio Standard, and 
increasing the efficiency of buildings and appliances. I have 
consistently supported comprehensive reform of our nation's energy 
policy. Last year I supported H.R. 6, the Energy Independence and 
Security Act, a law that will make a real difference in moving our 
energy policy forward by raising the Corporate Average Fuel Economy 
Standard. However, unlike H.R. 6, the legislation before us today is 
not the comprehensive policy that we need to move our country forward 
and I cannot support it.
  I believe that drilling in environmentally sensitive areas, such as 
our coastline, is unwise. Some in America claim that drilling--here, 
now, and everywhere--will bring instantaneous relief to families paying 
painful gas prices. The facts do not support this claim. ``Drill baby 
drill'' is not an energy policy, it is a slogan to hide behind to avoid 
corning up with a real policy which will help America move towards 
sustainable, affordable energy. There is no easy solution to this 
crisis, and the evidence shows that drilling in OCS would save pennies 
per gallon years from now. We can begin now, not years from now, to 
move to sustainable, affordable energy. Fortunately, the environmental 
and financial requirements for an oil or gas company to drill are 
strong enough that few if any wells will be drilled under this 
legislation, and I expect smarter, more comprehensive legislation will 
follow next year.
  We will never be able to drill our way to energy independence. The 
United States consumes 25 percent of the world's oil but only possesses 
3 percent of the world's oil reserves. Even if we drilled on every 
single square inch of land where oil is assumed to exist we will never 
be able to meet our national demand. Moreover, drilling 50 or 100 miles 
off our shores, as H.R. 6899 proposes, could be detrimental to the 
preservation of our environment for future generations. In New Jersey, 
tourism along our shore brings $35 billion to the state's economy. A 
possible oil spill from drilling of the coast of New Jersey, Virginia, 
or Delaware would be devastating to my state's 120 miles of shoreline. 
I am unwilling to sacrifice our nation's environment for drilling which 
will do nothing to decrease prices at the pump.
  Since I was elected 10 years ago I have consistently opposed drilling 
in environmentally sensitive areas including the Outer Continental 
Shelf. I have a strong record for voting in favor of preserving our 
environment and developing new energy sources that are clean, safe, and 
sustainable. This is really the only way that we can lower our gas 
prices in the long term. I will not support legislation which will 
continue the failed policies of reliance on fossil fuels, and I oppose 
H.R. 6899.
  I will continue to push for real reform of our nation's energy 
policy. Therefore I will be introducing legislation today which extend 
for 10 years the tax credits for hybrid cars, energy efficient housing, 
and renewable energy sources including solar, wind, geothermal, 
biomass, and hydro power. Extending these tax credits will help our 
country stay on the right path towards a cleaner energy future.
  Mrs. CAPPS. Mr. Speaker, I rise in reluctant opposition to this bill.
  I do so because I simply cannot support the myth that a lack of 
offshore drilling is at the root of our energy problems, and the 
supposed solutions to that myth are contained in this bill.
  I fully support the provisions in the bill that will help America 
reach the goal of a clean energy future. For example, the bill extends 
federal tax incentives for energy efficiency and renewable energy that 
will expire by the end of 2008. It's critical that these tax incentives 
be extended to avoid causing significant harm to our country's 
developing clean energy industries. It would also provide new 
incentives for purchasing energy efficient products and plug-in hybrid 
vehicles.
  I also support the Renewable Electricity Standard included in the 
bill, which requires at least 15 percent of our national energy 
production to come from renewable sources by 2020. More than half of 
the states already have a standard like this in place, including 
California and Texas.
  I believe these provisions are clear steps in the right direction 
and, in fact, would argue we should be doing more of them.
  But President Bush was right when he said our country is addicted to 
oil. The U.S. is like the alcoholic who says he needs just one more 
drink to get him through the day and

[[Page 19307]]

then tomorrow he will stop. And this recent nonstop effort to open up 
the entire U.S. coast to more drilling looks to me a lot like a problem 
drinker in denial.
  The driving force behind this legislation is the relentless, 
disingenuous and, in the end, futile attempt to drill our way to energy 
security. It is doomed to failure because we simply don't have the 
resources. We consume 25 percent of the world's oil and yet we have 
only 3 percent of the world's oil supply. Do the math.
  Or better yet, just look at recent history. Seven and a half years 
ago, President Bush took office promising to implement a national 
energy policy that would make America energy independent. The former 
oilman entrusted his Vice President, himself the former head of the 
largest oil servicing company in the world, with leading the effort. 
Since then, the President's energy policy has mostly been about 
enabling our addiction to fossil fuels by focusing only on increasing 
domestic oil and gas supplies.
  For example, between 2001 and 2007, the Bush Administration offered 
343 million acres of leases for offshore drilling, selling over 33 
million acres to oil and gas companies. And in the last five years, the 
Republican-controlled Congress gave the President approval for new 
leasing in Bristol Bay, Alaska, and the eastern Gulf of Mexico. In 
fact, the U.S. has more oil and gas rigs operating today than the 
entire rest of the world.
  Meanwhile, the Bush Administration energy policy paid lip service to 
conservation, neatly summed up by Vice President Cheney's dismissive 
and uninformed remark that ``conservation may be a sign of personal 
virtue but it is not a sufficient basis for a sound, comprehensive 
energy policy.''
  And the Administration's lack of interest in developing alternative 
energy was succinctly illustrated when Congressional Republicans, 
needing to reduce the overall cost of their ``landmark'' 2005 energy 
bill, slashed support for alternative fuels while leaving intact tens 
of billions of dollars in taxpayer subsidies for already rich oil 
companies.
  The results of these choices aren't pretty: in 2000, the U.S. 
imported 53 percent its oil; today, that figure is 59 percent. And 
while consumers pay record high prices at the pump, oil companies are 
racking up record high oil profits. Exxon-Mobil's last quarterly 
profits were $11 billion, the largest in human history. The other oil 
and gas behemoths pulled in similarly spectacular profits.
  But the failure of President Bush's strategy was both predictable and 
predicted. Democrats in Congress pointed out that the vast majority of 
offshore oil and gas reserves were already available for exploitation. 
Even if they hadn't been and we made them all available to drilling, 
there is still that troubling U.S. demand versus U.S. supply 
contradiction.
  For years, Democrats tried to convince the Republicans then in charge 
of Congress that real energy security would be found by making our 
cars, buildings and appliances more efficient; by dramatically speeding 
up the development of renewable and alternative energy sources; and by 
beginning the long, hard transition away from fossil fuels that imperil 
our economy, damage our planet and come mostly from unstable countries 
all too often wishing us harm. Those arguments were all rejected by the 
President and his supporters in Congress, leaving us where we are 
today.
  To be clear, I don't want to see more oil rigs off my congressional 
district. My constituents rightfully fear the economic and 
environmental effects of new drilling. Many of us witnessed firsthand 
the devastation of the blowout on Platform A off the coast of Santa 
Barbara in 1969. We saw the dead birds and seals, the beaches covered 
with oil, the land that we love so much nearly destroyed.
  In the years since, despite the great advances touted by the 
industry, oil accidents and drilling-based pollution in my district 
have been plentiful, offshore and onshore. For example, Exxon-Mobil 
recently agreed to pay almost $3 million for releasing dangerous PCB's 
into the Santa Barbara Channel from Platform Hondo.
  Another fine example is that of Greka Oil, a company that has been 
polluting our local creeks with toxic runoff and countless oil spills 
seemingly without a care. It looks like Greka based its environmental 
policies on the cutting edge technology found in the movie ``There Will 
Be Blood.'' I could also site the infamous Torch Operating Company 
pipeline explosion in 1997, the destruction and rebuilding of Avila 
Beach brought on by Unocal's decades-long pollution in that coastal 
town, or the impacts to our local air and water quality that we deal 
with every day. That is the history--and daily reality--of oil drilling 
in my congressional district.
  So, yes, Californians don't want more of that.
  But my opposition to this bill is mostly because it is simply not in 
the best interests of this country. The longer we try to fool ourselves 
into believing that this time new drilling will bring us lower prices 
and that we still have plenty of time to get ourselves off this oil 
addiction, the tougher the day of reckoning will be. Our economy will 
continue to be at the whim of crazy dictators around the world, globing 
warming will continue unabated and the decisions to send our troops in 
harm's way will too often be tainted by the stench of oil politics.
  And just so we are clear, this ``American'' oil we want to drill for 
is more likely to end up in gas tanks in Beijing or Calcutta than in 
Washington or Wasilla because oil markets are global. The multinational 
oil companies that will sink their rigs off California or Virginia will 
be selling ``American'' oil to the highest bidder. That is one reason 
why none other than the Bush Administration's own Energy Information 
Administration concluded that even opening the entire U.S. coastline to 
more drilling would have virtually no impact on oil prices.
  We need to end our addiction to fossil fuels and we need to start 
now. Expanded drilling off our coasts will not bring us closer to that 
goal.
  Mr. HASTINGS of Florida. Mr. Speaker, I rise today in strong support 
of the Comprehensive American Energy Security and Taxpayer Protection 
Act. This comprehensive energy bill provides a marked change to 
Republicans' solitary drumbeat of their flawed energy policy which only 
maintains the oil-consuming status quo. Instead of trying to score 
cheap political points, Democrats in Congress are paving the way 
forward with real sound solutions to the pain at the pump the American 
people are feeling.
  The Comprehensive American Energy Security and Taxpayer Protection 
Act expands domestic and alternative sources of energy to increase our 
nation`s national security. Additionally, it extends and expands tax 
incentives for renewable energy and reduces transit fares for commuter 
rail and buses. Provisions in the bill would responsibly open up the 
Outer Continental Shelf for drilling with significant environmental 
protections while demanding that oil companies use the leases they have 
already been issued.
  This bill allows for safe responsible drilling while investing in 
domestic alternative technologies and green jobs. In return for opening 
up more areas for drilling, the bill requires oil companies to pay 
American taxpayers royalties owed to them and ends subsidies to oil 
companies for drilling. This bill provides long-term solutions to help 
us achieve real energy independence, strengthen our national security, 
and reduce global warming.
  Under the agreement reached between Florida Democrats and House 
Leadership, the Comprehensive American Energy Security and Taxpayer 
Protection Act includes provisions maintaining a 2006 compromise 
protecting the Eastern Gulf of Mexico from offshore oil drilling. These 
limitations protect the military areas off the coast of Florida, as 
well as Florida's tourism and fishing industries.
  I am pleased that this bill protects Florida's coast from expanded 
offshore oil drilling, much to the dismay of the oil men in the White 
House and corrupt Interior Department officials who were accepting 
gifts from the oil companies they regulate. Drilling off Florida's 
coast only further subjects our beaches to oil spills that become 
exacerbated by hurricane damage and contributes to global climate 
change. Although the struggle to maintain the existing protections for 
Florida's coast is far from over, I promise to be the last man standing 
in the fight to prevent expanded offshore oil drilling in Florida.
  Mr. TIAHRT. Mr. Speaker, the American people have been speaking for 
months about the need to increase our domestic energy production. Never 
has the political will been so strong for the opening up of our 
domestic resources both on- and offshore. But, this Democrat-controlled 
Congress is not heeding the voice of its constituents and has failed 
them by bringing H.R. 6899 to the floor today.
  Our Nation is currently facing one of the most significant energy 
challenges in its history. We are not producing enough energy to 
provide for our growing economy. This bill inadequately addresses this 
challenge because it keeps 88 percent of our known resources in the 
Outer Continental Shelf, OCS, off limits to new domestic energy 
exploration. If Congress is serious about energy independence and 
lowering the cost of fuel, this isn't the bill. America deserves a 
comprehensive, bipartisan energy bill that opens up our domestic 
resources, incentivizes the discovery of renewable technologies and 
encourages conservation. This is the policy that will lead America into 
energy independence in the long-term and bring down the price of gas in 
the short-term.

[[Page 19308]]

  Before I get into why this bill fails our constituents, I want to 
point out a provision I do support. I was pleased the provision that 
makes it a Federal crime for oil companies with Federal leases to 
provide gifts to Government employees was inserted in this bill. I am 
deeply disappointed in recent revelations about improper activities 
between Federal employees and oil company representatives. And I 
support actions that would help prevent such improper activities from 
happening again. However, this bill fails miserably to incentivize the 
discovery of new technologies and domestic energy sources.
  Why does this bill fail our constituents? The Democrat-controlled 
Congress hastily put together this 290-page bill in the dark of night 
and brought it to the floor the very next morning. At 9:45 p.m. on 
September 15, 2008, H.R. 6899 was introduced. At 10 a.m., H.R. 6899 was 
brought to the House floor without any amendments and no committee 
input. This is not the process envisioned by our founders. Actually, 
when the Republicans held the majority in 2005, they allowed 23 
Democrat amendments to be offered to the energy bill, H.R. 6. This bill 
fails our constituents because this leadership has shut out the voice 
of 48 percent of our constituents by not allowing any Republican 
amendments.
  The bill opens with the words, ``Prohibition on Leasing.'' The 
Democrat's energy solution for the American people is a prohibition on 
leasing and limited new energy production that will help us achieve 
energy freedom. This bill will produce little if any new oil and gas 
since it locks up, by law, the first 50 miles of our coasts--on the 
Pacific coast that is over 97 percent of our known resources. Overall, 
88 percent of all known resources offshore remain permanently locked 
under this bill. Instead of producing more American energy with 
American workers, the Democrats would rather rely on foreign nations to 
produce our oil and natural gas. This is economically and 
environmentally irresponsible.
  In the 50-100 miles beyond the Atlantic and Pacific shores, the 
adjacent state must approve any lease. But what makes this provision 
even more unlikely to produce any new energy offshore is the fact that 
the bill does not share any of the royalties with adjacent states. 
Thus, it effectively removes any incentive for states to ``opt in'' 
while changing current policy on state revenue sharing.
  Why is this bill failing our constituents? Our country holds the 
largest supply of clean coal in the world. But this bill does nothing 
to promote clean coal and coal to liquid technologies.
  Why does this bill fail our constituents? Americans face a 
significant increase in our electricity rates in the coming months. 
This bill does nothing to increase our capacity; in fact, this bill 
imposes a new 15 percent renewable energy requirement on utilities. 
This bill fails our constituents because these new renewable energy 
requirements will be passed along to them in the form of higher monthly 
utility bills.
  The American people deserve a rational, transparent debate about 
developing domestic energy resources. Congress should pass a bipartisan 
energy plan that includes conservation, production, and innovation to 
help America become energy independent. We desperately need energy 
freedom in America.
  Why does this bill fail our constituents? This bill fails our 
constituents because it doesn't bring us any closer to energy 
independence. Instead of introducing a bill in the dark of night, this 
Democrat majority should bring up a bipartisan bill that has been 
vetted by both sides of the aisle. The Speaker has an abundance of 
legislative options that address our short-term and long-term energy 
needs. But she refuses to allow a full debate and vote on a 
comprehensive plan.
  For instance, a bipartisan bill, H.R. 6709, the National 
Conservation, Environment and Energy Independence Act, has been 
introduced by Representative Abercrombie (D-HI) and John Peterson (R-
PA). I am a cosponsor of this bill. One of the principal areas of this 
legislation is production--the exploration for and extraction of oil 
and natural gas in places such as the Outer Continental Shelf. There's 
also a call to establish conservation and environmental reserve funds 
that will help to preserve and to maintain wildlife refuges and public 
parks and to develop alternative energy, including solar, wind, and 
biofuels. The production of oil and natural gas from within U.S. 
borders will serve as a bridge to the Nation's ``alternative energy 
future'' and will see to it that the royalties from the leasing and 
sale of that oil and natural gas go to alternative energy, 
environmental, and conservation projects.
  A second option is H.R. 6566, the American Energy Act, of which I am 
also a cosponsor. The American Energy Act is an ``all of the above'' 
energy strategy that will increase the supply of American-made energy 
in environmentally sound ways. It will accomplish this by opening 
energy-rich deep ocean resources, Arctic coastal plain, and Inter-
Mountain West oil shale resources for more environmentally safe oil and 
gas exploration. This bill will also improve energy conservation and 
efficiency by providing tax incentives for businesses and families that 
improve their energy efficiency. This legislation focuses heavily on 
the promotion of alternative and renewable energy technologies through 
spurring the development of alternative fuels by permanently extending 
the tax credit for alternative energy production, including wind, solar 
and hydrogen and promoting coal-to-liquids technology.
  These are the policies that will lead America into energy 
independence. While I cannot support this bill today, if H.R. 6709, the 
bipartisan energy bill were to be brought to the House floor, I would 
vote ``yes.'' If H.R. 6566, an ``all of the above'' energy bill were 
brought to the House floor, I would vote ``yes.'' It is my hope that 
these bills will be brought to the floor of the House of 
Representatives before the 110th Congress adjourns. These are the bills 
that actually address and allow America to explore our own domestic 
resources and build a bridge to our future energy sources.
  Mr. CASTLE. Mr. Speaker, I remain frustrated that Congress has yet to 
arrive at a compromise to ensure a majority vote in both chambers on a 
comprehensive energy package. There is a finite supply of oil and 
increasing global demand, and this picture will not change. For this 
reason, I believe that all solutions are essential in any compromise 
legislation striving to eliminate our dependence on foreign oil, so 
that future generations are not faced with the same energy problems. It 
is my goal to continue to work toward a compromise package, which can 
be signed into law, to deliver the relief the American public needs now 
and an energy policy for the 21st Century.
  New domestic offshore drilling has been the subject of much debate 
over the last few months. With Delaware's coastline and tourism economy 
in mind I have been cautions about any new drilling that could have a 
negative impact. However, I do believe that additional domestic oil and 
gas production on a limited basis and carried out in an environmentally 
sound manner is realistic, so that American dollars no longer go 
overseas to in some cases unfriendly nations. Coupled with this must be 
a sincere commitment to invest in renewable energy development and 
energy efficiency measures. It is this way that we will improve our 
national security, help address climate change, improve American 
competitiveness, and create jobs.
  Today I voted to support maintaining a ban on oil and gas development 
up to 50 miles off our coastlines, to allow drilling between 50 and 100 
miles offshore if states give the green light, and to allow the federal 
government to permit drilling from 100 to 200 miles offshore in the 
Outer Continental Shelf. The bill ensures drilling happens in a way 
that protects ``coastal environment, marine environment, and human 
environment of state coastal areas and the Outer Continental Shelf.'' A 
strong protective barrier between our coastlines and where new drilling 
could begin is important for protecting sensitive coastal habitat and 
the tourism industry Delaware. A sustainable federal funding mechanism 
for conservation and alternative and renewable energy initiatives, 
which this bill includes, is critical, but I also support revenue 
sharing with the states, including impacted neighboring states, which 
this legislation unfortunately omits.
  As for renewable energy production and energy efficiency measures, 
which I have supported many times in the last few months, the bill 
provides $19 billion over ten years in tax incentives. Included in this 
is a short-term extension of the production tax credit for renewable 
energy production, like wind facilities, critical for states like 
Delaware pushing offshore wind projects. We must continue strive for 
longer-term incentives. To pay for the continued investment in these 
important measures, the bill requires U.S. oil companies to renegotiate 
leases and pay royalty payments and repeals certain tax incentives at a 
time of record profits. The legislation also includes a requirement 
that power companies generate 15 percent of their energy from renewable 
sources by 2020, which I have previously supported.
  The measure also allows leasing federal lands for oil shale 
production, only if states like Colorado, Utah and Wyoming allow it. 
While I believe alternative fuels are important to develop, I believe 
we should not make commercially available those that are more 
greenhouse gas intensive than conventional fuels.
  Other provisions included in the bill are tax incentives for coal 
projects that capture carbon, plug-in hybrid cars, and fueling stations 
for natural gas vehicles, and grants for public transportation 
agencies; requiring the U.S. Department of the Interior to offer oil 
and gas

[[Page 19309]]

lease sales on the National Petroleum Reserve in Alaska on an annual 
basis; encouraging completion of a new oil and gas pipeline to aid the 
transmission of supply; and reinstates the ban on the export of Alaskan 
oil. Additionally, this bill requires oil companies to ``diligently 
develop'' all of their current leases for energy production or 
relinquish them. Finally, the legislation requires the government to 
release 70 million barrels of crude oil in exchange from the Strategic 
Petroleum Reserve. Many of these provisions have been considered by the 
House in earlier iterations and I believe represent substantive small 
steps we can take now to make additional supply available and some of 
which could reduce prices immediately.
  My priority is promoting pragmatic solutions that cover a broader 
spectrum of energy policies, including intensifying development of 
alternatives, extending renewable and efficiency tax credits, 
implementing stronger efficiency standards, and encouraging more 
conservation. A comprehensive compromise energy policy is critical for 
our national security, public health, meeting the challenges of global 
warming, and bolstering the economy.
  There is no silver bullet and we must be willing to compromise. I 
hope that the House and Senate will now sit down and craft yet another 
compromise that we can deliver to the President as soon as possible.
  Ms. ROYBAL-ALLARD. Mr. Speaker, I rise in support of H.R. 6899, the 
Comprehensive American Energy Security and Consumer Protection Act.
  Every day my constituents contact my office wanting to know what 
Congress is doing to lower gas prices. Many of these families work 
full-time. Some even have more than one job. Yet as a result of 
skyrocketing energy costs and a weakening economy, they are struggling 
to make ends meet.
  Mr. Speaker, there is something fundamentally wrong with our energy 
policy when hardworking American families are increasingly burdened by 
escalating energy prices, while oil companies continue to reap record 
profits. Congress has a duty to move past short-sighted solutions, and 
pass this legislation which will provide the first steps to ending this 
inequity and our Nation's addiction to oil.
  While I have serious concerns about the expansion of offshore 
drilling, I recognize however, that this compromise is needed to 
address the expiration of the moratorium on Outer Continental Shelf 
drilling and move the other important provisions in the legislation 
forward.
  While it is far from perfect, H.R. 6899 is a necessary and realistic 
compromise that in addition to preventing drilling only three miles off 
our shores, will help expand our domestic energy supply, encourage 
energy efficiency and conservation, and reduce our Nation's dependence 
on oil.
  H.R. 6899 will address our energy crisis by the temporary release of 
almost 10 percent of the oil in the Strategic Petroleum Reserve. This 
is expected to have the direct result of lower gas prices in the short-
term.
  The bill also invests in renewable energy technology by establishing 
a package of renewable energy tax credits and creating a renewable 
electricity standard, thereby giving us the tools and the incentives to 
break free of our dependence on oil. It is estimated that the renewable 
electricity standard will save American consumers up to $18 billion by 
2020. In addition, the tax credits will help spur the creation of new, 
green jobs and encourage the next generation of job development here in 
America.
  The bill also ensures that oil companies will pay their fair share of 
royalties on their drilling leases. Due to errors made by the 
Department of the Interior in 1998 and 1999, many oil companies who 
were granted leases during that time were exempt from paying royalties. 
This has amounted to $15 billion in lost revenues to the American 
taxpayer. There is absolutely no reason that oil companies should 
continue to cash in while American families can't even make ends meet. 
By rectifying this error, H.R. 6899 will ensure that the Interior 
Department will be able to collect the payments owed to hardworking 
Americans.
  Given the current crisis, it is necessary we take the first step to 
reach our larger goal of energy independence. The Democratic leadership 
has wisely rejected the Republican Party's shortsighted call for 
``drill-only'' legislation, and instead has put forward a responsible 
plan to give states the option to decide if portions of the Outer 
Continental Shelf no closer than 50 miles off our shores will be opened 
to oil drilling--and it requires oil companies to drill on their 
existing leases or lose them. I am gratified that the legislation will 
incorporate environmental safeguards by permanently withdrawing 
national marine monuments and national marine sanctuaries from leasing 
eligibility.
  I urge my colleagues to support this legislation to protect our 
shores from the lifting of the offshore drilling moratorium and as a 
first step away from dependence on foreign oil and toward critical 
investments in renewable energy technology. This legislation provides 
the foundation for a long-term strategy to move the Nation on the road 
to energy independence.
  Mr. MARIO DIAZ-BALART of Florida. Mr. Speaker, the Comprehensive 
American Energy Security and Consumer Protection Act increases 
regulation and continues to limit production of abundant American 
energy resources. This legislation follows the Majority's typical path 
of runaway spending, higher taxes, and more red tape for domestic 
energy production:
  This legislation deepens our dependence on foreign oil by permanently 
banning production of 97 percent of the 10.5 billion barrels off the 
coast of California, and over 85 percent of American's energy 
resources.
  It contains no revenue sharing provision, thus giving states a major 
disincentive to agree to off-shore drilling. It also prohibits drilling 
in areas where experts say most of the energy resources is known to be 
found.
  H.R. 6899 imposes a massive tax increase of $17.7 billion over 10 
years on companies engaged in domestic energy production. At this time 
of economic uncertainty, increasing taxes does nothing but threaten 
millions of American jobs. By raising costs on domestic production, 
consumers can expect the higher taxes to be passed down to them. This 
measure would limit efforts to expand American energy supplies, which 
ensures further dependence on Hugo Chavez and unstable Middle Eastern 
nations for their sources of oil.
  I cannot support a bill that says no to clean coal, no to nuclear and 
no to new refineries.
  Energy is the critical issue of our time, and this Democratic 
Congress refuses to let the House engage in and debate a real, 
meaningful energy bill that actually produces energy. We need a 
vigorous energy policy that relies on American resources for American 
energy while growing our economy and creating countless new jobs.
  The American people expect and deserve better. This country needs a 
serious, aggressive, all-of-the-above energy plan that will lead us to 
energy independence, not a hoax of an energy bill.
  Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise today in strong 
support of the Comprehensive American Energy Security and Consumer 
Protection Act (H.R. 6899) and would like to commend Chairman Rahall, 
Speaker Pelosi, and the Democratic leadership for their hard work on 
this important legislation.
  America stands at a crossroads with regard to our country's energy 
security. In 2008, gasoline and home heating prices have risen to 
record levels, burdening middle class American families during already 
tough economic times. This Congress has a choice to make and America's 
families deserve action.
  Congress can continue to follow the path of the past and increase our 
Nation's addiction on oil companies and foreign produced petroleum from 
countries like Saudi Arabia, Iraq, Venezuela, and Nigeria. Some voices 
now claim that the U.S. can achieve energy independence by exploiting 
all currently protected lands and coastal areas, allowing drilling 
wherever oil companies want to drill. Of course, since the U.S. 
consumes twenty-five percent of the world's oil and possesses less than 
3 percent of global petroleum reserves, the ``drill, baby, drill'' 
rhetoric is both simplistic and simply false.
  The American people need to know that government estimates state that 
if drilling was allowed in all restricted offshore sites and the Arctic 
National Wildlife Refuge (a policy I strongly oppose) it would pump 
only one million extra barrels of oil per day onto the global market by 
2025, less than 1 percent of projected global output. For consumers 
this would translate into a 2 cent reduction in price in the year 2025. 
The ``drill, baby, drill'' crowd appears to be committed to advancing 
the interests of the oil companies while leaving the American people 
with a potentially miniscule price reduction seventeen years from now. 
Their proposal is not a policy solution, but rather a political 
gimmick.
  There is another option, a plan to move America forward towards 
energy independence with a comprehensive energy policy that focuses on 
investments in renewable energy, energy efficiency, conservation, and 
maximizing the potential of existing fossil fuel sources with the 
necessary restrictions to protect the environment. Responsible drilling 
is a part of this plan as a transition to a clean energy future. I will 
continue to oppose any ``give aways'' that allow special advantages to 
oil companies to exploit the limited natural resources belonging to 
American taxpayers and

[[Page 19310]]

limit the ability of American families to receive a fair price at the 
pump.
  Today, oil companies have leases on 68 million acres of federal 
lands. Right now they have access to drill within 182 million acres of 
the Outer Continental Shelf (OCS) surrounding Alaska and the lower 48 
states. This bill, H.R. 6899, requires that oil companies make use of 
these existing leases by commencing exploration on these lands or 
relinquish their leases. If more drilling is the goal of the petroleum 
industry, they currently have the legal authority to do it on 68 
million acres of federal land and 182 million acres of the OCS. And, 
with oil companies profits projected at $160 billion for 2008, they 
have the money to do it without federal tax breaks or sweetheart deals 
at taxpayer expense.
  House Democrats recognize that American families are seeking relief 
from high energy prices and a stabilizing of prices. For this reason 
this energy bill allows for the release of ten percent of the light 
crude from the Strategic Petroleum Reserve to increase domestic oil 
supply. In the short-term, allowing this oil onto the market will help 
to stabilize prices.
  It is time to take America in a new direction, moving away from the 
Bush Administration's policy of dependency on foreign oil and toward 
bold investments in America's energy future. By repealing $19 billion 
dollars worth of unnecessary subsidies to oil companies and investing 
these funds in clean renewable energy, the Comprehensive American 
Energy Security Act will create of thousands of new American jobs, 
reduce America's dependence on foreign energy sources, and ensure 
responsible stewardship of our environment today and for generations to 
come.
  Today, I reflect the views of my constituents by voting for a forward 
thinking, comprehensive energy policy. Passing the Comprehensive 
American Energy Security Act will be a big step towards energy 
independence and the creation of a green American economy.
  I urge my colleagues to support the Comprehensive American Energy 
Security Act.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 1433, the bill is considered read and 
the previous question is ordered.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.

                              {time}  2115


                           Motion to Recommit

  Mr. PETERSON of Pennsylvania. Mr. Speaker, I have a motion to 
recommit at the desk.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. PETERSON of Pennsylvania. Yes, in its current form.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Peterson of Pennsylvania moves to recommit the bill 
     H.R. 6899 to the Committee on Natural Resources with 
     instructions to report the same back to the House forthwith 
     with the following amendment:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Conservation, 
     Environment, and Energy Independence Act''.

     SEC. 2. TABLE OF CONTENTS-.

       The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.

   TITLE I--OFFSHORE AND ONSHORE LEASING AND OTHER ENERGY PRODUCTION

Sec. 101. Termination of prohibitions on expenditures for, and 
              withdrawals from, offshore and onshore leasing and other 
              limitations on energy production.
Sec. 102. Outer continental shelf leasing program.
Sec. 103. Sharing of revenues.
Sec. 104. Policies regarding buying and building American.
Sec. 105. Elimination of other restrictions on use of energy 
              alternatives.

 TITLE II--CLEANER ENERGY PRODUCTION AND ENERGY CONSERVATION INCENTIVES

Sec. 201. Extension of renewable energy credit.
Sec. 202. Extension of credit for alternative fuel vehicles.
Sec. 203. Extension of alternative fuel vehicle refueling property 
              credit.
Sec. 204. Extension of credit for energy efficient appliances.
Sec. 205. Extension of credit for nonbusiness energy property.
Sec. 206. Extension of credit for residential energy efficient 
              property.
Sec. 207. Extension of new energy efficient home credit.
Sec. 208. Extension of energy efficient commercial buildings deduction.
Sec. 209. Extension of energy credit.
Sec. 210. Extension of credit for clean renewable energy bonds.
Sec. 211. Extension of credits for biodiesel and renewable diesel.
Sec. 212. Credit for plug-in hybrid vehicles.
Sec. 213. Time for payment of corporate estimated taxes.

   TITLE III--MODIFYING THE STRATEGIC PETROLEUM RESERVE AND FUNDING 
            CONSERVATION AND ENERGY RESEARCH AND DEVELOPMENT

Sec. 301. Findings.
Sec. 302. Definitions.
Sec. 303. Objectives.
Sec. 304. Modification of the Strategic Petroleum Reserve.
Sec. 305. Energy Independence and Security Fund.

   TITLE I--OFFSHORE AND ONSHORE LEASING AND OTHER ENERGY PRODUCTION

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

       (a) Prohibitions on Expenditures.--All provisions of 
     Federal law that prohibit the expenditure of appropriated 
     funds to conduct natural gas, oil, oil shale, and other 
     energy production leasing and preleasing activities for 
     Federal lands shall have no force or effect with respect to 
     such activities.
       (b) Revocation Withdrawals.--All withdrawals of Federal 
     submerged lands of the Outer Continental Shelf from leasing, 
     including withdrawals by the President under the authority of 
     section 12(a) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1341(a)), are hereby revoked and are no longer in 
     effect with respect to the leasing of areas for exploration 
     for, and development and production of natural gas and oil.
       (c) Gulf of Mexico Oil and Gas.--Section 104 of division C 
     of the Tax Relief and Health Care Act of 2006 (Public Law 
     109-432; 120 Stat. 3003) is repealed.
       (d) Oil Shale.--Section 433 of the Department of the 
     Interior, Environment, and Related Agencies Appropriations 
     Act, 2008 (division F of Public Law 110-161; 121 Stat. 2152) 
     is repealed.

     SEC. 102. OUTER CONTINENTAL SHELF LEASING PROGRAM.

       The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
     seq.) is amended by inserting after section 9 the following:

     ``SEC. 10. MORATORIA AREA AND STATE DISAPPROVAL REQUIREMENT 
                   WITH RESPECT TO LEASING.

       ``(a) Prohibition on Leasing.--The Secretary may not issue 
     any lease authorizing exploration for, or development of, 
     natural gas or oil in any area of the outer Continental Shelf 
     that is located within 25 miles of the coastline of a State.
       ``(b) State Disapproval Authority.--The Secretary may not 
     issue any lease authorizing exploration for, or development 
     of, natural gas or oil in any area of the outer Continental 
     Shelf that is located more than 25 miles and less than 50 
     miles from the coastline of a State if the State has enacted, 
     within the 1-year period beginning on the date of the 
     enactment of the National Conservation, Environment, and 
     Energy Independence Act, a law disapproving of the issuance 
     of such leases by the Secretary.
       ``(c) Military Operations.--The Secretary shall consult 
     with the Secretary of Defense regarding military operations 
     needs in the Outer Continental Shelf. The Secretary shall 
     work with the Secretary of Defense to resolve any conflicts 
     that might arise between such operations and leasing under 
     this section. If the Secretaries are unable to resolve all 
     such conflicts, any unresolved issues shall be referred by 
     the Secretaries to the President in a timely fashion for 
     immediate resolution.''.

     SEC. 103. SHARING OF REVENUES.

       (a) In General.--Section 8(g) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1337(g)) is amended--
       (1) in paragraph (2) by striking ``Notwithstanding'' and 
     inserting ``Except as provided in paragraph (6), and 
     notwithstanding'';
       (2) by redesignating paragraphs (6) and (7) as paragraphs 
     (8) and (9); and
       (3) by inserting after paragraph (5) the following:
       ``(6) Bonus bids and royalties under qualified leases.--
       ``(A) New leases.--Of amounts received by the United States 
     as bonus bids, royalties, rentals, and other sums collected 
     under any qualified lease on submerged lands made available 
     for leasing under this Act by the enactment of the National 
     Conservation, Environment, and Energy Independence Act that 
     are located within the seaward boundaries of a State 
     established under section 4(a) (2) (A)--
       ``(i) 30 percent shall be deposited in the general fund of 
     the Treasury;
       ``(ii) 30 percent shall be paid to the States that are 
     producing States with respect to those submerged lands;
       ``(iii) 8 percent shall be deposited in the Conservation 
     Reserve established by paragraph (7);

[[Page 19311]]

       ``(iv) 10 percent shall be deposited in the Environment 
     Restoration Reserve established by paragraph (7);
       ``(v) 15 percent shall be deposited in the Renewable Energy 
     Reserve established by paragraph (7);
       ``(vi) 5 percent shall be deposited in the Carbon Capture/
     Sequestration and Nuclear Waste Reserve Established by 
     paragraph (7); and
       ``(vii) 2 percent shall be available to the Secretary of 
     Health and Human Services for carrying out the Low-Income 
     Home Energy Assistance Act of 1981 (42 U.S.C. 8621, et seq.).
       ``(B) Leased tract that lies partially within the seaward 
     boundaries of a state.--In the case of a leased tract that 
     lies partially within the seaward boundaries of a State, the 
     amounts of bonus bids and royalties from such tract that are 
     subject to subparagraph (A)(ii) with respect to such State 
     shall be a percentage of the total amounts of bonus bids and 
     royalties from such tract that is equivalent to the total 
     percentage of surface acreage of the tract that lies within 
     such seaward boundaries.
       ``(C) Use of payments to states.--Amounts paid to a State 
     under subparagraph (A)(ii) shall be used by the State for one 
     or more of the following:
       ``(i) Education.
       ``(ii) Transportation.
       ``(iii) Coastal restoration, environmental restoration, and 
     beach replenishment.
       ``(iv) Energy infrastructure.
       ``(v) Renewable energy development.
       ``(vi) Energy efficiency and conservation.
       ``(vii) Any other purpose determined by State law.
       ``(D) Definitions.--In this paragraph:
       ``(i) Adjacent state.--The term `Adjacent State' means, 
     with respect to any program, plan, lease sale, leased tract 
     or other activity, proposed, conducted, or approved pursuant 
     to 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.
       ``(ii) Adjacent zone.--The term `adjacent zone' means, with 
     respect to any program, plan, lease sale, leased tract, or 
     other activity, proposed, conducted, or approved pursuant to 
     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.
       ``(iii) Producing state.--The term `producing State' means 
     an Adjacent State having an adjacent zone containing leased 
     tracts from which are derived bonus bids and royalties under 
     a lease under this Act.
       ``(iv) State.--The term `State' includes Puerto Rico and 
     the other territories of the United States.
       ``(v) Qualified lease.--The term `qualified lease' means a 
     natural gas or oil lease made available under this Act 
     granted after the date of the enactment of the National 
     Conservation, Environment, and Energy Independence Act, for 
     an area that is available for leasing as a result of 
     enactment of section 101 of that Act.
       ``(E) Application.--This paragraph shall apply to bonus 
     bids and royalties received by the United States under 
     qualified leases after September 30, 2008.
       ``(7) Establishment of reserve accounts.--
       ``(A) In general.--For budgetary purposes, there is 
     established as a separate account to receive deposits under 
     paragraph (6)(A)--
       ``(i) the Conservation Reserve, to offset the cost of 
     legislation enacted after the date of the enactment of the 
     National Conservation, Environment, and Energy Independence 
     Act for conservation programs, such as weatherization, and 
     conservation tax credits and deductions for energy efficiency 
     in the residential, commercial, industrial and public 
     sectors, including Conservation Districts;
       ``(ii) the Environment Restoration Reserve, to offset the 
     cost of legislation enacted after the date of the enactment 
     of the National Conservation, Environment, and Energy 
     Independence Act to conduct restoration activities to improve 
     the overall health of the ecosystems primarily or entirely 
     within wildlife refuges, national parks, lakes, bays, rivers, 
     and streams, in-eluding the Great Lakes, the Chesapeake and 
     Delaware Bays, the San Francisco Bay/Sacramento San Joaquin 
     Bay Delta, the Florida Everglades, New York Harbor, the 
     Colorado River Basin, and Intracoastal Waterways and inlets 
     that serve them;
       ``(iii) the Renewable Energy Reserve, to offset the cost of 
     legislation enacted after the date of the enactment of the 
     National Conservation, Environment, and Energy Independence 
     Act to accelerate the use of cleaner domestic energy 
     resources and alternative fuels; to promote the utilization 
     of energy-efficient products and practices; and to increase 
     research, development, and deployment of clean renewable 
     energy and efficiency technologies and job training programs 
     for those purposes; and
       ``(iv) the Carbon Capture and Sequestration Reserve, to 
     offset the cost of legislation enacted after the date of the 
     enactment of the National Conservation, Environment, and 
     Energy Independence Act to promote research and development 
     projects associated with carbon capture and storage in the 
     production of liquid transportation fuels, synthetic natural 
     gas, chemical feedstocks, and electricity, and for the 
     disposition and recycling/reprocessing of nuclear waste from 
     nuclear power plants.
       ``(B) Procedure for adjustments.--
       `` (i) Budget committee chairman.--After the reporting of a 
     bill or joint resolution, or the offering of an amendment 
     thereto or the submission of a conference report thereon, 
     providing funding for the purposes set forth in clause (i), 
     (ii), (iii), or (iv) of subparagraph (A) in excess of the 
     amount of the deposits under paragraph (6)(A) for those 
     purposes for fiscal year 2009, the chairman of the Committee 
     on the Budget of the applicable House of Congress shall make 
     the adjustments set forth in clause (ii) for the amount of 
     new budget authority and outlays in that measure and the 
     outlays flowing from that budget authority.
       ``(ii) Matters To Be adjusted.--The adjustments referred to 
     in clause (i) are to be made to--
       ``(I) the discretionary spending limits, if any, set forth 
     in the appropriate concurrent resolution on the budget;
       ``(II) the allocations made pursuant to the appropriate 
     concurrent resolution on the budget pursuant to section 
     302(a) of the Congressional Budget Act of 1974; and
       ``(III) the budget aggregates contained in the appropriate 
     concurrent resolution on the budget as required by section 
     301(a) of the Congressional Budget Act of 1974.
       ``(iii) Amounts of adjustments.--The adjustments referred 
     to in clauses (i) and (ii) shall not exceed the receipts 
     estimated by the Congressional Budget Office that are 
     attributable to this Act for the fiscal year in which the 
     adjustments are made.
       ``(C) Expenditures only by secretary of the interior in 
     consultation.--Legislation shall not be treated as 
     legislation referred to in subparagraph (A) unless any 
     expenditure under such legislation for a purpose referred to 
     in that subparagraph may be made only after consultation with 
     the Administrator of the Environmental Protection Agency, the 
     Administrator of the National Oceanic and Atmospheric 
     Administration, the Secretary of the Army acting through the 
     Corps of Engineers, and, as appropriate, the Secretary of 
     State.
       ``(8) Maintenance of effort by states.--The Secretary of 
     the Interior, the Secretary of Health and Human Services, the 
     Secretary of Energy, and any other Federal official with 
     authority to implement legislation referred to in paragraph 
     (6)(A) shall ensure that financial assistance provided to a 
     State under that legislation for any purpose with amounts 
     made available under this subsection or in any legislation 
     with respect to which paragraph (7) applies supplement, and 
     do not replace, the amounts expended by the State for that 
     purpose before the date of the enactment of the National 
     Conservation, Environment, and Energy Independence Act''.
       (b) Establishment of State Seaward Boundaries.--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: ``. Such 
     extended lines are deemed to be 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. The preceding sentence shall not 
     apply with respect to the treatment under section 105 of the 
     Gulf of Mexico Energy Security Act of 2006 (title I of 
     division C of Public Law 109-432) of qualified outer 
     Continental Shelf revenues deposited and disbursed under 
     subsection (a)(2) of that section.''.

     SEC. 104. POLICIES REGARDING BUYING AND BUILDING AMERICAN.

       (a) Intent of Congress.--It is the intent of the Congress 
     that this Act, among other things, result in a healthy and 
     growing American industrial, manufacturing, transportation, 
     and service sector employing the vast talents of America's 
     workforce to assist in the development of energy from 
     domestic sources. Moreover, the Congress intends to monitor 
     the deployment of personnel and material onshore and offshore 
     to encourage the development of American technology and 
     manufacturing to enable United States workers to benefit from 
     this Act by good jobs and careers, as well as the 
     establishment of important industrial facilities to support 
     expanded access to American resources.
       (b) Safeguard for Extraordinary Ability.--Section 30(a) of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is 
     amended in the matter preceding paragraph (1) by striking 
     ``regulations which'' and inserting ``regulations that shall 
     be supplemental and complimentary with and under no 
     circumstances a substitution for the provisions of the 
     Constitution and laws of the United States extended to the 
     subsoil and seabed of the outer Continental Shelf pursuant to 
     section 4 of this Act, except insofar as such laws

[[Page 19312]]

     would otherwise apply to individuals who have extraordinary 
     ability in the sciences, arts, education, or business, which 
     has been demonstrated by sustained national or international 
     acclaim, and that''.

     SEC. 105. ELIMINATION OF OTHER RESTRICTIONS ON USE OF ENERGY 
                   ALTERNATIVES.

       (a) Renewable Biomass.--Section 211(o)(1)(I) of the Clean 
     Air Act (42 U.S.C. 7545(o)(1)(I)) is amended effective 
     January 1, 2009--
       (1) in clause (ii), by striking ``on non-federal land''; 
     and
       (2) in clause (iv), by striking ``that are from non-federal 
     forestlands, including forestlands'' and inserting ``from 
     forestlands, including those on public lands and those''.
       (b) Alternative Fuels.--Section 526 of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17142) is 
     repealed.
       (c) Limitation on Number of New Qualified Hybrid Advanced 
     Lean-Burn Technology Vehicles.--Section 30B of the Internal 
     Revenue Code of 1986 is amended by striking subsection (f).
 TITLE II--CLEANER ENERGY PRODUCTION AND ENERGY CONSERVATION INCENTIVES

     SEC. 201. EXTENSION OF RENEWABLE ENERGY CREDIT.

       Each of the following provisions of section 45(d) of the 
     Internal Revenue Code of 1986 (relating to qualified 
     facilities) is amended by striking ``January 1, 2009'' and 
     inserting ``January 1, 2013'':
       (1) Paragraph (1) (relating to wind facility).
       (2) Clauses (i) and (ii) of paragraph (2)(A) (relating to 
     closed-loop biomass facility).
       (3) Clauses (i)(I) and (ii) of paragraph (3)(A) (relating 
     to open-loop biomass facility).
       (4) Paragraph (4) (relating to geothermal energy facility).
       (5) Paragraph (5) (relating to small irrigation power 
     facility).
       (6) Paragraph (6) (relating to landfill gas facilities).
       (7) Paragraph (7) (relating to trash combustion 
     facilities).
       (8) Paragraph (8) (relating to refined coal production 
     facility).
       (9) Subparagraphs (A) and (B) of paragraph (9) (relating to 
     qualified hydropower facility).

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

       Paragraphs (2), (3), and (4) of section 30B(j) of the 
     Internal Revenue Code of 1986 are each amended by striking 
     the date therein and inserting ``December 31, 2014''.

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

       (a) In General.--Paragraph (2) of section 30C(g) of such 
     Code (relating to termination) is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2010''.
       (b) Alternative Fuels.--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)).''.

     SEC. 204. 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(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. 205. 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. 206. 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, 2014''.

     SEC. 207. 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. 208. 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. 209. 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 
     ``January 1, 2009'' and inserting ``January 1, 2017''.
       (b) Fuel Cell Property.--Subparagraph (E) of section 
     48(c)(1) of such Code (relating to qualified fuel cell 
     property) is amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2016''.
       (c) Microturbine Property.--Subparagraph (E) of section 
     48(c)(2) of such Code (relating to qualified microturbine 
     property) is amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2013''.

     SEC. 210. EXTENSION 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''.

     SEC. 211. 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.

     SEC. 212. CREDIT FOR PLUG-IN HYBRID VEHICLES.

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

     ``SEC. 30D. PLUG-IN HYBRID 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 
     qualified plug-in hybrid 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 qualified plug-in hybrid 
     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 $4,000.
       ``(3) Battery capacity.--In the case of 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) Qualified Plug-In Hybrid Vehicle.--For purposes of 
     this section--
       ``(1) In General.--The term `qualified plug-in hybrid 
     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,
       ``(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, and
       ``(G) which either--
       ``(i) is also propelled to a significant extent by other 
     than an electric motor, or
       ``(ii) has a significant onboard source of electricity 
     which also recharges the battery referred to in subparagraph 
     (F).
       ``(2) Exception.--The term `qualified plug-in hybrid 
     vehicle' shall not include any vehicle which is not a 
     passenger automobile or

[[Page 19313]]

     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) 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) Plug-In Vehicles Not Treated as New Qualified Hybrid 
     Vehicles.--Section 30B(d)(3) 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) is amended by striking ``plus'' at the end of paragraph 
     (32), by striking the period at the end of paragraph (33) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(34) the portion of the plug-in hybrid vehicle credit to 
     which section 30D(c)(1) applies.''.
       (d) Conforming Amendments.--
       (1)(A) Section 24(b)(3)(B), as amended by this Act, is 
     amended by striking ``and 25D'' and inserting ``25D, and 
     30D''.
       (B) Section 25(e)(1)(C)(ii) is amended by inserting 
     ``30D,'' after ``25D,''.
       (C) Section 25B(g)(2), as amended by this Act, is amended 
     by striking ``and 25D'' and inserting ``, 25D, and 30D''.
       (D) Section 26(a)(1), as amended by this Act, is amended by 
     striking ``and 25D'' and inserting ``25D, and 30D''.
       (E) Section 1400C(d)(2) is amended by striking ``and 25D'' 
     and inserting ``25D, and 30D''.
       (2) Section 1016(a) 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:
       ``(37) to the extent provided in section 30D(e)(1).''.
       (3) Section 6501(m) is amended by inserting ``30D(e)(4),'' 
     after ``30C(e)(5),''.
       (4) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:
``Sec. 30D). Plug-in hybrid vehicles.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 213. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       Notwithstanding section 6655 of the Internal Revenue Code 
     of 1986, in the case of a corporation with assets of not less 
     than $1,000,000,000 (determined as of the end of the 
     preceding taxable year--
       (1) the percentage under section 401(1) (C) of the Tax 
     Increase Prevention and Reconciliation Act of 2005 (as in 
     effect on the date of the enactment of this Act) is increased 
     by 51 percentage points, and
       (2) the amount of any required installment of corporate 
     estimated tax which is otherwise due in July, August, or 
     September of 2018 shall be 200 percent of such amount.
       The amount of the next required installment after an 
     installment to which paragraph (2) applies shall be 
     appropriately reduced to reflect the amount of the increase 
     by reason of such paragraph.
   TITLE III--MODIFYING THE STRATEGIC PETROLEUM RESERVE AND FUNDING 
            CONSERVATION AND ENERGY RESEARCH AND DEVELOPMENT

     SEC. 301. FINDINGS.

       Congress finds the following:
       (1) The Strategic Petroleum Reserve (SPR) was created by 
     Congress in 1975, to protect the Nation from any future oil 
     supply disruptions. When the program was established, United 
     States refiners were capable of handling light and medium 
     crude and the make up of the SPR matched this capacity. This 
     is not the case today.
       (2) A GAO analysis found that nearly half of the refineries 
     considered vulnerable to supply disruptions are not 
     compatible with the types of oil currently stored in the SPR 
     and would be unable to maintain normal refining capacity if 
     forced to rely on SPR oil as currently constituted, thereby 
     reducing the effectiveness of the SPR in the event of a 
     supply disruption. GAO concluded that the SPR should be 
     comprised of at least 10 percent heavy crude.
       (3) This Act implements the GAO recommendation and 
     dedicates funds received from the transactions to existing 
     energy conservation, research, and assistance programs.

     SEC. 302. DEFINITIONS.

       In this title--
       (1) the term ``light grade petroleum'' means crude oil with 
     an API gravity of 35 degrees or higher;
       (2) the term ``heavy grade petroleum'' means crude oil with 
     an API gravity of 26 degrees or lower; and
       (3) the term ``Secretary'' means the Secretary of Energy.

     SEC. 303. OBJECTIVES.

       The objectives of this title are as follows:
       (1) To modernize the composition of the Strategic Petroleum 
     Reserve to reflect the current processing capabilities of 
     refineries in the United States.
       (2) To provide increased funding to accelerate 
     conservation, energy research and development, and assistance 
     through existing programs.

     SEC. 304. MODIFICATION OF THE STRATEGIC PETROLEUM RESERVE.

       Notwithstanding section 161 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6241), the Secretary shall 
     publish a plan not later than 30 days after the date of 
     enactment of this Act to--
       (1) exchange as soon as possible light grade petroleum from 
     the Strategic Petroleum Reserve, in an amount equal to 10 
     percent of the total number of barrels of crude oil in the 
     Reserve as of the date of enactment of this Act, for an 
     equivalent volume of heavy grade petroleum plus any 
     additional cash bonus bids received that reflect the 
     difference in the market value between light grade petroleum 
     and heavy grade petroleum and the timing of deliveries of the 
     heavy grade petroleum;
       (2) from the gross proceeds of the cash bonus bids, deposit 
     the amount necessary to pay for the direct administrative and 
     operational costs of the exchange into the SPR Petroleum 
     Account established under section 167 of the Energy Policy 
     and Conservation Act (42 U.S.C. 6247); and
       (3) deposit 90 percent of the remaining net proceeds from 
     the exchange into the account established under section 
     305(a).

     SEC. 305. ENERGY INDEPENDENCE AND SECURITY FUND.

       (a) Establishment.--There is hereby established in the 
     Treasury of the United States the ``Energy Independence and 
     Security Fund'' (in this section referred to as the 
     ``Fund'').
       (b) Administration.--The Secretary shall be responsible for 
     administering the Fund for the purpose of carrying out this 
     section.
       (c) Deposits.--The Secretary shall transfer the balance of 
     funds in the SPR Petroleum Account on the date of enactment 
     of this Act in excess of $10,000,000 into the Fund.
       (d) Distribution of Funds.--The Secretary shall make 
     available for obligation, without further appropriation and 
     without fiscal year limitation, the following amounts from 
     the Fund:
       (1) Advanced Research Projects Agency--Energy.--The 
     Secretary shall transfer $100,000,000 to the account ``Energy 
     Transformation Acceleration Fund'', established under section 
     5012(m) of the America COMPETES Act (42 U.S.C. 16538(m)), to 
     remain available until expended. Of the funds so transferred, 
     the Secretary shall further allocate the amounts made 
     available for obligation as follows:
       (A) $50,000,000 shall be available for uni-versity-based 
     research projects.
       (B) $10,000,000 shall be available for program direction 
     expenses.
       (2) Wind Energy Research and Development.--The Secretary 
     shall transfer $15,000,000 to the account ``Energy Efficiency 
     and Renewable Energy'', to remain available until expended, 
     for necessary expenses for a program to support the 
     development of next-generation wind turbines, including 
     turbines capable of operating in areas with low wind speeds, 
     as authorized in section 931(a)(2)(B) of the Energy Policy 
     Act of 2005 ( 42 U.S.C. 16231(a)(2)(B)).
       (3) Solar Energy Research and Development.--The Secretary 
     shall transfer $30,000,000 to the account ``Energy Efficiency 
     and Renewable Energy'', to remain available until expended, 
     for necessary expenses for a program to accelerate the 
     research, development, demonstration, and deployment of solar 
     energy technologies, and public education and outreach 
     materials pursuant to such program, as authorized by section 
     931(a)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 
     16231(a)(2)(A)).
       (4) Low Income Weatherization and liheap.--The Secretary 
     shall transfer $100,000,000 to the account ``Weatherization

[[Page 19314]]

     Assistance Program'', to remain available until expended, for 
     necessary expenses for a program to weatherize low income 
     housing, as authorized by section 411 of the Energy 
     Independence and Security Act of 2007 (Public Law 110-140). 
     The Secretary shall transfer $100,000,000 to the Secretary of 
     Health and Human Services for distribution to States under 
     section 2604(a) through (d) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8623(a)-(d)).
       (5) Marine and hydrokinetic renewable electric energy.--The 
     Secretary shall transfer $30,000,000 to the account ``Energy 
     Efficiency and Renewable Energy'', to remain available until 
     expended, for necessary expenses for a program to accelerate 
     the research, development, demonstration, and deployment of 
     ocean and wave energy, including hydrokinetic renewable 
     energy, as authorized by section 931 of the Energy Policy Act 
     of 2005 (42 U.S.C. 16231) and section 636 of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17215).
       (6) Advanced vehicles research, development, and 
     demonstration.--The Secretary shall transfer $40,000,000 to 
     the account ``Energy Efficiency and Renewable Energy'', to 
     remain available until expended, for necessary expenses for 
     research, development, and demonstration on advanced, cost-
     effective technologies to improve the energy efficiency and 
     environmental performance of vehicles, as authorized in 
     section 911(a)(2)(A) of the Energy Policy Act of 2005 (42 
     U.S.C. 16191(a)(2)(A)).
       (7) Industrial energy efficiency research and 
     development.--The Secretary shall transfer $110,000,000 to 
     the account ``Energy Efficiency and Renewable Energy'', to 
     remain available until expended, for necessary expenses for a 
     program to accelerate the research, development, 
     demonstration, and deployment of new technologies to improve 
     the energy efficiency and reduce greenhouse gas emissions 
     from industrial processes, as authorized in section 
     911(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C. 
     16191(a)(2)(C)) and in section 452 of the Energy Independence 
     and Security Act of 2007 (42 U.S.C. 17111).
       (8) Building and lighting energy efficiency research and 
     development.--The Secretary shall transfer $70,000,000 to the 
     account ``Energy Efficiency and Renewable Energy'', to remain 
     available until expended, for necessary expenses for a 
     program to accelerate the research, development, 
     demonstration, and deployment of new technologies to improve 
     the energy efficiency of and reduce greenhouse gas emissions 
     from buildings, as authorized in section 321(g) of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 6295 note), 
     section 422 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17082), and section 912 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16192).
       (9) Geothermal energy development.-- The Secretary shall 
     transfer $30,000,000 to the account ``Energy Efficiency and 
     Renewable Energy'', to remain available until expended, for 
     necessary expenses for geothermal research and development 
     activities to be managed by the National Renewable Energy 
     Laboratory, as authorized by sections 613, 614, 615, and 616 
     of the Energy Independence and Security Act of 2007 (42 
     U.S.C. 17192-95) and section 931(a)(2)(C) of the Energy 
     Policy Act of 2005 (42 U.S.C. 16231(a)(2)(C)).
       (10) Smart grid technology research, development, and 
     demonstration.--The Secretary shall transfer $30,000,000 to 
     the account ``Energy Efficiency and Renewable Energy'', to 
     remain available until expended, for necessary expenses for 
     research, development, and demonstration of smart grid 
     technologies, as authorized by section 1304 of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17384).
       (11) Carbon capture and storage.--The Secretary shall 
     transfer $385,000,000 to the account ``Fossil Energy Research 
     and Development'', to remain available until expended, for 
     necessary expenses for a program of demonstration projects of 
     carbon capture and storage, and for a research program to 
     address public health, safety, and environmental impacts, as 
     authorized by section 963 of the Energy Policy Act of 2005 
     (42 U.S.C. 16293) and sections 703 and 707 of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17251, 
     17255).
       (12) Nonconventional domestic natural gas production and 
     environmental research.--
       (A) The Secretary shall transfer $50,000,000 to the account 
     authorized by section 999H(e) of the Energy Policy Act of 
     2005 (42 U.S.C. 16378(e)), to remain available until 
     expended.
       (B) The Secretary shall transfer $15,000,000 to the account 
     ``Fossil Energy Research and Development'', to remain 
     available until expended, for necessary expenses for a 
     program of basin-oriented assessments and public and private 
     partnerships involving States and industry to foster the 
     development of regional advanced technological, regulatory, 
     and economic development strategies for the efficient and 
     environmentally sustainable recovery and market delivery of 
     natural gas and domestic petroleum resources within the 
     United States, and for support for the Stripper Well 
     Consortium.
       (13) Hydrogen research and development.--The Secretary 
     shall transfer $5,000,000 to the account ``Energy Efficiency 
     and Renewable Energy'', to remain available until expended, 
     for necessary expenses for the Department of Energy's 1-
     1Prize Program, as authorized by section 1008(f) of the 
     Energy Policy Act of 2005 (42 U.S.C. 16396(f)).
       (14) Energy storage for transportation and electric 
     power.--
       (A) The Secretary shall transfer $30,000,000 to the account 
     ``Basic Energy Sciences'', to remain available until 
     expended, for necessary expenses for a program to accelerate 
     basic research on energy storage systems to support electric 
     drive vehicles, stationary applications, and electricity 
     transmission and distribution, as authorized by section 
     641(p)(1) of the Energy Independence and Security Act of 2007 
     (42 U.S.C. 17231(p)(1)).
       (B) The Secretary shall transfer $70,000,000 to the account 
     ``Energy Efficiency and Renewable Energy'', to remain 
     available until expended, including--
       (i) $30,000,000 for a program to accelerate applied 
     research on energy storage systems to support electric drive 
     vehicles, stationary applications, and electricity 
     transmission and distribution as authorized by section 
     641(p)(2) of the Energy Independence and Security Act of 2007 
     (42 U.S.C. 17231(p)(2));
       (ii) $20,000,000 for energy storage systems demonstrations 
     as authorized by section 641(p)(4) of the Energy Independence 
     and Security Act of 2007 (42 U.S.C. 17231(p)(4)); and
       (iii) $20,000,000 for vehicle energy storage systems 
     demonstrations as authorized by section 641(p)(5) of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 
     17231(p)(5)).
       (e) Transfer Procedures.--The Secretary shall make an 
     initial transfer from the Fund no later than 30 days after 
     the initial deposit of monies into the Fund. The Secretary 
     shall make additional transfers no later than 30 days after 
     subsequent deposits. If the amount available to be 
     transferred is less than the levels authorized under 
     subsection (d), the transfers for each program shall be 
     allocated on a pro rata basis. If the amount available to be 
     transferred exceeds the levels authorized under subsection 
     (d), the transfers for each program shall be increased on a 
     pro rata basis.
       (f) Management and Oversight.--
       (1) Additionality of fiscal year 2008 transfers.--All 
     amounts transferred under subsection (d) shall be in addition 
     to, and shall not be substituted for, any funds appropriated 
     for the same or similar purposes in the Consolidated 
     Appropriations Act, 2008.
       (2) Excess funds.--The total of all amounts transferred 
     under subsection (d) and any funds appropriated for the same 
     or similar purposes in the Consolidated Appropriations Act, 
     2008 may not exceed the amounts authorized in other Acts for 
     such purposes. In the event that amounts made available under 
     this title plus amounts under the Consolidated Appropriations 
     Act, 2008 exceed the cumulative amounts authorized in other 
     Acts for any program funded by this Act, the excess amounts 
     shall be distributed to the other programs funded by this 
     title on a pro rata basis.
       (3) Program plans and performance measures.--The Secretary 
     shall prepare and publish in the Federal Register a plan for 
     the proposed use of all funds authorized in subsection (d). 
     The plan also shall identify how the use of these funds will 
     be additive to, and not displace, annual appropriations. The 
     plans also shall identify performance measures to assess the 
     additional benefits that may be realized from the application 
     of the additional funding provided under this section. The 
     initial plan shall be published in the Federal Register not 
     later than 45 days after the date of enactment of this Act.
       (4) Congressional oversight and review.--Nothing in this 
     section shall limit or restrict the review and oversight of 
     program plans by the appropriate committees of Congress. 
     Nothing in this section shall limit or restrict the authority 
     of Congress to set alternative spending limitations in annual 
     appropriations Acts.
       (5) Apportionment.--All transactions of the Fund shall be 
     exempt from apportionment under the provisions of subchapter 
     II of chapter 15 of title 31, United States Code.

  Mr. PETERSON of Pennsylvania (during the reading). Mr. Speaker, I ask 
unanimous consent that the motion be considered as read.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  The SPEAKER pro tempore. The gentleman is recognized for 5 minutes in 
support of his motion.
  Mr. PETERSON of Pennsylvania. Thank you, Mr. Speaker.
  I want to thank the leadership on both sides. I want to thank all of 
the Members for the opportunity tonight to offer America the first 
bipartisan energy bill that may have been offered in this century 
written by Republicans and Democrats in a room with just cold 
sandwiches night after night, working with no lobbyists, no power 
brokers, trying to come together like the American people want us to. 
They want affordable, available energy as soon as

[[Page 19315]]

we can get it, and they want it ongoingly, and they deserve it.
  We're the most powerful Nation in the world, and it's unfair to the 
American public that their future depends on weather in the gulf, that 
their future depends on unstable countries that provide us half of our 
imported oil. We get half of the 70 percent we import from friends and 
half of it from unstable nations. The American people are not 
comfortable with that. They want better.
  And the American people know that our energy system could be 
sabotaged each and every day by the terrorists because there is no slop 
in the system, there's no surplus, there's no extra. There's just 
enough oil to meet the oil demand each day, and whenever anything goes 
wrong, the prices skyrocket.
  Folks, we have the chance here to reevaluate our policies. I 
understand many years ago when we set it aside, it was cheap: $2 gas, 
$10 oil, use theirs, save ours. Folks, that day is gone. We need to now 
reassess where we're at. We need to be energy independent in this 
country, and we need to start down that long road. It won't be easy, 
and it needs to be a broad-based plan.
  Our bill opens up the Outer Continental Shelf. It takes away all the 
prohibitions that have been put upon the Department of the Interior for 
leasing land. It repeals the prohibition of preventing Federal agencies 
from entering into contracts for procurement of alternative and 
synthetic fuels. It repeals limitation on the number of new qualified 
hybrid and advanced clean-burn technology vehicles eligible for the 
alternative vehicle tax benefits. That's electric and gas cars.
  It allows the use of woody biomass, the fastest growing renewable we 
have that's fueling pellet stoves and factories with wood waste and 
will be part of cellulosic ethanol as we move from corn to cellulose, 
prohibited today by law from using off of Federal land, wood waste. 
Removes that.
  Folks, it removes the prohibition on shale oil, the biggest oil 
opportunity this country has ever had. And folks, it takes the revenues 
and funds the renewables better than they've ever been funded. It funds 
conservation better than it's ever been funded. It funds clean-up 
efforts, environmental clean-up efforts. It funds carbon sequestration 
with large amounts of money.
  And let me read you that paragraph which I think is vital: ``The 
Carbon Capture and Sequestration Reserve offsets the cost of 
legislation enacted after the date of the enactment of the National 
Conservation, Environment and Energy Independence Act to promote 
research and development projects associated with carbon capture and 
storage in the production of liquid transportation fuels, electricity, 
synthetic natural gas, chemical feedstock and for the disposition and 
recycling/reprocessing of nuclear waste from nuclear power plants.''
  It will fund LIHEAP for those who are not going to be able to afford 
their heating this winter.
  Folks, this is not a perfect bill, but it's a damn good start, and it 
was put together by no interest groups, no corporations got involved, 
no environmental radical groups. None of them were at the table.

                              {time}  2130

  It was just Members of Congress who felt the needs of their districts 
and realized the plea of the people to give us available, affordable 
energy. We're the most powerful Nation. Why are we not doing that? Just 
recently, Russia bought a coal plant in Pennsylvania. You're going to 
find China buying energy plants in this country. They're building 
plants everywhere. They're preparing for their future while we've been 
sitting on our hands, bickering and bipartisanly fighting with each 
other.
  I ask the Members of both conferences to support this act that will 
give America energy in the future that's affordable.
  Mr. RAHALL. Mr. Speaker, with all due respect to the gentleman from 
Pennsylvania, I claim my 5 minutes in opposition to the motion to 
recommit, and I yield 2 minutes to the gentleman from Pennsylvania's 
partner in this effort, the gentleman from Hawaii.
  The SPEAKER pro tempore. The gentleman may yield and reclaim time as 
he sees fit. The Chair will not monitor sub-units of time within his 5 
minutes.
  Mr. RAHALL. I'm sorry?
  The SPEAKER pro tempore. The gentleman must keep track of the time 
himself. The Chair will not monitor it.
  Mr. RAHALL. Fine. Thank you, Mr. Speaker.
  Mr. ABERCROMBIE. Why didn't we take H.R. 6709 from the beginning just 
for the reasons that John says and make this a bill that we all put 
together? We've denounced each other all day, not everybody, but the 
denunciations and the accusations were all taking place all day.
  Where's John? No, no, I love you, John. The other John. But I don't 
see him over there.
  Mr. Boehner, the minority leader, has been talking about the other 
bill, the total energy bill or whatever it is all straight through. 
Then we come to H.R. 6709. Now, it's easy for me. I gave my word. 
Everybody in here knows that I give you my word, I'm going to keep it. 
I gave my word on this bill to try and move it along, and so I will.
  What bothers me is if the intention was to work H.R. 6709 all along, 
why didn't we do it? It would have been easy just to say okay, Madam 
Speaker, let's put this together and do it.
  Now, as I say, I believe that honor puts me in the position of voting 
for the bill as we have it on the floor, not for the recommittal.
  What I'm asking is, is if we meant this for real about trying to pass 
something in the national interest, then that's what we should do is 
pass the bill that we have.
  Now if the recommittal comes up and it doesn't succeed, what I'm 
hoping is if the other bill passes--and I urge us to vote for that 
bill--that we then go to the Senate and say, look, we've got a 
considerable consensus here, not unanimous by any respects, but we have 
a considerable consensus on the drilling, on the revenue sharing, on 
all the items that we worked on, on a bipartisan basis.
  So I think what we have to do here tonight, what I recommend to 
everybody on our side, is that we keep our word. We said that we were 
going to put this bill in good faith on the floor and move it along 
despite everybody saying that they had other contentions they would 
like to be in there, and that where H.R. 6709 is concerned on the 
recommittal is that it should have been offered from the beginning as a 
working document, but that the first part--okay. All right.
  Mr. RAHALL. Regular order, Mr. Speaker.
  Mr. ABERCROMBIE. You're making my point for me. You're making my 
point for me. We reached out to everybody. John and I reached out, and 
not just John and I, the 49 or 50 people--I named some of them 
tonight--to everybody. And if you think you're going to score points by 
yelling at me here on the floor, I think you're making my case for me.
  Mr. RAHALL. Mr. Speaker, reclaiming my time, it should be noted that 
the recommittal motion, in taking the Abercrombie and Peterson language 
as it has word for word, does repeal the military mission law 
protection that we worked so hard to keep in for the Florida 
delegation.
  The gentleman from Florida (Mr. Young) raised that issue on the 
floor. He had the map, and I would say to him that because of the 
importance of this to our military training, our aviation training, our 
national security defenses, we protect this area in our bill.
  The Abercrombie-Peterson measure, as read by the Clerk of the House 
just now, repeals the section 104 that provides for the protection of 
this Florida area.
  So I would urge my colleagues from the State of Florida to 
particularly take this into recognition, as well as all of my 
colleagues, because this is a national security area. The Air Force 
uses the eastern gulf for training maneuvers. It has become crucial for 
maintaining our military readiness, especially after the closure of 
Vieques, and our compromise bill does protect this area for important 
defense training and exercises.

[[Page 19316]]

  So I would hope Members would note that, and I do, of course, rise in 
opposition to the motion to recommit. Well, I do know where it came 
from, and as I said, I respect the gentleman from Pennsylvania (Mr. 
Peterson) for working with Mr. Abercrombie, and he has stated his 
reasons for opposing this language as well.
  So I would urge my colleagues to oppose this motion to recommit.
  I yield back the balance of my time.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mr. PETERSON of Pennsylvania. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair 
will reduce to 5 minutes the minimum time for any electronic vote on 
the question of passage.
  The vote was taken by electronic device, and there were--ayes 191, 
noes 226, not voting 17, as follows:

                             [Roll No. 598]

                               AYES--191

     Aderholt
     Akin
     Alexander
     Altmire
     Bachmann
     Bachus
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Biggert
     Bilbray
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boustany
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Cazayoux
     Chabot
     Childers
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Tom
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Donnelly
     Doolittle
     Drake
     Duncan
     Emerson
     English (PA)
     Everett
     Fallin
     Feeney
     Ferguson
     Flake
     Forbes
     Fortenberry
     Fossella
     Foster
     Foxx
     Franks (AZ)
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastings (WA)
     Hayes
     Hensarling
     Herger
     Herseth Sandlin
     Hobson
     Hoekstra
     Holden
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     LaTourette
     Latta
     Lewis (CA)
     Lewis (KY)
     Linder
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Marshall
     McCarthy (CA)
     McCotter
     McCrery
     McHenry
     McHugh
     McIntyre
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller, Gary
     Mitchell
     Moran (KS)
     Murphy, Tim
     Musgrave
     Myrick
     Nunes
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Platts
     Poe
     Price (GA)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Roskam
     Royce
     Ryan (WI)
     Sali
     Saxton
     Scalise
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shays
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Tancredo
     Taylor
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden (OR)
     Walsh (NY)
     Walz (MN)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield (KY)
     Wilson (NM)
     Wilson (SC)
     Wittman (VA)
     Wolf
     Young (AK)
     Young (FL)

                               NOES--226

     Abercrombie
     Ackerman
     Allen
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Buchanan
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castor
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Doyle
     Edwards (MD)
     Edwards (TX)
     Ellison
     Ellsworth
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Frank (MA)
     Frelinghuysen
     Giffords
     Gilchrest
     Gillibrand
     Gonzalez
     Gordon
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Heller
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Klein (FL)
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Perlmutter
     Peterson (MN)
     Pomeroy
     Porter
     Price (NC)
     Rahall
     Rangel
     Reichert
     Reyes
     Richardson
     Rodriguez
     Ros-Lehtinen
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Tsongas
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

                             NOT VOTING--17

     Brady (TX)
     Conyers
     Cubin
     Dreier
     Ehlers
     Green, Al
     Higgins
     Lampson
     McCaul (TX)
     McNerney
     Miller (MI)
     Neugebauer
     Paul
     Pitts
     Pryce (OH)
     Slaughter
     Walberg

                              {time}  2156

  Messrs. MOLLOHAN and ROTHMAN changed their vote from ``aye'' to 
``no.''
  Messrs. NUNES, SIMPSON and TURNER changed their vote from ``no'' to 
``aye.''
  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  Stated for:
  Ms. SLAUGHTER. Mr. Speaker, on rollcall No. 598, had I been present, 
I would have voted ``aye.''
  Stated against:
  Mr. McNERNEY. Mr. Speaker, on rollcall No. 598, had I been present, I 
would have voted ``no.''
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. RAHALL. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 236, 
noes 189, not voting 9, as follows:

                             [Roll No. 599]

                               AYES--236

     Abercrombie
     Ackerman
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Buchanan
     Butterfield
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castle
     Castor
     Chandler
     Childers
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards (MD)
     Edwards (TX)
     Ellison
     Ellsworth
     Emanuel
     Engel
     Eshoo
     Etheridge
     Fattah
     Foster
     Frank (MA)
     Giffords
     Gilchrest
     Gillibrand
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Hayes
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Honda
     Hooley
     Hoyer
     Inglis (SC)
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Jones (NC)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Kirk
     Klein (FL)
     Knollenberg
     Kucinich
     LaHood
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee
     Levin

[[Page 19317]]


     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McIntyre
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pascrell
     Pastor
     Pelosi
     Perlmutter
     Peterson (MN)
     Pomeroy
     Porter
     Price (NC)
     Rahall
     Ramstad
     Rangel
     Reichert
     Reyes
     Richardson
     Rodriguez
     Ross
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Thompson (MS)
     Tierney
     Towns
     Tsongas
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Wilson (OH)
     Wu
     Yarmuth

                               NOES--189

     Aderholt
     Akin
     Alexander
     Bachmann
     Bachus
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boustany
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Capps
     Carter
     Cazayoux
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Tom
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Duncan
     Emerson
     English (PA)
     Everett
     Fallin
     Farr
     Feeney
     Ferguson
     Filner
     Flake
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hobson
     Hoekstra
     Holt
     Hulshof
     Hunter
     Issa
     Johnson (IL)
     Johnson, Sam
     Jordan
     Keller
     King (IA)
     King (NY)
     Kingston
     Kline (MN)
     Kuhl (NY)
     Lamborn
     Latham
     LaTourette
     Latta
     Lewis (CA)
     Lewis (KY)
     Linder
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Marshall
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McHugh
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy, Tim
     Musgrave
     Myrick
     Nunes
     Pallone
     Payne
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Platts
     Poe
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Rothman
     Royce
     Ryan (WI)
     Sali
     Saxton
     Scalise
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Tancredo
     Taylor
     Terry
     Thompson (CA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden (OR)
     Walsh (NY)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield (KY)
     Wilson (NM)
     Wilson (SC)
     Wittman (VA)
     Wolf
     Woolsey
     Young (AK)
     Young (FL)

                             NOT VOTING--9

     Brady (TX)
     Cubin
     Dreier
     Ehlers
     Lampson
     Neugebauer
     Paul
     Pitts
     Walberg

                              {time}  2204

  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________