[Congressional Record (Bound Edition), Volume 154 (2008), Part 6]
[Senate]
[Pages 7967-7988]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4713. Mrs. DOLE submitted an amendment intended to be proposed by 
her to the bill S. 2284, to amend the National Flood Insurance Act of 
1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes.; which was ordered to lie on the table; as 
follows:

       On page 25, line 2, strike ``; and'' and insert a 
     semicolon.
       On page 25, line 5, strike the period and insert a 
     semicolon.
       On page 25, between lines 5 and 6, insert the following:
       (M) a representative of a State agency that has entered 
     into a cooperating technical partnership with the Director 
     and has demonstrated the capability to produce flood 
     insurance rate maps; and
       (N) a representative of a local government agency that has 
     entered into a cooperating technical partnership with the 
     Director and has demonstrated the capability to produce flood 
     insurance rate maps.
                                 ______
                                 
  SA 4714. Mr. SCHUMER (for himself, Mrs. Clinton, and Mr. Nelson of 
Florida) submitted an amendment intended to be proposed to amendment SA 
4707 proposed by Mr. Dodd (for himself and Mr. Shelby) to the bill S. 
2284, to amend the National Flood Insurance Act of 1968, to restore the 
financial solvency of the flood insurance fund, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of title I, add the following:

     SEC. 133. MULTIPERIL COVERAGE FOR FLOOD AND WINDSTORM.

       (a) In General.--Section 1304 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Multiperil Coverage for Damage From Flood or 
     Windstorm.--
       ``(1) In general.--Subject to paragraph (8), the national 
     flood insurance program established pursuant to subsection 
     (a) shall enable the purchase of optional insurance against 
     loss resulting from physical damage to or loss of real 
     property or personal property related thereto located in the 
     United States arising from any flood or windstorm, subject to 
     the limitations in this subsection and section 1306(b).
       ``(2) Community participation requirement.--Multiperil 
     coverage pursuant to this subsection may not be provided in 
     any area (or subdivision thereof) unless an appropriate 
     public body shall have adopted adequate mitigation measures 
     (with effective enforcement provisions) which the Director 
     finds are consistent with the criteria for construction 
     described in the International Code Council building codes 
     relating to wind mitigation.
       ``(3) Prohibition against duplicative coverage.--Multiperil 
     coverage pursuant to this subsection may not be provided with 
     respect to any structure (or the personal property related 
     thereto) for any period during which such structure is 
     covered, at any time, by flood insurance coverage made 
     available under this title.
       ``(4) Nature of coverage.--Multiperil coverage pursuant to 
     this subsection shall--
       ``(A) cover losses only from physical damage resulting from 
     flooding or windstorm; and
       ``(B) provide for approval and payment of claims under such 
     coverage upon proof that such loss must have resulted from 
     either windstorm or flooding, but shall not require for 
     approval and payment of a claim that the specific cause of 
     the loss, whether windstorm or flooding, be distinguished or 
     identified.
       ``(5) Actuarial rates.--Multiperil coverage pursuant to 
     this subsection shall be made available for purchase for a 
     property only at chargeable risk premium rates that, based on 
     consideration of the risks involved and accepted actuarial 
     principles, and including operating costs and allowance and 
     administrative expenses, are required in order to make such 
     coverage available on an actuarial basis for the type and 
     class of properties covered.
       ``(6) Terms of coverage.--The Director shall, after 
     consultation with persons and entities referred to in section 
     1306(a), provide by regulation for the general terms and 
     conditions of insurability which shall be applicable to 
     properties eligible for multiperil coverage under this 
     subsection, subject to the provisions of this subsection, 
     including--
       ``(A) the types, classes, and locations of any such 
     properties which shall be eligible for such coverage, which 
     shall include residential and nonresidential properties;
       ``(B) subject to paragraph (7), the nature and limits of 
     loss or damage in any areas (or subdivisions thereof) which 
     may be covered by such coverage;
       ``(C) the classification, limitation, and rejection of any 
     risks which may be advisable;
       ``(D) appropriate minimum premiums;
       ``(E) appropriate loss deductibles; and
       ``(F) any other terms and conditions relating to insurance 
     coverage or exclusion that may be necessary to carry out this 
     subsection.
       ``(7) Limitations on amount of coverage.--The regulations 
     issued pursuant to paragraph (6) shall provide that the 
     aggregate liability under multiperil coverage made available 
     under this subsection shall not exceed the lesser of the 
     replacement cost for covered losses or the following amounts, 
     as applicable:
       ``(A) Residential structures.--In the case of residential 
     properties, which shall include structures containing 
     multiple dwelling units that are made available for occupancy 
     by rental (notwithstanding any treatment or classification of 
     such properties for purposes of section 1306(b))--
       ``(i) for any single-family dwelling, $500,000;
       ``(ii) for any structure containing more than 1 dwelling 
     unit, $500,000 for each separate dwelling unit in the 
     structure, which limit, in the case of such a structure 
     containing multiple dwelling units that are made available 
     for occupancy by rental, shall be applied so as to enable any 
     insured or applicant for insurance to receive coverage for 
     the structure up to a total amount that is equal to the 
     product of the total number of such rental dwelling units in 
     such property and the maximum coverage limit per dwelling 
     unit specified in this clause; and
       ``(iii) $150,000 per dwelling unit for--

       ``(I) any contents related to such unit; and
       ``(II) any necessary increases in living expenses incurred 
     by the insured when losses from flooding or windstorm make 
     the residence unfit to live in.

       ``(B) Nonresidential properties.--In the case of 
     nonresidential properties (including church properties)--
       ``(i) $1,000,000 for any single structure; and
       ``(ii) $750,000 for--

       ``(I) any contents related to such structure; and
       ``(II) in the case of any nonresidential property that is a 
     business property, any losses resulting from any partial or 
     total interruption of the insured's business caused by damage 
     to, or loss of, such property from flooding or windstorm, 
     except that for purposes of such coverage, losses shall be 
     determined based on the profits the covered business would 
     have earned, based on previous financial records, had the 
     flood or windstorm not occurred.

       ``(8) Requirement to cease offering coverage if borrowing 
     to pay claims.--If at any time the Director utilizes the 
     borrowing authority under section 1309(a) for the purpose of 
     obtaining amounts to pay claims under multiperil coverage 
     made available under this subsection, the Director may not, 
     during the period beginning upon the initial such use of such 
     borrowing authority and ending upon repayment to the 
     Secretary of the Treasury of the full amount of all 
     outstanding notes and obligations issued by the Director for 
     such purpose, together with all interest owed on such notes 
     and obligations, enter into any new policy, or renew any 
     existing policy, for coverage made available under this 
     subsection.
       ``(9) Effective date.--This subsection shall take effect 
     on, and shall apply beginning on, June 30, 2008.''.
       (b) Prohibition Against Duplicative Coverage.--Chapter I of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
     seq.), as amended by section 26, is further amended by adding 
     at the end the following:

     ``SEC. 1315. PROHIBITION AGAINST DUPLICATIVE COVERAGE.

       ``Flood insurance under this title may not be provided with 
     respect to any structure (or the personal property related 
     thereto) for any period during which such structure is 
     covered, at any time, by multiperil insurance coverage made 
     available pursuant to section 1304(c).''.
       (c) Compliance With State and Local Law.--Section 1316 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4023) is 
     amended--
       (1) by inserting ``(a) Flood Protection Measures.--'' 
     before ``No new''; and
       (2) by adding at the end the following new subsection:
       ``(b) Windstorm Protection Measures.--No new multiperil 
     coverage shall be provided under section 1304(c) for any 
     property that the Director finds has been declared by a duly 
     constituted State or local zoning authority, or other 
     authorized public body to be in violation of State or local 
     laws, regulations, or ordinances, which are intended to 
     reduce damage caused by windstorms.''.
       (d) Criteria for Land Management and Use.--Section 1361 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4102) is 
     amended by adding at the end the following new subsection:
       ``(d) Windstorms.--

[[Page 7968]]

       ``(1) Studies and investigations.--The Director shall carry 
     out studies and investigations under this section to 
     determine appropriate measures in wind events as to wind 
     hazard prevention, and may enter into contracts, agreements, 
     and other appropriate arrangements to carry out such 
     activities. Such studies and investigations shall include 
     laws, regulations, and ordinance relating to the orderly 
     development and use of areas subject to damage from windstorm 
     risks, and zoning building codes, building permits, and 
     subdivision and other building restrictions for such areas.
       ``(2) Criteria.--On the basis of the studies and 
     investigations pursuant to paragraph (1) and such other 
     information as may be appropriate, the Direct shall establish 
     comprehensive criteria designed to encourage, where 
     necessary, the adoption of adequate State and local measures 
     which, to the maximum extent feasible, will assist in 
     reducing damage caused by windstorms, discourage density and 
     intensity or range of use increases in locations subject to 
     windstorm damage, and enforce restrictions on the alteration 
     of wetlands coastal dunes and vegetation and other natural 
     features that are known to prevent or reduce such damage.
       ``(3) Coordination with state and local governments.--The 
     Director shall work closely with and provide any necessary 
     technical assistance to State, interstate, and local 
     governmental agencies, to encourage the application of 
     criteria established under paragraph (2) and the adoption and 
     enforcement of measures referred to in such paragraph.''.
       (e) Definitions.--Section 1370 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4121) is amended--
       (1) in paragraph (14), by striking ``and'' at the end;
       (2) in paragraph (15) by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(16) the term `windstorm' means any hurricane, tornado, 
     cyclone, typhoon, or other wind event.''.
                                 ______
                                 
  SA 4715. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 2284, to amend the National Flood Insurance Act of 
1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 11, line 4 after the first period, insert the 
     following:
       ``(h) Use of Maps to Establish Rates for Certain 
     Counties.--
       ``(1) In general.--Until such time as the updating of flood 
     insurance rate maps under section 19 of the Flood 
     Modernization Act of 2007 is completed (as determined by the 
     district engineer) for all areas located in the St. Louis 
     District of the Mississippi Valley Division of the Corps of 
     Engineers, the Director shall not--
       ``(A) adjust the chargeable premium rate for flood 
     insurance under this title for any type or class of property 
     located in an area in that District; and
       ``(B) require the purchase of flood insurance for any type 
     or class of property located in an area in that District not 
     subject to such purchase requirement prior to the updating of 
     such national flood insurance program rate map.
       ``(2) Rule of construction.--For purposes of this 
     subsection, the term `area' does not include any area (or 
     subdivision thereof) that has chosen not to participate in 
     the flood insurance program under this title as of the date 
     of enactment of this subsection.''.
                                 ______
                                 
  SA 4716. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 2284, to amend the National Flood Insurance Act of 
1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. DISASTER ASSISTANCE.

       No person shall be eligible to receive disaster assistance 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.) or the Small Business 
     Act (15 U.S.C. 631 et seq.) relating to damage to a property 
     located in a 100-year floodplain caused by flooding, unless 
     prior to such flooding that person purchased and maintained 
     flood insurance for that property under the national flood 
     insurance program established under chapter I of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.).
                                 ______
                                 
  SA 4717. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 2284, to amend the National Flood Insurance Act of 
1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 8, line 6, strike ``and''.
       On page 8, line 9, strike ``policy.''.'' and insert the 
     following: ``policy; and
       ``(3) any prospective insured who refuses to accept any 
     offer for mitigation assistance by the Administrator 
     (including an offer to relocate), including an offer of 
     mitigation assistance--
       ``(A) following a major disaster, as defined in section 102 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122); or
       ``(B) in connection with--
       ``(i) a repetitive loss property; or
       ``(ii) a severe repetitive loss property, as that term is 
     defined under section 1361A.''.
                                 ______
                                 
  SA 4718. Mrs. FEINSTEIN submitted an amendment intended to be 
proposed by her to the bill S. 2284, to amend the National Flood 
Insurance Act of 1968, to restore the financial solvency of the flood 
insurance fund, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. 5-YEAR DISCOUNT OF FLOOD INSURANCE RATES FOR 
                   FORMERLY PROTECTED AREAS.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015), as previously amended by this Act, is 
     further amended--
       (1) in subsection (c), by inserting ``and subsection (i)'' 
     before the first comma; and
       (2) by adding at the end the following new subsection:
       ``(i) 5-Year Discount of Flood Insurance Rates for Formerly 
     Protected Areas.--
       ``(1) In general.--Notwithstanding any other provision of 
     law relating to chargeable risk premium rates for flood 
     insurance coverage under this title, in the case of any area 
     that previously was not designated as an area having special 
     flood hazards because the area was protected by a flood 
     protection system and that, pursuant to any updating, 
     reviewing, or remapping of flood insurance program rate maps 
     under this Act or any other subsequent Act, becomes 
     designated as such an area as a result of the decertification 
     of such flood protection system, during the 5-year period 
     that begins upon the initial such designation of the area, 
     the chargeable premium rate for flood insurance under this 
     title with respect to any property that prior to the date of 
     enactment of the Homeowner's Flood Insurance Protection Act 
     of 2007 was located within such area shall be equal to 50 
     percent of the chargeable risk premium rate otherwise 
     applicable under this title to the property.
       ``(2) Rule of construction.--For purposes of paragraph (1), 
     any new property or structure developed, constructed, or 
     otherwise built after the date of enactment of the 
     Homeowner's Flood Insurance Protection Act of 2007 on any 
     property described in such paragraph shall not be eligible 
     for the chargeable premium rate discount under such 
     paragraph.''.
                                 ______
                                 
  SA 4719. Mr. WICKER (for himself, Mr. Martinez, Mrs. Clinton, Mr. 
Vitter, Ms. Landrieu, Mr. Cochran, and Mr. Nelson of Florida) proposed 
an amendment to amendment SA 4707 proposed by Mr. Dodd (for himself and 
Mr. Shelby) to the bill S. 2284, to amend the National Flood Insurance 
Act of 1968, to restore the financial solvency of the flood insurance 
fund, and for other purposes; as follows:

       At the end, insert the following:

     SEC. ____. MULTIPERIL COVERAGE FOR FLOOD AND WINDSTORM.

       (a) In General.--Section 1304 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Multiperil Coverage for Damage From Flood or 
     Windstorm.--
       ``(1) In general.--Subject to paragraph (8), the national 
     flood insurance program established pursuant to subsection 
     (a) shall enable the purchase of optional insurance against 
     loss resulting from physical damage to or loss of real 
     property or personal property related thereto located in the 
     United States arising from any flood or windstorm, subject to 
     the limitations in this subsection and section 1306(b).
       ``(2) Community participation requirement.--Multiperil 
     coverage pursuant to this subsection may not be provided in 
     any area (or subdivision thereof) unless an appropriate 
     public body shall have adopted adequate mitigation measures 
     (with effective enforcement provisions) which the Director 
     finds are consistent with the criteria for construction 
     described in the International Code Council building codes 
     relating to wind mitigation.
       ``(3) Prohibition against duplicative coverage.--Multiperil 
     coverage pursuant to this subsection may not be provided with 
     respect to any structure (or the personal property related 
     thereto) for any period during which such structure is 
     covered, at any time, by flood insurance coverage made 
     available under this title.
       ``(4) Nature of coverage.--Multiperil coverage pursuant to 
     this subsection shall--

[[Page 7969]]

       ``(A) cover losses only from physical damage resulting from 
     flooding or windstorm; and
       ``(B) provide for approval and payment of claims under such 
     coverage upon proof that such loss must have resulted from 
     either windstorm or flooding, but shall not require for 
     approval and payment of a claim that the specific cause of 
     the loss, whether windstorm or flooding, be distinguished or 
     identified.
       ``(5) Actuarial rates.--Multiperil coverage pursuant to 
     this subsection shall be made available for purchase for a 
     property only at chargeable risk premium rates that, based on 
     consideration of the risks involved and accepted actuarial 
     principles, and including operating costs and allowance and 
     administrative expenses, are required in order to make such 
     coverage available on an actuarial basis for the type and 
     class of properties covered.
       ``(6) Terms of coverage.--The Director shall, after 
     consultation with persons and entities referred to in section 
     1306(a), provide by regulation for the general terms and 
     conditions of insurability which shall be applicable to 
     properties eligible for multiperil coverage under this 
     subsection, subject to the provisions of this subsection, 
     including--
       ``(A) the types, classes, and locations of any such 
     properties which shall be eligible for such coverage, which 
     shall include residential and nonresidential properties;
       ``(B) subject to paragraph (7), the nature and limits of 
     loss or damage in any areas (or subdivisions thereof) which 
     may be covered by such coverage;
       ``(C) the classification, limitation, and rejection of any 
     risks which may be advisable;
       ``(D) appropriate minimum premiums;
       ``(E) appropriate loss deductibles; and
       ``(F) any other terms and conditions relating to insurance 
     coverage or exclusion that may be necessary to carry out this 
     subsection.
       ``(7) Limitations on amount of coverage.--The regulations 
     issued pursuant to paragraph (6) shall provide that the 
     aggregate liability under multiperil coverage made available 
     under this subsection shall not exceed the lesser of the 
     replacement cost for covered losses or the following amounts, 
     as applicable:
       ``(A) Residential structures.--In the case of residential 
     properties, which shall include structures containing 
     multiple dwelling units that are made available for occupancy 
     by rental (notwithstanding any treatment or classification of 
     such properties for purposes of section 1306(b))--
       ``(i) for any single-family dwelling, $500,000;
       ``(ii) for any structure containing more than one dwelling 
     unit, $500,000 for each separate dwelling unit in the 
     structure, which limit, in the case of such a structure 
     containing multiple dwelling units that are made available 
     for occupancy by rental, shall be applied so as to enable any 
     insured or applicant for insurance to receive coverage for 
     the structure up to a total amount that is equal to the 
     product of the total number of such rental dwelling units in 
     such property and the maximum coverage limit per dwelling 
     unit specified in this clause; and
       ``(iii) $150,000 per dwelling unit for--

       ``(I) any contents related to such unit; and
       ``(II) any necessary increases in living expenses incurred 
     by the insured when losses from flooding or windstorm make 
     the residence unfit to live in.

       ``(B) Nonresidential properties.--In the case of 
     nonresidential properties (including church properties)--
       ``(i) $1,000,000 for any single structure; and
       ``(ii) $750,000 for--

       ``(I) any contents related to such structure; and
       ``(II) in the case of any nonresidential property that is a 
     business property, any losses resulting from any partial or 
     total interruption of the insured's business caused by damage 
     to, or loss of, such property from flooding or windstorm, 
     except that for purposes of such coverage, losses shall be 
     determined based on the profits the covered business would 
     have earned, based on previous financial records, had the 
     flood or windstorm not occurred.

       ``(8) Effective date.--This subsection shall take effect 
     on, and shall apply beginning on, June 30, 2008.''.
       (b) Prohibition Against Duplicative Coverage.--Chapter 1 of 
     The National Flood Insurance Act of 1968 is amended by adding 
     at the end the following:


               ``prohibition against duplicative coverage

       ``Sec. 1325.  Flood insurance under this title may not be 
     provided with respect to any structure (or the personal 
     property related thereto) for any period during which such 
     structure is covered, at any time, by multiperil insurance 
     coverage made available pursuant to section 1304(c).''.
       (c) Compliance With State and Local Law.--Section 1316 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4023) is 
     amended--
       (1) by inserting ``(a) Flood Protection Measures.--'' 
     before ``No new''; and
       (2) by adding at the end the following new subsection:
       ``(b) Windstorm Protection Measures.--No new multiperil 
     coverage shall be provided under section 1304(c) for any 
     property that the Director finds has been declared by a duly 
     constituted State or local zoning authority, or other 
     authorized public body to be in violation of State or local 
     laws, regulations, or ordinances, which are intended to 
     reduce damage caused by windstorms.''.
       (d) Criteria for Land Management and Use.--Section 1361 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4102) is 
     amended by adding at the end the following new subsection:
       ``(d) Windstorms.--
       ``(1) Studies and investigations.--The Director shall carry 
     out studies and investigations under this section to 
     determine appropriate measures in wind events as to wind 
     hazard prevention, and may enter into contracts, agreements, 
     and other appropriate arrangements to carry out such 
     activities. Such studies and investigations shall include 
     laws, regulations, and ordinance relating to the orderly 
     development and use of areas subject to damage from windstorm 
     risks, and zoning building codes, building permits, and 
     subdivision and other building restrictions for such areas.
       ``(2) Criteria.--On the basis of the studies and 
     investigations pursuant to paragraph (1) and such other 
     information as may be appropriate, the Direct shall establish 
     comprehensive criteria designed to encourage, where 
     necessary, the adoption of adequate State and local measures 
     which, to the maximum extent feasible, will assist in 
     reducing damage caused by windstorms, discourage density and 
     intensity or range of use increases in locations subject to 
     windstorm damage, and enforce restrictions on the alteration 
     of wetlands coastal dunes and vegetation and other natural 
     features that are known to prevent or reduce such damage.
       ``(3) Coordination with state and local governments.--The 
     Director shall work closely with and provide any necessary 
     technical assistance to State, interstate, and local 
     governmental agencies, to encourage the application of 
     criteria established under paragraph (2) and the adoption and 
     enforcement of measures referred to in such paragraph.''.
       (e) Definitions.--Section 1370 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4121) is amended--
       (1) in paragraph (14), by striking ``and'' at the end;
       (2) in paragraph (15) by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(16) the term `windstorm' means any hurricane, tornado, 
     cyclone, typhoon, or other wind event.''.
                                 ______
                                 
  SA 4720. Mr. McCONNELL (for himself, Mr. Domenici, Mr. Roberts, Mr. 
Gregg, Mrs. Hutchison, Mr. Isakson, Mr. Stevens, Mr. Inhofe, Mr. 
Allard, Mr. Bennett, Mr. Bunning, Ms. Murkowski, Mr. Bond, Mr. 
Sessions, Mr. Enzi, Mr. Chambliss, and Mr. Barrasso) proposed an 
amendment to the bill S. 2284, to amend the National Flood Insurance 
Act of 1968, to restore the financial solvency of the flood insurance 
fund, and for other purposes; as follows:

       On page 72, line 15, of the bill strike ``House of 
     Representatives'' and insert: House of Representatives.

     SECTION 33. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``American 
     Energy Production Act of 2008''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

                     TITLE I--TRADITIONAL RESOURCES

                  Subtitle A--Outer Continental Shelf

Sec. 101. Publication of projected State lines on outer Continental 
              Shelf.
Sec. 102. Production of oil and natural gas in new producing areas.
Sec. 103. Conforming amendment.

       Subtitle B--Leasing Program for Land Within Coastal Plain

Sec. 111. Definitions.
Sec. 112. Leasing program for land within the Coastal Plain.
Sec. 113. Lease sales.
Sec. 114. Grant of leases by the Secretary.
Sec. 115. Lease terms and conditions.
Sec. 116. Coastal plain environmental protection.
Sec. 117. Expedited judicial review.
Sec. 118. Rights-of-way and easements across Coastal Plain.
Sec. 119. Conveyance.
Sec. 120. Local government impact aid and community service assistance.
Sec. 121. Prohibition on exports.
Sec. 122. Allocation of revenues.

                         Subtitle C--Permitting

Sec. 131. Refinery permitting process.
Sec. 132. Removal of additional fee for new applications for permits to 
              drill.

                Subtitle D--Strategic Petroleum Reserve

Sec. 141. Suspension of petroleum acquisition for Strategic Petroleum 
              Reserve.

                Subtitle E--Restoration of State Revenue

Sec. 151. Restoration of State revenue.

[[Page 7970]]

                    TITLE II--ALTERNATIVE RESOURCES

       Subtitle A--Renewable Fuel and Advanced Energy Technology

Sec. 201. Definition of renewable biomass.
Sec. 202. Advanced battery manufacturing incentive program.
Sec. 203. Biofuels infrastructure and additives research and 
              development.
Sec. 204. Study of increased consumption of ethanol-blended gasoline 
              with higher levels of ethanol.
Sec. 205. Study of diesel vehicle attributes.

        Subtitle B--Clean Coal-Derived Fuels for Energy Security

Sec. 211. Short title.
Sec. 212. Definitions.
Sec. 213. Clean coal-derived fuel program.

                         Subtitle C--Oil Shale

Sec. 221. Removal of prohibition on final regulations for commercial 
              leasing program for oil shale resources on public land.

Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

Sec. 231. Procurement and acquisition of alternative fuels.
Sec. 232. Multiyear contract authority for the Department of Defense 
              for the procurement of synthetic fuels.

     SEC. 2. DEFINITION OF SECRETARY.

       In this Act, the term ``Secretary'' means the Secretary of 
     Energy.

                     TITLE I--TRADITIONAL RESOURCES

                  Subtitle A--Outer Continental Shelf

     SEC. 101. PUBLICATION OF PROJECTED STATE LINES ON OUTER 
                   CONTINENTAL SHELF.

       Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1333(a)(2)(A)) is amended--
       (1) by designating the first, second, and third sentences 
     as clause (i), (iii), and (iv), respectively;
       (2) in clause (i) (as so designated), by inserting before 
     the period at the end the following: ``not later than 90 days 
     after the date of enactment of the Domestic Energy Production 
     Act of 2008''; and
       (3) by inserting after clause (i) (as so designated) the 
     following:
       ``(ii)(I) The projected lines shall also be used for the 
     purpose of preleasing and leasing activities conducted in new 
     producing areas under section 32.
       ``(II) This clause shall not affect any property right or 
     title to Federal submerged land on the outer Continental 
     Shelf.
       ``(III) In carrying out this clause, the President shall 
     consider the offshore administrative boundaries beyond State 
     submerged lands for planning, coordination, and 
     administrative purposes of the Department of the Interior, 
     but may establish different boundaries.''.

     SEC. 102. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING 
                   AREAS.

       The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING 
                   AREAS.

       ``(a) Definitions.--In this section:
       ``(1) Coastal political subdivision.--The term `coastal 
     political subdivision' means a political subdivision of a new 
     producing State any part of which political subdivision is--
       ``(A) within the coastal zone (as defined in section 304 of 
     the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of 
     the new producing State as of the date of enactment of this 
     section; and
       ``(B) not more than 200 nautical miles from the geographic 
     center of any leased tract.
       ``(2) Moratorium area.--
       ``(A) In general.--The term `moratorium area' means an area 
     covered by sections 104 through 105 of the Department of the 
     Interior, Environment, and Related Agencies Appropriations 
     Act, 2008 (Public Law 110-161; 121 Stat. 2118) (as in effect 
     on the day before the date of enactment of this section).
       ``(B) Exclusion.--The term `moratorium area' does not 
     include an area located in the Gulf of Mexico.
       ``(3) New producing area.--The term `new producing area' 
     means any moratorium area within the offshore administrative 
     boundaries beyond the submerged land of a State that is 
     located greater than 50 miles from the coastline of the 
     State.
       ``(4) New producing state.--The term `new producing State' 
     means a State that has, within the offshore administrative 
     boundaries beyond the submerged land of the State, a new 
     producing area available for oil and gas leasing under 
     subsection (b).
       ``(5) Offshore administrative boundaries.--The term 
     `offshore administrative boundaries' means the administrative 
     boundaries established by the Secretary beyond State 
     submerged land for planning, coordination, and administrative 
     purposes of the Department of the Interior and published in 
     the Federal Register on January 3, 2006 (71 Fed. Reg. 127).
       ``(6) Qualified outer continental shelf revenues.--
       ``(A) In general.--The term `qualified outer Continental 
     Shelf revenues' means all rentals, royalties, bonus bids, and 
     other sums due and payable to the United States from leases 
     entered into on or after the date of enactment of this 
     section for new producing areas.
       ``(B) Exclusions.--The term `qualified outer Continental 
     Shelf revenues' does not include--
       ``(i) revenues from a bond or other surety forfeited for 
     obligations other than the collection of royalties;
       ``(ii) revenues from civil penalties;
       ``(iii) royalties taken by the Secretary in-kind and not 
     sold;
       ``(iv) revenues generated from leases subject to section 
     8(g); or
       ``(v) any revenues considered qualified outer Continental 
     Shelf revenues under section 102 of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432).
       ``(b) Petition for Leasing New Producing Areas.--
       ``(1) In general.--Beginning on the date on which the 
     President delineates projected State lines under section 
     4(a)(2)(A)(ii), the Governor of a State with a new producing 
     area within the offshore administrative boundaries beyond the 
     submerged land of the State may submit to the Secretary a 
     petition requesting that the Secretary make the new producing 
     area available for oil and gas leasing.
       ``(2) Action by secretary.--Notwithstanding section 18, as 
     soon as practicable after receipt of a petition under 
     paragraph (1), the Secretary shall approve the petition if 
     the Secretary determines that leasing the new producing area 
     would not create an unreasonable risk of harm to the marine, 
     human, or coastal environment.
       ``(c) Disposition of Qualified Outer Continental Shelf 
     Revenues From New Producing Areas.--
       ``(1) In general.--Notwithstanding section 9 and subject to 
     the other provisions of this subsection, for each applicable 
     fiscal year, the Secretary of the Treasury shall deposit--
       ``(A) 50 percent of qualified outer Continental Shelf 
     revenues in the general fund of the Treasury; and
       ``(B) 50 percent of qualified outer Continental Shelf 
     revenues in a special account in the Treasury from which the 
     Secretary shall disburse--
       ``(i) 75 percent to new producing States in accordance with 
     paragraph (2); and
       ``(ii) 25 percent to provide financial assistance to States 
     in accordance with section 6 of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. 460l-8), which shall 
     be considered income to the Land and Water Conservation Fund 
     for purposes of section 2 of that Act (16 U.S.C. 460l-5).
       ``(2) Allocation to new producing states and coastal 
     political subdivisions.--
       ``(A) Allocation to new producing states.--Effective for 
     fiscal year 2008 and each fiscal year thereafter, the amount 
     made available under paragraph (1)(B)(i) shall be allocated 
     to each new producing State in amounts (based on a formula 
     established by the Secretary by regulation) proportional to 
     the amount of qualified outer Continental Shelf revenues 
     generated in the new producing area offshore each State.
       ``(B) Payments to coastal political subdivisions.--
       ``(i) In general.--The Secretary shall pay 20 percent of 
     the allocable share of each new producing State, as 
     determined under subparagraph (A), to the coastal political 
     subdivisions of the new producing State.
       ``(ii) Allocation.--The amount paid by the Secretary to 
     coastal political subdivisions shall be allocated to each 
     coastal political subdivision in accordance with 
     subparagraphs (B) and (C) of section 31(b)(4).
       ``(3) Minimum allocation.--The amount allocated to a new 
     producing State for each fiscal year under paragraph (2) 
     shall be at least 5 percent of the amounts available under 
     for the fiscal year under paragraph (1)(B)(i).
       ``(4) Timing.--The amounts required to be deposited under 
     subparagraph (B) of paragraph (1) for the applicable fiscal 
     year shall be made available in accordance with that 
     subparagraph during the fiscal year immediately following the 
     applicable fiscal year.
       ``(5) Authorized uses.--
       ``(A) In general.--Subject to subparagraph (B), each new 
     producing State and coastal political subdivision shall use 
     all amounts received under paragraph (2) in accordance with 
     all applicable Federal and State laws, only for 1 or more of 
     the following purposes:
       ``(i) Projects and activities for the purposes of coastal 
     protection, including conservation, coastal restoration, 
     hurricane protection, and infrastructure directly affected by 
     coastal wetland losses.
       ``(ii) Mitigation of damage to fish, wildlife, or natural 
     resources.
       ``(iii) Implementation of a federally-approved marine, 
     coastal, or comprehensive conservation management plan.
       ``(iv) Mitigation of the impact of outer Continental Shelf 
     activities through the funding of onshore infrastructure 
     projects.
       ``(v) Planning assistance and the administrative costs of 
     complying with this section.
       ``(B) Limitation.--Not more than 3 percent of amounts 
     received by a new producing State or coastal political 
     subdivision under paragraph (2) may be used for the purposes 
     described in subparagraph (A)(v).
       ``(6) Administration.--Amounts made available under 
     paragraph (1)(B) shall--

[[Page 7971]]

       ``(A) be made available, without further appropriation, in 
     accordance with this subsection;
       ``(B) remain available until expended; and
       ``(C) be in addition to any amounts appropriated under--
       ``(i) other provisions of this Act;
       ``(ii) the Land and Water Conservation Fund Act of 1965 (16 
     U.S.C. 460l-4 et seq.); or
       ``(iii) any other provision of law.
       ``(d) Disposition of Qualified Outer Continental Shelf 
     Revenues From Other Areas.--Notwithstanding section 9, for 
     each applicable fiscal year, the terms and conditions of 
     subsection (c) shall apply to the disposition of qualified 
     outer Continental Shelf revenues that--
       ``(1) are derived from oil or gas leasing in an area that 
     is not included in the current 5-year plan of the Secretary 
     for oil or gas leasing; and
       ``(2) are not assumed in the budget of the United States 
     Government submitted by the President under section 1105 of 
     title 31, United States Code.''.

     SEC. 103. CONFORMING AMENDMENT.

       Sections 104 through 105 of the Department of the Interior, 
     Environment, and Related Agencies Appropriations Act, 2008 
     (Public Law 110-161; 121 Stat. 2118) are repealed.

       Subtitle B--Leasing Program for Land Within Coastal Plain

     SEC. 111. DEFINITIONS.

       In this subtitle:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as the ``1002 Coastal Plain Area'' on the 
     map.
       (2) Federal agreement.--The term ``Federal Agreement'' 
     means the Federal Agreement and Grant Right-of-Way for the 
     Trans-Alaska Pipeline issued on January 23, 1974, in 
     accordance with section 28 of the Mineral Leasing Act (30 
     U.S.C. 185) and the Trans-Alaska Pipeline Authorization Act 
     (43 U.S.C. 1651 et seq.).
       (3) Final statement.--The term ``Final Statement'' means 
     the final legislative environmental impact statement on the 
     Coastal Plain, dated April 1987, and prepared pursuant to 
     section 1002 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3142) and section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).
       (4) Map.--The term ``map'' means the map entitled ``Arctic 
     National Wildlife Refuge'', dated September 2005, and 
     prepared by the United States Geological Survey.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior (or the designee of the Secretary), acting 
     through the Director of the Bureau of Land Management in 
     consultation with the Director of the United States Fish and 
     Wildlife Service and in coordination with a State coordinator 
     appointed by the Governor of the State of Alaska.

     SEC. 112. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

       (a) In General.--
       (1) Authorization.--Congress authorizes the exploration, 
     leasing, development, production, and economically feasible 
     and prudent transportation of oil and gas in and from the 
     Coastal Plain.
       (2) Actions.--The Secretary shall take such actions as are 
     necessary--
       (A) to establish and implement, in accordance with this 
     subtitle, a competitive oil and gas leasing program that will 
     result in an environmentally sound program for the 
     exploration, development, and production of the oil and gas 
     resources of the Coastal Plain while taking into 
     consideration the interests and concerns of residents of the 
     Coastal Plain, which is the homeland of the Kaktovikmiut 
     Inupiat; and
       (B) to administer this subtitle through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (i) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, subsistence resources, and the environment; and
       (ii) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production to all exploration, development, 
     and production operations under this subtitle in a manner 
     that ensures the receipt of fair market value by the public 
     for the mineral resources to be leased.
       (b) Repeal.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents contained 
     in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
     striking the item relating to section 1003.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
     seq.)--
       (A) the oil and gas pre-leasing and leasing program, and 
     activities authorized by this section in the Coastal Plain, 
     shall be considered to be compatible with the purposes for 
     which the Arctic National Wildlife Refuge was established; 
     and
       (B) no further findings or decisions shall be required to 
     implement that program and those activities.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The Final 
     Statement shall be considered to satisfy the requirements 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) that apply with respect to pre-leasing 
     activities, including exploration programs and actions 
     authorized to be taken by the Secretary to develop and 
     promulgate the regulations for the establishment of a leasing 
     program authorized by this subtitle before the conduct of the 
     first lease sale.
       (3) Compliance with nepa for other actions.--
       (A) In general.--Before conducting the first lease sale 
     under this subtitle, the Secretary shall prepare an 
     environmental impact statement in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with respect to the actions authorized by this subtitle 
     that are not referred to in paragraph (2).
       (B) Identification and analysis.--Notwithstanding any other 
     provision of law, in carrying out this paragraph, the 
     Secretary shall not be required--
       (i) to identify nonleasing alternative courses of action; 
     or
       (ii) to analyze the environmental effects of those courses 
     of action.
       (C) Identification of preferred action.--Not later than 18 
     months after the date of enactment of this Act, the Secretary 
     shall--
       (i) identify only a preferred action and a single leasing 
     alternative for the first lease sale authorized under this 
     subtitle; and
       (ii) analyze the environmental effects and potential 
     mitigation measures for those 2 alternatives.
       (D) Public comments.--In carrying out this paragraph, the 
     Secretary shall consider only public comments that are filed 
     not later than 20 days after the date of publication of a 
     draft environmental impact statement.
       (E) Effect of compliance.--Notwithstanding any other 
     provision of law, compliance with this paragraph shall be 
     considered to satisfy all requirements for the analysis and 
     consideration of the environmental effects of proposed 
     leasing under this subtitle.
       (d) Relationship to State and Local Authority.--Nothing in 
     this subtitle expands or limits any State or local regulatory 
     authority.
       (e) Special Areas.--
       (1) Designation.--
       (A) In general.--The Secretary, after consultation with the 
     State of Alaska, the North Slope Borough, Alaska, and the 
     City of Kaktovik, Alaska, may designate not more than 45,000 
     acres of the Coastal Plain as a special area if the Secretary 
     determines that the special area would be of such unique 
     character and interest as to require special management and 
     regulatory protection.
       (B) Sadlerochit spring area.--The Secretary shall designate 
     as a special area in accordance with subparagraph (A) the 
     Sadlerochit Spring area, comprising approximately 4,000 acres 
     as depicted on the map.
       (2) Management.--The Secretary shall manage each special 
     area designated under this subsection in a manner that--
       (A) respects and protects the Native people of the area; 
     and
       (B) preserves the unique and diverse character of the area, 
     including fish, wildlife, subsistence resources, and cultural 
     values of the area.
       (3) Exclusion from leasing or surface occupancy.--
       (A) In general.--The Secretary may exclude any special area 
     designated under this subsection from leasing.
       (B) No surface occupancy.--If the Secretary leases all or a 
     portion of a special area for the purposes of oil and gas 
     exploration, development, production, and related activities, 
     there shall be no surface occupancy of the land comprising 
     the special area.
       (4) Directional drilling.--Notwithstanding any other 
     provision of this subsection, the Secretary may lease all or 
     a portion of a special area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the special area.
       (f) Limitation on Closed Areas.--The Secretary may not 
     close land within the Coastal Plain to oil and gas leasing or 
     to exploration, development, or production except in 
     accordance with this subtitle.
       (g) Regulations.--
       (1) In general.--Not later than 15 months after the date of 
     enactment of this Act, in consultation with appropriate 
     agencies of the State of Alaska, the North Slope Borough, 
     Alaska, and the City of Kaktovik, Alaska, the Secretary shall 
     issue such regulations as are necessary to carry out this 
     subtitle, including rules and regulations relating to 
     protection of the fish and wildlife, fish and wildlife 
     habitat, and subsistence resources of the Coastal Plain.
       (2) Revision of regulations.--The Secretary may 
     periodically review and, as appropriate, revise the rules and 
     regulations issued under paragraph (1) to reflect any 
     significant scientific or engineering data that come to the 
     attention of the Secretary.

     SEC. 113. LEASE SALES.

       (a) In General.--Land may be leased pursuant to this 
     subtitle to any person qualified

[[Page 7972]]

     to obtain a lease for deposits of oil and gas under the 
     Mineral Leasing Act (30 U.S.C. 181 et seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after that nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this 
     subtitle shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--For the first lease 
     sale under this subtitle, the Secretary shall offer for lease 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons, taking into 
     consideration nominations received pursuant to subsection 
     (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) not later than 22 months after the date of enactment of 
     this Act, conduct the first lease sale under this subtitle;
       (2) not later than September 30, 2012, conduct a second 
     lease sale under this subtitle; and
       (3) conduct additional sales at appropriate intervals if 
     sufficient interest in exploration or development exists to 
     warrant the conduct of the additional sales.

     SEC. 114. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--Upon payment by a lessee of such bonus as 
     may be accepted by the Secretary, the Secretary may grant to 
     the highest responsible qualified bidder in a lease sale 
     conducted pursuant to section 113 a lease for any land on the 
     Coastal Plain.
       (b) Subsequent Transfers.--
       (1) In general.--No lease issued under this subtitle may be 
     sold, exchanged, assigned, sublet, or otherwise transferred 
     except with the approval of the Secretary.
       (2) Condition for approval.--Before granting any approval 
     described in paragraph (1), the Secretary shall consult with 
     and give due consideration to the opinion of the Attorney 
     General.

     SEC. 115. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this subtitle shall--
       (1) provide for the payment of a royalty of not less than 
     16\1/2\ percent of the amount or value of the production 
     removed or sold from the lease, as determined by the 
     Secretary in accordance with regulations applicable to other 
     Federal oil and gas leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, such portions of the Coastal Plain to exploratory 
     drilling activities as are necessary to protect caribou 
     calving areas and other species of fish and wildlife;
       (3) require that each lessee of land within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of land within the Coastal Plain and any other 
     Federal land that is adversely affected in connection with 
     exploration, development, production, or transportation 
     activities within the Coastal Plain conducted by the lessee 
     or by any of the subcontractors or agents of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, that reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for land 
     required to be reclaimed under this subtitle shall be, to the 
     maximum extent practicable--
       (A) a condition capable of supporting the uses that the 
     land was capable of supporting prior to any exploration, 
     development, or production activities; or
       (B) upon application by the lessee, to a higher or better 
     standard, as approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, fish and wildlife habitat, subsistence 
     resources, and the environment as required under section 
     112(a)(2);
       (7) provide that each lessee, and each agent and contractor 
     of a lessee, use their best efforts to provide a fair share 
     of employment and contracting for Alaska Natives and Alaska 
     Native Corporations from throughout the State of Alaska, as 
     determined by the level of obligation previously agreed to in 
     the Federal Agreement; and
       (8) contain such other provisions as the Secretary 
     determines to be necessary to ensure compliance with this 
     subtitle and regulations issued under this subtitle.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this subtitle, and in 
     recognizing the proprietary interest of the Federal 
     Government in labor stability and in the ability of 
     construction labor and management to meet the particular 
     needs and conditions of projects to be developed under the 
     leases issued pursuant to this subtitle (including the 
     special concerns of the parties to those leases), shall 
     require that each lessee, and each agent and contractor of a 
     lessee, under this subtitle negotiate to obtain a project 
     labor agreement for the employment of laborers and mechanics 
     on production, maintenance, and construction under the lease.

     SEC. 116. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard to Govern 
     Authorized Coastal Plain Activities.--In accordance with 
     section 112, the Secretary shall administer this subtitle 
     through regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, or other provisions that--
       (1) ensure, to the maximum extent practicable, that oil and 
     gas exploration, development, and production activities on 
     the Coastal Plain will result in no significant adverse 
     effect on fish and wildlife, fish and wildlife habitat, and 
     the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum surface acreage covered in 
     connection with the leasing program by production and support 
     facilities, including airstrips and any areas covered by 
     gravel berms or piers for support of pipelines, does not 
     exceed 2,000 acres on the Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall require, with respect to any proposed drilling and 
     related activities on the Coastal Plain, that--
       (1) a site-specific environmental analysis be made of the 
     probable effects, if any, that the drilling or related 
     activities will have on fish and wildlife, fish and wildlife 
     habitat, subsistence resources, subsistence uses, and the 
     environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the maximum extent practicable) any 
     significant adverse effect identified under paragraph (1); 
     and
       (3) the development of the plan occur after consultation 
     with--
       (A) each agency having jurisdiction over matters mitigated 
     by the plan;
       (B) the State of Alaska;
       (C) North Slope Borough, Alaska; and
       (D) the City of Kaktovik, Alaska.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this subtitle, 
     the Secretary shall prepare and issue regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     or other measures designed to ensure, to the maximum extent 
     practicable, that the activities carried out on the Coastal 
     Plain under this subtitle are conducted in a manner 
     consistent with the purposes and environmental requirements 
     of this subtitle.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this subtitle 
     shall require--
       (1) compliance with all applicable provisions of Federal 
     and State environmental law (including regulations);
       (2) implementation of and compliance with--
       (A) standards that are at least as effective as the safety 
     and environmental mitigation measures, as described in items 
     1 through 29 on pages 167 through 169 of the Final Statement, 
     on the Coastal Plain;
       (B) seasonal limitations on exploration, development, and 
     related activities, as necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration;
       (C) design safety and construction standards for all 
     pipelines and any access and service roads that minimize, to 
     the maximum extent practicable, adverse effects on--
       (i) the passage of migratory species (such as caribou); and
       (ii) the flow of surface water by requiring the use of 
     culverts, bridges, or other structural devices;
       (D) prohibitions on general public access to, and use of, 
     all pipeline access and service roads;
       (E) stringent reclamation and rehabilitation requirements 
     in accordance with this subtitle for the removal from the 
     Coastal Plain of all oil and gas development and production 
     facilities, structures, and equipment on completion of oil 
     and gas production operations, except in a case in which the 
     Secretary determines that those facilities, structures, or 
     equipment--
       (i) would assist in the management of the Arctic National 
     Wildlife Refuge; and
       (ii) are donated to the United States for that purpose;
       (F) appropriate prohibitions or restrictions on--
       (i) access by all modes of transportation;
       (ii) sand and gravel extraction; and
       (iii) use of explosives;
       (G) reasonable stipulations for protection of cultural and 
     archaeological resources;
       (H) measures to protect groundwater and surface water, 
     including--
       (i) avoidance, to the maximum extent practicable, of 
     springs, streams, and river systems;
       (ii) the protection of natural surface drainage patterns 
     and wetland and riparian habitats; and

[[Page 7973]]

       (iii) the regulation of methods or techniques for 
     developing or transporting adequate supplies of water for 
     exploratory drilling; and
       (I) research, monitoring, and reporting requirements;
       (3) that exploration activities (except surface geological 
     studies) be limited to the period between approximately 
     November 1 and May 1 of each year and be supported, if 
     necessary, by ice roads, winter trails with adequate snow 
     cover, ice pads, ice airstrips, and air transport methods 
     (except that those exploration activities may be permitted at 
     other times if the Secretary determines that the exploration 
     will have no significant adverse effect on fish and wildlife, 
     fish and wildlife habitat, subsistence resources, and the 
     environment of the Coastal Plain);
       (4) consolidation of facility siting;
       (5) avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife;
       (6) treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including, in accordance with 
     applicable Federal and State environmental laws (including 
     regulations)--
       (A) preparation of an annual waste management report;
       (B) development and implementation of a hazardous materials 
     tracking system; and
       (C) prohibition on the use of chlorinated solvents;
       (7) fuel storage and oil spill contingency planning;
       (8) conduct of periodic field crew environmental briefings;
       (9) avoidance of significant adverse effects on subsistence 
     hunting, fishing, and trapping;
       (10) compliance with applicable air and water quality 
     standards;
       (11) appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited; and
       (12) development and implementation of such other 
     protective environmental requirements, restrictions, terms, 
     or conditions as the Secretary, after consultation with the 
     State of Alaska, North Slope Borough, Alaska, and the City of 
     Kaktovik, Alaska, determines to be necessary.
       (e) Considerations.--In preparing and issuing regulations, 
     lease terms, conditions, restrictions, prohibitions, or 
     stipulations under this section, the Secretary shall take 
     into consideration--
       (1) the stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement;
       (2) the environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 through 37.33 of title 50, Code of Federal 
     Regulations (or successor regulations); and
       (3) the land use stipulations for exploratory drilling on 
     the KIC-ASRC private land described in Appendix 2 of the 
     agreement between Arctic Slope Regional Corporation and the 
     United States dated August 9, 1983.
       (f) Facility Consolidation Planning.--
       (1) In general.--After providing for public notice and 
     comment, the Secretary shall prepare and periodically update 
     a plan to govern, guide, and direct the siting and 
     construction of facilities for the exploration, development, 
     production, and transportation of oil and gas resources from 
     the Coastal Plain.
       (2) Objectives.--The objectives of the plan shall be--
       (A) the avoidance of unnecessary duplication of facilities 
     and activities;
       (B) the encouragement of consolidation of common facilities 
     and activities;
       (C) the location or confinement of facilities and 
     activities to areas that will minimize impact on fish and 
     wildlife, fish and wildlife habitat, subsistence resources, 
     and the environment;
       (D) the use of existing facilities, to the maximum extent 
     practicable; and
       (E) the enhancement of compatibility between wildlife 
     values and development activities.
       (g) Access to Public Land.--The Secretary shall--
       (1) manage public land in the Coastal Plain in accordance 
     with subsections (a) and (b) of section 811 of the Alaska 
     National Interest Lands Conservation Act (16 U.S.C. 3121); 
     and
       (2) ensure that local residents shall have reasonable 
     access to public land in the Coastal Plain for traditional 
     uses.

     SEC. 117. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaints.--
       (1) Deadline.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed--
       (A) except as provided in subparagraph (B), during the 90-
     day period beginning on the date on which the action being 
     challenged was carried out; or
       (B) in the case of a complaint based solely on grounds 
     arising after the 90-day period described in subparagraph 
     (A), during the 90-day period beginning on the date on which 
     the complainant knew or reasonably should have known about 
     the grounds for the complaint.
       (2) Venue.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed in the United States Court 
     of Appeals for the District of Columbia.
       (3) Scope.--
       (A) In general.--Judicial review of a decision of the 
     Secretary under this subtitle (including an environmental 
     analysis of such a lease sale) shall be--
       (i) limited to a review of whether the decision is in 
     accordance with this subtitle; and
       (ii) based on the administrative record of the decision.
       (B) Presumptions.--Any identification by the Secretary of a 
     preferred course of action relating to a lease sale, and any 
     analysis by the Secretary of environmental effects, under 
     this subtitle shall be presumed to be correct unless proven 
     otherwise by clear and convincing evidence.
       (b) Limitation on Other Review.--Any action of the 
     Secretary that is subject to judicial review under this 
     section shall not be subject to judicial review in any civil 
     or criminal proceeding for enforcement.

     SEC. 118. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

       For purposes of section 1102(4)(A) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), any 
     rights-of-way or easements across the Coastal Plain for the 
     exploration, development, production, or transportation of 
     oil and gas shall be considered to be established incident to 
     the management of the Coastal Plain under this section.

     SEC. 119. CONVEYANCE.

       Notwithstanding section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
     remove any cloud on title to land, and to clarify land 
     ownership patterns in the Coastal Plain, the Secretary 
     shall--
       (1) to the extent necessary to fulfill the entitlement of 
     the Kaktovik Inupiat Corporation under sections 12 and 14 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 
     1613), as determined by the Secretary, convey to that 
     Corporation the surface estate of the land described in 
     paragraph (1) of Public Land Order 6959, in accordance with 
     the terms and conditions of the agreement between the 
     Secretary, the United States Fish and Wildlife Service, the 
     Bureau of Land Management, and the Kaktovik Inupiat 
     Corporation, dated January 22, 1993; and
       (2) convey to the Arctic Slope Regional Corporation the 
     remaining subsurface estate to which that Corporation is 
     entitled under the agreement between that corporation and the 
     United States, dated August 9, 1983.

     SEC. 120. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Establishment of Fund.--
       (1) In general.--As a condition on the receipt of funds 
     under section 122(2), the State of Alaska shall establish in 
     the treasury of the State, and administer in accordance with 
     this section, a fund to be known as the ``Coastal Plain Local 
     Government Impact Aid Assistance Fund'' (referred to in this 
     section as the ``Fund'').
       (2) Deposits.--Subject to paragraph (1), the Secretary of 
     the Treasury shall deposit into the Fund, $35,000,000 each 
     year from the amount available under section 122(2)(A).
       (3) Investment.--The Governor of the State of Alaska 
     (referred to in this section as the ``Governor'') shall 
     invest amounts in the Fund in interest-bearing securities of 
     the United States or the State of Alaska.
       (b) Assistance.--The Governor, in cooperation with the 
     Mayor of the North Slope Borough, shall use amounts in the 
     Fund to provide assistance to North Slope Borough, Alaska, 
     the City of Kaktovik, Alaska, and any other borough, 
     municipal subdivision, village, or other community in the 
     State of Alaska that is directly impacted by exploration for, 
     or the production of, oil or gas on the Coastal Plain under 
     this subtitle, or any Alaska Native Regional Corporation 
     acting on behalf of the villages and communities within its 
     region whose lands lie along the right of way of the Trans 
     Alaska Pipeline System, as determined by the Governor.
       (c) Application.--
       (1) In general.--To receive assistance under subsection 
     (b), a community or Regional Corporation described in that 
     subsection shall submit to the Governor, or to the Mayor of 
     the North Slope Borough, an application in such time, in such 
     manner, and containing such information as the Governor may 
     require.
       (2) Action by north slope borough.--The Mayor of the North 
     Slope Borough shall submit to the Governor each application 
     received under paragraph (1) as soon as practicable after the 
     date on which the application is received.
       (3) Assistance of governor.--The Governor shall assist 
     communities in submitting applications under this subsection, 
     to the maximum extent practicable.
       (d) Use of Funds.--A community or Regional Corporation that 
     receives funds under subsection (b) may use the funds--
       (1) to plan for mitigation, implement a mitigation plan, or 
     maintain a mitigation project to address the potential 
     effects of oil and gas exploration and development on 
     environmental, social, cultural, recreational, and 
     subsistence resources of the community;
       (2) to develop, carry out, and maintain--
       (A) a project to provide new or expanded public facilities; 
     or

[[Page 7974]]

       (B) services to address the needs and problems associated 
     with the effects described in paragraph (1), including 
     firefighting, police, water and waste treatment, first 
     responder, and other medical services;
       (3) to compensate residents of the Coastal Plain for 
     significant damage to environmental, social, cultural, 
     recreational, or subsistence resources; and
       (4) in the City of Kaktovik, Alaska--
       (A) to develop a mechanism for providing members of the 
     Kaktovikmiut Inupiat community an opportunity to--
       (i) monitor development on the Coastal Plain; and
       (ii) provide information and recommendations to the 
     Governor based on traditional aboriginal knowledge of the 
     natural resources, flora, fauna, and ecological processes of 
     the Coastal Plain; and
       (B) to establish a local coordination office, to be managed 
     by the Mayor of the North Slope Borough, in coordination with 
     the City of Kaktovik, Alaska--
       (i) to coordinate with and advise developers on local 
     conditions and the history of areas affected by development;
       (ii) to provide to the Committee on Resources of the House 
     of Representatives and the Committee on Energy and Natural 
     Resources of the Senate annual reports on the status of the 
     coordination between developers and communities affected by 
     development;
       (iii) to collect from residents of the Coastal Plain 
     information regarding the impacts of development on fish, 
     wildlife, habitats, subsistence resources, and the 
     environment of the Coastal Plain; and
       (iv) to ensure that the information collected under clause 
     (iii) is submitted to--

       (I) developers; and
       (II) any appropriate Federal agency.

     SEC. 121. PROHIBITION ON EXPORTS.

       An oil or gas lease issued under this subtitle shall 
     prohibit the exportation of oil or gas produced under the 
     lease.

     SEC. 122. ALLOCATION OF REVENUES.

       Notwithstanding the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.) or any other provision of law, of the adjusted bonus, 
     rental, and royalty receipts from Federal oil and gas leasing 
     and operations authorized under this subtitle:
       (1) 50 percent shall be deposited in the general fund of 
     the Treasury.
       (2) The remainder shall be available as follows:
       (A) $35,000,000 shall be deposited by the Secretary of the 
     Treasury into the fund created under section 120(a)(1).
       (B) The remainder shall be disbursed to the State of 
     Alaska.

                         Subtitle C--Permitting

     SEC. 131. REFINERY PERMITTING PROCESS.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (3) Permit.--The term ``permit'' means any permit, license, 
     approval, variance, or other form of authorization that a 
     refiner is required to obtain--
       (A) under any Federal law; or
       (B) from a State or Indian tribal government agency 
     delegated authority by the Federal Government, or authorized 
     under Federal law, to issue permits.
       (4) Refiner.--The term ``refiner'' means a person that--
       (A) owns or operates a refinery; or
       (B) seeks to become an owner or operator of a refinery.
       (5) Refinery.--
       (A) In general.--The term ``refinery'' means--
       (i) a facility at which crude oil is refined into 
     transportation fuel or other petroleum products; and
       (ii) a coal liquification or coal-to-liquid facility at 
     which coal is processed into synthetic crude oil or any other 
     fuel.
       (B) Inclusions.--The term ``refinery'' includes an 
     expansion of a refinery.
       (6) Refinery expansion.--The term ``refinery expansion'' 
     means a physical change in a refinery that results in an 
     increase in the capacity of the refinery.
       (7) Refinery permitting agreement.--The term ``refinery 
     permitting agreement'' means an agreement entered into 
     between the Administrator and a State or Indian tribe under 
     subsection (b).
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (9) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (b) Streamlining of Refinery Permitting Process.--
       (1) In general.--At the request of the Governor of a State 
     or the governing body of an Indian tribe, the Administrator 
     shall enter into a refinery permitting agreement with the 
     State or Indian tribe under which the process for obtaining 
     all permits necessary for the construction and operation of a 
     refinery shall be streamlined using a systematic 
     interdisciplinary multimedia approach as provided in this 
     section.
       (2) Authority of administrator.--Under a refinery 
     permitting agreement--
       (A) the Administrator shall have authority, as applicable 
     and necessary, to--
       (i) accept from a refiner a consolidated application for 
     all permits that the refiner is required to obtain to 
     construct and operate a refinery;
       (ii) in consultation and cooperation with each Federal, 
     State, or Indian tribal government agency that is required to 
     make any determination to authorize the issuance of a permit, 
     establish a schedule under which each agency shall--

       (I) concurrently consider, to the maximum extent 
     practicable, each determination to be made; and
       (II) complete each step in the permitting process; and

       (iii) issue a consolidated permit that combines all permits 
     issued under the schedule established under clause (ii); and
       (B) the Administrator shall provide to State and Indian 
     tribal government agencies--
       (i) financial assistance in such amounts as the agencies 
     reasonably require to hire such additional personnel as are 
     necessary to enable the government agencies to comply with 
     the applicable schedule established under subparagraph 
     (A)(ii); and
       (ii) technical, legal, and other assistance in complying 
     with the refinery permitting agreement.
       (3) Agreement by the state.--Under a refinery permitting 
     agreement, a State or governing body of an Indian tribe shall 
     agree that--
       (A) the Administrator shall have each of the authorities 
     described in paragraph (2); and
       (B) each State or Indian tribal government agency shall--
       (i) in accordance with State law, make such structural and 
     operational changes in the agencies as are necessary to 
     enable the agencies to carry out consolidated project-wide 
     permit reviews concurrently and in coordination with the 
     Environmental Protection Agency and other Federal agencies; 
     and
       (ii) comply, to the maximum extent practicable, with the 
     applicable schedule established under paragraph (2)(A)(ii).
       (4) Deadlines.--
       (A) New refineries.--In the case of a consolidated permit 
     for the construction of a new refinery, the Administrator and 
     the State or governing body of an Indian tribe shall approve 
     or disapprove the consolidated permit not later than--
       (i) 360 days after the date of the receipt of the 
     administratively complete application for the consolidated 
     permit; or
       (ii) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 90 days 
     after the expiration of the deadline established under clause 
     (i).
       (B) Expansion of existing refineries.--In the case of a 
     consolidated permit for the expansion of an existing 
     refinery, the Administrator and the State or governing body 
     of an Indian tribe shall approve or disapprove the 
     consolidated permit not later than--
       (i) 120 days after the date of the receipt of the 
     administratively complete application for the consolidated 
     permit; or
       (ii) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 30 days 
     after the expiration of the deadline established under clause 
     (i).
       (5) Federal agencies.--Each Federal agency that is required 
     to make any determination to authorize the issuance of a 
     permit shall comply with the applicable schedule established 
     under paragraph (2)(A)(ii).
       (6) Judicial review.--Any civil action for review of any 
     permit determination under a refinery permitting agreement 
     shall be brought exclusively in the United States district 
     court for the district in which the refinery is located or 
     proposed to be located.
       (7) Efficient permit review.--In order to reduce the 
     duplication of procedures, the Administrator shall use State 
     permitting and monitoring procedures to satisfy substantially 
     equivalent Federal requirements under this title.
       (8) Severability.--If 1 or more permits that are required 
     for the construction or operation of a refinery are not 
     approved on or before any deadline established under 
     paragraph (4), the Administrator may issue a consolidated 
     permit that combines all other permits that the refiner is 
     required to obtain other than any permits that are not 
     approved.
       (9) Savings.--Nothing in this subsection affects the 
     operation or implementation of otherwise applicable law 
     regarding permits necessary for the construction and 
     operation of a refinery.
       (10) Consultation with local governments.--Congress 
     encourages the Administrator, States, and tribal governments 
     to consult, to the maximum extent practicable, with local 
     governments in carrying out this subsection.
       (11) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this subsection.
       (12) Effect on local authority.--Nothing in this subsection 
     affects--

[[Page 7975]]

       (A) the authority of a local government with respect to the 
     issuance of permits; or
       (B) any requirement or ordinance of a local government 
     (such as a zoning regulation).
       (c) Fischer-Tropsch Fuels.--
       (1) In general.--In cooperation with the Secretary of 
     Energy, the Secretary of Defense, the Administrator of the 
     Federal Aviation Administration, Secretary of Health and 
     Human Services, and Fischer-Tropsch industry representatives, 
     the Administrator shall--
       (A) conduct a research and demonstration program to 
     evaluate the air quality benefits of ultra-clean Fischer-
     Tropsch transportation fuel, including diesel and jet fuel;
       (B) evaluate the use of ultra-clean Fischer-Tropsch 
     transportation fuel as a mechanism for reducing engine 
     exhaust emissions; and
       (C) submit recommendations to Congress on the most 
     effective use and associated benefits of these ultra-clean 
     fuel for reducing public exposure to exhaust emissions.
       (2) Guidance and technical support.--The Administrator 
     shall, to the extent necessary, issue any guidance or 
     technical support documents that would facilitate the 
     effective use and associated benefit of Fischer-Tropsch fuel 
     and blends.
       (3) Requirements.--The program described in paragraph (1) 
     shall consider--
       (A) the use of neat (100 percent) Fischer-Tropsch fuel and 
     blends with conventional crude oil-derived fuel for heavy-
     duty and light-duty diesel engines and the aviation sector; 
     and
       (B) the production costs associated with domestic 
     production of those ultra clean fuel and prices for 
     consumers.
       (4) Reports.--The Administrator shall submit to the 
     Committee on Environment and Public Works and the Committee 
     on Energy and Natural Resources of the Senate and the 
     Committee on Energy and Commerce of the House of 
     Representatives--
       (A) not later than 1 year, an interim report on actions 
     taken to carry out this subsection; and
       (B) not later than 2 years, a final report on actions taken 
     to carry out this subsection.

     SEC. 132. REMOVAL OF ADDITIONAL FEE FOR NEW APPLICATIONS FOR 
                   PERMITS TO DRILL.

       The second undesignated paragraph of the matter under the 
     heading ``management of lands and resources'' under the 
     heading ``Bureau of Land Management'' of title I of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2098) 
     is amended by striking ``to be reduced'' and all that follows 
     through ``each new application,''.

                Subtitle D--Strategic Petroleum Reserve

     SEC. 141. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC 
                   PETROLEUM RESERVE.

       (a) In General.--Except as provided in subsection (b) and 
     notwithstanding any other provision of law, during the 180-
     day period beginning on the date of enactment of this Act--
       (1) the Secretary of the Interior shall suspend acquisition 
     of petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program; and
       (2) the Secretary of Energy shall suspend acquisition of 
     petroleum for the Strategic Petroleum Reserve through any 
     other acquisition method.
       (b) Resumption.--Effective beginning on the day after the 
     end of the period described in subsection (a)--
       (1) the Secretary of the Interior may resume acquisition of 
     petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program; and
       (2) the Secretary of Energy may resume acquisition of 
     petroleum for the Strategic Petroleum Reserve through any 
     other acquisition method.

                Subtitle E--Restoration of State Revenue

     SEC. 151. RESTORATION OF STATE REVENUE.

       The matter under the heading ``administrative provisions'' 
     under the heading ``Minerals Management Service'' of title I 
     of the Department of the Interior, Environment, and Related 
     Agencies Appropriations Act, 2008 (Public Law 110-161; 121 
     Stat. 2109) is amended by striking ``Notwithstanding'' and 
     all that follows through ``Treasury.''.

                    TITLE II--ALTERNATIVE RESOURCES

       Subtitle A--Renewable Fuel and Advanced Energy Technology

     SEC. 201. DEFINITION OF RENEWABLE BIOMASS.

       Section 211(o)(1) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)) is amended by striking subparagraph (I) and 
     inserting the following:
       ``(I) Renewable biomass.--The term `renewable biomass' 
     means--
       ``(i) nonmerchantable materials or precommercial thinnings 
     that--

       ``(I) are byproducts of preventive treatments, such as 
     trees, wood, brush, thinnings, chips, and slash, that are 
     removed--

       ``(aa) to reduce hazardous fuels;
       ``(bb) to reduce or contain disease or insect infestation; 
     or
       ``(cc) to restore forest health;

       ``(II) would not otherwise be used for higher-value 
     products; and
       ``(III) are harvested from National Forest System land or 
     public land (as defined in section 103 of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1702))--

       ``(aa) where permitted by law; and
       ``(bb) in accordance with applicable land management plans 
     and the requirements for old-growth maintenance, restoration, 
     and management direction of paragraphs (2), (3), and (4) of 
     subsection (e) and the requirements for large-tree retention 
     of subsection (f) of section 102 of the Healthy Forests 
     Restoration Act of 2003 (16 U.S.C. 6512); or
       ``(ii) any organic matter that is available on a renewable 
     or recurring basis from non-Federal land or from land 
     belonging to an Indian tribe, or an Indian individual, that 
     is held in trust by the United States or subject to a 
     restriction against alienation imposed by the United States, 
     including--

       ``(I) renewable plant material, including--

       ``(aa) feed grains;
       ``(bb) other agricultural commodities;
       ``(cc) other plants and trees; and
       ``(dd) algae; and

       ``(II) waste material, including--

       ``(aa) crop residue;
       ``(bb) other vegetative waste material (including wood 
     waste and wood residues);
       ``(cc) animal waste and byproducts (including fats, oils, 
     greases, and manure); and
       ``(dd) food waste and yard waste.''.

     SEC. 202. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.

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

[[Page 7976]]



     SEC. 203. BIOFUELS INFRASTRUCTURE AND ADDITIVES RESEARCH AND 
                   DEVELOPMENT.

       (a) In General.--The Assistant Administrator of the Office 
     of Research and Development of the Environmental Protection 
     Agency (referred to in this section as the ``Assistant 
     Administrator''), in consultation with the Secretary and the 
     National Institute of Standards and Technology, shall carry 
     out a program of research and development of materials to be 
     added to biofuels to make the biofuels more compatible with 
     infrastructure used to store and deliver petroleum-based 
     fuels to the point of final sale.
       (b) Requirements.--In carrying out the program described in 
     subsection (a), the Assistant Administrator shall address--
       (1) materials to prevent or mitigate--
       (A) corrosion of metal, plastic, rubber, cork, fiberglass, 
     glues, or any other material used in pipes and storage tanks;
       (B) dissolving of storage tank sediments;
       (C) clogging of filters;
       (D) contamination from water or other adulterants or 
     pollutants;
       (E) poor flow properties relating to low temperatures;
       (F) oxidative and thermal instability in long-term storage 
     and use; and
       (G) microbial contamination;
       (2) problems associated with electrical conductivity;
       (3) alternatives to conventional methods for refurbishment 
     and cleaning of gasoline and diesel tanks, including tank 
     lining applications;
       (4) strategies to minimize emissions from infrastructure;
       (5) issues with respect to certification by a nationally 
     recognized testing laboratory of components for fuel-
     dispensing devises that specifically reference compatibility 
     with alcohol-blended fuels and other biofuels that contain 
     greater than 15 percent alcohol;
       (6) challenges for design, reforming, storage, handling, 
     and dispensing hydrogen fuel from various feedstocks, 
     including biomass, from neighborhood fueling stations, 
     including codes and standards development necessary beyond 
     that carried out under section 809 of the Energy Policy Act 
     of 2005 (42 U.S.C. 16158);
       (7) issues with respect to at which point in the fuel 
     supply chain additives optimally should be added to fuels; 
     and
       (8) other problems, as identified by the Assistant 
     Administrator, in consultation with the Secretary and the 
     National Institute of Standards and Technology.

     SEC. 204. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED 
                   GASOLINE WITH HIGHER LEVELS OF ETHANOL.

       (a) In General.--The Secretary, in cooperation with the 
     Secretary of Agriculture, the Administrator of the 
     Environmental Protection Agency, and the Secretary of 
     Transportation, and after providing notice and an opportunity 
     for public comment, shall conduct a study of the feasibility 
     of increasing consumption in the United States of ethanol-
     blended gasoline with levels of ethanol that are not less 
     than 10 percent and not more than 40 percent.
       (b) Study.--The study under subsection (a) shall include--
       (1) a review of production and infrastructure constraints 
     on increasing consumption of ethanol;
       (2) an evaluation of the economic, market, and energy-
     related impacts of State and regional differences in ethanol 
     blends;
       (3) an evaluation of the economic, market, and energy-
     related impacts on gasoline retailers and consumers of 
     separate and distinctly labeled fuel storage facilities and 
     dispensers;
       (4) an evaluation of the environmental impacts of mid-level 
     ethanol blends on evaporative and exhaust emissions from on-
     road, off-road, and marine engines, recreational boats, 
     vehicles, and equipment;
       (5) an evaluation of the impacts of mid-level ethanol 
     blends on the operation, durability, and performance of on-
     road, off-road, and marine engines, recreational boats, 
     vehicles, and equipment;
       (6) an evaluation of the safety impacts of mid-level 
     ethanol blends on consumers that own and operate off-road and 
     marine engines, recreational boats, vehicles, or equipment; 
     and
       (7) an evaluation of the impacts of increased use of 
     renewable fuels derived from food crops on the price and 
     supply of agricultural commodities in both domestic and 
     global markets.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing the results of the study conducted under 
     this section.

     SEC. 205. STUDY OF DIESEL VEHICLE ATTRIBUTES.

       (a) In General.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Transportation, shall conduct a study to 
     identify--
       (1) the environmental and efficiency attributes of diesel-
     fueled vehicles as the vehicles compare to comparable 
     gasoline fueled, E-85 fueled, and hybrid vehicles;
       (2) the technical, economic, regulatory, environmental, and 
     other obstacles to increasing the usage of diesel-fueled 
     vehicles;
       (3) the legislative, administrative, and other actions that 
     could reduce or eliminate the obstacles identified under 
     paragraph (2); and
       (4) the costs and benefits associated with reducing or 
     eliminating the obstacles identified under paragraph (2).
       (b) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Energy and Commerce of the House of 
     Representatives a report describing the results of the study 
     conducted under subsection (a).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

        Subtitle B--Clean Coal-Derived Fuels for Energy Security

     SEC. 211. SHORT TITLE.

       This subtitle may be cited as the ``Clean Coal-Derived 
     Fuels for Energy Security Act of 2008''.

     SEC. 212. DEFINITIONS.

       In this subtitle:
       (1) Clean coal-derived fuel.--
       (A) In general.--The term ``clean coal-derived fuel'' means 
     aviation fuel, motor vehicle fuel, home heating oil, or 
     boiler fuel that is--
       (i) substantially derived from the coal resources of the 
     United States; and
       (ii) refined or otherwise processed at a facility located 
     in the United States that captures up to 100 percent of the 
     carbon dioxide emissions that would otherwise be released at 
     the facility.
       (B) Inclusions.--The term ``clean coal-derived fuel'' may 
     include any other resource that is extracted, grown, 
     produced, or recovered in the United States.
       (2) Covered fuel.--The term ``covered fuel'' means--
       (A) aviation fuel;
       (B) motor vehicle fuel;
       (C) home heating oil; and
       (D) boiler fuel.
       (3) Small refinery.--The term ``small refinery'' means a 
     refinery for which the average aggregate daily crude oil 
     throughput for a calendar year (as determined by dividing the 
     aggregate throughput for the calendar year by the number of 
     days in the calendar year) does not exceed 75,000 barrels.

     SEC. 213. CLEAN COAL-DERIVED FUEL PROGRAM.

       (a) Program.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the President shall promulgate 
     regulations to ensure that covered fuel sold or introduced 
     into commerce in the United States (except in noncontiguous 
     States or territories), on an annual average basis, contains 
     the applicable volume of clean coal-derived fuel determined 
     in accordance with paragraph (4).
       (2) Provisions of regulations.--Regardless of the date of 
     promulgation, the regulations promulgated under paragraph 
     (1)--
       (A) shall contain compliance provisions applicable to 
     refineries, blenders, distributors, and importers, as 
     appropriate, to ensure that--
       (i) the requirements of this subsection are met; and
       (ii) clean coal-derived fuels produced from facilities for 
     the purpose of compliance with this subtitle result in life 
     cycle greenhouse gas emissions that are not greater than 
     gasoline; and
       (B) shall not--
       (i) restrict geographic areas in the contiguous United 
     States in which clean coal-derived fuel may be used; or
       (ii) impose any per-gallon obligation for the use of clean 
     coal-derived fuel.
       (3) Relationship to other regulations.--Regulations 
     promulgated under this paragraph shall, to the maximum extent 
     practicable, incorporate the program structure, compliance 
     and reporting requirements established under the final 
     regulations promulgated to implement the renewable fuel 
     program established by the amendment made by section 
     1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-
     58; 119 Stat. 1067).
       (4) Applicable volume.--
       (A) Calendar years 2015 through 2022.--For the purpose of 
     this subsection, the applicable volume for any of calendar 
     years 2015 through 2022 shall be determined in accordance 
     with the following table:
                           Applicable volume of clean coal-derived fuel
Calendar year:                                (in billions of gallons):
  2015.............................................................0.75
  2016..............................................................1.5
  2017.............................................................2.25
  2018.............................................................3.00
  2019.............................................................3.75
  2020..............................................................4.5
  2021.............................................................5.25
  2022..............................................................6.0

       (B) Calendar year 2023 and thereafter.--Subject to 
     subparagraph (C), for the purposes of this subsection, the 
     applicable volume for calendar year 2023 and each calendar 
     year thereafter shall be determined by the President, in 
     coordination with the Secretary and the Administrator of the 
     Environmental Protection Agency, based on a review of the 
     implementation of the program during calendar years 2015 
     through 2022, including a review of--

[[Page 7977]]

       (i) the impact of clean coal-derived fuels on the energy 
     security of the United States;
       (ii) the expected annual rate of future production of clean 
     coal-derived fuels; and
       (iii) the impact of the use of clean coal-derived fuels on 
     other factors, including job creation, rural economic 
     development, and the environment.
       (C) Minimum applicable volume.--For the purpose of this 
     subsection, the applicable volume for calendar year 2023 and 
     each calendar year thereafter shall be equal to the product 
     obtained by multiplying--
       (i) the number of gallons of covered fuel that the 
     President estimates will be sold or introduced into commerce 
     in the calendar year; and
       (ii) the ratio that--

       (I) 6,000,000,000 gallons of clean coal-derived fuel; bears 
     to
       (II) the number of gallons of covered fuel sold or 
     introduced into commerce in calendar year 2022.

       (b) Applicable Percentages.--
       (1) Provision of estimate of volumes of certain fuel 
     sales.--Not later than October 31 of each of calendar years 
     2015 through 2021, the Administrator of the Energy 
     Information Administration shall provide to the President an 
     estimate, with respect to the following calendar year, of the 
     volumes of covered fuel projected to be sold or introduced 
     into commerce in the United States.
       (2) Determination of applicable percentages.--
       (A) In general.--Not later than November 30 of each of 
     calendar years 2015 through 2022, based on the estimate 
     provided under paragraph (1), the President shall determine 
     and publish in the Federal Register, with respect to the 
     following calendar year, the clean coal-derived fuel 
     obligation that ensures that the requirements of subsection 
     (a) are met.
       (B) Required elements.--The clean coal-derived fuel 
     obligation determined for a calendar year under subparagraph 
     (A) shall--
       (i) be applicable to refineries, blenders, and importers, 
     as appropriate;
       (ii) be expressed in terms of a volume percentage of 
     covered fuel sold or introduced into commerce in the United 
     States; and
       (iii) subject to paragraph (3)(A), consist of a single 
     applicable percentage that applies to all categories of 
     persons specified in clause (i).
       (3) Adjustments.--In determining the applicable percentage 
     for a calendar year, the President shall make adjustments--
       (A) to prevent the imposition of redundant obligations on 
     any person specified in paragraph (2)(B)(i); and
       (B) to account for the use of clean coal-derived fuel 
     during the previous calendar year by small refineries that 
     are exempt under subsection (f).
       (c) Volume Conversion Factors for Clean Coal-Derived Fuels 
     Based on Energy Content.--
       (1) In general.--For the purpose of subsection (a), the 
     President shall assign values to specific types of clean 
     coal-derived fuel for the purpose of satisfying the fuel 
     volume requirements of subsection (a)(4) in accordance with 
     this subsection.
       (2) Energy content relative to diesel fuel.--For clean 
     coal-derived fuels, 1 gallon of the clean coal-derived fuel 
     shall be considered to be the equivalent of 1 gallon of 
     diesel fuel multiplied by the ratio that--
       (A) the number of British thermal units of energy produced 
     by the combustion of 1 gallon of the clean coal-derived fuel 
     (as measured under conditions determined by the Secretary); 
     bears to
       (B) the number of British thermal units of energy produced 
     by the combustion of 1 gallon of diesel fuel (as measured 
     under conditions determined by the Secretary to be comparable 
     to conditions described in subparagraph (A)).
       (d) Credit Program.--
       (1) In general.--The President, in consultation with the 
     Secretary and the clean coal-derived fuel requirement of this 
     section.
       (2) Market transparency.--In carrying out the credit 
     program under this subsection, the President shall facilitate 
     price transparency in markets for the sale and trade of 
     credits, with due regard for the public interest, the 
     integrity of those markets, fair competition, and the 
     protection of consumers.
       (e) Waivers.--
       (1) In general.--The President, in consultation with the 
     Secretary and the Administrator of the Environmental 
     Protection Agency, may waive the requirements of subsection 
     (a) in whole or in part on petition by 1 or more States by 
     reducing the national quantity of clean coal-derived fuel 
     required under subsection (a), based on a determination by 
     the President (after public notice and opportunity for 
     comment), that--
       (A) implementation of the requirement would severely harm 
     the economy or environment of a State, a region, or the 
     United States; or
       (B) extreme and unusual circumstances exist that prevent 
     distribution of an adequate supply of domestically-produced 
     clean coal-derived fuel to consumers in the United States.
       (2) Petitions for waivers.--The President, in consultation 
     with the Secretary and the Administrator of the Environmental 
     Protection Agency, shall approve or disapprove a State 
     petition for a waiver of the requirements of subsection (a) 
     within 90 days after the date on which the petition is 
     received by the President.
       (3) Termination of waivers.--A waiver granted under 
     paragraph (1) shall terminate after 1 year, but may be 
     renewed by the President after consultation with the 
     Secretary and the Administrator of the Environmental 
     Protection Agency.
       (f) Small Refineries.--
       (1) Temporary exemption.--
       (A) In general.--The requirements of subsection (a) shall 
     not apply to small refineries until calendar year 2018.
       (B) Extension of exemption.--
       (i) Study by secretary.--Not later than December 31, 2013, 
     the Secretary shall submit to the President and Congress a 
     report describing the results of a study to determine whether 
     compliance with the requirements of subsection (a) would 
     impose a disproportionate economic hardship on small 
     refineries.
       (ii) Extension of exemption.--In the case of a small 
     refinery that the Secretary determines under clause (i) would 
     be subject to a disproportionate economic hardship if 
     required to comply with subsection (a), the President shall 
     extend the exemption under subparagraph (A) for the small 
     refinery for a period of not less than 2 additional years.
       (2) Petitions based on disproportionate economic 
     hardship.--
       (A) Extension of exemption.--A small refinery may at any 
     time petition the President for an extension of the exemption 
     under paragraph (1) for the reason of disproportionate 
     economic hardship.
       (B) Evaluation of petitions.--In evaluating a petition 
     under subparagraph (A), the President, in consultation with 
     the Secretary, shall consider the findings of the study under 
     paragraph (1)(B) and other economic factors.
       (C) Deadline for action on petitions.--The President shall 
     act on any petition submitted by a small refinery for a 
     hardship exemption not later than 90 days after the date of 
     receipt of the petition.
       (3) Opt-in for small refineries.--A small refinery shall be 
     subject to the requirements of subsection (a) if the small 
     refinery notifies the President that the small refinery 
     waives the exemption under paragraph (1).
       (g) Penalties and Enforcement.--
       (1) Civil penalties.--
       (A) In general.--Any person that violates a regulation 
     promulgated under subsection (a), or that fails to furnish 
     any information required under such a regulation, shall be 
     liable to the United States for a civil penalty of not more 
     than the total of--
       (i) $25,000 for each day of the violation; and
       (ii) the amount of economic benefit or savings received by 
     the person resulting from the violation, as determined by the 
     President.
       (B) Collection.--Civil penalties under subparagraph (A) 
     shall be assessed by, and collected in a civil action brought 
     by, the Secretary or such other officer of the United States 
     as is designated by the President.
       (2) Injunctive authority.--
       (A) In general.--The district courts of the United States 
     shall have jurisdiction to--
       (i) restrain a violation of a regulation promulgated under 
     subsection (a);
       (ii) award other appropriate relief; and
       (iii) compel the furnishing of information required under 
     the regulation.
       (B) Actions.--An action to restrain such violations and 
     compel such actions shall be brought by and in the name of 
     the United States.
       (C) Subpoenas.--In the action, a subpoena for a witness who 
     is required to attend a district court in any district may 
     apply in any other district.
       (h) Effective Date.--Except as otherwise specifically 
     provided in this section, this section takes effect on 
     January 1, 2016.

                         Subtitle C--Oil Shale

     SEC. 221. REMOVAL OF PROHIBITION ON FINAL REGULATIONS FOR 
                   COMMERCIAL LEASING PROGRAM FOR OIL SHALE 
                   RESOURCES ON PUBLIC LAND.

       Section 433 of the Department of the Interior, Environment, 
     and Related Agencies Appropriations Act, 2008 (Public Law 
     110-161; 121 Stat. 2152) is repealed.

Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

     SEC. 231. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

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

     SEC. 232. MULTIYEAR CONTRACT AUTHORITY FOR THE DEPARTMENT OF 
                   DEFENSE FOR THE PROCUREMENT OF SYNTHETIC FUELS.

       (a) Multiyear Contracts for the Procurement of Synthetic 
     Fuels Authorized.--
       (1) In general.--Chapter 141 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2410r. Multiyear contract authority: purchase of 
       synthetic fuels

       ``(a) Multiyear Contracts Authorized.--The head of an 
     agency may enter into contracts for a period not to exceed 25 
     years for the purchase of synthetic fuels.
       ``(b) Definitions.--In this section:

[[Page 7978]]

       ``(1) The term `head of an agency' has the meaning given 
     that term in section 2302(1) of this title.
       ``(2) The term `synthetic fuel' means any liquid, gas, or 
     combination thereof that--
       ``(A) can be used as a substitute for petroleum or natural 
     gas (or any derivative thereof, including chemical 
     feedstocks); and
       ``(B) is produced by chemical or physical transformation of 
     domestic sources of energy.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 141 of such title is amended by adding 
     at the end the following new item:

``2410r. Multiyear contract authority: purchase of synthetic fuels.''.
       (b) Regulations.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     prescribe regulations providing that the head of an agency 
     may initiate a multiyear contract as authorized by section 
     2410r of title 10, United States Code (as added by subsection 
     (a)), only if the head of the agency has determined in 
     writing that--
       (1) there is a reasonable expectation that throughout the 
     contemplated contract period the head of the agency will 
     request funding for the contract at the level required to 
     avoid contract cancellation;
       (2) the technical risks associated with the technologies 
     for the production of synthetic fuel under the contract are 
     not excessive; and
       (3) the contract will contain appropriate pricing 
     mechanisms to minimize risk to the Government from 
     significant changes in market prices for energy.
       (c) Limitation on Use of Authority.--No contract may be 
     entered into under the authority in section 2410r of title 
     10, United States Code (as so added), until the regulations 
     required by subsection (b) are prescribed.
                                 ______
                                 
  SA 4721. Mr. ALLARD proposed an amendment to amendment SA 4720 
proposed by Mr. McConnell to the bill S. 2284, to amend the National 
Flood Insurance Act of 1968, to restore the financial solvency to the 
flood insurance fund, and for other purposes; as follows:

       On Page 1, strike all after ``TITLE I--TRADITIONAL 
     RESOURCES'' and insert:

                  Subtitle A--Outer Continental Shelf

Sec. 101. Publication of projected State lines on outer Continental 
              Shelf.
Sec. 102. Production of oil and natural gas in new producing areas.
Sec. 103. Conforming amendment.

       Subtitle B--Leasing Program for Land Within Coastal Plain

Sec. 111. Definitions.
Sec. 112. Leasing program for land within the Coastal Plain.
Sec. 113. Lease sales.
Sec. 114. Grant of leases by the Secretary.
Sec. 115. Lease terms and conditions.
Sec. 116. Coastal plain environmental protection.
Sec. 117. Expedited judicial review.
Sec. 118. Rights-of-way and easements across Coastal Plain.
Sec. 119. Conveyance.
Sec. 120. Local government impact aid and community service assistance.
Sec. 121. Prohibition on exports.
Sec. 122. Allocation of revenues.

                         Subtitle C--Permitting

Sec. 131. Refinery permitting process.
Sec. 132. Removal of additional fee for new applications for permits to 
              drill.

                Subtitle D--Strategic Petroleum Reserve

Sec. 141. Suspension of petroleum acquisition for Strategic Petroleum 
              Reserve.

                Subtitle E--Restoration of State Revenue

Sec. 151. Restoration of State revenue.

                    TITLE II--ALTERNATIVE RESOURCES

       Subtitle A--Renewable Fuel and Advanced Energy Technology

Sec. 201. Definition of renewable biomass.
Sec. 202. Advanced battery manufacturing incentive program.
Sec. 203. Biofuels infrastructure and additives research and 
              development.
Sec. 204. Study of increased consumption of ethanol-blended gasoline 
              with higher levels of ethanol.
Sec. 205. Study of diesel vehicle attributes.

        Subtitle B--Clean Coal-Derived Fuels for Energy Security

Sec. 211. Short title.
Sec. 212. Definitions.
Sec. 213. Clean coal-derived fuel program.

                         Subtitle C--Oil Shale

Sec. 221. Removal of prohibition on final regulations for commercial 
              leasing program for oil shale resources on public land.

Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

Sec. 231. Procurement and acquisition of alternative fuels.
Sec. 232. Multiyear contract authority for the Department of Defense 
              for the procurement of synthetic fuels.

     SEC. 2. DEFINITION OF SECRETARY.

       In this Act, the term ``Secretary'' means the Secretary of 
     Energy.

                     TITLE I--TRADITIONAL RESOURCES

                  Subtitle A--Outer Continental Shelf

     SEC. 101. PUBLICATION OF PROJECTED STATE LINES ON OUTER 
                   CONTINENTAL SHELF.

       Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1333(a)(2)(A)) is amended--
       (1) by designating the first, second, and third sentences 
     as clause (i), (iii), and (iv), respectively;
       (2) in clause (i) (as so designated), by inserting before 
     the period at the end the following: ``not later than 90 days 
     after the date of enactment of the Domestic Energy Production 
     Act of 2008''; and
       (3) by inserting after clause (i) (as so designated) the 
     following:
       ``(ii)(I) The projected lines shall also be used for the 
     purpose of preleasing and leasing activities conducted in new 
     producing areas under section 32.
       ``(II) This clause shall not affect any property right or 
     title to Federal submerged land on the outer Continental 
     Shelf.
       ``(III) In carrying out this clause, the President shall 
     consider the offshore administrative boundaries beyond State 
     submerged lands for planning, coordination, and 
     administrative purposes of the Department of the Interior, 
     but may establish different boundaries.''.

     SEC. 102. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING 
                   AREAS.

       The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING 
                   AREAS.

       ``(a) Definitions.--In this section:
       ``(1) Coastal political subdivision.--The term `coastal 
     political subdivision' means a political subdivision of a new 
     producing State any part of which political subdivision is--
       ``(A) within the coastal zone (as defined in section 304 of 
     the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of 
     the new producing State as of the date of enactment of this 
     section; and
       ``(B) not more than 200 nautical miles from the geographic 
     center of any leased tract.
       ``(2) Moratorium area.--
       ``(A) In general.--The term `moratorium area' means an area 
     covered by sections 104 through 105 of the Department of the 
     Interior, Environment, and Related Agencies Appropriations 
     Act, 2008 (Public Law 110-161; 121 Stat. 2118) (as in effect 
     on the day before the date of enactment of this section).
       ``(B) Exclusion.--The term `moratorium area' does not 
     include an area located in the Gulf of Mexico.
       ``(3) New producing area.--The term `new producing area' 
     means any moratorium area within the offshore administrative 
     boundaries beyond the submerged land of a State that is 
     located greater than 50 miles from the coastline of the 
     State.
       ``(4) New producing state.--The term `new producing State' 
     means a State that has, within the offshore administrative 
     boundaries beyond the submerged land of the State, a new 
     producing area available for oil and gas leasing under 
     subsection (b).
       ``(5) Offshore administrative boundaries.--The term 
     `offshore administrative boundaries' means the administrative 
     boundaries established by the Secretary beyond State 
     submerged land for planning, coordination, and administrative 
     purposes of the Department of the Interior and published in 
     the Federal Register on January 3, 2006 (71 Fed. Reg. 127).
       ``(6) Qualified outer continental shelf revenues.--
       ``(A) In general.--The term `qualified outer Continental 
     Shelf revenues' means all rentals, royalties, bonus bids, and 
     other sums due and payable to the United States from leases 
     entered into on or after the date of enactment of this 
     section for new producing areas.
       ``(B) Exclusions.--The term `qualified outer Continental 
     Shelf revenues' does not include--
       ``(i) revenues from a bond or other surety forfeited for 
     obligations other than the collection of royalties;
       ``(ii) revenues from civil penalties;
       ``(iii) royalties taken by the Secretary in-kind and not 
     sold;
       ``(iv) revenues generated from leases subject to section 
     8(g); or
       ``(v) any revenues considered qualified outer Continental 
     Shelf revenues under section 102 of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432).
       ``(b) Petition for Leasing New Producing Areas.--
       ``(1) In general.--Beginning on the date on which the 
     President delineates projected State lines under section 
     4(a)(2)(A)(ii), the Governor of a State with a new producing 
     area within the offshore administrative boundaries beyond the 
     submerged land of the State may submit to the Secretary a 
     petition requesting that the Secretary make the new producing 
     area available for oil and gas leasing.
       ``(2) Action by secretary.--Notwithstanding section 18, as 
     soon as practicable after receipt of a petition under 
     paragraph

[[Page 7979]]

     (1), the Secretary shall approve the petition if the 
     Secretary determines that leasing the new producing area 
     would not create an unreasonable risk of harm to the marine, 
     human, or coastal environment.
       ``(c) Disposition of Qualified Outer Continental Shelf 
     Revenues From New Producing Areas.--
       ``(1) In general.--Notwithstanding section 9 and subject to 
     the other provisions of this subsection, for each applicable 
     fiscal year, the Secretary of the Treasury shall deposit--
       ``(A) 50 percent of qualified outer Continental Shelf 
     revenues in the general fund of the Treasury; and
       ``(B) 50 percent of qualified outer Continental Shelf 
     revenues in a special account in the Treasury from which the 
     Secretary shall disburse--
       ``(i) 75 percent to new producing States in accordance with 
     paragraph (2); and
       ``(ii) 25 percent to provide financial assistance to States 
     in accordance with section 6 of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. 460l -8), which 
     shall be considered income to the Land and Water Conservation 
     Fund for purposes of section 2 of that Act (16 U.S.C. 460l-
     5).
       ``(2) Allocation to new producing states and coastal 
     political subdivisions.--
       ``(A) Allocation to new producing states.--Effective for 
     fiscal year 2008 and each fiscal year thereafter, the amount 
     made available under paragraph (1)(B)(i) shall be allocated 
     to each new producing State in amounts (based on a formula 
     established by the Secretary by regulation) proportional to 
     the amount of qualified outer Continental Shelf revenues 
     generated in the new producing area offshore each State.
       ``(B) Payments to coastal political subdivisions.--
       ``(i) In general.--The Secretary shall pay 20 percent of 
     the allocable share of each new producing State, as 
     determined under subparagraph (A), to the coastal political 
     subdivisions of the new producing State.
       ``(ii) Allocation.--The amount paid by the Secretary to 
     coastal political subdivisions shall be allocated to each 
     coastal political subdivision in accordance with 
     subparagraphs (B) and (C) of section 31(b)(4).
       ``(3) Minimum allocation.--The amount allocated to a new 
     producing State for each fiscal year under paragraph (2) 
     shall be at least 5 percent of the amounts available under 
     for the fiscal year under paragraph (1)(B)(i).
       ``(4) Timing.--The amounts required to be deposited under 
     subparagraph (B) of paragraph (1) for the applicable fiscal 
     year shall be made available in accordance with that 
     subparagraph during the fiscal year immediately following the 
     applicable fiscal year.
       ``(5) Authorized uses.--
       ``(A) In general.--Subject to subparagraph (B), each new 
     producing State and coastal political subdivision shall use 
     all amounts received under paragraph (2) in accordance with 
     all applicable Federal and State laws, only for 1 or more of 
     the following purposes:
       ``(i) Projects and activities for the purposes of coastal 
     protection, including conservation, coastal restoration, 
     hurricane protection, and infrastructure directly affected by 
     coastal wetland losses.
       ``(ii) Mitigation of damage to fish, wildlife, or natural 
     resources.
       ``(iii) Implementation of a federally-approved marine, 
     coastal, or comprehensive conservation management plan.
       ``(iv) Mitigation of the impact of outer Continental Shelf 
     activities through the funding of onshore infrastructure 
     projects.
       ``(v) Planning assistance and the administrative costs of 
     complying with this section.
       ``(B) Limitation.--Not more than 3 percent of amounts 
     received by a new producing State or coastal political 
     subdivision under paragraph (2) may be used for the purposes 
     described in subparagraph (A)(v).
       ``(6) Administration.--Amounts made available under 
     paragraph (1)(B) shall--
       ``(A) be made available, without further appropriation, in 
     accordance with this subsection;
       ``(B) remain available until expended; and
       ``(C) be in addition to any amounts appropriated under--
       ``(i) other provisions of this Act;
       ``(ii) the Land and Water Conservation Fund Act of 1965 (16 
     U.S.C. 460l-4 et seq.); or
       ``(iii) any other provision of law.
       ``(d) Disposition of Qualified Outer Continental Shelf 
     Revenues From Other Areas.--Notwithstanding section 9, for 
     each applicable fiscal year, the terms and conditions of 
     subsection (c) shall apply to the disposition of qualified 
     outer Continental Shelf revenues that--
       ``(1) are derived from oil or gas leasing in an area that 
     is not included in the current 5-year plan of the Secretary 
     for oil or gas leasing; and
       ``(2) are not assumed in the budget of the United States 
     Government submitted by the President under section 1105 of 
     title 31, United States Code.''.

     SEC. 103. CONFORMING AMENDMENT.

       Sections 104 through 105 of the Department of the Interior, 
     Environment, and Related Agencies Appropriations Act, 2008 
     (Public Law 110-161; 121 Stat. 2118) are repealed.

       Subtitle B--Leasing Program for Land Within Coastal Plain

     SEC. 111. DEFINITIONS.

       In this subtitle:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as the ``1002 Coastal Plain Area'' on the 
     map.
       (2) Federal agreement.--The term ``Federal Agreement'' 
     means the Federal Agreement and Grant Right-of-Way for the 
     Trans-Alaska Pipeline issued on January 23, 1974, in 
     accordance with section 28 of the Mineral Leasing Act (30 
     U.S.C. 185) and the Trans-Alaska Pipeline Authorization Act 
     (43 U.S.C. 1651 et seq.).
       (3) Final statement.--The term ``Final Statement'' means 
     the final legislative environmental impact statement on the 
     Coastal Plain, dated April 1987, and prepared pursuant to 
     section 1002 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3142) and section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).
       (4) Map.--The term ``map'' means the map entitled ``Arctic 
     National Wildlife Refuge'', dated September 2005, and 
     prepared by the United States Geological Survey.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior (or the designee of the Secretary), acting 
     through the Director of the Bureau of Land Management in 
     consultation with the Director of the United States Fish and 
     Wildlife Service and in coordination with a State coordinator 
     appointed by the Governor of the State of Alaska.

     SEC. 112. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

       (a) In General.--
       (1) Authorization.--Congress authorizes the exploration, 
     leasing, development, production, and economically feasible 
     and prudent transportation of oil and gas in and from the 
     Coastal Plain.
       (2) Actions.--The Secretary shall take such actions as are 
     necessary--
       (A) to establish and implement, in accordance with this 
     subtitle, a competitive oil and gas leasing program that will 
     result in an environmentally sound program for the 
     exploration, development, and production of the oil and gas 
     resources of the Coastal Plain while taking into 
     consideration the interests and concerns of residents of the 
     Coastal Plain, which is the homeland of the Kaktovikmiut 
     Inupiat; and
       (B) to administer this subtitle through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (i) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, subsistence resources, and the environment; and
       (ii) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production to all exploration, development, 
     and production operations under this subtitle in a manner 
     that ensures the receipt of fair market value by the public 
     for the mineral resources to be leased.
       (b) Repeal.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents contained 
     in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
     striking the item relating to section 1003.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
     seq.)--
       (A) the oil and gas pre-leasing and leasing program, and 
     activities authorized by this section in the Coastal Plain, 
     shall be considered to be compatible with the purposes for 
     which the Arctic National Wildlife Refuge was established; 
     and
       (B) no further findings or decisions shall be required to 
     implement that program and those activities.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The Final 
     Statement shall be considered to satisfy the requirements 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) that apply with respect to pre-leasing 
     activities, including exploration programs and actions 
     authorized to be taken by the Secretary to develop and 
     promulgate the regulations for the establishment of a leasing 
     program authorized by this subtitle before the conduct of the 
     first lease sale.
       (3) Compliance with nepa for other actions.--
       (A) In general.--Before conducting the first lease sale 
     under this subtitle, the Secretary shall prepare an 
     environmental impact statement in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with respect to the actions authorized by this subtitle 
     that are not referred to in paragraph (2).
       (B) Identification and analysis.--Notwithstanding any other 
     provision of law, in carrying out this paragraph, the 
     Secretary shall not be required--
       (i) to identify nonleasing alternative courses of action; 
     or
       (ii) to analyze the environmental effects of those courses 
     of action.

[[Page 7980]]

       (C) Identification of preferred action.--Not later than 18 
     months after the date of enactment of this Act, the Secretary 
     shall--
       (i) identify only a preferred action and a single leasing 
     alternative for the first lease sale authorized under this 
     subtitle; and
       (ii) analyze the environmental effects and potential 
     mitigation measures for those 2 alternatives.
       (D) Public comments.--In carrying out this paragraph, the 
     Secretary shall consider only public comments that are filed 
     not later than 20 days after the date of publication of a 
     draft environmental impact statement.
       (E) Effect of compliance.--Notwithstanding any other 
     provision of law, compliance with this paragraph shall be 
     considered to satisfy all requirements for the analysis and 
     consideration of the environmental effects of proposed 
     leasing under this subtitle.
       (d) Relationship to State and Local Authority.--Nothing in 
     this subtitle expands or limits any State or local regulatory 
     authority.
       (e) Special Areas.--
       (1) Designation.--
       (A) In general.--The Secretary, after consultation with the 
     State of Alaska, the North Slope Borough, Alaska, and the 
     City of Kaktovik, Alaska, may designate not more than 45,000 
     acres of the Coastal Plain as a special area if the Secretary 
     determines that the special area would be of such unique 
     character and interest as to require special management and 
     regulatory protection.
       (B) Sadlerochit spring area.--The Secretary shall designate 
     as a special area in accordance with subparagraph (A) the 
     Sadlerochit Spring area, comprising approximately 4,000 acres 
     as depicted on the map.
       (2) Management.--The Secretary shall manage each special 
     area designated under this subsection in a manner that--
       (A) respects and protects the Native people of the area; 
     and
       (B) preserves the unique and diverse character of the area, 
     including fish, wildlife, subsistence resources, and cultural 
     values of the area.
       (3) Exclusion from leasing or surface occupancy.--
       (A) In general.--The Secretary may exclude any special area 
     designated under this subsection from leasing.
       (B) No surface occupancy.--If the Secretary leases all or a 
     portion of a special area for the purposes of oil and gas 
     exploration, development, production, and related activities, 
     there shall be no surface occupancy of the land comprising 
     the special area.
       (4) Directional drilling.--Notwithstanding any other 
     provision of this subsection, the Secretary may lease all or 
     a portion of a special area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the special area.
       (f) Limitation on Closed Areas.--The Secretary may not 
     close land within the Coastal Plain to oil and gas leasing or 
     to exploration, development, or production except in 
     accordance with this subtitle.
       (g) Regulations.--
       (1) In general.--Not later than 15 months after the date of 
     enactment of this Act, in consultation with appropriate 
     agencies of the State of Alaska, the North Slope Borough, 
     Alaska, and the City of Kaktovik, Alaska, the Secretary shall 
     issue such regulations as are necessary to carry out this 
     subtitle, including rules and regulations relating to 
     protection of the fish and wildlife, fish and wildlife 
     habitat, and subsistence resources of the Coastal Plain.
       (2) Revision of regulations.--The Secretary may 
     periodically review and, as appropriate, revise the rules and 
     regulations issued under paragraph (1) to reflect any 
     significant scientific or engineering data that come to the 
     attention of the Secretary.

     SEC. 113. LEASE SALES.

       (a) In General.--Land may be leased pursuant to this 
     subtitle to any person qualified to obtain a lease for 
     deposits of oil and gas under the Mineral Leasing Act (30 
     U.S.C. 181 et seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after that nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this 
     subtitle shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--For the first lease 
     sale under this subtitle, the Secretary shall offer for lease 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons, taking into 
     consideration nominations received pursuant to subsection 
     (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) not later than 22 months after the date of enactment of 
     this Act, conduct the first lease sale under this subtitle;
       (2) not later than September 30, 2012, conduct a second 
     lease sale under this subtitle; and
       (3) conduct additional sales at appropriate intervals if 
     sufficient interest in exploration or development exists to 
     warrant the conduct of the additional sales.

     SEC. 114. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--Upon payment by a lessee of such bonus as 
     may be accepted by the Secretary, the Secretary may grant to 
     the highest responsible qualified bidder in a lease sale 
     conducted pursuant to section 113 a lease for any land on the 
     Coastal Plain.
       (b) Subsequent Transfers.--
       (1) In general.--No lease issued under this subtitle may be 
     sold, exchanged, assigned, sublet, or otherwise transferred 
     except with the approval of the Secretary.
       (2) Condition for approval.--Before granting any approval 
     described in paragraph (1), the Secretary shall consult with 
     and give due consideration to the opinion of the Attorney 
     General.

     SEC. 115. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this subtitle shall--
       (1) provide for the payment of a royalty of not less than 
     16\1/2\ percent of the amount or value of the production 
     removed or sold from the lease, as determined by the 
     Secretary in accordance with regulations applicable to other 
     Federal oil and gas leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, such portions of the Coastal Plain to exploratory 
     drilling activities as are necessary to protect caribou 
     calving areas and other species of fish and wildlife;
       (3) require that each lessee of land within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of land within the Coastal Plain and any other 
     Federal land that is adversely affected in connection with 
     exploration, development, production, or transportation 
     activities within the Coastal Plain conducted by the lessee 
     or by any of the subcontractors or agents of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, that reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for land 
     required to be reclaimed under this subtitle shall be, to the 
     maximum extent practicable--
       (A) a condition capable of supporting the uses that the 
     land was capable of supporting prior to any exploration, 
     development, or production activities; or
       (B) upon application by the lessee, to a higher or better 
     standard, as approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, fish and wildlife habitat, subsistence 
     resources, and the environment as required under section 
     112(a)(2);
       (7) provide that each lessee, and each agent and contractor 
     of a lessee, use their best efforts to provide a fair share 
     of employment and contracting for Alaska Natives and Alaska 
     Native Corporations from throughout the State of Alaska, as 
     determined by the level of obligation previously agreed to in 
     the Federal Agreement; and
       (8) contain such other provisions as the Secretary 
     determines to be necessary to ensure compliance with this 
     subtitle and regulations issued under this subtitle.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this subtitle, and in 
     recognizing the proprietary interest of the Federal 
     Government in labor stability and in the ability of 
     construction labor and management to meet the particular 
     needs and conditions of projects to be developed under the 
     leases issued pursuant to this subtitle (including the 
     special concerns of the parties to those leases), shall 
     require that each lessee, and each agent and contractor of a 
     lessee, under this subtitle negotiate to obtain a project 
     labor agreement for the employment of laborers and mechanics 
     on production, maintenance, and construction under the lease.

     SEC. 116. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard to Govern 
     Authorized Coastal Plain Activities.--In accordance with 
     section 112, the Secretary shall administer this subtitle 
     through regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, or other provisions that--
       (1) ensure, to the maximum extent practicable, that oil and 
     gas exploration, development, and production activities on 
     the Coastal Plain will result in no significant adverse 
     effect on fish and wildlife, fish and wildlife habitat, and 
     the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum surface acreage covered in 
     connection with the leasing program by production and support 
     facilities, including airstrips and any areas covered by 
     gravel berms or piers for support of pipelines, does not 
     exceed 2,000 acres on the Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall require, with respect to any proposed drilling and 
     related activities on the Coastal Plain, that--
       (1) a site-specific environmental analysis be made of the 
     probable effects, if any, that

[[Page 7981]]

     the drilling or related activities will have on fish and 
     wildlife, fish and wildlife habitat, subsistence resources, 
     subsistence uses, and the environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the maximum extent practicable) any 
     significant adverse effect identified under paragraph (1); 
     and
       (3) the development of the plan occur after consultation 
     with--
       (A) each agency having jurisdiction over matters mitigated 
     by the plan;
       (B) the State of Alaska;
       (C) North Slope Borough, Alaska; and
       (D) the City of Kaktovik, Alaska.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this subtitle, 
     the Secretary shall prepare and issue regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     or other measures designed to ensure, to the maximum extent 
     practicable, that the activities carried out on the Coastal 
     Plain under this subtitle are conducted in a manner 
     consistent with the purposes and environmental requirements 
     of this subtitle.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this subtitle 
     shall require--
       (1) compliance with all applicable provisions of Federal 
     and State environmental law (including regulations);
       (2) implementation of and compliance with--
       (A) standards that are at least as effective as the safety 
     and environmental mitigation measures, as described in items 
     1 through 29 on pages 167 through 169 of the Final Statement, 
     on the Coastal Plain;
       (B) seasonal limitations on exploration, development, and 
     related activities, as necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration;
       (C) design safety and construction standards for all 
     pipelines and any access and service roads that minimize, to 
     the maximum extent practicable, adverse effects on--
       (i) the passage of migratory species (such as caribou); and
       (ii) the flow of surface water by requiring the use of 
     culverts, bridges, or other structural devices;
       (D) prohibitions on general public access to, and use of, 
     all pipeline access and service roads;
       (E) stringent reclamation and rehabilitation requirements 
     in accordance with this subtitle for the removal from the 
     Coastal Plain of all oil and gas development and production 
     facilities, structures, and equipment on completion of oil 
     and gas production operations, except in a case in which the 
     Secretary determines that those facilities, structures, or 
     equipment--
       (i) would assist in the management of the Arctic National 
     Wildlife Refuge; and
       (ii) are donated to the United States for that purpose;
       (F) appropriate prohibitions or restrictions on--
       (i) access by all modes of transportation;
       (ii) sand and gravel extraction; and
       (iii) use of explosives;
       (G) reasonable stipulations for protection of cultural and 
     archaeological resources;
       (H) measures to protect groundwater and surface water, 
     including--
       (i) avoidance, to the maximum extent practicable, of 
     springs, streams, and river systems;
       (ii) the protection of natural surface drainage patterns 
     and wetland and riparian habitats; and
       (iii) the regulation of methods or techniques for 
     developing or transporting adequate supplies of water for 
     exploratory drilling; and
       (I) research, monitoring, and reporting requirements;
       (3) that exploration activities (except surface geological 
     studies) be limited to the period between approximately 
     November 1 and May 1 of each year and be supported, if 
     necessary, by ice roads, winter trails with adequate snow 
     cover, ice pads, ice airstrips, and air transport methods 
     (except that those exploration activities may be permitted at 
     other times if the Secretary determines that the exploration 
     will have no significant adverse effect on fish and wildlife, 
     fish and wildlife habitat, subsistence resources, and the 
     environment of the Coastal Plain);
       (4) consolidation of facility siting;
       (5) avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife;
       (6) treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including, in accordance with 
     applicable Federal and State environmental laws (including 
     regulations)--
       (A) preparation of an annual waste management report;
       (B) development and implementation of a hazardous materials 
     tracking system; and
       (C) prohibition on the use of chlorinated solvents;
       (7) fuel storage and oil spill contingency planning;
       (8) conduct of periodic field crew environmental briefings;
       (9) avoidance of significant adverse effects on subsistence 
     hunting, fishing, and trapping;
       (10) compliance with applicable air and water quality 
     standards;
       (11) appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited; and
       (12) development and implementation of such other 
     protective environmental requirements, restrictions, terms, 
     or conditions as the Secretary, after consultation with the 
     State of Alaska, North Slope Borough, Alaska, and the City of 
     Kaktovik, Alaska, determines to be necessary.
       (e) Considerations.--In preparing and issuing regulations, 
     lease terms, conditions, restrictions, prohibitions, or 
     stipulations under this section, the Secretary shall take 
     into consideration--
       (1) the stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement;
       (2) the environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 through 37.33 of title 50, Code of Federal 
     Regulations (or successor regulations); and
       (3) the land use stipulations for exploratory drilling on 
     the KIC-ASRC private land described in Appendix 2 of the 
     agreement between Arctic Slope Regional Corporation and the 
     United States dated August 9, 1983.
       (f) Facility Consolidation Planning.--
       (1) In general.--After providing for public notice and 
     comment, the Secretary shall prepare and periodically update 
     a plan to govern, guide, and direct the siting and 
     construction of facilities for the exploration, development, 
     production, and transportation of oil and gas resources from 
     the Coastal Plain.
       (2) Objectives.--The objectives of the plan shall be--
       (A) the avoidance of unnecessary duplication of facilities 
     and activities;
       (B) the encouragement of consolidation of common facilities 
     and activities;
       (C) the location or confinement of facilities and 
     activities to areas that will minimize impact on fish and 
     wildlife, fish and wildlife habitat, subsistence resources, 
     and the environment;
       (D) the use of existing facilities, to the maximum extent 
     practicable; and
       (E) the enhancement of compatibility between wildlife 
     values and development activities.
       (g) Access to Public Land.--The Secretary shall--
       (1) manage public land in the Coastal Plain in accordance 
     with subsections (a) and (b) of section 811 of the Alaska 
     National Interest Lands Conservation Act (16 U.S.C. 3121); 
     and
       (2) ensure that local residents shall have reasonable 
     access to public land in the Coastal Plain for traditional 
     uses.

     SEC. 117. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaints.--
       (1) Deadline.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed--
       (A) except as provided in subparagraph (B), during the 90-
     day period beginning on the date on which the action being 
     challenged was carried out; or
       (B) in the case of a complaint based solely on grounds 
     arising after the 90-day period described in subparagraph 
     (A), during the 90-day period beginning on the date on which 
     the complainant knew or reasonably should have known about 
     the grounds for the complaint.
       (2) Venue.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed in the United States Court 
     of Appeals for the District of Columbia.
       (3) Scope.--
       (A) In general.--Judicial review of a decision of the 
     Secretary under this subtitle (including an environmental 
     analysis of such a lease sale) shall be--
       (i) limited to a review of whether the decision is in 
     accordance with this subtitle; and
       (ii) based on the administrative record of the decision.
       (B) Presumptions.--Any identification by the Secretary of a 
     preferred course of action relating to a lease sale, and any 
     analysis by the Secretary of environmental effects, under 
     this subtitle shall be presumed to be correct unless proven 
     otherwise by clear and convincing evidence.
       (b) Limitation on Other Review.--Any action of the 
     Secretary that is subject to judicial review under this 
     section shall not be subject to judicial review in any civil 
     or criminal proceeding for enforcement.

     SEC. 118. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

       For purposes of section 1102(4)(A) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), any 
     rights-of-way or easements across the Coastal Plain for the 
     exploration, development, production, or transportation of 
     oil and gas shall be considered to be established incident to 
     the

[[Page 7982]]

     management of the Coastal Plain under this section.

     SEC. 119. CONVEYANCE.

       Notwithstanding section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
     remove any cloud on title to land, and to clarify land 
     ownership patterns in the Coastal Plain, the Secretary 
     shall--
       (1) to the extent necessary to fulfill the entitlement of 
     the Kaktovik Inupiat Corporation under sections 12 and 14 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 
     1613), as determined by the Secretary, convey to that 
     Corporation the surface estate of the land described in 
     paragraph (1) of Public Land Order 6959, in accordance with 
     the terms and conditions of the agreement between the 
     Secretary, the United States Fish and Wildlife Service, the 
     Bureau of Land Management, and the Kaktovik Inupiat 
     Corporation, dated January 22, 1993; and
       (2) convey to the Arctic Slope Regional Corporation the 
     remaining subsurface estate to which that Corporation is 
     entitled under the agreement between that corporation and the 
     United States, dated August 9, 1983.

     SEC. 120. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Establishment of Fund.--
       (1) In general.--As a condition on the receipt of funds 
     under section 122(2), the State of Alaska shall establish in 
     the treasury of the State, and administer in accordance with 
     this section, a fund to be known as the ``Coastal Plain Local 
     Government Impact Aid Assistance Fund'' (referred to in this 
     section as the ``Fund'').
       (2) Deposits.--Subject to paragraph (1), the Secretary of 
     the Treasury shall deposit into the Fund, $35,000,000 each 
     year from the amount available under section 122(2)(A).
       (3) Investment.--The Governor of the State of Alaska 
     (referred to in this section as the ``Governor'') shall 
     invest amounts in the Fund in interest-bearing securities of 
     the United States or the State of Alaska.
       (b) Assistance.--The Governor, in cooperation with the 
     Mayor of the North Slope Borough, shall use amounts in the 
     Fund to provide assistance to North Slope Borough, Alaska, 
     the City of Kaktovik, Alaska, and any other borough, 
     municipal subdivision, village, or other community in the 
     State of Alaska that is directly impacted by exploration for, 
     or the production of, oil or gas on the Coastal Plain under 
     this subtitle, or any Alaska Native Regional Corporation 
     acting on behalf of the villages and communities within its 
     region whose lands lie along the right of way of the Trans 
     Alaska Pipeline System, as determined by the Governor.
       (c) Application.--
       (1) In general.--To receive assistance under subsection 
     (b), a community or Regional Corporation described in that 
     subsection shall submit to the Governor, or to the Mayor of 
     the North Slope Borough, an application in such time, in such 
     manner, and containing such information as the Governor may 
     require.
       (2) Action by north slope borough.--The Mayor of the North 
     Slope Borough shall submit to the Governor each application 
     received under paragraph (1) as soon as practicable after the 
     date on which the application is received.
       (3) Assistance of governor.--The Governor shall assist 
     communities in submitting applications under this subsection, 
     to the maximum extent practicable.
       (d) Use of Funds.--A community or Regional Corporation that 
     receives funds under subsection (b) may use the funds--
       (1) to plan for mitigation, implement a mitigation plan, or 
     maintain a mitigation project to address the potential 
     effects of oil and gas exploration and development on 
     environmental, social, cultural, recreational, and 
     subsistence resources of the community;
       (2) to develop, carry out, and maintain--
       (A) a project to provide new or expanded public facilities; 
     or
       (B) services to address the needs and problems associated 
     with the effects described in paragraph (1), including 
     firefighting, police, water and waste treatment, first 
     responder, and other medical services;
       (3) to compensate residents of the Coastal Plain for 
     significant damage to environmental, social, cultural, 
     recreational, or subsistence resources; and
       (4) in the City of Kaktovik, Alaska--
       (A) to develop a mechanism for providing members of the 
     Kaktovikmiut Inupiat community an opportunity to--
       (i) monitor development on the Coastal Plain; and
       (ii) provide information and recommendations to the 
     Governor based on traditional aboriginal knowledge of the 
     natural resources, flora, fauna, and ecological processes of 
     the Coastal Plain; and
       (B) to establish a local coordination office, to be managed 
     by the Mayor of the North Slope Borough, in coordination with 
     the City of Kaktovik, Alaska--
       (i) to coordinate with and advise developers on local 
     conditions and the history of areas affected by development;
       (ii) to provide to the Committee on Resources of the House 
     of Representatives and the Committee on Energy and Natural 
     Resources of the Senate annual reports on the status of the 
     coordination between developers and communities affected by 
     development;
       (iii) to collect from residents of the Coastal Plain 
     information regarding the impacts of development on fish, 
     wildlife, habitats, subsistence resources, and the 
     environment of the Coastal Plain; and
       (iv) to ensure that the information collected under clause 
     (iii) is submitted to--

       (I) developers; and
       (II) any appropriate Federal agency.

     SEC. 121. PROHIBITION ON EXPORTS.

       An oil or gas lease issued under this subtitle shall 
     prohibit the exportation of oil or gas produced under the 
     lease.

     SEC. 122. ALLOCATION OF REVENUES.

       Notwithstanding the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.) or any other provision of law, of the adjusted bonus, 
     rental, and royalty receipts from Federal oil and gas leasing 
     and operations authorized under this subtitle:
       (1) 50 percent shall be deposited in the general fund of 
     the Treasury.
       (2) The remainder shall be available as follows:
       (A) $35,000,000 shall be deposited by the Secretary of the 
     Treasury into the fund created under section 120(a)(1).
       (B) The remainder shall be disbursed to the State of 
     Alaska.

                         Subtitle C--Permitting

     SEC. 131. REFINERY PERMITTING PROCESS.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (3) Permit.--The term ``permit'' means any permit, license, 
     approval, variance, or other form of authorization that a 
     refiner is required to obtain--
       (A) under any Federal law; or
       (B) from a State or Indian tribal government agency 
     delegated authority by the Federal Government, or authorized 
     under Federal law, to issue permits.
       (4) Refiner.--The term ``refiner'' means a person that--
       (A) owns or operates a refinery; or
       (B) seeks to become an owner or operator of a refinery.
       (5) Refinery.--
       (A) In general.--The term ``refinery'' means--
       (i) a facility at which crude oil is refined into 
     transportation fuel or other petroleum products; and
       (ii) a coal liquification or coal-to-liquid facility at 
     which coal is processed into synthetic crude oil or any other 
     fuel.
       (B) Inclusions.--The term ``refinery'' includes an 
     expansion of a refinery.
       (6) Refinery expansion.--The term ``refinery expansion'' 
     means a physical change in a refinery that results in an 
     increase in the capacity of the refinery.
       (7) Refinery permitting agreement.--The term ``refinery 
     permitting agreement'' means an agreement entered into 
     between the Administrator and a State or Indian tribe under 
     subsection (b).
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (9) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (b) Streamlining of Refinery Permitting Process.--
       (1) In general.--At the request of the Governor of a State 
     or the governing body of an Indian tribe, the Administrator 
     shall enter into a refinery permitting agreement with the 
     State or Indian tribe under which the process for obtaining 
     all permits necessary for the construction and operation of a 
     refinery shall be streamlined using a systematic 
     interdisciplinary multimedia approach as provided in this 
     section.
       (2) Authority of administrator.--Under a refinery 
     permitting agreement--
       (A) the Administrator shall have authority, as applicable 
     and necessary, to--
       (i) accept from a refiner a consolidated application for 
     all permits that the refiner is required to obtain to 
     construct and operate a refinery;
       (ii) in consultation and cooperation with each Federal, 
     State, or Indian tribal government agency that is required to 
     make any determination to authorize the issuance of a permit, 
     establish a schedule under which each agency shall--

       (I) concurrently consider, to the maximum extent 
     practicable, each determination to be made; and
       (II) complete each step in the permitting process; and

       (iii) issue a consolidated permit that combines all permits 
     issued under the schedule established under clause (ii); and
       (B) the Administrator shall provide to State and Indian 
     tribal government agencies--
       (i) financial assistance in such amounts as the agencies 
     reasonably require to hire such additional personnel as are 
     necessary to enable the government agencies to comply with 
     the applicable schedule established under subparagraph 
     (A)(ii); and

[[Page 7983]]

       (ii) technical, legal, and other assistance in complying 
     with the refinery permitting agreement.
       (3) Agreement by the state.--Under a refinery permitting 
     agreement, a State or governing body of an Indian tribe shall 
     agree that--
       (A) the Administrator shall have each of the authorities 
     described in paragraph (2); and
       (B) each State or Indian tribal government agency shall--
       (i) in accordance with State law, make such structural and 
     operational changes in the agencies as are necessary to 
     enable the agencies to carry out consolidated project-wide 
     permit reviews concurrently and in coordination with the 
     Environmental Protection Agency and other Federal agencies; 
     and
       (ii) comply, to the maximum extent practicable, with the 
     applicable schedule established under paragraph (2)(A)(ii).
       (4) Deadlines.--
       (A) New refineries.--In the case of a consolidated permit 
     for the construction of a new refinery, the Administrator and 
     the State or governing body of an Indian tribe shall approve 
     or disapprove the consolidated permit not later than--
       (i) 360 days after the date of the receipt of the 
     administratively complete application for the consolidated 
     permit; or
       (ii) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 90 days 
     after the expiration of the deadline established under clause 
     (i).
       (B) Expansion of existing refineries.--In the case of a 
     consolidated permit for the expansion of an existing 
     refinery, the Administrator and the State or governing body 
     of an Indian tribe shall approve or disapprove the 
     consolidated permit not later than--
       (i) 120 days after the date of the receipt of the 
     administratively complete application for the consolidated 
     permit; or
       (ii) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 30 days 
     after the expiration of the deadline established under clause 
     (i).
       (5) Federal agencies.--Each Federal agency that is required 
     to make any determination to authorize the issuance of a 
     permit shall comply with the applicable schedule established 
     under paragraph (2)(A)(ii).
       (6) Judicial review.--Any civil action for review of any 
     permit determination under a refinery permitting agreement 
     shall be brought exclusively in the United States district 
     court for the district in which the refinery is located or 
     proposed to be located.
       (7) Efficient permit review.--In order to reduce the 
     duplication of procedures, the Administrator shall use State 
     permitting and monitoring procedures to satisfy substantially 
     equivalent Federal requirements under this title.
       (8) Severability.--If 1 or more permits that are required 
     for the construction or operation of a refinery are not 
     approved on or before any deadline established under 
     paragraph (4), the Administrator may issue a consolidated 
     permit that combines all other permits that the refiner is 
     required to obtain other than any permits that are not 
     approved.
       (9) Savings.--Nothing in this subsection affects the 
     operation or implementation of otherwise applicable law 
     regarding permits necessary for the construction and 
     operation of a refinery.
       (10) Consultation with local governments.--Congress 
     encourages the Administrator, States, and tribal governments 
     to consult, to the maximum extent practicable, with local 
     governments in carrying out this subsection.
       (11) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this subsection.
       (12) Effect on local authority.--Nothing in this subsection 
     affects--
       (A) the authority of a local government with respect to the 
     issuance of permits; or
       (B) any requirement or ordinance of a local government 
     (such as a zoning regulation).
       (c) Fischer-Tropsch Fuels.--
       (1) In general.--In cooperation with the Secretary of 
     Energy, the Secretary of Defense, the Administrator of the 
     Federal Aviation Administration, Secretary of Health and 
     Human Services, and Fischer-Tropsch industry representatives, 
     the Administrator shall--
       (A) conduct a research and demonstration program to 
     evaluate the air quality benefits of ultra-clean Fischer-
     Tropsch transportation fuel, including diesel and jet fuel;
       (B) evaluate the use of ultra-clean Fischer-Tropsch 
     transportation fuel as a mechanism for reducing engine 
     exhaust emissions; and
       (C) submit recommendations to Congress on the most 
     effective use and associated benefits of these ultra-clean 
     fuel for reducing public exposure to exhaust emissions.
       (2) Guidance and technical support.--The Administrator 
     shall, to the extent necessary, issue any guidance or 
     technical support documents that would facilitate the 
     effective use and associated benefit of Fischer-Tropsch fuel 
     and blends.
       (3) Requirements.--The program described in paragraph (1) 
     shall consider--
       (A) the use of neat (100 percent) Fischer-Tropsch fuel and 
     blends with conventional crude oil-derived fuel for heavy-
     duty and light-duty diesel engines and the aviation sector; 
     and
       (B) the production costs associated with domestic 
     production of those ultra clean fuel and prices for 
     consumers.
       (4) Reports.--The Administrator shall submit to the 
     Committee on Environment and Public Works and the Committee 
     on Energy and Natural Resources of the Senate and the 
     Committee on Energy and Commerce of the House of 
     Representatives--
       (A) not later than 1 year, an interim report on actions 
     taken to carry out this subsection; and
       (B) not later than 2 years, a final report on actions taken 
     to carry out this subsection.

     SEC. 132. REMOVAL OF ADDITIONAL FEE FOR NEW APPLICATIONS FOR 
                   PERMITS TO DRILL.

       The second undesignated paragraph of the matter under the 
     heading ``management of lands and resources'' under the 
     heading ``Bureau of Land Management'' of title I of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2098) 
     is amended by striking ``to be reduced'' and all that follows 
     through ``each new application,''.

                Subtitle D--Strategic Petroleum Reserve

     SEC. 141. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC 
                   PETROLEUM RESERVE.

       (a) In General.--Except as provided in subsection (b) and 
     notwithstanding any other provision of law, during the 180-
     day period beginning on the date of enactment of this Act--
       (1) the Secretary of the Interior shall suspend acquisition 
     of petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program; and
       (2) the Secretary of Energy shall suspend acquisition of 
     petroleum for the Strategic Petroleum Reserve through any 
     other acquisition method.
       (b) Resumption.--Effective beginning on the day after the 
     end of the period described in subsection (a)--
       (1) the Secretary of the Interior may resume acquisition of 
     petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program; and
       (2) the Secretary of Energy may resume acquisition of 
     petroleum for the Strategic Petroleum Reserve through any 
     other acquisition method.

                Subtitle E--Restoration of State Revenue

     SEC. 151. RESTORATION OF STATE REVENUE.

       The matter under the heading ``administrative provisions'' 
     under the heading ``Minerals Management Service'' of title I 
     of the Department of the Interior, Environment, and Related 
     Agencies Appropriations Act, 2008 (Public Law 110-161; 121 
     Stat. 2109) is amended by striking ``Notwithstanding'' and 
     all that follows through ``Treasury.''.

                    TITLE II--ALTERNATIVE RESOURCES

       Subtitle A--Renewable Fuel and Advanced Energy Technology

     SEC. 201. DEFINITION OF RENEWABLE BIOMASS.

       Section 211(o)(1) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)) is amended by striking subparagraph (I) and 
     inserting the following:
       ``(I) Renewable biomass.--The term `renewable biomass' 
     means--
       ``(i) nonmerchantable materials or precommercial thinnings 
     that--

       ``(I) are byproducts of preventive treatments, such as 
     trees, wood, brush, thinnings, chips, and slash, that are 
     removed--

       ``(aa) to reduce hazardous fuels;
       ``(bb) to reduce or contain disease or insect infestation; 
     or
       ``(cc) to restore forest health;

       ``(II) would not otherwise be used for higher-value 
     products; and
       ``(III) are harvested from National Forest System land or 
     public land (as defined in section 103 of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1702))--

       ``(aa) where permitted by law; and
       ``(bb) in accordance with applicable land management plans 
     and the requirements for old-growth maintenance, restoration, 
     and management direction of paragraphs (2), (3), and (4) of 
     subsection (e) and the requirements for large-tree retention 
     of subsection (f) of section 102 of the Healthy Forests 
     Restoration Act of 2003 (16 U.S.C. 6512); or
       ``(ii) any organic matter that is available on a renewable 
     or recurring basis from non-Federal land or from land 
     belonging to an Indian tribe, or an Indian individual, that 
     is held in trust by the United States or subject to a 
     restriction against alienation imposed by the United States, 
     including--

       ``(I) renewable plant material, including--

       ``(aa) feed grains;
       ``(bb) other agricultural commodities;
       ``(cc) other plants and trees; and
       ``(dd) algae; and

       ``(II) waste material, including--

       ``(aa) crop residue;
       ``(bb) other vegetative waste material (including wood 
     waste and wood residues);
       ``(cc) animal waste and byproducts (including fats, oils, 
     greases, and manure); and
       ``(dd) food waste and yard waste.''.

     SEC. 202. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.

       (a) Definitions.--In this section:

[[Page 7984]]

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

     SEC. 203. BIOFUELS INFRASTRUCTURE AND ADDITIVES RESEARCH AND 
                   DEVELOPMENT.

       (a) In General.--The Assistant Administrator of the Office 
     of Research and Development of the Environmental Protection 
     Agency (referred to in this section as the ``Assistant 
     Administrator''), in consultation with the Secretary and the 
     National Institute of Standards and Technology, shall carry 
     out a program of research and development of materials to be 
     added to biofuels to make the biofuels more compatible with 
     infrastructure used to store and deliver petroleum-based 
     fuels to the point of final sale.
       (b) Requirements.--In carrying out the program described in 
     subsection (a), the Assistant Administrator shall address--
       (1) materials to prevent or mitigate--
       (A) corrosion of metal, plastic, rubber, cork, fiberglass, 
     glues, or any other material used in pipes and storage tanks;
       (B) dissolving of storage tank sediments;
       (C) clogging of filters;
       (D) contamination from water or other adulterants or 
     pollutants;
       (E) poor flow properties relating to low temperatures;
       (F) oxidative and thermal instability in long-term storage 
     and use; and
       (G) microbial contamination;
       (2) problems associated with electrical conductivity;
       (3) alternatives to conventional methods for refurbishment 
     and cleaning of gasoline and diesel tanks, including tank 
     lining applications;
       (4) strategies to minimize emissions from infrastructure;
       (5) issues with respect to certification by a nationally 
     recognized testing laboratory of components for fuel-
     dispensing devises that specifically reference compatibility 
     with alcohol-blended fuels and other biofuels that contain 
     greater than 15 percent alcohol;
       (6) challenges for design, reforming, storage, handling, 
     and dispensing hydrogen fuel from various feedstocks, 
     including biomass, from neighborhood fueling stations, 
     including codes and standards development necessary beyond 
     that carried out under section 809 of the Energy Policy Act 
     of 2005 (42 U.S.C. 16158);
       (7) issues with respect to at which point in the fuel 
     supply chain additives optimally should be added to fuels; 
     and
       (8) other problems, as identified by the Assistant 
     Administrator, in consultation with the Secretary and the 
     National Institute of Standards and Technology.

     SEC. 204. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED 
                   GASOLINE WITH HIGHER LEVELS OF ETHANOL.

       (a) In General.--The Secretary, in cooperation with the 
     Secretary of Agriculture, the Administrator of the 
     Environmental Protection Agency, and the Secretary of 
     Transportation, and after providing notice and an opportunity 
     for public comment, shall conduct a study of the feasibility 
     of increasing consumption in the United States of ethanol-
     blended gasoline with levels of ethanol that are not less 
     than 10 percent and not more than 40 percent.
       (b) Study.--The study under subsection (a) shall include--
       (1) a review of production and infrastructure constraints 
     on increasing consumption of ethanol;
       (2) an evaluation of the economic, market, and energy-
     related impacts of State and regional differences in ethanol 
     blends;
       (3) an evaluation of the economic, market, and energy-
     related impacts on gasoline retailers and consumers of 
     separate and distinctly labeled fuel storage facilities and 
     dispensers;
       (4) an evaluation of the environmental impacts of mid-level 
     ethanol blends on evaporative and exhaust emissions from on-
     road, off-road, and marine engines, recreational boats, 
     vehicles, and equipment;
       (5) an evaluation of the impacts of mid-level ethanol 
     blends on the operation, durability, and performance of on-
     road, off-road, and marine engines, recreational boats, 
     vehicles, and equipment;
       (6) an evaluation of the safety impacts of mid-level 
     ethanol blends on consumers that own and operate off-road and 
     marine engines, recreational boats, vehicles, or equipment; 
     and
       (7) an evaluation of the impacts of increased use of 
     renewable fuels derived from food crops on the price and 
     supply of agricultural commodities in both domestic and 
     global markets.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing the results of the study conducted under 
     this section.

     SEC. 205. STUDY OF DIESEL VEHICLE ATTRIBUTES.

       (a) In General.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Transportation, shall conduct a study to 
     identify--
       (1) the environmental and efficiency attributes of diesel-
     fueled vehicles as the vehicles compare to comparable 
     gasoline fueled, E-85 fueled, and hybrid vehicles;
       (2) the technical, economic, regulatory, environmental, and 
     other obstacles to increasing the usage of diesel-fueled 
     vehicles;
       (3) the legislative, administrative, and other actions that 
     could reduce or eliminate the obstacles identified under 
     paragraph (2); and
       (4) the costs and benefits associated with reducing or 
     eliminating the obstacles identified under paragraph (2).
       (b) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Energy and Commerce of the House of 
     Representatives a report describing the results of the study 
     conducted under subsection (a).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

        Subtitle B--Clean Coal-Derived Fuels for Energy Security

     SEC. 211. SHORT TITLE.

       This subtitle may be cited as the ``Clean Coal-Derived 
     Fuels for Energy Security Act of 2008''.

     SEC. 212. DEFINITIONS.

       In this subtitle:
       (1) Clean coal-derived fuel.--

[[Page 7985]]

       (A) In general.--The term ``clean coal-derived fuel'' means 
     aviation fuel, motor vehicle fuel, home heating oil, or 
     boiler fuel that is--
       (i) substantially derived from the coal resources of the 
     United States; and
       (ii) refined or otherwise processed at a facility located 
     in the United States that captures up to 100 percent of the 
     carbon dioxide emissions that would otherwise be released at 
     the facility.
       (B) Inclusions.--The term ``clean coal-derived fuel'' may 
     include any other resource that is extracted, grown, 
     produced, or recovered in the United States.
       (2) Covered fuel.--The term ``covered fuel'' means--
       (A) aviation fuel;
       (B) motor vehicle fuel;
       (C) home heating oil; and
       (D) boiler fuel.
       (3) Small refinery.--The term ``small refinery'' means a 
     refinery for which the average aggregate daily crude oil 
     throughput for a calendar year (as determined by dividing the 
     aggregate throughput for the calendar year by the number of 
     days in the calendar year) does not exceed 75,000 barrels.

     SEC. 213. CLEAN COAL-DERIVED FUEL PROGRAM.

       (a) Program.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the President shall promulgate 
     regulations to ensure that covered fuel sold or introduced 
     into commerce in the United States (except in noncontiguous 
     States or territories), on an annual average basis, contains 
     the applicable volume of clean coal-derived fuel determined 
     in accordance with paragraph (4).
       (2) Provisions of regulations.--Regardless of the date of 
     promulgation, the regulations promulgated under paragraph 
     (1)--
       (A) shall contain compliance provisions applicable to 
     refineries, blenders, distributors, and importers, as 
     appropriate, to ensure that--
       (i) the requirements of this subsection are met; and
       (ii) clean coal-derived fuels produced from facilities for 
     the purpose of compliance with this subtitle result in life 
     cycle greenhouse gas emissions that are not greater than 
     gasoline; and
       (B) shall not--
       (i) restrict geographic areas in the contiguous United 
     States in which clean coal-derived fuel may be used; or
       (ii) impose any per-gallon obligation for the use of clean 
     coal-derived fuel.
       (3) Relationship to other regulations.--Regulations 
     promulgated under this paragraph shall, to the maximum extent 
     practicable, incorporate the program structure, compliance 
     and reporting requirements established under the final 
     regulations promulgated to implement the renewable fuel 
     program established by the amendment made by section 
     1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-
     58; 119 Stat. 1067).
       (4) Applicable volume.--
       (A) Calendar years 2015 through 2022.--For the purpose of 
     this subsection, the applicable volume for any of calendar 
     years 2015 through 2022 shall be determined in accordance 
     with the following table:

                           Applicable volume of clean coal-derived fuel
Calendar year:                                (in billions of gallons):
  2015.............................................................0.75
  2016..............................................................1.5
  2017.............................................................2.25
  2018.............................................................3.00
  2019.............................................................3.75
  2020..............................................................4.5
  2021.............................................................5.25
  2022..............................................................6.0

       (B) Calendar year 2023 and thereafter.--Subject to 
     subparagraph (C), for the purposes of this subsection, the 
     applicable volume for calendar year 2023 and each calendar 
     year thereafter shall be determined by the President, in 
     coordination with the Secretary and the Administrator of the 
     Environmental Protection Agency, based on a review of the 
     implementation of the program during calendar years 2015 
     through 2022, including a review of--
       (i) the impact of clean coal-derived fuels on the energy 
     security of the United States;
       (ii) the expected annual rate of future production of clean 
     coal-derived fuels; and
       (iii) the impact of the use of clean coal-derived fuels on 
     other factors, including job creation, rural economic 
     development, and the environment.
       (C) Minimum applicable volume.--For the purpose of this 
     subsection, the applicable volume for calendar year 2023 and 
     each calendar year thereafter shall be equal to the product 
     obtained by multiplying--
       (i) the number of gallons of covered fuel that the 
     President estimates will be sold or introduced into commerce 
     in the calendar year; and
       (ii) the ratio that--

       (I) 6,000,000,000 gallons of clean coal-derived fuel; bears 
     to
       (II) the number of gallons of covered fuel sold or 
     introduced into commerce in calendar year 2022.

       (b) Applicable Percentages.--
       (1) Provision of estimate of volumes of certain fuel 
     sales.--Not later than October 31 of each of calendar years 
     2015 through 2021, the Administrator of the Energy 
     Information Administration shall provide to the President an 
     estimate, with respect to the following calendar year, of the 
     volumes of covered fuel projected to be sold or introduced 
     into commerce in the United States.
       (2) Determination of applicable percentages.--
       (A) In general.--Not later than November 30 of each of 
     calendar years 2015 through 2022, based on the estimate 
     provided under paragraph (1), the President shall determine 
     and publish in the Federal Register, with respect to the 
     following calendar year, the clean coal-derived fuel 
     obligation that ensures that the requirements of subsection 
     (a) are met.
       (B) Required elements.--The clean coal-derived fuel 
     obligation determined for a calendar year under subparagraph 
     (A) shall--
       (i) be applicable to refineries, blenders, and importers, 
     as appropriate;
       (ii) be expressed in terms of a volume percentage of 
     covered fuel sold or introduced into commerce in the United 
     States; and
       (iii) subject to paragraph (3)(A), consist of a single 
     applicable percentage that applies to all categories of 
     persons specified in clause (i).
       (3) Adjustments.--In determining the applicable percentage 
     for a calendar year, the President shall make adjustments--
       (A) to prevent the imposition of redundant obligations on 
     any person specified in paragraph (2)(B)(i); and
       (B) to account for the use of clean coal-derived fuel 
     during the previous calendar year by small refineries that 
     are exempt under subsection (f).
       (c) Volume Conversion Factors for Clean Coal-Derived Fuels 
     Based on Energy Content.--
       (1) In general.--For the purpose of subsection (a), the 
     President shall assign values to specific types of clean 
     coal-derived fuel for the purpose of satisfying the fuel 
     volume requirements of subsection (a)(4) in accordance with 
     this subsection.
       (2) Energy content relative to diesel fuel.--For clean 
     coal-derived fuels, 1 gallon of the clean coal-derived fuel 
     shall be considered to be the equivalent of 1 gallon of 
     diesel fuel multiplied by the ratio that--
       (A) the number of British thermal units of energy produced 
     by the combustion of 1 gallon of the clean coal-derived fuel 
     (as measured under conditions determined by the Secretary); 
     bears to
       (B) the number of British thermal units of energy produced 
     by the combustion of 1 gallon of diesel fuel (as measured 
     under conditions determined by the Secretary to be comparable 
     to conditions described in subparagraph (A)).
       (d) Credit Program.--
       (1) In general.--The President, in consultation with the 
     Secretary and the clean coal-derived fuel requirement of this 
     section.
       (2) Market transparency.--In carrying out the credit 
     program under this subsection, the President shall facilitate 
     price transparency in markets for the sale and trade of 
     credits, with due regard for the public interest, the 
     integrity of those markets, fair competition, and the 
     protection of consumers.
       (e) Waivers.--
       (1) In general.--The President, in consultation with the 
     Secretary and the Administrator of the Environmental 
     Protection Agency, may waive the requirements of subsection 
     (a) in whole or in part on petition by 1 or more States by 
     reducing the national quantity of clean coal-derived fuel 
     required under subsection (a), based on a determination by 
     the President (after public notice and opportunity for 
     comment), that--
       (A) implementation of the requirement would severely harm 
     the economy or environment of a State, a region, or the 
     United States; or
       (B) extreme and unusual circumstances exist that prevent 
     distribution of an adequate supply of domestically-produced 
     clean coal-derived fuel to consumers in the United States.
       (2) Petitions for waivers.--The President, in consultation 
     with the Secretary and the Administrator of the Environmental 
     Protection Agency, shall approve or disapprove a State 
     petition for a waiver of the requirements of subsection (a) 
     within 90 days after the date on which the petition is 
     received by the President.
       (3) Termination of waivers.--A waiver granted under 
     paragraph (1) shall terminate after 1 year, but may be 
     renewed by the President after consultation with the 
     Secretary and the Administrator of the Environmental 
     Protection Agency.
       (f) Small Refineries.--
       (1) Temporary exemption.--
       (A) In general.--The requirements of subsection (a) shall 
     not apply to small refineries until calendar year 2018.
       (B) Extension of exemption.--
       (i) Study by secretary.--Not later than December 31, 2013, 
     the Secretary shall submit to the President and Congress a 
     report

[[Page 7986]]

     describing the results of a study to determine whether 
     compliance with the requirements of subsection (a) would 
     impose a disproportionate economic hardship on small 
     refineries.
       (ii) Extension of exemption.--In the case of a small 
     refinery that the Secretary determines under clause (i) would 
     be subject to a disproportionate economic hardship if 
     required to comply with subsection (a), the President shall 
     extend the exemption under subparagraph (A) for the small 
     refinery for a period of not less than 2 additional years.
       (2) Petitions based on disproportionate economic 
     hardship.--
       (A) Extension of exemption.--A small refinery may at any 
     time petition the President for an extension of the exemption 
     under paragraph (1) for the reason of disproportionate 
     economic hardship.
       (B) Evaluation of petitions.--In evaluating a petition 
     under subparagraph (A), the President, in consultation with 
     the Secretary, shall consider the findings of the study under 
     paragraph (1)(B) and other economic factors.
       (C) Deadline for action on petitions.--The President shall 
     act on any petition submitted by a small refinery for a 
     hardship exemption not later than 90 days after the date of 
     receipt of the petition.
       (3) Opt-in for small refineries.--A small refinery shall be 
     subject to the requirements of subsection (a) if the small 
     refinery notifies the President that the small refinery 
     waives the exemption under paragraph (1).
       (g) Penalties and Enforcement.--
       (1) Civil penalties.--
       (A) In general.--Any person that violates a regulation 
     promulgated under subsection (a), or that fails to furnish 
     any information required under such a regulation, shall be 
     liable to the United States for a civil penalty of not more 
     than the total of--
       (i) $25,000 for each day of the violation; and
       (ii) the amount of economic benefit or savings received by 
     the person resulting from the violation, as determined by the 
     President.
       (B) Collection.--Civil penalties under subparagraph (A) 
     shall be assessed by, and collected in a civil action brought 
     by, the Secretary or such other officer of the United States 
     as is designated by the President.
       (2) Injunctive authority.--
       (A) In general.--The district courts of the United States 
     shall have jurisdiction to--
       (i) restrain a violation of a regulation promulgated under 
     subsection (a);
       (ii) award other appropriate relief; and
       (iii) compel the furnishing of information required under 
     the regulation.
       (B) Actions.--An action to restrain such violations and 
     compel such actions shall be brought by and in the name of 
     the United States.
       (C) Subpoenas.--In the action, a subpoena for a witness who 
     is required to attend a district court in any district may 
     apply in any other district.
       (h) Effective Date.--Except as otherwise specifically 
     provided in this section, this section takes effect on 
     January 1, 2016.

                         Subtitle C--Oil Shale

     SEC. 221. REMOVAL OF PROHIBITION ON FINAL REGULATIONS FOR 
                   COMMERCIAL LEASING PROGRAM FOR OIL SHALE 
                   RESOURCES ON PUBLIC LAND.

       Section 433 of the Department of the Interior, Environment, 
     and Related Agencies Appropriations Act, 2008 (Public Law 
     110-161; 121 Stat. 2152) is repealed.

Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

     SEC. 231. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

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

     SEC. 232. MULTIYEAR CONTRACT AUTHORITY FOR THE DEPARTMENT OF 
                   DEFENSE FOR THE PROCUREMENT OF SYNTHETIC FUELS.

       (a) Multiyear Contracts for the Procurement of Synthetic 
     Fuels Authorized.--
       (1) In general.--Chapter 141 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2410r. Multiyear contract authority: purchase of 
       synthetic fuels

       ``(a) Multiyear Contracts Authorized.--The head of an 
     agency may enter into contracts for a period not to exceed 25 
     years for the purchase of synthetic fuels.
       ``(b) Definitions.--In this section:
       ``(1) The term `head of an agency' has the meaning given 
     that term in section 2302(1) of this title.
       ``(2) The term `synthetic fuel' means any liquid, gas, or 
     combination thereof that--
       ``(A) can be used as a substitute for petroleum or natural 
     gas (or any derivative thereof, including chemical 
     feedstocks); and
       ``(B) is produced by chemical or physical transformation of 
     domestic sources of energy.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 141 of such title is amended by adding 
     at the end the following new item:

``2410r. Multiyear contract authority: purchase of synthetic fuels.''.

       (b) Regulations.--Not later than 12 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     prescribe regulations providing that the head of an agency 
     may initiate a multiyear contract as authorized by section 
     2410r of title 10, United States Code (as added by subsection 
     (a)), only if the head of the agency has determined in 
     writing that--
       (1) there is a reasonable expectation that throughout the 
     contemplated contract period the head of the agency will 
     request funding for the contract at the level required to 
     avoid contract cancellation;
       (2) the technical risks associated with the technologies 
     for the production of synthetic fuel under the contract are 
     not excessive; and
       (3) the contract will contain appropriate pricing 
     mechanisms to minimize risk to the Government from 
     significant changes in market prices for energy.
       (c) Limitation on Use of Authority.--No contract may be 
     entered into under the authority in section 2410r of title 
     10, United States Code (as so added), until the regulations 
     required by subsection (b) are prescribed.
                                 ______
                                 
  SA 4722. Mr. VITTER (for himself and Ms. Landrieu) proposed an 
amendment to amendment SA 4707 proposed by Mr. Dodd (for himself and 
Mr. Shelby) to the bill S. 2284, to amend the National Flood Insurance 
Act of 1968, to restore the financial solvency of the flood insurance 
fund, and for other purposes, as follows:

       At the appropriate place, insert the following:

     SEC. 33. MAXIMUM COVERAGE LIMITS.

       Subsection (b) of section 1306 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended--
       (1) in paragraph (2), by striking ``$250,000'' and 
     inserting ``$335,000'';
       (2) in paragraph (3), by striking ``$100,000'' and 
     inserting ``$135,000''; and
       (3) in paragraph (4)--
       (A) by striking ``$500,000'' each place such term appears 
     and inserting ``$670,000''; and
       (B) by inserting before ``; and'' the following: ``; except 
     that, in the case of any nonresidential property that is a 
     structure containing more than one dwelling unit that is made 
     available for occupancy by rental (notwithstanding the 
     provisions applicable to the determination of the risk 
     premium rate for such property), additional flood insurance 
     in excess of such limits shall be made available to every 
     insured upon renewal and every applicant for insurance so as 
     to enable any such insured or applicant to receive coverage 
     up to a total amount that is equal to the product of the 
     total number of such rental dwelling units in such property 
     and the maximum coverage limit per dwelling unit specified in 
     paragraph (2); except that in the case of any such multi-
     unit, nonresidential rental property that is a pre-FIRM 
     structure (as such term is defined in section 578(b) of the 
     National Flood Insurance Reform Act of 1994 (42 U.S.C. 4014 
     note)), the risk premium rate for the first $500,000 of 
     coverage shall be determined in accordance with section 
     1307(a)(2) and the risk premium rate for any coverage in 
     excess of such amount shall be determined in accordance with 
     section 1307(a)(1)''.
                                 ______
                                 
  SA 4723. Mr. VITTER (for himself and Ms. Landrieu) proposed an 
amendment to amendment SA 4707 proposed by Mr. Dodd (for himself and 
Mr. Shelby) to the bill S. 2284, to amend the National Flood Insurance 
Act of 1968, to restore the financial solvency of the flood insurance 
fund, and for other purposes, as follows:

       On page 11, line 6, strike ``Any increase'' and all that 
     follows through the second period on page 11, line 11, and 
     insert the following: ``Any increase in the risk premium rate 
     charged for flood insurance on any property that is covered 
     by a flood insurance policy on the date of completion of the 
     updating or remapping described in paragraph (1) that is a 
     result of such updating or remapping shall be phased in over 
     a 5-year period at the rate of 20 percent per year.''.

                                 ______
                                 
  SA 4724. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 2284, to amend the National Flood Insurance Act of 
1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. FEASIBILITY STUDY ON PRIVATE REINSURANCE.

       Not later than 1 year after the date of enactment of this 
     Act, the Comptroller General of the United States shall 
     conduct and submit a report to Congress on--
       (1) the feasibility of requiring the Director, as part of 
     carrying out the responsibilities of the Director under the 
     National Flood Insurance Program, to purchase private 
     reinsurance or retrocessional coverage, in addition

[[Page 7987]]

     to any such reinsurance coverage required under section 1335 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 4055), 
     to underlying primary private insurers for losses arising due 
     to flood insurance coverage provided by such insurers;
       (2) the feasibility of repealing the reinsurance 
     requirement under such section 1335, and requiring the 
     Director, as part of carrying out the responsibilities of the 
     Director under the National Flood Insurance Program, to 
     purchase private reinsurance or retrocessional coverage to 
     underlying primary private insurers for losses arising due to 
     flood insurance coverage provided by such insurer; and
       (3) the estimated total savings to the taxpayer of taking 
     each such action described in paragraph (1) or (2).
                                 ______
                                 
  SA 4725. Mr. COBURN submitted an amendment intended to be proposed to 
amendment SA 4707 proposed by Mr. Dodd (for himself and Mr. Shelby) to 
the bill S. 2284, to amend the National Flood Insurance Act of 1968, to 
restore the financial solvency of the flood insurance fund, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 8, line 13, strike ``and''.
       On page 8, line 16, strike ``policy.''.'' and insert the 
     following: ``policy; and
       ``(3) any prospective insured who refuses to accept any 
     offer for mitigation assistance by the Administrator 
     (including an offer to relocate), including an offer of 
     mitigation assistance--
       ``(A) following a major disaster, as defined in section 102 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122); or
       ``(B) in connection with--
       ``(i) a repetitive loss property; or
       ``(ii) a severe repetitive loss property, as that term is 
     defined under section 1361A.''.
                                 ______
                                 
  SA 4726. Mr. COBURN submitted an amendment intended to be proposed to 
amendment SA 4707 proposed by Mr. Dodd (for himself and Mr. Shelby) to 
the bill S. 2284, to amend the National Flood Insurance Act of 1968, to 
restore the financial solvency of the flood insurance fund, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 9, line 10, strike ``under paragraph (1).'' and 
     insert the following: ``under paragraph (1); and
       ``(3) charged premium rates at less than the estimated risk 
     premium rates under section 1307(a)(1) and not described in 
     section 1307(a)(4), shall be increased by 25 percent each 
     year until the average risk premium rate for such properties 
     is equal to the average of risk premium rates for properties 
     described under paragraph (1).
                                 ______
                                 
  SA 4727. Mrs. McCASKILL submitted an amendment intended to be 
proposed to amendment SA 4707 proposed by Mr. Dodd (for himself and Mr. 
Shelby) to the bill S. 2284, to amend the National Flood Insurance Act 
of 1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 50, between lines 3 and 4, insert the following:
       (4) Failure to comply.--A property and casualty insurance 
     company that is authorized by the Director to participate in 
     the Write Your Own program which fails to comply with the 
     reporting requirement under this subsection or the 
     requirement under section 62.23(j)(1) of title 44, Code of 
     Federal Regulations (relating to biennial audit of the flood 
     insurance financial statements) shall be subject to a civil 
     penalty in an amount equal to $1,000 per day for each day 
     that the company remains in noncompliance with either such 
     requirement.
                                 ______
                                 
  SA 4728. Mrs. McCASKILL submitted an amendment intended to be 
proposed to amendment SA 4707 proposed by Mr. Dodd (for himself and Mr. 
Shelby) to the bill S. 2284, to amend the National Flood Insurance Act 
of 1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title I, add the following:

     SEC. 133. POLICY DISCLOSURES.

       (a) In General.--Notwithstanding any other provision of 
     law, in addition to any other disclosures that may be 
     required, each policy under the National Flood Insurance 
     Program shall state all conditions, exclusions, and other 
     limitations pertaining to coverage under the subject policy, 
     regardless of the underlying insurance product, in plain 
     English, in boldface type, and in a font size that is twice 
     the size of the text of the body of the policy.
       (b) Violations.--Any person that violates the requirements 
     of this section shall be subject to a fine of $10,000, per 
     policy.
                                 ______
                                 
  SA 4729. Mr. DORGAN submitted an amendment intended to be proposed to 
amendment SA 4707 proposed by Mr. Dodd (for himself and Mr. Shelby) to 
the bill S. 2284, to amend the National Flood Insurance Act of 1968, to 
restore the financial solvency of the flood insurance fund, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike section 107.
                                 ______
                                 
  SA 4730. Mrs. DOLE submitted an amendment intended to be proposed to 
amendment SA 4707 proposed by Mr. Dodd (for himself and Mr. Shelby) to 
the bill S. 2284, to amend the National Flood Insurance Act of 1968, to 
restore the financial solvency of the flood insurance fund, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 25, line 11, strike ``; and'' and insert a 
     semicolon.
       On page 25, line 14, strike the period and insert a 
     semicolon.
       On page 25, between lines 14 and 15, insert the following:
       (M) a representative of a State agency that has entered 
     into a cooperating technical partnership with the Director 
     and has demonstrated the capability to produce flood 
     insurance rate maps; and
       (N) a representative of a local government agency that has 
     entered into a cooperating technical partnership with the 
     Director and has demonstrated the capability to produce flood 
     insurance rate maps.
                                 ______
                                 
  SA 4731. Mr. THUNE (for himself and Mr. Johnson) submitted an 
amendment intended to be proposed to amendment SA 4707 proposed by Mr. 
Dodd (for himself and Mr. Shelby) to the bill S. 2284, to amend the 
National Flood Insurance Act of 1968, to restore the financial solvency 
of the flood insurance fund, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end, add the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. BIG SIOUX RIVER AND SKUNK CREEK, SIOUX FALLS, SOUTH 
                   DAKOTA.

       The project for flood control, Big Sioux River and Skunk 
     Creek, Sioux Falls, South Dakota, authorized by section 
     101(a)(28) of the Water Resources Development Act of 1996 
     (110 Stat. 3666), is modified--
       (1) to authorize the Secretary of the Army, acting through 
     the Chief of Engineers, to construct the project at an 
     estimated total cost of $51,000,000, with an estimated 
     Federal cost of $38,250,000 and an estimated non-Federal cost 
     of $12,750,000;
       (2) to direct the Secretary to accept advance funding from 
     the non-Federal interest for the remaining Federal share of 
     the project, as needed to complete the project; and
       (3) to authorize the Secretary to reimburse the non-Federal 
     interest for funds advanced by the non-Federal interest for 
     the Federal share of the project, only if additional Federal 
     funds are appropriated for that purpose.
                                 ______
                                 
  SA 4732. Mr. PRYOR (for himself and Mrs. Lincoln) submitted an 
amendment intended to be proposed by him to the bill S. 2284, to amend 
the National Flood Insurance Act of 1968, to restore the financial 
solvency of the flood insurance fund, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. LEVEE MODERNIZATION GRANT PROGRAM.

       (a) Definitions.--In this section--
       (1) the terms ``local government'' and ``State'' have the 
     meanings given such terms in section 2 of the Homeland 
     Security Act of 2002 (6 U.S.C. 101); and
       (2) the term ``program'' means the Levee Modernization 
     Grant Program established under subsection (b).
       (b) Establishment.--Not later than 12 months after the date 
     of enactment of this Act, the Director shall establish the 
     Levee Modernization Grant Program, under which the Director 
     may provide technical and financial assistance to States and 
     local governments to be used in accordance with subsection 
     (e) to assist in the implementation of levee improvement and 
     modernization measures that are cost-effective and are 
     designed to protect against loss of life, limit damage and 
     destruction of property, encourage rural economic 
     development, and contribute to the ability of a community to 
     prevent areas in that community from being designated as a 
     100-year floodplain.
       (c) Criteria.--
       (1) Allocation of funds.--Not later than the date on which 
     the Director establishes the program, the Director shall 
     establish criteria to be used to determine the amount of 
     financial assistance that will be made available to a State 
     (including amounts made available to local governments 
     located in the State) under the program.

[[Page 7988]]

       (2) Grant awards.--In determining whether to provide 
     technical and financial assistance to a State or local 
     government under the program, the Director shall consider--
       (A) the extent and nature of the flood risk to a State or 
     local government;
       (B) the imminence of need;
       (C) the degree of commitment of the State or local 
     government to perform ongoing levee maintenance;
       (D) the extent to which the levee improvement and 
     modernizations to be carried out using the technical and 
     financial assistance under the program contribute to the 
     economic development and mitigation goals and priorities 
     established by the State;
       (E) the extent to which the technical and financial 
     assistance under the program is consistent with assistance 
     provided under other grant programs of the Federal Emergency 
     Management Agency or another Federal department or agency;
       (F) the extent to which prioritized, cost-effective levee 
     improvement activities that produce meaningful and definable 
     outcomes in the State or jurisdiction of the local government 
     are clearly identified;
       (G) the opportunity to fund activities that maximize net 
     benefits to society; and
       (H) such other criteria as the Director, in consultation 
     with States and local governments, may establish.
       (d) State Recommendations of Projects.--
       (1) In general.--Not later than 3 months after the date 
     that the Director establishes the program, and annually 
     thereafter, the Governor of a State desiring to participate 
     in the program during the following fiscal year shall submit 
     to the Director a list of the projects that State that the 
     Governor recommends receive technical and financial 
     assistance (provided either directly to a local government or 
     through the State) under the program.
       (2) Selection.--
       (A) In general.--Except as provided in subparagraph (B), 
     for each fiscal year the Director shall select projects to 
     receive technical and financial assistance under the program 
     from among the projects recommended under paragraph (1).
       (B) Exceptions.--The Director may select a project to 
     receive technical and financial assistance under the program 
     that was not among the projects recommended under paragraph 
     (1) for a fiscal year if the Director determines that--
       (i) extraordinary circumstances justify the selection of 
     the project; and
       (ii) making the selection will further the purpose of the 
     program, as described in subsection (b).
       (e) Uses of Technical and Financial Assistance.--A State or 
     local government that receives technical and financial 
     assistance for a project under the program may use such 
     assistance--
       (1) for an initial inspection of a levee by a private 
     engineering firm or the Corps of Engineers;
       (2) to implement such improvements as are determined 
     necessary by an inspection described in paragraph (1) to 
     prevent areas protected by such levee from being designated 
     as a 100-year floodplain;
       (3) to establish levee maintenance priorities and an 
     appropriate levee modernization program; and
       (4) for other purposes that further the goal of identifying 
     or implementing levee improvement and modernization measures.
       (f) Federal Share.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the Federal share of levee improvement and modernization 
     activities carried out with financial assistance under the 
     program shall be not more than 50 percent.
       (2) Rural and economically disadvantaged communities.--
       (A) In general.--The Federal share of levee improvement and 
     modernization activities carried out in a community described 
     in subparagraph (B) with financial assistance under the 
     program shall be not more than 65 percent.
       (B) Communities.--A community described in this 
     subparagraph is--
       (i) a rural community (as determined by the Director);
       (ii) a town with a population of not more than 20,000 
     individuals; or
       (iii) an area in which the average income is \1/3\ less 
     then the State-wide median income for the applicable State, 
     as determined by the Secretary of Housing and Urban 
     Development.
       (3) Waiver.--The Director may waive paragraph (1) in 
     extreme circumstances, as determined by the Director.
       (g) Report to Congress.--Not later than 18 months after the 
     date of enactment of this Act, the Director, in consultation 
     with State and local governments, shall submit to Congress a 
     report evaluating the efforts of the Director to carry out 
     this section.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Director $400,000,000 to carry out 
     the program.

                          ____________________