To reduce deficits and government spending through the elimination of wasteful energy subsidies and programs.

Summary: Reduce and End our Deficits Using Commonsense Eliminations in the Energy Program Act of 2010 - Amends the Surface Mining Control and Reclamation Act of 1977 to terminate allocations of abandoned mine reclamation fees, except payments for health benefits, to states and Indian tribes that are certified to have completed coal mining reclamation.

Amends the Internal Revenue Code to terminate: (1) the enhanced oil recovery credit; (2) the credit for oil and gas produced from marginal wells; (3) the expensing of intangible drilling costs; (4) the deduction for tertiary injectants; (5) the exception to the passive loss limitation for working interests in oil and natural gas properties; (6) the percentage depletion deduction for oil and natural gas wells; and (7) the domestic manufacturing tax deduction for oil and natural gas companies.

Increases to seven years the geological and geophysical amortization period for independent producers.

Amends the Energy Policy Act of 2005 to repeal authority for: (1) the oil and gas research programs; (2) the low-volume oil and gas reservoir program; and (3) the Complex Well Technology Testing Facility at the Rocky Mountain Oilfield Testing Center.

Instructs the Secretary of Energy to: (1) discontinue the application before the Nuclear Regulatory Commission (NRC) for a license to construct a high-level nuclear waste geologic repository at Yucca Mountain, Nevada; (2) plan for the sale of federally owned and operated electric energy generation facilities under the supervision of, or working in coordination with, the Southeastern Power Administration (SEPA); and (3) terminate SEPA following such sale. Excludes from such sale any dam, reservoir, or waterfront property.

Directs the Tennessee Valley Authority (TVA) to sell the rights and assets of its electric power program. Excludes from the sale any hydroelectric power generation facility owned and operated by TVA (including dams and appurtenant works and structures).

Deems the remaining net proceeds from any such sale, after offset for sale costs, to extinguish the outstanding debt repayable to the United States and attributable to the assets being sold.

Amends the Energy Policy and Conservation Act to decrease the storage capacity of the Strategic Petroleum Reserve from 1 billion to 650 million barrels.

Amends the Energy Policy Act of 2005 to repeal the Secretary's program authority for research, development, demonstration, and commercial application of technologies for ultra-deepwater and unconventional natural gas and other petroleum resource exploration and production.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reduce and End our Deficits Using 
Commonsense Eliminations in the Energy Program Act of 2010''.

SEC. 2. TERMINATION OF PAYMENTS TO CERTIFIED STATES AND INDIAN TRIBES 
              UNDER ABANDONED MINE LANDS PROGRAM.

    The Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1201 et seq.) is amended--
            (1) in section 402(g)(1)(A)(ii), by striking ``or 
        pursuant'' and all that follows through the end of the sentence 
        and inserting a period;
            (2) in section 402(g)(1)(B)(ii), by striking ``or 
        pursuant'' and all that follows through the end of the sentence 
        and inserting a period; and
            (3) by amending section 411 to read as follows:

``SEC. 411. CERTIFICATION.

    ``(a) Certification Required.--The Secretary shall determine and 
certify if on the basis of the inventory referred to in section 403(c) 
all reclamation projects relating to the priorities described in 
section 403(a) for eligible land and water pursuant to section 404 in a 
State or of a tribe have been completed.
    ``(b) Notice and Comment.--The Secretary shall publish notice in 
the Federal Register and provide an opportunity for public comment 
regarding any certification under subsection (a).
    ``(c) Limitation on Payments to Certified States and Indian 
Tribes.--
            ``(1) In general.--Except as provided in paragraph (2), and 
        notwithstanding any other provision of this Act, no payment may 
        be made under this Act to a State or Indian tribe for which a 
        determination and certification is required under subsection 
        (a).
            ``(2) Payments for health benefits not affected.--Paragraph 
        (1) shall not apply with respect to payments under subsections 
        (h) and (i) of section 402.''.

SEC. 3. TERMINATE OIL AND GAS COMPANY TAX PREFERENCES.

    (a) Repeal Enhanced Oil Recovery Credit.--Section 43 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(f) Termination.--This section shall not apply to any amount, 
costs, or expenses paid or incurred after the date of the enactment of 
this subsection.''.
    (b) Repeal Credit for Oil and Gas Produced From Marginal Wells.--
Section 45I of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subsection:
    ``(e) Termination.--This section shall not apply to any production 
after December 31, 2010.''.
    (c) Repeal Expensing of Intangible Drilling Costs.--Subsection (c) 
of section 263 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new sentence: ``This subsection shall 
not apply to any expense relating to an oil or gas well paid or 
incurred after December 31, 2010.''.
    (d) Repeal Deduction for Tertiary Injectants.--Section 193 of such 
Code is amended by adding at the end the following new subsection:
    ``(d) Termination.--Subsection (a) shall not apply to any amount 
paid or incurred after the date of the enactment of this subsection.''.
    (e) Repeal Exception to Passive Loss Limitation for Working 
Interests in Oil and Natural Gas Properties.--Subsection (c) of section 
469 of such Code is amended by striking paragraph (3) (relating to 
working interests in oil and gas property).
    (f) Repeal Percentage Depletion for Oil and Natural Gas Wells.--
            (1) In general.--Section 613A of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(f) Termination.--After December 31, 2010, this section and 
section 611 shall not apply to any oil or gas well.''.
            (2) Conforming amendment.--Section 613A(c)(1) of such Code 
        is amended by striking ``subsection (d)'' and inserting 
        ``subsections (d) and (f)''.
    (g) Repeal Domestic Manufacturing Tax Deduction for Oil and Natural 
Gas Companies.--
            (1) In general.--Subparagraph (B) of section 199(c)(4) of 
        such Code is amended by striking ``and'' at the end of clause 
        (ii), by striking the period at the end of clause (iii) and 
        inserting ``, and'', and by inserting after clause (iii) the 
        following:
                            ``(iv) production or extraction relating to 
                        any oil or gas.''.
            (2) Conforming amendment.--Section 199(c)(4)(A)(i)(III) of 
        such Code is amended by striking ``, natural gas,''.
    (h) Increase Geological and Geophysical Amortization Period for 
Independent Producers to Seven Years.--
            (1) In general.--Paragraphs (1) and (4) of section 167(h) 
        of such Code is amended by striking ``24-month'' both places it 
        appears and inserting ``7-year''.
            (2) Conforming amendment.--Section 167(h) of such Code is 
        amended by striking paragraph (5).
    (i) Effective Date.--
            (1) The amendments made by subsection (a), (c), (e), and 
        (f) shall apply to amounts paid or incurred in taxable years 
        beginning after December 31, 2010.
            (2) The amendments made by subsections (b), (d), (g), and 
        (h) shall apply to amounts paid or incurred in taxable years 
        beginning after December 31, 2010.

SEC. 4. DEPARTMENT OF ENERGY OIL AND GAS RESEARCH AND DEVELOPMENT.

    Sections 965 through 967 of the Energy Policy Act of 2005 (42 
U.S.C. 16295-16297) are repealed.

SEC. 5. NUCLEAR WASTE REPOSITORY.

    The Secretary of Energy shall discontinue the application before 
the Nuclear Regulatory Commission for a license to construct a high-
level nuclear waste geologic repository at Yucca Mountain, Nevada.

SEC. 6. SALE OF CERTAIN SEPA AND TVA FACILITIES.

    (a) Sale of Southeastern Power Administration and TVA Facilities.--
            (1) Southeastern power administration and related 
        facilities.--
                    (A) Sale of southeastern power administration and 
                related power generating assets.--The Secretary of 
                Energy shall develop and carry out a plan to provide 
                for the sale of the electric energy generation 
                facilities that are currently owned and operated by 
                Federal departments and agencies under the supervision 
                of, or working in coordination with, the Southeastern 
                Power Administration, together with any and all other 
                assets, rights, interests, and obligations held or 
                owned by the Southeastern Power Administration. The 
                heads of other affected Federal departments and 
                agencies shall assist the Secretary of Energy in 
                implementing the sales authorized by this subparagraph.
                    (B) Exclusion of dams and reservoirs.--The 
                authority of the Secretary of Energy under subparagraph 
                (A) shall apply with respect to facilities for the 
                generation of electric energy, including turbines, 
                generators, controls, and substations, and shall not 
                apply with respect to any dam, reservoir, or waterfront 
                property.
                    (C) Report to congress.--At least 60 days before 
                implementing a plan developed under this paragraph, the 
                Secretary of Energy shall submit to Congress a report 
                containing the plan.
            (2) TVA facilities.--
                    (A) Sale of power program.--The Tennessee Valley 
                Authority shall develop and carry out a plan to provide 
                for the sale of the rights and assets of its electric 
                power program.
                    (B) Hydroelectric facility exclusion.--The 
                authority of the Tennessee Valley Authority under 
                subparagraph (A) shall not apply with respect to any 
                hydroelectric power generation facility owned and 
                operated by the Authority (including dams and 
                appurtenant works and structures).
                    (C) Report to congress.--At least 60 days before 
                implementing a plan developed under this paragraph, the 
                Tennessee Valley Authority shall submit to Congress a 
                report containing the plan.
    (b) Proceeds.--The proceeds of any sale under this section shall be 
used first to offset the costs of carrying out the sale and the 
remaining net proceeds shall be deemed to extinguish the outstanding 
debt repayable to the United States and attributable to the assets 
being sold. Any portion of the net proceeds that exceeds the net 
present value of the outstanding debt repayable to the United States 
and attributable to the assets being sold shall be deposited in the 
Treasury of the United States as miscellaneous receipts.
    (c) Treatment of Sales for Purposes of Certain Laws.--A sale of 
assets under this section shall not be considered a disposal of Federal 
surplus property under subchapter III of chapter 5 of title 40, United 
States Code, or any other applicable provision of law.
    (d) Date of Sale.--To be extent practicable, all sales under this 
section shall be completed before December 31, 2010.
    (e) Termination of the Southeastern Power Administration.--
Following the sale of the assets referred to in subsection (a)(1), the 
Secretary of Energy shall complete the business of and close out the 
Southeastern Power Administration and return any unexpended balances of 
funds appropriated for the Southeastern Power Administration to the 
Treasury of the United States.

SEC. 7. VOLUME OF STRATEGIC PETROLEUM RESERVE.

    Section 154(a) of the Energy Policy and Conservation Act (42 U.S.C. 
6234(a)) is amended by striking ``1 billion'' and inserting 
``650,000,000''.

SEC. 8. ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
              PETROLEUM RESOURCES.

    Sections 999A through 999H of the Energy Policy Act of 2005 (42 
U.S.C. 16371-16378) are repealed.