A bill to amend the Energy Policy Act of 2005 to promote oil shale and tar sands leasing, and for other purposes.

Summary: Oil Shale and Tar Sands Leasing Act of 2008 - Amends the Energy Policy Act of 2005 to direct the Secretary of the Interior to: (1) report to Congress on a commercial leasing program for oil shale and tar sands; and (2) arrange with the National Academy of Sciences to assess for a report to Congress the environmental and commercial framework for oil shale and tar sands development.



Authorizes the senior executive of an affected state or local governmental unit to submit recommendations to the Secretary with respect to size, timing, or location of either a proposed lease sale, or a proposed development and production plan.

Requires an environmental impact statement prior to: (1) any lease sale under the commercial leasing program under this Act; and (2) authorization, on a site-specific basis, of development activity on leased land.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Oil Shale and Tar Sands Leasing Act 
of 2008''.

SEC. 2. OIL SHALE AND TAR SANDS LEASING.

    Section 369 of the Energy Policy Act of 2005 (42 U.S.C. 15927) is 
amended--
            (1) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by striking ``Not later than 18 months 
                        after the date of enactment of this Act, in'' 
                        and inserting the following:
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of the Oil Shale and Tar Sands 
                Leasing Act of 2008, in''; and
                            (ii) by adding at the end the following:
                    ``(B) Additional comment period.--The Governors of 
                each of the States of Colorado, Utah, and Wyoming shall 
                be afforded an additional 90 days beyond the public 
                comment period during which to comment on the final 
                programmatic environmental impact statement prior to 
                issuance of a record of decision by the Secretary.''; 
                and
                    (B) in paragraph (2)--
                            (i) in the heading by striking ``(2) Final 
                        regulation.--Not'' and inserting the following:
            ``(2) Proposed regulation.--
                    ``(A) In general.--Not'';
                            (ii) by striking ``6 months'' and inserting 
                        ``1 year'';
                            (iii) by striking ``final'' and inserting 
                        ``proposed''; and
                            (iv) by adding at the end the following:
                    ``(B) Public comment.--The proposed regulations 
                under this paragraph shall be open to public comment 
                for not less than 120 days.'';
            (2) by redesignating subsections (e) through (s) as 
        subsections (g) through (u), respectively;
            (3) by inserting after subsection (d) the following:
    ``(e) Analysis of Commercial Leasing Program.--
            ``(1) In general.--Not later than 18 months after the date 
        of enactment of the Oil Shale and Tar Sands Leasing Act of 
        2008, and concurrent with the development of the proposed 
        regulations as required by this section, the Secretary shall, 
        in cooperation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency, prepare 
        and submit to Congress a report (including recommendations) 
        that analyzes the elements of a commercial leasing program for 
        oil shale and tar sands, taking into account any findings from 
        the research and development program conducted under subsection 
        (c).
            ``(2) Inclusions.--The report under paragraph (1) shall 
        include--
                    ``(A) an analysis of--
                            ``(i) technologies and research and 
                        development programs for the production of oil 
                        and other materials from oil shale and tar 
                        sands in existence on the date on which the 
                        report is prepared;
                            ``(ii) whether leases under the program 
                        should be issued on a competitive basis;
                            ``(iii) the term of the leases;
                            ``(iv) the maximum size of the leases;
                            ``(v) the minimum size of the leases;
                            ``(vi) the use and distribution of bonus 
                        bid payments;
                            ``(vii) the royalty rate to be applied, 
                        including whether a sliding scale royalty rate 
                        should be used;
                            ``(viii) the maximum number of leases and 
                        maximum acreage to be leased under the leasing 
                        program to a single lessee or an individual;
                            ``(ix) any infrastructure required to 
                        support oil shale and tar sands development in 
                        industry and communities;
                            ``(x) any conditions that should be imposed 
                        in leases to minimize the impacts on--
                                    ``(I) air quality and conditions, 
                                including greenhouse gas emissions;
                                    ``(II) water quality and quantity;
                                    ``(III) human health;
                                    ``(IV) local communities; and
                                    ``(V) wildlife habitat;
                            ``(xi) policies that are necessary to 
                        mitigate the adverse impacts of commercial oil 
                        shale and tar sands exploration, development, 
                        and production activities on wildlife and other 
                        environmental resources that may be affected by 
                        a commercial oil shale and tar sands leasing 
                        and development program;
                            ``(xii) reclamation bonding requirements 
                        that should be imposed to guarantee the 
                        reclamation of areas disturbed by oil shale and 
                        tar sands exploration, development, and 
                        production activities; and
                            ``(xiii) appropriate diligent development 
                        and minimum production requirements;
                    ``(B) an identification of events that should serve 
                as a precursor to commercial leasing, including--
                            ``(i) the development of environmentally 
                        and commercially viable technologies; and
                            ``(ii) the completion of land use planning 
                        and environmental reviews; and
                    ``(C) an analysis, developed in conjunction with 
                the appropriate State water resources agencies, of the 
                demand for, and availability of, water with respect to 
                the development of oil shale and tar sands, including 
                the best available estimates of the impacts of 
                population growth and climate change on availability 
                and timing of freshwater throughout the Colorado River 
                Basin.
            ``(3) Public participation.--In preparing the report under 
        this subsection, the Secretary shall provide notice to, and 
        solicit comment from--
                    ``(A) the public;
                    ``(B) representatives of local government;
                    ``(C) representatives of industry; and
                    ``(D) other interested parties.
            ``(4) Participation by certain states.--In preparing the 
        report under this subsection, the Secretary shall--
                    ``(A) provide timely notice to, and solicit comment 
                from, the Governors of each of the States of Colorado, 
                Utah, and Wyoming;
                    ``(B) allow each of the Governors of Colorado, 
                Utah, and Wyoming a period of not less than 90 days to 
                provide comments on the report; and
                    ``(C) incorporate into the report submitted to 
                Congress under paragraph (1) any response of the 
                Secretary to those comments.
            ``(5) Incorporation of findings by nas.--In preparing the 
        report required by paragraph (1), the Secretary shall refer to 
        and use information and recommendations made by the National 
        Academy of Sciences in the report described in subsection (f).
    ``(f) National Academy of Sciences Report and Recommendations.--
            ``(1) In general.--Not later than 90 days after the date of 
        enactment of the Oil Shale and Tar Sands Leasing Act of 2008, 
        the Secretary of the Interior, in consultation with the 
        Secretary of Energy and the Administrator of the Environmental 
        Protection Agency, shall enter into an arrangement with the 
        National Academy of Sciences under which the Academy shall 
        conduct a study to assess the environmental and commercial 
        framework for oil shale and tar sands development in the United 
        States.
            ``(2) Matters to be addressed.--The study shall address--
                    ``(A) the importance of oil shale and tar sands 
                production to meet the energy needs of the United 
                States;
                    ``(B) the status of oil shale and tar sands 
                research and development efforts;
                    ``(C) the likely positive and negative implications 
                of the various technologies for the commercial 
                production of oil from oil shale and tar sands 
                resources, including the cumulative effects of other 
                energy infrastructure necessary for such production, 
                on--
                            ``(i) water resources (including surface 
                        water and groundwater), including the quantity 
                        and quality of water;
                            ``(ii) air quality, including greenhouse 
                        gas emissions;
                            ``(iii) human health;
                            ``(iv) local communities;
                            ``(v) wildlife habitat; and
                            ``(vi) regional energy needs;
                    ``(D) the timeframe for viable large-scale 
                commercial oil shale and tar sands production and 
                events that should serve as a precursor to commercial 
                leasing, such as development of commercially viable and 
                environmentally safe technologies;
                    ``(E) the feasibility and advisability of 
                initiating a pilot program for commercial leasing;
                    ``(F) energy sources needed for extraction 
                technologies and the resulting energy balance and 
                associated costs;
                    ``(G) potential greenhouse gas emissions for each 
                technology and sequestration opportunities;
                    ``(H) potential social and environmental impacts of 
                commercial oil shale and tar sands production, 
                including groundwater and surface water usage;
                    ``(I) workforce capacity requirements associated 
                with large-scale commercial development; and
                    ``(J) appropriate terms and conditions for 
                commercial oil shale leases on public land, including 
                royalty rates, diligent development requirements, 
                environmental conditions, and length of the lease term.
            ``(3) Recommendations.--The study shall--
                    ``(A) analyze the viability of, and timeframe for, 
                environmentally safe commercial oil shale and tar sands 
                development; and
                    ``(B) make recommendations as to changes, if any, 
                to Federal law (including regulations) needed to 
                facilitate the commercial production of oil shale and 
                tar sands resources in a manner that minimizes adverse 
                social and environmental impacts and ensures a fair 
                return to the public.
            ``(4) Completion of study.--The National Academy of 
        Sciences shall--
                    ``(A) not later than 18 months after the date of 
                enactment of the Oil Shale and Tar Sands Leasing Act of 
                2008, submit the findings and recommendations of the 
                study to the Secretary of the Interior, the Secretary 
                of Energy, and the Administrator of the Environmental 
                Protection Agency; and
                    ``(B) on completion of the study, make the results 
                of the study available to the public.
            ``(5) Report to congress.--Not later than 180 days after 
        receiving the results of the study, the Secretary of the 
        Interior, in consultation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency, shall 
        report to Congress on--
                    ``(A) the findings and recommendations of the 
                study;
                    ``(B) the agreement or disagreement of the 
                Secretary with each of the findings and recommendations 
                of the study; and
                    ``(C)(i) a plan and timeframe for implementing the 
                recommendations of the study through regulations or 
                otherwise; or
                    ``(ii) if the Secretary declines to implement a 
                recommendation, the justification for declining to 
                implement the recommendation.'';
            (4) in subsection (g) (as redesignated by paragraph (2))--
                    (A) by striking ``Not later'' and inserting the 
                following:
            ``(1) In general.--Not later'';
                    (B) in the first sentence, by striking ``of the 
                final regulation required by subsection (d)'' and 
                inserting ``of final regulations issued under this 
                section (taking into account the findings and 
                recommendations of the studies and reports required by 
                subsections (e) and (f) and the results of research and 
                development carried out under leases entered into for 
                that purpose)'';
                    (C) in the second sentence, by striking ``If the 
                Secretary finds sufficient support and interest exists 
                in a State,'' and inserting the following:
            ``(2) Lease sale.--If the Secretary finds sufficient 
        support and interest exists in a State and determines that the 
        technology for the development of tar sands and oil shale 
        resources is commercially and technically viable,'';
                    (D) in the third sentence, by striking ``Evidence 
                of'' and inserting the following:
            ``(3) Evidence of interest.--Evidence of''; and
                    (E) by adding at the end the following:
            ``(4) Recommendations of states on proposed lease sales and 
        development and production plans.--
                    ``(A) In general.--Any Governor of an affected 
                State or the executive of any affected local government 
                in the State may submit recommendations to the 
                Secretary regarding the size, timing, or location of a 
                proposed lease sale or with respect to a proposed 
                development and production plan.
                    ``(B) Forwarding local recommendations to 
                governor.--Prior to submitting recommendations to the 
                Secretary, the executive of any affected local 
                government in any affected State shall forward the 
                recommendations of the executive to the Governor of the 
                State.
                    ``(C) Deadline.--The recommendations shall be 
                submitted not later than 60 days after the date of 
                notice of the proposed lease sale or the date of 
                receipt of the development and production plan.
                    ``(D) Approval.--The Secretary shall accept the 
                recommendations of the Governor, and may accept the 
                recommendations of the executive of any affected local 
                government, if the Secretary determines, after having 
                provided an opportunity for consultation, that the 
                recommendations provide for a reasonable balance 
                between the national interest and the well-being of the 
                citizens of the affected State.
                    ``(E) Rationale.--The Secretary shall communicate 
                to the Governor, in writing, the reasons for the 
                determination of the Governor--
                            ``(i) to accept or reject the 
                        recommendations of the Governor; or
                            ``(ii) to implement any alternative means, 
                        identified in consultation with the Governor, 
                        to provide for a reasonable balance between the 
                        national interest and the well-being of the 
                        citizens of the affected State.
            ``(5) Environmental compliance.--An environmental impact 
        statement or similar analysis required under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall 
        be required--
                    ``(A) prior to any lease sale with respect to the 
                land proposed to be leased under the commercial leasing 
                program established under this subsection; and
                    ``(B) on a site-specific basis prior to the 
                authorization of any development activity on any leased 
                land.''; and
            (5) in subsection (i)(1)(B) (as redesignated by paragraph 
        (2)), by striking ``subsection (e)'' and inserting ``subsection 
        (g)''.