SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Virginia Access to Energy Act'' or 
the ``VA Energy Act''.

SEC. 2. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE SALE 220 ON 
              THE OCS OFF VIRGINIA.

    (a) In General.--The Secretary of the Interior shall conduct 
offshore oil and gas Lease Sale 220 under section 8 of the Outer 
Continental Shelf Lands Act (33 U.S.C. 1337) by as soon as practicable, 
but not later than one year, after the date the Secretary receives a 
petition from the Governor requesting that the lease sale be conducted.
    (b) Prohibition on Leasing Within 50 Miles of the Coastal Zone.--
The Secretary shall not issue any lease under this Act for any tract 
located within 50 miles of the coastal zone of the State unless 
requested by the Governor.
    (c) Prohibition on Conflicts With Military Operations.--The 
Secretary shall not make any tract available for leasing under this 
section if the Secretary of Defense determines that drilling activity 
on that tract would conflict with any military operation.

SEC. 3. DISPOSITION OF REVENUES.

    (a) Allocation, Generally.--Of the qualified revenues received by 
the United States each fiscal year--
            (1) 50 percent shall be used for non-Federal purposes as 
        provided in subsection (b); and
            (2) 50 percent shall be used for Federal purposes as 
        provided in subsection (c).
    (b) Use for Non-Federal Purposes.--
            (1) In general.--Of the qualified revenues referred to in 
        subsection (a)(1)--
                    (A) 75 shall be paid to the State, without further 
                appropriation;
                    (B) 12.5 percent--
                            (i) shall be used, without further 
                        appropriation, to provide financial assistance 
                        to the State in accordance with section 6 of 
                        the Land and Water Conservation Fund Act of 
                        1965 (16 U.S.C. 460l-8); and
                            (ii) 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); and
                    (C) 12.5 percent shall be deposited in a separate 
                account in the Treasury that shall be used, without 
                further appropriation, by the Secretary of the 
                Interior, in consultation with the Governor, to 
                mitigate for any environmental damage that occurs as a 
                result of extraction activities authorized under oil 
                and gas leases issued under this Act, regardless of 
                whether the damage is--
                            (i) reasonably foreseeable; or
                            (ii) caused by negligence or a natural 
                        disaster.
            (2) Use of payments to state.--Amounts paid to the State 
        under paragraph (1)(A) shall be used by the State for one or 
        more of the following:
                    (A) Education.
                    (B) Transportation.
                    (C) Reducing taxes.
                    (D) Coastal and environmental restoration.
                    (E) Energy infrastructure and projects.
                    (F) State seismic monitoring programs.
                    (G) Alternative energy development.
                    (H) Energy efficiency and conservation.
                    (I) Hurricane and natural disaster insurance 
                programs.
    (c) Use for Federal Purposes.--Of the qualified revenues referred 
to in subsection (a)(2)--
            (1) 50 percent shall be applied solely to reduce the 
        outstanding Federal debt; and
            (2) 50 percent shall be deposited into the Alterative 
        Energy Trust Fund established by section 4.

SEC. 4. ALTERNATIVE ENERGY TRUST FUND.

    (a) Establishment.--There is established in the Treasury a separate 
account that shall be known as the Alternative Energy Trust Fund.
    (b) Contents.--The account shall consist of amounts deposited into 
it under section 3(c)(2).
    (c) Use.--Amounts in the account may be used, without further 
appropriation, by the Secretary of Energy for making grants for the 
following:
            (1) Coal and related technologies program.
            (2) To improve the commercial value of forest biomass for 
        electric energy, useful heat, transportation fuels, and other 
        commercial purposes.
            (3) Solar and wind technologies.
            (4) Renewable energy.
            (5) Methane hydrate research.
            (6) Nuclear power loan guarantees.
            (7) Smart grid technology research, development, and 
        demonstration.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Coastal zone.--The term ``coastal zone'' has the 
        meaning that term has in the Outer Continental Shelf Lands Act 
        (43 U.S.C. 1301 et seq.).
            (2) Governor.--The term ``Governor'' means the Governor of 
        the State.
            (3) Lease sale 220.--The term ``Lease Sale 220'' means 
        proposed OCS Oil and Gas Lease Sale 220 in the Mid-Atlantic OCS 
        Planning Area in the area offshore the State, as included in 
        the OCS Oil and Gas Leasing Program, 2007-2012.
            (4) Qualified revenues.--The term ``qualified revenues'' 
        means all rentals, royalties, bonus bids, and other sums due 
        and payable to the United States under leases issued under this 
        Act.
            (5) State.--The term ``State'' means the State of Virginia.
Virginia Access to Energy Act or the VA Energy Act - Directs the Secretary of the Interior to conduct offshore oil and gas Lease Sale 220 on the Outer Continental Shelf (OCS) by as soon as practicable, but not later than one year, after the date the Secretary receives a petition from the governor requesting that the lease sale be conducted.

Provides for the disposition of revenues received from such lease sale for both federal and non-federal purposes, including payments to the state of Virginia.

Establishes in the Treasury the Alternative Energy Trust Fund, consisting of a portion of such revenues, which may be used for making grants for a coal and related technologies program, solar and wind technologies, and nuclear power loan guarantees, among other things.
To require the Secretary of the Interior to conduct proposed oil and gas Lease Sale 220 for areas of the outer Continental Shelf at least 50 miles beyond the coastal zone of Virginia, and for other purposes.