To establish a monetary prize for achievements in overcoming scientific and technical barriers associated with the development and production of alternative fuel vehicles, to remove certain restrictions on the exploration, development, and production of mineral resources on Federal lands, and to use the resulting Federal revenue to fund the monetary prize and reduce the public debt.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Innovation Act of 2008''.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) Eligible contestant.--The term ``eligible contestant'' 
        means--
                    (A) a citizen or resident alien of the United 
                States; or
                    (B) a private company that is incorporated in the 
                United States and that maintains a primary place of 
                business in the United States.
            (2) Outer continental shelf.--The term ``Outer Continental 
        Shelf'' has the meaning given such term in section 2 of the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. ALTERNATIVE FUEL VEHICLE INNOVATION PRIZE.

    (a) In General.--The Secretary shall carry out a program to be 
referred to as the ``Alternative Fuel Vehicle Innovation Prize'' to 
competitively award cash prizes to eligible contestants in conformity 
with this Act to advance the research, development, demonstration, and 
commercial application of alterative fuel vehicles.
    (b) Advertising and Solicitation of Competitors.--
            (1) Advertising.--The Secretary shall widely advertise 
        prize competitions to encourage broad participation in the 
        program carried out under subsection (a).
            (2) Announcement through federal register notice.--The 
        Secretary shall announce each prize competition by publishing a 
        notice in the Federal Register. This notice shall include the 
        subject of the competition, the duration of the competition, 
        the eligibility requirements for participation in the 
        competition, the process for participants to register for the 
        competition, the amount of the prize, and the criteria for 
        awarding the prize.
    (c) Prizes; Selection Criteria.--
            (1) Grand prize.--
                    (A) In general.--There shall be one grand prize of 
                $10,000,000,000.
                    (B) Prototype requirement.--In order to be eligible 
                to receive the grand prize under this section, an 
                eligible contestant must produce a prototype of an 
                alternative fuel vehicle.
                    (C) Selection criteria.--The Secretary shall 
                develop, in consultation with the Secretary of 
                Transportation and the Director of the National Science 
                Foundation, criteria on which to select the grand prize 
                winner. Such criteria shall include, at a minimum, the 
                following factors:
                            (i) The extent to which the prototype will 
                        reduce the reliance of the United States on 
                        foreign sources of energy.
                            (ii) The reduction in fuel costs of 
                        operating the prototype compared to a similar 
                        non-alternative fuel vehicle.
                            (iii) The extent to which the prototype 
                        meets or exceeds Federal safety standards.
                            (iv) Whether the prototype has a fuel 
                        economy of at least 100 miles per gallon.
                            (v) The extent to which the prototype 
                        limits hazardous emissions compared to a 
                        comparable non-alternative fuel vehicle.
                            (vi) The possibility of wide commercial 
                        application, including the production of 
                        vehicles that are not hindered by lack of 
                        refueling infrastructure.
                            (vii) The estimated cost of the prototype, 
                        if it were mass-produced, and whether such cost 
                        is equivalent to the cost of a comparable non-
                        alternative fuel vehicle.
                            (viii) Whether the prototype could be mass-
                        produced in the United States.
                    (D) Deadline for awarding grand prize.--The 
                Secretary shall set a deadline of not later than 5 
                years after the date of the enactment of this Act for 
                awarding the grand prize.
            (2) Additional prizes.--
                    (A) In general.--The Secretary may choose to award 
                no more than 5 additional prizes, with such additional 
                prizes having a total combined value of no more than 
                $100,000,000.
                    (B) Selection criteria.--Winners of additional 
                prizes shall be selected based on their demonstration 
                of--
                            (i) Substantial advancements in specific 
                        areas of alternative vehicle technologies, 
                        components, or systems; or
                            (ii) transformational changes in 
                        technology.
                    (C) Deadline for awarding additional prizes.--The 
                Secretary shall set a deadline of not later than 5 
                years after the date of the enactment of this Act for 
                awarding any additional prizes.
    (d) Judging.--
            (1) In general.--The Secretary shall appoint 5 individuals 
        to serve as judges for the purpose of selecting the prize 
        winners under this section. The judges shall select the grand 
        prize winner based on the criteria developed under subsection 
        (c)(1)(C) and shall select any additional prize winners based 
        on the criteria described under subsection (c)(2)(B).
            (2) Judge requirements.--In order to be appointed as a 
        judge, an individual may not have a financial interest in any 
        contestant and may not be an employee, officer, director, 
        agent, or family member of any contestant.
    (e) Report.--Not later than 60 days after all prizes are awarded 
under this section, the Secretary shall transmit a report to the 
Congress containing--
            (1) a list of award recipients;
            (2) a description of the technologies developed by the 
        award recipients; and
            (3) a description of the actions being taken toward the 
        commercial application of the technologies developed by the 
        award recipients.
    (f) Intellectual Property.--The Federal Government shall not, by 
virtue of offering or awarding a prize under this section, be entitled 
to any intellectual property rights derived as a consequence of, or in 
direct relation to, the participation by a participant in a competition 
authorized by this section. This subsection shall not be construed to 
prevent the Federal Government from negotiating a license for the use 
of intellectual property developed for a prize competition under this 
section. The Federal Government may seek assurances that technologies 
for which prizes are awarded under this section are offered for 
commercialization in the event an award recipient does not take, or is 
not expected to take within a reasonable time, effective steps to 
achieve practical application of the technology.
    (g) Waiver of Liability.--The Secretary may require participants to 
waive claims against the Federal Government for any injury, death, 
damage, or loss of property, revenue, or profits arising from the 
participants' participation in a competition under this section. The 
Secretary shall give notice of any waiver required under this section 
in the notice required by subsection (b)(2).
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated from the Innovation Trust Fund such sums as may be 
necessary to carry out the provisions of this section.

SEC. 4. INNOVATION TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the ``Innovation Trust 
Fund'', consisting of such amounts as may be appropriated or credited 
to the Innovation Trust Fund as provided for in this section.
    (b) Transfers to the Trust Fund.--The Secretary of the Treasury 
shall transfer to the Innovation Trust Fund out of the general fund of 
the Treasury of the United States amounts equivalent to the funds 
received in the Treasury that the Secretary of the Treasury, in 
consultation with the Secretary of the Interior, determines are 
attributable to the exploration for, development of, or production of 
oil, natural gas, or oil shale located on Federal lands, including 
submerged lands, in the Outer Continental Shelf or in the Arctic 
National Wildlife Refuge.
    (c) Investment.--
            (1) In general.--The Secretary of the Treasury shall invest 
        such portion of the Innovation Trust Fund as is not in his 
        judgment required to meet current withdrawals. Such investments 
        may be made only in interest-bearing obligations of the United 
        States. For such purpose, such obligations may be acquired--
                    (A) on original issue at the issue price; or
                    (B) by purchase of outstanding obligations at the 
                market price.
            (2) Sale of obligations.--Any obligation acquired by the 
        Innovation Trust Fund may be sold by the Secretary of the 
        Treasury at the market price.
            (3) Interest on certain proceeds.--The interest on, and the 
        proceeds from the sale or redemption of, any obligations held 
        in the Innovation Trust Fund shall be credited to and form a 
        part of the Innovation Trust Fund.
    (d) Expenditures From Trust Fund.--Amounts in the Innovation Trust 
Fund shall be made available, as provided by appropriation Acts--
            (1) to carry out the Alternative Fuel Vehicle Innovation 
        Prize described in section 3; and
            (2) to reduce the public debt pursuant to section 5.
    (e) Availability.--Amounts in the Innovation Trust Fund shall 
remain available until expended.

SEC. 5. PUBLIC DEBT REDUCTION.

    (a) In General.--The Secretary of the Treasury shall, from time to 
time, transfer to the special account established by section 3113(d) of 
title 31, United States Code, amounts in the Innovation Trust Fund that 
the Secretary of the Treasury determines are not required to carry out 
the Alternative Fuel Vehicle Innovation Prize under section 3.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated from the Innovation Trust Fund such sums as may be 
necessary to carry out this section.

SEC. 6. TERMINATION OF RESTRICTIONS ON OIL AND NATURAL GAS DEVELOPMENT 
              ON CERTAIN FEDERAL LANDS.

    (a) Outer Continental Shelf.--
            (1) Termination of laws prohibiting expenditures for 
        natural gas leasing and preleasing activities.--All provisions 
        of existing Federal law prohibiting the spending of 
        appropriated funds to conduct oil or natural gas leasing and 
        preleasing activities for any area of the Outer Continental 
        Shelf shall have no force or effect.
            (2) Revocation of existing presidential withdrawals.--All 
        existing withdrawals by the President under the authority of 
        section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1341) are hereby revoked and are no longer in effect with 
        respect to the leasing of areas for exploration for, and 
        development and production of, oil or natural gas.
            (3) Revocation of existing presidential authority.--All 
        authorities given to the President with respect to the leasing 
        of Federal submerged lands of the Outer Continental Shelf, 
        given under section 12(a) of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1341(a)), are hereby revoked, except in the 
        interest of national security or military operations.
    (b) Coastal Plain of Alaska.--Sections 1002(i) and 1003 of the 
Alaska National Interest Lands Conservation Act (16 U.S.C. 3142(i) and 
3143) are repealed.

Summary: American Innovation Act of 2008 - Directs the Secretary of Energy to carry out the Alternative Fuel Vehicle Innovation Prize program to award cash prizes to eligible contestants to advance the research, development, demonstration, and commercial application of alternative fuel vehicles, including: (1) a $10 billion grand prize for the production of a prototype alternative fuel vehicle meeting fuel efficiency, emissions, cost, and commercial application criteria. And (2) $100 million in additional prizes for substantial advancements in specific areas of alternative vehicle technologies, components, or systems or for transformational changes in technology. Establishes the Innovation Trust Fund in the Treasury, to be funded with amounts attributable to the exploration for, development of, or production of oil, natural gas, or oil shale located on federal lands in the Outer Continental Shelf (OCS) or in the Arctic National Wildlife Refuge (ANWR). Directs the Secretary of the Treasury to transfer amounts in the Fund that are not required to carry out this Act to the account for public debt reduction. Declares without force or effect all existing federal law prohibiting spending appropriated funds to conduct oil or natural gas leasing and preleasing activities for any area of OCS. Revokes all presidential: (1) withdrawals from leasing under the Outer Continental Shelf Lands Act of areas for exploration for, and development and production of, oil or natural gas. And (2) authorities to withdraw from disposition any unleased OCS lands, except in the interest of natural security or military operations. Amends the Alaska National Interest Lands Conservation Act to repeal provisions: (1) withdrawing public lands within the coastal plain of ANWR from entry or appropriation under US mining laws and from operation of US mineral leasing laws. And (2) prohibiting production, or development leading to production, of oil and gas from ANWR.