To provide a large-scale national effort to improve the state of our national security, economy and environment by providing market incentives to produce and deploy alternative energy solutions and reduce our dependence on foreign oil.

on the Budget.--
            (1) Upon the enactment of this Act, the chairmen of the 
        Committees on the Budget of the House and the Senate shall 
        reduce the allocation of new budget authority and the outlays 
        flowing therefrom to the Committees on Appropriations of the 
        House and the Senate set forth pursuant to section 302(a) of 
        the Congressional Budget Act of 1974 for fiscal year 2009 by 
        $14.8 billion.
            (2) The chairmen of the Committees on the Budget of the 
        House and the Senate shall make any other necessary and 
        conforming adjustments in the concurrent resolution on the 
        budget for fiscal year 2009.

SEC. 502. CONSERVATION OF RESOURCES FEES.

    (a) Establishment of Fees.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary of the Interior by 
        regulation shall establish--
                    (A) a conservation of resources fee for producing 
                Federal oil and gas leases in the Gulf of Mexico; and
                    (B) a conservation of resources fee for 
                nonproducing Federal oil and gas leases in the Gulf of 
                Mexico.
            (2) Producing lease fee terms.--The fee under paragraph 
        (1)(A)--
                    (A) subject to subparagraph (C), shall apply to 
                covered leases that are producing leases;
                    (B) shall be set at $9 per barrel for oil and $1.25 
                per million Btu for gas, respectively, in 2005 dollars; 
                and
                    (C) shall apply only to production of oil or gas 
                occurring--
                            (i) in any calendar year in which the 
                        arithmetic average of the daily closing prices 
                        for light sweet crude oil on the New York 
                        Mercantile Exchange (NYMEX) exceeds $34.73 per 
                        barrel for oil and $4.34 per million Btu for 
                        gas in 2005 dollars; and
                            (ii) on or after October 1, 2006.
            (3) Nonproducing lease fee terms.--The fee under paragraph 
        (1)(B)--
                    (A) subject to subparagraph (C), shall apply to 
                leases that are nonproducing leases;
                    (B) shall be set at $3.75 per acre per year in 2005 
                dollars; and
                    (C) shall apply on and after October 1, 2006.
            (4) Treatment of receipts.--Amounts received by the United 
        States as fees under this subsection shall be treated as 
        offsetting receipts.
    (b) Covered Lease Defined.--In this section the term ``covered 
lease'' means a lease for oil or gas production in the Gulf of Mexico 
that is--
            (1) in existence on the date of enactment of this Act;
            (2) issued by the Department of the Interior under section 
        304 of the Outer Continental Shelf Deep Water Royalty Relief 
        Act (43 U.S.C. 1337 note; Public Law 104-58); and
            (3) not subject to limitations on royalty relief based on 
        market price that are equal to or less than the price 
        thresholds described in clauses (v) through (vii) of section 
        8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337(a)(3)(C)).
    (c) Royalty Suspension Provisions.--The Secretary of the Interior 
shall agree to a request by any lessee to amend any lease issued for 
Central and Western Gulf of Mexico tracts during the period of January 
1, 1998, through December 31, 1999, to incorporate price thresholds 
applicable to royalty suspension provisions, or amend existing price 
thresholds, in the amount of $34.73 per barrel (2005 dollars) for oil 
and for natural gas of $4.34 per million Btu (2005 dollars).

SEC. 503. REDUCTION IN PAYMENT ACRES FOR DIRECT AND COUNTER-CYCLICAL 
              PAYMENTS UNDER DEPARTMENT OF AGRICULTURE COMMODITY 
              PROGRAMS.

    (a) Program Crops.--Section 1001(11) of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8702(11)) is amended--
            (1) in subparagraph (A), by striking ``85 percent'' and 
        inserting ``84 percent''; and
            (2) in subparagraph (B), by striking ``83.3 percent'' and 
        inserting ``82.3 percent''.
    (b) Peanuts.--Section 1301(5) of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8751(5)) is amended--
            (1) in subparagraph (A), by striking ``85 percent'' and 
        inserting ``84 percent''; and
            (2) in subparagraph (B), by striking ``83.3 percent'' and 
        inserting ``82.3 percent''.

SEC. 504. REDUCTION IN MAXIMUM AMOUNT OF DIRECT, COUNTER-CYCLICAL, AND 
              ACRE PAYMENTS PAID TO PRODUCERS UNDER DEPARTMENT OF 
              AGRICULTURE COMMODITY PROGRAMS.

    (a) Program Crops.--Section 1001(b) of the Food Security Act of 
1985 (7 U.S.C. 1308(b)) is amended--
            (1) in paragraph (1)(A), by striking ``$40,000'' and 
        inserting ``$20,000'';
            (2) in paragraph (2), by striking ``$65,000'' and inserting 
        ``$32,500''; and
            (3) in paragraph (3)(A), by striking ``$65,000'' and 
        inserting ``$32,500''.
    (b) Peanuts.--Section 1001(c) of the Food Security Act of 1985 (7 
U.S.C. 1308(b)) is amended--
            (1) in paragraph (1)(A), by striking ``$40,000'' and 
        inserting ``$20,000'';
            (2) in paragraph (2), by striking ``$65,000'' and inserting 
        ``$32,500''; and
            (3) in paragraph (3)(A), by striking ``$65,000'' and 
        inserting ``$32,500''.

SEC. 505. CONSOLIDATION OF MILITARY EXCHANGE STORES SYSTEM.

    (a) Consolidation.--Section 2487(b) of title 10, United States 
Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
    ``(2) Not later than two years after the date of the enactment of 
the Apollo Energy Independence Act of 2008, the Secretary of Defense 
shall complete the consolidation of the exchange stores system, 
including the Army and Air Force Exchange Service, the Navy Exchange 
Service Command, and Marine Corps exchanges, into a single 
administrative entity to improve efficiencies and enhance customer 
service.''.
    (b) Operating Costs.--Section 2491(b) of title 10, United States 
Code, is amended by adding at the end the following new sentence: 
``Following consolidation of the exchange stores system, as required by 
section 2487(b) of this title, all operating costs of the exchange 
stores system shall be covered by sales revenues generated by the 
system or other nonappropriated fund instrumentalities of the 
Department of Defense.''.

SEC. 506. REVISED PRICING STRUCTURE FOR DEPOT-LEVEL ACTIVITIES OF THE 
              DEPARTMENT OF DEFENSE.

    (a) Pricing Policy.--Chapter 146 of title 10, United States Code, 
is amended by inserting after section 2470 the following new section:
``Sec. 2471. Depot-level activities of the Department of Defense: 
              pricing policy for services rendered
    ``A depot-level activity of the Department of Defense may charge 
only for the incremental cost of repairs provided by the depot-level 
activity instead of including charges for components (called depot-
level repairables) for labor, materials, and transportation and a share 
of the fixed costs of overhead. Fixed costs, including overhead, shall 
be covered by an annual flat fee to customers.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2470 the following new item:

``2471. Depot-level activities of the Department of Defense: pricing 
                            policy for services rendered.''.

SEC. 507. RESTRICT UNIVERSAL SERVICE FUND SUPPORT TO 2 CONNECTIONS PER 
              HOUSEHOLD.

    (a) In General.--Section 254(c) of the Communications Act of 1934 
(47 U.S.C. 254(c)) is amended by adding at the end the following new 
paragraph:
            ``(4) Exception.--In carrying out paragraph (1), the 
        Commission shall promulgate regulations to specifically exclude 
        the receipt of universal service support by any eligible 
        telecommunications carrier where such support would provide for 
        more than 2 connections per household.''.
    (b) Disposition of Savings.--
            (1) Savings calculation.--The Commission shall direct the 
        Administrator to determine the amount of the net savings 
        resulting from the implementation of section 254(c)(4) of the 
        Communications Act of 1934 (as added by subsection (a)).
            (2) Remission to the treasury.--The Commission shall direct 
        the Administrator to remit to the Treasury of the United States 
        an amount equivalent to the amount determined under paragraph 
        (1).
            (3) No recalculation.--The Commission shall direct the 
        Administrator to not make any adjustment to the amount of 
        universal service support contributed by telecommunications 
        carriers under section 254(d) of the Communications Act of 1934 
        (47 U.S.C. 254(d)) to take into account the cost savings 
        resulting from section 254(c)(4) of such Act.
    (c) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator designated by the Commission to administer 
        Federal universal service support programs pursuant to section 
        254 of the Communications Act of 1934 (47 U.S.C. 254).
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.

SEC. 508. IMPROVE TREASURY PAYMENT TRANSACTION INTEGRITY.

    Section 1113(k)(1) of the Right to Financial Privacy Act of 1978 
(12 U.S.C. 3413(k)(1)) is amended by inserting ``or for purposes of 
tracing or recovering improper payments and collections by the 
Secretary of the Treasury'' before the period at the end.

SEC. 509. MODERNIZE TREASURY CASH INVESTMENT PRACTICES.

    Section 323 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) Repurchase Market Investments.--In addition to the 
investments authorized under subsection (a), the Secretary may invest 
any part of the operating cash of the Treasury in repurchase 
transactions with acceptable parties in the repurchase market.''.

SEC. 510. FOOD SAFETY AND INSPECTION SERVICE USER FEES.

    The Secretary of Agriculture shall establish and collect user fees 
for inspection services provided under the Federal Meat Inspection Act 
(21 U.S.C. 601 et seq.), the Poultry Products Inspection Act (21 U.S.C. 
451 et seq.), and the Egg Products Inspection Act (21 U.S.C. 1031 et 
seq.).

Summary: Apollo Energy Independence Act of 2008 - Amends the Internal Revenue Code to provide tax incentives for energy conservation and production, including provisions to: (1) make permanent the tax credit for producing electricity from renewable resources and to include marine and hydrokinetic renewable energy as a resource for purposes of such credit. (2) make permanent the energy tax credit for solar energy, fuel cell, and microturbine property. (3) allow a new energy tax credit for combined heat and power system property. (4) provide for the issuance of new clean renewable energy bonds, (5) increase the tax credit for advanced nuclear power production. (6) make permanent the tax credits for residential energy efficient property, energy efficiency existing homes, the production of energy efficient household appliances, and the tax deduction for energy efficient commercial buildings. (7) allow tax credits for new alternative motor vehicles, including qualified plug-in electric drive motor vehicles, vehicles that achieve a fuel economy standard of 100 miles per gallon, and advanced technology motor vehicles. (8) allow tax credits for the production of cellulosic biofuel and for hydrogen infrastructure costs. (9) increase and make permanent the tax credit for alternative fuel vehicle refueling property expenditures. And (10) allow employers a tax credit for providing transit passes to employees. Amends the Energy Policy Act of 2005 to provide full loan guarantees for the construction of advanced nuclear energy facilities. Establishes in the Treasury the Petroleum Reduction Trust Fund. Allocates 90 of civil penalties for automobile fuel economy violations to such Fund for retail purchases of ethanol, biodiesel, and other alternative fuels. Directs the Secretary of Energy to: (1) carry out research programs for onboard storage of hydrogen in light-duty motor vehicles and for the development of plug-in electric drive vehicle technology. And (2) study daily and seasonal energy costs in public schools. Amends the Harmonized Tariff Schedule of the United States to extend the tariff duty on ethanol until December 31, 2010. Directs the Administrator of the Environmental Protection Agency (EPA) to establish a grant program for green school construction and improvement. Sets forth revenue offset provisions, including: (1) a moratorium on earmarks in the 110th Congress. (2) establishment of fees for oil and gas leases in the Gulf of Mexico and user fees for certain food safety and inspection services. (3) a reduction in payments under the Department of Agriculture commodity program, (4) consolidation of Department of Defense exchange stores system, and (5) a limitation of universal service fund support.