I 

113TH CONGRESS 

1ST SESSION H. R. 2081 

To secure unrestricted reliable energy for American consumption and 

transmission. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2013 

Mr. THORNBERRY introduced the following bill; which was referred to the 

Committee on Natural Resources, and in addition to the Committees on 

Ways and Means and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To secure unrestricted reliable energy for American 

consumption and transmission. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘No More Excuses Energy Act of 2013’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—REFINERIES 


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Sec. 101. Tax-exempt financing of domestic use oil refinery facilities. 

Sec. 102. Designation and availability of Federal lands for oil and natural gas 

refineries. 

TITLE II—ALTERNATIVE ENERGY 

Sec. 201. Phaseout of credit for electricity produced from certain renewable resources. 

Sec. 202. Equalization of excise tax on liquefied natural gas and per energy 

equivalent of diesel. 

Sec. 203. Extension of alternative fuel credit. 

TITLE III—NUCLEAR ENERGY 

Sec. 301. Waste confidence. 

Sec. 302. ASME Nuclear Certification credit. 

TITLE IV—DRILLING 

Subtitle A—Tax Provisions 

Sec. 401. Credit for producing fuel from nonconventional sources to apply to 

gas produced onshore from formations more than 15,000 feet 

deep. 

Sec. 402. Repeal of minimum capture requirement for carbon dioxide sequestration credit. 

Subtitle B—Oil and Gas Development on the Coastal Plain of Alaska 

Sec. 411. Short title. 

Sec. 412. Definitions. 

Sec. 413. Leasing program for lands within the Coastal Plain. 

Sec. 414. Lease sales. 

Sec. 415. Grant of leases by the Secretary. 

Sec. 416. Lease terms and conditions. 

Sec. 417. Coastal plain environmental protection. 

Sec. 418. Expedited judicial review. 

Sec. 419. Federal and State distribution of revenues. 

Sec. 420. Rights-of-way across the Coastal Plain. 

Sec. 421. Conveyance. 

Sec. 422. Local government impact aid and community service assistance. 

Subtitle C—Offshore Oil and Gas Development 

Sec. 431. Repeal of moratorium on oil and gas leasing in the Gulf of Mexico. 

Sec. 432. Inclusion of areas in 2012–2017 outer Continental Shelf oil and gas 

leasing program. 

TITLE V—GREENHOUSE GAS REGULATION 

Sec. 501. No regulation of emissions of greenhouse gases under Clean Air Act. 


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1 TITLE I—REFINERIES 

2 SEC. 101. TAX-EXEMPT FINANCING OF DOMESTIC USE OIL 

3 REFINERY FACILITIES. 

4 (a) IN GENERAL.— 

5 (1) TREATMENT AS EXEMPT FACILITY BOND.— 

6 Subsection (a) of section 142 of the Internal Rev7 enue Code of 1986 (relating to exempt facility bond) 

8 is amended by striking ‘‘or’’ at the end of paragraph 

9 (14), by striking the period at the end of paragraph 

10 (15) and inserting ‘‘, or’’, and by inserting at the 

11 end the following new paragraph: 

12 ‘‘(16) domestic use oil refinery facilities.’’. 

13 (2) DOMESTIC USE OIL REFINERY FACILI14 TIES.—Section 142 of such Code is amended by 

15 adding at the end the following new subsection: 

16 ‘‘(n) DOMESTIC USE OIL REFINERY FACILITIES.— 

17 ‘‘(1) IN GENERAL.—For purposes of subsection 

18 (a)(16), the term ‘domestic use oil refinery facility’ 

19 means any facility in the United States— 

20 ‘‘(A) which processes liquid fuel from 

21 crude oil, and 

22 ‘‘(B) all of the output of which it is rea23 sonably certain ultimate consumption will occur 

24 in the United States. 


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1 ‘‘(2) ELECTION TO TERMINATE TAX-EXEMPT

2 BOND FINANCING BY CERTAIN REFINERIES.—In the 

3 case of a facility financed with bonds which would 

4 cease to be tax-exempt by reason of the failure to 

5 meet the domestic use requirement of this sub6 section, rules similar to the rules of subsection (f)(4) 

7 shall apply for purposes of this section.’’. 

8 (b) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to bonds issued after the date of 

10 the enactment of this Act. 

11 SEC. 102. DESIGNATION AND AVAILABILITY OF FEDERAL 

12 LANDS FOR OIL AND NATURAL GAS REFIN13 ERIES. 

14 (a) DESIGNATION.—Within 18 months after the date 

15 of enactment of this Act, the President shall designate at 

16 least 10 sites on Federal lands that are suitable for the 

17 siting of an oil refinery or natural gas refinery (or both). 

18 (b) AVAILABILITY OF LANDS.—Within 24 months 

19 after the date of enactment of this Act, the President shall 

20 make each site designated under subsection (a) available 

21 to the private sector for construction of an oil refinery or 

22 natural gas refinery (or both), as appropriate. 


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1 TITLE II—ALTERNATIVE 

2 ENERGY 

3 SEC. 201. PHASEOUT OF CREDIT FOR ELECTRICITY PRO4 DUCED FROM CERTAIN RENEWABLE RE5 SOURCES. 

6 (a) 5-YEAR EXTENSION.—Paragraph (1) of section 

7 45(d) of the Internal Revenue Code of 1986 is amended 

8 by striking ‘‘January 1, 2014’’ in paragraph (1) and in9 serting ‘‘January 1, 2019’’. 

10 (b) PHASEOUT OF CREDIT.—Subsection (e) of sec11 tion 45 of such Code is amended by adding at the end 

12 the following new paragraph: 

13 ‘‘(12) PHASEOUT OF CREDIT FOR WIND EN14 ERGY.— 

15 ‘‘(A) IN GENERAL.—In the case of facili16 ties to which subsection (d)(1) applies and the 

17 construction of which begins after December 

18 31, 2013, the number of cents taken into ac19 count under subsection (a) for taxable years 

20 ending after such date shall be only the applica21 ble percentage of such number (determined 

22 without regard to this paragraph) for such 

23 year. If any amount determined under the pre24 ceding sentence is not a multiple of 0.01 cent, 


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1 such amount shall be rounded to the nearest 

2 multiple of 0.01 cent. 

3 ‘‘(B) APPLICABLE PERCENTAGE.—For 

4 purposes of subparagraph (A)— 

‘‘In the case of facilities the construction of which begins in: 

The applicable percentage is: 

2014 ................................................................................................ 90

2015 ................................................................................................ 80

2016 ................................................................................................ 70

2017 or 2018 .................................................................................. 60’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to property originally placed in 

7 service on or after January 1, 2013. 

8 SEC. 202. EQUALIZATION OF EXCISE TAX ON LIQUEFIED 

9 NATURAL GAS AND PER ENERGY EQUIVA10 LENT OF DIESEL. 

11 (a) IN GENERAL.—Subparagraph (B) of section 

12 4041(a)(2) of the Internal Revenue Code of 1986 is 

13 amended by striking the period at the end of clause (ii) 

14 and inserting ‘‘, and’’, and by inserting after clause (ii) 

15 the following new clause: 

16 ‘‘(iii) in the case of liquefied natural 

17 gas, 24.3 cents per energy equivalent of a 

18 gallon of diesel.’’. 

19 (b) ENERGY EQUIVALENT OF A GALLON OF DIESEL

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1 tion 4041(a) of such Code is amended by adding at the 

2 end the following: 

3 ‘‘(C) ENERGY EQUIVALENT OF A GALLON

4 OF DIESEL.—For purposes of this paragraph, 

5 the term ‘energy equivalent of a gallon of diesel’ 

6 means, with respect to a liquefied natural gas 

7 fuel, the amount of such fuel having a Btu con8 tent of 128,700 (lower heating value). 

9 ‘‘(D) ADMINISTRATIVE PROVISIONS.—For 

10 purposes of applying this title with respect to 

11 the taxes imposed by this subsection, references 

12 to any liquid subject to tax under this sub13 section shall be treated as including references 

14 to liquefied natural gas subject to tax under 

15 this paragraph.’’. 

16 (c) CONFORMING AMENDMENTS.—Section 

17 4041(a)(2)(B)(ii) of such Code is amended— 

18 (1) by striking ‘‘liquefied natural gas,’’, and 

19 (2) by striking ‘‘peat), and’’ and inserting 

20 ‘‘peat) and’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to any sale or use of liquefied nat23 ural gas after 14 days after the date of the enactment 

24 of this Act. 


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1 SEC. 203. EXTENSION OF ALTERNATIVE FUEL CREDIT. 

2 (a) IN GENERAL.—Paragraph (5) of section 6426(d) 

3 of the Internal Revenue Code of 1986 (relating to alter4 native fuel credit) is amended by striking ‘‘December 31, 

5 2013’’ and all that follows and inserting ‘‘December 31, 

6 2014.’’. 

7 (b) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to fuel sold or used after December 

9 31, 2013. 

10 TITLE III—NUCLEAR ENERGY 

11 SEC. 301. WASTE CONFIDENCE. 

12 The Nuclear Regulatory Commission may not deny 

13 an application for a license, permit, or other authorization 

14 under the Atomic Energy Act of 1954 on the grounds that 

15 sufficient capacity does not exist, or will not become avail16 able on a timely basis, for disposal of spent nuclear fuel 

17 or high-level radioactive waste from the facility for which 

18 the license, permit, or other authorization is sought. 

19 SEC. 302. ASME NUCLEAR CERTIFICATION CREDIT. 

20 (a) IN GENERAL.—Subpart D of part IV of sub21 chapter A of chapter 1 of the Internal Revenue Code of 

22 1986 (relating to business related credits) is amended by 

23 adding at the end the following new section: 

24 ‘‘SEC. 45S. ASME NUCLEAR CERTIFICATION CREDIT. 

25 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

26 ASME Nuclear Certification credit determined under this 


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1 section for any taxable year is an amount equal to 15 per2 cent of the qualified nuclear expenditures paid or incurred 

3 by the taxpayer. 

4 ‘‘(b) QUALIFIED NUCLEAR EXPENDITURES.—For 

5 purposes of this section, the term ‘qualified nuclear ex6 penditures’ means any expenditure related to— 

7 ‘‘(1) obtaining a certification under the Amer8 ican Society of Mechanical Engineers Nuclear Com9 ponent Certification program, or 

10 ‘‘(2) increasing the taxpayer’s capacity to con11 struct, fabricate, assemble, or install components— 

12 ‘‘(A) for any facility which uses nuclear en13 ergy to produce electricity, and 

14 ‘‘(B) with respect to the construction, fab15 rication, assembly, or installation of which the 

16 taxpayer is certified under such program. 

17 ‘‘(c) TIMING OF CREDIT.—The credit allowed under 

18 subsection (a) for any expenditures shall be allowed— 

19 ‘‘(1) in the case of a qualified nuclear expendi20 ture described in subsection (b)(1), for the taxable 

21 year of such certification, and 

22 ‘‘(2) in the case of any other qualified nuclear 

23 expenditure, for the taxable year in which such ex24 penditure is paid or incurred. 

25 ‘‘(d) SPECIAL RULES.— 


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1 ‘‘(1) BASIS ADJUSTMENT.—For purposes of 

2 this subtitle, if a credit is allowed under this section 

3 for an expenditure, the increase in basis which would 

4 result (but for this subsection) for such expenditure 

5 shall be reduced by the amount of the credit allowed 

6 under this section. 

7 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc8 tion shall be allowed under this chapter for any 

9 amount taken into account in determining the credit 

10 under this section. 

11 ‘‘(e) TERMINATION.—This section shall not apply to 

12 any expenditures paid or incurred in taxable years begin13 ning after December 31, 2019.’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) Subsection (b) of section 38 of such Code 

16 is amended by striking ‘‘plus’’ at the end of para17 graph (35), by striking the period at the end of 

18 paragraph (36) and inserting ‘‘, plus’’, and by add19 ing at the end the following new paragraph: 

20 ‘‘(37) the ASME Nuclear Certification credit 

21 determined under section 45S(a).’’. 

22 (2) Subsection (a) of section 1016 (relating to 

23 adjustments to basis) of such Code is amended by 

24 striking ‘‘and’’ at the end of paragraph (36), by 

25 striking the period at the end of paragraph (37) and 


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1 inserting ‘‘, and’’, and by adding at the end the fol2 lowing new paragraph: 

3 ‘‘(38) to the extent provided in section 

4 45S(d)(1).’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to expenditures paid or incurred 

7 in taxable years beginning after December 31, 2012. 

8 TITLE IV—DRILLING 

9 Subtitle A—Tax Provisions 

10 SEC. 401. CREDIT FOR PRODUCING FUEL FROM NON11 CONVENTIONAL SOURCES TO APPLY TO GAS 

12 PRODUCED ONSHORE FROM FORMATIONS 

13 MORE THAN 15,000 FEET DEEP. 

14 (a) IN GENERAL.—Subparagraph (B) of section 

15 45K(c)(1) of the Internal Revenue Code of 1986 is amend16 ed by striking ‘‘or’’ at the end of clause (i), by striking 

17 ‘‘and’’ at the end of clause (ii) and inserting ‘‘or’’, and 

18 by inserting after clause (ii) the following new clause: 

19 ‘‘(iii) an onshore well from a forma20 tion more than 15,000 feet deep, and’’. 

21 (b) ELIGIBLE DEEP GAS WELLS.—Section 45K of 

22 such Code is amended by adding at the end the following 

23 new subsection: 


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1 ‘‘(h) ELIGIBLE DEEP GAS WELLS.—In the case of 

2 a well producing qualified fuel described in subsection 

3 (c)(1)(B)(iii)— 

4 ‘‘(1) for purposes of subsection (e)(1)(A), such 

5 well shall be treated as drilled before January 1, 

6 1993, if such well is drilled after the date of the en7 actment of this subsection, and 

8 ‘‘(2) subsection (e)(2) shall not apply.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years ending after the 

11 date of the enactment of this Act. 

12 SEC. 402. REPEAL OF MINIMUM CAPTURE REQUIREMENT 

13 FOR CARBON DIOXIDE SEQUESTRATION 

14 CREDIT. 

15 (a) IN GENERAL.—Subsection (c) of section 45Q of 

16 the Internal Revenue Code of 1986 is amended by insert17 ing ‘‘and’’ at the end of paragraph (1), by striking ‘‘, and’’ 

18 at the end of paragraph (2) and inserting a period, and 

19 by striking paragraph (3). 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to carbon dioxide captured after 

22 the date of the enactment of this Act. 


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1 Subtitle B—Oil and Gas Develop2 ment on the Coastal Plain of 

3 Alaska 

4 SEC. 411. SHORT TITLE. 

5 This subtitle may be cited as the ‘‘American-Made 

6 Energy and Good Jobs Act’’. 

7 SEC. 412. DEFINITIONS. 

8 In this subtitle: 

9 (1) COASTAL PLAIN.—The term ‘‘Coastal 

10 Plain’’ means that area described in appendix I to 

11 part 37 of title 50, Code of Federal Regulations. 

12 (2) SECRETARY.—The term ‘‘Secretary’’, except 

13 as otherwise provided, means the Secretary of the 

14 Interior or the Secretary’s designee. 

15 SEC. 413. LEASING PROGRAM FOR LANDS WITHIN THE 

16 COASTAL PLAIN. 

17 (a) IN GENERAL.—The Secretary shall take such ac18 tions as are necessary— 

19 (1) to establish and implement, in accordance 

20 with this subtitle and acting through the Director of 

21 the Bureau of Land Management in consultation 

22 with the Director of the United States Fish and 

23 Wildlife Service, a competitive oil and gas leasing 

24 program that will result in an environmentally sound 

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1 duction of the oil and gas resources of the Coastal 

2 Plain; and 

3 (2) to administer the provisions of this subtitle 

4 through regulations, lease terms, conditions, restric5 tions, prohibitions, stipulations, and other provisions 

6 that ensure the oil and gas exploration, development, 

7 and production activities on the Coastal Plain will 

8 result in no significant adverse effect on fish and 

9 wildlife, their habitat, subsistence resources, and the 

10 environment, including, in furtherance of this goal, 

11 by requiring the application of the best commercially 

12 available technology for oil and gas exploration, de13 velopment, and production to all exploration, devel14 opment, and production operations under this sub15 title in a manner that ensures the receipt of fair 

16 market value by the public for the mineral resources 

17 to be leased. 

18 (b) REPEAL.— 

19 (1) REPEAL.—Section 1003 of the Alaska Na20 tional Interest Lands Conservation Act of 1980 (16 

21 U.S.C. 3143) is repealed. 

22 (2) CONFORMING AMENDMENT.—The table of 

23 contents in section 1 of such Act is amended by 

24 striking the item relating to section 1003. 


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1 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER2 TAIN OTHER LAWS.— 

3 (1) COMPATIBILITY.—For purposes of the Na4 tional Wildlife Refuge System Administration Act of 

5 1966 (16 U.S.C. 668dd et seq.), the oil and gas 

6 leasing program and activities authorized by this 

7 section in the Coastal Plain are deemed to be com8 patible with the purposes for which the Arctic Na9 tional Wildlife Refuge was established, and no fur10 ther findings or decisions are required to implement 

11 this determination. 

12 (2) ADEQUACY OF THE DEPARTMENT OF THE

13 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

14 STATEMENT.—The ‘‘Final Legislative Environ15 mental Impact Statement’’ (April 1987) on the 

16 Coastal Plain prepared pursuant to section 1002 of 

17 the Alaska National Interest Lands Conservation 

18 Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) 

19 of the National Environmental Policy Act of 1969 

20 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the re21 quirements under the National Environmental Policy 

22 Act of 1969 that apply with respect to prelease ac23 tivities, including actions authorized to be taken by 

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1 thorized by this subtitle before the conduct of the 

2 first lease sale. 

3 (3) COMPLIANCE WITH NEPA FOR OTHER AC4 TIONS.—Before conducting the first lease sale under 

5 this subtitle, the Secretary shall prepare an environ6 mental impact statement under the National Envi7 ronmental Policy Act of 1969 with respect to the ac8 tions authorized by this subtitle that are not re9 ferred to in paragraph (2). Notwithstanding any 

10 other law, the Secretary is not required to identify 

11 nonleasing alternative courses of action or to analyze 

12 the environmental effects of such courses of action. 

13 The Secretary shall only identify a preferred action 

14 for such leasing and a single leasing alternative, and 

15 analyze the environmental effects and potential miti16 gation measures for those two alternatives. The 

17 identification of the preferred action and related 

18 analysis for the first lease sale under this subtitle 

19 shall be completed within 18 months after the date 

20 of enactment of this Act. The Secretary shall only 

21 consider public comments that specifically address 

22 the Secretary’s preferred action and that are filed 

23 within 20 days after publication of an environmental 

24 analysis. Notwithstanding any other law, compliance 

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1 ments for the analysis and consideration of the envi2 ronmental effects of proposed leasing under this sub3 title. 

4 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR5 ITY.—Nothing in this subtitle shall be considered to ex6 pand or limit State and local regulatory authority. 

7 (e) SPECIAL AREAS.— 

8 (1) IN GENERAL.—The Secretary, after con9 sultation with the State of Alaska, the city of 

10 Kaktovik, and the North Slope Borough, may des11 ignate up to a total of 45,000 acres of the Coastal 

12 Plain as a Special Area if the Secretary determines 

13 that the Special Area is of such unique character 

14 and interest so as to require special management 

15 and regulatory protection. The Secretary shall des16 ignate as such a Special Area the Sadlerochit Spring 

17 area, comprising approximately 4,000 acres. 

18 (2) MANAGEMENT.—Each such Special Area 

19 shall be managed so as to protect and preserve the 

20 area’s unique and diverse character including its 

21 fish, wildlife, and subsistence resource values. 

22 (3) EXCLUSION FROM LEASING OR SURFACE

23 OCCUPANCY.—The Secretary may exclude any Spe24 cial Area from leasing. If the Secretary leases a Spe25 cial Area, or any part thereof, for purposes of oil 


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1 and gas exploration, development, production, and 

2 related activities, there shall be no surface occu3 pancy of the lands comprising the Special Area. 

4 (4) DIRECTIONAL DRILLING.—Notwithstanding 

5 the other provisions of this subsection, the Secretary 

6 may lease all or a portion of a Special Area under 

7 terms that permit the use of horizontal drilling tech8 nology from sites on leases located outside the Spe9 cial Area. 

10 (f) LIMITATION ON CLOSED AREAS.—The Sec11 retary’s sole authority to close lands within the Coastal 

12 Plain to oil and gas leasing and to exploration, develop13 ment, and production is that set forth in this subtitle. 

14 (g) REGULATIONS.— 

15 (1) IN GENERAL.—The Secretary shall pre16 scribe such regulations as may be necessary to carry 

17 out this subtitle, including rules and regulations re18 lating to protection of the fish and wildlife, their 

19 habitat, subsistence resources, and environment of 

20 the Coastal Plain, by no later than 15 months after 

21 the date of enactment of this Act. 

22 (2) REVISION OF REGULATIONS.—The Sec23 retary shall periodically review and, if appropriate, 

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1 ronmental, or engineering data that come to the Sec2 retary’s attention. 

3 SEC. 414. LEASE SALES. 

4 (a) IN GENERAL.—Lands may be leased pursuant to 

5 this subtitle to any person qualified to obtain a lease for 

6 deposits of oil and gas under the Mineral Leasing Act (30 

7 U.S.C. 181 et seq.). 

8 (b) PROCEDURES.—The Secretary shall, by regula9 tion, establish procedures for— 

10 (1) receipt and consideration of sealed nomina11 tions for any area in the Coastal Plain for inclusion 

12 in, or exclusion (as provided in subsection (c)) from, 

13 a lease sale; 

14 (2) the holding of lease sales after such nomina15 tion process; and 

16 (3) public notice of and comment on designa17 tion of areas to be included in, or excluded from, a 

18 lease sale. 

19 (c) LEASE SALE BIDS.—Bidding for leases under 

20 this subtitle shall be by sealed competitive cash bonus bids. 

21 (d) ACREAGE MINIMUM IN FIRST SALE.—In the first 

22 lease sale under this subtitle, the Secretary shall offer for 

23 lease those tracts the Secretary considers to have the 

24 greatest potential for the discovery of hydrocarbons, takVerDate Mar 15 2010 23:30 May 24, 2013 Jkt 029200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H2081.IH H2081

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1 ing into consideration nominations received pursuant to 

2 subsection (b)(1), but in no case less than 200,000 acres. 

3 (e) TIMING OF LEASE SALES.—The Secretary 

4 shall— 

5 (1) conduct the first lease sale under this sub6 title within 22 months after the date of the enact7 ment of this Act; and 

8 (2) conduct additional sales so long as sufficient 

9 interest in development exists to warrant, in the Sec10 retary’s judgment, the conduct of such sales. 

11 SEC. 415. GRANT OF LEASES BY THE SECRETARY. 

12 (a) IN GENERAL.—The Secretary may grant to the 

13 highest responsible qualified bidder in a lease sale con14 ducted pursuant to section 414 any lands to be leased on 

15 the Coastal Plain upon payment by the lessee of such 

16 bonus as may be accepted by the Secretary. 

17 (b) SUBSEQUENT TRANSFERS.—No lease issued 

18 under this subtitle may be sold, exchanged, assigned, sub19 let, or otherwise transferred except with the approval of 

20 the Secretary. Prior to any such approval the Secretary 

21 shall consult with, and give due consideration to the views 

22 of, the Attorney General. 

23 SEC. 416. LEASE TERMS AND CONDITIONS. 

24 An oil or gas lease issued pursuant to this subtitle 

25 shall— 


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1 (1) provide for the payment of a royalty of not 

less than 121 2 ⁄2 percent in amount or value of the 

3 production removed or sold from the lease, as deter4 mined by the Secretary under the regulations appli5 cable to other Federal oil and gas leases; 

6 (2) require that the lessee of lands within the 

7 Coastal Plain shall be fully responsible and liable for 

8 the reclamation of lands within the Coastal Plain 

9 and any other Federal lands that are adversely af10 fected in connection with exploration, development, 

11 production, or transportation activities conducted 

12 under the lease and within the Coastal Plain by the 

13 lessee or by any of the subcontractors or agents of 

14 the lessee; 

15 (3) provide that the lessee may not delegate or 

16 convey, by contract or otherwise, the reclamation re17 sponsibility and liability to another person without 

18 the express written approval of the Secretary; 

19 (4) provide that the standard of reclamation for 

20 lands required to be reclaimed under this subtitle 

21 shall be, as nearly as practicable, a condition capable 

22 of supporting the uses which the lands were capable 

23 of supporting prior to any exploration, development, 

24 or production activities, or upon application by the 


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1 lessee, to a higher or better use as approved by the 

2 Secretary; 

3 (5) include requirements and restrictions to 

4 provide for reasonable protection of fish and wildlife, 

5 their habitat, subsistence resources, and the environ6 ment as determined by the Secretary; 

7 (6) prohibit the export of oil produced under 

8 the lease; and 

9 (7) contain such other provisions as the Sec10 retary determines necessary to ensure compliance 

11 with the provisions of this subtitle and the regula12 tions issued under this subtitle. 

13 SEC. 417. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

14 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

15 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

16 The Secretary shall, consistent with the requirements of 

17 section 413, administer the provisions of this subtitle 

18 through regulations, lease terms, conditions, restrictions, 

19 prohibitions, stipulations, and other provisions that— 

20 (1) ensure the oil and gas exploration, develop21 ment, and production activities on the Coastal Plain 

22 will result in no significant adverse effect on fish 

23 and wildlife, their habitat, and the environment; 

24 (2) require the application of the best commer25 cially available technology for oil and gas exploVerDate Mar 15 2010 23:30 May 24, 2013 Jkt 029200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H2081.IH H2081

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1 ration, development, and production on all new ex2 ploration, development, and production operations; 

3 and 

4 (3) ensure that the maximum amount of sur5 face acreage covered by production and support fa6 cilities, including airstrips and any areas covered by 

7 gravel berms or piers for support of pipelines, does 

8 not exceed 2,000 acres on the Coastal Plain. 

9 (b) SITE-SPECIFIC ASSESSMENT AND MITIGATION.— 

10 The Secretary shall also require, with respect to any pro11 posed drilling and related activities, that— 

12 (1) a site-specific analysis be made of the prob13 able effects, if any, that the drilling or related activi14 ties will have on fish and wildlife, their habitat, sub15 sistence resources, and the environment; 

16 (2) a plan be implemented to avoid, minimize, 

17 and mitigate (in that order and to the extent prac18 ticable) any significant adverse effect identified 

19 under paragraph (1); and 

20 (3) the development of the plan shall occur 

21 after consultation with the agency or agencies hav22 ing jurisdiction over matters mitigated by the plan. 

23 (c) REGULATIONS TO PROTECT COASTAL PLAIN

24 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

25 AND THE ENVIRONMENT.—Before implementing the leasVerDate Mar 15 2010 23:30 May 24, 2013 Jkt 029200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H2081.IH H2081

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1 ing program authorized by this subtitle, the Secretary 

2 shall prepare and promulgate regulations, lease terms, 

3 conditions, restrictions, prohibitions, stipulations, and 

4 other measures designed to ensure that the activities un5 dertaken on the Coastal Plain under this subtitle are con6 ducted in a manner consistent with the purposes and envi7 ronmental requirements of this subtitle. 

8 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI9 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

10 proposed regulations, lease terms, conditions, restrictions, 

11 prohibitions, and stipulations for the leasing program 

12 under this subtitle shall require compliance with all appli13 cable provisions of Federal and State environmental law, 

14 and shall also require the following: 

15 (1) Standards at least as effective as the safety 

16 and environmental mitigation measures set forth in 

17 items 1 through 29 at pages 167 through 169 of the 

18 ‘‘Final Legislative Environmental Impact State19 ment’’ (April 1987) on the Coastal Plain. 

20 (2) Seasonal limitations on exploration, develop21 ment, and related activities, where necessary, to 

22 avoid significant adverse effects during periods of 

23 concentrated fish and wildlife breeding, denning, 

24 nesting, spawning, and migration. 


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1 (3) Design safety and construction standards 

2 for all pipelines and any access and service roads, 

3 that— 

4 (A) minimize, to the maximum extent pos5 sible, adverse effects upon the passage of mi6 gratory species such as caribou; and 

7 (B) minimize adverse effects upon the flow 

8 of surface water by requiring the use of cul9 verts, bridges, and other structural devices. 

10 (4) Prohibitions on general public access and 

11 use on all pipeline access and service roads. 

12 (5) Stringent reclamation and rehabilitation re13 quirements, consistent with the standards set forth 

14 in this subtitle, requiring the removal from the 

15 Coastal Plain of all oil and gas development and 

16 production facilities, structures, and equipment upon 

17 completion of oil and gas production operations, ex18 cept that the Secretary may exempt from the re19 quirements of this paragraph those facilities, struc20 tures, or equipment that the Secretary determines 

21 would assist in the management of the Arctic Na22 tional Wildlife Refuge and that are donated to the 

23 United States for that purpose. 

24 (6) Appropriate prohibitions or restrictions on 

25 access by all modes of transportation. 


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1 (7) Appropriate prohibitions or restrictions on 

2 sand and gravel extraction. 

3 (8) Consolidation of facility siting. 

4 (9) Appropriate prohibitions or restrictions on 

5 use of explosives. 

6 (10) Avoidance, to the extent practicable, of 

7 springs, streams, and river system; the protection of 

8 natural surface drainage patterns, wetlands, and ri9 parian habitats; and the regulation of methods or 

10 techniques for developing or transporting adequate 

11 supplies of water for exploratory drilling. 

12 (11) Avoidance or minimization of air traffic-re13 lated disturbance to fish and wildlife. 

14 (12) Treatment and disposal of hazardous and 

15 toxic wastes, solid wastes, reserve pit fluids, drilling 

16 muds and cuttings, and domestic wastewater, includ17 ing an annual waste management report, a haz18 ardous materials tracking system, and a prohibition 

19 on chlorinated solvents, in accordance with applica20 ble Federal and State environmental law. 

21 (13) Fuel storage and oil spill contingency plan22 ning. 

23 (14) Research, monitoring, and reporting re24 quirements. 

25 (15) Field crew environmental briefings. 


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1 (16) Avoidance of significant adverse effects 

2 upon subsistence hunting, fishing, and trapping by 

3 subsistence users. 

4 (17) Compliance with applicable air and water 

5 quality standards. 

6 (18) Appropriate seasonal and safety zone des7 ignations around well sites, within which subsistence 

8 hunting and trapping shall be limited. 

9 (19) Reasonable stipulations for protection of 

10 cultural and archeological resources. 

11 (20) All other protective environmental stipula12 tions, restrictions, terms, and conditions deemed 

13 necessary by the Secretary. 

14 (e) CONSIDERATIONS.—In preparing and promul15 gating regulations, lease terms, conditions, restrictions, 

16 prohibitions, and stipulations under this section, the Sec17 retary shall consider the following: 

18 (1) The stipulations and conditions that govern 

19 the National Petroleum Reserve-Alaska leasing pro20 gram, as set forth in the 1999 Northeast National 

21 Petroleum Reserve-Alaska Final Integrated Activity 

22 Plan/Environmental Impact Statement. 

23 (2) The environmental protection standards 

24 that governed the initial Coastal Plain seismic exploVerDate Mar 15 2010 23:30 May 24, 2013 Jkt 029200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H2081.IH H2081

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1 ration program under parts 37.31 to 37.33 of title 

2 50, Code of Federal Regulations. 

3 (3) The land use stipulations for exploratory 

4 drilling on the KIC–ASRC private lands that are set 

5 forth in appendix 2 of the August 9, 1983, agree6 ment between Arctic Slope Regional Corporation and 

7 the United States. 

8 (f) FACILITY CONSOLIDATION PLANNING.— 

9 (1) IN GENERAL.—The Secretary shall, after 

10 providing for public notice and comment, prepare 

11 and update periodically a plan to govern, guide, and 

12 direct the siting and construction of facilities for the 

13 exploration, development, production, and transpor14 tation of Coastal Plain oil and gas resources. 

15 (2) OBJECTIVES.—The plan shall have the fol16 lowing objectives: 

17 (A) Avoiding unnecessary duplication of fa18 cilities and activities. 

19 (B) Encouraging consolidation of common 

20 facilities and activities. 

21 (C) Locating or confining facilities and ac22 tivities to areas that will minimize impact on 

23 fish and wildlife, their habitat, and the environ24 ment. 


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1 (D) Utilizing existing facilities wherever 

2 practicable. 

3 (E) Enhancing compatibility between wild4 life values and development activities. 

5 (g) ACCESS TO PUBLIC LANDS.—The Secretary 

6 shall— 

7 (1) manage public lands in the Coastal Plain 

8 subject to subsections (a) and (b) of section 811 of 

9 the Alaska National Interest Lands Conservation 

10 Act (16 U.S.C. 3121); and 

11 (2) ensure that local residents shall have rea12 sonable access to public lands in the Coastal Plain 

13 for traditional uses. 

14 SEC. 418. EXPEDITED JUDICIAL REVIEW. 

15 (a) FILING OF COMPLAINT.— 

16 (1) DEADLINE.—Subject to paragraph (2), any 

17 complaint seeking judicial review of any provision of 

18 this subtitle or any action of the Secretary under 

19 this subtitle shall be filed— 

20 (A) except as provided in subparagraph 

21 (B), within the 90-day period beginning on the 

22 date of the action being challenged; or 

23 (B) in the case of a complaint based solely 

24 on grounds arising after such period, within 90 

25 days after the complainant knew or reasonably 


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1 should have known of the grounds for the com2 plaint. 

3 (2) VENUE.—Any complaint seeking judicial re4 view of any provision of this subtitle or any action 

5 of the Secretary under this subtitle may be filed only 

6 in the United States Court of Appeals for the Dis7 trict of Columbia. 

8 (3) LIMITATION ON SCOPE OF CERTAIN RE9 VIEW.—Judicial review of a Secretarial decision to 

10 conduct a lease sale under this subtitle, including 

11 the environmental analysis thereof, shall be limited 

12 to whether the Secretary has complied with the 

13 terms of this subtitle and shall be based upon the 

14 administrative record of that decision. The Sec15 retary’s identification of a preferred course of action 

16 to enable leasing to proceed and the Secretary’s 

17 analysis of environmental effects under this subtitle 

18 shall be presumed to be correct unless shown other19 wise by clear and convincing evidence to the con20 trary. 

21 (b) LIMITATION ON OTHER REVIEW.—Actions of the 

22 Secretary with respect to which review could have been 

23 obtained under this section shall not be subject to judicial 

24 review in any civil or criminal proceeding for enforcement. 


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1 SEC. 419. FEDERAL AND STATE DISTRIBUTION OF REVE2 NUES. 

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law, of the amount of adjusted bonus, rental, and 

5 royalty revenues from Federal oil and gas leasing and op6 erations authorized under this subtitle— 

7 (1) 25 percent shall be paid to the State of 

8 Alaska; and 

9 (2) except as provided in section 422(d), the 

10 balance shall be deposited into the Treasury as mis11 cellaneous receipts. 

12 (b) PAYMENTS TO ALASKA.—Payments to the State 

13 of Alaska under this section shall be made semiannually. 

14 SEC. 420. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 

15 (a) IN GENERAL.—The Secretary shall issue rights16 of-way and easements across the Coastal Plain for the 

17 transportation of oil and gas— 

18 (1) except as provided in paragraph (2), under 

19 section 28 of the Mineral Leasing Act (30 U.S.C. 

20 185), without regard to title XI of the Alaska Na21 tional Interest Lands Conservation Act (30 U.S.C. 

22 3161 et seq.); and 

23 (2) under title XI of the Alaska National Inter24 est Lands Conservation Act (30 U.S.C. 3161 et 

25 seq.), for access authorized by sections 1110 and 

26 1111 of that Act (16 U.S.C. 3170 and 3171). 


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1 (b) TERMS AND CONDITIONS.—The Secretary shall 

2 include in any right-of-way or easement issued under sub3 section (a) such terms and conditions as may be necessary 

4 to ensure that transportation of oil and gas does not result 

5 in a significant adverse effect on the fish and wildlife, sub6 sistence resources, their habitat, and the environment of 

7 the Coastal Plain, including requirements that facilities be 

8 sited or designed so as to avoid unnecessary duplication 

9 of roads and pipelines. 

10 (c) REGULATIONS.—The Secretary shall include in 

11 regulations under section 413(g) provisions granting 

12 rights-of-way and easements described in subsection (a) 

13 of this section. 

14 SEC. 421. CONVEYANCE. 

15 In order to maximize Federal revenues by removing 

16 clouds on title to lands and clarifying land ownership pat17 terns within the Coastal Plain, the Secretary, notwith18 standing the provisions of section 1302(h)(2) of the Alas19 ka National Interest Lands Conservation Act (16 U.S.C. 

20 3192(h)(2)), shall convey— 

21 (1) to the Kaktovik Inupiat Corporation the 

22 surface estate of the lands described in paragraph 1 

23 of Public Land Order 6959, to the extent necessary 

24 to fulfill the Corporation’s entitlement under sec25 tions 12 and 14 of the Alaska Native Claims SettleVerDate Mar 15 2010 23:30 May 24, 2013 Jkt 029200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H2081.IH H2081

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1 ment Act (43 U.S.C. 1611 and 1613) in accordance 

2 with the terms and conditions of the Agreement be3 tween the Department of the Interior, the United 

4 States Fish and Wildlife Service, the Bureau of 

5 Land Management, and the Kaktovik Inupiat Cor6 poration effective January 22, 1993; and 

7 (2) to the Arctic Slope Regional Corporation 

8 the remaining subsurface estate to which it is enti9 tled pursuant to the August 9, 1983, agreement be10 tween the Arctic Slope Regional Corporation and the 

11 United States of America. 

12 SEC. 422. LOCAL GOVERNMENT IMPACT AID AND COMMU13 NITY SERVICE ASSISTANCE. 

14 (a) FINANCIAL ASSISTANCE AUTHORIZED.— 

15 (1) IN GENERAL.—The Secretary may use 

16 amounts available from the Coastal Plain Local Gov17 ernment Impact Aid Assistance Fund established by 

18 subsection (d) to provide timely financial assistance 

19 to entities that are eligible under paragraph (2) and 

20 that are directly impacted by the exploration for or 

21 production of oil and gas on the Coastal Plain under 

22 this subtitle. 

23 (2) ELIGIBLE ENTITIES.—The North Slope 

24 Borough, the City of Kaktovik, and any other bor25 ough, municipal subdivision, village, or other comVerDate Mar 15 2010 23:30 May 24, 2013 Jkt 029200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H2081.IH H2081

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1 munity in the State of Alaska that is directly im2 pacted by exploration for, or the production of, oil 

3 or gas on the Coastal Plain under this subtitle, as 

4 determined by the Secretary, shall be eligible for fi5 nancial assistance under this section. 

6 (b) USE OF ASSISTANCE.—Financial assistance 

7 under this section may be used only for— 

8 (1) planning for mitigation of the potential ef9 fects of oil and gas exploration and development on 

10 environmental, social, cultural, recreational, and sub11 sistence values; 

12 (2) implementing mitigation plans and main13 taining mitigation projects; 

14 (3) developing, carrying out, and maintaining 

15 projects and programs that provide new or expanded 

16 public facilities and services to address needs and 

17 problems associated with such effects, including fire18 fighting, police, water, waste treatment, medivac, 

19 and medical services; and 

20 (4) establishment of a coordination office, by 

21 the North Slope borough, in the City of Kaktovik, 

22 which shall— 

23 (A) coordinate with and advise developers 

24 on local conditions, impact, and history of the 

25 areas utilized for development; and 


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1 (B) provide to the Committee on Natural 

2 Resources of the House of Representatives and 

3 the Committee on Energy and Natural Re4 sources of the Senate an annual report on the 

5 status of coordination between developers and 

6 the communities affected by development. 

7 (c) APPLICATION.— 

8 (1) IN GENERAL.—Any community that is eligi9 ble for assistance under this section may submit an 

10 application for such assistance to the Secretary, in 

11 such form and under such procedures as the Sec12 retary may prescribe by regulation. 

13 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

14 community located in the North Slope Borough may 

15 apply for assistance under this section either directly 

16 to the Secretary or through the North Slope Bor17 ough. 

18 (3) APPLICATION ASSISTANCE.—The Secretary 

19 shall work closely with and assist the North Slope 

20 Borough and other communities eligible for assist21 ance under this section in developing and submitting 

22 applications for assistance under this section. 

23 (d) ESTABLISHMENT OF FUND.— 


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1 (1) IN GENERAL.—There is established in the 

2 Treasury the Coastal Plain Local Government Im3 pact Aid Assistance Fund. 

4 (2) USE.—Amounts in the fund may be used 

5 only for providing financial assistance under this 

6 section. 

7 (3) DEPOSITS.—Subject to paragraph (4), there 

8 shall be deposited into the fund amounts received by 

9 the United States as revenues derived from rents, 

10 bonuses, and royalties from Federal leases and lease 

11 sales authorized under this subtitle. 

12 (4) LIMITATION ON DEPOSITS.—The total 

13 amount in the fund may not exceed $11,000,000. 

14 (5) INVESTMENT OF BALANCES.—The Sec15 retary of the Treasury shall invest amounts in the 

16 fund in interest bearing government securities. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—To pro18 vide financial assistance under this section there is author19 ized to be appropriated to the Secretary from the Coastal 

20 Plain Local Government Impact Aid Assistance Fund 

21 $5,000,000 for each fiscal year. 


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1 Subtitle C—Offshore Oil and Gas 

2 Development 

3 SEC. 431. REPEAL OF MORATORIUM ON OIL AND GAS LEAS4 ING IN THE GULF OF MEXICO. 

5 (a) REPEAL.—Section 104 of the Gulf of Mexico En6 ergy Security Act of 2006 (Public Law 109–432; 43 

7 U.S.C. 1331 note) is amended by striking ‘‘June 30, 

8 2022’’ and inserting ‘‘January 1, 2012’’. 

9 (b) INCLUSION OF OPENED AREAS IN 2012–2017 

10 OUTER CONTINENTAL SHELF OIL AND GAS LEASING

11 PROGRAM.—Within 90 days after the date of enactment 

12 of this Act, the Secretary of the Interior shall include the 

13 area removed from moratorium by subsection (a) in the 

14 areas available for leasing under the 2012–2017 outer 

15 Continental Shelf oil and gas leasing program prepared 

16 under section 18 of the Outer Continental Shelf Lands 

17 Act (43 U.S.C. 1344). 

18 SEC. 432. INCLUSION OF AREAS IN 2012–2017 OUTER CONTI19 NENTAL SHELF OIL AND GAS LEASING PRO20 GRAM. 

21 (a) IN GENERAL.—Within 90 days after the date of 

22 enactment of this Act, the Secretary of the Interior shall 

23 include the areas described in subsection (b) in the areas 

24 available for leasing under the 2012–2017 outer Conti25 nental Shelf oil and gas leasing program prepared under 


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1 section 18 of the Outer Continental Shelf Lands Act (43 

2 U.S.C. 1344). 

3 (b) AREAS DESCRIBED.—The areas referred to in 

4 subsection (a) are all areas of the outer Continental Shelf 

5 (as that term is defined in that Act) in the Arctic Ocean, 

6 Atlantic Ocean, Pacific Ocean, and Eastern Gulf of Mex7 ico. 

8 TITLE V—GREENHOUSE GAS 

9 REGULATION 

10 SEC. 501. NO REGULATION OF EMISSIONS OF GREENHOUSE 

11 GASES UNDER CLEAN AIR ACT. 

12 Title III of the Clean Air Act (42 U.S.C. 7601 et 

13 seq.) is amended by adding at the end the following: 

14 ‘‘SEC. 330. NO REGULATION OF EMISSION OF GREENHOUSE 

15 GASES. 

16 ‘‘(a) DEFINITION.—In this section, the term ‘green17 house gas’ means any of the following: 

18 ‘‘(1) Water vapor. 

19 ‘‘(2) Carbon dioxide. 

20 ‘‘(3) Methane. 

21 ‘‘(4) Nitrous oxide. 

22 ‘‘(5) Sulfur hexafluoride. 

23 ‘‘(6) Hydrofluorocarbons. 

24 ‘‘(7) Perfluorocarbons. 


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1 ‘‘(8) Any other substance subject to, or pro2 posed to be subject to, regulation, action, or consid3 eration under this Act to address climate change. 

4 ‘‘(b) LIMITATION ON AGENCY ACTION.— 

5 ‘‘(1) LIMITATION.—The Administrator may not, 

6 under this Act, promulgate any regulation con7 cerning, take action relating to, or take into consid8 eration the emission of a greenhouse gas to address 

9 climate change. 

10 ‘‘(2) AIR POLLUTANT DEFINITION.—The defini11 tion of the term ‘air pollutant’ in section 302(g) 

12 does not include a greenhouse gas. Notwithstanding 

13 the previous sentence, such definition may include a 

14 greenhouse gas for purposes of addressing concerns 

15 other than climate change.’’. 

Æ 


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