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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2755 Introduced in Senate (IS)]

109th CONGRESS
  2d Session
                                S. 2755

      To enhance the energy production, refining, infrastructure, 
conservation and efficiency capabilities of the United States, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 5, 2006

  Mr. Thomas introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
      To enhance the energy production, refining, infrastructure, 
conservation and efficiency capabilities of the United States, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Production, 
Refining, Infrastructure, Conservation and Efficiency Act'' or the 
``Energy PRICE Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                       TITLE I--ENERGY PRODUCTION

            Subtitle A--Arctic Coastal Plain Domestic Energy

Sec. 1001. Definitions.
Sec. 1002. Leasing program for lands within the Coastal Plain.
Sec. 1003. Lease sales.
Sec. 1004. Grant of leases by the Secretary.
Sec. 1005. Lease terms and conditions.
Sec. 1006. Coastal Plain environmental protection.
Sec. 1007. Expedited judicial review.
Sec. 1008. Federal and State distribution of revenues.
Sec. 1009. Rights-of-way across the Coastal Plain.
Sec. 1010. Conveyance.
Sec. 1011. Local government impact aid and community service 
                            assistance.
                   Subtitle B--Enhanced Oil Recovery

Sec. 1021. Enhanced credit for carbon dioxide injections.
          Subtitle C--Department of Defense Contract Authority

Sec. 1031. Procurement of fuel derived from coal, oil shale, and tar 
                            sands.
                           TITLE II--REFINING

                Subtitle A--Refinery Permitting Process

Sec. 2001. Definitions.
Sec. 2002. Streamlining of refinery permitting process.
Sec. 2003. Fuel emergency waivers.
Sec. 2004. Boutique fuel reductions.
Sec. 2005. Fischer-Tropsch fuels.
  Subtitle B--Accelerated Depreciation for Construction and Expansion

Sec. 2011. Expansion of election to expense certain refineries.
                       TITLE III--INFRASTRUCTURE

                  Subtitle A--Accelerated Depreciation

Sec. 3001. Treatment of certain oil and gas pipelines as 5-year 
                            property for depreciation purposes.
                    Subtitle B--Tax-Exempt Financing

Sec. 3011. Tax-exempt financing of energy transportation infrastructure 
                            not subject to private business use test.
                  Subtitle C--Emergency Service Route

Sec. 3021. Emergency service route.
                 TITLE IV--CONSERVATION AND EFFICIENCY

                       Subtitle A--CAFE Standards

Sec. 4001. Revised considerations for decisions on maximum feasible 
                            average fuel economy.
Sec. 4002. Increased fuel economy standards.
Sec. 4003. Expedited procedures for congressional increase in fuel 
                            economy standards.
              Subtitle B--Natural Gas Energy Star Program

Sec. 4011. Efficiency.

                       TITLE I--ENERGY PRODUCTION

            Subtitle A--Arctic Coastal Plain Domestic Energy

SEC. 1001. DEFINITIONS.

    In this subtitle:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area identified as such in the map entitled ``Arctic National 
        Wildlife Refuge'', dated August 1980, as referenced in section 
        1002(b) of the Alaska National Interest Lands Conservation Act 
        of 1980 (16 U.S.C. 3142(b)(1)), comprising approximately 
        1,549,000 acres, and as described in appendix I to part 37 of 
        title 50, Code of Federal Regulations.
            (2) Secretary.--The term ``Secretary'', except as otherwise 
        provided, means the Secretary of the Interior or the 
        Secretary's designee.

SEC. 1002. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

    (a) In General.--The Secretary shall take such actions as are 
necessary--
            (1) to establish and implement in accordance with this Act 
        a competitive oil and gas leasing program under the Mineral 
        Leasing Act (30 U.S.C. 181 et seq.) that will result in an 
        environmentally sound program for the exploration, development, 
        and production of the oil and gas resources of the Coastal 
        Plain; and
            (2) to administer the provisions of this subtitle through 
        regulations, lease terms, conditions, restrictions, 
        prohibitions, stipulations, and other provisions that ensure 
        the oil and gas exploration, development, and production 
        activities on the Coastal Plain will result in no significant 
        adverse effect on fish and wildlife, their habitat, subsistence 
        resources, and the environment, and including, in furtherance 
        of this goal, by requiring the application of the best 
        commercially available technology for oil and gas exploration, 
        development, and production to all exploration, development, 
        and production operations under this subtitle in a manner that 
        ensures the receipt of fair market value by the public for the 
        mineral resources to be leased.
    (b) Repeal.--Section 1003 of the Alaska National Interest Lands 
Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966, the oil and gas 
        leasing program and activities authorized by this section in 
        the Coastal Plain are deemed to be compatible with the purposes 
        for which the Arctic National Wildlife Refuge was established, 
        and that no further findings or decisions are required to 
        implement this determination.
            (2) Adequacy of the department of the interior's 
        legislative environmental impact statement.--The ``Final 
        Legislative Environmental Impact Statement'' (April 1987) on 
        the Coastal Plain prepared pursuant to section 1002 of the 
        Alaska National Interest Lands Conservation Act of 1980 (16 
        U.S.C. 3142) and section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
        deemed to satisfy the requirements under the National 
        Environmental Policy Act of 1969 that apply with respect to 
        actions authorized to be taken by the Secretary to develop and 
        promulgate the regulations for the establishment of a leasing 
        program authorized by this subtitle before the conduct of the 
        first lease sale.
            (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this subtitle, the 
        Secretary shall prepare an environmental impact statement under 
        the National Environmental Policy Act of 1969 with respect to 
        the actions authorized by this subtitle that are not referred 
        to in paragraph (2). Notwithstanding any other law, the 
        Secretary is not required to identify nonleasing alternative 
        courses of action or to analyze the environmental effects of 
        such courses of action. The Secretary shall only identify a 
        preferred action for such leasing and a single leasing 
        alternative, and analyze the environmental effects and 
        potential mitigation measures for those two alternatives. The 
        identification of the preferred action and related analysis for 
        the first lease sale under this subtitle shall be completed 
        within 18 months after the date of the enactment of this Act. 
        The Secretary shall only consider public comments that 
        specifically address the Secretary's preferred action and that 
        are filed within 20 days after publication of an environmental 
        analysis. Notwithstanding any other law, compliance with this 
        paragraph is deemed to satisfy all requirements for the 
        analysis and consideration of the environmental effects of 
        proposed leasing under this subtitle.
    (d) Relationship to State and Local Authority.--Nothing in this 
subtitle shall be considered to expand or limit State and local 
regulatory authority.
    (e) Special Areas.--
            (1) In general.--The Secretary, after consultation with the 
        State of Alaska, the city of Kaktovik, and the North Slope 
        Borough, may designate up to a total of 45,000 acres of the 
        Coastal Plain as a Special Area if the Secretary determines 
        that the Special Area is of such unique character and interest 
        so as to require special management and regulatory protection. 
        The Secretary shall designate as such a Special Area the 
        Sadlerochit Spring area, comprising approximately 4,000 acres 
        as depicted on such map as shall be identified by the 
        Secretary.
            (2) Management.--Each such Special Area shall be managed so 
        as to protect and preserve the area's unique and diverse 
        character including its fish, wildlife, and subsistence 
        resource values.
            (3) Exclusion from leasing or surface occupancy.--The 
        Secretary may exclude any Special Area from leasing. If the 
        Secretary leases a Special Area, or any part thereof, for 
        purposes of oil and gas exploration, development, production, 
        and related activities, there shall be no surface occupancy of 
        the lands comprising the Special Area.
            (4) Directional drilling.--Notwithstanding the other 
        provisions of this subsection, the Secretary may lease all or a 
        portion of a Special Area under terms that permit the use of 
        horizontal drilling technology from sites on leases located 
        outside the area.
    (f) Limitation on Closed Areas.--The Secretary's sole authority to 
close lands within the Coastal Plain to oil and gas leasing and to 
exploration, development, and production is that set forth in this 
subtitle.
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this subtitle, 
        including rules and regulations relating to protection of the 
        fish and wildlife, their habitat, subsistence resources, and 
        environment of the Coastal Plain, by no later than 15 months 
        after the date of the enactment of this Act.
            (2) Revision of regulations.--The Secretary shall 
        periodically review and, if appropriate, revise the rules and 
        regulations issued under subsection (a) to reflect any 
        significant biological, environmental, or engineering data that 
        come to the Secretary's attention.

SEC. 1003. LEASE SALES.

    (a) In General.--Lands may be leased pursuant to this subtitle to 
any person qualified to obtain a lease for deposits of oil and gas 
under the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Coastal Plain for inclusion in, or exclusion (as 
        provided in subsection (c)) from, a lease sale;
            (2) the holding of lease sales after such nomination 
        process; and
            (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this subtitle shall 
be by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--In the first lease sale under 
this subtitle, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) conduct the first lease sale under this subtitle within 
        22 months after the date of the enactment of this Act; and
            (2) conduct additional sales so long as sufficient interest 
        in development exists to warrant, in the Secretary's judgment, 
        the conduct of such sales.

SEC. 1004. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--The Secretary may grant to the highest responsible 
qualified bidder in a lease sale conducted pursuant to section 1003 any 
lands to be leased on the Coastal Plain upon payment by the lessee of 
such bonus as may be accepted by the Secretary.
    (b) Subsequent Transfers.--No lease issued under this subtitle may 
be sold, exchanged, assigned, sublet, or otherwise transferred except 
with the approval of the Secretary. Prior to any such approval the 
Secretary shall consult with, and give due consideration to the views 
of, the Attorney General.

SEC. 1005. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this 
subtitle shall--
            (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent in amount or value of the production removed or 
        sold from the lease, as determined by the Secretary under the 
        regulations applicable to other Federal oil and gas leases;
            (2) provide that the Secretary may close, on a seasonal 
        basis, portions of the Coastal Plain to exploratory drilling 
        activities as necessary to protect caribou calving areas and 
        other species of fish and wildlife;
            (3) require that the lessee of lands within the Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of lands within the Coastal Plain and any other Federal lands 
        that are adversely affected in connection with exploration, 
        development, production, or transportation activities conducted 
        under the lease and within the Coastal Plain by the lessee or 
        by any of the subcontractors or agents of the lessee;
            (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, the reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
            (5) provide that the standard of reclamation for lands 
        required to be reclaimed under this subtitle shall be, as 
        nearly as practicable, a condition capable of supporting the 
        uses which the lands were capable of supporting prior to any 
        exploration, development, or production activities, or upon 
        application by the lessee, to a higher or better use as 
        approved by the Secretary;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, their habitat, and the environment as 
        required pursuant to section 10023(a)(2);
            (7) provide that the lessee, its agents, and its 
        contractors use best efforts to provide a fair share, as 
        determined by the level of obligation previously agreed to in 
        the 1974 agreement implementing section 29 of the Federal 
        Agreement and Grant of Right of Way for the Operation of the 
        Trans-Alaska Pipeline, of employment and contracting for Alaska 
        Natives and Alaska Native Corporations from throughout the 
        State;
            (8) prohibit the export of oil produced under the lease; 
        and
            (9) contain such other provisions as the Secretary 
        determines necessary to ensure compliance with the provisions 
        of this subtitle and the regulations issued under this 
        subtitle.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this subtitle and in recognizing the 
Government's proprietary interest in labor stability and in the ability 
of construction labor and management to meet the particular needs and 
conditions of projects to be developed under the leases issued pursuant 
to this subtitle and the special concerns of the parties to such 
leases, shall require that the lessee and its agents and contractors 
negotiate to obtain a project labor agreement for the employment of 
laborers and mechanics on production, maintenance, and construction 
under the lease.

SEC. 1006. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard to Govern Authorized 
Coastal Plain Activities.--The Secretary shall, consistent with the 
requirements of section 1002, administer the provisions of this 
subtitle through regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other provisions that--
            (1) ensure the oil and gas exploration, development, and 
        production activities on the Coastal Plain will result in no 
        significant adverse effect on fish and wildlife, their habitat, 
        and the environment;
            (2) require the application of the best commercially 
        available technology for oil and gas exploration, development, 
        and production on all new exploration, development, and 
        production operations; and
            (3) ensure that the maximum amount of surface acreage 
        covered by production and support facilities, including 
        airstrips and any areas covered by gravel berms or piers for 
        support of pipelines, does not exceed 2,000 acres on the 
        Coastal Plain.
    (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
also require, with respect to any proposed drilling and related 
activities, that--
            (1) a site-specific analysis be made of the probable 
        effects, if any, that the drilling or related activities will 
        have on fish and wildlife, their habitat, and the environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the extent practicable) any significant 
        adverse effect identified under paragraph (1); and
            (3) the development of the plan shall occur after 
        consultation with the agency or agencies having jurisdiction 
        over matters mitigated by the plan.
    (c) Regulations to Protect Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this subtitle, the Secretary shall 
prepare and promulgate regulations, lease terms, conditions, 
restrictions, prohibitions, stipulations, and other measures designed 
to ensure that the activities undertaken on the Coastal Plain under 
this subtitle are conducted in a manner consistent with the purposes 
and environmental requirements of this subtitle.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this subtitle shall require compliance with all applicable 
provisions of Federal and State environmental law and shall also 
require the following:
            (1) Standards at least as effective as the safety and 
        environmental mitigation measures set forth in items 1 through 
        29 at pages 167 through 169 of the ``Final Legislative 
        Environmental Impact Statement'' (April 1987) on the Coastal 
        Plain.
            (2) Seasonal limitations on exploration, development, and 
        related activities, where necessary, to avoid significant 
        adverse effects during periods of concentrated fish and 
        wildlife breeding, denning, nesting, spawning, and migration.
            (3) That exploration activities, except for surface 
        geological studies, be limited to the period between 
        approximately November 1 and May 1 each year and that 
        exploration activities shall be supported by ice roads, winter 
        trails with adequate snow cover, ice pads, ice airstrips, and 
        air transport methods, except that such exploration activities 
        may occur at other times, if the Secretary finds that such 
        exploration will have no significant adverse effect on the fish 
        and wildlife, their habitat, and the environment of the Coastal 
        Plain.
            (4) Design safety and construction standards for all 
        pipelines and any access and service roads, that--
                    (A) minimize, to the maximum extent possible, 
                adverse effects upon the passage of migratory species 
                such as caribou; and
                    (B) minimize adverse effects upon the flow of 
                surface water by requiring the use of culverts, 
                bridges, and other structural devices.
            (5) Prohibitions on public access and use on all pipeline 
        access and service roads.
            (6) Stringent reclamation and rehabilitation requirements, 
        consistent with the standards set forth in this subtitle, 
        requiring the removal from the Coastal Plain of all oil and gas 
        development and production facilities, structures, and 
        equipment upon completion of oil and gas production operations, 
        except that the Secretary may exempt from the requirements of 
        this paragraph those facilities, structures, or equipment that 
        the Secretary determines would assist in the management of the 
        Arctic National Wildlife Refuge and that are donated to the 
        United States for that purpose.
            (7) Appropriate prohibitions or restrictions on access by 
        all modes of transportation.
            (8) Appropriate prohibitions or restrictions on sand and 
        gravel extraction.
            (9) Consolidation of facility siting.
            (10) Appropriate prohibitions or restrictions on use of 
        explosives.
            (11) Avoidance, to the extent practicable, of springs, 
        streams, and river system; the protection of natural surface 
        drainage patterns, wetlands, and riparian habitats; and the 
        regulation of methods or techniques for developing or 
        transporting adequate supplies of water for exploratory 
        drilling.
            (12) Avoidance or reduction of air traffic-related 
        disturbance to fish and wildlife.
            (13) Treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including an annual waste management 
        report, a hazardous materials tracking system, and a 
        prohibition on chlorinated solvents, in accordance with 
        applicable Federal and State environmental law.
            (14) Fuel storage and oil spill contingency planning.
            (15) Research, monitoring, and reporting requirements.
            (16) Field crew environmental briefings.
            (17) Avoidance of significant adverse effects upon 
        subsistence hunting, fishing, and trapping by subsistence 
        users.
            (18) Compliance with applicable air and water quality 
        standards.
            (19) Appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited.
            (20) Reasonable stipulations for protection of cultural and 
        archeological resources.
            (21) All other protective environmental stipulations, 
        restrictions, terms, and conditions deemed necessary by the 
        Secretary.
    (e) Considerations.--In preparing and promulgating regulations, 
lease terms, conditions, restrictions, prohibitions, and stipulations 
under this section, the Secretary shall consider the following:
            (1) The stipulations and conditions that govern the 
        National Petroleum Reserve-Alaska leasing program, as set forth 
        in the 1999 Northeast National Petroleum Reserve-Alaska Final 
        Integrated Activity Plan/Environmental Impact Statement.
            (2) The environmental protection standards that governed 
        the initial Coastal Plain seismic exploration program under 
        parts 37.31 to 37.33 of title 50, Code of Federal Regulations.
            (3) The land use stipulations for exploratory drilling on 
        the KIC-ASRC private lands that are set forth in Appendix 2 of 
        the August 9, 1983, agreement between Arctic Slope Regional 
        Corporation and the United States.
    (f) Facility Consolidation Planning.--
            (1) In general.--The Secretary shall, after providing for 
        public notice and comment, prepare and update periodically a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of Coastal Plain oil and gas resources.
            (2) Objectives.--The plan shall have the following 
        objectives:
                    (A) Avoiding unnecessary duplication of facilities 
                and activities.
                    (B) Encouraging consolidation of common facilities 
                and activities.
                    (C) Locating or confining facilities and activities 
                to areas that will minimize impact on fish and 
                wildlife, their habitat, and the environment.
                    (D) Utilizing existing facilities wherever 
                practicable.
                    (E) Enhancing compatibility between wildlife values 
                and development activities.
    (g) Access to Public Lands.--The Secretary shall--
            (1) manage public lands in the Coastal Plain subject to 
        subsections (a) and (b) of section 811 of the Alaska National 
        Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public lands in the Coastal Plain for traditional 
        uses.

SEC. 1007. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaint.--
            (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this subtitle or 
        any action of the Secretary under this subtitle shall be filed 
        in any appropriate district court of the United States--
                    (A) except as provided in subparagraph (B), within 
                the 90-day period beginning on the date of the action 
                being challenged; or
                    (B) in the case of a complaint based solely on 
                grounds arising after such period, within 90 days after 
                the complainant knew or reasonably should have known of 
                the grounds for the complaint.
            (2) Venue.--Any complaint seeking judicial review of an 
        action of the Secretary under this subtitle may be filed only 
        in the United States Court of Appeals for the District of 
        Columbia.
            (3) Limitation on scope of certain review.--Judicial review 
        of a Secretarial decision to conduct a lease sale under this 
        subtitle, including the environmental analysis thereof, shall 
        be limited to whether the Secretary has complied with the terms 
        of this subtitle and shall be based upon the administrative 
        record of that decision. The Secretary's identification of a 
        preferred course of action to enable leasing to proceed and the 
        Secretary's analysis of environmental effects under this 
        subtitle shall be presumed to be correct unless shown otherwise 
        by clear and convincing evidence to the contrary.
    (b) Limitation on Other Review.--Actions of the Secretary with 
respect to which review could have been obtained under this section 
shall not be subject to judicial review in any civil or criminal 
proceeding for enforcement.

SEC. 1008. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

    (a) In General.--Notwithstanding any other provision of law, of the 
amount of adjusted bonus, rental, and royalty revenues from oil and gas 
leasing and operations authorized under this subtitle--
            (1) 50 percent shall be paid to the State of Alaska; and
            (2) except as provided in section 1011(d), the balance 
        shall be deposited into the Treasury as miscellaneous receipts.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.
    (c) Use of Bonus Payments for Low-Income Home Energy Assistance.--
Amounts that are received by the United States as bonuses for leases 
under this subtitle and deposited into the Treasury under subsection 
(a)(2) may be appropriated to the Secretary of the Health and Human 
Services, in addition to amounts otherwise available, to provide 
assistance under the Low-Income Home Energy Assistance Act of 1981 (42 
U.S.C. 8621 et seq.).

SEC. 1009. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

    (a) Exemption.--Title XI of the Alaska National Interest Lands 
Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall not apply to 
the issuance by the Secretary under section 28 of the Mineral Leasing 
Act (30 U.S.C. 185) of rights-of-way and easements across the Coastal 
Plain for the transportation of oil and gas.
    (b) Terms and Conditions.--The Secretary shall include in any 
right-of-way or easement referred to in subsection (a) such terms and 
conditions as may be necessary to ensure that transportation of oil and 
gas does not result in a significant adverse effect on the fish and 
wildlife, subsistence resources, their habitat, and the environment of 
the Coastal Plain, including requirements that facilities be sited or 
designed so as to avoid unnecessary duplication of roads and pipelines.
    (c) Regulations.--The Secretary shall include in regulations under 
section 1002(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 1010. CONVEYANCE.

    In order to maximize Federal revenues by removing clouds on title 
to lands and clarifying land ownership patterns within the Coastal 
Plain, the Secretary, notwithstanding the provisions of section 
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 
U.S.C. 3192(h)(2)), shall convey--
            (1) to the Kaktovik Inupiat Corporation the surface estate 
        of the lands described in paragraph 1 of Public Land Order 
        6959, to the extent necessary to fulfill the Corporation's 
        entitlement under section 12 of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1611) in accordance with the terms 
        and conditions of the Agreement between the Department of the 
        Interior, the United States Fish and Wildlife Service, the 
        Bureau of Land Management, and the Kaktovik Inupiat Corporation 
        effective January 22, 1993; and
            (2) to the Arctic Slope Regional Corporation the remaining 
        subsurface estate to which it is entitled pursuant to the 
        August 9, 1983, agreement between the Arctic Slope Regional 
        Corporation and the United States of America.

SEC. 1011. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
              ASSISTANCE.

    (a) Financial Assistance Authorized.--
            (1) In general.--The Secretary may use amounts available 
        from the Coastal Plain Local Government Impact Aid Assistance 
        Fund established by subsection (d) to provide timely financial 
        assistance to entities that are eligible under paragraph (2) 
        and that are directly impacted by the exploration for or 
        production of oil and gas on the Coastal Plain under this 
        subtitle.
            (2) Eligible entities.--The North Slope Borough, Kaktovik, 
        and other boroughs, municipal subdivisions, villages, and any 
        other community organized under Alaska State law shall be 
        eligible for financial assistance under this section.
    (b) Use of Assistance.--Financial assistance under this section may 
be used only for--
            (1) planning for mitigation of the potential effects of oil 
        and gas exploration and development on environmental, social, 
        cultural, recreational and subsistence values;
            (2) implementing mitigation plans and maintaining 
        mitigation projects;
            (3) developing, carrying out, and maintaining projects and 
        programs that provide new or expanded public facilities and 
        services to address needs and problems associated with such 
        effects, including firefighting, police, water, waste 
        treatment, medivac, and medical services; and
            (4) establishment of a coordination office, by the North 
        Slope Borough, in the City of Kaktovik, which shall--
                    (A) coordinate with and advise developers on local 
                conditions, impact, and history of the areas utilized 
                for development; and
                    (B) provide to the Committee on Resources of the 
                Senate and the Committee on Energy and Resources of the 
                Senate an annual report on the status of coordination 
                between developers and the communities affected by 
                development.
    (c) Application.--
            (1) In general.--Any community that is eligible for 
        assistance under this section may submit an application for 
        such assistance to the Secretary, in such form and under such 
        procedures as the Secretary may prescribe by regulation.
            (2) North slope borough communities.--A community located 
        in the North Slope Borough may apply for assistance under this 
        section either directly to the Secretary or through the North 
        Slope Borough.
            (3) Application assistance.--The Secretary shall work 
        closely with and assist the North Slope Borough and other 
        communities eligible for assistance under this section in 
        developing and submitting applications for assistance under 
        this section.
    (d) Establishment of Fund.--
            (1) In general.--There is established in the Treasury the 
        Coastal Plain Local Government Impact Aid Assistance Fund.
            (2) Use.--Amounts in the fund may be used only for 
        providing financial assistance under this section.
            (3) Deposits.--Subject to paragraph (4), there shall be 
        deposited into the fund amounts received by the United States 
        as revenues derived from rents, bonuses, and royalties under on 
        leases and lease sales authorized under this subtitle.
            (4) Limitation on deposits.--The total amount in the fund 
        may not exceed $11,000,000.
            (5) Investment of balances.--The Secretary of the Treasury 
        shall invest amounts in the fund in interest bearing government 
        securities.
    (e) Authorization of Appropriations.--To provide financial 
assistance under this section there is authorized to be appropriated to 
the Secretary from the Coastal Plain Local Government Impact Aid 
Assistance Fund $5,000,000 for each fiscal year.

                   Subtitle B--Enhanced Oil Recovery

SEC. 1021. ENHANCED CREDIT FOR CARBON DIOXIDE INJECTIONS.

    (a) In General.--Section 43 of the Internal Revenue Code of 1986 
(relating to enhanced oil recovery credit) is amended by adding at the 
end the following new subsection:
    ``(f) Enhanced Credit for Projects Using Qualified Carbon 
Dioxide.--
            ``(1) In general.--In the case of any qualified enhanced 
        oil recovery project described in paragraph (2), subsection (a) 
        shall be applied by substituting `20 percent' for `15 percent'.
            ``(2) Specified qualified enhanced oil recovery project.--
                    ``(A) In general.--A qualified enhanced oil 
                recovery project is described in this paragraph if--
                            ``(i) the project begins or is 
                        substantially expanded after December 31, 2006, 
                        and
                            ``(ii) the project uses qualified carbon 
                        dioxide in an oil recovery method which 
                        involves flooding or injection.
                    ``(B) Qualified carbon dioxide.--For purposes of 
                this subsection, the term `qualified carbon dioxide' 
                means carbon dioxide that is--
                            ``(i) from an industrial source, or
                            ``(ii) separated from natural gas and 
                        natural gas liquids at a natural gas processing 
                        plant.
            ``(3) Termination.--This subsection shall not apply to 
        costs paid or incurred for any qualified enhanced oil recovery 
        project after December 31, 2010.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to costs paid or incurred in taxable years ending after December 31, 
2006.

          Subtitle C--Department of Defense Contract Authority

SEC. 1031. PROCUREMENT OF FUEL DERIVED FROM COAL, OIL SHALE, AND TAR 
              SANDS.

    Section 2398a(d) of title 10, United States Code, is amended by 
striking ``1 or more years'' and inserting ``up to 25 years''.

                           TITLE II--REFINING

                Subtitle A--Refinery Permitting Process

SEC. 2001. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) Permit.--The term ``permit'' means any permit, license, 
        approval, variance, or other form of authorization that a 
        refiner is required to obtain--
                    (A) under any Federal law; or
                    (B) from a State or Indian tribal government agency 
                delegated authority by the Federal Government, or 
                authorized under Federal law, to issue permits.
            (4) Refiner.--The term ``refiner'' means a person that--
                    (A) owns or operates a refinery; or
                    (B) seeks to become an owner or operator of a 
                refinery.
            (5) Refinery.--
                    (A) In general.--The term ``refinery'' means--
                            (i) a facility at which crude oil is 
                        refined into transportation fuel or other 
                        petroleum products; and
                            (ii) a coal liquification or coal-to-liquid 
                        facility at which coal is processed into 
                        synthetic crude oil or any other fuel.
                    (B) Inclusions.--The term ``refinery'' includes--
                            (i) an expansion of a refinery;
                            (ii) a biorefinery; and
                            (iii) any facility that produces a 
                        renewable fuel (as defined in section 211(o)(1) 
                        of the Clean Air Act (42 U.S.C. 7545(o)(1)).
            (6) Refinery permitting agreement.--The term ``refinery 
        permitting agreement'' means an agreement entered into between 
        the Administrator and a State or Indian tribe under section 
        2004.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (8) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.

SEC. 2002. STREAMLINING OF REFINERY PERMITTING PROCESS.

    (a) In General.--At the request of the Governor of a State or the 
governing body of an Indian tribe, the Administrator shall enter into a 
refinery permitting agreement with the State or Indian tribe under 
which the process for obtaining all permits necessary for the 
construction and operation of a refinery shall be streamlined using a 
systematic interdisciplinary multimedia approach as provided in this 
subtitle.
    (b) Authority of Administrator.--Under a refinery permitting 
agreement--
            (1) the Administrator shall have authority, as applicable 
        and necessary, to--
                    (A) accept from a refiner a consolidated 
                application for all permits that the refiner is 
                required to obtain to construct and operate a refinery;
                    (B) in consultation and cooperation with each 
                Federal, State, or Indian tribal government agency that 
                is required to make any determination to authorize the 
                issuance of a permit, establish a schedule under which 
                each agency shall--
                            (i) concurrently consider, to the maximum 
                        extent practicable, each determination to be 
                        made; and
                            (ii) complete each step in the permitting 
                        process; and
                    (C) issue a consolidated permit that combines all 
                permits issued under the schedule established under 
                subparagraph (B); and
            (2) the Administrator shall provide to State and Indian 
        tribal government agencies--
                    (A) financial assistance in such amounts as the 
                agencies reasonably require to hire such additional 
                personnel as are necessary to enable the government 
                agencies to comply with the applicable schedule 
                established under paragraph (1)(B); and
                    (B) technical, legal, and other assistance in 
                complying with the refinery permitting agreement.
    (c) Agreement by the State.--Under a refinery permitting agreement, 
a State or governing body of an Indian tribe shall agree that--
            (1) the Administrator shall have each of the authorities 
        described in subsection (b); and
            (2) each State or Indian tribal government agency shall--
                    (A) in accordance with State law, make such 
                structural and operational changes in the agencies as 
                are necessary to enable the agencies to carry out 
                consolidated project-wide permit reviews concurrently 
                and in coordination with the Environmental Protection 
                Agency and other Federal agencies; and
                    (B) comply, to the maximum extent practicable, with 
                the applicable schedule established under subsection 
                (b)(1)(B).
    (d) Interdisciplinary Approach.--
            (1) In general.--The Administrator and a State or governing 
        body of an Indian tribe shall incorporate an interdisciplinary 
        approach, to the maximum extent practicable, in the 
        development, review, and approval of permits subject to this 
        section.
            (2) Options.--Among other options, the interdisciplinary 
        approach may include use of--
                    (A) environmental management practices; and
                    (B) third party contractors.
    (e) Deadlines.--
            (1) New refineries.--In the case of a consolidated permit 
        for the construction of a new refinery, the Administrator and 
        the State or governing body of an Indian tribe shall approve or 
        disapprove the consolidated permit not later than--
                    (A) 360 days after the date of the receipt of the 
                administratively complete application for the 
                consolidated permit; or
                    (B) on agreement of the applicant, the 
                Administrator, and the State or governing body of the 
                Indian tribe, 90 days after the expiration of the 
                deadline established under subparagraph (A).
            (2) Expansion of existing refineries.--In the case of a 
        consolidated permit for the expansion of an existing refinery, 
        the Administrator and the State or governing body of an Indian 
        tribe shall approve or disapprove the consolidated permit not 
        later than--
                    (A) 120 days after the date of the receipt of the 
                administratively complete application for the 
                consolidated permit; or
                    (B) on agreement of the applicant, the 
                Administrator, and the State or governing body of the 
                Indian tribe, 30 days after the expiration of the 
                deadline established under subparagraph (A).
    (f) Federal Agencies.--Each Federal agency that is required to make 
any determination to authorize the issuance of a permit shall comply 
with the applicable schedule established under subsection (b)(1)(B).
    (g) Judicial Review.--Any civil action for review of any permit 
determination under a refinery permitting agreement shall be brought 
exclusively in the United States district court for the district in 
which the refinery is located or proposed to be located.
    (h) Efficient Permit Review.--In order to reduce the duplication of 
procedures, the Administrator shall use State permitting and monitoring 
procedures to satisfy substantially equivalent Federal requirements 
under this Act.
    (i) Severability.--If 1 or more permits that are required for the 
construction or operation of a refinery are not approved on or before 
any deadline established under subsection (e), the Administrator may 
issue a consolidated permit that combines all other permits that the 
refiner is required to obtain other than any permits that are not 
approved.
    (j) Savings.--Nothing in this section affects the operation or 
implementation of otherwise applicable law regarding permits necessary 
for the construction and operation of a refinery.
    (k) Consultation With Local Governments.--Congress encourages the 
Administrator, States, and tribal governments to consult, to the 
maximum extent practicable, with local governments in carrying out this 
section.
    (l) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (m) Effect on Local Authority.--Nothing in this section affects--
            (1) the authority of a local government with respect to the 
        issuance of permits; or
            (2) any requirement or ordinance of a local government 
        (such as a zoning regulation).

SEC. 2003. FUEL EMERGENCY WAIVERS.

    Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) 
(as amended by section 1541 of the Energy Policy Act of 2005 (Public 
Law 109-58; 119 Stat. 1106)) is amended--
            (1) by redesignating the first clause (v) as clause (vi);
            (2) by redesignating the second clause (v) as clause (vii); 
        and
            (3) by inserting after clause (iv) the following:
    ``(v) A State shall be held harmless and not be required to revise 
its State implementation plan under section 110 to account for the 
emissions from a waiver granted by the Administrator under clause 
(ii).''.

SEC. 2004. BOUTIQUE FUEL REDUCTIONS.

    Section 211(c)(4)(C)(vii) of the Clean Air Act (42 U.S.C. 
7545(c)(4)(C)(vii)) (as redesignated by section 2003(2)) is amended by 
striking subclauses (III) and (IV) and inserting the following:
    ``(III) The Administrator shall remove a fuel from the list 
published under subclause (II) if a fuel ceases to be included in a 
State implementation plan or if a fuel in a State implementation plan 
is identical to a Federal fuel formulation implemented by the 
Administrator and shall reduce the total number of fuels permitted to 
be included in a State implementation plan or revision on the list 
published under subclause (II) accordingly.
    ``(IV) Subclause (I) shall not limit the authority of the 
Administrator to approve a control or prohibition respecting any new 
fuel under this paragraph in a State implementation plan or revision to 
a State implementation plan if the new fuel completely replaces a fuel 
on the list published under subclause (II).''.

SEC. 2005. FISCHER-TROPSCH FUELS.

    (a) In General.--In cooperation with the Secretary of Energy, the 
Secretary of Defense, the Administrator of the Federal Aviation 
Administration, Secretary of Health and Human Services, and Fischer-
Tropsch industry representatives, the Administrator shall--
            (1) conduct a research and demonstration program to 
        evaluate the air quality benefits of ultra-clean Fischer-
        Tropsch transportation fuel, including diesel and jet fuel;
            (2) evaluate the use of ultra-clean Fischer-Tropsch 
        transportation fuel as a mechanism for reducing engine exhaust 
        emissions; and
            (3) submit recommendations to Congress on the most 
        effective use and associated benefits of these ultra-clean fuel 
        for reducing public exposure to exhaust emissions.
    (b) Guidance and Technical Support.--The Administrator shall, to 
the extent necessary, issue any guidance or technical support documents 
that would facilitate the effective use and associated benefit of 
Fischer-Tropsch fuel and blends.
    (c) Requirements.--The program described in subsection (a) shall 
consider--
            (1) the use of neat (100 percent) Fischer-Tropsch fuel and 
        blends with conventional crude oil-derived fuel for heavy-duty 
        and light-duty diesel engines and the aviation sector; and
            (2) the production costs associated with domestic 
        production of those ultra clean fuel and prices for consumers.
    (d) Reports.--The Administrator shall submit to the Committee on 
Environment and Public Works of the Senate and the Committee on Energy 
and Commerce of the House of Representatives--
            (1) not later than October 1, 2006, an interim report on 
        actions taken to carry out this section; and
            (2) not later than December 1, 2007, a final report on 
        actions taken to carry out this section.

  Subtitle B--Accelerated Depreciation for Construction and Expansion

SEC. 2011. EXPANSION OF ELECTION TO EXPENSE CERTAIN REFINERIES.

    (a) Full Expensing.--Section 179C(a) of the Internal Revenue Code 
of 1986 (relating to treatment as expenses) is amended by striking ``50 
percent of''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.

                       TITLE III--INFRASTRUCTURE

                  Subtitle A--Accelerated Depreciation

SEC. 3001. TREATMENT OF CERTAIN OIL AND GAS PIPELINES AS 5-YEAR 
              PROPERTY FOR DEPRECIATION PURPOSES.

    (a) In General.--Section 168(e)(3)(B) of the Internal Revenue Code 
of 1986 (relating to 5-year property) is amended--
            (1) by striking ``and'' at the end of clause (v),
            (2) by striking the period at the end of clause (vi)(III) 
        and inserting ``, and'', and
            (3) by inserting after clause (vi)(III) the following new 
        clause:
                            ``(vii) any oil or natural gas pipeline 
                        described in asset class 13.2, the original use 
                        of which commences with the taxpayer after the 
                        date of the enactment of this clause.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

                    Subtitle B--Tax-Exempt Financing

SEC. 3011. TAX-EXEMPT FINANCING OF ENERGY TRANSPORTATION INFRASTRUCTURE 
              NOT SUBJECT TO PRIVATE BUSINESS USE TEST.

    (a) In General.--Section 141(b)(6) of the Internal Revenue Code of 
1986 (defining private business use ) is amended by adding at the end 
the following new subparagraph:
                    ``(C) Exception for certain energy transportation 
                infrastructure.--
                            ``(i) In general.--For purposes of the 1st 
                        sentence of subparagraph (A), the operation or 
                        use of any property described in clause (ii) by 
                        any person which is not a governmental unit 
                        shall not be considered a private business use.
                            ``(ii) Property described.--For purposes of 
                        clause (i), the following property is described 
                        in this clause:
                                    ``(I) Any tangible property used to 
                                transmit electricity at 230 or more 
                                kilovolts if such property is placed in 
                                service as part of a State or multi-
                                State effort to improve interstate 
                                electricity transmission and that is 
                                physically located in not less than 2 
                                States.
                                    ``(II) Any tangible property used 
                                as a natural gas transmission pipeline 
                                if such property is placed in service 
                                as part of a State or multi-State 
                                effort to improve interstate natural 
                                gas transmission and that is physically 
                                located in not less than 2 States or in 
                                a geographic area determined by the 
                                Federal Energy Regulatory Commission to 
                                experience natural gas transmission 
                                capacity constraints or congestion.
                                    ``(III) Any tangible property used 
                                as a transmission pipeline for crude 
                                oil or diesel fuel produced from coal 
                                or other synthetic petroleum products 
                                produced from coal if such property is 
                                placed in service as part of a State or 
                                multi-State effort to improve the 
                                transportation of crude oil or diesel 
                                fuel produced from coal or other 
                                synthetic petroleum products produced 
                                from coal.''.
    (b) Exception to Private Loan Financing Test.--Section 141(c)(2) of 
the Internal Revenue Code of 1986 (defining the private loan financing 
test) is amended--
            (1) by striking the period at the end of subparagraph (B) 
        and adding ``, or''; and
            (2) by adding at the end the following new subparagraph:
                    ``(C) enables the borrower to finance certain 
                energy transportation infrastructure as defined in 
                section 141(b)(6)(C)(ii).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

                  Subtitle C--Emergency Service Route

SEC. 3021. EMERGENCY SERVICE ROUTE.

    Section 1948 of the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (Public Law 109-59; 119 
Stat. 1514) is repealed.

                 TITLE IV--CONSERVATION AND EFFICIENCY

                       Subtitle A--CAFE Standards

SEC. 4001. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE 
              AVERAGE FUEL ECONOMY.

    Section 32902 of title 49, United States Code, is amended by 
striking subsection (f) and inserting the following:
    ``(f) Considerations for Decisions on Maximum Feasible Average Fuel 
Economy.--When deciding maximum feasible average fuel economy under 
this section, the Secretary of Transportation shall consider the 
following matters:
            ``(1) Technological feasibility.
            ``(2) Economic practicability.
            ``(3) The effect of other motor vehicle standards of the 
        Federal Government on fuel economy.
            ``(4) The need of the United States to conserve energy.
            ``(5) The desirability of reducing United States dependence 
        on imported oil.
            ``(6) The effects of the average fuel economy standards on 
        motor vehicle and passenger safety.
            ``(7) The effects of increased fuel economy on air quality.
            ``(8) The adverse effects of average fuel economy standards 
        on the relative competitiveness of manufacturers.
            ``(9) The effects of compliance with average fuel economy 
        standards on levels of employment in the United States.
            ``(10) The cost and lead time necessary for the 
        introduction of the necessary new technologies.
            ``(11) The potential for advanced technology vehicles, such 
        as hybrid and fuel cell vehicles, to contribute to the 
        achievement of significant reductions in fuel consumption.
            ``(12) The extent to which the necessity for vehicle 
        manufacturers to incur near-term costs to comply with the 
        average fuel economy standards adversely affects the 
        availability of resources for the development of advanced 
        technology for the propulsion of motor vehicles.
            ``(13) The report of the National Research Council entitled 
        `Effectiveness and Impact of Corporate Average Fuel Economy 
        Standards', issued in January 2002.''.

SEC. 4002. INCREASED FUEL ECONOMY STANDARDS.

    (a) New Regulations Required for Passenger Automobiles.--
            (1) Requirement.--
                    (A) In general.--The Secretary of Transportation 
                shall issue, under section 32902 of title 49, United 
                States Code, new regulations setting forth increased 
                average fuel economy standards for passenger 
                automobiles.
                    (B) Determination.--The regulations shall be 
                determined on the basis of the maximum feasible average 
                fuel economy levels for the passenger automobiles, 
                taking into consideration the matters set forth in 
                subsection (f) of that section.
            (2) Time for issuing regulations.--Not later than 18 months 
        after the date of enactment of this Act, the Secretary of 
        Transportation shall issue the final regulations under 
        paragraph (1).
    (b) Phased Increases.--The regulations issued pursuant to 
subsection (a) shall specify standards that take effect successively 
over several vehicle model years not exceeding 15 vehicle model years.
    (c) Clarification of Authority to Amend Passenger Automobile 
Standard.--Section 32902(b) of title 49, United States Code, is amended 
by inserting before the period at the end the following: ``or such 
other standard as the Secretary prescribes under subsection (c)''.
    (d) Environmental Assessment.--When issuing final regulations 
setting forth increased average fuel economy standards under subsection 
(a) or (c) of section 32902 of title 49, United States Code, the 
Secretary of Transportation shall issue an environmental assessment of 
the effects of the increased standards on the environment under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Transportation $5,000,000 for each of 
fiscal years 2007 through 2012 for carrying out this section and for 
administering the regulations issued pursuant to this section.

SEC. 4003. EXPEDITED PROCEDURES FOR CONGRESSIONAL INCREASE IN FUEL 
              ECONOMY STANDARDS.

    (a) Condition for Applicability.--If the Secretary of 
Transportation fails to issue final regulations with respect to 
passenger automobiles under section 4002 on or before the date by which 
such final regulations are required by that section to be issued, 
respectively, this section shall apply with respect to a bill described 
in subsection (b).
    (b) Bill.--A bill referred to in subsection (a) is a bill that 
satisfies the following requirements:
            (1) Introduction.--The bill is introduced by 1 or more 
        Members of Congress by not later than 60 days after the date 
        referred to in subsection (a).
            (2) Title.--The title of the bill is as follows: ``A bill 
        to establish new average fuel economy standards for certain 
        motor vehicles.''.
            (3) Text.--The bill provides after the enacting clause only 
        the text specified in subparagraph (A) or any provision 
        described in subparagraph (B), as follows:
                    (A) Passenger automobiles.--In the case of a bill 
                relating to a failure timely to issue final regulations 
                relating to passenger automobiles, the following text, 
                with the first blank space being filled in with the 
                number of a year and the second blank space being 
                filled in with a number:

``SECTION 1. PASSENGER AUTOMOBILES.

    ``Section 32902 of title 49, United States Code, is amended by 
striking subsection (b) and inserting the following:
    `(b) Passenger Automobiles.--Except as provided in this section, 
the average fuel economy standard for passenger automobiles 
manufactured by a manufacturer in a model year after model year __ 
shall be __ miles per gallon.'.''
                    (B) Substitute text.--Any text substituted by an 
                amendment that is in order under subsection (c)(3).
    (c) Expedited Procedures.--A bill described in subsection (b) shall 
be considered in a House of Congress in accordance with the procedures 
provided for the consideration of joint resolutions in paragraphs (3) 
through (8) of section 8066(c) of the Department of Defense 
Appropriations Act, 1985 (as contained in section 101(h) of Public Law 
98-473; 98 Stat. 1936), with the following exceptions:
            (1) References to resolution.--The references in those 
        paragraphs to a resolution shall be deemed to refer to the bill 
        described in subsection (b).
            (2) Committees of jurisdiction.--The committees to which 
        the bill is referred under this subsection shall--
                    (A) in the Senate, be the Committee on Commerce, 
                Science, and Transportation; and
                    (B) in the House of Representatives, be the 
                Committee on Energy and Commerce.
            (3) Amendments.--
                    (A) Amendments in order.--Only 4 amendments to the 
                bill are in order in each House, as follows:
                            (i) 2 amendments proposed by the majority 
                        leader of that House.
                            (ii) 2 amendments proposed by the minority 
                        leader of that House.
                    (B) Form and content.--To be in order under 
                subparagraph (A), an amendment shall propose to strike 
                all after the enacting clause and substitute text that 
                only includes the same text as is proposed to be 
                stricken except for 1 or more different numbers in the 
                text.
                    (C) Requirements for consideration.--Subparagraph 
                (B) of section 8066(c)(5) of the Department of Defense 
                Appropriations Act, 1985 (98 Stat. 1936), shall apply 
                to the consideration of each amendment proposed under 
                this paragraph in the same manner as that subparagraph 
                applies to debatable motions.

              Subtitle B--Natural Gas Energy Star Program

SEC. 4011. EFFICIENCY.

    (a) Methane Reduction Projects.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator of the Federal Energy 
        Regulatory Commission shall solicit applications from eligible 
        entities, as determined by the Administrator, for grants under 
        the Natural Gas STAR Program under the Environmental Protection 
        Agency to pay the Federal share of the cost of projects 
        relating to the reduction of methane emissions in the oil and 
        gas industries.
            (2) Project inclusions.--To receive a grant under paragraph 
        (1), the application of the eligible entity shall include--
                    (A) an identification of 1 or more technologies 
                used to achieve a reduction in the emission of methane; 
                and
                    (B) an analysis of the cost-effectiveness of a 
                technology described in subparagraph (A).
            (3) Limitation.--A grant to an eligible entity under this 
        subsection shall not exceed $50,000.
            (4) Federal share.--The Federal share of the cost of a 
        project under this subsection shall not exceed 50 percent.
            (5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        the period of fiscal years 2006 through 2010.
    (b) Efficiency Promotion Workshops.--
            (1) In general.--The Administrator, in conjunction with the 
        Interstate Oil and Gas Compact Commission, shall conduct a 
        series of technical workshops to provide information to 
        officials in oil- and gas-producing States relating to methane 
        emission reduction techniques.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        the period of fiscal years 2006 through 2010.
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