II 

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. 

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 ‘‘Energy Production, Refining, Infrastructure, Conserva6 tion and Efficiency Act’’ or the ‘‘Energy PRICE Act’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—ENERGY PRODUCTION 


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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. 


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Sec. 4003. Expedited procedures for congressional increase in fuel economy 

standards. 

Subtitle B—Natural Gas Energy Star Program 

Sec. 4011. Efficiency. 

1 TITLE I—ENERGY PRODUCTION 

2 Subtitle A—Arctic Coastal Plain 

3 Domestic Energy 

4 SEC. 1001. DEFINITIONS. 

5 In this subtitle: 

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

7 Plain’’ means that area identified as such in the 

8 map entitled ‘‘Arctic National Wildlife Refuge’’, 

9 dated August 1980, as referenced in section 1002(b) 

10 of the Alaska National Interest Lands Conservation 

11 Act of 1980 (16 U.S.C. 3142(b)(1)), comprising ap12 proximately 1,549,000 acres, and as described in ap13 pendix I to part 37 of title 50, Code of Federal Reg14 ulations. 

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

16 as otherwise provided, means the Secretary of the 

17 Interior or the Secretary’s designee. 

18 SEC. 1002. LEASING PROGRAM FOR LANDS WITHIN THE 

19 COASTAL PLAIN. 

20 (a) IN GENERAL.—The Secretary shall take such ac21 tions as are necessary— 

22 (1) to establish and implement in accordance 

23 with this Act a competitive oil and gas leasing proVerDate Aug 31 2005 23:36 May 06, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2755.IS S2755

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1 gram under the Mineral Leasing Act (30 U.S.C. 181 

2 et seq.) that will result in an environmentally sound 

3 program for the exploration, development, and pro4 duction of the oil and gas resources of the Coastal 

5 Plain; and 

6 (2) to administer the provisions of this subtitle 

7 through regulations, lease terms, conditions, restric8 tions, prohibitions, stipulations, and other provisions 

9 that ensure the oil and gas exploration, development, 

10 and production activities on the Coastal Plain will 

11 result in no significant adverse effect on fish and 

12 wildlife, their habitat, subsistence resources, and the 

13 environment, and including, in furtherance of this 

14 goal, by requiring the application of the best com15 mercially available technology for oil and gas explo16 ration, development, and production to all explo17 ration, development, and production operations 

18 under this subtitle in a manner that ensures the re19 ceipt of fair market value by the public for the min20 eral resources to be leased. 

21 (b) REPEAL.—Section 1003 of the Alaska National 

22 Interest Lands Conservation Act of 1980 (16 U.S.C. 

23 3143) is repealed. 

24 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER25 TAIN OTHER LAWS.— 


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1 (1) COMPATIBILITY.—For purposes of the Na2 tional Wildlife Refuge System Administration Act of 

3 1966, the oil and gas leasing program and activities 

4 authorized by this section in the Coastal Plain are 

5 deemed to be compatible with the purposes for which 

6 the Arctic National Wildlife Refuge was established, 

7 and that no further findings or decisions are re8 quired to implement this determination. 

9 (2) ADEQUACY OF THE DEPARTMENT OF THE

10 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

11 STATEMENT.—The ‘‘Final Legislative Environ12 mental Impact Statement’’ (April 1987) on the 

13 Coastal Plain prepared pursuant to section 1002 of 

14 the Alaska National Interest Lands Conservation 

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

16 of the National Environmental Policy Act of 1969 

17 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the re18 quirements under the National Environmental Policy 

19 Act of 1969 that apply with respect to actions au20 thorized to be taken by the Secretary to develop and 

21 promulgate the regulations for the establishment of 

22 a leasing program authorized by this subtitle before 

23 the conduct of the first lease sale. 

24 (3) COMPLIANCE WITH NEPA FOR OTHER AC25 TIONS.—Before conducting the first lease sale under 


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1 this subtitle, the Secretary shall prepare an environ2 mental impact statement under the National Envi3 ronmental Policy Act of 1969 with respect to the ac4 tions authorized by this subtitle that are not re5 ferred to in paragraph (2). Notwithstanding any 

6 other law, the Secretary is not required to identify 

7 nonleasing alternative courses of action or to analyze 

8 the environmental effects of such courses of action. 

9 The Secretary shall only identify a preferred action 

10 for such leasing and a single leasing alternative, and 

11 analyze the environmental effects and potential miti12 gation measures for those two alternatives. The 

13 identification of the preferred action and related 

14 analysis for the first lease sale under this subtitle 

15 shall be completed within 18 months after the date 

16 of the enactment of this Act. The Secretary shall 

17 only consider public comments that specifically ad18 dress the Secretary’s preferred action and that are 

19 filed within 20 days after publication of an environ20 mental analysis. Notwithstanding any other law, 

21 compliance with this paragraph is deemed to satisfy 

22 all requirements for the analysis and consideration 

23 of the environmental effects of proposed leasing 

24 under this subtitle. 


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1 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR2 ITY.—Nothing in this subtitle shall be considered to ex3 pand or limit State and local regulatory authority. 

4 (e) SPECIAL AREAS.— 

5 (1) IN GENERAL.—The Secretary, after con6 sultation with the State of Alaska, the city of 

7 Kaktovik, and the North Slope Borough, may des8 ignate up to a total of 45,000 acres of the Coastal 

9 Plain as a Special Area if the Secretary determines 

10 that the Special Area is of such unique character 

11 and interest so as to require special management 

12 and regulatory protection. The Secretary shall des13 ignate as such a Special Area the Sadlerochit Spring 

14 area, comprising approximately 4,000 acres as de15 picted on such map as shall be identified by the Sec16 retary. 

17 (2) MANAGEMENT.—Each such Special Area 

18 shall be managed so as to protect and preserve the 

19 area’s unique and diverse character including its 

20 fish, wildlife, and subsistence resource values. 

21 (3) EXCLUSION FROM LEASING OR SURFACE

22 OCCUPANCY.—The Secretary may exclude any Spe23 cial Area from leasing. If the Secretary leases a Spe24 cial Area, or any part thereof, for purposes of oil 

25 and gas exploration, development, production, and 


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1 related activities, there shall be no surface occu2 pancy of the lands comprising the Special Area. 

3 (4) DIRECTIONAL DRILLING.—Notwithstanding 

4 the other provisions of this subsection, the Secretary 

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

6 terms that permit the use of horizontal drilling tech7 nology from sites on leases located outside the area. 

8 (f) LIMITATION ON CLOSED AREAS.—The Sec9 retary’s sole authority to close lands within the Coastal 

10 Plain to oil and gas leasing and to exploration, develop11 ment, and production is that set forth in this subtitle. 

12 (g) REGULATIONS.— 

13 (1) IN GENERAL.—The Secretary shall pre14 scribe such regulations as may be necessary to carry 

15 out this subtitle, including rules and regulations re16 lating to protection of the fish and wildlife, their 

17 habitat, subsistence resources, and environment of 

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

19 the date of the enactment of this Act. 

20 (2) REVISION OF REGULATIONS.—The Sec21 retary shall periodically review and, if appropriate, 

22 revise the rules and regulations issued under sub23 section (a) to reflect any significant biological, envi24 ronmental, or engineering data that come to the Sec25 retary’s attention. 


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1 SEC. 1003. LEASE SALES. 

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

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

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

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

6 (b) PROCEDURES.—The Secretary shall, by regula7 tion, establish procedures for— 

8 (1) receipt and consideration of sealed nomina9 tions for any area in the Coastal Plain for inclusion 

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

11 a lease sale; 

12 (2) the holding of lease sales after such nomina13 tion process; and 

14 (3) public notice of and comment on designa15 tion of areas to be included in, or excluded from, a 

16 lease sale. 

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

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

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

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

21 lease those tracts the Secretary considers to have the 

22 greatest potential for the discovery of hydrocarbons, tak23 ing into consideration nominations received pursuant to 

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

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

26 shall— 


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1 (1) conduct the first lease sale under this sub2 title within 22 months after the date of the enact3 ment of this Act; and 

4 (2) conduct additional sales so long as sufficient 

5 interest in development exists to warrant, in the Sec6 retary’s judgment, the conduct of such sales. 

7 SEC. 1004. GRANT OF LEASES BY THE SECRETARY. 

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

9 highest responsible qualified bidder in a lease sale con10 ducted pursuant to section 1003 any lands to be leased 

11 on the Coastal Plain upon payment by the lessee of such 

12 bonus as may be accepted by the Secretary. 

13 (b) SUBSEQUENT TRANSFERS.—No lease issued 

14 under this subtitle may be sold, exchanged, assigned, sub15 let, or otherwise transferred except with the approval of 

16 the Secretary. Prior to any such approval the Secretary 

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

18 of, the Attorney General. 

19 SEC. 1005. LEASE TERMS AND CONDITIONS. 

20 (a) IN GENERAL.—An oil or gas lease issued pursu21 ant to this subtitle shall— 

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

less than 121 23 ⁄2 percent in amount or value of the 

24 production removed or sold from the lease, as deterVerDate Aug 31 2005 07:36 May 09, 2006 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2755.IS S2755

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1 mined by the Secretary under the regulations appli2 cable to other Federal oil and gas leases; 

3 (2) provide that the Secretary may close, on a 

4 seasonal basis, portions of the Coastal Plain to ex5 ploratory drilling activities as necessary to protect 

6 caribou calving areas and other species of fish and 

7 wildlife; 

8 (3) require that the lessee of lands within the 

9 Coastal Plain shall be fully responsible and liable for 

10 the reclamation of lands within the Coastal Plain 

11 and any other Federal lands that are adversely af12 fected in connection with exploration, development, 

13 production, or transportation activities conducted 

14 under the lease and within the Coastal Plain by the 

15 lessee or by any of the subcontractors or agents of 

16 the lessee; 

17 (4) provide that the lessee may not delegate or 

18 convey, by contract or otherwise, the reclamation re19 sponsibility and liability to another person without 

20 the express written approval of the Secretary; 

21 (5) provide that the standard of reclamation for 

22 lands required to be reclaimed under this subtitle 

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

24 of supporting the uses which the lands were capable 

25 of supporting prior to any exploration, development, 


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1 or production activities, or upon application by the 

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

3 Secretary; 

4 (6) contain terms and conditions relating to 

5 protection of fish and wildlife, their habitat, and the 

6 environment as required pursuant to section 

7 10023(a)(2); 

8 (7) provide that the lessee, its agents, and its 

9 contractors use best efforts to provide a fair share, 

10 as determined by the level of obligation previously 

11 agreed to in the 1974 agreement implementing sec12 tion 29 of the Federal Agreement and Grant of 

13 Right of Way for the Operation of the Trans-Alaska 

14 Pipeline, of employment and contracting for Alaska 

15 Natives and Alaska Native Corporations from 

16 throughout the State; 

17 (8) prohibit the export of oil produced under 

18 the lease; and 

19 (9) contain such other provisions as the Sec20 retary determines necessary to ensure compliance 

21 with the provisions of this subtitle and the regula22 tions issued under this subtitle. 

23 (b) PROJECT LABOR AGREEMENTS.—The Secretary, 

24 as a term and condition of each lease under this subtitle 

25 and in recognizing the Government’s proprietary interest 


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1 in labor stability and in the ability of construction labor 

2 and management to meet the particular needs and condi3 tions of projects to be developed under the leases issued 

4 pursuant to this subtitle and the special concerns of the 

5 parties to such leases, shall require that the lessee and 

6 its agents and contractors negotiate to obtain a project 

7 labor agreement for the employment of laborers and me8 chanics on production, maintenance, and construction 

9 under the lease. 

10 SEC. 1006. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

11 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

12 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

13 The Secretary shall, consistent with the requirements of 

14 section 1002, administer the provisions of this subtitle 

15 through regulations, lease terms, conditions, restrictions, 

16 prohibitions, stipulations, and other provisions that— 

17 (1) ensure the oil and gas exploration, develop18 ment, and production activities on the Coastal Plain 

19 will result in no significant adverse effect on fish 

20 and wildlife, their habitat, and the environment; 

21 (2) require the application of the best commer22 cially available technology for oil and gas explo23 ration, development, and production on all new ex24 ploration, development, and production operations; 

25 and 


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1 (3) ensure that the maximum amount of sur2 face acreage covered by production and support fa3 cilities, including airstrips and any areas covered by 

4 gravel berms or piers for support of pipelines, does 

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

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

7 The Secretary shall also require, with respect to any pro8 posed drilling and related activities, that— 

9 (1) a site-specific analysis be made of the prob10 able effects, if any, that the drilling or related activi11 ties will have on fish and wildlife, their habitat, and 

12 the environment; 

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

14 and mitigate (in that order and to the extent prac15 ticable) any significant adverse effect identified 

16 under paragraph (1); and 

17 (3) the development of the plan shall occur 

18 after consultation with the agency or agencies hav19 ing jurisdiction over matters mitigated by the plan. 

20 (c) REGULATIONS TO PROTECT COASTAL PLAIN

21 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

22 AND THE ENVIRONMENT.—Before implementing the leas23 ing program authorized by this subtitle, the Secretary 

24 shall prepare and promulgate regulations, lease terms, 

25 conditions, restrictions, prohibitions, stipulations, and 


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1 other measures designed to ensure that the activities un2 dertaken on the Coastal Plain under this subtitle are con3 ducted in a manner consistent with the purposes and envi4 ronmental requirements of this subtitle. 

5 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI6 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

7 proposed regulations, lease terms, conditions, restrictions, 

8 prohibitions, and stipulations for the leasing program 

9 under this subtitle shall require compliance with all appli10 cable provisions of Federal and State environmental law 

11 and shall also require the following: 

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

13 and environmental mitigation measures set forth in 

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

15 ‘‘Final Legislative Environmental Impact State16 ment’’ (April 1987) on the Coastal Plain. 

17 (2) Seasonal limitations on exploration, develop18 ment, and related activities, where necessary, to 

19 avoid significant adverse effects during periods of 

20 concentrated fish and wildlife breeding, denning, 

21 nesting, spawning, and migration. 

22 (3) That exploration activities, except for sur23 face geological studies, be limited to the period be24 tween approximately November 1 and May 1 each 

25 year and that exploration activities shall be supVerDate Aug 31 2005 23:36 May 06, 2006 Jkt 049200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S2755.IS S2755

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1 ported by ice roads, winter trails with adequate snow 

2 cover, ice pads, ice airstrips, and air transport meth3 ods, except that such exploration activities may 

4 occur at other times, if the Secretary finds that such 

5 exploration will have no significant adverse effect on 

6 the fish and wildlife, their habitat, and the environ7 ment of the Coastal Plain. 

8 (4) Design safety and construction standards 

9 for all pipelines and any access and service roads, 

10 that— 

11 (A) minimize, to the maximum extent pos12 sible, adverse effects upon the passage of mi13 gratory species such as caribou; and 

14 (B) minimize adverse effects upon the flow 

15 of surface water by requiring the use of cul16 verts, bridges, and other structural devices. 

17 (5) Prohibitions on public access and use on all 

18 pipeline access and service roads. 

19 (6) Stringent reclamation and rehabilitation re20 quirements, consistent with the standards set forth 

21 in this subtitle, requiring the removal from the 

22 Coastal Plain of all oil and gas development and 

23 production facilities, structures, and equipment upon 

24 completion of oil and gas production operations, ex25 cept that the Secretary may exempt from the reVerDate Aug 31 2005 23:36 May 06, 2006 Jkt 049200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S2755.IS S2755

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1 quirements of this paragraph those facilities, struc2 tures, or equipment that the Secretary determines 

3 would assist in the management of the Arctic Na4 tional Wildlife Refuge and that are donated to the 

5 United States for that purpose. 

6 (7) Appropriate prohibitions or restrictions on 

7 access by all modes of transportation. 

8 (8) Appropriate prohibitions or restrictions on 

9 sand and gravel extraction. 

10 (9) Consolidation of facility siting. 

11 (10) Appropriate prohibitions or restrictions on 

12 use of explosives. 

13 (11) Avoidance, to the extent practicable, of 

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

15 natural surface drainage patterns, wetlands, and ri16 parian habitats; and the regulation of methods or 

17 techniques for developing or transporting adequate 

18 supplies of water for exploratory drilling. 

19 (12) Avoidance or reduction of air traffic-re20 lated disturbance to fish and wildlife. 

21 (13) Treatment and disposal of hazardous and 

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

23 muds and cuttings, and domestic wastewater, includ24 ing an annual waste management report, a haz25 ardous materials tracking system, and a prohibition 


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1 on chlorinated solvents, in accordance with applica2 ble Federal and State environmental law. 

3 (14) Fuel storage and oil spill contingency plan4 ning. 

5 (15) Research, monitoring, and reporting re6 quirements. 

7 (16) Field crew environmental briefings. 

8 (17) Avoidance of significant adverse effects 

9 upon subsistence hunting, fishing, and trapping by 

10 subsistence users. 

11 (18) Compliance with applicable air and water 

12 quality standards. 

13 (19) Appropriate seasonal and safety zone des14 ignations around well sites, within which subsistence 

15 hunting and trapping shall be limited. 

16 (20) Reasonable stipulations for protection of 

17 cultural and archeological resources. 

18 (21) All other protective environmental stipula19 tions, restrictions, terms, and conditions deemed 

20 necessary by the Secretary. 

21 (e) CONSIDERATIONS.—In preparing and promul22 gating regulations, lease terms, conditions, restrictions, 

23 prohibitions, and stipulations under this section, the Sec24 retary shall consider the following: 


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1 (1) The stipulations and conditions that govern 

2 the National Petroleum Reserve-Alaska leasing pro3 gram, as set forth in the 1999 Northeast National 

4 Petroleum Reserve-Alaska Final Integrated Activity 

5 Plan/Environmental Impact Statement. 

6 (2) The environmental protection standards 

7 that governed the initial Coastal Plain seismic explo8 ration program under parts 37.31 to 37.33 of title 

9 50, Code of Federal Regulations. 

10 (3) The land use stipulations for exploratory 

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

12 forth in Appendix 2 of the August 9, 1983, agree13 ment between Arctic Slope Regional Corporation and 

14 the United States. 

15 (f) FACILITY CONSOLIDATION PLANNING.— 

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

17 providing for public notice and comment, prepare 

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

19 direct the siting and construction of facilities for the 

20 exploration, development, production, and transpor21 tation of Coastal Plain oil and gas resources. 

22 (2) OBJECTIVES.—The plan shall have the fol23 lowing objectives: 

24 (A) Avoiding unnecessary duplication of fa25 cilities and activities. 


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1 (B) Encouraging consolidation of common 

2 facilities and activities. 

3 (C) Locating or confining facilities and ac4 tivities to areas that will minimize impact on 

5 fish and wildlife, their habitat, and the environ6 ment. 

7 (D) Utilizing existing facilities wherever 

8 practicable. 

9 (E) Enhancing compatibility between wild10 life values and development activities. 

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

12 shall— 

13 (1) manage public lands in the Coastal Plain 

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

15 the Alaska National Interest Lands Conservation 

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

17 (2) ensure that local residents shall have rea18 sonable access to public lands in the Coastal Plain 

19 for traditional uses. 

20 SEC. 1007. EXPEDITED JUDICIAL REVIEW. 

21 (a) FILING OF COMPLAINT.— 

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

23 complaint seeking judicial review of any provision of 

24 this subtitle or any action of the Secretary under 


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1 this subtitle shall be filed in any appropriate district 

2 court of the United States— 

3 (A) except as provided in subparagraph 

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

5 date of the action being challenged; or 

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

7 on grounds arising after such period, within 90 

8 days after the complainant knew or reasonably 

9 should have known of the grounds for the com10 plaint. 

11 (2) VENUE.—Any complaint seeking judicial re12 view of an action of the Secretary under this subtitle 

13 may be filed only in the United States Court of Ap14 peals for the District of Columbia. 

15 (3) LIMITATION ON SCOPE OF CERTAIN RE16 VIEW.—Judicial review of a Secretarial decision to 

17 conduct a lease sale under this subtitle, including 

18 the environmental analysis thereof, shall be limited 

19 to whether the Secretary has complied with the 

20 terms of this subtitle and shall be based upon the 

21 administrative record of that decision. The Sec22 retary’s identification of a preferred course of action 

23 to enable leasing to proceed and the Secretary’s 

24 analysis of environmental effects under this subtitle 

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1 wise by clear and convincing evidence to the con2 trary. 

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

4 Secretary with respect to which review could have been 

5 obtained under this section shall not be subject to judicial 

6 review in any civil or criminal proceeding for enforcement. 

7 SEC. 1008. FEDERAL AND STATE DISTRIBUTION OF REVE8 NUES. 

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law, of the amount of adjusted bonus, rental, and 

11 royalty revenues from oil and gas leasing and operations 

12 authorized under this subtitle— 

13 (1) 50 percent shall be paid to the State of 

14 Alaska; and 

15 (2) except as provided in section 1011(d), the 

16 balance shall be deposited into the Treasury as mis17 cellaneous receipts. 

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

19 of Alaska under this section shall be made semiannually. 

20 (c) USE OF BONUS PAYMENTS FOR LOW-INCOME

21 HOME ENERGY ASSISTANCE.—Amounts that are received 

22 by the United States as bonuses for leases under this sub23 title and deposited into the Treasury under subsection 

24 (a)(2) may be appropriated to the Secretary of the Health 

25 and Human Services, in addition to amounts otherwise 


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1 available, to provide assistance under the Low-Income 

2 Home Energy Assistance Act of 1981 (42 U.S.C. 8621 

3 et seq.). 

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

5 (a) EXEMPTION.—Title XI of the Alaska National In6 terest Lands Conservation Act of 1980 (16 U.S.C. 3161 

7 et seq.) shall not apply to the issuance by the Secretary 

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

9 185) of rights-of-way and easements across the Coastal 

10 Plain for the transportation of oil and gas. 

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

12 include in any right-of-way or easement referred to in sub13 section (a) such terms and conditions as may be necessary 

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

15 in a significant adverse effect on the fish and wildlife, sub16 sistence resources, their habitat, and the environment of 

17 the Coastal Plain, including requirements that facilities be 

18 sited or designed so as to avoid unnecessary duplication 

19 of roads and pipelines. 

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

21 regulations under section 1002(g) provisions granting 

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

23 of this section. 


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1 SEC. 1010. CONVEYANCE. 

2 In order to maximize Federal revenues by removing 

3 clouds on title to lands and clarifying land ownership pat4 terns within the Coastal Plain, the Secretary, notwith5 standing the provisions of section 1302(h)(2) of the Alas6 ka National Interest Lands Conservation Act (16 U.S.C. 

7 3192(h)(2)), shall convey— 

8 (1) to the Kaktovik Inupiat Corporation the 

9 surface estate of the lands described in paragraph 1 

10 of Public Land Order 6959, to the extent necessary 

11 to fulfill the Corporation’s entitlement under section 

12 12 of the Alaska Native Claims Settlement Act (43 

13 U.S.C. 1611) in accordance with the terms and con14 ditions of the Agreement between the Department of 

15 the Interior, the United States Fish and Wildlife 

16 Service, the Bureau of Land Management, and the 

17 Kaktovik Inupiat Corporation effective January 22, 

18 1993; and 

19 (2) to the Arctic Slope Regional Corporation 

20 the remaining subsurface estate to which it is enti21 tled pursuant to the August 9, 1983, agreement be22 tween the Arctic Slope Regional Corporation and the 

23 United States of America. 

24 SEC. 1011. LOCAL GOVERNMENT IMPACT AID AND COMMU25 NITY SERVICE ASSISTANCE. 

26 (a) FINANCIAL ASSISTANCE AUTHORIZED.— 


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

2 amounts available from the Coastal Plain Local Gov3 ernment Impact Aid Assistance Fund established by 

4 subsection (d) to provide timely financial assistance 

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

6 that are directly impacted by the exploration for or 

7 production of oil and gas on the Coastal Plain under 

8 this subtitle. 

9 (2) ELIGIBLE ENTITIES.—The North Slope 

10 Borough, Kaktovik, and other boroughs, municipal 

11 subdivisions, villages, and any other community or12 ganized under Alaska State law shall be eligible for 

13 financial assistance under this section. 

14 (b) USE OF ASSISTANCE.—Financial assistance 

15 under this section may be used only for— 

16 (1) planning for mitigation of the potential ef17 fects of oil and gas exploration and development on 

18 environmental, social, cultural, recreational and sub19 sistence values; 

20 (2) implementing mitigation plans and main21 taining mitigation projects; 

22 (3) developing, carrying out, and maintaining 

23 projects and programs that provide new or expanded 

24 public facilities and services to address needs and 

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1 fighting, police, water, waste treatment, medivac, 

2 and medical services; and 

3 (4) establishment of a coordination office, by 

4 the North Slope Borough, in the City of Kaktovik, 

5 which shall— 

6 (A) coordinate with and advise developers 

7 on local conditions, impact, and history of the 

8 areas utilized for development; and 

9 (B) provide to the Committee on Resources 

10 of the Senate and the Committee on Energy 

11 and Resources of the Senate an annual report 

12 on the status of coordination between devel13 opers and the communities affected by develop14 ment. 

15 (c) APPLICATION.— 

16 (1) IN GENERAL.—Any community that is eligi17 ble for assistance under this section may submit an 

18 application for such assistance to the Secretary, in 

19 such form and under such procedures as the Sec20 retary may prescribe by regulation. 

21 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

22 community located in the North Slope Borough may 

23 apply for assistance under this section either directly 

24 to the Secretary or through the North Slope Bor25 ough. 


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1 (3) APPLICATION ASSISTANCE.—The Secretary 

2 shall work closely with and assist the North Slope 

3 Borough and other communities eligible for assist4 ance under this section in developing and submitting 

5 applications for assistance under this section. 

6 (d) ESTABLISHMENT OF FUND.— 

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

8 Treasury the Coastal Plain Local Government Im9 pact Aid Assistance Fund. 

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

11 only for providing financial assistance under this 

12 section. 

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

14 shall be deposited into the fund amounts received by 

15 the United States as revenues derived from rents, 

16 bonuses, and royalties under on leases and lease 

17 sales authorized under this subtitle. 

18 (4) LIMITATION ON DEPOSITS.—The total 

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

20 (5) INVESTMENT OF BALANCES.—The Sec21 retary of the Treasury shall invest amounts in the 

22 fund in interest bearing government securities. 

23 (e) AUTHORIZATION OF APPROPRIATIONS.—To pro24 vide financial assistance under this section there is author25 ized to be appropriated to the Secretary from the Coastal 


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1 Plain Local Government Impact Aid Assistance Fund 

2 $5,000,000 for each fiscal year. 

3 Subtitle B—Enhanced Oil Recovery 

4 SEC. 1021. ENHANCED CREDIT FOR CARBON DIOXIDE IN5 JECTIONS. 

6 (a) IN GENERAL.—Section 43 of the Internal Rev7 enue Code of 1986 (relating to enhanced oil recovery cred8 it) is amended by adding at the end the following new sub9 section: 

10 ‘‘(f) ENHANCED CREDIT FOR PROJECTS USING

11 QUALIFIED CARBON DIOXIDE.— 

12 ‘‘(1) IN GENERAL.—In the case of any qualified 

13 enhanced oil recovery project described in paragraph 

14 (2), subsection (a) shall be applied by substituting 

15 ‘20 percent’ for ‘15 percent’. 

16 ‘‘(2) SPECIFIED QUALIFIED ENHANCED OIL RE17 COVERY PROJECT.— 

18 ‘‘(A) IN GENERAL.—A qualified enhanced 

19 oil recovery project is described in this para20 graph if— 

21 ‘‘(i) the project begins or is substan22 tially expanded after December 31, 2006, 

23 and 


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1 ‘‘(ii) the project uses qualified carbon 

2 dioxide in an oil recovery method which in3 volves flooding or injection. 

4 ‘‘(B) QUALIFIED CARBON DIOXIDE.—For 

5 purposes of this subsection, the term ‘qualified 

6 carbon dioxide’ means carbon dioxide that is— 

7 ‘‘(i) from an industrial source, or 

8 ‘‘(ii) separated from natural gas and 

9 natural gas liquids at a natural gas proc10 essing plant. 

11 ‘‘(3) TERMINATION.—This subsection shall not 

12 apply to costs paid or incurred for any qualified en13 hanced oil recovery project after December 31, 

14 2010.’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to costs paid or incurred in taxable 

17 years ending after December 31, 2006. 

18 Subtitle C—Department of Defense 

19 Contract Authority 

20 SEC. 1031. PROCUREMENT OF FUEL DERIVED FROM COAL, 

21 OIL SHALE, AND TAR SANDS. 

22 Section 2398a(d) of title 10, United States Code, is 

23 amended by striking ‘‘1 or more years’’ and inserting ‘‘up 

24 to 25 years’’. 


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1 TITLE II—REFINING 

2 Subtitle A—Refinery Permitting 

3 Process 

4 SEC. 2001. DEFINITIONS. 

5 In this subtitle: 

6 (1) ADMINISTRATOR.—The term ‘‘Adminis7 trator’’ means the Administrator of the Environ8 mental Protection Agency. 

9 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

10 has the meaning given the term in section 4 of the 

11 Indian Self-Determination and Education Assistance 

12 Act (25 U.S.C. 450b). 

13 (3) PERMIT.—The term ‘‘permit’’ means any 

14 permit, license, approval, variance, or other form of 

15 authorization that a refiner is required to obtain— 

16 (A) under any Federal law; or 

17 (B) from a State or Indian tribal govern18 ment agency delegated authority by the Federal 

19 Government, or authorized under Federal law, 

20 to issue permits. 

21 (4) REFINER.—The term ‘‘refiner’’ means a 

22 person that— 

23 (A) owns or operates a refinery; or 

24 (B) seeks to become an owner or operator 

25 of a refinery. 


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1 (5) REFINERY.— 

2 (A) IN GENERAL.—The term ‘‘refinery’’ 

3 means— 

4 (i) a facility at which crude oil is re5 fined into transportation fuel or other pe6 troleum products; and 

7 (ii) a coal liquification or coal-to-liquid 

8 facility at which coal is processed into syn9 thetic crude oil or any other fuel. 

10 (B) INCLUSIONS.—The term ‘‘refinery’’ in11 cludes— 

12 (i) an expansion of a refinery; 

13 (ii) a biorefinery; and 

14 (iii) any facility that produces a re15 newable fuel (as defined in section 

16 211(o)(1) of the Clean Air Act (42 U.S.C. 

17 7545(o)(1)). 

18 (6) REFINERY PERMITTING AGREEMENT.—The 

19 term ‘‘refinery permitting agreement’’ means an 

20 agreement entered into between the Administrator 

21 and a State or Indian tribe under section 2004. 

22 (7) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Commerce. 

24 (8) STATE.—The term ‘‘State’’ means— 

25 (A) a State; 


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1 (B) the District of Columbia; 

2 (C) the Commonwealth of Puerto Rico; 

3 and 

4 (D) any other territory or possession of the 

5 United States. 

6 SEC. 2002. STREAMLINING OF REFINERY PERMITTING 

7 PROCESS. 

8 (a) IN GENERAL.—At the request of the Governor 

9 of a State or the governing body of an Indian tribe, the 

10 Administrator shall enter into a refinery permitting agree11 ment with the State or Indian tribe under which the proc12 ess for obtaining all permits necessary for the construction 

13 and operation of a refinery shall be streamlined using a 

14 systematic interdisciplinary multimedia approach as pro15 vided in this subtitle. 

16 (b) AUTHORITY OF ADMINISTRATOR.—Under a refin17 ery permitting agreement— 

18 (1) the Administrator shall have authority, as 

19 applicable and necessary, to— 

20 (A) accept from a refiner a consolidated 

21 application for all permits that the refiner is re22 quired to obtain to construct and operate a re23 finery; 

24 (B) in consultation and cooperation with 

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1 ment agency that is required to make any de2 termination to authorize the issuance of a per3 mit, establish a schedule under which each 

4 agency shall— 

5 (i) concurrently consider, to the max6 imum extent practicable, each determina7 tion to be made; and 

8 (ii) complete each step in the permit9 ting process; and 

10 (C) issue a consolidated permit that com11 bines all permits issued under the schedule es12 tablished under subparagraph (B); and 

13 (2) the Administrator shall provide to State and 

14 Indian tribal government agencies— 

15 (A) financial assistance in such amounts as 

16 the agencies reasonably require to hire such ad17 ditional personnel as are necessary to enable 

18 the government agencies to comply with the ap19 plicable schedule established under paragraph 

20 (1)(B); and 

21 (B) technical, legal, and other assistance in 

22 complying with the refinery permitting agree23 ment. 


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1 (c) AGREEMENT BY THE STATE.—Under a refinery 

2 permitting agreement, a State or governing body of an In3 dian tribe shall agree that— 

4 (1) the Administrator shall have each of the au5 thorities described in subsection (b); and 

6 (2) each State or Indian tribal government 

7 agency shall— 

8 (A) in accordance with State law, make 

9 such structural and operational changes in the 

10 agencies as are necessary to enable the agencies 

11 to carry out consolidated project-wide permit 

12 reviews concurrently and in coordination with 

13 the Environmental Protection Agency and other 

14 Federal agencies; and 

15 (B) comply, to the maximum extent prac16 ticable, with the applicable schedule established 

17 under subsection (b)(1)(B). 

18 (d) INTERDISCIPLINARY APPROACH.— 

19 (1) IN GENERAL.—The Administrator and a 

20 State or governing body of an Indian tribe shall in21 corporate an interdisciplinary approach, to the max22 imum extent practicable, in the development, review, 

23 and approval of permits subject to this section. 

24 (2) OPTIONS.—Among other options, the inter25 disciplinary approach may include use of— 


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1 (A) environmental management practices; 

2 and 

3 (B) third party contractors. 

4 (e) DEADLINES.— 

5 (1) NEW REFINERIES.—In the case of a con6 solidated permit for the construction of a new refin7 ery, the Administrator and the State or governing 

8 body of an Indian tribe shall approve or disapprove 

9 the consolidated permit not later than— 

10 (A) 360 days after the date of the receipt 

11 of the administratively complete application for 

12 the consolidated permit; or 

13 (B) on agreement of the applicant, the Ad14 ministrator, and the State or governing body of 

15 the Indian tribe, 90 days after the expiration of 

16 the deadline established under subparagraph 

17 (A). 

18 (2) EXPANSION OF EXISTING REFINERIES.—In 

19 the case of a consolidated permit for the expansion 

20 of an existing refinery, the Administrator and the 

21 State or governing body of an Indian tribe shall ap22 prove or disapprove the consolidated permit not later 

23 than— 


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1 (A) 120 days after the date of the receipt 

2 of the administratively complete application for 

3 the consolidated permit; or 

4 (B) on agreement of the applicant, the Ad5 ministrator, and the State or governing body of 

6 the Indian tribe, 30 days after the expiration of 

7 the deadline established under subparagraph 

8 (A). 

9 (f) FEDERAL AGENCIES.—Each Federal agency that 

10 is required to make any determination to authorize the 

11 issuance of a permit shall comply with the applicable 

12 schedule established under subsection (b)(1)(B). 

13 (g) JUDICIAL REVIEW.—Any civil action for review 

14 of any permit determination under a refinery permitting 

15 agreement shall be brought exclusively in the United 

16 States district court for the district in which the refinery 

17 is located or proposed to be located. 

18 (h) EFFICIENT PERMIT REVIEW.—In order to reduce 

19 the duplication of procedures, the Administrator shall use 

20 State permitting and monitoring procedures to satisfy 

21 substantially equivalent Federal requirements under this 

22 Act. 

23 (i) SEVERABILITY.—If 1 or more permits that are re24 quired for the construction or operation of a refinery are 

25 not approved on or before any deadline established under 


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1 subsection (e), the Administrator may issue a consolidated 

2 permit that combines all other permits that the refiner is 

3 required to obtain other than any permits that are not 

4 approved. 

5 (j) SAVINGS.—Nothing in this section affects the op6 eration or implementation of otherwise applicable law re7 garding permits necessary for the construction and oper8 ation of a refinery. 

9 (k) CONSULTATION WITH LOCAL GOVERNMENTS.— 

10 Congress encourages the Administrator, States, and tribal 

11 governments to consult, to the maximum extent prac12 ticable, with local governments in carrying out this sec13 tion. 

14 (l) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated such sums as are nec16 essary to carry out this section. 

17 (m) EFFECT ON LOCAL AUTHORITY.—Nothing in 

18 this section affects— 

19 (1) the authority of a local government with re20 spect to the issuance of permits; or 

21 (2) any requirement or ordinance of a local gov22 ernment (such as a zoning regulation). 

23 SEC. 2003. FUEL EMERGENCY WAIVERS. 

24 Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 

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1 ergy Policy Act of 2005 (Public Law 109–58; 119 Stat. 

2 1106)) is amended— 

3 (1) by redesignating the first clause (v) as 

4 clause (vi); 

5 (2) by redesignating the second clause (v) as 

6 clause (vii); and 

7 (3) by inserting after clause (iv) the following: 

8 ‘‘(v) A State shall be held harmless and not be re9 quired to revise its State implementation plan under sec10 tion 110 to account for the emissions from a waiver grant11 ed by the Administrator under clause (ii).’’. 

12 SEC. 2004. BOUTIQUE FUEL REDUCTIONS. 

13 Section 211(c)(4)(C)(vii) of the Clean Air Act (42 

14 U.S.C. 7545(c)(4)(C)(vii)) (as redesignated by section 

15 2003(2)) is amended by striking subclauses (III) and (IV) 

16 and inserting the following: 

17 ‘‘(III) The Administrator shall remove a fuel from the 

18 list published under subclause (II) if a fuel ceases to be 

19 included in a State implementation plan or if a fuel in 

20 a State implementation plan is identical to a Federal fuel 

21 formulation implemented by the Administrator and shall 

22 reduce the total number of fuels permitted to be included 

23 in a State implementation plan or revision on the list pub24 lished under subclause (II) accordingly. 


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1 ‘‘(IV) Subclause (I) shall not limit the authority of 

2 the Administrator to approve a control or prohibition re3 specting any new fuel under this paragraph in a State im4 plementation plan or revision to a State implementation 

5 plan if the new fuel completely replaces a fuel on the list 

6 published under subclause (II).’’. 

7 SEC. 2005. FISCHER-TROPSCH FUELS. 

8 (a) IN GENERAL.—In cooperation with the Secretary 

9 of Energy, the Secretary of Defense, the Administrator 

10 of the Federal Aviation Administration, Secretary of 

11 Health and Human Services, and Fischer-Tropsch indus12 try representatives, the Administrator shall— 

13 (1) conduct a research and demonstration pro14 gram to evaluate the air quality benefits of ultra15 clean Fischer-Tropsch transportation fuel, including 

16 diesel and jet fuel; 

17 (2) evaluate the use of ultra-clean Fischer18 Tropsch transportation fuel as a mechanism for re19 ducing engine exhaust emissions; and 

20 (3) submit recommendations to Congress on the 

21 most effective use and associated benefits of these 

22 ultra-clean fuel for reducing public exposure to ex23 haust emissions. 

24 (b) GUIDANCE AND TECHNICAL SUPPORT.—The Ad25 ministrator shall, to the extent necessary, issue any guidVerDate Aug 31 2005 23:36 May 06, 2006 Jkt 049200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S2755.IS S2755

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1 ance or technical support documents that would facilitate 

2 the effective use and associated benefit of Fischer-Tropsch 

3 fuel and blends. 

4 (c) REQUIREMENTS.—The program described in sub5 section (a) shall consider— 

6 (1) the use of neat (100 percent) Fischer7 Tropsch fuel and blends with conventional crude oil8 derived fuel for heavy-duty and light-duty diesel en9 gines and the aviation sector; and 

10 (2) the production costs associated with domes11 tic production of those ultra clean fuel and prices for 

12 consumers. 

13 (d) REPORTS.—The Administrator shall submit to 

14 the Committee on Environment and Public Works of the 

15 Senate and the Committee on Energy and Commerce of 

16 the House of Representatives— 

17 (1) not later than October 1, 2006, an interim 

18 report on actions taken to carry out this section; and 

19 (2) not later than December 1, 2007, a final re20 port on actions taken to carry out this section. 


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1 Subtitle B—Accelerated Deprecia2 tion for Construction and Ex3 pansion 

4 SEC. 2011. EXPANSION OF ELECTION TO EXPENSE CERTAIN 

5 REFINERIES. 

6 (a) FULL EXPENSING.—Section 179C(a) of the In7 ternal Revenue Code of 1986 (relating to treatment as ex8 penses) is amended by striking ‘‘50 percent of’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply to property placed in service after 

11 the date of the enactment of this Act. 

12 TITLE III—INFRASTRUCTURE 

13 Subtitle A—Accelerated 

14 Depreciation 

15 SEC. 3001. TREATMENT OF CERTAIN OIL AND GAS PIPE16 LINES AS 5-YEAR PROPERTY FOR DEPRECIA17 TION PURPOSES. 

18 (a) IN GENERAL.—Section 168(e)(3)(B) of the Inter19 nal Revenue Code of 1986 (relating to 5-year property) 

20 is amended— 

21 (1) by striking ‘‘and’’ at the end of clause (v), 

22 (2) by striking the period at the end of clause 

23 (vi)(III) and inserting ‘‘, and’’, and 

24 (3) by inserting after clause (vi)(III) the fol25 lowing new clause: 


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1 ‘‘(vii) any oil or natural gas pipeline 

2 described in asset class 13.2, the original 

3 use of which commences with the taxpayer 

4 after the date of the enactment of this 

5 clause.’’. 

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

7 this section shall apply to property placed in service after 

8 the date of the enactment of this Act. 

9 Subtitle B—Tax-Exempt Financing 

10 SEC. 3011. TAX-EXEMPT FINANCING OF ENERGY TRANSPOR11 TATION INFRASTRUCTURE NOT SUBJECT TO 

12 PRIVATE BUSINESS USE TEST. 

13 (a) IN GENERAL.—Section 141(b)(6) of the Internal 

14 Revenue Code of 1986 (defining private business use ) is 

15 amended by adding at the end the following new subpara16 graph: 

17 ‘‘(C) EXCEPTION FOR CERTAIN ENERGY

18 TRANSPORTATION INFRASTRUCTURE.— 

19 ‘‘(i) IN GENERAL.—For purposes of 

20 the 1st sentence of subparagraph (A), the 

21 operation or use of any property described 

22 in clause (ii) by any person which is not a 

23 governmental unit shall not be considered 

24 a private business use. 


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1 ‘‘(ii) PROPERTY DESCRIBED.—For 

2 purposes of clause (i), the following prop3 erty is described in this clause: 

4 ‘‘(I) Any tangible property used 

5 to transmit electricity at 230 or more 

6 kilovolts if such property is placed in 

7 service as part of a State or multi8 State effort to improve interstate elec9 tricity transmission and that is phys10 ically located in not less than 2 

11 States. 

12 ‘‘(II) Any tangible property used 

13 as a natural gas transmission pipeline 

14 if such property is placed in service as 

15 part of a State or multi-State effort 

16 to improve interstate natural gas 

17 transmission and that is physically lo18 cated in not less than 2 States or in 

19 a geographic area determined by the 

20 Federal Energy Regulatory Commis21 sion to experience natural gas trans22 mission capacity constraints or con23 gestion. 

24 ‘‘(III) Any tangible property used 

25 as a transmission pipeline for crude 


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1 oil or diesel fuel produced from coal 

2 or other synthetic petroleum products 

3 produced from coal if such property is 

4 placed in service as part of a State or 

5 multi-State effort to improve the 

6 transportation of crude oil or diesel 

7 fuel produced from coal or other syn8 thetic petroleum products produced 

9 from coal.’’. 

10 (b) EXCEPTION TO PRIVATE LOAN FINANCING

11 TEST.—Section 141(c)(2) of the Internal Revenue Code 

12 of 1986 (defining the private loan financing test) is 

13 amended— 

14 (1) by striking the period at the end of sub15 paragraph (B) and adding ‘‘, or’’; and 

16 (2) by adding at the end the following new sub17 paragraph: 

18 ‘‘(C) enables the borrower to finance cer19 tain energy transportation infrastructure as de20 fined in section 141(b)(6)(C)(ii).’’. 

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

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

23 the enactment of this Act. 


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1 Subtitle C—Emergency Service 

2 Route 

3 SEC. 3021. EMERGENCY SERVICE ROUTE. 

4 Section 1948 of the Safe, Accountable, Flexible, Effi5 cient Transportation Equity Act: A Legacy for Users 

6 (Public Law 109–59; 119 Stat. 1514) is repealed. 

7 TITLE IV—CONSERVATION AND 

8 EFFICIENCY 

9 Subtitle A—CAFE Standards 

10 SEC. 4001. REVISED CONSIDERATIONS FOR DECISIONS ON 

11 MAXIMUM FEASIBLE AVERAGE FUEL ECON12 OMY. 

13 Section 32902 of title 49, United States Code, is 

14 amended by striking subsection (f) and inserting the fol15 lowing: 

16 ‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM

17 FEASIBLE AVERAGE FUEL ECONOMY.—When deciding 

18 maximum feasible average fuel economy under this sec19 tion, the Secretary of Transportation shall consider the 

20 following matters: 

21 ‘‘(1) Technological feasibility. 

22 ‘‘(2) Economic practicability. 

23 ‘‘(3) The effect of other motor vehicle standards 

24 of the Federal Government on fuel economy. 


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1 ‘‘(4) The need of the United States to conserve 

2 energy. 

3 ‘‘(5) The desirability of reducing United States 

4 dependence on imported oil. 

5 ‘‘(6) The effects of the average fuel economy 

6 standards on motor vehicle and passenger safety. 

7 ‘‘(7) The effects of increased fuel economy on 

8 air quality. 

9 ‘‘(8) The adverse effects of average fuel econ10 omy standards on the relative competitiveness of 

11 manufacturers. 

12 ‘‘(9) The effects of compliance with average fuel 

13 economy standards on levels of employment in the 

14 United States. 

15 ‘‘(10) The cost and lead time necessary for the 

16 introduction of the necessary new technologies. 

17 ‘‘(11) The potential for advanced technology ve18 hicles, such as hybrid and fuel cell vehicles, to con19 tribute to the achievement of significant reductions 

20 in fuel consumption. 

21 ‘‘(12) The extent to which the necessity for ve22 hicle manufacturers to incur near-term costs to com23 ply with the average fuel economy standards ad24 versely affects the availability of resources for the 


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1 development of advanced technology for the propul2 sion of motor vehicles. 

3 ‘‘(13) The report of the National Research 

4 Council entitled ‘Effectiveness and Impact of Cor5 porate Average Fuel Economy Standards’, issued in 

6 January 2002.’’. 

7 SEC. 4002. INCREASED FUEL ECONOMY STANDARDS. 

8 (a) NEW REGULATIONS REQUIRED FOR PASSENGER

9 AUTOMOBILES.— 

10 (1) REQUIREMENT.— 

11 (A) IN GENERAL.—The Secretary of 

12 Transportation shall issue, under section 32902 

13 of title 49, United States Code, new regulations 

14 setting forth increased average fuel economy 

15 standards for passenger automobiles. 

16 (B) DETERMINATION.—The regulations 

17 shall be determined on the basis of the max18 imum feasible average fuel economy levels for 

19 the passenger automobiles, taking into consider20 ation the matters set forth in subsection (f) of 

21 that section. 

22 (2) TIME FOR ISSUING REGULATIONS.—Not 

23 later than 18 months after the date of enactment of 

24 this Act, the Secretary of Transportation shall issue 

25 the final regulations under paragraph (1). 


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1 (b) PHASED INCREASES.—The regulations issued 

2 pursuant to subsection (a) shall specify standards that 

3 take effect successively over several vehicle model years 

4 not exceeding 15 vehicle model years. 

5 (c) CLARIFICATION OF AUTHORITY TO AMEND PAS6 SENGER AUTOMOBILE STANDARD.—Section 32902(b) of 

7 title 49, United States Code, is amended by inserting be8 fore the period at the end the following: ‘‘or such other 

9 standard as the Secretary prescribes under subsection 

10 (c)’’. 

11 (d) ENVIRONMENTAL ASSESSMENT.—When issuing 

12 final regulations setting forth increased average fuel econ13 omy standards under subsection (a) or (c) of section 

14 32902 of title 49, United States Code, the Secretary of 

15 Transportation shall issue an environmental assessment of 

16 the effects of the increased standards on the environment 

17 under the National Environmental Policy Act of 1969 (42 

18 U.S.C. 4321 et seq.). 

19 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to the Secretary of Trans21 portation $5,000,000 for each of fiscal years 2007 through 

22 2012 for carrying out this section and for administering 

23 the regulations issued pursuant to this section. 


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1 SEC. 4003. EXPEDITED PROCEDURES FOR CONGRESSIONAL 

2 INCREASE IN FUEL ECONOMY STANDARDS. 

3 (a) CONDITION FOR APPLICABILITY.—If the Sec4 retary of Transportation fails to issue final regulations 

5 with respect to passenger automobiles under section 4002 

6 on or before the date by which such final regulations are 

7 required by that section to be issued, respectively, this sec8 tion shall apply with respect to a bill described in sub9 section (b). 

10 (b) BILL.—A bill referred to in subsection (a) is a 

11 bill that satisfies the following requirements: 

12 (1) INTRODUCTION.—The bill is introduced by 

13 1 or more Members of Congress by not later than 

14 60 days after the date referred to in subsection (a). 

15 (2) TITLE.—The title of the bill is as follows: 

16 ‘‘A bill to establish new average fuel economy stand17 ards for certain motor vehicles.’’. 

18 (3) TEXT.—The bill provides after the enacting 

19 clause only the text specified in subparagraph (A) or 

20 any provision described in subparagraph (B), as fol21 lows: 

22 (A) PASSENGER AUTOMOBILES.—In the 

23 case of a bill relating to a failure timely to issue 

24 final regulations relating to passenger auto25 mobiles, the following text, with the first blank 

26 space being filled in with the number of a year 


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1 and the second blank space being filled in with 

2 a number: 

3 ‘‘SECTION 1. PASSENGER AUTOMOBILES. 

4 ‘‘Section 32902 of title 49, United States Code, is 

5 amended by striking subsection (b) and inserting the fol6 lowing: 

7 ‘(b) PASSENGER AUTOMOBILES.—Except as provided 

8 in this section, the average fuel economy standard for pas9 senger automobiles manufactured by a manufacturer in a 

10 model year after model year ll shall be ll miles per 

11 gallon.’.’’ 

12 (B) SUBSTITUTE TEXT.—Any text sub13 stituted by an amendment that is in order 

14 under subsection (c)(3). 

15 (c) EXPEDITED PROCEDURES.—A bill described in 

16 subsection (b) shall be considered in a House of Congress 

17 in accordance with the procedures provided for the consid18 eration of joint resolutions in paragraphs (3) through (8) 

19 of section 8066(c) of the Department of Defense Appro20 priations Act, 1985 (as contained in section 101(h) of 

21 Public Law 98–473; 98 Stat. 1936), with the following 

22 exceptions: 

23 (1) REFERENCES TO RESOLUTION.—The ref24 erences in those paragraphs to a resolution shall be 


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1 deemed to refer to the bill described in subsection 

2 (b). 

3 (2) COMMITTEES OF JURISDICTION.—The com4 mittees to which the bill is referred under this sub5 section shall— 

6 (A) in the Senate, be the Committee on 

7 Commerce, Science, and Transportation; and 

8 (B) in the House of Representatives, be 

9 the Committee on Energy and Commerce. 

10 (3) AMENDMENTS.— 

11 (A) AMENDMENTS IN ORDER.—Only 4 

12 amendments to the bill are in order in each 

13 House, as follows: 

14 (i) 2 amendments proposed by the 

15 majority leader of that House. 

16 (ii) 2 amendments proposed by the 

17 minority leader of that House. 

18 (B) FORM AND CONTENT.—To be in order 

19 under subparagraph (A), an amendment shall 

20 propose to strike all after the enacting clause 

21 and substitute text that only includes the same 

22 text as is proposed to be stricken except for 1 

23 or more different numbers in the text. 

24 (C) REQUIREMENTS FOR CONSIDER25 ATION.—Subparagraph (B) of section 


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1 8066(c)(5) of the Department of Defense Ap2 propriations Act, 1985 (98 Stat. 1936), shall 

3 apply to the consideration of each amendment 

4 proposed under this paragraph in the same 

5 manner as that subparagraph applies to debat6 able motions. 

7 Subtitle B—Natural Gas Energy 

8 Star Program 

9 SEC. 4011. EFFICIENCY. 

10 (a) METHANE REDUCTION PROJECTS.— 

11 (1) IN GENERAL.—Not later than 180 days 

12 after the date of enactment of this Act, the Adminis13 trator of the Federal Energy Regulatory Commis14 sion shall solicit applications from eligible entities, 

15 as determined by the Administrator, for grants 

16 under the Natural Gas STAR Program under the 

17 Environmental Protection Agency to pay the Federal 

18 share of the cost of projects relating to the reduction 

19 of methane emissions in the oil and gas industries. 

20 (2) PROJECT INCLUSIONS.—To receive a grant 

21 under paragraph (1), the application of the eligible 

22 entity shall include— 

23 (A) an identification of 1 or more tech24 nologies used to achieve a reduction in the 

25 emission of methane; and 


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1 (B) an analysis of the cost-effectiveness of 

2 a technology described in subparagraph (A). 

3 (3) LIMITATION.—A grant to an eligible entity 

4 under this subsection shall not exceed $50,000. 

5 (4) FEDERAL SHARE.—The Federal share of 

6 the cost of a project under this subsection shall not 

7 exceed 50 percent. 

8 (5) AUTHORIZATION OF APPROPRIATIONS.— 

9 There is authorized to be appropriated to carry out 

10 this subsection $1,000,000 for the period of fiscal 

11 years 2006 through 2010. 

12 (b) EFFICIENCY PROMOTION WORKSHOPS.— 

13 (1) IN GENERAL.—The Administrator, in con14 junction with the Interstate Oil and Gas Compact 

15 Commission, shall conduct a series of technical 

16 workshops to provide information to officials in oil17 and gas-producing States relating to methane emis18 sion reduction techniques. 

19 (2) AUTHORIZATION OF APPROPRIATIONS.— 

20 There is authorized to be appropriated to carry out 

21 this subsection $1,000,000 for the period of fiscal 

22 years 2006 through 2010. 

Æ 


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