59–006 

110TH CONGRESS REPT. 110–296 " ! HOUSE OF REPRESENTATIVES 1st Session Part 1 

ENERGY POLICY REFORM AND REVITALIZATION ACT OF 

2007 

AUGUST 3, 2007.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. RAHALL, from the Committee on Natural Resources, 

submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H.R. 2337] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 2337) to promote energy policy reforms and public accountability, alternative energy and efficiency, and carbon capture 

and climate change mitigation, and for other purposes, having considered the same, report favorably thereon with an amendment and 

recommend that the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Energy Policy Reform and Revitalization Act of 

2007’’. 

SEC. 2. TABLE OF CONTENTS. 

The table of contents of this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—ENERGY POLICY ACT OF 2005 REFORMS 

Sec. 101. Fiscally responsible energy amendments. 

Sec. 102. Extension of deadline for consideration of applications for permits. 

Sec. 103. Energy rights-of-way corridors on Federal land. 

Sec. 104. Oil shale and tar sands leasing. 

Sec. 105. Limitation of rebuttable presumption regarding application of categorical exclusion under NEPA for 

oil and gas exploration and development activities. 


hmoore on PRODPC68 with HMRPT
2 

Sec. 106. Best management practices. 

Sec. 107. Federal consistency appeals. 

TITLE II—FEDERAL ENERGY PUBLIC ACCOUNTABILITY, INTEGRITY, AND PUBLIC INTEREST 

Subtitle A—Accountability and Integrity in the Federal Energy Program 

Sec. 201. Limitations on royalty in-kind. 

Sec. 202. Audits. 

Sec. 203. Fines and penalties. 

Subtitle B—Amendments to Federal Oil and Gas Royalty Management Act of 1982 

Sec. 211. Amendments to definitions. 

Sec. 212. Interest. 

Sec. 213. Obligation period. 

Sec. 214. Tolling agreements and subpoenas. 

Sec. 215. Liability for royalty payments. 

Subtitle C—Public Interest in the Federal Energy Program 

Sec. 221. Surface owner protection. 

Sec. 222. Onshore oil and gas reclamation and bonding. 

Sec. 223. Protection of water resources. 

Sec. 224. Due diligence fee. 

Subtitle D—Wind Energy 

Sec. 231. Wind Turbine Guidelines Advisory Committee. 

Sec. 232. Authorization of appropriations for research to study wind energy impacts on wildlife. 

Sec. 233. Enforcement. 

Sec. 234. Savings clause. 

Subtitle E—Enhancing Energy Transmission 

Sec. 241. Power Marketing Administrations report. 

TITLE III—ALTERNATIVE ENERGY AND EFFICIENCY 

Sec. 301. State ocean and coastal alternative energy planning. 

Sec. 302. Canal-side power production at Bureau of Reclamation projects. 

Sec. 303. Increasing energy efficiencies for water desalination. 

Sec. 304. Establishing a pilot program for the development of strategic solar reserves on Federal lands. 

Sec. 305. OTEC regulations. 

Sec. 306. Biomass utilization pilot program. 

Sec. 307. Programmatic environmental impact statement. 

TITLE IV—CARBON CAPTURE AND CLIMATE CHANGE MITIGATION 

Subtitle A—Geological Sequestration Assessment 

Sec. 401. Short title. 

Sec. 402. National assessment. 

Subtitle B—Terrestrial Sequestration Assessment 

Sec. 421. Requirement to conduct an assessment. 

Sec. 422. Methodology. 

Sec. 423. Completion of assessment and report. 

Sec. 424. Authorization of appropriations. 

Subtitle C—Sequestration Activities 

Sec. 431. Carbon dioxide storage inventory. 

Sec. 432. Framework for geological carbon sequestration on Federal lands. 

Subtitle D—Natural Resources and Wildlife Programs 

CHAPTER 1—NATURAL RESOURCES MANAGEMENT AND CLIMATE CHANGE

Sec. 441. Interagency Council on Climate Change. 

CHAPTER 2—NATIONAL POLICY AND STRATEGY FOR WILDLIFE

Sec. 451. Short title. 

Sec. 452. National policy on wildlife and global warming. 

Sec. 453. Definitions. 

Sec. 454. National strategy. 

Sec. 455. Advisory board. 

Sec. 456. Authorization of appropriations. 

CHAPTER 3—STATE AND TRIBAL WILDLIFE GRANTS PROGRAM

Sec. 461. State and Tribal Wildlife Grants Program. 

Subtitle E—Ocean Programs 

Sec. 471. Ocean Policy, Global Warming, and Acidification Program. 

Sec. 472. Planning for climate change in the coastal zone. 

Sec. 473. Enhancing climate change predictions. 

TITLE V—ADDITIONAL PROVISIONS 

Sec. 501. Sharing of penalties. 

Sec. 502. Sharing of fees. 

Sec. 503. Oil shale community impact assistance. 

Sec. 504. Additional notice requirements. 


hmoore on PRODPC68 with HMRPT
3 

TITLE I—ENERGY POLICY ACT OF 2005 

REFORMS 

SEC. 101. FISCALLY RESPONSIBLE ENERGY AMENDMENTS. 

(a) REQUIREMENT TO ESTABLISH COST RECOVERY FEE.—Section 365(i) of the Energy Policy Act of 2005 (Public Law 109–58; 42 U.S.C. 15924(i)) is amended to read 

as follows: 

‘‘(i) FEE FOR APPLICATIONS FOR PERMITS TO DRILL.—

‘‘(1) REQUIREMENT TO ESTABLISH COST RECOVERY FEE.—The Secretary of the 

Interior shall promulgate regulations to establish a cost recovery fee for applications for a permit to drill for oil and gas on Federal lands administered by the 

Secretary. 

‘‘(2) TEMPORARY FEE.—Until such time as a fee is established by such regulations, the Secretary shall charge a cost recovery fee of $1,700 for each such application received on or after October 1, 2007.’’. 

(b) REPEAL OF BLM PERMIT PROCESSING IMPROVEMENT FUND.—

(1) REPEAL.—Section 35 of the Mineral Leasing Act (30 U.S.C. 191) is amended by striking subsection (c). 

(2) TREATMENT OF BALANCE.—Any balances remaining in the BLM Permit 

Processing Improvement Fund on the effective date of this subsection shall be 

transferred to the general fund of the Treasury of the United States. 

(3) EFFECTIVE DATE.—This subsection shall take effect on October 1, 2007. 

SEC. 102. EXTENSION OF DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS. 

Subsection (p)(2) of section 17 of the Mineral Leasing Act (30 U.S.C. 226) is 

amended by striking ‘‘30’’ and inserting ‘‘90’’. 

SEC. 103. ENERGY RIGHTS-OF-WAY CORRIDORS ON FEDERAL LAND. 

(a) REPEAL OF REQUIREMENTS TO DESIGNATE ENERGY RIGHTS-OF-WAY CORRIDORS

ON FEDERAL LAND.—Section 368 of the Energy Policy Act of 2005 (Public Law 109–

58; 42 U.S.C.15926) is amended—

(1) in subsection (a), by striking ‘‘Not later than 2 years after the date of enactment of this Act, the’’ and inserting ‘‘The’’; and 

(2) in subsection (b), by striking ‘‘Not later than 4 years after the date of enactment of this Act, the’’ and inserting ‘‘The’’. 

(b) STUDY.—

(1) STUDY.—Not later than 6 months after the date of enactment of this Act, 

the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, and the Secretary of the Interior (in this subsection referred to collectively as ‘‘the Secretaries’’) shall, in consultation with 

affected States, complete a study of—

(A) congestion and constraints in transmission of electricity, carbon dioxide captured from coal-fired powerplants and coal-to-liquids plants, liquid 

fuels derived from coal, oil, gas, and hydrogen; 

(B) barriers to access for transmission from renewable energy sources, 

such as large and small conventional hydropower, wind energy, and solar 

energy; and 

(C) the need for energy corridors on public lands to address identified 

congestion or constraints. 

(2) CONSIDERATIONS.—In performing the study, the Secretaries—

(A) shall take into account the studies of electrical transmission congestion completed under section 216(a)(1) of the Federal Power Act (16 U.S.C. 

824(p)(a)(1)), other projects authorized or under consideration on public 

lands and such projects outside public lands, and alternatives, individually 

and in concert, that could be implemented to address the needs identified, 

including an analysis of demand reduction, available new technology, and 

distributed generation measures that could be taken; 

(B) shall not consider as available for designation as a corridor, any area 

that is—

(i) within one mile of any place designated or otherwise identified by 

State or Federal law or any applicable Federal or State land use plan 

for recognition or protection of scenic, natural, cultural, or historic resources; or 

(ii) in a sensitive ecological area, including any area that is designated as critical habitat under the Endangered Species Act of 1973 

or otherwise identified as sensitive or crucial habitat, including seasonal habitat, by the United States Fish and Wildlife Service, by a 


hmoore on PRODPC68 with HMRPT
4 

State agency responsible for managing wildlife or wildlife habitat, or in 

a Federal or State land use plan; 

(C) identify opportunities to mitigate to the maximum extent practicable 

the potential impact of designating energy corridors, and of the reasonably 

foreseeable uses of those corridors for power lines, pipelines, and other 

transmission facilities, on natural, scenic, cultural, and historic values and 

areas referred to in subparagraph (B), the protection of which is in the national interest, including opportunities to minimize the width of corridors, 

limiting the types and numbers of uses of corridors, and placement of facilities underground; and 

(D) identify opportunities to improve access to the national electric power 

grid for generators of renewable energy, such as wind, hydropower, biomass, hydrogen, geothermal, and solar. 

(3) UPDATES.—The Secretaries shall periodically update the results of the 

study as they consider appropriate. 

(4) REPORTS.—After considering recommendations from interested persons 

(including an opportunity for comment from the public and affected States), the 

Secretaries shall issue—

(A) a report presenting the results of the study; and 

(B) a report on each update of the study under paragraph (3). 

(c) DEFERRAL OF DESIGNATION OF ENERGY CORRIDORS PENDING COMPLETION OF

STUDY.—

(1) LIMITATION ON ACTIONS PENDING COMPLETION OF STUDY.—The Secretaries 

shall not designate energy corridors on public lands, including those corridors 

under consideration based on section 368 of the Energy Policy Act of 2005 (Public Law 109–58) as in effect prior to the enactment of this Act, and shall not 

authorize specific rights-of-way or projects in such corridors, until the study 

under subsection (b) is completed. 

(2) USE OF STUDY RESULTS FOR ACTIONS AFTER COMPLETION OF STUDY.—

(A) IN GENERAL.—Subject to subparagraph (B), after completion of the 

study under subsection (b), the Secretaries shall use the results of the study 

to inform subsequent decisions to grant rights-of-way, including under title 

V of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761 

et seq.), and to amend land use plans to designate energy corridors or authorize rights-of-way, in any area for which no such designation or authorization currently exists. 

(B) LIMITATION ON USE.—The results of the study shall not affect the Secretaries’ obligations to analyze the environmental consequences of a designation or authorization referred to in subparagraph (A), or to otherwise 

comply with applicable laws. 

(d) AUTHORITY TO AUTHORIZE RIGHTS-OF-WAY.—Nothing in this section shall limit 

the ability of the Secretaries to authorize rights-of-way for energy transmission 

projects that are consistent with the governing land use plan, after completion of 

environmental analysis and compliance with applicable laws. 

SEC. 104. OIL SHALE AND TAR SANDS LEASING. 

Section 369 of the Energy Policy Act of 2005 (42 U.S.C. 15927) is amended—

(1) in subsection (c), by striking ‘‘not later than 180 days after the date of enactment of this Act,’’; 

(2) in subsection (c), by striking ‘‘shall make’’ and inserting ‘‘may make’’; 

(3) in subsection (d)(1), by striking ‘‘Not later than 18 months after the date 

of enactment of this Act, in’’ and inserting ‘‘In’’; 

(4) in subsection (d)(2)—

(A) in the heading by striking ‘‘FINAL’’ and inserting ‘‘PROPOSED’’; and 

(B) in the text by striking ‘‘final’’ and inserting ‘‘proposed’’; 

(5) in subsection (d)(2), by striking ‘‘6’’ and inserting ‘‘12’’; 

(6) in subsection (d)(2) by inserting after the period ‘‘The proposed regulations 

developed under this paragraph are to be open for public comment for no less 

than 180 days.’’; 

(7) by redesignating subsections (e) through (s) as subsections (g) through (u), 

and by inserting after subsection (d) the following: 

‘‘(e) OIL SHALE AND TAR SANDS LEASING AND DEVELOPMENT STRATEGY.—

‘‘(1) GENERAL.—Not later than 6 months after the completion of the programmatic environmental impact statement under subsection (d), the Secretary 

shall prepare an oil shale and tar sands leasing and development strategy, in 

cooperation with the Secretary of Energy and the Administrator of the Environmental Protection Agency. 


hmoore on PRODPC68 with HMRPT
5 

‘‘(2) PURPOSE.—The purpose of the strategy developed under this subsection 

is to allow for the sustainable and publicly acceptable large-scale development 

of oil shale within the Green River Formation. 

‘‘(3) CONTENTS.—The strategy shall include plans and programs for obtaining 

information required for determining the optimal methods, locations, amount, 

and timeframe for potential development on federal lands within the Green 

River Formation. The strategy shall also include plans for conducting critical 

environmental and ecological research, high-payoff process improvement research, an assessment of carbon management options, and a large-scale demonstration of carbon dioxide sequestration in the general vicinity of the Piceance 

Basin. 

‘‘(f) ALTERNATIVE APPROACHES.—Not later than nine months after the completion 

of the programmatic environmental impact statement under subsection (d), the Secretary shall, in cooperation with the Secretary of Energy and the Administrator of 

the Environmental Protection Agency, prepare and publish a report on alternative 

approaches to providing access to Federal lands for early first-of-a-kind commercial 

facilities for extracting and processing oil shale and tar sands.’’; 

(8) in subsection (g), as so redesignated, by striking ‘‘of the final regulation 

required by subsection (d)’’ and inserting ‘‘of final regulations issued under this 

section’’; 

(9) in subsection (g), as so redesignated, by adding at the end the following: 

‘‘Compliance with the National Environmental Policy Act of 1969 is required on 

a site-by-site basis for all lands proposed to be leased under the commercial 

leasing program established in this subsection.’’; and 

(10) in subsection (i)(1)(B), as so redesignated, by striking ‘‘subsection (e)’’ and 

inserting ‘‘subsection (g)’’. 

SEC. 105. LIMITATION OF REBUTTABLE PRESUMPTION REGARDING APPLICATION OF CATEGORICAL EXCLUSION UNDER NEPA FOR OIL AND GAS EXPLORATION AND DEVELOPMENT ACTIVITIES. 

Section 390 of the Energy Policy Act of 2005 (Public Law 109–58; 42 U.S.C. 

15942) is amended—

(1) in subsection (b)(3), by inserting ‘‘, other than at such a location or site 

in an area that is crucial wildlife habitat or a significant wildlife corridor’’ after 

‘‘activity’’ ; and 

(2) by adding at the end the following: 

‘‘(c) ADHERENCE TO CEQ REGULATIONS.—In administering this section, the Secretary of the Interior in managing the public lands, and the Secretary of Agriculture 

in managing National Forest System lands, shall adhere to the regulations issued 

by the Council on Environmental Quality relating to categorical exclusions (40 

C.F.R. 1507.3 and 1508.4), as in effect on the date of enactment of this Act.’’. 

SEC. 106. BEST MANAGEMENT PRACTICES. 

Not later than 180 days after the date of enactment of this Act, the Secretary of 

the Interior, through the Bureau of Land Management, shall amend the best management practices guidelines for oil and gas development on Federal lands, to—

(1) require public review and comment prior to waiving any stipulation of an 

oil and gas lease for such lands, except in the case of an emergency; and 

(2) create an incentive for oil and gas operators to adopt best management 

practices that minimize adverse impacts to wildlife habitat, by providing expedited permit review for any operator that commits to adhering to those practices 

without seeking waiver of such stipulations. 

SEC. 107. FEDERAL CONSISTENCY APPEALS. 

(a) SHORT TITLE.—This section may be cited as the ‘‘Federal Consistency Appeals 

Decision Refinement Act’’. 

(b) CLARIFICATION OF APPEAL DECISION TIME PERIODS AND INFORMATION REQUIREMENTS.—Section 319(b) of the Coastal Zone Management Act of 1972 (16 

U.S.C. 1465(b)) is amended—

(1) in paragraph (1), by striking ‘‘160-day’’ and inserting ‘‘320-day’’; 

(2) in paragraph (3)(A)—

(A) by striking ‘‘160-day’’ and inserting ‘‘320-day’’; and 

(B) by amending clause (ii) to read as follows: 

‘‘(ii) as the Secretary determines necessary to receive, on an expedited basis, any supplemental or clarifying information relevant to the 

consolidated record compiled by the lead Federal permitting agency to 

complete a consistency review under this title.’’; and 

(3) in paragraph (3)(B)—

(A) by striking ‘‘160-day’’ and inserting ‘‘320-day’’; and 

(B) by striking ‘‘for a period not to exceed 60 days.’’ and inserting ‘‘once.’’. 


hmoore on PRODPC68 with HMRPT
6 

TITLE II—FEDERAL ENERGY PUBLIC ACCOUNTABILITY, INTEGRITY, AND PUBLIC INTEREST 

Subtitle A—Accountability and Integrity in the 

Federal Energy Program 

SEC. 201. LIMITATIONS ON ROYALTY IN-KIND. 

Section 342 of the Energy Policy Act of 2005 (42 U.S.C. 15902(d)) is amended— (1) in subsection (d)— (A) in the heading by striking ‘‘BENEFIT’’ and inserting ‘‘FILLING OF STRA- TEGIC PETROLEUM RESERVE AND BENEFIT’’; and 

(B) by striking ‘‘only if’’ and inserting ‘‘only if receiving such royalties inkind is for the purpose of filling the Strategic Petroleum Reserve and’’; and 

(2) by adding at the end: ‘‘(k) LIMITATION.— ‘‘(1) IN GENERAL.—No amount of the total amount of royalties collected by the 

Secretary in a fiscal year may be collected as royalties in-kind. ‘‘(2) EXCEPTION.—Paragraph (1) shall not apply with respect to royalties inkind collected for the purpose of filling the Strategic Petroleum Reserve.’’. 

SEC. 202. AUDITS. 

(a) REQUIREMENT TO INCREASE THE NUMBER OF AUDITS.—The Secretary of the Interior shall ensure that by fiscal year 2009 the Minerals Management Service shall 

perform no less that 550 audits of oil and gas leases each fiscal year. 

(b) STANDARDS.—Not later than 120 days after the date of enactment of this Act, 

the Secretary of the Interior shall issue regulations that require that all employees 

that conduct audits or compliance reviews must meet professional auditor qualifications that are consistent with the latest revision of the Government Auditing Standards published by the Government Accountability Office. Such regulations shall also 

ensure that all audits conducted by the Department of the Interior are performed 

in accordance with such standards. 

SEC. 203. FINES AND PENALTIES. 

(a) SANCTIONS FOR VIOLATIONS RELATING TO FEDERAL OIL AND GAS ROYALTIES.—

Section 109 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 

1719) is amended to read as follows: 

‘‘CIVIL PENALTIES

‘‘SEC. 109. (a) ROYALTY VIOLATIONS.—(1) No person shall—

‘‘(A) after due notice of violation or after such violation has been reported 

under paragraph (3)(A), fail or refuse to comply with any requirement of any 

mineral leasing law or any regulation, order, lease, or permit under such a law; 

‘‘(B) fail or refuse to make any royalty payment in the amount or value required by any mineral leasing law or any regulation, order, or lease under such 

a law; 

‘‘(C) fail or refuse to make any royalty payment by the date required by any 

mineral leasing law or any regulation, order, or lease under such a law; or 

‘‘(D) prepare, maintain, or submit any false, inaccurate, or misleading report, 

notice, affidavit, record, data, or other written information or filing related to 

royalty payments that is required under any mineral leasing law or regulation 

issued under any mineral leasing law. 

‘‘(2) A person who violates paragraph (1) shall be liable—

‘‘(A) in the case of a violation of subparagraph (B) or (C) of paragraph (1) for 

an amount equal to 3 times the royalty the person fails or refuses to pay, plus 

interest on that trebled amount measured from the first date the royalty payment was due; and 

‘‘(B) in the case of any violation, for a civil penalty of up to $25,000 per violation for each day the violation continues. 

‘‘(3) Paragraph (2) shall not apply to a violation of paragraph (1) if the person who 

commits the violation, within 30 days of the violation—

‘‘(A) reports the violation to the Secretary or a representative designated by 

the Secretary; and 

‘‘(B) corrects the violation. 

‘‘(b) LEASE ADMINISTRATION VIOLATIONS.—Any person who—

‘‘(1) fails to notify the Secretary of—


hmoore on PRODPC68 with HMRPT
7 

‘‘(A) any designation by the person under section 102(a); or 

‘‘(B) any other assignment of obligations or responsibilities of the person 

under a lease; ‘‘(2) fails or refuses to permit— ‘‘(A) lawful entry; 

‘‘(B) inspection, including any inspection authorized by section 108; or 

‘‘(C) audit, including any failure or refusal to promptly tender requested 

documents; ‘‘(3) fails or refuses to comply with subsection 102(b)(3) (relating to notification regarding beginning or resumption of production); or ‘‘(4) fails to correctly report and timely provide operations or financial records 

necessary for the Secretary or any authorized designee of the Secretary to accomplish lease management responsibilities, shall be liable for a penalty of up to $10,000 per violation for each day such violation 

continues. ‘‘(c) THEFT.—Any person who— ‘‘(1) knowingly or willfully takes or removes, transports, uses or diverts any 

oil or gas from any lease site without having valid legal authority to do so; or ‘‘(2) purchases, accepts, sells, transports, or conveys to another, any oil or gas 

knowing or having reason to know that such oil or gas was stolen or unlawfully 

removed or diverted, 

shall be liable for a penalty of up to $25,000 per violation for each day such violation 

continues without correction. 

‘‘(d) REPEATED VIOLATIONS.—(1)(A) If the Secretary or an authorized designee of 

the Secretary determines that any person has repeatedly violated subsection (a), (b), 

or (c), the Secretary or designee shall notify the person of the violation and demand 

compliance. 

‘‘(B) A person notified pursuant to subparagraph (A) shall correct the violations 

by not later than 30 calendar days after the date of the notification. 

‘‘(C) Any person who fails to comply with a demand under subparagraph (A) shall 

be liable to the United States for a civil penalty equal to 3 times the amount of any 

civil penalty that otherwise applies under subsection (a), (b), or (c) to the violations 

to which the demand relates. 

‘‘(2) In addition to the penalty provided in paragraph (1)(C), if the Secretary determines that any person has repeatedly violated subsection (a), (b), or (c) or any lease 

management order, the Secretary may—

‘‘(A) shut in and cease production of any oil or gas lease held by the person; 

‘‘(B) prohibit the person—

‘‘(i) from acquiring any additional oil or gas lease, including by transfer 

or assignment; and 

‘‘(ii) from being designated under section 102(a) to make payments due 

under any lease; 

‘‘(C) cancel or transfer any interest in an oil or gas lease held by the person; 

and 

‘‘(D) collect from the person reimbursement, including interest, of all costs of 

release, transfer, or reclamation of lease sites canceled or transferred, including 

costs of disposing of lease property, facilities, and equipment. 

‘‘(e) ADMINISTRATIVE APPEAL.—(1) Any determination by the Secretary or a designee of the Secretary of the amount of any royalties or civil penalties owed under 

subsection (a), (b), (c), or (d) shall be final, unless within 15 days after notification 

by the Secretary or designee the person liable for such amount files an administrative appeal in accordance with regulations issued by the Secretary. 

‘‘(2) If a person files an administrative appeal pursuant to paragraph (1), the Secretary or designee shall make a final determination in accordance with the regulations referred to in paragraph (1). 

‘‘(f) DEDUCTION.—The amount of any penalty under this section, as finally determined may be deducted from any sums owing by the United States to the person 

charged. 

‘‘(g) COMPROMISE AND REDUCTION.—On a case-by-case basis the Secretary may 

compromise or reduce civil penalties under this section. 

‘‘(h) NOTICE.—Notice under this subsection (a) shall be by personal service by an 

authorized representative of the Secretary or by registered mail. Any person may, 

in the manner prescribed by the Secretary, designate a representative to receive any 

notice under this subsection. 

‘‘(i) RECORD OF DETERMINATION.—In determining the amount of such penalty, or 

whether it should be remitted or reduced, and in what amount, the Secretary shall 

state on the record the reasons for his determinations. 

‘‘(j) JUDICIAL REVIEW.—Any person who has requested a hearing in accordance 

with subsection (e) within the time the Secretary has prescribed for such a hearing 


hmoore on PRODPC68 with HMRPT
8 

and who is aggrieved by a final order of the Secretary under this section may seek 

review of such order in the United States district court for the judicial district in 

which the violation allegedly took place. Review by the district court shall be only 

on the administrative record and not de novo. Such an action shall be barred unless 

filed within 90 days after the Secretary’s final order. 

‘‘(k) FAILURE TO PAY.—If any person fails to pay an assessment of a civil penalty 

under this Act—

‘‘(1) after the order making the assessment has become a final order and if 

such person does not file a petition for judicial review of the order in accordance 

with subsection (j), or 

‘‘(2) after a court in an action brought under subsection (j) has entered a final 

judgment in favor of the Secretary, 

the court shall have jurisdiction to award the amount assessed plus interest from 

the date of the expiration of the 90-day period referred to in subsection (j). Judgment by the court shall include an order to pay. 

‘‘(l) RELATIONSHIP TO MINERAL LEASING ACT.—No person shall be liable for a civil 

penalty under subsection (a) or (b) for failure to pay any rental for any lease automatically terminated pursuant to section 31 of the Mineral Leasing Act. 

‘‘(m) TOLLING OF STATUTES OF LIMITATION.—(1) Any determination by the Secretary or a designee of the Secretary that a person has violated subsection (a), (b)(2), 

or (b)(4) shall toll any applicable statute of limitations for all oil and gas leases held 

or operated by such person, until the later of—

‘‘(A) the date on which the person corrects the violation and certifies that all 

violations of a like nature have been corrected for all of the oil and gas leases 

held or operated by such person; or 

‘‘(B) the date a final, nonappealable order has been issued by the Secretary 

or a court of competent jurisdiction. 

‘‘(2) A person determined by the Secretary or a designee of the Secretary to have 

violated subsection (a), (b)(2), or (b)(4) shall maintain all records with respect to the 

person’s oil and gas leases until the later of—

‘‘(A) the date the Secretary releases the person from the obligation to maintain such records; and 

‘‘(B) the expiration of the period during which the records must be maintained 

under section 103(b). 

‘‘(n) STATE SHARING OF PENALTIES.—Amounts received by the United States in an 

action brought under section 3730 of title 31, United States Code, that arises from 

any underpayment of royalties owed to the United States under any lease shall be 

treated as royalties paid to the United States under that lease for purposes of the 

mineral leasing laws and the Land and Water Conservation Fund Act of 1965 (16 

U.S.C. 460l–4 et seq.).’’. 

(b) SHARED CIVIL PENALTIES.—Section 206 of the Federal Oil and Gas Royalty 

Management Act of 1982 (30 U.S.C. 1736) is amended—

(1) by inserting ‘‘trebled royalties or’’ after ‘‘50 per centum of any’’; and 

(2) by striking the second sentence. 

Subtitle B—Amendments to Federal Oil and Gas 

Royalty Management Act of 1982 

SEC. 211. AMENDMENTS TO DEFINITIONS. 

Section 3 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 

1702) is amended—

(1) in paragraph (20)(A), by striking ‘‘: Provided, That’’ and all that follows 

through ‘‘subject of the judicial proceeding’’; 

(2) in paragraph (20)(B), by striking ‘‘(with written notice to the lessee who 

designated the designee)’’; 

(3) in paragraph (23)(A), by striking ‘‘(with written notice to the lessee who 

designated the designee)’’ ; 

(4) by amending paragraph (24) to read as follows: 

‘‘(24) ‘designee’ means any person who pays, offsets, or credits monies, makes 

adjustments, requests and receives refunds, or submits reports with respect to 

payments a lessee must make pursuant to section 102(a);’’; 

(5) in paragraph (25)(B), by striking ‘‘(subject to the provisions of section 

102(a) of this Act)’’; and 

(6) in paragraph (26), by striking ‘‘(with notice to the lessee who designated 

the designee)’’. 


hmoore on PRODPC68 with HMRPT
9 

SEC. 212. INTEREST. 

(a) ESTIMATED PAYMENTS; INTEREST ON AMOUNT OF UNDERPAYMENT.—Section 

111(j) of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 

1721(j)) is amended by striking ‘‘If the estimated payment exceeds the actual royalties due, interest is owed on the overpayment.’’. (b) OVERPAYMENTS.—Section 111 of the Federal Oil and Gas Royalty Management 

Act of 1982 (30 U.S.C. 1721) is amended by striking subsections (h) and (i). 

(c) EFFECTIVE DATE.—The amendments made by this section shall be effective one 

year after the date of enactment of this Act. 

SEC. 213. OBLIGATION PERIOD. 

Section 115(c) of the Federal Oil and Gas Royalty Management Act of 1982 (30 

U.S.C. 1724(c)) is amended by adding at the end the following: 

‘‘(3) ADJUSTMENTS.—In the case of an adjustment under section 111A(a) (30 

U.S.C. 1721a(a)) in which a recoupment by the lessee results in an underpayment of an obligation, for purposes of this Act the obligation becomes due 

on the date the lessee or its designee makes the adjustment.’’. 

SEC. 214. TOLLING AGREEMENTS AND SUBPOENAS. 

(a) TOLLING AGREEMENTS.—Section 115(d)(1) of the Federal Oil and Gas Royalty 

Management Act of 1982 (30 U.S.C. 1724(d)(1)) is amended by striking ‘‘(with notice 

to the lessee who designated the designee)’’. 

(b) SUBPOENAS.—Section 115(d)(2)(A) of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is amended by striking ‘‘(with notice to 

the lessee who designated the designee, which notice shall not constitute a subpoena 

to the lessee)’’. 

SEC. 215. LIABILITY FOR ROYALTY PAYMENTS. 

Section 102(a) of the Federal Oil and Gas Royalty Management Act of 1982 (30 

U.S.C. 1712(a)) is amended to read as follows: 

‘‘(a) In order to increase receipts and achieve effective collections of royalty and 

other payments, a lessee who is required to make any royalty or other payment 

under a lease or under the mineral leasing laws, shall make such payments in the 

time and manner as may be specified by the Secretary or the applicable delegated 

State. Any person who pays, offsets or credits monies, makes adjustments, requests 

and receives refunds, or submits reports with respect to payments the lessee must 

make is the lessee’s designee under this Act. Notwithstanding any other provision 

of this Act to the contrary, a designee shall be liable for any payment obligation of 

any lessee on whose behalf the designee pays royalty under the lease. The person 

owning operating rights in a lease and a person owning legal record title in a lease 

shall be liable for that person’s pro rata share of payment obligations under the 

lease.’’. 

Subtitle C—Public Interest in the Federal Energy 

Program 

SEC. 221. SURFACE OWNER PROTECTION. 

(a) DEFINITIONS.—As used in this section—

(1) the term ‘‘Secretary’’ means the Secretary of the Interior; 

(2) the term ‘‘lease’’ means a lease issued by the Secretary under the Mineral 

Leasing Act (30 U.S.C. 181 et seq.); 

(3) the term ‘‘lessee’’ means the holder of a lease; and 

(4) the term ‘‘operator’’ means any person that is responsible under the terms 

and conditions of a lease for the operations conducted on leased lands or any 

portion thereof. 

(b) POST-LEASE SURFACE USE AGREEMENT.—

(1) IN GENERAL.—Except as provided in subsection (c), the Secretary may not 

authorize any operator to conduct exploration and drilling operations on lands 

with respect to which title to oil and gas resources is held by the United States 

but title to the surface estate is not held by the United States, until the operator has filed with the Secretary a document, signed by the operator and the 

surface owner or owners, showing that the operator has secured a written surface use agreement between the operator and the surface owner or owners that 

meets the requirements of paragraph (2). 

(2) CONTENTS.—The surface use agreement shall provide for—

(A) the use of only such portion of the surface estate as is reasonably necessary for exploration and drilling operations based on site-specific conditions; 


hmoore on PRODPC68 with HMRPT
10 

(B) the accommodation of the surface estate owner to the maximum extent practicable, including the location, use, timing, and type of exploration 

and drilling operations, consistent with the operator’s right to develop the 

oil and gas estate; 

(C) the reclamation of the site to a condition capable of supporting the 

uses which such lands were capable of supporting prior to exploration and 

drilling operations or other uses as agreed to by the operator and the surface owner; and 

(D) compensation for damages as a result of exploration and drilling operations, including but not limited to— (i) loss of income and increased costs incurred; 

(ii) damage to or destruction of personal property, including crops, 

forage, and livestock; and 

(iii) failure to reclaim the site in accordance with this subparagraph 

(C). 

(3) PROCEDURE.— (A) IN GENERAL.—An operator shall notify the surface estate owner or 

owners of the operator’s desire to conclude an agreement under this section. 

If the surface estate owner and the operator do not reach an agreement 

within 90 days after the operator has provided such notice, the matter shall 

be referred to third party arbitration for resolution within a period of 90 

days. The cost of such arbitration shall be the responsibility of the operator. 

(B) IDENTIFICATION OF ARBITERS.—The Secretary shall identify persons 

with experience in conducting arbitrations and shall make this information 

available to operators and surface owners. 

(C) REFERRAL TO IDENTIFIED ARBITER.—Referral of a matter for arbitration by a person identified by the Secretary pursuant to subparagraph (B) 

shall be sufficient to constitute compliance with subparagraph (A). 

(4) ATTORNEYS FEES.—If action is taken to enforce or interpret any of the 

terms and conditions contained in a surface use agreement, the prevailing party 

shall be reimbursed by the other party for reasonable attorneys fees and actual 

costs incurred, in addition to any other relief which a court or arbitration panel 

may grant. 

(c) AUTHORIZED EXPLORATION AND DRILLING OPERATIONS.—

(1) AUTHORIZATION WITHOUT SURFACE USE AGREEMENT.—The Secretary may 

authorize an operator to conduct exploration and drilling operations on lands 

covered by subsection (b) in the absence of an agreement with the surface estate 

owner or owners, if—

(A) the Secretary makes a determination in writing that the operator 

made a good faith attempt to conclude such an agreement, including referral of the matter to arbitration pursuant to subsection (b)(3), but that no 

agreement was concluded within 90 days after the referral to arbitration; 

(B) the operator submits a plan of operations that provides for the matters specified in subsection (b)(2) and for compliance with all other applicable requirements of Federal and State law; and 

(C) the operator posts a bond or other financial assurance in an amount 

the Secretary determines to be adequate to ensure compensation to the surface estate owner for any damages to the site, in the form of a surety bond, 

trust fund, letter of credit, government security, certificate of deposit, cash, 

or equivalent. 

(2) SURFACE OWNER PARTICIPATION.—The Secretary shall provide surface estate owners with an opportunity to—

(A) comment on plans of operations in advance of a determination of compliance with this section; 

(B) participate in bond level determinations and bond release proceedings 

under this subsection; 

(C) attend an on-site inspection during such determinations and proceedings; 

(D) file written objections to a proposed bond release; and 

(E) request and participate in an on-site inspection when they have reason to believe there is a violation of the terms and conditions of a plan of 

operations. 

(3) PAYMENT OF FINANCIAL GUARANTEE.—A surface estate owner with respect 

to any land subject to a lease may petition the Secretary for payment of all or 

any portion of a bond or other financial assurance required under this subsection as compensation for any damages as a result of exploration and drilling 

operations. Pursuant to such a petition, the Secretary may use such bond or 

other guarantee to provide compensation to the surface estate owner for such 

damages. 


hmoore on PRODPC68 with HMRPT
11 

(4) BOND RELEASE.—Upon request and after inspection and opportunity for 

surface estate owner review, the Secretary may release the financial assurance 

required under this subsection if the Secretary determines that exploration and 

drilling operations have ended and all damages have been fully compensated. 

(d) SURFACE OWNER NOTIFICATION.—The Secretary shall—

(1) notify surface estate owners in writing at least 45 days in advance of lease 

sales; 

(2) within ten working days after a lease is issued, notify surface estate owners regarding the identity of the lessee; 

(3) notify surface estate owners in writing within 10 working days concerning 

any subsequent decisions regarding a lease, such as modifying or waiving stipulations and approving rights-of-way; and 

(4) notify surface estate owners within five business days after issuance of a 

drilling permit under a lease. 

(e) REGULATIONS.—The Secretary shall issue regulations implementing this section by not later than 1 year after the date of the enactment of this Act. 

SEC. 222. ONSHORE OIL AND GAS RECLAMATION AND BONDING. 

Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by adding at 

the end the following: 

‘‘(q) RECLAMATION REQUIREMENTS.—An operator producing oil or gas (including 

coalbed methane) under a lease issued pursuant to this Act shall—

‘‘(1) at a minimum restore the land affected to a condition capable of supporting the uses that it was capable of supporting prior to any drilling, or higher or better uses of which there is reasonable likelihood, so long as such use 

or uses do not present any actual or probable hazard to public health or safety 

or pose any actual or probable threat of water diminution or pollution, and the 

permit applicants’ declared proposed land use following reclamation is not impractical or unreasonable, inconsistent with applicable land use policies and 

plans, or involve unreasonable delay in implementation, or is violative of Federal or State law; 

‘‘(2) ensure that all reclamation efforts proceed in an environmentally sound 

manner and as contemporaneously as practicable with the oil and gas drilling 

operations; and 

‘‘(3) submit with the plan of operations a reclamation plan that describes in 

detail the methods and practices that will be used to ensure complete and timely restoration of all lands affected by oil and gas operations. 

‘‘(r) RECLAMATION BOND OR OTHER FINANCIAL ASSURANCES.—An operator producing oil or gas (including coalbed methane) under a lease issued under this Act 

shall post a bond or other financial assurances that cover the reclamation of that 

area of land within the permit area upon which the operator will initiate and conduct oil and gas drilling and reclamation operations within the initial term of the 

permit. As succeeding increments of oil and gas drilling and reclamation operations 

are to be initiated and conducted within the permit area, the lessee shall file with 

the regulatory authority an additional bond or bonds or other financial assurances 

to cover such increments in accordance with this section. The amount of the bond 

or other financial assurances required for each bonded area shall depend upon the 

reclamation requirements of the approved permit; shall reflect the probable difficulty of reclamation giving consideration to such factors as topography, geology of 

the site, hydrology, and revegetation potential; and shall be determined by the Secretary. The amount of the bond or other financial assurances shall be sufficient to 

assure the completion of the reclamation plan if the work had to be performed by 

the Secretary in the event of forfeiture. 

‘‘(s) REGULATIONS.—No later than one year after the date of the enactment of this 

subsection, the Secretary shall promulgate regulations to implement the requirements, including for the release of bonds or other financial assurances, of subsections (q) and (r).’’. 

SEC. 223. PROTECTION OF WATER RESOURCES. 

(a) MINERAL LEASING ACT REQUIREMENTS.—Section 17 of the Mineral Leasing Act 

(30 U.S.C. 226) is further amended by adding at the end the following: 

‘‘(t) WATER REQUIREMENTS.—

‘‘(1) IN GENERAL.—An operator producing oil or gas (including coalbed methane) under a lease issued under this Act shall—

‘‘(A) remediate or replace the water supply of a water user who obtains 

all or part of such user’s supply of water for domestic, agricultural, or other 

purposes from an underground or surface source that has been affected by 

contamination, diminution, or interruption proximately resulting from drilling operations for such production; and 


hmoore on PRODPC68 with HMRPT
12 

‘‘(B) comply with all applicable requirements of Federal and State law for 

discharge of any water produced under the lease. 

‘‘(2) WATER MANAGEMENT PLAN.—An application for a permit to drill submitted pursuant to a lease issued under this Act shall be accompanied by a proposed water management plan including provisions to—

‘‘(A) protect the quantity and quality of surface and ground water systems, both on-site and off-site, from adverse effects of the exploration, development, and reclamation processes or to provide alternative sources of 

water if such protection cannot be assured; 

‘‘(B) protect the rights of present users of water that would be affected 

by operations under the lease, including the discharge of any water produced in connection with such operations that is not reinjected; and 

‘‘(C) identify any agreements with other parties for the beneficial use of 

produced waters and the steps that will be taken to comply with State and 

Federal laws related to such use.’’. 

(b) RELATION TO STATE LAW.—Nothing in this subtitle or any amendment made 

by this subtitle shall—

(1) be construed as impairing or in any manner affecting any right or jurisdiction of any State with respect to the waters of such State; or 

(2) be construed as limiting, altering, modifying, or amending any of the interstate compacts or equitable apportionment decrees that apportion water among 

and between States. 

(c) REGULATIONS.—No later than one year after the date of the enactment of this 

Act, the Secretary of the Interior shall promulgate regulations to implement this 

section. 

SEC. 224. DUE DILIGENCE FEE. 

(a) ESTABLISHMENT.—The Secretary of the Interior shall, within 180 days after 

the date of enactment of this Act, issue regulations to establish a fee with respect 

to Federal onshore lands that are subject to a lease for production of oil, natural 

gas, or coal under which production is not occurring. Such fee shall apply with respect to lands that are subject to such a lease that is in effect on the date final regulations are promulgated under this subsection or that is issued thereafter. 

(b) AMOUNT.—The amount of the fee shall be $1 per year for each acre of land 

that is not in production for that year. 

(c) ASSESSMENT AND COLLECTION.—The Secretary shall assess and collect the fee 

established under this section. 

(d) DEPOSIT AND USE.—Amounts received by the United States in the form of the 

fee established under this section shall be available to the Secretary of the Interior 

for use to repair damage to Federal lands and resources caused by oil and gas development, in accordance with the the documents submitted by the President with the 

budget submission for fiscal year 2008 relating to the Healthy Lands Initiative. 

Amounts received by the United States as fees under this section shall be treated 

as offsetting receipts. Amounts received by the United States in the form of the fee 

established under this section from nonproducing coal leases shall also be available 

to the Secretary of the Interior for any coal-to-liquids programs or pilot projects 

funded in whole or in part by the Federal Government. 

Subtitle D—Wind Energy 

SEC. 231. WIND TURBINE GUIDELINES ADVISORY COMMITTEE. 

(a) IN GENERAL.—The Secretary of the Interior, within 30 days after the date of 

enactment of this Act, shall convene or utilize an existing Wind Turbine Guidelines 

Advisory Committee to study and make recommendations to the Secretary on guidance for avoiding or minimizing impacts to wildlife and their habitats related to 

land-based wind energy facilities. The matters assessed by the Committee shall include the following: 

(1) The Service Interim Guidance on Avoiding and Minimizing Wildlife Impacts from Wind Turbines of 2003. 

(2) Balancing potential impacts to wildlife with requirements for acquiring 

the information necessary to assess those impacts prior to selecting sites and 

designing facilities. 

(3) The scientific tools and procedures best able to assess pre-development 

risk or benefits provided to wildlife, measure post-development mortality, assess 

behavioral modification, and provide compensatory mitigation for unavoidable 

impacts. 


hmoore on PRODPC68 with HMRPT
13 

(4) A process for coordinating State, tribal, local, and national review and 

evaluation of the impacts to wildlife from wind energy consistent with State and 

Federal laws and international treaties. 

(5) Determination of project size thresholds or impacts below which guidelines 

may not apply. 

(6) Appropriate timetables for phasing-in guidance. 

(7) Current State actions to avoid and minimize wildlife impacts from wind 

turbines in consultation with State wildlife agencies. 

(b) COMMITTEE OPERATIONS.—The Wind Turbine Guidelines Advisory Committee 

shall conduct its activities in accordance with the Federal Advisory Committee Act 

(5 U.S.C. App.). The Secretary is authorized to provide such technical analyses and 

support as is requested by such advisory committee. 

(c) COMMITTEE MEMBERSHIP.—The membership of the Wind Turbine Guidelines 

Advisory Committee shall not exceed 20 members, and shall be appointed by the 

Secretary of the Interior to achieve balanced representation of wind energy development, wildlife conservation, and government. The members shall include representatives from the United States Fish and Wildlife Service and other Federal agencies, 

and representatives from other interested persons, including States, tribes, wind energy development organizations, nongovernmental conservation organizations, and 

local regulatory or licensing commissions. 

(d) REPORT.—The Wind Turbine Advisory Committee shall, within 18 months 

after the date of enactment of this Act, submit a report to Congress and the Secretary providing recommended guidance for developing effective measures to protect 

wildlife resources and enhance potential benefits to wildlife that may be identified. 

(e) ISSUANCE OF GUIDANCE.—Not later than 6 months after receiving the report 

of the Wind Turbine Guidelines Advisory Committee under subsection (d), the Secretary shall following public notice and comment issue final guidance to avoid and 

minimize impacts to wildlife and their habitats related to land-based wind energy 

facilities. Such guidance shall be based upon the findings and recommendations 

made in the report. 

SEC. 232. AUTHORIZATION OF APPROPRIATIONS FOR RESEARCH TO STUDY WIND ENERGY IMPACTS ON WILDLIFE. 

There is authorized to be appropriated to the Secretary of the Interior $2,000,000 

for each of fiscal years 2008 through 2015 for new and ongoing research efforts to 

evaluate methods for minimizing wildlife impacts at wind energy projects and to explore effective mitigation methods that may be utilized for that purpose. 

SEC. 233. ENFORCEMENT. 

The Secretary shall enforce the Endangered Species Act of 1973, the Migratory 

Bird Treaty Act, the Bald Eagle Protection Act, the Golden Eagle Protection Act, 

the Marine Mammal Protection Act of 1973, the National Environmental Policy Act 

of 1969, and any other relevant Federal law to address adverse wildlife impacts related to wind projects. Nothing in this section preempts State enforcement of applicable State laws. 

SEC. 234. SAVINGS CLAUSE. 

Nothing in this subtitle preempts any provision of State law or regulation relating 

to the siting of wind projects or to consideration or review of any environmental impacts of wind projects. 

Subtitle E—Enhancing Energy Transmission 

SEC. 241. POWER MARKETING ADMINISTRATIONS REPORT. 

(a) ANALYSIS.—The Secretary of Energy, acting through the Administrators of the 

Bonneville and Western Area Power Marketing Administrations and in coordination 

with regional transmission entities, shall conduct, or participate with such regional 

transmission entities to conduct, an analysis of the existing capacity of transmission 

systems serving the States of California, Oregon, and Washington to determine 

whether the existing capacity is adequate to accommodate and integrate development and commercial operation of ocean wave, tidal, and current energy projects in 

State and Federal marine waters adjacent to those States. 

(b) REPORT.—Based on the analysis conducted under subsection (a), the Secretary 

of Energy shall prepare and provide to the Natural Resources Committee of the 

House of Representatives and the Energy and Natural Resources Committee of the 

Senate, not later than one year after the date of enactment of this Act, a report 

identifying changes required, if any, in the capacity of existing transmission systems 

serving the States referred to in subsection (a) in order to reliably and efficiently 

accommodate and integrate generation from commercial ocean wave, tidal, and curVerDate Aug 31 2005 03:42 Aug 08, 2007 Jkt 059010 PO 00000 Frm 00013 Fmt 6659 Sfmt 6621 E:\HR\OC\HR296P1.XXX HR296P1

hmoore on PRODPC68 with HMRPT
14 

rent energy projects in aggregate, escalating amounts equal to 2.5, 5, and 10 percent 

of the current electrical energy consumption in those States. 

(c) LIMITATION ON IMPLEMENTATION OF CHANGES.—The Secretary of Energy shall 

not implement any changes identified in the report under subsection (b) until the 

Secretary determines that transmission capacity backlogs associated with other renewable energies and existing at the time the report is issued have been accommodated and integrated within transmission systems serving the States of California, 

Oregon, and Washington. 

(d) ACTIVITIES NONREIMBURSABLE.—Activities carried out under subsection (a) or 

(b) shall be nonreimbursable. 

(e) EXISTING PROCEDURES AND QUEUING NOT AFFECTED.—Nothing in this section 

supercedes existing procedures and queuing pursuant to the appropriate Open Access Transmission Tariffs filed by the Administrators of the Bonneville and Western 

Area Power Administrations. 

TITLE III—ALTERNATIVE ENERGY AND 

EFFICIENCY 

SEC. 301. STATE OCEAN AND COASTAL ALTERNATIVE ENERGY PLANNING. 

(a) IN GENERAL.—The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 

seq.) is amended by inserting after section 306A the following: 

‘‘OCEAN AND COASTAL ALTERNATIVE ENERGY STATE SURVEYS; ALTERNATIVE ENERGY

SITE IDENTIFICATION AND PLANNING

‘‘SEC. 306B. (a) GRANTS TO STATES.—The Secretary may make grants to eligible 

coastal States to support voluntary State efforts to initiate and complete surveys of 

portions of coastal State waters and Federal waters adjacent to a State’s coastal 

zone, in consultation with the Minerals Management Service, to identify potential 

areas suitable or unsuitable for the exploration, development, and production of alternative energy that are consistent with the enforceable policies of coastal management plans approved pursuant to section 306A. 

‘‘(b) SURVEY ELEMENTS.—Surveys developed with grants under this section may 

include, but not be limited to—

‘‘(1) hydrographic and bathymetric surveys; 

‘‘(2) oceanographic observations and measurements of the physical ocean environment, especially seismically active areas; 

‘‘(3) identification and characterization of significant or sensitive marine ecosystems or other areas possessing important conservation, recreational, ecological, historic, or aesthetic values; 

‘‘(4) surveys of existing marine uses in the outer Continental Shelf and identification of potential conflicts; 

‘‘(5) inventories and surveys of shore locations and infrastructure capable of 

supporting alternative energy development; 

‘‘(6) inventories and surveys of offshore locations and infrastructure capable 

of supporting alternative energy development; and 

‘‘(7) other actions as may be necessary. 

‘‘(c) PARTICIPATION AND COOPERATION.—To the extent practicable, coastal States 

shall provide opportunity for the participation in surveys under this section by relevant Federal agencies, State agencies, local governments, regional organizations, 

port authorities, and other interested parties and stakeholders, public and private, 

that is adequate to develop a comprehensive survey. 

‘‘(d) GUIDELINES.—The Secretary shall, within 180 days after the date of enactment of this section and after consultation with the coastal States, publish guidelines for the application for and use of grants under this section. 

‘‘(e) ANNUAL GRANTS.—For each of fiscal years 2008 through 2011, the Secretary 

may make a grant to a coastal State under this section if the coastal State demonstrates to the satisfaction of the Secretary that the grant will be used to develop 

an alternative energy survey consistent with the requirements set forth in section 

306A and this section. 

‘‘(f) GRANT AMOUNTS.—The amount of any grant under this section shall not exceed $750,000 for any fiscal year. 

‘‘(g) STATE MATCH.—

‘‘(1) BEFORE FISCAL YEAR 2010.—The Secretary shall not require any State 

matching fund contribution for grants awarded under this section for any fiscal 

year before fiscal year 2010. 


hmoore on PRODPC68 with HMRPT
15 

‘‘(2) AFTER FISCAL YEAR 2010.—The Secretary shall require a coastal State to 

provide a matching fund contribution for a grant under this section for surveys 

of a State’s coastal waters, according to—

‘‘(A) a 2-to-1 ratio of Federal-to-State contributions for fiscal year 2010; 

and 

‘‘(B) a 1-to-1 ratio of Federal-to-State contributions for fiscal year 2011. 

‘‘(3) LIMITATION.—The Secretary shall not require any matching funds for surveys of Federal waters adjacent to a State’s coastal zone. 

‘‘(h) SECRETARIAL REVIEW.—After an initial grant is made to a coastal State under 

this section, no subsequent grant may be made to that coastal State under this section unless the Secretary finds that the coastal State is satisfactorily developing its 

survey. 

‘‘(i) LIMITATION ON ELIGIBILITY.—No coastal State is eligible to receive grants 

under this section for more than 4 fiscal years. 

‘‘(j) APPLICABILITY.—This section and the surveys conducted with assistance under 

this section shall not be construed to convey any new authority to any coastal State, 

or repeal or supersede any existing authority of any Federal agency, to regulate the 

siting, licensing, leasing, or permitting of alternative energy facilities in areas of the 

outer Continental Shelf under the administration of the Federal Government. Nothing in this section repeals or supersedes any existing coastal State authority pursuant to State or Federal law. 

‘‘(k) PRIORITY.—Any area that is identified as suitable for potential alternative energy development under surveys developed with assistance under this section shall 

be given priority consideration by Federal agencies for the siting, licensing, leasing, 

or permitting of alternative energy facilities. Any area that is identified as unsuitable under surveys developed with assistance under this section shall be avoided by 

Federal agencies to the maximum extent practicable. 

‘‘(l) ASSISTANCE BY THE SECRETARY.—The Secretary shall—

‘‘(1) under section 307(a) and to the extent practicable, make available to 

coastal States the resources and capabilities of the National Oceanic and Atmospheric Administration to provide technical assistance to the coastal States 

to develop surveys under this section; and 

‘‘(2) encourage other Federal agencies with relevant expertise to participate 

in providing technical assistance under this subsection.’’. 

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 318(a) of the Coastal Zone Management Act of 1972 (16 U.S.C. 1464) is amended—

(1) in paragraph (1)(C) by striking ‘‘and’’ after the semicolon; 

(2) in paragraph (2), by striking the period at the end and inserting a semicolon; and 

(3) by adding at the end the following: 

‘‘(3) for grants under section 306B such sums as are necessary; and’’. 

SEC. 302. CANAL-SIDE POWER PRODUCTION AT BUREAU OF RECLAMATION PROJECTS. 

(a) EVALUATION AND REPORT.—Not later than one year after the date of the enactment of this Act, the Secretary of the Interior shall complete an evaluation and report to Congress on the potential for developing rights-of-way along Bureau of Reclamation canals and infrastructure for solar or wind energy production through leasing of lands or other means. The report to Congress shall specify—

(1) location of potential rights-of-way for energy production; 

(2) total acreage available for energy production; 

(3) existing transmission infrastructure at sites; 

(4) estimates of fair market leasing value of potential energy sites; and 

(5) estimate energy development potential at sites. 

(b) CONSULTATION.—In carrying out this section the Secretary of the Interior shall 

consult with persons that would be affected by development of rights-of-ways referred to in subsection (a), including the beneficiaries of the canal and infrastructure 

evaluated under that subsection. 

(c) LIMITATIONS.—Nothing in this section—

(1) shall be construed to authorize the Bureau of Reclamation or any contractor hired by the Bureau of Reclamation to inventory or access rights-of-way 

owned or operated and maintained by non-Federal interests, unless such interests provide written permission for such inventory or an agreement or contract 

governing Federal access is in effect; 

(2) shall be construed to impede accessibility, impair project operations and 

maintenance, or create additional costs for entities managing the rights-of-way; 

or 

(3) shall be used as the basis of an increase in project-use power or preference 

power costs that will be borne by the consumer. 


hmoore on PRODPC68 with HMRPT
16 

SEC. 303. INCREASING ENERGY EFFICIENCIES FOR WATER DESALINATION. 

The Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104–298) 

is amended by adding at the end the following new section: 

‘‘SEC. 10. RESEARCH ON REVERSE OSMOSIS TECHNOLOGY FOR WATER DESALINATION AND 

WATER RECYCLING. 

‘‘(a) RESEARCH PROGRAM.—The Secretary of the Interior, in consultation with the 

Secretary of Energy, shall implement a program to research methods for improving 

the energy efficiency of reverse osmosis technology for water desalination, water 

contamination, and water recycling. ‘‘(b) REPORT.—Not later than one year after the date of the enactment of this Act, 

the Secretary of the Interior shall submit to Congress a report which shall include— ‘‘(1) a review of existing and emerging technologies, both domestic and international, that are likely to improve energy efficiency or utilize renewable energy 

sources at existing and future desalination and recycling facilities; and ‘‘(2) an analysis of the economic viability of energy efficiency technologies.’’. 

SEC. 304. ESTABLISHING A PILOT PROGRAM FOR THE DEVELOPMENT OF STRATEGIC SOLAR 

RESERVES ON FEDERAL LANDS. 

(a) PURPOSE.—The purpose of this section is to establish a pilot program for the 

development of strategic solar reserve on Federal lands for the advancement, development, assessment, and installation of commercial concentrating solar power energy systems. 

(b) STRATEGIC SOLAR RESERVE PROGRAM.—

(1) SITE SELECTION.—The Secretary of the Interior, in consultation with the 

Secretary of Energy, the Secretary of Defense, and the Federal Energy Regulatory Commission, States, tribal, or local units of governments, as appropriate, 

affected utility industries, and other interested persons, shall complete the following: 

(A) Identify Federal lands under the jurisdiction of the Bureau of Land 

Management, subject to valid existing rights, that are suitable and feasible 

for the installation of concentrating solar power energy systems sufficient 

to create a solar energy reserve of no less than 4 GW and no more than 

25 GW. 

(B) Perform any environmental reviews that may be required to complete 

the designation of such solar reserves. 

(C) Incorporate the designated solar reserves into the relevant agency 

land use and resource management plans or equivalent plans. 

(D) Identify the needed transmission upgrades to the solar reserves. 

(2) MINIMUM POWER OF SITES.—Each site identified as suitable and feasible 

for the installation of concentrating solar power systems shall be sufficient for 

the installation of at least 1 GW. 

(3) LANDS NOT INCLUDED.—The following Federal lands shall not be included 

within a strategic solar reserve site: 

(A) Components of the National Landscape Conservation System. 

(B) Areas of Critical Environmental Concern. 

(4) IMPLEMENTATION OF THE STRATEGIC SOLAR RESERVE LEASING PROGRAM.—

(A) IN GENERAL.—The Secretary of the Interior, in consultation with the 

Secretary of Energy and following the completion of the requirements under 

paragraph (1)(B), shall expeditiously implement a strategic solar reserve 

leasing program in order to lease lands identified under paragraph (1)(A) 

to produce no less than 4 GW and no more than 25 GW of concentrating 

solar power from those lands. 

(B) CRITERIA FOR APPLICATIONS.—The Secretary of the Interior, in consultation with the Secretary of Energy, shall establish criteria for approving 

applications to lease lands under this paragraph based, in part, on the proposed concentrating solar power technologies proposed to be used under 

such leases. 

(C) VARIETY OF TECHNOLOGIES.—The Secretary of the Interior, in consultation with the Secretary of Energy, shall provide for a variety of concentrating solar power technologies to be used under leases under this paragraph. 

(D) MILESTONES.—The Secretary of the Interior, in consultation with the 

Secretary of Energy, shall develop milestones for activities under leases 

under this subsection to ensure due diligence in the development of lands 

under such leases. 

(5) ENVIRONMENTAL COMPLIANCE.—The Secretary of the Interior shall complete all necessary environmental surveys, compliance and permitting for 

rights-of-way pursuant to title V of the Federal Land Policy and Management 

Act of 1976 for each strategic solar reserve, as expeditiously as possible. The 


hmoore on PRODPC68 with HMRPT
17 

applicant shall pay all costs of environmental compliance, including when a determination is made that the land is not suitable and feasible for such installation or the bid is withdrawn following the initiation of such environmental compliance. 

(6) PERMITS.—The Secretary of the Interior shall ensure that all strategic 

solar reserve installation pursuant to this section is permitted using an expedited permitting process. The Secretary shall, in consultation with the Secretary 

of Energy, complete the preparation of a Programmatic Environmental Impact 

Statement by the Departments of Energy and the Interior for concentrating 

solar power on Federal lands. 

(7) RENTAL FEES; LEASE TERM.—The rental fee for each strategic solar reserve 

right-of-way authorization under this subsection shall be established at $300 

per acre during the 10-year period beginning on the date of the enactment of 

this Act. Rental fees after such period shall be established by regulations promulgated by the Secretary of the Interior and shall be adjusted by the Secretary 

each 5 years thereafter. The rental fee shall be paid in annual payments commencing on the day of operation. During the development and construction 

phase of a project, the rental fee shall be waived. The leases shall be for a term 

of 30 years. The rental fees established in this section shall apply to all concentrating solar power projects that have pending applications with the Bureau of 

Land Management as of June 1, 2007. 

(8) REPORT TO CONGRESS.—The Secretary of the Interior, in consultation with 

the Secretary of Energy, shall submit a report to Congress on the findings of 

the pilot project—

(A) not later than 3 years after the installation of the first facility pursuant to this section; and 

(B) 10 years after the installation of the first facility pursuant to this section. 

(c) BUY AMERICAN ACT.—Beginning 3 years after the date of enactment of this 

Act, any equipment used on lands included within a strategic solar reserve site 

must be American-made, as that term is used in the Buy American Act (41 U.S.C. 

10a et seq.). 

(d) DAVIS-BACON ACT.—Notwithstanding any other provision of law, the prevailing wage requirements of subchapter IV of chapter 31 of title 40, United State 

Code, shall apply to any labor funded under this Act. 

(e) SUNSET.—Except as provided in subsection (b)(7), the authorities contained in 

this section shall expire 10 years after the date of the enactment of this Act. 

SEC. 305. OTEC REGULATIONS. 

The Administrator of the National Oceanic and Atmospheric Administration shall, 

within two years after the date of enactment of this Act, issue regulations necessary 

to implement the Administrator’s authority to license offshore thermal energy conversion facilities under the Ocean Thermal Energy Conversion Research, Development, and Demonstration Act (42 U.S.C. 9001 et seq.). 

SEC. 306. BIOMASS UTILIZATION PILOT PROGRAM. 

(a) REPLACEMENT OF CURRENT GRANT PROGRAM.—Section 210 of the Energy Policy Act of 2005 (42 U.S.C. 15855) is amended to read as follows: 

‘‘SEC. 210. BIOMASS UTILIZATION PILOT PROGRAM. 

‘‘(a) FINDINGS.—Congress finds the following: 

‘‘(1) The supply of woody biomass for energy production is directly linked to 

forest management planning to a degree far greater than in the case of other 

types of energy development. 

‘‘(2) As a consequence of this linkage, the process of developing and evaluating 

appropriate technologies and facilities for woody biomass energy and utilization 

must be integrated with long-term forest management planning processes, particularly in situations where Federal lands dominate the forested landscape. 

‘‘(b) BIOMASS DEFINITION FOR FEDERAL FOREST LANDS.—In this section, with respect to organic material removed from National Forest System lands or from public 

lands administered by the Secretary of the Interior, the term ‘biomass’ covers only 

organic material from—

‘‘(1) ecological forest restoration; 

‘‘(2) small-diameter byproducts of hazardous fuels treatments; 

‘‘(3) pre-commercial thinnings; 

‘‘(4) brush; 

‘‘(5) mill residues; and 

‘‘(6) slash. 

‘‘(c) PILOT PROGRAM.—The Secretary of Agriculture and the Secretary of the Interior shall establish a pilot program, to be known as the ‘Biomass Utilization Pilot 


hmoore on PRODPC68 with HMRPT
18 

Program’, involving 10 different forest types on Federal lands, under which the Secretary concerned will provide technical assistance and grants to persons to support 

the following biomass-related activities: 

‘‘(1) The development of biomass utilization infrastructure to support hazardous fuel reduction and ecological forest restoration. 

‘‘(2) The research and implementation of integrated facilities that seek to utilize woody biomass for its highest and best uses, with particular emphasis on 

projects that are linked to implementing community wildfire protection plans, 

ecological forest restoration, and economic development in rural communities. 

‘‘(3) The testing of multiple technologies and approaches to biomass utilization 

for energy, with emphasis on improving energy efficiency, developing thermal 

applications and distributed heat, biofuels, and achieving cleaner emissions including through combustion with other fuels, as well as other value-added uses. 

‘‘(d) BIOMASS SUPPLY STUDY.—Prior to the development of any biomass utilization 

pilot projects, the Secretary concerned shall develop a study to determine the longterm, ecologically sustainable, biomass supply available in the pilot program area. 

The study shall incorporate results form coordinated resource offering protocol 

(CROP) studies. The study shall also analyze the long-term availability of biomass 

materials within a reasonable transportation distance. The biomass supply studies 

shall be developed through a collaborative approach, as evidenced by the broad involvement, analysis, and agreement of interested persons, including local governments, energy developers, conservationists, and land management agencies. The results of the biomass supply study shall be a basis for determining the project scale, 

as outlined in subsection (g). 

‘‘(e) EXCLUSION OF CERTAIN FEDERAL LAND.—The following Federal lands may not 

be included within a pilot project site: 

‘‘(1) Federal land containing old-growth forest or late-successional forest, unless the Secretary concerned determines that the pilot project on such land is 

appropriate for the applicable forest type and maximizes and enhances the retention of late-successional and large- and old-growth trees, late-successional 

and old-growth forest structure, and late-successional and old-growth forest 

composition. 

‘‘(2) Federal land on which the removal of vegetation is prohibited, including 

components of the National Wilderness Preservation System. 

‘‘(3) Wilderness Study Areas. 

‘‘(4) Inventoried roadless areas. 

‘‘(5) Components of the National Landscape Conservation System. 

‘‘(6) National Monuments. 

‘‘(f) MULTIPLE PROJECTS.—In conducting the pilot program, the Secretary concerned shall include a variety of projects involving—

‘‘(1) innovations in facilities of various sizes and processing techniques; and 

‘‘(2) the full spectrum of woody biomass producing regions of the United 

States. 

‘‘(g) SELECTION CRITERIA AND PROJECT SCALE.—In selecting the projects to be conducted under the pilot program, and the appropriate scale of projects, the Secretary 

concerned shall consider criteria that evaluate existing economic, ecological, and social conditions, focusing on opportunities such as workforce training, job creation, 

ecosystem health, reducing energy costs, and facilitating the production of alternative energy fuels. The agreement on the scale of a project shall be reached 

through a collaborative approach, as evidenced by the broad involvement, analysis, 

and agreement of interested persons, including local governments, energy developers, conservationists, and land management agencies. In selecting the appropriate 

scale of projects to be conducted under the pilot program, the Secretary concerned 

shall also consider the results of the supply study as outlined in subsection (d). 

‘‘(h) MONITORING AND REPORTING REQUIREMENTS.—As part of the pilot program, 

the Secretary concerned shall impose monitoring and reporting requirements to ensure that the ecological, social, and economic effects of the projects conducted under 

the pilot program are being monitored and that the accomplishments, challenges, 

and lessons of each project are recorded and reported. 

‘‘(i) OTHER DEFINITIONS.—In this section: 

‘‘(1) HIGHEST AND BEST USE.—The term ‘highest and best use’, with regard to 

biomass, means—

‘‘(A) creating from raw materials those products and those biomass uses 

that will achieve the highest market value; and 

‘‘(B) yielding a wide range of existing and innovative products and biomass uses that create new markets, stimulate existing ones, and improve 

rural economies, maintains or improves ecosystem integrity, while also supporting traditional biomass energy generation. 


hmoore on PRODPC68 with HMRPT
19 

‘‘(2) PILOT PROGRAM.—The term ‘pilot program’ means the Biomass Utilization 

Pilot Program established pursuant to this section. ‘‘(3) SECRETARY CONCERNED.—The term ‘Secretary concerned’ means the Secretary of Agriculture, with respect to National Forest System lands, and the 

Secretary of the Interior, with respect to public lands administered by the Secretary of the Interior. ‘‘(4) COMMUNITY WILDFIRE PROTECTION PLAN.—The term ‘community wildfire 

protection plan’ has the meaning given that term in section 101(3) of the 

Healthy Forest Restoration Act of 2003 (16 U.S.C. 6511(3)), which is further described by the Western Governors Association in the document entitled ‘Preparing a Community Wildfire Protection Plan: A Handbook for Wildland-Interface Communities’ and dated March 2004. ‘‘(5) FEDERAL LAND.—The term ‘Federal land’ means— ‘‘(A) land of the National Forest System (as defined in section 11(a) of the 

Forest and Rangeland Renewable Resources Planning Act of 1974 (16 

U.S.C. 1609(a)) administered by the Secretary of Agriculture, acting 

through the Chief of the Forest Service; and ‘‘(B) public lands (as defined in section 103 of the Federal Land Policy 

and Management Act of 1976 (43 U.S.C. 1702)), the surface of which is administered by the Secretary of the Interior, acting through the Director of 

the Bureau of Land Management. ‘‘(6) INVENTORIED ROADLESS AREA.—The term ‘Inventoried roadless area’ means one of the areas identified in the set of inventoried roadless areas maps 

contained in the Forest Service Roadless Areas Conservation, Final Environmental Impact Statement, Volume 2, dated November 2000. ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

such sums as may be necessary to carry out the pilot program.’’. (b) CLERICAL AMENDMENT.—The table of contents in section 1(b) of such Act is 

amended by striking the item relating to section 210 and inserting the following 

new item: 

‘‘Sec. 210. Biomass utilization pilot program.’’. 

SEC. 307. PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT. 

The Secretary of Commerce and the Secretary of the Interior shall, in cooperation 

with the Federal Energy Regulatory Commission and the Secretary of Energy, and 

in consultation with appropriate State agencies, jointly prepare programmatic environmental impact statements which contain all the elements of an environmental 

impact statement under section 102 of the National Environmental Policy Act of 

1969 (42 U.S.C. 4332), regarding the impacts of the deployment of marine and 

hydrokinetic renewable energy technologies in the navigable waters of the United 

States. One programmatic environmental impact statement shall be prepared under 

this section for each of the Environmental Protection Agency regions of the United 

States. The agencies shall issue the programmatic environmental impact statements 

under this section not later than 18 months after the date of enactment of this Act. 

The programmatic environmental impact statements shall evaluate among other 

things the potential impacts of site selection on fish and wildlife and related habitat. 

Nothing in this section shall operate to delay consideration of any application for 

a license or permit for a marine and hydrokinetic renewable energy technology 

project. 

TITLE IV—CARBON CAPTURE AND CLIMATE 

CHANGE MITIGATION 

Subtitle A—Geological Sequestration Assessment 

SEC. 401. SHORT TITLE. 

This subtitle may be cited as the ‘‘National Carbon Dioxide Storage Capacity Assessment Act of 2007’’. 

SEC. 402. NATIONAL ASSESSMENT. 

(a) DEFINITIONS.—In this section: 

(1) ASSESSMENT.—The term ‘‘assessment’’ means the national assessment of 

capacity for carbon dioxide completed under subsection (f). 

(2) CAPACITY.—The term ‘‘capacity’’ means the portion of a storage formation 

that can retain carbon dioxide in accordance with the requirements (including 

physical, geological, and economic requirements) established under the methodology developed under subsection (b). 


hmoore on PRODPC68 with HMRPT
20 

(3) ENGINEERED HAZARD.—The term ‘‘engineered hazard’’ includes the location 

and completion history of any well that could affect potential storage. 

(4) RISK.—The term ‘‘risk’’ includes any risk posed by geomechanical, geochemical, hydrogeological, structural, and engineered hazards. 

(5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior, 

acting through the Director of the United States Geological Survey. 

(6) STORAGE FORMATION.—The term ‘‘storage formation’’ means a deep saline 

formation, unmineable coal seam, or oil or gas reservoir that is capable of accommodating a volume of industrial carbon dioxide. 

(b) METHODOLOGY.—Not later than 1 year after the date of enactment of this Act, 

the Secretary shall develop a methodology for conducting an assessment under subsection (f), taking into consideration—

(1) the geographical extent of all potential storage formations in all States; 

(2) the capacity of the potential storage formations; 

(3) the injectivity of the potential storage formations; 

(4) an estimate of potential volumes of oil and gas recoverable by injection 

and storage of industrial carbon dioxide in potential storage formations; 

(5) the risk associated with the potential storage formations; and 

(6) the Carbon Sequestration Atlas of the United States and Canada that was 

completed by the Department of Energy in April 2006. 

(c) COORDINATION.—

(1) FEDERAL COORDINATION.—

(A) CONSULTATION.—The Secretary shall consult with the Secretary of 

Energy and the Administrator of the Environmental Protection Agency on 

issues of data sharing, format, development of the methodology, and content of the assessment required under this section to ensure the maximum 

usefulness and success of the assessment. 

(B) COOPERATION.—The Secretary of Energy and the Administrator shall 

cooperate with the Secretary to ensure, to the maximum extent practicable, 

the usefulness and success of the assessment. 

(2) STATE COORDINATION.—The Secretary shall consult with State geological 

surveys and other relevant entities to ensure, to the maximum extent practicable, the usefulness and success of the assessment. 

(d) EXTERNAL REVIEW AND PUBLICATION.—On completion of the methodology 

under subsection (b), the Secretary shall—

(1) publish the methodology and solicit comments from the public and the 

heads of affected Federal and State agencies; 

(2) establish a panel of individuals with expertise in the matters described in 

paragraphs (1) through (5) of subsection (b) composed, as appropriate, of representatives of Federal agencies, institutions of higher education, nongovernmental organizations, State organizations, industry, and international geoscience organizations to review the methodology and comments received under 

paragraph (1); and 

(3) on completion of the review under paragraph (2), publish in the Federal 

Register the revised final methodology. 

(e) PERIODIC UPDATES.—The methodology developed under this section shall be 

updated periodically (including at least once every 5 years) to incorporate new data 

as the data becomes available. 

(f) NATIONAL ASSESSMENT.—

(1) IN GENERAL.—Not later than 2 years after the date of publication of the 

methodology under subsection (d)(1), the Secretary, in consultation with the 

Secretary of Energy and State geological surveys, shall complete a national assessment of capacity for carbon dioxide in accordance with the methodology. 

(2) GEOLOGICAL VERIFICATION.—As part of the assessment under this subsection, the Secretary shall carry out a drilling program to supplement the geological data relevant to determining storage capacity of carbon dioxide in geological storage formations, including—

(A) well log data; 

(B) core data; and 

(C) fluid sample data. 

(3) PARTNERSHIP WITH OTHER DRILLING PROGRAMS.—As part of the drilling 

program under paragraph (2), the Secretary shall enter, as appropriate, into 

partnerships with other entities to collect and integrate data from other drilling 

programs relevant to the storage of carbon dioxide in geologic formations. 

(4) INCORPORATION INTO NATCARB.—

(A) IN GENERAL.—On completion of the assessment, the Secretary of Energy shall incorporate the results of the assessment using the NatCarb 

database, to the maximum extent practicable. 


hmoore on PRODPC68 with HMRPT
21 

(B) RANKING.—The database shall include the data necessary to rank potential storage sites for capacity and risk, across the United States, within 

each State, by formation, and within each basin. 

(5) REPORT.—Not later than 180 days after the date on which the assessment 

is completed, the Secretary shall submit to the Committee on Natural Resources 

of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report describing the findings under the assessment. 

(6) PERIODIC UPDATES.—The national assessment developed under this section 

shall be updated periodically (including at least once every 5 years) to support 

public and private sector decisionmaking. 

(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

to carry out this section $30,000,000 for the period of fiscal years 2008 through 

2012. 

Subtitle B—Terrestrial Sequestration Assessment 

SEC. 421. REQUIREMENT TO CONDUCT AN ASSESSMENT. 

(a) IN GENERAL.—The Secretary of the Interior, acting through the United States 

Geological Survey, shall—

(1) conduct an assessment of the amount of carbon stored in terrestrial, 

aquatic, and coastal ecosystems (including estuaries); 

(2) determine the processes that control the flux of carbon in and out of each 

ecosystem; 

(3) estimate the potential for increasing carbon sequestration in natural systems through management measures or restoration activities in each ecosystem; 

and 

(4) develop near-term and long-term adaptation strategies that can be employed to enhance the sequestration of carbon in each ecosystem. 

(b) USE OF NATIVE PLANT SPECIES.—In developing management measures, restoration activities, or adaptation strategies, the Secretary shall emphasize the use 

of native plant species for each ecosystem. 

(c) CONSULTATION.—The Secretary shall develop the methodology and conduct the 

assessment in consultation with the Secretary of Energy, the Administrator of the 

National Oceanic and Atmospheric Administration, and the heads of other relevant 

agencies. 

SEC. 422. METHODOLOGY. 

(a) IN GENERAL.—Within 270 days after the date of enactment of this Act, the 

Secretary shall develop a methodology for conducting the assessment. 

(b) PUBLICATION OF PROPOSED METHODOLOGY; COMMENT.—Upon completion of a 

proposed methodology, the Secretary shall publish the proposed methodology and solicit comments from the public and heads of affected Federal and State agencies for 

60 days before publishing a final methodology. 

SEC. 423. COMPLETION OF ASSESSMENT AND REPORT. 

The Secretary shall—

(1) complete the national assessment within 2 years after publication of the 

final methodology under section 422; and 

(2) submit a report describing the results of the assessment to the House 

Committee on Natural Resources and the Senate Committee on Energy and 

Natural Resources within 180 days after the assessment is completed. 

SEC. 424. AUTHORIZATION OF APPROPRIATIONS. 

There is authorized to be appropriated to carry out this subtitle $15,000,000 for 

the period of fiscal years 2008 through 2012. 

Subtitle C—Sequestration Activities 

SEC. 431. CARBON DIOXIDE STORAGE INVENTORY. 

Section 354 of the Energy Policy Act of 2005 (42 U.S.C. 15910) is amended by redesignating subsection (d) as subsection (e), and by inserting after subsection (c) the 

following: 

‘‘(d) RECORDS AND INVENTORY.—The Secretary of the Interior, acting through the 

Bureau of Land Management, shall maintain records on and an inventory of the 

amount of carbon dioxide stored from Federal energy leases.’’. 


hmoore on PRODPC68 with HMRPT
22 

SEC. 432. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION ON FEDERAL LANDS. 

Not later than 1 year after the date of enactment of this Act, the Secretary of 

the Interior shall submit to the Committee on Natural Resources of the House of 

Representatives and the Committee on Energy and Natural Resources of the Senate 

a report on a recommended regulatory and certification framework for conducting 

geological carbon sequestration activities on Federal lands. The Secretary shall identify a lead agency within the Department of the Interior to develop this framework. 

One of the goals of the framework shall be to identify what actions need to be taken 

in order to allow for commercial-scale geological carbon sequestration activities to 

be undertaken on Federal lands as expeditiously as possible. 

Subtitle D—Natural Resources and Wildlife 

Programs 

CHAPTER 1—NATURAL RESOURCES MANAGEMENT AND CLIMATE 

CHANGE 

SEC. 441. INTERAGENCY COUNCIL ON CLIMATE CHANGE. 

(a) ESTABLISHMENT.—The Secretary of the Interior shall establish an Interagency 

Council on Climate Change to address the impacts of climate change on Federal 

lands, the ocean environment, and the Federal water infrastructure. The panel shall 

include the head of each of the following agencies: 

(1) The Bureau of Land Management. 

(2) The National Park Service. 

(3) United States Geological Survey. 

(4) The United States Fish and Wildlife Service. 

(5) The Forest Service. 

(6) The National Oceanic and Atmospheric Administration. 

(7) The Bureau of Reclamation. 

(8) The Council on Environmental Quality. 

(9) The Minerals Management Service. 

(10) The Office of Surface Mining Reclamation and Enforcement. 

(b) PLAN.—Not later than one year after the date of the enactment of this Act, 

the Secretary of the Interior shall submit a plan to Congress describing what the 

agencies listed in subsection (a) shall do both individually and cooperatively to accomplish the following: 

(1) Working in cooperation with the United States Geological Survey, develop 

an interagency inventory and Geographic Information System database of 

United States ecosystems, water supplies, and water infrastructure vulnerable 

to climate change. 

(2) Manage land, water, and ocean resources in a manner that takes into account projected climate change impacts, including but not limited to, prolonged 

periods of drought, changing hydrology, and in the case of oceans, increasing 

ocean acidification. 

(3) Develop consistent protocols to incorporate climate change impacts in land 

and water management decisions across land and water resources under the jurisdiction of those agencies listed in subsection (a). 

(4) Incorporate the most current, peer-reviewed science on climate change and 

the economic, social, and ecological impacts of climate change into the decision 

making process of those agencies listed in subsection (a). 

CHAPTER 2—NATIONAL POLICY AND STRATEGY FOR WILDLIFE 

SEC. 451. SHORT TITLE. 

This chapter may be cited as the ‘‘Global Warming Wildlife Survival Act’’. 

SEC. 452. NATIONAL POLICY ON WILDLIFE AND GLOBAL WARMING. 

It is the policy of the Federal Government, in cooperation with State, tribal, and 

affected local governments, other concerned public and private organizations, landowners, and citizens to use all practicable means and measures—

(1) to assist wildlife populations and their habitats in adapting to and surviving the effects of global warming; and 

(2) to ensure the persistence and resilience of the wildlife of the United 

States, together with its habitat, as an essential part of our Nation’s culture, 

landscape, and natural resources. 

SEC. 453. DEFINITIONS. 

In this chapter: 


hmoore on PRODPC68 with HMRPT
23 

(1) ECOLOGICAL PROCESSES.—The term ‘‘ecological processes’’ means the biological, chemical, and physical interactions between the biotic and abiotic components of ecosystems, including nutrient cycling, pollination, predator-prey relationships, soil formation, gene flow, hydrologic cycling, decomposition, and disturbance regimes such as fire and flooding. 

(2) HABITAT LINKAGES.—The term ‘‘habitat linkages’’ means areas that connect wildlife habitat or potential wildlife habitat, and that facilitate the ability 

of wildlife to move within a landscape in response to the effects of global warming. 

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior. 

(4) WILDLIFE.—The term ‘‘wildlife’’ means—

(A) any species of wild, free-ranging fauna, including fish and other 

aquatic species; and 

(B) any fauna in a captive breeding program the object of which is to reintroduce individuals of a depleted indigenous species into previously occupied range. 

(5) HABITAT.—The term ‘‘habitat’’ means the physical, chemical, and biological 

properties that are used by wildlife for growth, reproduction, and survival, including aquatic and terrestrial plant communities, food, water, cover, and space, 

on a tract of land, in a body of water, or in an area or region. 

SEC. 454. NATIONAL STRATEGY. 

(a) REQUIREMENT.—

(1) IN GENERAL.—The Secretary shall, within two years after the date of the 

enactment of this Act, on the basis of the best available science as provided by 

the science advisory board under section 455, promulgate a national strategy for 

assisting wildlife populations and their habitats in adapting to the impacts of 

global warming. 

(2) CONSULTATION AND COMMENT.—In developing the national strategy, the 

Secretary shall—

(A) consult with the Secretary of Agriculture, the Secretary of Commerce, 

the Administrator of the Environmental Protection Agency, State fish and 

wildlife agencies, Indian tribes, local governments, conservation organizations, scientists, and other interested stakeholders; and 

(B) provide opportunity for public comment. 

(b) CONTENTS.—

(1) IN GENERAL.—The Secretary shall include in the national strategy 

prioritized goals and measures to—

(A) identify and monitor wildlife populations, including game species, 

likely to be adversely affected by global warming, with particular emphasis 

on wildlife populations at greatest need for conservation; 

(B) identify and monitor coastal, marine, terrestrial, and freshwater habitat at greatest risk of being damaged by global warming; 

(C) assist species in adapting to the impacts of global warming; 

(D) protect, acquire, and restore wildlife habitat to build resilience to 

global warming; 

(E) provide habitat linkages and corridors to facilitate wildlife movements 

in response to global warming; 

(F) restore and protect ecological processes that sustain wildlife populations vulnerable to global warming; and 

(G) incorporate consideration of climate change in, and integrate climate 

change adaptation strategies for wildlife and its habitat into, the planning 

and management of Federal lands administered by the Department of the 

Interior and lands administered by the Forest Service. 

(2) COORDINATION WITH OTHER PLANS.—In developing the national strategy, 

the Secretary shall to the maximum extent practicable—

(A) take into consideration research and information in State comprehensive wildlife conservation plans, the North American Waterfowl Management Plan, the National Fish Habitat Action Plan, and other relevant wildlife conservation plans; and 

(B) coordinate and integrate, to the extent consistent with the policy set 

forth in section 452, the goals and measures identified in the national strategy with goals and measures identified in such plans. 

(c) REVISION.—The Secretary shall revise the national strategy not later than five 

years after its initial promulgation, and not later than every ten years thereafter, 

to reflect new information on the impacts of global warming on wildlife and its habitat and advances in the development of strategies for adapting to or mitigating for 

such impacts. 

(d) IMPLEMENTATION.—


hmoore on PRODPC68 with HMRPT
24 

(1) IMPLEMENTATION ON FEDERAL LAND SYSTEMS.—To achieve the goals of the 

national strategy and to implement measures for the conservation of wildlife 

and its habitat identified in the national strategy—

(A) the Secretary of the Interior shall exercise the authority of such Secretary under this Act and other laws within the Secretary’s jurisdiction pertaining to the administration of lands; and 

(B) the Secretary of Agriculture shall exercise the authority of such Secretary under this Act and other laws within the Secretary’s jurisdiction pertaining to the administration of lands. 

(2) WILDLIFE CONSERVATION PROGRAMS.—Consistent with their authorities 

under other laws, the Secretary, the Secretary of Agriculture, and the Secretary 

of Commerce shall administer wildlife conservation programs authorized under 

other laws to achieve the goals of the national strategy and to implement measures for the conservation of wildlife and its habitat identified in the national 

strategy. 

SEC. 455. ADVISORY BOARD. 

(a) SCIENCE ADVISORY BOARD.—

(1) IN GENERAL.—The Secretary shall establish and appoint the members of 

a science advisory board comprised of not less than 10 and not more than 20 

members recommended by the President of the National Academy of Sciences 

with expertise in wildlife biology, ecology, climate change and other relevant 

disciplines. The director of the National Global Warming and Wildlife Science 

Center established under subsection (b) shall be an ex officio member of the 

science advisory board. 

(2) FUNCTIONS.—The science advisory board shall—

(A) provide scientific and technical advice and recommendations to the 

Secretary on the impacts of global warming on wildlife and its habitat, 

areas of habitat of particular importance for the conservation of wildlife 

populations affected by global warming, and strategies and mechanisms to 

assist wildlife populations and their habitats in adapting to the impacts of 

global warming in the management of Federal lands and in other Federal 

programs for wildlife conservation; 

(B) advise the National Global Warming and Wildlife Science Center established under subsection (b) and review the quality of the research programs of the Center; and 

(C) advise the Secretary regarding the best science available for purposes 

of section 454(a)(1). 

(3) PUBLIC AVAILABILITY.—The advice and recommendations of the science advisory board shall be available to the public. 

(b) NATIONAL GLOBAL WARMING AND WILDLIFE SCIENCE CENTER.—

(1) IN GENERAL.—The Secretary shall establish the National Global Warming 

and Wildlife Science Center within the United States Geological Survey. 

(2) FUNCTIONS.—The National Global Warming and Wildlife Science Center 

shall—

(A) conduct scientific research on national issues related to the impacts 

of global warming on wildlife and its habitat and mechanisms for adaptation to, mitigation of, or prevention of such impacts; 

(B) consult with and advise Federal land management agencies and Federal wildlife agencies regarding the impacts of global warming on wildlife 

and its habitat and mechanisms for adaptation to or mitigation of such impacts, and the incorporation of information regarding such impacts and the 

adoption of mechanisms for adaptation or mitigation of such impacts in the 

management and planning for Federal lands and in the administration of 

Federal wildlife programs; and 

(C) consult with State and local agencies, universities, and other public 

and private entities regarding their research, monitoring, and other efforts 

to address the impacts of global warming on wildlife and its habitat. 

(3) INTEGRATION WITH OTHER FEDERAL ACTIVITIES.—The Secretary, the Secretary of Agriculture, and the Secretary of Commerce shall ensure that activities carried out pursuant to this section are integrated with climate change program activities carried out pursuant to other Federal law. 

(c) DETECTION OF CHANGES.—The Secretary, the Secretary of Agriculture, and the 

Secretary of Commerce shall each exercise authorities under other laws to carry out 

programs to detect changes in wildlife abundance, distribution, and behavior related 

to global warming, including—

(1) conducting species inventories on Federal lands and in marine areas within the exclusive economic zone of the United States; and 

(2) establishing and implementing robust, coordinated monitoring programs. 


hmoore on PRODPC68 with HMRPT
25 

SEC. 456. AUTHORIZATION OF APPROPRIATIONS. 

(a) IMPLEMENTATION OF NATIONAL STRATEGY.—Of the amounts appropriated to 

carry out this chapter for each fiscal year—

(1) 45 percent are authorized to be made available to Federal agencies to develop and implement the national strategy promulgated under section 454 in 

the administration of the Federal land systems, of which—

(A) 35 percent shall be allocated to the Department of the Interior to—

(i) operate the National Global Warming and Wildlife Science Center 

established under section 455; and 

(ii) carry out the policy set forth in section 452 and implement the 

national strategy in the administration of the National Park System 

the National Wildlife Refuge System, and on the Bureau of Land Management’s public lands; and 

(B) 10 percent shall be allocated to the Department of Agriculture to 

carry out the policy set forth in section 452 and implement the national 

strategy in the administration of the National Forest System; 

(2) 25 percent are authorized to be made available to Federal agencies to 

carry out the policy set forth in section 452 and to implement the national strategy through fish and wildlife programs, other than for the operation and maintenance of Federal lands, of which—

(A) 10 percent shall be allocated to the Department of the Interior to fund 

endangered species, migratory bird, and other fish and wildlife programs 

administered by the United States Fish and Wildlife Service, other than operations and maintenance of the national wildlife refuges; and 

(B) 15 percent shall be allocated to the Department of the Interior for implementation of cooperative grant programs benefitting wildlife including 

the Cooperative Endangered Species Fund, Private Stewardship Grants, the 

North American Wetlands Conservation Act, the Neotropical Migratory 

Bird Conservation Fund, and the National Fish Habitat Action Plan, and 

used for activities that assist wildlife and its habitat in adapting to the impacts of global warming; and 

(3) 30 percent are authorized to be made available for grants to States and 

Indian tribes through the State and tribal wildlife grants program authorized 

under section 461, to—

(A) carry out activities that assist wildlife and its habitat in adapting to 

the impacts of global warming in accordance with State comprehensive 

wildlife conservation plans developed and approved under that program; 

and 

(B) revise or supplement existing State comprehensive wildlife conservation plans as necessary to include specific strategies for assisting wildlife 

and its habitat in adapting to the impacts of global warming. 

(b) AVAILABILITY.—

(1) IN GENERAL.—Funding is authorized to be made available to States and 

Indian tribes pursuant to this section subject to paragraphs (2) and (3). 

(2) INITIAL 5-YEAR PERIOD.—During the 5-year period beginning on the effective date of this Act, a State shall not be eligible to receive such funding unless 

the head of the State’s wildlife agency has—

(A) approved, and provided to the Secretary, an explicit strategy to assist 

wildlife populations in adapting to the impacts of global warming; and 

(B) incorporated such strategy as a supplement to the State’s comprehensive wildlife conservation plan. 

(3) SUBSEQUENT PERIOD.—After such 5-year period, a State shall not be eligible to receive such funding unless the State has submitted to the Secretary, and 

the Secretary has approved, a revision to its comprehensive wildlife conservation plan that—

(A) describes the impacts of global warming on the diversity and health 

of the State’s wildlife populations and their habitat; 

(B) describes and prioritizes proposed conservation actions to assist wildlife populations in adapting to such impacts; 

(C) establishes programs for monitoring the impacts of global warming on 

wildlife populations and their habitats; and 

(D) establishes methods for assessing the effectiveness of conservation actions taken to assist wildlife populations in adapting to such impacts and 

for adapting such actions to respond appropriately to new information or 

changing conditions. 

(c) INTENT OF CONGRESS.—It is the intent of Congress that funding provided to 

Federal agencies and States pursuant to this chapter supplement, and not replace, 

existing sources of funding for wildlife conservation. 


hmoore on PRODPC68 with HMRPT
26 

CHAPTER 3—STATE AND TRIBAL WILDLIFE GRANTS PROGRAM 

SEC. 461. STATE AND TRIBAL WILDLIFE GRANTS PROGRAM. 

(a) AUTHORIZATION OF PROGRAM.—There is authorized to be established a State 

and Tribal Wildlife Grants Program to be administered by the Secretary of the Interior and to provide wildlife conservation grants to States and to the District of Columbia, Puerto Rico, Guam, the United States Virgin Islands, the Northern Mariana 

Islands, American Samoa, and federally recognized Indian tribes for the planning, 

development, and implementation of programs for the benefit of wildlife and their 

habitat, including species that are not hunted or fished. 

(b) ALLOCATION OF FUNDS.—

(1) IN GENERAL.—Of the amounts made available to carry out this section for 

each fiscal year—

(A) 10 percent shall be for a competitive grant program for Indian tribes 

that are not subject to the remaining provisions of this section; 

(B) of the amounts remaining after the application of subparagraph (A), 

and after the deduction of the Secretary’s administrative expenses to carry 

out this section—

(i) not more than one-half of 1 percent shall be allocated to each of 

the District of Columbia and to the Common wealth of Puerto Rico; and 

(ii) not more than one-fourth of 1 percent shall be allocated to each 

of Guam, American Samoa, the United States Virgin Islands, and the 

Commonwealth of the Northern Mariana Islands; and 

(C) of the amount remaining after the application of subparagraphs (B) 

and (C), the secretary shall apportion among the States—

(i) one-third based on the ratio that the land area of each State bears 

to the total land area of all States; and 

(ii) two-thirds based on the ratio that the population of each State 

bears to the total population of all States. 

(2) ADJUSTMENTS.—The amounts apportioned under subparagraph (C) of 

paragraph (1) for a fiscal year shall be adjusted equitably so that no State is 

apportioned under such subparagraph a sum that is—

(A) less than 1 percent of the amount available for apportionment under 

that subparagraph that fiscal year; or 

(B) more than 5 percent of such amount. 

(c) COST SHARING.—

(1) PLAN DEVELOPMENT GRANTS.—The Federal share of the costs of developing 

or revising a comprehensive wildlife conservation plan shall not exceed 75 percent of the total costs of developing or revising such plan. 

(2) PLAN IMPLEMENTATION GRANTS.—The Federal share of the costs of implementing an activity in an approved comprehensive wildlife conservation plan 

carried out with a grant under this section shall not exceed 50 percent of the 

total costs of such activities. 

(3) PROHIBITION ON USE OF FEDERAL FUNDS.—The non-Federal share of costs 

of an activity carried out under this section shall not be paid with amounts derived from any Federal grant program. 

(d) REQUIREMENT FOR PLAN.—

(1) IN GENERAL.—No State, territory, or other jurisdiction shall be eligible for 

a grant under this section unless it submits to the Secretary a comprehensive 

wildlife conservation plan that—

(A) complies with paragraph (2); and 

(B) considers the broad range of the State, territory, or other jurisdiction’s 

wildlife and associated habitats, with appropriate priority placed on those 

species with the greatest conservation need and taking into consideration 

the relative level of funding available for the conservation of those species. 

(2) CONTENTS.—The comprehensive wildlife conservation plan must contain—

(A) information on the distribution and abundance of species of wildlife, 

including low and declining populations as the State, territory, or other jurisdiction’s fish and wildlife agency considers appropriate, that are indicative of the diversity and health of the jurisdiction’s wildlife; 

(B) the location and relative condition of key habitats and community 

types essential to conservation of species identified in subparagraph (A); 

(C) descriptions of problems which may adversely affect species identified 

in subparagraph (A) or their habitats, and priority research and survey efforts needed to identify factors that may assist in restoration and improved 

conservation of these species and habitats; 

(D) descriptions of conservation actions proposed to conserve the identified species and habitats and priorities for implementing such actions; 


hmoore on PRODPC68 with HMRPT
27 

(E) proposed plans for monitoring species identified in subparagraph (A) 

and their habitats, for monitoring the effectiveness of the conservation actions proposed in subparagraph (D), and for adapting these conservation actions to respond appropriately to new information or changing conditions; 

(F) descriptions of procedures to review the comprehensive wildlife conservation plan at intervals not to exceed ten years; 

(G) plans for coordinating the development, implementation, review, and 

revision of the comprehensive wildlife conservation plan with Federal, 

State, and local agencies and Indian tribes that manage significant land 

and water areas within the jurisdiction or administer programs that significantly affect the conservation of identified species and habitats; and 

(H) provisions for broad public participation as an essential element of 

the development, revision, and implementation of the comprehensive wildlife conservation plan. 

(e) SAVINGS CLAUSE.—State comprehensive wildlife strategies approved by the 

Secretary pursuant to previous congressional authorizations and appropriations Acts 

shall remain in effect until such strategies expire or are revised in accordance with 

their terms. Except as specified in section 456(b) with respect to funds made available under such section, conservation and education activities conducted or proposed 

to be conducted pursuant to such previously approved strategies shall remain authorized. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

such sums as are necessary to carry out this section. 

Subtitle E—Ocean Programs 

SEC. 471. OCEAN POLICY, GLOBAL WARMING, AND ACIDIFICATION PROGRAM. 

(a) DEVELOPMENT AND IMPLEMENTATION.—

(1) IN GENERAL.—The Secretary of Commerce, shall, within two years after 

the date of enactment of this Act, and on the basis of the best available science, 

develop and implement a national strategy using existing authorities and the 

authority provided in this section to support coastal State and Federal agency 

efforts to—

(A) predict, plan for, and mitigate the impacts on ocean and coastal ecosystems from global warming, relative sea level rise and ocean acidification; 

and 

(B) ensure the recovery, resiliency, and health of ocean and coastal ecosystems. 

(2) CONSULTATION AND COMMENT.—Before and during the development of the 

national strategy, the Secretary shall—

(A) consult with the Secretary of the Interior, the Administrator of the 

Environmental Protection Agency, the Regional Fishery Management Councils, coastal States, Indian tribes, local governments, conservation organizations, scientists, and other interested stakeholders; and 

(B) provide opportunities for public notice and comment. 

(b) CONTENTS.—

(1) IN GENERAL.—The Secretary shall include in the national strategy 

prioritized goals and measures to—

(A) incorporate climate change adaptation strategies into the planning 

and management of ocean and coastal programs and resources administered by the Department of Commerce; 

(B) support restoration, protection, and enhancement of natural processes 

that minimize the impacts of relative sea level rise, global warming, and 

ocean acidification; 

(C) minimize the impacts of global warming and ocean acidification on 

marine species and their habitats; 

(D) identify, protect, and restore ocean and coastal habitats needed to 

build healthy and resilient ecosystems; 

(E) support the development of climate change resiliency plans under the 

Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.); 

(F) provide technical assistance and training to other Federal agencies, 

States, local communities, universities, and other stakeholders; and 

(G) identify additional research that is needed to better anticipate and 

plan for the impacts of global warming and ocean acidification on ocean and 

coastal resources. 

(2) COORDINATION WITH OTHER PLANS.—In developing the national strategy, 

the Secretary shall—


hmoore on PRODPC68 with HMRPT
28 

(A) take into consideration research and information available in Federal, 

regional, and State management and restoration plans and any other relevant reports and information; and 

(B) encourage and take into account State and regional plans for protecting and restoring the health and resilience of ocean and coastal ecosystems. 

(c) REVISION.—The Secretary shall revise the national strategy not later than 5 

years after its promulgation, and not later than every 10 years thereafter, to reflect 

new information on the impacts of global warming, relative sea level rise, and acidification on ocean and coastal ecosystems and their resources and advances in the 

development of strategies for adapting to or mitigating for such impacts. 

(d) SCIENCE ADVISORY BOARD.— (1) CONSULTATION.—The Secretary shall consult with the National Oceanic 

and Atmospheric Administration’s Science Advisory Board in the development 

and implementation of the strategy. 

(2) REVIEW INFORMATION.—The Science Advisory Board shall periodically— (A) review new information on the impacts of global warming, relative 

sea level rise, and acidification on ocean and coastal ecosystems and their 

resources and advances in the development of strategies for adapting to or 

mitigating for such impacts; and 

(B) provide that information to the Secretary. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

such sums as may be necessary to implement this section. Amounts appropriated 

shall be used for the exclusive purpose of carrying out the activities specified in this 

section. 

(f) REPORT TO CONGRESS.—Copies of the strategy and implementation plan and 

any updates shall be provided to the Congress. 

SEC. 472. PLANNING FOR CLIMATE CHANGE IN THE COASTAL ZONE. 

(a) IN GENERAL.—The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 

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

‘‘CLIMATE CHANGE RESILIENCY PLANNING

‘‘SEC. 320. (a) IN GENERAL.—The Secretary shall establish consistent with the national policies set forth in section 303 a coastal climate change resiliency planning 

and response program to—

‘‘(1) provide assistance to coastal states to voluntarily develop coastal climate 

change resiliency plans pursuant to approved management programs approved 

under section 306, to minimize contributions to climate change and to prepare 

for and reduce the negative consequences that may result from climate change 

in the coastal zone; and 

‘‘(2) provide financial and technical assistance and training to enable coastal 

states to implement plans developed pursuant to this section through coastal 

states’ enforceable policies. 

‘‘(b) GUIDELINES.—Within 180 days after the date of enactment of this section, the 

Secretary, in consultation with the coastal states, shall issue guidelines for the implementation of the grant program established under subsection (c). 

‘‘(c) CLIMATE CHANGE RESILIENCY PLANNING GRANTS.—

‘‘(1) IN GENERAL.—The Secretary, subject to the availability of appropriations, 

may make a grant to any coastal state for the purpose of developing climate 

change resiliency plans pursuant to guidelines issued by the Secretary under 

subsection (b). 

‘‘(2) PLAN CONTENT.—A plan developed with a grant under this section shall 

include the following: 

‘‘(A) Identification of public facilities and public services, coastal resources 

of national significance, coastal waters, energy facilities, or other water 

uses located in the coastal zone that are likely to be impacted by climate 

change. 

‘‘(B) Adaptive management strategies for land use to respond or adapt to 

changing environmental conditions, including strategies to protect biodiversity and establish habitat buffer zones, migration corridors, and climate 

refugia. 

‘‘(C) Requirements to initiate and maintain long-term monitoring of environmental change to assess coastal zone resiliency and to adjust when necessary adaptive management strategies and new planning guidelines to attain the policies under section 303. 

‘‘(3) STATE HAZARD MITIGATION PLANS.—Plans developed with a grant under 

this section shall be consistent with State hazard mitigation plans developed 

under State or Federal law. 


hmoore on PRODPC68 with HMRPT
29 

‘‘(4) ALLOCATION.—Grants under this section shall be available only to coastal 

states with management programs approved by the Secretary under section 306 

and shall be allocated among such coastal states in a manner consistent with 

regulations promulgated pursuant to section 306(c). 

‘‘(5) PRIORITY.—In the awarding of grants under this subsection the Secretary 

may give priority to any coastal state that has received grant funding to develop 

program changes pursuant to paragraphs (1), (2), (3), (5), (6), (7), and (8) of section 309(a). 

‘‘(6) TECHNICAL ASSISTANCE.—The Secretary may provide technical assistance 

to a coastal state consistent with section 310 to ensure the timely development 

of plans supported by grants awarded under this subsection. 

‘‘(7) FEDERAL APPROVAL.—In order to be eligible for a grant under subsection 

(d), a coastal state must have its plan developed under this section approved 

by the Secretary under regulations adopted pursuant to section 306(e). 

‘‘(d) COASTAL RESILIENCY PROJECT GRANTS.—

‘‘(1) IN GENERAL.—The Secretary, subject to the availability of appropriations, 

may make grants to any coastal state that has a climate change resiliency plan 

approved under subsection (c)(7), in order to support projects that implement 

strategies contained within such plans. 

‘‘(2) PROGRAM REQUIREMENTS.—The Secretary within 90 days after approval 

of the first plan approved under subsection (c)(7), shall publish in the Federal 

Register requirements regarding applications, allocations, eligible activities, and 

all terms and conditions for grants awarded under this subsection. No less than 

30 percent of the funds appropriated in any fiscal year for grants under this 

subsection shall be awarded through a merit-based competitive process. 

‘‘(3) ELIGIBLE ACTIVITIES.—The Secretary may award grants to coastal states 

to implement projects in the coastal zone to address stress factors in order to 

improve coastal climate change resiliency, including the following: 

‘‘(A) Activities to address physical disturbances within the coastal zone, 

especially activities related to public facilities and public services, tourism, 

sedimentation, and other factors negatively impacting coastal waters, and 

fisheries-associated habitat destruction or alteration. 

‘‘(B) Monitoring, control, or eradication of disease organisms and invasive 

species. 

‘‘(C) Activities to address the loss, degradation or fragmentation of wildlife habitat through projects to establish marine and terrestrial habitat 

buffers, wildlife refugia or networks thereof, and preservation of migratory 

wildlife corridors and other transition zones. 

‘‘(D) Implementation of projects to reduce, mitigate, or otherwise address 

likely impacts caused by natural hazards in the coastal zone, including sea 

level rise, coastal inundation, coastal erosion and subsidence, severe weather events such as cyclonic storms, tsunamis and other seismic threats, and 

fluctuating Great Lakes water levels. 

‘‘(E) Provide technical training and assistance to local coastal policy makers to increase awareness of science, management, and technology information related to climate change and adaptation strategies.’’. 

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 318(a) of the Coastal Zone Management Act of 1972 (16 U.S.C. 1464) is further amended by adding at the end the 

following: 

‘‘(4) for grants under section 320(c) and (d), such sums as are necessary.’’. 

SEC. 473. ENHANCING CLIMATE CHANGE PREDICTIONS. 

(a) SHORT TITLE.—This section may be cited as the ‘‘National Integrated Coastal 

and Ocean Observation Act of 2007’’. 

(b) PURPOSES.—The purposes of this section are the following: 

(1) Establish a National Integrated Coastal and Ocean Observation System 

comprised of Federal and non-Federal components, coordinated at the regional 

level by a network of Regional Information Coordination Entities, that includes 

in situ, remote, and other coastal and ocean observations, technologies, and 

data management and communication systems, to gather daily specific coastal 

and ocean data variables and to ensure the timely dissemination and availability of usable observation data to support national defense, marine commerce, energy production, scientific research, ecosystem-based marine and 

coastal resource management, and public safety and to promote the general 

public welfare. 

(2) Improve the Nation’s capability to measure, track, explain, and predict 

events related directly and indirectly to climate change, natural climate variability, and interactions between the oceanic and atmospheric environments, including the Great Lakes. 


hmoore on PRODPC68 with HMRPT
30 

(3) Authorize activities to promote basic and applied research to develop, test, 

and deploy innovations and improvements in coastal and ocean observation 

technologies, modeling systems, and other scientific and technological capabilities to improve our conceptual understanding of global climate change and 

physical, chemical, and biological dynamics of the ocean and coastal and Great 

Lakes environments. 

(4) Institutionalize coordinated programs of public outreach, education, and 

training—

(A) to enhance public understanding of the ocean, coastal and Great 

Lakes environment, the influence and effects of global climate change on 

the coastal and ocean environment; and 

(B) to promote greater public awareness and stewardship of the Nation’s 

ocean, coastal, and Great Lakes resources. 

(c) DEFINITIONS.—In this section: 

(1) COUNCIL.—The term ‘‘Council’’ means the National Ocean Research Leadership Council referred to in section 7902 of title 10, United States Code. 

(2) ADMINISTRATOR.—The term ‘‘Administrator’’ means the Administrator of 

the National Oceanic and Atmospheric Administration. 

(3) FEDERAL ASSETS.—The term ‘‘Federal assets’’ means all relevant non-classified civilian coastal and ocean observations, technologies, and related modeling, research, data management, basic and applied technology research and 

development, and public education and outreach programs, that are managed 

by member agencies of the Council. 

(4) NON-FEDERAL ASSETS.—The term ‘‘non-Federal assets’’ means all relevant 

coastal and ocean observations, technologies, related basic and applied technology research and development, and public education and outreach programs 

managed through States, regional organizations, universities, nongovernmental 

organizations, or the private sector. 

(5) REGIONAL INFORMATION COORDINATION ENTITIES.—

(A) IN GENERAL.—The term ‘‘Regional Information Coordination Entity’’, 

subject to subparagraphs (B) and (C), means an organizational body that 

is certified or established by the lead Federal agency designated in subsection (d)(3)(C)(iii) and coordinating State, Federal, local, and private interests at a regional level with the responsibility of engaging the private 

and public sectors in designing, operating, and improving regional coastal 

and ocean observing systems in order to ensure the provision of data and 

information that meet the needs of user groups from the respective regions. 

(B) INCLUDED ASSOCIATIONS.—Such term includes Regional Associations 

as described by the System Plan. 

(C) LIMITATION.—Nothing in this section shall be construed to invalidate 

existing certifications, contracts, or agreements between Regional Associations and other elements of the System. 

(6) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Commerce. 

(7) SYSTEM.—The term ‘‘System’’ means the National Integrated Coastal and 

Ocean Observation System established under subsection (d). 

(8) SYSTEM PLAN.—The term ‘‘System Plan’’ means the plan contained in the 

document entitled ‘‘Ocean.US publication #9, The First Integrated Ocean Observing System (IOOS) Development Plan’’. 

(9) INTERAGENCY WORKING GROUP.—The term ‘‘Interagency Working Group’’

means the Interagency Working Group on Ocean Observations as established 

by the U.S. Ocean Policy Committee Subcommittee on Ocean Science and Technology pursuant to Executive Order 13366 signed December 17, 2004. 

(d) NATIONAL INTEGRATED COASTAL AND OCEAN OBSERVING SYSTEM.—

(1) ESTABLISHMENT.—The President, acting through the Council, shall establish a National Integrated Coastal and Ocean Observation System to fulfill the 

purposes set forth in subsection (b) and the System plan and to fulfill the Nation’s international obligations to contribute to the global earth observation system of systems and the global ocean observing system. 

(2) SUPPORT OF PURPOSES.—The head of each agency that is a member of the 

Interagency Working Group shall support the purposes of this section. 

(3) AVAILABILITY OF DATA.—The head of each Federal agency that has administrative jurisdiction over a Federal asset shall make available data that are 

produced by that asset and that are not otherwise restricted for integration, 

management, and dissemination by the System. 

(4) ENHANCING ADMINISTRATION AND MANAGEMENT.—The head of each Federal agency that has administrative jurisdiction over a Federal asset may take 

appropriate actions to enhance internal agency administration and management 

to better support, integrate, finance, and utilize observation data, products, and 


hmoore on PRODPC68 with HMRPT
31 

services developed under this section to further its own agency mission and responsibilities. 

(5) PARTICIPATION IN REGIONAL INFORMATION COORDINATION ENTITY.—The 

head of each Federal agency that has administrative jurisdiction over a Federal 

asset may participate in regional information coordination entity activities. 

(6) NON-FEDERAL ASSETS.—Non-Federal assets shall be coordinated by the 

Interagency Working Group or by Regional Information Coordination Entities. 

(e) POLICY OVERSIGHT, ADMINISTRATION, AND REGIONAL COORDINATION.— (1) NATIONAL OCEAN RESEARCH LEADERSHIP COUNCIL.—The National Ocean 

Research Leadership Council shall be responsible for establishing broad coordination and long-term operations plans, policies, protocols, and standards for the 

System consistent with the policies, goals, and objectives contained in the System Plan, and coordination of the System with other earth observing activities. 

(2) INTERAGENCY WORKING GROUP.—The Interagency Working Group shall, 

with respect to the System, be responsible for— (A) implementation of operations plans and policies developed by the 

Council; 

(B) development of an annual coordinated, comprehensive System budget; 

(C) identification of gaps in observation coverage or needs for capital improvements of both Federal assets and non-Federal assets; 

(D) establishment of data management and communication protocols and 

standards; 

(E) establishment of required observation data variables; 

(F) development of certification standards for all non-Federal assets or 

Regional Information Coordination Entities to be eligible for integration 

into the System; and 

(G) periodically review and recommend to the Council revisions to the 

System plan. 

(3) LEAD FEDERAL AGENCY.—The Secretary, acting through the Administrator, 

shall function as the lead Federal agency for the System. The Secretary, 

through the Administrator, may establish an Interagency Program Coordinating 

Office to facilitate the Secretary’s responsibilities as the lead Federal agency for 

System oversight and management. The Administrator shall—

(A) implement policies, protocols, and standards established by the Council and delegated by the Interagency Working Group; 

(B) promulgate regulations to integrate the participation of non-Federal 

assets into the System and enter into and oversee contracts and agreements 

with Regional Information Coordination Entities to effect this purpose; 

(C) implement a competitive funding process for the purpose of assigning 

contracts and agreements to Regional Information Coordination Entities; 

(D) certify or establish Regional Information Coordination Entities to coordinate State, Federal, local, and private interests at a regional level with 

the responsibility of engaging private and public sectors in designing, operating, and improving regional coastal and ocean observing systems in order 

to ensure the provision of data and information that meet the needs of user 

groups from the respective regions; 

(E) formulate a process by which gaps in observation coverage or needs 

for capital improvements of Federal assets and non-Federal assets of the 

System can be identified by the Regional Information Coordination Entities, 

the Administrator, or other members of the System and transmitted to the 

Interagency Working Group; 

(F) be responsible for the coordination, storage, management, and communication of observation data gathered through the System to all end-user 

communities; 

(G) subject to the availability of appropriations and pursuant to procedures adopted by the Administrator after consultation with the working 

group and the system advisory panel, implement a competitive matching 

grant or other grant program to promote research and development of innovative and new observation technologies, including testing and field trials; 

(H) implement a program of public education and outreach to improve 

public awareness of global climate change and effects on the ocean, coastal, 

and Great Lakes environment; and 

(I) report annually to the Council through the Interagency Working 

Group on the accomplishments, operational needs, and performance of the 

System to achieve the purposes of this Act and the System plan. 

(4) REGIONAL INFORMATION COORDINATION ENTITY.—To be certified or established under paragraph (3)(D), a Regional Information Coordination Entity 

must be certified or established by contract or agreement by the Administrator, 

and must agree to—


hmoore on PRODPC68 with HMRPT
32 

(A) gather required System observation data and other requirements 

specified under this section and the System plan; 

(B) identify gaps in observation coverage or needs for capital improvements of Federal assets and non-Federal assets of the System, and transmit 

such information to the Interagency Working Group via the Administrator; 

(C) demonstrate an organizational structure and strategic operational 

plan to ensure the efficient and effective administration of programs and 

assets to support daily data observations for integration into the System; 

(D) comply with all financial oversight requirements established by the 

Administrator, including requirements relating to audits; and 

(E) demonstrate a capability to work with other governmental and nongovernmental entities at all levels to identify and provide information products of the System for multiple users within the service area of the Regional Information Coordination Entities and otherwise. 

(5) SYSTEM ADVISORY PANEL.—The Secretary, through the Administrator, may 

establish and appoint an advisory panel to advise the Council on the operations, 

management, and needs of the System. The appointment of this panel shall be 

done in consultation with the Interagency Working Group. Panel membership 

shall be broadly representative of all stakeholders and the user community of 

the System, including State and local governments. 

(6) CIVIL LIABILITY.—For purposes of determining liability arising from the 

dissemination and use of observation data gathered pursuant to this section, 

any non-Federal asset or Regional Information Coordination Entity that is certified under paragraph (3)(D) and that is participating in the System shall be 

considered to be part of the National Oceanic and Atmospheric Administration. 

Any employee of such a non-Federal asset or Regional Information Coordination 

Entity, while operating within the scope of his or her employment in carrying 

out the purposes of this section, with respect to tort liability, is deemed to be 

an employee of the Federal Government. 

(f) INTERAGENCY FINANCING, GRANTS, CONTRACTS, AND AGREEMENTS.—

(1) IN GENERAL.—The member departments and agencies of the Council, subject to the availability of appropriations, may participate in interagency financing and share, transfer, receive, obligate, and expend funds appropriated to any 

member agency for the purposes of carrying out any administrative or programmatic project or activity to further the purposes of this section, including 

support for the Interagency Working Group, the Interagency Coordinating Program Office, a common infrastructure, and integration to expand or otherwise 

enhance the System. 

(2) JOINT CENTERS AND AGREEMENTS.—Member Departments and agencies of 

the Council shall have the authority to create, support, and maintain joint centers, and to enter into and perform such contracts, leases, grants, cooperative 

agreements, or other transactions as may be necessary to carry out the purposes of this section and fulfillment of the System Plan. 

(g) APPLICATION WITH OTHER LAWS.—Nothing in this section supersedes or limits 

the authority of any agency to carry out its responsibilities and missions under 

other laws. 

(h) REPORT TO CONGRESS.—Two years after the date of enactment of this Act, and 

biennially thereafter, the Secretary through the Council shall submit to the Congress a report on the performance of the System, achievement of the purposes and 

objectives of this section and the System plan, and recommendations for operational 

improvements to enhance the efficiency, accuracy, and overall capability of the System. 

TITLE V—ADDITIONAL PROVISIONS 

SEC. 501. SHARING OF PENALTIES. 

Notwithstanding any other provision of this Act, any amounts received by the 

United States in an action brought under section 3730 of title 31, United States 

Code, that arise from any underpayment of royalties owed to the United States 

under any lease, and are treated as royalties paid to the United States under that 

lease for the purposes of the mineral leasing laws and the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 4601–4 et seq.), and that are being made 

available for any coal-to-liquids programs or pilot projects funded in whole or part 

by the Federal Government, shall also be equally available for wind, solar, biomass, 

geothermal, cellulosic ethanol, or other renewable energy program funded in whole 

or part by the Federal Government, subject to appropriations. 


hmoore on PRODPC68 with HMRPT
33 

SEC. 502. SHARING OF FEES. 

Notwithstanding any other provision of this Act, of the amounts received by the 

United States pursuant to a fee established by this Act with respect to Federal onshore lands that are subject to a lease for production of oil, natural gas, or coal 

under which production is not occurring, and that are made available under this Act 

for any coal-to-liquids programs or pilot projects funded in whole or part by the Federal Government, shall also be made equally available for wind, solar, biomass, geothermal, cellulosic ethanol, or other renewable energy program funded in whole or 

part by the Federal Government, subject to appropriations. 

SEC. 503. OIL SHALE COMMUNITY IMPACT ASSISTANCE. 

(a) ESTABLISHMENT OF FUND.—There is established on the books of the Treasury 

of the United States a separate account to be known as the Oil Shale Community 

Impact Assistance Fund (hereinafter in this section referred to as the ‘‘Fund’’). The 

Fund shall be administered by the Secretary of the Interior acting through the Director of the Bureau of Land Management. 

(b) CONTENTS.—

(1) IN GENERAL.—There shall be credited to the Fund—

(A) all amounts paid to the United States as bonus bids in connection 

with the award of commercial oil shale leases pursuant to section 369(e) of 

the Energy Policy Act of 2005 (42 U.S.C. 15927(e)); and 

(B) an amount equal to 25 percent of the portion of the other amounts 

deposited into the Treasury pursuant to section 35(a) of the Mineral Leasing Act (30 U.S.C. 191) with respect to such leases, that remains after deduction of all payments made pursuant to of such section. 

(2) TERMINATION OF CREDITING OF ROYALTIES.—Paragraph (1)(B) shall not 

apply to royalties received by the United States under a commercial oil shale 

lease after the end of the 10-year period beginning on the date on which the 

first amount of royalty under such lease is paid to the United States. 

(c) DISTRIBUTION.—

(1) IN GENERAL.—The Secretary, subject to the availability of appropriations, 

shall use amounts in the Fund to annually pay to each county in which is located land subject to a commercial oil shale lease referred to in subsection (b)(1) 

an amount equal to the amount credited to the Fund during the preceding year 

pursuant to section (b) with respect to such lease. If such land is located in 

more than one county, the Secretary shall allocate such payment among such 

counties on the basis of the relative amount of lands subject to the lease within 

each such county. 

(2) USE OF PAYMENT.—Amounts paid to a county under this subsection shall 

be used by the county for the planning, construction, and maintenance of public 

facilities and the provision of public services. 

SEC. 504. ADDITIONAL NOTICE REQUIREMENTS. 

(a) PERMITTEES.—At least 45 days before offering lands for lease pursuant to section 17(f) of the Mineral Leasing Act (30 U.S.C. 226(f)), the Secretary of the Interior 

shall provide notice of the proposed leasing activity in writing to the holders of special recreation permits for commercial use, competitive events, and other organized 

activities on the lands being offered for lease. 

(b) CONSERVATION EASEMENT HOLDERS.—

(1) If the holder of a conservation easement or similar property interest in the 

surface estate of lands eligible for leasing under the Mineral Leasing Act has 

informed the Secretary of the Interior of the existence of such property interest, 

the Secretary shall treat such holder as a surface estate owner for purposes of 

section 221(d) of this Act. 

(2) As soon as possible after the date of enactment of this Act, the Secretary 

of the Interior shall establish a means for holders of property interests described in paragraph (1) to provide notice of such interests, and shall inform the 

public regarding such means. 

PURPOSE OF THE BILL

The purpose of H.R. 2337, the Energy Policy Reform and Revitalization Act, is to promote energy policy reforms and public accountability, alternative energy and efficiency, and carbon capture and 

climate change mitigation, and for other purposes. 


hmoore on PRODPC68 with HMRPT
34 

BACKGROUND AND NEED FOR LEGISLATION

The Energy Policy Reform and Revitalization Act is fiscally responsible legislation which addresses the nation’s needs for a 

sounder energy policy and the challenges of climate change mitigation in regards to public lands and natural resources. The bill restores accountability to the Federal oil and gas leasing program, 

both in terms of permitting and royalty collection. The bill further 

addresses the development of oil and gas resources on split-estate 

lands, so that surface owners, who do not hold title to the minerals, 

are notified and compensated when the sub-surface oil and gas resources are developed. H.R. 2337 includes a number of renewable 

energy provisions relating to biomass, hydropower, ocean thermal, 

and solar. The bill also authorizes USGS carbon capture and sequestration assessments and inventories, requires the BLM to develop a framework for carbon sequestration on public lands, and 

sets forth several new climate change initiatives related to the 

oceans, wildlife and climate change projections. 

In developing this legislation, the committee considered the recommendations of more than 100 witnesses who testified at 14 hearings since January 2007. Key provisions included in H.R. 2337 as 

reported by the Committee will: 

Give the Department of the Interior enhanced enforcement authority and auditing capability to ensure that companies pay oil 

and gas royalties that they owe for the development of publiclyowned resources. These provisions have no impact on the vast majority of companies that pay their royalties in full and on time. Underpayment and fraudulent activity by oil and gas lessees is a serious problem in the Federal oil and gas royalty management program. In 2001, a number of the nation’s biggest oil companies settled allegations of systematic cheating on royalty payments by paying nearly $440 million to the United States. 

Initiate a framework for enabling our nation to sequester carbon 

dioxide under the ground to insure the future use of fuels, such as 

coal, in an environmentally responsible fashion—helping to mitigate the impact of global warming and reasserting America’s responsibility to address worldwide climate change. 

Rather than have taxpayers foot the bill, implement the Administration’s proposed fee for the processing of applications for a permit to drill on public lands and also impose a $1 per acre fee on 

non-producing oil and gas and coal leases, generating revenue that 

is reinvested to restore degraded public lands. 

Codify the Western Governors’ Association policy concerning categorical exclusions from the National Environmental Policy Act to 

better protected wildlife migration corridors and crucial wildlife 

habitat on western public lands. 

Eliminate the arbitrary deadlines of the western energy corridor 

process, and allow for a study to ensure that officials look at where 

the congestion really exists and consider where those special places 

are that should not have pipelines running through or wires strung 

over. 

Provide for more responsible development of oil shale resources. 

Help protect the right to healthy lands and waters for surface 

owners in split eState situations—areas in which the surface rights 

belong to private individuals, while the rights to the oil and gas reVerDate Aug 31 2005 03:42 Aug 08, 2007 Jkt 059010 PO 00000 Frm 00034 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296P1.XXX HR296P1

hmoore on PRODPC68 with HMRPT
35 

sources under the surface are publicly held and managed by the 

government. 

Encourage the development of renewable resources through the 

establishment of an innovative program to more effectively use 

woody biomass derived from brush, hazardous fuel reduction, and 

ecological restoration on Federal forest lands. It would also set up 

a process for generating between 4 and 25 gigawatts of solar power 

on Federal lands. 

Authorize guidance for avoiding and minimizing impacts to wildlife and habitat for the wind energy industry—a need affirmed by 

the Fish and Wildlife Service—to help ensure that the industry is 

able to develop and grow in a responsible manner. 

Establish a national ocean observation system to detect daily 

changes and cyclical shifts in the ocean environment and gather information important to national defense, marine commerce, and 

scientific research—a key recommendation outlined by the Joint 

Ocean Commission Initiative. 

Direct the Secretary of the Interior to develop a national strategy 

to assist wildlife populations and their habitats in adapting to the 

impacts of climate change—and provide States new funding opportunities to assist wildlife in adapting to global warming. 

COMMITTEE ACTION

H.R. 2337 was introduced by Natural Resources Committee 

Chairman Nick J. Rahall, II (D–WV) and Energy and Mineral Resources Subcommittee Chairman Jim Costa (D–CA) on May 16, 

2007. The bill was referred to the Committee on Natural Resources. A full committee hearing was held on May 23, 2007. 

In addition, 13 hearings were held by the full committee or the 

subcommittees on topics related to H.R. 2337 in the weeks preceding introduction of the bill: • February 16, 2007, Natural Resources Committee oversight 

hearing on ‘‘Reports, Audits and Investigations by the Government 

Accountability Office and the Office of Inspector General Regarding 

the Department of the Interior.’’ This hearing provided an overview 

of issues and problems identified or under review by the Department of the Interior’s Inspector General (IG) and the Government 

Accountability Office (GAO). The Committee heard testimony related to the ongoing, serious problems at the Minerals Management 

Service (MMS) relating to royalty collection and auditing of oil and 

gas lessees. Specifically, the IG’s December 2006 report (Report No. 

C–IN–MMS–0006–2006), on the audit and compliance review process at MMS found that there are aspects of the process that should 

be improved, including data collection and the threshold for conducting full-scale audits. In addition, the report states that MMS 

has reduced the number of auditor positions located in the Compliance and Asset Management Program by 35, or 20.7 percent, since 

2000. The MMS has reduced the number of audits by 22 percent 

over the period from 2000/2001 to 2004/2005. 

The Committee also heard testimony from GAO relating to a 

2005 report on oil and gas drilling permits approved by the Bureau 

of Land Management (BLM) between 1999 and 2004. In its report, 

GAO concluded that the BLM’s increased oil and gas permitting activity ‘‘has lessened BLM’s ability to meet its environmental protection responsibilities.’’ GAO’s analysis found that as permits for oil 


hmoore on PRODPC68 with HMRPT
36 

and gas development tripled nationwide—from 1,803 in fiscal year 

1999 to 6,399 in 2004—in five out of eight BLM field offices, staff 

had to spend increased time processing drilling permits, resulting 

in less time for mitigation activities, such as environmental inspections and idle-well reviews. 

• February 28, 2007, Natural Resources Committee oversight 

hearing on the ‘‘Evolving West.’’ This hearing focused on the changing environmental and economic conditions of the western States, 

and the increasing pressures on public lands and resources. Witnesses identified growing conflicts between poorly managed oil and 

gas development and other uses of the public lands. 

• March 20, 2007, Subcommittee on Energy and Mineral Resources oversight hearing on ‘‘Toward a Clean Energy Future: Energy Policy and Climate Change on Public Lands.’’ This hearing 

provided an overview of the challenges posed by global climate 

change on our public lands, from a potential increase in California 

fires to the impact of melting polar ice on wildlife to negative impacts on the environmental and ecotourism industry. Approximately 30% of the nation’s land, almost 700 million acres, is public 

land managed by the Department of the Interior and the U.S. Forest Service. Climate change is having a significant effect on national parks and other protected areas, as evidenced by increasing 

cycles of drought, wildfire and severe storms. Witnesses advocated 

a range of approaches, some of which are included in H.R. 2337, 

especially as it relates to wildlife protection. 

• March 27, 2007, Natural Resources Committee oversight hearing on ‘‘Access Denied: The Growing Conflict between Fishing, 

Hunting and Energy Development on Federal Lands.’’ This hearing 

highlighted the concerns of hunters and anglers in the debate on 

the balanced use of Federal lands. Hunting and fishing constitute 

an important component of the American way of life and should remain available to all Americans regardless of financial means. Yet, 

as the hearing documented, hunters and anglers are alarmed by 

the escalating harm to fish and wildlife habitat from oil and gas 

development. The Committee heard from a labor-sportsman coalition that has coalesced to address concerns about the adverse effects of oil and gas activities on wildlife, who recommended amendments to EPAct, greater protection of wildlife corridors and habitat, 

and surface owner protections for split-estate lands. 

• March 28, 2007, Natural Resources Committee oversight hearing on ‘‘Royalties at Risk.’’ This full committee hearing focused on 

the mismanagement of Federal royalty collection at the Minerals 

Management Service, brought to light by recent Inspector General 

and GAO reports and by the press. Assistant Secretary of the Department of the Interior C. Stephen Allred and the Acting Director 

of the Natural Resources and Environment section of the GAO testified on the changes that have been made at the Department of 

the Interior and within MMS to address some of the many problems facing that agency. Witnesses also included former MMS 

auditors who testified on the significant problems at MMS, and the 

resultant significant losses to the Federal treasury, States and Native tribes as a result of mismanagement. Problems identified included both institutional weaknesses and inadequacies in existing 

law. 


hmoore on PRODPC68 with HMRPT
37 

Over the last decade, MMS has shifted its emphasis toward the 

royalty-in-kind (RIK) program to the detriment of effective royalty 

collection. Since 1997, when it initiated three ‘‘pilot programs,’’ MMS has progressively increased the size and scope of the RIK 

program. At Chairman Rahall’s request, GAO reviewed the RIK 

program and found that revenue impacts from RIK sales in three 

pilot-project areas indicated a mixed performance, that MMS needed to identify and acquire key information to monitor and evaluate 

the RIK program prior to expanding the program further, and that 

MMS was unable to determine whether it was losing revenue 

through its RIK pilot programs. In addition, the New York Times 

has recently reported that the Justice Department is conducting 

criminal investigations into officials in charge of the RIK program. • March 29, 2007, Subcommittee on Fisheries, Wildlife and 

Oceans oversight hearing on ‘‘Ocean Policy Priorities in the United 

States.’’ This hearing provided an overview of the recommendations 

of the U.S. Commission on Ocean Policy and the Pew Oceans Commission. While the recommendations of the two Commissions were 

broad and far reaching, both emphasized the need for better coordination and alignment of purpose amongst the Federal agencies that 

authorize or conduct activities in the oceans to minimize the impacts of those activities—including energy development—on the 

marine environment. Witnesses testified about the need for Congress to quickly authorize a national integrated coastal ocean observation system in order to collect more and better data from the 

oceans and better predict and manage the impacts that climate 

change is having and will have on the oceans and our atmosphere. 

They also testified on the need for additional research and planning to understand and accommodate the impacts of climate 

change on the coastal zone and the communities that live there. • April 17, 2007, Subcommittee on Energy and Mineral Resources oversight hearing on ‘‘Implementation of Title III, the Oil 

and Gas Provisions of the Energy Policy Act of 2005.’’ This hearing 

took an in-depth look at some of the problems created by Title III 

of EPAct 2005, specifically Sections 365(g), 366, 368, 369 and 390. 

Witness testimony supported the 2005 GAO report finding that the 

BLM’s increased oil and gas permitting activity ‘‘has lessened 

BLM’s ability to meet its environmental protection responsibilities.’’

As discussed during the hearing, oil and gas development has ecological consequences. The ‘‘footprint’’ of an individual well or pad 

may be relatively small, but production requires infrastructure and 

development such as roads and pipelines that can contaminate 

water, reduce water quantity, degrade fish habitat, and fragment 

wildlife corridors, calving grounds, and nesting areas. Economically 

and culturally, wildlife is an important component of the West. 

Trout Unlimited estimates that nine million people spend more 

than $5 billion each year to hunt, fish, or otherwise enjoy the wildlife populations in the five Rocky Mountain States. 

Section 390 of EPAct allows BLM to use categorical exclusions 

under the National Environmental Policy Act of 1969 for individual 

sites that involve surface disturbance of less than five acres; for a 

well at a location on which drilling has previously occurred within 

5 years; for a well within a developed field that has an approved 

land use plan ‘‘or any environmental document prepared pursuant 

to NEPA’’ within the preceding 5 years; for a new pipeline in an 


hmoore on PRODPC68 with HMRPT
38 

approved right-of-way corridor as long as the approval occurred 

within five years of construction of the pipeline; and for maintenance of a minor activity. In a resolution approved Feb. 27, 2007, 

the Western Governors Association called on Congress to remove 

that categorical exclusion language for exploration or development 

of oil and gas in wildlife corridors and crucial wildlife habitat on 

Federal land. 

In general, witnesses recommended repeal of Section 390 of 

EPAct 2005, asserting that without the blanket exemption for oil 

and gas activities on Federal lands, BLM would be able to consider 

applications for ‘‘categorical exclusions’’ from NEPA review, but all 

such applications would be subject to the ‘‘extraordinary circumstances’’ criteria of the Department of the Interior’s NEPA 

rules. In other words, repeal of the provision would allow the BLM 

some discretion in applying a categorical exclusion to NEPA for oil 

and gas activities. • April 17, 2007, Subcommittee on Fisheries, Wildlife and 

Oceans oversight hearing on ‘‘Wildlife and Oceans in a Changing 

Climate.’’ This hearing provided an overview of the impacts that 

climate change is having and will continue to have on oceans and 

wildlife. 

Several witnesses, including experts on chemical oceanography, 

wildlife biology, and conservation testified regarding the need to research, anticipate and plan for the impacts of ocean acidification on 

marine life and the impacts of climate change on wildlife populations and their habitats. • April 19, 2007, Subcommittee on Energy and Mineral Resources oversight hearing on ‘‘Review of Title II, Subtitle B—Geothermal Energy of EPAct; and other renewable programs and proposals for public resources.’’ This hearing focused on the vast potential for increasing domestic energy production on public lands 

using renewable energy. According to witnesses from the geothermal, solar, wind, and biomass industries, renewable energy has 

the potential to create American jobs, reduce fossil fuel emissions 

from energy production, and create substantial amounts of green 

energy. However, significant challenges to the industry still exist, 

and long term research and development projects are needed to 

bring these new and emerging technologies to a commercial scale, 

in addition to ensuring the energy produced by renewable energy 

can obtain access to the Federal transmission system. 

• April 24, 2007, Subcommittees on Energy and Mineral Resources and Fisheries, Wildlife and Oceans joint oversight hearing: 

‘‘Renewable Energy Opportunities and Issues on the Outer Continental Shelf.’’ This hearing reviewed the opportunities for renewable energy development on the Outer Continental Shelf (OCS). 

While it was generally acknowledged that there is a vast potential 

for renewable energy generation on the OCS, the roles of the Minerals Management Service, Federal Energy Regulatory Commission, and National Oceanic and Atmospheric Administration in 

managing projects are not clear. Additional environmental concerns 

indicate the need for more careful and thorough study of the potential projects. Witnesses from State organizations, the renewable energy industry, and fisheries associations testified that while the 

challenges associated with OCS renewable energy development are 

real, so are the opportunities. 


hmoore on PRODPC68 with HMRPT
39 

• April 26, 2007, Subcommittees on Energy and Mineral Resources and National Parks, Forests and Public Lands joint oversight hearing on ‘‘Land Use Issues Associated with Onshore Oil 

and Gas Leasing and Development.’’ This hearing focused on the 

effects of provisions in EPAct 2005 that facilitate oil and natural 

gas activities on public lands, and the concern that this emphasis 

results in inadequate environmental planning. Additionally, witnesses raised the issue of stockpiling leases, noting the recent steep 

increase in permits without increased production. 

A representative of the Western Governors Association testified 

about their call for the repeal of a provision in the Energy Policy 

Act of 2005 that created new categorical exclusions from the National Environmental Policy Act. Witnesses also discussed conflicts 

arising from split estate ownership, the surface disposal of large 

quantities of mineral-laden water produced as a result of gas drilling, the perceived failure of the agencies to require that drilling 

companies provide adequate bonds and perform appropriate reclamation, and the damage and potential harm to sacred sites, cultural treasures, and recreational opportunities. 

As was noted during the hearing, a 2003 BLM report indicates 

that 85% of the oil and 88% of proven gas reserves on Federal 

lands in Colorado, New Mexico, Montana, Utah, and Wyoming 

were (and are) available for leasing and development. Today, approximately 36 million acres of onshore public lands are under 

lease for oil and gas development with ample room for expanded 

production: just 12.5 million acres, or 35%, are in production. 

BLM estimates it received 11,500 applications for permits to drill 

in Fiscal Year 2007, compared to 8,350 in Fiscal Year 2005. A May 

2006 BLM internal report entitled ‘‘Commitments Made in Decision 

Documents Not Yet Achieved’’ documented failures in the Pinedale, 

Wyoming Field Office to uphold mitigation and monitoring commitments made in past oil and gas decisions in the Upper Green River 

Valley. Witnesses raised concern that BLM’s leasing frenzy is undermining other Federal and State expenditures to protect other 

resources: for instance, FWS and the States spent a lot of time and 

effort crafting a plan intended to help sage grouse and prevent a 

formal ESA listing for that bird. 

• May 1, 2007, Subcommittees on Energy and Mineral Resources 

and National Parks, Forests and Public Lands joint oversight hearing on ‘‘The Future of Fossil Fuels: Geological and Terrestrial Sequestration of Carbon Dioxide.’’ Witnesses at this hearing affirmed 

that coal will be a necessary and important part of our energy future, and that it is important to develop technologies which will enable us to use coal in the most environmentally sound manner possible. Both terrestrial and geological carbon sequestration were discussed, with the consensus being that these offer real opportunities 

to reduce carbon dioxide emissions. However, more research needs 

to be done to map the potential areas for geological sequestration 

of carbon dioxide, and to develop this important new technology. 

While the Department of Energy’s Regional Sequestration Partnerships have done an excellent job in gathering data and conducting 

initial tests, there was no standard peer-reviewed methodology 

used by the different partnerships, and there are still some data 

gaps that need to be addressed. 


hmoore on PRODPC68 with HMRPT
40 

• May 1, 2007, Subcommittee on Fisheries, Wildlife and Oceans: 

‘‘Gone with the Wind: Impacts of Wind Turbines on Birds and 

Bats.’’ The purpose of this hearing was to follow up on a September, 2005 GAO report requested by Chairman Rahall and Congressman Alan Mollohan entitled, ‘‘Wind Power: Impacts on Wildlife and Government Responsibilities for Regulating Development 

and Protecting Wildlife.’’ The GAO testified that utility-scale wind 

energy facilities have killed large numbers of birds and bats in various locations across the country, and that environmental regulatory oversight of this industry is minimal and/or inconsistent 

from State to State. The GAO determined that our current understanding of interactions between wind turbines and wildlife is insufficient and that any significant expansion of the wind energy 

sector could substantially increase the potential for negative population-level impacts on wildlife. 

Witnesses at this hearing affirmed that wind energy is having a 

demonstratively negative impact on wildlife, especially bats in the 

Appalachian region. Witnesses also stated that the existing Federal 

wind energy tax credit provides another nexus to justify Federal 

oversight. A witness from the U.S. Fish and Wildlife Service testified that the wind industry’s compliance with the Service’s voluntary, interim wind energy guidelines was ‘‘sketchy at best’’ and 

that the Federal government needed specific regulatory and enforcement authority to minimize impacts to protected wildlife. 

Other witnesses expressed a glaring need for additional research 

regarding engineering and design standards in order to minimize 

impacts before the industry expands. 

FULL COMMITTEE MARKUP ACTION

On Wednesday, June 6, 2007, Thursday, June 7, 2007, and 

Wednesday, June 13, 2007, the Natural Resources Committee met 

in open session to consider the bill. Natural Resources Committee 

Chairman Nick J. Rahall, II (D–WV) offered an amendment in the 

nature of a substitute. 

Mr. Costa offered an amendment to amend section 102, extending the deadline for processing of applications for permits to drill 

from 30 to 90 days, rather than repealing the deadline, which was 

agreed to by voice vote. 

Mr. Costa offered an amendment to adjust the Healthy Lands 

fees to apply to lands that are subject to the relevant leases when 

the regulations go into effect, and to count such fees as offsetting 

receipts, which was agreed to by voice vote. 

Mr. Costa offered an amendment to clarify language in section 

304, dealing with the Strategic Solar Reserve Leasing Program, 

which was agreed to by voice vote. 

Mr. DeFazio offered an amendment relating to old growth forests 

and the biomass utilization pilot program, which was agreed to by 

voice vote. 

Mr. Grijalva offered an amendment to ensure that nothing in 

section 103 limits the ability of the Secretaries to authorize rights 

of way for energy transmission projects that are consistent with the 

governing land use plan, after completion of environmental analysis and in compliance with applicable laws, which was agreed to 

by voice vote. 


hmoore on PRODPC68 with HMRPT
41 

Mr. Abercrombie offered an amendment to change the energy 

corridor right of way study deadline from 18 months to 6 months, 

which was agreed to by voice vote. 

Mr. Gilchrest offered an amendment to introduce a new title to 

delay implementation of Titles I and II pending determinations by 

the Secretary of the Interior, which was withdrawn. 

Mr. Inslee offered an amendment to add a title requiring a deadline for a memorandum of understanding between the Minerals 

Management Service and the Federal Regulatory Commission relating to jurisdiction over the permitting of ocean power projects in 

Federal waters, which was withdrawn. 

Mr. Inslee offered an amendment to add a title on Ocean Energy 

Licensing and Leasing, which was withdrawn. 

Mr. Inslee offered an amendment to add a new title regarding a 

seven year nonpayment period for ocean renewable energy resources, which was withdrawn. 

Mr. Jindal offered an amendment to provide for payments to adjacent States of 37.5% of revenues from alternative energy leases 

on the outer continental shelf, which was withdrawn. 

Mr. Jindal offered an amendment to add inventories of offshore 

infrastructure capable of supporting alternative energy development to section 301, which was passed by voice vote. 

Mr. Jindal offered an amendment to designate 37.5% of the cost 

recovery fees under section 101 for coastal restoration activities, 

which was withdrawn. 

Mrs. McMorris Rodgers offered an amendment to section 241, 

which was agreed to by voice vote. 

Mr. Heller offered an amendment to transfer the remaining balance in the permit processing pilot fund into the payment in lieu 

of taxes program, which was withdrawn. 

Mr. Sali offered an amendment to strike section 231, which was 

withdrawn. 

Mr. Pearce offered an amendment to include additional renewable energy definitions in section 103, which was agreed to by voice 

vote. 

Mr. Udall offered an amendment to add a section on Oil Shale 

Community Impact Assistance, which was agreed to by voice vote. 

Mr. Udall offered an amendment to provide for additional notice 

to conservation easement holders and special-use recreation permit 

holders, which was agreed to by voice vote. 

Mr. Baca offered an amendment to broaden the reverse osmosis 

research program in section 303, which was agreed to by voice vote. 

Mr. Pearce offered an amendment to expand the maximum size 

of the strategic solar reserve program to 25 gigawatts, which was 

accepted by voice vote. 

Mr. Flake offered an amendment to strike language relating to 

coordination of the national strategy for wildlife in section 454 with 

other plans, which was withdrawn. 

Mr. Flake offered an amendment to strike the National Global 

Warming and Wildlife Science Center in section 455, which was 

withdrawn. 

Mr. Bishop offered an amendment to strike the phrase ‘‘ecological 

forest restoration’’ and offer a more detailed definition for the biomass provisions, which was withdrawn. 


hmoore on PRODPC68 with HMRPT
42 

Mr. Pearce offered an amendment to make the effective date of 

the bill dependent upon the Secretary of the Interior certifying that 

nothing in the bill would reduce the production of domestic energy 

or increase imports or prices, which was not agreed to by a rollcall 

vote of 16 yeas and 23 nays as follows: 


hmoore on PRODPC68 with HMRPT
43 


hmoore on PRODPC68 with HMRPTInsert graphic folio 44 HR296.001
44 

Mr. Pearce offered an amendment to include carbon dioxide captured from coal- and coal-to-liquids facilities, and liquid fuels derived from coal, in the proposed study of congestion and constraints 

in energy transmission, which was agreed to by a rollcall vote of 

32 yeas and 10 nays as follows: 


hmoore on PRODPC68 with HMRPT
45 


hmoore on PRODPC68 with HMRPTInsert graphic folio 46 HR296.002
46 

Mr. Pearce offered an amendment to allocate twenty percent of 

any penalties received due to underpayment of royalties for coalto-liquids programs and pilot projects, which was not agreed to by 

a rollcall vote of 20 yeas and 26 nays as follows: 


hmoore on PRODPC68 with HMRPT
47 


hmoore on PRODPC68 with HMRPTInsert graphic folio 48 HR296.003
48 

Mr. Pearce offered an amendment to make funds received from 

non-producing coal leases under the due diligence fee established 

in section 224 available for coal-to-liquids programs and pilot 

projects, which was agreed to by a rollcall vote of 30 yeas and 15 

nays as follows: 


hmoore on PRODPC68 with HMRPT
49 


hmoore on PRODPC68 with HMRPTInsert graphic folio 50 HR296.004
50 

Mr. Pearce offered an amendment to add the Office of Surface 

Mining Reclamation and Enforcement to the Interagency Council 

on Climate Change, which was agreed to by a rollcall vote of 45 

yeas and 0 nays as follows: 


hmoore on PRODPC68 with HMRPT
51 


hmoore on PRODPC68 with HMRPTInsert graphic folio 52 HR296.005
52 

Mr. Pearce offered an amendment to exclude the consideration of 

the impact of coal-fired power plants and coal-to-liquids plants in 

developing climate change resiliency planning grants, which was 

not agreed to by a rollcall vote of 18 yeas and 27 nays as follows: 


hmoore on PRODPC68 with HMRPT
53 


hmoore on PRODPC68 with HMRPTInsert graphic folio 54 HR296.006
54 

Mr. Markey offered an amendment to create a wind turbine advisory committee by substituting a new subtitle D in title II, which 

was agreed to by a rollcall vote of 43 yeas and 1 nay as follows: 


hmoore on PRODPC68 with HMRPT
55 


hmoore on PRODPC68 with HMRPTInsert graphic folio 56 HR296.007
56 

Mr. Bishop offered an amendment to require a fee to file protests 

against applications for permits to drill, which was not agreed to 

by a rollcall vote of 17 yeas and 27 nays as follows: 


hmoore on PRODPC68 with HMRPT
57 


hmoore on PRODPC68 with HMRPTInsert graphic folio 58 HR296.008
58 

Mr. Inslee offered an amendment to require the preparation of 

Programmatic Environmental Impact Statements for marine and 

hydrokinetic renewable energy projects in each of the Environmental Protection Agency regions, which was agreed to by a rollcall 

vote of 45 yeas and 0 nays as follows: 


hmoore on PRODPC68 with HMRPT
59 


hmoore on PRODPC68 with HMRPTInsert graphic folio 60 HR296.009
60 

Mrs. McMorris Rodgers offered an amendment to include hydropower projects in the study of constraints of energy transmission 

due to congestion and lack of access to the Federal grid, which was 

agreed to by a rollcall vote of 44 yeas and 0 nays as follows: 


hmoore on PRODPC68 with HMRPT
61 


hmoore on PRODPC68 with HMRPTInsert graphic folio 62 HR296.010
62 

Mr. Markey offered an amendment to add a new title, Title V, 

to include renewable energy projects as potential recipients of 

money that is also made available for coal-to-liquids projects as a 

result of the bill, which was agreed to by a rollcall vote of 26 yeas 

and 18 nays as follows: 


hmoore on PRODPC68 with HMRPT
63 


hmoore on PRODPC68 with HMRPTInsert graphic folio 64 HR296.011
64 

Mr. Lamborn offered an amendment to generally increase owner’s rights with respect to canal side power production at Bureau 

of Reclamation projects, which was agreed to by a rollcall vote of 

23 yeas and 21 nays as follows: 


hmoore on PRODPC68 with HMRPT
65 


hmoore on PRODPC68 with HMRPTInsert graphic folio 66 HR296.012
66 

Mr. Pearce offered an amendment to allow the Secretary of the 

Interior to reimburse States for any loss of revenue as a result of 

the bill, which was not agreed to by a rollcall vote of 18 yeas and 

21 nays as follows: 


hmoore on PRODPC68 with HMRPT
67 


hmoore on PRODPC68 with HMRPTInsert graphic folio 68 HR296.013
68 

Mr. Pearce offered an amendment to require that the Secretary 

of the Interior issue no fewer oil and gas leases between Fiscal 

Years 2001–2008 as were issued between 1992–2000, which was 

not agreed to by a rollcall vote of 15 yeas and 25 nays as follows: 


hmoore on PRODPC68 with HMRPT
69 


hmoore on PRODPC68 with HMRPTInsert graphic folio 70 HR296.014
70 

Mr. Sali offered an amendment to require the Secretary of Energy to determine that this Act will not increase domestic crude oil, 

natural gas, or petroleum product prices before Titles I and II can 

take effect, which was not agreed to by a rollcall vote of 17 yeas 

and 25 nays as follows: 


hmoore on PRODPC68 with HMRPT
71 


hmoore on PRODPC68 with HMRPTInsert graphic folio 72 HR296.015
72 

Mr. Sali offered an amendment to remove inventoried roadless 

areas from the biomass supply study of Section 307, which was not 

agreed to by a rollcall vote of 17 yeas and 28 nays as follows: 


hmoore on PRODPC68 with HMRPT
73 


hmoore on PRODPC68 with HMRPTInsert graphic folio 74 HR296.016
74 

Mr. Flake offered an amendment to strike the National Global 

Warming and Wildlife Science Center, which was not agreed to by 

a rollcall vote of 20 yeas and 28 nays as follows: 


hmoore on PRODPC68 with HMRPT
75 


hmoore on PRODPC68 with HMRPTInsert graphic folio 76 HR296.017
76 

Mr. Jindal offered an amendment to treat any leases extended as 

a result of renegotiation in an attempt to incorporate price thresholds as being subject to the revenue sharing provisions of the Gulf 

of Mexico Energy Security Act, which was not agreed to by a rollcall vote of 22 yeas and 26 nays as follows: 


hmoore on PRODPC68 with HMRPT
77 


hmoore on PRODPC68 with HMRPTInsert graphic folio 78 HR296.018
78 

Mr. Pearce offered an amendment to strike titles I and II, which 

was not agreed to by a rollcall vote of 21 yeas and 27 nays as follows: 


hmoore on PRODPC68 with HMRPT
79 


hmoore on PRODPC68 with HMRPTInsert graphic folio 80 HR296.019
80 

Mr. Cannon offered an amendment to strike the oil shale and tar 

sands leasing provisions of the bill, which was not agreed to by a 

rollcall vote of 22 yeas and 26 nays as follows: 


hmoore on PRODPC68 with HMRPT
81 


hmoore on PRODPC68 with HMRPTInsert graphic folio 82 HR296.020
82 

Mr. Gohmert offered an amendment to strike the biomass utilization program, which was not agreed to by a rollcall vote of 21 yeas 

and 27 nays as follows: 


hmoore on PRODPC68 with HMRPT
83 


hmoore on PRODPC68 with HMRPTInsert graphic folio 84 HR296.021
84 

The amendment in the nature of a substitute, as amended, was 

adopted by a vote of 28 ayes to 20 nays, as follows: 


hmoore on PRODPC68 with HMRPT
85 


hmoore on PRODPC68 with HMRPTInsert graphic folio 86 HR296.022
86 

The bill, as amended, was then ordered favorably reported to the 

House of Representatives by a rollcall vote of 26 yeas and 22 nays, 

as follows: 


hmoore on PRODPC68 with HMRPT
87 


hmoore on PRODPC68 with HMRPTInsert graphic folio 88 HR296.023
88 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Section 1 provides the short title of the legislation, the ‘‘Energy 

Policy Reform and Revitalization Act of 2007.’’

Title I—Energy Policy Act of 2005 Reforms 

Section 101. Fiscally responsible energy amendments 

As recommended by the Administration, subsection (a) repeals 

§ 365(i) of the Energy Policy Act of 2005 (EPACT), which prohibited 

the recovery of additional fees to cover the processing of drillingrelated permit applications, and directs the Secretary of the Interior to promulgate regulations establishing a fee to recover costs incurred during processing of Applications for Permits to Drill (APD). 

This subsection also establishes a $1,700 per application fee until 

such regulations are promulgated. This proposal is consistent with 

the administration’s budget for FY08. 

Subsection (b) repeals the permit processing improvement fund 

created by EPACT § 365(g), and transfers any money in the permit 

processing improvement fund into the general fund of the U.S. 

Treasury. EPACT § 365(g) amended section 191 of the Minerals 

Leasing Act to require that 50% of all rentals collected be made 

automatically available to BLM, without further appropriation, for 

oil and gas permit processing. 

Section 102. Extension of deadline for consideration of applications 

for permits 

This section amends EPACT § 366 to extend to 90 days the previous 30-day timeframe for the BLM to process onshore oil and gas 

permits. The mandatory 30-day timeframe minimized public involvement and the ability for BLM to review impacts on resources. 

Section 103. Energy rights-of-way corridors on Federal land 

EPACT § 368 required the designation of pipeline and electricity 

transmission corridors on Federal land by August, 2007, minimizing the amount of time available for environmental review and 

State and Tribal consultation. section 103(a) eliminates the arbitrary deadlines in § 368. 

Section 103(b) gives the Secretaries of Agriculture, Commerce, 

Defense, Energy, and Interior six months to complete a study of 

the need for energy corridors on public lands, excluding from potential corridor designation any lands protected by Federal or State 

law for their natural, cultural, or historic resources. The study will 

look at congestion and constraints in the transmission of electricity, 

oil, gas, hydrogen, liquids from coal, and carbon dioxide, as well as 

barriers to access by renewable energy sources. 

Section 103(d) clarifies that this section does not restrict the Secretary from authorizing rights-of-way for energy transmission when 

that is consistent with current land use plans. 

Section 104. Oil shale and tar sands leasing 

EPACT § 369 mandated an accelerated timetable for the creation 

of a commercial leasing program for oil shale and tar sands. This 

section eliminates the deadline for the completion of the ProVerDate Aug 31 2005 03:42 Aug 08, 2007 Jkt 059010 PO 00000 Frm 00088 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296P1.XXX HR296P1

hmoore on PRODPC68 with HMRPT
89 

grammatic Environmental Impact Statement, and provides additional time for the development of proposed leasing regulations, 

rather than final leasing regulations, after the completion of the 

PEIS. The proposed regulations would be open to public comment 

for 180 days. This section also requires the Departments of Interior 

and Energy to work with the Environmental Protection Agency on 

an oil shale and tar sands leasing and development strategy, and 

to develop alternative approaches for providing access to Federal 

lands for pioneering commercial facilities for oil shale and tar 

sands. These changes are consistent with the position of the State 

of Colorado. 

Section 105. Limitation on rebuttable presumption regarding application of categorical exclusion under NEPA for oil and gas exploration and development activities 

This section amends EPACT § 390, which created categorical exclusions (thereby obviating the need for further environmental review) for a series of oil and gas drilling activities. § 390(b)(3) is 

amended in accordance with the resolution of the Western Governors Association by protecting crucial wildlife habitat and significant wildlife migration corridors in developed fields. This section 

also clarifies that the EPACT categorical exclusions are to be treated in accordance with Council for Environmental Quality (CEQ) 

regulations regarding categorical exclusions. 

Section 106. Best management practices 

This section requires BLM to update their best management 

practices guidelines to require public review and comment before 

any lease stipulations are waived, except in emergency situations. 

Lease stipulations are specific conditions on a lease, often used to 

protect wildlife habitat, water quality, air quality, or provide other 

environmental safeguards. This section provides for expedited permit reviews for operators that commit to adhere to best management practices for protection of wildlife habitat without seeking a 

waiver of any stipulations. 

Section 107. Federal consistency appeals 

This section amends § 319 of the Coastal Zone Management Act 

to increase from 160 days to 320 days the amount of time allotted 

to the Secretary of Commerce to compile a record of decision (ROD) 

used in an appeal of State consistency. This time period is more 

representative of the actual record of time used by the Secretary 

to compile past RODs. 

Title II—Federal Energy Public Accountability, Integrity, and 

Public Interest 

SUBTITLE A—ACCOUNTABILITY AND INTEGRITY IN THE FEDERAL

ENERGY PROGRAM

Section 201. Limitations on royalty in-kind 

This section amends EPACT § 342 to prohibit the Federal Government from taking royalties in-kind, as opposed to in-value, except for when the oil taken in-kind is to be used for filling the Strategic Petroleum Reserve. 


hmoore on PRODPC68 with HMRPT
90 

Section 202. Audits 

This section requires the Minerals Management Service (MMS) 

to perform no less than 550 audits each year by 2009. The average 

number of audits conducted by MMS was roughly 540 per year 

from 1998 to 2001; the average from 2002 to 2005 was 393, and 

in 2006 MMS only conducted 144 audits. This section also requires 

that all audits conducted by MMS be in accordance with the Government Auditing Standards published by the Government Accountability Office. In addition, all staff performing audits or compliance reviews much meet professional qualifications consistent 

with those standards. 

Section 203. Fines and penalties 

This section amends the Federal Oil and Gas Royalty Management Act to increase fines for underpayment or late payment of 

royalties. After a 30-day grace period, violators would be liable for 

three times the royalty plus interest, plus a fee of up to $25,000 

per day until the violation is corrected. Penalties for administrative 

violations are doubled to up to $10,000 per violation per day. A new 

provision is added to subject repeat violators to further tripling of 

the penalty and the potential for a cancellation of the lease and a 

prohibition from acquiring future leases. The section also extends 

the statute of limitations for oil and gas leases held by violators, 

and provides that money awarded to the federal government under 

civil lawsuits for the underpayment of royalties be shared with 

states or the Land and Water Conservation Fund (for offshore lease 

violations). 

SUBTITLE B—AMENDMENTS TO FEDERAL OIL AND GAS ROYALTY

MANAGEMENT ACT

Section 211. Amendments to definitions 

This section clarifies the definition of ‘‘designee’’ under 

FOGRMA, and allows the Secretary to correspond with the designee only, as opposed to having to contact each individual lessee 

(that has designated that designee) in writing. 

Section 212. Interest 

This section eliminates the requirement that the Federal government pay interest on royalty overpayments made by operators. 

This eliminates the incentives that operators had to make errors 

in their favor on their royalty calculation and receive a guaranteed 

return. 

Section 213. Obligation period 

This section establishes that in the case of an adjustment made 

by a lessee that results in an underpayment, the lessee will be obligated to repay that amount (plus interest) from the date the lessee 

makes the adjustment, thus extending the statute of limitations on 

that royalty payment. This will enable the MMS to audit such 

lease during the ensuing six-year cycle. 

Section 214. Tolling agreements and subpoenas 

This section allows the Secretary to only correspond with the 

lease designee in the case of subpoenas or agreements to pause the 


hmoore on PRODPC68 with HMRPT
91 

statute of limitations, as opposed to having to contact each lessee 

individually. 

Section 215. Liability for royalty payments 

This section establishes that designees are liable for royalty payments under a lease, and that lease owners and operators are liable for their pro-rated share of payment obligations under a lease. 

SUBTITLE C—PUBLIC INTEREST IN THE FEDERAL ENERGY PROGRAM

Section 221. Surface owner protection 

This section requires written agreements between an operator 

and surface owner prior to exploration and drilling operations, including a reclamation plan that is acceptable to both surface estate 

owner and operator, and compensation for damages to a surface 

owner’s income and property. It also sets procedural guidelines and 

a timetable for arbitration. The section further authorizes the Secretary, under certain conditions and criteria, to authorize exploration and drilling operations when arbitration between parties 

fails, and to compensate surface estate owners from bonds and financial assurances when property is damaged, or to release the 

bonds when operations end without damage. A schedule is established for surface owner notification of lease sales, issuances, and 

other leasing decisions. 

Section 222. Onshore oil and gas reclamation and bonding 

This section amends section 17 of the Mineral Leasing Act to require oil, gas, and coalbed methane operators to undertake complete and timely restoration necessary to return lands to a condition that can support comparable or higher uses than their condition prior to drilling. It also requires operators to post a bond, or 

other financial guaranty, that covers reclamation of all operations 

within a permit area, to post additional financial assurances as operations expand, and authorizes the Secretary to determine the 

amount of the bond based on the probable difficulty of reclamation. 

Section 223. Protection of water resources 

This section amends section 17 of the Mineral Leasing Act to require oil, gas, and coalbed methane operators to replace or remediate any lost or contaminated surface or groundwater supply to 

water users. This section also requires applicants for permits to 

drill to provide a water management plan that protects the quantity and quality of water supplies onsite and downstream, or to provide alternative sources of water. That plan must include a means 

of preventing produced water from harming present water users 

and establish beneficial uses of the water where possible. 

Section 224. Due diligence fee 

This section establishes a $1 per acre annual fee on oil, gas, and 

coal leases which are not in production, and reinvests that revenue 

to help fund the Administration’s ‘‘Healthy Lands Initiative’’ to restore federal lands and resources damaged by oil and gas development. This section also provides that funds from non-producing 

coal leases are to be made available for coal-to-liquids programs or 


hmoore on PRODPC68 with HMRPT
92 

pilot projects, although that eligibility is broadened by the terms of 

Section 502. 

SUBTITLE D—WIND ENERGY

In an effort to reduce impacts to wildlife from wind energy facilities, in 2003 the U.S. Fish and Wildlife Service proposed voluntary 

interim guidelines for wind energy developers. The public comment 

period ended in 2005, but the Fish and Wildlife Service never published final guidelines. 

Section 231. Wind Turbine Guidelines Advisory Committee 

This section authorizes the Secretary of the Interior to convene 

or utilize an existing Wind Turbine Guidelines Advisory Committee, in accordance with the Federal Advisory Committee Act, to 

study and make recommendations on guidance for wind energy developers to follow to avoid or minimize impacts to wildlife and their 

habitats related to wind energy facilities. The advisory committee 

would evaluate many issues, including: the Fish and Wildlife Service’s 2003 interim guidance; methods to acquire information to assess and balance potential impacts to wildlife when siting and designing wind energy facilities; scientific tools and procedures to 

conduct pre-development assessments, post-construction monitoring 

for impacts to wildlife, and options for compensatory mitigation for 

unavoidable impacts; a process to coordinate State, tribal, local and 

national review of wind energy proposals consistent with existing 

Federal and State law and international treaties; determinations of 

project size thresholds and timetables to phase in guidance; and 

consultation with State wildlife agencies to assess current efforts to 

avoid or minimize wildlife impacts from wind turbines. 

No more than 20 members would serve on the advisory committee, and they would be appointed to achieve balanced representation from all stakeholders including the wind industry, wildlife 

conservation organizations and government. Within 18 months 

after date of enactment, the advisory committee would report to 

both the Secretary and the Congress on recommendations for effective measures that the wind industry, other stakeholders, government and tribal agencies could take to protect wildlife resources 

and enhance potential benefits to wildlife. Based upon these recommendations, the Secretary is directed, after public notice and 

comment, to issue final guidance to avoid or minimize impacts to 

wildlife from land-based wind energy facilities. 

Section 232. Authorization of appropriations for research to study 

wind energy impacts on wildlife 

This section authorizes $2 million per year for Fiscal Years 

2008–2015 for research into minimizing wildlife impacts and developing effective mitigation methods for that purpose. It is expected 

that the research authorized will build on existing joint research 

conducted by the Fish and Wildlife Service and the U.S. Geological 

Survey to assess bird and bat migratory habitat and migration behavior. 

Section 233. Enforcement 

This section reaffirms the Secretary’s responsibility to enforce 

the Endangered Species Act, Migratory Bird Treaty Act, Bald and 


hmoore on PRODPC68 with HMRPT
93 

Golden Eagle Protection Acts, Marine Mammal Protection Act and 

National Environmental Protection Act to protect wildlife, and address adverse impacts on wildlife attributed to wind projects wherever those facilities are located. It does not change any of those existing laws. 

Section 234. Savings clause 

This section explicitly states that nothing in this section preempts any State laws or regulations relating to wind projects or enforcement of applicable State laws. 

SUBTITLE E—ENHANCING ENERGY TRANSMISSION

Section 241. Power Marketing Administrations report 

This section directs Bonneville and Western Area Power Marketing Administration, in consultation with regional transmission 

entities, to study the adequacy of their transmission systems to 

carry an increased load from ocean wave, tidal and current energy 

projects in State and Federal waters adjacent to California, Washington, and Oregon. An amendment adopted during Committee 

consideration clarified that the costs of the study will be covered 

by the agency and not ratepayers. In addition, the amendment affirmed current law regarding the order for processing requests for 

transmission. 

Title III—Alternative Energy and Efficiency 

Section 301. State ocean and coastal alternative energy planning 

This section amends the Coastal Zone Management Act to establish a new grant program to encourage coastal States to voluntarily 

complete surveys of the Outer Continental Shelf and adjacent 

coastal waters to identify areas suitable for development of renewable energy projects. The overall goal is to encourage States, in 

consultation with the MMS, to plan where they would like renewable energy projects to be located, and eliminate future State consistency certification conflicts between the State and Federal governments. The Secretary would be required to publish guidelines 

within 180 days after date of enactment. Grants awarded during 

FY 2008–FY 2010 would not require a non-Federal contribution, 

but matching funds would be required in subsequent years. A savings clause is included to clearly state that this provision does not 

supersede or preempt existing Federal authority to regulate energy 

development in the OCS nor grant new authorities to the coastal 

States. 

Section 302. Canal-side power production at Bureau of Reclamation 

projects 

This section requires the Secretary of the Interior to evaluate the 

potential for developing Bureau of Reclamation canal-side rights-ofway lands for solar or wind energy production through leasing of 

lands or other means. The Bureau of Reclamation owns and operates hundreds of water projects in 17 Western States. Thousands 

of miles of open canals deliver project water to farms and cities. 

Project canals typically include a generous amount of adjacent federally-owned right-of-way lands. In many cases these rights-of-way 

are used for project maintenance roads, but there may be opportuVerDate Aug 31 2005 03:42 Aug 08, 2007 Jkt 059010 PO 00000 Frm 00093 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296P1.XXX HR296P1

hmoore on PRODPC68 with HMRPT
94 

nities to use these canal-side rights-of-way lands as locations for alternative electric energy production facilities, especially wind or 

solar. Energy produced canal-side could be used as a local power 

source for pumps, gates, and other facilities on the irrigation 

project. Any excess energy could be supplied to the grid for credit. 

Subsection (b) requires the Secretary of the Interior to consult 

with landowners and others who would be affected by development 

of canal-side rights-of-way for renewable energy production while 

carrying out the evaluation under this section. 

Subsection (c) requires written permission from land owners before non-Federal rights-of-way can be inventoried, forbids using 

this section as a basis for increasing power costs, and forbids using 

this section as a means to impede accessibility or create additional 

costs for entities managing the right-of-way. 

Section 303. Increasing energy efficiencies for water desalination 

This section directs the Secretary of the Interior to implement an 

aggressive research program aimed at improving the energy efficiency and utilizing renewable energy generated reverse osmosis 

technology. Modern water desalination and water recycling facilities often use reverse osmosis technology to remove salts and other 

impurities from water. A current drawback of this process is its 

high energy cost. 

Section 304. Establishing a pilot program for the development of 

strategic solar reserves on Federal lands 

This section requires the Secretary to identify and designate a 

set of areas on Federal lands managed by BLM as ‘‘solar reserves,’’ with each area being large enough to permit the generation of one 

GW of concentrating solar power. This pilot program will allow for 

the generation of 4–25 GW of solar power, and require the environmental and permitting process to be completed as quickly as possible. Companies that are granted leases to establish concentrating 

solar power systems on the reserves will pay a rental fee of $300 

during the 10-year duration of this pilot program, and fees established by the Secretary of the Interior for the remaining duration 

of the leases. 

Section 305. OTEC regulations 

This section directs the National Oceanic and Atmospheric Administration to use its authority under the Ocean Thermal Energy 

Conversion (OTEC) Research, Development and Demonstration Act 

of 1980 to reissue regulations (prior regulations were withdrawn) 

providing for the licensing, construction and operation of OTEC facilities in U.S. waters. Under current law, no OTEC facilities may 

operate in U.S. waters without a license from NOAA, and there is 

renewed interest in this technology in the insular areas that may 

warrant licensing within the next few years. 

Section 306. Biomass Utilization Pilot Program 

This section establishes a Biomass Utilization Pilot Program 

using technical assistance and grants to provide incentives for biomass utilization. The pilot program applies to National Forest System lands and Bureau of Land Management lands, wilderness 

areas, wilderness study areas, inventoried roadless areas, and comVerDate Aug 31 2005 03:42 Aug 08, 2007 Jkt 059010 PO 00000 Frm 00094 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296P1.XXX HR296P1

hmoore on PRODPC68 with HMRPT
95 

ponents of the National Landscape Conservation System. The pilot 

program would include a variety of techniques that represent innovations in facilities operations. A study of the long-term and ecologically sustainable supply of biomass is required to be completed 

prior to the development of a pilot project to ensure a reliable investment. The highest and best use of woody biomass is also emphasized. Selection of the appropriate scale of a biomass facility is 

to include a collaborative process that evaluates existing economic, 

ecological and social conditions, and encourages rural economic development. 

Section 307. Programmatic environmental impact statement 

This section directs the Secretaries of Commerce and Energy to 

prepare programmatic environmental impact statements (PEIS) 

within 18 months for the deployment of marine and hydrokinetic 

renewable energies (such as wave, tidal, and current energy), with 

one PEIS being completed for each EPA region in the United 

States. 

Title IV—Carbon Capture and Climate Change Mitigation 

SUBTITLE A—GEOLOGICAL SEQUESTRATION ASSESSMENT

Section 401. Short title 

Section 401 titles the subtitle the ‘‘National Carbon Dioxide Storage Capacity Assessment Act of 2007.’’

Section 402. National assessment 

This section directs the U.S. Geological Survey (USGS) to develop 

a peer-reviewed methodology for conducting a nationwide assessment of underground carbon dioxide storage capacity, and then to 

conduct the assessment focusing on deep saline formations, 

unmineable coal seams or oil and gas reservoirs capable of accommodating industrial carbon dioxide. The USGS will coordinate with 

the Department of Energy, EPA, and State geological surveys for 

various portions of the methodology and assessment, and will publish the methodology for external review and comment. USGS is 

given one year to complete the methodology and two years to complete the assessment. $30 million is authorized to carry out this 

section. 

SUBTITLE B—TERRESTRIAL SEQUESTRATION ASSESSMENT

Section 421. Requirement to conduct an assessment 

This section directs the USGS to conduct an assessment of the 

potential for the terrestrial sequestration of carbon dioxide in different ecosystems, and to develop management measures or restoration activities that can increase the amount of carbon sequestered by each ecosystem. The USGS is directed to emphasize the 

use of native plant species in developing such measures or activities. 

Section 422. Methodology 

This section requires the USGS to develop a methodology for conducting the assessment under § 421 within 270 days of enactment 

of this Act. 


hmoore on PRODPC68 with HMRPT
96 

Section 423. Completion of assessment and report 

This section requires the USGS to complete the assessment within two years after the publication of the final methodology under 

§ 422. 

Section 424. Authorization of appropriations 

This section authorizes $15 million for the USGS to carry out 

this subtitle. 

SUBTITLE C—SEQUESTRATION ACTIVITIES

Section 431. Carbon dioxide storage inventory 

This section amends EPACT § 354, ‘‘Enhanced Oil and Natural 

Gas Production Through Carbon Dioxide Injection,’’ to require BLM 

to keep records of the amount of carbon dioxide stored during enhanced oil recovery (EOR) or enhanced gas recovery (EGR) activities under Federal leases. 

Section 432. Framework for geological carbon sequestration on Federal lands 

This section directs the Interior Department to report on a recommended regulatory framework for conducting geological carbon 

sequestration activities on Federal lands. 

SUBTITLE D—NATURAL RESOURCES AND WILDLIFE PROGRAMS

Chapter 1—National Resources Management and Climate Change 

Section 441. Interagency Council on Climate Change 

This provision creates a Climate Change Adaptability Intra-Governmental Panel to address the impacts of climate change on Federal lands, the ocean environment, and the Federal water infrastructure. The provision is needed due to the ad hoc basis that Federal resource management and development agencies are currently 

using to address climate change with little communication and coordination among agencies. The panel would include the agency 

heads from the Bureau of Land Management, National Park Service, Fish and Wildlife Service, United States Forest Service, Minerals Management Service, NOAA, Bureau of Reclamation, Council 

on Environmental Quality, and Office of Surface Mining Reclamation and Enforcement. The Panel will report to Congress on the 

common protocol they will adopt to address the impacts on climate 

change including the integration of climate science into management decisions. 

Chapter 2—National Policy and Strategy for Wildlife 

Section 451. Short title 

Section 441 titles the chapter the ‘‘Global Warming Wildlife Survival Act.’’

Section 452. National policy on wildlife and global warming 

This section establishes that it is the policy of the Federal government, in cooperation with State, tribal, and affected local governments, other concerned public and private organizations, landowners, and citizens to use all practicable means and measures—


hmoore on PRODPC68 with HMRPT
97 

(1) to assist wildlife populations in adapting to and surviving the 

effects of global warming; and (2) to ensure the persistence and resilience of the wildlife of the United States as an essential part of 

our Nation’s culture, landscape, and natural resources. 

Section 453. Definitions 

This section defines the terms used in the chapter, including ‘‘Secretary,’’ ‘‘wildlife’’ and ‘‘habitat linkages.’’

Section 454. National strategy 

This section requires the Secretary of the Interior to promulgate 

a national strategy to mitigate the impacts of global warming on 

wildlife populations in the United States. 

Section 455. Advisory board 

This section establishes a Scientific Advisory Board to provide 

scientific and technical advice and recommendations to the Secretary on the impacts of global warming on wildlife and its habitat, 

areas of habitat of particular importance for the conservation of 

wildlife populations affected by global warming, and strategies and 

mechanisms to mitigate the impacts of global warming on wildlife 

in the management of Federal lands and in other Federal programs 

for wildlife conservation. The provision also establishes a Global 

Warming and Wildlife Science Center within the U.S. Geological 

Survey to conduct and coordinate research on the impacts of global 

warming on wildlife and habitat, and mechanisms for adaptation 

or mitigation of such impacts. 

Section 456. Authorization of appropriations 

This section authorizes new funding for Federal and State agencies to carry out the purposes of this chapter. 

Chapter 3—State and Tribal Wildlife Grants Program 

Section 461. State and Tribal Wildlife Grants Program 

This section establishes a permanent authorization for the State 

and Tribal Wildlife Grants Program consistent with the language 

included annually in the law providing appropriations to the Department of the Interior. 

SUBTITLE E—OCEAN PROGRAMS

Section 471. Ocean Policy, Global Warming, and Acidification Program 

This section directs the Secretary of Commerce to develop and 

implement a national strategy to support coastal State and Federal 

agency efforts to (1) predict, plan for and mitigate the impacts on 

ocean and coastal ecosystems from global warming, relative sea 

level rise and ocean acidification; and (2) ensure the recovery, resiliency and health of ocean and coastal ecosystems. 

Section 472. Planning for climate change in the coastal zone 

This section recognizes the lead role of coastal States in comprehensive coastal planning by amending the Coastal Zone Management Act to add a new coastal climate change resiliency grant 

program. The program would provide grants to States to (1) volunVerDate Aug 31 2005 03:42 Aug 08, 2007 Jkt 059010 PO 00000 Frm 00097 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296P1.XXX HR296P1

hmoore on PRODPC68 with HMRPT
98 

tarily develop plans to complement existing coastal programs to address potential climate change impacts; and (2) provide project 

grants to implement strategies developed within such plans. The 

Secretary would be required to publish guidelines within 180 days 

after the date of enactment after consultation with the States. To 

be approved by the Secretary, State climate change resiliency plans 

would need to identify coastal resources at risk, develop strategies 

to address threats, and specify monitoring requirements to regularly assess conditions. To be eligible to receive project grants to 

implement activities identified under resiliency plans, States would 

be required to have their resiliency plans approved by the Secretary. 

Section 473. Enhancing climate change predictions 

This section implements a key recommendation of the Joint 

Ocean Commission Initiative by establishing a National Integrated 

Coastal Ocean Observation System administered by the National 

Oceanic and Atmospheric Administration as the lead Federal agency and coordinated within a regional framework that includes both 

Federal and non-Federal partners. The observation system would 

gather real-time and other observation data on the ocean environment (i.e., temperature, salinity, currents, etc.) to refine and enhance predictive capabilities for climate change and to provide 

other immediate societal benefits, such as better fisheries management and safe navigation. 

Title V—Additional Provisions 

Section 501. Sharing of penalties 

This section provides that in the event that the United States receives money in a civil action arising from the underpayment of 

royalties (including qui tam cases brought by private parties), and 

there is a provision of law that allows for those funds to be spent 

on coal-to-liquids programs or pilot projects, then those funds 

should also be available to be spent on other types of renewable energy programs on a competitive basis, subject to appropriations. 

Section 502. Sharing of fees 

Section 224 of this Act required that funds obtained from the due 

diligence fee on non-producing coal leases be spent on coal-to-liquids programs or pilot projects. This section expands the eligible 

use of those funds to include different types of renewable energy 

programs, subject to appropriations. 

Section 503. Oil shale community impact assistance 

This section establishes an Oil Shale Community Impact Assistance Fund, which would receive all bonus bids that come from a 

commercial oil shale leasing program, 25% of the rental payments 

from those leases, and 25% of the first 10 years of royalties from 

those leases. Money from this Fund would be distributed to counties that host commercial oil shale leases, subject to appropriations, 

and can be used by those counties for construction, operation, and 

maintenance of public facilities and for the provision of public services. 


hmoore on PRODPC68 with HMRPT
99 

Section 504. Additional notice requirements 

Section 504(a) requires the Secretary of the Interior to notify 

holders of special use recreation permits (such as outdoor recreation companies, hosts of annual events, etc.) when lands that are 

covered by their permits are being offered for leasing. 

Section 504(b) requires holders of conservation easements on 

split-estate lands to be notified about lease sales, lease issuances, 

lease modifications, and approvals of applications for permits to 

drill, provided the conservation easement holder has notified the 

Secretary of the Interior about the existence of the easement. This 

subsection also requires the Secretary to develop a means for conservation easement holders to notify the Secretary about such easements. 

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of rule XIII 

of the Rules of the House of Representatives, the Committee on 

Natural Resources’ oversight findings and recommendations are reflected in the body of this report. 

FEDERAL ADVISORY COMMITTEE STATEMENT

The functions of the proposed advisory committee authorized in 

the bill are not currently being nor could they be performed by one 

or more agencies, an advisory committee already in existence or by 

enlarging the mandate of an existing advisory committee. 

CONSTITUTIONAL AUTHORITY STATEMENT

Article I, section 8 of the Constitution of the United States 

grants Congress the authority to enact this bill. 

COMPLIANCE WITH HOUSE RULE XIII 

1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the Rules of 

the House of Representatives requires an estimate and a comparison by the Committee of the costs which would be incurred in carrying out this bill. However, clause 3(d)(3)(B) of that rule provides 

that this requirement does not apply when the Committee has included in its report a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974. 

2. Congressional Budget Act. As required by clause 3(c)(2) of rule 

XIII of the Rules of the House of Representatives and section 

308(a) of the Congressional Budget Act of 1974, any new budget 

authority included in this bill will include a comparison of the total 

estimated funding level for the relevant programs to the appropriate levels under current law, as described in the cost estimate 

obtained from the Director of the Congressional Budget Office, 

which follows below. 

3. General Performance Goals and Objectives. As required by 

clause 3(c)(4) of rule XIII, the general performance goal or objective 

of this bill is to promote energy policy reforms and public accountability, alternative energy and efficiency, and carbon capture and 

climate change mitigation. 


hmoore on PRODPC68 with HMRPT
100 

4. Congressional Budget Office Cost Estimate. Under clause 

3(c)(3) of rule XIII of the Rules of the House of Representatives and 

section 403 of the Congressional Budget Act of 1974, the Committee has received the following cost estimate for this bill from the 

Director of the Congressional Budget Office: 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, July 13, 2007. 

Hon. NICK J. RAHALL II, 

Chairman, Committee on Natural Resources, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has completed the enclosed cost estimate for H.R. 2337, the Energy Policy 

Reform and Revitalization Act of 2007. 

The CBO staff contacts for this estimate are Deborah Reis (for 

federal costs), Leo Lex (for the impact on state and local governments), and Craig Cammarata (for the impact on the private sector). 

Sincerely, 

PETER R. ORSZAG, Director. 

Enclosure. 

H.R. 2337—Energy Policy Reform and Revitalization Act of 2007 

Summary: H.R. 2337 would establish a framework of national 

strategies to protect natural resources affected by the production, 

distribution, and use of energy. The bill also would revise programs 

managed by the Department of the Interior (DOI) to promote and 

regulate the production and transmission of alternative energy 

(such as solar or wind power) on Federal lands. 

Assuming appropriation of the necessary or authorized amounts, 

CBO estimates that implementing this legislation would result in 

new discretionary spending of $2.6 billion over the 2008–2012 period. In addition, H.R. 2337 would affect direct spending by establishing new fees and repealing existing mandatory spending programs. We estimate that the net effect of such changes would be 

a $52 million reduction in direct spending in 2008 and a $431 million reduction over the next 10 years. Enacting H.R. 2337 would 

have no significant impact on revenues. 

H.R. 2337 contains no intergovernmental mandates as defined in 

the Unfunded Mandates Reform Act (UMRA); state and tribal governments would benefit from grants authorized by the bill. 

H.R. 2337 would impose a private-sector mandate, as defined in 

UMRA, on certain oil, gas, and coal operators that hold onshore 

federal leases by requiring those operators to pay a fee for land not 

in production. Based on information from the Bureau of Land Management (BLM), CBO estimates that the direct cost of the mandate 

would be about $30 million in 2008. As those existing leases expire, 

the cost of the mandate would decrease in subsequent years. Consequently, the cost of the mandate would fall below the annual 

threshold established by UMRA for private-sector mandates ($131 

million in 2007, adjusted annually for inflation). 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2337 is summarized in Table 1. The costs of 


hmoore on PRODPC68 with HMRPT
101 

this legislation fall within budget functions 270 (energy), 300 (natural resources and environment), and 950 (undistributed offsetting 

receipts). 

TABLE 1.—BUDGETARY EFFECTS OF H.R. 2337 

By fiscal year, in millions of dollars— 

2008 2009 2010 2011 2012 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorizations .............................................................................. 352 538 683 828 944 

Estimated Outlays ......................................................................................... 156 330 529 709 841 

CHANGES IN DIRECT SPENDING 

Estimated Budget Authority .......................................................................... ¥48 ¥49 ¥50 ¥51 ¥52 

Estimated Outlays ......................................................................................... ¥52 ¥54 ¥50 ¥51 ¥52 

1 Changes in direct spending through 2017 are detailed in Table 3. 

Basis of estimate: CBO estimates that implementing H.R. 2337 

would result in discretionary spending of $2.6 billion over the 

2008–2012 period, assuming the appropriation of the necessary 

funds. In addition, CBO estimates that the bill would decrease net 

direct spending by $431 million over the 2008–2017 period. The bill 

also could increase revenues by establishing civil penalties for violations of laws regarding oil and gas leasing royalties, but we estimate that any increase would be less than $500,000 annually. 

For this estimate, CBO assumes that the legislation will be enacted near the beginning of fiscal year 2008 and that the entire 

amounts authorized by the bill or estimated to be necessary will be 

appropriated each year. Estimated outlays are based on historical 

spending patterns for existing or similar programs. The estimate is 

based on information provided by the affected Federal agencies. 

Spending subject to appropriation 

H.R. 2337 would: 

• Direct agencies within the Departments of Commerce, Agriculture, and the Interior to establish national strategies to 

protect natural resources from the effects of global warming 

and other environmental impacts of energy production, transmission, and use; 

• Authorize or reauthorize grants to states and tribes for 

specified natural resource programs, including coastal zone 

management projects; 

• Require new programs and regulations concerning the development and transmission of energy, including wind and 

solar power, on public lands and waters; and 

• Authorize appropriations for three studies concerning the 

production of wind energy and the storage of carbon. 

Estimates of discretionary spending are detailed in Table 2 and 

discussed below. 

Natural Resources Strategies and Systems. H.R. 2337 would 

authorize three major programs to protect natural resources: a National Policy and Strategy to Protect Wildlife from the Effects of 

Global Warming; an Ocean Policy, Global Warming, and Acidification Program; and a National Integrated Coastal Ocean Observation System. 

National Policy on Wildlife and Global Warming. Section 454 

would direct DOI to create and implement a national strategy for 


hmoore on PRODPC68 with HMRPT
102 

assisting wildlife populations and their habitats to adapt to global 

warming. The costs of carrying out section 454 are uncertain because the affected federal agencies have not completed the necessary plans or undertaken sufficient research to allow detailed estimates. CBO expects that a basic program to develop a national 

strategy, design in-house research and conservation programs, and 

manage grants to states and others would cost $15 million in 2008 

and $285 million over the 2008–2012 period. Most of those amounts 

would be used by the U.S. Fish and Wildlife Service (USFWS) and 

other DOI agencies, the National Oceanic and Atmospheric Administration (NOAA), and the Forest Service. This estimate is based on 

the cost of implementing other nationwide, comprehensive programs such as the North American Waterfowl Conservation Plan. 

It does not include potential expenditures to acquire land for wildlife habitat, as would be authorized by the bill. Depending on the 

location and size of such acquisitions and the appropriation of 

funding for that purpose, the costs could be significant. However, 

it is unlikely that such costs would be incurred over the next five 

years. 

TABLE 2.—ESTIMATED DISCRETIONARY SPENDING UNDER H.R. 2337 

By fiscal year, in millions of dollars—

2008 2009 2010 2011 2012 

Natural Resource Strategies and Systems 

National Policy on Wildlife and Global Warming: 

Estimated Authorization Level ............................................................. 40 60 90 80 80 

Estimated Outlays ................................................................................ 15 30 60 90 90 

Ocean Policy, Global Warming, and Acidification Program: 

Estimated Authorization Level: ............................................................ 10 15 20 25 25 

Estimated Outlays ................................................................................ 5 10 15 20 25 

National Integrated Coastal and Ocean Observation System: 

Estimated Authorization Level ............................................................. 100 250 350 500 600 

Estimated Outlays ................................................................................ 50 155 260 380 485 

Subtotal: 

Estimated Authorization Level .................................................... 150 325 460 605 705 

Estimated Outlays ....................................................................... 70 195 335 490 600 

Authorizations for Grant Programs 

USFWS State and Tribal Wildlife Grants: 

Estimated Authorization Level ............................................................. 70 70 70 70 70 

Estimated Outlays ................................................................................ 5 20 50 65 70 

Coastal Zone Management Grants: 

Estimated Authorization Level ............................................................. 61 61 61 61 61 

Estimated Outlays ................................................................................ 20 42 61 61 61 

Subtotal: 

Estimated Authorization Level .................................................... 131 131 131 131 131 

Estimated Outlays ....................................................................... 25 62 111 126 131 

Energy Development and Other Federal Activities 

Increased Audits of Oil and Gas Leases: 

Estimated Authorization Level ............................................................. 10 20 30 30 30 

Estimated Outlays ................................................................................ 8 12 20 30 30 

Bureau of Land Management Regulatory Programs: 

Estimated Authorization Level ............................................................. 32 33 34 35 36 

Estimated Outlays ................................................................................ 26 33 34 35 36 

Water Desalination Research: 

Estimated Authorization Level ............................................................. 10 10 10 10 10 

Estimated Outlays ................................................................................ 10 10 10 10 10 

Oil Shale Impact Assistance: 

Estimated Authorization Level ............................................................. 0 0 0 0 25 

Estimated Outlays ................................................................................ 0 0 0 0 25 

Other Federal Activities: 

Estimated Authorization Level ............................................................. 5 5 5 5 5 


hmoore on PRODPC68 with HMRPT
103 

TABLE 2.—ESTIMATED DISCRETIONARY SPENDING UNDER H.R. 2337—Continued 

By fiscal year, in millions of dollars—

2008 2009 2010 2011 2012 

Estimated Outlays ................................................................................ 5 5 5 5 5 

Subtotal: 

Estimated Authorization Level .................................................... 57 68 79 80 106 

Estimated Outlays ....................................................................... 49 60 69 80 106 

Studies: 

Authorization Level ............................................................................... 14 14 13 12 2 

Estimated Outlays ................................................................................ 11 13 14 13 4 

Total Spending Subject to Appropriation 

Estimated Authorization Level ............................................................. 352 538 683 828 944 

Estimated Outlays ................................................................................ 155 330 529 709 841 

Ocean Policy, Global Warming, and Acidification Program. Section 471 would direct the National Oceanic and Atmospheric Administration (NOAA) to develop and implement a national strategy 

to respond to the effects of global warming on oceans and coastal 

areas. The costs of carrying out this program are also uncertain, 

but based on the costs of implementing programs of similar scope 

such as the coastal zone management program and the endangered 

species program, CBO estimates that carrying out section 471 

would cost $5 million in 2008 and $75 million over the 2008–2012 

period. We expect that most of those amounts would be spent for 

planning and research. 

National Integrated Coastal and Ocean Observation System. Section 473 would direct the National Ocean Research Council to develop and operate an integrated coastal and ocean observation system. The system would conduct ocean monitoring, data collection, 

analysis, public education, and research. 

Based on projections and plans developed by the U.S. Commission on Ocean Policy, CBO estimates that developing the infrastructure for a fully integrated system would require the expenditure of about $200 million over the next two years. This amount 

would be used to improve existing systems operated by federal 

agencies such as NOAA, establish regional observing systems, and 

develop new sensor technologies, forecasting models, and other system products. CBO expects that initial system operating costs 

would commence in 2010; once fully operational (by 2012), the system would require annual funding of about $600 million. In total, 

we estimate that outlays for the system would be $50 million in 

2008 and $1.3 billion over the 2008–2012 period. 

Grant Authorizations or Reauthorizations. The bill would codify 

an existing grant program for wildlife conservation and would authorize new grants under the coastal zone management (CZM) program, as discussed below. 

State and Tribal Wildlife Grants. Section 461 would establish a 

permanent authorization of whatever amounts are necessary for 

the USFWS’s wildlife conservation grant program. Based on the enacted funding level for such grants in recent years, CBO estimates 

that the USFWS would spend $5 million in 2008 and $210 million 

over the 2008–2012 period to provide grants to eligible states and 

tribes. 

Coastal Zone Management (CZM) Grants. The bill would amend 

the Coastal Zone Management Act to authorize two new purposes 

for CZM grants—surveys of state (or adjacent federal) waters to deVerDate Aug 31 2005 03:42 Aug 08, 2007 Jkt 059010 PO 00000 Frm 00103 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296P1.XXX HR296P1

hmoore on PRODPC68 with HMRPT
104 

termine their suitability for developing alternative energy resources and planning and developing strategies for addressing climate change. The bill would authorize the appropriation of whatever amounts are necessary for such grants. CBO estimates that 

providing grants to all eligible states for the newly authorized purposes would cost $20 million in 2008 and $245 million over the 

2008–2012 period. For this estimate, we assume that each of the 

35 coastal states with approved CZM plans would receive $750,000 

for alternative energy surveys and $1 million for climate-change 

planning. 

Energy Development and Other Federal Activities. Several 

provisions of the bill would affect Federal programs carried out by 

DOI and NOAA. Major provisions are described below. 

Increased Audits of Oil and Gas Leases. Section 202 would require the Minerals Management Service (MMS) to perform at least 

550 audits of oil and gas leases each fiscal year. Based on information provided by DOI, CBO estimates that hiring, training, and 

equipping the nearly 200 additional auditors and supervisors needed to perform the additional audits would cost $8 million in 2008 

and $100 million over the 2008–2012 period, assuming appropriation of the necessary amounts. 

BLM Activities. CBO estimates that implementing H.R. 2337 

would increase discretionary outlays by $26 million in 2008 and by 

$162 million over the 2008–2012 period. We estimate that most of 

those amounts—$23 million in 2008 and $147 million over the 

2008–2012 period—would be spent from appropriated funds needed 

to replace existing direct spending. Section 101 would repeal the 

authority to spend, without further appropriation, certain receipts 

from rental payments on onshore mineral leases. Those funds are 

used to administer applications for drilling-related permits. 

Under the bill, we estimate that BLM would spend an additional 

$3 million a year to carry out various energy and regulatory programs, including developing guidelines on best practices for oil and 

gas development, creating an inventory of carbon dioxide on leased 

Federal lands, promulgating regulations to protect certain landowners from the effects of drilling underneath their property, and 

establishing a pilot program for developing solar energy resources 

on Federal lands. 

Water Desalination Research. Section 303 would require DOI to 

implement a program to research methods to use reverse osmosis 

technology for water desalination and other water-treatment activities. Based on the level of funding provided to the Bureau of Reclamation for similar research in the past, CBO estimates that the 

agency would spend $8 million for the required research program 

in 2008 and $50 million over the 2008–2012 period. 

Oil Shale Community Impact Assistance. The bill would establish 

a new fund to be credited with certain receipts from Federal leases 

for oil shale. The bill would authorize DOI to make payments from 

the fund subject to appropriation to certain state and local governments for use in planning, constructing, and maintaining public 

property. Based on information from DOI on the likely timing of 

federal lease sales for oil shale and the anticipated magnitude of 

receipts from such sales, CBO estimates that making such payments would cost $25 million in 2012. 


hmoore on PRODPC68 with HMRPT
105 

Other Provisions. H.R. 2337 would require Federal agencies to 

complete numerous studies and reports, conduct pilot projects, and 

establish national guidelines and regulations for addressing global 

warming. CBO estimates that carrying out those requirements 

would cost $5 million in 2008 and about $25 million over the 2008– 2012 period. 

Studies. The bill would authorize specific appropriations for 

three programs: • Section 232 would authorize the appropriation of $2 million for 

each of fiscal years 2008 through 2015 for research on the impact 

to wildlife of producing wind energy. • Section 403 would authorize the appropriation of $30 million 

over the 2008–2012 period for a national assessment by the U.S. 

Geological Survey (USGS) of geological formations in the United 

States and their potential capacity for storing carbon dioxide. • Section 424 would authorize the appropriation of $15 million 

over the 2008–2012 period for a USGS study to determine the potential for increasing carbon storage underground. 

Assuming appropriation of the authorized amounts, CBO esti- mates that completing those three studies would cost $11 million 

in 2008 and $55 million over the 2008–2012 period. 

Direct spending 

Several provisions of the bill would amend the Department of the 

Interior’s authority to collect and spend offsetting receipts from energy and mineral development on federal lands. The legislation’s 

estimated effect on direct spending over the next 10 years is shown 

in Table 3. Major provisions that would affect direct spending are 

described below. 

BLM Fees for Onshore Oil and Gas Drilling Permits. The 

Energy Policy Act of 2005 (EPAct) established a pilot program to 

better coordinate federal agencies’ efforts to review and process applications for drilling-related permits under federal onshore mineral leases. For that program, EPAct authorizes BLM to spend, 

without further appropriation, one-half of rental payments collected 

from onshore lessees. Until the pilot program ends in 2015, EPAct 

prohibits BLM from charging fees to recover costs to administer 

drilling-related permits. 

H.R. 2337 would repeal BLM’s authority to spend rental payments for the permit coordination pilot program. Based on anticipated levels of such payments and historical spending patterns for 

administrative activities, CBO estimates that reductions in direct 

spending would total $23 million in 2008 and $261 million over the 

next 10 years. (We also estimate that eliminating BLM’s direct 

spending authority would require additional discretionary appropriations to administer applications for drilling-related permits, as 

described earlier in the section on ‘‘Spending Subject to Appropriation.’’) 

H.R. 2337 also would require BLM to charge a fee of $1,700 for 

all drilling-related permits. CBO expects that this provision would 

increase offsetting receipts (a credit against direct spending) during 

the 2008–2015 period when the prohibition on such fees would otherwise be in effect. Based on information from BLM about the anticipated volume of applications, CBO estimates the proposed fee 

would reduce direct spending by $17 million in 2008, $85 million 


hmoore on PRODPC68 with HMRPT
106 

over the 2008–2012 period, and $136 million over the 2008–2015 

period. 

TABLE 3.—ESTIMATED CHANGES IN DIRECT SPENDING FROM ENACTING H.R. 2337 

By fiscal year, in millions of dollars—

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008–

2012 

2008–

2017 

Repeal of BLM Spending 

Authority of Rental Payments: 

Estimated Budget 

Authority ............... ¥29 ¥30 ¥31 ¥32 ¥33 ¥34 ¥35 ¥36 0 0 ¥155 ¥260 

Estimated Outlays .... ¥23 ¥30 ¥31 ¥32 ¥33 ¥34 ¥35 ¥36 ¥6 0 ¥149 ¥260 

Collections of BLM Drilling 

Permit Fees: 

Estimated Budget 

Authority ............... ¥17 ¥17 ¥17 ¥17 ¥17 ¥17 ¥17 ¥17 0 0 ¥85 ¥136 

Estimated Outlays .... ¥17 ¥17 ¥17 ¥17 ¥17 ¥17 ¥17 ¥17 0 0 ¥85 ¥136 

Changes in MMS Royalty 

Management: 

Estimated Budget 

Authority ............... ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥10 ¥20 

Estimated Outlays .... ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥10 ¥20 

BLM Due Diligence Fee 

Offsetting Receipts: 

Estimated Budget 

Authority ............... ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥150 ¥300 

Estimated Outlays .... ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥30 ¥150 ¥300 

Spending of Offsetting Receipts: 

Estimated Budget 

Authority ............... 30 30 30 30 30 30 30 30 30 30 150 300 

Estimated Outlays .... 20 25 30 30 30 30 30 30 30 30 135 285 

Net Effect, Due-Diligence Fees: 

Estimated 

Budget Authority .......... 0 0 0 0 0 0 0 0 0 0 0 0 

Estimated Outlays .............. ¥10 ¥5 0 0 0 0 0 0 0 0 ¥15 ¥15 

Total Changes in Direct 

Spending: 

Estimated Budget 

Authority ............... ¥48 ¥49 ¥50 ¥51 ¥52 ¥53 ¥54 ¥55 ¥2 ¥2 ¥250 ¥416 

Estimated Outlays .... ¥52 ¥54 ¥50 ¥51 ¥52 ¥53 ¥54 ¥55 ¥8 ¥2 ¥259 ¥431 

Changes in MMS Royalty Management. CBO estimates that 

enacting H.R. 2337 would reduce direct spending by MMS by about 

$2 million a year. Most of the estimated savings would result from 

the repeal of provisions that require MMS to pay interest to lessees 

if they overpay royalties. According to MMS, such interest payments totaled about $10 million over the 2001–2006 period. 

The legislation also would require most lessees to pay royalties 

in cash, rather than making in-kind payments in the form oil, gas, 

or other fuel. Under this bill, MMS could accept in-kind payments 

only when royalty oil is needed to fill the Strategic Petroleum Reserve. Based on information regarding MMS’s existing royalty-inkind (RIK) program, CBO estimates that this change would have 

a negligible effect on the government’s net income from royalties. 

Although more than half of the royalties from the Outer Continental Shelf are currently paid in-kind, MMS reports indicate that 

the estimated difference in collections between the two methods 


hmoore on PRODPC68 with HMRPT
107 

has been very small—about two-tenths of one percent over the last 

three years—after adjusting for the direct spending for the RIK 

program’s administrative costs. Whether either approach will yield 

higher or lower collections in the future is difficult to predict because of uncertainty regarding market conditions, contract terms, 

and the availability of information to verify the relative merits of 

each approach. Thus, CBO estimates that implementing this provision would have no significant net effect on direct spending over 

the 2008–2017 period. 

BLM Due Diligence Fee. Section 224 would require BLM to es- tablish a fee of $1 per acre on all nonproducing onshore oil and gas 

leases within 180 days after enactment. The agency would be authorized to use the proceeds from the fee, without further appropriation, to repair damage to Federal lands caused by oil and gas 

development under the Healthy Lands Initiative or for certain innovative energy projects. CBO estimates that enacting this provision would increase offsetting receipts (a credit against direct 

spending) by $30 million a year beginning in 2008. We estimate 

that the net effect of the new fees and associated spending would 

be a net decrease in direct spending of $10 million in 2008, $15 

million over the 2008–2012 period, and $15 million over the 2008– 2017 period—reflecting a short lag between the collection of new 

fees and their expenditure. 

Revenues 

H.R. 2337 would establish new civil penalties for violations of 

law regarding oil and gas leasing royalties. Enforcing the new penalty provisions of the bill could result in additional revenues, but 

CBO estimates that such increases would be less than $500,000 a 

year. 

Estimated impact on state, local, and tribal governments: H.R. 

2337 contains no intergovernmental mandates as defined in 

UMRA. The bill would authorize grants to state, local, or tribal 

governments for a number of programs including assistance for 

surveying coastal zones and coastal waters to identify potential 

areas for energy exploration and production; grants for state and 

tribal wildlife programs; and, grants to coastal states for developing 

resiliency plans related to climate change. Some of those grants 

would require matching contributions, but any additional costs to 

state or tribal governments would be incurred voluntarily. State 

and local governments also could receive payments from the Oil 

Shale Community Impact Assistance Fund that would be established by the bill. 

Estimated impact on the private sector: H.R. 2337 would impose 

a private-sector mandate, as defined in UMRA, on certain oil, gas, 

and coal operators that hold onshore Federal leases by requiring 

those operators to pay $1 for each acre of land that is not in production for a given year. The fee would apply to new and existing 

onshore federal leases. Operators entering into a new lease after 

the fee has been established would do so voluntarily, and thus this 

provision would not constitute a mandate for those operators. However, operators with existing Federal leases would be required to 

pay a fee that is not a duty under their current lease agreements. 

The new requirement for those operators would be considered a 

mandate under UMRA. Based on information from BLM, CBO estiVerDate Aug 31 2005 03:42 Aug 08, 2007 Jkt 059010 PO 00000 Frm 00107 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296P1.XXX HR296P1

hmoore on PRODPC68 with HMRPT
108 

mates that the direct cost of the mandate would be about $30 million in 2008. As those existing leases expire, the cost of the mandate would decrease in subsequent years. Consequently, the cost of 

the mandate would fall below the annual threshold established by 

UMRA for private-sector mandates ($131 million in 2007, adjusted 

annually for inflation). 

Estimate prepared by: Federal Costs: Natural resources programs: Deb Reis; Offshore leasing: Kathleen Gramp; Onshore leasing: Megan Carroll. Impact on State, Local, and Tribal Governments: Leo Lex. Impact on the Private Sector: Craig Cammarata. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

COMPLIANCE WITH PUBLIC LAW 104–4 

This bill contains no unfunded mandates. 

EARMARK STATEMENT

H.R. 2337 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e) 

or 9(f) of rule XXI. 

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill is not intended to preempt any State, local or tribal law. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

ENERGY POLICY ACT OF 2005 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS 

(a) * * * 

(b) TABLE OF CONTENTS.—The table of contents for this Act is as 

follows: 

* * * * * * * 

TITLE II—RENEWABLE ENERGY 

Subtitle A—General Provisions 

* * * * * * * 

øSec. 210. Grants to improve the commercial value of forest biomass for electric energy, useful heat, transportation fuels, and other commercial purposes.¿ 

Sec. 210. Biomass utilization pilot program. 

* * * * * * * 

TITLE II—RENEWABLE ENERGY 

Subtitle A—General Provisions 

* * * * * * * 


hmoore on PRODPC68 with HMRPT
109 

øSEC. 210. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST 

BIOMASS FOR ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, AND OTHER COMMERCIAL PURPOSES. 

ø(a) DEFINITIONS.—In this section: 

ø(1) BIOMASS.—The term ‘‘biomass’’ means nonmerchantable 

materials or precommercial thinnings that are byproducts of 

preventive treatments, such as trees, wood, brush, thinnings, 

chips, and slash, that are removed— ø(A) to reduce hazardous fuels; 

ø(B) to reduce or contain disease or insect infestation; or 

ø(C) to restore forest health. 

ø(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning 

given the term in section 4(e) of the Indian Self-Determination 

and Education Assistance Act (25 U.S.C. 450b(e)). 

ø(3) NONMERCHANTABLE.—For purposes of subsection (b), the 

term ‘‘nonmerchantable’’ means that portion of the byproducts 

of preventive treatments that would not otherwise be used for 

higher value products. 

ø(4) PERSON.—The term ‘‘person’’ includes— ø(A) an individual; 

ø(B) a community (as determined by the Secretary concerned); 

ø(C) an Indian tribe; 

ø(D) a small business or a corporation that is incorporated in the United States; and 

ø(E) a nonprofit organization. 

ø(5) PREFERRED COMMUNITY.—The term ‘‘preferred community’’ means— ø(A) any Indian tribe; 

ø(B) any town, township, municipality, or other similar 

unit of local government (as determined by the Secretary 

concerned) that— ø(i) has a population of not more than 50,000 individuals; and 

ø(ii) the Secretary concerned, in the sole discretion 

of the Secretary concerned, determines contains or is 

located near Federal or Indian land, the condition of 

which is at significant risk of catastrophic wildfire, 

disease, or insect infestation or which suffers from disease or insect infestation; or 

ø(C) any county that— ø(i) is not contained within a metropolitan statistical 

area; and 

ø(ii) the Secretary concerned, in the sole discretion 

of the Secretary concerned, determines contains or is 

located near Federal or Indian land, the condition of 

which is at significant risk of catastrophic wildfire, 

disease, or insect infestation or which suffers from disease or insect infestation. 

ø(6) SECRETARY CONCERNED.—The term ‘‘Secretary concerned’’ means the Secretary of Agriculture or the Secretary of 

the Interior. 

ø(b) BIOMASS COMMERCIAL USE GRANT PROGRAM.—

ø(1) IN GENERAL.—The Secretary concerned may make 

grants to any person in a preferred community that owns or 

operates a facility that uses biomass as a raw material to 


hmoore on PRODPC68 with HMRPT
110 

produce electric energy, sensible heat, or transportation fuels 

to offset the costs incurred to purchase biomass for use by such 

facility. 

ø(2) GRANT AMOUNTS.—A grant under this subsection may not exceed $20 per green ton of biomass delivered. 

ø(3) MONITORING OF GRANT RECIPIENT ACTIVITIES.—As a condition of a grant under this subsection, the grant recipient 

shall keep such records as the Secretary concerned may require to fully and correctly disclose the use of the grant funds 

and all transactions involved in the purchase of biomass. Upon 

notice by a representative of the Secretary concerned, the 

grant recipient shall afford the representative reasonable access to the facility that purchases or uses biomass and an opportunity to examine the inventory and records of the facility. 

ø(c) IMPROVED BIOMASS USE GRANT PROGRAM.— ø(1) IN GENERAL.—The Secretary concerned may make 

grants to persons to offset the cost of projects to develop or research opportunities to improve the use of, or add value to, biomass. In making such grants, the Secretary concerned shall 

give preference to persons in preferred communities. 

ø(2) SELECTION.—The Secretary concerned shall select a 

grant recipient under paragraph (1) after giving consideration 

to— ø(A) the anticipated public benefits of the project, including the potential to develop thermal or electric energy resources or affordable energy; 

ø(B) opportunities for the creation or expansion of small 

businesses and micro-businesses; 

ø(C) the potential for new job creation; 

ø(D) the potential for the project to improve efficiency or 

develop cleaner technologies for biomass utilization; and 

ø(E) the potential for the project to reduce the hazardous 

fuels from the areas in greatest need of treatment. 

ø(3) GRANT AMOUNT.—A grant under this subsection may not exceed $500,000. 

ø(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated $50,000,000 for fiscal year 2006 and $35,000,000 

for each of fiscal years 2007 through 2016 to carry out this section. 

ø(e) REPORT.—Not later than October 1, 2010, the Secretary of 

Agriculture, in consultation with the Secretary of the Interior, shall 

submit to the Committee on Energy and Natural Resources and the 

Committee on Agriculture, Nutrition, and Forestry of the Senate, 

and the Committee on Resources, the Committee on Energy and 

Commerce, and the Committee on Agriculture of the House of Representatives, a report describing the results of the grant programs 

authorized by this section. The report shall include the following: 

ø(1) An identification of the size, type, and use of biomass by 

persons that receive grants under this section. 

ø(2) The distance between the land from which the biomass 

was removed and the facility that used the biomass. 

ø(3) The economic impacts, particularly new job creation, resulting from the grants to and operation of the eligible operations.¿ 

SEC. 210. BIOMASS UTILIZATION PILOT PROGRAM. 

(a) FINDINGS.—Congress finds the following: 


hmoore on PRODPC68 with HMRPT
111 

(1) The supply of woody biomass for energy production is directly linked to forest management planning to a degree far 

greater than in the case of other types of energy development. 

(2) As a consequence of this linkage, the process of developing 

and evaluating appropriate technologies and facilities for 

woody biomass energy and utilization must be integrated with 

long-term forest management planning processes, particularly 

in situations where Federal lands dominate the forested landscape. 

(b) BIOMASS DEFINITION FOR FEDERAL FOREST LANDS.—In this 

section, with respect to organic material removed from National 

Forest System lands or from public lands administered by the Secretary of the Interior, the term ‘‘biomass’’ covers only organic material from— (1) ecological forest restoration; 

(2) small-diameter byproducts of hazardous fuels treatments; 

(3) pre-commercial thinnings; 

(4) brush; 

(5) mill residues; and 

(6) slash. 

(c) PILOT PROGRAM.—The Secretary of Agriculture and the Secretary of the Interior shall establish a pilot program, to be known 

as the ‘‘Biomass Utilization Pilot Program’’, involving 10 different 

forest types on Federal lands, under which the Secretary concerned 

will provide technical assistance and grants to persons to support 

the following biomass-related activities: 

(1) The development of biomass utilization infrastructure to 

support hazardous fuel reduction and ecological forest restoration. 

(2) The research and implementation of integrated facilities 

that seek to utilize woody biomass for its highest and best uses, 

with particular emphasis on projects that are linked to implementing community wildfire protection plans, ecological forest 

restoration, and economic development in rural communities. 

(3) The testing of multiple technologies and approaches to 

biomass utilization for energy, with emphasis on improving energy efficiency, developing thermal applications and distributed 

heat, biofuels, and achieving cleaner emissions including 

through combustion with other fuels, as well as other valueadded uses. 

(d) BIOMASS SUPPLY STUDY.—Prior to the development of any biomass utilization pilot projects, the Secretary concerned shall develop 

a study to determine the long-term, ecologically sustainable, biomass supply available in the pilot program area. The study shall 

incorporate results form coordinated resource offering protocol 

(CROP) studies. The study shall also analyze the long-term availability of biomass materials within a reasonable transportation distance. The biomass supply studies shall be developed through a collaborative approach, as evidenced by the broad involvement, analysis, and agreement of interested persons, including local governments, energy developers, conservationists, and land management 

agencies. The results of the biomass supply study shall be a basis 

for determining the project scale, as outlined in subsection (g). 

(e) EXCLUSION OF CERTAIN FEDERAL LAND.—The following Federal lands may not be included within a pilot project site: 


hmoore on PRODPC68 with HMRPT
112 

(1) Federal land containing old-growth forest or late-successional forest, unless the Secretary concerned determines that the 

pilot project on such land is appropriate for the applicable forest type and maximizes and enhances the retention of late-successional and large- and old-growth trees, late-successional and 

old-growth forest structure, and late-successional and oldgrowth forest composition. 

(2) Federal land on which the removal of vegetation is prohibited, including components of the National Wilderness Preservation System. 

(3) Wilderness Study Areas. 

(4) Inventoried roadless areas. 

(5) Components of the National Landscape Conservation System. 

(6) National Monuments. 

(f) MULTIPLE PROJECTS.—In conducting the pilot program, the 

Secretary concerned shall include a variety of projects involving—

(1) innovations in facilities of various sizes and processing 

techniques; and 

(2) the full spectrum of woody biomass producing regions of 

the United States. 

(g) SELECTION CRITERIA AND PROJECT SCALE.—In selecting the 

projects to be conducted under the pilot program, and the appropriate scale of projects, the Secretary concerned shall consider criteria that evaluate existing economic, ecological, and social conditions, focusing on opportunities such as workforce training, job creation, ecosystem health, reducing energy costs, and facilitating the 

production of alternative energy fuels. The agreement on the scale 

of a project shall be reached through a collaborative approach, as 

evidenced by the broad involvement, analysis, and agreement of interested persons, including local governments, energy developers, 

conservationists, and land management agencies. In selecting the 

appropriate scale of projects to be conducted under the pilot program, the Secretary concerned shall also consider the results of the 

supply study as outlined in subsection (d). 

(h) MONITORING AND REPORTING REQUIREMENTS.—As part of the 

pilot program, the Secretary concerned shall impose monitoring and 

reporting requirements to ensure that the ecological, social, and economic effects of the projects conducted under the pilot program are 

being monitored and that the accomplishments, challenges, and lessons of each project are recorded and reported. 

(i) OTHER DEFINITIONS.—In this section: 

(1) HIGHEST AND BEST USE.—The term ‘‘highest and best use’’, 

with regard to biomass, means—

(A) creating from raw materials those products and those 

biomass uses that will achieve the highest market value; 

and 

(B) yielding a wide range of existing and innovative 

products and biomass uses that create new markets, stimulate existing ones, and improve rural economies, maintains 

or improves ecosystem integrity, while also supporting traditional biomass energy generation. 

(2) PILOT PROGRAM.—The term ‘‘pilot program’’ means the 

Biomass Utilization Pilot Program established pursuant to this 

section. 


hmoore on PRODPC68 with HMRPT
113 

(3) SECRETARY CONCERNED.—The term ‘‘Secretary concerned’’ means the Secretary of Agriculture, with respect to National 

Forest System lands, and the Secretary of the Interior, with respect to public lands administered by the Secretary of the Interior. 

(4) COMMUNITY WILDFIRE PROTECTION PLAN.—The term ‘‘community wildfire protection plan’’ has the meaning given that 

term in section 101(3) of the Healthy Forest Restoration Act of 

2003 (16 U.S.C. 6511(3)), which is further described by the 

Western Governors Association in the document entitled ‘‘Preparing a Community Wildfire Protection Plan: A Handbook for 

Wildland-Interface Communities’’ and dated March 2004. 

(5) FEDERAL LAND.—The term ‘‘Federal land’’ means—

(A) land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a)) administered by the Secretary of Agriculture, acting through the 

Chief of the Forest Service; and 

(B) public lands (as defined in section 103 of the Federal 

Land Policy and Management Act of 1976 (43 U.S.C. 

1702)), the surface of which is administered by the Secretary of the Interior, acting through the Director of the Bureau of Land Management. 

(6) INVENTORIED ROADLESS AREA.—The term ‘‘Inventoried 

roadless area’’ means one of the areas identified in the set of 

inventoried roadless areas maps contained in the Forest Service 

Roadless Areas Conservation, Final Environmental Impact 

Statement, Volume 2, dated November 2000. 

(j) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated such sums as may be necessary to carry out the 

pilot program. 

* * * * * * * 

TITLE III—OIL AND GAS 

* * * * * * * 

Subtitle E—Production Incentives 

* * * * * * * 

SEC. 342. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND. 

(a) * * * 

* * * * * * * 

(d) øBENEFIT¿ FILLING OF STRATEGIC PETROLEUM RESERVE AND

BENEFIT TO THE UNITED STATES REQUIRED.—The Secretary may receive oil or gas royalties in-kind øonly if¿ only if receiving such royalties in-kind is for the purpose of filling the Strategic Petroleum 

Reserve and the Secretary determines that receiving royalties inkind provides benefits to the United States that are greater than 

or equal to the benefits that are likely to have been received had 

royalties been taken in-value. 

* * * * * * * 


hmoore on PRODPC68 with HMRPT
114 

(k) LIMITATION.— (1) IN GENERAL.—No amount of the total amount of royalties 

collected by the Secretary in a fiscal year may be collected as 

royalties in-kind. 

(2) EXCEPTION.—Paragraph (1) shall not apply with respect 

to royalties in-kind collected for the purpose of filling the Strategic Petroleum Reserve. 

* * * * * * * 

SEC. 354. ENHANCED OIL AND NATURAL GAS PRODUCTION THROUGH 

CARBON DIOXIDE INJECTION. 

(a) * * * 

* * * * * * * 

(d) RECORDS AND INVENTORY.—The Secretary of the Interior, acting through the Bureau of Land Management, shall maintain 

records on and an inventory of the amount of carbon dioxide stored 

from Federal energy leases. 

ø(d)¿ (e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to carry out 

this section. 

* * * * * * * 

Subtitle F—Access to Federal Lands 

* * * * * * * 

SEC. 365. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION. 

(a) * * * 

* * * * * * * 

ø(i) FEES.—During the period in which the Pilot Project is authorized, the Secretary shall not implement a rulemaking that 

would enable an increase in fees to recover additional costs related 

to processing drilling-related permit applications and use authorizations.¿ 

(i) FEE FOR APPLICATIONS FOR PERMITS TO DRILL.—

(1) REQUIREMENT TO ESTABLISH COST RECOVERY FEE.—The 

Secretary of the Interior shall promulgate regulations to establish a cost recovery fee for applications for a permit to drill for 

oil and gas on Federal lands administered by the Secretary. 

(2) TEMPORARY FEE.—Until such time as a fee is established 

by such regulations, the Secretary shall charge a cost recovery 

fee of $1,700 for each such application received on or after October 1, 2007. 

* * * * * * * 

SEC. 368. ENERGY RIGHT-OF-WAY CORRIDORS ON FEDERAL LAND. 

(a) WESTERN STATES.—øNot later than 2 years after the date of 

enactment of this Act, the¿ The Secretary of Agriculture, the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, and the Secretary of the Interior (in this section referred to 

collectively as ‘‘the Secretaries’’), in consultation with the Federal 

Energy Regulatory Commission, States, tribal or local units of govVerDate Aug 31 2005 03:42 Aug 08, 2007 Jkt 059010 PO 00000 Frm 00114 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296P1.XXX HR296P1

hmoore on PRODPC68 with HMRPT
115 

ernments as appropriate, affected utility industries, and other interested persons, shall consult with each other and shall— (1) * * * 

* * * * * * * 

(b) OTHER STATES.—øNot later than 4 years after the date of enactment of this Act, the¿ The Secretaries, in consultation with the 

Federal Energy Regulatory Commission, affected utility industries, 

and other interested persons, shall jointly—

(1) * * * 

* * * * * * * 

SEC. 369. OIL SHALE, TAR SANDS, AND OTHER STRATEGIC UNCONVENTIONAL FUELS. 

(a) * * * 

* * * * * * * 

(c) LEASING PROGRAM FOR RESEARCH AND DEVELOPMENT OF OIL

SHALE AND TAR SANDS.—In accordance with section 21 of the Mineral Leasing Act (30 U.S.C. 241) and any other applicable law, except as provided in this section, ønot later than 180 days after the 

date of enactment of this Act,¿ from land otherwise available for 

leasing, the Secretary of the Interior (referred to in this section as 

the ‘‘Secretary’’) øshall make¿ may make available for leasing such 

land as the Secretary considers to be necessary to conduct research 

and development activities with respect to technologies for the recovery of liquid fuels from oil shale and tar sands resources on public lands. Prospective public lands within each of the States of Colorado, Utah, and Wyoming shall be made available for such research and development leasing. 

(d) PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT AND

COMMERCIAL LEASING PROGRAM FOR OIL SHALE AND TAR SANDS.— (1) PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT.— øNot later than 18 months after the date of enactment of this 

Act, in¿ In accordance with section 102(2)(C) of the National 

Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), the 

Secretary shall complete a programmatic environmental impact statement for a commercial leasing program for oil shale 

and tar sands resources on public lands, with an emphasis on 

the most geologically prospective lands within each of the 

States of Colorado, Utah, and Wyoming. 

(2) øFINAL¿ PROPOSED REGULATION.—Not later than ø6¿ 12 

months after the completion of the programmatic environmental impact statement under this subsection, the Secretary 

shall publish a øfinal¿ proposed regulation establishing such 

program. The proposed regulations developed under this paragraph are to be open for public comment for no less than 180 

days. 

(e) OIL SHALE AND TAR SANDS LEASING AND DEVELOPMENT

STRATEGY.—

(1) GENERAL.—Not later than 6 months after the completion 

of the programmatic environmental impact statement under 

subsection (d), the Secretary shall prepare an oil shale and tar 

sands leasing and development strategy, in cooperation with the 

Secretary of Energy and the Administrator of the Environmental Protection Agency. 


hmoore on PRODPC68 with HMRPT
116 

(2) PURPOSE.—The purpose of the strategy developed under 

this subsection is to allow for the sustainable and publicly acceptable large-scale development of oil shale within the Green 

River Formation. 

(3) CONTENTS.—The strategy shall include plans and programs for obtaining information required for determining the 

optimal methods, locations, amount, and timeframe for potential development on federal lands within the Green River Formation. The strategy shall also include plans for conducting 

critical environmental and ecological research, high-payoff process improvement research, an assessment of carbon management options, and a large-scale demonstration of carbon dioxide 

sequestration in the general vicinity of the Piceance Basin. 

(f) ALTERNATIVE APPROACHES.—Not later than nine months after 

the completion of the programmatic environmental impact statement 

under subsection (d), the Secretary shall, in cooperation with the 

Secretary of Energy and the Administrator of the Environmental 

Protection Agency, prepare and publish a report on alternative approaches to providing access to Federal lands for early first-of-akind commercial facilities for extracting and processing oil shale 

and tar sands. 

ø(e)¿ (g) COMMENCEMENT OF COMMERCIAL LEASING OF OIL SHALE

AND TAR SANDS.—Not later than 180 days after publication øof the 

final regulation required by subsection (d)¿ of final regulations 

issued under this section, the Secretary shall consult with the Governors of States with significant oil shale and tar sands resources 

on public lands, representatives of local governments in such 

States, interested Indian tribes, and other interested persons, to 

determine the level of support and interest in the States in the development of tar sands and oil shale resources. If the Secretary 

finds sufficient support and interest exists in a State, the Secretary 

may conduct a lease sale in that State under the commercial leasing program regulations. Evidence of interest in a lease sale under 

this subsection shall include, but not be limited to, appropriate 

areas nominated for leasing by potential lessees and other interested parties. Compliance with the National Environmental Policy 

Act of 1969 is required on a site-by-site basis for all lands proposed 

to be leased under the commercial leasing program established in 

this subsection. 

ø(f)¿ (h) DILIGENT DEVELOPMENT REQUIREMENTS.—The Secretary 

shall, by regulation, designate work requirements and milestones 

to ensure the diligent development of the lease. 

ø(g)¿ (i) INITIAL REPORT BY THE SECRETARY OF THE INTERIOR.—

Within 90 days after the date of enactment of this Act, the Secretary of the Interior shall report to the Committee on Resources 

of the House of Representatives and the Committee on Energy and 

Natural Resources of the Senate on—

(1) the interim actions necessary to—

(A) * * * 

(B) conduct the first lease sales under the program as 

required by øsubsection (e)¿ subsection (g); and 

* * * * * * * 

ø(h)¿ (j) TASK FORCE.—


hmoore on PRODPC68 with HMRPT
117 

(1) * * * 

* * * * * * * 

ø(i)¿ (k) OFFICE OF PETROLEUM RESERVES.— (1) * * * 

* * * * * * * 

ø(j)¿ (l) MINERAL LEASING ACT AMENDMENTS.— (1) * * * 

* * * * * * * 

ø(k)¿ (m) INTERAGENCY COORDINATION AND EXPEDITIOUS REVIEW

OF PERMITTING PROCESS.— (1) * * * 

* * * * * * * 

ø(l)¿ (n) COST-SHARED DEMONSTRATION TECHNOLOGIES.— (1) * * * 

* * * * * * * 

ø(m)¿ (o) NATIONAL OIL SHALE AND TAR SANDS ASSESSMENT.— (1) * * * 

* * * * * * * 

ø(n)¿ (p) LAND EXCHANGES.— (1) * * * 

* * * * * * * 

ø(o)¿ (q) ROYALTY RATES FOR LEASES.—The Secretary shall establish royalties, fees, rentals, bonus, or other payments for leases 

under this section that shall—

(1) * * * 

* * * * * * * 

ø(p)¿ (r) HEAVY OIL TECHNICAL AND ECONOMIC ASSESSMENT.—

The Secretary of Energy shall update the 1987 technical and economic assessment of domestic heavy oil resources that was prepared by the Interstate Oil and Gas Compact Commission. Such an 

update should include all of North America and cover all unconventional oil, including heavy oil, tar sands (oil sands), and oil shale. 

ø(q)¿ (s) PROCUREMENT OF UNCONVENTIONAL FUELS BY THE DE- PARTMENT OF DEFENSE.— (1) * * * 

* * * * * * * 

ø(r)¿ (t) STATE WATER RIGHTS.—Nothing in this section preempts 

or affects any State water law or interstate compact relating to 

water. 

ø(s)¿ (u) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to carry out 

this section. 

* * * * * * * 

Subtitle G—Miscellaneous 

* * * * * * * 

SEC. 390. NEPA REVIEW. 

(a) * * * 


hmoore on PRODPC68 with HMRPT
118 

(b) ACTIVITIES DESCRIBED.—The activities referred to in subsection (a) are the following: 

(1) * * * 

* * * * * * * 

(3) Drilling an oil or gas well within a developed field for 

which an approved land use plan or any environmental document prepared pursuant to NEPA analyzed such drilling as a 

reasonably foreseeable activity, other than at such a location or 

site in an area that is crucial wildlife habitat or a significant 

wildlife corridor, so long as such plan or document was approved within 5 years prior to the date of spudding the well. 

* * * * * * * 

(c) ADHERENCE TO CEQ REGULATIONS.—In administering this 

section, the Secretary of the Interior in managing the public lands, 

and the Secretary of Agriculture in managing National Forest System lands, shall adhere to the regulations issued by the Council on 

Environmental Quality relating to categorical exclusions (40 C.F.R. 

1507.3 and 1508.4), as in effect on the date of enactment of this Act. 

* * * * * * * 

MINERAL LEASING ACT 

* * * * * * * 

SEC. 17. (a) * * * 

* * * * * * * 

(p) DEADLINES FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.—

(1) * * * .—

* * * * * * * 

(2) ISSUANCE OR DEFERRAL.—Not later than ø30¿ 90 days 

after the applicant for a permit has submitted a complete application, the Secretary shall—

(A) * * * 

* * * * * * * 

(q) RECLAMATION REQUIREMENTS.—An operator producing oil or 

gas (including coalbed methane) under a lease issued pursuant to 

this Act shall—

(1) at a minimum restore the land affected to a condition capable of supporting the uses that it was capable of supporting 

prior to any drilling, or higher or better uses of which there is 

reasonable likelihood, so long as such use or uses do not present 

any actual or probable hazard to public health or safety or pose 

any actual or probable threat of water diminution or pollution, 

and the permit applicants’ declared proposed land use following 

reclamation is not impractical or unreasonable, inconsistent 

with applicable land use policies and plans, or involve unreasonable delay in implementation, or is violative of Federal or 

State law; 

(2) ensure that all reclamation efforts proceed in an environmentally sound manner and as contemporaneously as practicable with the oil and gas drilling operations; and 


hmoore on PRODPC68 with HMRPT
119 

(3) submit with the plan of operations a reclamation plan 

that describes in detail the methods and practices that will be 

used to ensure complete and timely restoration of all lands affected by oil and gas operations. 

(r) RECLAMATION BOND OR OTHER FINANCIAL ASSURANCES.—An 

operator producing oil or gas (including coalbed methane) under a 

lease issued under this Act shall post a bond or other financial assurances that cover the reclamation of that area of land within the 

permit area upon which the operator will initiate and conduct oil 

and gas drilling and reclamation operations within the initial term 

of the permit. As succeeding increments of oil and gas drilling and 

reclamation operations are to be initiated and conducted within the 

permit area, the lessee shall file with the regulatory authority an 

additional bond or bonds or other financial assurances to cover 

such increments in accordance with this section. The amount of the 

bond or other financial assurances required for each bonded area 

shall depend upon the reclamation requirements of the approved 

permit; shall reflect the probable difficulty of reclamation giving 

consideration to such factors as topography, geology of the site, hydrology, and revegetation potential; and shall be determined by the 

Secretary. The amount of the bond or other financial assurances 

shall be sufficient to assure the completion of the reclamation plan 

if the work had to be performed by the Secretary in the event of forfeiture. 

(s) REGULATIONS.—No later than one year after the date of the enactment of this subsection, the Secretary shall promulgate regulations to implement the requirements, including for the release of 

bonds or other financial assurances, of subsections (q) and (r). 

(t) WATER REQUIREMENTS.—

(1) IN GENERAL.—An operator producing oil or gas (including 

coalbed methane) under a lease issued under this Act shall—

(A) remediate or replace the water supply of a water user 

who obtains all or part of such user’s supply of water for 

domestic, agricultural, or other purposes from an underground or surface source that has been affected by contamination, diminution, or interruption proximately resulting 

from drilling operations for such production; and 

(B) comply with all applicable requirements of Federal 

and State law for discharge of any water produced under 

the lease. 

(2) WATER MANAGEMENT PLAN.—An application for a permit 

to drill submitted pursuant to a lease issued under this Act 

shall be accompanied by a proposed water management plan 

including provisions to—

(A) protect the quantity and quality of surface and 

ground water systems, both on-site and off-site, from adverse effects of the exploration, development, and reclamation processes or to provide alternative sources of water if 

such protection cannot be assured; 

(B) protect the rights of present users of water that would 

be affected by operations under the lease, including the discharge of any water produced in connection with such operations that is not reinjected; and 

(C) identify any agreements with other parties for the 

beneficial use of produced waters and the steps that will be 


hmoore on PRODPC68 with HMRPT
120 

taken to comply with State and Federal laws related to 

such use. 

* * * * * * * 

SEC. 35. (a) * * * 

* * * * * * * 

ø(c)(1) Notwithstanding the first sentence of subsection (a), any 

rentals received from leases in any State (other than the State of 

Alaska) on or after the date of enactment of this subsection shall 

be deposited in the Treasury, to be allocated in accordance with 

paragraph (2). 

ø(2) Of the amounts deposited in the Treasury under paragraph 

(1)— ø(A) 50 percent shall be paid by the Secretary of the Treasury to the State within the boundaries of which the leased land 

is located or the deposits were derived; and 

ø(B) 50 percent shall be deposited in a special fund in the 

Treasury, to be known as the ‘‘BLM Permit Processing Improvement Fund’’ (referred to in this subsection as the ‘‘Fund’’). 

ø(3) For each of fiscal years 2006 through 2015, the Fund shall 

be available to the Secretary of the Interior for expenditure, without further appropriation and without fiscal year limitation, for the 

coordination and processing of oil and gas use authorizations on onshore Federal land under the jurisdiction of the Pilot Project offices 

identified in section 365(d) of the Energy Policy Act of 2005.¿ 

* * * * * * * 

COASTAL ZONE MANAGEMENT ACT OF 1972 

TITLE III—MANAGEMENT OF THE COASTAL ZONE 

* * * * * * * 

OCEAN AND COASTAL ALTERNATIVE ENERGY STATE SURVEYS; 

ALTERNATIVE ENERGY SITE IDENTIFICATION AND PLANNING

SEC. 306B. (a) GRANTS TO STATES.—The Secretary may make 

grants to eligible coastal States to support voluntary State efforts to 

initiate and complete surveys of portions of coastal State waters and 

Federal waters adjacent to a State’s coastal zone, in consultation 

with the Minerals Management Service, to identify potential areas 

suitable or unsuitable for the exploration, development, and production of alternative energy that are consistent with the enforceable 

policies of coastal management plans approved pursuant to section 

306A. 

(b) SURVEY ELEMENTS.—Surveys developed with grants under 

this section may include, but not be limited to—

(1) hydrographic and bathymetric surveys; 

(2) oceanographic observations and measurements of the 

physical ocean environment, especially seismically active areas; 

(3) identification and characterization of significant or sensitive marine ecosystems or other areas possessing important 

conservation, recreational, ecological, historic, or aesthetic values; 


hmoore on PRODPC68 with HMRPT
121 

(4) surveys of existing marine uses in the outer Continental 

Shelf and identification of potential conflicts; 

(5) inventories and surveys of shore locations and infrastructure capable of supporting alternative energy development; 

(6) inventories and surveys of offshore locations and infrastructure capable of supporting alternative energy development; 

and 

(7) other actions as may be necessary. 

(c) PARTICIPATION AND COOPERATION.—To the extent practicable, 

coastal States shall provide opportunity for the participation in surveys under this section by relevant Federal agencies, State agencies, 

local governments, regional organizations, port authorities, and 

other interested parties and stakeholders, public and private, that 

is adequate to develop a comprehensive survey. 

(d) GUIDELINES.—The Secretary shall, within 180 days after the 

date of enactment of this section and after consultation with the 

coastal States, publish guidelines for the application for and use of 

grants under this section. 

(e) ANNUAL GRANTS.—For each of fiscal years 2008 through 2011, 

the Secretary may make a grant to a coastal State under this section if the coastal State demonstrates to the satisfaction of the Secretary that the grant will be used to develop an alternative energy 

survey consistent with the requirements set forth in section 306A 

and this section. 

(f) GRANT AMOUNTS.—The amount of any grant under this section shall not exceed $750,000 for any fiscal year. 

(g) STATE MATCH.— (1) BEFORE FISCAL YEAR 2010.—The Secretary shall not require any State matching fund contribution for grants awarded 

under this section for any fiscal year before fiscal year 2010. 

(2) AFTER FISCAL YEAR 2010.—The Secretary shall require a 

coastal State to provide a matching fund contribution for a 

grant under this section for surveys of a State’s coastal waters, 

according to—

(A) a 2-to-1 ratio of Federal-to-State contributions for fiscal year 2010; and 

(B) a 1-to-1 ratio of Federal-to-State contributions for fiscal year 2011. 

(3) LIMITATION.—The Secretary shall not require any matching funds for surveys of Federal waters adjacent to a State’s 

coastal zone. 

(h) SECRETARIAL REVIEW.—After an initial grant is made to a 

coastal State under this section, no subsequent grant may be made 

to that coastal State under this section unless the Secretary finds 

that the coastal State is satisfactorily developing its survey. 

(i) LIMITATION ON ELIGIBILITY.—No coastal State is eligible to receive grants under this section for more than 4 fiscal years. 

(j) APPLICABILITY.—This section and the surveys conducted with 

assistance under this section shall not be construed to convey any 

new authority to any coastal State, or repeal or supersede any existing authority of any Federal agency, to regulate the siting, licensing, 

leasing, or permitting of alternative energy facilities in areas of the 

outer Continental Shelf under the administration of the Federal 

Government. Nothing in this section repeals or supersedes any existing coastal State authority pursuant to State or Federal law. 


hmoore on PRODPC68 with HMRPT
122 

(k) PRIORITY.—Any area that is identified as suitable for potential 

alternative energy development under surveys developed with assistance under this section shall be given priority consideration by Federal agencies for the siting, licensing, leasing, or permitting of alternative energy facilities. Any area that is identified as unsuitable 

under surveys developed with assistance under this section shall be 

avoided by Federal agencies to the maximum extent practicable. 

(l) ASSISTANCE BY THE SECRETARY.—The Secretary shall— (1) under section 307(a) and to the extent practicable, make 

available to coastal States the resources and capabilities of the 

National Oceanic and Atmospheric Administration to provide 

technical assistance to the coastal States to develop surveys 

under this section; and 

(2) encourage other Federal agencies with relevant expertise to 

participate in providing technical assistance under this subsection. 

* * * * * * * 

AUTHORIZATION OF APPROPRIATIONS

SEC. 318. (a) There are authorized to be appropriated to the Secretary, to remain available until expended—

(1) for grants under sections 306, 306A, and 309—

(A) * * * 

* * * * * * * 

(C) $50,500,000 for fiscal year 1999; øand¿ 

(2) for grants under section 315—

(A) * * * 

* * * * * * * 

(C) $4,600,000 for fiscal year 1999ø.¿; 

(3) for grants under section 306B such sums as are necessary; 

and 

(4) for grants under section 320(c) and (d), such sums as are 

necessary. 

* * * * * * * 

APPEALS TO THE SECRETARY

SEC. 319. (a) * * * 

(b) CLOSURE OF RECORD.—

(1) IN GENERAL.—Not later than the end of the ø160-day¿ 

320-day period beginning on the date of publication of an initial notice under subsection (a), except as provided in paragraph (3), the Secretary shall immediately close the decision 

record and receive no more filings on the appeal. 

* * * * * * * 

(3) EXCEPTION.—

(A) IN GENERAL.—Subject to subparagraph (B), during 

the ø160-day¿ 320-day period described in paragraph (1), 

the Secretary may stay the closing of the decision record—

(i) * * * 

ø(ii) as the Secretary determines necessary to receive, on an expedited basis—


hmoore on PRODPC68 with HMRPT
123 

ø(I) any supplemental information specifically 

requested by the Secretary to complete a consistency review under this Act; or 

ø(II) any clarifying information submitted by a 

party to the proceeding related to information in 

the consolidated record compiled by the lead Federal permitting agency.¿ 

(ii) as the Secretary determines necessary to receive, 

on an expedited basis, any supplemental or clarifying 

information relevant to the consolidated record compiled by the lead Federal permitting agency to complete 

a consistency review under this title. 

(B) APPLICABILITY.—The Secretary may only stay the 

ø160-day¿ 320-day period described in paragraph (1) øfor 

a period not to exceed 60 days.¿ once. 

* * * * * * * 

CLIMATE CHANGE RESILIENCY PLANNING

SEC. 320. (a) IN GENERAL.—The Secretary shall establish consistent with the national policies set forth in section 303 a coastal 

climate change resiliency planning and response program to—

(1) provide assistance to coastal states to voluntarily develop 

coastal climate change resiliency plans pursuant to approved 

management programs approved under section 306, to minimize contributions to climate change and to prepare for and reduce the negative consequences that may result from climate 

change in the coastal zone; and 

(2) provide financial and technical assistance and training to 

enable coastal states to implement plans developed pursuant to 

this section through coastal states’ enforceable policies. 

(b) GUIDELINES.—Within 180 days after the date of enactment of 

this section, the Secretary, in consultation with the coastal states, 

shall issue guidelines for the implementation of the grant program 

established under subsection (c). 

(c) CLIMATE CHANGE RESILIENCY PLANNING GRANTS.— (1) IN GENERAL.—The Secretary, subject to the availability of 

appropriations, may make a grant to any coastal state for the 

purpose of developing climate change resiliency plans pursuant 

to guidelines issued by the Secretary under subsection (b). 

(2) PLAN CONTENT.—A plan developed with a grant under 

this section shall include the following: 

(A) Identification of public facilities and public services, 

coastal resources of national significance, coastal waters, 

energy facilities, or other water uses located in the coastal 

zone that are likely to be impacted by climate change. 

(B) Adaptive management strategies for land use to respond or adapt to changing environmental conditions, including strategies to protect biodiversity and establish habitat buffer zones, migration corridors, and climate refugia. 

(C) Requirements to initiate and maintain long-term 

monitoring of environmental change to assess coastal zone 

resiliency and to adjust when necessary adaptive management strategies and new planning guidelines to attain the 

policies under section 303. 


hmoore on PRODPC68 with HMRPT
124 

(3) STATE HAZARD MITIGATION PLANS.—Plans developed with 

a grant under this section shall be consistent with State hazard 

mitigation plans developed under State or Federal law. 

(4) ALLOCATION.—Grants under this section shall be available only to coastal states with management programs approved by the Secretary under section 306 and shall be allocated among such coastal states in a manner consistent with 

regulations promulgated pursuant to section 306(c). 

(5) PRIORITY.—In the awarding of grants under this subsection the Secretary may give priority to any coastal state that 

has received grant funding to develop program changes pursuant to paragraphs (1), (2), (3), (5), (6), (7), and (8) of section 

309(a). 

(6) TECHNICAL ASSISTANCE.—The Secretary may provide technical assistance to a coastal state consistent with section 310 to 

ensure the timely development of plans supported by grants 

awarded under this subsection. 

(7) FEDERAL APPROVAL.—In order to be eligible for a grant 

under subsection (d), a coastal state must have its plan developed under this section approved by the Secretary under regulations adopted pursuant to section 306(e). 

(d) COASTAL RESILIENCY PROJECT GRANTS.— (1) IN GENERAL.—The Secretary, subject to the availability of 

appropriations, may make grants to any coastal state that has 

a climate change resiliency plan approved under subsection 

(c)(7), in order to support projects that implement strategies 

contained within such plans. 

(2) PROGRAM REQUIREMENTS.—The Secretary within 90 days 

after approval of the first plan approved under subsection (c)(7), 

shall publish in the Federal Register requirements regarding 

applications, allocations, eligible activities, and all terms and 

conditions for grants awarded under this subsection. No less 

than 30 percent of the funds appropriated in any fiscal year for 

grants under this subsection shall be awarded through a meritbased competitive process. 

(3) ELIGIBLE ACTIVITIES.—The Secretary may award grants to 

coastal states to implement projects in the coastal zone to address stress factors in order to improve coastal climate change 

resiliency, including the following: 

(A) Activities to address physical disturbances within the 

coastal zone, especially activities related to public facilities 

and public services, tourism, sedimentation, and other factors negatively impacting coastal waters, and fisheries-associated habitat destruction or alteration. 

(B) Monitoring, control, or eradication of disease organisms and invasive species. 

(C) Activities to address the loss, degradation or fragmentation of wildlife habitat through projects to establish 

marine and terrestrial habitat buffers, wildlife refugia or 

networks thereof, and preservation of migratory wildlife 

corridors and other transition zones. 

(D) Implementation of projects to reduce, mitigate, or otherwise address likely impacts caused by natural hazards in 

the coastal zone, including sea level rise, coastal inundation, coastal erosion and subsidence, severe weather events 


hmoore on PRODPC68 with HMRPT
125 

such as cyclonic storms, tsunamis and other seismic 

threats, and fluctuating Great Lakes water levels. 

(E) Provide technical training and assistance to local 

coastal policy makers to increase awareness of science, 

management, and technology information related to climate 

change and adaptation strategies. 

* * * * * * * 

FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT OF 

1982 

* * * * * * * 

DEFINITIONS

SEC. 3. For the purposes of this Act, the term—

(1) * * * 

* * * * * * * 

(20) ‘‘commence’’ means—

(A) with respect to a judicial proceeding, the service of 

a complaint, petition, counterclaim, cross claim, or other 

pleading seeking affirmative relief or seeking credit or 

recoupmentø: Provided, That if the Secretary commences a 

judicial proceeding against a designee, the Secretary shall 

give notice of that commencement to the lessee who designated the designee, but the Secretary is not required to 

give notice to other lessees who may be liable pursuant to 

section 102(a) of this Act, for the obligation that is the subject of the judicial proceeding¿; or 

(B) with respect to a demand, the receipt by the Secretary or a delegated State or a lessee or its designee 

ø(with written notice to the lessee who designated the designee)¿ of the demand; 

* * * * * * * 

(23) ‘‘demand’’ means—

(A) an order to pay issued by the Secretary or the applicable delegated State to a lessee or its designee ø(with 

written notice to the lessee who designated the designee)¿ 

that has a reasonable basis to conclude that the obligation 

in the amount of the demand is due and owing; or 

* * * * * * * 

ø(24) ‘‘designee’’ means the person designated by a lessee 

pursuant to section 102(a) of this Act, with such written designation effective on the date such designation is received by 

the Secretary and remaining in effect until the Secretary receives notice in writing that the designation is modified or terminated;¿ 

(24) ‘‘designee’’ means any person who pays, offsets, or credits 

monies, makes adjustments, requests and receives refunds, or 

submits reports with respect to payments a lessee must make 

pursuant to section 102(a); 

(25) ‘‘obligation’’ means—

(A) * * * 


hmoore on PRODPC68 with HMRPT
126 

(B) any duty of a lessee or its designee ø(subject to the 

provisions of section 102(a) of this Act)¿—

(i) * * * 

* * * * * * * 

(26) ‘‘order to pay’’ means a written order issued by the Secretary or the applicable delegated State to a lessee or its designee ø(with notice to the lessee who designated the designee)¿ 

which—

(A) * * * 

* * * * * * * 

TITLE I—FEDERAL ROYALTY MANAGEMENT AND 

ENFORCEMENT 

* * * * * * * 

DUTIES OF LESSEES, OPERATORS, AND MOTOR VEHICLE TRANSPORTERS

SEC. 102. 

ø(a) In order to increase receipts and achieve effective collections 

of royalty and other payments, a lessee who is required to make 

any royalty or other payment under a lease or under the mineral 

leasing laws, shall make such payments in the time and manner 

as may be specified by the Secretary or the applicable delegated 

State. A lessee may designate a person to make all or part of the 

payments due under a lease on the lessee’s behalf and shall notify 

the Secretary or the applicable delegated State in writing of such 

designation, in which event said designated person may, in its own 

name, pay, offset or credit monies, make adjustments, request and 

receive refunds and submit reports with respect to payments required by the lessee. Notwithstanding any other provision of this 

Act to the contrary, a designee shall not be liable for any payment 

obligation under the lease. The person owning operating rights in 

a lease shall be primarily liable for its pro rata share of payment 

obligations under the lease. If the person owning the legal record 

title in a lease is other than the operating rights owner, the person 

owning the legal record title shall be secondarily liable for its pro 

rata share of such payment obligations under the lease.¿ 

(a) In order to increase receipts and achieve effective collections of 

royalty and other payments, a lessee who is required to make any 

royalty or other payment under a lease or under the mineral leasing 

laws, shall make such payments in the time and manner as may 

be specified by the Secretary or the applicable delegated State. Any 

person who pays, offsets or credits monies, makes adjustments, requests and receives refunds, or submits reports with respect to payments the lessee must make is the lessee’s designee under this Act. 

Notwithstanding any other provision of this Act to the contrary, a 

designee shall be liable for any payment obligation of any lessee on 

whose behalf the designee pays royalty under the lease. The person 

owning operating rights in a lease and a person owning legal record 

title in a lease shall be liable for that person’s pro rata share of payment obligations under the lease. 

* * * * * * * 


hmoore on PRODPC68 with HMRPT
127 

øCIVIL PENALTIES

øSEC. 109. (a) Any person who—

ø(1) after due notice of violation or after such violation has 

been reported under subparagraph (A), fails or refuses to comply with any requirements of this Act or any mineral leasing 

law, any rule or regulation thereunder, or the terms of any 

lease or permit issued thereunder; or 

ø(2) fails to permit inspection authorized in section 108 or 

fails to notify the Secretary of any assignment under section 

102(a)(2) 

shall be liable for a penalty of up to $500 per violation for each day 

such violation continues, dating from the date of such notice or report. A penalty under this subsection may not be applied to any 

person who is otherwise liable for a violation of paragraph (1) if: 

ø(A) the violation was discovered and reported to the Secretary or his authorized representative by the liable person 

and corrected within 20 days after such report or such longer 

time as the Secretary may agree to; or 

ø(B) after the due notice of violation required in paragraph 

(1) has been given to such person by the Secretary or his authorized representative, such person has corrected the violation 

within 20 days of such notification or such longer time as the 

Secretary may agree to. 

ø(b) If corrective action is not taken within 40 days or a longer 

period as the Secretary may agree to, after due notice or the report 

referred to in subsection (a)(1), such person shall be liable for a 

civil penalty of not more than $5,000 per violation for each day 

such violation continues, dating from the date of such notice or report. 

ø(c) Any person who—

ø(1) knowingly or willfully fails to make any royalty payment 

by the date as specified by statute, regulation, order or terms 

of the lease; 

ø(2) fails or refuses to permit lawful entry, inspection, or 

audit; or 

ø(3) knowingly or willfully fails or refuses to comply with 

subsection 102(b)(3), 

shall be liable for a penalty of up to $10,000 per violation for each 

day such violation continues. 

ø(d) Any person who—

ø(1) knowingly or willfully prepares, maintains, or submits 

false, inaccurate, or misleading reports, notices, affidavits, 

records, data, or other written information; 

ø(2) knowingly or willfully takes or removes, transports, uses 

or diverts any oil or gas from any lease site without having 

valid legal authority to do so; or 

ø(3) purchases, accepts, sells, transports, or conveys to another, any oil or gas knowing or having reason to know that 

such oil or gas was stolen or unlawfully removed or diverted. shall be liable for a penalty of up to $25,000 per violation for each 

day such violation continues. 

ø(e) No penalty under this section shall be assessed until the person charged with a violation has been given the opportunity for a 

hearing on the record. 


hmoore on PRODPC68 with HMRPT
128 

ø(f) The amount of any penalty under this section, as finally determined may be deducted from any sums owing by the United 

States to the person charged. 

ø(g) On a case-by-case basis the Secretary may compromise or reduce civil penalties under this section. 

ø(h) Notice under this subsection (a) shall be by personal service 

by an authorized representative of the Secretary or by registered 

mail. Any person may, in the manner prescribed by the Secretary, 

designate a representative to receive any notice under this subsection. 

ø(i) In determining the amount of such penalty, or whether it 

should be remitted or reduced, and in what amount, the secretary 

shall state on the record the reasons for his determinations. 

ø(j) Any person who has requested a hearing in accordance with 

subsection (e) within the time the Secretary has prescribed for such 

a hearing and who is aggrieved by a final order of the Secretary 

under this section may seek review of such order in the United 

States district court for the judicial district in which the violation 

allegedly took place. Review by the district court shall be only on 

the administrative record and not de novo. Such an action shall be 

barred unless filed within 90 days after the Secretary’s final order. 

ø(k) If any person fails to pay an assessment of a civil penalty 

under this Act—

ø(1) after the order making the assessment has become a 

final order and if such person does not file a petition for judicial review of the order in accordance with subsection (j), or 

ø(2) after a court in an action brought under subsection (j) 

has entered a final judgment in favor of the Secretary. 

the court shall have jurisdiction to award the amount assessed plus 

interest from the date of the expiration of the 90-day period referred to in subsection (j). Judgment by the court shall include an 

order to pay. 

ø(l) No person shall be liable for a civil penalty under subsection 

(a) or (b) for failure to pay any rental for any lease automatically 

terminated pursuant to section 31 of the Mineral Leasing Act of 

1920.¿ 

CIVIL PENALTIES

SEC. 109. (a) ROYALTY VIOLATIONS.—(1) No person shall—

(A) after due notice of violation or after such violation has 

been reported under paragraph (3)(A), fail or refuse to comply 

with any requirement of any mineral leasing law or any regulation, order, lease, or permit under such a law; 

(B) fail or refuse to make any royalty payment in the amount 

or value required by any mineral leasing law or any regulation, 

order, or lease under such a law; 

(C) fail or refuse to make any royalty payment by the date required by any mineral leasing law or any regulation, order, or 

lease under such a law; or 

(D) prepare, maintain, or submit any false, inaccurate, or 

misleading report, notice, affidavit, record, data, or other written information or filing related to royalty payments that is required under any mineral leasing law or regulation issued 

under any mineral leasing law. 

(2) A person who violates paragraph (1) shall be liable—


hmoore on PRODPC68 with HMRPT
129 

(A) in the case of a violation of subparagraph (B) or (C) of 

paragraph (1) for an amount equal to 3 times the royalty the 

person fails or refuses to pay, plus interest on that trebled 

amount measured from the first date the royalty payment was 

due; and 

(B) in the case of any violation, for a civil penalty of up to $25,000 per violation for each day the violation continues. 

(3) Paragraph (2) shall not apply to a violation of paragraph (1) 

if the person who commits the violation, within 30 days of the violation— (A) reports the violation to the Secretary or a representative 

designated by the Secretary; and 

(B) corrects the violation. 

(b) LEASE ADMINISTRATION VIOLATIONS.—Any person who—

(1) fails to notify the Secretary of—

(A) any designation by the person under section 102(a); 

or 

(B) any other assignment of obligations or responsibilities 

of the person under a lease; 

(2) fails or refuses to permit—

(A) lawful entry; 

(B) inspection, including any inspection authorized by 

section 108; or 

(C) audit, including any failure or refusal to promptly 

tender requested documents; 

(3) fails or refuses to comply with subsection 102(b)(3) (relating to notification regarding beginning or resumption of production); or 

(4) fails to correctly report and timely provide operations or 

financial records necessary for the Secretary or any authorized 

designee of the Secretary to accomplish lease management responsibilities, 

shall be liable for a penalty of up to $10,000 per violation for each 

day such violation continues. 

(c) THEFT.—Any person who— (1) knowingly or willfully takes or removes, transports, uses 

or diverts any oil or gas from any lease site without having 

valid legal authority to do so; or 

(2) purchases, accepts, sells, transports, or conveys to another, 

any oil or gas knowing or having reason to know that such oil 

or gas was stolen or unlawfully removed or diverted, shall be liable for a penalty of up to $25,000 per violation for each 

day such violation continues without correction. 

(d) REPEATED VIOLATIONS.—(1)(A) If the Secretary or an authorized designee of the Secretary determines that any person has repeatedly violated subsection (a), (b), or (c), the Secretary or designee 

shall notify the person of the violation and demand compliance. 

(B) A person notified pursuant to subparagraph (A) shall correct 

the violations by not later than 30 calendar days after the date of 

the notification. 

(C) Any person who fails to comply with a demand under subparagraph (A) shall be liable to the United States for a civil penalty 

equal to 3 times the amount of any civil penalty that otherwise applies under subsection (a), (b), or (c) to the violations to which the 

demand relates. 


hmoore on PRODPC68 with HMRPT
130 

(2) In addition to the penalty provided in paragraph (1)(C), if the 

Secretary determines that any person has repeatedly violated subsection (a), (b), or (c) or any lease management order, the Secretary 

may—(A) shut in and cease production of any oil or gas lease held 

by the person; 

(B) prohibit the person— (i) from acquiring any additional oil or gas lease, including by transfer or assignment; and 

(ii) from being designated under section 102(a) to make 

payments due under any lease; 

(C) cancel or transfer any interest in an oil or gas lease held 

by the person; and 

(D) collect from the person reimbursement, including interest, 

of all costs of release, transfer, or reclamation of lease sites canceled or transferred, including costs of disposing of lease property, facilities, and equipment. 

(e) ADMINISTRATIVE APPEAL.—(1) Any determination by the Secretary or a designee of the Secretary of the amount of any royalties 

or civil penalties owed under subsection (a), (b), (c), or (d) shall be 

final, unless within 15 days after notification by the Secretary or 

designee the person liable for such amount files an administrative 

appeal in accordance with regulations issued by the Secretary. 

(2) If a person files an administrative appeal pursuant to paragraph (1), the Secretary or designee shall make a final determination in accordance with the regulations referred to in paragraph (1). 

(f) DEDUCTION.—The amount of any penalty under this section, as 

finally determined may be deducted from any sums owing by the 

United States to the person charged. 

(g) COMPROMISE AND REDUCTION.—On a case-by-case basis the 

Secretary may compromise or reduce civil penalties under this section. 

(h) NOTICE.—Notice under this subsection (a) shall be by personal 

service by an authorized representative of the Secretary or by registered mail. Any person may, in the manner prescribed by the Secretary, designate a representative to receive any notice under this 

subsection. 

(i) RECORD OF DETERMINATION.—In determining the amount of 

such penalty, or whether it should be remitted or reduced, and in 

what amount, the Secretary shall state on the record the reasons for 

his determinations. 

(j) JUDICIAL REVIEW.—Any person who has requested a hearing in 

accordance with subsection (e) within the time the Secretary has 

prescribed for such a hearing and who is aggrieved by a final order 

of the Secretary under this section may seek review of such order in 

the United States district court for the judicial district in which the 

violation allegedly took place. Review by the district court shall be 

only on the administrative record and not de novo. Such an action 

shall be barred unless filed within 90 days after the Secretary’s 

final order. 

(k) FAILURE TO PAY.—If any person fails to pay an assessment of 

a civil penalty under this Act— (1) after the order making the assessment has become a final 

order and if such person does not file a petition for judicial review of the order in accordance with subsection (j), or 


hmoore on PRODPC68 with HMRPT
131 

(2) after a court in an action brought under subsection (j) has 

entered a final judgment in favor of the Secretary, 

the court shall have jurisdiction to award the amount assessed plus 

interest from the date of the expiration of the 90-day period referred 

to in subsection (j). Judgment by the court shall include an order 

to pay. 

(l) RELATIONSHIP TO MINERAL LEASING ACT.—No person shall be 

liable for a civil penalty under subsection (a) or (b) for failure to pay 

any rental for any lease automatically terminated pursuant to section 31 of the Mineral Leasing Act. 

(m) TOLLING OF STATUTES OF LIMITATION.—(1) Any determination by the Secretary or a designee of the Secretary that a person 

has violated subsection (a), (b)(2), or (b)(4) shall toll any applicable 

statute of limitations for all oil and gas leases held or operated by 

such person, until the later of— (A) the date on which the person corrects the violation and 

certifies that all violations of a like nature have been corrected 

for all of the oil and gas leases held or operated by such person; 

or 

(B) the date a final, nonappealable order has been issued by 

the Secretary or a court of competent jurisdiction. 

(2) A person determined by the Secretary or a designee of the Secretary to have violated subsection (a), (b)(2), or (b)(4) shall maintain 

all records with respect to the person’s oil and gas leases until the 

later of—

(A) the date the Secretary releases the person from the obligation to maintain such records; and 

(B) the expiration of the period during which the records 

must be maintained under section 103(b). 

(n) STATE SHARING OF PENALTIES.—Amounts received by the 

United States in an action brought under section 3730 of title 31, 

United States Code, that arises from any underpayment of royalties 

owed to the United States under any lease shall be treated as royalties paid to the United States under that lease for purposes of the 

mineral leasing laws and the Land and Water Conservation Fund 

Act of 1965 (16 U.S.C. 460l—4 et seq.). 

* * * * * * * 

ROYALTY TERMS AND CONDITIONS, INTEREST, AND PENALTIES

SEC. 111. (a) * * * 

* * * * * * * 

ø(h) Interest shall be allowed and paid or credited on any overpayment, with such interest to accrue from the date such overpayment was made, at the rate obtained by applying the provisions of 

subparagraphs (A) and (B) of section 6621(a)(1) of the Internal Revenue Code of 1986, but determined without regard to the sentence 

following subparagraph (B) of section 6621(a)(1). Interest which 

has accrued on any overpayment may be applied to reduce an underpayment. This subsection applies to overpayments made later 

than six months after the date of enactment of this subsection or 

September 1, 1996, whichever is later. Such interest shall be paid 

from amounts received as current receipts from sales, bonuses, royalties (including interest charges collected under this section) and 

rentals of the public lands and the Outer Continental Shelf under 


hmoore on PRODPC68 with HMRPT
132 

the provisions of the Mineral Leasing Act, and the Outer Continental Shelf Lands Act, which are not payable to a State or the 

Reclamation Fund. The portion of any such interest payment attributable to any amounts previously disbursed to a State, the Reclamation Fund, or any other recipient designated by law shall be 

deducted from the next disbursements to that recipient made under 

the applicable law. Such amounts deducted from subsequent disbursements shall be credited to miscellaneous receipts in the 

Treasury. 

ø(i) Upon a determination by the Secretary that an excessive 

overpayment (based upon all obligations of a lessee or its designee 

for a given reporting month) was made for the sole purpose of receiving interest, interest shall not be paid on the excessive amount 

of such overpayment. For purposes of this Act, an ‘‘excessive overpayment’’ shall be the amount that any overpayment a lessee or its 

designee pays for a given reporting month (excluding payments for 

demands for obligations determined to be due as a result of judicial 

or administrative proceedings or agreed to be paid pursuant to settlement agreements) for the aggregate of all of its Federal leases 

exceeds 10 percent of the total royalties paid that month for those 

leases.¿ 

(j) A lessee or its designee may make a payment for the approximate amount of royalties (hereinafter in this subsection ‘‘estimated 

payment’’) that would otherwise be due for such lease by the date 

royalties are due for that lease. When an estimated payment is 

made, actual royalties are payable at the end of the month following the month in which the estimated payment is made. If the 

estimated payment was less than the amount of actual royalties 

due, interest is owed on the underpaid amount. øIf the estimated 

payment exceeds the actual royalties due, interest is owed on the 

overpayment.¿ If the lessee or its designee makes a payment for 

such actual royalties, the lessee or its designee may apply the estimated payment to future royalties. Any estimated payment may be 

adjusted, recouped, or reinstated at any time by the lessee or its 

designee. 

* * * * * * * 

SEC. 115. SECRETARIAL AND DELEGATED STATES’ ACTIONS AND LIMITATION PERIODS. 

(a) * * * 

* * * * * * * 

(c) OBLIGATION BECOMES DUE.—

(1) * * * 

* * * * * * * 

(3) ADJUSTMENTS.—In the case of an adjustment under section 111A(a) (30 U.S.C. 1721a(a)) in which a recoupment by the 

lessee results in an underpayment of an obligation, for purposes 

of this Act the obligation becomes due on the date the lessee or 

its designee makes the adjustment. 

(d) TOLLING OF LIMITATION PERIOD.—The running of the limitation period under subsection (b) shall not be suspended, tolled, extended, or enlarged for any obligation for any reason by any action, 

including an action by the Secretary or a delegated State, other 

than the following: 


hmoore on PRODPC68 with HMRPT
133 

(1) TOLLING AGREEMENT.—A written agreement executed 

during the limitation period between the Secretary or a delegated State and a lessee or its designee ø(with notice to the 

lessee who designated the designee)¿ shall toll the limitation 

period for the amount of time during which the agreement is 

in effect. 

(2) SUBPOENA.— (A) The issuance of a subpoena to a lessee or its designee ø(with notice to the lessee who designated the designee, which notice shall not constitute a subpoena to the 

lessee)¿ in accordance with the provisions of subparagraph 

(B)(i) shall toll the limitation period with respect to the obligation which is the subject of a subpoena only for the period beginning on the date the lessee or its designee receives the subpoena and ending on the date on which (i) 

the lessee or its designee has produced such subpoenaed 

records for the subject obligation, (ii) the Secretary or a 

delegated State receives written notice that the subpoenaed records for the subject obligation are not in existence 

or are not in the lessee’s or its designee’s possession or 

control, or (iii) a court has determined in a final decision 

that such records are not required to be produced, whichever occurs first. 

* * * * * * * 

TITLE II—STATES AND INDIAN TRIBES 

* * * * * * * 

SHARED CIVIL PENALTIES

SEC. 206. An amount equal to 50 per centum of any trebled royalties or civil penalty collected by the Federal Government under this 

Act resulting from activities conducted by a State or Indian tribe 

pursuant to a cooperative agreement under section 202 or a State 

under a delegation under section 205, shall be payable to such 

State or tribe. øSuch amount shall be deducted from any compensation due such State or Indian tribe under section 202 or such 

State under section 205.¿ 

* * * * * * * 

WATER DESALINATION ACT OF 1996 

* * * * * * * 

SEC. 10. RESEARCH ON REVERSE OSMOSIS TECHNOLOGY FOR WATER 

DESALINATION AND WATER RECYCLING. 

(a) RESEARCH PROGRAM.—The Secretary of the Interior, in consultation with the Secretary of Energy, shall implement a program 

to research methods for improving the energy efficiency of reverse osmosis technology for water desalination, water contamination, and 

water recycling. 

(b) REPORT.—Not later than one year after the date of the enactment of this Act, the Secretary of the Interior shall submit to Congress a report which shall include—


hmoore on PRODPC68 with HMRPT
134 

(1) a review of existing and emerging technologies, both domestic and international, that are likely to improve energy efficiency or utilize renewable energy sources at existing and future 

desalination and recycling facilities; and 

(2) an analysis of the economic viability of energy efficiency 

technologies. 


hmoore on PRODPC68 with HMRPT
(135) 


hmoore on PRODPC68 with HMRPTInsert graphic folio 143 HR296.024
136 


hmoore on PRODPC68 with HMRPTInsert graphic folio 144 HR296.025
137 


hmoore on PRODPC68 with HMRPTInsert graphic folio 145 HR296.026
138 


hmoore on PRODPC68 with HMRPTInsert graphic folio 146 HR296.027
139 


hmoore on PRODPC68 with HMRPTInsert graphic folio 147 HR296.028
140 


hmoore on PRODPC68 with HMRPTInsert graphic folio 148 HR296.029
141 


hmoore on PRODPC68 with HMRPTInsert graphic folio 149 HR296.030
142 


hmoore on PRODPC68 with HMRPTInsert graphic folio 150 HR296.031
143 


hmoore on PRODPC68 with HMRPTInsert graphic folio 151 HR296.032
144 


hmoore on PRODPC68 with HMRPTInsert graphic folio 152 HR296.033
145 


hmoore on PRODPC68 with HMRPTInsert graphic folio 153 HR296.034
146 


hmoore on PRODPC68 with HMRPTInsert graphic folio 154 HR296.035