II 

111TH CONGRESS 

1ST SESSION S. 1333 

To provide clean, affordable, and reliable energy, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 24, 2009 

Mr. BARRASSO (for himself, Mr. CRAPO, Mr. HATCH, Mr. VITTER, Mr. RISCH, 

Mr. BENNETT, and Mr. ENZI) introduced the following bill; which was 

read twice and referred to the Committee on Finance 

A BILL 

To provide clean, affordable, and reliable energy, and for 

other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Clean, Affordable, and Reliable Energy Act of 2009’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—PROMOTING DEVELOPMENT AND DEPLOYMENT OF 

RENEWABLE AND ALTERNATIVE ENERGY 

Subtitle A—American Renewable and Alternative Energy Trust Fund 

Sec. 101. American Renewable and Alternative Energy Trust Fund. 


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Subtitle B—Nuclear 

Sec. 111. Use of funds for recycling; Nuclear Waste Fund budget status. 

Sec. 112. Rulemaking for licensing of spent nuclear fuel recycling facilities. 

Sec. 113. Waste confidence. 

Sec. 114. Domestic manufacturing base for nuclear components and equipment. 

Subtitle C—Synthetic and Alternative Energy 

Sec. 121. Repeal of Federal purchasing requirement. 

Sec. 122. Procurement of fuel derived from coal, oil shale, and oil sands. 

Sec. 123. Expanded definition of biomass for certain programs. 

Subtitle D—Renewable Technologies 

Sec. 131. Stewardship end-result contracting projects. 

TITLE II—DOMESTIC ENERGY EDUCATION AND WORKFORCE 

Sec. 201. Short title. 

Sec. 202. Findings and policy. 

Sec. 203. Definitions. 

Sec. 204. Maintaining science and technology education programs. 

Sec. 205. Grants for scholarships and fellowships. 

Sec. 206. Use of grant funds by institutions. 

Sec. 207. Career technical and community college education. 

Sec. 208. Funding. 

TITLE III—DOMESTIC PRODUCTION 

Subtitle A—Outer Continental Shelf 

Sec. 301. Disposition of receipts. 

Sec. 302. Leasing program considered approved. 

Sec. 303. Outer Continental Shelf lease sales. 

Sec. 304. Repeal of the Gulf of Mexico Energy Security Act of 2006. 

Subtitle B—Arctic National Wildlife Refuge 

Sec. 331. Short title. 

Sec. 332. Definitions. 

Sec. 333. Leasing program for land within the Coastal Plain. 

Sec. 334. Lease sales. 

Sec. 335. Grant of leases by the Secretary. 

Sec. 336. Lease terms and conditions. 

Sec. 337. Coastal plain environmental protection. 

Sec. 338. Expedited judicial review. 

Sec. 339. Federal and State distribution of revenues. 

Sec. 340. Rights-of-way across the Coastal plain. 

Sec. 341. Conveyance. 

Sec. 342. Local government impact aid and community service assistance. 

Subtitle C—Oil Shale 

Sec. 351. Leasing of oil shale resources. 

TITLE IV—ENERGY INFRASTRUCTURE 

Subtitle A—Transmission 


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Sec. 401. Natural gas pipeline integrity reassessment intervals based on risk. 

Subtitle B—Small Refinery Study and Temporary Exemption 

Sec. 411. Small refinery study and temporary exemption. 

TITLE V—REDUCING GOVERNMENT RED TAPE AND EXCESSIVE 

LITIGATION 

Sec. 501. Alaska Offshore Continental Shelf Coordination Office. 

Sec. 502. Clean air regulation. 

Sec. 503. Endangered species. 

Sec. 504. Minerals Management Service. 

Sec. 505. Completion and review of environmental impact statements. 

TITLE VI—CONSERVATION AND EFFICIENCY 

Subtitle A—New Source Review 

Sec. 601. Clarifying new source review requirements. 

Subtitle B—Clean Coal Alternative Transition 

Sec. 611. Carbon dioxide storage capacity assessment. 

TITLE VII—TAX PROVISIONS 

Sec. 701. Amendment of 1986 Code. 

Subtitle A—Nuclear Energy 

Sec. 711. ASME Nuclear Certification credit. 

Sec. 712. Expansion of energy investment tax credit to include nuclear and 

clean-coal equipment. 

Sec. 713. Credit for qualifying nuclear power manufacturing. 

Subtitle B—Synthetic and Alternative Energy 

Sec. 721. Coal-to-liquid facilities. 

Sec. 722. Permanent extension of the credit for nonbusiness energy property 

and the credit for gas produced from biomass and for synthetic 

fuels produced from coal. 

Sec. 723. Extension of 50 cent per gallon alternative fuels excise tax credit. 

Sec. 724. Tax credit parity for open-loop biomass facilities. 

Subtitle C—Alternative Fuel Vehicles 

Sec. 731. Extension of credit for alternative fuel vehicles. 

Sec. 732. Extension of alternative fuel vehicle refueling property credit. 

Sec. 733. Extension of credit for new qualified plug-in electric drive motor vehicles. 

Subtitle D—Energy Infrastructure 

Sec. 741. Tax-exempt financing of energy transportation infrastructure not 

subject to private business use tests. 

Sec. 742. Limitation on discriminatory taxation of certain pipeline property. 

Subtitle E—Building Efficiency Incentives 


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Sec. 751. Home energy audits. 

Sec. 752. Extension and clarification of new energy efficient home credit. 

Sec. 753. Extension of credit for energy efficient appliances. 

Sec. 754. Extension and modification of deduction for energy efficient commercial buildings. 

1 TITLE I—PROMOTING DEVELOP2 MENT AND DEPLOYMENT OF 

3 RENEWABLE AND ALTER4 NATIVE ENERGY 

5 Subtitle A—American Renewable 

6 and Alternative Energy Trust Fund 

7 SEC. 101. AMERICAN RENEWABLE AND ALTERNATIVE EN8 ERGY TRUST FUND. 

9 (a) ESTABLISHMENT.—There is established in the 

10 Treasury of the United States a trust fund, to be known 

11 as the ‘‘American Renewable and Alternative Energy 

12 Trust Fund’’, consisting of such amounts as are trans13 ferred to the American Renewable and Alternative Energy 

14 Trust Fund by law. 

15 (b) EXPENDITURES.— 

16 (1) IN GENERAL.—Subject to paragraph (2), of 

17 the amounts in the American Renewable and Alter18 native Energy Trust Fund, the Secretary of Energy 

19 shall use for each fiscal year, without further appro20 priation— 

21 (A) 2 percent to provide grants to improve 

22 the commercial value of forest biomass for elec23 tric energy, useful heat, transportation fuels, 


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1 and other commercial purposes under section 

2 210 of the Energy Policy Act of 2005 (42 

3 U.S.C. 15855); 

4 (B) 2 percent to provide hydroelectric pro5 duction incentives under section 242 of the En6 ergy Policy Act of 2005 (42 U.S.C. 15881); 

7 (C) 3 percent for development of oil shale, 

8 oil sands, and other strategic unconventional 

9 fuels under section 369 of the Energy Policy 

10 Act of 2005 (42 U.S.C. 15927); 

11 (D) 7 percent for the Clean Coal Power 

12 Initiative under subtitle A of title IV of the En13 ergy Policy Act of 2005 (42 U.S.C. 15961 et 

14 seq.); 

15 (E) 6 percent for development of solar and 

16 wind technologies under section 812 of the En17 ergy Policy Act of 2005 (42 U.S.C. 16161); 

18 (F) 20 percent for renewable energy activi19 ties under section 931 of the Energy Policy Act 

20 of 2005 (42 U.S.C. 16231); 

21 (G) 2.5 percent to provide production in22 centives for cellulosic biofuels under section 942 

23 of the Energy Policy Act of 2005 (42 U.S.C. 

24 16251); 


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1 (H) 4 percent for the coal and related 

2 technologies program under section 962 of the 

3 Energy Policy Act of 2005 (42 U.S.C. 16292); 

4 (I) 2.5 percent for methane hydrate re5 search activities under the Methane Hydrate 

6 Research and Development Act of 2000 (30 

7 U.S.C. 2001 et seq.); 

8 (J) 7 percent to provide incentives for in9 novative technologies under title XVII of the 

10 Energy Policy Act of 2005 (42 U.S.C. 16511 et 

11 seq.); 

12 (K) 14 percent to provide grants for the 

13 production of advanced biofuels under section 

14 207 of the Energy Independence and Security 

15 Act of 2007 (42 U.S.C. 17022); 

16 (L) 2.5 percent for the photovoltaic dem17 onstration program under section 607 of the 

18 Energy Independence and Security Act of 2007 

19 (42 U.S.C. 17175); 

20 (M) 4 percent for activities for geothermal 

21 energy under subtitle B of title VI of the En22 ergy Independence and Security Act of 2007 

23 (42 U.S.C. 17191 et seq.); 

24 (N) 2.5 percent for marine and 

25 hydrokinetic renewable energy technologies 


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1 under subtitle C of title VI of the Energy Inde2 pendence and Security Act of 2007 (42 U.S.C. 

3 17211 et seq.); 

4 (O) 8 percent for energy storage competi5 tiveness activities under section 641 of the En6 ergy Independence and Security Act of 2007 

7 (42 U.S.C. 17231); 

8 (P) 6 percent for the smart grid tech9 nology research, development, and demonstra10 tion program under section 1304 of Energy 

11 Independence and Security Act of 2007 (42 

12 U.S.C. 17384); 

13 (Q) 5 percent for the domestic energy edu14 cation and workforce program under title II of 

15 this Act; and 

16 (R) 2 percent for renewable energy sources 

17 that supply base load power generation. 

18 (2) APPORTIONMENT OF EXCESS AMOUNTS.— 

19 Notwithstanding paragraph (1), any amounts allo20 cated to carry out a program or activity under that 

21 paragraph that are in excess of the amounts other22 wise authorized to be appropriated carry out that 

23 program or activity shall be reallocated proportion24 ally among the remaining activities and programs 

25 specified in paragraph (1). 


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1 Subtitle B—Nuclear 

2 SEC. 111. USE OF FUNDS FOR RECYCLING; NUCLEAR WASTE 

3 FUND BUDGET STATUS. 

4 Section 302 of the Nuclear Waste Policy Act of 1982 

5 (42 U.S.C. 10222) is amended— 

6 (1) in subsection (d), by striking ‘‘The Sec7 retary may’’ and inserting ‘‘Except as provided in 

8 subsection (f), the Secretary may’’; 

9 (2) in subsection (e), by adding at the end the 

10 following: 

11 ‘‘(7) BUDGET AUTHORITY.—The receipts and 

12 disbursements of the Waste Fund shall not be 

13 counted as new budget authority, outlays, receipts, 

14 deficits, or surplus for purposes of— 

15 ‘‘(A) the budget of the Federal Govern16 ment, as submitted by the President; 

17 ‘‘(B) the congressional budget; or 

18 ‘‘(C) the Balanced Budget and Emergency 

19 Deficit Control Act of 1985 (2 U.S.C. 900 et 

20 seq.).’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(f) RECYCLING.— 

23 ‘‘(1) IN GENERAL.—Amounts in the Waste 

24 Fund may be used by the Secretary to make grants 


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1 to or enter into long-term contracts with private-sec2 tor entities for the recycling of spent nuclear fuel. 

3 ‘‘(2) COMPETITIVE SELECTION.—Grants and 

4 contracts authorized under paragraph (1) shall be 

5 provided or awarded on the basis of a competitive 

6 bidding process that— 

7 ‘‘(A) maximizes the competitive efficiency 

8 of the projects to be funded; 

9 ‘‘(B) best serves the goal of reducing the 

10 quantity of waste requiring disposal under this 

11 Act; and 

12 ‘‘(C) ensures adequate protection against 

13 the proliferation of nuclear materials that could 

14 be used in the manufacture of nuclear weap15 ons.’’. 

16 SEC. 112. RULEMAKING FOR LICENSING OF SPENT NU17 CLEAR FUEL RECYCLING FACILITIES. 

18 (a) REQUIREMENT.—The Nuclear Regulatory Com19 mission shall, as expeditiously as practicable, but in no 

20 event later than 2 years after the date of enactment of 

21 this Act, complete a rulemaking establishing a process for 

22 the licensing by the Nuclear Regulatory Commission, 

23 under the Atomic Energy Act of 1954 (42 U.S.C. 2011 

24 et seq.), of facilities for the recycling of spent nuclear fuel. 


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1 (b) FUNDING.—Amounts in the Nuclear Waste Fund 

2 established by section 302(c) of the Nuclear Waste Policy 

3 Act of 1982 (42 U.S.C. 10222(c)) shall be made available 

4 to the Nuclear Regulatory Commission to cover the costs 

5 incurred in carrying out subsection (a). 

6 SEC. 113. WASTE CONFIDENCE. 

7 The Nuclear Regulatory Commission may not deny 

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

9 under the Atomic Energy Act of 1954 (42 U.S.C. 2011 

10 et seq.) on the grounds that sufficient capacity does not 

11 exist, or will not become available on a timely basis, for 

12 the disposal of spent nuclear fuel or high-level radioactive 

13 waste from the facility for which the license, permit, or 

14 other authorization is sought. 

15 SEC. 114. DOMESTIC MANUFACTURING BASE FOR NUCLEAR 

16 COMPONENTS AND EQUIPMENT. 

17 (a) PURPOSES.—The purposes of this section are— 

18 (1) to increase the competitiveness of the 

19 United States nuclear energy product and service in20 dustries; 

21 (2) to identify the stimulus or incentives nec22 essary to cause United States manufacturers of nu23 clear energy products to expand manufacturing ca24 pacity; 


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1 (3) to facilitate the export of United States nu2 clear energy products and services; 

3 (4) to reduce the trade deficit of the United 

4 States through the export of United States nuclear 

5 energy products and services; 

6 (5) to retain and create nuclear energy manu7 facturing and related service jobs in the United 

8 States; 

9 (6) to integrate into the foreign policy of the 

10 United States, in a manner consistent with the in11 terests of the United States, the objectives described 

12 in paragraphs (1) through (4); and 

13 (7) to authorize funds for increasing United 

14 States capacity to manufacture nuclear energy prod15 ucts and supply nuclear energy services. 

16 (b) ESTABLISHMENT.— 

17 (1) IN GENERAL.—There is established an 

18 interagency working group (referred to in this sec19 tion as the ‘‘Working Group’’). 

20 (2) COMPOSITION.—The Working Group shall 

21 be composed of— 

22 (A) the Secretary of Energy (or a designee 

23 of the Secretary of Energy), who shall serve as 

24 Chairperson of the Working Group; and 


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1 (B) such representatives of Federal agen2 cies as the President determines to be appro3 priate, including representatives of— 

4 (i) the Department of Energy; 

5 (ii) the Department of Commerce; 

6 (iii) the Department of Defense; 

7 (iv) the Department of Treasury; 

8 (v) the Department of State; 

9 (vi) the Environmental Protection 

10 Agency; 

11 (vii) the United States Agency for 

12 International Development; 

13 (viii) the Export-Import Bank of the 

14 United States; 

15 (ix) the Trade and Development 

16 Agency; 

17 (x) the Small Business Administra18 tion; and 

19 (xi) the Office of the United States 

20 Trade Representative. 

21 (C) PERSONNEL AND SERVICES.—The Sec22 retary of Energy and the heads of other Fed23 eral agencies represented on the Working 

24 Group shall detail such personnel and furnish 

25 such services to the Working Group, with or 


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1 without reimbursement, as are necessary to 

2 carry out the duties of the Working Group. 

3 (c) DUTIES.— 

4 (1) RECOMMENDATIONS.— 

5 (A) IN GENERAL.—The Working Group, in 

6 consultation with representative industry orga7 nizations and manufacturers of nuclear energy 

8 products, shall make recommendations in ac9 cordance with this paragraph to coordinate the 

10 actions and programs of the Federal Govern11 ment in order to promote— 

12 (i) the increasing of domestic manu13 facturing capacity; and 

14 (ii) the export of domestic nuclear en15 ergy products and services. 

16 (B) ACTIONS, MECHANISMS, AND INITIA17 TIVES.—Not later than 180 days after the date 

18 of enactment of this Act, the Working Group 

19 shall identify— 

20 (i) the actions necessary to promote 

21 the safe development and application in 

22 foreign countries of nuclear energy prod23 ucts and services— 

24 (I) to increase electricity genera25 tion from nuclear energy sources 


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1 through development of new genera2 tion facilities; 

3 (II) to improve the efficiency, 

4 safety, and reliability of existing nu5 clear generating facilities through 

6 modifications; and 

7 (III) to enhance the safe treat8 ment, handling, storage, and disposal 

9 of used nuclear fuel; 

10 (ii) mechanisms (including tax stim11 ulus for investment, loans and loan guar12 antees, and grants) necessary for United 

13 States companies to increase— 

14 (I) the capacity of the companies 

15 to produce or provide nuclear energy 

16 products and services; and 

17 (II) the exports of the companies 

18 of nuclear energy products and serv19 ices; and 

20 (iii) administrative or legislative ini21 tiatives necessary— 

22 (I) to encourage United States 

23 companies to increase the manufac24 turing capacity of the companies for 

25 nuclear energy products; 


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1 (II) to provide technical and fi2 nancial assistance and support to 

3 small and mid-sized businesses to es4 tablish quality assurance programs in 

5 accordance with domestic and inter6 national nuclear quality assurance 

7 code requirements; 

8 (III) to encourage, through fi9 nancial incentives, private sector cap10 ital investment to expand manufac11 turing capacity; and 

12 (IV) to provide technical assist13 ance and financial incentives to small 

14 and mid-sized businesses to develop 

15 the workforce necessary to increase 

16 manufacturing capacity and meet do17 mestic and international nuclear qual18 ity assurance code requirements. 

19 (C) REPORT.—Not later than 270 days 

20 after the date of enactment of this Act, the 

21 Working Group shall submit to Congress a re22 port that describes the findings and rec23 ommendations of the Working Group under this 

24 paragraph, including any recommendations of 


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1 the Working Group for new legislative author2 ity, as appropriate. 

3 (2) TRADE ASSISTANCE.—The Working Group 

4 shall encourage the agencies represented on the 

5 Working Group— 

6 (A) to provide technical training and edu7 cation for international development personnel 

8 and local users in the home countries of the 

9 personnel and users; 

10 (B) to provide financial and technical as11 sistance to nonprofit institutions that support 

12 the marketing and export efforts of domestic 

13 companies that provide nuclear energy products 

14 and services; 

15 (C) to develop nuclear energy projects in 

16 foreign countries; 

17 (D) to provide technical assistance and 

18 training materials to loan officers of the World 

19 Bank, international lending institutions, com20 mercial and energy attache ́s at embassies of the 

21 United States, and other appropriate personnel 

22 in order to provide information about nuclear 

23 energy products and services to foreign govern24 ments or other potential project sponsors; 


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1 (E) to support, through financial incen2 tives, private-sector efforts to commercialize 

3 and export nuclear energy products and services 

4 in accordance with the subsidy codes of the 

5 World Trade Organization; and 

6 (F) to augment budgets for trade and de7 velopment programs in order to support 

8 prefeasibility or feasibility studies for projects 

9 that use nuclear energy products and services. 

10 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

11 authorized to be appropriated to the Secretary of Energy 

12 for use in carrying out this section $20,000,000 for the 

13 period of fiscal years 2009 and 2010. 

14 Subtitle C—Synthetic and 

15 Alternative Energy 

16 SEC. 121. REPEAL OF FEDERAL PURCHASING REQUIRE17 MENT. 

18 Section 526 of the Energy Independence and Security 

19 Act of 2007 (42 U.S.C. 17142) is repealed. 

20 SEC. 122. PROCUREMENT OF FUEL DERIVED FROM COAL, 

21 OIL SHALE, AND OIL SANDS. 

22 Section 2922d(d) of title 10, United States Code, is 

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

24 25’’. 


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1 SEC. 123. EXPANDED DEFINITION OF BIOMASS FOR CER2 TAIN PROGRAMS. 

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

4 7545(o)(1)) is amended by striking subparagraph (I) and 

5 inserting the following: 

6 ‘‘(I) RENEWABLE BIOMASS.—The 

7 term ‘renewable biomass’ has the 

8 meaning given the term ‘biomass’ in 

9 section 203(b) of the Energy Policy 

10 Act of 2005 (42 U.S.C. 15852(b)).’’. 

11 Subtitle D—Renewable 

12 Technologies 

13 SEC. 131. STEWARDSHIP END-RESULT CONTRACTING 

14 PROJECTS. 

15 Section 8 of the Cooperative Forestry Assistance Act 

16 of 1978 (16 U.S.C. 2104) is amended— 

17 (1) by redesignating subsection (h) as sub18 section (j) and moving that subsection so as to ap19 pear at the end of the section; and 

20 (2) by inserting after subsection (g) the fol21 lowing: 

22 ‘‘(h) CANCELLATION OR TERMINATION COSTS.— 

23 ‘‘(1) IN GENERAL.—Notwithstanding section 

24 304B of the Federal Property and Administrative 

25 Services Act of 1949 (41 U.S.C. 254c), the Sec26 retary is not required to obligate funds to cover the 


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1 cost of cancelling a Forest Service stewardship 

2 multiyear contract under section 347 of the Depart3 ment of the Interior and Related Agencies Appro4 priations Act, 1999 (16 U.S.C. 2104 note; section 

5 101(e) of division A of Public Law 105–277) until 

6 the contract is cancelled. 

7 ‘‘(2) FUNDING SOURCES.—The costs of any 

8 cancellation or termination of a multiyear steward9 ship contract described in paragraph (1) may be 

10 paid from— 

11 ‘‘(A) appropriations originally made avail12 able for the performance of the contract con13 cerned; 

14 ‘‘(B) appropriations currently available for 

15 procurement of the type of service concerned, 

16 and not otherwise obligated; or 

17 ‘‘(C) funds appropriated for payments for 

18 that performance or procurement. 

19 ‘‘(3) ANTI-DEFICIENCY ACT VIOLATIONS.—In a 

20 case in which payment or obligation of funds under 

21 this subsection would constitute a violation of sec22 tion 1341 of title 31, United States Code (commonly 

23 known as the ‘Anti-Deficiency Act’), the Secretary 

24 may— 

25 ‘‘(A) seek a supplemental appropriation; or 


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1 ‘‘(B) request funds from the permanent 

2 judgment appropriation established pursuant to 

3 section 1304 of title 31, United States Code.’’. 

4 TITLE II—DOMESTIC ENERGY 

5 EDUCATION AND WORKFORCE 

6 SEC. 201. SHORT TITLE. 

7 This title may be cited as the ‘‘Strengthening Amer8 ica’s Science and Technology Education Act’’. 

9 SEC. 202. FINDINGS AND POLICY. 

10 (a) FINDINGS.—Congress finds that the science and 

11 technology programs that produce the human capital 

12 needed for the energy and mineral resources security of 

13 the United States— 

14 (1) are national assets; and 

15 (2) should be assisted with Federal funds to en16 sure the continued success and existence of the pro17 grams. 

18 (b) POLICY.—It is the policy of the United States to 

19 maintain the human capital needed to preserve and foster 

20 the economic, energy, and mineral resources security of 

21 the United States. 

22 SEC. 203. DEFINITIONS. 

23 In this title: 

24 (1) INSTITUTION OF HIGHER EDUCATION.—The 

25 term ‘‘institution of higher education’’ has the 


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1 meaning given the term in section 102 of the Higher 

2 Education Act of 1965 (20 U.S.C. 1002). 

3 (2) RECOGNIZED PROGRAM.—The term ‘‘recog4 nized program’’ means a program of study at an in5 stitution of higher education that— 

6 (A)(i) is an engineering program for en7 ergy, petroleum, chemical, mining, nuclear, or 

8 mineral engineering that is accredited as of the 

9 date of enactment of this Act; 

10 (ii) is a geological engineering or geo11 physical engineering program that— 

12 (I) is accredited as of the date of en13 actment of this Act; and 

14 (II) is focused on petroleum or nat15 ural gas production, the production of min16 eral resources, or the development of per17 manent underground workings, as dem18 onstrated by the curriculum and the exper19 tise of the faculty of the program; or 

20 (iii) is a program in geology or geophysics 

21 that— 

22 (I) the Secretary determines to be ac23 ceptable under this title; and 

24 (II) has undergraduate and graduate 

25 programs of research and education in the 


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1 geology and geophysics of conventional or 

2 nonconventional energy, geothermal en3 ergy, or metallic and nonmetallic deposits, 

4 including industrial minerals, sand and 

5 gravel deposits; and 

6 (B)(i) in the case of an engineering program, 

7 meets the specific program criteria established by 

8 the 1 or more applicable member societies of ABET, 

9 Inc.; or 

10 (ii) in the case of a geology or geophysics pro11 gram, meets the appropriate criteria established by 

12 the Secretary. 

13 (3) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Energy. 

15 SEC. 204. MAINTAINING SCIENCE AND TECHNOLOGY EDU16 CATION PROGRAMS. 

17 (a) IN GENERAL.—Not later than 1 year after the 

18 date of enactment of this Act, the Secretary shall issue 

19 such regulations as are necessary to carry out this title. 

20 (b) RESEARCH GRANTS.—In support of the policy de21 scribed in section 202(b), the Secretary shall provide re22 search grants to institutions of higher education and other 

23 institutions to assist in maintaining recognized programs 

24 in education and research. 

25 (c) REQUIREMENTS.— 


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1 (1) RESEARCH.—Research funded at recognized 

2 programs by grants under this section shall include 

3 studies and research— 

4 (A) to enhance basic science and engineer5 ing; 

6 (B) to provide proof of scientific or engi7 neering concepts; and 

8 (C) to determine scientific or engineering 

9 feasibility. 

10 (2) MAINTENANCE OF PROGRAM.—As a condi11 tion on receipt of a grant under this section, each 

12 institution of higher education or other institution 

13 that receives a grant shall— 

14 (A) maintain the recognized program for 

15 which the grant is provided for not less than 10 

16 years after the date of the last receipt of a 

17 grant; and 

18 (B) take steps described in the application 

19 for funding the grant of the institution to in20 crease the number of undergraduate students 

21 enrolled in and completing the recognized pro22 grams. 

23 (d) CONSORTIA.— 

24 (1) IN GENERAL.—Subject to paragraph (2), 

25 the Secretary may make grants available under this 


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1 section to consortia of institutions to conduct 

2 projects of broad application that could not other3 wise be undertaken, including national and regional 

4 projects in geology or geophysics and engineering as 

5 applied to petroleum, geothermal, alternative energy, 

6 renewable energy, mining, nuclear, and mineral 

7 processing or beneficiation. 

8 (2) REQUIREMENT.—Grants made to a consor9 tium under paragraph (1) shall only be provided to 

10 a single eligible institution with a recognized pro11 gram, which shall be responsible for distribution, 

12 monitoring, and reporting on the activities of the 

13 consortium as required by the Secretary. 

14 SEC. 205. GRANTS FOR SCHOLARSHIPS AND FELLOWSHIPS. 

15 (a) IN GENERAL.—The Secretary shall provide 

16 grants to eligible institutions of higher education for the 

17 purpose of providing merit-based scholarships for under18 graduate education, graduate fellowships, and 

19 postdoctoral fellowships at the institutions. 

20 (b) ELIGIBILITY.— 

21 (1) IN GENERAL.—To be eligible to receive a 

22 grant under this section, an institution of higher 

23 education shall agree— 

24 (A) to enforce the requirements of this sec25 tion for scholarship or fellowship students; and 


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1 (B) to return to the Secretary any funds 

2 recovered from an individual under subsection 

3 (d)(2)(B). 

4 (2) APPLICATION.—An institution of higher 

5 education that seeks a grant under this section shall 

6 describe, in the application of the institution of high7 er education to the Secretary— 

8 (A) the number of students that would be 

9 awarded scholarships or fellowships if the appli10 cation is approved; 

11 (B) the manner in which the students 

12 would be selected; and 

13 (C) the manner in which the institution of 

14 higher education would enforce this section. 

15 (c) PREFERENCE.—Scholarships and fellowships 

16 funded through grants under this section shall give a pref17 erence for veterans and service members who have received 

18 or will receive the Afghanistan Campaign Medal or the 

19 Iraq Campaign Medal as authorized by Public Law 108- 

20 234 (118 Stat. 655), and Executive Order 13363 (69 Fed. 

21 Reg. 70175; relating to establishing the Afghanistan and 

22 Iraq Campaign Medals). 

23 (d) REQUIREMENTS.— 


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1 (1) IN GENERAL.—To receive a scholarship or 

2 fellowship funded through a grant under this sec3 tion, an individual shall— 

4 (A) be a lawful permanent resident or cit5 izen of the United States; 

6 (B) agree in writing to complete a course 

7 of studies and receive a degree in petroleum, 

8 chemical, mining, geological, geophysical, nu9 clear, or mineral engineering, petroleum geol10 ogy, geothermal geology, mining and economic 

11 geology, petroleum and mining geophysics, min12 eral economics, or alternative or renewable en13 ergy in a recognized program; and 

14 (C) agree to notify, through the institution 

15 of higher education of the individual, the Sec16 retary— 

17 (i) of the progress of the individual to18 wards completion of the course of studies; 

19 and 

20 (ii) not later than 30 days after the 

21 date on which the individual is awarded a 

22 degree from the institution of higher edu23 cation. 

24 (2) RETENTION.— 


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1 (A) IN GENERAL.—To retain a scholarship 

2 or fellowship funded through a grant under this 

3 section, an individual shall— 

4 (i) continue in 1 of the course of stud5 ies described in paragraph (1)(B); 

6 (ii) remain in good academic standing 

7 and demonstrate satisfactory academic 

8 progress, as determined by the institution 

9 of higher education; and 

10 (iii) allow for reinstatement of the 

11 scholarship or fellowship by the Secretary, 

12 upon the recommendation of the institution 

13 of higher education. 

14 (B) RECOVERY OF FUNDS.—An institution 

15 of higher education may recover remaining 

16 funds from a scholarship or fellowship funded 

17 by a grant under this section from an individual 

18 who fails to complete any of the courses of 

19 study described in paragraph (1)(B) after no20 tice that completion is a requirement of contin21 ued funding. 

22 (C) CHANGE OF COURSE.—An individual 

23 receiving a scholarship or graduate fellowship 

24 funded by a grant under this section may 

25 change courses of study and continue receiving 


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1 funding if the individual remains within a 

2 course of study described in paragraph (1)(B). 

3 SEC. 206. USE OF GRANT FUNDS BY INSTITUTIONS. 

4 (a) IN GENERAL.—Each institution of higher edu5 cation that receives a grant under this title shall— 

6 (1) have an officer appointed by the governing 

7 authority of the institution of higher education who 

8 shall— 

9 (A) receive and account for all grant funds 

10 received under this title; and 

11 (B) make an annual report to the Sec12 retary on or before the first day of September 

13 of each year, that— 

14 (i) describes work accomplished and 

15 the status of projects underway; and 

16 (ii) includes a detailed statement of 

17 the grant funds received under this title 

18 during the preceding fiscal year and of the 

19 disbursement of the grant funds on sched20 ules prescribed by the Secretary; 

21 (2) submit to the Secretary detailed reports 

22 about projects completed, in progress, or planned 

23 with grants made under this title. 

24 (b) MATCHING FUNDS.— 


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1 (1) IN GENERAL.—Grants made under this title 

2 for basic science and engineering studies and re3 search, as determined by the Secretary, shall not re4 quire additional participation by funding partners. 

5 (2) OTHER GRANTS.—All other grants for stud6 ies made under this title— 

7 (A) shall include participation by industry; 

8 and 

9 (B) may include funding from other Fed10 eral agencies. 

11 (c) PROHIBITIONS.— 

12 (1) IN GENERAL.—No funds made available 

13 under this title may be applied to the acquisition by 

14 purchase or lease of any land or interests in land, 

15 or the rental, purchase, construction, preservation, 

16 or repair of any building. 

17 (2) MAINTENANCE.—With the express approval 

18 of the Secretary, funding made available under this 

19 title may be used for proposals to maintain or up20 grade existing laboratories and laboratory equip21 ment, but not for any university overhead expenses. 

22 (d) PUBLIC AVAILABILITY.— 

23 (1) IN GENERAL.—All uses, products, proc24 esses, and other developments resulting from any re25 search, demonstration, or experiment funded in 


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1 whole or in part under this title shall be made avail2 able promptly to the general public, subject to— 

3 (A) any exceptions or limitations that the 

4 Secretary may find necessary in the interest of 

5 national security; and 

6 (B) applicable Federal patent law. 

7 (2) REPORTS.—On not less than an annual 

8 basis, the Secretary shall make available to the pub9 lic reports submitted under subsection (a)(2). 

10 SEC. 207. CAREER TECHNICAL AND COMMUNITY COLLEGE 

11 EDUCATION. 

12 (a) IN GENERAL.—The Secretary shall provide 

13 grants for the operation or development of programs in 

14 mining engineering technology, petroleum engineering 

15 technology, industrial engineering technology, industrial 

16 technology, alternative and renewable energy technology, 

17 electric power technology, extractive resources technology, 

18 and diesel power technology, construction, retrofitting, 

19 and design that— 

20 (1) are focused on technology and the use of 

21 technology in energy and mineral production and re22 lated maintenance, operational safety, or energy in23 frastructure protection and security; 

24 (2) prepare students for advanced or super25 visory roles in the mining industry, the petroleum inVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 dustry, or alternative and renewable energy industry; 

2 and 

3 (3) grant an associate degree or a baccalaureate 

4 degree. 

5 (b) VOCATIONAL PROGRAMS.— 

6 (1) IN GENERAL.—The Secretary shall provide 

7 grants for the operation or development of pro8 grams, including joint apprenticeship programs au9 thorized by Federal law, programs at institutions of 

10 higher education, secondary school vocational edu11 cation programs, or career academy programs, that 

12 provide training for individuals seeking to enter the 

13 geothermal, petroleum, mining, mineral mining, or 

14 alternative and renewable energy industries. 

15 (2) PROGRESSIVE CAREER PATH.—The Sec16 retary shall give particular consideration to sup17 porting programs that provide training for a pro18 gressive career path in the industries described in 

19 paragraph (1). 

20 (3) ESSENTIAL SUPPORT.—The Secretary may 

21 provide grants to programs that grant degrees or 

22 certificates in programs that provide training in dis23 ciplines that provide essential support for the indus24 tries described in paragraph (1) or subsection (c), 


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1 even if the programs are not purposely designed to 

2 provide personnel for those industries. 

3 (c) OTHER PROGRAMS.—The Secretary shall provide 

4 grants for the operation or development of programs of 

5 career technical education at a secondary school, offered 

6 cooperatively with a community college in 1 of the indus7 trial sectors of— 

8 (1) agriculture, forestry, or fisheries; 

9 (2) utilities, particularly power transmission 

10 and pipeline construction and operations; 

11 (3) maintenance and maintenance logistics; 

12 (4) construction; 

13 (5) manufacturing; 

14 (6) transportation and warehousing; 

15 (7) industrial engineering and technology; or 

16 (8) energy and natural resources. 

17 (d) REQUIREMENTS.—As a condition of receiving a 

18 grant under this section, an institution of higher education 

19 or other entity shall— 

20 (1) demonstrate to the satisfaction of the Sec21 retary— 

22 (A) an institutional commitment to career 

23 technical education; and 

24 (B) that the institution of higher education 

25 or entity has received or will receive industry 


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1 cooperation in the form of equipment, employee 

2 time, or donations of funds to support the ac3 tivities that are within the scope of this section; 

4 and 

5 (2) agree to maintain the programs for which 

6 the grant is sought for a period of 10 years begin7 ning on the date of receipt of the funding, unless the 

8 Secretary finds that a shorter period of time is ap9 propriate for the local labor market or is required by 

10 State authorities. 

11 (e) USE OF FUNDS FOR PROGRAM OPERATION.— 

12 (1) INITIAL USE.—An institution of higher edu13 cation or other entity that receives a grant under 

14 this section for the operation of a program may ini15 tially only use the funds to enhance the instructional 

16 skills of teachers through additional training and 

17 necessary resources. 

18 (2) EQUIPMENT.—After teachers have achieved 

19 enhanced skills and meet an appropriate standard as 

20 agreed to by local authorities in consultation with 

21 the Secretary, grant funds received under this sec22 tion may be used to purchase classroom and labora23 tory equipment. 

24 (f) USE OF FUNDS FOR PROGRAM DEVELOPMENT.— 

25 An institution of higher education or other entity that reVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 ceives a grant under this section for the development of 

2 a new program shall use the grant— 

3 (1) to support the purchase of classroom and 

4 laboratory equipment; and 

5 (2) to supplement teacher salaries to encourage 

6 the hiring of highly qualified teachers. 

7 (g) OTHER FUNDING.—An institution of higher edu8 cation or other entity that receives a grant under this sec9 tion may combine the grant funds with State funds, and 

10 other Federal funds if allowed by law, to carry out pro11 grams described in this section, if the use of the funds 

12 is reported to the Secretary not less than annually. 

13 SEC. 208. FUNDING. 

14 The Secretary shall use amounts from the American 

15 Renewable and Alternative Energy Trust Fund under sec16 tion 101(b)(1)(Q) to carry out this title for each of fiscal 

17 years 2009 through 2019, to remain available until ex18 pended. 

19 TITLE III—DOMESTIC 

20 PRODUCTION 

21 Subtitle A—Outer Continental 

22 Shelf 

23 SEC. 301. DISPOSITION OF RECEIPTS. 

24 (a) DEFINITIONS.—In this section: 


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1 (1) ADJACENT STATE.—The term ‘‘Adjacent 

2 State’’ means a coastal State that— 

3 (A) has a coastal seaward boundary that is 

4 within a 100 statute miles distance of the geo5 graphical center of a leased tract in an outer 

6 Continental Shelf planning area; and 

7 (B) as of January 1, 2000, had no oil or 

8 natural gas production within a 100 statute 

9 miles distance of the geographical center of a 

10 leased tract in an outer Continental Shelf plan11 ning area. 

12 (2) COASTAL POLITICAL SUBDIVISION.—The 

13 term ‘‘coastal political subdivision’’, with respect to 

14 an Adjacent State, means a county-equivalent sub15 division of the Adjacent State all or part of which— 

16 (A) lies within the coastal zone (as defined 

17 in section 304(1) of the Coastal Zone Manage18 ment Act of 1972 (16 U.S.C. 1453(1)); and 

19 (B) the closest point of which is not more 

20 than 100 statute miles from the geographical 

21 center of any leased tract. 

22 (3) DISTANCE.—The term ‘‘distance’’ means 

23 minimum great circle distance. 

24 (4) LEASED TRACT.—The term ‘‘leased tract’’ 

25 means a tract leased under the Outer Continental 


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1 Shelf Lands Act (43 U.S.C. 1331 et seq.) for the 

2 purpose of drilling for, developing, and producing oil 

3 or natural gas resources. 

4 (5) QUALIFIED OUTER CONTINENTAL SHELF

5 RECEIPTS.— 

6 (A) IN GENERAL.—The term ‘‘qualified 

7 outer Continental Shelf receipts’’ means all 

8 amounts received by the United States in the 

9 fiscal year immediately following the fiscal year 

10 during which this Act is enacted and each fiscal 

11 year thereafter— 

12 (i) from each leased tract or portion 

13 of a leased tract, the geographical center of 

14 which lies within a distance of 100 statute 

15 miles from any part of the coastline of an 

16 Adjacent State, including bonus bids, 

17 rents, royalties (including the value of roy18 alties taken in kind), net profit share pay19 ments, fees, and related late payment in20 terest; and 

21 (ii) from leases entered into on or 

22 after January 1, 2000. 

23 (B) EXCLUSIONS.—The term ‘‘qualified 

24 outer Continental Shelf receipts’’ does not in25 clude— 


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1 (i) receipts from the forfeiture of a 

2 bond or other surety securing obligations 

3 other than royalties, or civil penalties; or 

4 (ii) receipts generated from leases 

5 subject to section 8(g) of the Outer Conti6 nental Shelf Lands Act (43 U.S.C. 

7 1337(g)). 

8 (6) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of the Interior. 

10 (b) DISPOSITION OF QUALIFIED OUTER CONTI11 NENTAL SHELF RECEIPTS FROM OUTER CONTINENTAL

12 SHELF OIL AND GAS LEASING PLANNING AREAS.— 

13 (1) IN GENERAL.—Notwithstanding section 9 of 

14 the Outer Continental Shelf Lands Act (43 U.S.C. 

15 1338) and subject to the other provisions of this 

16 subsection, for each applicable fiscal year, the Sec17 retary of the Treasury shall deposit— 

18 (A) 62.5 percent of qualified outer Conti19 nental Shelf revenues in the miscellaneous re20 ceipts of the Treasury; and 

21 (B) 37.5 percent of qualified outer Conti22 nental Shelf revenues in a special account in 

23 the Treasury that the Secretary shall disburse 

24 to— 

25 (i) Adjacent States; and 


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1 (ii) certain coastal political subdivi2 sions of the Adjacent States. 

3 (2) ALLOCATION AMONG ADJACENT STATES

4 AND COASTAL POLITICAL SUBDIVISIONS.— 

5 (A) ALLOCATION AMONG ADJACENT

6 STATES.— 

7 (i) IN GENERAL.—Effective for the 

8 fiscal year immediately following the fiscal 

9 year in which this Act is enacted and each 

10 fiscal year thereafter, the amount made 

11 available under paragraph (1)(B) shall be 

12 allocated by the Secretary to each Adjacent 

13 State in amounts (based on a formula es14 tablished by the Secretary by regulation) 

15 that are inversely proportional to the re16 spective distances between the point on the 

17 coastline of each Adjacent State that is 

18 closest to the geographical center of the 

19 applicable leased tract and the geo20 graphical center of the leased tract. 

21 (ii) SINGLE ADJACENT STATE.—If 

22 only 1 Adjacent State is within 100 miles 

23 of the geographical center of a lease de24 scribed in clause (i), the entire amount 

25 made available under paragraph (1)(B) 


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1 from the lease shall be allocated to the Ad2 jacent State. 

3 (B) ALLOCATION AMONG COASTAL POLIT4 ICAL SUBDIVISIONS OF ADJACENT STATES.— 

5 (i) IN GENERAL.—The Secretary shall 

6 pay 40 percent of the allocable share of 

7 each Adjacent State (as determined under 

8 subparagraph (A)) to certain coastal polit9 ical subdivisions of the Adjacent State. 

10 (ii) ALLOCATION.— 

11 (I) IN GENERAL.—For each 

12 leased tract that is used to calculate 

13 the allocation of an Adjacent State, 

14 the Secretary shall allocate funds to 

15 the coastal political subdivisions that 

16 are within 100 miles of the geo17 graphical center of the leased tract 

18 based on the relative distance of the 

19 coastal political subdivisions from the 

20 leased tract. 

21 (II) DISTANCE.—For each coast22 al political subdivision described in 

23 subclause (I), the Secretary shall de24 termine the distance between— 


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1 (aa) the point on the coastal 

2 political subdivision coastline 

3 closest to the geographical center 

4 of the leased tract; and 

5 (bb) the geographical center 

6 of the tract. 

7 (III) INVERSELY PROPORTIONAL

8 ALLOCATION.—The Secretary shall di9 vide and allocate the qualified outer 

10 Continental Shelf revenues derived 

11 from the leased tract among the 

12 coastal political subdivisions described 

13 in subclause (I) in amounts that are 

14 inversely proportional to the distances 

15 determined under subclause (II). 

16 (3) TIMING.—The amounts required to be de17 posited under paragraph (1)(B) for the applicable 

18 fiscal year shall be made available in accordance 

19 with paragraph (1)(B) during the first 90 days of 

20 the fiscal year immediately following the applicable 

21 fiscal year. 

22 (4) AUTHORIZED USES.—Each Adjacent State 

23 and coastal political subdivision shall use all 

24 amounts received under paragraph (2) in accordance 


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1 with all applicable Federal and State laws, only for 

2 1 or more of the following purposes: 

3 (A) Projects and activities for the purposes 

4 of coastal protection (including conservation), 

5 coastal restoration, storm protection, and infra6 structure directly affected by coastal wetland 

7 and tundra losses. 

8 (B) Mitigation of damage to fish, wildlife, 

9 or natural resources. 

10 (C) Implementation of a federally approved 

11 marine, coastal, or comprehensive conservation 

12 management plan. 

13 (D) Mitigation of the impact of outer Con14 tinental Shelf activities through the funding of 

15 onshore infrastructure projects. 

16 (E) Any other purpose authorized for the 

17 use of those amounts under State law. 

18 (5) LIMITATIONS ON AMOUNT OF DISTRIBUTED

19 QUALIFIED OUTER CONTINENTAL SHELF RE20 CEIPTS.—The total amount of qualified outer Conti21 nental Shelf receipts made available under para22 graph (1)(B) to an Adjacent State and coastal polit23 ical subdivisions of the Adjacent State shall not ex24 ceed $500,000,000 for each fiscal year (in 2008 dol25 lars), as adjusted for inflation. 


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1 (6) AMERICAN RENEWABLE AND ALTERNATIVE

2 ENERGY TRUST FUND.—Of the amounts of qualified 

3 outer Continental Shelf revenues described in para4 graph (1)(A), 90 percent of the amounts shall be de5 posited in the American Renewable and Alternative 

6 Energy Trust Fund established by section 101. 

7 SEC. 302. LEASING PROGRAM CONSIDERED APPROVED. 

8 (a) IN GENERAL.—The Draft Proposed Outer Conti9 nental Shelf Oil and Gas Leasing Program 2010-2015 

10 issued by the Secretary of the Interior (referred to in this 

11 section as the ‘‘Secretary’’) under section 18 of the Outer 

12 Continental Shelf Lands Act (43 U.S.C. 1344) is consid13 ered to have been approved by the Secretary as a final 

14 oil and gas leasing program under that section. 

15 (b) COMPLETION AND REVIEW OF ENVIRONMENTAL

16 IMPACT STATEMENTS.— 

17 (1) COMPLETION.— 

18 (A) IN GENERAL.—Notwithstanding any 

19 other provision of law, each review carried out 

20 in accordance with the National Environmental 

21 Policy Act of 1969 (42 U.S.C. 4321 et seq.) for 

22 the program described in subsection (a) shall be 

23 completed not later than 270 days after the 

24 date of enactment of this Act. 


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1 (B) FAILURE TO COMPLETE REVIEW.—If a 

2 review described in subparagraph (A) has not 

3 been completed for an action subject to the Na4 tional Environmental Policy Act of 1969 (42 

5 U.S.C. 4321 et seq.) by the date specified in 

6 subparagraph (A)— 

7 (i) the action shall be considered to 

8 have no significant impact to the human 

9 environment for purposes of the Act (42 

10 U.S.C. 4321 et seq.); and 

11 (ii) that classification shall be consid12 ered to be a final agency action. 

13 (2) LEAD AGENCY.—The lead agency for a re14 view of an action under this subsection shall be the 

15 Federal agency to which funds are made available 

16 for the action. 

17 (3) REVIEW.— 

18 (A) JUDICIAL REVIEW.— 

19 (i) IN GENERAL.—Judicial review of 

20 the final agency decision after exhaustion 

21 of administrative remedies shall lie with 

22 the United States Court of Appeals for the 

23 District of Columbia Circuit. 

24 (ii) ADMINISTRATIVE RECORD.—An 

25 appeal to the court described in clause (i) 


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1 shall be based only on the administrative 

2 record. 

3 (iii) PENDENCY OF JUDICIAL RE4 VIEW.—After an agency has made a final 

5 decision with respect to a review carried 

6 out under this subsection, the decision 

7 shall be effective during the course of any 

8 subsequent appeal to a court described in 

9 clause (i). 

10 (B) CIVIL ACTION.—Each civil action cov11 ered by this subsection shall be considered to 

12 arise under the laws of the United States. 

13 SEC. 303. OUTER CONTINENTAL SHELF LEASE SALES. 

14 (a) REQUIREMENT TO CONDUCT LEASE SALES.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), not later than 1 year after the date of en17 actment of this Act and annually thereafter, the Sec18 retary of the Interior (referred to in this section as 

19 the ‘‘Secretary’’) shall conduct at least 1 lease sale 

20 in an Atlantic Planning Area, 1 lease sale in the Pa21 cific Planning Area, 1 lease sale in the Alaska Plan22 ning Area, and 3 lease sales in a Gulf of Mexico 

23 Planning Area for which the Secretary determines 

24 that there is a commercial interest in purchasing 


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1 Federal oil and gas leases for production on the 

2 outer Continental Shelf. 

3 (2) SUBSEQUENT DETERMINATIONS AND

4 SALES.—If the Secretary determines that there is 

5 not a commercial interest in purchasing Federal oil 

6 and gas leases for production on the outer Conti7 nental Shelf in a planning area under this sub8 section, not later than 2 years after the date of en9 actment of the determination and every 2 years 

10 thereafter, the Secretary shall— 

11 (A) determine whether there is a commer12 cial interest in purchasing Federal oil and gas 

13 leases for production on the outer Continental 

14 Shelf in the planning area; and 

15 (B) if the Secretary determines that there 

16 is a commercial interest described in subpara17 graph (A), conduct a lease sale in the planning 

18 area. 

19 (b) LEASING PLAN.—Any areas made available for 

20 leasing under subsection (a) shall be offered for lease 

21 under this section notwithstanding the omission of any of 

22 the applicable area from the applicable 5-year plan devel23 oped by the Secretary pursuant to section 18 of the Outer 

24 Continental Shelf Lands Act (43 U.S.C. 1344). 


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1 SEC. 304. REPEAL OF THE GULF OF MEXICO ENERGY SECU2 RITY ACT OF 2006. 

3 The Gulf of Mexico Energy Security Act of 2006 (43 

4 U.S.C. 1331 note; Public Law 109–432) is repealed. 

5 Subtitle B—Arctic National Wildlife 

6 Refuge 

7 SEC. 331. SHORT TITLE. 

8 This subtitle may be cited as the ‘‘American Energy 

9 Independence and Price Reduction Act’’. 

10 SEC. 332. DEFINITIONS. 

11 In this subtitle: 

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

13 Plain’’ means the area described in appendix I to 

14 part 37 of title 50, Code of Federal Regulations, as 

15 in effect on July 14, 2008, popularly known as the 

16 ‘‘Coastal Plain of the Arctic National Wildlife Ref17 uge’’. 

18 (2) FEDERAL AGREEMENT.—The term ‘‘Fed19 eral Agreement’’ means the Federal Agreement and 

20 Grant Right-of-Way for the Trans-Alaska Pipeline 

21 issued on January 23, 1974, in accordance with sec22 tion 28 of the Mineral Leasing Act (30 U.S.C. 185) 

23 and the Trans-Alaska Pipeline Authorization Act 

24 (43 U.S.C. 1651 et seq.). 

25 (3) FINAL STATEMENT.—The term ‘‘Final 

26 Statement’’ means the final legislative environmental 


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1 impact statement on the Coastal Plain, dated April 

2 1987, and prepared pursuant to— 

3 (A) section 1002 of the Alaska National 

4 Interest Lands Conservation Act (16 U.S.C. 

5 3142); and 

6 (B) section 102(2)(C) of the National En7 vironmental Policy Act of 1969 (42 U.S.C. 

8 4332(2)(C)). 

9 (4) SECRETARY.—The term ‘‘Secretary’’ means 

10 the Secretary of the Interior (or the designee of the 

11 Secretary), acting through the Director of the Bu12 reau of Land Management, in consultation with the 

13 Director of the United States Fish and Wildlife 

14 Service. 

15 SEC. 333. LEASING PROGRAM FOR LAND WITHIN THE 

16 COASTAL PLAIN. 

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

19 (1) to establish and implement, in accordance 

20 with this subtitle, a competitive oil and gas leasing 

21 program that will result in an environmentally sound 

22 program for the exploration, development, and pro23 duction of the oil and gas resources of the Coastal 

24 Plain; and 


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1 (2) to administer this subtitle through regula2 tions, lease terms, conditions, restrictions, prohibi3 tions, stipulations, and other provisions that— 

4 (A) ensure the oil and gas exploration, de5 velopment, and production activities on the 

6 Coastal Plain will result in no significant ad7 verse effect on fish and wildlife, fish and wild8 life habitat, subsistence resources, and the envi9 ronment; and 

10 (B) require the application of the best 

11 commercially available technology for oil and 

12 gas exploration, development, and production to 

13 all exploration, development, and production op14 erations under this subtitle in a manner that 

15 ensures the receipt of fair market value by the 

16 public for the mineral resources to be leased. 

17 (b) REPEAL OF PROHIBITION.— 

18 (1) IN GENERAL.—Section 1003 of the Alaska 

19 National Interest Lands Conservation Act of 1980 

20 (16 U.S.C. 3143) is repealed. 

21 (2) CONFORMING AMENDMENT.—The table of 

22 contents contained in section 1 of the Alaska Na23 tional Interest Lands Conservation Act of 1980 (16 

24 U.S.C. prec. 3143) is amended by striking the item 

25 relating to section 1003. 


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

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

5 1966 (16 U.S.C. 668dd et seq.)— 

6 (A) the oil and gas leasing program and 

7 activities authorized by this section in the 

8 Coastal Plain shall be considered to be compat9 ible with the purposes for which the Arctic Na10 tional Wildlife Refuge was established; and 

11 (B) no further findings or decisions shall 

12 be required to implement that program and 

13 those activities. 

14 (2) ADEQUACY OF DOI LEGISLATIVE ENVIRON15 MENTAL IMPACT STATEMENT.—The Final State16 ment shall be considered to satisfy the requirements 

17 of the National Environmental Policy Act of 1969 

18 (42 U.S.C. 4321 et seq.) that apply with respect to 

19 prelease activities, including actions authorized to be 

20 taken by the Secretary to develop and promulgate 

21 the regulations for the establishment of a leasing 

22 program authorized by this subtitle before the con23 duct of the first lease sale. 

24 (3) COMPLIANCE WITH NEPA FOR OTHER AC25 TIONS.— 


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1 (A) IN GENERAL.—Before conducting the 

2 first lease sale under this subtitle, the Secretary 

3 shall prepare an environmental impact state4 ment in accordance with the National Environ5 mental Policy Act of 1969 (42 U.S.C. 4321 et 

6 seq.) with respect to the actions authorized by 

7 this subtitle that are not referred to in para8 graph (2). 

9 (B) IDENTIFICATION AND ANALYSIS.— 

10 Notwithstanding any other provision of law, in 

11 carrying out this paragraph, the Secretary shall 

12 not be required— 

13 (i) to identify nonleasing alternative 

14 courses of action; or 

15 (ii) to analyze the environmental ef16 fects of those courses of action. 

17 (C) IDENTIFICATION OF PREFERRED AC18 TION.—Not later than 18 months after the date 

19 of enactment of this Act, the Secretary shall— 

20 (i) identify only a preferred action and 

21 a single leasing alternative for the first 

22 lease sale authorized under this subtitle; 

23 and 


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1 (ii) analyze the environmental effects 

2 and potential mitigation measures for 

3 those 2 alternatives. 

4 (D) PUBLIC COMMENTS.—In carrying out 

5 this paragraph, the Secretary shall consider 

6 only public comments that are filed not later 

7 than 20 days after the date of publication of a 

8 draft environmental impact statement. 

9 (E) EFFECT OF COMPLIANCE.—Notwith10 standing any other provision of law, compliance 

11 with this paragraph shall be considered to sat12 isfy all requirements for the analysis and con13 sideration of the environmental effects of pro14 posed leasing under this subtitle. 

15 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR16 ITY.—Nothing in this subtitle expands or limits State or 

17 local regulatory authority. 

18 (e) SPECIAL AREAS.— 

19 (1) DESIGNATION.— 

20 (A) IN GENERAL.—The Secretary, after 

21 consultation with the State of Alaska, the 

22 North Slope Borough, Alaska, and the City of 

23 Kaktovik, Alaska, may designate not more than 

24 45,000 acres of the Coastal Plain as a special 

25 area if the Secretary determines that the special 


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1 area would be of such unique character and in2 terest as to require special management and 

3 regulatory protection. 

4 (B) SADLEROCHIT SPRING AREA.—The 

5 Secretary shall designate as a special area in 

6 accordance with subparagraph (A) the 

7 Sadlerochit Spring area, comprising approxi8 mately 4,000 acres as depicted on the map. 

9 (2) MANAGEMENT.—The Secretary shall man10 age each special area designated under this sub11 section in a manner that preserves the unique and 

12 diverse character of the area, including fish, wildlife, 

13 subsistence resources, and cultural values of the 

14 area. 

15 (3) EXCLUSION FROM LEASING OR SURFACE

16 OCCUPANCY.— 

17 (A) IN GENERAL.—The Secretary may ex18 clude any special area designated under this 

19 subsection from leasing. 

20 (B) NO SURFACE OCCUPANCY.—If the Sec21 retary leases all or a portion of a special area 

22 for the purposes of oil and gas exploration, de23 velopment, production, and related activities, 

24 there shall be no surface occupancy of the land 

25 comprising the special area. 


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1 (4) DIRECTIONAL DRILLING.—Notwithstanding 

2 any other provision of this subsection, the Secretary 

3 may lease all or a portion of a special area under 

4 terms that permit the use of horizontal drilling tech5 nology from sites on leases located outside the spe6 cial area. 

7 (f) LIMITATION ON CLOSED AREAS.—The Secretary 

8 may not close land within the Coastal Plain to oil and gas 

9 leasing or to exploration, development, or production ex10 cept in accordance with this subtitle. 

11 (g) REGULATIONS.— 

12 (1) IN GENERAL.—Not later than 15 months 

13 after the date of enactment of this Act, the Sec14 retary shall promulgate such regulations as are nec15 essary to carry out this subtitle, including rules and 

16 regulations relating to protection of the fish and 

17 wildlife, fish and wildlife habitat, subsistence re18 sources, and environment of the Coastal Plain. 

19 (2) REVISION OF REGULATIONS.—The Sec20 retary shall periodically review and, as appropriate, 

21 revise the rules and regulations issued under para22 graph (1) to reflect any significant biological, envi23 ronmental, scientific or engineering data that come 

24 to the attention of the Secretary. 


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1 SEC. 334. LEASE SALES. 

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

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

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

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

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

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

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

11 a lease sale; 

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

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

16 lease sale. 

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

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

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

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

21 for lease those tracts the Secretary considers to have the 

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

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

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

26 shall— 


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1 (1) not later than 22 months after the date of 

2 enactment of this Act, conduct the first lease sale 

3 under this subtitle; 

4 (2) not later than 90 days after the date of the 

5 completion of the sale, evaluate the bids in the sale 

6 and issue leases resulting from the sale; and 

7 (3) conduct additional sales at appropriate in8 tervals if sufficient interest in exploration or devel9 opment exists to warrant the conduct of the addi10 tional sales. 

11 SEC. 335. GRANT OF LEASES BY THE SECRETARY. 

12 (a) IN GENERAL.—On payment by a lessee of such 

13 bonus as may be accepted by the Secretary, the Secretary 

14 may grant to the highest responsible qualified bidder in 

15 a lease sale conducted pursuant to section 334 a lease for 

16 any land on the Coastal Plain. 

17 (b) SUBSEQUENT TRANSFERS.— 

18 (1) IN GENERAL.—No lease issued under this 

19 subtitle may be sold, exchanged, assigned, sublet, or 

20 otherwise transferred except with the approval of the 

21 Secretary. 

22 (2) CONDITION FOR APPROVAL.—Before grant23 ing any approval described in paragraph (1), the 

24 Secretary shall consult with and give due consider25 ation to the opinion of the Attorney General. 


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1 SEC. 336. LEASE TERMS AND CONDITIONS. 

2 An oil or gas lease issued pursuant to this subtitle 

3 shall— 

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

less than 121 5 ⁄2 percent of the amount or value of the 

6 production removed or sold from the lease, as deter7 mined by the Secretary in accordance with regula8 tions applicable to other Federal oil and gas leases; 

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

10 seasonal basis, such portions of the Coastal Plain to 

11 exploratory drilling activities as are necessary to 

12 protect caribou calving areas and other species of 

13 fish and wildlife; 

14 (3) require that each lessee of land within the 

15 Coastal Plain shall be fully responsible and liable for 

16 the reclamation of land within the Coastal Plain and 

17 any other Federal land that is adversely affected in 

18 connection with exploration, development, produc19 tion, or transportation activities within the Coastal 

20 Plain conducted by the lessee or by any of the sub21 contractors or agents of the lessee; 

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

23 convey, by contract or otherwise, that reclamation 

24 responsibility and liability to another person without 

25 the express written approval of the Secretary; 


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1 (5) provide that the standard of reclamation for 

2 land required to be reclaimed under this subtitle 

3 shall be, to the maximum extent practicable— 

4 (A) a condition capable of supporting the 

5 uses that the land was capable of supporting 

6 prior to any exploration, development, or pro7 duction activities; or 

8 (B) on application by the lessee, to a high9 er or better standard, as approved by the Sec10 retary; 

11 (6) contain terms and conditions relating to 

12 protection of fish and wildlife, fish and wildlife habi13 tat, subsistence resources, and the environment as 

14 required under section 333(a)(2); 

15 (7) provide that each lessee, and each agent 

16 and contractor of a lessee, use their best efforts to 

17 provide a fair share of employment and contracting 

18 for Alaska Natives and Alaska Native Corporations 

19 from throughout the State of Alaska, as determined 

20 by the level of obligation previously agreed to in the 

21 Federal Agreement; 

22 (8) prohibit the export of oil produced under 

23 the lease; and 

24 (9) contain such other provisions as the Sec25 retary determines to be necessary to ensure compliVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 ance with this subtitle and the regulations promul2 gated under this subtitle. 

3 SEC. 337. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

4 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

5 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

6 In accordance with section 333, the Secretary shall admin7 ister this subtitle through regulations, lease terms, condi8 tions, restrictions, prohibitions, stipulations, or other pro9 visions that— 

10 (1) ensure, to the maximum extent practicable, 

11 that oil and gas exploration, development, and pro12 duction activities on the Coastal Plain will result in 

13 no significant adverse effect on fish and wildlife, fish 

14 and wildlife habitat, and the environment; 

15 (2) require the application of the best commer16 cially available technology for oil and gas explo17 ration, development, and production on all new ex18 ploration, development, and production operations; 

19 and 

20 (3) ensure that the maximum surface acreage 

21 covered in connection with the leasing program by 

22 production and support facilities, including airstrips 

23 and any areas covered by gravel berms or piers for 

24 support of pipelines, does not exceed 2,000 acres on 

25 the Coastal Plain. 


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

2 The Secretary shall require, with respect to any proposed 

3 drilling and related activities on the Coastal Plain, that— 

4 (1) a site-specific analysis be made of the prob5 able effects, if any, that the drilling or related activi6 ties will have on fish and wildlife, fish and wildlife 

7 habitat, subsistence resources, subsistence uses, and 

8 the environment; 

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

10 and mitigate (in that order and to the maximum ex11 tent practicable) any significant adverse effect iden12 tified under paragraph (1); and 

13 (3) the development of the plan shall occur 

14 after consultation with the 1 or more agencies hav15 ing jurisdiction over matters mitigated by the plan. 

16 (c) REGULATIONS TO PROTECT COASTAL PLAIN

17 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

18 AND THE ENVIRONMENT.—Before implementing the leas19 ing program authorized by this subtitle, the Secretary 

20 shall prepare and issue regulations, lease terms, condi21 tions, restrictions, prohibitions, stipulations, or other 

22 measures designed to ensure, to the maximum extent prac23 ticable, that the activities carried out on the Coastal Plain 

24 under this subtitle are conducted in a manner consistent 


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1 with the purposes and environmental requirements of this 

2 subtitle. 

3 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI4 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

5 proposed regulations, lease terms, conditions, restrictions, 

6 prohibitions, and stipulations for the leasing program 

7 under this subtitle shall require— 

8 (1) compliance with all applicable provisions of 

9 Federal and State environmental law (including reg10 ulations); 

11 (2) implementation of and compliance with— 

12 (A) standards that are at least as effective 

13 as the safety and environmental mitigation 

14 measures, as described in items 1 through 29 

15 on pages 167 through 169 of the Final State16 ment, on the Coastal Plain; and 

17 (B) seasonal limitations on exploration, de18 velopment, and related activities, as necessary, 

19 to avoid significant adverse effects during peri20 ods of concentrated fish and wildlife breeding, 

21 denning, nesting, spawning, and migration; 

22 (3) that exploration activities (except surface 

23 geological studies) be limited to the period between 

24 approximately November 1 and May 1 of each year 

25 and be supported, if necessary, by ice roads, winter 


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1 trails with adequate snow cover, ice pads, ice air2 strips, and air transport methods (except that those 

3 exploration activities may be permitted at other 

4 times if the Secretary determines that the explo5 ration will have no significant adverse effect on fish 

6 and wildlife, fish and wildlife habitat, and the envi7 ronment of the Coastal Plain); 

8 (4) design safety and construction standards for 

9 all pipelines and any access and service roads, 

10 that— 

11 (A) minimize, to the maximum extent 

12 practicable, adverse effects on the passage of 

13 migratory species such as caribou; and 

14 (B) minimize adverse effects on the flow of 

15 surface water by requiring the use of culverts, 

16 bridges, and other structural devices; 

17 (5) prohibitions on general public access and 

18 use on all pipeline access and service roads; 

19 (6) stringent reclamation and rehabilitation re20 quirements, consistent with the standards described 

21 in this subtitle, requiring the removal from the 

22 Coastal Plain of all oil and gas development and 

23 production facilities, structures, and equipment on 

24 completion of oil and gas production operations, ex25 cept that the Secretary may exempt from the reVerDate Nov 24 2008 03:57 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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

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

5 United States for that purpose; 

6 (7) appropriate prohibitions or restrictions on 

7 access by all modes of transportation; 

8 (8) appropriate prohibitions or restrictions on 

9 sand and gravel extraction; 

10 (9) consolidation of facility siting; 

11 (10) appropriate prohibitions or restrictions on 

12 use of explosives; 

13 (11)(A) avoidance, to the maximum extent 

14 practicable, of springs, streams, and river system; 

15 (B) the protection of natural surface drainage 

16 patterns, wetland, and riparian habitats; and 

17 (C) the regulation of methods or techniques for 

18 developing or transporting adequate supplies of 

19 water for exploratory drilling; 

20 (12) the avoidance or minimization of air traf21 fic-related disturbance to fish and wildlife; 

22 (13) treatment and disposal of hazardous and 

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

24 muds and cuttings, and domestic wastewater, includVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 ing, in accordance with applicable Federal and State 

2 environmental laws (including regulations)— 

3 (A) preparation of an annual waste man4 agement report; 

5 (B) development and implementation of a 

6 hazardous materials tracking system; and 

7 (C) prohibition on the use of chlorinated 

8 solvents; 

9 (14) fuel storage and oil spill contingency plan10 ning; 

11 (15) research, monitoring, and reporting stipu12 lations; 

13 (16) conduct of periodic field crew environ14 mental briefings; 

15 (17) avoidance of significant adverse effects on 

16 subsistence hunting, fishing, and trapping; 

17 (18) compliance with applicable air and water 

18 quality standards; 

19 (19) appropriate seasonal and safety zone des20 ignations around well sites, within which subsistence 

21 hunting and trapping shall be limited; 

22 (20) reasonable stipulations for protection of 

23 cultural and archeological resources; and 

24 (21) development and implementation of such 

25 other protective environmental requirements, restricVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 tions, terms, or conditions as the Secretary deter2 mines to be necessary. 

3 (e) CONSIDERATIONS.—In preparing and issuing reg4 ulations, lease terms, conditions, restrictions, prohibitions, 

5 or stipulations under this section, the Secretary shall take 

6 into consideration— 

7 (1) the stipulations and conditions that govern 

8 the National Petroleum Reserve-Alaska leasing pro9 gram, as set forth in the 1999 Northeast National 

10 Petroleum Reserve-Alaska Final Integrated Activity 

11 Plan/Environmental Impact Statement; 

12 (2) the environmental protection standards that 

13 governed the initial Coastal Plain seismic exploration 

14 program under parts 37.31 through 37.33 of title 

15 50, Code of Federal Regulations (or successor regu16 lations); and 

17 (3) the land use stipulations for exploratory 

18 drilling on the KIC–ASRC private land described in 

19 Appendix 2 of the agreement between Arctic Slope 

20 Regional Corporation and the United States dated 

21 August 9, 1983. 

22 (f) FACILITY CONSOLIDATION PLANNING.— 

23 (1) IN GENERAL.—After providing for public 

24 notice and comment, the Secretary shall prepare and 

25 periodically update a plan to govern, guide, and diVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 rect the siting and construction of facilities for the 

2 exploration, development, production, and transpor3 tation of oil and gas resources from the Coastal 

4 Plain. 

5 (2) OBJECTIVES.—The objectives of the plan 

6 shall be— 

7 (A) the avoidance of unnecessary duplica8 tion of facilities and activities; 

9 (B) the encouragement of consolidation of 

10 common facilities and activities; 

11 (C) the location or confinement of facilities 

12 and activities to areas that will minimize impact 

13 on fish and wildlife, fish and wildlife habitat, 

14 subsistence resources, and the environment; 

15 (D) the use of existing facilities, to the 

16 maximum extent practicable; and 

17 (E) the enhancement of compatibility be18 tween wildlife values and development activities. 

19 (g) ACCESS TO PUBLIC LAND.—The Secretary 

20 shall— 

21 (1) manage public land in the Coastal Plain in 

22 accordance with subsections (a) and (b) of section 

23 811 of the Alaska National Interest Lands Con24 servation Act (16 U.S.C. 3121); and 


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1 (2) ensure that local residents shall have rea2 sonable access to public land in the Coastal Plain for 

3 traditional uses. 

4 SEC. 338. EXPEDITED JUDICIAL REVIEW. 

5 (a) FILING OF COMPLAINTS.— 

6 (1) DEADLINE.—A complaint seeking judicial 

7 review of a provision of this subtitle or an action of 

8 the Secretary under this subtitle shall be filed— 

9 (A) except as provided in subparagraph 

10 (B), during the 90-day period beginning on the 

11 date on which the action being challenged was 

12 carried out; or 

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

14 on grounds arising after the 90-day period de15 scribed in subparagraph (A), by not later than 

16 90 days after the date on which the complain17 ant knew or reasonably should have known 

18 about the grounds for the complaint. 

19 (2) VENUE.—A complaint seeking judicial re20 view of a provision of this subtitle or an action of 

21 the Secretary under this subtitle shall be filed in the 

22 United States Court of Appeals for the District of 

23 Columbia Circuit. 

24 (3) SCOPE.— 


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1 (A) IN GENERAL.—Judicial review of a de2 cision of the Secretary relating to a lease sale 

3 under this subtitle (including an environmental 

4 analysis of such a lease sale) shall be— 

5 (i) limited to a review of whether the 

6 decision is in accordance with this subtitle; 

7 and 

8 (ii) based on the administrative record 

9 of the decision. 

10 (B) PRESUMPTIONS.—Any identification 

11 by the Secretary of a preferred course of action 

12 relating to a lease sale, and any analysis by the 

13 Secretary of environmental effects, under this 

14 subtitle shall be presumed to be correct unless 

15 proven otherwise by clear and convincing evi16 dence. 

17 (b) LIMITATION ON OTHER REVIEW.—Any action of 

18 the Secretary that is subject to judicial review under this 

19 section shall not be subject to judicial review in any civil 

20 or criminal proceeding for enforcement. 

21 SEC. 339. FEDERAL AND STATE DISTRIBUTION OF REVE22 NUES. 

23 (a) IN GENERAL.—Notwithstanding any other provi24 sion of law, of the amount of adjusted bonus, rental, and 

25 royalty revenues from Federal oil and gas leasing and opVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 erations authorized under this subtitle for each fiscal 

2 year— 

3 (1) 50 percent shall be paid to the State of 

4 Alaska; and 

5 (2) except as otherwise provided in this Act, 90 

6 percent of the balance shall be deposited into the 

7 American Renewable and Alternative Energy Trust 

8 Fund established by section 101. 

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

10 of Alaska under this section shall be made semiannually. 

11 SEC. 340. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 

12 (a) IN GENERAL.—The Secretary shall issue rights13 of-way and easements across the Coastal Plain for the 

14 transportation of oil and gas— 

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

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

17 185), without regard to title XI of the Alaska Na18 tional Interest Lands Conservation Act (16 U.S.C. 

19 3161 et seq.); and 

20 (2) under title XI of the Alaska National Inter21 est Lands Conservation Act (16 U.S.C. 3161 et 

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

23 1111 of that Act (16 U.S.C. 3170, 3171). 

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

25 include in any right-of-way or easement issued under subVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 section (a) such terms and conditions as may be necessary 

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

3 in a significant adverse effect on the fish and wildlife, sub4 sistence resources, their habitat, and the environment of 

5 the Coastal Plain, including requirements that facilities be 

6 sited or designed so as to avoid unnecessary duplication 

7 of roads and pipelines. 

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

9 regulations under section 333(g) provisions granting 

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

11 SEC. 341. CONVEYANCE. 

12 Notwithstanding section 1302(h)(2) of the Alaska 

13 National Interest Lands Conservation Act (16 U.S.C. 

14 3192(h)(2)), to remove any cloud on title to land, and to 

15 clarify land ownership patterns in the Coastal Plain, the 

16 Secretary shall— 

17 (1) to the extent necessary to fulfill the entitle18 ment of the Kaktovik Inupiat Corporation under sec19 tions 12 and 14 of the Alaska Native Claims Settle20 ment Act (43 U.S.C. 1611, 1613), as determined by 

21 the Secretary, convey to that Corporation the sur22 face estate of the land described in paragraph (1) of 

23 Public Land Order 6959, in accordance with the 

24 terms and conditions of the agreement between the 

25 Secretary, the United States Fish and Wildlife ServVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 ice, the Bureau of Land Management, and the 

2 Kaktovik Inupiat Corporation, dated January 22, 

3 1993; and 

4 (2) convey to the Arctic Slope Regional Cor5 poration the remaining subsurface estate to which 

6 that Corporation is entitled under the agreement be7 tween that corporation and the United States, dated 

8 August 9, 1983. 

9 SEC. 342. LOCAL GOVERNMENT IMPACT AID AND COMMU10 NITY SERVICE ASSISTANCE. 

11 (a) FINANCIAL ASSISTANCE AUTHORIZED.— 

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

13 amounts available from the Coastal Plain Local Gov14 ernment Impact Aid Assistance Fund established by 

15 subsection (d) to provide timely financial assistance 

16 to entities that are eligible under paragraph (2). 

17 (2) ELIGIBLE ENTITIES.—The North Slope 

18 Borough, the City of Kaktovik, and any other bor19 ough, municipal subdivision, village, or other com20 munity in the State of Alaska that is directly im21 pacted by exploration for, or the production of, oil 

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

23 determined by the Secretary, shall be eligible for fi24 nancial assistance under this section. 


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1 (b) USE OF ASSISTANCE.—Financial assistance 

2 under this section may be used only— 

3 (1) to plan for mitigation, implement a mitiga4 tion plan, or maintain a mitigation project to ad5 dress the potential effects of oil and gas exploration 

6 and development on environmental, social, cultural, 

7 recreational, and subsistence resources of the com8 munity; 

9 (2) to develop, carry out, and maintain— 

10 (A) a project to provide new or expanded 

11 public facilities; or 

12 (B) services to address the needs and prob13 lems associated with the effects described in 

14 paragraph (1), including firefighting, police, 

15 water and waste treatment, first responder, and 

16 other medical services; and 

17 (3) to establish a local coordination office, to be 

18 managed by the Mayor of the North Slope Borough, 

19 in coordination with the City of Kaktovik, Alaska— 

20 (A) to coordinate with and advise devel21 opers on local conditions and the history of 

22 areas affected by development; and 

23 (B) to provide to the Committee on Re24 sources of the House of Representatives and the 

25 Committee on Energy and Natural Resources of 


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1 the Senate annual reports on the status of the 

2 coordination between developers and commu3 nities affected by development. 

4 (c) APPLICATION.— 

5 (1) IN GENERAL.—Any community that is eligi6 ble for assistance under this section may submit an 

7 application for such assistance to the Secretary, in 

8 such form and under such procedures as the Sec9 retary may prescribe by regulation. 

10 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

11 community located in the North Slope Borough may 

12 apply for assistance under this section either directly 

13 to the Secretary or through the North Slope Bor14 ough. 

15 (3) APPLICATION ASSISTANCE.—The Secretary 

16 shall work closely with and assist the North Slope 

17 Borough and other communities eligible for assist18 ance under this section in developing and submitting 

19 applications for assistance under this section. 

20 (d) ESTABLISHMENT OF FUND.— 

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

22 Treasury the ‘‘Coastal Plain Local Government Im23 pact Aid Assistance Fund’’ (referred to in this sec24 tion as the ‘‘Fund’’). 


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1 (2) USE.—Amounts in the Fund may be used 

2 only for providing financial assistance under this 

3 section. 

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

5 shall be deposited into the Fund amounts received 

6 by the United States as revenues derived from rents, 

7 bonuses, and royalties from Federal leases and lease 

8 sales authorized under this subtitle. 

9 (4) LIMITATION ON DEPOSITS.—The total 

10 amount in the Fund may not exceed $11,000,000. 

11 (5) INVESTMENT OF BALANCES.—The Sec12 retary of the Treasury shall invest amounts in the 

13 Fund in interest bearing government securities. 

14 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

15 authorized to be appropriated to the Secretary from the 

16 Fund to provide financial assistance under this section 

17 $5,000,000 for each fiscal year. 

18 Subtitle C—Oil Shale 

19 SEC. 351. LEASING OF OIL SHALE RESOURCES. 

20 The Secretary of the Interior shall— 

21 (1) offer for leasing for research and develop22 ment of oil shale resources under subsection (c) of 

23 the Oil Shale, Tar Sands, and Other Strategic Un24 conventional Fuels Act of 2005 (42 U.S.C. 

25 15927(c)), any additional 160-acre tracts of land 


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1 that the Secretary determines to be necessary to ful2 fill the research and development objectives of that 

3 Act; and 

4 (2) offer for leasing for commercial exploration, 

5 development, and production of oil shale resources 

6 under subsection (e) of the Oil Shale, Tar Sands, 

7 and Other Strategic Unconventional Fuels Act of 

8 2005 (42 U.S.C. 15927(e)), public land in States for 

9 which the Secretary finds sufficient support and in10 terest as required by that subsection. 

11 TITLE IV—ENERGY 

12 INFRASTRUCTURE 

13 Subtitle A—Transmission 

14 SEC. 401. NATURAL GAS PIPELINE INTEGRITY REASSESS15 MENT INTERVALS BASED ON RISK. 

16 (a) IN GENERAL.—Section 60109(c)(3)(B) of title 

17 49, United States Code, is amended by inserting ‘‘, until 

18 the date on which the Secretary promulgates regulations 

19 basing the reassessment intervals on technical data, risk 

20 factors, and engineering analyses, consistent with the rec21 ommendations of the Comptroller General of the United 

22 States contained in the report numbered 06–945’’ before 

23 the period at the end. 


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

2 subsection (a) takes effect on the date of enactment of 

3 this Act. 

4 Subtitle B—Small Refinery Study 

5 and Temporary Exemption 

6 SEC. 411. SMALL REFINERY STUDY AND TEMPORARY EX7 EMPTION. 

8 Section 211(o)(9)(A) of the Clean Air Act (42 U.S.C. 

9 7545(o)(9)(A)) is amended— 

10 (1) in clause (i), by striking ‘‘ ‘calendar year 

11 2011’ ’’ and inserting ‘‘ ‘calendar year 2015’ ’’; and 

12 (2) in clause (ii), by striking subclause (I) and 

13 inserting the following 

14 ‘‘(I) STUDY.—Not later than De15 cember 31, 2012, the Secretary of 

16 Energy, in consultation with States 

17 and stakeholders (including small re18 fineries), shall conduct a study— 

19 ‘‘(aa) to evaluate the eco20 nomic viability of small refineries 

21 in the United States; 

22 ‘‘(bb) to evaluate the cost of 

23 compliance with the requirements 

24 of paragraph (2) for small refin25 eries in the United States; 


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1 ‘‘(cc) to determine whether 

2 compliance would impose an eco3 nomic hardship on small refin4 eries; and 

5 ‘‘(dd) to assess the impact 

6 on availability and prices of gas 

7 for consumers in areas with small 

8 refineries.’’. 

9 TITLE V—REDUCING GOVERN10 MENT RED TAPE AND EXCES11 SIVE LITIGATION 

12 SEC. 501. ALASKA OFFSHORE CONTINENTAL SHELF CO13 ORDINATION OFFICE. 

14 (a) ESTABLISHMENT.—The Secretary of the Interior, 

15 in coordination with the Mayor of the North Slope Bor16 ough of Alaska, shall establish and maintain in the De17 partment of the Interior a separate office, to be known 

18 as the ‘‘Alaska Offshore Continental Shelf Coordination 

19 Office’’. 

20 (b) DUTIES.—The Alaska Offshore Continental Shelf 

21 Coordination Office shall— 

22 (1) coordinate leasing of the outer Continental 

23 Shelf off the coast of Alaska; 

24 (2) advise persons awarded leases of the outer 

25 Continental Shelf off the coast of Alaska regarding 


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1 local conditions and history of areas affected by de2 velopment of the oil and gas resources of that area 

3 of the outer Continental Shelf; 

4 (3) provide to the Committee on Natural Re5 sources of the House of Representatives and the 

6 Committee on Energy and Natural Resources of the 

7 Senate annual reports describing the status of co8 ordination between the Office and the communities 

9 affected by development of the outer Continental 

10 Shelf off the coast of Alaska; 

11 (4) collect from residents of the North Slope re12 gion of Alaska information regarding the impacts of 

13 that development on marine wildlife, coastal habi14 tats, marine and coastal subsistence resources, and 

15 the marine and coastal environment of the region; 

16 and 

17 (5) ensure that the information collected under 

18 paragraph (4) is submitted to— 

19 (A) developers of resources in the North 

20 Slope region; and 

21 (B) appropriate Federal departments and 

22 agencies. 


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1 SEC. 502. CLEAN AIR REGULATION. 

2 (a) DEFINITION OF AIR POLLUTANT.—Section 

3 302(g) of the Clean Air Act (42 U.S.C. 7602(g)) is 

4 amended— 

5 (1) by striking ‘‘(g) The term’’ and inserting 

6 the following: 

7 ‘‘(g) AIR POLLUTANT.— 

8 ‘‘(1) IN GENERAL.—The term’’; 

9 (2) in the second sentence, by striking ‘‘Such 

10 term’’ and inserting the following: 

11 ‘‘(2) INCLUSIONS.—The term ‘air pollutant’ ’’; 

12 and 

13 (3) by adding at the end the following: 

14 ‘‘(3) EXCLUSIONS.—The term ‘air pollutant’ 

15 does not include— 

16 ‘‘(A) carbon dioxide; 

17 ‘‘(B) methane from agriculture or live18 stock; or 

19 ‘‘(C) water vapor.’’. 

20 (b) STATE STANDARDS.—The Administrator of the 

21 Environmental Protection Agency shall not provide to any 

22 State a waiver under section 209(b) of the Clean Air Act 

23 (42 U.S.C. 7543(b)) for preemption under that Act of any 

24 regulation of the State to control greenhouse gas emis25 sions from motor vehicles. 


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1 SEC. 503. ENDANGERED SPECIES. 

2 (a) EMERGENCIES.—Section 10 of the Endangered 

3 Species Act of 1973 (16 U.S.C. 1539) is amended by add4 ing at the end the following: 

5 ‘‘(k) EMERGENCIES.—On the declaration of an emer6 gency by the Governor of a State, the Secretary, for the 

7 duration of the emergency, shall temporarily exempt from 

8 the prohibition against taking and the prohibition against 

9 the adverse modification of critical habitat under this Act 

10 any action that is reasonably necessary to avoid or amelio11 rate the impact of the emergency, including the operation 

12 of any water supply or flood control project by a Federal 

13 agency.’’. 

14 (b) PROHIBITION OF CONSIDERATION OF IMPACT OF

15 GREENHOUSE GAS.— 

16 (1) IN GENERAL.—The Endangered Species Act 

17 of 1973 (16 U.S.C. 1531 et seq.) is amended by 

18 adding at the end the following: 

19 ‘‘SEC. 19. PROHIBITION OF CONSIDERATION OF IMPACT OF 

20 GREENHOUSE GAS. 

21 ‘‘(a) DEFINITION OF GREENHOUSE GAS.—In this 

22 section, the term ‘greenhouse gas’ means any of— 

23 ‘‘(1) carbon dioxide; 

24 ‘‘(2) methane; 

25 ‘‘(3) nitrous oxide; 

26 ‘‘(4) sulfur hexafluoride; 


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1 ‘‘(5) a hydrofluorocarbon; 

2 ‘‘(6) a perfluorocarbon; or 

3 ‘‘(7) any other anthropogenic gas designated by 

4 the Secretary for purposes of this section. 

5 ‘‘(b) IMPACT OF GREENHOUSE GAS.—The impact of 

6 a greenhouse gas on any species of fish, wildlife, or plant 

7 shall not be considered for any purpose in the implementa8 tion of this Act.’’. 

9 (2) CONFORMING AMENDMENT.—The table of 

10 contents of the Endangered Species Act of 1973 (16 

11 U.S.C. prec. 1531) is amended by adding at the end 

12 the following: 

‘‘Sec. 18. Annual cost analysis by the Fish and Wildlife Service. 

‘‘Sec. 19. Prohibition of consideration of impact of greenhouse gas.’’. 

13 SEC. 504. MINERALS MANAGEMENT SERVICE. 

14 Title III of the Federal Oil and Gas Royalty Manage15 ment Act of 1982 (30 U.S.C. 1751 et seq.) is amended 

16 by adding at the end the following: 

17 ‘‘SEC. 310. MINERALS MANAGEMENT SERVICE. 

18 ‘‘Any Director of the Minerals Management Service 

19 shall be appointed by the President, by and with the advice 

20 and consent of the Senate.’’. 

21 SEC. 505. COMPLETION AND REVIEW OF ENVIRONMENTAL 

22 IMPACT STATEMENTS. 

23 (a) COMPLETION.— 


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1 (1) IN GENERAL.—Notwithstanding any other 

2 provision of law, each review carried out in accord3 ance with the National Environmental Policy Act of 

4 1969 (42 U.S.C. 4321 et seq.) for any project car5 ried out under this Act shall be completed not later 

6 than 270 days after the date on which the conduct 

7 of the project is initiated. 

8 (2) FAILURE TO COMPLETE REVIEW.—If a re9 view described in paragraph (1) has not been com10 pleted for an action subject to the National Environ11 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 

12 by the date specified in paragraph (1)— 

13 (A) the action shall be considered to have 

14 no significant impact to the human environment 

15 for purposes of the Act (42 U.S.C. 4321 et 

16 seq.); and 

17 (B) that classification shall be considered 

18 to be a final agency action. 

19 (b) LEAD AGENCY.—The lead agency for a review of 

20 an action under this section shall be the Federal agency 

21 to which funds are made available for the action. 

22 (c) REVIEW.— 

23 (1) ADMINISTRATIVE APPEALS.—There shall be 

24 a single administrative appeal for each review car25 ried out pursuant to this section. 


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1 (2) JUDICIAL REVIEW.— 

2 (A) IN GENERAL.—On resolution of the 

3 administrative appeal, judicial review of the 

4 final agency decision after exhaustion of admin5 istrative remedies shall lie with the United 

6 States Court of Appeals for the District of Co7 lumbia Circuit. 

8 (B) ADMINISTRATIVE RECORD.—An appeal 

9 to the court described in subparagraph (A) 

10 shall be based only on the administrative 

11 record. 

12 (C) PENDENCY OF JUDICIAL REVIEW.— 

13 After an agency has made a final decision with 

14 respect to a review carried out under this sec15 tion, the decision shall be effective during the 

16 course of any subsequent appeal to a court de17 scribed in subparagraph (A). 

18 (3) CIVIL ACTION.—Each civil action covered by 

19 this section shall be considered to arise under the 

20 laws of the United States. 


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1 TITLE VI—CONSERVATION AND 

2 EFFICIENCY 

3 Subtitle A—New Source Review 

4 SEC. 601. CLARIFYING NEW SOURCE REVIEW REQUIRE5 MENTS. 

6 Notwithstanding any other provision of law, routine 

7 maintenance and repair at a facility, and the replacement 

8 of equipment at a facility in accordance with such require9 ments as the Administrator of the Environmental Protec10 tion Agency shall specify, shall not constitute a modifica11 tion of an existing source requiring compliance with new 

12 source review requirements under parts C and D of title 

13 I of the Clean Air Act (42 U.S.C. 7470 et seq.). 

14 Subtitle B—Clean Coal Alternative 

15 Transition 

16 SEC. 611. CARBON DIOXIDE STORAGE CAPACITY ASSESS17 MENT. 

18 (a) DEFINITIONS.—In this section: 

19 (1) ADMINISTRATOR.—The term ‘‘Adminis20 trator’’ means the Administrator of the Environ21 mental Protection Agency. 

22 (2) ASSESSMENT.—The term ‘‘assessment’’ 

23 means the national assessment of capacity for car24 bon dioxide completed under subsection (f). 


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1 (3) CAPACITY.—The term ‘‘capacity’’ means the 

2 portion of a storage formation that can retain car3 bon dioxide in accordance with the requirements (in4 cluding physical, geological, and economic require5 ments) established under the methodology developed 

6 under subsection (b). 

7 (4) ENGINEERED HAZARD.—The term ‘‘engi8 neered hazard’’ includes the location and completion 

9 history of any well that could affect potential stor10 age. 

11 (5) RISK.—The term ‘‘risk’’ includes any risk 

12 posed by geomechanical, geochemical, hydrogeologi13 cal, structural, and engineered hazards. 

14 (6) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of the Interior, acting through the Di16 rector of the United States Geological Survey. 

17 (7) STORAGE FORMATION.—The term ‘‘storage 

18 formation’’ means a deep saline formation, 

19 unmineable coal seam, or oil or gas reservoir that is 

20 capable of accommodating a volume of industrial 

21 carbon dioxide. 

22 (b) METHODOLOGY.—Not later than 1 year after the 

23 date of enactment of this Act, the Secretary shall develop 

24 a methodology for conducting an assessment under sub25 section (f), taking into consideration— 


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1 (1) the geographical extent of all potential stor2 age formations in all States; 

3 (2) the capacity of the potential storage forma4 tions; 

5 (3) the injectivity of the potential storage for6 mations; 

7 (4) an estimate of potential volumes of oil and 

8 gas recoverable by injection and storage of industrial 

9 carbon dioxide in potential storage formations; 

10 (5) the risk associated with the potential stor11 age formations; and 

12 (6) the Carbon Sequestration Atlas of the 

13 United States and Canada that was completed by 

14 the Department of Energy in April 2006. 

15 (c) COORDINATION.— 

16 (1) FEDERAL COORDINATION.— 

17 (A) CONSULTATION.—The Secretary shall 

18 consult with the Secretary of Energy and the 

19 Administrator on issues of data sharing, for20 mat, development of the methodology under 

21 subsection (b), and content of the assessment 

22 required under this title to ensure the max23 imum usefulness and success of the assessment. 

24 (B) COOPERATION.—The Secretary of En25 ergy and the Administrator shall cooperate with 


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1 the Secretary to ensure, to the maximum extent 

2 practicable, the usefulness and success of the 

3 assessment. 

4 (2) STATE COORDINATION.—The Secretary 

5 shall consult with State geological surveys and other 

6 relevant entities to ensure, to the maximum extent 

7 practicable, the usefulness and success of the assess8 ment. 

9 (d) EXTERNAL REVIEW AND PUBLICATION.—On 

10 completion of the methodology under subsection (b), the 

11 Secretary shall— 

12 (1) publish the methodology and solicit com13 ments from the public and the heads of affected 

14 Federal and State agencies; 

15 (2) establish a panel of individuals with exper16 tise in the matters described in paragraphs (1) 

17 through (5) of subsection (b) that is composed, as 

18 appropriate, of representatives of Federal agencies, 

19 institutions of higher education, nongovernmental 

20 organizations, State organizations, industry, and 

21 international geoscience organizations to review the 

22 methodology and comments received under para23 graph (1); and 


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1 (3) on completion of the review under para2 graph (2), publish in the Federal Register the re3 vised final methodology. 

4 (e) PERIODIC UPDATES.—The methodology devel5 oped under this section shall be updated periodically (in6 cluding at least once every 5 years) to incorporate new 

7 data as the data become available. 

8 (f) NATIONAL ASSESSMENT.— 

9 (1) IN GENERAL.—Not later than 2 years after 

10 the date of publication of the methodology under 

11 subsection (d)(1), the Secretary, in consultation with 

12 the Secretary of Energy and State geological sur13 veys, shall complete a national assessment of capac14 ity for carbon dioxide in accordance with the meth15 odology. 

16 (2) GEOLOGICAL VERIFICATION.—As part of 

17 the assessment under this subsection, the Secretary 

18 shall carry out a drilling program to supplement the 

19 geological data relevant to determining storage ca20 pacity of carbon dioxide in geological storage forma21 tions, including— 

22 (A) well log data; 

23 (B) core data; and 

24 (C) fluid sample data. 


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1 (3) PARTNERSHIP WITH OTHER DRILLING PRO2 GRAMS.—As part of the drilling program under 

3 paragraph (2), the Secretary shall enter, as appro4 priate, into partnerships with other entities to collect 

5 and integrate data from other drilling programs rel6 evant to the storage of carbon dioxide in geological 

7 formations. 

8 (4) INCORPORATION INTO NATCARB.— 

9 (A) IN GENERAL.—On completion of the 

10 assessment, the Secretary of Energy shall incor11 porate the results of the assessment using the 

12 NatCarb database, to the maximum extent 

13 practicable. 

14 (B) RANKING.—The database shall include 

15 the data necessary to rank potential storage 

16 sites for capacity and risk, across the United 

17 States, within each State, by formation, and 

18 within each basin. 

19 (5) REPORT.—Not later than 180 days after 

20 the date on which the assessment is completed, the 

21 Secretary shall submit to the Committee on Energy 

22 and Natural Resources of the Senate and the Com23 mittee on Science and Technology of the House of 

24 Representatives a report describing the findings 

25 under the assessment. 


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1 (6) PERIODIC UPDATES.—The national assess2 ment developed under this section shall be updated 

3 periodically (including at least once every 5 years) to 

4 support public and private sector decisionmaking. 

5 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

6 authorized to be appropriated to carry out this section 

7 $30,000,000 for the period of fiscal years 2010 through 

8 2014. 

9 TITLE VII—TAX PROVISIONS 

10 SEC. 701. AMENDMENT OF 1986 CODE. 

11 Except as otherwise expressly provided, whenever in 

12 this title an amendment or repeal is expressed in terms 

13 of an amendment to, or repeal of, a section or other provi14 sion, the reference shall be considered to be made to a 

15 section or other provision of the Internal Revenue Code 

16 of 1986. 

17 Subtitle A—Nuclear Energy 

18 SEC. 711. ASME NUCLEAR CERTIFICATION CREDIT. 

19 (a) IN GENERAL.—Subpart D of part IV of sub20 chapter A of chapter 1 is amended by adding at the end 

21 the following new section: 

22 ‘‘SEC. 45R. ASME NUCLEAR CERTIFICATION CREDIT. 

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

24 ASME Nuclear Certification credit determined under this 

25 section for any taxable year is an amount equal to 15 perVerDate Nov 24 2008 00:52 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\S1333.IS S1333

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1 cent of the qualified nuclear expenditures paid or incurred 

2 by the taxpayer. 

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

4 purposes of this section, the term ‘qualified nuclear ex5 penditures’ means any expenditure related to— 

6 ‘‘(1) obtaining a certification under the Amer7 ican Society of Mechanical Engineers Nuclear Com8 ponent Certification program, or 

9 ‘‘(2) increasing the taxpayer’s capacity to con10 struct, fabricate, assemble, or install components— 

11 ‘‘(A) for any facility which uses nuclear en12 ergy to produce electricity, and 

13 ‘‘(B) with respect to the construction, fab14 rication, assembly, or installation of which the 

15 taxpayer is certified under such program. 

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

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

18 ‘‘(1) in the case of a qualified nuclear expendi19 ture described in subsection (b)(1), for the taxable 

20 year of such certification, and 

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

22 expenditure, for the taxable year in which such ex23 penditure is paid or incurred. 

24 ‘‘(d) SPECIAL RULES.— 


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

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

3 for an expenditure, the increase in basis which would 

4 result (but for this subsection) for such expenditure 

5 shall be reduced by the amount of the credit allowed 

6 under this section. 

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

9 amount taken into account in determining the credit 

10 under this section. 

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

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

14 (b) CREDIT TO BE PART OF BUSINESS CREDIT.— 

15 Subsection (b) of section 38 is amended by striking ‘‘plus’’ 

16 at the end of paragraph (34), by striking the period at 

17 the end of paragraph (35) and inserting ‘‘, plus’’, and by 

18 adding at the end the following new paragraph: 

19 ‘‘(36) the ASME Nuclear Certification credit 

20 determined under section 45R(a).’’. 

21 (c) CONFORMING AMENDMENT.—Subsection (a) of 

22 section 1016 is amended by striking ‘‘and’’ at the end of 

23 paragraph (36), by striking the period at the end of para24 graph (37) and inserting ‘‘, and’’, and by adding at the 

25 end the following new paragraph: 


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

2 45R(d)(1).’’. 

3 (d) CLERICAL AMENDMENT.—The table of sections 

4 for subpart D of part IV of subchapter A of chapter 1 

5 is amended by adding at the end the following new item: 

‘‘Sec. 45R. ASME Nuclear Certification credit.’’. 

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

7 this section shall apply to expenditures paid or incurred 

8 in taxable years beginning after December 31, 2009. 

9 SEC. 712. EXPANSION OF ENERGY INVESTMENT TAX CRED10 IT TO INCLUDE NUCLEAR AND CLEAN-COAL 

11 EQUIPMENT. 

12 (a) IN GENERAL.—Clause (i) of section 48C(c)(1)(A) 

13 is amended— 

14 (1) by striking ‘‘or’’ at the end of subclause 

15 (VI), 

16 (2) by striking ‘‘and’’ at the end of subclause 

17 (VII), and 

18 (3) by inserting after subclause (VII) the fol19 lowing new subclauses: 

20 ‘‘(VIII) property designed to be 

21 used to produce energy from an ad22 vanced nuclear power facility (as de23 fined in section 45J(d)), or 


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1 ‘‘(IX) property designed to be 

2 used to produce energy from clean3 coal equipment, and’’. 

4 (b) DENIAL OF DOUBLE BENEFIT.—Subsection (e) 

5 of section 48C is amended by inserting ‘‘45J, 45R,’’ before 

6 ‘‘48’’. 

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

8 this section shall apply to property placed in service after 

9 December 31, 2009. 

10 SEC. 713. CREDIT FOR QUALIFYING NUCLEAR POWER MAN11 UFACTURING. 

12 (a) IN GENERAL.—Subpart E of part IV of sub13 chapter A of chapter 1 is amended by inserting after sec14 tion 48C the following new section: 

15 ‘‘SEC. 48D. QUALIFYING NUCLEAR POWER MANUFAC16 TURING CREDIT. 

17 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

18 qualifying nuclear power manufacturing credit for any 

19 taxable year is an amount equal to 20 percent of the quali20 fied investment for such taxable year. 

21 ‘‘(b) QUALIFIED INVESTMENT.— 

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

23 (a), the qualified investment for any taxable year is 

24 the basis of eligible property placed in service by the 

25 taxpayer during such taxable year— 


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1 ‘‘(A) which is either part of a qualifying 

2 nuclear power manufacturing project or is 

3 qualifying nuclear power manufacturing equip4 ment, 

5 ‘‘(B)(i) the construction, reconstruction, or 

6 erection of which is completed by the taxpayer, 

7 or 

8 ‘‘(ii) which is acquired by the taxpayer if 

9 the original use of such property commences 

10 with the taxpayer, 

11 ‘‘(C) with respect to which depreciation (or 

12 amortization in lieu of depreciation) is allow13 able, and 

14 ‘‘(D) which is placed in service on or be15 fore December 31, 2015. 

16 ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED

17 PROPERTY.—Rules similar to section 48(a)(4) shall 

18 apply for purposes of this section. 

19 ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI20 TURES RULES MADE APPLICABLE.—Rules similar to 

21 the rules of subsections (c)(4) and (d) of section 46 

22 (as in effect on the day before the enactment of the 

23 Revenue Reconciliation Act of 1990) shall apply for 

24 purposes of this section. 

25 ‘‘(c) DEFINITIONS.—For purposes of this section— 


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1 ‘‘(1) QUALIFYING NUCLEAR POWER MANUFAC2 TURING PROJECT.—The term ‘qualifying nuclear 

3 power manufacturing project’ means any project 

4 which is designed primarily to enable the taxpayer to 

5 produce or test equipment necessary for the con6 struction or operation of a nuclear power plant. 

7 ‘‘(2) QUALIFYING NUCLEAR POWER MANUFAC8 TURING EQUIPMENT.—The term ‘qualifying nuclear 

9 power manufacturing equipment’ means machine 

10 tools and other similar equipment, including com11 puters and other peripheral equipment, acquired or 

12 constructed primarily to enable the taxpayer to 

13 produce or test equipment necessary for the con14 struction or operation of a nuclear power plant. 

15 ‘‘(3) PROJECT.—The term ‘project’ includes 

16 any building constructed to house qualifying nuclear 

17 power manufacturing equipment.’’. 

18 (b) CONFORMING AMENDMENTS.— 

19 (1) ADDITIONAL INVESTMENT CREDIT.—Sec20 tion 46 is amended— 

21 (A) by striking the period at the end of 

22 paragraph (5) and inserting ‘‘, and’’, and 

23 (B) by adding at the end the following new 

24 paragraph: 


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1 ‘‘(6) the qualifying nuclear power manufac2 turing credit.’’. 

3 (2) APPLICATION OF SECTION 49.—Subpara4 graph (C) of section 49(a)(1) is amended— 

5 (A) by striking ‘‘and’’ at the end of clause 

6 (iv), 

7 (B) by striking the period at the end of 

8 clause (v) and inserting ‘‘, and’’, and 

9 (C) by adding at the end the following new 

10 clause: 

11 ‘‘(vi) the basis of any property which 

12 is part of a qualifying nuclear power equip13 ment manufacturing project under section 

14 48D.’’. 

15 (3) TABLE OF SECTIONS.—The table of sections 

16 for subpart E of part IV of subchapter A of chapter 

17 1 is amended by adding at the end the following new 

18 item: 

‘‘Sec. 48D. Qualifying nuclear power manufacturing credit.’’. 

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

20 this section shall apply to property— 

21 (1) the construction, reconstruction, or erection 

22 of which began after the date of the enactment of 

23 this Act, or 

24 (2) which was acquired by the taxpayer on or 

25 after the date of the enactment of this Act and not 


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1 pursuant to a binding contract which was in effect 

2 on the day prior to such date. 

3 Subtitle B—Synthetic and 

4 Alternative Energy 

5 SEC. 721. COAL-TO-LIQUID FACILITIES. 

6 (a) IN GENERAL.—Section 168 is amended by adding 

7 at the end the following: 

8 ‘‘(o) SPECIAL ALLOWANCE FOR COAL-TO-LIQUID

9 PLANT PROPERTY.— 

10 ‘‘(1) ADDITIONAL ALLOWANCE.—In the case of 

11 any qualified coal-to-liquid plant property— 

12 ‘‘(A) the depreciation deduction provided 

13 by section 167(a) for the taxable year in which 

14 such property is placed in service shall include 

15 an allowance equal to 50 percent of the ad16 justed basis of such property, and 

17 ‘‘(B) the adjusted basis of such property 

18 shall be reduced by the amount of such deduc19 tion before computing the amount otherwise al20 lowable as a depreciation deduction under this 

21 chapter for such taxable year and any subse22 quent taxable year. 

23 ‘‘(2) QUALIFIED COAL-TO-LIQUID PLANT PROP24 ERTY.— 


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1 ‘‘(A) IN GENERAL.—The term ‘qualified 

2 coal-to-liquid plant property’ means property of 

3 a character subject to the allowance for depre4 ciation— 

5 ‘‘(i) which is part of a commercial6 scale project that converts coal to 1 or 

7 more liquid or gaseous transportation fuel 

8 that demonstrates the capture, and seques9 tration or disposal or use of, the carbon di10 oxide produced in the conversion process, 

11 and that, on the basis of carbon dioxide se12 questration plan prepared by the applicant, 

13 is certified by the Administrator of the En14 vironmental Protection Agency, in con15 sultation with the Secretary of Energy, as 

16 producing fuel with life cycle carbon diox17 ide emissions at or below the average life18 cycle carbon dioxide emissions for the same 

19 type of fuel produced at traditional petro20 leum based facilities with similar annual 

21 capacities, 

22 ‘‘(ii) which is used in the United 

23 States solely to produce coal-to-liquid fuels, 


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1 ‘‘(iii) the original use of which com2 mences with the taxpayer after the date of 

3 the enactment of this subsection, 

4 ‘‘(iv) which has a nameplate capacity 

5 of 30,000 barrels per day production of 

6 coal-to-liquid fuels, 

7 ‘‘(v) which is acquired by the taxpayer 

8 by purchase (as defined in section 179(d)) 

9 after the date of the enactment of this sub10 section, but only if no written binding con11 tract for the acquisition was in effect on or 

12 before such date, and 

13 ‘‘(vi) which is placed in service by the 

14 taxpayer before January 1, 2013. 

15 ‘‘(B) EXCEPTIONS.— 

16 ‘‘(i) ALTERNATIVE DEPRECIATION

17 PROPERTY.—Such term shall not include 

18 any property described in section 

19 168(k)(2)(D)(i). 

20 ‘‘(ii) TAX-EXEMPT BOND-FINANCED

21 PROPERTY.—Such term shall not include 

22 any property any portion of which is fi23 nanced with the proceeds of any obligation 

24 the interest on which is exempt from tax 

25 under section 103. 


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1 ‘‘(iii) ELECTION OUT.—If a taxpayer 

2 makes an election under this subparagraph 

3 with respect to any class of property for 

4 any taxable year, this subsection shall not 

5 apply to all property in such class placed 

6 in service during such taxable year. 

7 ‘‘(3) SPECIAL RULES.—For purposes of this 

8 subsection, rules similar to the rules of subpara9 graph (E) of section 168(k)(2) shall apply, except 

10 that such subparagraph shall be applied— 

11 ‘‘(A) by substituting ‘the date of the enact12 ment of subsection (l)’ for ‘December 31, 2007’ 

13 each place it appears therein, 

14 ‘‘(B) by substituting ‘January 1, 2013’ for 

15 ‘January 1, 2010’ in clause (i) thereof, and 

16 ‘‘(C) by substituting ‘qualified coal-to-liq17 uid plant property’ for ‘qualified property’ in 

18 clause (iv) thereof. 

19 ‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MIN20 IMUM TAX.—For purposes of this subsection, rules 

21 similar to the rules of section 168(k)(2)(G) shall 

22 apply. 

23 ‘‘(5) RECAPTURE.—For purposes of this sub24 section, rules similar to the rules under section 

25 179(d)(10) shall apply with respect to any qualified 


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1 coal-to-liquid plant property which ceases to be 

2 qualified coal-to-liquid plant property.’’. 

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

4 this section shall apply to property placed in service after 

5 the date of the enactment of this Act, in taxable years 

6 ending after such date. 

7 SEC. 722. PERMANENT EXTENSION OF THE CREDIT FOR 

8 NONBUSINESS ENERGY PROPERTY AND THE 

9 CREDIT FOR GAS PRODUCED FROM BIOMASS 

10 AND FOR SYNTHETIC FUELS PRODUCED 

11 FROM COAL. 

12 (a) CREDIT FOR NONBUSINESS ENERGY PROPERTY

13 MADE PERMANENT.— 

14 (1) IN GENERAL.—Section 25C is amended by 

15 striking subsection (g). 

16 (2) EFFECTIVE DATE.—The amendment made 

17 by this subsection shall apply to property placed in 

18 service after December 31, 2009. 

19 (b) CREDIT FOR GAS PRODUCED FROM BIOMASS

20 AND FOR SYNTHETIC FUELS PRODUCED FROM COAL

21 MADE PERMANENT.— 

22 (1) IN GENERAL.—Subparagraph (B) of section 

23 45K(f)(1) is amended to read as follows: 


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1 ‘‘(B) if such facility is originally placed in 

2 service after December 31, 1992, paragraph (2) 

3 of subsection (e) shall not apply.’’. 

4 (2) EFFECTIVE DATE.—The amendment made 

5 by this subsection shall apply to fuel sold after De6 cember 31, 2009. 

7 SEC. 723. EXTENSION OF 50 CENT PER GALLON ALTER8 NATIVE FUELS EXCISE TAX CREDIT. 

9 Paragraph (5) of section 6426(d) is amended by 

10 striking ‘‘2009’’ and inserting ‘‘2019’’ and by striking 

11 ‘‘2014’’ and inserting ‘‘2024’’. 

12 SEC. 724. TAX CREDIT PARITY FOR OPEN-LOOP BIOMASS 

13 FACILITIES. 

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

15 45(b)(4) is amended by striking ‘‘paragraph (3),’’ and in16 serting ‘‘paragraph’’. 

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

18 this section shall apply to electricity produced and sold 

19 after the date of the enactment of this Act. 


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1 Subtitle C—Alternative Fuel 

2 Vehicles 

3 SEC. 731. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

4 VEHICLES. 

5 Paragraph (4) of section 30B(k) is amended by strik6 ing ‘‘December 31, 2010’’ and inserting ‘‘December 31, 

7 2020’’. 

8 SEC. 732. EXTENSION OF ALTERNATIVE FUEL VEHICLE RE9 FUELING PROPERTY CREDIT. 

10 Paragraph (1) of section 30C(g) is amended— 

11 (1) by striking ‘‘hydrogen,’’ and inserting ‘‘hy12 drogen or alternative fuels (as defined in section 

13 30B(e)(4)(B)),’’, and 

14 (2) by striking ‘‘December 31, 2014’’ and in15 serting ‘‘December 31, 2020’’. 

16 SEC. 733. EXTENSION OF CREDIT FOR NEW QUALIFIED 

17 PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. 

18 (a) IN GENERAL.—Section 30D is amended by add19 ing at the end the following new subsection: 

20 ‘‘(g) TERMINATION.—This section shall not apply to 

21 property placed in service after December 31, 2020.’’. 

22 (b) REPEAL OF LIMITATION ON NUMBER OF NEW

23 QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

24 ELIGIBLE FOR CREDIT.—Section 30D, as amended by 

25 subsection (a), is amended by striking subsection (e) and 


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1 redesignating subsections (f) and (g) as subsections (e) 

2 and (f), respectively. 

3 (c) CONFORMING AMENDMENTS.— 

4 (1) Section 1016(a)(37) is amended by striking 

5 ‘‘section 30D(e)(4)’’ and inserting ‘‘section 

6 30D(e)(1)’’. 

7 (2) Section 6501(m) is amended by striking 

8 ‘‘section 30D(e)(4)’’ and inserting ‘‘section 

9 30D(e)(6)’’. 

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

11 this section shall apply to vehicles acquired after Decem12 ber 31, 2009. 

13 Subtitle D—Energy Infrastructure 

14 SEC. 741. TAX-EXEMPT FINANCING OF ENERGY TRANSPOR15 TATION INFRASTRUCTURE NOT SUBJECT TO 

16 PRIVATE BUSINESS USE TESTS. 

17 (a) IN GENERAL.—Section 141(b)(6) is amended by 

18 adding at the end the following new subparagraph: 

19 ‘‘(C) EXCEPTION FOR CERTAIN ENERGY

20 TRANSPORTATION INFRASTRUCTURE.— 

21 ‘‘(i) IN GENERAL.—For purposes of 

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

23 operation or use of any property described 

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


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1 governmental unit shall not be considered 

2 a private business use. 

3 ‘‘(ii) PROPERTY DESCRIBED.—For 

4 purposes of clause (i), the following prop5 erty is described in this clause: 

6 ‘‘(I) Any tangible property used 

7 to transmit electricity at 230 or more 

8 kilovolts if such property is placed in 

9 service as part of a State or multi10 State effort to improve interstate elec11 tricity transmission and is physically 

12 located in not less than 2 States. 

13 ‘‘(II) Any tangible property used 

14 to transmit electricity generated from 

15 renewable resources. 

16 ‘‘(III) Any tangible property used 

17 as a transmission pipeline for crude 

18 oil or diesel fuel produced from coal 

19 or other synthetic petroleum products 

20 produced from coal if such property is 

21 placed in service as part of a State or 

22 multi-State effort to improve the 

23 transportation of crude oil or diesel 

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1 thetic petroleum products produced 

2 from coal. 

3 ‘‘(IV) Any tangible property used 

4 as a carbon dioxide transmission pipe5 line if such property is placed in serv6 ice as part of a State or multi-State 

7 effort to improve interstate or intra8 state efforts to develop transportation 

9 infrastructure for purposes of perma10 nently sequestering carbon dioxide.’’. 

11 (b) EXCEPTION TO PRIVATE LOAN FINANCING

12 TEST.—Section 141(c)(2) is amended— 

13 (1) by striking ‘‘or’’ at the end of subparagraph 

14 (B), 

15 (2) by striking the period at the end of sub16 paragraph (C) and inserting ‘‘, or’’, and 

17 (3) by adding at the end the following new sub18 paragraph: 

19 ‘‘(D) enables the borrower to finance any 

20 property described in subsection (b)(6)(C)(ii).’’. 

21 (c) REDUCTION OF STATE VOLUME CAP BY AMOUNT

22 OF ENERGY TRANSPORTATION INFRASTRUCTURE FI23 NANCING.—Section 146 is amended by adding at the end 

24 the following new subsection: 


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1 ‘‘(o) REDUCTION FOR ENERGY TRANSPORTATION IN2 FRASTRUCTURE FINANCING.—The volume cap of any 

3 issuing authority for any calendar year shall be reduced 

4 by the amount of bonds issued as part of an issue by such 

5 authority to provide for property described in section 

6 141(b)(6)(C)(ii).’’. 

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

8 this section shall apply to obligations issued after the date 

9 of the enactment of this Act and before December 31, 

10 2016. 

11 SEC. 742. LIMITATION ON DISCRIMINATORY TAXATION OF 

12 CERTAIN PIPELINE PROPERTY. 

13 (a) DEFINITIONS.—For purposes of this section: 

14 (1) ASSESSMENT.—The term ‘‘assessment’’ 

15 means valuation for a property tax levied by a taxing 

16 authority. 

17 (2) ASSESSMENT JURISDICTION.—The term 

18 ‘‘assessment jurisdiction’’ means a geographical area 

19 used in determining the assessed value of property 

20 for ad valorem taxation. 

21 (3) COMMERCIAL AND INDUSTRIAL PROP22 ERTY.—The term ‘‘commercial and industrial prop23 erty’’ means property (excluding pipeline property, 

24 public utility property, and land used primarily for 

25 agricultural purposes or timber growth) devoted to 


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1 commercial or industrial use and subject to a prop2 erty tax levy. 

3 (4) PIPELINE PROPERTY.—The term ‘‘pipeline 

4 property’’ means all property, real, personal, and in5 tangible, owned or used by a natural gas pipeline 

6 providing transportation or storage of natural gas, 

7 subject to the jurisdiction of the Federal Energy 

8 Regulatory Commission. 

9 (5) PUBLIC UTILITY PROPERTY.—The term 

10 ‘‘public utility property’’ means property (excluding 

11 pipeline property) that is devoted to public service 

12 and is owned or used by any entity that performs a 

13 public service and is regulated by any governmental 

14 agency. 

15 (b) DISCRIMINATORY ACTS.—The acts specified in 

16 this subsection unreasonably burden and discriminate 

17 against interstate commerce. A State, subdivision of a 

18 State, authority acting for a State or subdivision of a 

19 State, or any other taxing authority (including a taxing 

20 jurisdiction and a taxing district) may not do any of the 

21 following such acts: 

22 (1) Assess pipeline property at a value that has 

23 a higher ratio to the true market value of the pipe24 line property than the ratio that the assessed value 

25 of other commercial and industrial property in the 


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1 same assessment jurisdiction has to the true market 

2 value of the other commercial and industrial prop3 erty. 

4 (2) Levy or collect a tax on an assessment that 

5 may not be made under paragraph (1). 

6 (3) Levy or collect an ad valorem property tax 

7 on pipeline property at a tax rate that exceeds the 

8 tax rate applicable to commercial and industrial 

9 property in the same assessment jurisdiction. 

10 (4) Impose any other tax that discriminates 

11 against a pipeline providing transportation subject to 

12 the jurisdiction of the Federal Energy Regulatory 

13 Commission. 

14 (c) JURISDICTION OF COURTS; RELIEF.— 

15 (1) GRANT OF JURISDICTION.—Notwith16 standing section 1341 of title 28, United States 

17 Code, and notions of comity, and without regard to 

18 the amount in controversy or citizenship of the par19 ties, the district courts of the United States shall 

20 have jurisdiction, concurrent with other jurisdiction 

21 of the courts of the United States, of States, and of 

22 all other taxing authorities and taxing jurisdictions, 

23 to prevent a violation of subsection (b). 

24 (2) RELIEF.—Except as otherwise provided in 

25 this paragraph, relief may be granted under this Act 


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1 only if the ratio of assessed value to true market 

2 value of pipeline property exceeds by at least 5 per3 cent the ratio of assessed value to true market value 

4 of other commercial and industrial property in the 

5 same assessment jurisdiction. If the ratio of the as6 sessed value of other commercial and industrial 

7 property in the assessment jurisdiction to the true 

8 market value of all other commercial and industrial 

9 property cannot be determined to the satisfaction of 

10 the court through the random-sampling method 

11 known as a sales assessment ratio study (to be car12 ried out under statistical principles applicable to 

13 such a study), each of the following shall be a viola14 tion of subsection (b) for which relief under this sec15 tion may be granted: 

16 (A) An assessment of the pipeline property 

17 at a value that has a higher ratio of assessed 

18 value to the true market value of the pipeline 

19 property than the ratio of the assessed value of 

20 all other property (excluding public utility prop21 erty) subject to a property tax levy in the as22 sessment jurisdiction has to the true market 

23 value of all other property (excluding public 

24 utility property). 


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1 (B) The collection of an ad valorem prop2 erty tax on the pipeline property at a tax rate 

3 that exceeds the tax rate applicable to all other 

4 taxable property (excluding public utility prop5 erty) in the taxing jurisdiction. 

6 Subtitle E—Building Efficiency 

7 Incentives 

8 SEC. 751. HOME ENERGY AUDITS. 

9 (a) IN GENERAL.—Subpart A of part IV of sub10 chapter A of chapter 1 is amended by inserting after sec11 tion 25D the following new section: 

12 ‘‘SEC. 25E. HOME ENERGY AUDITS. 

13 ‘‘(a) IN GENERAL.—In the case of an individual, 

14 there shall be allowed as a credit against the tax imposed 

15 by this chapter for the taxable year an amount equal to 

16 50 percent of the amount of qualified home energy audit 

17 expenses paid or incurred by the taxpayer during the tax18 able year. 

19 ‘‘(b) LIMITATIONS.— 

20 ‘‘(1) DOLLAR LIMITATION.—The amount of the 

21 credit allowed under subsection (a) for any taxable 

22 year shall not exceed $400. 

23 ‘‘(2) LIMITATION BASED ON AMOUNT OF

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1 tion 26(a)(2) does not apply, the credit allowed 

2 under subsection (a) shall not exceed the excess of— 

3 ‘‘(A) the sum of the regular tax liability 

4 (as defined in section 26(b)) plus the tax im5 posed by section 55, over 

6 ‘‘(B) the sum of the credits allowable 

7 under this subpart (other than this section) and 

8 section 27 for the taxable year. 

9 ‘‘(c) QUALIFIED HOME ENERGY AUDIT EX10 PENSES.— 

11 ‘‘(1) IN GENERAL.—For purposes of this sec12 tion, the term ‘qualified home energy audit expenses’ 

13 means expenses paid or incurred for an energy 

14 audit, performed by a qualified energy auditor 

15 through a comprehensive site visit, of a principal 

16 residence of the taxpayer which is located in the 

17 United States. Such audit may include a blower door 

18 test, an infra-red camera test, and a furnace com19 bustion efficiency test. 

20 ‘‘(2) INCLUDED TESTS.—The audit described in 

21 paragraph (1) shall include such tests as the Sec22 retary may by regulation require, including sub23 stitute tests for the tests specified in such para24 graph. 


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1 ‘‘(3) PRINCIPAL RESIDENCE.—For purposes of 

2 this subsection, the term ‘principal residence’ has 

3 the same meaning as when used in section 121. 

4 ‘‘(4) QUALIFIED ENERGY AUDITOR.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 specify by regulations the qualifications re7 quired for an auditor to be considered a quali8 fied energy auditor for purposes of this section. 

9 Such regulations shall include rules prohibiting 

10 conflicts of interest, including the disallowance 

11 of commissions or other payments based on 

12 goods or non-audit services purchased by the 

13 taxpayer from the auditor. 

14 ‘‘(B) CERTIFICATION.—The Secretary 

15 shall prescribe the procedures and methods for 

16 certifying that an auditor is a qualified energy 

17 auditor. To the maximum extent practicable, 

18 such procedures and methods shall provide for 

19 a variety of sources from which an auditor may 

20 obtain certifications.’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 23(b)(4)(B) is amended by striking 

23 ‘‘section 25D’’ and inserting ‘‘sections 25D and 

24 25E’’. 


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1 (2) Section 23(c)(1) is amended by inserting ‘‘, 

2 25E,’’ after ‘‘25D’’. 

3 (3) Section 24(b)(3)(B) is amended by inserting 

4 ‘‘25E,’’ after ‘‘25D,’’. 

5 (4) Section 25(e)(1)(C) is amended by inserting 

6 ‘‘25E,’’ after ‘‘25D,’’ each place it appears in 

7 clauses (i) and (ii). 

8 (5) Section 25B(g)(2) is amended by inserting 

9 ‘‘25E,’’ after ‘‘25D,’’. 

10 (6) Section 25D(c) is amended by inserting 

11 ‘‘and section 25E’’ after ‘‘this section’’ each place it 

12 appears in paragraphs (1)(B) and (2)(A). 

13 (7) Section 904(i) is amended by inserting 

14 ‘‘25E,’’ after ‘‘25B,’’. 

15 (c) CLERICAL AMENDMENT.—The table of sections 

16 for subpart A of part IV of subchapter A of chapter 1 

17 is amended by inserting after the item relating to section 

18 25D the following new item: 

‘‘Sec. 25E. Home energy audits.’’. 

19 (d) EFFECTIVE DATES.— 

20 (1) IN GENERAL.—The amendments made by 

21 this section shall apply to amounts paid or incurred 

22 in taxable years beginning after December 31, 2009. 

23 (2) APPLICATION OF EGGTRA SUNSET.—The 

24 amendments made by paragraphs (1) and (3) of 

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1 nomic Growth and Tax Relief Reconciliation Act of 

2 2001 in the same manner as the provisions of such 

3 Act to which such amendments relate. 

4 SEC. 752. EXTENSION AND CLARIFICATION OF NEW EN5 ERGY EFFICIENT HOME CREDIT. 

6 (a) EXTENSION.—Subsection (g) of section 45L is 

7 amended by striking ‘‘December 31, 2009’’ and inserting 

8 ‘‘December 31, 2013’’. 

9 (b) CLARIFICATION.— 

10 (1) IN GENERAL.—Paragraph (1) of section 

11 45L(a) is amended by striking ‘‘and’’ at the end of 

12 subparagraph (A) and by striking subparagraph (B) 

13 and inserting the following: 

14 ‘‘(B) acquired by a person from such eligi15 ble contractor, and 

16 ‘‘(C) used by any person as a residence 

17 during the taxable year.’’. 

18 (2) EFFECTIVE DATE.—The amendments made 

19 by this subsection shall take effect as if included in 

20 section 1332 of the Energy Policy Act of 2005. 

21 SEC. 753. EXTENSION OF CREDIT FOR ENERGY EFFICIENT 

22 APPLIANCES. 

23 (a) IN GENERAL.—Subsection (b) of section 45M is 

24 amended— 

25 (1) in paragraph (1)— 


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1 (A) by striking ‘‘2008 or 2009’’ in sub2 paragraph (A) and inserting ‘‘2008, 2009, 

3 2010, 2011, or 2012’’, and 

4 (B) by striking ‘‘2008, 2009, or 2010’’ in 

5 subparagraph (B) and inserting ‘‘2008, 2009, 

6 2010, 2011, 2012, or 2013’’, 

7 (2) in paragraph (2)— 

8 (A) by striking ‘‘2008 or 2009’’ in sub9 paragraph (B) and inserting ‘‘2008, 2009, 

10 2010, 2011, or 2012’’, 

11 (B) by striking ‘‘2008, 2009, or 2010’’ in 

12 subparagraph (C) and inserting ‘‘2008, 2009, 

13 2010, 2011, 2012, or 2013’’, and 

14 (C) by striking ‘‘2008, 2009, or 2010’’ in 

15 subparagraph (D) and inserting ‘‘2008, 2009, 

16 2010, 2011, 2012, or 2013’’, and 

17 (3) in paragraph (3)— 

18 (A) by striking ‘‘2008 or 2009’’ in sub19 paragraph (B) and inserting ‘‘2008, 2009, 

20 2010, 2011, or 2012’’, 

21 (B) by striking ‘‘2008, 2009, or 2010’’ in 

22 subparagraph (C) and inserting ‘‘2008, 2009, 

23 2010, 2011, 2012, or 2013’’, and 


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1 (C) by striking ‘‘2008, 2009, or 2010’’ in 

2 subparagraph (D) and inserting ‘‘2008, 2009, 

3 2010, 2011, 2012, or 2013’’. 

4 (b) INCREASE IN AGGREGATE CREDIT AMOUNT AL5 LOWED.—Paragraph (1) of section 45M(e) is amended by 

6 striking ‘‘$75,000,000’’ and inserting ‘‘$100,000,000’’. 

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

8 this section shall apply to appliances produced after De9 cember 31, 2009. 

10 SEC. 754. EXTENSION AND MODIFICATION OF DEDUCTION 

11 FOR ENERGY EFFICIENT COMMERCIAL 

12 BUILDINGS. 

13 (a) EXTENSION.—Subsection (h) of section 179D is 

14 amended to read as follows: 

15 ‘‘(h) TERMINATION.—This section shall not apply 

16 with respect to property— 

17 ‘‘(1) which is certified under subsection (d)(6) 

18 after December 31, 2012, or 

19 ‘‘(2) which is placed in service after December 

20 31, 2014. 

21 A provisional certification shall be treated as meeting the 

22 requirements of paragraph (1) if it is based on the build23 ing plans, subject to inspection and testing after installa24 tion.’’. 


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1 (b) INCREASE IN MAXIMUM AMOUNT OF DEDUC2 TION.— 

3 (1) IN GENERAL.—Subparagraph (A) of section 

4 179D(b)(1) is amended by striking ‘‘$1.80’’ and in5 serting ‘‘$2.25’’. 

6 (2) PARTIAL ALLOWANCE.—Paragraph (1) of 

7 section 179D(d) is amended— 

8 (A) by striking ‘‘$.60’’ and inserting 

9 ‘‘$0.75’’, and 

10 (B) by striking ‘‘$1.80’’ and inserting 

11 ‘‘$2.25’’. 

12 (c) MODIFICATIONS TO CERTAIN SPECIAL RULES.— 

13 (1) METHODS OF CALCULATING ENERGY SAV14 INGS.— 

15 (A) IN GENERAL.—Paragraph (2) of sec16 tion 179D(d) is amended— 

17 (i) by inserting ‘‘, except that the Sec18 retary shall use Standard 90.1–2001 in 

19 lieu of the California title 24 energy stand20 ards and the tables contained therein and 

21 the Secretary may add requirements from 

22 Standard 90.1–2001 (or any successor 

23 standard)’’ before the period at the end, 

24 and 


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1 (ii) by adding at the end the following 

2 new sentence: ‘‘The calculation methods 

3 contained in such regulations shall also 

4 provide for the calculation of appropriate 

5 energy savings for design methods and 

6 technologies not otherwise credited in such 

7 manual or standard, including energy sav8 ings associated with natural ventilation, 

9 evaporative cooling, automatic lighting con10 trols (such as occupancy sensors, 

11 photocells, and time clocks), day lighting, 

12 designs utilizing semi-conditioned spaces 

13 which maintain adequate comfort condi14 tions without air conditioning or without 

15 heating, improved fan system efficiency 

16 (including reductions in static pressure), 

17 advanced unloading mechanisms for me18 chanical cooling (such as multiple or vari19 able speed compressors), on-site generation 

20 of electricity (including combined heat and 

21 power systems, fuel cells, and renewable 

22 energy generation such as solar energy), 

23 and wiring with lower energy losses than 

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1 quirements for building power distribution 

2 systems.’’. 

3 (B) REQUIREMENTS FOR COMPUTER SOFT4 WARE USED IN CALCULATING ENERGY AND

5 POWER CONSUMPTION COSTS.—Paragraph 

6 (3)(B) of section 179D(d) is amended by strik7 ing ‘‘and’’ at the end of clause (ii), by striking 

8 the period at the end of clause (iii) and insert9 ing ‘‘, and’’, and by adding at the end the fol10 lowing: 

11 ‘‘(iv) which automatically— 

12 ‘‘(I) generates the features, en13 ergy use, and energy and power con14 sumption costs of a reference building 

15 which meets Standard 90.1–2001, 

16 ‘‘(II) generates the features, en17 ergy use, and energy and power con18 sumption costs of a compliant build19 ing or system which reduces the an20 nual energy and power costs by 50 

21 percent compared to Standard 90.1– 

22 2001, and 

23 ‘‘(III) compares such features, 

24 energy use, and consumption costs to 

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1 sumption costs of the building or sys2 tem with respect to which the calcula3 tion is being made.’’. 

4 (2) TARGETS FOR PARTIAL ALLOWANCE OF

5 CREDIT.—Paragraph (1)(B) of section 179D(d) is 

6 amended— 

7 (A) by striking ‘‘The Secretary’’ and in8 serting the following: 

9 ‘‘(i) IN GENERAL.—The Secretary’’, 

10 and 

11 (B) by adding at the end the following: 

12 ‘‘(ii) ADDITIONAL REQUIREMENTS.— 

13 For purposes of clause (i)— 

14 ‘‘(I) the Secretary shall deter15 mine prescriptive criteria that can be 

16 modeled explicitly for reference build17 ings which meet the requirements of 

18 subsection (c)(1)(D) for different 

19 building types and regions, 

20 ‘‘(II) a system may be certified 

21 as meeting the target under subpara22 graph (A)(ii) if the appropriate ref23 erence building either meets the re24 quirements of subsection (c)(1)(D) 

25 with such system rather than the 


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1 comparable reference system (using 

2 the calculation under paragraph (2)) 

3 or meets the relevant prescriptive cri4 teria under subclause (I), and 

5 ‘‘(III) the lighting system target 

6 shall be based on lighting power den7 sity, except that it shall allow lighting 

8 controls credits that trade off for 

9 lighting power density savings based 

10 on section 3.2.2 of the 2005 Cali11 fornia Nonresidential Alternative Cal12 culation Method Approval Manual. 

13 ‘‘(B) PUBLICATION.—The Secretary shall 

14 publish in the Federal Register the bases for 

15 the target levels established in the regulations 

16 under clause (i).’’. 

17 (d) ALTERNATIVE STANDARDS.—Section 179D(d) is 

18 amended by adding at the end the following new para19 graph: 

20 ‘‘(7) ALTERNATIVE STANDARDS PENDING

21 FINAL REGULATIONS.—Until such time as the Sec22 retary issues final regulations under paragraph 

23 (1)(B)— 

24 ‘‘(A) in the case of property which is part 

25 of a building envelope, the building envelope 


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1 system target under paragraph (1)(A)(ii) shall 

2 be a 7 percent reduction in total annual energy 

3 and power costs (determined in the same man4 ner as under subsection (c)(1)(D)), and 

5 ‘‘(B) in the case of property which is part 

6 of the heating, cooling, ventilation, and hot 

7 water systems, the heating, cooling, ventilation, 

8 and hot water system shall be treated as meet9 ing the target under paragraph (1)(A)(ii) if it 

10 would meet the requirement in subsection 

11 (c)(1)(D) if combined with a building envelope 

12 system and lighting system which met their re13 spective targets under paragraph (1)(A)(ii) (in14 cluding interim targets in effect under sub15 section (f) and subparagraph (A)).’’. 

16 (e) MODIFICATIONS TO LIGHTING STANDARDS.— 

17 (1) STANDARDS TO BE ALTERNATE STAND18 ARDS.—Subsection (f) of section 179D is amend19 ed— 

20 (A) by striking ‘‘INTERIM’’ in the heading 

21 and inserting ‘‘ALTERNATIVE’’, and 

22 (B) by inserting ‘‘, or, if the taxpayer 

23 elects, in lieu of the target set forth in such 

24 final regulations’’ after ‘‘lighting system’’ at the 

25 end of the matter preceding paragraph (1). 


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1 (2) QUALIFIED INDIVIDUALS.—Section 

2 179D(d)(6)(C) is amended by adding at the end the 

3 following: ‘‘For purposes of certification of whether 

4 the alternative target for lighting systems under 

5 subsection (f) is met, individuals qualified to deter6 mine compliance shall include individuals who are 

7 certified as Lighting Certified (LC) by the National 

8 Council on Qualifications for the Lighting Profes9 sions, Certified Energy Managers (CEM) by the As10 sociation of Energy Engineers, and LEED Accred11 ited Professionals (AP) by the U.S. Green Buildings 

12 Council.’’. 

13 (3) REQUIREMENT FOR BILEVEL SWITCHING.— 

14 Section 179D(f) is amended by adding at the end 

15 the following new paragraph: 

16 ‘‘(3) APPLICATION OF SUBSECTION TO BILEVEL

17 SWITCHING.— 

18 ‘‘(A) IN GENERAL.—Notwithstanding para19 graph (2)(C)(i), this subsection shall apply to a 

20 system which does not include provisions for 

21 bilevel switching if the reduction in lighting 

22 power density is at least 37.5 percent of the 

23 minimum requirements in Table 9.3.1.1 or 

24 Table 9.3.1.2 (not including additional interior 

25 lighting allowances) of Standard 90.1–2001. 


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1 ‘‘(B) REDUCTION IN DEDUCTION.—In the 

2 case of a system to which this subsection ap3 plies by reason of subparagraph (A), paragraph 

4 (2) shall be applied— 

5 ‘‘(i) by striking ‘40 percent’ and in6 serting ‘50 percent’ in subparagraph (A) 

7 thereof, and 

8 ‘‘(ii) in subparagraph (B)(ii) there9 of— 

10 ‘‘(I) by striking ‘25 percentage 

11 points’ and inserting ‘37.5 percentage 

12 points’; and 

13 ‘‘(II) by striking ‘15’ and insert14 ing ‘12.5’.’’. 

15 (f) PUBLIC PROPERTY.—Paragraph (4) of section 

16 179(d) is amended by striking ‘‘the Secretary shall pro17 mulgate a regulation to allow the allocation of the deduc18 tion’’ and inserting ‘‘the deduction under this section shall 

19 be allowed’’. 

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

21 this section shall apply to property placed in service in 

22 taxable years beginning after the date of the enactment 

23 of this Act. 

Æ 


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