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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3669 Introduced in Senate (IS)]

110th CONGRESS
  2d Session
                                S. 3669

     To reduce gas prices by promoting domestic energy production, 
     alternative energy, and conservation, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            October 1 (legislative day, September 17), 2008

 Mr. Voinovich introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
     To reduce gas prices by promoting domestic energy production, 
     alternative energy, and conservation, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Harmonizing 
America's Energy, Economy, Environment, and National Security Act of 
2008''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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

                  Subtitle A--Outer Continental Shelf

Sec. 101. Termination of prohibitions on expenditures for, and 
                            withdrawals from, offshore and onshore 
                            leasing and other limitations on energy 
                            production.
Sec. 102. Coordination with Secretary of Defense on leasing.
Sec. 103. Sharing of revenues.
       Subtitle B--Leasing Program for Land Within Coastal Plain

Sec. 111. Definitions.
Sec. 112. Leasing program for land within the Coastal Plain.
Sec. 113. Lease sales.
Sec. 114. Grant of leases by the Secretary.
Sec. 115. Lease terms and conditions.
Sec. 116. Coastal plain environmental protection.
Sec. 117. Rights-of-way and easements across coastal plain.
Sec. 118. Conveyance.
Sec. 119. Local government impact aid and community service assistance.
Sec. 120. Allocation of revenues.
                         Subtitle C--Oil Shale

Sec. 131. Removal of prohibition on final regulations for commercial 
                            leasing program for oil shale resources on 
                            public land.
             TITLE II--ALTERNATIVE ENERGY AND CONSERVATION

 Subtitle A--Conservation Reserve and Renewable Energy Reserve Accounts

Sec. 201. Conservation Reserve and Renewable Energy Reserve Accounts.
Subtitle B--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

Sec. 211. Procurement and acquisition of alternative fuels.

                  TITLE I--DOMESTIC ENERGY PRODUCTION

                  Subtitle A--Outer Continental Shelf

SEC. 101. TERMINATION OF PROHIBITIONS ON EXPENDITURES FOR, AND 
              WITHDRAWALS FROM, OFFSHORE AND ONSHORE LEASING AND OTHER 
              LIMITATIONS ON ENERGY PRODUCTION.

    (a) Prohibitions on Expenditures.--Notwithstanding any other 
provision of law, all provisions of Federal law that prohibit the 
expenditure of appropriated funds to conduct natural gas, oil, oil 
shale, and other energy production leasing, preleasing, and related 
activities on Federal land shall have no force or effect with respect 
to the activities.
    (b) Revocation Withdrawals.--Notwithstanding any other provision of 
law, all withdrawals of Federal submerged land of the outer Continental 
Shelf from leasing (including withdrawals by the President under 
section 12(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1341(a)), are revoked and are no longer in force or effect with respect 
to the leasing of areas for exploration for, and development and 
production of, natural gas and oil.
    (c) Gulf of Mexico Oil and Gas.--Section 104 of the Gulf of Mexico 
Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) 
is repealed.
    (d) Conforming Amendments.--
            (1) Sections 104 and 105 of the Department of the Interior, 
        Environment, and Related Agencies Appropriations Act, 2008 
        (Public Law 110-161; 121 Stat. 2118) are repealed.
            (2) Section 103(a) of the Gulf of Mexico Energy Security 
        Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is 
        amended by striking ``Except as provided in section 104, the'' 
        and inserting ``The''.

SEC. 102. COORDINATION WITH SECRETARY OF DEFENSE ON LEASING.

    The Outer Continental Shelf Lands Act is amended by inserting after 
section 9 (43 U.S.C. 1338) the following:

``SEC. 10. COORDINATION WITH SECRETARY OF DEFENSE ON LEASING.

    ``(a) In General.--The Secretary shall consult with the Secretary 
of Defense regarding military operations needs for the outer 
Continental Shelf.
    ``(b) Conflicts.--
            ``(1) In general.--The Secretary shall work with the 
        Secretary of Defense to resolve any conflict that may arise 
        between operations described in subsection (a) and leasing 
        under this Act.
            ``(2) Unresolved issues.--If the Secretary and the 
        Secretary of Defense are unable to resolve any conflict 
        described in paragraph (1), any unresolved issue shall be 
        referred by the Secretaries to the President in a timely 
        fashion for immediate resolution.''.

SEC. 103. SHARING OF REVENUES.

    (a) In General.--Section 8(g) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337(g)) is amended--
            (1) in paragraph (2), by striking ``(2) Notwithstanding'' 
        and inserting the following:
            ``(2) Disposition of revenues.--Except as provided in 
        paragraph (6) and notwithstanding'';
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (7) and (8), respectively; and
            (3) by inserting after paragraph (5) the following:
            ``(6) Bonus bids and royalties under qualified leases.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Adjacent state.--The term `adjacent 
                        State' means, with respect to any program, 
                        plan, lease sale, leased tract, or other 
                        activity proposed, conducted, or approved 
                        pursuant to this Act, any State the laws of 
                        which are declared, pursuant to section 
                        4(a)(2), to be the law of the United States for 
                        the portion of the outer Continental Shelf on 
                        which the program, plan, lease sale, leased 
                        tract, or activity applies or is, or is 
                        proposed to be, conducted.
                            ``(ii) Adjacent zone.--The term `adjacent 
                        zone' means, with respect to any program, plan, 
                        lease sale, leased tract, or other activity 
                        proposed, conducted, or approved pursuant to 
                        this Act, the portion of the outer Continental 
                        Shelf for which the laws of an adjacent State 
                        are declared, pursuant to section 4(a)(2), to 
                        be the law of the United States.
                            ``(iii) Producing state.--The term 
                        `producing State' means an adjacent State 
                        having an adjacent zone containing leased 
                        tracts from which are derived bonus bids and 
                        royalties under a lease under this Act.
                            ``(iv) Qualified lease.--The term 
                        `qualified lease' means a natural gas or oil 
                        lease made available under this Act granted 
                        after the date of enactment of the Harmonizing 
                        America's Energy, Economy, Environment, and 
                        National Security Act of 2008, for an area that 
                        is available for leasing as a result of 
                        enactment of section 101 of that Act.
                            ``(v) State.--The term `State' includes--
                                    ``(I) the Commonwealth of Puerto 
                                Rico; and
                                    ``(II) any other territory or 
                                possession of the United States.
                    ``(B) New leases.--Of amounts received by the 
                United States as bonus bids, royalties, rentals, and 
                other sums collected under any qualified lease on 
                submerged land made available for leasing under this 
                Act by the enactment of section 101 of the Harmonizing 
                America's Energy, Economy, Environment, and National 
                Security Act of 2008 that are located within the 
                seaward boundaries of a State established under section 
                4(a)(2)(A)--
                            ``(i) 27 percent shall be paid to producing 
                        States with respect to that submerged land;
                            ``(ii) 25 percent shall be deposited in the 
                        Conservation Reserve Account established by 
                        section 201(a)(1) of the Harmonizing America's 
                        Energy, Economy, Environment, and National 
                        Security Act of 2008;
                            ``(iii) 25 percent shall be deposited in 
                        the Renewable Energy Reserve Account 
                        established by section 201(a)(2) of that Act;
                            ``(iv) 20 percent shall be deposited in the 
                        general fund of the Treasury of the United 
                        States for debt reduction; and
                            ``(v) subject to the availability of 
                        appropriations, 3 percent may be available to 
                        the Secretary of Health and Human Services for 
                        carrying out the low-income home energy 
                        assistance program established under the Low-
                        Income Home Energy Assistance Act of 1981 (42 
                        U.S.C. 8621 et seq.).
                    ``(C) Leased tract that lies partially within the 
                seaward boundaries of a state.--In the case of a leased 
                tract that lies partially within the seaward boundaries 
                of a State, the amount of bonus bids and royalties from 
                the tract that is subject to subparagraph (B) with 
                respect to the State shall be a percentage of the total 
                amounts of bonus bids and royalties from the tract that 
                is equivalent to the total percentage of the surface 
                acreage of the tract that lies within the seaward 
                boundaries.
                    ``(D) Application.--This paragraph applies to bonus 
                bids and royalties received by the United States under 
                qualified leases after September 30, 2008.''.
    (b) Establishment of State Seaward Boundaries.--Section 4(a)(2) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)) is 
amended--
            (1) by striking ``(2)(A) To'' and inserting the following:
            ``(2) Laws of adjacent states; international boundary 
        disputes.--
                    ``(A) Laws of adjacent states.--
                            ``(i) In general.--To''; and
            (2) in subparagraph (A)--
                    (A) in the first sentence, by striking ``, and the 
                President'' and all that follows through the end of the 
                sentence and inserting a period;
                    (B) by inserting after clause (i) (as designated by 
                paragraph (1)) the following:
                            ``(ii) Extended lines.--
                                    ``(I) In general.--Subject to 
                                subclauses (II) and (III), the extended 
                                lines described in clause (i) shall be 
                                considered to be indicated on the maps 
                                for each outer Continental Shelf region 
                                entitled--
                                            ``(aa) `Alaska OCS Region 
                                        State Adjacent Zone and OCS 
                                        Planning Areas';
                                            ``(bb) `Pacific OCS Region 
                                        State Adjacent Zones and OCS 
                                        Planning Areas';
                                            ``(cc) `Gulf of Mexico OCS 
                                        Region State Adjacent Zones and 
                                        OCS Planning Areas'; and
                                            ``(dd) `Atlantic OCS Region 
                                        State Adjacent Zones and OCS 
                                        Planning Areas'.
                                    ``(II) Maps.--For the purpose of 
                                subclause (I), all of the maps 
                                described in subclause (I) are dated 
                                September 2005 and on file in the 
                                Office of the Director, Minerals 
                                Management Service.
                                    ``(III) Gulf of mexico.--Subclause 
                                (I) shall not apply with respect to the 
                                treatment under section 105 of the Gulf 
                                of Mexico Energy Security Act of 2006 
                                (43 U.S.C. 1331 note; Public Law 109-
                                432) of qualified outer Continental 
                                Shelf revenues deposited and disbursed 
                                under section 105(a)(2) of that Act.''; 
                                and
                    (C) by striking ``All of such applicable laws'' and 
                inserting the following:
                            ``(iii) Administration; enforcement.--The 
                        applicable laws described in subparagraph 
                        (A)''.

       Subtitle B--Leasing Program for Land Within Coastal Plain

SEC. 111. DEFINITIONS.

    In this subtitle:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area identified as the ``1002 Coastal Plain Area'' on the map.
            (2) Federal agreement.--The term ``Federal Agreement'' 
        means the Federal Agreement and Grant Right-of-Way for the 
        Trans-Alaska Pipeline issued on January 23, 1974, in accordance 
        with section 28 of the Mineral Leasing Act (30 U.S.C. 185) and 
        the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et 
        seq.).
            (3) Final statement.--The term ``Final Statement'' means 
        the final legislative environmental impact statement on the 
        Coastal Plain, dated April 1987, and prepared pursuant to 
        section 1002 of the Alaska National Interest Lands Conservation 
        Act (16 U.S.C. 3142) and section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
            (4) Map.--The term ``map'' means the map entitled ``Arctic 
        National Wildlife Refuge'', dated September 2005, and prepared 
        by the United States Geological Survey.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior (or the designee of the Secretary), acting 
        through the Director of the Bureau of Land Management in 
        consultation with the Director of the United States Fish and 
        Wildlife Service and in coordination with a State coordinator 
        appointed by the Governor of the State of Alaska.

SEC. 112. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

    (a) In General.--
            (1) Authorization.--Congress authorizes the exploration, 
        leasing, development, production, and economically feasible and 
        prudent transportation of oil and gas in and from the Coastal 
        Plain.
            (2) Actions.--The Secretary shall take such actions as are 
        necessary--
                    (A) to establish and implement, in accordance with 
                this subtitle, a competitive oil and gas leasing 
                program that will result in an environmentally sound 
                program for the exploration, development, and 
                production of the oil and gas resources of the Coastal 
                Plain while taking into consideration the interests and 
                concerns of residents of the Coastal Plain, which is 
                the homeland of the Kaktovikmiut Inupiat; and
                    (B) to administer this subtitle through 
                regulations, lease terms, conditions, restrictions, 
                prohibitions, stipulations, and other provisions that--
                            (i) ensure the oil and gas exploration, 
                        development, and production activities on the 
                        Coastal Plain will result in no significant 
                        adverse effect on fish and wildlife, their 
                        habitat, subsistence resources, and the 
                        environment; and
                            (ii) require the application of the best 
                        commercially available technology for oil and 
                        gas exploration, development, and production to 
                        all exploration, development, and production 
                        operations under this subtitle in a manner that 
                        ensures the receipt of fair market value by the 
                        public for the mineral resources to be leased.
    (b) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act (16 U.S.C. 3143) is repealed.
            (2) Conforming amendment.--The table of contents contained 
        in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
        striking the item relating to section 1003.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
        seq.)--
                    (A) the oil and gas pre-leasing and leasing 
                program, and activities authorized by this section in 
                the Coastal Plain, shall be considered to be compatible 
                with the purposes for which the Arctic National 
                Wildlife Refuge was established; and
                    (B) no further findings or decisions shall be 
                required to implement that program and those 
                activities.
            (2) Adequacy of the department of the interior's 
        legislative environmental impact statement.--The Final 
        Statement shall be considered to satisfy the requirements under 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
        et seq.) that apply with respect to pre-leasing activities, 
        including exploration programs and actions authorized to be 
        taken by the Secretary to develop and promulgate the 
        regulations for the establishment of a leasing program 
        authorized by this subtitle before the conduct of the first 
        lease sale.
            (3) Compliance with nepa for other actions.--
                    (A) In general.--Before conducting the first lease 
                sale under this subtitle, the Secretary shall prepare 
                an environmental impact statement in accordance with 
                the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) with respect to the actions 
                authorized by this subtitle that are not referred to in 
                paragraph (2).
                    (B) Identification and analysis.--Notwithstanding 
                any other provision of law, in carrying out this 
                paragraph, the Secretary shall not be required--
                            (i) to identify nonleasing alternative 
                        courses of action; or
                            (ii) to analyze the environmental effects 
                        of those courses of action.
                    (C) Identification of preferred action.--Not later 
                than 18 months after the date of enactment of this Act, 
                the Secretary shall--
                            (i) identify only a preferred action and a 
                        single leasing alternative for the first lease 
                        sale authorized under this subtitle; and
                            (ii) analyze the environmental effects and 
                        potential mitigation measures for those 2 
                        alternatives.
                    (D) Public comments.--In carrying out this 
                paragraph, the Secretary shall consider only public 
                comments that are filed not later than 20 days after 
                the date of publication of a draft environmental impact 
                statement.
                    (E) Effect of compliance.--Notwithstanding any 
                other provision of law, compliance with this paragraph 
                shall be considered to satisfy all requirements for the 
                analysis and consideration of the environmental effects 
                of proposed leasing under this subtitle.
    (d) Relationship to State and Local Authority.--Nothing in this 
subtitle expands or limits any State or local regulatory authority.
    (e) Special Areas.--
            (1) Designation.--
                    (A) In general.--The Secretary, after consultation 
                with the State of Alaska, the North Slope Borough, 
                Alaska, and the City of Kaktovik, Alaska, may designate 
                not more than 45,000 acres of the Coastal Plain as a 
                special area if the Secretary determines that the 
                special area would be of such unique character and 
                interest as to require special management and 
                regulatory protection.
                    (B) Sadlerochit spring area.--The Secretary shall 
                designate as a special area in accordance with 
                subparagraph (A) the Sadlerochit Spring area, 
                comprising approximately 4,000 acres as depicted on the 
                map.
            (2) Management.--The Secretary shall manage each special 
        area designated under this subsection in a manner that--
                    (A) respects and protects the Native people of the 
                area; and
                    (B) preserves the unique and diverse character of 
                the area, including fish, wildlife, subsistence 
                resources, and cultural values of the area.
            (3) Exclusion from leasing or surface occupancy.--
                    (A) In general.--The Secretary may exclude any 
                special area designated under this subsection from 
                leasing.
                    (B) No surface occupancy.--If the Secretary leases 
                all or a portion of a special area for the purposes of 
                oil and gas exploration, development, production, and 
                related activities, there shall be no surface occupancy 
                of the land comprising the special area.
            (4) Directional drilling.--Notwithstanding any other 
        provision of this subsection, the Secretary may lease all or a 
        portion of a special area under terms that permit the use of 
        horizontal drilling technology from sites on leases located 
        outside the special area.
    (f) Limitation on Closed Areas.--The Secretary may not close land 
within the Coastal Plain to oil and gas leasing or to exploration, 
development, or production except in accordance with this subtitle.
    (g) Regulations.--
            (1) In general.--Not later than 15 months after the date of 
        enactment of this Act, in consultation with appropriate 
        agencies of the State of Alaska, the North Slope Borough, 
        Alaska, and the City of Kaktovik, Alaska, the Secretary shall 
        issue such regulations as are necessary to carry out this 
        subtitle, including rules and regulations relating to 
        protection of the fish and wildlife, fish and wildlife habitat, 
        and subsistence resources of the Coastal Plain.
            (2) Revision of regulations.--The Secretary may 
        periodically review and, as appropriate, revise the rules and 
        regulations issued under paragraph (1) to reflect any 
        significant scientific or engineering data that come to the 
        attention of the Secretary.

SEC. 113. LEASE SALES.

    (a) In General.--Land may be leased pursuant to this subtitle to 
any person qualified to obtain a lease for deposits of oil and gas 
under the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Coastal Plain for inclusion in, or exclusion (as 
        provided in subsection (c)) from, a lease sale;
            (2) the holding of lease sales after that nomination 
        process; and
            (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this subtitle shall 
be by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--For the first lease sale under 
this subtitle, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) not later than 22 months after the date of enactment of 
        this Act, conduct the first lease sale under this subtitle;
            (2) not later than September 30, 2012, conduct a second 
        lease sale under this subtitle; and
            (3) conduct additional sales at appropriate intervals if 
        sufficient interest in exploration or development exists to 
        warrant the conduct of the additional sales.

SEC. 114. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--Upon payment by a lessee of such bonus as may be 
accepted by the Secretary, the Secretary may grant to the highest 
responsible qualified bidder in a lease sale conducted pursuant to 
section 113 a lease for any land on the Coastal Plain.
    (b) Subsequent Transfers.--
            (1) In general.--No lease issued under this subtitle may be 
        sold, exchanged, assigned, sublet, or otherwise transferred 
        except with the approval of the Secretary.
            (2) Condition for approval.--Before granting any approval 
        described in paragraph (1), the Secretary shall consult with 
        and give due consideration to the opinion of the Attorney 
        General.

SEC. 115. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this 
subtitle shall--
            (1) provide for the payment of a royalty of not less than 
        16\1/2\ percent of the amount or value of the production 
        removed or sold from the lease, as determined by the Secretary 
        in accordance with regulations applicable to other Federal oil 
        and gas leases;
            (2) provide that the Secretary may close, on a seasonal 
        basis, such portions of the Coastal Plain to exploratory 
        drilling activities as are necessary to protect caribou calving 
        areas and other species of fish and wildlife;
            (3) require that each lessee of land within the Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of land within the Coastal Plain and any other Federal land 
        that is adversely affected in connection with exploration, 
        development, production, or transportation activities within 
        the Coastal Plain conducted by the lessee or by any of the 
        subcontractors or agents of the lessee;
            (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, that reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
            (5) provide that the standard of reclamation for land 
        required to be reclaimed under this subtitle shall be, to the 
        maximum extent practicable--
                    (A) a condition capable of supporting the uses that 
                the land was capable of supporting prior to any 
                exploration, development, or production activities; or
                    (B) upon application by the lessee, to a higher or 
                better standard, as approved by the Secretary;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, fish and wildlife habitat, subsistence 
        resources, and the environment as required under section 
        112(a)(2);
            (7) provide that each lessee, and each agent and contractor 
        of a lessee, use their best efforts to provide a fair share of 
        employment and contracting for Alaska Natives and Alaska Native 
        Corporations from throughout the State of Alaska, as determined 
        by the level of obligation previously agreed to in the Federal 
        Agreement; and
            (8) contain such other provisions as the Secretary 
        determines to be necessary to ensure compliance with this 
        subtitle and regulations issued under this subtitle.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this subtitle, and in recognizing the 
proprietary interest of the Federal Government in labor stability and 
in the ability of construction labor and management to meet the 
particular needs and conditions of projects to be developed under the 
leases issued pursuant to this subtitle (including the special concerns 
of the parties to those leases), shall require that each lessee, and 
each agent and contractor of a lessee, under this subtitle negotiate to 
obtain a project labor agreement for the employment of laborers and 
mechanics on production, maintenance, and construction under the lease.

SEC. 116. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard To Govern Authorized 
Coastal Plain Activities.--In accordance with section 112, the 
Secretary shall administer this subtitle through regulations, lease 
terms, conditions, restrictions, prohibitions, stipulations, or other 
provisions that--
            (1) ensure, to the maximum extent practicable, that oil and 
        gas exploration, development, and production activities on the 
        Coastal Plain will result in no significant adverse effect on 
        fish and wildlife, fish and wildlife habitat, and the 
        environment;
            (2) require the application of the best commercially 
        available technology for oil and gas exploration, development, 
        and production on all new exploration, development, and 
        production operations; and
            (3) ensure that the maximum surface acreage covered in 
        connection with the leasing program by production and support 
        facilities, including airstrips and any areas covered by gravel 
        berms or piers for support of pipelines, does not exceed 2,000 
        acres on the Coastal Plain.
    (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
require, with respect to any proposed drilling and related activities 
on the Coastal Plain, that--
            (1) a site-specific environmental analysis be made of the 
        probable effects, if any, that the drilling or related 
        activities will have on fish and wildlife, fish and wildlife 
        habitat, subsistence resources, subsistence uses, and the 
        environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the maximum extent practicable) any 
        significant adverse effect identified under paragraph (1); and
            (3) the development of the plan occur after consultation 
        with--
                    (A) each agency having jurisdiction over matters 
                mitigated by the plan;
                    (B) the State of Alaska;
                    (C) North Slope Borough, Alaska; and
                    (D) the City of Kaktovik, Alaska.
    (c) Regulations To Protect Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this subtitle, the Secretary shall 
prepare and issue regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, or other measures designed to ensure, to 
the maximum extent practicable, that the activities carried out on the 
Coastal Plain under this subtitle are conducted in a manner consistent 
with the purposes and environmental requirements of this subtitle.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this subtitle shall require--
            (1) compliance with all applicable provisions of Federal 
        and State environmental law (including regulations);
            (2) implementation of and compliance with--
                    (A) standards that are at least as effective as the 
                safety and environmental mitigation measures, as 
                described in items 1 through 29 on pages 167 through 
                169 of the Final Statement, on the Coastal Plain;
                    (B) seasonal limitations on exploration, 
                development, and related activities, as necessary, to 
                avoid significant adverse effects during periods of 
                concentrated fish and wildlife breeding, denning, 
                nesting, spawning, and migration;
                    (C) design safety and construction standards for 
                all pipelines and any access and service roads that 
                minimize, to the maximum extent practicable, adverse 
                effects on--
                            (i) the passage of migratory species (such 
                        as caribou); and
                            (ii) the flow of surface water by requiring 
                        the use of culverts, bridges, or other 
                        structural devices;
                    (D) prohibitions on general public access to, and 
                use of, all pipeline access and service roads;
                    (E) stringent reclamation and rehabilitation 
                requirements in accordance with this subtitle for the 
                removal from the Coastal Plain of all oil and gas 
                development and production facilities, structures, and 
                equipment on completion of oil and gas production 
                operations, except in a case in which the Secretary 
                determines that those facilities, structures, or 
                equipment--
                            (i) would assist in the management of the 
                        Arctic National Wildlife Refuge; and
                            (ii) are donated to the United States for 
                        that purpose;
                    (F) appropriate prohibitions or restrictions on--
                            (i) access by all modes of transportation;
                            (ii) sand and gravel extraction; and
                            (iii) use of explosives;
                    (G) reasonable stipulations for protection of 
                cultural and archaeological resources;
                    (H) measures to protect groundwater and surface 
                water, including--
                            (i) avoidance, to the maximum extent 
                        practicable, of springs, streams, and river 
                        systems;
                            (ii) the protection of natural surface 
                        drainage patterns and wetland and riparian 
                        habitats; and
                            (iii) the regulation of methods or 
                        techniques for developing or transporting 
                        adequate supplies of water for exploratory 
                        drilling; and
                    (I) research, monitoring, and reporting 
                requirements;
            (3) that exploration activities (except surface geological 
        studies) be limited to the period between approximately 
        November 1 and May 1 of each year and be supported, if 
        necessary, by ice roads, winter trails with adequate snow 
        cover, ice pads, ice airstrips, and air transport methods 
        (except that those exploration activities may be permitted at 
        other times if the Secretary determines that the exploration 
        will have no significant adverse effect on fish and wildlife, 
        fish and wildlife habitat, subsistence resources, and the 
        environment of the Coastal Plain);
            (4) consolidation of facility siting;
            (5) avoidance or reduction of air traffic-related 
        disturbance to fish and wildlife;
            (6) treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including, in accordance with 
        applicable Federal and State environmental laws (including 
        regulations)--
                    (A) preparation of an annual waste management 
                report;
                    (B) development and implementation of a hazardous 
                materials tracking system; and
                    (C) prohibition on the use of chlorinated solvents;
            (7) fuel storage and oil spill contingency planning;
            (8) conduct of periodic field crew environmental briefings;
            (9) avoidance of significant adverse effects on subsistence 
        hunting, fishing, and trapping;
            (10) compliance with applicable air and water quality 
        standards;
            (11) appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited; and
            (12) development and implementation of such other 
        protective environmental requirements, restrictions, terms, or 
        conditions as the Secretary, after consultation with the State 
        of Alaska, North Slope Borough, Alaska, and the City of 
        Kaktovik, Alaska, determines to be necessary.
    (e) Considerations.--In preparing and issuing regulations, lease 
terms, conditions, restrictions, prohibitions, or stipulations under 
this section, the Secretary shall take into consideration--
            (1) the stipulations and conditions that govern the 
        National Petroleum Reserve-Alaska leasing program, as set forth 
        in the 1999 Northeast National Petroleum Reserve-Alaska Final 
        Integrated Activity Plan/Environmental Impact Statement;
            (2) the environmental protection standards that governed 
        the initial Coastal Plain seismic exploration program under 
        parts 37.31 through 37.33 of title 50, Code of Federal 
        Regulations (or successor regulations); and
            (3) the land use stipulations for exploratory drilling on 
        the KIC-ASRC private land described in Appendix 2 of the 
        agreement between Arctic Slope Regional Corporation and the 
        United States dated August 9, 1983.
    (f) Facility Consolidation Planning.--
            (1) In general.--After providing for public notice and 
        comment, the Secretary shall prepare and periodically update a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of oil and gas resources from the Coastal Plain.
            (2) Objectives.--The objectives of the plan shall be--
                    (A) the avoidance of unnecessary duplication of 
                facilities and activities;
                    (B) the encouragement of consolidation of common 
                facilities and activities;
                    (C) the location or confinement of facilities and 
                activities to areas that will minimize impact on fish 
                and wildlife, fish and wildlife habitat, subsistence 
                resources, and the environment;
                    (D) the use of existing facilities, to the maximum 
                extent practicable; and
                    (E) the enhancement of compatibility between 
                wildlife values and development activities.
    (g) Access to Public Land.--The Secretary shall--
            (1) manage public land in the Coastal Plain in accordance 
        with subsections (a) and (b) of section 811 of the Alaska 
        National Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public land in the Coastal Plain for traditional 
        uses.

SEC. 117. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

    For purposes of section 1102(4)(A) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3162(4)(A)), any rights-of-way or 
easements across the Coastal Plain for the exploration, development, 
production, or transportation of oil and gas shall be considered to be 
established incident to the management of the Coastal Plain under this 
section.

SEC. 118. CONVEYANCE.

    Notwithstanding section 1302(h)(2) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3192(h)(2)), to remove any cloud on 
title to land, and to clarify land ownership patterns in the Coastal 
Plain, the Secretary shall--
            (1) to the extent necessary to fulfill the entitlement of 
        the Kaktovik Inupiat Corporation under sections 12 and 14 of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613), 
        as determined by the Secretary, convey to that Corporation the 
        surface estate of the land described in paragraph (1) of Public 
        Land Order 6959, in accordance with the terms and conditions of 
        the agreement between the Secretary, the United States Fish and 
        Wildlife Service, the Bureau of Land Management, and the 
        Kaktovik Inupiat Corporation, dated January 22, 1993; and
            (2) convey to the Arctic Slope Regional Corporation the 
        remaining subsurface estate to which that Corporation is 
        entitled under the agreement between that corporation and the 
        United States, dated August 9, 1983.

SEC. 119. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

    (a) Establishment of Fund.--
            (1) In general.--As a condition on the receipt of funds 
        under section 120(1), the State of Alaska shall establish in 
        the treasury of the State, and administer in accordance with 
        this section, a fund to be known as the ``Coastal Plain Local 
        Government Impact Aid Assistance Fund'' (referred to in this 
        section as the ``Fund'').
            (2) Deposits.--Subject to paragraph (1), the Secretary of 
        the Treasury shall deposit into the Fund, $35,000,000 each year 
        from the amount available under section 120(1).
            (3) Investment.--The Governor of the State of Alaska 
        (referred to in this section as the ``Governor'') shall invest 
        amounts in the Fund in interest-bearing securities of the 
        United States or the State of Alaska.
    (b) Assistance.--The Governor, in cooperation with the Mayor of the 
North Slope Borough, shall use amounts in the Fund to provide 
assistance to North Slope Borough, Alaska, the City of Kaktovik, 
Alaska, and any other borough, municipal subdivision, village, or other 
community in the State of Alaska that is directly impacted by 
exploration for, or the production of, oil or gas on the Coastal Plain 
under this subtitle, or any Alaska Native Regional Corporation acting 
on behalf of the villages and communities within its region whose land 
lies along the right of way of the Trans Alaska Pipeline System, as 
determined by the Governor.
    (c) Application.--
            (1) In general.--To receive assistance under subsection 
        (b), a community or Regional Corporation described in that 
        subsection shall submit to the Governor, or to the Mayor of the 
        North Slope Borough, an application in such time, in such 
        manner, and containing such information as the Governor may 
        require.
            (2) Action by north slope borough.--The Mayor of the North 
        Slope Borough shall submit to the Governor each application 
        received under paragraph (1) as soon as practicable after the 
        date on which the application is received.
            (3) Assistance of governor.--The Governor shall assist 
        communities in submitting applications under this subsection, 
        to the maximum extent practicable.
    (d) Use of Funds.--A community or Regional Corporation that 
receives funds under subsection (b) may use the funds--
            (1) to plan for mitigation, implement a mitigation plan, or 
        maintain a mitigation project to address the potential effects 
        of oil and gas exploration and development on environmental, 
        social, cultural, recreational, and subsistence resources of 
        the community;
            (2) to develop, carry out, and maintain--
                    (A) a project to provide new or expanded public 
                facilities; or
                    (B) services to address the needs and problems 
                associated with the effects described in paragraph (1), 
                including firefighting, police, water and waste 
                treatment, first responder, and other medical services;
            (3) to compensate residents of the Coastal Plain for 
        significant damage to environmental, social, cultural, 
        recreational, or subsistence resources; and
            (4) in the City of Kaktovik, Alaska--
                    (A) to develop a mechanism for providing members of 
                the Kaktovikmiut Inupiat community an opportunity to--
                            (i) monitor development on the Coastal 
                        Plain; and
                            (ii) provide information and 
                        recommendations to the Governor based on 
                        traditional aboriginal knowledge of the natural 
                        resources, flora, fauna, and ecological 
                        processes of the Coastal Plain; and
                    (B) to establish a local coordination office, to be 
                managed by the Mayor of the North Slope Borough, in 
                coordination with the City of Kaktovik, Alaska--
                            (i) to coordinate with and advise 
                        developers on local conditions and the history 
                        of areas affected by development;
                            (ii) to provide to the Committee on 
                        Resources of the House of Representatives and 
                        the Committee on Energy and Natural Resources 
                        of the Senate annual reports on the status of 
                        the coordination between developers and 
                        communities affected by development;
                            (iii) to collect from residents of the 
                        Coastal Plain information regarding the impacts 
                        of development on fish, wildlife, habitats, 
                        subsistence resources, and the environment of 
                        the Coastal Plain; and
                            (iv) to ensure that the information 
                        collected under clause (iii) is submitted to--
                                    (I) developers; and
                                    (II) any appropriate Federal 
                                agency.

SEC. 120. ALLOCATION OF REVENUES.

    Notwithstanding the Mineral Leasing Act (30 U.S.C. 181 et seq.) or 
any other provision of law, of the adjusted bonus, rental, and royalty 
receipts from Federal oil and gas leasing and operations authorized 
under this subtitle:
            (1) 27 percent shall be disbursed to the State of Alaska.
            (2) 25 percent shall be deposited in the Conservation 
        Reserve Account established by section 201(a)(1).
            (3) 25 percent shall be deposited in the Renewable Energy 
        Reserve Account established by section 201(a)(2).
            (4) 20 percent shall be deposited in the general fund of 
        the Treasury of the United States for debt reduction.
            (5) 3 percent shall be available to the Secretary of Health 
        and Human Services for carrying out the low-income home energy 
        assistance program established under the Low-Income Home Energy 
        Assistance Act of 1981 (42 U.S.C. 8621 et seq.).

                         Subtitle C--Oil Shale

SEC. 131. REMOVAL OF PROHIBITION ON FINAL REGULATIONS FOR COMMERCIAL 
              LEASING PROGRAM FOR OIL SHALE RESOURCES ON PUBLIC LAND.

    Section 433 of the Department of the Interior, Environment, and 
Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 
Stat. 2152) is repealed.

             TITLE II--ALTERNATIVE ENERGY AND CONSERVATION

 Subtitle A--Conservation Reserve and Renewable Energy Reserve Accounts

SEC. 201. CONSERVATION RESERVE AND RENEWABLE ENERGY RESERVE ACCOUNTS.

    (a) In General.--For budgetary purposes, there are established in 
the Treasury of the United States as separate accounts--
            (1) the Conservation Reserve Account, to offset the cost of 
        legislation enacted on or after the date of enactment of this 
        Act for conservation programs (including weatherization) and 
        conservation tax credits and deductions for energy efficiency 
        in the residential, commercial, industrial, and public sectors 
        (including conservation districts); and
            (2) the Renewable Energy Reserve Account, to offset the 
        cost of legislation enacted on or after the date of enactment 
        of this Act--
                    (A) to accelerate the use of cleaner domestic 
                energy resources and alternative fuels;
                    (B) to promote the use of energy-efficient products 
                and practices; and
                    (C) to increase research, development, and 
                deployment of clean renewable energy and efficiency 
                technologies and job training programs for those 
                purposes.
    (b) Procedure for Adjustments.--
            (1) Budget committee chairman.--After the reporting of a 
        bill or joint resolution, or the offering of an amendment or 
        the submission of a conference report for a bill or joint 
        resolution, that provides funding for the purposes described in 
        paragraph (1) or (2) of subsection (a) in excess of the amount 
        of the deposits under this Act or an amendment made by this Act 
        for those purposes for fiscal year 2009, the chairman of the 
        Committee on the Budget of the applicable House of Congress 
        shall make the adjustments described in paragraph (2) for the 
        amount of new budget authority and outlays in that measure and 
        the outlays resulting from the budget authority.
            (2) Matters to be adjusted.--The adjustments referred to in 
        paragraph (1) shall be made to--
                    (A) the discretionary spending limits, if any, 
                specified in the appropriate concurrent resolution on 
                the budget;
                    (B) the allocations made pursuant to the 
                appropriate concurrent resolution on the budget 
                pursuant to section 302(a) of the Congressional Budget 
                Act of 1974 (2 U.S.C. 633(a)); and
                    (C) the budget aggregates contained in the 
                appropriate concurrent resolution on the budget as 
                required by section 301(a) of the Congressional Budget 
                Act of 1974 (2 U.S.C. 632(a)).
            (3) Amounts of adjustments.--The adjustments referred to in 
        paragraphs (1) and (2) shall not exceed the receipts estimated 
        by the Congressional Budget Office that are attributable to 
        this Act and the amendments made by this Act for the fiscal 
        year in which the adjustments are made.
    (c) Consultation.--Legislation shall not be treated as legislation 
referred to in subsection (a) unless any expenditure under the 
legislation for a purpose referred to in that subsection may be made 
only after consultation with (as appropriate)--
            (1) the Administrator of the Environmental Protection 
        Agency;
            (2) the Administrator of the National Oceanic and 
        Atmospheric Administration;
            (3) the Secretary of the Army, acting through the Corps of 
        Engineers; and
            (4) the Secretary of State.
    (d) Maintenance of Effort by States.--The Secretary of the 
Interior, the Secretary of Health and Human Services, the Secretary of 
Energy, and any other Federal official with authority to implement 
legislation referred to in subsection (a) shall ensure that financial 
assistance provided to a State under the legislation for any purpose 
with amounts made available under this section or in any legislation 
with respect to which subsection (a) applies supplements, and does not 
replace, the amounts expended by the State for that purpose before the 
date of enactment of this Act.

Subtitle B--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

SEC. 211. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

    Section 526 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17142) is repealed.
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