II 

110TH CONGRESS 

2D SESSION S. 3523 

To provide 8 steps for energy sufficiency, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 18 (legislative day, SEPTEMBER 17), 2008 

Mr. ENZI introduced the following bill; which was read twice and referred to 

the Committee on Finance 

A BILL 

To provide 8 steps for energy sufficiency, 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 ‘‘Eight Steps to Energy Sufficiency Act of 2008’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—SAVING AMERICAN ENERGY 

Subtitle A—Plug in Hybrid Technology 

Sec. 101. Advanced batteries for electric drive vehicles. 

Subtitle B—Promoting Energy Efficiency 


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Sec. 111. Expanding information on energy savings techniques. 

TITLE II—INCREASING AMERICAN ENERGY SUPPLY 

Subtitle A—Outer Continental Shelf 

Sec. 201. Publication of projected State lines on outer continental shelf. 

Sec. 202. Production of oil and natural gas in new producing areas. 

Sec. 203. Conforming amendments. 

Subtitle B—Oil Shale Development 

Sec. 211. Removal of prohibition on final regulations for commercial leasing 

program for oil shale resources on public land. 

TITLE III—STREAMLINE PERMITTING 

Subtitle A—Streamline Refinery Permitting Process 

Sec. 301. Refinery permitting process. 

Subtitle B—Application for Permit to Drill Fee Removal 

Sec. 311. Removal of additional fee for new applications for permits to drill. 

Subtitle C—Report on National Environmental Policy Act of 1969 

Sec. 321. Report on National Environmental Policy Act of 1969. 

TITLE IV—INNOVATION 

Sec. 401. Hydrogen installation, infrastructure, and fuel costs. 

Sec. 402. Report on cellulosic ethanol. 

TITLE V—INCENTIVES FOR CLEAN ENERGY 

Subtitle A—Extension of Clean Energy Tax Credits 

Sec. 500. Amendment of 1986 code. 

PART I—EXTENSION OF CLEAN ENERGY PRODUCTION INCENTIVES

Sec. 501. Extension and modification of renewable energy production tax credit. 

Sec. 502. Extension and modification of solar energy and fuel cell investment 

tax credit. 

Sec. 503. Extension and modification of residential energy efficient property 

credit. 

Sec. 504. Extension and modification of credit for clean renewable energy 

bonds. 

Sec. 505. Extension of special rule to implement FERC restructuring policy. 

PART II—EXTENSION OF INCENTIVES TO IMPROVE ENERGY EFFICIENCY

Sec. 511. Extension and modification of credit for energy efficiency improvements to existing homes. 

Sec. 512. Extension and modification of tax credit for energy efficient new 

homes. 

Sec. 513. Extension and modification of energy efficient commercial buildings 

deduction. 


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Sec. 514. Modification and extension of energy efficient appliance credit for appliances produced after 2007. 

Subtitle B—Mineral Royalty Payments 

Sec. 521. Termination of authority to deduct amounts from share of oil and gas 

leasing revenues provided to States. 

TITLE VI—COAL-TECHNOLOGY DEVELOPMENT 

Subtitle A—Coal to Liquids 

Sec. 601. Definitions. 

Sec. 602. Coal-to-liquid fuel loan guarantee program. 

Sec. 603. Coal-to-liquid facilities loan program. 

Sec. 604. Location of coal-to-liquid manufacturing facilities. 

Sec. 605. Strategic petroleum reserve. 

Sec. 606. Authorization to conduct research, development, testing, and evaluation of assured domestic fuels. 

Sec. 607. Coal-to-liquid long-term fuel procurement and department of defense 

development. 

Sec. 608. Report on emissions of Fischer-Tropsch products used as transportation fuels. 

Subtitle B—Tax Incentives for Coal-to-Liquids Production 

Sec. 611. Credit for investment in coal-to-liquid fuels projects. 

Sec. 612. Temporary expensing for equipment used in coal-to-liquid fuels process. 

Sec. 613. Extension of alternative fuel credit for fuel derived from coal through 

the fischer-tropsch process. 

Sec. 614. Modifications to enhanced oil recovery credit. 

Sec. 615. Allowance of enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit against the alternative minimum tax. 

Subtitle C—Clean Coal Technology Deployment 

Sec. 621. Carbon sequestration and capture. 

Subtitle D—Reduced Carbon Emissions Through Clean Coal Technologies 

Sec. 631. Statement of policy. 

Sec. 632. Clean coal research and development. 

Sec. 633. Clean coal demonstration. 

Sec. 634. Identification of clean coal research, development, and demonstration 

projects. 

Subtitle E—Clean Coal Technology Incentives 

Sec. 641. Short title. 

Sec. 642. Modification of special rules for atmospheric pollution control facilities. 

Sec. 643. Extension and modification of production credit for closed-loop biomass. 

Sec. 644. Qualifying new clean coal power plant credit. 

Sec. 645. Investment credit for equipment used to capture, transport, and store 

carbon dioxide. 


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Sec. 646. Tax credit for carbon dioxide sequestration in the generation of electricity. 

Sec. 647. Clean energy coal bonds. 

TITLE VII—NUCLEAR ENERGY 

Subtitle A—Nuclear Waste Access to Yucca Mountain 

Sec. 701. Definitions. 

Sec. 702. Withdrawal of land. 

Sec. 703. Receipt and storage facilities. 

Sec. 704. Repeal of capacity limitation. 

Sec. 705. Infrastructure activities. 

Sec. 706. Rail line. 

Sec. 707. Nuclear Waste Fund. 

Sec. 708. Waste confidence. 

Subtitle B—Tax Provisions 

Sec. 711. Investment tax credit for investments in nuclear power facilities. 

Sec. 712. 5-year accelerated depreciation for new nuclear power facilities. 

TITLE VIII—LEASING PROGRAM FOR LAND WITHIN COASTAL 

PLAIN 

Sec. 801. Definitions. 

Sec. 802. Leasing program for land within the Coastal Plain. 

Sec. 803. Lease sales. 

Sec. 804. Grant of leases by the Secretary. 

Sec. 805. Lease terms and conditions. 

Sec. 806. Coastal Plain environmental protection. 

Sec. 807. Expedited judicial review. 

Sec. 808. Rights-of-way and easements across Coastal Plain. 

Sec. 809. Conveyance. 

Sec. 810. Local government impact aid and community service assistance. 

Sec. 811. Prohibition on exports. 

Sec. 812. Allocation of revenues. 

1 TITLE I—SAVING AMERICAN 

2 ENERGY 

3 Subtitle A—Plug in Hybrid 

4 Technology 

5 SEC. 101. ADVANCED BATTERIES FOR ELECTRIC DRIVE VE6 HICLES. 

7 (a) DEFINITIONS.—In this section: 


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1 (1) ADVANCED BATTERY.—The term ‘‘advanced 

2 battery’’ means an electrical storage device that is 

3 suitable for a vehicle application. 

4 (2) ENGINEERING INTEGRATION COSTS.—The 

5 term ‘‘engineering integration costs’’ includes the 

6 cost of engineering tasks relating to— 

7 (A) the incorporation of qualifying compo8 nents into the design of an advanced battery; 

9 and 

10 (B) the design of tooling and equipment 

11 and the development of manufacturing proc12 esses and material for suppliers of production 

13 facilities that produce qualifying components or 

14 advanced batteries. 

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

16 the Secretary of Energy. 

17 (b) ADVANCED BATTERY RESEARCH AND DEVELOP18 MENT.— 

19 (1) IN GENERAL.—The Secretary shall— 

20 (A) expand and accelerate research and de21 velopment efforts for advanced batteries; and 

22 (B) emphasize lower cost means of pro23 ducing abuse-tolerant advanced batteries with 

24 the appropriate balance of power and energy ca25 pacity to meet market requirements. 


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1 (2) AUTHORIZATION OF APPROPRIATIONS.— 

2 There is authorized to be appropriated to carry out 

3 this subsection $100,000,000 for each of fiscal years 

4 2010 through 2014. 

5 (c) DIRECT LOAN PROGRAM.— 

6 (1) IN GENERAL.—Subject to the availability of 

7 appropriated funds, not later than 1 year after the 

8 date of enactment of this Act, the Secretary shall 

9 carry out a program to provide a total of not more 

10 than $250,000,000 in loans to eligible individuals 

11 and entities for not more than 30 percent of the 

12 costs of 1 or more of— 

13 (A) reequipping a manufacturing facility in 

14 the United States to produce advanced bat15 teries; 

16 (B) expanding a manufacturing facility in 

17 the United States to produce advanced bat18 teries; or 

19 (C) establishing a manufacturing facility in 

20 the United States to produce advanced bat21 teries. 

22 (2) ELIGIBILITY.— 

23 (A) IN GENERAL.—To be eligible to obtain 

24 a loan under this subsection, an individual or 

25 entity shall— 


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1 (i) be financially viable without the re2 ceipt of additional Federal funding associ3 ated with a proposed project under this 

4 subsection; 

5 (ii) provide sufficient information to 

6 the Secretary for the Secretary to ensure 

7 that the qualified investment is expended 

8 efficiently and effectively; and 

9 (iii) meet such other criteria as may 

10 be established and published by the Sec11 retary. 

12 (B) CONSIDERATION.—In selecting eligible 

13 individuals or entities for loans under this sub14 section, the Secretary may consider whether the 

15 proposed project of an eligible individual or en16 tity under this subsection would— 

17 (i) reduce manufacturing time; 

18 (ii) reduce manufacturing energy in19 tensity; 

20 (iii) reduce negative environmental 

21 impacts or byproducts; or 

22 (iv) increase spent battery or compo23 nent recycling. 

24 (3) RATES, TERMS, AND REPAYMENT OF

25 LOANS.—A loan provided under this subsection— 


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1 (A) shall have an interest rate that, as of 

2 the date on which the loan is made, is equal to 

3 the cost of funds to the Department of the 

4 Treasury for obligations of comparable matu5 rity; 

6 (B) shall have a term that is equal to the 

7 lesser of— 

8 (i) the projected life, in years, of the 

9 eligible project to be carried out using 

10 funds from the loan, as determined by the 

11 Secretary; or 

12 (ii) 25 years; and 

13 (C) may be subject to a deferral in repay14 ment for not more than 5 years after the date 

15 on which the eligible project carried out using 

16 funds from the loan first begins operations, as 

17 determined by the Secretary. 

18 (4) PERIOD OF AVAILABILITY.—A loan under 

19 this subsection shall be available for— 

20 (A) facilities and equipment placed in serv21 ice before December 30, 2020; and 

22 (B) engineering integration costs incurred 

23 during the period beginning on the date of en24 actment of this Act and ending on December 

25 30, 2020. 


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1 (5) FEES.—The cost of administering a loan 

2 made under this subsection shall not exceed 

3 $100,000. 

4 (6) AUTHORIZATION OF APPROPRIATIONS.— 

5 There are authorized to be appropriated such sums 

6 as are necessary to carry out this subsection for 

7 each of fiscal years 2009 through 2013. 

8 (d) SENSE OF THE SENATE ON PURCHASE OF PLUG9 IN ELECTRIC DRIVE VEHICLES.—It is the sense of the 

10 Senate that, to the maximum extent practicable, the Fed11 eral Government should implement policies to increase the 

12 purchase of plug-in electric drive vehicles by the Federal 

13 Government. 

14 Subtitle B—Promoting Energy 

15 Efficiency 

16 SEC. 111. EXPANDING INFORMATION ON ENERGY SAVINGS 

17 TECHNIQUES. 

18 Not later than 1 year after the date of enactment 

19 of this Act, the Secretary of Energy shall submit to Con20 gress a report that contains recommendations on— 

21 (1) educational outreach opportunities that can 

22 be implemented by Federal agencies to increase the 

23 knowledge of the people of the United States of en24 ergy saving techniques that can be used in daily life; 

25 and 


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1 (2) actions that can be taken by Congress to in2 crease the knowledge of the people of the United 

3 States of energy saving techniques that can be used 

4 in daily life. 

5 TITLE II—INCREASING 

6 AMERICAN ENERGY SUPPLY 

7 Subtitle A—Outer Continental 

8 Shelf 

9 SEC. 201. PUBLICATION OF PROJECTED STATE LINES ON 

10 OUTER CONTINENTAL SHELF. 

11 Section 4(a)(2)(A) of the Outer Continental Shelf 

12 Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended— 

13 (1) by designating the first, second, and third 

14 sentences as clause (i), (iii), and (iv), respectively; 

15 (2) in clause (i) (as so designated), by inserting 

16 before the period at the end the following: ‘‘not later 

17 than 90 days after the date of enactment of the 

18 Eight Steps for Energy Security Act of 2008’’; and 

19 (3) by inserting after clause (i) (as so des20 ignated) the following: 

21 ‘‘(i)(I) The projected lines shall also 

22 be used for the purpose of preleasing and 

23 leasing activities conducted in new pro24 ducing areas under section 32. 


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1 ‘‘(II) This clause shall not affect any 

2 property right or title to Federal sub3 merged land on the outer Continental 

4 Shelf. 

5 ‘‘(III) In carrying out this clause, the 

6 President shall consider the offshore ad7 ministrative boundaries beyond State sub8 merged lands for planning, coordination, 

9 and administrative purposes of the Depart10 ment of the Interior, but may establish dif11 ferent boundaries.’’. 

12 SEC. 202. PRODUCTION OF OIL AND NATURAL GAS IN NEW 

13 PRODUCING AREAS. 

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

15 1331 et seq.) is amended by adding at the end the fol16 lowing: 

17 ‘‘SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW 

18 PRODUCING AREAS. 

19 ‘‘(a) DEFINITIONS.—In this section: 

20 ‘‘(1) COASTAL POLITICAL SUBDIVISION.—The 

21 term ‘coastal political subdivision’ means a political 

22 subdivision of a new producing State any part of 

23 which political subdivision is— 

24 ‘‘(A) within the coastal zone (as defined in 

25 section 304 of the Coastal Zone Management 


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1 Act of 1972 (16 U.S.C. 1453)) of the new pro2 ducing State as of the date of enactment of this 

3 section; and 

4 ‘‘(B) not more than 200 nautical miles 

5 from the geographic center of any leased tract. 

6 ‘‘(2) MORATORIUM AREA.— 

7 ‘‘(A) IN GENERAL.—The term ‘moratorium 

8 area’ means an area covered by sections 104 

9 through 105 of the Department of the Interior, 

10 Environment, and Related Agencies Appropria11 tions Act, 2008 (Public Law 110–161; 121 

12 Stat. 2118) (as in effect on the day before the 

13 date of enactment of this section). 

14 ‘‘(B) EXCLUSION.—The term ‘moratorium 

15 area’ does not include an area located in the 

16 Gulf of Mexico. 

17 ‘‘(3) NEW PRODUCING AREA.—The term ‘new 

18 producing area’ means any moratorium area within 

19 the offshore administrative boundaries beyond the 

20 submerged land of a State that is located greater 

21 than 50 miles from the coastline of the State. 

22 ‘‘(4) NEW PRODUCING STATE.—The term ‘new 

23 producing State’ means a State that has, within the 

24 offshore administrative boundaries beyond the sub25 merged land of the State, a new producing area 


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1 available for oil and gas leasing under subsection 

2 (b). 

3 ‘‘(5) OFFSHORE ADMINISTRATIVE BOUND4 ARIES.—The term ‘offshore administrative bound5 aries’ means the administrative boundaries estab6 lished by the Secretary beyond State submerged land 

7 for planning, coordination, and administrative pur8 poses of the Department of the Interior and pub9 lished in the Federal Register on January 3, 2006 

10 (71 Fed. Reg. 127). 

11 ‘‘(6) QUALIFIED OUTER CONTINENTAL SHELF

12 REVENUES.— 

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

14 outer Continental Shelf revenues’ means all 

15 rentals, royalties, bonus bids, and other sums 

16 due and payable to the United States from 

17 leases entered into on or after the date of en18 actment of this section for new producing areas. 

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

20 outer Continental Shelf revenues’ does not in21 clude— 

22 ‘‘(i) revenues from a bond or other 

23 surety forfeited for obligations other than 

24 the collection of royalties; 

25 ‘‘(ii) revenues from civil penalties; 


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1 ‘‘(iii) royalties taken by the Secretary 

2 in-kind and not sold; 

3 ‘‘(iv) revenues generated from leases 

4 subject to section 8(g); or 

5 ‘‘(v) any revenues considered qualified 

6 outer Continental Shelf revenues under 

7 section 102 of the Gulf of Mexico Energy 

8 Security Act of 2006 (43 U.S.C. 1331 

9 note; Public Law 109–432). 

10 ‘‘(b) PETITION FOR LEASING NEW PRODUCING

11 AREAS.— 

12 ‘‘(1) IN GENERAL.—Beginning on the date on 

13 which the President delineates projected State lines 

14 under section 4(a)(2)(A)(ii), the Governor of a 

15 State, with the concurrence of the legislature of the 

16 State, with a new producing area within the offshore 

17 administrative boundaries beyond the submerged 

18 land of the State may submit to the Secretary a pe19 tition requesting that the Secretary make the new 

20 producing area available for oil and gas leasing. 

21 ‘‘(2) ACTION BY SECRETARY.—Notwithstanding 

22 section 18, as soon as practicable after receipt of a 

23 petition under paragraph (1), the Secretary shall ap24 prove the petition if the Secretary determines that 

25 leasing the new producing area would not create an 


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1 unreasonable risk of harm to the marine, human, or 

2 coastal environment. 

3 ‘‘(c) DISPOSITION OF QUALIFIED OUTER CONTI4 NENTAL SHELF REVENUES FROM NEW PRODUCING

5 AREAS.— 

6 ‘‘(1) IN GENERAL.—Notwithstanding section 9 

7 and subject to the other provisions of this sub8 section, for each applicable fiscal year, the Secretary 

9 of the Treasury shall deposit— 

10 ‘‘(A) 50 percent of qualified outer Conti11 nental Shelf revenues in the general fund of the 

12 Treasury; and 

13 ‘‘(B) 50 percent of qualified outer Conti14 nental Shelf revenues in a special account in 

15 the Treasury from which the Secretary shall 

16 disburse— 

17 ‘‘(i) 75 percent to new producing 

18 States in accordance with paragraph (2); 

19 and 

20 ‘‘(ii) 25 percent to provide financial 

21 assistance to States in accordance with 

22 section 6 of the Land and Water Conserva23 tion Fund Act of 1965 (16 U.S.C. 460l–8), 

24 which shall be considered income to the 

25 Land and Water Conservation Fund for 


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1 purposes of section 2 of that Act (16 

2 U.S.C. 460l–5). 

3 ‘‘(2) ALLOCATION TO NEW PRODUCING STATES

4 AND COASTAL POLITICAL SUBDIVISIONS.— 

5 ‘‘(A) ALLOCATION TO NEW PRODUCING

6 STATES.—Effective for fiscal year 2008 and 

7 each fiscal year thereafter, the amount made 

8 available under paragraph (1)(B)(i) shall be al9 located to each new producing State in amounts 

10 (based on a formula established by the Sec11 retary by regulation) proportional to the 

12 amount of qualified outer Continental Shelf rev13 enues generated in the new producing area off14 shore each State. 

15 ‘‘(B) PAYMENTS TO COASTAL POLITICAL

16 SUBDIVISIONS.— 

17 ‘‘(i) IN GENERAL.—The Secretary 

18 shall pay 20 percent of the allocable share 

19 of each new producing State, as deter20 mined under subparagraph (A), to the 

21 coastal political subdivisions of the new 

22 producing State. 

23 ‘‘(ii) ALLOCATION.—The amount paid 

24 by the Secretary to coastal political sub25 divisions shall be allocated to each coastal 


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1 political subdivision in accordance with the 

2 regulations promulgated under subpara3 graph (A). 

4 ‘‘(3) MINIMUM ALLOCATION.—The amount allo5 cated to a new producing State for each fiscal year 

6 under paragraph (2) shall be at least 5 percent of 

7 the amounts available for the fiscal year under para8 graph (1)(B)(i). 

9 ‘‘(4) TIMING.—The amounts required to be de10 posited under subparagraph (B) of paragraph (1) 

11 for the applicable fiscal year shall be made available 

12 in accordance with that subparagraph during the fis13 cal year immediately following the applicable fiscal 

14 year. 

15 ‘‘(5) AUTHORIZED USES.— 

16 ‘‘(A) IN GENERAL.—Subject to subpara17 graph (B), each new producing State and coast18 al political subdivision shall use all amounts re19 ceived under paragraph (2) in accordance with 

20 all applicable Federal and State laws, only for 

21 1 or more of the following purposes: 

22 ‘‘(i) Projects and activities for the 

23 purposes of coastal protection, including 

24 conservation, coastal restoration, hurricane 


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1 protection, and infrastructure directly af2 fected by coastal wetland losses. 

3 ‘‘(ii) Mitigation of damage to fish, 

4 wildlife, or natural resources. 

5 ‘‘(iii) Implementation of a federally 

6 approved marine, coastal, or comprehensive 

7 conservation management plan. 

8 ‘‘(iv) Funding of onshore infrastruc9 ture projects. 

10 ‘‘(v) Planning assistance and the ad11 ministrative costs of complying with this 

12 section. 

13 ‘‘(B) LIMITATION.—Not more than 3 per14 cent of amounts received by a new producing 

15 State or coastal political subdivision under 

16 paragraph (2) may be used for the purposes de17 scribed in subparagraph (A)(v). 

18 ‘‘(6) ADMINISTRATION.—Amounts made avail19 able under paragraph (1)(B) shall— 

20 ‘‘(A) be made available, without further 

21 appropriation, in accordance with this sub22 section; 

23 ‘‘(B) remain available until expended; and 

24 ‘‘(C) be in addition to any amounts appro25 priated under— 


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1 ‘‘(i) other provisions of this Act; 

2 ‘‘(ii) the Land and Water Conserva3 tion Fund Act of 1965 (16 U.S.C. 460l–4 

4 et seq.); or 

5 ‘‘(iii) any other provision of law. 

6 ‘‘(d) DISPOSITION OF QUALIFIED OUTER CONTI7 NENTAL SHELF REVENUES FROM OTHER AREAS.—Not8 withstanding section 9, for each applicable fiscal year, the 

9 terms and conditions of subsection (c) shall apply to the 

10 disposition of qualified outer Continental Shelf revenues 

11 that— 

12 ‘‘(1) are derived from oil or gas leasing in an 

13 area that is not included in the current 5-year plan 

14 of the Secretary for oil or gas leasing; and 

15 ‘‘(2) are not assumed in the budget of the 

16 United States Government submitted by the Presi17 dent under section 1105 of title 31, United States 

18 Code.’’. 

19 SEC. 203. CONFORMING AMENDMENTS. 

20 Sections 104 and 105 of the Department of the Inte21 rior, Environment, and Related Agencies Appropriations 

22 Act, 2008 (Public Law 110–161; 121 Stat. 2118) are 

23 amended by striking ‘‘No funds’’ each place it appears and 

24 inserting ‘‘Except as provided in section 32 of the Outer 

25 Continental Shelf Lands Act, no funds’’. 


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1 Subtitle B—Oil Shale Development 

2 SEC. 211. REMOVAL OF PROHIBITION ON FINAL REGULA3 TIONS FOR COMMERCIAL LEASING PROGRAM 

4 FOR OIL SHALE RESOURCES ON PUBLIC 

5 LAND. 

6 Section 433 of the Department of the Interior, Envi7 ronment, and Related Agencies Appropriations Act, 2008 

8 (Public Law 110–161; 121 Stat. 2152) is repealed. 

9 TITLE III—STREAMLINE 

10 PERMITTING 

11 Subtitle A—Streamline Refinery 

12 Permitting Process 

13 SEC. 301. REFINERY PERMITTING PROCESS. 

14 (a) DEFINITIONS.—In this section: 

15 (1) ADMINISTRATOR.—The term ‘‘Adminis16 trator’’ means the Administrator of the Environ17 mental Protection Agency. 

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

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

20 Indian Self-Determination and Education Assistance 

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

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

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

24 authorization that a refiner is required to obtain— 

25 (A) under any Federal law; or 


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1 (B) from a State or Indian tribal govern2 ment agency delegated authority by the Federal 

3 Government, or authorized under Federal law, 

4 to issue permits. 

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

6 person that— 

7 (A) owns or operates a refinery; or 

8 (B) seeks to become an owner or operator 

9 of a refinery. 

10 (5) REFINERY.— 

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

12 means— 

13 (i) a facility at which crude oil is re14 fined into transportation fuel or other pe15 troleum products; and 

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

17 facility at which coal is processed into syn18 thetic crude oil or any other fuel. 

19 (B) INCLUSIONS.—The term ‘‘refinery’’ in20 cludes an expansion of a refinery. 

21 (6) REFINERY EXPANSION.—The term ‘‘refin22 ery expansion’’ means a physical change in a refin23 ery that results in an increase in the capacity of the 

24 refinery. 


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1 (7) REFINERY PERMITTING AGREEMENT.—The 

2 term ‘‘refinery permitting agreement’’ means an 

3 agreement entered into between the Administrator 

4 and a State or Indian tribe under subsection (b). 

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

6 the Secretary of Commerce. 

7 (9) STATE.—The term ‘‘State’’ means— 

8 (A) a State; 

9 (B) the District of Columbia; 

10 (C) the Commonwealth of Puerto Rico; 

11 and 

12 (D) any other territory or possession of the 

13 United States. 

14 (b) STREAMLINING OF REFINERY PERMITTING

15 PROCESS.— 

16 (1) IN GENERAL.—At the request of the Gov17 ernor of a State or the governing body of an Indian 

18 tribe, the Administrator shall enter into a refinery 

19 permitting agreement with the State or Indian tribe 

20 under which the process for obtaining all permits 

21 necessary for the construction and operation of a re22 finery shall be streamlined using a systematic inter23 disciplinary multimedia approach as provided in this 

24 section. 


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1 (2) AUTHORITY OF ADMINISTRATOR.—Under a 

2 refinery permitting agreement— 

3 (A) the Administrator shall have authority, 

4 as applicable and necessary, to— 

5 (i) accept from a refiner a consoli6 dated application for all permits that the 

7 refiner is required to obtain to construct 

8 and operate a refinery; 

9 (ii) in consultation and cooperation 

10 with each Federal, State, or Indian tribal 

11 government agency that is required to 

12 make any determination to authorize the 

13 issuance of a permit, establish a schedule 

14 under which each agency shall— 

15 (I) concurrently consider, to the 

16 maximum extent practicable, each de17 termination to be made; and 

18 (II) complete each step in the 

19 permitting process; and 

20 (iii) issue a consolidated permit that 

21 combines all permits issued under the 

22 schedule established under clause (ii); and 

23 (B) the Administrator shall provide to 

24 State and Indian tribal government agencies— 


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1 (i) financial assistance in such 

2 amounts as the agencies reasonably require 

3 to hire such additional personnel as are 

4 necessary to enable the government agen5 cies to comply with the applicable schedule 

6 established under subparagraph (A)(ii); 

7 and 

8 (ii) technical, legal, and other assist9 ance in complying with the refinery permit10 ting agreement. 

11 (3) AGREEMENT BY THE STATE.—Under a re12 finery permitting agreement, a State or governing 

13 body of an Indian tribe shall agree that— 

14 (A) the Administrator shall have each of 

15 the authorities described in paragraph (2); and 

16 (B) each State or Indian tribal government 

17 agency shall— 

18 (i) in accordance with State law, make 

19 such structural and operational changes in 

20 the agencies as are necessary to enable the 

21 agencies to carry out consolidated project22 wide permit reviews concurrently and in 

23 coordination with the Environmental Pro24 tection Agency and other Federal agencies; 

25 and 


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1 (ii) comply, to the maximum extent 

2 practicable, with the applicable schedule 

3 established under paragraph (2)(A)(ii). 

4 (4) DEADLINES.— 

5 (A) NEW REFINERIES.—In the case of a 

6 consolidated permit for the construction of a 

7 new refinery, the Administrator and the State 

8 or governing body of an Indian tribe shall ap9 prove or disapprove the consolidated permit not 

10 later than— 

11 (i) 360 days after the date of the re12 ceipt of the administratively complete ap13 plication for the consolidated permit; or 

14 (ii) on agreement of the applicant, the 

15 Administrator, and the State or governing 

16 body of the Indian tribe, 90 days after the 

17 expiration of the deadline established 

18 under clause (i). 

19 (B) EXPANSION OF EXISTING REFIN20 ERIES.—In the case of a consolidated permit 

21 for the expansion of an existing refinery, the 

22 Administrator and the State or governing body 

23 of an Indian tribe shall approve or disapprove 

24 the consolidated permit not later than— 


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1 (i) 120 days after the date of the re2 ceipt of the administratively complete ap3 plication for the consolidated permit; or 

4 (ii) on agreement of the applicant, the 

5 Administrator, and the State or governing 

6 body of the Indian tribe, 30 days after the 

7 expiration of the deadline established 

8 under clause (i). 

9 (5) FEDERAL AGENCIES.—Each Federal agency 

10 that is required to make any determination to au11 thorize the issuance of a permit shall comply with 

12 the applicable schedule established under paragraph 

13 (2)(A)(ii). 

14 (6) JUDICIAL REVIEW.—Any civil action for re15 view of any permit determination under a refinery 

16 permitting agreement shall be brought exclusively in 

17 the United States district court for the district in 

18 which the refinery is located or proposed to be lo19 cated. 

20 (7) EFFICIENT PERMIT REVIEW.—In order to 

21 reduce the duplication of procedures, the Adminis22 trator shall use State permitting and monitoring 

23 procedures to satisfy substantially equivalent Fed24 eral requirements under this title. 


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1 (8) SEVERABILITY.—If 1 or more permits that 

2 are required for the construction or operation of a 

3 refinery are not approved on or before any deadline 

4 established under paragraph (4), the Administrator 

5 may issue a consolidated permit that combines all 

6 other permits that the refiner is required to obtain 

7 other than any permits that are not approved. 

8 (9) SAVINGS.—Nothing in this subsection af9 fects the operation or implementation of otherwise 

10 applicable law regarding permits necessary for the 

11 construction and operation of a refinery. 

12 (10) CONSULTATION WITH LOCAL GOVERN13 MENTS.—Congress encourages the Administrator, 

14 States, and tribal governments to consult, to the 

15 maximum extent practicable, with local governments 

16 in carrying out this subsection. 

17 (11) AUTHORIZATION OF APPROPRIATIONS.— 

18 There are authorized to be appropriated such sums 

19 as are necessary to carry out this subsection. 

20 (12) EFFECT ON LOCAL AUTHORITY.—Nothing 

21 in this subsection affects— 

22 (A) the authority of a local government 

23 with respect to the issuance of permits; or 

24 (B) any requirement or ordinance of a 

25 local government (such as a zoning regulation). 


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1 (c) FISCHER-TROPSCH FUELS.— 

2 (1) IN GENERAL.—In cooperation with the Sec3 retary of Energy, the Secretary of Defense, the Ad4 ministrator of the Federal Aviation Administration, 

5 Secretary of Health and Human Services, and 

6 Fischer-Tropsch industry representatives, the Ad7 ministrator shall— 

8 (A) conduct a research and demonstration 

9 program to evaluate the air quality benefits of 

10 ultra-clean Fischer-Tropsch transportation fuel, 

11 including diesel and jet fuel; 

12 (B) evaluate the use of ultra-clean Fischer13 Tropsch transportation fuel as a mechanism for 

14 reducing engine exhaust emissions; and 

15 (C) submit recommendations to Congress 

16 on the most effective use and associated bene17 fits of these ultra-clean fuel for reducing public 

18 exposure to exhaust emissions. 

19 (2) GUIDANCE AND TECHNICAL SUPPORT.—The 

20 Administrator shall, to the extent necessary, issue 

21 any guidance or technical support documents that 

22 would facilitate the effective use and associated ben23 efit of Fischer-Tropsch fuel and blends. 

24 (3) REQUIREMENTS.—The program described 

25 in paragraph (1) shall consider— 


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1 (A) the use of neat (100 percent) Fischer2 Tropsch fuel and blends with conventional 

3 crude oil-derived fuel for heavy-duty and light4 duty diesel engines and the aviation sector; and 

5 (B) the production costs associated with 

6 domestic production of those ultra clean fuel 

7 and prices for consumers. 

8 (4) REPORTS.—The Administrator shall submit 

9 to the Committee on Environment and Public Works 

10 and the Committee on Energy and Natural Re11 sources of the Senate and the Committee on Energy 

12 and Commerce of the House of Representatives— 

13 (A) not later than 1 year, an interim re14 port on actions taken to carry out this sub15 section; and 

16 (B) not later than 2 years, a final report 

17 on actions taken to carry out this subsection. 

18 Subtitle B—Application for Permit 

19 to Drill Fee Removal 

20 SEC. 311. REMOVAL OF ADDITIONAL FEE FOR NEW APPLI21 CATIONS FOR PERMITS TO DRILL. 

22 The second undesignated paragraph of the matter 

23 under the heading ‘‘MANAGEMENT OF LANDS AND RE24 SOURCES’’ under the heading ‘‘BUREAU OF LAND MAN25 AGEMENT’’ of title I of the Department of the Interior, 


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1 Environment, and Related Agencies Appropriations Act, 

2 2008 (Public Law 110–161; 121 Stat. 2098) is amended 

3 by striking ‘‘to be reduced’’ and all that follows through 

4 ‘‘each new application,’’. 

5 Subtitle C—Report on National 

6 Environmental Policy Act of 1969 

7 SEC. 321. REPORT ON NATIONAL ENVIRONMENTAL POLICY 

8 ACT OF 1969. 

9 Not later than 180 days after the date of enactment 

10 of this Act, the Secretary of the Interior, in consultation 

11 with the Secretary of Energy and the Administrator of 

12 the Environmental Protection Agency, shall submit to 

13 Congress a report on actions that can be taken to stream14 line the National Environmental Policy Act of 1969 (42 

15 U.S.C. 4321 et seq.) to limit litigation under that Act and 

16 increase energy production. 

17 TITLE IV—INNOVATION 

18 SEC. 401. HYDROGEN INSTALLATION, INFRASTRUCTURE, 

19 AND FUEL COSTS. 

20 (a) IN GENERAL.—Subpart B of part IV of sub21 chapter A of chapter 1 of the Internal Revenue Code of 

22 1986 (relating to foreign tax credit, etc.) is amended by 

23 adding at the end the following new section: 


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1 ‘‘SEC. 30D. HYDROGEN INSTALLATION, INFRASTRUCTURE, 

2 AND FUEL COSTS. 

3 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al4 lowed as a credit against the tax imposed by this chapter 

5 for the taxable year an amount equal to the sum of— 

6 ‘‘(1) the hydrogen installation and infrastruc7 ture costs credit determined under subsection (b), 

8 and 

9 ‘‘(2) the hydrogen fuel costs credit determined 

10 under subsection (c). 

11 ‘‘(b) HYDROGEN INSTALLATION AND INFRASTRUC12 TURE COSTS CREDIT.— 

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

14 (a), the hydrogen installation and infrastructure 

15 costs credit determined under this subsection with 

16 respect to each eligible hydrogen production and dis17 tribution facility of the taxpayer is an amount equal 

18 to— 

19 ‘‘(A) 30 percent of so much of the installa20 tion costs which when added to such costs 

21 taken into account with respect to such facility 

22 for all preceding taxable years under this sub23 paragraph does not exceed $200,000, plus 

24 ‘‘(B) 30 percent of so much of the infra25 structure costs for the taxable year as does not 

26 exceed $200,000 with respect to such facility, 


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1 and which when added to such costs taken into 

2 account with respect to such facility for all pre3 ceding taxable years under this subparagraph 

4 does not exceed $600,000. 

5 Nothing in this section shall permit the same cost to 

6 be taken into account more than once. 

7 ‘‘(2) ELIGIBLE HYDROGEN PRODUCTION AND

8 DISTRIBUTION FACILITY.—For purposes of this sub9 section, the term ‘eligible hydrogen production and 

10 distribution facility’ means a hydrogen production 

11 and distribution facility which is placed in service 

12 after December 31, 2008. 

13 ‘‘(c) HYDROGEN FUEL COSTS CREDIT.— 

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

15 (a), the hydrogen fuel costs credit determined under 

16 this subsection with respect to each eligible hydrogen 

17 device of the taxpayer is an amount equal to the 

18 qualified hydrogen expenditure amounts with respect 

19 to such device. 

20 ‘‘(2) QUALIFIED HYDROGEN EXPENDITURE

21 AMOUNT.—For purposes of this subsection— 

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

23 hydrogen expenditure amount’ means, with re24 spect to each eligible hydrogen energy conver25 sion device of the taxpayer with a production 


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1 capacity of not more than 25 kilowatts of elec2 tricity per year, the lesser of— 

3 ‘‘(i) 30 percent of the amount paid or 

4 incurred by the taxpayer during the tax5 able year for hydrogen which is consumed 

6 by such device, and 

7 ‘‘(ii) $2,000. 

8 In the case of any device which is not owned by 

9 the taxpayer at all times during the taxable 

10 year, the $2,000 amount in subparagraph (B) 

11 shall be reduced by an amount which bears the 

12 same ratio to $2,000 as the portion of the year 

13 which such device is not owned by the taxpayer 

14 bears to the entire year. 

15 ‘‘(B) HIGHER LIMITATION FOR DEVICES

16 WITH MORE PRODUCTION CAPACITY.—In the 

17 case of any eligible hydrogen energy conversion 

18 device with a production capacity of— 

19 ‘‘(i) more than 25 but less than 100 

20 kilowatts of electricity per year, subpara21 graph (A) shall be applied by substituting 

22 ‘$4,000’ for ‘$2,000’ each place it appears, 

23 and 

24 ‘‘(ii) not less than 100 kilowatts of 

25 electricity per year, subparagraph (A) shall 


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1 be applied by substituting ‘$6,000’ for 

2 ‘$2,000’ each place it appears. 

3 ‘‘(3) ELIGIBLE HYDROGEN ENERGY CONVER4 SION DEVICES.—For purposes of this subsection— 

5 ‘‘(A) IN GENERAL.—The term ‘eligible hy6 drogen energy conversion device’ means, with 

7 respect to any taxpayer, any hydrogen energy 

8 conversion device which— 

9 ‘‘(i) is placed in service after Decem10 ber 31, 2004, and 

11 ‘‘(ii) is wholly owned by the taxpayer 

12 during the taxable year. 

13 If an owner of a device (determined without re14 gard to this subparagraph) provides to the pri15 mary user of such device a written statement 

16 that such user shall be treated as the owner of 

17 such device for purposes of this section, then 

18 such user (and not such owner) shall be so 

19 treated. 

20 ‘‘(B) HYDROGEN ENERGY CONVERSION

21 DEVICE.—The term ‘hydrogen energy conver22 sion device’ means— 

23 ‘‘(i) any electrochemical device which 

24 converts hydrogen into electricity, and 


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1 ‘‘(ii) any combustion engine which 

2 burns hydrogen as a fuel. 

3 ‘‘(d) REDUCTION IN BASIS.—For purposes of this 

4 subtitle, if a credit is allowed under this section for any 

5 expenditure with respect to any property, the increase in 

6 the basis of such property which would (but for this para7 graph) result from such expenditure shall be reduced by 

8 the amount of the credit so allowed. 

9 ‘‘(e) APPLICATION WITH OTHER CREDITS.— 

10 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

11 GENERAL BUSINESS CREDIT.—So much of the credit 

12 which would be allowed under subsection (a) for any 

13 taxable year (determined without regard to this sub14 section) that is attributable to amounts which (but 

15 for subsection (g) would be allowed as a deduction 

16 under section 162 shall be treated as a credit listed 

17 in section 38(b) for such taxable year (and not al18 lowed under subsection (a)). 

19 ‘‘(2) PERSONAL CREDIT.—The credit allowed 

20 under subsection (a) (after the application of para21 graph (1)) for any taxable year shall not exceed the 

22 excess (if any) of— 

23 ‘‘(A) the regular tax liability (as defined in 

24 section 26(b)) reduced by the sum of the credits 


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1 allowable under subpart A and sections 27, 30, 

2 30B, and 30C, over 

3 ‘‘(B) the tentative minimum tax for the 

4 taxable year. 

5 ‘‘(f) DENIAL OF DOUBLE BENEFIT.—The amount of 

6 any deduction or other credit allowable under this chapter 

7 for any cost taken into account in determining the amount 

8 of the credit under subsection (a) shall be reduced by the 

9 amount of such credit attributable to such cost. 

10 ‘‘(g) RECAPTURE.—The Secretary shall, by regula11 tions, provided for recapturing the benefit of any credit 

12 allowable under subsection (a) with respect to any prop13 erty which ceases to be property eligible for such credit. 

14 ‘‘(h) ELECTION NOT TO TAKE CREDIT.—No credit 

15 shall be allowed under subsection (a) for any property if 

16 the taxpayer elects not to have this section apply to such 

17 property. 

18 ‘‘(i) REGULATIONS.—The Secretary shall prescribe 

19 such regulations as necessary to carry out the provisions 

20 of this section. 

21 ‘‘(j) TERMINATION.—This section shall not apply to 

22 any costs after December 31, 2012.’’. 

23 (b) CONFORMING AMENDMENTS.— 

24 (1) Section 38(b) of the Internal Revenue Code 

25 of 1986 is amended by striking ‘‘plus’’ at the end of 


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1 paragraph (32), by striking the period at the end of 

2 paragraph (33) and inserting ‘‘plus’’, and by adding 

3 at the end the following new paragraph: 

4 ‘‘(34) the portion of the hydrogen installation, 

5 infrastructure, and fuel credit to which section 

6 30D(e)(1) applies.’’. 

7 (2) Section 55(c)(3) of such Code is amended 

8 by inserting ‘‘30F(e)(2),’’ after ‘‘30C(d)(2),’’. 

9 (3) Section 1016(a) of such Code is amended 

10 by striking ‘‘and’’ at the end of paragraph (35), by 

11 striking the period at the end of paragraph (36) and 

12 inserting ‘‘, and’’, and by adding at the end the fol13 lowing new paragraph: 

14 ‘‘(37) to the extent provided in section 

15 30D(d).’’. 

16 (4) Section 6501(m) of such Code is amended 

17 by inserting ‘‘30D(h),’’ after ‘‘30C(e)(5),’’. 

18 (5) The table of sections for subpart B of part 

19 IV of subchapter A of chapter 1 of such Code is 

20 amended by inserting after the item relating to sec21 tion 30C the following new item: 

‘‘Sec. 30D. Hydrogen installation, infrastructure, and fuel costs.’’. 

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

23 this section shall apply to amounts paid or incurred after 

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

25 ending after such date. 


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1 SEC. 402. REPORT ON CELLULOSIC ETHANOL. 

2 Not later than 180 days after the date of enactment 

3 of this Act, the Administrator of the Environmental Pro4 tection Agency, in consultation with the Secretary of En5 ergy and the Secretary of the Interior, shall provide to 

6 Congress a report that— 

7 (1) analyzes Federal incentives to increase the 

8 production of cellulosic ethanol; and 

9 (2) provides recommendations— 

10 (A) on the effectiveness of those incentives; 

11 and 

12 (B) for additional incentives to increase 

13 production of cellulosic ethanol. 

14 TITLE V—INCENTIVES FOR 

15 CLEAN ENERGY 

16 Subtitle A—Extension of Clean 

17 Energy Tax Credits 

18 SEC. 500. AMENDMENT OF 1986 CODE. 

19 Except as otherwise expressly provided, whenever in 

20 this subtitle an amendment or repeal is expressed in terms 

21 of an amendment to, or repeal of, a section or other provi22 sion, the reference shall be considered to be made to a 

23 section or other provision of the Internal Revenue Code 

24 of 1986. 


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1 PART I—EXTENSION OF CLEAN ENERGY 

2 PRODUCTION INCENTIVES 

3 SEC. 501. EXTENSION AND MODIFICATION OF RENEWABLE 

4 ENERGY PRODUCTION TAX CREDIT. 

5 (a) EXTENSION OF CREDIT.—Each of the following 

6 provisions of section 45(d) (relating to qualified facilities) 

7 is amended by striking ‘‘January 1, 2009’’ and inserting 

8 ‘‘January 1, 2014’’: 

9 (1) Paragraph (1). 

10 (2) Clauses (i) and (ii) of paragraph (2)(A). 

11 (3) Clauses (i)(I) and (ii) of paragraph (3)(A). 

12 (4) Paragraph (4). 

13 (5) Paragraph (5). 

14 (6) Paragraph (6). 

15 (7) Paragraph (7). 

16 (8) Paragraph (8). 

17 (9) Subparagraphs (A) and (B) of paragraph 

18 (9). 

19 (b) PRODUCTION CREDIT FOR ELECTRICITY PRO20 DUCED FROM MARINE RENEWABLES.— 

21 (1) IN GENERAL.—Paragraph (1) of section 

22 45(c) (relating to resources) is amended by striking 

23 ‘‘and’’ at the end of subparagraph (G), by striking 

24 the period at the end of subparagraph (H) and in25 serting ‘‘, and’’, and by adding at the end the fol26 lowing new subparagraph: 


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1 ‘‘(I) marine and hydrokinetic renewable en2 ergy.’’. 

3 (2) MARINE RENEWABLES.—Subsection (c) of 

4 section 45 is amended by adding at the end the fol5 lowing new paragraph: 

6 ‘‘(10) MARINE AND HYDROKINETIC RENEW7 ABLE ENERGY.— 

8 ‘‘(A) IN GENERAL.—The term ‘marine and 

9 hydrokinetic renewable energy’ means energy 

10 derived from— 

11 ‘‘(i) waves, tides, and currents in 

12 oceans, estuaries, and tidal areas, 

13 ‘‘(ii) free flowing water in rivers, 

14 lakes, and streams, 

15 ‘‘(iii) free flowing water in an irriga16 tion system, canal, or other man-made 

17 channel, including projects that utilize non18 mechanical structures to accelerate the 

19 flow of water for electric power production 

20 purposes, or 

21 ‘‘(iv) differentials in ocean tempera22 ture (ocean thermal energy conversion). 

23 ‘‘(B) EXCEPTIONS.—Such term shall not 

24 include any energy which is derived from any 

25 source which utilizes a dam, diversionary strucVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 ture (except as provided in subparagraph 

2 (A)(iii)), or impoundment for electric power 

3 production purposes.’’. 

4 (3) DEFINITION OF FACILITY.—Subsection (d) 

5 of section 45 is amended by adding at the end the 

6 following new paragraph: 

7 ‘‘(11) MARINE AND HYDROKINETIC RENEW8 ABLE ENERGY FACILITIES.—In the case of a facility 

9 producing electricity from marine and hydrokinetic 

10 renewable energy, the term ‘qualified facility’ means 

11 any facility owned by the taxpayer— 

12 ‘‘(A) which has a nameplate capacity rat13 ing of at least 150 kilowatts, and 

14 ‘‘(B) which is originally placed in service 

15 on or after the date of the enactment of this 

16 paragraph and before January 1, 2010.’’. 

17 (4) CREDIT RATE.—Subparagraph (A) of sec18 tion 45(b)(4) is amended by striking ‘‘or (9)’’ and 

19 inserting ‘‘(9), or (11)’’. 

20 (5) COORDINATION WITH SMALL IRRIGATION

21 POWER.—Paragraph (5) of section 45(d), as amend22 ed by subsection (a), is amended by striking ‘‘Janu23 ary 1, 2010’’ and inserting ‘‘the date of the enact24 ment of paragraph (11)’’. 


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1 (c) SALES OF ELECTRICITY TO REGULATED PUBLIC

2 UTILITIES TREATED AS SALES TO UNRELATED PER3 SONS.—Section 45(e)(4) (relating to related persons) is 

4 amended by adding at the end the following new sentence: 

5 ‘‘A taxpayer shall be treated as selling electricity to an 

6 unrelated person if such electricity is sold to a regulated 

7 public utility (as defined in section 7701(a)(33).’’. 

8 (d) TRASH FACILITY CLARIFICATION.—Paragraph 

9 (7) of section 45(d) is amended— 

10 (1) by striking ‘‘facility which burns’’ and in11 serting ‘‘facility (other than a facility described in 

12 paragraph (6)) which uses’’, and 

13 (2) by striking ‘‘COMBUSTION’’. 

14 (e) EFFECTIVE DATES.— 

15 (1) EXTENSION.—The amendments made by 

16 subsection (a) shall apply to property originally 

17 placed in service after December 31, 2008. 

18 (2) MODIFICATIONS.—The amendments made 

19 by subsections (b) and (c) shall apply to electricity 

20 produced and sold after the date of the enactment 

21 of this Act, in taxable years ending after such date. 

22 (3) TRASH FACILITY CLARIFICATION.—The 

23 amendments made by subsection (d) shall apply to 

24 electricity produced and sold before, on, or after De25 cember 31, 2007. 


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1 SEC. 502. EXTENSION AND MODIFICATION OF SOLAR EN2 ERGY AND FUEL CELL INVESTMENT TAX 

3 CREDIT. 

4 (a) EXTENSION OF CREDIT.— 

5 (1) SOLAR ENERGY PROPERTY.—Paragraphs 

6 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) (relating 

7 to energy credit) are each amended by striking 

8 ‘‘January 1, 2009’’ and inserting ‘‘January 1, 

9 2017’’. 

10 (2) FUEL CELL PROPERTY.—Subparagraph (E) 

11 of section 48(c)(1) (relating to qualified fuel cell 

12 property) is amended by striking ‘‘December 31, 

13 2008’’ and inserting ‘‘December 31, 2017’’. 

14 (3) QUALIFIED MICROTURBINE PROPERTY.— 

15 Subparagraph (E) of section 48(c)(2) (relating to 

16 qualified microturbine property) is amended by 

17 striking ‘‘December 31, 2008’’ and inserting ‘‘De18 cember 31, 2017’’. 

19 (b) ALLOWANCE OF ENERGY CREDIT AGAINST AL20 TERNATIVE MINIMUM TAX.—Subparagraph (B) of section 

21 38(c)(4) (relating to specified credits) is amended by strik22 ing ‘‘and’’ at the end of clause (iii), by striking the period 

23 at the end of clause (iv) and inserting ‘‘, and’’, and by 

24 adding at the end the following new clause: 

25 ‘‘(v) the credit determined under sec26 tion 46 to the extent that such credit is atVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 tributable to the energy credit determined 

2 under section 48.’’. 

3 (c) REPEAL OF DOLLAR PER KILOWATT LIMITATION

4 FOR FUEL CELL PROPERTY.— 

5 (1) IN GENERAL.—Section 48(c)(1) (relating to 

6 qualified fuel cell), as amended by subsection (a)(2), 

7 is amended by striking subparagraph (B) and by re8 designating subparagraphs (C), (D), and (E) as sub9 paragraphs (B), (C), and (D), respectively. 

10 (2) CONFORMING AMENDMENT.—Section 

11 48(a)(1) is amended by striking ‘‘paragraphs (1)(B) 

12 and (2)(B) of subsection (c)’’ and inserting ‘‘sub13 section (c)(2)(B)’’. 

14 (d) PUBLIC ELECTRIC UTILITY PROPERTY TAKEN

15 INTO ACCOUNT.— 

16 (1) IN GENERAL.—Paragraph (3) of section 

17 48(a) is amended by striking the second sentence 

18 thereof. 

19 (2) CONFORMING AMENDMENTS.— 

20 (A) Paragraph (1) of section 48(c), as 

21 amended by this section, is amended by striking 

22 subparagraph (C) and redesignating subpara23 graph (D) as subparagraph (C). 

24 (B) Paragraph (2) of section 48(c), as 

25 amended by subsection (a)(3), is amended by 


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•S 3523 IS

1 striking subparagraph (D) and redesignating 

2 subparagraph (E) as subparagraph (D). 

3 (e) EFFECTIVE DATES.— 

4 (1) EXTENSION.—The amendments made by 

5 subsection (a) shall take effect on the date of the en6 actment of this Act. 

7 (2) ALLOWANCE AGAINST ALTERNATIVE MIN8 IMUM TAX.—The amendments made by subsection 

9 (b) shall apply to credits determined under section 

10 46 of the Internal Revenue Code of 1986 in taxable 

11 years beginning after the date of the enactment of 

12 this Act and to carrybacks of such credits. 

13 (3) FUEL CELL PROPERTY AND PUBLIC ELEC14 TRIC UTILITY PROPERTY.—The amendments made 

15 by subsections (c) and (d) shall apply to periods 

16 after the date of the enactment of this Act, in tax17 able years ending after such date, under rules simi18 lar to the rules of section 48(m) of the Internal Rev19 enue Code of 1986 (as in effect on the day before 

20 the date of the enactment of the Revenue Reconcili21 ation Act of 1990). 


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1 SEC. 503. EXTENSION AND MODIFICATION OF RESIDENTIAL 

2 ENERGY EFFICIENT PROPERTY CREDIT. 

3 (a) EXTENSION.—Section 25D(g) (relating to termi4 nation) is amended by striking ‘‘December 31, 2008’’ and 

5 inserting ‘‘December 31, 2009’’. 

6 (b) NO DOLLAR LIMITATION FOR CREDIT FOR

7 SOLAR ELECTRIC PROPERTY.— 

8 (1) IN GENERAL.—Section 25D(b)(1) (relating 

9 to maximum credit) is amended by striking subpara10 graph (A) and by redesignating subparagraphs (B) 

11 and (C) as subparagraphs (A) and (B), respectively. 

12 (2) CONFORMING AMENDMENTS.—Section 

13 25D(e)(4) is amended— 

14 (A) by striking clause (i) in subparagraph 

15 (A), 

16 (B) by redesignating clauses (ii) and (iii) 

17 in subparagraph (A) as clauses (i) and (ii), re18 spectively, and 

19 (C) by striking ‘‘, (2),’’ in subparagraph 

20 (C). 

21 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN22 IMUM TAX.— 

23 (1) IN GENERAL.—Subsection (c) of section 

24 25D is amended to read as follows: 

25 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX; 

26 CARRYFORWARD OF UNUSED CREDIT.— 


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1 ‘‘(1) LIMITATION BASED ON AMOUNT OF

2 TAX.—In the case of a taxable year to which section 

3 26(a)(2) does not apply, the credit allowed under 

4 subsection (a) for the taxable year shall not exceed 

5 the excess of— 

6 ‘‘(A) the sum of the regular tax liability 

7 (as defined in section 26(b)) plus the tax im8 posed by section 55, over 

9 ‘‘(B) the sum of the credits allowable 

10 under this subpart (other than this section) and 

11 section 27 for the taxable year. 

12 ‘‘(2) CARRYFORWARD OF UNUSED CREDIT.— 

13 ‘‘(A) RULE FOR YEARS IN WHICH ALL

14 PERSONAL CREDITS ALLOWED AGAINST REG15 ULAR AND ALTERNATIVE MINIMUM TAX.—In 

16 the case of a taxable year to which section 

17 26(a)(2) applies, if the credit allowable under 

18 subsection (a) exceeds the limitation imposed by 

19 section 26(a)(2) for such taxable year reduced 

20 by the sum of the credits allowable under this 

21 subpart (other than this section), such excess 

22 shall be carried to the succeeding taxable year 

23 and added to the credit allowable under sub24 section (a) for such succeeding taxable year. 


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1 ‘‘(B) RULE FOR OTHER YEARS.—In the 

2 case of a taxable year to which section 26(a)(2) 

3 does not apply, if the credit allowable under 

4 subsection (a) exceeds the limitation imposed by 

5 paragraph (1) for such taxable year, such ex6 cess shall be carried to the succeeding taxable 

7 year and added to the credit allowable under 

8 subsection (a) for such succeeding taxable 

9 year.’’. 

10 (2) CONFORMING AMENDMENTS.— 

11 (A) Section 23(b)(4)(B) is amended by in12 serting ‘‘and section 25D’’ after ‘‘this section’’. 

13 (B) Section 24(b)(3)(B) is amended by 

14 striking ‘‘and 25B’’ and inserting ‘‘, 25B, and 

15 25D’’. 

16 (C) Section 25B(g)(2) is amended by strik17 ing ‘‘section 23’’ and inserting ‘‘sections 23 and 

18 25D’’. 

19 (D) Section 26(a)(1) is amended by strik20 ing ‘‘and 25B’’ and inserting ‘‘25B, and 25D’’. 

21 (d) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—The amendments made by 

23 this section shall apply to taxable years beginning 

24 after December 31, 2007. 


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1 (2) APPLICATION OF EGTRRA SUNSET.—The 

2 amendments made by subparagraphs (A) and (B) of 

3 subsection (c)(2) shall be subject to title IX of the 

4 Economic Growth and Tax Relief Reconciliation Act 

5 of 2001 in the same manner as the provisions of 

6 such Act to which such amendments relate. 

7 SEC. 504. EXTENSION AND MODIFICATION OF CREDIT FOR 

8 CLEAN RENEWABLE ENERGY BONDS. 

9 (a) EXTENSION.—Section 54(m) (relating to termi10 nation) is amended by striking ‘‘December 31, 2008’’ and 

11 inserting ‘‘December 31, 2009’’. 

12 (b) INCREASE IN NATIONAL LIMITATION.—Section 

13 54(f) (relating to limitation on amount of bonds des14 ignated) is amended— 

15 (1) by inserting ‘‘, and for the period beginning 

16 after the date of the enactment of the Clean Energy 

17 Tax Stimulus Act of 2008 and ending before Janu18 ary 1, 2010, $400,000,000’’ after ‘‘$1,200,000,000’’ 

19 in paragraph (1), 

20 (2) by striking ‘‘$750,000,000 of the’’ in para21 graph (2) and inserting ‘‘$750,000,000 of the 

22 $1,200,000,000’’, and 

23 (3) by striking ‘‘bodies’’ in paragraph (2) and 

24 inserting ‘‘bodies, and except that the Secretary may 

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1 tional clean renewable energy bond limitation to fi2 nance qualified projects of qualified borrowers which 

are public power providers nor more than 1 3 ⁄3 of such 

4 limitation to finance qualified projects of qualified 

5 borrowers which are mutual or cooperative electric 

6 companies described in section 501(c)(12) or section 

7 1381(a)(2)(C)’’. 

8 (c) PUBLIC POWER PROVIDERS DEFINED.—Section 

9 54(j) is amended— 

10 (1) by adding at the end the following new 

11 paragraph: 

12 ‘‘(6) PUBLIC POWER PROVIDER.—The term 

13 ‘public power provider’ means a State utility with a 

14 service obligation, as such terms are defined in sec15 tion 217 of the Federal Power Act (as in effect on 

16 the date of the enactment of this paragraph).’’, and 

17 (2) by inserting ‘‘; PUBLIC POWER PROVIDER’’ 

18 before the period at the end of the heading. 

19 (d) TECHNICAL AMENDMENT.—The third sentence of 

20 section 54(e)(2) is amended by striking ‘‘subsection 

21 (l)(6)’’ and inserting ‘‘subsection (l)(5)’’. 

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

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

24 the enactment of this Act. 


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1 SEC. 505. EXTENSION OF SPECIAL RULE TO IMPLEMENT 

2 FERC RESTRUCTURING POLICY. 

3 (a) QUALIFYING ELECTRIC TRANSMISSION TRANS4 ACTION.— 

5 (1) IN GENERAL.—Section 451(i)(3) (defining 

6 qualifying electric transmission transaction) is 

7 amended by striking ‘‘January 1, 2008’’ and insert8 ing ‘‘January 1, 2010’’. 

9 (2) EFFECTIVE DATE.—The amendment made 

10 by this subsection shall apply to transactions after 

11 December 31, 2007. 

12 (b) INDEPENDENT TRANSMISSION COMPANY.— 

13 (1) IN GENERAL.—Section 451(i)(4)(B)(ii) (de14 fining independent transmission company) is amend15 ed by striking ‘‘December 31, 2007’’ and inserting 

16 ‘‘the date which is 2 years after the date of such 

17 transaction’’. 

18 (2) EFFECTIVE DATE.—The amendment made 

19 by this subsection shall take effect as if included in 

20 the amendments made by section 909 of the Amer21 ican Jobs Creation Act of 2004. 


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1 PART II—EXTENSION OF INCENTIVES TO 

2 IMPROVE ENERGY EFFICIENCY 

3 SEC. 511. EXTENSION AND MODIFICATION OF CREDIT FOR 

4 ENERGY EFFICIENCY IMPROVEMENTS TO EX5 ISTING HOMES. 

6 (a) EXTENSION OF CREDIT.—Section 25C(g) (relat7 ing to termination) is amended by striking ‘‘December 31, 

8 2007’’ and inserting ‘‘December 31, 2009’’. 

9 (b) QUALIFIED BIOMASS FUEL PROPERTY.— 

10 (1) IN GENERAL.—Section 25C(d)(3) is amend11 ed— 

12 (A) by striking ‘‘and’’ at the end of sub13 paragraph (D), 

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

15 subparagraph (E) and inserting ‘‘, and’’, and 

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

17 subparagraph: 

18 ‘‘(F) a stove which uses the burning of bio19 mass fuel to heat a dwelling unit located in the 

20 United States and used as a residence by the 

21 taxpayer, or to heat water for use in such a 

22 dwelling unit, and which has a thermal effi23 ciency rating of at least 75 percent.’’. 

24 (2) BIOMASS FUEL.—Section 25C(d) (relating 

25 to residential energy property expenditures) is 


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1 amended by adding at the end the following new 

2 paragraph: 

3 ‘‘(6) BIOMASS FUEL.—The term ‘biomass fuel’ 

4 means any plant-derived fuel available on a renew5 able or recurring basis, including agricultural crops 

6 and trees, wood and wood waste and residues (in7 cluding wood pellets), plants (including aquatic 

8 plants), grasses, residues, and fibers.’’. 

9 (c) MODIFICATIONS OF STANDARDS FOR ENERGY10 EFFICIENT BUILDING PROPERTY.— 

11 (1) ELECTRIC HEAT PUMPS.—Subparagraph 

12 (B) of section 25C(d)(3) is amended to read as fol13 lows: 

14 ‘‘(A) an electric heat pump which achieves 

15 the highest efficiency tier established by the 

16 Consortium for Energy Efficiency, as in effect 

17 on January 1, 2008.’’. 

18 (2) CENTRAL AIR CONDITIONERS.—Section 

19 25C(d)(3)(D) is amended by striking ‘‘2006’’ and 

20 inserting ‘‘2008’’. 

21 (3) WATER HEATERS.—Subparagraph (E) of 

22 section 25C(d) is amended to read as follows: 

23 ‘‘(E) a natural gas, propane, or oil water 

24 heater which has either an energy factor of at 


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1 least 0.80 or a thermal efficiency of at least 90 

2 percent.’’. 

3 (4) OIL FURNACES AND HOT WATER BOIL4 ERS.—Paragraph (4) of section 25C(d) is amended 

5 to read as follows: 

6 ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND

7 OIL FURNACES AND HOT WATER BOILERS.— 

8 ‘‘(A) QUALIFIED NATURAL GAS FUR9 NACE.—The term ‘qualified natural gas fur10 nace’ means any natural gas furnace which 

11 achieves an annual fuel utilization efficiency 

12 rate of not less than 95. 

13 ‘‘(B) QUALIFIED NATURAL GAS HOT

14 WATER BOILER.—The term ‘qualified natural 

15 gas hot water boiler’ means any natural gas hot 

16 water boiler which achieves an annual fuel utili17 zation efficiency rate of not less than 90. 

18 ‘‘(C) QUALIFIED PROPANE FURNACE.— 

19 The term ‘qualified propane furnace’ means any 

20 propane furnace which achieves an annual fuel 

21 utilization efficiency rate of not less than 95. 

22 ‘‘(D) QUALIFIED PROPANE HOT WATER

23 BOILER.—The term ‘qualified propane hot 

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1 er which achieves an annual fuel utilization effi2 ciency rate of not less than 90. 

3 ‘‘(E) QUALIFIED OIL FURNACES.—The 

4 term ‘qualified oil furnace’ means any oil fur5 nace which achieves an annual fuel utilization 

6 efficiency rate of not less than 90. 

7 ‘‘(F) QUALIFIED OIL HOT WATER BOIL8 ER.—The term ‘qualified oil hot water boiler’ 

9 means any oil hot water boiler which achieves 

10 an annual fuel utilization efficiency rate of not 

11 less than 90.’’. 

12 (d) EFFECTIVE DATE.—The amendments made this 

13 section shall apply to expenditures made after December 

14 31, 2007. 

15 SEC. 512. EXTENSION AND MODIFICATION OF TAX CREDIT 

16 FOR ENERGY EFFICIENT NEW HOMES. 

17 (a) EXTENSION OF CREDIT.—Subsection (g) of sec18 tion 45L (relating to termination) is amended by striking 

19 ‘‘December 31, 2008’’ and inserting ‘‘December 31, 

20 2010’’. 

21 (b) ALLOWANCE FOR CONTRACTOR’S PERSONAL

22 RESIDENCE.—Subparagraph (B) of section 45L(a)(1) is 

23 amended to read as follows: 


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1 ‘‘(B)(i) acquired by a person from such eli2 gible contractor and used by any person as a 

3 residence during the taxable year, or 

4 ‘‘(ii) used by such eligible contractor as a 

5 residence during the taxable year.’’. 

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

7 this section shall apply to homes acquired after December 

8 31, 2008. 

9 SEC. 513. EXTENSION AND MODIFICATION OF ENERGY EF10 FICIENT COMMERCIAL BUILDINGS DEDUC11 TION. 

12 (a) EXTENSION.—Section 179D(h) (relating to ter13 mination) is amended by striking ‘‘December 31, 2008’’ 

14 and inserting ‘‘December 31, 2009’’. 

15 (b) ADJUSTMENT OF MAXIMUM DEDUCTION

16 AMOUNT.— 

17 (1) IN GENERAL.—Subparagraph (A) of section 

18 179D(b)(1) (relating to maximum amount of deduc19 tion) is amended by striking ‘‘$1.80’’ and inserting 

20 ‘‘$2.25’’. 

21 (2) PARTIAL ALLOWANCE.—Paragraph (1) of 

22 section 179D(d) is amended— 

23 (A) by striking ‘‘$.60’’ and inserting 

24 ‘‘$0.75’’, and 


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1 (B) by striking ‘‘$1.80’’ and inserting 

2 ‘‘$2.25’’. 

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

4 this section shall apply to property placed in service after 

5 the date of the enactment of this Act. 

6 SEC. 514. MODIFICATION AND EXTENSION OF ENERGY EF7 FICIENT APPLIANCE CREDIT FOR APPLI8 ANCES PRODUCED AFTER 2007. 

9 (a) IN GENERAL.—Subsection (b) of section 45M (re10 lating to applicable amount) is amended to read as follows: 

11 ‘‘(b) APPLICABLE AMOUNT.—For purposes of sub12 section (a)— 

13 ‘‘(1) DISHWASHERS.—The applicable amount 

14 is— 

15 ‘‘(A) $45 in the case of a dishwasher which 

16 is manufactured in calendar year 2008 or 2009 

17 and which uses no more than 324 kilowatt 

18 hours per year and 5.8 gallons per cycle, and 

19 ‘‘(B) $75 in the case of a dishwasher 

20 which is manufactured in calendar year 2008, 

21 2009, or 2010 and which uses no more than 

22 307 kilowatt hours per year and 5.0 gallons per 

23 cycle (5.5 gallons per cycle for dishwashers de24 signed for greater than 12 place settings). 


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1 ‘‘(2) CLOTHES WASHERS.—The applicable 

2 amount is— 

3 ‘‘(A) $75 in the case of a residential top4 loading clothes washer manufactured in cal5 endar year 2008 which meets or exceeds a 1.72 

6 modified energy factor and does not exceed a 

7 8.0 water consumption factor, 

8 ‘‘(B) $125 in the case of a residential top9 loading clothes washer manufactured in cal10 endar year 2008 or 2009 which meets or ex11 ceeds a 1.8 modified energy factor and does not 

12 exceed a 7.5 water consumption factor, 

13 ‘‘(C) $150 in the case of a residential or 

14 commercial clothes washer manufactured in cal15 endar year 2008, 2009, or 2010 which meets or 

16 exceeds 2.0 modified energy factor and does not 

17 exceed a 6.0 water consumption factor, and 

18 ‘‘(D) $250 in the case of a residential or 

19 commercial clothes washer manufactured in cal20 endar year 2008, 2009, or 2010 which meets or 

21 exceeds 2.2 modified energy factor and does not 

22 exceed a 4.5 water consumption factor. 

23 ‘‘(3) REFRIGERATORS.—The applicable amount 

24 is— 


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1 ‘‘(A) $50 in the case of a refrigerator 

2 which is manufactured in calendar year 2008, 

3 and consumes at least 20 percent but not more 

4 than 22.9 percent less kilowatt hours per year 

5 than the 2001 energy conservation standards, 

6 ‘‘(B) $75 in the case of a refrigerator 

7 which is manufactured in calendar year 2008 or 

8 2009, and consumes at least 23 percent but no 

9 more than 24.9 percent less kilowatt hours per 

10 year than the 2001 energy conservation stand11 ards, 

12 ‘‘(C) $100 in the case of a refrigerator 

13 which is manufactured in calendar year 2008, 

14 2009, or 2010, and consumes at least 25 per15 cent but not more than 29.9 percent less kilo16 watt hours per year than the 2001 energy con17 servation standards, and 

18 ‘‘(D) $200 in the case of a refrigerator 

19 manufactured in calendar year 2008, 2009, or 

20 2010 and which consumes at least 30 percent 

21 less energy than the 2001 energy conservation 

22 standards.’’. 

23 (b) ELIGIBLE PRODUCTION.— 


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1 (1) SIMILAR TREATMENT FOR ALL APPLI2 ANCES.—Subsection (c) of section 45M (relating to 

3 eligible production) is amended— 

4 (A) by striking paragraph (2), 

5 (B) by striking ‘‘(1) IN GENERAL’’ and all 

6 that follows through ‘‘the eligible’’ and inserting 

7 ‘‘The eligible’’, and 

8 (C) by moving the text of such subsection 

9 in line with the subsection heading and redesig10 nating subparagraphs (A) and (B) as para11 graphs (1) and (2), respectively. 

12 (2) MODIFICATION OF BASE PERIOD.—Para13 graph (2) of section 45M(c), as amended by para14 graph (1) of this section, is amended by striking ‘‘3- 

15 calendar year’’ and inserting ‘‘2-calendar year’’. 

16 (c) TYPES OF ENERGY EFFICIENT APPLIANCES.— 

17 Subsection (d) of section 45M (defining types of energy 

18 efficient appliances) is amended to read as follows: 

19 ‘‘(d) TYPES OF ENERGY EFFICIENT APPLIANCE.— 

20 For purposes of this section, the types of energy efficient 

21 appliances are— 

22 ‘‘(1) dishwashers described in subsection (b)(1), 

23 ‘‘(2) clothes washers described in subsection 

24 (b)(2), and 


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1 ‘‘(3) refrigerators described in subsection 

2 (b)(3).’’. 

3 (d) AGGREGATE CREDIT AMOUNT ALLOWED.— 

4 (1) INCREASE IN LIMIT.—Paragraph (1) of sec5 tion 45M(e) (relating to aggregate credit amount al6 lowed) is amended to read as follows: 

7 ‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— 

8 The aggregate amount of credit allowed under sub9 section (a) with respect to a taxpayer for any tax10 able year shall not exceed $75,000,000 reduced by 

11 the amount of the credit allowed under subsection 

12 (a) to the taxpayer (or any predecessor) for all prior 

13 taxable years beginning after December 31, 2007.’’. 

14 (2) EXCEPTION FOR CERTAIN REFRIGERATOR

15 AND CLOTHES WASHERS.—Paragraph (2) of section 

16 45M(e) is amended to read as follows: 

17 ‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIG18 ERATORS AND CLOTHES WASHERS.—Refrigerators 

19 described in subsection (b)(3)(D) and clothes wash20 ers described in subsection (b)(2)(D) shall not be 

21 taken into account under paragraph (1).’’. 

22 (e) QUALIFIED ENERGY EFFICIENT APPLIANCES.— 

23 (1) IN GENERAL.—Paragraph (1) of section 

24 45M(f) (defining qualified energy efficient appliance) 

25 is amended to read as follows: 


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1 ‘‘(1) QUALIFIED ENERGY EFFICIENT APPLI2 ANCE.—The term ‘qualified energy efficient appli3 ance’ means— 

4 ‘‘(A) any dishwasher described in sub5 section (b)(1), 

6 ‘‘(B) any clothes washer described in sub7 section (b)(2), and 

8 ‘‘(C) any refrigerator described in sub9 section (b)(3).’’. 

10 (2) CLOTHES WASHER.—Section 45M(f)(3) (de11 fining clothes washer) is amended by inserting 

12 ‘‘commercial’’ before ‘‘residential’’ the second place 

13 it appears. 

14 (3) TOP-LOADING CLOTHES WASHER.—Sub15 section (f) of section 45M (relating to definitions) is 

16 amended by redesignating paragraphs (4), (5), (6), 

17 and (7) as paragraphs (5), (6), (7), and (8), respec18 tively, and by inserting after paragraph (3) the fol19 lowing new paragraph: 

20 ‘‘(4) TOP-LOADING CLOTHES WASHER.—The 

21 term ‘top-loading clothes washer’ means a clothes 

22 washer which has the clothes container compartment 

23 access located on the top of the machine and which 

24 operates on a vertical axis.’’. 


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1 (4) REPLACEMENT OF ENERGY FACTOR.—Sec2 tion 45M(f)(6), as redesignated by paragraph (3), is 

3 amended to read as follows: 

4 ‘‘(6) MODIFIED ENERGY FACTOR.—The term 

5 ‘modified energy factor’ means the modified energy 

6 factor established by the Department of Energy for 

7 compliance with the Federal energy conservation 

8 standard.’’. 

9 (5) GALLONS PER CYCLE; WATER CONSUMP10 TION FACTOR.—Section 45M(f) (relating to defini11 tions), as amended by paragraph (3), is amended by 

12 adding at the end the following: 

13 ‘‘(9) GALLONS PER CYCLE.—The term ‘gallons 

14 per cycle’ means, with respect to a dishwasher, the 

15 amount of water, expressed in gallons, required to 

16 complete a normal cycle of a dishwasher. 

17 ‘‘(10) WATER CONSUMPTION FACTOR.—The 

18 term ‘water consumption factor’ means, with respect 

19 to a clothes washer, the quotient of the total weight20 ed per-cycle water consumption divided by the cubic 

21 foot (or liter) capacity of the clothes washer.’’. 

22 (f) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to appliances produced after De24 cember 31, 2007. 


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1 Subtitle B—Mineral Royalty 

2 Payments 

3 SEC. 521. TERMINATION OF AUTHORITY TO DEDUCT 

4 AMOUNTS FROM SHARE OF OIL AND GAS 

5 LEASING REVENUES PROVIDED TO STATES. 

6 (a) IN GENERAL.—Effective December 26, 2007, the 

7 matter under the heading ‘‘ADMINISTRATIVE PROVI8 SIONS’’ under the heading ‘‘Minerals Management Serv9 ice’’ of title I of the Department of the Interior, Environ10 ment, and Related Agencies Appropriations Act, 2008 

11 (Subdivision F of Public Law 110–161; 121 Stat. 2109) 

12 is amended by striking the second undesignated para13 graph. 

14 (b) ADMINISTRATION.—Notwithstanding any other 

15 provision of law, the Secretary of the Treasury and the 

16 Secretary of the Interior shall not deduct any amount 

17 from or reduce the amount of payments otherwise payable 

18 to States under section 35 of the Mineral Leasing Act (30 

19 U.S.C. 191). 

20 TITLE VI—COAL-TECHNOLOGY 

21 DEVELOPMENT 

22 Subtitle A—Coal to Liquids 

23 SEC. 601. DEFINITIONS. 

24 In this subtitle: 


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1 (1) COAL-TO-LIQUID.—The term ‘‘coal-to-liq2 uid’’ means— 

3 (A) with respect to a process or tech4 nology, the use of a feedstock, the majority of 

5 which is the coal resources of the United 

6 States, using the class of reactions known as 

7 Fischer-Tropsch, to produce synthetic fuel suit8 able for transportation; and 

9 (B) with respect to a facility, the portion 

10 of a facility related to producing the inputs to 

11 the Fischer-Tropsch process, the Fischer12 Tropsch process, finished fuel production, or 

13 the capture, transportation, or sequestration of 

14 byproducts of the use of a feedstock that is pri15 marily domestic coal at the Fischer-Tropsch fa16 cility, including carbon emissions. 

17 (2) SECRETARY.—The term ‘‘Secretary’’ means 

18 the Secretary of Energy. 

19 SEC. 602. COAL-TO-LIQUID FUEL LOAN GUARANTEE PRO20 GRAM. 

21 (a) ELIGIBLE PROJECTS.—Section 1703(b) of the 

22 Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is 

23 amended by adding at the end the following: 

24 ‘‘(11) Large-scale coal-to-liquid facilities (as de25 fined in section 601 of the Eight Steps to Energy 


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1 Sufficiency Act of 2008) that use a feedstock, the 

2 majority of which is the coal resources of the United 

3 States, to produce not less than 10,000 barrels a 

4 day of liquid transportation fuel.’’. 

5 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

6 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) 

7 is amended by adding at the end the following: 

8 ‘‘(c) COAL-TO-LIQUID PROJECTS.— 

9 ‘‘(1) IN GENERAL.—There are authorized to be 

10 appropriated such sums as are necessary to provide 

11 the cost of guarantees for projects involving large12 scale coal-to-liquid facilities under section 

13 1703(b)(11). 

14 ‘‘(2) ALTERNATIVE FUNDING.—If no appropria15 tions are made available under paragraph (1), an eli16 gible applicant may elect to provide payment to the 

17 Secretary, to be delivered if and at the time the ap18 plication is approved, in the amount of the estimated 

19 cost of the loan guarantee to the Federal Govern20 ment, as determined by the Secretary. 

21 ‘‘(3) LIMITATIONS.— 

22 ‘‘(A) IN GENERAL.—No loan guarantees 

23 shall be provided under this title for projects 

24 described in paragraph (1) after (as determined 

25 by the Secretary)— 


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1 ‘‘(i) the tenth such loan guarantee is 

2 issued under this title; or 

3 ‘‘(ii) production capacity covered by 

4 such loan guarantees reaches 100,000 bar5 rels per day of coal-to-liquid fuel. 

6 ‘‘(B) INDIVIDUAL PROJECTS.— 

7 ‘‘(i) IN GENERAL.—A loan guarantee 

8 may be provided under this title for any 

9 large-scale coal-to-liquid facility described 

10 in paragraph (1) that produces no more 

11 than 20,000 barrels of coal-to-liquid fuel 

12 per day. 

13 ‘‘(ii) NON-FEDERAL FUNDING RE14 QUIREMENT.—To be eligible for a loan 

15 guarantee under this title, a large-scale 

16 coal-to-liquid facility described in para17 graph (1) that produces more than 20,000 

18 barrels per day of coal-to-liquid fuel shall 

19 be eligible to receive a loan guarantee for 

20 the proportion of the cost of the facility 

21 that represents 20,000 barrels of coal-to22 liquid fuel per day of production. 

23 ‘‘(4) REQUIREMENTS.— 

24 ‘‘(A) GUIDELINES.—Not later than 180 

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1 section, the Secretary shall publish guidelines 

2 for the coal-to-liquids loan guarantee applica3 tion process. 

4 ‘‘(B) APPLICATIONS.—Not later than 1 

5 year after the date of enactment of this sub6 section, the Secretary shall begin to accept ap7 plications for coal-to-liquid loan guarantees 

8 under this subsection. 

9 ‘‘(C) DEADLINE.—Not later than 1 year 

10 from the date of acceptance of an application 

11 under subparagraph (B), the Secretary shall 

12 evaluate the application and make final deter13 minations under this subsection. 

14 ‘‘(5) REPORTS TO CONGRESS.—The Secretary 

15 shall submit to the Committee on Energy and Nat16 ural Resources of the Senate and the Committee on 

17 Energy and Commerce of the House of Representa18 tives a report describing the status of the program 

19 under this subsection not later than each of— 

20 ‘‘(A) 180 days after the date of enactment 

21 of this subsection; 

22 ‘‘(B) 1 year after the date of enactment of 

23 this subsection; and 

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1 to-liquid loan guarantees under this sub2 section.’’. 

3 SEC. 603. COAL-TO-LIQUID FACILITIES LOAN PROGRAM. 

4 (a) DEFINITION OF ELIGIBLE RECIPIENT.—In this 

5 section, the term ‘‘eligible recipient’’ means an individual, 

6 organization, or other entity that owns, operates, or plans 

7 to construct a coal-to-liquid facility that will produce at 

8 least 10,000 barrels per day of coal-to-liquid fuel. 

9 (b) ESTABLISHMENT.—The Secretary shall establish 

10 a program under which the Secretary shall provide loans, 

11 in a total amount not to exceed $20,000,000, for use by 

12 eligible recipients to pay the Federal share of the cost of 

13 obtaining any services necessary for the planning, permit14 ting, and construction of a coal-to-liquid facility. 

15 (c) APPLICATION.—To be eligible to receive a loan 

16 under subsection (b), the eligible recipient shall submit to 

17 the Secretary an application at such time, in such manner, 

18 and containing such information as the Secretary may re19 quire. 

20 (d) NON-FEDERAL MATCH.—To be eligible to receive 

21 a loan under this section, an eligible recipient shall use 

22 non-Federal funds to provide a dollar-for-dollar match of 

23 the amount of the loan. 

24 (e) REPAYMENT OF LOAN.— 


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

2 loan under this section, an eligible recipient shall 

3 agree to repay the original amount of the loan to the 

4 Secretary not later than 5 years after the date of the 

5 receipt of the loan. 

6 (2) SOURCE OF FUNDS.—Repayment of a loan 

7 under paragraph (1) may be made from any financ8 ing or assistance received for the construction of a 

9 coal-to-liquid facility described in subsection (a), in10 cluding a loan guarantee provided under section 

11 1703(b)(11) of the Energy Policy Act of 2005 (42 

12 U.S.C. 16513(b)(11)). 

13 (f) REQUIREMENTS.— 

14 (1) GUIDELINES.—Not later than 180 days 

15 after the date of enactment of this Act, the Sec16 retary shall publish guidelines for the coal-to-liquids 

17 loan application process. 

18 (2) APPLICATIONS.—Not later than 1 year 

19 after the date of enactment of this Act, the Sec20 retary shall begin to accept applications for coal-to21 liquid loans under this section. 

22 (g) REPORTS TO CONGRESS.—Not later than each of 

23 180 days and 1 year after the date of enactment of this 

24 Act, the Secretary shall submit to the Committee on En25 ergy and Natural Resources of the Senate and the ComVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 mittee on Energy and Commerce of the House of Rep2 resentatives a report describing the status of the program 

3 under this section. 

4 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated to carry out this section 

6 $200,000,000, to remain available until expended. 

7 SEC. 604. LOCATION OF COAL-TO-LIQUID MANUFACTURING 

8 FACILITIES. 

9 The Secretary, in coordination with the head of any 

10 affected agency, shall promulgate such regulations as the 

11 Secretary determines to be necessary to support the devel12 opment on Federal land (including land of the Department 

13 of Energy, military bases, and military installations closed 

14 or realigned under the defense base closure and realign15 ment) of coal-to-liquid manufacturing facilities and associ16 ated infrastructure, including the capture, transportation, 

17 or sequestration of carbon dioxide. 

18 SEC. 605. STRATEGIC PETROLEUM RESERVE. 

19 (a) DEVELOPMENT, OPERATION, AND MAINTENANCE

20 OF RESERVE.—Section 159 of the Energy Policy and Con21 servation Act (42 U.S.C. 6239) is amended— 

22 (1) by redesignating subsections (f), (g), (j), 

23 (k), and (l) as subsections (a), (b), (e), (f), and (g), 

24 respectively; and 


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1 (2) by inserting after subsection (b) (as redesig2 nated by paragraph (1)) the following: 

3 ‘‘(c) STUDY OF MAINTAINING COAL-TO-LIQUID

4 PRODUCTS IN RESERVE.—Not later than 1 year after the 

5 date of enactment of the Eight Steps to Energy Suffi6 ciency Act of 2008, the Secretary and the Secretary of 

7 Defense shall— 

8 ‘‘(1) conduct a study of the feasibility and suit9 ability of maintaining coal-to-liquid products in the 

10 Reserve; and 

11 ‘‘(2) submit to the Committee on Energy and 

12 Natural Resources and the Committee on Armed 

13 Services of the Senate and the Committee on Energy 

14 and Commerce and the Committee on Armed Serv15 ices of the House of Representatives a report de16 scribing the results of the study. 

17 ‘‘(d) CONSTRUCTION OF STORAGE FACILITIES.—As 

18 soon as practicable after the date of enactment of the 

19 Eight Steps to Energy Sufficiency Act of 2008, the Sec20 retary may construct 1 or more storage facilities in the 

21 vicinity of pipeline infrastructure and at least 1 military 

22 base.’’. 

23 (b) PETROLEUM PRODUCTS FOR STORAGE IN RE24 SERVE.—Section 160 of the Energy Policy and Conserva25 tion Act (42 U.S.C. 6240) is amended— 


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1 (1) in subsection (a)— 

2 (A) in paragraph (1), by inserting a semi3 colon at the end; 

4 (B) in paragraph (2), by striking ‘‘and’’ at 

5 the end; 

6 (C) in paragraph (3), by striking the pe7 riod at the end and inserting ‘‘; and’’; and 

8 (D) by adding at the end the following: 

9 ‘‘(4) coal-to-liquid products (as defined in sec10 tion 601 of the Eight Steps to Energy Sufficiency 

11 Act of 2008), as the Secretary determines to be ap12 propriate, in a quantity not to exceed 20 percent of 

13 the total quantity of petroleum and petroleum prod14 ucts in the Reserve.’’; 

15 (2) in subsection (b), by redesignating para16 graphs (3) through (5) as paragraphs (2) through 

17 (4), respectively; and 

18 (3) by redesignating subsections (f) and (h) as 

19 subsections (d) and (e), respectively. 

20 (c) CONFORMING AMENDMENTS.—Section 167 of the 

21 Energy Policy and Conservation Act (42 U.S.C. 6247) is 

22 amended— 

23 (1) in subsection (b)— 

24 (A) by redesignating paragraphs (2) and 

25 (3) as paragraphs (1) and (2), respectively; and 


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1 (B) in paragraph (2) (as redesignated by 

2 subparagraph (A)), by striking ‘‘section 160(f)’’ 

3 and inserting ‘‘section 160(e)’’; and 

4 (2) in subsection (d), in the matter preceding 

5 paragraph (1), by striking ‘‘section 160(f)’’ and in6 serting ‘‘section 160(e)’’. 

7 SEC. 606. AUTHORIZATION TO CONDUCT RESEARCH, DE8 VELOPMENT, TESTING, AND EVALUATION OF 

9 ASSURED DOMESTIC FUELS. 

10 Of the amount authorized to be appropriated for the 

11 Air Force for research, development, testing, and evalua12 tion, $10,000,000 may be made available for the Air Force 

13 Research Laboratory to continue support efforts to test, 

14 qualify, and procure synthetic fuels developed from coal 

15 for aviation jet use. 

16 SEC. 607. COAL-TO-LIQUID LONG-TERM FUEL PROCURE17 MENT AND DEPARTMENT OF DEFENSE DE18 VELOPMENT. 

19 Section 2922d of title 10, United States Code, is 

20 amended— 

21 (1) in subsection (b)— 

22 (A) by striking ‘‘The Secretary’’ and in23 serting the following: 

24 ‘‘(1) IN GENERAL.—The Secretary’’; and 

25 (B) by adding at the end the following: 


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1 ‘‘(2) COAL-TO-LIQUID PRODUCTION FACILI2 TIES.— 

3 ‘‘(A) IN GENERAL.—The Secretary of De4 fense may enter into contracts or other agree5 ments with private companies or other entities 

6 to develop and operate coal-to-liquid facilities 

7 (as defined in section 601 of the Eight Steps to 

8 Energy Sufficiency Act of 2008) on or near 

9 military installations. 

10 ‘‘(B) CONSIDERATIONS.—In entering into 

11 contracts and other agreements under subpara12 graph (A), the Secretary shall consider land 

13 availability, testing opportunities, and proximity 

14 to raw materials.’’; 

15 (2) in subsection (d)— 

16 (A) by striking ‘‘Subject to applicable pro17 visions of law, any’’ and inserting ‘‘Any’’; and 

18 (B) by striking ‘‘1 or more years’’ and in19 serting ‘‘up to 25 years’’; and 

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

21 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated such sums as are nec23 essary to carry out this section.’’. 


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1 SEC. 608. REPORT ON EMISSIONS OF FISCHER-TROPSCH 

2 PRODUCTS USED AS TRANSPORTATION 

3 FUELS. 

4 (a) IN GENERAL.—In cooperation with the Adminis5 trator of the Environmental Protection Agency, the Sec6 retary of Defense, the Administrator of the Federal Avia7 tion Administration, and the Secretary of Health and 

8 Human Services, the Secretary shall— 

9 (1) carry out a research and demonstration pro10 gram to evaluate the emissions of the use of Fischer11 Tropsch fuel for transportation, including diesel and 

12 jet fuel; 

13 (2) evaluate the effect of using Fischer-Tropsch 

14 transportation fuel on land and air engine exhaust 

15 emissions; and 

16 (3) in accordance with subsection (e), submit to 

17 Congress a report on the effect on air quality and 

18 public health of using Fischer-Tropsch fuel in the 

19 transportation sector. 

20 (b) GUIDANCE AND TECHNICAL SUPPORT.—The Sec21 retary shall issue any guidance or technical support docu22 ments necessary to facilitate the effective use of Fischer23 Tropsch fuel and blends under this section. 

24 (c) FACILITIES.—For the purpose of evaluating the 

25 emissions of Fischer-Tropsch transportation fuels, the 

26 Secretary shall— 


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1 (1) support the use and capital modification of 

2 existing facilities and the construction of new facili3 ties at the research centers designated in section 

4 417 of the Energy Policy Act of 2005 (42 U.S.C. 

5 15977); and 

6 (2) engage those research centers in the evalua7 tion and preparation of the report required under 

8 subsection (a)(3). 

9 (d) REQUIREMENTS.—The program described in sub10 section (a)(1) shall consider— 

11 (1) the use of neat (100 percent) Fischer12 Tropsch fuel and blends of Fischer-Tropsch fuels 

13 with conventional crude oil-derived fuel for heavy14 duty and light-duty diesel engines and the aviation 

15 sector; and 

16 (2) the production costs associated with domes17 tic production of those fuels and prices for con18 sumers. 

19 (e) REPORTS.—The Secretary shall submit to the 

20 Committee on Energy and Natural Resources of the Sen21 ate and the Committee on Energy and Commerce of the 

22 House of Representatives— 

23 (1) not later than 180 days after the date of 

24 enactment of this Act, an interim report on actions 

25 taken to carry out this section; and 


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1 (2) not later than 1 year after the date of en2 actment of this Act, a final report on actions taken 

3 to carry out this section. 

4 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated such sums as are nec6 essary to carry out this section. 

7 Subtitle B—Tax Incentives for 

8 Coal-to-Liquids Production 

9 SEC. 611. CREDIT FOR INVESTMENT IN COAL-TO-LIQUID 

10 FUELS PROJECTS. 

11 (a) IN GENERAL.—Section 46 of the Internal Rev12 enue Code of 1986 (relating to amount of credit) is 

13 amended by striking ‘‘and’’ at the end of paragraph (3), 

14 by striking the period at the end of paragraph (4) and 

15 inserting ‘‘, and’’, and by adding at the end the following 

16 new paragraph: 

17 ‘‘(5) the qualifying coal-to-liquid fuels project 

18 credit.’’. 

19 (b) AMOUNT OF CREDIT.—Subpart E of part IV of 

20 subchapter A of chapter 1 of the Internal Revenue Code 

21 of 1986 (relating to rules for computing investment credit) 

22 is amended by inserting after section 48B the following 

23 new section: 


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1 ‘‘SEC. 48C. QUALIFYING COAL-TO-LIQUID FUELS PROJECT 

2 CREDIT. 

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

4 qualifying coal-to-liquid fuels project credit for any taxable 

5 year is an amount equal to 20 percent of the qualified 

6 investment for such taxable year. 

7 ‘‘(b) QUALIFIED INVESTMENT.— 

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

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

10 the basis of property placed in service by the tax11 payer during such taxable year which is part of a 

12 qualifying coal-to-liquid fuels project— 

13 ‘‘(A)(i) the construction, reconstruction, or 

14 erection of which is completed by the taxpayer; 

15 or 

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

17 the original use of such property commences 

18 with the taxpayer; and 

19 ‘‘(B) with respect to which depreciation (or 

20 amortization in lieu of depreciation) is allow21 able. 

22 ‘‘(2) APPLICABLE RULES.—For purposes of this 

23 section, rules similar to the rules of subsection 

24 (a)(4) and (b) of section 48 shall apply. 

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


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1 ‘‘(1) QUALIFYING COAL-TO-LIQUID FUELS

2 PROJECT.—The term ‘qualifying coal-to-liquid fuels 

3 project’ means any domestic project which— 

4 ‘‘(A) employs the class of reactions known 

5 as Fischer-Tropsch to produce at least 10,000 

6 barrels per day of transportation grade liquid 

7 fuels from a feedstock that is primarily domes8 tic coal (including any property which allows for 

9 the capture, transportation, or sequestration of 

10 by-products resulting from such process, includ11 ing carbon emissions); and 

12 ‘‘(B) any portion of the qualified invest13 ment in which is certified under the qualifying 

14 coal-to-liquid program as eligible for credit 

15 under this section in an amount (not to exceed 

16 $200,000,000) determined by the Secretary. 

17 ‘‘(2) COAL.—The term ‘coal’ means any carbon18 ized or semicarbonized matter, including peat. 

19 ‘‘(d) QUALIFYING COAL-TO-LIQUID FUELS PROJECT

20 PROGRAM.— 

21 ‘‘(1) IN GENERAL.—The Secretary, in consulta22 tion with the Secretary of Energy, shall establish a 

23 qualifying coal-to-liquid fuels project program to 

24 consider and award certifications for qualified in25 vestment eligible for credits under this section to 10 


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1 qualifying coal-to-liquid fuels project sponsors under 

2 this section. The total qualified investment which 

3 may be awarded eligibility for credit under the pro4 gram shall not exceed $2,000,000,000. 

5 ‘‘(2) PERIOD OF ISSUANCE.—A certificate of 

6 eligibility under paragraph (1) may be issued only 

7 during the 10-fiscal year period beginning on Octo8 ber 1, 2007. 

9 ‘‘(3) SELECTION CRITERIA.—The Secretary 

10 shall not make a competitive certification award for 

11 qualified investment for credit eligibility under this 

12 section unless the recipient has documented to the 

13 satisfaction of the Secretary that— 

14 ‘‘(A) the proposal of the award recipient is 

15 financially viable; 

16 ‘‘(B) the recipient will provide sufficient 

17 information to the Secretary for the Secretary 

18 to ensure that the qualified investment is spent 

19 efficiently and effectively; 

20 ‘‘(C) the fuels identified with respect to the 

21 gasification technology for such project will 

22 comprise at least 90 percent of the fuels re23 quired by the project for the production of 

24 transportation grade liquid fuels; 


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1 ‘‘(D) the award recipient’s project team is 

2 competent in the planning and construction of 

3 coal gasification facilities and familiar with op4 eration of the Fischer-Tropsch process, with 

5 preference given to those recipients with experi6 ence which demonstrates successful and reliable 

7 operations of such process; and 

8 ‘‘(E) the award recipient has met other cri9 teria established and published by the Sec10 retary. 

11 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction 

12 or other credit shall be allowed with respect to the basis 

13 of any property taken into account in determining the 

14 credit allowed under this section.’’. 

15 (c) CONFORMING AMENDMENTS.— 

16 (1) Section 49(a)(1)(C) of the Internal Revenue 

17 Code of 1986 is amended by striking ‘‘and’’ at the 

18 end of clause (iii), by striking the period at the end 

19 of clause (iv) and inserting ‘‘, and’’, and by adding 

20 after clause (iv) the following new clause: 

21 ‘‘(v) the basis of any property which 

22 is part of a qualifying coal-to-liquid fuels 

23 project under section 48C.’’. 

24 (2) The table of sections for subpart E of part 

25 IV of subchapter A of chapter 1 of such Code is 


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1 amended by inserting after the item relating to sec2 tion 48B the following new item: 

‘‘Sec. 48C. Qualifying coal-to-liquid fuels project credit.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to periods after the date of the 

5 enactment of this Act, under rules similar to the rules of 

6 section 48(m) of the Internal Revenue Code of 1986 (as 

7 in effect on the day before the date of the enactment of 

8 the Revenue Reconciliation Act of 1990). 

9 SEC. 612. TEMPORARY EXPENSING FOR EQUIPMENT USED 

10 IN COAL-TO-LIQUID FUELS PROCESS. 

11 (a) IN GENERAL.—Part VI of subchapter B of chap12 ter 1 of the Internal Revenue Code of 1986 is amended 

13 by inserting after section 179D the following new section: 

14 ‘‘SEC. 179E. ELECTION TO EXPENSE CERTAIN COAL-TO-LIQ15 UID FUELS FACILITIES. 

16 ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 

17 elect to treat the cost of any qualified coal-to-liquid fuels 

18 process property as an expense which is not chargeable 

19 to capital account. Any cost so treated shall be allowed 

20 as a deduction for the taxable year in which the expense 

21 is incurred. 

22 ‘‘(b) ELECTION.— 

23 ‘‘(1) IN GENERAL.—An election under this sec24 tion for any taxable year shall be made on the tax25 payer’s return of the tax imposed by this chapter for 


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1 the taxable year. Such election shall be made in such 

2 manner as the Secretary may by regulations pre3 scribe. 

4 ‘‘(2) ELECTION IRREVOCABLE.—Any election 

5 made under this section may not be revoked except 

6 with the consent of the Secretary. 

7 ‘‘(c) QUALIFIED COAL-TO-LIQUID FUELS PROCESS

8 PROPERTY.—The term ‘qualified coal-to-liquid fuels proc9 ess property’ means any property located in the United 

10 States— 

11 ‘‘(1) which employs the Fischer-Tropsch process 

12 to produce transportation grade liquid fuels from a 

13 feedstock that is primarily domestic coal (including 

14 any property which allows for the capture, transpor15 tation, or sequestration of by-products resulting 

16 from such process, including carbon emissions); 

17 ‘‘(2) the original use of which commences with 

18 the taxpayer; 

19 ‘‘(3) the construction of which— 

20 ‘‘(A) except as provided in subparagraph 

21 (B), is subject to a binding construction con22 tract entered into after the date of the enact23 ment of this section and before January 1, 

24 2011, but only if there was no written binding 


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1 construction contract entered into on or before 

2 such date of enactment; or 

3 ‘‘(B) in the case of self-constructed prop4 erty, began after the date of the enactment of 

5 this section and before January 1, 2011; and 

6 ‘‘(4) which is placed in service by the taxpayer 

7 after the date of the enactment of this section and 

8 before January 1, 2016. 

9 ‘‘(d) ELECTION TO ALLOCATE DEDUCTION TO COOP10 ERATIVE OWNER.—If— 

11 ‘‘(1) a taxpayer to which subsection (a) applies 

12 is an organization to which part I of subchapter T 

13 applies; and 

14 ‘‘(2) one or more persons directly holding an 

15 ownership interest in the taxpayer are organizations 

16 to which part I of subchapter T apply, the taxpayer 

17 may elect to allocate all or a portion of the deduc18 tion allowable under subsection (a) to such persons. 

19 Such allocation shall be equal to the person’s ratable 

20 share of the total amount allocated, determined on 

21 the basis of the person’s ownership interest in the 

22 taxpayer. The taxable income of the taxpayer shall 

23 not be reduced under section 1382 by reason of any 

24 amount to which the preceding sentence applies. 

25 ‘‘(e) BASIS REDUCTION.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this title, 

2 if a deduction is allowed under this section with re3 spect to any qualified coal-to-liquid fuels process 

4 property, the basis of such property shall be reduced 

5 by the amount of the deduction so allowed. 

6 ‘‘(2) ORDINARY INCOME RECAPTURE.—For 

7 purposes of section 1245, the amount of the deduc8 tion allowable under subsection (a) with respect to 

9 any property which is of a character subject to the 

10 allowance for depreciation shall be treated as a de11 duction allowed for depreciation under section 167. 

12 ‘‘(f) APPLICATION WITH OTHER DEDUCTIONS AND

13 CREDITS.— 

14 ‘‘(1) OTHER DEDUCTIONS.—No deduction shall 

15 be allowed under any other provision of this chapter 

16 with respect to any expenditure with respect to 

17 which a deduction is allowed under subsection (a) to 

18 the taxpayer. 

19 ‘‘(2) CREDITS.—No credit shall be allowed 

20 under section 38 with respect to any amount for 

21 which a deduction is allowed under subsection (a). 

22 ‘‘(g) REPORTING.—No deduction shall be allowed 

23 under subsection (a) to any taxpayer for any taxable year 

24 unless such taxpayer files with the Secretary a report con25 taining such information with respect to the operation of 


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1 the property of the taxpayer as the Secretary shall re2 quire.’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) Section 1016(a) of the Internal Revenue 

5 Code of 1986, as amended by this Act, is amended 

6 by striking ‘‘and’’ at the end of paragraph (36), by 

7 striking the period at the end of paragraph (37) and 

8 inserting ‘‘, and’’, and by adding at the end the fol9 lowing new paragraph: 

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

11 179E(e)(1).’’. 

12 (2) Section 1245(a) of such Code is amended 

13 by inserting ‘‘179E,’’ after ‘‘179D,’’ both places it 

14 appears in paragraphs (2)(C) and (3)(C). 

15 (3) Section 263(a)(1) of such Code is amended 

16 by striking ‘‘or’’ at the end of subparagraph (J), by 

17 striking the period at the end of subparagraph (K) 

18 and inserting ‘‘, or’’, and by inserting after subpara19 graph (K) the following new subparagraph: 

20 ‘‘(L) expenditures for which a deduction is 

21 allowed under section 179E.’’. 

22 (4) Section 312(k)(3)(B) of such Code is 

23 amended by striking ‘‘or 179D’’ each place it ap24 pears in the heading and text and inserting ‘‘179D, 

25 or 179E’’. 


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1 (5) The table of sections for part VI of sub2 chapter B of chapter 1 of such Code is amended by 

3 inserting after the item relating to section 179D the 

4 following new item: 

‘‘Sec. 179E. Election to expense certain coal-to-liquid fuels facilities.’’. 

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

6 this section shall apply to properties placed in service after 

7 the date of the enactment of this Act. 

8 SEC. 613. EXTENSION OF ALTERNATIVE FUEL CREDIT FOR 

9 FUEL DERIVED FROM COAL THROUGH THE 

10 FISCHER-TROPSCH PROCESS. 

11 (a) ALTERNATIVE FUEL CREDIT.—Paragraph (4) of 

12 section 6426(d) of the Internal Revenue Code of 1986 is 

13 amended to read as follows: 

14 ‘‘(4) TERMINATION.—This subsection shall not 

15 apply to— 

16 ‘‘(A) any sale or use involving liquid fuel 

17 derived from a feedstock that is primarily do18 mestic coal (including peat) through the Fisch19 er-Tropsch process for any period after Sep20 tember 30, 2020; 

21 ‘‘(B) any sale or use involving liquified hy22 drogen for any period after September 30, 

23 2014; and 

24 ‘‘(C) any other sale or use for any period 

25 after September 30, 2009.’’. 


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1 (b) PAYMENTS.— 

2 (1) IN GENERAL.—Paragraph (5) of section 

3 6427(e) of the Internal Revenue Code of 1986 is 

4 amended by striking ‘‘and’’ and the end of subpara5 graph (C), by striking the period at the end of sub6 paragraph (D) and inserting ‘‘, and’’, and by adding 

7 at the end the following new subparagraph: 

8 ‘‘(E) any alternative fuel or alternative fuel 

9 mixture (as so defined) involving liquid fuel de10 rived from coal (including peat) through the 

11 Fischer-Tropsch process sold or used after Sep12 tember 30, 2020.’’. 

13 (2) CONFORMING AMENDMENT.—Section 

14 6427(e)(5)(C) of such Code is amended by striking 

15 ‘‘subparagraph (D)’’ and inserting ‘‘subparagraphs 

16 (D) and (E)’’. 

17 SEC. 614. MODIFICATIONS TO ENHANCED OIL RECOVERY 

18 CREDIT. 

19 (a) ENHANCED CREDIT FOR CARBON DIOXIDE IN20 JECTIONS.—Section 43 of the Internal Revenue Code of 

21 1986 is amended by adding at the end the following new 

22 subsection: 

23 ‘‘(f) ENHANCED CREDIT FOR PROJECTS USING

24 QUALIFIED CARBON DIOXIDE.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion— 

3 ‘‘(A) the term ‘qualified project’ includes a 

4 project described in paragraph (2); and 

5 ‘‘(B) in the case of a project described in 

6 paragraph (2), subsection (a) shall be applied 

7 by substituting ‘50 percent’ for ‘15 percent’. 

8 ‘‘(2) PROJECTS DESCRIBED.—A project is de9 scribed in this paragraph if it begins or is substan10 tially expanded after December 31, 2007, and— 

11 ‘‘(A) uses qualified carbon dioxide in an 

12 enhanced oil, natural gas, or coalbed methane 

13 recovery method, which involves flooding or in14 jection; or 

15 ‘‘(B) enables the capture or sequestration 

16 of qualified carbon dioxide. 

17 ‘‘(3) DEFINITIONS.—For purposes of this sub18 section: 

19 ‘‘(A) CAPTURE OR SEQUESTRATION.—The 

20 term ‘capture or sequestration’ means any 

21 equipment or facility necessary to— 

22 ‘‘(i) capture or separate qualified car23 bon dioxide from other emissions; 

24 ‘‘(ii) transport qualified carbon diox25 ide; or 


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1 ‘‘(iii) process and use qualified carbon 

2 dioxide in a qualified project. 

3 ‘‘(B) ENHANCED COALBED METHANE RE4 COVERY.—The term ‘enhanced coalbed methane 

5 recovery’ means recovery of coalbed methane by 

6 injecting or flooding with qualified carbon diox7 ide. 

8 ‘‘(C) ENHANCED NATURAL GAS RECOV9 ERY.—The term ‘enhanced natural gas recov10 ery’ means recovery of natural gas by injecting 

11 or flooding with qualified carbon dioxide. 

12 ‘‘(D) ENHANCED OIL RECOVERY.—The 

13 term ‘enhanced oil recovery’ means recovery of 

14 oil by injecting or flooding with qualified carbon 

15 dioxide. 

16 ‘‘(E) QUALIFIED CARBON DIOXIDE.—The 

17 term ‘qualified carbon dioxide’ means carbon di18 oxide which is produced from the gasification 

19 and subsequent refinement of a feedstock which 

20 is primarily domestic coal, at a facility which 

21 produces coal-to-liquid fuel. 

22 ‘‘(4) TERMINATION.—This subsection shall not 

23 apply to costs paid or incurred for any qualified 

24 project after December 31, 2020.’’. 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 43 of the Internal Revenue Code of 

2 1986 is amended— 

3 (A) by striking ‘‘enhanced oil recovery 

4 credit’’ in subsection (a) and inserting ‘‘en5 hanced oil, natural gas, and coalbed methane 

6 recovery, and capture and sequestration credit’’; 

7 (B) by striking ‘‘qualified enhanced oil re8 covery costs’’ each place it appears and insert9 ing ‘‘qualified costs’’; 

10 (C) by striking ‘‘qualified enhanced oil re11 covery project’’ each place it appears and in12 serting ‘‘qualified project’’; and 

13 (D) by striking the heading and inserting: 

14 ‘‘SEC. 43. ENHANCED OIL, NATURAL GAS, AND COALBED 

15 METHANE RECOVERY, AND CAPTURE AND SE16 QUESTRATION CREDIT.’’. 

17 (2) The item in the table of sections for subpart 

18 D of part IV of subchapter A of chapter 1 of such 

19 Code relating to section 43 is amended to read as 

20 follows: 

‘‘Sec. 43. Enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit.’’. 

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

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

23 years ending after December 31, 2007. 


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1 SEC. 615. ALLOWANCE OF ENHANCED OIL, NATURAL GAS, 

2 AND COALBED METHANE RECOVERY, AND 

3 CAPTURE AND SEQUESTRATION CREDIT 

4 AGAINST THE ALTERNATIVE MINIMUM TAX. 

5 (a) IN GENERAL.—Subsection (c) of section 38 of the 

6 Internal Revenue Code of 1986 (relating to limitation 

7 based on amount of tax) is amended by redesignating 

8 paragraphs (4) and (5) as paragraphs (5) and (6), respec9 tively, and by inserting after paragraph (3) the following 

10 new paragraph: 

11 ‘‘(4) SPECIAL RULES FOR ENHANCED OIL, NAT12 URAL GAS, AND COALBED METHANE RECOVERY, AND

13 CAPTURE AND SEQUESTRATION CREDIT.—In the 

14 case of the enhanced oil, natural gas, and coalbed 

15 methane recovery, and capture and sequestration 

16 credit determined under section 43— 

17 ‘‘(A) this section and section 39 shall be 

18 applied separately with respect to such credit; 

19 and 

20 ‘‘(B) in applying paragraph (1) to such 

21 credit— 

22 ‘‘(i) the tentative minimum tax shall 

23 be treated as being zero; and 

24 ‘‘(ii) the limitation under paragraph 

25 (1) (as modified by clause (i)) shall be re26 duced by the credit allowed under subVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 section (a) for the taxable year (other than 

2 the enhanced oil, natural gas, and coalbed 

3 methane recovery, and capture and seques4 tration credit and the specified credits).’’. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) Section 38(c)(2)(A)(ii)(II) of the Internal 

7 Revenue Code of 1986 is amended by inserting ‘‘the 

8 enhanced oil, natural gas, and coalbed methane re9 covery, and capture and sequestration credit,’’ after 

10 ‘‘employee credit,’’. 

11 (2) Section 38(c)(3)(A)(ii)(II) of such Code is 

12 amended by inserting ‘‘, the enhanced oil, natural 

13 gas, coalbed methane recovery, capture and seques14 tration credit,’’ after ‘‘employee credit’’. 

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

16 this section shall apply to taxable years ending after De17 cember 31, 2007. 

18 Subtitle C—Clean Coal Technology 

19 Deployment 

20 SEC. 621. CARBON SEQUESTRATION AND CAPTURE. 

21 (a) DEFINITIONS.—In this section: 

22 (1) ANTHROPOGENIC.—The term ‘‘anthropo23 genic’’ means produced or caused by human activity. 

24 (2) CARBON DIOXIDE.—The term ‘‘carbon diox25 ide’’ means anthropogenically sourced carbon dioxide 


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1 that is of sufficient purity and quality as to not com2 promise the safety and efficiency of any reservoir in 

3 which the carbon dioxide is stored. 

4 (3) FEDERAL AGENCY.—The term ‘‘Federal 

5 agency’’ means any department, agency, or instru6 mentality of the United States. 

7 (4) GEOLOGICAL STORAGE.—The term ‘‘geo8 logical storage’’ means permanent or short-term un9 derground storage of carbon dioxide in a reservoir. 

10 (5) PERSON.— 

11 (A) IN GENERAL.—The term ‘‘person’’ 

12 means an individual, corporation, company (in13 cluding a limited liability company), association, 

14 partnership, State, municipality, or Federal 

15 agency. 

16 (B) INCLUSIONS.—The term ‘‘person’’ in17 cludes an officer, employee, and agent of any 

18 corporation, company (including a limited liabil19 ity company), association, partnership, State, 

20 municipality, or Federal agency. 

21 (6) RESERVOIR.— 

22 (A) IN GENERAL.—The term ‘‘reservoir’’ 

23 means any subsurface sedimentary stratum, 

24 formation, aquifer, or cavity or void (whether 

25 natural or artificially created) that is suitable 


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1 for, or capable of being made suitable for, the 

2 injection and storage of carbon dioxide. 

3 (B) INCLUSIONS.—The term ‘‘reservoir’’ 

4 includes— 

5 (i) an oil and gas reservoir; 

6 (ii) a saline formation or coal seam; 

7 and 

8 (iii) the seabed and subsoil of a sub9 marine area. 

10 (7) STATE.— 

11 (A) IN GENERAL.—The term ‘‘State’’ 

12 means— 

13 (i) each of the several States of the 

14 United States; 

15 (ii) the District of Columbia; 

16 (iii) the Commonwealth of Puerto 

17 Rico; 

18 (iv) Guam; 

19 (v) American Samoa; 

20 (vi) the Commonwealth of the North21 ern Mariana Islands; 

22 (vii) the Federated States of Micro23 nesia; 

24 (viii) the Republic of the Marshall Is25 lands; 


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1 (ix) the Republic of Palau; and 

2 (x) the United States Virgin Islands. 

3 (B) INCLUSIONS.—The term ‘‘State’’ in4 cludes all territorial water, seabed, and subsoil 

5 of submarine areas of each State. 

6 (8) STATE REGULATORY AGENCY.—The term 

7 ‘‘State regulatory agency’’ means the agency des8 ignated by the Governor of a State to administer a 

9 carbon dioxide storage program of the State. 

10 (9) STORAGE FACILITY.— 

11 (A) IN GENERAL.—The term ‘‘storage fa12 cility’’ means— 

13 (i) an underground reservoir, under14 ground equipment, and surface structures 

15 and equipment used in an operation to 

16 store carbon dioxide in a reservoir; and 

17 (ii) any other facilities that the Ad18 ministrator may include by regulation or 

19 permit. 

20 (B) EXCLUSIONS.—The term ‘‘storage fa21 cility’’ does not include pipelines used to trans22 port the carbon dioxide from 1 or more capture 

23 facilities to the storage and injection site. 

24 (10) STORAGE OPERATOR.—The term ‘‘storage 

25 operator’’ means any person or other entity authorVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 ized by the Administrator or State regulatory agency 

2 to operate a storage facility. 

3 (11) UNDERGROUND RESERVOIR.—The term 

4 ‘‘underground reservoir’’, with respect to a storage 

5 facility, includes any necessary and reasonable areal 

6 buffer and subsurface monitoring zones that are— 

7 (A) designated by the Administrator or 

8 State regulatory agency for the purpose of en9 suring the safe and efficient operation of the 

10 storage facility for the storage of carbon diox11 ide; and 

12 (B) selected to protect against pollution, 

13 invasion, and escape or migration of the stored 

14 carbon dioxide. 

15 (b) STATE CARBON DIOXIDE GEOLOGICAL STORAGE

16 PROGRAMS.— 

17 (1) REGULATIONS.— 

18 (A) IN GENERAL.—The Administrator 

19 shall— 

20 (i) not later than 180 days after the 

21 date of enactment of this Act, publish in 

22 the Federal Register proposed regulations 

23 for State carbon dioxide storage programs; 

24 and 


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1 (ii) not later than 180 days after the 

2 date of publication of the proposed regula3 tions under clause (i), promulgate final 

4 regulations for State carbon dioxide stor5 age programs that meet the requirements 

6 described in paragraph (2)(A), including 

7 such modifications as the Administrator 

8 determines to be appropriate. 

9 (B) UPDATING.—The Administrator may 

10 periodically review and, as necessary, revise the 

11 regulations promulgated under this subsection. 

12 (2) STATE REGULATORY AUTHORITY.— 

13 (A) IN GENERAL.—The regulations pro14 mulgated under paragraph (1)(A)(ii) shall es15 tablish minimum requirements that States shall 

16 meet in order to be approved to administer a 

17 carbon dioxide storage program under sub18 section (c)(1), including— 

19 (i) a prohibition on carbon dioxide 

20 storage in the State that is not authorized 

21 by a permit issued by the State; 

22 (ii) inspection, monitoring, record23 keeping, and reporting requirements; and 

24 (iii) authority for the State regulatory 

25 agency to issue a permit, after public noVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 tice and hearing, approving a storage facil2 ity for the proposed geological storage of 

3 carbon dioxide if the State regulatory au4 thority determines that— 

5 (I) the horizontal and vertical 

6 boundaries of the geological storage 

7 facility designated by the permit are 

8 appropriate for the storage facility; 

9 (II) the storage facility and res10 ervoir are suitable and feasible for the 

11 injection and storage of carbon diox12 ide; 

13 (III) a good faith effort has been 

14 made to obtain the consent of a ma15 jority of the owners having property 

16 interests affected by the storage facil17 ity, and that the storage operator in18 tends to acquire any remaining inter19 est by eminent domain or by a method 

20 otherwise allowed by law; 

21 (IV) the use of the storage facil22 ity for the geological storage of carbon 

23 dioxide will not result in the 

24 unpermitted migration of carbon diox25 ide into other formations containing 


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1 fresh drinking water or oil, gas, coal, 

2 or other commercial mineral deposits 

3 that are not owned by the storage op4 erator; and 

5 (V) the proposed storage would— 

6 (aa) not unduly endanger 

7 human health or the environ8 ment; and 

9 (bb) be in the public inter10 est. 

11 (B) STATE AUTHORITY.—A State regu12 latory agency approved under subsection (c)(1) 

13 to administer a carbon dioxide storage program 

14 shall issue such orders, permits, certificates, 

15 rules, and regulations, including establishment 

16 of such appropriate and sufficient financial 

17 sureties as are necessary, for the purpose of 

18 regulating the drilling, operation, and well plug19 ging and abandonment and removal of surface 

20 buildings and equipment of the storage facility 

21 in order to protect the storage facility against 

22 pollution, invasion, and the escape or migration 

23 of carbon dioxide. 

24 (C) EMINENT DOMAIN.—A storage oper25 ator may be empowered by a State to exercise 


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1 the right of eminent domain under State law to 

2 acquire all surface and subsurface rights and 

3 interests necessary or useful for the purpose of 

4 operating the storage facility, including ease5 ments and rights-of-way across land that are 

6 necessary to transport carbon dioxide among 

7 components of the storage facility. 

8 (D) VARIANCE IN CONDITIONS.—The regu9 lations promulgated under paragraph (1)(A)(ii) 

10 shall permit or provide for consideration of 

11 varying geological, hydrological, and historical 

12 conditions in different States and in different 

13 areas within a State. 

14 (E) ENHANCED RECOVERY OPERATIONS.— 

15 (i) IN GENERAL.—Upon the approval 

16 of a State to administer a carbon dioxide 

17 storage program under subsection (c)(1), 

18 the State regulatory agency designated by 

19 the State may develop rules to allow the 

20 conversion into a storage facility of an en21 hanced recovery operation that is in exist22 ence as of the date on which administra23 tion of the program by the State is ap24 proved. 


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1 (ii) OIL AND GAS RECOVERY.—Noth2 ing in this section applies to or otherwise 

3 affects the use of carbon dioxide as a part 

4 of or in conjunction with any enhanced re5 covery method the sole purpose of which is 

6 enhanced oil or gas recovery. 

7 (c) STATE PRIMARY ENFORCEMENT RESPONSI8 BILITY.— 

9 (1) APPROVAL OF STATE CARBON DIOXIDE

10 STORAGE PROGRAMS.— 

11 (A) APPLICATION.— 

12 (i) IN GENERAL.—After promulgation 

13 of the regulations under subsection 

14 (b)(1)(A)(ii), each State may submit to the 

15 Administrator an application that dem16 onstrates, to the satisfaction of the Admin17 istrator, that the State— 

18 (I) has adopted, after providing 

19 for reasonable notice and an oppor20 tunity for public comment, and will 

21 implement, a carbon dioxide storage 

22 program that meets the requirements 

23 of the regulations; and 

24 (II) will keep such records and 

25 make such reports with respect to the 


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1 activities of the State under the car2 bon dioxide storage program as the 

3 Administrator may require by regula4 tion. 

5 (ii) REVISIONS.—Not later than the 

6 expiration of the 270-day period beginning 

7 on the date on which any regulation pro8 mulgated under subsection (b)(1)(A)(ii) is 

9 revised or amended with respect to a re10 quirement applicable to State carbon diox11 ide storage programs, each State with a 

12 carbon dioxide storage program approved 

13 under subparagraph (B) shall submit, in 

14 such form and in such manner as the Ad15 ministrator may require, a notice to the 

16 Administrator that demonstrates, to the 

17 satisfaction of the Administrator, that the 

18 State carbon dioxide storage program 

19 meets the revised or amended requirement. 

20 (B) APPROVAL OR DISAPPROVAL.—Not 

21 later than 90 days after the date on which a 

22 State submits to the Administrator an applica23 tion under subparagraph (A)(i) or a notice 

24 under subparagraph (A)(ii), and after a reason25 able (as determined by the Administrator) opVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 portunity for discussion, the Administrator shall 

2 by regulation approve, disapprove, or approve in 

3 part and disapprove in part, the carbon dioxide 

4 storage program proposed by the State. 

5 (C) EFFECT OF APPROVAL.—If the Admin6 istrator approves the carbon dioxide storage 

7 program of a State under subparagraph (B), 

8 the State shall have primary enforcement re9 sponsibility for carbon dioxide storage in the 

10 State until such time as the Administrator de11 termines, by regulation, that the State no 

12 longer meets the requirements of subparagraph 

13 (A)(i). 

14 (D) PUBLIC PARTICIPATION.—Before mak15 ing a determination under subparagraph (B) or 

16 (C), the Administrator shall provide an oppor17 tunity for a public hearing with respect to the 

18 determination. 

19 (2) STATES WITHOUT PRIMARY ENFORCEMENT

20 RESPONSIBILITY.— 

21 (A) IN GENERAL.—If a State fails to sub22 mit an application under paragraph (1)(A)(i) by 

23 the date that is 270 days after the date of pro24 mulgation of regulations under subsection 

25 (b)(1)(A)(ii), the Administrator shall by regulaVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 tion prescribe (and may from time to time by 

2 regulation revise) a program applicable to the 

3 State that meets the terms and conditions of 

4 subsection (b)(2). 

5 (B) DISAPPROVAL.—If the Administrator 

6 disapproves all or a portion of the program of 

7 a State under paragraph (1)(B), if the Admin8 istrator determines under paragraph (1)(C) 

9 that a State no longer meets the requirements 

10 of subclause (I) or (II) of paragraph (1)(A)(i), 

11 or if a State fails to submit a notice before the 

12 expiration of the period specified in paragraph 

13 (1)(A)(ii), the Administrator shall by regula14 tion, not later than 90 days after the date of 

15 the disapproval, determination, or expiration 

16 (as the case may be), prescribe (and may from 

17 time to time by regulation revise) a program 

18 applicable to the State that meets the require19 ments of subsection (b)(2). 

20 (C) APPLICABILITY.—A program pre21 scribed by the Administrator under subpara22 graph (B) shall apply in a State only to the ex23 tent that a program adopted by the State that 

24 the Administrator determines meets the reVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 quirements of this section or subsection (b)(2) 

2 is not in effect. 

3 (D) PUBLIC PARTICIPATION.—Before pro4 mulgating any regulation under subparagraph 

5 (B) or (C), the Administrator shall provide an 

6 opportunity for a public hearing with respect to 

7 the regulation. 

8 (d) ENFORCEMENT OF PROGRAM.— 

9 (1) NOTIFICATION.— 

10 (A) IN GENERAL.—In any case in which 

11 the Administrator determines, during a period 

12 during which a State has primary enforcement 

13 responsibility for carbon dioxide storage, that 

14 any person who is subject to a requirement of 

15 the carbon dioxide storage program is violating 

16 the requirement, the Administrator shall notify 

17 the State and the person violating the require18 ment of the violation. 

19 (B) FAILURE TO ENFORCE.—If, after the 

20 date that is 30 days after the Administrator no21 tifies a State of a violation under subparagraph 

22 (A), the State has not commenced appropriate 

23 enforcement action, the Administrator shall— 

24 (i) issue an order under paragraph (2) 

25 requiring the person to— 


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1 (I) correct the matter; and 

2 (II) comply with the requirement; 

3 or 

4 (ii) bring a civil action in accordance 

5 with paragraph (3). 

6 (C) VIOLATIONS IN CERTAIN STATES.—In 

7 any case in which the Administrator deter8 mines, during a period during which a State 

9 does not have primary enforcement responsi10 bility for carbon dioxide storage, that any per11 son subject to any requirement of any applica12 ble carbon dioxide storage program in the State 

13 is violating the requirement, the Administrator 

14 shall— 

15 (i) issue an order under paragraph (2) 

16 requiring the person to comply with re17 quirement; or 

18 (ii) bring a civil action in accordance 

19 with paragraph (3). 

20 (2) ADMINISTRATIVE ORDERS AND APPEALS.— 

21 (A) IN GENERAL.—In any case in which 

22 the Administrator has the authority to bring a 

23 civil action under this subsection with respect to 

24 any regulation or other requirement of this sec25 tion, the Administrator may, in addition to 


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1 bringing the civil action, issue an order under 

2 this paragraph that— 

3 (i) assesses a civil penalty of not more 

4 than $10,000 for each day of violation for 

5 any past or current violation, up to a max6 imum aggregate civil penalty of $125,000, 

7 for each covered entity; 

8 (ii) requires compliance with the regu9 lation or other requirement; or 

10 (iii) accomplishes each of the actions 

11 described in clauses (i) and (ii). 

12 (B) TIMING.—An order under this para13 graph shall be issued by the Administrator only 

14 after an opportunity (provided in accordance 

15 with this paragraph) for a hearing. 

16 (C) NOTICE.—Before issuing any order 

17 under subparagraph (A), the Administrator 

18 shall provide to the person to whom the order 

19 applies— 

20 (i) written notice of the intent of the 

21 Administrator to issue the order; and 

22 (ii) the opportunity to request, within 

23 the 30-day period beginning on the date of 

24 receipt by the person of the notice, a hear25 ing on the order. 


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1 (D) REQUIREMENTS.—A hearing described 

2 in subparagraph (C)(ii)— 

3 (i) shall not be subject to section 554 

4 or 556 of title 5, United States Code; but 

5 (ii) shall provide to each interested 

6 person a reasonable opportunity to be 

7 heard and to present evidence. 

8 (E) NOTICE AND COMMENT.—The Admin9 istrator shall provide public notice of, and a 

10 reasonable opportunity to comment on, any pro11 posed order. 

12 (F) SPECIFIC NOTICE.—Any person who 

13 comments on any proposed order under sub14 paragraph (E) shall be given notice of any 

15 hearing under this paragraph and of any order. 

16 (G) EFFECTIVE DATE.—Any order issued 

17 under this paragraph shall become effective on 

18 the date that is 30 days after the date of 

19 issuance of the order, unless an appeal is taken 

20 pursuant to subparagraph (K). 

21 (H) CONTENTS OF ORDER.—Any order 

22 issued under this paragraph— 

23 (i) shall state with reasonable speci24 ficity the nature of the violation; and 


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1 (ii) may specify a reasonable period to 

2 achieve compliance. 

3 (I) CONSIDERATIONS.—In assessing any 

4 civil penalty under this paragraph, the Adminis5 trator shall take into consideration all appro6 priate factors, including— 

7 (i) the seriousness of the violation; 

8 (ii) the economic benefit (if any) re9 sulting from the violation; 

10 (iii) any history of similar violations; 

11 (iv) any good-faith efforts to comply 

12 with the applicable requirements; 

13 (v) the economic impact of the penalty 

14 on the violator; and 

15 (vi) such other matters as justice may 

16 require. 

17 (J) OTHER ACTIONS.—Any violation with 

18 respect to which the Administrator has com19 menced and is diligently prosecuting a civil ac20 tion under a provision of law other than this 

21 section, or has issued an order under this para22 graph assessing a civil penalty, shall not be sub23 ject to a civil action under paragraph (3). 

24 (K) APPEALS.—Any person against whom 

25 an order is issued may file an appeal of the 


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1 order, not later than 30 days after the date of 

2 issuance of the order, with— 

3 (i) the United States District Court 

4 for the District of Columbia; or 

5 (ii) the United States district court 

6 for the district in which the violation is al7 leged to have occurred. 

8 (L) DISTRIBUTION OF COPIES.—An appel9 lant shall simultaneously send a copy of an ap10 peal filed under subparagraph (K) by certified 

11 mail to the Administrator and to the Attorney 

12 General. 

13 (M) RECORD.—The Administrator shall 

14 promptly file in the appropriate court described 

15 in subparagraph (K) a certified copy of the 

16 record on which an order was based. 

17 (N) JUDICIAL ACTION.—A court having ju18 risdiction over an order issued under this para19 graph shall not— 

20 (i) set aside or remand the order un21 less the court determines that— 

22 (I) there is not substantial evi23 dence on the record, taken as a whole, 

24 to support the finding of a violation; 

25 or 


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1 (II) the assessment by the Ad2 ministrator of a civil penalty, or a re3 quirement for compliance, constitutes 

4 an abuse of discretion; or 

5 (ii) impose additional civil penalties 

6 for the same violation unless the court de7 termines that the assessment by the Ad8 ministrator of a civil penalty constitutes an 

9 abuse of discretion. 

10 (O) FAILURE TO PAY.— 

11 (i) IN GENERAL.—If any person fails 

12 to pay an assessment of a civil penalty 

13 after an order becomes effective under sub14 paragraph (G), or after a court, in a civil 

15 action brought under subparagraph (K), 

16 has entered a final judgment in favor of 

17 the Administrator, the Administrator may 

18 request the Attorney General to bring a 

19 civil action in an appropriate United States 

20 district court to recover the amount as21 sessed, plus costs, attorneys’ fees, and in22 terest at currently prevailing rates, cal23 culated from the date on which the order 

24 is effective or the date of the final judg25 ment, as the case may be. 


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1 (ii) NO REVIEW OF AMOUNT.—In a 

2 civil action brought under clause (i), the 

3 validity, amount, and appropriateness of 

4 the civil penalty shall not be subject to re5 view. 

6 (P) AUTHORITY OF ADMINISTRATOR.—The 

7 Administrator may, in connection with adminis8 trative proceedings under this paragraph— 

9 (i) issue subpoenas compelling the at10 tendance and testimony of witnesses and 

11 subpoenas duces tecum; and 

12 (ii) request the Attorney General to 

13 bring a civil action to enforce any sub14 poena issued under this subparagraph. 

15 (Q) ENFORCEMENT.—The United States 

16 district courts shall have jurisdiction to enforce, 

17 and impose sanctions with respect to, sub18 poenas issued under subparagraph (P). 

19 (3) CIVIL AND CRIMINAL ACTIONS.— 

20 (A) IN GENERAL.—A civil action referred 

21 to in subparagraph (B) or (C) of paragraph (1) 

22 shall be brought in the appropriate United 

23 States district court. 

24 (B) AUTHORITY; JUDGEMENT.—A court 

25 described in subparagraph (A)— 


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1 (i) shall have jurisdiction to require 

2 compliance with any requirement of an ap3 plicable carbon dioxide storage program or 

4 with an order issued under paragraph (2); 

5 and 

6 (ii) may enter such judgment as the 

7 protection of public health may require. 

8 (C) PENALTIES.—Any person who violates 

9 any requirement of an applicable carbon dioxide 

10 storage program or an order requiring compli11 ance under paragraph (2)— 

12 (i) shall be subject to a civil penalty 

13 of not more than $25,000 for each day of 

14 such violation; and 

15 (ii) if the violation is willful, may, in 

16 addition to or in lieu of the civil penalty 

17 under clause (i), be imprisoned for not 

18 more than 3 years, fined in accordance 

19 with title 18, United States Code, or both. 

20 (4) EFFECT ON STATE AUTHORITY.— 

21 (A) IN GENERAL.—Nothing in this sub22 section diminishes or otherwise affects any au23 thority of a State or political subdivision of a 

24 State to adopt or enforce any law (including a 


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1 regulation) (relating to the storage of carbon 

2 dioxide. 

3 (B) OTHER REQUIREMENTS.—No law (in4 cluding a regulation) described in subparagraph 

5 (A) shall relieve any person of any requirement 

6 otherwise applicable under this Act. 

7 (e) FINANCIAL ASSURANCES FOR STORAGE OPERA8 TORS.— 

9 (1) IN GENERAL.—Each storage operator shall 

10 be required by the State regulatory agency (in the 

11 case of a State with primary enforcement authority) 

12 or the Administrator (in the case of a State that 

13 does not have primary enforcement authority) to 

14 have and maintain financial assurances of such type 

15 and in such amounts as are necessary to cover pub16 lic liability claims relating to the storage facility of 

17 the storage operator. 

18 (2) MAINTENANCE OF FINANCIAL ASSUR19 ANCES.—The financial assurances required under 

20 paragraph (1) shall be maintained by the storage op21 erator until such time as the operator obtains a cer22 tificate of completion of injection operations under 

23 subsection (f). 

24 (3) AMOUNT.—The amount of financial assur25 ances required under paragraph (1) shall be the 


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1 maximum amount of liability insurance available at 

2 a reasonable cost and on reasonable terms from pri3 vate sources (including private insurance, private 

4 contractual indemnities, self-insurance, or a com5 bination of those measures), as determined by the 

6 Administrator. 

7 (f) CESSATION OF STORAGE OPERATIONS.—Upon a 

8 showing by a storage operator that a storage facility is 

9 reasonably expected to retain mechanical integrity and re10 main in place, the State regulatory agency (in the case 

11 of a State with primary enforcement authority) or the Ad12 ministrator (in the case of a State that does not have pri13 mary enforcement authority) shall issue a certificate of 

14 completion of injection operations to the storage operator. 

15 (g) LIABILITY OF STORAGE OPERATORS FOR RE16 LEASE OF CARBON DIOXIDE.— 

17 (1) IN GENERAL.—The Administrator shall 

18 agree to indemnify and hold harmless a storage op19 erator (and if different from the storage operator, 

20 the owner of the storage facility) that has main21 tained financial assurances under subsection (e) 

22 from liability arising from the leakage of carbon di23 oxide at any storage facility operated by the storage 

24 operator, to the extent that the liability is in excess 


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1 of the level of financial protection required of the 

2 storage operator. 

3 (2) COMPLETION OF OPERATIONS.—Upon the 

4 issuance of certificate of completion of injection op5 erations by a State regulatory agency (in the case of 

6 a State with primary enforcement authority) or the 

7 Administrator (in the case of a State that does not 

8 have primary enforcement authority)— 

9 (A) the Administrator shall be vested with 

10 complete and absolute title and ownership of 

11 the storage facility and any stored carbon diox12 ide at the facility; 

13 (B) the storage operator and all generators 

14 of any injected carbon dioxide shall be released 

15 from all further liability associated with the 

16 project; and 

17 (C)(i) any performance bonds posted by 

18 the storage operator shall be released; and 

19 (ii) continued monitoring of the storage fa20 cility, including remediation of any well leakage, 

21 shall become the responsibility of the Adminis22 trator. 

23 (h) FUNDING.— 

24 (1) IN GENERAL.—For each fiscal year, the Ad25 ministrator shall collect an annual assessment from 


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1 each storage operator for each storage facility that 

2 has not obtained a certificate of completion of injec3 tion operations. 

4 (2) ASSESSMENT AMOUNT.—The amount of the 

5 assessment for a storage facility for a fiscal year 

6 shall be equal to the product obtained by multi7 plying— 

8 (A) the per-ton assessment for the fiscal 

9 year calculated under paragraph (4); and 

10 (B) the total number of tons of carbon di11 oxide injected for storage by the storage oper12 ator during the preceding fiscal year at all stor13 age facilities operated by the storage operator 

14 during the fiscal year. 

15 (3) AGGREGATE AMOUNT.—The aggregate 

16 amount of assessments collected from all storage op17 erators under paragraph (1) for any fiscal year shall 

18 be equal to the sum of, with respect to the fiscal 

19 year— 

20 (A) any indemnification payments required 

21 to be made pursuant to subsection (g)(1); 

22 (B) any costs associated with storage fa23 cilities to which the Administrator has taken 

24 title pursuant to subsection (g)(2), including 

25 costs associated with any— 


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1 (i) inspection, monitoring, record2 keeping, and reporting requirements of 

3 those facilities; 

4 (ii) remediation of carbon dioxide 

5 leakage; or 

6 (iii) plugging and abandoning of re7 maining wells; and 

8 (C) any costs associated with public liabil9 ity of storage facilities to which the Adminis10 trator has taken title pursuant to subsection 

11 (g)(2). 

12 (4) CALCULATION OF ASSESSMENT.—The as13 sessment under this subsection per ton of carbon di14 oxide for a fiscal year shall be equal to the quotient 

15 obtained by dividing— 

16 (A) the aggregate amount of assessments 

17 calculated under paragraph (3) for the fiscal 

18 year; by 

19 (B) the aggregate number of tons of car20 bon dioxide injected for storage during the pre21 ceding fiscal year by all storage operators. 

22 (5) INFORMATION.—The Administrator shall 

23 require the submission of such information by each 

24 storage operator on an annual basis as is necessary 


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1 to make the calculations required under this sub2 section. 

3 (i) RELATIONSHIP TO OTHER LAWS.— 

4 (1) IN GENERAL.—The Administrator shall pro5 mulgate regulations for permitting commercial-scale 

6 underground injection of carbon dioxide for purposes 

7 of geological sequestration under this section. 

8 (2) SAFE DRINKING WATER ACT.—Section 1421 

9 of the Safe Drinking Water Act (42 U.S.C. 300h) 

10 shall not be used as a basis for permitting commer11 cial-scale underground injection or storage of carbon 

12 dioxide. 

13 Subtitle D—Reduced Carbon Emis14 sions Through Clean Coal Tech15 nologies 

16 SEC. 631. STATEMENT OF POLICY. 

17 It is the policy of the United States to reduce carbon 

18 emissions from technology improvements to coal-fired 

19 power plants that will reduce the quantity of coal burned 

20 and carbon dioxide emitted per unit of power produced. 

21 SEC. 632. CLEAN COAL RESEARCH AND DEVELOPMENT. 

22 (a) IN GENERAL.—The Secretary shall expand and 

23 accelerate efforts to conduct research and develop tech24 nologies that reduce carbon dioxide emissions from coalVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00121 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 fired facilities with an emphasis on commercial viability 

2 and reliability. 

3 (b) SHORT-, MEDIUM- AND LONG-TERM TECH4 NOLOGY AREAS.—The Secretary shall emphasize tech5 nologies that reduce carbon dioxide emissions in the short6 , medium-, and long-term time frames, including— 

7 (1) innovations for existing power plants that 

8 reduce carbon dioxide emissions by energy efficiency 

9 increases or by capturing carbon emissions, includ10 ing technologies that— 

11 (A) reduce the quantity of fuel combusted 

12 per unit of electricity output; 

13 (B) reduce parasitic power loss from car14 bon control technology; 

15 (C) improve compression of the separated 

16 and captured carbon dioxide; 

17 (D) reuse or reduce water consumption 

18 and withdrawal; and 

19 (E) capture carbon dioxide post-combus20 tion from flue gas, such as through the use of 

21 ammonia-based, aqueous amine or ionic liquid 

22 solutions or other methods; 

23 (2) new combustion systems, including— 

24 (A) oxyfuel combustion that burns fuel in 

25 the presence of oxygen and recirculated flue gas 


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1 instead of air producing a concentrated stream 

2 of carbon dioxide that can be readily captured 

3 for storage or use; 

4 (B) chemical looping combustion that 

5 burns fuel in the presence of a solid oxygen car6 rier instead of air producing concentrated 

7 stream of carbon dioxide that can be readily 

8 captured for storage or use; 

9 (C) high-temperature and pressure steam 

10 systems, such as ultra supercritical steam gen11 eration, that result in high net plant efficiency 

12 and reduced fuel consumption, thus producing 

13 less carbon dioxide per unit of energy; 

14 (D) other innovative carbon dioxide control 

15 technologies appropriate for new combustion 

16 systems; and 

17 (E) high temperature and high pressure 

18 materials that will result in much higher plant 

19 efficiencies and carbon dioxide emission reduc20 tions; 

21 (3) innovations for IGCC systems that build on 

22 the ability of the IGCC to separate pollutants and 

23 carbon emissions from gas streams, including— 

24 (A) advanced membrane technology for 

25 carbon dioxide separation; 


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1 (B) improved air separation systems; 

2 (C) improved compression for the sepa3 rated and captured carbon dioxide; and 

4 (D) other innovative carbon dioxide control 

5 technologies appropriate for IGCC systems; 

6 (4) advanced combustion turbines, including— 

7 (A) ultra low emission hydrogen turbines; 

8 and 

9 (B) oxycoal combustion turbines; and 

10 (5) sequestration of captured carbon in geologi11 cal formations, including— 

12 (A) plume tracking; 

13 (B) carbon dioxide leak detection and miti14 gation; 

15 (C) carbon dioxide fate and transport mod16 els; and 

17 (D) site evaluation instrumentation. 

18 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated to carry out this section, 

20 to remain available until expended— 

21 (1) for innovations at power plants in operation 

22 as of the date of enactment of this Act 

23 $450,000,000 for the period of fiscal years 2009 

24 through 2020; 


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1 (2) for new combustion systems $450,000,000 

2 for the period of fiscal years 2009 through 2025; 

3 (3) for IGCC systems $850,000,000 for the pe4 riod of fiscal years 2009 through 2025; 

5 (4) for advanced combustion turbines 

6 $350,000,000 for the period of fiscal years 2009 

7 through 2025; and 

8 (5) for carbon storage $400,000,000 for the pe9 riod of fiscal years 2009 through 2020. 

10 SEC. 633. CLEAN COAL DEMONSTRATION. 

11 (a) IN GENERAL.—The Secretary shall expand and 

12 accelerate the demonstration of technologies that reduce 

13 carbon dioxide emissions from coal-fired facilities by dem14 onstrating, at a minimum— 

15 (1) through facilities in operation as of the date 

16 of enactment of this Act— 

17 (A) post-combustion carbon dioxide cap18 ture at pilot scale at not less than 2 facilities, 

19 the award of contracts for which shall be com20 pleted by 2010; 

21 (B) oxycoal combustion at commercial 

22 scale retrofitted to not less than 1 facility, the 

23 award of contracts for which shall be completed 

24 by 2012; 


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1 (C) post-combustion carbon dioxide cap2 ture at commercial scale retrofitted to not less 

3 than 1 facility, the award of contracts for which 

4 shall be completed by 2012; 

5 (D) heat rate and efficiency improvements 

6 at commercial scale at not less than 2 facilities, 

7 the award of contracts for which shall be com8 pleted by 2012; 

9 (E) water consumption reduction at com10 mercial scale at not less than 2 facilities, the 

11 award of contracts for which shall be completed 

12 by 2012; 

13 (F) post-combustion carbon dioxide cap14 ture at pilot scale with technologies other than 

15 technologies demonstrated under subparagraphs 

16 (A) and (C) at not less than 1 facility, the 

17 award of contracts for which shall be completed 

18 by 2012; 

19 (G) heat rate and efficiency improvements 

20 at commercial scale at not less than 3 facilities, 

21 the award of contracts for which shall be com22 pleted by 2014; 

23 (H) water consumption reduction at com24 mercial scale at not less than 3 facilities, the 


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1 award of contracts for which shall be completed 

2 by 2014; and 

3 (I) post-combustion carbon dioxide capture 

4 at pilot scale with technologies other than tech5 nologies demonstrated under subparagraphs 

6 (A), (C), and (F) at not less than 1 facility, the 

7 award of contracts for which shall be completed 

8 by 2016; 

9 (2) through new coal combustion facilities that 

10 include carbon capture— 

11 (A) oxycoal combustion at pilot scale at 

12 not less than 1 facility, the award of contracts 

13 for which shall be completed by 2010; 

14 (B) post-combustion carbon dioxide cap15 ture at pilot scale at not less than 1 facility, the 

16 award of contracts for which shall be completed 

17 by 2012; 

18 (C) oxycoal combustion at commercial 

19 scale at not less than 1 facility, the award of 

20 contracts for which shall be completed by 2012; 

21 (D) supercritical pulverized coal combus22 tion with advanced emission controls and par23 tial carbon dioxide capture at commercial scale 

24 at not less than 1 facility, the award of con25 tracts for which shall be completed by 2012; 


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1 (E) oxycoal supercritical circulating fluid2 ized bed combustion at commercial scale at not 

3 less than 1 facility, the award of contracts for 

4 which shall be completed by 2012; 

5 (F) post-combustion carbon dioxide cap6 ture at commercial scale at not less than 1 fa7 cility, the award of contracts for which shall be 

8 completed by 2012; 

9 (G) post-combustion carbon dioxide cap10 ture at pilot scale with technologies other than 

11 technologies demonstrated under subparagraphs 

12 (B) or (F) at not less than 1 facility, the award 

13 of contracts for which shall be completed by 

14 2014; 

15 (H) ultra supercritical (1290°F) pulverized 

16 coal combustion with near-zero emission con17 trols and 90 percent carbon dioxide capture at 

18 commercial scale at not less than 1 facility, the 

19 award of contracts for which shall be completed 

20 by 2014; 

21 (I) oxycoal combustion with an advanced 

22 oxygen separation system at commercial scale 

23 at not less than 1 facility, the award of con24 tracts for which shall be completed by 2016; 


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1 (J) second generation post-combustion car2 bon dioxide capture at commercial scale at not 

3 less than 1 facility, the award of contracts for 

4 which shall be completed by 2014; 

5 (K) chemical looping combustion at com6 mercial scale at not less than 1 facility, the 

7 award of contracts for which shall be completed 

8 by 2018; and 

9 (L) ultra advanced supercritical (1400°F) 

10 combustion with near-zero emission controls 

11 and 90 percent integrated carbon dioxide cap12 ture at commercial scale at not less than 1 fa13 cility, the award of contracts for which shall be 

14 completed by 2018; 

15 (3) through IGCC with carbon capture— 

16 (A) partial carbon dioxide capture without 

17 a water gas shift system at commercial scale at 

18 not less than 1 facility, the award of contracts 

19 for which shall be completed by 2010; 

20 (B) using G class turbine at not less than 

21 1 facility with at least 400 megawatts in gener22 ating capacity, the award of contracts for which 

23 shall be completed by 2012; 

24 (C) using H class turbines at not less than 

25 1 facility with at least 400 megawatts in generVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 ating capacity, the award of contracts for which 

2 shall be completed by 2014; and 

3 (D) using H class turbines at not less than 

4 1 facility with at least 400 megawatts in gener5 ating capacity, the award of contracts for which 

6 shall be completed by 2016. 

7 (4) through advanced turbines using— 

8 (A) monitoring systems for advanced IGCC 

9 gas turbine at commercial scale at not less than 

10 1 facility, the award of contracts for which shall 

11 be completed by 2010; 

12 (B) advanced oxygen separation of at least 

13 2,000 tons per day in size integrated with a 

14 combustion turbine at not less than 1 facility, 

15 the award of contracts for which shall be com16 pleted by 2012; 

17 (C) an oxyfuel turbine of at least 50 

18 megawatts in generating capacity, at not less 

19 than 1 facility, the award of contracts for which 

20 shall be completed by 2015; 

21 (D) advanced oxygen separation of at least 

22 2,000 tons per day in size integrated with a gas 

23 turbine at not less than 1 facility, the award of 

24 contracts for which shall be completed by 2015; 

25 and 


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1 (E) an oxyfuel turbine of at least 400 

2 megawatts in generating capacity, at not less 

3 than 1 facility, the award of contracts for which 

4 shall be completed by 2020; and 

5 (5) for storage of carbon dioxide captured 

6 through— 

7 (A) a field test of sequestration of at least 

8 1,000,000 tons of carbon dioxide per year in a 

9 saline formation, the award of contracts for 

10 which shall be completed by 2010; 

11 (B) field tests of sequestration of at least 

12 2,000,000 tons of carbon dioxide per year in a 

13 saline formation, the award of contracts for 

14 which shall be completed by 2012; and 

15 (C) a field test of sequestration of at least 

16 1,000,000 tons of carbon dioxide per year in a 

17 saline formation, the award of contracts for 

18 which shall be completed by 2014. 

19 (b) SEQUESTRATION OF CAPTURED CARBON DIOX20 IDE.—In any demonstration referred to in subsection (a) 

21 that demonstrates carbon dioxide capture, the carbon di22 oxide capture shall be used for enhanced oil recovery, se23 questered in geologically appropriate formations, or per24 manently sequestered or reused, with funds made available 


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1 to carry out each such demonstration for the respective 

2 purpose of the demonstration. 

3 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section, 

5 to remain available until expended— 

6 (1) for demonstrations through facilities in op7 eration as of the date of enactment of this Act 

8 $850,000,000 for the period of fiscal years 2009 

9 through 2025; 

10 (2) for new combustion systems $1,950,000,000 

11 for the period of fiscal years 2009 through 2025; 

12 (3) for IGCC systems $2,950,000,000 for the 

13 period of fiscal years 2009 through 2025; 

14 (4) for advanced combustion turbines 

15 $400,000,000 for the period of fiscal years 2009 

16 through 2025; and 

17 (5) for carbon storage $1,350,000,000 for the 

18 period of fiscal years 2009 through 2020. 

19 SEC. 634. IDENTIFICATION OF CLEAN COAL RESEARCH, DE20 VELOPMENT, AND DEMONSTRATION 

21 PROJECTS. 

22 (a) IN GENERAL.—The Secretary shall take such 

23 steps as are necessary to carry out this subtitle. 

24 (b) PUBLIC COMMENT.—Not later than 90 days after 

25 the date of enactment of this Act and every 2 years thereVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00132 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 after, the Secretary shall institute a public comment pe2 riod of at least 45 days to assist the determination of the 

3 specific research, development, and demonstration projects 

4 required under this subtitle. 

5 (c) APPLICATIONS.—Not later than 120 days after 

6 the end of each public comment period required under sub7 section (b), the Secretary shall— 

8 (1) publicly identify the specific types of 

9 projects that the Secretary intends to pursue to 

10 carry out this subtitle; 

11 (2) establish selection criteria for the specific 

12 types of projects identified under paragraph (1); and 

13 (3) establish an application process that allows 

14 persons that are interested in participating in 

15 projects identified under paragraph (1) to provide 

16 such information as the Secretary determines to be 

17 necessary. 

18 Subtitle E—Clean Coal Technology 

19 Incentives 

20 SEC. 641. SHORT TITLE. 

21 This subtitle may be cited as the ‘‘Energy Security 

22 and Climate Enhancement Through Clean Coal Tech23 nology Act of 2008’’. 


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1 SEC. 642. MODIFICATION OF SPECIAL RULES FOR ATMOS2 PHERIC POLLUTION CONTROL FACILITIES. 

3 (a) IN GENERAL.—Subsection (d) of section 169 of 

4 the Internal Revenue Code of 1986 is amended by adding 

5 at the end the following new paragraph: 

6 ‘‘(6) SPECIAL RULES FOR CERTAIN ATMOS7 PHERIC POLLUTION CONTROL FACILITIES.—Not8 withstanding paragraph (1), the term ‘pollution con9 trol facility’ includes any mechanical or electronic 

10 system which— 

11 ‘‘(A) which is a new identifiable treatment 

12 facility (as defined in paragraph (4)), 

13 ‘‘(B) which is— 

14 ‘‘(i) installed after December 31, 

15 2007, and 

16 ‘‘(ii) used in connection with an elec17 tric generation plant or other property 

18 which is primarily coal fired, and 

19 ‘‘(C) which is certified by the owner or op20 erator of the plant or other property, in such 

21 form and manner as prescribed by the Sec22 retary, to reduce carbon dioxide emissions per 

23 net megawatt hour of electricity generation 

24 by— 

25 ‘‘(i) optimizing combustion, 


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1 ‘‘(ii) optimizing sootblowing and heat 

2 transfer, 

3 ‘‘(iii) upgrading steam temperature 

4 control capabilities, 

5 ‘‘(iv) reducing exit gas temperatures 

6 (air heater modifications), 

7 ‘‘(v) predrying low rank coals using 

8 power plant waste heat, 

9 ‘‘(vi) modifying steam turbines or 

10 change the steam path/blading, 

11 ‘‘(vii) replacing single speed motors 

12 with variable speed drives for fans and 

13 pumps, 

14 ‘‘(viii) improving operational controls, 

15 including neural networks, or 

16 ‘‘(ix) any other means approved by 

17 the Secretary, in consultation with the Sec18 retary of Health and Human Services.’’. 

19 (b) DEDUCTION NOT ADJUSTED FOR PURPOSES OF

20 DETERMINING ALTERNATIVE MINIMUM TAX.—Para21 graph (5) of section 56(a) of the Internal Revenue Code 

22 of 1986 is amended by adding at the end the following 

23 new sentence: ‘‘The preceding sentences of this paragraph 

24 shall not apply to any pollution control facility described 

25 in section 169(d)(6).’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2007. 

4 SEC. 643. EXTENSION AND MODIFICATION OF PRODUCTION 

5 CREDIT FOR CLOSED-LOOP BIOMASS. 

6 (a) IN GENERAL.—Clause (ii) of section 45(d)(2)(A) 

7 of the Internal Revenue Code of 1986 is amended to read 

8 as follows: 

9 ‘‘(iii) owned by the taxpayer which 

10 after before January 1, 2014 is originally 

11 placed in service and modified, or is origi12 nally placed in service as a facility, to use 

13 closed-loop biomass to co-fire (or, in the 

14 case of an integrated gasification combined 

15 cycle facility, to co-process) with coal, with 

16 other biomass, or with both.’’. 

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. 

20 SEC. 644. QUALIFYING NEW CLEAN COAL POWER PLANT 

21 CREDIT. 

22 (a) IN GENERAL.—Subpart E of part IV of sub23 chapter A of chapter 1 of the Internal Revenue Code of 

24 1986, as amended by this Act, is amended by inserting 

25 after section 48C the following new section: 


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1 ‘‘SEC. 48D. QUALIFYING NEW CLEAN COAL POWER PLANT 

2 CREDIT. 

3 ‘‘(a) ALLOWANCE OF CREDIT.— 

4 ‘‘(1) IN GENERAL.—For purposes of section 46, 

5 the qualifying new clean coal power plant credit for 

6 any taxable year is an amount equal to the applica7 ble percentage of the qualified investment for such 

8 taxable year. 

9 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

10 of paragraph (1), the applicable percentage shall be 

11 determined as follows: 

‘‘In the case of a plant which either has— The applicable percentage is: a design net heat rate 

below— or 

a carbon dioxide emission 

rate of— 

7,580 Btu/kWh (45% efficiency)....... 1,577 lbs/MWh or less ........ 30 percent 

7,760 Btu/kWh (44% efficiency)....... 1,613 lbs/MWh or less ........ 28 percent 

7,940 Btu/kWh (43% efficiency)....... 1,650 lbs/MWh or less ........ 26 percent 

8,120 Btu/kWh (42% efficiency)....... 1,690 lbs/MWh or less ........ 20 percent 

8,322 Btu/kWh (41% efficiency)....... 1,731 lbs/MWh or less ........ 10 percent 

8,530 Btu/kWh (40% efficiency)....... 1,774 lbs/MWh or less ........ 10 percent 

12 ‘‘(b) QUALIFIED INVESTMENT.— 

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

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

15 the basis of eligible property placed in service by the 

16 taxpayer during such taxable year which is part of 

17 a qualifying new clean coal power plant— 


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1 ‘‘(A)(i) the construction, reconstruction, or 

2 erection of which is completed by the taxpayer, 

3 or 

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

5 the original use of such property commences 

6 with the taxpayer, and 

7 ‘‘(B) with respect to which depreciation (or 

8 amortization in lieu of depreciation) is allow9 able. 

10 ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED

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

12 apply for purposes of this section. 

13 ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI14 TURES RULES MADE APPLICABLE.—Rules similar to 

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

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

17 Revenue Reconciliation Act of 1990) shall apply for 

18 purposes of this section. 

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

20 ‘‘(1) ELIGIBLE PROPERTY.—The term ‘eligible 

21 property’ means any property which is a part of a 

22 qualifying new clean coal power plant. 

23 ‘‘(2) QUALIFYING NEW CLEAN COAL POWER

24 PLANT.—The term ‘qualifying new clean coal power 

25 plant’ means a facility which— 


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1 ‘‘(A) which meets the requirements of sec2 tion 48A(e), 

3 ‘‘(B) which either— 

4 ‘‘(i) has a design net heat rate of 

5 below 8,530 Btu/kWh, or 

6 ‘‘(ii) has a carbon dioxide emission 

7 rate of 1,774 lbs/MWh or less, and 

8 ‘‘(C) which— 

9 ‘‘(i) is designed to capture carbon di10 oxide emissions, or 

11 ‘‘(ii)(I) is designed to include a built12 in space for future carbon dioxide capture 

13 hardware (and improved foundations and 

14 ironwork necessary to accommodate the 

15 additional hardware), 

16 ‘‘(II) includes an engineering feasi17 bility study identifying a system, including 

18 associated cost and performance param19 eters, to retrofit carbon capture equipment, 

20 and 

21 ‘‘(III) includes a site or sited identi22 fied where carbon dioxide may be stored or 

23 used for commercial purposes. 

24 ‘‘(d) QUALIFYING NEW CLEAN COAL POWER PLANT

25 PROGRAM.— 


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1 ‘‘(1) ESTABLISHMENT.—Not later than 180 

2 days after the date of enactment of this section, the 

3 Secretary, in consultation with the Secretary of En4 ergy, shall establish a qualifying new clean coal 

5 power plant program, under which the Secretary 

6 shall certify projects eligible for the credit under 

7 subsection (a). 

8 ‘‘(2) APPLICATION.—An application under for 

9 certification under this section shall contain such in10 formation as the Secretary may require in order to 

11 make a determination to accept or reject an applica12 tion for certification as meeting the requirements of 

13 this section. Any information contained in the appli14 cation shall be protected as provided in section 

15 552(b)(4) of title 5, United States Code. 

16 ‘‘(3) AGGREGATE CREDITS.—The aggregate or 

17 projects certified by the Secretary under this sub18 section shall not exceed an aggregate capacity for 

19 electricity generation of more than 6,000 megawatts. 

20 ‘‘(e) RECAPTURE OF CREDIT.—The Secretary shall 

21 provide for recapturing the benefit of any credit allowable 

22 under subsection (a) with respect to any project which 

23 fails to attain or maintain any of the requirements of this 

24 section.’’. 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 46 of the Internal Revenue Code of 

2 1986, as amended by this Act, is amended by strik3 ing ‘‘and’’ at the end of paragraph (4), by striking 

4 the period at the end of paragraph (5) and inserting 

5 ‘‘, and’’, and by adding at the end the following new 

6 paragraph: 

7 ‘‘(6) the qualifying new clean coal power plant 

8 credit.’’. 

9 (2) Section 49(a)(1)(C) of such Code, as 

10 amended by this Act, is amended by striking ‘‘and’’ 

11 at the end of clause (iv), by striking the period at 

12 the end of clause (v) and inserting ‘‘, and’’, and by 

13 adding at the end the following new clause: 

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

15 is part of a qualifying new clean coal 

16 power plant under section 48D.’’. 

17 (3) The table of sections for subpart E of part 

18 IV of subchapter A of chapter 1 of such Code, as 

19 amended by this Act, is amended by inserting after 

20 the item relating to section 48C the following new 

21 item: 

‘‘Sec. 48D. Qualifying new clean coal power plant credit.’’. 

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

23 this section shall apply to periods after the date of the 

24 enactment of this Act, under rules similar to the rules of 

25 section 48(m) of the Internal Revenue Code of 1986 (as 


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•S 3523 IS

1 in effect before the date of the enactment of the Revenue 

2 Reconciliation Act of 1990). 

3 SEC. 645. INVESTMENT CREDIT FOR EQUIPMENT USED TO 

4 CAPTURE, TRANSPORT, AND STORE CARBON 

5 DIOXIDE. 

6 (a) IN GENERAL.—Subpart E of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986, as amended by this Act, is amended by inserting 

9 after section 48D the following new section: 

10 ‘‘SEC. 48E. EQUIPMENT USED TO CAPTURE, TRANSPORT, 

11 AND STORE CARBON DIOXIDE EMISSIONS. 

12 ‘‘(a) GENERAL RULE.—For purposes of section 46, 

13 the qualifying carbon dioxide equipment credit for any tax14 able year is an amount equal to 30 percent of the qualified 

15 investment for such taxable year. 

16 ‘‘(b) QUALIFIED INVESTMENT.—For purposes of 

17 subsection (a), the qualified investment for any taxable 

18 year is the basis of eligible property placed in service by 

19 the taxpayer during such taxable year. 

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

21 ‘‘(1) ELIGIBLE PROPERTY.—The term ‘eligible 

22 property’ means equipment installed on a qualified 

23 coal-fired electric power generating unit to capture, 

24 transport, and store carbon dioxide produced at such 

25 generating unit, including equipment to separate 


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1 and pressurize carbon dioxide for transport (includ2 ing hardware to operate such equipment) and equip3 ment to transport, inject, and monitor such carbon 

4 dioxide, as further specified and identified, by rule, 

5 by the Secretary. 

6 ‘‘(2) QUALIFIED COAL-FIRED ELECTRIC GEN7 ERATION UNIT.—The term ‘qualified coal-fired elec8 tric generation unit’ means a unit which, after in9 stallation of eligible property, is designed to capture 

10 and store in a geologic formation not less than 

11 500,000 metric tons of carbon dioxide per year. 

12 ‘‘(d) AGGREGATE CREDITS.—The credits allowed 

13 under subsection (a) shall apply only to the first 9,000 

14 megawatts of capacity of qualified coal-fired electric power 

15 generating units certified by the Secretary under sub16 section (e). 

17 ‘‘(e) CERTIFICATION.— 

18 ‘‘(1) CERTIFICATION PROCESS.—The Secretary 

19 shall establish a certification process to determine 

20 the extent to which eligible property has been in21 stalled on a qualified coal-fired electric power gener22 ating unit, and to make such other determinations 

23 as the Secretary deems appropriate. The Secretary 

24 shall prepare an application for certification. 


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1 ‘‘(2) REQUIREMENTS FOR APPLICATIONS FOR

2 CERTIFICATION.—An application for certification 

3 shall contain such information as the Secretary may 

4 require in order to establish credit entitlement. Any 

5 information contained in an application shall be pro6 tected as provided in section 552(b)(4) of title 5, 

7 United States Code.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 46 of the Internal Revenue Code of 

10 1986, as amended by this Act, is amended by strik11 ing ‘‘and’’ at the end of paragraph (5), by striking 

12 the period at the end of paragraph (6) and inserting 

13 ‘‘, and’’, and by adding at the end the following new 

14 paragraph: 

15 ‘‘(7) the qualifying carbon dioxide equipment 

16 credit.’’. 

17 (2) Section 49(a)(1)(C) of such Code, as 

18 amended by this Act, is amended by striking ‘‘and’’ 

19 at the end of clause (v), by striking the period at the 

20 end of clause (vi) and inserting ‘‘, and’’, and by add21 ing at the end the following new clause: 

22 ‘‘(vii) the basis of any eligible prop23 erty under section 48E.’’. 

24 (3) The table of sections for subpart E of part 

25 IV of subchapter A of chapter 1 of such Code, as 


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1 amended by this Act is amended by inserting after 

2 the item relating to section 48D the following new 

3 section: 

‘‘Sec. 48E. Equipment used to capture, transport, and store carbon dioxide 

emissions.’’. 

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

5 this section shall apply to periods after the date of the 

6 enactment of this Act, under rules similar to the rules of 

7 section 48(m) of the Internal Revenue Code of 1986 (as 

8 in effect before the date of the enactment of the Revenue 

9 Reconciliation Act of 1990). 

10 SEC. 646. TAX CREDIT FOR CARBON DIOXIDE SEQUESTRA11 TION IN THE GENERATION OF ELECTRICITY. 

12 (a) IN GENERAL.—Subpart D of part IV of sub13 chapter A of chapter 1 of the Internal Revenue Code of 

14 1986 (relating to business credits) is amended by adding 

15 at the end the following new section: 

16 ‘‘SEC. 45Q. CREDIT SEQUESTERING CARBON DIOXIDE IN 

17 THE GENERATION OF ELECTRICITY. 

18 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

19 the carbon dioxide sequestration credit for any taxable 

20 year is an amount equal to the sum of— 

21 ‘‘(1) $30 per metric ton of qualified carbon di22 oxide which is— 

23 ‘‘(A) captured by the taxpayer at a quali24 fied facility during the credit period, and 


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1 ‘‘(B) disposed of by the taxpayer in secure 

2 geological storage, and 

3 ‘‘(2) $10 per metric ton of qualified carbon di4 oxide which is— 

5 ‘‘(A) captured by the taxpayer at a quali6 fied facility during the credit period, and 

7 ‘‘(B) used by the taxpayer as a tertiary 

8 injectant in a qualified enhanced oil or natural 

9 gas recovery project. 

10 ‘‘(b) QUALIFIED FACILITY.—For purposes of this 

11 section— 

12 ‘‘(1) IN GENERAL.—The term ‘qualified facility’ 

13 means any industrial facility— 

14 ‘‘(A) which is owned by the taxpayer; 

15 ‘‘(B) at which carbon capture equipment is 

16 placed in service; 

17 ‘‘(C) which captures not less than 500,000 

18 metric tons of carbon dioxide during the taxable 

19 year; and 

20 ‘‘(D) which is certified by the Secretary 

21 under paragraph (2). 

22 ‘‘(2) CERTIFICATION.— 

23 ‘‘(A) IN GENERAL.—The Secretary, in con24 sultation with the Secretary of Energy, shall es25 tablish a program under which facilities which 


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1 use coal for the generation of electricity are cer2 tified for purposes of this section. 

3 ‘‘(B) LIMITATION.—The total aggregate 

4 generating capacity of all facilities certified by 

5 the Secretary under this paragraph shall not 

6 exceed 9,000 megawatts. 

7 ‘‘(c) QUALIFIED CARBON DIOXIDE.—For purposes of 

8 this section— 

9 ‘‘(1) IN GENERAL.—The term ‘qualified carbon 

10 dioxide’ means carbon dioxide captured from an in11 dustrial source which— 

12 ‘‘(A) would otherwise be released into the 

13 atmosphere as industrial emissions of green14 house gas, and 

15 ‘‘(B) is measured at the source of capture 

16 and verified at the point of disposal or injec17 tion. 

18 ‘‘(2) RECYCLED CARBON DIOXIDE.—The term 

19 ‘qualified carbon dioxide’ includes the initial deposit 

20 of captured carbon dioxide used as a tertiary 

21 injectant. Such term does not include carbon dioxide 

22 that is recaptured, recycled, and reinjected as part 

23 of the enhanced oil and natural gas recovery process. 

24 ‘‘(d) SPECIAL RULES AND DEFINITIONS.—For pur25 poses of this section— 


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1 ‘‘(1) CREDIT PERIOD.—The term ‘credit period’ 

2 means, with respect to any qualified facility, the 10- 

3 year period beginning on the date on which qualified 

4 carbon dioxide for which a credit was allowed under 

5 subsection (a) was first captured. 

6 ‘‘(2) ONLY CARBON DIOXIDE CAPTURED WITH7 IN THE UNITED STATES TAKEN INTO ACCOUNT.— 

8 The credit under this section shall apply only with 

9 respect to qualified carbon dioxide the capture of 

10 which is within— 

11 ‘‘(A) the United States (within the mean12 ing of section 638(1)); or 

13 ‘‘(B) a possession of the United States 

14 (within the meaning of section 638(2)). 

15 ‘‘(3) SECURE GEOLOGICAL STORAGE.—The Sec16 retary, in consultation with the Administrator of the 

17 Environmental Protection Agency, shall establish 

18 regulations for determining adequate security meas19 ures for the geological storage of carbon dioxide 

20 under subsection (a)(1)(B) such that the carbon di21 oxide does not escape into the atmosphere. Such 

22 term shall include storage at deep saline formations 

23 and unminable coal seems under such conditions as 

24 the Secretary may determine under such regulations. 


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1 ‘‘(4) TERTIARY INJECTANT.—The term ‘ter2 tiary injectant’ has the same meaning as when used 

3 within section 193(b)(1). 

4 ‘‘(5) QUALIFIED ENHANCED OIL OR NATURAL

5 GAS RECOVERY PROJECT.—The term ‘qualified en6 hanced oil or natural gas recovery project’ has the 

7 meaning given the term ‘qualified enhanced oil re8 covery project’ by section 43(c)(2), by substituting 

9 ‘crude oil or natural gas’ for ‘crude oil’ in subpara10 graph (A)(i) thereof. 

11 ‘‘(6) CREDIT ATTRIBUTABLE TO TAXPAYER.— 

12 Any credit under this section shall be attributable to 

13 the person that captures and physically or contrac14 tually ensures the disposal of or the use as a tertiary 

15 injectant of the qualified carbon dioxide, except to 

16 the extent provided in regulations prescribed by the 

17 Secretary. 

18 ‘‘(7) RECAPTURE.—The Secretary shall, by reg19 ulations, provide for recapturing the benefit of any 

20 credit allowable under subsection (a) with respect to 

21 any qualified carbon dioxide which ceases to be cap22 tured, disposed of, or used as a tertiary injectant in 

23 a manner consistent with the requirements of this 

24 section. 


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1 ‘‘(8) INFLATION ADJUSTMENT.—In the case of 

2 any taxable year beginning in a calendar year after 

3 2008, there shall be substituted for each dollar 

4 amount contained in subsection (a) an amount equal 

5 to the product of— 

6 ‘‘(A) such dollar amount; multiplied by 

7 ‘‘(B) the inflation adjustment factor for 

8 such calendar year determined under section 

9 43(b)(3)(B) for such calendar year, determined 

10 by substituting ‘2007’ for ‘1990’.’’. 

11 (b) CONFORMING AMENDMENT.—Section 38(b) of 

12 the Internal Revenue Code of 1986 (relating to general 

13 business credit), as amended by this Act, is amended by 

14 striking ‘‘plus’’ at the end of paragraph (33), by striking 

15 the period at the end of paragraph (34) and inserting ‘‘, 

16 plus’’, and by adding at the end of following new para17 graph: 

18 ‘‘(35) the carbon dioxide sequestration credit 

19 determined under section 45Q(a).’’. 

20 (c) CLERICAL AMENDMENT.—The table of sections 

21 for subpart B of part IV of subchapter A of chapter 1 

22 of the Internal Revenue Code of 1986 (relating to other 

23 credits) is amended by adding at the end the following 

24 new section: 

‘‘Sec. 45Q. Credit for sequestering carbon dioxide in the generation of electricity.’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply carbon dioxide captured after the 

3 date of the enactment of this Act. 

4 SEC. 647. CLEAN ENERGY COAL BONDS. 

5 (a) IN GENERAL.—Subpart I of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 (relating to qualified tax credit bonds) is amended 

8 by adding at the end the following new section: 

9 ‘‘SEC. 54C. CLEAN ENERGY COAL BONDS. 

10 ‘‘(a) CLEAN ENERGY COAL BOND.—For purposes of 

11 this subchapter— 

12 ‘‘(1) IN GENERAL.—The term ‘clean energy 

13 coal bond’ means any bond issued as part of an 

14 issue if— 

15 ‘‘(A) the bond is issued by a qualified 

16 issuer pursuant to an allocation by the Sec17 retary to such issuer of a portion of the na18 tional clean energy coal bond limitation under 

19 subsection (b)(2); 

20 ‘‘(B) 100 percent of the available project 

21 proceeds from the sale of such issue are to be 

22 used for capital expenditures incurred by quali23 fied borrowers for 1 or more qualified projects; 


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1 ‘‘(C) the qualified issuer designates such 

2 bond for purposes of this section and the bond 

3 is in registered form; and 

4 ‘‘(D) in lieu of the requirements of section 

5 54A(d)(2), the issue meets the requirements of 

6 subsection (c). 

7 ‘‘(2) QUALIFIED PROJECT; SPECIAL USE

8 RULES.— 

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

10 project’ means a qualified clean coal project (as 

11 defined in subsection (f)(1)) placed in service by 

12 a qualified borrower. 

13 ‘‘(B) REFINANCING RULES.—For purposes 

14 of paragraph (1)(B), a qualified project may be 

15 refinanced with proceeds of a clean energy coal 

16 bond only if the indebtedness being refinanced 

17 (including any obligation directly or indirectly 

18 refinanced by such indebtedness) was originally 

19 incurred by a qualified borrower after the date 

20 of the enactment of this section. 

21 ‘‘(C) REIMBURSEMENT.—For purposes of 

22 paragraph (1)(B), a clean energy coal bond 

23 may be issued to reimburse a qualified borrower 

24 for amounts paid after the date of the enactVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00152 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 ment of this section with respect to a qualified 

2 project, but only if— 

3 ‘‘(i) prior to the payment of the origi4 nal expenditure, the qualified borrower de5 clared its intent to reimburse such expendi6 ture with the proceeds of a clean energy 

7 coal bond; 

8 ‘‘(ii) not later than 60 days after pay9 ment of the original expenditure, the quali10 fied issuer adopts an official intent to re11 imburse the original expenditure with such 

12 proceeds; and 

13 ‘‘(iii) reimbursement is not made later 

14 than 18 months after the date the original 

15 expenditure is paid or the date the project 

16 is placed in service or abandoned, but in 

17 no event more than 3 years after the origi18 nal expenditure is paid. 

19 ‘‘(D) TREATMENT OF CHANGES IN USE.— 

20 For purposes of paragraph (1)(B), the proceeds 

21 of an issue shall not be treated as used for a 

22 qualified project to the extent that a qualified 

23 borrower takes any action within its control 

24 which causes such proceeds not to be used for 

25 a qualified project. The Secretary shall preVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00153 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 scribe regulations specifying remedial actions 

2 that may be taken (including conditions to tak3 ing such remedial actions) to prevent an action 

4 described in the preceding sentence from caus5 ing a bond to fail to be a clean energy coal 

6 bond. 

7 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES8 IGNATED.— 

9 ‘‘(1) NATIONAL LIMITATION.—There is a na10 tional clean energy coal bond limitation of 

11 $5,000,000,000. 

12 ‘‘(2) ALLOCATION BY SECRETARY.—The Sec13 retary shall allocate the amount described in para14 graph (1) among qualified projects in such manner 

15 as the Secretary determines appropriate. 

16 ‘‘(c) SPECIAL RULES RELATING TO EXPENDI17 TURES.— 

18 ‘‘(1) IN GENERAL.—An issue shall be treated as 

19 meeting the requirements of this subsection if, as of 

20 the date of issuance. the qualified issuer reasonably 

21 expects— 

22 ‘‘(A) 100 percent or more of the available 

23 project proceeds from the sale of the issue are 

24 to be spent for 1 or more qualified projects 


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1 within the 5-year period beginning on the date 

2 of issuance of the clean energy bond; 

3 ‘‘(B) a binding commitment with a third 

4 party to spend at least 10 percent of such avail5 able project proceeds from the sale of the issue 

6 will be incurred within the 6-month period be7 ginning on the date of issuance of the clean en8 ergy bond or, in the case of a clean energy bond 

9 the available project proceeds of which are to be 

10 loaned to 2 or more qualified borrowers, such 

11 binding commitment will be incurred within the 

12 6-month period beginning on the date of the 

13 loan of such proceeds to a qualified borrower; 

14 and 

15 ‘‘(C) such projects will be completed with 

16 due diligence and the available project proceeds 

17 from the sale of the issue will be spent with due 

18 diligence. 

19 ‘‘(2) EXTENSION OF PERIOD.—Upon submis20 sion of a request prior to the expiration of the period 

21 described in paragraph (1)(A), the Secretary may 

22 extend such period if the qualified issuer establishes 

23 that the failure to satisfy the 5-year requirement is 

24 due to reasonable cause and the related projects will 

25 continue to proceed with due diligence. 


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1 ‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT

2 OF BOND PROCEEDS WITHIN 5 YEARS.—To the ex3 tent that less than 100 percent of the available 

4 project proceeds of such issue are expended by the 

5 close of the 5-year period beginning on the date of 

6 issuance (or if an extension has been obtained under 

7 paragraph (2), by the close of the extended period), 

8 the qualified issuer shall redeem all of the non9 qualified bonds within 90 days after the end of such 

10 period. For purposes of this paragraph, the amount 

11 of the nonqualified bonds required to be redeemed 

12 shall be determined in the same manner as under 

13 section 142. 

14 ‘‘(d) COOPERATIVE ELECTRIC COMPANY; QUALIFIED

15 ENERGY TAX CREDIT BOND LENDER; GOVERNMENTAL

16 BODY; QUALIFIED BORROWER.—For purposes of this sec17 tion— 

18 ‘‘(1) COOPERATIVE ELECTRIC COMPANY.—The 

19 term ‘cooperative electric company’ means a mutual 

20 or cooperative electric company described in section 

21 501(c)(12) or section 1381(a)(2)(C), or a not-for22 profit electric utility which has received a loan or 

23 loan guarantee under the Rural Electrification Act. 

24 ‘‘(2) CLEAN ENERGY BOND LENDER.—The 

25 term ‘clean energy bond lender’ means a lender 


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1 which is a cooperative which is owned by, or has out2 standing loans to, 100 or more cooperative electric 

3 companies and is in existence on February 1, 2002, 

4 and shall include any affiliated entity which is con5 trolled by such lender. 

6 ‘‘(3) PUBLIC POWER ENTITY.—The term ‘public 

7 power entity’ means a State utility with a service ob8 ligation, as such terms are defined in section 217 of 

9 the Federal Power Act (as in effect on the date of 

10 enactment of this paragraph). 

11 ‘‘(4) QUALIFIED ISSUER.—The term ‘qualified 

12 issuer’ means— 

13 ‘‘(A) a clean energy bond lender; 

14 ‘‘(B) a cooperative electric company; or 

15 ‘‘(C) a public power entity. 

16 ‘‘(5) QUALIFIED BORROWER.—The term ‘quali17 fied borrower’ means— 

18 ‘‘(A) a mutual or cooperative electric com19 pany described in section 501(c)(12) or 

20 1381(a)(2)(C); or 

21 ‘‘(B) a public power entity. 

22 ‘‘(e) SPECIAL RULES RELATING TO POOL BONDS.— 

23 No portion of a pooled financing bond may be allocable 

24 to any loan unless the borrower has entered into a written 


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1 loan commitment for such portion prior to the issue date 

2 of such issue. 

3 ‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 

4 For purposes of this section— 

5 ‘‘(1) QUALIFIED CLEAN COAL PROJECT.—For 

6 purposes of this section, the term ‘qualified clean 

7 coal project’ means— 

8 ‘‘(A) an atmospheric pollution control facil9 ity (within the meaning of section 

10 169(d)(5)(C)); 

11 ‘‘(B) a closed-loop biomass facility (within 

12 the meaning of section 45(d)(2)); 

13 ‘‘(C) a qualified new clean coal power plant 

14 (within the meaning of section 48D(d)(1)); 

15 ‘‘(D) a qualifying carbon dioxide equip16 ment described in section 48E(c)(1); or 

17 ‘‘(E) a qualified facility (within the mean18 ing of section 450(c)). 

19 ‘‘(2) POOLED FINANCING BOND.—The term 

20 ‘pooled financing bond’ shall have the meaning given 

21 such term by section 149(f)(4)(A). 

22 ‘‘(g) TERMINATION.—This section shall not apply 

23 with respect to any bond issued after December 31, 

24 2018.’’. 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) Paragraph (1) of section 54A(d) of the In2 ternal Revenue Code of 1986 is amended to read as 

3 follows: 

4 ‘‘(1) QUALIFIED TAX CREDIT BOND.—The term 

5 ‘qualified tax credit bond’ means— 

6 ‘‘(A) a qualified forestry conservation 

7 bond, or 

8 ‘‘(B) a clean energy coal bond, 

9 which is part of an issue that meets requirements of 

10 paragraphs (2), (3), (4), (5), and (6).’’. 

11 (2) Subparagraph (C) of section 54A(d)(2) of 

12 such Code is amended to read as follows: 

13 ‘‘(C) QUALIFIED PURPOSE.—For purposes 

14 of this paragraph, the term ‘qualified purpose’ 

15 means— 

16 ‘‘(i) in the case of a qualified forestry 

17 conservation bond, a purpose specified in 

18 section 54B(e); and 

19 ‘‘(ii) in the case of a clean energy coal 

20 bond, a purpose specified in section 

21 54C(f)(1).’’. 

22 (c) CLERICAL AMENDMENT.—The table of sections 

23 for subpart I of part IV of subchapter A of chapter 1 of 

24 the Internal Revenue Code of 1986 is amended by adding 

25 at the end the following new item: 

‘‘Sec. 54C. Clean energy coal bonds.’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to bonds issued after December 

3 31, 2008. 

4 TITLE VII—NUCLEAR ENERGY 

5 Subtitle A—Nuclear Waste Access 

6 to Yucca Mountain 

7 SEC. 701. DEFINITIONS. 

8 In this subtitle: 

9 (1) DISPOSAL.—The term ‘‘disposal’’ has the 

10 meaning given the term in section 2 of the Nuclear 

11 Waste Policy Act of 1982 (42 U.S.C. 10101). 

12 (2) HIGH-LEVEL RADIOACTIVE WASTE.—The 

13 term ‘‘high-level radioactive waste’’ has the meaning 

14 given the term in section 2 of the Nuclear Waste 

15 Policy Act of 1982 (42 U.S.C. 10101). 

16 (3) PROJECT.—The term ‘‘Project’’ means the 

17 Yucca Mountain Project. 

18 (4) REPOSITORY.—The term ‘‘repository’’ has 

19 the meaning given the term in section 2 of the Nu20 clear Waste Policy Act of 1982 (42 U.S.C. 10101). 

21 (5) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of Energy. 

23 (6) SPENT NUCLEAR FUEL.—The term ‘‘spent 

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1 tion 2 of the Nuclear Waste Policy Act of 1982 (42 

2 U.S.C. 10101). 

3 (7) YUCCA MOUNTAIN SITE.—The term ‘‘Yucca 

4 Mountain site’’ has the meaning given the term in 

5 section 2 of the Nuclear Waste Policy Act of 1982 

6 (42 U.S.C. 10101). 

7 SEC. 702. WITHDRAWAL OF LAND. 

8 (a) LAND WITHDRAWAL; JURISDICTION; RESERVA9 TION; ACQUISITION.— 

10 (1) LAND WITHDRAWAL.—Subject to valid ex11 isting rights, and except as otherwise provided in 

12 this subtitle, the land described in subsection (b) is 

13 withdrawn permanently from any form of entry, ap14 propriation, or disposal under the public land laws, 

15 including, without limitation— 

16 (A) the mineral leasing laws; 

17 (B) the geothermal leasing laws; 

18 (C) materials sales laws; and 

19 (D) the mining laws. 

20 (2) JURISDICTION.—As of the date of enact21 ment of this Act, any land described in subsection 

22 (b) that is under the jurisdiction of the Secretary of 

23 the Air Force or the Secretary of the Interior shall 

24 be— 

25 (A) transferred to the Secretary; and 


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1 (B) under the jurisdiction of the Secretary. 

2 (3) RESERVATION.—The land described in sub3 section (b) is reserved for use by the Secretary for 

4 activities associated with the disposal of high-level 

5 radioactive waste and spent nuclear fuel under the 

6 Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101 

7 et seq.), including— 

8 (A) development; 

9 (B) preconstruction testing and perform10 ance confirmation; 

11 (C) licensing; 

12 (D) construction; 

13 (E) management and operation; 

14 (F) monitoring; 

15 (G) closure and post-closure; and 

16 (H) other such activities associated with 

17 the disposal of high-level radioactive waste and 

18 spent nuclear fuel under the Nuclear Waste 

19 Policy Act of 1982 (42 U.S.C. 10101 et seq.). 

20 (b) LAND DESCRIPTION.— 

21 (1) BOUNDARIES.—The land referred to in sub22 section (a) is the approximately 147,000 acres of 

23 land located in Nye County, Nevada, as generally 

24 depicted on the map relating to the Project, numVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00162 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 bered YMP–03–024.2, entitled ‘‘Proposed Land 

2 Withdrawal’’, and dated July 21, 2005. 

3 (2) LEGAL DESCRIPTION AND MAP.— 

4 (A) IN GENERAL.—As soon as practicable 

5 after the date of enactment of this Act, the Sec6 retary of the Interior shall— 

7 (i) publish in the Federal Register a 

8 notice containing a legal description of the 

9 land described in this subsection; and 

10 (ii) provide to Congress, the Governor 

11 of the State of Nevada, and the Archivist 

12 of the United States— 

13 (I) a copy of the map referred to 

14 in paragraph (1); and 

15 (II) the legal description of the 

16 land. 

17 (B) TREATMENT.— 

18 (i) IN GENERAL.—The map and legal 

19 description referred to in subparagraph 

20 (A) shall have the same force and effect as 

21 if the map and legal description were in22 cluded in this subtitle. 

23 (ii) TECHNICAL CORRECTIONS.—The 

24 Secretary of the Interior may correct any 

25 clerical or typographical error in the map 


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1 and legal description referred to in sub2 paragraph (A). 

3 (c) REVOCATIONS.— 

4 (1) PUBLIC LAND ORDER.—Public Land Order 

5 6802, dated September 25, 1990 (as extended by 

6 Public Land Order 7534), and any condition or 

7 memorandum of understanding accompanying the 

8 land order (as so extended), is revoked. 

9 (2) RIGHT OF WAY.—The rights-of-way reserva10 tions relating to the Project, numbered N–48602 

11 and N–47748 and dated January 5, 2001, are re12 voked. 

13 (d) MANAGEMENT OF WITHDRAWN LAND.— 

14 (1) IN GENERAL.—The Secretary, in consulta15 tion with the Secretary of the Air Force and the 

16 Secretary of the Interior, as appropriate, shall man17 age the land withdrawn under subsection (a)(1) in 

18 accordance with— 

19 (A) the Federal Land Policy and Manage20 ment Act of 1976 (43 U.S.C. 1701 et seq.); 

21 (B) this subtitle; and 

22 (C) other applicable laws. 

23 (2) MANAGEMENT PLAN.— 

24 (A) DEVELOPMENT.—Not later than 3 

25 years after the date of enactment of this Act, 


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1 the Secretary, in consultation with the Sec2 retary of the Air Force and the Secretary of the 

3 Interior, as appropriate, shall develop and sub4 mit to Congress and the State of Nevada a 

5 management plan for the use of the land with6 drawn under subsection (a)(1). 

7 (B) PRIORITY.—Subject to subparagraphs 

8 (C), (D), and (E), use of the land withdrawn 

9 under subsection (a)(1) for an activity not re10 lating to the Project shall be subject to such 

11 conditions and restrictions as the Secretary con12 siders to be appropriate to facilitate activities 

13 relating to the Project. 

14 (C) AIR FORCE USE.—The management 

15 plan may provide for the continued use by the 

16 Department of the Air Force of the portion of 

17 the land withdrawn under subsection (a)(1) lo18 cated within the Nellis Air Force base test and 

19 training range under such terms and conditions 

20 as may be agreed to by the Secretary and the 

21 Secretary of the Air Force. 

22 (D) NEVADA TEST SITE USE.—The man23 agement plan may provide for the continued use 

24 by the National Nuclear Security Administra25 tion of the portion of the land withdrawn under 


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1 subsection (a)(1) located within the Nevada test 

2 site of the Administration under such condi3 tions as the Secretary considers to be necessary 

4 to minimize any effect on activities relating to 

5 the Project or other activities of the Adminis6 tration. 

7 (E) OTHER USES.— 

8 (i) IN GENERAL.—The management 

9 plan shall include provisions— 

10 (I) relating to the maintenance of 

11 wildlife habitat on the land withdrawn 

12 under subsection (a)(1); and 

13 (II) under which the Secretary 

14 may permit any use not relating to 

15 the Project, as the Secretary considers 

16 to be appropriate, in accordance with 

17 the requirements under clause (ii). 

18 (ii) REQUIREMENTS.— 

19 (I) GRAZING.—The Secretary 

20 may permit any grazing use to con21 tinue on the land withdrawn under 

22 subsection (a)(1) if the grazing use 

23 was established before the date of en24 actment of this Act, subject to such 

25 regulations, policies, and practices as 


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1 the Secretary, in consultation with the 

2 Secretary of the Interior, determines 

3 to be appropriate, and in accordance 

4 with applicable grazing laws and poli5 cies, including— 

6 (aa) the Act of June 28, 

7 1934 (commonly known as the 

8 ‘‘Taylor Grazing Act’’) (43 

9 U.S.C. 315 et seq.); 

10 (bb) title IV of the Federal 

11 Land Policy Management Act of 

12 1976 (43 U.S.C. 1751 et seq.); 

13 and 

14 (cc) the Public Rangelands 

15 Improvement Act of 1978 (43 

16 U.S.C. 1901 et seq.). 

17 (II) HUNTING AND TRAPPING.— 

18 The Secretary may permit any hunt19 ing or trapping use to continue on the 

20 land withdrawn under subsection 

21 (a)(1) if the hunting or trapping use 

22 was established before the date of en23 actment of this Act, at such time and 

24 in such zones as the Secretary, in con25 sultation with the Secretary of the InVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00167 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 terior and the State of Nevada, may 

2 establish, taking into consideration 

3 public safety, national security, ad4 ministration, and public use and en5 joyment of the land. 

6 (F) PUBLIC ACCESS.— 

7 (i) IN GENERAL.—The management 

8 plan may provide for limited public access 

9 to the portion of the land withdrawn under 

10 subsection (a)(1) that was under the con11 trol of the Bureau of Land Management 

12 on the day before the date of enactment of 

13 this Act. 

14 (ii) SPECIFIC USES.—The manage15 ment plan may permit public uses of the 

16 land relating to the Nye County Early 

17 Warning Drilling Program, utility cor18 ridors, and other uses the Secretary, in 

19 consultation with the Secretary of the Inte20 rior, considers to be consistent with the 

21 purposes of the withdrawal under sub22 section (a)(1). 

23 (3) MINING.— 

24 (A) IN GENERAL.—Surface and subsurface 

25 mining and oil and gas production, including 


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1 slant drilling from outside the boundaries of the 

2 land withdrawn under subsection (a)(1), shall 

3 be prohibited at any time on or under the land. 

4 (B) EVALUATION OF CLAIMS.—The Sec5 retary of the Interior shall evaluate and adju6 dicate the validity of any mining claim relating 

7 to any portion of the land withdrawn under 

8 subsection (a)(1) that was under the control of 

9 the Bureau of Land Management on the day 

10 before the date of enactment of this Act. 

11 (C) COMPENSATION.—The Secretary shall 

12 provide just compensation for the acquisition of 

13 any valid property right relating to mining pur14 suant to the withdrawal under subsection 

15 (a)(1). 

16 (4) CLOSURES.—If the Secretary, in consulta17 tion with the Secretary of the Air Force and the 

18 Secretary of the Interior, as appropriate, determines 

19 that the health and safety of the public or the na20 tional defense and security require the closure of a 

21 road, trail, or other portion of the land withdrawn 

22 under subsection (a)(1) (including the airspace 

23 above the land), the Secretary— 

24 (A) may close the road, trail, or portion of 

25 land (including airspace); and 


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1 (B) shall provide to the public a notice of 

2 the closure. 

3 (5) IMPLEMENTATION.—The Secretary and the 

4 Secretary of the Air Force or the Secretary of the 

5 Interior, as appropriate, shall implement the man6 agement plan developed under paragraph (2) under 

7 such terms and conditions as may be agreed to by 

8 the Secretaries. 

9 SEC. 703. RECEIPT AND STORAGE FACILITIES. 

10 Section 114(b) of the Nuclear Waste Policy Act of 

11 1982 (42 U.S.C. 10134(b)) is amended— 

12 (1) by striking ‘‘If the President’’ and inserting 

13 the following: 

14 ‘‘(1) IN GENERAL.—If the President’’; and 

15 (2) by adding at the end the following: 

16 ‘‘(2) APPLICATION FOR RECEIPT AND STORAGE

17 FACILITIES.— 

18 ‘‘(A) IN GENERAL.—In conjunction with 

19 the submission of an application for a construc20 tion authorization under this subsection, the 

21 Secretary shall apply to the Commission for a 

22 license in accordance with part 72 of title 10, 

23 Code of Federal Regulations (or a successor 

24 regulation), to construct and operate facilities 

25 to receive and store spent nuclear fuel and 


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1 high-level radioactive waste at the Yucca Moun2 tain site. 

3 ‘‘(B) DEADLINE FOR FINAL DECISION BY

4 COMMISSION.—The Commission shall issue a 

5 final decision approving or disapproving the 

6 issuance of the license not later than 18 months 

7 after the date of submission of the application 

8 to the Commission.’’. 

9 SEC. 704. REPEAL OF CAPACITY LIMITATION. 

10 Section 114(d) of the Nuclear Waste Policy Act of 

11 1982 (42 U.S.C. 10134(d)) is amended by striking the 

12 second and third sentences. 

13 SEC. 705. INFRASTRUCTURE ACTIVITIES. 

14 Section 114 of the Nuclear Waste Policy Act of 1982 

15 (42 U.S.C. 10134) is amended by adding at the end the 

16 following: 

17 ‘‘(g) INFRASTRUCTURE ACTIVITIES.— 

18 ‘‘(1) CONSTRUCTION OF CONNECTED FACILI19 TIES.—At any time after the completion by the Sec20 retary of a final environmental impact statement 

21 that evaluates the activities to be performed under 

22 this subsection, the Secretary may commence the 

23 following activities in connection with any activity or 

24 facility licensed or to be licensed by the Commission 

25 at the Yucca Mountain site: 


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1 ‘‘(A) Preparation of the site for construc2 tion of the facility (including such activities as 

3 clearing, grading, and construction of tem4 porary access roads and borrow areas). 

5 ‘‘(B) Installation of temporary construc6 tion support facilities (including such items as 

7 warehouse and shop facilities, utilities, concrete 

8 mixing plants, docking and unloading facilities, 

9 and construction support buildings). 

10 ‘‘(C) Excavation for facility structures. 

11 ‘‘(D) Construction of service facilities (in12 cluding such facilities as roadways, paving, rail13 road spurs, fencing, exterior utility and lighting 

14 systems, transmission lines, and sanitary sewer15 age treatment facilities). 

16 ‘‘(E) Construction of structures, systems, 

17 and components that do not prevent or mitigate 

18 the consequences of possible accidents that 

19 could cause undue risk to the health and safety 

20 of the public. 

21 ‘‘(F) Installation of structural foundations 

22 (including any necessary subsurface prepara23 tion) for structures, systems, and components 

24 that prevent or mitigate the consequences of 


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1 possible accidents that could cause undue risk 

2 to the health and safety of the public. 

3 ‘‘(2) AUTHORIZATION TO RECEIVE AND

4 STORE.— 

5 ‘‘(A) DEFINITIONS.—In this paragraph: 

6 ‘‘(i) DEFENSE WASTE.—The term ‘de7 fense waste’ means high-level radioactive 

8 waste, and spent nuclear fuel, that results 

9 from an atomic energy defense activity. 

10 ‘‘(ii) LEGACY SPENT NUCLEAR

11 FUEL.—The term ‘legacy spent nuclear 

12 fuel’ means spent nuclear fuel— 

13 ‘‘(I) that is subject to a contract 

14 entered into pursuant to section 302; 

15 and 

16 ‘‘(II) for which the Secretary de17 termines that there is not at the time 

18 of the determination, and will not be 

19 within a reasonable time after the de20 termination, sufficient domestic capac21 ity available to recycle the spent nu22 clear fuel. 

23 ‘‘(B) AUTHORIZATION FOR DEFENSE

24 WASTE.—At any time after the issuance of a li25 cense for receipt and storage facilities under 


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1 subsection (b)(2), the Secretary may transport 

2 defense waste to receipt and storage facilities at 

3 the Yucca Mountain site. 

4 ‘‘(C) AUTHORIZATION FOR LEGACY SPENT

5 NUCLEAR FUEL.—At any time after the 

6 issuance of a construction authorization under 

7 subsection (d) and the issuance of a license for 

8 receipt and storage facilities under subsection 

9 (b)(2), the Secretary may receive and store leg10 acy spent nuclear fuel and high-level radioactive 

11 waste at the Yucca Mountain site.’’. 

12 SEC. 706. RAIL LINE. 

13 (a) CONSTRUCTION OF RAIL LINE.—The Secretary 

14 shall acquire rights-of-way within the corridor designated 

15 in subsection (b) in accordance with this section, and shall 

16 construct and operate, or cause to be constructed and op17 erated, a railroad and such facilities as are required to 

18 transport spent nuclear fuel and high-level radioactive 

19 waste from existing rail systems to the site of surface fa20 cilities within the geologic repository operations area for 

21 the receipt, handling, packaging, and storage of spent nu22 clear fuel and high-level radioactive waste prior to em23 placement. 

24 (b) ACQUISITION AND WITHDRAWAL OF LAND.— 

25 (1) ROUTE DESIGNATION AND ACQUISITION.— 


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1 (A) RIGHTS-OF-WAY AND FACILITIES.— 

2 The Secretary shall acquire such rights-of-way 

3 and develop such facilities within the corridor 

4 referred to as ‘‘X’’ on the map dated ølll¿ 

5 and on file with the Secretary as are necessary 

6 to carry out subsection (a). 

7 (B) RECOMMENDATIONS.—The Secretary 

8 shall consider specific alignment proposals for 

9 the route for the corridor made by the State of 

10 Nevada and the units of local government with11 in whose jurisdiction the route is proposed to 

12 pass. 

13 (C) NOTICE AND DESCRIPTION.—Not later 

14 than 180 days after the date of enactment of 

15 this section, the Secretary shall— 

16 (i) publish in the Federal Register a 

17 notice containing a legal description of the 

18 corridor; and 

19 (ii) file copies of the map referred to 

20 in paragraph (1) and the legal description 

21 of the corridor with— 

22 (I) Congress; 

23 (II) the Secretary of the Interior; 

24 (III) the Governor of the State of 

25 Nevada; 


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1 (IV) the Board of County Com2 missioners of Lincoln County, Ne3 vada; 

4 (V) the Board of County Com5 missioners of Nye County, Nevada; 

6 and 

7 (VI) the Archivist of the United 

8 States. 

9 (D) ADMINISTRATION.— 

10 (i) EFFECT.—The map and legal de11 scription referred to in subparagraph (C) 

12 shall have the same force and effect as if 

13 the map and legal description were in14 cluded in this subtitle. 

15 (ii) CORRECTIONS.—The Secretary 

16 may correct clerical and typographical er17 rors in the map and legal description and 

18 make minor adjustments in the boundaries 

19 of the corridor. 

20 (2) WITHDRAWAL AND RESERVATION.— 

21 (A) PUBLIC LAND.—Subject to valid exist22 ing rights, the public land depicted on the map 

23 referred to in paragraph (1)(C) is withdrawn 

24 from all forms of entry, appropriation, and dis25 posal under the public land laws, including the 


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1 mineral leasing laws, the geothermal laws, the 

2 material sale laws, and the mining laws. 

3 (B) ADMINISTRATIVE JURISDICTION.—Ad4 ministrative jurisdiction over the land is trans5 ferred from the Secretary of the Interior to the 

6 Secretary. 

7 (C) RESERVATION.—The land is reserved 

8 for the use of the Secretary for the construction 

9 and operation of transportation facilities and 

10 associated activities under title I of the Nuclear 

11 Waste Policy Act of 1982 (42 U.S.C. 10121 et 

12 seq.) 

13 (D) MEMORANDUM OF UNDER14 STANDING.—The Secretary may also enter into 

15 a memorandum of understanding with the head 

16 of any other agency having administrative juris17 diction over other Federal land used for pur18 poses of the corridor referred to in paragraph 

19 (1)(A). 

20 (c) ENVIRONMENTAL IMPACT.— 

21 (1) IN GENERAL.—The Secretary shall comply 

22 with all applicable requirements under the National 

23 Environmental Policy Act of 1969 (42 U.S.C. 4321 

24 et seq.) with respect to activities carried out under 

25 this section. 


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1 (2) CONSIDERATION OF POTENTIAL IMPACTS.— 

2 To the extent a Federal agency is required to con3 sider the potential environmental impact of an activ4 ity carried out under this section, the Federal agen5 cy shall adopt, to the maximum extent practicable, 

6 an environmental impact statement prepared under 

7 this section. 

8 (3) EFFECT OF ADOPTION OF STATEMENT.— 

9 The adoption by a Federal agency of an environ10 mental impact statement under paragraph (2) shall 

11 be considered to satisfy the responsibilities of the 

12 Federal agency under the National Environmental 

13 Policy Act of 1969 (42 U.S.C. 4321 et seq.), and no 

14 further consideration under that subtitle shall be re15 quired by the Federal agency. 

16 SEC. 707. NUCLEAR WASTE FUND. 

17 (a) BUDGET ACT ALLOCATIONS.—Effective for fiscal 

18 year 2008 and each fiscal year thereafter, funds appro19 priated from the Nuclear Waste Fund established under 

20 section 302 of the Nuclear Waste Policy Act of 1982 (42 

21 U.S.C. 10222) shall not be subject to— 

22 (1) the allocations for discretionary spending 

23 under section 302(a) of the Congressional Budget 

24 Act of 1974 (2 U.S.C. 633(a)); or 


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1 (2) the suballocations of appropriations commit2 tees under section 302(b) of that Act. 

3 (b) FUND USES.—Section 302(d)(4) of the Nuclear 

4 Waste Policy Act of 1982 (42 U.S.C. 10222(d)(4)) is 

5 amended by striking ‘‘with’’ and all that follows through 

6 ‘‘storage site’’ and inserting ‘‘with surface facilities within 

7 the geologic repository operations area (including surface 

8 facilities for the receipt, handling, packaging, and storage 

9 of spent nuclear fuel and high-level radioactive waste prior 

10 to emplacement, or transportation to the repository of 

11 spent nuclear fuel or high-level radioactive waste to sur12 face facilities for the receipt, handling, packaging, and 

13 storage of spent nuclear fuel and high-level radioactive 

14 waste prior to emplacement and the transportation, treat15 ing, or packaging of spent nuclear fuel or high-level radio16 active waste to be disposed of in the repository, to be 

17 stored in a monitored retrievable storage site),’’. 

18 SEC. 708. WASTE CONFIDENCE. 

19 For purposes of a determination by the Nuclear Reg20 ulatory Commission on whether to grant or amend any 

21 license to operate any civilian nuclear power reactor or 

22 high-level radioactive waste or spent fuel storage or treat23 ment facility under the Atomic Energy Act of 1954 (42 

24 U.S.C. 2011 et seq.), the provisions of this subtitle (in25 cluding the amendments made by this subtitle) and the 


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1 obligation of the Secretary to develop a repository in ac2 cordance with the Nuclear Waste Policy Act of 1982 (42 

3 U.S.C. 10101 et seq.), shall provide sufficient and inde4 pendent grounds for any further findings by the Nuclear 

5 Regulatory Commission of reasonable assurances that 

6 spent nuclear fuel and high-level radioactive waste would 

7 be disposed of safely and in a timely manner. 

8 Subtitle B—Tax Provisions 

9 SEC. 711. INVESTMENT TAX CREDIT FOR INVESTMENTS IN 

10 NUCLEAR POWER FACILITIES. 

11 (a) NEW CREDIT FOR NUCLEAR POWER FACILI12 TIES.—Section 46 of the Internal Revenue Code of 1986, 

13 as amended by this Act, is amended— 

14 (1) by striking ‘‘and’’ at the end of paragraph 

15 (6), 

16 (2) by striking the period at the end of para17 graph (7) and inserting ‘‘, and’’, and 

18 (3) by inserting after paragraph (7) the fol19 lowing new paragraph: 

20 ‘‘(8) the nuclear power facility construction 

21 credit.’’. 

22 (b) NUCLEAR POWER FACILITY CONSTRUCTION

23 CREDIT.—Subpart E of part IV of subchapter A of chap24 ter 1 of the Internal Revenue Code of 1986, as amended 


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1 by this Act, is amended by inserting after section 48E the 

2 following new section: 

3 ‘‘SEC. 48F. NUCLEAR POWER FACILITY CONSTRUCTION 

4 CREDIT. 

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

6 nuclear power facility construction credit for any taxable 

7 year is 10 percent of the qualified nuclear power facility 

8 expenditures with respect to a qualified nuclear power fa9 cility. 

10 ‘‘(b) WHEN EXPENDITURES TAKEN INTO AC11 COUNT.— 

12 ‘‘(1) IN GENERAL.—Qualified nuclear power fa13 cility expenditures shall be taken into account for 

14 the taxable year in which the qualified nuclear power 

15 facility is placed in service. 

16 ‘‘(2) COORDINATION WITH SUBSECTION (C).— 

17 The amount which would (but for this paragraph) be 

18 taken into account under paragraph (1) with respect 

19 to any qualified nuclear power facility shall be re20 duced (but not below zero) by any amount of quali21 fied nuclear power facility expenditures taken into 

22 account under subsection (c) by the taxpayer or a 

23 predecessor of the taxpayer (or, in the case of a sale 

24 and leaseback described in section 50(a)(2)(C), by 

25 the lessee), to the extent any amount so taken into 


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1 account under subsection (c) has not been required 

2 to be recaptured under section 50(a). 

3 ‘‘(c) PROGRESS EXPENDITURES.— 

4 ‘‘(1) IN GENERAL.—A taxpayer may elect to 

5 take into account qualified nuclear power facility ex6 penditures— 

7 ‘‘(A) SELF-CONSTRUCTED PROPERTY.—In 

8 the case of a qualified nuclear power facility 

9 which is a self-constructed facility, no earlier 

10 than the taxable year for which such expendi11 tures are properly chargeable to capital account 

12 with respect to such facility, and 

13 ‘‘(B) ACQUIRED FACILITY.—In the case of 

14 a qualified nuclear facility which is not self-con15 structed property, no earlier than the taxable 

16 year in which such expenditures are paid. 

17 ‘‘(2) SPECIAL RULES FOR APPLYING PARA18 GRAPH (1).—For purposes of paragraph (1)— 

19 ‘‘(A) COMPONENT PARTS, ETC.—Notwith20 standing that a qualified nuclear power facility 

21 is a self-constructed facility, property described 

22 in paragraph (3)(B) shall be taken into account 

23 in accordance with paragraph (1)(B), and such 

24 amounts shall not be included in determining 


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1 qualified nuclear power facility expenditures 

2 under paragraph (1)(A). 

3 ‘‘(B) CERTAIN BORROWING DIS4 REGARDED.—Any amount borrowed directly or 

5 indirectly by the taxpayer on a nonrecourse 

6 basis from the person constructing the facility 

7 for the taxpayer shall not be treated as an 

8 amount expended for such facility. 

9 ‘‘(C) LIMITATION FOR FACILITIES OR COM10 PONENTS WHICH ARE NOT SELF-CON11 STRUCTED.— 

12 ‘‘(i) IN GENERAL.—In the case of a 

13 facility or a component of a facility which 

14 is not self-constructed, the amount taken 

15 into account under paragraph (1)(B) for 

16 any taxable year shall not exceed the ex17 cess of— 

18 ‘‘(I) the product of the overall 

19 cost to the taxpayer of the facility or 

20 component of a facility, multiplied by 

21 the percentage of completion of the 

22 facility or component of a facility, less 

23 ‘‘(II) the amount taken into ac24 count under paragraph (1)(B) for all 


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1 prior taxable years as to such facility 

2 or component of a facility. 

3 ‘‘(ii) CARRYOVER OF CERTAIN

4 AMOUNTS.—In the case of a facility or 

5 component of a facility which is not self6 constructed, if for the taxable year the 

7 amount which (but for clause (i)) would 

8 have been taken into account under para9 graph (1)(B) exceeds the amount allowed 

10 by clause (i), then the amount of such ex11 cess shall increase the amount taken into 

12 account under paragraph (1)(B) for the 

13 succeeding taxable year without regard to 

14 this paragraph. 

15 ‘‘(D) DETERMINATION OF PERCENTAGE OF

16 COMPLETION.—The determination under sub17 paragraph (C) of the portion of the overall cost 

18 to the taxpayer of the construction which is 

19 properly attributable to construction completed 

20 during any taxable year shall be made on the 

21 basis of engineering or architectural estimates 

22 or on the basis of cost accounting records, 

23 using information available at the close of the 

24 taxable year in which the credit is being 

25 claimed. 


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1 ‘‘(E) DETERMINATION OF OVERALL

2 COST.—The determination under subparagraph 

3 (C) of the overall cost to the taxpayer of the 

4 construction of a facility shall be made on the 

5 basis of engineering or architectural estimates 

6 or on the basis of cost accounting records, 

7 using information available at the close of the 

8 taxable year in which the credit is being 

9 claimed. 

10 ‘‘(F) NO PROGRESS EXPENDITURES FOR

11 PROPERTY FOR YEAR PLACED IN SERVICE, 

12 ETC.—In the case of any qualified nuclear facil13 ity, no qualified nuclear facility expenditures 

14 shall be taken into account under this sub15 section for the earlier of— 

16 ‘‘(i) the taxable year in which the fa17 cility is placed in service, or 

18 ‘‘(ii) the first taxable year for which 

19 recapture is required under section 

20 50(a)(2) with respect to such facility or for 

21 any taxable year thereafter. 

22 ‘‘(3) SELF-CONSTRUCTED.—For purposes of 

23 this subsection— 

24 ‘‘(A) The term ‘self-constructed facility’ 

25 means any facility if, at the close of the first 


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1 taxable year to which the election in this sub2 section applies, it is reasonable to believe that 

3 more than 80 percent of the qualified nuclear 

4 facility expenditures for such facility will be 

5 made directly by the taxpayer. 

6 ‘‘(B) A component of a facility shall be 

7 treated as not self-constructed if, at the close of 

8 the first taxable year in which expenditures for 

9 the component are paid, it is reasonable to be10 lieve that the cost of the component is at least 

11 5 percent of the expected cost of the facility. 

12 ‘‘(4) ELECTION.—An election shall be made 

13 under this subsection for a qualified nuclear power 

14 facility by claiming the nuclear power facility con15 struction credit for expenditures described in para16 graph (1) on the taxpayer’s return of the tax im17 posed by this chapter for the taxable year. Such an 

18 election shall apply to the taxable year for which 

19 made and all subsequent taxable years. Such an 

20 election, once made, may be revoked only with the 

21 consent of the Secretary. 

22 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur23 poses of this section— 

24 ‘‘(1) QUALIFIED NUCLEAR POWER FACILITY.— 

25 The term ‘qualified nuclear power facility’ means a 


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1 facility which, when placed in service, will use nu2 clear power to produce electricity, the reactor design 

3 for which was approved after December 31, 1993 by 

4 the Nuclear Regulatory Commission (and such de5 sign or a substantially similar design of comparable 

6 capacity was not approved on or before such date), 

7 and the construction of which was approved by the 

8 Nuclear Regulatory Commission on or before De9 cember 31, 2013. 

10 ‘‘(2) QUALIFIED NUCLEAR POWER FACILITY

11 EXPENDITURES.— 

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

13 nuclear power facility expenditures’ means any 

14 amount paid, accrued, or properly chargeable to 

15 capital account— 

16 ‘‘(i) with respect to a qualified nuclear 

17 power facility, 

18 ‘‘(ii) for which depreciation will be al19 lowable under section 168 once the facility 

20 is placed in service, and 

21 ‘‘(iii) which is incurred before the 

22 qualified nuclear power facility is placed in 

23 service or in connection with the placement 

24 of such facility in service. 


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1 ‘‘(B) PRE-EFFECTIVE DATE EXPENDI2 TURES.—Qualified nuclear power facility ex3 penditures do not include any expenditures in4 curred by the taxpayer before January 1, 2008, 

5 to the extent that, at the close of the first tax6 able year to which the election in subsection (c) 

7 applies, it is reasonable to believe that such ex8 penditures will constitute more than 20 percent 

9 of the total qualified nuclear power facility ex10 penditures. 

11 ‘‘(3) DELAYS AND SUSPENSION OF CONSTRUC12 TION.— 

13 ‘‘(A) IN GENERAL.—Except as provided in 

14 section 50(a)(2)(C) and except for sales or dis15 positions between entities which meet the own16 ership test in section 1504(a), for purposes of 

17 applying this section and section 50, a nuclear 

18 power facility that is under construction shall 

19 cease, with respect to the taxpayer, to be a 

20 qualified nuclear power facility as of the date 

21 on which the taxpayer sells, disposes of, or can22 cels, abandons, or otherwise terminates the con23 struction of, the facility. 

24 ‘‘(B) RESUMPTION OF CONSTRUCTION.—If 

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1 tion ceases, with respect to the taxpayer, to be 

2 a qualified nuclear power facility by reason of 

3 subparagraph (A) and work is subsequently re4 sumed on the construction of such facility the 

5 qualified nuclear power facility expenditures 

6 shall be determined without regard to any delay 

7 or temporary termination of construction of the 

8 facility. 

9 ‘‘(e) APPLICATION OF OTHER RULES.—Rules similar 

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

11 (as in effect on the day before the enactment of the Rev12 enue Reconciliation Act of 1990) shall apply for purposes 

13 of this section to the extent not inconsistent herewith.’’. 

14 (c) PROVISIONS RELATING TO CREDIT RECAP15 TURE.— 

16 (1) PROGRESS EXPENDITURE RECAPTURE

17 RULES.— 

18 (A) BASIC RULES.—Subparagraph (A) of 

19 section 50(a)(2) of the Internal Revenue Code 

20 of 1986 is amended to read as follows: 

21 ‘‘(A) IN GENERAL.—If during any taxable 

22 year any building to which section 47(d) applied 

23 or any facility to which section 48F(c) applied 

24 ceases (by reason of sale or other disposition, 

25 cancellation or abandonment of contract, or 


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1 otherwise) to be, with respect to the taxpayer, 

2 property which, when placed in service, will be 

3 a qualified rehabilitated building or a qualified 

4 nuclear power facility, then the tax under this 

5 chapter for such taxable year shall be increased 

6 by an amount equal to the aggregate decrease 

7 in the credits allowed under section 38 for all 

8 prior taxable years which would have resulted 

9 solely from reducing to zero the credit deter10 mined under this subpart with respect to such 

11 building or facility.’’. 

12 (B) AMENDMENT TO EXCESS CREDIT RE13 CAPTURE RULE.—Subparagraph (B) of section 

14 50(a)(2) of such Code is amended by— 

15 (i) inserting ‘‘or paragraph (2) of sec16 tion 48F(b)’’ after ‘‘paragraph (2) of sec17 tion 47(b)’’, 

18 (ii) inserting ‘‘or section 48F(b)(1)’’ 

19 after ‘‘section 47(b)(1)’’, and 

20 (iii) inserting ‘‘or facility’’ after 

21 ‘‘building’’. 

22 (C) AMENDMENT OF SALE AND LEASE23 BACK RULE.—Subparagraph (C) of section 

24 50(a)(2) of such Code is amended by— 


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1 (i) inserting ‘‘or section 48F(c)’’ after 

2 ‘‘section 47(d)’’, and 

3 (ii) inserting ‘‘or qualified nuclear 

4 power facility expenditures’’ after ‘‘quali5 fied rehabilitation expenditures’’. 

6 (D) OTHER AMENDMENT.—Subparagraph 

7 (D) of section 50(a)(2) of such Code is amend8 ed by inserting ‘‘or section 48F(c)’’ after ‘‘sec9 tion 47(d)’’. 

10 (d) NO BASIS ADJUSTMENT.—Section 50(c) of the 

11 Internal Revenue Code of 1986 is amended by adding at 

12 the end the following new paragraph: 

13 ‘‘(6) NUCLEAR POWER FACILITY CONSTRUC14 TION CREDIT.—This subsection shall not apply to 

15 the nuclear power facility construction credit.’’. 

16 (e) APPLICATION OF SECTION 49.—Subparagraph 

17 (C) of section 49(a)(1) of the Internal Revenue Code of 

18 1986, as amended by this Act, is amended— 

19 (1) by striking ‘‘and’’ at the end of clause (vi), 

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

21 (vii) and inserting ‘‘, and’’, and 

22 (3) by inserting after clause (vii) the following 

23 new clause: 


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1 ‘‘(viii) the basis of any property which 

2 is part of a qualified nuclear power facility 

3 under section 48F.’’. 

4 (f) CLERICAL AMENDMENT.—The table of sections 

5 for subpart E of part IV of subchapter A of chapter 1 

6 of the Internal Revenue Code of 1986, as amended by this 

7 Act, is amended by inserting after the item relating to sec8 tion 48E the following new item: 

‘‘Sec. 48F. Nuclear power facility construction credit.’’. 

9 (g) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to expenditures incurred and prop11 erty placed in service in taxable years beginning after the 

12 date of enactment of this Act. 

13 SEC. 712. 5-YEAR ACCELERATED DEPRECIATION FOR NEW 

14 NUCLEAR POWER FACILITIES. 

15 (a) IN GENERAL.—Subparagraph (B) of section 

16 168(e)(3) of the Internal Revenue Code of 1986 (relating 

17 to 5-year property) is amended— 

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

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

20 (vi) and inserting ‘‘, and’’, and 

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

22 clause: 

23 ‘‘(vii) any qualified nuclear power fa24 cility described in section 48F(d)(1).’’. 


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

2 this section shall apply to property placed in service in 

3 taxable years beginning after the date of the enactment 

4 of this Act. 

5 TITLE VIII—LEASING PROGRAM 

6 FOR LAND WITHIN COASTAL 

7 PLAIN 

8 SEC. 801. DEFINITIONS. 

9 In this title: 

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

11 Plain’’ means that area identified as the ‘‘1002 

12 Coastal Plain Area’’ on the map. 

13 (2) FEDERAL AGREEMENT.—The term ‘‘Fed14 eral Agreement’’ means the Federal Agreement and 

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

16 issued on January 23, 1974, in accordance with sec17 tion 28 of the Mineral Leasing Act (30 U.S.C. 185) 

18 and the Trans-Alaska Pipeline Authorization Act 

19 (43 U.S.C. 1651 et seq.). 

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

21 Statement’’ means the final legislative environmental 

22 impact statement on the Coastal Plain, dated April 

23 1987, and prepared pursuant to section 1002 of the 

24 Alaska National Interest Lands Conservation Act 

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1 tional Environmental Policy Act of 1969 (42 U.S.C. 

2 4332(2)(C)). 

3 (4) MAP.—The term ‘‘map’’ means the map en4 titled ‘‘Arctic National Wildlife Refuge’’, dated Sep5 tember 2005, and prepared by the United States Ge6 ological Survey. 

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

8 the Secretary of the Interior (or the designee of the 

9 Secretary), acting through the Director of the Bu10 reau of Land Management in consultation with the 

11 Director of the United States Fish and Wildlife 

12 Service and in coordination with a State coordinator 

13 appointed by the Governor of the State of Alaska. 

14 SEC. 802. LEASING PROGRAM FOR LAND WITHIN THE 

15 COASTAL PLAIN. 

16 (a) IN GENERAL.— 

17 (1) AUTHORIZATION.—Congress authorizes the 

18 exploration, leasing, development, production, and 

19 economically feasible and prudent transportation of 

20 oil and gas in and from the Coastal Plain. 

21 (2) ACTIONS.—The Secretary shall take such 

22 actions as are necessary— 

23 (A) to establish and implement, in accord24 ance with this title, a competitive oil and gas 

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1 mentally sound program for the exploration, de2 velopment, and production of the oil and gas re3 sources of the Coastal Plain while taking into 

4 consideration the interests and concerns of resi5 dents of the Coastal Plain, which is the home6 land of the Kaktovikmiut Inupiat; and 

7 (B) to administer this title through regula8 tions, lease terms, conditions, restrictions, pro9 hibitions, stipulations, and other provisions 

10 that— 

11 (i) ensure the oil and gas exploration, 

12 development, and production activities on 

13 the Coastal Plain will result in no signifi14 cant adverse effect on fish and wildlife, 

15 their habitat, subsistence resources, and 

16 the environment; and 

17 (ii) require the application of the best 

18 commercially available technology for oil 

19 and gas exploration, development, and pro20 duction to all exploration, development, 

21 and production operations under this title 

22 in a manner that ensures the receipt of 

23 fair market value by the public for the 

24 mineral resources to be leased. 

25 (b) REPEAL.— 


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1 (1) REPEAL.—Section 1003 of the Alaska Na2 tional Interest Lands Conservation Act (16 U.S.C. 

3 3143) is repealed. 

4 (2) CONFORMING AMENDMENT.—The table of 

5 contents contained in section 1 of that Act (16 

6 U.S.C. 3101 note) is amended by striking the item 

7 relating to section 1003. 

8 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER9 TAIN OTHER LAWS.— 

10 (1) COMPATIBILITY.—For purposes of the Na11 tional Wildlife Refuge System Administration Act of 

12 1966 (16 U.S.C. 668dd et seq.)— 

13 (A) the oil and gas pre-leasing and leasing 

14 program, and activities authorized by this sec15 tion in the Coastal Plain, shall be considered to 

16 be compatible with the purposes for which the 

17 Arctic National Wildlife Refuge was established; 

18 and 

19 (B) no further findings or decisions shall 

20 be required to implement that program and 

21 those activities. 

22 (2) ADEQUACY OF THE DEPARTMENT OF THE

23 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

24 STATEMENT.—The Final Statement shall be consid25 ered to satisfy the requirements under the National 


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1 Environmental Policy Act of 1969 (42 U.S.C. 4321 

2 et seq.) that apply with respect to preleasing activi3 ties, including exploration programs and actions au4 thorized to be taken by the Secretary to develop and 

5 promulgate the regulations for the establishment of 

6 a leasing program authorized by this title before the 

7 conduct of the first lease sale. 

8 (3) COMPLIANCE WITH NEPA FOR OTHER AC9 TIONS.— 

10 (A) IN GENERAL.—Before conducting the 

11 first lease sale under this title, the Secretary 

12 shall prepare an environmental impact state13 ment in accordance with the National Environ14 mental Policy Act of 1969 (42 U.S.C. 4321 et 

15 seq.) with respect to the actions authorized by 

16 this title that are not referred to in paragraph 

17 (2). 

18 (B) IDENTIFICATION AND ANALYSIS.— 

19 Notwithstanding any other provision of law, in 

20 carrying out this paragraph, the Secretary shall 

21 not be required— 

22 (i) to identify nonleasing alternative 

23 courses of action; or 

24 (ii) to analyze the environmental ef25 fects of those courses of action. 


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1 (C) IDENTIFICATION OF PREFERRED AC2 TION.—Not later than 18 months after the date 

3 of enactment of this Act, the Secretary shall— 

4 (i) identify only a preferred action and 

5 a single leasing alternative for the first 

6 lease sale authorized under this title; and 

7 (ii) analyze the environmental effects 

8 and potential mitigation measures for 

9 those 2 alternatives. 

10 (D) PUBLIC COMMENTS.—In carrying out 

11 this paragraph, the Secretary shall consider 

12 only public comments that are filed not later 

13 than 20 days after the date of publication of a 

14 draft environmental impact statement. 

15 (E) EFFECT OF COMPLIANCE.—Notwith16 standing any other provision of law, compliance 

17 with this paragraph shall be considered to sat18 isfy all requirements for the analysis and con19 sideration of the environmental effects of pro20 posed leasing under this title. 

21 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR22 ITY.—Nothing in this title expands or limits any State or 

23 local regulatory authority. 

24 (e) SPECIAL AREAS.— 

25 (1) DESIGNATION.— 


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

2 consultation with the State of Alaska, the 

3 North Slope Borough, Alaska, and the City of 

4 Kaktovik, Alaska, may designate not more than 

5 45,000 acres of the Coastal Plain as a special 

6 area if the Secretary determines that the special 

7 area would be of such unique character and in8 terest as to require special management and 

9 regulatory protection. 

10 (B) SADLEROCHIT SPRING AREA.—The 

11 Secretary shall designate as a special area in 

12 accordance with subparagraph (A) the 

13 Sadlerochit Spring area, comprising approxi14 mately 4,000 acres as depicted on the map. 

15 (2) MANAGEMENT.—The Secretary shall man16 age each special area designated under this sub17 section in a manner that— 

18 (A) respects and protects the Native people 

19 of the area; and 

20 (B) preserves the unique and diverse char21 acter of the area, including fish, wildlife, sub22 sistence resources, and cultural values of the 

23 area. 

24 (3) EXCLUSION FROM LEASING OR SURFACE

25 OCCUPANCY.— 


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1 (A) IN GENERAL.—The Secretary may ex2 clude any special area designated under this 

3 subsection from leasing. 

4 (B) NO SURFACE OCCUPANCY.—If the Sec5 retary leases all or a portion of a special area 

6 for the purposes of oil and gas exploration, de7 velopment, production, and related activities, 

8 there shall be no surface occupancy of the land 

9 comprising the special area. 

10 (4) DIRECTIONAL DRILLING.—Notwithstanding 

11 any other provision of this subsection, the Secretary 

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

13 terms that permit the use of horizontal drilling tech14 nology from sites on leases located outside the spe15 cial area. 

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

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

18 leasing or to exploration, development, or production ex19 cept in accordance with this title. 

20 (g) REGULATIONS.— 

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

22 after the date of enactment of this Act, in consulta23 tion with appropriate agencies of the State of Alas24 ka, the North Slope Borough, Alaska, and the City 

25 of Kaktovik, Alaska, the Secretary shall issue such 


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1 regulations as are necessary to carry out this title, 

2 including rules and regulations relating to protection 

3 of the fish and wildlife, fish and wildlife habitat, and 

4 subsistence resources of the Coastal Plain. 

5 (2) REVISION OF REGULATIONS.—The Sec6 retary may periodically review and, as appropriate, 

7 revise the rules and regulations issued under para8 graph (1) to reflect any significant scientific or engi9 neering data that come to the attention of the Sec10 retary. 

11 SEC. 803. LEASE SALES. 

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

13 this title to any person qualified to obtain a lease for de14 posits of oil and gas under the Mineral Leasing Act (30 

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

16 (b) PROCEDURES.—The Secretary shall, by regula17 tion, establish procedures for— 

18 (1) receipt and consideration of sealed nomina19 tions for any area in the Coastal Plain for inclusion 

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

21 a lease sale; 

22 (2) the holding of lease sales after that nomina23 tion process; and 


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1 (3) public notice of and comment on designa2 tion of areas to be included in, or excluded from, a 

3 lease sale. 

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

5 this title shall be by sealed competitive cash bonus bids. 

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

7 first lease sale under this title, the Secretary shall offer 

8 for lease those tracts the Secretary considers to have the 

9 greatest potential for the discovery of hydrocarbons, tak10 ing into consideration nominations received pursuant to 

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

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

13 shall— 

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

15 enactment of this Act, conduct the first lease sale 

16 under this title; 

17 (2) not later than September 30, 2012, conduct 

18 a second lease sale under this title; and 

19 (3) conduct additional sales at appropriate in20 tervals if sufficient interest in exploration or devel21 opment exists to warrant the conduct of the addi22 tional sales. 

23 SEC. 804. GRANT OF LEASES BY THE SECRETARY. 

24 (a) IN GENERAL.—Upon payment by a lessee of such 

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


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1 may grant to the highest responsible qualified bidder in 

2 a lease sale conducted pursuant to section 803 a lease for 

3 any land on the Coastal Plain. 

4 (b) SUBSEQUENT TRANSFERS.— 

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

6 title may be sold, exchanged, assigned, sublet, or 

7 otherwise transferred except with the approval of the 

8 Secretary. 

9 (2) CONDITION FOR APPROVAL.—Before grant10 ing any approval described in paragraph (1), the 

11 Secretary shall consult with and give due consider12 ation to the opinion of the Attorney General. 

13 SEC. 805. LEASE TERMS AND CONDITIONS. 

14 (a) IN GENERAL.—An oil or gas lease issued pursu15 ant to this title shall— 

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

less than 161 17 ⁄2 percent of the amount or value of the 

18 production removed or sold from the lease, as deter19 mined by the Secretary in accordance with regula20 tions applicable to other Federal oil and gas leases; 

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

22 seasonal basis, such portions of the Coastal Plain to 

23 exploratory drilling activities as are necessary to 

24 protect caribou calving areas and other species of 

25 fish and wildlife; 


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

2 Coastal Plain shall be fully responsible and liable for 

3 the reclamation of land within the Coastal Plain and 

4 any other Federal land that is adversely affected in 

5 connection with exploration, development, produc6 tion, or transportation activities within the Coastal 

7 Plain conducted by the lessee or by any of the sub8 contractors or agents of the lessee; 

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

10 convey, by contract or otherwise, that reclamation 

11 responsibility and liability to another person without 

12 the express written approval of the Secretary; 

13 (5) provide that the standard of reclamation for 

14 land required to be reclaimed under this title shall 

15 be, to the maximum extent practicable— 

16 (A) a condition capable of supporting the 

17 uses that the land was capable of supporting 

18 prior to any exploration, development, or pro19 duction activities; or 

20 (B) upon application by the lessee, to a 

21 higher or better standard, as approved by the 

22 Secretary; 

23 (6) contain terms and conditions relating to 

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1 tat, subsistence resources, and the environment as 

2 required under section 802(a)(2); 

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

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

5 provide a fair share of employment and contracting 

6 for Alaska Natives and Alaska Native Corporations 

7 from throughout the State of Alaska, as determined 

8 by the level of obligation previously agreed to in the 

9 Federal Agreement; and 

10 (8) contain such other provisions as the Sec11 retary determines to be necessary to ensure compli12 ance with this title and regulations issued under this 

13 title. 

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

15 as a term and condition of each lease under this title, and 

16 in recognizing the proprietary interest of the Federal Gov17 ernment in labor stability and in the ability of construction 

18 labor and management to meet the particular needs and 

19 conditions of projects to be developed under the leases 

20 issued pursuant to this title (including the special concerns 

21 of the parties to those leases), shall require that each les22 see, and each agent and contractor of a lessee, under this 

23 title negotiate to obtain a project labor agreement for the 

24 employment of laborers and mechanics on production, 

25 maintenance, and construction under the lease. 


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1 SEC. 806. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

2 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

3 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

4 In accordance with section 802, the Secretary shall admin5 ister this title through regulations, lease terms, conditions, 

6 restrictions, prohibitions, stipulations, or other provisions 

7 that— 

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

9 that oil and gas exploration, development, and pro10 duction activities on the Coastal Plain will result in 

11 no significant adverse effect on fish and wildlife, fish 

12 and wildlife habitat, and the environment; 

13 (2) require the application of the best commer14 cially available technology for oil and gas explo15 ration, development, and production on all new ex16 ploration, development, and production operations; 

17 and 

18 (3) ensure that the maximum surface acreage 

19 covered in connection with the leasing program by 

20 production and support facilities, including airstrips 

21 and any areas covered by gravel berms or piers for 

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

23 the Coastal Plain. 

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

25 The Secretary shall require, with respect to any proposed 

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


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1 (1) a site-specific environmental analysis be 

2 made of the probable effects, if any, that the drilling 

3 or related activities will have on fish and wildlife, 

4 fish and wildlife habitat, subsistence resources, sub5 sistence uses, and the environment; 

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

7 and mitigate (in that order and to the maximum ex8 tent practicable) any significant adverse effect iden9 tified under paragraph (1); and 

10 (3) the development of the plan occur after con11 sultation with— 

12 (A) each agency having jurisdiction over 

13 matters mitigated by the plan; 

14 (B) the State of Alaska; 

15 (C) North Slope Borough, Alaska; and 

16 (D) the City of Kaktovik, Alaska. 

17 (c) REGULATIONS TO PROTECT COASTAL PLAIN

18 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

19 AND THE ENVIRONMENT.—Before implementing the leas20 ing program authorized by this title, the Secretary shall 

21 prepare and issue regulations, lease terms, conditions, re22 strictions, prohibitions, stipulations, or other measures de23 signed to ensure, to the maximum extent practicable, that 

24 the activities carried out on the Coastal Plain under this 


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1 title are conducted in a manner consistent with the pur2 poses and environmental requirements of this title. 

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 title 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; 

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 (C) design safety and construction stand23 ards for all pipelines and any access and service 

24 roads that minimize, to the maximum extent 

25 practicable, adverse effects on— 


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1 (i) the passage of migratory species 

2 (such as caribou); and 

3 (ii) the flow of surface water by re4 quiring the use of culverts, bridges, or 

5 other structural devices; 

6 (D) prohibitions on general public access 

7 to, and use of, all pipeline access and service 

8 roads; 

9 (E) stringent reclamation and rehabilita10 tion requirements in accordance with this title 

11 for the removal from the Coastal Plain of all oil 

12 and gas development and production facilities, 

13 structures, and equipment on completion of oil 

14 and gas production operations, except in a case 

15 in which the Secretary determines that those 

16 facilities, structures, or equipment— 

17 (i) would assist in the management of 

18 the Arctic National Wildlife Refuge; and 

19 (ii) are donated to the United States 

20 for that purpose; 

21 (F) appropriate prohibitions or restrictions 

22 on— 

23 (i) access by all modes of transpor24 tation; 

25 (ii) sand and gravel extraction; and 


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1 (iii) use of explosives; 

2 (G) reasonable stipulations for protection 

3 of cultural and archaeological resources; 

4 (H) measures to protect groundwater and 

5 surface water, including— 

6 (i) avoidance, to the maximum extent 

7 practicable, of springs, streams, and river 

8 systems; 

9 (ii) the protection of natural surface 

10 drainage patterns and wetland and ripar11 ian habitats; and 

12 (iii) the regulation of methods or tech13 niques for developing or transporting ade14 quate supplies of water for exploratory 

15 drilling; and 

16 (I) research, monitoring, and reporting re17 quirements; 

18 (3) that exploration activities (except surface 

19 geological studies) be limited to the period between 

20 approximately November 1 and May 1 of each year 

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

22 trails with adequate snow cover, ice pads, ice air23 strips, and air transport methods (except that those 

24 exploration activities may be permitted at other 

25 times if the Secretary determines that the exploVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00210 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 ration will have no significant adverse effect on fish 

2 and wildlife, fish and wildlife habitat, subsistence re3 sources, and the environment of the Coastal Plain); 

4 (4) consolidation of facility siting; 

5 (5) avoidance or reduction of air traffic-related 

6 disturbance to fish and wildlife; 

7 (6) treatment and disposal of hazardous and 

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

9 muds and cuttings, and domestic wastewater, includ10 ing, in accordance with applicable Federal and State 

11 environmental laws (including regulations)— 

12 (A) preparation of an annual waste man13 agement report; 

14 (B) development and implementation of a 

15 hazardous materials tracking system; and 

16 (C) prohibition on the use of chlorinated 

17 solvents; 

18 (7) fuel storage and oil spill contingency plan19 ning; 

20 (8) conduct of periodic field crew environmental 

21 briefings; 

22 (9) avoidance of significant adverse effects on 

23 subsistence hunting, fishing, and trapping; 

24 (10) compliance with applicable air and water 

25 quality standards; 


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1 (11) appropriate seasonal and safety zone des2 ignations around well sites, within which subsistence 

3 hunting and trapping shall be limited; and 

4 (12) development and implementation of such 

5 other protective environmental requirements, restric6 tions, terms, or conditions as the Secretary, after 

7 consultation with the State of Alaska, North Slope 

8 Borough, Alaska, and the City of Kaktovik, Alaska, 

9 determines to be necessary. 

10 (e) CONSIDERATIONS.—In preparing and issuing reg11 ulations, lease terms, conditions, restrictions, prohibitions, 

12 or stipulations under this section, the Secretary shall take 

13 into consideration— 

14 (1) the stipulations and conditions that govern 

15 the National Petroleum Reserve-Alaska leasing pro16 gram, as set forth in the 1999 Northeast National 

17 Petroleum Reserve-Alaska Final Integrated Activity 

18 Plan/Environmental Impact Statement; 

19 (2) the environmental protection standards that 

20 governed the initial Coastal Plain seismic exploration 

21 program under parts 37.31 through 37.33 of title 

22 50, Code of Federal Regulations (or successor regu23 lations); and 

24 (3) the land use stipulations for exploratory 

25 drilling on the KIC-ASRC private land described in 


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1 Appendix 2 of the agreement between Arctic Slope 

2 Regional Corporation and the United States dated 

3 August 9, 1983. 

4 (f) FACILITY CONSOLIDATION PLANNING.— 

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

6 notice and comment, the Secretary shall prepare and 

7 periodically update a plan to govern, guide, and di8 rect the siting and construction of facilities for the 

9 exploration, development, production, and transpor10 tation of oil and gas resources from the Coastal 

11 Plain. 

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

13 shall be— 

14 (A) the avoidance of unnecessary duplica15 tion of facilities and activities; 

16 (B) the encouragement of consolidation of 

17 common facilities and activities; 

18 (C) the location or confinement of facilities 

19 and activities to areas that will minimize impact 

20 on fish and wildlife, fish and wildlife habitat, 

21 subsistence resources, and the environment; 

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

23 maximum extent practicable; and 

24 (E) the enhancement of compatibility be25 tween wildlife values and development activities. 


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

2 shall— 

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

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

5 811 of the Alaska National Interest Lands Con6 servation Act (16 U.S.C. 3121); and 

7 (2) ensure that local residents shall have rea8 sonable access to public land in the Coastal Plain for 

9 traditional uses. 

10 SEC. 807. EXPEDITED JUDICIAL REVIEW. 

11 (a) FILING OF COMPLAINTS.— 

12 (1) DEADLINE.—A complaint seeking judicial 

13 review of a provision of this title or an action of the 

14 Secretary under this title shall be filed— 

15 (A) except as provided in subparagraph 

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

17 date on which the action being challenged was 

18 carried out; or 

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

20 on grounds arising after the 90-day period de21 scribed in subparagraph (A), during the 90-day 

22 period beginning on the date on which the com23 plainant knew or reasonably should have known 

24 about the grounds for the complaint. 


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1 (2) VENUE.—A complaint seeking judicial re2 view of a provision of this title or an action of the 

3 Secretary under this title shall be filed in the United 

4 States Court of Appeals for the District of Colum5 bia. 

6 (3) SCOPE.— 

7 (A) IN GENERAL.—Judicial review of a de8 cision of the Secretary under this title (includ9 ing an environmental analysis of such a lease 

10 sale) shall be— 

11 (i) limited to a review of whether the 

12 decision is in accordance with this title; 

13 and 

14 (ii) based on the administrative record 

15 of the decision. 

16 (B) PRESUMPTIONS.—Any identification 

17 by the Secretary of a preferred course of action 

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

19 Secretary of environmental effects, under this 

20 title shall be presumed to be correct unless 

21 proven otherwise by clear and convincing evi22 dence. 

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

24 the Secretary that is subject to judicial review under this 


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

2 or criminal proceeding for enforcement. 

3 SEC. 808. RIGHTS-OF-WAY AND EASEMENTS ACROSS COAST4 AL PLAIN. 

5 For purposes of section 1102(4)(A) of the Alaska Na6 tional Interest Lands Conservation Act (16 U.S.C. 

7 3162(4)(A)), any rights-of-way or easements across the 

8 Coastal Plain for the exploration, development, produc9 tion, or transportation of oil and gas shall be considered 

10 to be established incident to the management of the Coast11 al Plain under this section. 

12 SEC. 809. CONVEYANCE. 

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

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

15 3192(h)(2)), to remove any cloud on title to land, and to 

16 clarify land ownership patterns in the Coastal Plain, the 

17 Secretary shall— 

18 (1) to the extent necessary to fulfill the entitle19 ment of the Kaktovik Inupiat Corporation under sec20 tions 12 and 14 of the Alaska Native Claims Settle21 ment Act (43 U.S.C. 1611, 1613), as determined by 

22 the Secretary, convey to that Corporation the sur23 face estate of the land described in paragraph (1) of 

24 Public Land Order 6959, in accordance with the 

25 terms and conditions of the agreement between the 


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1 Secretary, the United States Fish and Wildlife Serv2 ice, the Bureau of Land Management, and the 

3 Kaktovik Inupiat Corporation, dated January 22, 

4 1993; and 

5 (2) convey to the Arctic Slope Regional Cor6 poration the remaining subsurface estate to which 

7 that Corporation is entitled under the agreement be8 tween that corporation and the United States, dated 

9 August 9, 1983. 

10 SEC. 810. LOCAL GOVERNMENT IMPACT AID AND COMMU11 NITY SERVICE ASSISTANCE. 

12 (a) ESTABLISHMENT OF FUND.— 

13 (1) IN GENERAL.—As a condition on the receipt 

14 of funds under section 812(2), the State of Alaska 

15 shall establish in the treasury of the State, and ad16 minister in accordance with this section, a fund to 

17 be known as the ‘‘Coastal Plain Local Government 

18 Impact Aid Assistance Fund’’ (referred to in this 

19 section as the ‘‘Fund’’). 

20 (2) DEPOSITS.—Subject to paragraph (1), the 

21 Secretary of the Treasury shall deposit into the 

22 Fund, $35,000,000 each year from the amount 

23 available under section 812(2)(A). 

24 (3) INVESTMENT.—The Governor of the State 

25 of Alaska (referred to in this section as the ‘‘GovVerDate Aug 31 2005 00:09 Sep 20, 2008 Jkt 069200 PO 00000 Frm 00217 Fmt 6652 Sfmt 6201 E:\BILLS\S3523.IS S3523

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1 ernor’’) shall invest amounts in the Fund in interest2 bearing securities of the United States or the State 

3 of Alaska. 

4 (b) ASSISTANCE.—The Governor, in cooperation with 

5 the Mayor of the North Slope Borough, shall use amounts 

6 in the Fund to provide assistance to North Slope Borough, 

7 Alaska, the City of Kaktovik, Alaska, and any other bor8 ough, municipal subdivision, village, or other community 

9 in the State of Alaska that is directly impacted by explo10 ration for, or the production of, oil or gas on the Coastal 

11 Plain under this title, or any Alaska Native Regional Cor12 poration acting on behalf of the villages and communities 

13 within its region whose lands lie along the right of way 

14 of the Trans Alaska Pipeline System, as determined by 

15 the Governor. 

16 (c) APPLICATION.— 

17 (1) IN GENERAL.—To receive assistance under 

18 subsection (b), a community or Regional Corporation 

19 described in that subsection shall submit to the Gov20 ernor, or to the Mayor of the North Slope Borough, 

21 an application in such time, in such manner, and 

22 containing such information as the Governor may re23 quire. 

24 (2) ACTION BY NORTH SLOPE BOROUGH.—The 

25 Mayor of the North Slope Borough shall submit to 


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1 the Governor each application received under para2 graph (1) as soon as practicable after the date on 

3 which the application is received. 

4 (3) ASSISTANCE OF GOVERNOR.—The Governor 

5 shall assist communities in submitting applications 

6 under this subsection, to the maximum extent prac7 ticable. 

8 (d) USE OF FUNDS.—A community or Regional Cor9 poration that receives funds under subsection (b) may use 

10 the funds— 

11 (1) to plan for mitigation, implement a mitiga12 tion plan, or maintain a mitigation project to ad13 dress the potential effects of oil and gas exploration 

14 and development on environmental, social, cultural, 

15 recreational, and subsistence resources of the com16 munity; 

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

18 (A) a project to provide new or expanded 

19 public facilities; or 

20 (B) services to address the needs and prob21 lems associated with the effects described in 

22 paragraph (1), including firefighting, police, 

23 water and waste treatment, first responder, and 

24 other medical services; 


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1 (3) to compensate residents of the Coastal 

2 Plain for significant damage to environmental, so3 cial, cultural, recreational, or subsistence resources; 

4 and 

5 (4) in the City of Kaktovik, Alaska— 

6 (A) to develop a mechanism for providing 

7 members of the Kaktovikmiut Inupiat commu8 nity an opportunity to— 

9 (i) monitor development on the Coast10 al Plain; and 

11 (ii) provide information and rec12 ommendations to the Governor based on 

13 traditional aboriginal knowledge of the nat14 ural resources, flora, fauna, and ecological 

15 processes of the Coastal Plain; and 

16 (B) to establish a local coordination office, 

17 to be managed by the Mayor of the North Slope 

18 Borough, in coordination with the City of 

19 Kaktovik, Alaska— 

20 (i) to coordinate with and advise de21 velopers on local conditions and the history 

22 of areas affected by development; 

23 (ii) to provide to the Committee on 

24 Resources of the House of Representatives 

25 and the Committee on Energy and Natural 


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1 Resources of the Senate annual reports on 

2 the status of the coordination between de3 velopers and communities affected by de4 velopment; 

5 (iii) to collect from residents of the 

6 Coastal Plain information regarding the 

7 impacts of development on fish, wildlife, 

8 habitats, subsistence resources, and the en9 vironment of the Coastal Plain; and 

10 (iv) to ensure that the information 

11 collected under clause (iii) is submitted 

12 to— 

13 (I) developers; and 

14 (II) any appropriate Federal 

15 agency. 

16 SEC. 811. PROHIBITION ON EXPORTS. 

17 An oil or gas lease issued under this title shall pro18 hibit the exportation of oil or gas produced under the 

19 lease. 

20 SEC. 812. ALLOCATION OF REVENUES. 

21 Notwithstanding the Mineral Leasing Act (30 U.S.C. 

22 181 et seq.) or any other provision of law, of the adjusted 

23 bonus, rental, and royalty receipts from Federal oil and 

24 gas leasing and operations authorized under this title: 


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1 (1) 50 percent shall be deposited in the general 

2 fund of the Treasury. 

3 (2) The remainder shall be available as follows: 

4 (A) $35,000,000 shall be deposited by the 

5 Secretary of the Treasury into the fund created 

6 under section 810(a)(1). 

7 (B) The remainder shall be disbursed to 

8 the State of Alaska. 

Æ 


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