II 

109TH CONGRESS 

2D SESSION S. 3926 

To provide for the energy, economic, and national security of America, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 21, 2006 

Mr. SANTORUM introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To provide for the energy, economic, and national security 

of America, 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 ‘‘Empower America: Securing America’s Energy Future 

6 Act of 2006’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—PRODUCTION 


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Subtitle A—Coal 

PART I—COAL-TO-LIQUID FUEL PROMOTION

Sec. 101. Short title. 

Sec. 102. Definitions. 

Sec. 103. Coal-to-liquid fuel loan guarantee program. 

Sec. 104. Coal-to-liquid facilities loan program. 

Sec. 105. Credit for investment in coal-to-liquid fuels projects. 

Sec. 106. Temporary expensing for equipment used in coal-to-liquid fuels process. 

Sec. 107. Modification of multiyear contract authority for procurement of fuel 

derived from coal, oil shale, and tar sands. 

Sec. 108. Strategic Petroleum Reserve. 

Sec. 109. Authorization to conduct research, development, testing, and evaluation of assured domestic fuels. 

PART II—CLEAN COAL POWER INITIATIVE

Sec. 111. Clean coal power initiative. 

PART III—INCENTIVES FOR INNOVATIVE TECHNOLOGIES

Sec. 116. Technical corrections. 

Subtitle B—Refinery Permitting Process 

Sec. 121. Refinery permitting process. 

Subtitle C—Oil and Gas 

PART I—DEEP OCEAN ENERGY RESOURCES

Sec. 131. Short title. 

Sec. 132. Policy. 

Sec. 133. Definitions under the outer continental shelf lands act. 

Sec. 134. Determination of adjacent zones and planning areas. 

Sec. 135. Administration of leasing. 

Sec. 136. Grant of leases by Secretary. 

Sec. 137. Disposition of receipts. 

Sec. 138. Review of outer Continental Shelf exploration plans. 

Sec. 139. Reservation of lands and rights. 

Sec. 140. Outer continental shelf leasing program. 

Sec. 141. Coordination with adjacent states. 

Sec. 142. Environmental studies. 

Sec. 143. Review of outer continental shelf development and production plans. 

Sec. 144. Federal Energy Natural Resources Enhancement Fund Act of 2006. 

Sec. 145. Termination of effect of laws prohibiting the spending of appropriated funds for certain purposes. 

Sec. 146. Outer Continental Shelf incompatible use. 

Sec. 147. Repurchase of certain leases. 

Sec. 148. Offsite environmental mitigation. 

Sec. 149. Amendments to the Mineral Leasing Act. 

Sec. 150. Minerals management service. 

Sec. 151. Authority to use decommissioned offshore oil and gas platforms and 

other facilities for artificial reef, scientific research, or other 

uses. 


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Sec. 152. Repeal of requirement to conduct comprehensive inventory of OCS oil 

and natural gas resources. 

Sec. 153. Mining and petroleum schools. 

Sec. 154. Onshore and offshore mineral lease fees. 

Sec. 155. OCS regional headquarters. 

Sec. 156. National GEO Fund Act of 2006. 

Sec. 157. Leases for areas located within 100 miles of California or Florida. 

Sec. 158. Coastal impact assistance. 

Sec. 159. Oil shale and tar sands amendments. 

Sec. 160. Availability of OCS Receipts to provide payments under Secure Rural 

Schools and Community Self-Determination Act of 2000. 

PART II—DOMESTIC OIL AND GAS PRODUCTION

Sec. 171. Short title. 

Sec. 172. Definitions. 

Sec. 173. Leasing program for land within the Coastal Plain. 

Sec. 174. Lease sales. 

Sec. 175. Grant of leases by the Secretary. 

Sec. 176. Lease terms and conditions. 

Sec. 177. Coastal Plain environmental protection. 

Sec. 178. Expedited judicial review. 

Sec. 179. Use of revenues. 

Sec. 180. Rights-of-way across the Coastal Plain. 

Sec. 181. Conveyance. 

PART III—EMERGENCY SERVICE ROUTE

Sec. 191. Emergency service route. 

TITLE II—RESEARCH AND DEVELOPMENT 

Sec. 201. Renewable energy. 

Sec. 202. Biomass research and development. 

Sec. 203. Production incentives for cellulosic biofuels. 

Sec. 204. Commercial byproducts from municipal solid waste and cellulosic biomass loan guarantee program. 

Sec. 205. Fossil energy. 

Sec. 206. Carbon capture research and development program. 

Sec. 207. Advanced energy initiative for vehicles. 

TITLE III—CONSERVATION AND EFFICIENCY 

Subtitle A—Decreasing Demand 

Sec. 301. Credit for teleworking. 

Sec. 302. Employer-provided computer equipment treated as fringe benefit. 

Sec. 303. Sense of Congress. 

Subtitle B—Corporate Average Fuel Economy Reform 

Sec. 311. Short title. 

Sec. 312. Cafe standards for passenger automobiles. 

Sec. 313. Use of earned credits. 

Sec. 314. Use of civil penalties for research and development. 

Sec. 315. Effective date. 

Subtitle C—Other Conservation and Efficiency Programs 


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Sec. 321. Advanced building efficiency testbed. 

Sec. 322. Energy efficient public buildings. 

Sec. 323. Energy efficiency public information initiative. 

TITLE IV—CONSUMER PROTECTION 

Sec. 401. Short title. 

Sec. 402. Protection of consumers against price gouging. 

Sec. 403. Justifiable price increases. 

Sec. 404. Emergency proclamations and orders. 

Sec. 405. Enforcement by Federal Trade Commission. 

Sec. 406. Penalties. 

Sec. 407. Definitions. 

Sec. 408. Effective date. 

TITLE V—TAX INCENTIVES 

Sec. 501. Extension of excise tax credit for coal-to-liquids. 

Sec. 502. Extension of alternative motor vehicle credit. 

Sec. 503. Tax incentives extended to encourage cellulosic ethanol production. 

Sec. 504. Extension of biodiesel income and excise tax credits. 

Sec. 505. Extension of renewable energy resources. 

Sec. 506. Extension and modification of investment tax credit with respect to 

solar energy property and qualified fuel cell property. 

Sec. 507. Credit for production of natural gas. 

Sec. 508. Extension and modification of credit for residential energy efficient 

property. 

TITLE VI—BOUTIQUE FUEL REDUCTIONS 

Sec. 601. Boutique fuel reductions. 

1 SEC. 2. FINDINGS. 

2 Congress finds that— 

3 (1) according to the Energy Information Ad4 ministration— 

5 (A) the United States consumes approxi6 mately 20,700,000 barrels of oil per day; 

7 (B) total petroleum consumption will grow 

8 to approximately 26,100,000 barrels per day by 

9 2025; 

10 (C) global energy consumption will rise by 

11 over 34 percent by 2015; and 


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1 (D) petroleum imports will represent 60 

2 percent of the demand of the United States for 

3 petroleum in 2025, up from 58 percent in 2004; 

4 (2) the United States imports approximately 

5 13,500,000 barrels of oil per day; 

6 (3) 65 percent of the petroleum imports of the 

7 United States come from Canada, Mexico, Saudi 

8 Arabia, Venezuela, and Nigeria, respectively, accord9 ing to the Energy Information Administration; 

10 (4) approximately 17 percent of the oil im11 ported by the United States comes from the Middle 

12 East; 

13 (5) Energy Information Administration statis14 tics show that the top petroleum producers in the 

15 world include Saudi Arabia, the former Soviet 

16 Union, Iran, China, and Venezuela, with 6 of the 11 

17 largest oil fields located in Saudi Arabia, Venezuela, 

18 and Iran; 

(6) nearly 2 19 ⁄3 of the proven oil reserves of the 

20 world are located in the Middle East, with 45 per21 cent of the reserves located in Saudi Arabia, Iraq, 

22 and Iran; 

23 (7) over 80 percent of the total export earnings 

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1 uct of Iran, are generated through oil and gas reve2 nues; 

3 (8) Iran has provided the terrorist organization 

4 Hezbollah with between $60,000,000 and 

5 $100,000,000 annually to support terror activities 

6 against the civilized world; 

7 (9) leaders of both Iran and Venezuela have 

8 publicly denounced the United States and have la9 beled the citizens and allies of the United States as 

10 the enemy; 

11 (10) the Energy Information Administration es12 timates that 94 percent of the energy used by the 

13 United States is provided by fossil fuels and nuclear 

14 energy; 

15 (11) the energy policy of the United States 

16 must include the use and development of a variety 

17 of energy sources, including energy from coal, re18 newable sources, nuclear sources, oil, and natural 

19 gas; 

20 (12) the Energy Information Administration re21 ports that the United States has approximately 25 

22 percent of the coal reserves of the world; 

23 (13)(A) the Energy Information Administration 

24 projects that the United States will import coal in 


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1 a quantity that will meet less than 2 percent of the 

2 coal needs of the United States through 2025; and 

3 (B) the National Mining Association reports 

4 that over 56 percent of all electricity in the United 

5 States is produced through the use of coal; 

6 (14) the first coal-to-liquid fuel facility in the 

7 United States, located in Schuylkill County, Penn8 sylvania, is in a pre-construction phase; 

9 (15)(A) investment in the research and develop10 ment of alternative fuel sources has been significant 

11 over the last decade; and 

12 (B) the Federal Government has spent more 

13 than $35,000,000,000, while energy companies have 

14 invested more than $100,000,000,000, on the re15 search and development of alternative fuel sources; 

16 (16) reducing the dependence of the United 

17 States on foreign oil, and achieving energy security, 

18 requires an even greater commitment in the future; 

19 (17) all the corn grown in the United States 

20 today could be used to produce only enough ethanol 

21 to displace about 12 percent of the gasoline con22 sumed; 

23 (18)(A) according to the Renewable Fuels Asso24 ciation, there are over 100 ethanol plants in oper25 ation, 42 plants under construction, over 60 plants 


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1 in various planning stages, and 7 plants that are ex2 panding; 

3 (B) ethanol production in 2005 totaled approxi4 mately 4,000,000,000 gallons, which is the equiva5 lent of approximately 3 percent of the gasoline con6 sumption of the United States; and 

7 (C) when the construction and expansion of 

8 planned ethanol facilities is finished, annual ethanol 

9 capacity in the United States will be approximately 

10 7,700,000,000 gallons; 

11 (19)(A) there are now 65 biodiesel plants oper12 ating in the United States and nearly 60 plants 

13 under construction; and 

14 (B) in 2005, production in the United States 

15 from the plants reached 91,000,000 gallons, up from 

16 2,000,000 gallons in 2000; 

17 (20)(A) research and development of renewable 

18 alternatives must continue; and 

19 (B) according to the Department of Agri20 culture, ethanol production from cellulosic feedstocks 

21 seems to be the most promising renewable alter22 native for reducing the dependence of the United 

23 States on crude oil imports; and 

24 (21) a study conducted by the Department of 

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1 cluded that the land resources of the United States 

2 could, by 2030, produce enough biomass to displace 

3 the equivalent of at least 30 percent of petroleum 

4 consumption by the United States without seriously 

5 disrupting food production. 

6 TITLE I—PRODUCTION 

7 Subtitle A—Coal 

8 PART I—COAL-TO-LIQUID FUEL PROMOTION 

9 SEC. 101. SHORT TITLE. 

10 This part may be cited as the ‘‘Coal-to-Liquid Fuel 

11 Promotion Act of 2006’’. 

12 SEC. 102. DEFINITIONS. 

13 In this part: 

14 (1) COAL-TO-LIQUID.—The term ‘‘coal-to-liq15 uid’’ means— 

16 (A) with respect to a process or tech17 nology, the use of the coal resources of the 

18 United States, using the class of chemical reac19 tions known as Fischer-Tropsch, to produce 

20 synthetic fuel suitable for transportation; and 

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

22 of a facility related to the Fischer-Tropsch 

23 process, Fischer-Tropsch finished fuel produc24 tion, or the capture, transportation, or seques25 tration of byproducts of the use of coal at the 


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1 Fischer-Tropsch facility, including carbon emis2 sions. 

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

4 the Secretary of Energy. 

5 SEC. 103. COAL-TO-LIQUID FUEL LOAN GUARANTEE PRO6 GRAM. 

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

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

9 amended by adding at the end the following: 

10 ‘‘(11) Large-scale coal-to-liquid facilities (as de11 fined in section 2 of the Coal-to-Liquid Fuel Pro12 motion Act of 2006), that use coal resources of the 

13 United States to produce not less than 10,000 bar14 rels a day of liquid transportation fuel.’’. 

15 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

16 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) 

17 is amended by adding at the end the following: 

18 ‘‘(c) COAL-TO-LIQUID PROJECTS.— 

19 ‘‘(1) MANDATORY FUNDING.— 

20 ‘‘(A) IN GENERAL.—Notwithstanding any 

21 other provision of law, not later than 30 days 

22 after the date of enactment of this subsection, 

23 out of any funds in the Treasury not otherwise 

24 appropriated, the Secretary of the Treasury 

25 shall transfer to the Secretary to provide the 


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1 cost of guarantees for projects involving large2 scale coal-to-liquid facilities under section 

3 1703(b)(11) $5,000,000,000, to remain avail4 able until expended. 

5 ‘‘(B) RECEIPT AND ACCEPTANCE.—The 

6 Secretary shall be entitled to receive, shall ac7 cept, and shall use to provide the cost of guar8 antees for projects described in subparagraph 

9 (A) the funds transferred under subparagraph 

10 (A), without further appropriation. 

11 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In 

12 addition to the amounts made available under para13 graph (1), there are authorized to be appropriated 

14 such sums as are necessary to provide the cost of 

15 guarantees for projects involving large-scale coal-to16 liquid facilities under section 1703(b)(11). 

17 ‘‘(3) LIMITATIONS.— 

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

19 shall be provided under this title for projects 

20 described in paragraph (1) or (2) after (as de21 termined by the Secretary)— 

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

23 issued under this title; or 


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1 ‘‘(ii) production capacity covered by 

2 such loan guarantees reaches 100,000 bar3 rels per day of coal-to-liquid fuel. 

4 ‘‘(B) INDIVIDUAL PROJECTS.— 

5 ‘‘(i) IN GENERAL.—A loan guarantee 

6 may be provided under this title for any 

7 large-scale coal-to-liquid facility described 

8 in paragraph (1) or (2) that produces no 

9 more than 20,000 barrels of coal-to-liquid 

10 fuel per day. 

11 ‘‘(ii) NON-FEDERAL FUNDING RE12 QUIREMENT.—To be eligible for a loan 

13 guarantee under this title, a large-scale 

14 coal-to-liquid facility described in para15 graph (1) or (2) that produces more than 

16 20,000 barrels of coal-to-liquid fuel per 

17 day shall be required to provide non-Fed18 eral funding for the proportional cost of 

19 the loan guarantee for production that ex20 ceeds 20,000 barrels of coal-to-liquid fuel 

21 per day.’’. 

22 SEC. 104. COAL-TO-LIQUID FACILITIES LOAN PROGRAM. 

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

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

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


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

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

3 (b) ESTABLISHMENT.—The Secretary shall establish 

4 a program under which the Secretary shall provide loans, 

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

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

7 obtaining any services necessary for the planning, permit8 ting, and construction of a coal-to-liquid facility. 

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

10 under subsection (b), an owner or operator of a coal-to11 liquid facility shall submit to the Secretary an application 

12 at such time, in such manner, and containing such infor13 mation as the Secretary may require. 

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

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

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

17 the amount of the loan. 

18 (e) REPAYMENT OF LOAN.— 

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

20 loan under this section, an eligible recipient shall 

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

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

23 receipt of the loan. 

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

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1 ing or assistance received for the construction of a 

2 coal-to-liquid facility described in subsection (a), in3 cluding a loan guarantee provided under section 

4 1703(b)(11) of the Energy Policy Act of 2005 (42 

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

6 (f) FUNDING.— 

7 (1) IN GENERAL.—Notwithstanding any other 

8 provision of law, not later than 30 days after the 

9 date of enactment of this Act, out of any funds in 

10 the Treasury not otherwise appropriated, the Sec11 retary of the Treasury shall transfer to the Sec12 retary to carry out this section $200,000,000, to re13 main available until expended. 

14 (2) RECEIPT AND ACCEPTANCE.—The Sec15 retary shall be entitled to receive, shall accept, and 

16 shall use to carry out this section the funds trans17 ferred under paragraph (1), without further appro18 priation. 

19 SEC. 105. CREDIT FOR INVESTMENT IN COAL-TO-LIQUID 

20 FUELS PROJECTS. 

21 (a) IN GENERAL.—Section 46 of the Internal Rev22 enue Code of 1986 (relating to amount of credit) is 

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

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


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

2 new paragraph: 

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

4 credit.’’. 

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

6 subchapter A of chapter 1 of the Internal Revenue Code 

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

8 is amended by inserting after section 48B the following 

9 new section: 

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

11 CREDIT. 

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

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

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

15 investment for such taxable year. 

16 ‘‘(b) QUALIFIED INVESTMENT.— 

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

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

19 the basis of property placed in service by the tax20 payer during such taxable year which is part of a 

21 qualifying coal-to-liquid fuels project— 

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

23 erection of which is completed by the taxpayer, 

24 or 


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

2 the original use of such property commences 

3 with the taxpayer, and 

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

5 amortization in lieu of depreciation) is allow6 able. 

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

8 section, rules similar to the rules of subsection 

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

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

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

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

13 project’ means any domestic project which— 

14 ‘‘(A) employs the Fischer-Tropsch process 

15 to produce at least 10,000 barrels per day of 

16 transportation grade liquid fuels from coal (in17 cluding any property which allows for the cap18 ture, transportation, or sequestration of by19 products resulting from such process, including 

20 carbon emissions), and 

21 ‘‘(B) any portion of the qualified invest22 ment in which is certified under the qualifying 

23 coal-to-liquid program as eligible for credit 

24 under this section in an amount (not to exceed 

25 $200,000,000) determined by the Secretary. 


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1 ‘‘(2) COAL.—The term ‘coal’ means any carbon2 ized or semicarbonized matter, including peat. 

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

4 PROGRAM.— 

5 ‘‘(1) IN GENERAL.—The Secretary, in consulta6 tion with the Secretary of Energy, shall establish a 

7 qualifying coal-to-liquid fuels project program to 

8 consider and award certifications for qualified in9 vestment eligible for credits under this section to 10 

10 qualifying coal-to-liquid fuels project sponsors under 

11 this section. The total qualified investment which 

12 may be awarded eligibility for credit under the pro13 gram shall not exceed $2,000,000,000. 

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

15 eligibility under paragraph (1) may be issued only 

16 during the 10-fiscal year period beginning on Octo17 ber 1, 2006. 

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

19 shall not make a competitive certification award for 

20 qualified investment for credit eligibility under this 

21 section unless the recipient has documented to the 

22 satisfaction of the Secretary that— 

23 ‘‘(A) the award recipient is financially via24 ble without the receipt of additional Federal 

25 funding associated with the proposed project, 


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1 ‘‘(B) the recipient will provide sufficient 

2 information to the Secretary for the Secretary 

3 to ensure that the qualified investment is spent 

4 efficiently and effectively, 

5 ‘‘(C) a market exists for the products of 

6 the proposed project as evidenced by contracts 

7 or written statements of intent from potential 

8 customers, 

9 ‘‘(D) the fuels identified with respect to 

10 the gasification technology for such project will 

11 comprise at least 90 percent of the fuels re12 quired by the project for the production of 

13 transportation grade liquid fuels, 

14 ‘‘(E) the award recipient’s project team is 

15 competent in the construction and operation of 

16 the Fischer-Tropsch process, with preference 

17 given to those recipients with experience which 

18 demonstrates successful and reliable operations 

19 of such process, and 

20 ‘‘(F) the award recipient has met other cri21 teria established and published by the Sec22 retary. 

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

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


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1 of any property taken into account in determining the 

2 credit allowed under this section.’’. 

3 (c) CONFORMING AMENDMENTS.— 

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

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

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

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

8 after clause (iv) the following new clause: 

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

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

11 project under section 48C.’’. 

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

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

14 amended by inserting after the item relating to sec15 tion 48B the following new item: 

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

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

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

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

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

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

21 the Revenue Reconciliation Act of 1990). 


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1 SEC. 106. TEMPORARY EXPENSING FOR EQUIPMENT USED 

2 IN COAL-TO-LIQUID FUELS PROCESS. 

3 (a) IN GENERAL.—Part VI of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

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

6 ‘‘SEC. 179E. ELECTION TO EXPENSE CERTAIN COAL-TO-LIQ7 UID FUELS FACILITIES. 

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

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

10 process property as an expense which is not chargeable 

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

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

13 is incurred. 

14 ‘‘(b) ELECTION.— 

15 ‘‘(1) IN GENERAL.—An election under this sec16 tion for any taxable year shall be made on the tax17 payer’s return of the tax imposed by this chapter for 

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

19 manner as the Secretary may by regulations pre20 scribe. 

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

22 made under this section may not be revoked except 

23 with the consent of the Secretary. 

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

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1 ess property’ means any property located in the United 

2 States— 

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

4 to produce transportation grade liquid fuels from 

5 coal (including any property which allows for the 

6 capture, transportation, or sequestration of by-prod7 ucts resulting from such process, including carbon 

8 emissions), 

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

10 the taxpayer, 

11 ‘‘(3) the construction of which— 

12 ‘‘(A) except as provided in subparagraph 

13 (B), is subject to a binding construction con14 tract entered into after the date of the enact15 ment of this section and before January 1, 

16 2011, but only if there was no written binding 

17 construction contract entered into on or before 

18 such date of enactment, or 

19 ‘‘(B) in the case of self-constructed prop20 erty, began after the date of the enactment of 

21 this section and before January 1, 2011, and 

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

23 after the date of the enactment of this section and 

24 before January 1, 2016. 


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1 ‘‘(d) ELECTION TO ALLOCATE DEDUCTION TO COOP2 ERATIVE OWNER.—If— 

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

4 is an organization to which part I of subchapter T 

5 applies, and 

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

7 ownership interest in the taxpayer are organizations 

8 to which part I of subchapter T apply, 

9 the taxpayer may elect to allocate all or a portion of the 

10 deduction allowable under subsection (a) to such persons. 

11 Such allocation shall be equal to the person’s ratable share 

12 of the total amount allocated, determined on the basis of 

13 the person’s ownership interest in the taxpayer. The tax14 able income of the taxpayer shall not be reduced under 

15 section 1382 by reason of any amount to which the pre16 ceding sentence applies. 

17 ‘‘(e) BASIS REDUCTION.— 

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

19 if a deduction is allowed under this section with re20 spect to any qualified coal-to-liquid fuels process 

21 property, the basis of such property shall be reduced 

22 by the amount of the deduction so allowed. 

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

24 purposes of section 1245, the amount of the deduc25 tion allowable under subsection (a) with respect to 


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1 any property which is of a character subject to the 

2 allowance for depreciation shall be treated as a de3 duction allowed for depreciation under section 167. 

4 ‘‘(f) APPLICATION WITH OTHER DEDUCTIONS AND

5 CREDITS.— 

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

7 be allowed under any other provision of this chapter 

8 with respect to any expenditure with respect to 

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

10 the taxpayer. 

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

12 under section 38 with respect to any amount for 

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

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

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

16 unless such taxpayer files with the Secretary a report con17 taining such information with respect to the operation of 

18 the property of the taxpayer as the Secretary shall re19 quire.’’. 

20 (b) CONFORMING AMENDMENTS.— 

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

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

23 end of paragraph (36), by striking the period at the 

24 end of paragraph (37) and inserting ‘‘, and’’, and by 

25 adding at the end the following new paragraph: 


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

2 179E(e)(1).’’. 

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

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

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

6 (3) Section 263(a)(1) of such Code is amended 

7 by striking ‘‘or’’ at the end of subparagraph (J), by 

8 striking the period at the end of subparagraph (K) 

9 and inserting ‘‘, or’’, and by inserting after subpara10 graph (K) the following new subparagraph: 

11 ‘‘(L) expenditures for which a deduction is 

12 allowed under section 179E.’’. 

13 (4) Section 312(k)(3)(B) of such Code is 

14 amended by striking ‘‘or 179D’’ each place it ap15 pears in the heading and text and inserting ‘‘179D, 

16 or 179E’’. 

17 (5) The table of sections for part VI of sub18 chapter B of chapter 1 of such Code is amended by 

19 inserting after the item relating to section 179D the 

20 following new item: 

‘‘Sec. 179E. Election to expense certain coal-to-liquid fuels facilities.’’. 

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

22 this section shall apply to properties placed in service after 

23 the date of the enactment of this Act. 


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1 SEC. 107. MODIFICATION OF MULTIYEAR CONTRACT AU2 THORITY FOR PROCUREMENT OF FUEL DE3 RIVED FROM COAL, OIL SHALE, AND TAR 

4 SANDS. 

5 Subsection (d) of section 2398a of title 10, United 

6 States Code, is amended to read as follows: 

7 ‘‘(d) MULTIYEAR CONTRACT AUTHORITY.—Notwith8 standing any other provision of law, a contract or other 

9 agreement for the procurement of covered fuel under sub10 section (b) may be for any term, not in excess of 20 years, 

11 that the Secretary of Defense considers appropriate to as12 sist in the development of a domestic alternative liquid 

13 fuel.’’. 

14 SEC. 108. STRATEGIC PETROLEUM RESERVE. 

15 (a) DEVELOPMENT, OPERATION, AND MAINTENANCE

16 OF RESERVE.—Section 159 of the Energy Policy and Con17 servation Act (42 U.S.C. 6239) is amended— 

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

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

20 respectively; and 

21 (2) by inserting after subsection (b) (as redesig22 nated by paragraph (1)) the following: 

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

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

25 date of enactment of the Coal-to-Liquid Fuel Promotion 


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1 Act of 2006, the Secretary and the Secretary of Defense 

2 shall— 

3 ‘‘(1) conduct a study of the feasibility and suit4 ability of maintaining coal-to-liquid products in the 

5 Reserve; and 

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

7 Natural Resources and the Committee on Armed 

8 Services of the Senate and the Committee on Energy 

9 and Commerce and the Committee on Armed Serv10 ices of the House of Representatives a report de11 scribing the results of the study. 

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

13 soon as practicable after the date of enactment of the 

14 Coal-to-Liquid Fuel Promotion Act of 2006, the Secretary 

15 may construct 1 or more storage facilities— 

16 ‘‘(1) in the vicinity of pipeline infrastructure 

17 and at least 1 military base; but 

18 ‘‘(2) outside the boundaries of any State on the 

19 coast of the Gulf of Mexico.’’. 

20 (b) PETROLEUM PRODUCTS FOR STORAGE IN RE21 SERVE.—Section 160 of the Energy Policy and Conserva22 tion Act (42 U.S.C. 6240) is amended— 

23 (1) in subsection (a)— 

24 (A) in paragraph (1), by inserting a semi25 colon at the end; 


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

2 the end; 

3 (C) in paragraph (3), by striking the pe4 riod at the end and inserting ‘‘; and’’; and 

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

6 ‘‘(4) coal-to-liquid products (as defined in sec7 tion 2 of the Coal-to-Liquid Fuel Promotion Act of 

8 2006), as the Secretary determines to be appro9 priate, in a quantity not to exceed 20 percent of the 

10 total quantity of petroleum products in the Re11 serve.’’; 

12 (2) in subsection (b), by redesignating para13 graphs (3) through (5) as paragraphs (2) through 

14 (4), respectively; and 

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

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

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

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

19 amended— 

20 (1) in subsection (b)— 

21 (A) by redesignating paragraphs (2) and 

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

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

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

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


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

2 paragraph (1), by striking ‘‘section 160(f)’’ and in3 serting ‘‘section 160(e)’’. 

4 SEC. 109. AUTHORIZATION TO CONDUCT RESEARCH, DE5 VELOPMENT, TESTING, AND EVALUATION OF 

6 ASSURED DOMESTIC FUELS. 

7 Of the amount authorized to be appropriated for the 

8 Air Force for research, development, testing, and evalua9 tion, $10,000,000 may be made available for the Air Force 

10 Research Laboratory to continue support efforts to test, 

11 qualify, and procure synthetic fuels developed from coal 

12 for aviation jet use. 

13 PART II—CLEAN COAL POWER INITIATIVE 

14 SEC. 111. CLEAN COAL POWER INITIATIVE. 

15 (a) FUNDING.—Section 401 of the Energy Policy Act 

16 of 2005 (42 U.S.C. 15961) is amended by striking sub17 section (a) and inserting the following: 

18 ‘‘(a) CLEAN COAL POWER INITIATIVE.— 

19 ‘‘(1) IN GENERAL.—Not later than 30 days 

20 after the date of enactment of this Act, on October 

21 1, 2008, and on each October 1 thereafter through 

22 October 1, 2014, out of any funds in the Treasury 

23 not otherwise appropriated, the Secretary of the 

24 Treasury shall transfer to the Secretary to carry out 


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1 this subtitle $200,000,000, to remain available until 

2 expended. 

3 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec4 retary shall be entitled to receive, shall accept, and 

5 shall use to carry out this subtitle the funds trans6 ferred under paragraph (1), without further appro7 priation. ’’. 

8 (b) REPORT.—Section 403 of the Energy Policy Act 

9 of 2005 (42 U.S.C. 15963) is amended by striking ‘‘2014’’ 

10 and inserting ‘‘2015’’. 

11 PART III—INCENTIVES FOR INNOVATIVE 

12 TECHNOLOGIES 

13 SEC. 116. TECHNICAL CORRECTIONS. 

14 (a) TERMS AND CONDITIONS.—Section 1702 of the 

15 Energy Policy Act of 2005 (42 U.S.C. 16512) is amend16 ed— 

17 (1) in subsection (c), by striking ‘‘law,’’ and all 

18 that follows through ‘‘equal to’’ and inserting ‘‘law 

19 or unless the borrower requests a lesser amount, a 

20 guarantee by the Secretary shall be in an amount 

21 that is equal to the lesser of 100 percent or the loan 

22 amount or’’; and 

23 (2) in subsection (g)(4)(B)(ii), by striking ‘‘to 

24 secure the obligation’’ and inserting ‘‘by the borVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 rower to secure the obligation in order to reduce the 

2 cost of the obligation’’. 

3 (b) ELIGIBLE PROJECTS.—Section 1703(a)(2) of the 

4 Energy Policy Act of 2005 (42 U.S.C. 16513(a)(2)) is 

5 amended by striking ‘‘guarantee is issued’’ and inserting 

6 ‘‘first guarantee for the new or significantly improved 

7 technology is issued’’. 

8 Subtitle B—Refinery Permitting 

9 Process 

10 SEC. 121. REFINERY PERMITTING PROCESS. 

11 (a) SHORT TITLE.—This section may be cited as the 

12 ‘‘Gas Petroleum Refiner Improvement and Community 

13 Empowerment Act’’ or the ‘‘Gas PRICE Act’’. 

14 (b) 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— 

21 (i) an expansion of a refinery; 

22 (ii) a biorefinery; and 

23 (iii) any facility that produces a re24 newable fuel (as defined in section 


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

2 7545(o)(1)). 

3 (6) REFINERY EXPANSION.—The term ‘‘refin4 ery expansion’’ means a physical change in a refin5 ery that results in an increase in the capacity of the 

6 refinery. 

7 (7) REFINERY PERMITTING AGREEMENT.—The 

8 term ‘‘refinery permitting agreement’’ means an 

9 agreement entered into between the Administrator 

10 and a State or Indian tribe under subsection (d). 

11 (8) REFINERY PROJECT.—The term ‘‘refinery 

12 project’’ means a project for— 

13 (A) acquisition or development of a base 

14 realignment and closure site for use for a petro15 leum refinery; or 

16 (B) acquisition, development, rehabilita17 tion, expansion, or improvement of petroleum 

18 refining operations on a base realignment and 

19 closure site or in a community affected by a 

20 base realignment and closure site. 

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

22 the Secretary of Commerce. 

23 (10) STATE.—The term ‘‘State’’ means— 

24 (A) a State; 

25 (B) the District of Columbia; 


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1 (C) the Commonwealth of Puerto Rico; 

2 and 

3 (D) any other territory or possession of the 

4 United States. 

5 (c) ECONOMIC DEVELOPMENT ASSISTANCE TO EN6 COURAGE PETROLEUM-BASED REFINERY ACTIVITY ON

7 BRAC PROPERTY.— 

8 (1) PRIORITY.—Notwithstanding section 206 of 

9 the Public Works and Economic Development Act of 

10 1965 (42 U.S.C. 3146), in awarding funds made 

11 available to carry out section 209(c)(1) of that Act 

12 (42 U.S.C. 3149(c)(1)) pursuant to section 702 of 

13 that Act (42 U.S.C. 3232), the Secretary and the 

14 Economic Development Administration shall give 

15 priority to refinery projects. 

16 (2) FEDERAL SHARE.—Except as provided in 

17 paragraph (3)(C)(ii) and notwithstanding the Public 

18 Works and Economic Development Act of 1965 (42 

19 U.S.C. 3121 et seq.), the Federal share of a refinery 

20 project shall be 80 percent of the project cost. 

21 (3) ADDITIONAL AWARD.— 

22 (A) IN GENERAL.—The Secretary shall 

23 make an additional award in connection with a 

24 grant made to a recipient for a refinery project. 


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1 (B) AMOUNT.—The amount of an addi2 tional award shall be 10 percent of the amount 

3 of the grant for the refinery project. 

4 (C) USE.—An additional award under this 

5 paragraph shall be used— 

6 (i) to carry out any eligible purpose 

7 under the Public Works and Economic De8 velopment Act of 1965 (42 U.S.C. 3121 et 

9 seq.); 

10 (ii) notwithstanding section 204 of 

11 that Act (42 U.S.C. 3144), to pay up to 

12 100 percent of the cost of an eligible 

13 project or activity under that Act; or 

14 (iii) to meet the non-Federal share re15 quirements of that Act or any other Act. 

16 (D) NON-FEDERAL SOURCE.—For the pur17 pose of subparagraph (C)(iii), an additional 

18 award shall be treated as funds from a non19 Federal source. 

20 (E) FUNDING.—The Secretary shall use to 

21 carry out this paragraph any amounts made 

22 available for economic development assistance 

23 programs or under section 702 of that Act (42 

24 U.S.C. 3232). 


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1 (d) STREAMLINING OF REFINERY PERMITTING

2 PROCESS.— 

3 (1) IN GENERAL.—At the request of the Gov4 ernor of a State or the governing body of an Indian 

5 tribe, the Administrator shall enter into a refinery 

6 permitting agreement with the State or Indian tribe 

7 under which the process for obtaining all permits 

8 necessary for the construction and operation of a re9 finery shall be streamlined using a systematic inter10 disciplinary multimedia approach as provided in this 

11 section. 

12 (2) AUTHORITY OF ADMINISTRATOR.—Under a 

13 refinery permitting agreement— 

14 (A) the Administrator shall have authority, 

15 as applicable and necessary, to— 

16 (i) accept from a refiner a consoli17 dated application for all permits that the 

18 refiner is required to obtain to construct 

19 and operate a refinery; 

20 (ii) in consultation and cooperation 

21 with each Federal, State, or Indian tribal 

22 government agency that is required to 

23 make any determination to authorize the 

24 issuance of a permit, establish a schedule 

25 under which each agency shall— 


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1 (I) concurrently consider, to the 

2 maximum extent practicable, each de3 termination to be made; and 

4 (II) complete each step in the 

5 permitting process; and 

6 (iii) issue a consolidated permit that 

7 combines all permits issued under the 

8 schedule established under clause (ii); and 

9 (B) the Administrator shall provide to 

10 State and Indian tribal government agencies— 

11 (i) financial assistance in such 

12 amounts as the agencies reasonably require 

13 to hire such additional personnel as are 

14 necessary to enable the government agen15 cies to comply with the applicable schedule 

16 established under subparagraph (A)(ii); 

17 and 

18 (ii) technical, legal, and other assist19 ance in complying with the refinery permit20 ting agreement. 

21 (3) AGREEMENT BY THE STATE.—Under a re22 finery permitting agreement, a State or governing 

23 body of an Indian tribe shall agree that— 

24 (A) the Administrator shall have each of 

25 the authorities described in paragraph (2); and 


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1 (B) each State or Indian tribal government 

2 agency shall— 

3 (i) in accordance with State law, make 

4 such structural and operational changes in 

5 the agencies as are necessary to enable the 

6 agencies to carry out consolidated project7 wide permit reviews concurrently and in 

8 coordination with the Environmental Pro9 tection Agency and other Federal agencies; 

10 and 

11 (ii) comply, to the maximum extent 

12 practicable, with the applicable schedule 

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

14 (4) INTERDISCIPLINARY APPROACH.— 

15 (A) IN GENERAL.—The Administrator and 

16 a State or governing body of an Indian tribe 

17 shall incorporate an interdisciplinary approach, 

18 to the maximum extent practicable, in the de19 velopment, review, and approval of permits sub20 ject to this subsection. 

21 (B) OPTIONS.—Among other options, the 

22 interdisciplinary approach may include use of— 

23 (i) environmental management prac24 tices; and 

25 (ii) third party contractors. 


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1 (5) DEADLINES.— 

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

3 consolidated permit for the construction of a 

4 new refinery, the Administrator and the State 

5 or governing body of an Indian tribe shall ap6 prove or disapprove the consolidated permit not 

7 later than— 

8 (i) 360 days after the date of the re9 ceipt of the administratively complete ap10 plication for the consolidated permit; or 

11 (ii) on agreement of the applicant, the 

12 Administrator, and the State or governing 

13 body of the Indian tribe, 90 days after the 

14 expiration of the deadline established 

15 under clause (i). 

16 (B) EXPANSION OF EXISTING REFIN17 ERIES.—In the case of a consolidated permit 

18 for the expansion of an existing refinery, the 

19 Administrator and the State or governing body 

20 of an Indian tribe shall approve or disapprove 

21 the consolidated permit not later than— 

22 (i) 120 days after the date of the re23 ceipt of the administratively complete ap24 plication for the consolidated permit; or 


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1 (ii) on agreement of the applicant, the 

2 Administrator, and the State or governing 

3 body of the Indian tribe, 30 days after the 

4 expiration of the deadline established 

5 under clause (i). 

6 (6) FEDERAL AGENCIES.—Each Federal agency 

7 that is required to make any determination to au8 thorize the issuance of a permit shall comply with 

9 the applicable schedule established under paragraph 

10 (2)(A)(ii). 

11 (7) JUDICIAL REVIEW.—Any civil action for re12 view of any permit determination under a refinery 

13 permitting agreement shall be brought exclusively in 

14 the United States district court for the district in 

15 which the refinery is located or proposed to be lo16 cated. 

17 (8) EFFICIENT PERMIT REVIEW.—In order to 

18 reduce the duplication of procedures, the Adminis19 trator shall use State permitting and monitoring 

20 procedures to satisfy substantially equivalent Fed21 eral requirements under this title. 

22 (9) SEVERABILITY.—If 1 or more permits that 

23 are required for the construction or operation of a 

24 refinery are not approved on or before any deadline 

25 established under paragraph (5), the Administrator 


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1 may issue a consolidated permit that combines all 

2 other permits that the refiner is required to obtain 

3 other than any permits that are not approved. 

4 (10) SAVINGS.—Nothing in this subsection af5 fects the operation or implementation of otherwise 

6 applicable law regarding permits necessary for the 

7 construction and operation of a refinery. 

8 (11) CONSULTATION WITH LOCAL GOVERN9 MENTS.—Congress encourages the Administrator, 

10 States, and tribal governments to consult, to the 

11 maximum extent practicable, with local governments 

12 in carrying out this subsection. 

13 (12) AUTHORIZATION OF APPROPRIATIONS.— 

14 There are authorized to be appropriated such sums 

15 as are necessary to carry out this subsection. 

16 (13) EFFECT ON LOCAL AUTHORITY.—Nothing 

17 in this subsection affects— 

18 (A) the authority of a local government 

19 with respect to the issuance of permits; or 

20 (B) any requirement or ordinance of a 

21 local government (such as a zoning regulation). 

22 (e) EFFICIENCY.— 

23 (1) METHANE REDUCTION PROJECTS.— 

24 (A) IN GENERAL.—Not later than 180 

25 days after the date of enactment of this Act, 


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1 the Administrator shall solicit applications from 

2 eligible entities, as determined by the Adminis3 trator, for grants under the Natural Gas STAR 

4 Program under the Environmental Protection 

5 Agency to pay the Federal share of the cost of 

6 projects relating to the reduction of methane 

7 emissions in the oil and gas industries. 

8 (B) PROJECT INCLUSIONS.—To receive a 

9 grant under subparagraph (A), the application 

10 of the eligible entity shall include— 

11 (i) an identification of 1 or more tech12 nologies used to achieve a reduction in the 

13 emission of methane; and 

14 (ii) an analysis of the cost-effective15 ness of a technology described in clause (i). 

16 (C) LIMITATION.—A grant to an eligible 

17 entity under this paragraph shall not exceed 

18 $50,000. 

19 (D) FEDERAL SHARE.—The Federal share 

20 of the cost of a project under this paragraph 

21 shall not exceed 50 percent. 

22 (E) AUTHORIZATION OF APPROPRIA23 TIONS.—There is authorized to be appropriated 

24 to carry out this paragraph $1,000,000 for the 

25 period of fiscal years 2006 through 2010. 


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1 (2) EFFICIENCY PROMOTION WORKSHOPS.— 

2 (A) IN GENERAL.—The Administrator, in 

3 conjunction with the Interstate Oil and Gas 

4 Compact Commission, shall conduct a series of 

5 technical workshops to provide information to 

6 officials in oil- and gas-producing States relat7 ing to methane emission reduction techniques. 

8 (B) AUTHORIZATION OF APPROPRIA9 TIONS.—There is authorized to be appropriated 

10 to carry out this paragraph $1,000,000 for the 

11 period of fiscal years 2006 through 2010. 

12 (f) FUEL EMERGENCY WAIVERS.—Section 

13 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 

14 7545(c)(4)(C)) (as amended by section 1541 of the En15 ergy Policy Act of 2005 (Public Law 109–58; 119 Stat. 

16 1106)) is amended— 

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

18 clause (vi); 

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

20 clause (vii); and 

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

22 ‘‘(v) A State shall be held harmless and not be re23 quired to revise its State implementation plan under sec24 tion 110 to account for the emissions from a waiver grant25 ed by the Administrator under clause (ii).’’. 


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1 (g) 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 of the Senate and the Committee on Energy and 

11 Commerce of the House of Representatives— 

12 (A) not later than October 1, 2007, an in13 terim report on actions taken to carry out this 

14 subsection; and 

15 (B) not later than December 1, 2008, a 

16 final report on actions taken to carry out this 

17 subsection. 

18 Subtitle C—Oil and Gas 

19 PART I—DEEP OCEAN ENERGY RESOURCES 

20 SEC. 131. SHORT TITLE. 

21 This part may be cited as the ‘‘Deep Ocean Energy 

22 Resources Act of 2006’’. 

23 SEC. 132. POLICY. 

24 It is the policy of the United States that— 


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1 (1) the United States is blessed with abundant 

2 energy resources on the outer Continental Shelf and 

3 has developed a comprehensive framework of envi4 ronmental laws and regulations and fostered the de5 velopment of state-of-the-art technology that allows 

6 for the responsible development of these resources 

7 for the benefit of its citizenry; 

8 (2) adjacent States are required by the cir9 cumstances to commit significant resources in sup10 port of exploration, development, and production ac11 tivities for mineral resources on the outer Conti12 nental Shelf, and it is fair and proper for a portion 

13 of the receipts from such activities to be shared with 

14 Adjacent States and their local coastal governments; 

15 (3) the existing laws governing the leasing and 

16 production of the mineral resources of the outer 

17 Continental Shelf have reduced the production of 

18 mineral resources, have preempted Adjacent States 

19 from being sufficiently involved in the decisions re20 garding the allowance of mineral resource develop21 ment, and have been harmful to the national inter22 est; 

23 (4) the national interest is served by granting 

24 the Adjacent States more options related to whether 


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1 or not mineral leasing should occur in the outer 

2 Continental Shelf within their Adjacent Zones; 

3 (5) it is not reasonably foreseeable that explo4 ration of a leased tract located more than 25 miles 

5 seaward of the coastline, development and produc6 tion of a natural gas discovery located more than 25 

7 miles seaward of the coastline, or development and 

8 production of an oil discovery located more than 50 

9 miles seaward of the coastline will adversely affect 

10 resources near the coastline; 

11 (6) transportation of oil from a leased tract 

12 might reasonably be foreseen, under limited cir13 cumstances, to have the potential to adversely affect 

14 resources near the coastline if the oil is within 50 

15 miles of the coastline, but such potential to adversely 

16 affect such resources is likely no greater, and prob17 ably less, than the potential impacts from tanker 

18 transportation because tanker spills usually involve 

19 large releases of oil over a brief period of time; and 

20 (7) among other bodies of inland waters, the 

21 Great Lakes, Long Island Sound, Delaware Bay, 

22 Chesapeake Bay, Albemarle Sound, San Francisco 

23 Bay, and Puget Sound are not part of the outer 

24 Continental Shelf, and are not subject to leasing by 

25 the Federal Government for the exploration, developVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 ment, and production of any mineral resources that 

2 might lie beneath them. 

3 SEC. 133. DEFINITIONS UNDER THE OUTER CONTINENTAL 

4 SHELF LANDS ACT. 

5 Section 2 of the Outer Continental Shelf Lands Act 

6 (43 U.S.C. 1331) is amended— 

7 (1) in subsection (a), by inserting after ‘‘con8 trol’’ the following: ‘‘or lying within the United 

9 States exclusive economic zone adjacent to the terri10 tories of the United States’’; 

11 (2) by striking the semicolon at the end of each 

12 of subsections (a) through (o) and inserting a pe13 riod; 

14 (3) by amending subsection (f) to read as fol15 lows: 

16 ‘‘(f) The term ‘affected State’ means the Adjacent 

17 State.’’; 

18 (4) by striking ‘‘; and’’ at the end of subsection 

19 (p) and inserting a period; and 

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

21 ‘‘(r) The term ‘Adjacent State’ means, with respect 

22 to any program, plan, lease sale, leased tract or other ac23 tivity, proposed, conducted, or approved pursuant to the 

24 provisions of this Act, any State the laws of which are 

25 declared, pursuant to section 4(a)(2), to be the law of the 


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1 United States for the portion of the outer Continental 

2 Shelf on which such program, plan, lease sale, leased tract, 

3 or activity appertains or is, or is proposed to be, con4 ducted. For purposes of this subsection, the term ‘State’ 

5 includes Puerto Rico and the other territories of the 

6 United States. 

7 ‘‘(s) The term ‘Adjacent Zone’ means, with respect 

8 to any program, plan, lease sale, leased tract, or other ac9 tivity, proposed, conducted, or approved pursuant to the 

10 provisions of this Act, the portion of the outer Continental 

11 Shelf for which the laws of a particular Adjacent State 

12 are declared, pursuant to section 4(a)(2), to be the law 

13 of the United States. 

14 ‘‘(t) The term ‘miles’ means statute miles. 

15 ‘‘(u) The term ‘coastline’ has the same meaning as 

16 the term ‘coast line’ as defined in section 2(c) of the Sub17 merged Lands Act (43 U.S.C. 1301(c)). 

18 ‘‘(v) The term ‘Neighboring State’ means a coastal 

19 State having a common boundary at the coastline with the 

20 Adjacent State.’’. 

21 SEC. 134. DETERMINATION OF ADJACENT ZONES AND 

22 PLANNING AREAS. 

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

24 Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the 

25 first sentence by striking ‘‘, and the President’’ and all 


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1 that follows through the end of the sentence and inserting 

2 the following: ‘‘. The lines extending seaward and defining 

3 each State’s Adjacent Zone, and each OCS Planning Area, 

4 are as indicated on the maps for each outer Continental 

5 Shelf region entitled ‘Alaska OCS Region State Adjacent 

6 Zone and OCS Planning Areas’, ‘Pacific OCS Region 

7 State Adjacent Zones and OCS Planning Areas’, ‘Gulf of 

8 Mexico OCS Region State Adjacent Zones and OCS Plan9 ning Areas’, and ‘Atlantic OCS Region State Adjacent 

10 Zones and OCS Planning Areas’, all of which are dated 

11 September 2005 and on file in the Office of the Director, 

12 Minerals Management Service.’’. 

13 SEC. 135. ADMINISTRATION OF LEASING. 

14 Section 5 of the Outer Continental Shelf Lands Act 

15 (43 U.S.C. 1334) is amended by adding at the end the 

16 following: 

17 ‘‘(k) VOLUNTARY PARTIAL RELINQUISHMENT OF A

18 LEASE.—Any lessee of a producing lease may relinquish 

19 to the Secretary any portion of a lease that the lessee has 

20 no interest in producing and that the Secretary finds is 

21 geologically prospective. In return for any such relinquish22 ment, the Secretary shall provide to the lessee a royalty 

23 incentive for the portion of the lease retained by the lessee, 

24 in accordance with regulations promulgated by the Sec25 retary to carry out this subsection. The Secretary shall 


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1 publish final regulations implementing this subsection 

2 within 1 year after the date of the enactment of the Deep 

3 Ocean Energy Resources Act of 2006. 

4 ‘‘(l) NATURAL GAS LEASE REGULATIONS.—Not later 

5 than July 1, 2007, the Secretary shall publish a final regu6 lation that shall— 

7 ‘‘(1) establish procedures for entering into nat8 ural gas leases; 

9 ‘‘(2) ensure that natural gas leases are only 

10 available for tracts on the outer Continental Shelf 

11 that are wholly within 100 miles of the coastline 

12 within an area withdrawn from disposition by leas13 ing on the day after the date of enactment of the 

14 Deep Ocean Energy Resources Act of 2006; 

15 ‘‘(3) provide that natural gas leases shall con16 tain the same rights and obligations established for 

17 oil and gas leases, except as otherwise provided in 

18 the Deep Ocean Energy Resources Act of 2006; 

19 ‘‘(4) provide that, in reviewing the adequacy of 

20 bids for natural gas leases, the value of any crude 

21 oil estimated to be contained within any tract shall 

22 be excluded; 

23 ‘‘(5) provide that any crude oil produced from 

24 a well and reinjected into the leased tract shall not 

25 be subject to payment of royalty, and that the SecVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 retary shall consider, in setting the royalty rates for 

2 a natural gas lease, the additional cost to the lessee 

3 of not producing any crude oil; and 

4 ‘‘(6) provide that any Federal law that applies 

5 to an oil and gas lease on the outer Continental 

6 Shelf shall apply to a natural gas lease unless other7 wise clearly inapplicable.’’. 

8 SEC. 136. GRANT OF LEASES BY SECRETARY. 

9 (a) IN GENERAL.—Section 8 of the Outer Conti10 nental Shelf Lands Act (43 U.S.C. 1337) is amended— 

11 (1) in subsection (a)— 

12 (A) in paragraph (1), by inserting after 

13 the first sentence the following: ‘‘Further, the 

14 Secretary may grant natural gas leases in a 

15 manner similar to the granting of oil and gas 

16 leases and under the various bidding systems 

17 available for oil and gas leases.’’; 

18 (B) in paragraph (3)— 

19 (i) by striking subparagraph (A) and 

20 redesignating subparagraphs (B) and (C) 

21 as subparagraphs (A) and (B), respec22 tively; and 

23 (ii) in subparagraph (A) (as redesig24 nated by clause (i)) by striking ‘‘In the 

25 Western’’ and all that follows through 


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1 ‘‘Alaska, the Secretary’’ and inserting 

2 ‘‘The Secretary’’; 

3 (2) by adding at the end of subsection (b) the 

4 following: 

5 ‘‘The Secretary may issue more than 1 lease for a given 

6 tract if each lease applies to a separate and distinct range 

7 of vertical depths, horizontal surface area, or a combina8 tion of the 2. The Secretary may issue regulations that 

9 the Secretary determines are necessary to manage such 

10 leases consistent with the purposes of this Act.’’; 

11 (3) in subsection (g)— 

12 (A) by striking paragraphs (1), (2), (4), 

13 (5), (6), and (7); and 

14 (B) in paragraph (3)— 

15 (i) by striking the last sentence; and 

16 (ii) by striking ‘‘(3)’’; 

17 (4) in subsection (p)(2), by striking subpara18 graph (B) and inserting the following: 

19 ‘‘(B) The Secretary shall provide for the pay20 ment to coastal states, and their local coastal gov21 ernments, of 75 percent of Federal receipts from 

22 projects authorized under this section located par23 tially or completely within the area extending sea24 ward of State submerged lands out to 4 marine 

25 leagues from the coastline, and the payment to 


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1 coastal states of 50 percent of the receipts from 

2 projects completely located in the area more than 4 

3 marine leagues from the coastline. Payments shall 

4 be based on a formula established by the Secretary 

5 by rulemaking no later than 180 days after the date 

6 of the enactment of the Deep Ocean Energy Re7 sources Act of 2006 that provides for equitable dis8 tribution, based on proximity to the project, among 

9 coastal states that have coastline that is located 

10 within 200 miles of the geographic center of the 

11 project.’’; and 

12 (5) by adding at the end the following: 

13 ‘‘(q) NATURAL GAS LEASES.— 

14 ‘‘(1) RIGHT TO PRODUCE NATURAL GAS.—A 

15 lessee of a natural gas lease shall have the right to 

16 produce the natural gas from a field on a natural 

17 gas leased tract if the Secretary estimates that the 

18 discovered field has at least 40 percent of the eco19 nomically recoverable Btu content of the field con20 tained within natural gas and such natural gas is ec21 onomical to produce. 

22 ‘‘(2) CRUDE OIL.—A lessee of a natural gas 

23 lease may not produce crude oil from the lease. 

24 ‘‘(3) ESTIMATES OF BTU CONTENT.—The Sec25 retary shall make estimates of the natural gas Btu 


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1 content of discovered fields on a natural gas lease 

2 only after the completion of at least 1 exploration 

3 well, the data from which has been tied to the re4 sults of a three-dimensional seismic survey of the 

5 field. The Secretary may not require the lessee to 

6 further delineate any discovered field prior to mak7 ing such estimates. 

8 ‘‘(4) DEFINITION OF NATURAL GAS.—For pur9 poses of a natural gas lease, the term ‘natural gas’ 

10 means natural gas and all substances produced in 

11 association with gas, including hydrocarbon liquids 

12 (other than crude oil) that are obtained by the con13 densation of hydrocarbon vapors and separate out in 

14 liquid form from the produced gas stream. 

15 ‘‘(r) REMOVAL OF RESTRICTIONS ON JOINT BIDDING

16 IN CERTAIN AREAS OF THE OUTER CONTINENTAL

17 SHELF.—Restrictions on joint bidders shall no longer 

18 apply to tracts located in the Alaska OCS Region. Such 

19 restrictions shall not apply to tracts in other OCS regions 

20 determined to be ‘frontier tracts’ or otherwise ‘high cost 

21 tracts’ under final regulations that shall be published by 

22 the Secretary by not later than 1 year after the date of 

23 the enactment of the Deep Ocean Energy Resources Act 

24 of 2006. 


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1 ‘‘(s) ROYALTY SUSPENSION PROVISIONS.—The Sec2 retary shall agree to a request by any lessee to amend 

3 any lease issued for Central and Western Gulf of Mexico 

4 tracts during the period of December 1, 1995, through 

5 December 31, 2000, to incorporate price thresholds appli6 cable to royalty suspension provisions, or amend existing 

7 price thresholds, in the amount of $40.50 per barrel (2006 

8 dollars) for oil and for natural gas of $6.75 per million 

9 Btu (2006 dollars). Any amended lease shall impose the 

10 new or revised price thresholds effective October 1, 2005. 

11 Existing lease provisions shall prevail through September 

12 30, 2005. After the date of the enactment of the Deep 

13 Ocean Energy Resources Act of 2006, price thresholds 

14 shall apply to any royalty suspension volumes granted by 

15 the Secretary. Unless otherwise set by Secretary by regu16 lation or for a particular lease sale, the price thresholds 

17 shall be $40.50 for oil (2006 dollars) and $6.75 for nat18 ural gas (2006 dollars). 

19 ‘‘(t) ROYALTY RATE FOR OIL AND GAS OR NATURAL

20 GAS LEASES ON THE OUTER CONTINENTAL SHELF.— 

21 After the date of the enactment of the Deep Ocean Energy 

22 Resources Act of 2006, the base royalty rate for new oil 

23 and gas or natural gas leases on the outer Continental 

24 Shelf shall be the same for all leased tracts. 

25 ‘‘(u) CONSERVATION OF RESOURCES FEES.— 


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1 ‘‘(1) Not later than 1 year after the date of the 

2 enactment of the Deep Ocean Energy Resources Act 

3 of 2006, the Secretary by regulation shall establish 

4 a conservation of resources fee for producing leases 

5 that will apply to new and existing leases which shall 

6 be set at $9 per barrel for oil and $1.25 per million 

7 Btu for gas. This fee shall only apply to leases in 

8 production located in more than 200 meters of water 

9 for which royalties are not being paid when prices 

10 exceed $40.50 per barrel for oil and $6.75 per mil11 lion Btu for natural gas in 2006, dollars. This fee 

12 shall apply to production from and after October 1, 

13 2005, and shall be treated as offsetting receipts. 

14 ‘‘(2) Not later than 1 year after the date of the 

15 enactment of the Deep Ocean Energy Resources Act 

16 of 2006, the Secretary by regulation shall establish 

17 a conservation of resources fee for nonproducing 

18 leases that will apply to new and existing leases 

19 which shall be set at not less than $1.00 nor more 

20 than $4.00 per acre per year. This fee shall apply 

21 from and after October 1, 2005, and shall be treated 

22 as offsetting receipts.’’. 

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

24 subsection (a)(3) take effect on October 1, 2006. 


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1 SEC. 137. DISPOSITION OF RECEIPTS. 

2 Section 9 of the Outer Continental Shelf Lands Act 

3 (43 U.S.C. 1338) is amended— 

4 (1) by striking ‘‘All rentals’’ and inserting the 

5 following: 

6 ‘‘(a) IN GENERAL.—All rentals’’; 

7 (2) in subsection (a) (as designated by para8 graph (1)) by inserting ‘‘, if not paid as otherwise 

9 provided in this title’’ after ‘‘receipts’’; and 

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

11 ‘‘(b) TREATMENT OF OCS RECEIPTS FROM TRACTS

12 COMPLETELY WITHIN 100 MILES OF THE COASTLINE.— 

13 ‘‘(1) DEPOSIT.—The Secretary shall deposit 

14 into a separate account in the Treasury the portion 

15 of OCS Receipts for each fiscal year that will be 

16 shared under paragraphs (2), (3), and (4). 

17 ‘‘(2) PHASED-IN RECEIPTS SHARING.— 

18 ‘‘(A) Beginning October 1, 2005, the Sec19 retary shall share OCS Receipts derived from 

20 the following areas: 

21 ‘‘(i) Lease tracts located on portions 

22 of the Gulf of Mexico OCS Region com23 pletely beyond 4 marine leagues from any 

24 coastline and completely within 100 miles 

25 of any coastline that are available for leas26 ing under the 2002–2007 5-Year Oil and 


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1 Gas Leasing Program in effect prior to the 

2 date of the enactment of the Deep Ocean 

3 Energy Resources Act of 2006. 

4 ‘‘(ii) Lease tracts in production prior 

5 to October 1, 2005, completely beyond 4 

6 marine leagues from any coastline and 

7 completely within 100 miles of any coast8 line located on portions of the OCS that 

9 were not available for leasing under the 

10 2002–2007 5-Year OCS Oil and Gas Leas11 ing Program in effect prior to the date of 

12 the enactment of the Deep Ocean Energy 

13 Resources Act of 2006. 

14 ‘‘(iii) Lease tracts for which leases are 

15 issued prior to October 1, 2005, located in 

16 the Alaska OCS Region completely beyond 

17 4 marine leagues from any coastline and 

18 completely within 100 miles of the coast19 line. 

20 ‘‘(B) The Secretary shall share the fol21 lowing percentages of OCS Receipts from the 

22 leases described in subparagraph (A) derived 

23 during the fiscal year indicated: 

24 ‘‘(i) For fiscal year 2006, 6.0 percent. 


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1 ‘‘(ii) For fiscal year 2007, 7.0 per2 cent. 

3 ‘‘(iii) For fiscal year 2008, 8.0 per4 cent. 

5 ‘‘(iv) For fiscal year 2009, 9.0 per6 cent. 

7 ‘‘(v) For fiscal year 2010, 12.0 per8 cent. 

9 ‘‘(vi) For fiscal year 2011, 15.0 per10 cent. 

11 ‘‘(vii) For fiscal year 2012, 18.0 per12 cent. 

13 ‘‘(viii) For fiscal year 2013, 21.0 per14 cent. 

15 ‘‘(ix) For fiscal year 2014, 24.0 per16 cent. 

17 ‘‘(x) For fiscal year 2015, 27.0 per18 cent. 

19 ‘‘(xi) For fiscal year 2016, 30.0 per20 cent. 

21 ‘‘(xii) For fiscal year 2017, 33.0 per22 cent. 

23 ‘‘(xiii) For fiscal year 2018, 36.0 per24 cent. 


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1 ‘‘(xiv) For fiscal year 2019, 39.0 per2 cent. 

3 ‘‘(xv) For fiscal year 2020, 42.0 per4 cent. 

5 ‘‘(xvi) For fiscal year 2021, 45.0 per6 cent. 

7 ‘‘(xvii) For fiscal year 2022 and each 

8 subsequent fiscal year, 50.0 percent. 

9 ‘‘(C) The provisions of this paragraph shall 

10 not apply to leases that could not have been 

11 issued but for section 5(k) of this Act or the 

12 amendment made by section 136(a)(2) of the 

13 Deep Ocean Energy Resources Act of 2006. 

14 ‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin15 ning October 1, 2005, the Secretary shall share 50 

16 percent of OCS Receipts derived from all leases lo17 cated completely beyond 4 marine leagues from any 

18 coastline and completely within 100 miles of any 

19 coastline not included within the provisions of para20 graph (2). 

21 ‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN

22 4 MARINE LEAGUES OF ANY COASTLINE.—Beginning 

23 October 1, 2005, the Secretary shall share 75 per24 cent of OCS Receipts derived from all leases located 


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•S 3926 IS

1 completely or partially within 4 marine leagues from 

2 any coastline. 

3 ‘‘(5) ALLOCATIONS.—The Secretary shall allo4 cate the OCS Receipts deposited into the separate 

5 account established by paragraph (1) that are 

6 shared under paragraphs (2), (3), and (4) as follows: 

7 ‘‘(A) BONUS BIDS.—Deposits derived from 

8 bonus bids from a leased tract, including inter9 est thereon, shall be allocated at the end of 

10 each fiscal year as follows: 

11 ‘‘(i) 85 percent to the Adjacent State. 

12 ‘‘(ii) 5 percent into the Treasury, 

13 which shall be allocated to the account es14 tablished by section 144 of the Deep Ocean 

15 Energy Resources Act of 2006. 

16 ‘‘(iii) 5 percent into the account es17 tablished by section 153 of the Deep Ocean 

18 Energy Resources Act of 2006. 

19 ‘‘(iv) 5 percent into the account estab20 lished by section 156 of the Deep Ocean 

21 Energy Resources Act of 2006. 

22 ‘‘(B) ROYALTIES.—Deposits derived from 

23 royalties from a leased tract, including interest 

24 thereon, shall be allocated at the end of each 

25 fiscal year as follows: 


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•S 3926 IS

1 ‘‘(i) 85 percent to the Adjacent State 

2 and any other producing State or States 

3 with a leased tract within its Adjacent 

4 Zone within 100 miles of its coastline that 

5 generated royalties during the fiscal year, 

6 if the other producing or States have a 

7 coastline point within 300 miles of any 

8 portion of the leased tract, in which case 

9 the amount allocated for the leased tract 

10 shall be— 

11 ‘‘(I) one-third to the Adjacent 

12 State; and 

13 ‘‘(II) two-thirds to each pro14 ducing State, including the Adjacent 

15 State, inversely proportional to the 

16 distance between the nearest point on 

17 the coastline of the producing State 

18 and the geographic center of the 

19 leased tract. 

20 ‘‘(ii) 5 percent into the Treasury, 

21 which shall be allocated to the account es22 tablished by section 144 of the Deep Ocean 

23 Energy Resources Act of 2006. 


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1 ‘‘(iii) 5 percent into the account es2 tablished by section 153 of the Deep Ocean 

3 Energy Resources Act of 2006. 

4 ‘‘(iv) 5 percent into the account estab5 lished by section 156 of the Deep Ocean 

6 Energy Resources Act of 2006. 

7 ‘‘(c) TREATMENT OF OCS RECEIPTS FROM TRACTS

8 PARTIALLY OR COMPLETELY BEYOND 100 MILES OF THE

9 COASTLINE.— 

10 ‘‘(1) DEPOSIT.—The Secretary shall deposit 

11 into a separate account in the Treasury the portion 

12 of OCS Receipts for each fiscal year that will be 

13 shared under paragraphs (2) and (3). 

14 ‘‘(2) PHASED-IN RECEIPTS SHARING.— 

15 ‘‘(A) Beginning October 1, 2005, the Sec16 retary shall share OCS Receipts derived from 

17 the following areas: 

18 ‘‘(i) Lease tracts located on portions 

19 of the Gulf of Mexico OCS Region partially 

20 or completely beyond 100 miles of any 

21 coastline that were available for leasing 

22 under the 2002–2007 5-Year Oil and Gas 

23 Leasing Program in effect prior to the 

24 date of enactment of the Deep Ocean En25 ergy Resources Act of 2006. 


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1 ‘‘(ii) Lease tracts in production prior 

2 to October 1, 2005, partially or completely 

3 beyond 100 miles of any coastline located 

4 on portions of the OCS that were not 

5 available for leasing under the 2002–2007 

6 5-Year OCS Oil and Gas Leasing Program 

7 in effect prior to the date of enactment of 

8 the Deep Ocean Energy Resources Act of 

9 2006. 

10 ‘‘(iii) Lease tracts for which leases are 

11 issued prior to October 1, 2005, located in 

12 the Alaska OCS Region partially or com13 pletely beyond 100 miles of the coastline. 

14 ‘‘(B) The Secretary shall share the fol15 lowing percentages of OCS Receipts from the 

16 leases described in subparagraph (A) derived 

17 during the fiscal year indicated: 

18 ‘‘(i) For fiscal year 2006, 6.0 percent. 

19 ‘‘(ii) For fiscal year 2007, 7.0 per20 cent. 

21 ‘‘(iii) For fiscal year 2008, 8.0 per22 cent. 

23 ‘‘(iv) For fiscal year 2009, 9.0 per24 cent. 


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1 ‘‘(v) For fiscal year 2010, 12.0 per2 cent. 

3 ‘‘(vi) For fiscal year 2011, 15.0 per4 cent. 

5 ‘‘(vii) For fiscal year 2012, 18.0 per6 cent. 

7 ‘‘(viii) For fiscal year 2013, 21.0 per8 cent. 

9 ‘‘(ix) For fiscal year 2014, 24.0 per10 cent. 

11 ‘‘(x) For fiscal year 2015, 27.0 per12 cent. 

13 ‘‘(xi) For fiscal year 2016, 30.0 per14 cent. 

15 ‘‘(xii) For fiscal year 2017, 33.0 per16 cent. 

17 ‘‘(xiii) For fiscal year 2018, 36.0 per18 cent. 

19 ‘‘(xiv) For fiscal year 2019, 39.0 per20 cent. 

21 ‘‘(xv) For fiscal year 2020, 42.0 per22 cent. 

23 ‘‘(xvi) For fiscal year 2021, 45.0 per24 cent. 


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1 ‘‘(xvii) For fiscal year 2022 and each 

2 subsequent fiscal year, 50.0 percent. 

3 ‘‘(C) The provisions of this paragraph shall 

4 not apply to leases that could not have been 

5 issued but for section 5(k) of this Act or the 

6 amendment made by section 136(a)(2) of the 

7 Deep Ocean Energy Resources Act of 2006. 

8 ‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin9 ning October 1, 2005, the Secretary shall share 50 

10 percent of OCS Receipts derived on and after Octo11 ber 1, 2005, from all leases located partially or com12 pletely beyond 100 miles of any coastline not in13 cluded within the provisions of paragraph (2). 

14 ‘‘(4) ALLOCATIONS.—The Secretary shall allo15 cate the OCS Receipts deposited into the separate 

16 account established by paragraph (1) that are 

17 shared under paragraphs (2) and (3) as follows: 

18 ‘‘(A) BONUS BIDS.—Deposits derived from 

19 bonus bids from a leased tract, including inter20 est thereon, shall be allocated at the end of 

21 each fiscal year as follows: 

22 ‘‘(i) 85 percent to the Adjacent State. 

23 ‘‘(ii) 5 percent into the Treasury, 

24 which shall be allocated to the account esVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 tablished by section 144 of the Deep Ocean 

2 Energy Resources Act of 2006. 

3 ‘‘(iii) 5 percent into the account es4 tablished by section 153 of the Deep Ocean 

5 Energy Resources Act of 2006. 

6 ‘‘(iv) 5 percent into the account estab7 lished by section 156 of the Deep Ocean 

8 Energy Resources Act of 2006. 

9 ‘‘(B) ROYALTIES.—Deposits derived from 

10 royalties from a leased tract, including interest 

11 thereon, shall be allocated at the end of each 

12 fiscal year as follows: 

13 ‘‘(i) 85 percent to the Adjacent State 

14 and any other producing State or States 

15 with a leased tract within its Adjacent 

16 Zone partially or completely beyond 100 

17 miles of its coastline that generated royal18 ties during the fiscal year, if the other pro19 ducing State or States have a coastline 

20 point within 300 miles of any portion of 

21 the leased tract, in which case the amount 

22 allocated for the leased tract shall be— 

23 ‘‘(I) one-third to the Adjacent 

24 State; and 


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1 ‘‘(II) two-thirds to each pro2 ducing State, including the Adjacent 

3 State, inversely proportional to the 

4 distance between the nearest point on 

5 the coastline of the producing State 

6 and the geographic center of the 

7 leased tract. 

8 ‘‘(ii) 5 percent into the account estab9 lished by section 144 of the Deep Ocean 

10 Energy Resources Act of 2006. 

11 ‘‘(iii) 5 percent into the account es12 tablished by section 153 of the Deep Ocean 

13 Energy Resources Act of 2006. 

14 ‘‘(iv) 5 percent into the account estab15 lished by section 156 of the Deep Ocean 

16 Energy Resources Act of 2006. 

17 ‘‘(d) TRANSMISSION OF ALLOCATIONS.— 

18 ‘‘(1) IN GENERAL.—Not later than 90 days 

19 after the end of each fiscal year, the Secretary shall 

20 transmit— 

21 ‘‘(A) to each State 60 percent of such 

22 State’s allocations under subsections 

23 (b)(5)(A)(i), (b)(5)(B)(i), (c)(4)(A)(i), and 

24 (c)(4)(B)(i) for the immediate prior fiscal year; 


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1 ‘‘(B) to coastal county-equivalent and mu2 nicipal political subdivisions of such State a 

3 total of 40 percent of such State’s allocations 

4 under subsections (b)(5)(A)(i), (b)(5)(B)(i), 

5 (c)(4)(A)(i), and (c)(4)(B)(i), together with all 

6 accrued interest thereon; and 

7 ‘‘(C) the remaining allocations under sub8 sections (b)(5) and (c)(4), together with all ac9 crued interest thereon. 

10 ‘‘(2) ALLOCATIONS TO COASTAL COUNTY11 EQUIVALENT POLITICAL SUBDIVISIONS.— 

12 ‘‘(A) IN GENERAL.—The Secretary shall 

13 make an initial allocation of the OCS Receipts 

14 to be shared under paragraph (1)(B) as follows: 

15 ‘‘(i) 25 percent shall be allocated to 

16 coastal county-equivalent political subdivi17 sions that are completely more than 25 

18 miles landward of the coastline and at 

19 least a part of which lies not more than 75 

20 miles landward from the coastline, with the 

21 allocation among such coastal county22 equivalent political subdivisions based on 

23 population. 

24 ‘‘(ii) 75 percent shall be allocated to 

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1 sions that are completely or partially less 

2 than 25 miles landward of the coastline, 

3 with the allocation among such coastal 

4 county-equivalent political subdivisions to 

5 be further allocated as follows: 

6 ‘‘(I) 25 percent shall be allocated 

7 based on the ratio of such coastal 

8 county-equivalent political subdivi9 sion’s population to the coastal popu10 lation of all coastal county-equivalent 

11 political subdivisions in the State. 

12 ‘‘(II) 25 percent shall be allo13 cated based on the ratio of such coast14 al county-equivalent political subdivi15 sion’s coastline miles to the coastline 

16 miles of all coastal county-equivalent 

17 political subdivisions in the State as 

18 calculated by the Secretary. In such 

19 calculations, coastal county-equivalent 

20 political subdivisions without a coast21 line shall be considered to have 50 

22 percent of the average coastline miles 

23 of the coastal county-equivalent polit24 ical subdivisions that do have coast25 lines. 


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1 ‘‘(III) 25 percent shall be allo2 cated to all coastal county-equivalent 

3 political subdivisions having a coast4 line point within 300 miles of the 

5 leased tract for which OCS Receipts 

6 are being shared based on a formula 

7 that allocates the funds based on such 

8 coastal county-equivalent political sub9 division’s relative distance from the 

10 leased tract. 

11 ‘‘(IV) 25 percent shall be allo12 cated to all coastal county-equivalent 

13 political subdivisions having a coast14 line point within 300 miles of the 

15 leased tract for which OCS Receipts 

16 are being shared based on the relative 

17 level of outer Continental Shelf oil 

18 and gas activities in a coastal political 

19 subdivision compared to the level of 

20 outer Continental Shelf activities in 

21 all coastal political subdivisions in the 

22 State. 

23 ‘‘(B) DEFINITION OF OUTER CONTI24 NENTAL SHELF OIL AND GAS ACTIVITIES.—The 

25 Secretary shall define the term ‘outer ContiVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 nental Shelf oil and gas activities’ for purposes 

2 of this subparagraph to include— 

3 ‘‘(i) construction of vessels, drillships, 

4 and platforms involved in exploration, pro5 duction, and development on the outer 

6 Continental Shelf; 

7 ‘‘(ii) support and supply bases, ports, 

8 and related activities; 

9 ‘‘(iii) offices of geologists, geo10 physicists, engineers, and other profes11 sionals involved in support of exploration, 

12 production, and development of oil and gas 

13 on the outer Continental Shelf; 

14 ‘‘(iv) pipelines and other means of 

15 transporting oil and gas production from 

16 the outer Continental Shelf; and 

17 ‘‘(v) processing and refining of oil and 

18 gas production from the outer Continental 

19 Shelf. 

20 ‘‘(C) COASTAL POINT.—For purposes of 

21 this subparagraph, if a coastal county-equiva22 lent political subdivision does not have a coast23 line, its coastal point shall be the point on the 

24 coastline closest to it. 


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1 ‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO2 LITICAL SUBDIVISIONS.—The initial allocation to 

3 each coastal county-equivalent political subdivision 

4 under paragraph (2) shall be further allocated to the 

5 coastal county-equivalent political subdivision and 

6 any coastal municipal political subdivisions located 

7 partially or wholly within the boundaries of the 

8 coastal county-equivalent political subdivision as fol9 lows: 

10 ‘‘(A) One-third shall be allocated to the 

11 coastal county-equivalent political subdivision. 

12 ‘‘(B) Two-thirds shall be allocated on a per 

13 capita basis to the municipal political subdivi14 sions and the county-equivalent political sub15 division, with the allocation to the latter based 

16 upon its population not included within the 

17 boundaries of a municipal political subdivision. 

18 ‘‘(e) INVESTMENT OF DEPOSITS.—Amounts depos19 ited under this section shall be invested by the Secretary 

20 of the Treasury in securities backed by the full faith and 

21 credit of the United States having maturities suitable to 

22 the needs of the account in which they are deposited and 

23 yielding the highest reasonably available interest rates as 

24 determined by the Secretary of the Treasury. 


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1 ‘‘(f) USE OF FUNDS.—A recipient of funds under this 

2 section may use the funds for 1 or more of the following: 

3 ‘‘(1) To reduce in-State college tuition at public 

4 institutions of higher learning and otherwise support 

5 public education, including career technical edu6 cation. 

7 ‘‘(2) To make transportation infrastructure im8 provements. 

9 ‘‘(3) To reduce taxes. 

10 ‘‘(4) To promote, fund, and provide for— 

11 ‘‘(A) coastal or environmental restoration; 

12 ‘‘(B) fish, wildlife, and marine life habitat 

13 enhancement; 

14 ‘‘(C) waterways construction and mainte15 nance; 

16 ‘‘(D) levee construction and maintenance 

17 and shore protection; and 

18 ‘‘(E) marine and oceanographic education 

19 and research. 

20 ‘‘(5) To promote, fund, and provide for — 

21 ‘‘(A) infrastructure associated with energy 

22 production activities conducted on the outer 

23 Continental Shelf; 

24 ‘‘(B) energy demonstration projects; 


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1 ‘‘(C) supporting infrastructure for shore2 based energy projects; 

3 ‘‘(D) State geologic programs, including 

4 geologic mapping and data storage programs, 

5 and State geophysical data acquisition; 

6 ‘‘(E) State seismic monitoring programs, 

7 including operation of monitoring stations; 

8 ‘‘(F) development of oil and gas resources 

9 through enhanced recovery techniques; 

10 ‘‘(G) alternative energy development, in11 cluding bio fuels, coal-to-liquids, oil shale, tar 

12 sands, geothermal, geopressure, wind, waves, 

13 currents, hydro, and other renewable energy; 

14 ‘‘(H) energy efficiency and conservation 

15 programs; and 

16 ‘‘(I) front-end engineering and design for 

17 facilities that produce liquid fuels from hydro18 carbons and other biological matter. 

19 ‘‘(6) To promote, fund, and provide for— 

20 ‘‘(A) historic preservation programs and 

21 projects; 

22 ‘‘(B) natural disaster planning and re23 sponse; and 

24 ‘‘(C) hurricane and natural disaster insur25 ance programs. 


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1 ‘‘(7) For any other purpose as determined by 

2 State law. 

3 ‘‘(g) NO ACCOUNTING REQUIRED.—No recipient of 

4 funds under this section shall be required to account to 

5 the Federal Government for the expenditure of such 

6 funds, except as otherwise may be required by law. How7 ever, States may enact legislation providing for accounting 

8 for and auditing of such expenditures. Further, funds allo9 cated under this section to States and political subdivi10 sions may be used as matching funds for other Federal 

11 programs. 

12 ‘‘(h) EFFECT OF FUTURE LAWS.—Enactment of any 

13 future Federal statute that has the effect, as determined 

14 by the Secretary, of restricting any Federal agency from 

15 spending appropriated funds, or otherwise preventing it 

16 from fulfilling its pre-existing responsibilities as of the 

17 date of enactment of the statute, unless such responsibil18 ities have been reassigned to another Federal agency by 

19 the statute with no prevention of performance, to issue 

20 any permit or other approval impacting on the OCS oil 

21 and gas leasing program, or any lease issued thereunder, 

22 or to implement any provision of this Act shall automati23 cally prohibit any sharing of OCS Receipts under this sec24 tion directly with the States, and their coastal political 

25 subdivisions, for the duration of the restriction. The SecVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 retary shall make the determination of the existence of 

2 such restricting effects within 30 days of a petition by any 

3 outer Continental Shelf lessee or producing State. 

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

5 ‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL

6 SUBDIVISION.—The term ‘coastal county-equivalent 

7 political subdivision’ means a political jurisdiction 

8 immediately below the level of State government, in9 cluding a county, parish, borough in Alaska, inde10 pendent municipality not part of a county, parish, or 

11 borough in Alaska, or other equivalent subdivision of 

12 a coastal State, that lies within the coastal zone. 

13 ‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI14 SION.—The term ‘coastal municipal political subdivi15 sion’ means a municipality located within and part 

16 of a county, parish, borough in Alaska, or other 

17 equivalent subdivision of a State, all or part of which 

18 coastal municipal political subdivision lies within the 

19 coastal zone. 

20 ‘‘(3) COASTAL POPULATION.—The term ‘coastal 

21 population’ means the population of all coastal coun22 ty-equivalent political subdivisions, as determined by 

23 the most recent official data of the Census Bureau. 

24 ‘‘(4) COASTAL ZONE.—The term ‘coastal zone’ 

25 means that portion of a coastal State, including the 


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1 entire territory of any coastal county-equivalent po2 litical subdivision at least a part of which lies, within 

3 75 miles landward from the coastline, or a greater 

4 distance as determined by State law enacted to im5 plement this section. 

6 ‘‘(5) BONUS BIDS.—The term ‘bonus bids’ 

7 means all funds received by the Secretary to issue 

8 an outer Continental Shelf minerals lease. 

9 ‘‘(6) ROYALTIES.—The term ‘royalties’ means 

10 all funds received by the Secretary from production 

11 of oil or natural gas, or the sale of production taken 

12 in-kind, from an outer Continental Shelf minerals 

13 lease. 

14 ‘‘(7) PRODUCING STATE.—The term ‘producing 

15 State’ means an Adjacent State having an Adjacent 

16 Zone containing leased tracts from which OCS Re17 ceipts were derived. 

18 ‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 

19 means bonus bids, royalties, and conservation of re20 sources fees.’’. 

21 SEC. 138. REVIEW OF OUTER CONTINENTAL SHELF EXPLO22 RATION PLANS. 

23 Subsections (c) and (d) of section 11 of the Outer 

24 Continental Shelf Lands Act (43 U.S.C. 1340) are amend25 ed to read as follows: 


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1 ‘‘(c) PLAN REVIEW; PLAN PROVISIONS.— 

2 ‘‘(1) Except as otherwise provided in this Act, 

3 prior to commencing exploration pursuant to any oil 

4 and gas lease issued or maintained under this Act, 

5 the holder thereof shall submit an exploration plan 

6 (hereinafter in this section referred to as a ‘plan’) to 

7 the Secretary for review which shall include all infor8 mation and documentation required under para9 graphs (2) and (3). The Secretary shall review the 

10 plan for completeness within 10 days of submission. 

11 If the Secretary finds that the plan is not complete, 

12 the Secretary shall notify the lessee with a detailed 

13 explanation and require such modifications of such 

14 plan as are necessary to achieve completeness. The 

15 Secretary shall have 10 days to review a modified 

16 plan for completeness. Such plan may apply to more 

17 than 1 lease held by a lessee in any 1 region of the 

18 outer Continental Shelf, or by a group of lessees act19 ing under a unitization, pooling, or drilling agree20 ment, and the lessee shall certify that such plan is 

21 consistent with the terms of the lease and is con22 sistent with all statutory and regulatory require23 ments in effect on the date of issuance of the lease, 

24 and any regulations promulgated under this Act to 

25 the conservation of resources after the date of the 


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1 lease issuances. The Secretary shall have 30 days 

2 from the date the plan is deemed complete to con3 duct a review of the plan. If the Secretary finds the 

4 plan is not consistent with the lease and all such 

5 statutory and regulatory requirements, the Secretary 

6 shall notify the lessee with a detailed explanation of 

7 such modifications of such plan as are necessary to 

8 achieve compliance. The Secretary shall have 30 

9 days to review any modified plan submitted by the 

10 lessee. The lessee shall not take any action under 

11 the exploration plan within the 30-day review period, 

12 or thereafter until the plan has been modified to 

13 achieve compliance as so notified. 

14 ‘‘(2) An exploration plan submitted under this 

15 subsection shall include, in the degree of detail 

16 which the Secretary may by regulation require— 

17 ‘‘(A) a schedule of anticipated exploration 

18 activities to be undertaken; 

19 ‘‘(B) a description of equipment to be used 

20 for such activities; 

21 ‘‘(C) the general location of each well to be 

22 drilled; and 

23 ‘‘(D) such other information deemed perti24 nent by the Secretary. 


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1 ‘‘(3) The Secretary may, by regulation, require 

2 that such plan be accompanied by a general state3 ment of development and production intentions 

4 which shall be for planning purposes only and which 

5 shall not be binding on any party. 

6 ‘‘(d) PLAN REVISIONS; CONDUCT OF EXPLORATION

7 ACTIVITIES.— 

8 ‘‘(1) If a significant revision of an exploration 

9 plan under this subsection is submitted to the Sec10 retary, the process to be used for the review of such 

11 revision shall be the same as set forth in subsection 

12 (c). 

13 ‘‘(2) All exploration activities pursuant to any 

14 lease shall be conducted in accordance with an explo15 ration plan or a revised plan which has been sub16 mitted to and reviewed by the Secretary.’’. 

17 SEC. 139. RESERVATION OF LANDS AND RIGHTS. 

18 Section 12 of the Outer Continental Shelf Lands Act 

19 (43 U.S.C. 1341) is amended— 

20 (1) in subsection (a) by adding at the end the 

21 following: ‘‘The President may partially or com22 pletely revise or revoke any prior withdrawal made 

23 by the President under the authority of this section. 

24 The President may not revise or revoke a withdrawal 

25 that was initiated by a petition from a State and apVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 proved by the Secretary of the Interior under sub2 section (h). A withdrawal by the President may be 

3 for a term not to exceed 10 years. When considering 

4 potential uses of the outer Continental Shelf, to the 

5 maximum extent possible, the President shall accom6 modate competing interests and potential uses.’’; 

7 and 

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

9 ‘‘(g) AVAILABILITY FOR LEASING WITHIN CERTAIN

10 AREAS OF THE OUTER CONTINENTAL SHELF.— 

11 ‘‘(1) PROHIBITION AGAINST LEASING.— 

12 ‘‘(A) UNAVAILABLE FOR LEASING WITH13 OUT STATE REQUEST.—Except as otherwise 

14 provided in this subsection, from and after en15 actment of the Deep Ocean Energy Resources 

16 Act of 2006, the Secretary shall not offer for 

17 leasing for oil and gas, or natural gas, any area 

18 within 50 miles of the coastline that was with19 drawn from disposition by leasing in the Atlan20 tic OCS Region or the Pacific OCS Region, or 

21 the Gulf of Mexico OCS Region Eastern Plan22 ning Area, as depicted on the maps referred to 

23 in this subparagraph, under the ‘Memorandum 

24 on Withdrawal of Certain Areas of the United 

25 States Outer Continental Shelf from Leasing 


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1 Disposition’, 34 Weekly Comp. Pres. Doc. 

2 1111, dated June 12, 1998, or any area within 

3 50 miles of the coastline not withdrawn under 

4 that Memorandum that is included within the 

5 Gulf of Mexico OCS Region Eastern Planning 

6 Area as indicated on the map entitled ‘Gulf of 

7 Mexico OCS Region State Adjacent Zones and 

8 OCS Planning Areas’ or the Florida Straits 

9 Planning Area as indicated on the map entitled 

10 ‘Atlantic OCS Region State Adjacent Zones and 

11 OCS Planning Areas’, both of which are dated 

12 September 2005 and on file in the Office of the 

13 Director, Minerals Management Service. 

14 ‘‘(B) AREAS BETWEEN 50 AND 100 MILES

15 FROM THE COASTLINE.—Unless an Adjacent 

16 State petitions under subsection (h) within 1 

17 year after the date of the enactment of the 

18 Deep Ocean Energy Resources Act of 2006 for 

19 natural gas leasing or by June 30, 2009, for oil 

20 and gas leasing, the Secretary shall offer for 

21 leasing any area more than 50 miles but less 

22 than 100 miles from the coastline that was 

23 withdrawn from disposition by leasing in the 

24 Atlantic OCS Region, the Pacific OCS Region, 

25 or the Gulf of Mexico OCS Region Eastern 


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1 Planning Area, as depicted on the maps re2 ferred to in this subparagraph, under the 

3 ‘Memorandum on Withdrawal of Certain Areas 

4 of the United States Outer Continental Shelf 

5 from Leasing Disposition’, 34 Weekly Comp. 

6 Pres. Doc. 1111, dated June 12, 1998, or any 

7 area more than 50 miles but less than 100 

8 miles of the coastline not withdrawn under that 

9 Memorandum that is included within the Gulf 

10 of Mexico OCS Region Eastern Planning Area 

11 as indicated on the map entitled ‘Gulf of Mexico 

12 OCS Region State Adjacent Zones and OCS 

13 Planning Areas’ or within the Florida Straits 

14 Planning Area as indicated on the map entitled 

15 ‘Atlantic OCS Region State Adjacent Zones and 

16 OCS Planning Areas’, both of which are dated 

17 September 2005 and on file in the Office of the 

18 Director, Minerals Management Service. 

19 ‘‘(2) REVOCATION OF WITHDRAWAL.—The pro20 visions of the ‘Memorandum on Withdrawal of Cer21 tain Areas of the United States Outer Continental 

22 Shelf from Leasing Disposition’, 34 Weekly Comp. 

23 Pres. Doc. 1111, dated June 12, 1998, are hereby 

24 revoked and are no longer in effect regarding any 

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1 line, nor for any areas that are less than 100 miles 

2 from the coastline and are included within the Gulf 

3 of Mexico OCS Region Central Planning Area as de4 picted on the map entitled ‘Gulf of Mexico OCS Re5 gion State Adjacent Zones and OCS Planning Areas’ 

6 dated September 2005 and on file in the Office of 

7 the Director, Minerals Management Service. The 

8 2002–2007 5-Year Outer Continental Shelf Oil and 

9 Gas Leasing Program is hereby amended to include 

10 the areas added to the Gulf of Mexico OCS Region 

11 Central Planning Area by this Act to the extent that 

12 such areas were included within the original bound13 aries of proposed Lease Sale 181. The amendment 

14 to such leasing program includes a sale in such addi15 tional areas, which shall be held no later than June 

16 30, 2007. The Final Environmental Impact State17 ment prepared for this area for Lease Sale 181 shall 

18 be deemed sufficient for all purposes for each lease 

19 sale in which such area is offered for lease during 

20 the 2002–2007 5-Year Outer Continental Shelf Oil 

21 and Gas Leasing Program without need for sup22 plementation. Any tract only partially added to the 

23 Gulf of Mexico OCS Region Central Planning Area 

24 by this Act shall be eligible for leasing of the part 

25 of such tract that is included within the Gulf of 


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1 Mexico OCS Region Central Planning Area, and the 

2 remainder of such tract that lies outside of the Gulf 

3 of Mexico OCS Region Central Planning Area may 

4 be developed and produced by the lessee of such par5 tial tract using extended reach or similar drilling 

6 from a location on a leased area. Further, any area 

7 in the OCS withdrawn from leasing may be leased, 

8 and thereafter developed and produced by the lessee 

9 using extended reach or similar drilling from a loca10 tion on a leased area located in an area available for 

11 leasing. 

12 ‘‘(3) PETITION FOR LEASING.— 

13 ‘‘(A) IN GENERAL.—The Governor of the 

14 State, upon concurrence of its legislature, may 

15 submit to the Secretary a petition requesting 

16 that the Secretary make available any area that 

17 is within the State’s Adjacent Zone, included 

18 within the provisions of paragraph (1), and that 

19 (i) is greater than 25 miles from any point on 

20 the coastline of a Neighboring State for the 

21 conduct of offshore leasing, pre-leasing, and re22 lated activities with respect to natural gas leas23 ing; or (ii) is greater than 50 miles from any 

24 point on the coastline of a Neighboring State 

25 for the conduct of offshore leasing, pre-leasing, 


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1 and related activities with respect to oil and gas 

2 leasing. The Adjacent State may also petition 

3 for leasing any other area within its Adjacent 

4 Zone if leasing is allowed in the similar area of 

5 the Adjacent Zone of the applicable Neigh6 boring State, or if not allowed, if the Neigh7 boring State, acting through its Governor, ex8 presses its concurrence with the petition. The 

9 Secretary shall only consider such a petition 

10 upon making a finding that leasing is allowed 

11 in the similar area of the Adjacent Zone of the 

12 applicable Neighboring State or upon receipt of 

13 the concurrence of the Neighboring State. The 

14 date of receipt by the Secretary of such concur15 rence by the Neighboring State shall constitute 

16 the date of receipt of the petition for that area 

17 for which the concurrence applies. Except for 

18 any area described in the last sentence of para19 graph (2), a petition for leasing any part of the 

20 Alabama Adjacent Zone that is a part of the 

21 Gulf of Mexico Eastern Planning Area, as indi22 cated on the map entitled ‘Gulf of Mexico OCS 

23 Region State Adjacent Zones and OCS Plan24 ning Areas’ which is dated September 2005 and 

25 on file in the Office of the Director, Minerals 


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1 Management Service, shall require the concur2 rence of both Alabama and Florida. 

3 ‘‘(B) LIMITATIONS ON LEASING.—In its 

4 petition, a State with an Adjacent Zone that 

5 contains leased tracts may condition new leas6 ing for oil and gas, or natural gas for tracts 

7 within 25 miles of the coastline by— 

8 ‘‘(i) requiring a net reduction in the 

9 number of production platforms; 

10 ‘‘(ii) requiring a net increase in the 

11 average distance of production platforms 

12 from the coastline; 

13 ‘‘(iii) limiting permanent surface occu14 pancy on new leases to areas that are more 

15 than 10 miles from the coastline; 

16 ‘‘(iv) limiting some tracts to being 

17 produced from shore or from platforms lo18 cated on other tracts; or 

19 ‘‘(v) other conditions that the Adja20 cent State may deem appropriate as long 

21 as the Secretary does not determine that 

22 production is made economically or tech23 nically impracticable or otherwise impos24 sible. 


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1 ‘‘(C) ACTION BY SECRETARY.—Not later 

2 than 90 days after receipt of a petition under 

3 subparagraph (A), the Secretary shall approve 

4 the petition, unless the Secretary determines 

5 that leasing the area would probably cause seri6 ous harm or damage to the marine resources of 

7 the State’s Adjacent Zone. Prior to approving 

8 the petition, the Secretary shall complete an en9 vironmental assessment that documents the an10 ticipated environmental effects of leasing in the 

11 area included within the scope of the petition. 

12 ‘‘(D) FAILURE TO ACT.—If the Secretary 

13 fails to approve or deny a petition in accordance 

14 with subparagraph (C) the petition shall be con15 sidered to be approved 90 days after receipt of 

16 the petition. 

17 ‘‘(E) AMENDMENT OF THE 5-YEAR LEAS18 ING PROGRAM.—Notwithstanding section 18, 

19 within 180 days of the approval of a petition 

20 under subparagraph (C) or (D), after the expi21 ration of the time limits in paragraph (1)(B), 

22 and within 180 days after the enactment of the 

23 Deep Ocean Energy Resources Act of 2006 for 

24 the areas made available for leasing under 

25 paragraph (2), the Secretary shall amend the 


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1 current 5-Year Outer Continental Shelf Oil and 

2 Gas Leasing Program to include a lease sale or 

3 sales for at least 75 percent of the associated 

4 areas, unless there are, from the date of ap5 proval, expiration of such time limits, or enact6 ment, as applicable, fewer than 12 months re7 maining in the current 5-Year Leasing Program 

8 in which case the Secretary shall include the as9 sociated areas within lease sales under the next 

10 5-Year Leasing Program. For purposes of 

11 amending the 5-Year Program in accordance 

12 with this section, further consultations with 

13 States shall not be required. For purposes of 

14 this section, an environmental assessment per15 formed under the provisions of the National 

16 Environmental Policy Act of 1969 to assess the 

17 effects of approving the petition shall be suffi18 cient to amend the 5-Year Leasing Program. 

19 ‘‘(h) OPTION TO PETITION FOR EXTENSION OF

20 WITHDRAWAL FROM LEASING WITHIN CERTAIN AREAS

21 OF THE OUTER CONTINENTAL SHELF.— 

22 ‘‘(1) IN GENERAL.—The Governor of the State, 

23 upon the concurrence of its legislature, may submit 

24 to the Secretary petitions requesting that the Sec25 retary extend for a period of time of up to 5 years 


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1 for each petition the withdrawal from leasing for all 

2 or part of any area within the State’s Adjacent Zone 

3 located more than 50 miles, but less than 100 miles, 

4 from the coastline that is subject to subsection 

5 (g)(1)(B). A State may petition multiple times for 

6 any particular area but not more than once per cal7 endar year for any particular area. A State must 

8 submit separate petitions, with separate votes by its 

9 legislature, for oil and gas leasing and for natural 

10 gas leasing. A petition of a State may request some 

11 areas to be withdrawn from all leasing and some 

12 areas to be withdrawn only from 1 type of leasing. 

13 Petitions for extending the withdrawal from leasing 

14 of any part of the Alabama Adjacent Zone that is 

15 more than 50 miles, but less than 100 miles, from 

16 the coastline that is a part of the Gulf of Mexico 

17 OCS Region Eastern Planning Area, as indicated on 

18 the map entitled ‘Gulf of Mexico OCS Region State 

19 Adjacent Zones and OCS Planning Areas’ which is 

20 dated September 2005 and on file in the Office of 

21 the Director, Minerals Management Service, may be 

22 made by either Alabama or Florida. 

23 ‘‘(2) ACTION BY SECRETARY.—The Secretary 

24 shall perform an environmental assessment under 

25 the National Environmental Policy Act of 1969 (42 


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1 U.S.C. 4321 et seq.) to assess the effects of approv2 ing the petition under paragraph (1). Not later than 

3 90 days after receipt of the petition, the Secretary 

4 shall approve the petition, unless the Secretary de5 termines that extending the withdrawal from leasing 

6 would probably cause serious harm or damage to the 

7 marine resources of the State’s Adjacent Zone. The 

8 Secretary shall not approve a petition from a State 

9 that extends the remaining period of a withdrawal of 

10 an area from leasing for a total of more than 10 

11 years. However, the Secretary may approve petitions 

12 to extend the withdrawal from leasing of any area ad 

13 infinitum, subject only to the limitations contained 

14 in this subsection. 

15 ‘‘(3) FAILURE TO ACT.—If the Secretary fails 

16 to approve or deny a petition in accordance with 

17 paragraph (2) the petition shall be considered to be 

18 approved 90 days after receipt of the petition. 

19 ‘‘(i) EFFECT OF OTHER LAWS.—Adoption by any 

20 Adjacent State of any constitutional provision, or enact21 ment of any State statute, that has the effect, as deter22 mined by the Secretary, of restricting either the Governor 

23 or the Legislature, or both, from exercising full discretion 

24 related to subsection (g) or (h), or both, shall automati25 cally (1) prohibit any sharing of OCS Receipts under this 


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1 Act with the Adjacent State, and its coastal political sub2 divisions, and (2) prohibit the Adjacent State from exer3 cising any authority under subsection (h), for the duration 

4 of the restriction. The Secretary shall make the determina5 tion of the existence of such restricting constitutional pro6 vision or State statute within 30 days of a petition by any 

7 outer Continental Shelf lessee or coastal State.’’. 

8 SEC. 140. OUTER CONTINENTAL SHELF LEASING PROGRAM. 

9 Section 18 of the Outer Continental Shelf Lands Act 

10 (43 U.S.C. 1344) is amended— 

11 (1) in subsection (a), by adding at the end of 

12 paragraph (3) the following: ‘‘The Secretary shall, in 

13 each 5-year program, include lease sales that when 

14 viewed as a whole propose to offer for oil and gas 

15 or natural gas leasing at least 75 percent of the 

16 available unleased acreage within each OCS Plan17 ning Area. Available unleased acreage is that portion 

18 of the outer Continental Shelf that is not under 

19 lease at the time of the proposed lease sale, and has 

20 not otherwise been made unavailable for leasing by 

21 law.’’; 

22 (2) in subsection (c), by striking ‘‘(c)(1)’’ and 

23 all that follows through the end of paragraph (2) 

24 and inserting the following: 


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1 ‘‘(c)(1) During the preparation of any proposed leas2 ing program under this section, the Secretary shall con3 sider and analyze leasing throughout the entire Outer 

4 Continental Shelf without regard to any other law affect5 ing such leasing. During this preparation the Secretary 

6 shall invite and consider suggestions from any interested 

7 Federal agency, including the Attorney General, in con8 sultation with the Federal Trade Commission, and from 

9 the Governor of any coastal State. The Secretary may also 

10 invite or consider any suggestions from the executive of 

11 any local government in a coastal State that have been 

12 previously submitted to the Governor of such State, and 

13 from any other person. Further, the Secretary shall con14 sult with the Secretary of Defense regarding military oper15 ational needs in the outer Continental Shelf. The Sec16 retary shall work with the Secretary of Defense to resolve 

17 any conflicts that might arise regarding offering any area 

18 of the outer Continental Shelf for oil and gas or natural 

19 gas leasing. If the Secretaries are not able to resolve all 

20 such conflicts, any unresolved issues shall be elevated to 

21 the President for resolution. 

22 ‘‘(2) After the consideration and analysis required by 

23 paragraph (1), including the consideration of the sugges24 tions received from any interested Federal agency, the 

25 Federal Trade Commission, the Governor of any coastal 


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1 State, any local government of a coastal State, and any 

2 other person, the Secretary shall publish in the Federal 

3 Register a proposed leasing program accompanied by a 

4 draft environmental impact statement prepared pursuant 

5 to the National Environmental Policy Act of 1969 (42 

6 U.S.C. 4321 et seq.). After the publishing of the proposed 

7 leasing program and during the comment period provided 

8 for on the draft environmental impact statement, the Sec9 retary shall submit a copy of the proposed program to the 

10 Governor of each affected State for review and comment. 

11 The Governor may solicit comments from those executives 

12 of local governments in the Governor’s State that the Gov13 ernor, in the discretion of the Governor, determines will 

14 be affected by the proposed program. If any comment by 

15 such Governor is received by the Secretary at least 15 days 

16 prior to submission to the Congress pursuant to para17 graph (3) and includes a request for any modification of 

18 such proposed program, the Secretary shall reply in writ19 ing, granting or denying such request in whole or in part, 

20 or granting such request in such modified form as the Sec21 retary considers appropriate, and stating the Secretary’s 

22 reasons therefor. All such correspondence between the 

23 Secretary and the Governor of any affected State, together 

24 with any additional information and data relating thereto, 


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1 shall accompany such proposed program when it is sub2 mitted to the Congress.’’; and 

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

4 ‘‘(i) PROJECTION OF STATE ADJACENT ZONE RE5 SOURCES AND STATE AND LOCAL GOVERNMENT SHARES

6 OF OCS RECEIPTS.—Concurrent with the publication of 

7 the scoping notice at the beginning of the development of 

8 each 5-year outer Continental Shelf oil and gas leasing 

9 program, or as soon thereafter as possible, the Secretary 

10 shall— 

11 ‘‘(1) provide to each Adjacent State a current 

12 estimate of proven and potential oil and gas re13 sources located within the State’s Adjacent Zone; 

14 and 

15 ‘‘(2) provide to each Adjacent State, and coast16 al political subdivisions thereof, a best-efforts projec17 tion of the OCS Receipts that the Secretary expects 

18 will be shared with each Adjacent State, and its 

19 coastal political subdivisions, using the assumption 

20 that the unleased tracts within the State’s Adjacent 

21 Zone are fully made available for leasing, including 

22 long-term projected OCS Receipts. In addition, the 

23 Secretary shall include a macroeconomic estimate of 

24 the impact of such leasing on the national economy 

25 and each State’s economy, including investment, 


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1 jobs, revenues, personal income, and other cat2 egories.’’. 

3 SEC. 141. COORDINATION WITH ADJACENT STATES. 

4 Section 19 of the Outer Continental Shelf Lands Act 

5 (43 U.S.C. 1345) is amended— 

6 (1) in subsection (a), in the first sentence, by 

7 inserting ‘‘, for any tract located within the Adjacent 

8 State’s Adjacent Zone,’’ after ‘‘government’’; and 

9 (2) by adding at the end the following: 

10 ‘‘(f)(1) No Federal agency may permit or otherwise 

11 approve, without the concurrence of the Adjacent State, 

12 the construction of a crude oil or petroleum products (or 

13 both) pipeline within the part of the Adjacent State’s Ad14 jacent Zone that is withdrawn from oil and gas or natural 

15 gas leasing, except that such a pipeline may be approved, 

16 without such Adjacent State’s concurrence, to pass 

17 through such Adjacent Zone if at least 50 percent of the 

18 production projected to be carried by the pipeline within 

19 its first 10 years of operation is from areas of the Adja20 cent State’s Adjacent Zone. 

21 ‘‘(2) No State may prohibit the construction within 

22 its Adjacent Zone or its State waters of a natural gas pipe23 line that will transport natural gas produced from the 

24 outer Continental Shelf. However, an Adjacent State may 

25 prevent a proposed natural gas pipeline landing location 


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1 if it proposes 2 alternate landing locations in the Adjacent 

2 State, acceptable to the Adjacent State, located within 50 

3 miles on either side of the proposed landing location.’’. 

4 SEC. 142. ENVIRONMENTAL STUDIES. 

5 Section 20(d) of the Outer Continental Shelf Lands 

6 Act (43 U.S.C. 1346) is amended— 

7 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 

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

9 ‘‘(2) For all programs, lease sales, leases, and actions 

10 under this Act, the following shall apply regarding the ap11 plication of the National Environmental Policy Act of 

12 1969 (42 U.S.C. 4321 et seq.): 

13 ‘‘(A) Granting or directing lease suspensions 

14 and the conduct of all preliminary activities on outer 

15 Continental Shelf tracts, including seismic activities, 

16 are categorically excluded from the need to prepare 

17 either an environmental assessment or an environ18 mental impact statement, and the Secretary shall 

19 not be required to analyze whether any exceptions to 

20 a categorical exclusion apply for activities conducted 

21 under the authority of this Act. 

22 ‘‘(B) The environmental impact statement de23 veloped in support of each 5-year oil and gas leasing 

24 program provides the environmental analysis for all 

25 lease sales to be conducted under the program and 


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1 such sales shall not be subject to further environ2 mental analysis. 

3 ‘‘(C) Exploration plans shall not be subject to 

4 any requirement to prepare an environmental impact 

5 statement, and the Secretary may find that explo6 ration plans are eligible for categorical exclusion due 

7 to the impacts already being considered within an 

8 environmental impact statement or due to mitigation 

9 measures included within the plan. 

10 ‘‘(D) Within each OCS Planning Area, after the 

11 preparation of the first development and production 

12 plan environmental impact statement for a leased 

13 tract within the Area, future development and pro14 duction plans for leased tracts within the Area shall 

15 only require the preparation of an environmental as16 sessment unless the most recent development and 

17 production plan environmental impact statement 

18 within the Area was finalized more than 10 years 

19 prior to the date of the approval of the plan, in 

20 which case an environmental impact statement shall 

21 be required.’’. 

22 SEC. 143. REVIEW OF OUTER CONTINENTAL SHELF DEVEL23 OPMENT AND PRODUCTION PLANS. 

24 Section 25 of the Outer Continental Shelf Lands Act 

25 (43 U.S.C. 1351) is amended to read as follows: 


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1 ‘‘SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVEL2 OPMENT AND PRODUCTION PLANS. 

3 ‘‘(a) DEVELOPMENT AND PRODUCTION PLANS; SUB4 MISSION TO SECRETARY; STATEMENT OF FACILITIES AND

5 OPERATION; SUBMISSION TO GOVERNORS OF AFFECTED

6 STATES AND LOCAL GOVERNMENTS.— 

7 ‘‘(1) Prior to development and production pur8 suant to an oil and gas lease issued on or after Sep9 tember 18, 1978, for any area of the outer Conti10 nental Shelf, or issued or maintained prior to Sep11 tember 18, 1978, for any area of the outer Conti12 nental Shelf, with respect to which no oil or gas has 

13 been discovered in paying quantities prior to Sep14 tember 18, 1978, the lessee shall submit a develop15 ment and production plan (hereinafter in this sec16 tion referred to as a ‘plan’) to the Secretary for re17 view. 

18 ‘‘(2) A plan shall be accompanied by a state19 ment describing all facilities and operations, other 

20 than those on the outer Continental Shelf, proposed 

21 by the lessee and known by the lessee (whether or 

22 not owned or operated by such lessee) that will be 

23 constructed or utilized in the development and pro24 duction of oil or gas from the lease area, including 

25 the location and site of such facilities and oper26 ations, the land, labor, material, and energy requireVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 ments associated with such facilities and operations, 

2 and all environmental and safety safeguards to be 

3 implemented. 

4 ‘‘(3) Except for any privileged or proprietary 

5 information (as such term is defined in regulations 

6 issued by the Secretary), the Secretary, within 30 

7 days after receipt of a plan and statement, shall— 

8 ‘‘(A) submit such plan and statement to 

9 the Governor of any affected State, and upon 

10 request to the executive of any affected local 

11 government; and 

12 ‘‘(B) make such plan and statement avail13 able to any appropriate interstate regional enti14 ty and the public. 

15 ‘‘(b) DEVELOPMENT AND PRODUCTION ACTIVITIES

16 IN ACCORDANCE WITH PLAN AS LEASE REQUIREMENT.— 

17 After enactment of the Deep Ocean Energy Resources Act 

18 of 2006, no oil and gas lease may be issued pursuant to 

19 this Act in any region of the outer Continental Shelf, un20 less such lease requires that development and production 

21 activities be carried out in accordance with a plan that 

22 complies with the requirements of this section. This sec23 tion shall also apply to leases that do not have an approved 

24 development and production plan as of the date of enact25 ment of the Deep Ocean Energy Resources Act of 2006. 


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1 ‘‘(c) SCOPE AND CONTENTS OF PLAN.—A plan may 

2 apply to more than 1 oil and gas lease, and shall set forth, 

3 in the degree of detail established by regulations issued 

4 by the Secretary— 

5 ‘‘(1) the general work to be performed; 

6 ‘‘(2) a description of all facilities and operations 

7 located on the outer Continental Shelf that are pro8 posed by the lessee or known by the lessee (whether 

9 or not owned or operated by such lessee) to be di10 rectly related to the proposed development, including 

11 the location and size of such facilities and oper12 ations, and the land, labor, material, and energy re13 quirements associated with such facilities and oper14 ations; 

15 ‘‘(3) the environmental safeguards to be imple16 mented on the outer Continental Shelf and how such 

17 safeguards are to be implemented; 

18 ‘‘(4) all safety standards to be met and how 

19 such standards are to be met; 

20 ‘‘(5) an expected rate of development and pro21 duction and a time schedule for performance; and 

22 ‘‘(6) such other relevant information as the Sec23 retary may by regulation require. 

24 ‘‘(d) COMPLETENESS REVIEW OF THE PLAN.— 


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1 ‘‘(1) Prior to commencing any activity under a 

2 development and production plan pursuant to any oil 

3 and gas lease issued or maintained under this Act, 

4 the lessee shall certify that the plan is consistent 

5 with the terms of the lease and that it is consistent 

6 with all statutory and regulatory requirements in ef7 fect on the date of issuance of the lease, and any 

8 regulations promulgated under this Act related to 

9 the conservation of resources after the date of lease 

10 issuance. The plan shall include all required infor11 mation and documentation required under sub12 section (c). 

13 ‘‘(2) The Secretary shall review the plan for 

14 completeness within 30 days of submission. If the 

15 Secretary finds that the plan is not complete, the 

16 Secretary shall notify the lessee with a detailed ex17 planation of such modifications of such plan as are 

18 necessary to achieve completeness. The Secretary 

19 shall have 30 days to review a modified plan for 

20 completeness. 

21 ‘‘(e) REVIEW FOR CONSISTENCY OF THE PLAN.— 

22 ‘‘(1) After a determination that a plan is com23 plete, the Secretary shall have 120 days to conduct 

24 a review of the plan, to ensure that it is consistent 

25 with the terms of the lease, and that it is consistent 


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1 with all such statutory and regulatory requirements 

2 applicable to the lease. The review shall ensure that 

3 the plan is consistent with lease terms, and statutory 

4 and regulatory requirements applicable to the lease, 

5 related to national security or national defense, in6 cluding any military operating stipulations or other 

7 restrictions. The Secretary shall seek the assistance 

8 of the Department of Defense in the conduct of the 

9 review of any plan prepared under this section for 

10 a lease containing military operating stipulations or 

11 other restrictions and shall accept the assistance of 

12 the Department of Defense in the conduct of the re13 view of any plan prepared under this section for any 

14 other lease when the Secretary of Defense requests 

15 an opportunity to participate in the review. If the 

16 Secretary finds that the plan is not consistent, the 

17 Secretary shall notify the lessee with a detailed ex18 planation of such modifications of such plan as are 

19 necessary to achieve consistency. 

20 ‘‘(2) The Secretary shall have 120 days to re21 view a modified plan. 

22 ‘‘(3) The lessee shall not conduct any activities 

23 under the plan during any 120-day review period, or 

24 thereafter until the plan has been modified to 

25 achieve compliance as so notified. 


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1 ‘‘(4) After review by the Secretary provided for 

2 by this section, a lessee may operate pursuant to the 

3 plan without further review or approval by the Sec4 retary. 

5 ‘‘(f) REVIEW OF REVISION OF THE APPROVED

6 PLAN.—The lessee may submit to the Secretary any revi7 sion of a plan if the lessee determines that such revision 

8 will lead to greater recovery of oil and natural gas, im9 prove the efficiency, safety, and environmental protection 

10 of the recovery operation, is the only means available to 

11 avoid substantial economic hardship to the lessee, or is 

12 otherwise not inconsistent with the provisions of this Act, 

13 to the extent such revision is consistent with protection 

14 of the human, marine, and coastal environments. The 

15 process to be used for the review of any such revision shall 

16 be the same as that set forth in subsections (d) and (e). 

17 ‘‘(g) CANCELLATION OF LEASE ON FAILURE TO

18 SUBMIT PLAN OR COMPLY WITH A PLAN.—Whenever the 

19 owner of any lease fails to submit a plan in accordance 

20 with regulations issued under this section, or fails to com21 ply with a plan, the lease may be canceled in accordance 

22 with section 5(c) and (d). Termination of a lease because 

23 of failure to comply with a plan, including required modi24 fications or revisions, shall not entitle a lessee to any com25 pensation. 


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1 ‘‘(h) PRODUCTION AND TRANSPORTATION OF NAT2 URAL GAS; SUBMISSION OF PLAN TO FEDERAL ENERGY

3 REGULATORY COMMISSION; IMPACT STATEMENT.—If any 

4 development and production plan submitted to the Sec5 retary pursuant to this section provides for the production 

6 and transportation of natural gas, the lessee shall contem7 poraneously submit to the Federal Energy Regulatory 

8 Commission that portion of such plan that relates to the 

9 facilities for transportation of natural gas. The Secretary 

10 and the Federal Energy Regulatory Commission shall 

11 agree as to which of them shall prepare an environmental 

12 impact statement pursuant to the National Environmental 

13 Policy Act of 1969 (42 U.S.C. 4321 et seq.) applicable 

14 to such portion of such plan, or conduct studies as to the 

15 effect on the environment of implementing it. Thereafter, 

16 the findings and recommendations by the agency pre17 paring such environmental impact statement or con18 ducting such studies pursuant to such agreement shall be 

19 adopted by the other agency, and such other agency shall 

20 not independently prepare another environmental impact 

21 statement or duplicate such studies with respect to such 

22 portion of such plan, but the Federal Energy Regulatory 

23 Commission, in connection with its review of an applica24 tion for a certificate of public convenience and necessity 

25 applicable to such transportation facilities pursuant to secVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 tion 7 of the Natural Gas Act (15 U.S.C. 717f), may pre2 pare such environmental studies or statement relevant to 

3 certification of such transportation facilities as have not 

4 been covered by an environmental impact statement or 

5 studies prepared by the Secretary. The Secretary, in con6 sultation with the Federal Energy Regulatory Commis7 sion, shall promulgate rules to implement this subsection, 

8 but the Federal Energy Regulatory Commission shall re9 tain sole authority with respect to rules and procedures 

10 applicable to the filing of any application with the Com11 mission and to all aspects of the Commission’s review of, 

12 and action on, any such application.’’. 

13 SEC. 144. FEDERAL ENERGY NATURAL RESOURCES EN14 HANCEMENT FUND ACT OF 2006. 

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

16 (1) Energy and minerals exploration, develop17 ment, and production on Federal onshore and off18 shore lands, including bio-based fuel, natural gas, 

19 minerals, oil, geothermal, and power from wind, 

20 waves, currents, and thermal energy, involves signifi21 cant outlays of funds by Federal and State wildlife, 

22 fish, and natural resource management agencies for 

23 environmental studies, planning, development, moni24 toring, and management of wildlife, fish, air, water, 

25 and other natural resources. 


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1 (2) State wildlife, fish, and natural resource 

2 management agencies are funded primarily through 

3 permit and license fees paid to the States by the 

4 general public to hunt and fish, and through Federal 

5 excise taxes on equipment used for these activities. 

6 (3) Funds generated from consumptive and rec7 reational uses of wildlife, fish, and other natural re8 sources currently are inadequate to address the nat9 ural resources related to energy and minerals devel10 opment on Federal onshore and offshore lands. 

11 (4) Funds available to Federal agencies respon12 sible for managing Federal onshore and offshore 

13 lands and Federal-trust wildlife and fish species and 

14 their habitats are inadequate to address the natural 

15 resources related to energy and minerals develop16 ment on Federal onshore and offshore lands. 

17 (5) Receipts derived from sales, bonus bids, and 

18 royalties under the mineral leasing laws of the 

19 United States are paid to the Treasury through the 

20 Minerals Management Service of the Department of 

21 the Interior. 

22 (6) None of the receipts derived from sales, 

23 bonus bids, and royalties under the minerals leasing 

24 laws of the United States are paid to the Federal or 

25 State agencies to examine, monitor, and manage 


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1 wildlife, fish, air, water, and other natural resources 

2 related to natural gas, oil, and mineral exploration 

3 and development. 

4 (b) PURPOSES.—It is the purpose of this section to— 

5 (1) establish a fund for the monitoring and 

6 management of wildlife and fish, and their habitats, 

7 and air, water, and other natural resources related 

8 to energy and minerals development on Federal on9 shore and offshore lands; 

10 (2) make available receipts derived from sales, 

11 bonus bids, royalties, and fees from onshore and off12 shore gas, mineral, oil, and any additional form of 

13 energy and minerals development under the laws of 

14 the United States for the purposes of such fund; 

15 (3) distribute funds from such fund each fiscal 

16 year to the Secretary of the Interior and the States; 

17 and 

18 (4) use the distributed funds to secure the nec19 essary trained workforce or contractual services to 

20 conduct environmental studies, planning, develop21 ment, monitoring, and post-development manage22 ment of wildlife and fish and their habitats and air, 

23 water, and other natural resources that may be re24 lated to bio-based fuel, gas, mineral, oil, wind, or 

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1 tation, transmission, and associated activities on 

2 Federal onshore and offshore lands, including— 

3 (A) pertinent research, surveys, and envi4 ronmental analyses conducted to identify any 

5 impacts on wildlife, fish, air, water, and other 

6 natural resources from energy and mineral ex7 ploration, development, production, and trans8 portation or transmission; 

9 (B) projects to maintain, improve, or en10 hance wildlife and fish populations and their 

11 habitats or air, water, or other natural re12 sources, including activities under the Endan13 gered Species Act of 1973 (16 U.S.C. 1531 et 

14 seq.); 

15 (C) research, surveys, environmental anal16 yses, and projects that assist in managing, in17 cluding mitigating either onsite or offsite, or 

18 both, the impacts of energy and mineral activi19 ties on wildlife, fish, air, water, and other nat20 ural resources; and 

21 (D) projects to teach young people to live 

22 off the land. 

23 (c) DEFINITIONS.—In this section: 

24 (1) ENHANCEMENT FUND.—The term ‘‘En25 hancement Fund’’ means the Federal Energy NatVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 ural Resources Enhancement Fund established by 

2 subsection (d). 

3 (2) STATE.—The term ‘‘State’’ means the Gov4 ernor of the State. 

5 (d) ESTABLISHMENT AND USE OF FEDERAL ENERGY

6 NATURAL RESOURCES ENHANCEMENT FUND.— 

7 (1) ENHANCEMENT FUND.—There is estab8 lished in the Treasury a separate account to be 

9 known as the ‘‘Federal Energy Natural Resources 

10 Enhancement Fund’’. 

11 (2) FUNDING.—The Secretary of the Treasury 

12 shall deposit in the Enhancement Fund— 

13 (A) such sums as are provided by sections 

14 9(b)(5)(A)(ii), 9(b)(5)(B)(ii), 9(c)(4)(A)(ii), and 

15 9(c)(4)(B)(ii) of the Outer Continental Shelf 

16 Lands Act, as amended by this Act; 

17 (B)(i) during the period of October 1, 

18 2006, through September 30, 2015, 1 percent 

19 of all sums paid into the Treasury under sec20 tion 35 of the Mineral Leasing Act (30 U.S.C. 

21 191), and 

22 (ii) beginning October 1, 2015, and there23 after, 2.5 percent of all sums paid into the 

24 Treasury under section 35 of the Mineral Leas25 ing Act (30 U.S.C. 191); and 


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1 (C)(i) during the period of October 1, 

2 2006, through September 30, 2015, 1 percent 

3 of all sums paid into the Treasury from receipts 

4 derived from bonus bids and royalties from 

5 other mineral leasing on public lands, and 

6 (ii) beginning October 1, 2015, and there7 after, 2.5 percent of all sums paid into the 

8 Treasury from receipts derived from bonus bids 

9 and royalties from other mineral leasing on 

10 public lands. 

11 (3) INVESTMENTS.—The Secretary of the 

12 Treasury shall invest the amounts deposited under 

13 paragraph (2) and all accrued interest on the 

14 amounts deposited under paragraph (2) only in in15 terest bearing obligations of the United States or in 

16 obligations guaranteed as to both principal and in17 terest by the United States. 

18 (4) PAYMENT TO SECRETARY OF THE INTE19 RIOR.— 

20 (A) IN GENERAL.—Beginning with fiscal 

21 year 2007, and in each fiscal year thereafter, 

22 one-third of amounts deposited into the En23 hancement Fund, together with the interest 

24 thereon, shall be available, without fiscal year 

25 limitations, to the Secretary of the Interior for 


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1 use for the purposes described in subsection 

2 (b)(4). 

3 (B) WITHDRAWALS AND TRANSFER OF

4 FUNDS.—The Secretary of the Treasury shall 

5 withdraw such amounts from the Enhancement 

6 Fund as the Secretary of the Interior may re7 quest, subject to the limitation in subparagraph 

8 (A), and transfer such amounts to the Sec9 retary of the Interior to be used, at the discre10 tion of the Secretary of the Interior, by the 

11 Minerals Management Service, the Bureau of 

12 Land Management, and the United States Fish 

13 and Wildlife Service for use for the purposes 

14 described in subsection (b)(4). 

15 (5) PAYMENT TO STATES.— 

16 (A) IN GENERAL.—Beginning with fiscal 

17 year 2007, and in each fiscal year thereafter, 

18 two-thirds of amounts deposited into the En19 hancement Fund, together with the interest 

20 thereon, shall be available, without fiscal year 

21 limitations, to the States for use for the pur22 poses described in subsection (b)(4). 

23 (B) WITHDRAWALS AND TRANSFER OF

24 FUNDS.—Within the first 90 days of each fiscal 

25 year, the Secretary of the Treasury shall withVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00113 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 draw amounts from the Enhancement Fund 

2 and transfer such amounts to the States based 

3 on the proportion of all receipts that were col4 lected the previous fiscal year from Federal 

5 leases within the boundaries of each State and 

6 each State’s outer Continental Shelf Adjacent 

7 Zone as determined in accordance with section 

8 4(a) of the Outer Continental Shelf Lands Act 

9 (43 U.S.C. 1333(a)), as amended by this Act. 

10 (C) USE OF PAYMENTS BY STATE.—Each 

11 State shall use the payments made under sub12 paragraph (B) only for carrying out projects 

13 and programs for the purposes described in 

14 subsection (b)(4). 

15 (D) ENCOURAGE USE OF PRIVATE FUNDS

16 BY STATE.—Each State shall use the payments 

17 made under subparagraph (B) to leverage pri18 vate funds for carrying out projects for the pur19 poses described in subsection (b)(4). 

20 (e) LIMITATION ON USE.—Amounts made available 

21 under this section may not be used for the purchase of 

22 any interest in land. 

23 (f) REPORTS TO CONGRESS.— 

24 (1) IN GENERAL.—Beginning in fiscal year 

25 2008 and continuing for each fiscal year thereafter, 


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1 the Secretary of the Interior and each State receiv2 ing funds from the Enhancement Fund shall submit 

3 a report to the Committee on Energy and Natural 

4 Resources of the Senate and the Committee on Re5 sources of the House of Representatives. 

6 (2) REQUIRED INFORMATION.—Reports sub7 mitted to Congress by the Secretary of the Interior 

8 and States under this subsection shall include the 

9 following information regarding expenditures during 

10 the previous fiscal year: 

11 (A) A summary of pertinent scientific re12 search and surveys conducted to identify im13 pacts on wildlife, fish, and other natural re14 sources from energy and mineral developments. 

15 (B) A summary of projects planned and 

16 completed to maintain, improve or enhance 

17 wildlife and fish populations and their habitats 

18 or other natural resources. 

19 (C) A list of additional actions that assist, 

20 or would assist, in managing, including miti21 gating either onsite or offsite, or both, the im22 pacts of energy and mineral development on 

23 wildlife, fish, and other natural resources. 

24 (D) A summary of private (non-Federal) 

25 funds used to plan, conduct, and complete the 


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1 plans and programs identified in subparagraphs 

2 (A) and (B). 

3 SEC. 145. TERMINATION OF EFFECT OF LAWS PROHIBITING 

4 THE SPENDING OF APPROPRIATED FUNDS 

5 FOR CERTAIN PURPOSES. 

6 All provisions of existing Federal law prohibiting the 

7 spending of appropriated funds to conduct oil and natural 

8 gas leasing and preleasing activities, or to issue a lease 

9 to any person, for any area of the outer Continental Shelf 

10 shall have no force or effect. 

11 SEC. 146. OUTER CONTINENTAL SHELF INCOMPATIBLE 

12 USE. 

13 (a) IN GENERAL.—No Federal agency may permit 

14 construction or operation (or both) of any facility, or des15 ignate or maintain a restricted transportation corridor or 

16 operating area on the Federal outer Continental Shelf or 

17 in State waters, that will be incompatible with, as deter18 mined by the Secretary of the Interior, oil and gas or nat19 ural gas leasing and substantially full exploration and pro20 duction of tracts that are geologically prospective for oil 

21 or natural gas (or both). 

22 (b) EXCEPTIONS.—Subsection (a) shall not apply to 

23 any facility, transportation corridor, or operating area the 

24 construction, operation, designation, or maintenance of 

25 which is or will be— 


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1 (1) located in an area of the outer Continental 

2 Shelf that is unavailable for oil and gas or natural 

3 gas leasing by operation of law; 

4 (2) used for a military readiness activity (as de5 fined in section 315(f) of Public Law 107–314 (16 

6 U.S.C. 703 note)); or 

7 (3) required in the national interest, as deter8 mined by the President. 

9 SEC. 147. REPURCHASE OF CERTAIN LEASES. 

10 (a) AUTHORITY TO REPURCHASE AND CANCEL CER11 TAIN LEASES.—The Secretary of the Interior shall repur12 chase and cancel any Federal oil and gas, geothermal, 

13 coal, oil shale, tar sands, or other mineral lease, whether 

14 onshore or offshore, if the Secretary finds that such lease 

15 qualifies for repurchase and cancellation under the regula16 tions authorized by this section. 

17 (b) REGULATIONS.—Not later than 1 year after the 

18 date of the enactment of this Act, the Secretary shall pub19 lish a final regulation stating the conditions under which 

20 a lease referred to in subsection (a) would qualify for re21 purchase and cancellation, and the process to be followed 

22 regarding repurchase and cancellation. Such regulation 

23 shall include, but not be limited to, the following: 


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1 (1) The Secretary shall repurchase and cancel 

2 a lease after written request by the lessee upon a 

3 finding by the Secretary that— 

4 (A) a request by the lessee for a required 

5 permit or other approval complied with applica6 ble law, except the Coastal Zone Management 

7 Act of 1972 (16 U.S.C. 1451 et seq.), and 

8 terms of the lease and such permit or other ap9 proval was denied; 

10 (B) a Federal agency failed to act on a re11 quest by the lessee for a required permit, other 

12 approval, or administrative appeal within a reg13 ulatory or statutory time-frame associated with 

14 the requested action, whether advisory or man15 datory, or if none, within 180 days; or 

16 (C) a Federal agency attached a condition 

17 of approval, without agreement by the lessee, to 

18 a required permit or other approval if such con19 dition of approval was not mandated by Federal 

20 statute or regulation in effect on the date of 

21 lease issuance, or was not specifically allowed 

22 under the terms of the lease. 

23 (2) A lessee shall not be required to exhaust ad24 ministrative remedies regarding a permit request, 


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1 administrative appeal, or other required request for 

2 approval for the purposes of this section. 

3 (3) The Secretary shall make a final agency de4 cision on a request by a lessee under this section 

5 within 180 days of request. 

6 (4) Compensation to a lessee to repurchase and 

7 cancel a lease under this section shall be the amount 

8 that a lessee would receive in a restitution case for 

9 a material breach of contract. 

10 (5) Compensation shall be in the form of a 

11 check or electronic transfer from the Department of 

12 the Treasury from funds deposited into miscella13 neous receipts under the authority of the same Act 

14 that authorized the issuance of the lease being re15 purchased. 

16 (6) Failure of the Secretary to make a final 

17 agency decision on a request by a lessee under this 

18 section within 180 days of request shall result in a 

19 10 percent increase in the compensation due to the 

20 lessee if the lease is ultimately repurchased. 

21 (c) NO PREJUDICE.—This section shall not be inter22 preted to prejudice any other rights that the lessee would 

23 have in the absence of this section. 


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1 SEC. 148. OFFSITE ENVIRONMENTAL MITIGATION. 

2 Notwithstanding any other provision of law, any per3 son conducting activities under the Mineral Leasing Act 

4 (30 U.S.C. 181 et seq.), the Geothermal Steam Act of 

5 1970 (30 U.S.C. 1001 et seq.), the Mineral Leasing Act 

6 for Acquired Lands (30 U.S.C. 351 et seq.), the Weeks 

7 Law (Act of March 1, 1911), the Act of May 10, 1872 

8 (commonly known as the ‘‘General Mining Act of 1872’’) 

9 (30 U.S.C. 22 et seq.), the first section of the Act of July 

10 31, 1947 (commonly known as the ‘‘Materials Act of 

11 1947’’) (30 U.S.C. 601), or the Outer Continental Shelf 

12 Lands Act (43 U.S.C. 1331 et seq.), may in satisfying 

13 any mitigation requirements associated with such activi14 ties propose mitigation measures on a site away from the 

15 area impacted and the Secretary of the Interior shall ac16 cept these proposed measures if the Secretary finds that 

17 they generally achieve the purposes for which mitigation 

18 measures appertained. 

19 SEC. 149. AMENDMENTS TO THE MINERAL LEASING ACT. 

20 Section 17(g) of the Mineral Leasing Act (30 U.S.C. 

21 226(g)) is amended to read as follows: 

22 ‘‘(g) REGULATION OF SURFACE-DISTURBING ACTIVI23 TIES.— 

24 ‘‘(1) REGULATION OF SURFACE-DISTURBING

25 ACTIVITIES.—The Secretary of the Interior, or for 

26 National Forest lands, the Secretary of Agriculture, 


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1 shall regulate all surface-disturbing activities con2 ducted pursuant to any lease issued under this Act, 

3 and shall determine reclamation and other actions as 

4 required in the interest of conservation of surface re5 sources. 

6 ‘‘(2) SUBMISSION OF EXPLORATION PLAN; COM7 PLETION REVIEW; COMPLIANCE REVIEW.— 

8 ‘‘(A) Prior to beginning oil and gas explo9 ration activities, a lessee shall submit an explo10 ration plan to the Secretary of the Interior for 

11 review. 

12 ‘‘(B) The Secretary shall review the plan 

13 for completeness within 10 days of submission. 

14 ‘‘(C) In the event the exploration plan is 

15 determined to be incomplete, the Secretary shall 

16 notify the lessee in writing and specify the 

17 items or information needed to complete the ex18 ploration plan. 

19 ‘‘(D) The Secretary shall have 10 days to 

20 review any modified exploration plan submitted 

21 by the lessee. 

22 ‘‘(E) To be deemed complete, an explo23 ration plan shall include, in the degree of detail 

24 to be determined by the Secretary by rule or 

25 regulation— 


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1 ‘‘(i) a drilling plan containing a de2 scription of the drilling program; 

3 ‘‘(ii) the surface and projected com4 pletion zone location; 

5 ‘‘(iii) pertinent geologic data; 

6 ‘‘(iv) expected hazards, and proposed 

7 mitigation measures to address such haz8 ards; 

9 ‘‘(v) a schedule of anticipated explo10 ration activities to be undertaken; 

11 ‘‘(vi) a description of equipment to be 

12 used for such activities; 

13 ‘‘(vii) a certification from the lessee 

14 stating that the exploration plan complies 

15 with all lease, regulatory and statutory re16 quirements in effect on the date of the 

17 issuance of the lease and any regulations 

18 promulgated after the date of lease 

19 issuance related to the conservation of re20 sources; 

21 ‘‘(viii) evidence that the lessee has se22 cured an adequate bond, surety, or other 

23 financial arrangement prior to commence24 ment of any surface disturbing activity; 


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1 ‘‘(ix) a plan that details the complete 

2 and timely reclamation of the lease tract; 

3 and 

4 ‘‘(x) such other relevant information 

5 as the Secretary may by regulation require. 

6 ‘‘(F) Upon a determination that the explo7 ration plan is complete, the Secretary shall have 

8 30 days from the date the plan is deemed com9 plete to conduct a review of the plan. 

10 ‘‘(G) If the Secretary finds the exploration 

11 plan is not consistent with all statutory and 

12 regulatory requirements described in subpara13 graph (E)(vii), the Secretary shall notify the 

14 lessee with a detailed explanation of such modi15 fications of the exploration plan as are nec16 essary to achieve compliance. 

17 ‘‘(H) The lessee shall not take any action 

18 under the exploration plan within a 30 day re19 view period, or thereafter until the plan has 

20 been modified to achieve compliance as so noti21 fied. 

22 ‘‘(I) After review by the Secretary provided 

23 by this subsection, a lessee may operate pursu24 ant to the plan without further review or ap25 proval by the Secretary. 


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1 ‘‘(3) PLAN REVISIONS; CONDUCT OF EXPLO2 RATION ACTIVITIES.— 

3 ‘‘(A) If a significant revision of an explo4 ration plan under this subsection is submitted 

5 to the Secretary, the process to be used for the 

6 review of such revision shall be the same as set 

7 forth in paragraph (2) of this subsection. 

8 ‘‘(B) All exploration activities pursuant to 

9 any lease shall be conducted in accordance with 

10 an exploration plan that has been submitted to 

11 and reviewed by the Secretary or a revision of 

12 such plan. 

13 ‘‘(4) SUBMISSION OF DEVELOPMENT AND PRO14 DUCTION PLAN; COMPLETENESS REVIEW; COMPLI15 ANCE REVIEW.— 

16 ‘‘(A) Prior to beginning oil and gas devel17 opment and production activities, a lessee shall 

18 submit a development and exploration plan to 

19 the Secretary of the Interior. Upon submission, 

20 such plans shall be subject to a review for com21 pleteness. 

22 ‘‘(B) The Secretary shall review the plan 

23 for completeness within 30 days of submission. 

24 ‘‘(C) In the event a development and pro25 duction plan is determined to be incomplete, the 


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1 Secretary shall notify the lessee in writing and 

2 specify the items or information needed to com3 plete the plan. 

4 ‘‘(D) The Secretary shall have 30 days to 

5 review for completeness any modified develop6 ment and production plan submitted by the les7 see. 

8 ‘‘(E) To be deemed complete, a develop9 ment and production plan shall include, in the 

10 degree of detail to be determined by the Sec11 retary by rule or regulation— 

12 ‘‘(i) a drilling plan containing a de13 scription of the drilling program; 

14 ‘‘(ii) the surface and projected com15 pletion zone location; 

16 ‘‘(iii) pertinent geologic data; 

17 ‘‘(iv) expected hazards, and proposed 

18 mitigation measures to address such haz19 ards; 

20 ‘‘(v) a statement describing all facili21 ties and operations proposed by the lessee 

22 and known by the lessee (whether or not 

23 owned or operated by such lessee) that 

24 shall be constructed or utilized in the de25 velopment and production of oil or gas 


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1 from the leases areas, including the loca2 tion and site of such facilities and oper3 ations, the land, labor, material, and en4 ergy requirements associated with such fa5 cilities and operations; 

6 ‘‘(vi) the general work to be per7 formed; 

8 ‘‘(vii) the environmental safeguards to 

9 be implemented in connection with the de10 velopment and production and how such 

11 safeguards are to be implemented; 

12 ‘‘(viii) all safety standards to be met 

13 and how such standards are to be met; 

14 ‘‘(ix) an expected rate of development 

15 and production and a time schedule for 

16 performance; 

17 ‘‘(x) a certification from the lessee 

18 stating that the development and produc19 tion plan complies with all lease, regu20 latory, and statutory requirements in effect 

21 on the date of issuance of the lease, and 

22 any regulations promulgated after the date 

23 of lease issuance related to the conserva24 tion of resources; 


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1 ‘‘(xi) evidence that the lessee has se2 cured an adequate bond, surety, or other 

3 financial arrangement prior to commence4 ment of any surface disturbing activity; 

5 ‘‘(xii) a plan that details the complete 

6 and timely reclamation of the lease tract; 

7 and 

8 ‘‘(xiii) such other relevant information 

9 as the Secretary may by regulation require. 

10 ‘‘(F) Upon a determination that the devel11 opment and production plan is complete, the 

12 Secretary shall have 120 days from the date the 

13 plan is deemed complete to conduct a review of 

14 the plan. 

15 ‘‘(G) If the Secretary finds the develop16 ment and production plan is not consistent with 

17 all statutory and regulatory requirements de18 scribed in subparagraph (E)(x), the Secretary 

19 shall notify the lessee with a detailed expla20 nation of such modifications of the development 

21 and production plan as are necessary to achieve 

22 compliance. 

23 ‘‘(H) The lessee shall not take any action 

24 under the development and production plan 

25 within a 120 day review period, or thereafter 


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1 until the plan has been modified to achieve 

2 compliance as so notified. 

3 ‘‘(5) PLAN REVISIONS; CONDUCT OF DEVELOP4 MENT AND PRODUCTION ACTIVITIES.— 

5 ‘‘(A) If a significant revision of a develop6 ment and production plan under this subsection 

7 is submitted to the Secretary, the process to be 

8 used for the review of such revision shall be the 

9 same as set forth in paragraph (4) of this sub10 section. 

11 ‘‘(B) All development and production ac12 tivities pursuant to any lease shall be conducted 

13 in accordance with a development and produc14 tion plan that has been submitted to and re15 viewed by the Secretary or a revision of such 

16 plan. 

17 ‘‘(6) CANCELLATION OF LEASE ON FAILURE TO

18 SUBMIT PLAN OR COMPLY WITH APPROVED PLAN.— 

19 Whenever the owner of any lease fails to submit a 

20 plan in accordance with regulations issued under 

21 this section, or fails to comply with a plan, the lease 

22 may be canceled in accordance with section 31. Ter23 mination of a lease because of failure to comply with 

24 a plan, including required modifications or revisions, 

25 shall not entitle a lessee to any compensation.’’. 


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1 SEC. 150. MINERALS MANAGEMENT SERVICE. 

2 The bureau known as the ‘‘Minerals Management 

3 Service’’ in the Department of the Interior shall be known 

4 as the ‘‘National Ocean Resources and Royalty Service’’. 

5 SEC. 151. AUTHORITY TO USE DECOMMISSIONED OFF6 SHORE OIL AND GAS PLATFORMS AND 

7 OTHER FACILITIES FOR ARTIFICIAL REEF, 

8 SCIENTIFIC RESEARCH, OR OTHER USES. 

9 (a) SHORT TITLE.—This section may be cited as the 

10 ‘‘Rigs to Reefs Act of 2006’’. 

11 (b) IN GENERAL.—The Outer Continental Shelf 

12 Lands Act (43 U.S.C. 1301 et seq.) is amended by insert13 ing after section 9 the following: 

14 ‘‘SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND 

15 GAS PLATFORMS AND OTHER FACILITIES 

16 FOR ARTIFICIAL REEF, SCIENTIFIC RE17 SEARCH, OR OTHER USES. 

18 ‘‘(a) IN GENERAL.—The Secretary shall issue regula19 tions under which the Secretary may authorize use of an 

20 offshore oil and gas platform or other facility that is de21 commissioned from service for oil and gas purposes for 

22 an artificial reef, scientific research, or any other use au23 thorized under section 8(p) or any other applicable Fed24 eral law. 

25 ‘‘(b) TRANSFER REQUIREMENTS.—The Secretary 

26 shall not allow the transfer of a decommissioned offshore 


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1 oil and gas platform or other facility to another person 

2 unless the Secretary is satisfied that the transferee is suf3 ficiently bonded, endowed, or otherwise financially able to 

4 fulfill its obligations, including— 

5 ‘‘(1) ongoing maintenance of the platform or 

6 other facility; 

7 ‘‘(2) any liability obligations that might arise; 

8 ‘‘(3) removal of the platform or other facility if 

9 determined necessary by the Secretary; and 

10 ‘‘(4) any other requirements and obligations 

11 that the Secretary may deem appropriate by regula12 tion. 

13 ‘‘(c) PLUGGING AND ABANDONMENT.—The Sec14 retary shall ensure that plugging and abandonment of 

15 wells is accomplished at an appropriate time. 

16 ‘‘(d) POTENTIAL TO PETITION TO OPT-OUT OF REG17 ULATIONS.—An Adjacent State acting through a resolu18 tion of its legislature, with concurrence of its Governor, 

19 may preliminarily petition to opt-out of the application of 

20 regulations promulgated under this section to platforms 

21 and other facilities located in the area of its Adjacent Zone 

22 within 12 miles of the coastline. Upon receipt of the pre23 liminary petition, the Secretary shall complete an environ24 mental assessment that documents the anticipated envi25 ronmental effects of approving the petition. The Secretary 


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1 shall provide the environmental assessment to the State, 

2 which then has the choice of no action or confirming its 

3 petition by further action of its legislature, with the con4 currence of its Governor. The Secretary is authorized to 

5 except such area from the application of such regulations, 

6 and shall approve any confirmed petition. 

7 ‘‘(e) LIMITATION ON LIABILITY.—A person that had 

8 used an offshore oil and gas platform or other facility for 

9 oil and gas purposes and that no longer has any ownership 

10 or control of the platform or other facility shall not be 

11 liable under Federal law for any costs or damages arising 

12 from such platform or other facility after the date the plat13 form or other facility is used for any purpose under sub14 section (a), unless such costs or damages arise from— 

15 ‘‘(1) use of the platform or other facility by the 

16 person for development or production of oil or gas; 

17 or 

18 ‘‘(2) another act or omission of the person. 

19 ‘‘(f) OTHER LEASING AND USE NOT AFFECTED.— 

20 This section, and the use of any offshore oil and gas plat21 form or other facility for any purpose under subsection 

22 (a), shall not affect— 

23 ‘‘(1) the authority of the Secretary to lease any 

24 area under this Act; or 


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1 ‘‘(2) any activity otherwise authorized under 

2 this Act.’’. 

3 (c) DEADLINE FOR REGULATIONS.—The Secretary of 

4 the Interior shall issue regulations under subsection (b) 

5 by not later than 180 days after the date of the enactment 

6 of this Act. 

7 (d) STUDY AND REPORT ON EFFECTS OF REMOVAL

8 OF PLATFORMS.—Not later than 1 year after the date of 

9 enactment of this Act, the Secretary of the Interior, in 

10 consultation with other Federal agencies as the Secretary 

11 deems advisable, shall study and report to the Congress 

12 regarding how the removal of offshore oil and gas plat13 forms and other facilities from the outer Continental Shelf 

14 would affect existing fish stocks and coral populations. 

15 SEC. 152. REPEAL OF REQUIREMENT TO CONDUCT COM16 PREHENSIVE INVENTORY OF OCS OIL AND 

17 NATURAL GAS RESOURCES. 

18 The Energy Policy Act of 2005 (Public Law 109– 

19 58) is amended— 

20 (1) by repealing section 357 (119 Stat. 720; 42 

21 U.S.C. 15912); and 

22 (2) in the table of contents in section 1(b), by 

23 striking the item relating to such section 357. 


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1 SEC. 153. MINING AND PETROLEUM SCHOOLS. 

2 (a) FEDERAL ENERGY AND MINERAL RESOURCES

3 PROFESSIONAL DEVELOPMENT FUND.— 

4 (1) PROFESSIONAL DEVELOPMENT FUND.— 

5 There is established in the Treasury a separate ac6 count to be known as the ‘‘Federal Energy and Min7 eral Resources Professional Development Fund’’ (in 

8 this section referred to as the ‘‘Professional Develop9 ment Fund’’). 

10 (2) FUNDING.—The Secretary of the Treasury 

11 shall deposit in the Professional Development 

12 Fund— 

13 (A) such sums as are provided by sections 

14 9(b)(5)(A)(iii), 9(b)(5)(B)(iii), 9(c)(4)(A)(iii), 

15 and 9(c)(4)(B)(iii) of the Outer Continental 

16 Shelf Lands Act, as amended by this Act; 

17 (B)(i) during the period of October 1, 

18 2006, through September 30, 2015, 1 percent 

19 of all sums paid into the Treasury under sec20 tion 35 of the Mineral Leasing Act (30 U.S.C. 

21 191); and 

22 (ii) beginning October 1, 2015, and there23 after, 2.5 percent of all sums paid into the 

24 Treasury under section 35 of the Mineral Leas25 ing Act (30 U.S.C. 191); 


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1 (C)(i) during the period of October 1, 

2 2006, through September 30, 2015, 1 percent 

3 of all sums paid into the Treasury from receipts 

4 derived from bonus bids and royalties from 

5 other mineral leasing on public lands; and 

6 (ii) beginning October 1, 2015, and there7 after, 2.5 percent of all sums paid into the 

8 Treasury from receipts derived from bonus bids 

9 and royalties from other mineral leasing on 

10 public lands; 

11 (D) donations received under paragraph 

12 (4); 

13 (E) amounts referred to in section 2325 of 

14 the Revised Statutes (30 U.S.C. 29); and 

15 (F) funds received under section 10 of the 

16 Energy and Mineral Schools Reinvestment Act, 

17 as designated and amended by subsection (b) of 

18 this section. 

19 (3) INVESTMENTS.—The Secretary of the 

20 Treasury shall invest the amounts deposited under 

21 paragraph (2) and all accrued interest on the 

22 amounts deposited under paragraph (2) only in in23 terest bearing obligations of the United States or in 

24 obligations guaranteed as to both principal and in25 terest by the United States. 


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1 (4) DONATIONS.—The Secretary of the Interior 

2 may solicit and accept donations of funds for deposit 

3 into the Professional Development Fund. 

4 (5) AVAILABILITY TO SECRETARY OF THE IN5 TERIOR.— 

6 (A) IN GENERAL.—Beginning with fiscal 

7 year 2007, and in each fiscal year thereafter, 

8 the amounts deposited into the Professional De9 velopment Fund, together with the interest 

10 thereon, shall be available, without fiscal year 

11 limitations, to the Secretary of the Interior for 

12 use to carry out the Energy and Mineral 

13 Schools Reinvestment Act, as designated and 

14 amended by subsection (b) of this section. 

15 (B) WITHDRAWALS AND TRANSFER OF

16 FUNDS.—The Secretary of the Treasury shall 

17 withdraw such amounts from the Professional 

18 Development Fund as the Secretary of the Inte19 rior may request and transfer such amounts to 

20 the Secretary of the Interior to be used, at the 

21 discretion of the Secretary to carry out the En22 ergy and Mineral Schools Reinvestment Act, as 

23 designated and amended by subsection (b) of 

24 this section. 


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1 (b) MAINTENANCE AND RESTORATION OF EXISTING

2 AND HISTORIC PETROLEUM AND MINING ENGINEERING

3 PROGRAMS.—Public Law 98–409 (30 U.S.C. 1221 et 

4 seq.) is amended to read as follows: 

5 ‘‘SECTION 1. SHORT TITLE. 

6 ‘‘This Act may be cited as the ‘Energy and Mineral 

7 Schools Reinvestment Act’. 

8 ‘‘SEC. 2. POLICY. 

9 ‘‘It is the policy of the United States to maintain the 

10 human capital needed to preserve and foster the economic, 

11 energy, and mineral resources security of the United 

12 States. The petroleum and mining engineering programs 

13 and the applied geology and geophysics programs at State 

14 chartered schools, universities, and institutions that 

15 produce human capital are national assets and should be 

16 assisted with Federal funds to ensure their continued 

17 health and existence. 

18 ‘‘SEC. 3. MAINTAINING AND RESTORING HISTORIC AND EX19 ISTING PETROLEUM AND MINING ENGINEER20 ING EDUCATION PROGRAMS. 

21 ‘‘(a) Using the funds in the Federal Energy and Min22 eral Resources Professional Development Fund estab23 lished under section 153(a)(1) of the Deep Ocean Energy 

24 Resources Act of 2006, the Secretary of the Interior (in 

25 this Act referred to as the ‘Secretary’) shall provide funds 


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1 to each historic and existing State-chartered recognized 

2 petroleum or mining school to assist such schools, univer3 sities, and institutions in maintaining programs in petro4 leum, mining, and mineral engineering education and re5 search. All funds shall be directed only to these programs 

6 and shall be subject to the conditions of this section. Such 

7 funds shall not be less than 33 percent of the annual out8 lay of funds under this Act. 

9 ‘‘(b) In this Act, the term ‘historic and existing State10 chartered recognized petroleum or mining school’ means 

11 a school, university, or educational institution with the 

12 presence of an engineering program meeting the specific 

13 program criteria, established by the member societies of 

14 ABET, Inc., for petroleum, mining, or mineral engineer15 ing and that is accredited on the date of enactment of 

16 the Deep Ocean Energy Resources Act of 2006 by ABET, 

17 Inc. 

18 ‘‘(c) It shall be the duty of each school, university, 

19 or institution receiving funds under this section to provide 

20 for and enhance the training of undergraduate and grad21 uate petroleum, mining, and mineral engineers through re22 search, investigations, demonstrations, and experiments. 

23 All such work shall be carried out in a manner that will 

24 enhance undergraduate education. 


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1 ‘‘(d) Each school, university, or institution receiving 

2 funds under this Act shall maintain the program for which 

3 the funds are provided for 10 years after the date of the 

4 first receipt of such funds and take steps agreed to by 

5 the Secretary to increase the number of undergraduate 

6 students enrolled in and completing the programs of study 

7 in petroleum, mining, and mineral engineering. 

8 ‘‘(e) The research, investigation, demonstration, ex9 periment, and training authorized by this section may in10 clude development and production of conventional and 

11 non-conventional fuel resources, the production of metallic 

12 and non-metallic mineral resources including industrial 

13 mineral resources, and the production of stone, sand, and 

14 gravel. In all cases the work carried out with funds made 

15 available under this Act shall include a significant oppor16 tunity for participation by undergraduate students. 

17 ‘‘(f) Research funded by this Act related to energy 

18 and mineral resource development and production may in19 clude studies of petroleum, mining, and mineral extraction 

20 and immediately related beneficiation technology; mineral 

21 economics, reclamation technology and practices for active 

22 operations, and the development of re-mining systems and 

23 technologies to facilitate reclamation that fosters the ulti24 mate recovery of resources at abandoned petroleum, min25 ing, and aggregate production sites. 


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1 ‘‘(g) Grants for basic science and engineering studies 

2 and research shall not require additional participation by 

3 funding partners. Grants for studies to demonstrate the 

4 proof of concept for science and engineering or the dem5 onstration of feasibility and implementation shall include 

6 participation by industry and may include funding from 

7 other Federal agencies. 

8 ‘‘(h)(1) No funds made available under this section 

9 shall be applied to the acquisition by purchase or lease 

10 of any land or interests therein, or the rental, purchase, 

11 construction, preservation, or repair of any building. 

12 ‘‘(2) Funding made available under this section may 

13 be used with the express approval of the Secretary for pro14 posals that will provide for maintaining or upgrading of 

15 existing laboratories and laboratory equipment. Funding 

16 for such maintenance shall not be used for university over17 head expenses. 

18 ‘‘(3) Funding made available under this Act may be 

19 used for maintaining and upgrading mines and oil and gas 

20 drilling rigs owned by a school, university, or institution 

21 described in this section that are used for undergraduate 

22 and graduate training and worker safety training. All re23 quests for funding such mines and oil and gas drilling rigs 

24 must demonstrate that they have been owned by the 

25 school, university, or institution for 5 years prior to the 


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•S 3926 IS

1 date of enactment of the Deep Ocean Energy Resources 

2 Act of 2006 and have been actively used for instructional 

3 or training purposes during that time. 

4 ‘‘(4) Any funding made available under this section 

5 for research, investigation, demonstration, experiment, or 

6 training shall not be used for university overhead charges 

7 in excess of 10 percent of the amount authorized by the 

8 Secretary. 

9 ‘‘SEC. 4. FORMER AND NEW PETROLEUM AND MINING ENGI10 NEERING PROGRAMS. 

11 ‘‘A school, university, or educational institution that 

12 formerly met the requirements of section 3(b) immediately 

13 before the date of the enactment of the Deep Ocean En14 ergy Resources Act of 2006, or that seeks to establish a 

15 new program described in section 3(b), shall be eligible 

16 for funding under this Act only if it— 

17 ‘‘(1) establishes a petroleum, mining, or mineral 

18 engineering program that meets the specific program 

19 criteria and is accredited as such by ABET, Inc.; 

20 ‘‘(2) agrees to the conditions of subsections (c) 

21 through (h) of section 3 and the Secretary, as ad22 vised by the Committee established by section 11, 

23 determines that the program will strengthen and in24 crease the number of nationally available, wellVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00140 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 qualified faculty members in petroleum, mining, and 

2 mineral engineering; and 

3 ‘‘(3) agrees to maintain the accredited program 

4 for 10 years after the date of the first receipt of 

5 funds under this Act. 

6 ‘‘SEC. 5. FUNDING OF CONSORTIA OF HISTORIC AND EXIST7 ING SCHOOLS. 

8 ‘‘Where appropriate, the Secretary may make funds 

9 available to consortia of schools, universities, or institu10 tions described in sections 3, 4, and 6, including those con11 sortia that include schools, universities, or institutions 

12 that are ineligible for funds under this Act if those schools, 

13 universities, or institutions, respectively, have skills, pro14 grams, or facilities specifically identified as needed by the 

15 consortia to meet the necessary expenses for purposes of— 

16 ‘‘(1) specific energy and mineral research 

17 projects of broad application that could not other18 wise be undertaken, including the expenses of plan19 ning and coordinating regional petroleum, geo20 thermal, mining, and mineral engineering or 

21 beneficiation projects by 2 or more schools; and 

22 ‘‘(2) research into any aspects of petroleum, 

23 geothermal, mining, or mineral engineering or 

24 beneficiation problems, including exploration, that 

25 are related to the mission of the Department of the 


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1 Interior and that are considered by the Committee 

2 to be desirable. 

3 ‘‘SEC. 6. SUPPORT FOR SCHOOLS WITH ENERGY AND MIN4 ERAL RESOURCE PROGRAMS IN PETROLEUM 

5 AND MINERAL EXPLORATION GEOLOGY, PE6 TROLEUM GEOPHYSICS, OR MINING GEO7 PHYSICS. 

8 ‘‘(a) 20 percent of the annual outlay of funds under 

9 this Act may be granted to schools, universities, and insti10 tutions other than those described in sections 3 and 4. 

11 ‘‘(b) The Secretary, as advised by the Committee es12 tablished by section 11, shall determine the eligibility of 

13 a college or university to receive funding under this Act 

14 using criteria that include— 

15 ‘‘(1) the presence of a substantial program of 

16 undergraduate and graduate geoscience instruction 

17 and research in 1 or more of the following special18 ties: petroleum geology, geothermal geology, mineral 

19 exploration geology, economic geology, industrial 

20 minerals geology, mining geology, petroleum geo21 physics, mining geophysics, geological engineering, 

22 or geophysical engineering that has a demonstrated 

23 history of achievement; 

24 ‘‘(2) evidence of institutional commitment for 

25 the purposes of this Act that includes a significant 


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1 opportunity for participation by undergraduate stu2 dents in research; 

3 ‘‘(3) evidence that such school, university, or in4 stitution has or can obtain significant industrial co5 operation in activities within the scope of this Act; 

6 ‘‘(4) agreement by the school, university, or in7 stitution to maintain the programs for which the 

8 funding is sought for the 10-year period beginning 

9 on the date the school, university, or institution first 

10 receives such funds; and 

11 ‘‘(5) requiring that such funding shall be for 

12 the purposes set forth in subsections (c) through (h) 

13 of section 3 and subject to the conditions set forth 

14 in section 3(h). 

15 ‘‘SEC. 7. DESIGNATION OF FUNDS FOR SCHOLARSHIPS AND 

16 FELLOWSHIPS. 

17 ‘‘(a) The Secretary shall utilize 19 percent of the an18 nual outlay of funds under this Act for the purpose of 

19 providing merit-based scholarships for undergraduate edu20 cation, graduate fellowships, and postdoctoral fellowships. 

21 ‘‘(b) In order to receive a scholarship or a graduate 

22 fellowship, an individual student must be a lawful perma23 nent resident of the United States or a United States cit24 izen and must agree in writing to complete a course of 

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1 eral engineering, petroleum geology, geothermal geology, 

2 mining and economic geology, petroleum and mining geo3 physics, or mineral economics. 

4 ‘‘(c) The regulations required by section 9 shall re5 quire that an individual, in order to retain a scholarship 

6 or graduate fellowship, must continue in 1 of the course 

7 of studies listed in subsection (b) of this section, must re8 main in good academic standing, as determined by the 

9 school, institution, or university and must allow for rein10 statement of the scholarship or graduate fellowship by the 

11 Secretary, upon the recommendation of the school or insti12 tution. Such regulations may also provide for recovery of 

13 funds from an individual who fails to complete any of the 

14 courses of study listed in subsection (b) of this section 

15 after notice that such completion is a requirement of re16 ceipt funding under this Act. 

17 ‘‘SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS. 

18 ‘‘(a) Each application for funds under this Act shall 

19 state, among other things, the nature of the project to be 

20 undertaken; the period during which it will be pursued; 

21 the qualifications of the personnel who will direct and con22 duct it; the estimated costs; the importance of the project 

23 to the Nation, region, or States concerned; its relation to 

24 other known research projects theretofore pursued or 

25 being pursued; the extent to which the proposed project 


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1 will maximize the opportunity for the training of under2 graduate petroleum, mining, and mineral engineers; geolo3 gists and geophysicists; and the extent of participation by 

4 nongovernmental sources in the project. 

5 ‘‘(b) No funds shall be made available under this Act 

6 except for a project approved by the Secretary. All funds 

7 shall be made available upon the basis of merit of the 

8 project, the need for the knowledge that it is expected to 

9 produce when completed, and the opportunity it provides 

10 for the undergraduate training of individuals as petro11 leum, mining, and mineral engineers, geologists, and geo12 physicists. 

13 ‘‘(c) Funds available under this Act shall be paid at 

14 such times and in such amounts during each fiscal year 

15 as determined by the Secretary, and upon vouchers ap16 proved by the Secretary. Each school, university, or insti17 tution that receives funds under this Act shall— 

18 ‘‘(1) establish its plan to provide for the train19 ing of individuals as petroleum, mining, and mineral 

20 engineers, geologists, and geophysicists under a cur21 riculum appropriate to the field of mineral resources 

22 and mineral engineering and related fields; 

23 ‘‘(2) establish policies and procedures that as24 sure that Federal funds made available under this 

25 Act for any fiscal year will supplement and, to the 


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1 extent practicable, increase the level of funds that 

2 would, in the absence of such Federal funds, be 

3 made available for purposes of this Act, and in no 

4 case supplant such funds; and 

5 ‘‘(3) have an officer appointed by its governing 

6 authority who shall receive and account for all funds 

7 paid under this Act and shall make an annual report 

8 to the Secretary on or before the first day of Sep9 tember of each year, on work accomplished and the 

10 status of projects underway, together with a detailed 

11 statement of the amounts received under this Act 

12 during the preceding fiscal year, and of its disburse13 ments on schedules prescribed by the Secretary. 

14 ‘‘(d) If any of the funds received by the authorized 

15 receiving officer of a program under this Act are found 

16 by the Secretary to have been improperly diminished, lost, 

17 or misapplied, such funds shall be recovered by the Sec18 retary. 

19 ‘‘(e) Schools, universities, and institutions receiving 

20 funds under this Act are authorized and encouraged to 

21 plan and conduct programs under this Act in cooperation 

22 with each other and with such other agencies, business en23 terprises and individuals. 


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1 ‘‘SEC. 9. DUTIES OF SECRETARY. 

2 ‘‘(a) The Secretary, acting through the Assistant Sec3 retary for Land and Minerals Management, shall admin4 ister this Act and shall prescribe such rules and regula5 tions as may be necessary to carry out its provisions not 

6 later than 1 year after the enactment of the Deep Ocean 

7 Energy Resources Act of 2006. 

8 ‘‘(b)(1) There is established in the Department of the 

9 Interior, under the supervision of the Assistant Secretary 

10 for Land and Minerals Management, an office to be known 

11 as the Office of Petroleum and Mining Schools (hereafter 

12 in this Act referred to as the ‘Office’) to administer the 

13 provisions of this Act. There shall be a Director of the 

14 Office who shall be a member of the Senior Executive 

15 Service. The position of the Director shall be allocated 

16 from among the existing Senior Executive Service posi17 tions at the Department of the Interior and shall be a 

18 career reserved position as defined in section 3132(a)(8) 

19 of title 5, United States Code. 

20 ‘‘(2) The Director is authorized to appoint a Deputy 

21 Director and to employ such officers and employees as 

22 may be necessary to enable the Office to carry out its func23 tions, not to exceed fifteen. Such appointments shall be 

24 made from existing positions at the Department of the In25 terior, and shall be subject to the provisions of title 5, 

26 United States Code, governing appointments in the comVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 petitive service. Such positions shall be paid in accordance 

2 with the provisions of chapter 51 and subchapter III of 

3 chapter 53 of such title relating to classification and Gen4 eral Schedule pay rates. 

5 ‘‘(3) In carrying out his or her functions, the Director 

6 shall assist and advise the Secretary and the Committee 

7 established by section 11 of this Act by 

8 ‘‘(A) providing professional and administrative 

9 staff support for the Committee including record10 keeping and maintaining minutes of all Committee 

11 and subcommittee meetings; 

12 ‘‘(B) coordinating the activities of the Com13 mittee with Federal agencies and departments, and 

14 the schools, universities, and institutions to which 

15 funds are provided under this Act; 

16 ‘‘(C) maintaining accurate records of funds dis17 bursed for all scholarships, fellowships, research 

18 grants, and grants for career technical education 

19 purposes; 

20 ‘‘(D) preparing any regulations required to im21 plement this Act; 

22 ‘‘(E) conducting site visits at schools, univer23 sities, and institutions receiving funding under this 

24 Act; and 


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1 ‘‘(F) serving as a central repository for reports 

2 and clearing house for public information on re3 search funded by this Act. 

4 ‘‘(4) The Director or an employee of the Office shall 

5 be present at each meeting of the Committee established 

6 by section 11 or a subcommittee of such Committee. 

7 ‘‘(5) The Director is authorized to contract with pub8 lic or private agencies, institutions, and organizations and 

9 with individuals without regard to section 3324(a) and (b) 

10 of title 31, United States Code, and section 5 of title 41, 

11 United States Code, in carrying out his or her functions. 

12 ‘‘(6) As needed the Director shall ascertain whether 

13 the requirements of this Act have been met by schools, 

14 universities, institutions, and individuals, including the 

15 payment of any revenues derived from patents into the 

16 fund created by section 153(a)(1) of the Deep Ocean En17 ergy Resources Act of 2006 as required by section 10(d) 

18 of this Act. 

19 ‘‘(c) The Secretary, acting through the Office of Pe20 troleum and Mining Schools, shall furnish such advice and 

21 assistance as will best promote the purposes of this Act, 

22 shall participate in coordinating research, investigations, 

23 demonstrations, and experiments initiated under this Act, 

24 shall indicate to schools, universities, and institutions re25 ceiving funds under this Act such lines of inquiry that 


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1 seem most important, and shall encourage and assist in 

2 the establishment and maintenance of cooperation between 

3 such schools, universities, and institutions, other research 

4 organizations, the Department of the Interior, and other 

5 Federal agencies. 

6 ‘‘(d) The Secretary shall establish procedures— 

7 ‘‘(1) to ensure that each employee and con8 tractor of the Office established by this section and 

9 each member of the committee established by section 

10 11 of this Act shall disclose to the Secretary any fi11 nancial interests in or financial relationships with 

12 schools, universities, institutions or individuals re13 ceiving funds, scholarships or fellowships under this 

14 Act; 

15 ‘‘(2) to require any employee, contractor, or 

16 member of the committee with a financial relation17 ship disclosed under paragraph (1) to recuse them18 selves from— 

19 ‘‘(A) any recommendation or decision re20 garding the awarding of funds, scholarships or 

21 fellowships; or 

22 ‘‘(B) any review, report, analysis or inves23 tigation regarding compliance with the provi24 sions of this Act by a school, university, institu25 tion or any individual. 


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1 ‘‘(e) On or before the first day of July of each year 

2 beginning after the date of enactment of this sentence, 

3 schools, universities, and institutions receiving funds 

4 under this Act shall certify compliance with this Act and 

5 upon request of the Director of the office established by 

6 this section provide documentation of such compliance. 

7 ‘‘(f) An individual granted a scholarship or fellowship 

8 with funds provided under this Act shall through their re9 spective school, university, or institution, advise the Direc10 tor of the office established by this Act of progress towards 

11 completion of the course of studies and upon the awarding 

12 of the degree within 30 days after the award. 

13 ‘‘(g) The regulations required by this section shall in14 clude a preference for veterans and service members who 

15 have received or will receive either the Afghanistan Cam16 paign Medal or the Iraq Campaign Medal as authorized 

17 by Public Law 108–234 (10 U.S.C. 1121 note), and Exec18 utive Order 13363 (69 Fed. Reg. 70175; relating to estab19 lishing the Afghanistan and Iraq Campaign Medals). 

20 ‘‘SEC. 10. COORDINATION. 

21 ‘‘(a) Nothing in this Act shall be construed to impair 

22 or modify the legal relationship existing between any of 

23 the schools, universities, and institutions under whose di24 rection a program is established with funds provided under 

25 this Act and the government of the State in which it is 


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1 located. Nothing in this Act shall in any way be construed 

2 to authorize Federal control or direction of education at 

3 any school, university, or institution. 

4 ‘‘(b) The programs authorized by this Act are in5 tended to enhance the Nation’s petroleum, mining, and 

6 mineral engineering education programs and to enhance 

7 educational programs in petroleum and mining exploration 

8 and to increase the number of individuals enrolled in and 

9 completing these programs. To achieve this intent, the 

10 Secretary and the Committee established by section 11 

11 shall receive the continuing advice and cooperation of all 

12 agencies of the Federal Government concerned with the 

13 identification, exploration, and development of energy and 

14 mineral resources. 

15 ‘‘(c) Nothing in this Act is intended to give or shall 

16 be construed as giving the Secretary any authority over 

17 mining and mineral resources research conducted by any 

18 agency of the Federal Government, or as repealing or di19 minishing existing authorities or responsibilities of any 

20 agency of the Federal Government to plan and conduct, 

21 contract for, or assist in research in its area of responsi22 bility and concern with regard to mining and mineral re23 sources. 

24 ‘‘(d) The schools, universities, and institutions receiv25 ing funding under this Act shall make detailed reports to 


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1 the Office of Petroleum and Mining Schools on projects 

2 completed, in progress, or planned with funds provided 

3 under this Act. All such reports shall available to the pub4 lic on not less than an annual basis through the Office 

5 of Petroleum and Mining Schools. All uses, products, proc6 esses, patents, and other developments resulting from any 

7 research, demonstration, or experiment funded in whole 

8 or in part under this Act shall be made available promptly 

9 to the general public, subject to exception or limitation, 

10 if any, as the Secretary may find necessary in the interest 

11 of national security. Schools, universities, and institutions 

12 receiving patents for inventions funded in whole or in part 

13 under this Act shall be governed by the applicable Federal 

14 law, except that 1 percent of gross annual revenues due 

15 to the holders of the patents that are derived from such 

16 patents shall be paid by the holders of the patents to the 

17 Federal Energy and Mineral Resources Professional De18 velopment Fund established by section 153(a)(1) of the 

19 Deep Ocean Energy Resources Act of 2006. 

20 ‘‘SEC. 11. COMMITTEE ON PETROLEUM, MINING, AND MIN21 ERAL ENGINEERING AND ENERGY AND MIN22 ERAL RESOURCE EDUCATION. 

23 ‘‘(a) The Secretary shall appoint a Committee on Pe24 troleum, Mining, and Mineral Engineering and Energy 

25 and Mineral Resource Education composed of— 


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1 ‘‘(1) the Assistant Secretary of the Interior re2 sponsible for land and minerals management and 

3 not more than 16 other persons who are knowledge4 able in the fields of mining and mineral resources re5 search, including 2 university administrators, 1 of 

6 whom shall be from historic and existing petroleum 

7 and mining schools; a community, technical, or tribal 

8 college administrator; a career technical education 

9 educator; 6 representatives equally distributed from 

10 the petroleum, mining, and aggregate industries; a 

11 working miner; a working oilfield worker; a rep12 resentative of the Interstate Oil and Gas Compact 

13 Commission; a representative from the Interstate 

14 Mining Compact Commission; a representative from 

15 the Western Governors Association; a representative 

16 of the State geologists, and a representative of a 

17 State mining and reclamation agency. In making 

18 these 16 appointments, the Secretary shall consult 

19 with interested groups. 

20 ‘‘(2) The Assistant Secretary for Land and 

21 Minerals Management, in the capacity of the Chair22 man of the Committee, may have present during 

23 meetings of the Committee representatives of Fed24 eral agencies with responsibility for energy and min25 erals resources management, energy and mineral reVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00154 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 source investigations, energy and mineral commodity 

2 information, international trade in energy and min3 eral commodities, mining safety regulation and mine 

4 safety research, and research into the development, 

5 production, and utilization of energy and mineral 

6 commodities. These representatives shall serve as 

7 technical advisors to the committee and shall have 

8 no voting responsibilities. 

9 ‘‘(b) The Committee shall consult with, and make rec10 ommendations to, the Secretary on all matters relating to 

11 funding energy and mineral resources research, the award12 ing of scholarships and fellowships and allocation of fund13 ing made under this Act. The Secretary shall consult with 

14 and carefully consider recommendations of the Committee 

15 in such matters. 

16 ‘‘(c) Committee members, other than officers or em17 ployees of Federal, State, or local governments, shall be, 

18 for each day (including traveltime) during which they are 

19 performing Committee business, paid at a rate fixed by 

20 the Secretary but not in excess of the daily equivalent of 

21 the maximum rate of pay for level IV of the Executive 

22 Schedule under section 5315 of title 5, United States 

23 Code, and shall be fully reimbursed for travel, subsistence, 

24 and related expenses. 


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1 ‘‘(d) The Committee shall be chaired by the Assistant 

2 Secretary of the Interior responsible for land and minerals 

3 management. There shall also be elected a Vice Chairman 

4 by the Committee from among the members referred to 

5 in this section. The Vice Chairman shall perform such du6 ties as are determined to be appropriate by the committee, 

7 except that the Chairman of the Committee must person8 ally preside at all meetings of the full Committee. The 

9 Committee may organize itself into such subcommittees as 

10 the Committee may deem appropriate. 

11 ‘‘(e) Following completion of the report required by 

12 section 385 of the Energy Policy Act of 2005 (119 Stat. 

13 744), the Committee shall consider the recommendations 

14 of the report, ongoing efforts in the schools, universities, 

15 and institutions receiving funding under this Act, the Fed16 eral and State Governments, and the private sector, and 

17 shall formulate and recommend to the Secretary a na18 tional plan for a program utilizing the fiscal resources pro19 vided under this Act. The Committee shall submit such 

20 plan to the Secretary for approval. Upon approval, the 

21 plan shall guide the Secretary and the Committee in their 

22 actions under this Act. 

23 ‘‘(f) Section 10 of the Federal Advisory Committee 

24 Act (5 U.S.C. App. 2) shall not apply to the Committee. 


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1 ‘‘SEC. 12. CAREER TECHNICAL EDUCATION. 

2 ‘‘(a) Up to 25 percent of the annual outlay of funds 

3 under this Act may be granted to schools or institutions 

4 including colleges, universities, community colleges, tribal 

5 colleges, technical institutes, and secondary schools, other 

6 than those described in sections 3, 4, 5, and 6. 

7 ‘‘(b) The Secretary, as advised by the Committee es8 tablished under section 11, shall determine the eligibility 

9 of a school or institution to receive funding under this sec10 tion using criteria that include— 

11 ‘‘(1) the presence of a State-approved program 

12 in mining engineering technology, petroleum engi13 neering technology, industrial engineering tech14 nology, or industrial technology that— 

15 ‘‘(A) is focused on technology and its use 

16 in energy and mineral production and related 

17 maintenance, operational safety, or energy in18 frastructure protection and security; 

19 ‘‘(B) prepares students for advanced or su20 pervisory roles in the mining industry or the pe21 troleum industry; and 

22 ‘‘(C) grants either an associate’s degree or 

23 a baccalaureate degree in 1 of the subjects list24 ed in subparagraph (A); 

25 ‘‘(2) the presence of a program, including a sec26 ondary school vocational education program or caVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 reer academy, that provides training for individuals 

2 entering the petroleum, coal mining, or mineral min3 ing industries; or 

4 ‘‘(3) the presence of a State-approved program 

5 of career technical education at a secondary school, 

6 offered cooperatively with a community college in 1 

7 of the industrial sectors of— 

8 ‘‘(A) agriculture, forestry, or fisheries; 

9 ‘‘(B) utilities; 

10 ‘‘(C) construction; 

11 ‘‘(D) manufacturing; and 

12 ‘‘(E) transportation and warehousing. 

13 ‘‘(c) Schools or institutions receiving funds under this 

14 section must show evidence of an institutional commit15 ment for the purposes of career technical education and 

16 provide evidence that the school or institution has received 

17 or will receive industry cooperation in the form of equip18 ment, employee time, or donations of funds to support the 

19 activities that are within the scope of this section. 

20 ‘‘(d) Schools or institutions receiving funds under 

21 this section must agree to maintain the programs for 

22 which the funding is sought for a period of 10 years begin23 ning on the date the school or institution receives such 

24 funds, unless the Secretary finds that a shorter period of 


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1 time is appropriate for the local labor market or is re2 quired by State authorities. 

3 ‘‘(e) Schools or institutions receiving funds under this 

4 section may combine these funds with State funds, and 

5 other Federal funds where allowed by law, to carry out 

6 programs described in this section, however the use of the 

7 funds received under this section must be reported to the 

8 Secretary not less than annually. 

9 ‘‘SEC. 13. DEPARTMENT OF THE INTERIOR WORKFORCE EN10 HANCEMENT. 

11 ‘‘(a) PHYSICAL SCIENCE, ENGINEERING AND TECH12 NOLOGY SCHOLARSHIP PROGRAM.— 

13 ‘‘(1) From the funds made available to carry 

14 out this section, the Secretary shall use 30 percent 

15 of that amount to provide financial assistance for 

16 education in physical sciences, engineering, and engi17 neering or industrial technology and disciplines that, 

18 as determined by the Secretary, are critical to the 

19 functions of the Department of the Interior and are 

20 needed in the Department of the Interior workforce. 

21 ‘‘(2) The Secretary may award a scholarship in 

22 accordance with this section to a person who— 

23 ‘‘(A) is a citizen of the United States; 

24 ‘‘(B) is pursuing an undergraduate or ad25 vanced degree in a critical skill or discipline deVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00159 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 scribed in paragraph (1) at an institution of 

2 higher education; and 

3 ‘‘(C) enters into a service agreement with 

4 the Secretary as described in subsection (e). 

5 ‘‘(3) The amount of the financial assistance 

6 provided under a scholarship awarded to a person 

7 under this subsection shall be the amount deter8 mined by the Secretary as being necessary to pay all 

9 educational expenses incurred by that person, includ10 ing tuition, fees, cost of books, laboratory expenses, 

11 and expenses of room and board. The expenses paid, 

12 however, shall be limited to those educational ex13 penses normally incurred by students at the institu14 tion of higher education involved. 

15 ‘‘(b) SCHOLARSHIP PROGRAM FOR STUDENTS AT16 TENDING MINORITY SERVING HIGHER EDUCATION INSTI17 TUTIONS.— 

18 ‘‘(1) From the funds made available to carry 

19 out this section, the Secretary shall use 25 percent 

20 of that amount to award scholarships in accordance 

21 with this section to persons who— 

22 ‘‘(A) are enrolled in a Minority Serving 

23 Higher Education Institutions. 

24 ‘‘(B) are citizens of the United States; 


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1 ‘‘(C) are pursuing an undergraduate or ad2 vanced degree in agriculture, engineering, engi3 neering or industrial technology, or physical 

4 sciences, or other discipline that is found by the 

5 Secretary to be critical to the functions of the 

6 Department of the Interior and are needed in 

7 the Department of the Interior workforce; and 

8 ‘‘(D) enter into a service agreement with 

9 the Secretary of the Interior as described in 

10 subsection (e). 

11 ‘‘(2) The amount of the financial assistance 

12 provided under a scholarship awarded to a person 

13 under this subsection shall be the amount deter14 mined by the Secretary as being necessary to pay all 

15 educational expenses incurred by that person, includ16 ing tuition, fees, cost of books, laboratory expenses, 

17 and expenses of room and board. The expenses paid, 

18 however, shall be limited to those educational ex19 penses normally incurred by students at the institu20 tion of higher education involved. 

21 ‘‘(c) EDUCATION PARTNERSHIPS WITH MINORITY

22 SERVING HIGHER EDUCATION INSTITUTIONS.— 

23 ‘‘(1) The Secretary shall require the director of 

24 each Bureau and Office, to foster the participation 

25 of Minority Serving Higher Education Institutions 


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1 in any regulatory activity, land management activity, 

2 science activity, engineering or industrial technology 

3 activity, or engineering activity carried out by the 

4 Department of the Interior. 

5 ‘‘(2) From the funds made available to carry 

6 out this section, the Secretary shall use 25 percent 

7 of that amount to support activities at Minority 

8 Serving Higher Education Institutions by— 

9 ‘‘(A) funding faculty and students in these 

10 institutions in collaborative research projects 

11 that are directly related to the Departmental or 

12 Bureau missions; 

13 ‘‘(B) allowing equipment transfer to Mi14 nority Serving Higher Education Institutions as 

15 a part of a collaborative research program di16 rectly related to a Departmental or Bureau mis17 sion; 

18 ‘‘(C) allowing faculty and students at these 

19 Minority Serving Higher Education Institutions 

20 to participate Departmental and Bureau train21 ing activities; 

22 ‘‘(D) funding paid internships in Depart23 mental and Bureau facilities for students at Mi24 nority Serving Higher Education Institutions; 


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1 ‘‘(E) assigning Departmental and Bureau 

2 personnel to positions located at Minority Serv3 ing Higher Educational Institutions to serve as 

4 mentors to students interested in a science, 

5 technology or engineering disciplines related to 

6 the mission of the Department or the Bureaus. 

7 ‘‘(d) KINDERGARTEN THROUGH GRADE 12 SCIENCE

8 EDUCATION ENHANCEMENT PROGRAM.— 

9 ‘‘(1) From the funds made available to carry 

10 out this section, the Secretary shall use 20 percent 

11 of that amount to support activities designed to en12 hance the knowledge and expertise of teachers of 

13 basic sciences, mathematics, engineering and tech14 nology in Kindergarten through Grade 12 programs. 

15 ‘‘(2) The Secretary is authorized to— 

16 ‘‘(A) support competitive events for stu17 dents under the supervision of teachers that are 

18 designed to encourage student interest and 

19 knowledge in science, engineering, technology 

20 and mathematics; 

21 ‘‘(B) support competitively-awarded, peer22 reviewed programs to promote professional de23 velopment for mathematics, science, engineering 

24 and technology teachers who teach in grades 

25 from kindergarten through grade 12; 


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1 ‘‘(C) support summer internships at De2 partment facilities, for mathematics, science, 

3 engineering and technology teachers who teach 

4 in grades from kindergarten through grade 12; 

5 and 

6 ‘‘(D) sponsor and assist in sponsoring edu7 cational and teacher training activities in sub8 ject areas identified as critical skills. 

9 ‘‘(e) SERVICE AGREEMENT FOR RECIPIENTS OF AS10 SISTANCE.— 

11 ‘‘(1) To receive financial assistance under sub12 section (a) and subsection (b) of this section— 

13 ‘‘(A) in the case of an employee of the De14 partment of the Interior, the employee shall 

15 enter into a written agreement to continue in 

16 the employment of the department for the pe17 riod of obligated service determined under para18 graph (2); and 

19 ‘‘(B) in the case of a person not an em20 ployee of the Department of the Interior, the 

21 person shall enter into a written agreement to 

22 accept and continue employment in the Depart23 ment of the Interior for the period of obligated 

24 service determined under paragraph (2). 


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1 ‘‘(2) For the purposes of this section, the period 

2 of obligated service for a recipient of a scholarship 

3 under this section shall be the period determined by 

4 the Secretary as being appropriate to obtain ade5 quate service in exchange for the financial assistance 

6 provided under the scholarship. In no event may the 

7 period of service required of a recipient be less than 

8 the total period of pursuit of a degree that is cov9 ered by the scholarship. The period of obligated 

10 service is in addition to any other period for which 

11 the recipient is obligated to serve in the civil service 

12 of the United States. 

13 ‘‘(3) An agreement entered into under this sub14 section by a person pursuing an academic degree 

15 shall include any terms and conditions that the Sec16 retary determines necessary to protect the interests 

17 of the United States or otherwise appropriate for 

18 carrying out this section. 

19 ‘‘(f) REFUND FOR PERIOD OF UNSERVED OBLI20 GATED SERVICE.— 

21 ‘‘(1) A person who voluntarily terminates serv22 ice before the end of the period of obligated service 

23 required under an agreement entered into under 

24 subsection (e) shall refund to the United States an 

25 amount determined by the Secretary as being approVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00165 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 priate to obtain adequate service in exchange for fi2 nancial assistance. 

3 ‘‘(2) An obligation to reimburse the United 

4 States imposed under paragraph (1) is for all pur5 poses a debt owed to the United States. 

6 ‘‘(3) The Secretary of the Interior may waive, 

7 in whole or in part, a refund required under para8 graph (1) if the Secretary determines that recovery 

9 would be against equity and good conscience or 

10 would be contrary to the best interests of the United 

11 States. 

12 ‘‘(4) A discharge in bankruptcy under title 11, 

13 United States Code, that is entered less than 5 years 

14 after the termination of an agreement under this 

15 section does not discharge the person signing such 

16 agreement from a debt arising under such agree17 ment or under this subsection. 

18 ‘‘(g) RELATIONSHIP TO OTHER PROGRAMS.—The 

19 Secretary shall coordinate the provision of financial assist20 ance under the authority of this section with the provision 

21 of financial assistance under the authorities provided in 

22 this Act in order to maximize the benefits derived by the 

23 Department of Interior from the exercise of all such au24 thorities. 


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1 ‘‘(h) REPORT.—Not later than September 1 of each 

2 year, the Secretary shall submit to the Committee on Re3 sources of the House of Representatives and the Com4 mittee on Energy and Natural Resources of the Senate 

5 a report on the status of the assistance program carried 

6 out under this section. The report shall describe the pro7 grams within the Department designed to recruit and re8 tain a workforce on a short-term basis and on a long-term 

9 basis. 

10 ‘‘(i) DEFINITIONS.—As used in this section: 

11 ‘‘(1) The term ‘Minority Serving Higher Edu12 cation Institutions’ means a Hispanic-serving insti13 tution, historically Black college or university, Alas14 ka Native-serving institution, or tribal college. 

15 ‘‘(2) The term ‘Hispanic-serving institution’ has 

16 the meaning given the term in section 502(a) of the 

17 Higher Education Act of 1965 (20 U.S.C. 

18 1101a(a)). 

19 ‘‘(3) The term ‘historically Black college or uni20 versity’ has the meaning given the term ‘part B in21 stitution’ in section 322 of the Higher Education 

22 Act of 1965 (20 U.S.C. 1061). 

23 ‘‘(4) The term ‘tribal college’ has the meaning 

24 given the term ‘tribally controlled college or univer25 sity’ in section 2(a) of the Tribally Controlled ColVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00167 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 lege or University Assistance Act of 1978 (25 U.S.C. 

2 1801(a)). 

3 ‘‘(5) The term ‘institution of higher education’ 

4 has the meaning given such term in section 101 of 

5 the Higher Education Act of 1965 (20 U.S.C. 

6 1001). 

7 ‘‘(6) The term ‘Alaska Native-serving institu8 tion’ has the meaning given the term in section 317 

9 of the Higher Education Act of 1965 (20 U.S.C. 

10 1059d). 

11 ‘‘(j) FUNDING.—The Secretary shall spend 3 percent 

12 of the annual outlay under this Act to implement this sec13 tion not to exceed $10,000,000.’’. 

14 SEC. 154. ONSHORE AND OFFSHORE MINERAL LEASE FEES. 

15 Except as otherwise provided in this part, the De16 partment of the Interior is prohibited from charging fees 

17 applicable to actions on Federal onshore and offshore oil 

18 and gas, coal, geothermal, and other mineral leases, in19 cluding transportation of any production from such leases, 

20 if such fees were not established in final regulations prior 

21 to the date of issuance of the lease. 

22 SEC. 155. OCS REGIONAL HEADQUARTERS. 

23 The headquarters for the Gulf of Mexico Region shall 

24 permanently be located within the State of Louisiana with25 in 25 miles of the center of Jackson Square, New Orleans, 


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1 Louisiana. Further, not later than July 1, 2008, the Sec2 retary of the Interior shall establish the headquarters for 

3 the Atlantic OCS Region and the headquarters for the Pa4 cific OCS Region within a State bordering the Atlantic 

5 OCS Region and a State bordering the Pacific OCS Re6 gion, respectively, from among the States bordering those 

7 Regions, that petitions by no later than January 1, 2008, 

8 for leasing, for oil and gas or natural gas, covering at least 

9 40 percent of the area of its Adjacent Zone within 100 

10 miles of the coastline. Such Atlantic and Pacific OCS Re11 gions headquarters shall be located within 25 miles of the 

12 coastline and each MMS OCS regional headquarters shall 

13 be the permanent duty station for all Minerals Manage14 ment Service personnel that on a daily basis spend on av15 erage 60 percent or more of their time in performance of 

16 duties in support of the activities of the respective Region, 

17 except that the Minerals Management Service may house 

18 regional inspection staff in other locations. Each OCS Re19 gion shall each be led by a Regional Director who shall 

20 be an employee within the Senior Executive Service. 

21 SEC. 156. NATIONAL GEO FUND ACT OF 2006. 

22 (a) SHORT TITLE.—This section may be cited as the 

23 ‘‘National Geo Fund Act of 2006’’. 

24 (b) PURPOSES.—The purpose of this section is to— 


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1 (1) establish a fund to provide funding for the 

2 management of geologic programs, geologic map3 ping, geophysical and other seismic studies, seismic 

4 monitoring programs, and the preservation and use 

5 of geologic and geophysical data, geothermal and 

6 geopressure energy resource management, unconven7 tional energy resources management, and renewable 

8 energy management associated with ocean wave, cur9 rent, and thermal resources; 

10 (2) make available receipts derived from sales, 

11 bonus bids, royalties, and fees from onshore and off12 shore gas, minerals, oil, and any additional form of 

13 energy exploration and development under the laws 

14 of the United States for the purposes of the such 

15 fund; 

16 (3) distribute funds from such fund each fiscal 

17 year to the Secretary of the Interior and the States; 

18 and 

19 (4) use the distributed funds to manage activi20 ties conducted under this section, and to secure the 

21 necessary trained workforce, contractual services, 

22 and other support, including maintenance and cap23 ital investments, to perform the functions and activi24 ties described in paragraph (1). 

25 (c) DEFINITIONS.—In this section: 


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1 (1) GEO FUND.—The term ‘‘Geo Fund’’ means 

2 the National Geo Fund established by subsection 

3 (d). 

4 (2) STATE.—The term ‘‘State’’ means the 

5 agency of a State designated by its Governor or 

6 State law to perform the functions and activities de7 scribed in subsection (b)(1). 

8 (d) ESTABLISHMENT AND USE OF THE GEO

9 FUND.— 

10 (1) GEO FUND.—There is established in the 

11 Treasury a separate account to be known as the 

12 ‘‘National Geo Fund’’. 

13 (2) FUNDING.—The Secretary of the Treasury 

14 shall deposit in the Geo Fund— 

15 (A) such sums as are provided by sections 

16 9(b)(5)(A)(iv), 9(b)(5)(B)(iv), 9(c)(4)(A)(iv), 

17 and 9(c)(4)(B)(iv) of the Outer Continental 

18 Shelf Lands Act, as amended by this Act; 

19 (B)(i) during the period of October 1, 

20 2006, through September 30, 2015, 1 percent 

21 of all sums paid into the Treasury under sec22 tion 35 of the Mineral Leasing Act (30 U.S.C. 

23 191), and 

24 (ii) beginning October 1, 2015, and there25 after, 2.5 percent of all sums paid into the 


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1 Treasury under section 35 of the Mineral Leas2 ing Act (30 U.S.C. 191); 

3 (C)(i) during the period of October 1, 

4 2006, through September 30, 2015, 1 percent 

5 of all sums paid into the Treasury from receipts 

6 derived from bonus bids and royalties from 

7 other mineral leasing on public lands, and 

8 (ii) beginning October 1, 2015, and there9 after, 2.5 percent of all sums paid into the 

10 Treasury from receipts derived from bonus bids 

11 and royalties from other mineral leasing on 

12 public lands; and 

13 (D) $65,000,000 from outer Continental 

14 Shelf bonus bids, royalties, and conservation of 

15 resources fees received in fiscal year 2007, and 

16 $50,000,000 from outer Continental Shelf 

17 bonus bids, royalties, and conservation of re18 sources fees received in each of fiscal years 

19 2008, 2009, 2010, 2011, 2012, and 2013, 75 

20 percent of which shall be used to implement 

21 subsection (g) and all of which shall remain 

22 available until expended. 

23 (3) INVESTMENTS.—The Secretary of the 

24 Treasury shall invest the amounts deposited under 

25 paragraph (2) and all accrued interest on the 


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1 amounts deposited under paragraph (2) only in in2 terest bearing obligations of the United States or in 

3 obligations guaranteed as to both principal and in4 terest by the United States. 

5 (4) AVAILABILITY TO SECRETARY OF THE IN6 TERIOR.— 

7 (A) IN GENERAL.—Beginning with fiscal 

8 year 2007, and in each fiscal year thereafter, 

9 one-third of amounts deposited into the Geo 

10 Fund, unless otherwise specified herein, to11 gether with the interest thereon, shall be avail12 able, without fiscal year limitations, to the Sec13 retary of the Interior for use for the purposes 

14 described in subsection (b)(4). 

15 (B) WITHDRAWALS AND TRANSFER OF

16 FUNDS.—The Secretary of the Treasury shall 

17 withdraw such amounts from the Geo Fund as 

18 the Secretary of the Interior may request, sub19 ject to the limitation in subparagraph (A), and 

20 transfer such amounts to the Secretary of the 

21 Interior to be used, at the discretion of the Sec22 retary of the Interior, by the Minerals Manage23 ment Service, the Bureau of Land Manage24 ment, and the United States Geological Survey 

25 for the purposes described in subsection (b)(4). 


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1 No funds distributed from the Geo Fund may 

2 be used to purchase an interest in land. 

3 (5) PAYMENT TO STATES.— 

4 (A) IN GENERAL.—Beginning with fiscal 

5 year 2007, and in each fiscal year thereafter, 

6 two-thirds of amounts deposited into the Geo 

7 Fund, unless otherwise specified herein, to8 gether with the interest thereon, shall be avail9 able, without fiscal year limitations, to the 

10 States for use for the purposes described in 

11 subsection (b)(4). 

12 (B) WITHDRAWALS AND TRANSFER OF

13 FUNDS.—Within the first 90 days of each fiscal 

14 year, the Secretary of the Treasury shall with15 draw amounts from the Geo Fund and transfer 

16 such amounts to the States based on a formula 

17 devised by the Secretary of the Interior based 

18 on the relative needs of the States and the 

19 needs of the Nation. 

20 (C) USE OF PAYMENTS BY STATES.—Each 

21 State shall use the payments made under sub22 paragraph (B) only for carrying out projects 

23 and programs for the purposes described in 

24 subsection (b)(4). No funds distributed from 


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1 the Geo Fund may be used to purchase an in2 terest in land. 

3 (D) ENCOURAGEMENT OF USE OF PRIVATE

4 FUNDS BY STATES.—Each State shall use the 

5 payments made under subparagraph (B) to le6 verage private funds for carrying out projects 

7 for the purposes described in subsection (b)(4). 

8 (E) REPORT TO CONGRESS.—Beginning in 

9 fiscal year 2008 and continuing for each fiscal 

10 year thereafter, the Secretary of the Interior 

11 and each State receiving funds from the Geo 

12 Fund shall submit a report to the Committee 

13 on Energy and Natural Resources of the Senate 

14 and the Committee on Resources of the House 

15 of Representatives. Reports submitted to the 

16 Congress by the Secretary of the Interior and 

17 the States shall include detailed information re18 garding expenditures during the previous fiscal 

19 year. 

20 (e) STRATEGIC UNCONVENTIONAL RESOURCES.— 

21 (1) PROGRAM.—The Secretary of the Interior 

22 shall establish a program for production of fuels 

23 from strategic unconventional resources, and produc24 tion of oil and gas resources using CO2 enhanced re25 covery. The program shall focus initially on activities 


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1 and domestic resources most likely to result in sig2 nificant production in the near future, and shall in3 clude work necessary to improve extraction tech4 niques, including surface and in situ operations. The 

5 program shall include characterization and assess6 ment of potential resources, a sampling program, 

7 appropriate laboratory and other analyses and test8 ing, and assessment of methods for exploration and 

9 development of these strategic unconventional re10 sources. 

11 (2) PILOT PROJECTS.—The program created in 

12 paragraph (1) shall include, but not be limited to, 

13 pilot projects on (A) the Maverick Basin heavy oil 

14 and tar sands formations of Texas, including the 

15 San Miguel deposits, (B) the Greater Green River 

16 Basin heavy oil, oil shale, tar sands, and coal depos17 its of Colorado, Utah, and Wyoming, (C) the shale, 

18 tar sands, heavy oil, and coal deposits in the Ala19 bama-Mississippi-Tennessee region, (D) the shale, 

20 tar sands, heavy oil, and coal deposits in the Ohio 

21 River valley, and (E) strategic unconventional re22 sources in California. The Secretary shall identify 

23 and report to Congress on feasible incentives to fos24 ter recovery of unconventional fuels by private indus25 try within the United States. Such incentives may 


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1 include, but are not limited to, long-term contracts 

2 for the purchase of unconventional fuels for defense 

3 purposes, Federal grants and loan guarantees for 

4 necessary capital expenditures, and favorable terms 

5 for the leasing of Government lands containing un6 conventional resources. 

7 (3) DEFINITIONS.—In this subsection: 

8 (A) STRATEGIC UNCONVENTIONAL RE9 SOURCES.—The term ‘‘strategic unconventional 

10 resources’’ means hydrocarbon resources, in11 cluding heavy oil, oil shale, tar sands, and coal 

12 deposits, from which liquid fuels may be pro13 duced. 

14 (B) IN SITU EXTRACTION METHODS.—The 

15 term ‘‘in situ extraction methods’’ means recov16 ery techniques that are applied to the resources 

17 while they are still in the ground, and are in 

18 commercial use or advanced stages of develop19 ment. Such techniques include, but are not lim20 ited to, steam flooding, steam-assisted gravity 

21 drainage (including combination with electric 

22 power generation where appropriate), cyclic 

23 steam stimulation, air injection, and chemical 

24 treatment. 


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1 (4) FUNDING.—The Secretary shall carry out 

2 the program for the production of strategic uncon3 ventional fuels with funds from the Geo Fund in 

4 each of fiscal years 2007 through 2011 in the 

5 amount of not less than $35,000,000 each year. 

6 Each pilot project shall be allocated not less than 

7 $4,000,000 per year in each of fiscal years 2007 

8 through 2011. 

9 (f) SUPPORT OF GEOTHERMAL AND GEOPRESSURE

10 OIL AND GAS ENERGY PRODUCTION.— 

11 (1) IN GENERAL.—The Secretary shall carry 

12 out a grant program in support of geothermal and 

13 geopressure oil and gas energy production. The pro14 gram shall include grants for a total of not less than 

15 3 assessments of the use of innovative geothermal 

16 techniques such as organic rankine cycle systems at 

17 marginal, unproductive, and productive oil and gas 

18 wells, and not less than 1 assessment of the use of 

19 innovative geopressure techniques. The Secretary 

20 shall, to the extent practicable and in the public in21 terest, make awards that— 

22 (A) include not less than 5 oil or gas well 

23 sites per project award; 


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1 (B) use a range of oil or gas well hot water 

2 source temperatures from 150 degrees Fahr3 enheit to 300 degrees Fahrenheit; 

4 (C) use existing or new oil or gas wells; 

5 (D) cover a range of sizes from 175 kilo6 watts to 1 megawatt; 

7 (E) are located at a range of sites includ8 ing tribal lands, Federal lease, State, or pri9 vately owned sites; 

10 (F) can be replicated at a wide range of 

11 sites; 

12 (G) facilitate identification of optimum 

13 techniques among competing alternatives; 

14 (H) include business commercialization 

15 plans that have the potential for production of 

16 equipment at high volumes and operation and 

17 support at a large number of sites; and 

18 (I) satisfy other criteria that the Secretary 

19 determines are necessary to carry out the pro20 gram. 

21 The Secretary shall give preference to assessments 

22 that address multiple elements contained in subpara23 graphs (A) through (I). 

24 (2) GRANT AWARDS.— 


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1 (A) IN GENERAL.—Each grant award for 

2 assessment of innovative geothermal or 

3 geopressure technology such as organic rankine 

4 cycle systems at oil and gas wells made by the 

5 Secretary under this section shall include— 

6 (i) necessary and appropriate site en7 gineering study; 

8 (ii) detailed economic assessment of 

9 site specific conditions; 

10 (iii) appropriate feasibility studies to 

11 determine ability for replication; 

12 (iv) design or adaptation of existing 

13 technology for site specific circumstances 

14 or conditions; 

15 (v) installation of equipment, service, 

16 and support; and 

17 (vi) monitoring for a minimum of 1 

18 year after commissioning date. 

19 (3) COMPETITIVE GRANT SELECTION.—Not less 

20 than 180 days after the date of the enactment of 

21 this Act, the Secretary shall conduct a national solic22 itation for applications for grants under the pro23 gram. Grant recipients shall be selected on a com24 petitive basis based on criteria in subsection (b). 


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

2 costs of grants under this subsection shall be pro3 vided from funds made available to carry out this 

4 section. The Federal share of the cost of a project 

5 carried out with such a grant shall not exceed 50 

6 percent of such cost. 

7 (5) FUNDING.—The Secretary shall carry out 

8 the grant program under this subsection with funds 

9 from the Geo Fund in each of fiscal years 2007 

10 through 2011 in the amount of not less than 

11 $5,000,000 each fiscal year. No funds authorized 

12 under this section may be used for the purposes of 

13 drilling new wells. 

14 (6) AMENDMENT.—Section 4 of the Geothermal 

15 Steam Act of 1970 (30 U.S.C. 1003) is amended by 

16 adding at the end the following: 

17 ‘‘(h) GEOTHERMAL RESOURCES CO-PRODUCED

18 WITH THE MINERALS.—Any person who holds a lease or 

19 who operates a cooperative or unit plan under the Mineral 

20 Leasing Act (30 U.S.C. 181 et seq.), in the absence of 

21 an existing lease for geothermal resources under this Act, 

22 shall upon notice to the Secretary have the right to utilize 

23 any geothermal resources co-produced with the minerals 

24 for which the lease was issued during the operation of that 

25 lease or cooperative or unit plan, for the generating of 


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1 electricity to operate the lease. Any electricity that is pro2 duced in excess of that which is required to operate the 

3 lease and that is sold for purposes outside of the boundary 

4 of the lease shall be subject to the requirements of section 

5 5.’’. 

6 (g) LIQUID FUELS GRANT PROGRAM.— 

7 (1) PROGRAM.—The Secretary of the Interior 

8 shall establish a grant program for facilities for coal9 to-liquids, petroleum coke-to-liquids, oil shale, tar 

10 sands, heavy oil, and Alaska natural gas-to-liquids 

11 and to assess the production of low-rank coal water 

12 fuel (in this subsection referred to as ‘‘LRCWF’’). 

13 (2) LRCWF.—The LRCWF grant project loca14 tion shall use lignite coal from fields near the 

15 Tombigbee River within 60 miles of a land-grant col16 lege and shall be allocated $15,000,000 for expendi17 ture during fiscal year 2007. 

18 (3) DEFINITIONS.—In this subsection: 

19 (A) COAL-TO-LIQUIDS FRONT-END ENGI20 NEERING AND DESIGN.—The terms ‘‘coal-to-liq21 uids front-end engineering and design’’ and 

22 ‘‘FEED’’ mean those expenditures necessary to 

23 engineer, design, and obtain permits for a facil24 ity for a particular geographic location which 


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1 will utilize a process or technique to produce 

2 liquid fuels from coal resources. 

3 (B) LOW-RANK COAL WATER FUEL.—The 

4 term ‘‘low-rank coal water fuel’’ means a liquid 

5 fuel produced from hydrothermal treatment of 

6 lignite and sub-bituminous coals. 

7 (4) GRANT PROVISIONS.—All grants shall re8 quire a 50 percent non-Federal cost share. The first 

9 4 FEED grant recipients who receive full project 

10 construction financing commitments, based on ear11 liest calendar date, shall not be required to repay 

12 any of their grants. The next 4 FEED grant recipi13 ents who receive such commitments shall be required 

14 to repay 25 percent of the grant. The next 4 FEED 

15 grant recipients who receive such commitments shall 

16 be required to repay 50 percent of the grant, and 

17 the remaining FEED grant recipients shall be re18 quired to repay 75 percent of the grant. The 

19 LRCWF recipient shall not be required to repay the 

20 grant. Any required repayment shall be paid as part 

21 of the closing process for any construction financing 

22 relating to the grant. No repayment shall require the 

23 payment of interest if repaid within 5 years of the 

24 issuance of the grant. FEED grants shall be limited 

25 to a maximum of $1,000,000 per 1,000 barrels per 


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1 day of liquid fuels production capacity, not to exceed 

2 $25 million per year. 

3 (5) FUNDING.—The Secretary shall carry out 

4 the grant program established by this subsection 

5 with funds from the Geo Fund. 

6 (h) RENEWABLE ENERGY FROM OCEAN WAVE, CUR7 RENT, AND THERMAL RESOURCES.— 

8 (1) PROGRAM.—The Secretary of the Interior 

9 shall establish a grant program for the production of 

10 renewable energy from ocean waves, currents, and 

11 thermal resources. 

12 (2) GRANT PROVISIONS.—All grants under this 

13 subsection shall require a 50 percent non-Federal 

14 cost share. 

15 (3) FUNDING.—The Secretary shall carry out 

16 this grant program with funds from the Geo Fund 

17 in each of fiscal years 2007 through 2011 in the 

18 amount of not less than $6,000,000 each year, and 

19 thereafter in such amounts as the Secretary may 

20 find appropriate. 

21 (i) AMENDMENT TO THE SURFACE MINING CONTROL

22 AND RECLAMATION ACT OF 1977.—Section 517 of the 

23 Surface Mining Control and Reclamation Act of 1977 (30 

24 U.S.C. 1267) is amended by adding at the end the fol25 lowing: 


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1 ‘‘(i) Any person who provides the regulatory authority 

2 with a map under subsection (b)(1) shall not be liable to 

3 any other person in any way for the accuracy or complete4 ness of any such map which was not prepared and certified 

5 by or on behalf of such person.’’. 

6 SEC. 157. LEASES FOR AREAS LOCATED WITHIN 100 MILES 

7 OF CALIFORNIA OR FLORIDA. 

8 (a) AUTHORIZATION TO CANCEL AND EXCHANGE

9 CERTAIN EXISTING OIL AND GAS LEASES; PROHIBITION

10 ON SUBMITTAL OF EXPLORATION PLANS FOR CERTAIN

11 LEASES PRIOR TO JUNE 30, 2010.— 

12 (1) AUTHORITY.—Within 2 years after the date 

13 of enactment of this Act, the lessee of an existing oil 

14 and gas lease for an area located completely within 

15 100 miles of the coastline within the California or 

16 Florida Adjacent Zones shall have the option, with17 out compensation, of exchanging such lease for a 

18 new oil and gas lease having a primary term of 5 

19 years. For the area subject to the new lease, the les20 see may select any unleased tract on the outer Con21 tinental Shelf that is in an area available for leasing. 

22 Further, with the permission of the relevant Gov23 ernor, such a lessee may convert its existing oil and 

24 gas lease into a natural gas lease having a primary 

25 term of 5 years and covering the same area as the 


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1 existing lease or another area within the same 

2 State’s Adjacent Zone within 100 miles of the coast3 line. 

4 (2) ADMINISTRATIVE PROCESS.—The Secretary 

5 of the Interior shall establish a reasonable adminis6 trative process to implement paragraph (1). Ex7 changes and conversions under subsection (a), in8 cluding the issuance of new leases, shall not be con9 sidered to be major Federal actions for purposes of 

10 the National Environmental Policy Act of 1969 (42 

11 U.S.C. 4321 et seq.). Further, such actions con12 ducted in accordance with this section are deemed to 

13 be in compliance all provisions of the Outer Conti14 nental Shelf Lands Act (43 U.S.C. 1331 et seq.). 

15 (3) OPERATING RESTRICTIONS.—A new lease 

16 issued in exchange for an existing lease under this 

17 section shall be subject to such national defense op18 erating stipulations on the OCS tract covered by the 

19 new lease as may be applicable upon issuance. 

20 (4) PRIORITY.—The Secretary shall give pri21 ority in the lease exchange process based on the 

22 amount of the original bonus bid paid for the 

23 issuance of each lease to be exchanged. The Sec24 retary shall allow leases covering partial tracts to be 

25 exchanged for leases covering full tracts conditioned 


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1 upon payment of additional bonus bids on a per-acre 

2 basis as determined by the average per acre of the 

3 original bonus bid per acre for the partial tract 

4 being exchanged. 

5 (5) EXPLORATION PLANS.—Any exploration 

6 plan submitted to the Secretary of the Interior after 

7 the date of the enactment of this Act and before 

8 July 1, 2010, for an oil and gas lease for an area 

9 wholly within 100 miles of the coastline within the 

10 California Adjacent Zone or Florida Adjacent Zone 

11 shall not be treated as received by the Secretary 

12 until the earlier of July 1, 2010, or the date on 

13 which a petition by the Adjacent State for oil and 

14 gas leasing covering the area within which is located 

15 the area subject to the oil and gas lease was ap16 proved. 

17 (b) FURTHER LEASE CANCELLATION AND EX18 CHANGE PROVISIONS.— 

19 (1) CANCELLATION OF LEASE.—As part of the 

20 lease exchange process under this section, the Sec21 retary shall cancel a lease that is exchanged under 

22 this section. 

23 (2) CONSENT OF LESSEES.—All lessees holding 

24 an interest in a lease must consent to cancellation 


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1 of their leasehold interests in order for the lease to 

2 be cancelled and exchanged under this section. 

3 (3) WAIVER OF RIGHTS.—As a prerequisite to 

4 the exchange of a lease under this section, the lessee 

5 must waive any rights to bring any litigation against 

6 the United States related to the transaction. 

7 (4) PLUGGING AND ABANDONMENT.—The plug8 ging and abandonment requirements for any wells 

9 located on any lease to be cancelled and exchanged 

10 under this section must be complied with by the les11 sees prior to the cancellation and exchange. 

12 (c) AREA PARTIALLY WITHIN 100 MILES OF FLOR13 IDA.—An existing oil and gas lease for an area located 

14 partially within 100 miles of the coastline within the Flor15 ida Adjacent Zone may only be developed and produced 

16 using wells drilled from well-head locations at least 100 

17 miles from the coastline to any bottom-hole location on 

18 the area of the lease. This subsection shall not apply if 

19 Florida has petitioned for leasing closer to the coastline 

20 than 100 miles. 

21 (d) EXISTING OIL AND GAS LEASE DEFINED.—In 

22 this section the term ‘‘existing oil and gas lease’’ means 

23 an oil and gas lease in effect on the date of the enactment 

24 of this Act. 


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1 SEC. 158. COASTAL IMPACT ASSISTANCE. 

2 Section 31 of the Outer Continental Shelf Lands Act 

3 (43 U.S.C. 1356a) is repealed. 

4 SEC. 159. OIL SHALE AND TAR SANDS AMENDMENTS. 

5 (a) REPEAL OF REQUIREMENT TO ESTABLISH PAY6 MENTS.—Subsection (o) of section 369 of the Energy Pol7 icy Act of 2005 (42 U.S.C. 15927) is repealed. 

8 (b) TREATMENT OF REVENUES.—Section 21 of the 

9 Mineral Leasing Act (30 U.S.C. 241) is amended— 

10 (1) by redesignating subsection (d) as sub11 section (e); 

12 (2) by redesignating the second subsection (c) 

13 (relating to offsite leases) as subsection (d); 

14 (3) in paragraphs (1) and (3) of subsection (e) 

15 (as redesignated by paragraph (1)) by striking ‘‘sub16 section (c)’’ each place it appears and inserting 

17 ‘‘subsection (d)’’; and 

18 (4) by adding at the end the following: 

19 ‘‘(f) REVENUES.— 

20 ‘‘(1) IN GENERAL.—Notwithstanding the provi21 sions of section 35, all revenues received from and 

22 under an oil shale or tar sands lease shall be dis23 posed of as provided in this subsection. 

24 ‘‘(2) ROYALTY RATES FOR COMMERCIAL

25 LEASES.— 


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1 ‘‘(A) ROYALTY RATES.—The Secretary 

2 shall model the royalty schedule for oil shale 

3 and tar sands leases based on the royalty pro4 gram currently in effect for the production of 

5 synthetic crude oil from oil sands in the Prov6 ince of Alberta, Canada. 

7 ‘‘(B) REDUCTION.—The Secretary shall re8 duce any royalty otherwise required to be paid 

9 under subparagraph (A) under any oil shale or 

10 tar sands lease on a sliding scale based upon 

11 market price, with a 10 percent reduction if the 

12 average futures price of NYMEX Light Sweet 

13 Crude, or a similar index, drops, for the pre14 vious quarter year, below $50 (in January 1, 

15 2006, dollars), and an 80 percent reduction if 

16 the average price drops below $30 (in January 

17 1, 2006, dollars) for the quarter previous to the 

18 1 in which the production is sold. 

19 ‘‘(3) DISPOSITION OF REVENUES.— 

20 ‘‘(A) DEPOSIT.—The Secretary shall de21 posit into a separate account in the Treasury 

22 all revenues derived from any oil shale or tar 

23 sands lease. 

24 ‘‘(B) ALLOCATIONS TO STATES AND LOCAL

25 POLITICAL SUBDIVISIONS.—The Secretary shall 


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1 allocate 50 percent of the revenues deposited 

2 into the account established under subpara3 graph (A) to the State within the boundaries of 

4 which the leased lands are located, with a por5 tion of that to be paid directly by the Secretary 

6 to the State’s local political subdivisions as pro7 vided in this paragraph. 

8 ‘‘(C) TRANSMISSION OF ALLOCATIONS.— 

9 ‘‘(i) IN GENERAL.—Not later than the 

10 last business day of the month after the 

11 month in which the revenues were received, 

12 the Secretary shall transmit— 

13 ‘‘(I) to each State two-thirds of 

14 such State’s allocations under sub15 paragraph (B), and in accordance 

16 with clauses (ii) and (iii) to certain 

17 county-equivalent and municipal polit18 ical subdivisions of such State a total 

19 of one-third of such State’s allocations 

20 under subparagraph (B), together 

21 with all accrued interest thereon; and 

22 ‘‘(II) the remaining balance of 

23 such revenues deposited into the ac24 count that are not allocated under 

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1 terest thereon, shall be transmitted to 

2 the miscellaneous receipts account of 

3 the Treasury, except that until a lease 

4 has been in production for 20 years 

5 50 percent of such remaining balance 

6 derived from a lease shall be paid in 

7 accordance with subclause (I). 

8 ‘‘(ii) ALLOCATIONS TO CERTAIN

9 COUNTY-EQUIVALENT POLITICAL SUBDIVI10 SIONS.—The Secretary shall under clause 

11 (i)(I) make equitable allocations of the rev12 enues to county-equivalent political sub13 divisions that the Secretary determines are 

14 closely associated with the leasing and pro15 duction of oil shale and tar sands, under a 

16 formula that the Secretary shall determine 

17 by regulation. 

18 ‘‘(iii) ALLOCATIONS TO MUNICIPAL

19 POLITICAL SUBDIVISIONS.—The initial al20 location to each county-equivalent political 

21 subdivision under clause (ii) shall be fur22 ther allocated to the county-equivalent po23 litical subdivision and any municipal polit24 ical subdivisions located partially or wholly 

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1 lent political subdivision on an equitable 

2 basis under a formula that the Secretary 

3 shall determine by regulation. 

4 ‘‘(D) INVESTMENT OF DEPOSITS.—The de5 posits in the Treasury account established 

6 under this section shall be invested by the Sec7 retary of the Treasury in securities backed by 

8 the full faith and credit of the United States 

9 having maturities suitable to the needs of the 

10 account and yielding the highest reasonably 

11 available interest rates as determined by the 

12 Secretary of the Treasury. 

13 ‘‘(E) USE OF FUNDS.—A recipient of 

14 funds under this subsection may use the funds 

15 for any lawful purpose as determined by State 

16 law. Funds allocated under this subsection to 

17 States and local political subdivisions may be 

18 used as matching funds for other Federal pro19 grams without limitation. Funds allocated to 

20 local political subdivisions under this subsection 

21 may not be used in calculation of payments to 

22 such local political subdivisions under programs 

23 for payments in lieu of taxes or other similar 

24 programs. 


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1 ‘‘(F) NO ACCOUNTING REQUIRED.—No re2 cipient of funds under this subsection shall be 

3 required to account to the Federal Government 

4 for the expenditure of such funds, except as 

5 otherwise may be required by law. 

6 ‘‘(4) DEFINITIONS.—In this subsection: 

7 ‘‘(A) COUNTY-EQUIVALENT POLITICAL

8 SUBDIVISION.—The term ‘county-equivalent po9 litical subdivision’ means a political jurisdiction 

10 immediately below the level of State govern11 ment, including a county, parish, borough in 

12 Alaska, independent municipality not part of a 

13 county, parish, or borough in Alaska, or other 

14 equivalent subdivision of a State. 

15 ‘‘(B) MUNICIPAL POLITICAL SUBDIVI16 SION.—The term ‘municipal political subdivi17 sion’ means a municipality located within and 

18 part of a county, parish, borough in Alaska, or 

19 other equivalent subdivision of a State.’’. 


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1 SEC. 160. AVAILABILITY OF OCS RECEIPTS TO PROVIDE 

2 PAYMENTS UNDER SECURE RURAL SCHOOLS 

3 AND COMMUNITY SELF-DETERMINATION ACT 

4 OF 2000. 

5 Section 9 of the Outer Continental Shelf Lands Act 

6 (43 U.S.C. 1338) (as amended by section 137) is amended 

7 by adding at the end the following: 

8 ‘‘(j) AVAILABILITY OF FUNDS FOR PAYMENTS

9 UNDER SECURE RURAL SCHOOLS AND COMMUNITY

10 SELF-DETERMINATION ACT OF 2000.—Notwithstanding 

11 any other provision of this section, $50,000,000 of OCS 

12 Receipts shall be available to the Secretary of the Treas13 ury for each of fiscal years 2007 through 2012 to make 

14 payments under sections 102 and 103 of the Secure Rural 

15 Schools and Community Self-Determination Act of 2000 

16 (16 U.S.C. 500 note; Public Law 106–393). The Secretary 

17 of the Treasury shall use the funds made available by this 

18 subsection to make such payments in lieu of using funds 

19 in the Treasury not otherwise appropriated, as otherwise 

20 authorized by sections 102(b)(3) and 103(b)(2) of such 

21 Act.’’. 

22 PART II—DOMESTIC OIL AND GAS PRODUCTION 

23 SEC. 171. SHORT TITLE. 

24 This part may be cited as the ‘‘Arctic Coastal Plain 

25 Domestic Energy Security Act of 2006’’. 


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1 SEC. 172. DEFINITIONS. 

2 In this part: 

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

4 Plain’’ means the area identified as the ‘‘1002 

5 Coastal Plain Area’’ on the map. 

6 (2) FEDERAL AGREEMENT.—The term ‘‘Fed7 eral Agreement’’ means the Federal Agreement and 

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

9 issued on January 23, 1974, in accordance with sec10 tion 28 of the Mineral Leasing Act (30 U.S.C. 185) 

11 and the Trans-Alaska Pipeline Authorization Act 

12 (43 U.S.C. 1651 et seq.). 

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

14 Statement’’ means the final legislative environmental 

15 impact statement on the Coastal Plain, dated April 

16 1987, and prepared pursuant to section 1002 of the 

17 Alaska National Interest Lands Conservation Act 

18 (16 U.S.C. 3142) and section 102(2)(C) of the Na19 tional Environmental Policy Act of 1969 (42 U.S.C. 

20 4332(2)(C)). 

21 (4) MAP.—The term ‘‘map’’ means the map 

22 prepared by the United States Geological Survey, 

23 entitled ‘‘Arctic National Wildlife Refuge 1002 

24 Coastal Plain Area’’, dated September 2005, and on 

25 file with the United States Geological Survey. 


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

2 the Secretary of the Interior or the designee of the 

3 Secretary. 

4 SEC. 173. LEASING PROGRAM FOR LAND WITHIN THE 

5 COASTAL PLAIN. 

6 (a) IN GENERAL.—The Secretary shall take such ac7 tions as are necessary— 

8 (1) to establish and implement in accordance 

9 with this part a competitive oil and gas leasing pro10 gram under the Mineral Leasing Act (30 U.S.C. 181 

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

12 program for the exploration, development, and pro13 duction of the oil and gas resources of the Coastal 

14 Plain; and 

15 (2) to administer the provisions of this part 

16 through regulations, lease terms, conditions, restric17 tions, prohibitions, stipulations, and other provisions 

18 that— 

19 (A) ensure the oil and gas exploration, de20 velopment, and production activities on the 

21 Coastal Plain will result in no significant ad22 verse effect on fish and wildlife, their habitat, 

23 subsistence resources, and the environment; and 

24 (B) require the application of the best 

25 commercially available technology for oil and 


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1 gas exploration, development, and production to 

2 all exploration, development, and production op3 erations under this part in a manner that en4 sures the receipt of fair market value by the 

5 public for the mineral resources to be leased. 

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

7 Interest Lands Conservation Act (16 U.S.C. 3143) is re8 pealed. 

9 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER10 TAIN OTHER LAWS.— 

11 (1) COMPATIBILITY.—For purposes of the Na12 tional Wildlife Refuge System Administration Act of 

13 1966 (16 U.S.C. 668dd et seq.)— 

14 (A) the oil and gas leasing program and 

15 activities authorized by this section in the 

16 Coastal Plain shall be considered to be compat17 ible with the purposes for which the Arctic Na18 tional Wildlife Refuge was established; 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 actions authorized 

3 to be taken by the Secretary to develop and promul4 gate the regulations for the establishment of a leas5 ing program authorized by this part before the con6 duct of the first lease sale. 

7 (3) COMPLIANCE WITH NEPA FOR OTHER AC8 TIONS.— 

9 (A) IN GENERAL.—Before conducting the 

10 first lease sale under this part, the Secretary 

11 shall prepare an environmental impact state12 ment under the National Environmental Policy 

13 Act of 1969 (42 U.S.C. 4321 et seq.) with re14 spect to the actions authorized by this part that 

15 are not referred to in paragraph (2). 

16 (B) IDENTIFICATION AND ANALYSIS.— 

17 Notwithstanding any other provision of law, in 

18 carrying out this paragraph, the Secretary shall 

19 not be required— 

20 (i) to identify nonleasing alternative 

21 courses of action; or 

22 (ii) to analyze the environmental ef23 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 section; 

7 and 

8 (ii) analyze the environmental effects 

9 and potential mitigation measures for 

10 those 2 alternatives. 

11 (D) PUBLIC COMMENTS.—The Secretary 

12 shall only consider public comments that— 

13 (i) specifically address the preferred 

14 action of the Secretary; and 

15 (ii) are filed not later than 20 days 

16 after the date of publication of an environ17 mental analysis. 

18 (E) EFFECT OF COMPLIANCE.—Notwith19 standing any other law, compliance with this 

20 paragraph shall be considered to satisfy all re21 quirements for the analysis and consideration of 

22 the environmental effects of proposed leasing 

23 under this part. 


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1 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR2 ITY.—Nothing in this part expands or limits any State or 

3 local regulatory authority. 

4 (e) SPECIAL AREAS.— 

5 (1) DESIGNATION.— 

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

7 consultation with the State of Alaska, the City 

8 of Kaktovik, Alaska, and the North Slope Bor9 ough, Alaska, may designate not more than 

10 45,000 acres of the Coastal Plain as a special 

11 area if the Secretary determines that the special 

12 area would be of such unique character and in13 terest as to require special management and 

14 regulatory protection. 

15 (B) SADLEROCHIT SPRING AREA.—The 

16 Secretary shall designate as a special area in 

17 accordance with subparagraph (A) the 

18 Sadlerochit Spring area, comprising approxi19 mately 4,000 acres as depicted on the map. 

20 (2) MANAGEMENT.—The Secretary shall man21 age each special area designated under this sub22 section in a manner that preserves the unique and 

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

24 subsistence resources, and cultural values of the 

25 area. 


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1 (3) EXCLUSION FROM LEASING OR SURFACE

2 OCCUPANCY.— 

3 (A) IN GENERAL.—The Secretary may ex4 clude any special area designated under this 

5 subsection from leasing. 

6 (B) NO SURFACE OCCUPANCY.—If the Sec7 retary leases all or a portion of a special area 

8 for the purposes of oil and gas exploration, de9 velopment, production, and related activities, 

10 there shall be no surface occupancy of the land 

11 comprising the special area. 

12 (4) DIRECTIONAL DRILLING.—Notwithstanding 

13 any other provision of this subsection, the Secretary 

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

15 terms that permit the use of horizontal drilling tech16 nology from sites on leases located outside the spe17 cial area. 

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

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

20 leasing or to exploration, development, or production ex21 cept in accordance with this part. 

22 (g) REGULATIONS.— 

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

24 after the date of enactment of this Act, the Sec25 retary shall issue such regulations as are necessary 


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1 to carry out this part, including rules and regula2 tions relating to protection of the fish and wildlife, 

3 fish and wildlife habitat, subsistence resources, and 

4 environment of the Coastal Plain. 

5 (2) REVISION OF REGULATIONS.—The Sec6 retary shall periodically review and, as appropriate, 

7 revise the rules and regulations issued under para8 graph (1) to reflect any significant biological, envi9 ronmental, or engineering data that come to the at10 tention of the Secretary. 

11 SEC. 174. LEASE SALES. 

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

13 this part 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 part shall be by sealed competitive cash bonus bids. 

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

7 first lease sale under this part, 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 part; and 

17 (2) conduct additional sales at appropriate in18 tervals if, as determined by the Secretary, sufficient 

19 interest in development exists to warrant the con20 duct of the additional sales. 

21 SEC. 175. GRANT OF LEASES BY THE SECRETARY. 

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

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

24 may grant to the highest responsible qualified bidder in 


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1 a lease sale conducted pursuant to section 174 a lease for 

2 any land on the Coastal Plain. 

3 (b) SUBSEQUENT TRANSFERS.— 

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

5 part may be sold, exchanged, assigned, sublet, or 

6 otherwise transferred except with the approval of the 

7 Secretary. 

8 (2) CONDITION FOR APPROVAL.—Before grant9 ing any approval described in paragraph (1), the 

10 Secretary shall consult with, and give due consider11 ation to the opinion of, the Attorney General. 

12 SEC. 176. LEASE TERMS AND CONDITIONS. 

13 (a) IN GENERAL.—An oil or gas lease issued pursu14 ant to this part shall— 

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

less than 121 16 ⁄2 percent of the amount or value of the 

17 production removed or sold from the lease, as deter18 mined by the Secretary in accordance with regula19 tions applicable to other Federal oil and gas leases; 

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

21 seasonal basis, such portions of the Coastal Plain to 

22 exploratory drilling activities as are necessary to 

23 protect caribou calving areas and other species of 

24 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 conducted under the 

7 lease and within the Coastal Plain by the lessee or 

8 by any of the subcontractors 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 part 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) on application by the lessee, to a high21 er or better standard, as approved by the Sec22 retary; 

23 (6) contain terms and conditions relating to 

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1 tat, subsistence resources, and the environment as 

2 required under section 173(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, as determined by the 

8 level of obligation previously agreed to in the Fed9 eral Agreement; 

10 (8) prohibit the export of oil produced under 

11 the lease; and 

12 (9) contain such other provisions as the Sec13 retary determines to be necessary to ensure compli14 ance with this section and regulations issued under 

15 this part. 

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

17 as a term and condition of each lease under this part, and 

18 in recognizing the proprietary interest of the Federal Gov19 ernment in labor stability and in the ability of construction 

20 labor and management to meet the particular needs and 

21 conditions of projects to be developed under the leases 

22 issued pursuant to this part (including the special con23 cerns of the parties to those leases), shall require that each 

24 lessee, and each agent and contractor of a lessee, under 

25 this part negotiate to obtain a project labor agreement for 


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1 the employment of laborers and mechanics on production, 

2 maintenance, and construction under the lease. 

3 SEC. 177. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

4 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

5 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

6 In accordance with section 173, the Secretary shall admin7 ister this part through regulations, lease terms, conditions, 

8 restrictions, prohibitions, stipulations, and other provi9 sions that— 

10 (1) ensure that oil and gas exploration, develop11 ment, and production activities on the Coastal Plain 

12 will result in no significant adverse effect on fish 

13 and wildlife, fish and wildlife habitat, and the envi14 ronment; 

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

19 and 

20 (3) ensure that the maximum surface acreage 

21 covered in connection with the leasing program by 

22 production and support facilities, including airstrips 

23 and any areas covered by gravel berms or piers for 

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

25 the Coastal Plain. 


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

2 The Secretary shall also require, with respect to any pro3 posed drilling and related activities, that— 

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

7 habitat, and the environment; 

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

9 and mitigate (in that order and to the maximum ex10 tent practicable) any significant adverse effect iden11 tified under paragraph (1); and 

12 (3) the development of the plan occur after con13 sultation with each agency having jurisdiction over 

14 matters mitigated by the plan. 

15 (c) REGULATIONS TO PROTECT COASTAL PLAIN

16 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

17 AND THE ENVIRONMENT.—Before implementing the leas18 ing program authorized by this part, the Secretary shall 

19 prepare and promulgate regulations, lease terms, condi20 tions, restrictions, prohibitions, stipulations, and other 

21 measures designed to ensure that the activities carried out 

22 on the Coastal Plain under this part are conducted in a 

23 manner consistent with the purposes and environmental 

24 requirements of this part. 


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1 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI2 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

3 proposed regulations, lease terms, conditions, restrictions, 

4 prohibitions, and stipulations for the leasing program 

5 under this part shall require— 

6 (1) compliance with all applicable provisions of 

7 Federal and State environmental law; 

8 (2) implementation of and compliance with— 

9 (A) standards that are at least as effective 

10 as the safety and environmental mitigation 

11 measures, as described in items 1 through 29 

12 on pages 167 through 169 of the Final State13 ment, on the Coastal Plain; 

14 (B) seasonal limitations on exploration, de15 velopment, and related activities, as necessary, 

16 to avoid significant adverse effects during peri17 ods of concentrated fish and wildlife breeding, 

18 denning, nesting, spawning, and migration; 

19 (C) design safety and construction stand20 ards for all pipelines and any access and service 

21 roads that minimize, to the maximum extent 

22 practicable, adverse effects on— 

23 (i) the passage of migratory species 

24 (such as caribou); and 


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1 (ii) the flow of surface water by re2 quiring the use of culverts, bridges, and 

3 other structural devices; 

4 (D) prohibitions on general public access 

5 to, and use of, all pipeline access and service 

6 roads; 

7 (E) stringent reclamation and rehabilita8 tion requirements in accordance with this sec9 tion for the removal from the Coastal Plain of 

10 all oil and gas development and production fa11 cilities, structures, and equipment on comple12 tion of oil and gas production operations, except 

13 in a case in which the Secretary determines 

14 that those facilities, structures, or equipment— 

15 (i) would assist in the management of 

16 the Arctic National Wildlife Refuge; and 

17 (ii) are donated to the United States 

18 for that purpose; 

19 (F) appropriate prohibitions or restrictions 

20 on— 

21 (i) access by all modes of transpor22 tation; 

23 (ii) sand and gravel extraction; and 

24 (iii) use of explosives; 


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1 (G) reasonable stipulations for protection 

2 of cultural and archaeological resources; 

3 (H) measures to protect groundwater and 

4 surface water, including— 

5 (i) avoidance, to the maximum extent 

6 practicable, of springs, streams, and river 

7 systems; 

8 (ii) the protection of natural surface 

9 drainage patterns, wetland, and riparian 

10 habitats; and 

11 (iii) the regulation of methods or tech12 niques for developing or transporting ade13 quate supplies of water for exploratory 

14 drilling; and 

15 (I) research, monitoring, and reporting re16 quirements; 

17 (3) that exploration activities (except surface 

18 geological studies) be limited to the period between 

19 approximately November 1 and May 1 of each year 

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

21 trails with adequate snow cover, ice pads, ice air22 strips, and air transport methods (except that those 

23 exploration activities may be permitted at other 

24 times if the Secretary determines that the explo25 ration will have no significant adverse effect on fish 


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1 and wildlife, fish and wildlife habitat, and the envi2 ronment of the Coastal Plain); 

3 (4) consolidation of facility siting; 

4 (5) avoidance or reduction of air traffic-related 

5 disturbance to fish and wildlife; 

6 (6) treatment and disposal of hazardous and 

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

8 muds and cuttings, and domestic wastewater, includ9 ing, in accordance with applicable Federal and State 

10 environmental laws (including regulations)— 

11 (A) preparation of an annual waste man12 agement report; 

13 (B) development and implementation of a 

14 hazardous materials tracking system; and 

15 (C) prohibition on the use of chlorinated 

16 solvents; 

17 (7) fuel storage and oil spill contingency plan18 ning; 

19 (8) conduct of periodic field crew environmental 

20 briefings; 

21 (9) avoidance of significant adverse effects on 

22 subsistence hunting, fishing, and trapping; 

23 (10) compliance with applicable air and water 

24 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) all other protective environmental stipula5 tions, restrictions, terms, and conditions considered 

6 necessary by the Secretary. 

7 (e) CONSIDERATIONS.—In preparing and issuing reg8 ulations, lease terms, conditions, restrictions, prohibitions, 

9 and stipulations under this section, the Secretary shall 

10 take into consideration— 

11 (1) the stipulations and conditions that govern 

12 the National Petroleum Reserve-Alaska leasing pro13 gram, as set forth in the 1999 Northeast National 

14 Petroleum Reserve-Alaska Final Integrated Activity 

15 Plan/Environmental Impact Statement; 

16 (2) the environmental protection standards that 

17 governed the initial Coastal Plain seismic exploration 

18 program under parts 37.31 through 37.33 of title 

19 50, Code of Federal Regulations (or successor regu20 lations); and 

21 (3) the land use stipulations for exploratory 

22 drilling on the KIC–ASRC private land described in 

23 Appendix 2 of the agreement between Arctic Slope 

24 Regional Corporation and the United States dated 

25 August 9, 1983. 


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1 (f) FACILITY CONSOLIDATION PLANNING.— 

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

3 notice and comment, the Secretary shall prepare and 

4 periodically update a plan to govern, guide, and di5 rect the siting and construction of facilities for the 

6 exploration, development, production, and transpor7 tation of oil and gas resources from the Coastal 

8 Plain. 

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

10 shall be— 

11 (A) the avoidance of unnecessary duplica12 tion of facilities and activities; 

13 (B) the encouragement of consolidation of 

14 common facilities and activities; 

15 (C) the location or confinement of facilities 

16 and activities to areas that will minimize impact 

17 on fish and wildlife, fish and wildlife habitat, 

18 and the environment; 

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

20 maximum extent practicable; and 

21 (E) the enhancement of compatibility be22 tween wildlife values and development activities. 

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

24 shall— 


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

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

3 811 of the Alaska National Interest Lands Con4 servation Act (16 U.S.C. 3121); and 

5 (2) ensure that local residents shall have rea6 sonable access to public land in the Coastal Plain for 

7 traditional uses. 

8 SEC. 178. EXPEDITED JUDICIAL REVIEW. 

9 (a) FILING OF COMPLAINTS.— 

10 (1) DEADLINE.—A complaint seeking judicial 

11 review of a provision of this part or an action of the 

12 Secretary under this part shall be filed— 

13 (A) except as provided in subparagraph 

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

15 date on which the action being challenged was 

16 carried out; or 

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

18 on grounds arising after the 90-day period de19 scribed in subparagraph (A), by not later than 

20 90 days after the date on which the complain21 ant knew or reasonably should have known 

22 about the grounds for the complaint. 

23 (2) VENUE.—A complaint seeking judicial re24 view of a provision of this part or an action of the 

25 Secretary under this part shall be filed in the United 


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1 States Court of Appeals for the District of Colum2 bia. 

3 (3) SCOPE.— 

4 (A) IN GENERAL.—Judicial review of a de5 cision of the Secretary relating to a lease sale 

6 under this part (including an environmental 

7 analysis of such a lease sale) shall be— 

8 (i) limited to a review of whether the 

9 decision is in accordance with this part; 

10 and 

11 (ii) based on the administrative record 

12 of the decision. 

13 (B) PRESUMPTIONS.—Any identification 

14 by the Secretary of a preferred course of action 

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

16 Secretary of environmental effects, under this 

17 part shall be presumed to be correct unless 

18 proven otherwise by clear and convincing evi19 dence. 

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

21 the Secretary that is subject to judicial review under this 

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

23 or criminal proceeding for enforcement. 


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1 SEC. 179. USE OF REVENUES. 

2 Notwithstanding any other provision of law, all ad3 justed bonus, rental, and royalty revenues from oil and 

4 gas leasing and operations authorized under this part shall 

5 be used to carry out this Act and the amendments made 

6 by this Act, with priority given to loan guarantees, dem7 onstrations, and grants made or carried out under parts 

8 I and II of title I and title II (as determined by the Sec9 retary). 

10 SEC. 180. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 

11 (a) EXEMPTION.—Sections 1101 through 1108 of the 

12 Alaska National Interest Lands Conservation Act (16 

13 U.S.C. 3161 et seq.) shall not apply to any right-of-way 

14 or easement across the Coastal Plain for the transpor15 tation of oil and gas issued by the Secretary under section 

16 28 of the Mineral Leasing Act (30 U.S.C. 185). 

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

18 include in any right-of-way or easement described in sub19 section (a) such terms and conditions as the Secretary de20 termines to be necessary to ensure that the transportation 

21 of oil or gas does not significantly adversely affect any 

22 fish, wildlife, subsistence resource, or habitat, or the envi23 ronment, of the Coastal Plain, including terms and condi24 tions requiring facilities to be sited or designed to avoid 

25 any unnecessary duplication of roads or pipelines. 


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1 (c) REGULATIONS.—In promulgating regulations 

2 pursuant to section 173(g), the Secretary shall include 

3 provisions for rights-of-way and easements described in 

4 subsection (a). 

5 SEC. 181. CONVEYANCE. 

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

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

8 3192(h)(2)), to remove any impediment on a title to land, 

9 and to clarify land ownership patterns in the Coastal 

10 Plain, the Secretary shall— 

11 (1) to the extent necessary to fulfill the entitle12 ment of the Kaktovik Inupiat Corporation under sec13 tion 12 of the Alaska Native Claims Settlement Act 

14 (43 U.S.C. 1611), as determined by the Secretary, 

15 convey to that Corporation the surface estate of the 

16 land described in paragraph (1) of Public Land 

17 Order 6959, in accordance with the terms and condi18 tions of the agreement between the Secretary, the 

19 United States Fish and Wildlife Service, the Bureau 

20 of Land Management, and the Kaktovik Inupiat 

21 Corporation, dated January 22, 1993; and 

22 (2) convey to the Arctic Slope Regional Cor23 poration the remaining subsurface estate to which 

24 that Corporation is entitled under the agreement beVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00219 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 tween that corporation and the United States, dated 

2 August 9, 1983. 

3 PART III—EMERGENCY SERVICE ROUTE 

4 SEC. 191. EMERGENCY SERVICE ROUTE. 

5 Section 1948 of the Safe, Accountable, Flexible, Effi6 cient Transportation Equity Act: A Legacy for Users 

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

8 TITLE II—RESEARCH AND 

9 DEVELOPMENT 

10 SEC. 201. RENEWABLE ENERGY. 

11 Section 931 of the Energy Policy Act of 2005 (42 

12 U.S.C. 16231) is amended— 

13 (1) by striking subsections (b) through (e); 

14 (2) by redesignating subsections (f) and (g) as 

15 subsections (b) and (c), respectively; and 

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

17 ‘‘(d) FUNDING.— 

18 ‘‘(1) APPROPRIATION.— 

19 ‘‘(A) IN GENERAL.—Out of any funds in 

20 the Treasury not otherwise appropriated, the 

21 Secretary of the Treasury shall transfer to the 

22 Secretary to carry out this section— 

23 ‘‘(i) not later than 30 days after the 

24 date of enactment of this subparagraph, 

25 $632,000,000; 


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1 ‘‘(ii) on October 1, 2007, 

2 $742,000,000; and 

3 ‘‘(iii) on October 1, 2008, 

4 $852,000,000. 

5 ‘‘(B) RECEIPT AND ACCEPTANCE.—Subject 

6 to paragraphs (2) through (4), the Secretary 

7 shall be entitled to receive, shall accept, and 

8 shall use to carry out renewable energy re9 search, demonstration, and commercial applica10 tion activities (including activities authorized 

11 under this subtitle) the funds transferred under 

12 subparagraph (A), without further appropria13 tion. 

14 ‘‘(C) AVAILABILITY OF FUNDS.—Funds 

15 transferred under subparagraph (A) shall re16 main available until expended. 

17 ‘‘(2) BIOENERGY.—Of the amounts made avail18 able by paragraph (1), the Secretary shall use to 

19 carry out section 932— 

20 ‘‘(A) $213,000,000 for fiscal year 2007, of 

21 which $100,000,000 shall be for section 932(d); 

22 ‘‘(B) $251,000,000 for fiscal year 2008, of 

23 which $125,000,000 shall be for section 932(d); 

24 and 


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•S 3926 IS

1 ‘‘(C) $274,000,000 for fiscal year 2009, of 

2 which $150,000,000 shall be for section 932(d). 

3 ‘‘(3) SOLAR POWER.—Of the amounts made 

4 available by paragraph (1), the Secretary shall use 

5 to carry out activities under subsection (a)(2)(A)— 

6 ‘‘(A) $140,000,000 for fiscal year 2007, of 

7 which $40,000,000 shall be for activities under 

8 section 935; 

9 ‘‘(B) $200,000,000 for fiscal year 2008, of 

10 which $50,000,000 shall be for activities under 

11 section 935; and 

12 ‘‘(C) $250,000,000 for fiscal year 2009, of 

13 which $50,000,000 shall be for activities under 

14 section 935. 

15 ‘‘(4) ADMINISTRATION.—Of the funds made 

16 available by paragraph (1), not less than $5,000,000 

17 for each fiscal year shall be made available for 

18 grants to— 

19 ‘‘(A) part B institutions; 

20 ‘‘(B) Tribal Colleges or Universities (as de21 fined in section 316(b) of the Higher Education 

22 Act of 1965 (20 U.S.C. 1059c(b))); and 

23 ‘‘(C) Hispanic-serving institutions.’’. 


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1 SEC. 202. BIOMASS RESEARCH AND DEVELOPMENT. 

2 Section 310 of the Biomass Research and Develop3 ment Act of 2000 (7 U.S.C. 8609) is amended by striking 

4 subsection (b) and inserting the following: 

5 ‘‘(b) ADDITIONAL FUNDING.— 

6 ‘‘(1) IN GENERAL.—In addition to the amounts 

7 transferred under subsection (a), not later than 30 

8 days after the date of enactment of this paragraph, 

9 on October 1, 2007, and on each October 1 there10 after through October 1, 2015, out of any funds in 

11 the Treasury not otherwise appropriated, the Sec12 retary of the Treasury shall transfer to the Sec13 retary to carry out this title $200,000,000, to re14 main available until expended. 

15 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec16 retary shall be entitled to receive, shall accept, and 

17 shall use to carry out this title the funds transferred 

18 under paragraph (1), without further appropria19 tion.’’. 

20 SEC. 203. PRODUCTION INCENTIVES FOR CELLULOSIC 

21 BIOFUELS. 

22 Section 942 of the Energy Policy Act of 2005 (42 

23 U.S.C. 16251) is amended by striking subsection (f) and 

24 inserting the following: 

25 ‘‘(f) FUNDING.— 


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1 ‘‘(1) IN GENERAL.—Out of any funds in the 

2 Treasury not otherwise appropriated, the Secretary 

3 of the Treasury shall transfer to the Secretary to 

4 carry out this section— 

5 ‘‘(A) not later than 30 days after the date 

6 of enactment of this paragraph, $150,000,000; 

7 ‘‘(B) on October 1, 2007, $200,000,000; 

8 and 

9 ‘‘(C) on each October 1 thereafter through 

10 October 1, 2010, $250,000,000. 

11 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec12 retary shall be entitled to receive, shall accept, and 

13 shall use to carry out this section the funds trans14 ferred under paragraph (1), without further appro15 priation. 

16 ‘‘(3) AVAILABILITY OF FUNDS.—Funds trans17 ferred under paragraph (1) shall remain available 

18 until expended.’’. 

19 SEC. 204. COMMERCIAL BYPRODUCTS FROM MUNICIPAL 

20 SOLID WASTE AND CELLULOSIC BIOMASS 

21 LOAN GUARANTEE PROGRAM. 

22 Section 1510 of the Energy Policy Act of 2005 (42 

23 U.S.C. 16501) is amended by striking subsection (k) and 

24 inserting the following: 

25 ‘‘(k) FUNDING.— 


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1 ‘‘(1) MANDATORY FUNDING.— 

2 ‘‘(A) IN GENERAL.—Notwithstanding any 

3 other provision of law, not later than 30 days 

4 after the date of enactment of this paragraph, 

5 out of any funds in the Treasury not otherwise 

6 appropriated, the Secretary of the Treasury 

7 shall transfer to the Secretary to carry out this 

8 section $1,000,000,000, to remain available 

9 until expended. 

10 ‘‘(B) RECEIPT AND ACCEPTANCE.—The 

11 Secretary shall be entitled to receive, shall ac12 cept, and shall use to carry out this section the 

13 funds transferred under subparagraph (A), 

14 without further appropriation. 

15 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In 

16 addition to the amounts made available under para17 graph (1), there are authorized to be appropriated 

18 such sums as are necessary to carry out this sec19 tion.’’. 

20 SEC. 205. FOSSIL ENERGY. 

21 Section 961 of the Energy Policy Act of 2005 (42 

22 U.S.C. 16291) is amended by striking subsections (b) 

23 through (e) and inserting the following: 

24 ‘‘(b) FUNDING.— 

25 ‘‘(1) APPROPRIATION.— 


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1 ‘‘(A) IN GENERAL.—Out of any funds in 

2 the Treasury not otherwise appropriated, the 

3 Secretary of the Treasury shall transfer to the 

4 Secretary to carry out fossil energy research, 

5 development, demonstration, and commercial 

6 application activities, including activities au7 thorized under this subtitle— 

8 ‘‘(i) not later than 30 days after the 

9 date of enactment of this subparagraph, 

10 $387,000,000; 

11 ‘‘(ii) on October 1, 2007, 

12 $401,000,000; and 

13 ‘‘(iii) on October 1, 2008, 

14 $424,000,000. 

15 ‘‘(B) RECEIPT AND ACCEPTANCE.—The 

16 Secretary shall be entitled to receive, shall ac17 cept, and shall use to carry out this section the 

18 funds transferred under subparagraph (A), 

19 without further appropriation. 

20 ‘‘(C) AVAILABILITY OF FUNDS.—Funds 

21 transferred under subparagraph (A) shall re22 main available until expended. 

23 ‘‘(2) ALLOCATIONS.—From amounts made 

24 available under paragraph (1), the Secretary shall 

25 use— 


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1 ‘‘(A) for activities under section 962— 

2 ‘‘(i) $367,000,000 for fiscal year 

3 2007; 

4 ‘‘(ii) $376,000,000 for fiscal year 

5 2008; and 

6 ‘‘(iii) $394,000,000 for fiscal year 

7 2009; and 

8 ‘‘(B) for activities under section 964— 

9 ‘‘(i) $20,000,000 for fiscal year 2007; 

10 ‘‘(ii) $25,000,000 for fiscal year 2008; 

11 and 

12 ‘‘(iii) $30,000,000 for fiscal year 

13 2009. 

14 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—In 

15 addition to the amounts made available under para16 graph (1), there are authorized to be appropriated to 

17 the Secretary to carry out fossil energy research, de18 velopment, demonstration, and commercial applica19 tion activities, including activities authorized under 

20 this subtitle, $224,000,000 for fiscal year 2007, 

21 $225,000,000 for fiscal year 2008, $217,000,000 for 

22 fiscal year 2009, and $25,000,000 for each of fiscal 

23 years 2010 through 2012, including— 

24 ‘‘(A) for activities under section 966— 


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•S 3926 IS

1 ‘‘(i) $1,500,000 for fiscal year 2007; 

2 and 

3 ‘‘(ii) $450,000 for each of fiscal years 

4 2008 and 2009; and 

5 ‘‘(B) for the Office of Arctic Energy under 

6 section 3197 of the Floyd D. Spence National 

7 Defense Authorization Act for Fiscal Year 2001 

8 (42 U.S.C. 7144d), $25,000,000 for each of fis9 cal years 2007 through 2012. 

10 ‘‘(4) LIMITATIONS.— 

11 ‘‘(A) USES.—None of the funds made 

12 available or authorized under this section may 

13 be used for Fossil Energy Environmental Res14 toration or Import/Export Authorization. 

15 ‘‘(B) INSTITUTIONS OF HIGHER EDU16 CATION.—Of the funds made available by para17 graph (2)(B) for each fiscal year, not less than 

18 20 percent shall be dedicated to research and 

19 development carried out at institutions of high20 er education.’’. 

21 SEC. 206. CARBON CAPTURE RESEARCH AND DEVELOP22 MENT PROGRAM. 

23 Section 963 of the Energy Policy Act of 2005 (42 

24 U.S.C. 16293) is amended by striking subsection (c) and 

25 inserting the following: 


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1 ‘‘(c) FUNDING.— 

2 ‘‘(1) IN GENERAL.—Out of any funds in the 

3 Treasury not otherwise appropriated, the Secretary 

4 of the Treasury shall transfer to the Secretary to 

5 carry out this section— 

6 ‘‘(A) not later than 30 days after the date 

7 of enactment of this subparagraph, 

8 $25,000,000; 

9 ‘‘(B) on October 1, 2007, $30,000,000; 

10 and 

11 ‘‘(C) on October 1, 2008, $35,000,000. 

12 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec13 retary shall be entitled to receive, shall accept, and 

14 shall use to carry out this section the funds trans15 ferred under paragraph (1), without further appro16 priation. 

17 ‘‘(3) AVAILABILITY OF FUNDS.—Funds trans18 ferred under paragraph (1) shall remain available 

19 until expended.’’. 

20 SEC. 207. ADVANCED ENERGY INITIATIVE FOR VEHICLES. 

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

22 (1) to enable and promote, in partnership with 

23 industry, comprehensive development, demonstra24 tion, and commercialization of a wide range of elecVerDate Aug 31 2005 21:05 Sep 27, 2006 Jkt 049200 PO 00000 Frm 00229 Fmt 6652 Sfmt 6201 E:\BILLS\S3926.IS S3926

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1 tric drive components, systems, and vehicles using 

2 diverse electric drive transportation technologies; 

3 (2) to make critical public investments to help 

4 private industry, institutions of higher education, 

5 National Laboratories, and research institutions to 

6 expand innovation, industrial growth, and jobs in the 

7 United States; 

8 (3) to expand the availability of the existing 

9 electric infrastructure for fueling light duty trans10 portation and other on-road and nonroad vehicles 

11 that are using petroleum and are mobile sources of 

12 emissions— 

13 (A) including the more than 3,000,000 re14 ported units (such as electric forklifts, golf 

15 carts, and similar nonroad vehicles) in use on 

16 the date of enactment of this Act; and 

17 (B) with the goal of enhancing the energy 

18 security of the United States, reduce depend19 ence on imported oil, and reduce emissions 

20 through the expansion of grid-supported mobil21 ity; 

22 (4) to accelerate the widespread commercializa23 tion of all types of electric drive vehicle technology 

24 into all sizes and applications of vehicles, including 


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1 commercialization of plug-in hybrid electric vehicles 

2 and plug-in hybrid fuel cell vehicles; and 

3 (5) to improve the energy efficiency of and re4 duce the petroleum use in transportation. 

5 (b) DEFINITIONS.—In this section: 

6 (1) BATTERY.—The term ‘‘battery’’ means an 

7 energy storage device used in an on-road or nonroad 

8 vehicle powered in whole or in part using an off9 board or on-board source of electricity. 

10 (2) ELECTRIC DRIVE TRANSPORTATION TECH11 NOLOGY.—The term ‘‘electric drive transportation 

12 technology’’ means— 

13 (A) a vehicle that— 

14 (i) uses an electric motor for all or 

15 part of the motive power of the vehicle; 

16 and 

17 (ii) may use off-board electricity, in18 cluding battery electric vehicles, fuel cell 

19 vehicles, engine dominant hybrid electric 

20 vehicles, plug-in hybrid electric vehicles, 

21 plug-in hybrid fuel cell vehicles, and elec22 tric rail; or 

23 (B) equipment relating to transportation 

24 or mobile sources of air pollution that uses an 

25 electric motor to replace an internal combustion 


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1 engine for all or part of the work of the equip2 ment, including corded electric equipment 

3 linked to transportation or mobile sources of air 

4 pollution. 

5 (3) ENGINE DOMINANT HYBRID ELECTRIC VE6 HICLE.—The term ‘‘engine dominant hybrid electric 

7 vehicle’’ means an on-road or nonroad vehicle that— 

8 (A) is propelled by an internal combustion 

9 engine or heat engine using— 

10 (i) any combustible fuel; and 

11 (ii) an on-board, rechargeable storage 

12 device; and 

13 (B) has no means of using an off-board 

14 source of electricity. 

15 (4) FUEL CELL VEHICLE.—The term ‘‘fuel cell 

16 vehicle’’ means an on-road or nonroad vehicle that 

17 uses a fuel cell (as defined in section 803 of the En18 ergy Policy Act of 2005 (42 U.S.C. 16152)). 

19 (5) INITIATIVE.—The term ‘‘Initiative’’ means 

20 the Advanced Battery Initiative established by the 

21 Secretary under subsection (f)(1). 

22 (6) NONROAD VEHICLE.—The term ‘‘nonroad 

23 vehicle’’ has the meaning given the term in section 

24 216 of the Clean Air Act (42 U.S.C. 7550). 


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1 (7) PLUG-IN HYBRID ELECTRIC VEHICLE.—The 

2 term ‘‘plug-in hybrid electric vehicle’’ means an on3 road or nonroad vehicle that is propelled by an inter4 nal combustion engine or heat engine using— 

5 (A) any combustible fuel; 

6 (B) an on-board, rechargeable storage de7 vice; and 

8 (C) a means of using an off-board source 

9 of electricity. 

10 (8) PLUG-IN HYBRID FUEL CELL VEHICLE.— 

11 The term ‘‘plug-in hybrid fuel cell vehicle’’ means a 

12 fuel cell vehicle with a battery powered by an off13 board source of electricity. 

14 (9) INDUSTRY ALLIANCE.—The term ‘‘Industry 

15 Alliance’’ means the entity selected by the Secretary 

16 under subsection (f)(2). 

17 (10) INSTITUTION OF HIGHER EDUCATION.— 

18 The term ‘‘institution of higher education’’ has the 

19 meaning given the term in section 2 of the Energy 

20 Policy Act of 2005 (42 U.S.C. 15801). 

21 (11) SECRETARY.—The term ‘‘Secretary’’ 

22 means the Secretary of Energy. 

23 (c) GOALS.—The goals of the electric drive transpor24 tation technology program established under subsection 


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1 (e) shall be to develop, in partnership with industry and 

2 institutions of higher education, projects that focus on— 

3 (1) innovative electric drive technology devel4 oped in the United States; 

5 (2) growth of employment in the United States 

6 in electric drive design and manufacturing; 

7 (3) validation of the plug-in hybrid potential 

8 through fleet demonstrations; and 

9 (4) acceleration of fuel cell commercialization 

10 through comprehensive development and commer11 cialization of the electric drive technology systems 

12 that are the foundational technology of the fuel cell 

13 vehicle system. 

14 (d) ASSESSMENT.—Not later than 120 days after the 

15 date of enactment of this Act, the Secretary shall offer 

16 to enter into an arrangement with the National Academy 

17 of Sciences— 

18 (1) to conduct an assessment (in cooperation 

19 with industry, standards development organizations, 

20 and other entities, as appropriate), of state-of-the21 art battery technologies with potential application 

22 for electric drive transportation; 

23 (2) to identify knowledge gaps in the scientific 

24 and technological bases of battery manufacture and 

25 use; 


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1 (3) to identify fundamental research areas that 

2 would likely have a significant impact on the devel3 opment of superior battery technologies for electric 

4 drive vehicle applications; and 

5 (4) to recommend steps to the Secretary to ac6 celerate the development of battery technologies for 

7 electric drive transportation. 

8 (e) PROGRAM.—The Secretary shall conduct a pro9 gram of research, development, demonstration, and com10 mercial application for electric drive transportation tech11 nology, including— 

12 (1) high-capacity, high-efficiency batteries; 

13 (2) high-efficiency on-board and off-board 

14 charging components; 

15 (3) high-powered drive train systems for pas16 senger and commercial vehicles and for nonroad 

17 equipment; 

18 (4) control system development and power train 

19 development and integration for plug-in hybrid elec20 tric vehicles, plug-in hybrid fuel cell vehicles, and en21 gine dominant hybrid electric vehicles, including— 

22 (A) development of efficient cooling sys23 tems; 

24 (B) analysis and development of control 

25 systems that minimize the emissions profile 


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1 when clean diesel engines are part of a plug-in 

2 hybrid drive system; and 

3 (C) development of different control sys4 tems that optimize for different goals, includ5 ing— 

6 (i) battery life; 

7 (ii) reduction of petroleum consump8 tion; and 

9 (iii) green house gas reduction; 

10 (5) nanomaterial technology applied to both 

11 battery and fuel cell systems; 

12 (6) large-scale demonstrations, testing, and 

13 evaluation of plug-in hybrid electric vehicles in dif14 ferent applications with different batteries and con15 trol systems, including— 

16 (A) military applications; 

17 (B) mass market passenger and light-duty 

18 truck applications; 

19 (C) private fleet applications; and 

20 (D) medium- and heavy-duty applications; 

21 (7) a nationwide education strategy for electric 

22 drive transportation technologies providing sec23 ondary and high school teaching materials and sup24 port for education offered by institutions of higher 


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1 education that is focused on electric drive system 

2 and component engineering; 

3 (8) development, in consultation with the Ad4 ministrator of the Environmental Protection Agency, 

5 of procedures for testing and certification of criteria 

6 pollutants, fuel economy, and petroleum use for 

7 light-, medium-, and heavy-duty vehicle applications, 

8 including consideration of— 

9 (A) the vehicle and fuel as a system, not 

10 just an engine; and 

11 (B) nightly off-board charging; and 

12 (9) advancement of battery and corded electric 

13 transportation technologies in mobile source applica14 tions by— 

15 (A) improvement in battery, drive train, 

16 and control system technologies; and 

17 (B) working with industry and the Admin18 istrator of the Environmental Protection Agen19 cy— 

20 (i) to understand and inventory mar21 kets; and 

22 (ii) to identify and implement methods 

23 of removing barriers for existing and 

24 emerging applications. 

25 (f) ADVANCED BATTERY INITIATIVE.— 


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

2 and carry out an Advanced Battery Initiative in ac3 cordance with this subsection to support research, 

4 development, demonstration, and commercial appli5 cation of battery technologies. 

6 (2) INDUSTRY ALLIANCE.—Not later than 180 

7 days after the date of enactment of this Act, the 

8 Secretary shall competitively select an Industry Alli9 ance to represent participants who are private, for10 profit firms, the primary business of which is the 

11 manufacturing of batteries. 

12 (3) RESEARCH.— 

13 (A) GRANTS.—The Secretary shall carry 

14 out research activities of the Initiative through 

15 competitively-awarded grants to— 

16 (i) researchers, including Industry Al17 liance participants; 

18 (ii) small businesses; 

19 (iii) National Laboratories; and 

20 (iv) institutions of higher education. 

21 (B) INDUSTRY ALLIANCE.—The Secretary 

22 shall annually solicit from the Industry Alli23 ance— 


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1 (i) comments to identify advanced 

2 battery technology needs relevant to elec3 tric drive technology; 

4 (ii) an assessment of the progress of 

5 research activities of the Initiative; and 

6 (iii) assistance in annually updating 

7 advanced battery technology roadmaps. 

8 (4) AVAILABILITY TO THE PUBLIC.—The infor9 mation and roadmaps developed under this sub10 section shall be available to the public. 

11 (5) PREFERENCE.—In making awards under 

12 this subsection, the Secretary shall give preference 

13 to participants in the Industry Alliance. 

14 (g) COST SHARING.—In carrying out this section, the 

15 Secretary shall require cost sharing in accordance with 

16 section 988 of the Energy Policy Act of 2005 (42 U.S.C. 

17 16352). 

18 (h) FUNDING.— 

19 (1) IN GENERAL.—Not later than 30 days after 

20 the date of enactment of this Act, on October 1, 

21 2007, and on each October 1 thereafter through Oc22 tober 1, 2011, out of any funds in the Treasury not 

23 otherwise appropriated, the Secretary of the Treas24 ury shall transfer to the Secretary to carry out this 


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1 section $300,000,000, to remain available until ex2 pended. 

3 (2) RECEIPT AND ACCEPTANCE.—The Sec4 retary shall be entitled to receive, shall accept, and 

5 shall use to carry out this section the funds trans6 ferred under paragraph (1), without further appro7 priation. 

8 TITLE III—CONSERVATION AND 

9 EFFICIENCY 

10 Subtitle A—Decreasing Demand 

11 SEC. 301. CREDIT FOR TELEWORKING. 

12 (a) IN GENERAL.—Subpart B of part IV of sub13 chapter A of chapter 1 of the Internal Revenue Code of 

14 1986 (relating to foreign tax credit, etc.) is amended by 

15 adding at the end the following new section: 

16 ‘‘SEC. 30D. TELEWORKING CREDIT. 

17 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli18 gible taxpayer, there shall be allowed as a credit against 

19 the tax imposed by this chapter for the taxable year an 

20 amount equal to the qualified teleworking expenses paid 

21 or incurred by the taxpayer during such year. 

22 ‘‘(b) MAXIMUM CREDIT.— 

23 ‘‘(1) PER TELEWORKER LIMITATION.—The 

24 credit allowed by subsection (a) for a taxable year 

25 with respect to qualified teleworking expenses paid 


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1 or incurred by or on behalf of an individual tele2 worker shall not exceed— 

3 ‘‘(A) in the case of an eligible taxpayer de4 scribed in subsection (c)(1)(A), $1,000, and 

5 ‘‘(B) in the case of an eligible taxpayer de6 scribed in subsection (c)(1)(B), $2,000. 

7 ‘‘(2) REDUCTION FOR TELEWORKING LESS

8 THAN FULL YEAR.—In the case of an individual who 

9 is in a teleworking arrangement for less than a full 

10 taxable year, the dollar amount referred to subpara11 graph (A) or (B) of paragraph (1) shall be reduced 

12 by an amount which bears the same ratio to such 

13 dollar amount as the number of months in which 

14 such individual is not in a teleworking arrangement 

15 bears to 12. For purposes of the preceding sentence, 

16 an individual shall be treated as being in a tele17 working arrangement for a month if the individual 

18 is subject to such arrangement for any day of such 

19 month. 

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

21 ‘‘(1) ELIGIBLE TAXPAYER.—The term ‘eligible 

22 taxpayer’ means— 

23 ‘‘(A) in the case of an individual, an indi24 vidual who performs services for an employer 

25 under a teleworking arrangement, and 


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1 ‘‘(B) in the case of an employer, an em2 ployer for whom employees perform services 

3 under a teleworking arrangement. 

4 ‘‘(2) TELEWORKING ARRANGEMENT.—The term 

5 ‘teleworking arrangement’ means an arrangement 

6 under which an employee teleworks for an employer 

7 not less than 75 days per year. 

8 ‘‘(3) QUALIFIED TELEWORKING EXPENSES.— 

9 The term ‘qualified teleworking expenses’ means ex10 penses paid or incurred under a teleworking ar11 rangement for furnishings and electronic information 

12 equipment which are used to enable an individual to 

13 telework. 

14 ‘‘(4) TELEWORK.—The term ‘telework’ means 

15 to perform work functions, using electronic informa16 tion and communication technologies, thereby reduc17 ing or eliminating the physical commute to and from 

18 the traditional work site. 

19 ‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.— 

20 ‘‘(1) LIABILITY FOR TAX.—The credit allowable 

21 under subsection (a) for any taxable year shall not 

22 exceed the excess (if any) of— 

23 ‘‘(A) the regular tax for the taxable year, 

24 reduced by the sum of the credits allowable 


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1 under subpart A and the preceding sections of 

2 this subpart, over 

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

4 taxable year. 

5 ‘‘(2) CARRYFORWARD OF UNUSED CREDIT.—If 

6 the amount of the credit allowable under subsection 

7 (a) for any taxable year exceeds the limitation under 

8 paragraph (1) for the taxable year, the excess shall 

9 be carried to the succeeding taxable year and added 

10 to the amount allowable as a credit under subsection 

11 (a) for such succeeding taxable year. 

12 ‘‘(e) SPECIAL RULES.— 

13 ‘‘(1) BASIS REDUCTION.—The basis of any 

14 property for which a credit is allowable under sub15 section (a) shall be reduced by the amount of such 

16 credit (determined without regard to subsection (d)). 

17 ‘‘(2) RECAPTURE.—The Secretary shall, by reg18 ulations, provide for recapturing the benefit of any 

19 credit allowable under subsection (a) with respect to 

20 any property which ceases to be property eligible for 

21 such credit. 

22 ‘‘(3) PROPERTY USED OUTSIDE UNITED STATES

23 NOT QUALIFIED.—No credit shall be allowed under 

24 subsection (a) with respect to any property referred 

25 to in section 50(b)(1) or with respect to the portion 


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1 of the cost of any property taken into account under 

2 section 179. 

3 ‘‘(4) ELECTION TO NOT TAKE CREDIT.—No 

4 credit shall be allowed under subsection (a) for any 

5 expense if the taxpayer elects to not have this sec6 tion apply with respect to such expense. 

7 ‘‘(5) DENIAL OF DOUBLE BENEFIT.—No deduc8 tion or credit (other than under this section) shall 

9 be allowed under this chapter with respect to any ex10 pense which is taken into account in determining the 

11 credit under this section.’’. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) Subsection (a) of section 1016 of the Inter14 nal Revenue Code of 1986 is amended by striking 

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

16 period at the end of paragraph (37) and inserting ‘‘, 

17 and’’, and by adding at the end the following new 

18 paragraph: 

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

20 30D(e)(1), in the case of amounts with respect to 

21 which a credit has been allowed under section 

22 30D.’’. 

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

24 by inserting ‘‘30D(d),’’ after ‘‘30(b)(3),’’. 


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1 (3) Section 6501(m) of such Code is amended 

2 by inserting ‘‘30D(e)(4),’’ after ‘‘30C(e)(5),’’. 

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

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

5 of the Internal Revenue Code of 1986 is amended by add6 ing at the end the following new item: 

‘‘Sec. 30D. Teleworking credit.’’. 

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

8 this section shall apply to amounts paid or incurred after 

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

10 ending after such date. 

11 SEC. 302. EMPLOYER-PROVIDED COMPUTER EQUIPMENT 

12 TREATED AS FRINGE BENEFIT. 

13 (a) IN GENERAL.—Subsection (a) of section 132 of 

14 the Internal Revenue Code of 1986 is amended by striking 

15 ‘‘or’’ at the end of paragraph (7), by striking the period 

16 at the end of paragraph (8) and inserting ‘‘, or’’, and by 

17 adding at the end the following new paragraph: 

18 ‘‘(9) qualified employer-provided computer 

19 equipment fringe.’’. 

20 (b) QUALIFIED EMPLOYER-PROVIDED COMPUTER

21 EQUIPMENT FRINGE.—Section 132 of the Internal Rev22 enue Code of 1986 is amended by redesignating subsection 

23 (o) as subsection (p) and by inserting after subsection (n) 

24 the following new subsection: 


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1 ‘‘(o) QUALIFIED EMPLOYER-PROVIDED COMPUTER

2 EQUIPMENT FRINGE.—For purposes of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘qualified em4 ployer-provided computer equipment fringe’ means 

5 any computer and related equipment and services 

6 provided to an employee by an employer if— 

7 ‘‘(A) such computer and related equipment 

8 and services are necessary for the employee to 

9 perform work for the employer from the em10 ployee’s home, and 

11 ‘‘(B) the employee makes substantial busi12 ness use of the equipment in the performance 

13 of work for the employer. 

14 ‘‘(2) SUBSTANTIAL USE.—For purposes of 

15 paragraph (1), the term ‘substantial business use’ 

16 includes standby use for periods when work from 

17 home may be required by the employer such as dur18 ing work closures caused by the threat of terrorism, 

19 inclement weather, or natural disasters.’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2005. 


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1 SEC. 303. SENSE OF CONGRESS. 

2 It is the sense of Congress that Congress and the em3 ployees of the legislative branch of the Federal Govern4 ment should— 

5 (1) conserve gasoline, aviation, and diesel fuel 

6 by whatever means practicable; and 

7 (2) as a part of such conservation efforts, pro8 mote teleworking. 

9 Subtitle B—Corporate Average 

10 Fuel Economy Reform 

11 SEC. 311. SHORT TITLE. 

12 This subtitle may be cited as the ‘‘Corporate Average 

13 Fuel Economy Reform Act of 2006’’. 

14 SEC. 312. CAFE STANDARDS FOR PASSENGER AUTO15 MOBILES. 

16 (a) AVERAGE FUEL ECONOMY STANDARDS FOR

17 AUTOMOBILES.—Section 32902 of title 49, United States 

18 Code, is amended— 

19 (1) by striking subsections (b) and (c) and in20 serting the following: 

21 ‘‘(b) PASSENGER AUTOMOBILES.— 

22 ‘‘(1) IN GENERAL.—Not later than 18 months 

23 before the beginning of each model year, the Sec24 retary of Transportation shall prescribe by regula25 tion average fuel economy standards for passenger 

26 automobiles manufactured by a manufacturer in 


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1 that model year. Each standard shall be the max2 imum feasible average fuel economy level that the 

3 Secretary decides the manufacturers can achieve in 

4 that model year. The Secretary may prescribe sepa5 rate standards for different classes of passenger 

6 automobiles. 

7 ‘‘(2) MINIMUM STANDARD.—In prescribing 

8 standards under paragraph (1), the Secretary shall 

9 ensure that each manufacturer’s standard for a par10 ticular model year is not less than the greater of— 

11 ‘‘(A) the standard in effect on the date of 

12 enactment of the Corporate Average Fuel Econ13 omy Reform Act of 2006; or 

14 ‘‘(B) a standard established in accordance 

15 with the requirement of section 315(c)(2) of 

16 that Act. 

17 ‘‘(c) FLEXIBILITY OF AUTHORITY.— 

18 ‘‘(1) IN GENERAL.—The authority of the Sec19 retary to prescribe by regulation average fuel econ20 omy standards for automobiles under this section in21 cludes the authority to prescribe standards based on 

22 1 or more vehicle attributes that relate to fuel econ23 omy, and to express the standards in the form of a 

24 mathematical function. The Secretary may issue a 


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1 regulation prescribing standards for 1 or more 

2 model years. 

3 ‘‘(2) REQUIRED LEAD-TIME.—If the Secretary 

4 prescribes an amendment to a standard under this 

5 section that makes an average fuel economy stand6 ard more stringent, the Secretary shall prescribe 

7 such amendment not later than 18 months before 

8 the beginning of the model year to which the amend9 ment applies. 

10 ‘‘(3) NO ACROSS-THE-BOARD INCREASES.—A 

11 standard, or an amendment to a standard under this 

12 section, may not be expressed as a uniform percent13 age increase from the fuel-economy performance of 

14 automobile classes or categories already achieved in 

15 a model year by a manufacturer.’’; 

16 (2) in subsection (f), by inserting ‘‘motor vehi17 cle safety, emissions,’’ after ‘‘economy,’’; 

18 (3) in subsection (f), by striking ‘‘energy’’ and 

19 inserting ‘‘energy and reduce its dependence on oil 

20 for transportation’’; 

21 (4) by striking subsection (j) and inserting the 

22 following: 

23 ‘‘(j) COMMENTS FROM DOE AND EPA.— 

24 ‘‘(1) NOTICE OF PROPOSED RULEMAKING.—Be25 fore issuing a notice proposing to prescribe or 


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1 amend an average fuel economy standard under sub2 section (a), (b), or (g), the Secretary of Transpor3 tation shall give the Secretary of Energy and the 

4 Administrator of the Environmental Protection 

5 Agency at least 10 days to comment on the proposed 

6 standard or amendment. If the Secretary of Energy 

7 or the Administrator concludes that the proposed 

8 standard or amendment would adversely affect the 

9 conservation goals of the Department of Energy or 

10 the environmental protection goals of the Environ11 mental Protection Agency, respectively, the Sec12 retary or the Administrator may provide written 

13 comments to the Secretary of Transportation about 

14 the impact of the proposed standard or amendment 

15 on those goals. To the extent that the Secretary of 

16 Transportation does not revise a proposed standard 

17 or amendment to take into account the comments, if 

18 any, the Secretary shall include the comments in the 

19 notice. 

20 ‘‘(2) NOTICE OF FINAL RULE.—Before taking 

21 final action on a standard or an exemption from a 

22 standard under this section, the Secretary of Trans23 portation shall notify the Secretary of Energy and 

24 the Administrator of the Environmental Protection 


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1 Agency and provide them a reasonable time to com2 ment on the standard or exemption.’’; and 

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

4 ‘‘(k) COSTS–BENEFITS.—The Secretary of Transpor5 tation may not prescribe an average fuel economy stand6 ard under this section that imposes marginal costs that 

7 exceed marginal benefits, as determined at the time any 

8 change in the standard is promulgated.’’. 

9 (b) EXEMPTION CRITERIA.—Section 32904(b)(6)(B) 

10 of title 49, United States Code, is amended by striking 

11 ‘‘exemption would result in reduced employment in the 

12 United States related to motor vehicle manufacturing’’ 

13 and inserting ‘‘manufacturer requesting the exemption will 

14 transfer employment from the United States related to 

15 motor vehicle manufacturing because of the grant of the 

16 exemption’’. 

17 (c) CONFORMING AMENDMENTS.— 

18 (1) Section 32902 of title 49, United States 

19 Code, is amended— 

20 (A) in subsection (d)(1), by striking ‘‘or 

21 (c) of this section’’; 

22 (B) in subsection (e)(2), by striking ‘‘(c), 

23 or (d) of this section’’ and inserting ‘‘or (d)’’; 

24 (C) in subsection (g)— 

25 (i) in paragraph (1)— 


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1 (I) by striking ‘‘subsection (a) or 

2 (d)’’ each place it appears and insert3 ing ‘‘subsection (a), (b), or (d)’’; 

4 (II) by striking ‘‘(1)’’; 

5 (ii) by striking paragraph (2); and 

6 (D) in subsection (h), by striking ‘‘(c),’’ 

7 and inserting ‘‘(b),’’. 

8 (2) Section 32903 of such title is amended by 

9 striking ‘‘section 32902(b)–(d) of this title’’ each 

10 place it appears and inserting ‘‘subsection (b) or (d) 

11 of section 32902’’. 

12 (3) Section 32904(a)(1)(B) of such title is 

13 amended by striking ‘‘section 32902(b)–(d) of this 

14 title’’ and inserting ‘‘subsection (b) or (d) of section 

15 32902’’. 

16 (4) The first sentence of section 32909(b) of 

17 such title is amended to read as follows: ‘‘The peti18 tion shall be filed not later than 59 days after the 

19 regulation is prescribed.’’. 

20 (5) Section 32917(b)(1)(B) of such title is 

21 amended by striking ‘‘or (c) of this title’’. 

22 SEC. 313. USE OF EARNED CREDITS. 

23 Section 32903 of title 49, United States Code, is 

24 amended— 


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1 (1) in subsection (a), by striking ‘‘3 consecutive 

2 model years’’ and inserting ‘‘5 consecutive model 

3 years’’; 

4 (2) in subsection (b)(2), by striking ‘‘3 model 

5 years’’ and inserting ‘‘5 model years’’; 

6 (3) by redesignating subsection (f) as sub7 section (g); and 

8 (4) by inserting after subsection (e) the fol9 lowing: 

10 ‘‘(f) CREDIT TRANSFERS.—Taking into consideration 

11 the potential effect of transfers on creating incentives for 

12 manufacturers to produce more efficient vehicles and do13 mestic automotive employment, the Secretary of Trans14 portation may permit, by regulation, on such terms and 

15 conditions as the Secretary may specify, a manufacturer 

16 of automobiles that earns credits to transfer such credits 

17 attributable to 1 of the following production segments in 

18 a model year to apply those credits in that model year 

19 to the other production segment: 

20 ‘‘(1) Passenger-automobile production. 

21 ‘‘(2) Non-passenger-automobile production.’’. 

22 SEC. 314. USE OF CIVIL PENALTIES FOR RESEARCH AND 

23 DEVELOPMENT. 

24 Section 32912 of title 49, United States Code, is 

25 amended by adding at the end the following: 


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1 ‘‘(e) RESEARCH AND DEVELOPMENT AND USE OF

2 CIVIL PENALTIES.— 

3 ‘‘(1) AVAILABILITY.—All civil penalties assessed 

4 by the Secretary or by a Court shall be credited to 

5 an account at the Department of Transportation 

6 and shall be available to the Secretary to carry out 

7 the research program described in paragraph (2). 

8 ‘‘(2) RESEARCH AND DEVELOPMENT.—The 

9 Secretary shall carry out a program of research and 

10 development into fuel saving automotive technologies 

11 and to support rulemaking related to the corporate 

12 average fuel economy program.’’. 

13 SEC. 315. EFFECTIVE DATE. 

14 (a) IN GENERAL.—Except as provided under sub15 section (b), this subtitle, and the amendments made by 

16 this subtitle, shall take effect on the date of the enactment 

17 of this Act. 

18 (b) TRANSITION FOR PASSENGER AUTOMOBILE

19 STANDARD.—Notwithstanding subsection (a), and except 

20 as provided in subsection (c)(2), until the effective date 

21 of a standard for passenger automobiles that is issued 

22 under the authority of section 32902(b) of title 49, United 

23 States Code, as amended by this subtitle, the standard or 

24 standards in place for passenger automobiles under the 

25 authority of section 32902 of that title, as that section 


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1 was in effect on the day before the date of enactment of 

2 this Act, shall remain in effect. 

3 (c) RULEMAKING.— 

4 (1) INITIATION OF RULEMAKING UNDER

5 AMENDED LAW.—Not later than 60 days after the 

6 date of the enactment of this Act, the Secretary of 

7 Transportation shall initiate a rulemaking for pas8 senger automobiles under section 32902(b) of title 

9 49, United States Code, as amended by this subtitle. 

10 (2) AMENDMENT OF EXISTING STANDARD.— 

11 Until the Secretary issues a final rule pursuant to 

12 the rulemaking initiated in accordance with para13 graph (1), the Secretary shall amend the average 

14 fuel economy standard prescribed pursuant to sec15 tion 32092(b) of title 49, United States Code, with 

16 respect to passenger automobiles in model years to 

17 which the standard adopted by such final rule does 

18 not apply. 

19 Subtitle C—Other Conservation 

20 and Efficiency Programs 

21 SEC. 321. ADVANCED BUILDING EFFICIENCY TESTBED. 

22 Section 107(c) of the Energy Policy Act of 2005 (42 

23 U.S.C. 15812(c)) is amended by striking ‘‘(c)’’ and all 

24 that follows through ‘‘For any’’ and inserting the fol25 lowing: 


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1 ‘‘(c) FUNDING.— 

2 ‘‘(1) IN GENERAL.—Not later than 30 days 

3 after the date of enactment of this paragraph, and 

4 on each October 1 thereafter through October 1, 

5 2008, out of any funds in the Treasury not other6 wise appropriated, the Secretary of the Treasury 

7 shall transfer to the Secretary of Energy to carry 

8 out this section $6,000,000, to remain available 

9 until expended. 

10 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec11 retary shall be entitled to receive, shall accept, and 

12 shall use to carry out this section the funds trans13 ferred under paragraph (1), without further appro14 priation. 

15 ‘‘(3) ALLOCATION OF FUNDS.—For any’’. 

16 SEC. 322. ENERGY EFFICIENT PUBLIC BUILDINGS. 

17 Section 125(c) of the Energy Policy Act of 2005 (42 

18 U.S.C. 15822(c)) is amended by striking ‘‘(c)’’ and all 

19 that follows through ‘‘Not more than’’ and inserting the 

20 following: 

21 ‘‘(c) FUNDING.— 

22 ‘‘(1) IN GENERAL.—Not later than 30 days 

23 after the date of enactment of this paragraph, on 

24 October 1, 2007, and on each October 1 thereafter 

25 through October 1, 2010, out of any funds in the 


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1 Treasury not otherwise appropriated, the Secretary 

2 of the Treasury shall transfer to the Secretary of 

3 Energy to carry out this section $30,000,000, to re4 main available until expended. 

5 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec6 retary shall be entitled to receive, shall accept, and 

7 shall use to carry out this section the funds trans8 ferred under paragraph (1), without further appro9 priation. 

10 ‘‘(3) USE OF FUNDS.—Not more than’’. 

11 SEC. 323. ENERGY EFFICIENCY PUBLIC INFORMATION INI12 TIATIVE. 

13 Section 134 of the Energy Policy Act of 2005 (42 

14 U.S.C. 15832) is amended— 

15 (1) in subsection (a)— 

16 (A) in the matter preceding paragraph (1), 

17 by striking ‘‘The Secretary’’ and inserting ‘‘The 

18 Secretary, in cooperation with the Secretary of 

19 Education,’’; 

20 (B) by redesignating paragraphs (2), (3), 

21 and (4) as paragraphs (3), (4), and (5), respec22 tively; and 

23 (C) by inserting after paragraph (1) the 

24 following: 


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1 ‘‘(2) the national security implications of re2 maining dependent on foreign sources of oil;’’; 

3 (2) in subsection (d), by striking ‘‘2010’’ and 

4 inserting ‘‘2011’’; and 

5 (3) by striking subsection (e) and inserting the 

6 following: 

7 ‘‘(e) FUNDING.— 

8 ‘‘(1) IN GENERAL.—Not later than 30 days 

9 after the date of enactment of this paragraph, on 

10 October 1, 2007, and on each October 1 thereafter 

11 through October 1, 2010, out of any funds in the 

12 Treasury not otherwise appropriated, the Secretary 

13 of the Treasury shall transfer to the Secretary of 

14 Energy to carry out this section $90,000,000, to re15 main available until expended. 

16 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec17 retary shall be entitled to receive, shall accept, and 

18 shall use to carry out this section the funds trans19 ferred under paragraph (1), without further appro20 priation.’’. 

21 TITLE IV—CONSUMER 

22 PROTECTION 

23 SEC. 401. SHORT TITLE. 

24 This title may be cited as the ‘‘Gasoline Consumer 

25 Anti-price-gouging Protection Act’’. 


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1 SEC. 402. PROTECTION OF CONSUMERS AGAINST PRICE 

2 GOUGING. 

3 It is unlawful for any supplier to increase the price 

4 at which that supplier sells, or offers to sell, gasoline or 

5 petroleum distillates in, or for use in— 

6 (1) an area covered by a Presidential proclama7 tion issued under section 404(a)(1) by an uncon8 scionable amount during the period beginning on the 

9 date the proclamation is issued and ending on the 

10 date specified in the proclamation; or 

11 (2) an area covered by a Federal Trade Com12 mission emergency order issued under section 

13 404(a)(2) by an unconscionable amount during the 

14 period beginning on the date the order is issued and 

15 ending on the date specified in the order. 

16 SEC. 403. JUSTIFIABLE PRICE INCREASES. 

17 (a) IN GENERAL.—The prohibition in section 402 

18 does not apply to the extent that the increase in the price 

19 of the gasoline or petroleum distillate is substantially at20 tributable to— 

21 (1) an increase in the wholesale cost of gasoline 

22 and petroleum distillates to a retail seller or reseller; 

23 (2) an increase in the replacement costs for 

24 gasoline or petroleum distillate sold; 

25 (3) an increase in operational costs; or 


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1 (4) local, regional, national, or international 

2 market conditions. 

3 (b) OTHER MITIGATING FACTORS.—In determining 

4 whether a violation of section 402 has occurred, there also 

5 shall be taken into account, among other factors, the price 

6 that would reasonably equate supply and demand in a 

7 competitive and freely functioning market and whether the 

8 price at which the gasoline or petroleum distillate was sold 

9 reasonably reflects additional costs or risks, not within the 

10 control of the seller, that were paid or incurred by the 

11 seller. 

12 SEC. 404. EMERGENCY PROCLAMATIONS AND ORDERS. 

13 (a) IN GENERAL.— 

14 (1) PRESIDENTIAL EMERGENCY PROCLAMA15 TIONS.—The President may issue an emergency 

16 proclamation when an abnormal market disruption 

17 has occurred or is reasonably expected to occur. 

18 (2) FTC EMERGENCY ORDERS.—In the absence 

19 of a Presidential proclamation under paragraph (1), 

20 the Federal Trade Commission, by majority vote, 

21 may— 

22 (A) determine that an abnormal market 

23 disruption affecting more than 1 State has oc24 curred or is reasonably expected to occur; and 


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1 (B) issue an emergency order if it makes 

2 such a determination. 

3 (b) SCOPE AND DURATION.— 

4 (1) IN GENERAL.—The emergency proclamation 

5 or order— 

6 (A) shall specify with particularity— 

7 (i) the period for which the proclama8 tion or order applies; and 

9 (ii) the event, circumstance, or condi10 tion that is the reason such a proclamation 

11 or order is determined to be necessary; and 

12 (B) may specify the area or region to 

13 which it applies, which, for the 48 contiguous 

14 States, may not be limited to a single State. 

15 (2) LIMITATIONS.—An emergency proclamation 

16 or a order under subsection (a)— 

17 (A) may not apply for a period of more 

18 than 30 consecutive days (renewable for a con19 secutive period of not more than 30 days); and 

20 (B) may apply to a period of not more 

21 than 7 days preceding the occurrence of an 

22 event, circumstance, or condition that is the 

23 reason such a proclamation or order is nec24 essary. 


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1 SEC. 405. ENFORCEMENT BY FEDERAL TRADE COMMIS2 SION. 

3 (a) VIOLATION IS UNFAIR OR DECEPTIVE ACT OR

4 PRACTICE.—Section 402 of this title shall be enforced by 

5 the Federal Trade Commission as if the violation of sec6 tion 402 were an unfair or deceptive act or practice pro7 scribed under a rule issued under section 18(a)(1)(B) of 

8 the Federal Trade Commission Act (15 U.S.C. 

9 57a(a)(1)(B)). 

10 (b) ACTIONS BY THE COMMISSION.—The Commis11 sion shall prevent any supplier from violating this title in 

12 the same manner, by the same means, and with the same 

13 jurisdiction, powers, and duties as though all applicable 

14 terms and provisions of the Federal Trade Commission 

15 Act (15 U.S.C. 41 et seq.) were incorporated into and 

16 made a part of this title. Any entity that violates any pro17 vision of this title is subject to the penalties and entitled 

18 to the privileges and immunities provided in the Federal 

19 Trade Commission Act in the same manner, by the same 

20 means, and with the same jurisdiction, power, and duties 

21 as though all applicable terms and provisions of the Fed22 eral Trade Commission Act were incorporated into and 

23 made a part of this title. 

24 (c) REGULATIONS.—Not later than 180 days after 

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1 mission shall prescribe such regulations as may be nec2 essary or appropriate to implement this title. 

3 SEC. 406. PENALTIES. 

4 (a) CIVIL PENALTY.— 

5 (1) IN GENERAL.—In addition to any penalty 

6 applicable under the Federal Trade Commission Act 

7 any supplier who violates this title is punishable by 

8 a civil penalty of— 

9 (A) not more than $500,000, in the case of 

10 an independent small business marketer of gas11 oline (within the meaning of section 324(c) of 

12 the Clean Air Act (42 U.S.C. 7625(c)); and 

13 (B) not more than $5,000,000 in the case 

14 of any other supplier. 

15 (2) METHOD OF ASSESSMENT.—The penalty 

16 provided by paragraph (1) shall be assessed in the 

17 same manner as civil penalties imposed under sec18 tion 5 of the Federal Trade Commission Act (15 

19 U.S.C. 45). 

20 (3) MULTIPLE OFFENSES; MITIGATING FAC21 TORS.—In assessing the penalty provided by sub22 section (a)— 

23 (A) each day of a continuing violation shall 

24 be considered a separate violation; and 


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1 (B) the Commission shall take into consid2 eration the seriousness of the violation and the 

3 efforts of the supplier committing the violation 

4 to remedy the harm caused by the violation in 

5 a timely manner. 

6 (b) CRIMINAL PENALTY.— 

7 (1) IN GENERAL.—In addition to any penalty 

8 applicable under the Federal Trade Commission Act, 

9 the violation of this title is punishable by a fine of 

10 not more than $1,000,000, imprisonment for not 

11 more than 2 years, or both. 

12 (2) ENFORCEMENT.—The criminal penalty pro13 vided by paragraph (1) may be imposed only pursu14 ant to a criminal action brought by the Attorney 

15 General or other officer of the Department of Jus16 tice, or any attorney specially appointed by the At17 torney General of the United States, in accordance 

18 with section 515 of title 28, United States Code. 

19 SEC. 407. DEFINITIONS. 

20 In this title: 

21 (1) ABNORMAL MARKET DISRUPTION.—The 

22 term ‘‘abnormal market disruption’’ means there is 

23 a reasonable likelihood that, in the absence of a 

24 proclamation under section 404(a), there will be an 

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1 leum distillates as a result of a change in the mar2 ket, whether actual or imminently threatened, result3 ing from extreme weather, a natural disaster, strike, 

4 civil disorder, war, military action, a national or 

5 local emergency, or other similar cause, that ad6 versely affects the availability or delivery gasoline or 

7 petroleum distillates. 

8 (2) SUPPLIER.—The term ‘‘supplier’’ means 

9 any person engaged in the trade or business of sell10 ing, reselling, at retail or wholesale, or distributing 

11 gasoline or petroleum distillates. 

12 (3) UNCONSCIONABLE AMOUNT.—The term 

13 ‘‘unconscionable amount’’ means, with respect to 

14 any supplier to whom section 402 applies, a signifi15 cant increase in the price at which gasoline or petro16 leum distillates are sold or offered for sale by that 

17 supplier that increases the price, for the same grade 

18 of gasoline or petroleum distillate, to an amount 

19 that— 

20 (A) substantially exceeds the average price 

21 at which gasoline or petroleum distillates were 

22 sold or offered for sale by that supplier during 

23 the 30-day period immediately preceding the 

24 sale or offer; 


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1 (B) substantially exceeds the average price 

2 at which gasoline or petroleum distillates were 

3 sold or offered for sale by that person’s com4 petitors during the period for which the emer5 gency proclamation applies; and 

6 (C) cannot be justified by taking into ac7 count the factors described in section 403(b). 

8 SEC. 408. EFFECTIVE DATE. 

9 This title shall take effect on the date on which a 

10 final rule issued by the Federal Trade Commission under 

11 section 405(c) is published in the Federal Register. 

12 TITLE V—TAX INCENTIVES 

13 SEC. 501. EXTENSION OF EXCISE TAX CREDIT FOR COAL14 TO-LIQUIDS. 

15 (a) IN GENERAL.—Section 6426(d)(4) of the Inter16 nal Revenue Code of 1986 (relating to termination) is 

17 amended by inserting ‘‘or any liquid fuel described in 

18 paragraph (2)(E)’’ after ‘‘liquefied hydrogen’’. 

19 (b) CONFORMING AMENDMENT.—Section 6427(e)(5) 

20 of such Code is amended by inserting ‘‘or any liquid fuel 

21 described in section 6426(d)(2)(E)’’ after ‘‘liquefied hy22 drogen’’. 

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

24 this section shall apply with respect to any sale or use 

25 for any period after the date of the enactment of this Act. 


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1 SEC. 502. EXTENSION OF ALTERNATIVE MOTOR VEHICLE 

2 CREDIT. 

3 (a) IN GENERAL.—Section 30B(j) of the Internal 

4 Revenue Code of 1986 (relating to termination) is amend5 ed by striking ‘‘2010’’ both places it appears and ‘‘2009’’ 

6 and inserting ‘‘2014’’. 

7 (b) DELAY ON LIMITATION OF CERTAIN VEHICLES

8 ELIGIBLE FOR ALTERNATIVE MOTOR VEHICLE CRED9 IT.—Paragraph (2) of section 30B(f) of the Internal Rev10 enue Code of 1986 is amended by striking ‘‘December 31, 

11 2005’’ and inserting ‘‘December 31, 2007’’. 

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

13 this section shall take effect as if included in the amend14 ment made by section 1341(a) of the Energy Policy Act 

15 of 2005. 

16 SEC. 503. TAX INCENTIVES EXTENDED TO ENCOURAGE CEL17 LULOSIC ETHANOL PRODUCTION. 

18 (a) ALCOHOL FUEL MIXTURE EXCISE TAX CRED19 IT.—Section 6426(b)(5) of the Internal Revenue Code of 

20 1986 (relating to termination) is amended by inserting 

21 ‘‘(December 31, 2015, in the case of ethanol produced 

22 from cellulosic feedstocks)’’ after ‘‘December 31, 2010’’. 

23 (b) INCOME TAX CREDIT FOR ALCOHOL USED AS

24 FUEL; SMALL ETHANOL PRODUCER CREDIT; ETHANOL

25 BLENDER CREDIT.— 


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1 (1) IN GENERAL.—Section 40(e)(1)(A) of the 

2 Internal Revenue Code of 1986 (relating to termi3 nation) is amended by inserting ‘‘(December 31, 

4 2015, in the case of ethanol produced from cellulosic 

5 feedstocks)’’ after ‘‘December 31, 2010’’. 

6 (2) CONFORMING AMENDMENTS FOR REDUCED

7 CREDIT FOR ETHANOL BLENDERS.—Section 40(h) 

8 of such Code (relating to reduced credit for ethanol 

9 blenders) is amended— 

10 (A) by inserting ‘‘(2015, in the case of eth11 anol produced from cellulosic feedstocks)’’ after 

12 ‘‘2010’’ in paragraph (1), and 

13 (B) by striking ‘‘2010’’ in the table con14 tained in paragraph (2) and inserting ‘‘2015’’. 

15 (c) REBATE FOR ALCOHOL FUEL USED TO

16 PRODUCE A MIXTURE.—Section 6427(e)(5)(A) of the In17 ternal Revenue Code of 1986 (relating to termination) is 

18 amended by inserting ‘‘(December 31, 2015, in the case 

19 of ethanol produced from cellulosic feedstocks)’’ after 

20 ‘‘December 31, 2010’’. 

21 SEC. 504. EXTENSION OF BIODIESEL INCOME AND EXCISE 

22 TAX CREDITS. 

23 Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of 

24 the Internal Revenue Code of 1986 are each amended by 

25 striking ‘‘2008’’ and inserting ‘‘2010’’. 


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1 SEC. 505. EXTENSION OF RENEWABLE ENERGY RE2 SOURCES. 

3 Section 45(d) of the Internal Revenue Code of 1986 

4 (relating to qualified facilities) is amended by striking 

5 ‘‘2008’’ each place it appears and inserting ‘‘2012’’. 

6 SEC. 506. EXTENSION AND MODIFICATION OF INVESTMENT 

7 TAX CREDIT WITH RESPECT TO SOLAR EN8 ERGY PROPERTY AND QUALIFIED FUEL CELL 

9 PROPERTY. 

10 (a) SOLAR ENERGY PROPERTY.—Paragraphs 

11 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal 

12 Revenue Code of 1986 are each amended by striking 

13 ‘‘2008’’ and inserting ‘‘2016’’. 

14 (b) ELIGIBLE FUEL CELL PROPERTY.—Paragraph 

15 (1)(E) of section 48(c) of the Internal Revenue Code of 

16 1986 is amended by striking ‘‘2007’’ and inserting 

17 ‘‘2015’’. 

18 (c) CREDITS ALLOWED AGAINST THE ALTERNATIVE

19 MINIMUM TAX.—Section 38(c)(4)(B) of the Internal Rev20 enue Code of 1986 (defining specified credits) is amended 

21 by striking the period at the end of clause (ii)(II) and in22 serting ‘‘, and’’, and by adding at the end the following 

23 new clause: 

24 ‘‘(iii) the portion of the investment 

25 credit under section 46(2) as determined 

26 under section 48(a)(2)(A)(i).’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2006. 

4 SEC. 507. CREDIT FOR PRODUCTION OF NATURAL GAS. 

5 (a) ALLOWANCE OF CREDIT.—Subpart D of part IV 

6 of subchapter A of chapter 1 of the Internal Revenue Code 

7 of 1986 (relating to business related credits) is amended 

8 by inserting after section 45M the following new section: 

9 ‘‘SEC. 45N. CREDIT FOR PRODUCTION OF NATURAL GAS. 

10 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

11 the case of a taxpayer, the amount of the natural gas pro12 duction credit determined under this section for a taxable 

13 year is equal to the product of— 

14 ‘‘(1) $2, multiplied by 

15 ‘‘(2) each 1,000,000 British thermal units of 

16 natural gas produced by the taxpayer at a high Btu 

17 fuel facility during the taxable year. 

18 ‘‘(b) REDUCTION IN CREDIT AMOUNT AS NATURAL

19 GAS PRICES INCREASE.—For purposes of this section, in 

20 the case of natural gas produced after the first day of a 

21 production month following the date on which the spot 

22 price of natural gas delivered at Henry Hub, Louisiana, 

23 on average, exceeds $6 per million British thermal units 

24 for 30 consecutive trading days, the $2 amount under sub25 section (a) shall be reduced (but not below zero) by an 


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1 amount which is equal to the amount by which such spot 

2 price exceeds $6 per million British thermal units. 

3 ‘‘(c) HIGH BTU FUEL FACILITY.—For purposes of 

4 this section— 

5 ‘‘(1) IN GENERAL.—The term ‘high Btu fuel fa6 cility’ means a facility that produces high Btu bio7 mass fuel and which is placed in service after the 

8 date of the enactment of this section and before 

9 January 1, 2012. 

10 ‘‘(2) HIGH BTU BIOMASS FUEL.—The term 

11 ‘high Btu biomass fuel’ means fuel produced from 

12 biomass (as defined in section 45K(c)(3)) that— 

13 ‘‘(A) contains no more than 7 pounds of 

14 water per million standard cubic feet, 

15 ‘‘(B) contains not less than 95 percent 

16 methane per volume, and 

17 ‘‘(C) has a Btu content of at least 950 per 

18 square cubic feet. 

19 ‘‘(d) OTHER RULES TO APPLY.—Rules similar to the 

20 rules of paragraphs (1), (3), (4), and (5) of section 45(e) 

21 shall apply for purposes of this section. 

22 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall 

23 be allowed under subsection (a) for natural gas produced 

24 by the taxpayer if a credit is allowed to the taxpayer with 

25 respect to such gas under section 45, 45I, or 45K. 


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1 ‘‘(f) APPLICATION OF SECTION.—This section shall 

2 not apply to natural gas produced at any facility after the 

3 date which is 10 years after the date such facility is placed 

4 in service.’’. 

5 (b) CREDIT TO BE PART OF GENERAL BUSINESS

6 CREDIT.—Subsection (b) of section 38 of the Internal 

7 Revenue Code of 1986 (relating to general business credit) 

8 is amended by striking ‘‘and’’ at the end of paragraph 

9 (29), by striking the period at the end of paragraph (30) 

10 and inserting ‘‘, and’’, and by adding at the end the fol11 lowing new paragraph: 

12 ‘‘(31) the natural gas production credit deter13 mined under section 45N(a).’’. 

14 (c) CONFORMING AMENDMENT.—The table of sec15 tions for subpart D of part IV of subchapter A of chapter 

16 1 of the Internal Revenue Code of 1986 is amended by 

17 inserting after the item relating to section 45M the fol18 lowing new item: 

‘‘Sec. 45N. Credit for production of natural gas.’’. 

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

20 this section shall apply to natural gas produced after De21 cember 31, 2006, in taxable years ending after such date. 


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1 SEC. 508. EXTENSION AND MODIFICATION OF CREDIT FOR 

2 RESIDENTIAL ENERGY EFFICIENT PROP3 ERTY. 

4 (a) EXTENSION.—Section 25D of the Internal Rev5 enue Code of 1986 (relating to termination) is amended 

6 by striking ‘‘2007’’ and inserting ‘‘2015’’. 

7 (b) MODIFICATION OF MAXIMUM CREDIT.—Para8 graph (1) of section 25D(b) of the Internal Revenue Code 

9 of 1986 (relating to limitations) is amended to read as 

10 follows: 

11 ‘‘(1) MAXIMUM CREDIT.—The credit allowed 

12 under subsection (a) for any taxable year shall not 

13 exceed— 

14 ‘‘(A) $1,000 with respect to each half kilo15 watt of capacity of qualified photovoltaic prop16 erty for which qualified photovoltaic property 

17 expenditures are made, 

18 ‘‘(B) $2,000 with respect to any qualified 

19 solar water heating property expenditures, and 

20 ‘‘(C) $500 with respect to each half kilo21 watt of capacity of qualified fuel cell property 

22 (as defined in section 48(c)(1)) for which quali23 fied fuel cell property expenditures are made.’’. 

24 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN25 IMUM TAX.— 


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1 (1) IN GENERAL.—Section 25D(b) of the Inter2 nal Revenue Code of 1986 (as amended by sub3 section (b)) is amended by adding at the end the fol4 lowing new paragraph: 

5 ‘‘(3) CREDIT ALLOWED AGAINST ALTERNATIVE

6 MINIMUM TAX.—The credit allowed under subsection 

7 (a) for the taxable year shall not exceed the excess 

8 of— 

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

10 (as defined in section 26(b)) plus the tax im11 posed by section 55, over 

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

13 under subpart A of part IV of subchapter A 

14 and section 27 for the taxable year.’’. 

15 (2) CONFORMING AMENDMENT.—Subsection (c) 

16 of section 25D of such Code is amended to read as 

17 follows: 

18 ‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the 

19 credit allowable under subsection (a) for any taxable year 

20 exceeds the limitation imposed by subsection (b)(3) for 

21 such taxable year, such excess shall be carried to the suc22 ceeding taxable year and added to the credit allowable 

23 under subsection (a) for such succeeding taxable year.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2006. 

4 TITLE VI—BOUTIQUE FUEL 

5 REDUCTIONS 

6 SEC. 601. BOUTIQUE FUEL REDUCTIONS. 

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

8 7545(c)(4)(C)) (as amended by section 1541 of the En9 ergy Policy Act of 2005 (Public Law 109–58; 119 Stat. 

10 1106)) is amended— 

11 (1) by redesignating the second clause (v) as 

12 clause (vi); and 

13 (2) in clause (vi) (as redesignated by paragraph 

14 (1)), by striking subclauses (III) and (IV) and in15 serting the following: 

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

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

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

19 a State implementation plan is identical to a Federal fuel 

20 formulation implemented by the Administrator and shall 

21 reduce the total number of fuels permitted to be included 

22 in a State implementation plan or revision on the list pub23 lished under subclause (II) accordingly. 

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

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1 specting any new fuel under this paragraph in a State im2 plementation plan or revision to a State implementation 

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

4 published under subclause (II).’’. 

Æ 


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