I 

111TH CONGRESS 

1ST SESSION H. R. 2828 

To provide the United States with a comprehensive energy package to place 

Americans on a path to a secure economic future through increased 

energy innovation, conservation, and production. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 11, 2009 

Mr. BISHOP of Utah (for himself, Mr. AKIN, Mr. ALEXANDER, Mrs. 

BACHMANN, Mr. BONNER, Mr. BOOZMAN, Mr. BOUSTANY, Mr. BRADY of 

Texas, Mr. BROUN of Georgia, Mr. BROWN of South Carolina, Mr. BURTON of Indiana, Mr. CARTER, Mr. CASSIDY, Mr. CHAFFETZ, Mr. 

COFFMAN of Colorado, Mr. CONAWAY, Mr. CULBERSON, Ms. FALLIN, Mr. 

FLEMING, Ms. FOXX, Mr. FRANKS of Arizona, Mr. GALLEGLY, Mr. 

GINGREY of Georgia, Mr. GOODLATTE, Mr. HARPER, Mr. HELLER, Mr. 

HENSARLING, Mr. HERGER, Mr. HOEKSTRA, Mr. HUNTER, Ms. JENKINS, Mr. SAM JOHNSON of Texas, Mr. JORDAN of Ohio, Mr. LAMBORN, 

Mr. LATTA, Mr. LEE of New York, Mr. LINDER, Mr. LUCAS, Mrs. 

LUMMIS, Mr. MANZULLO, Mr. MARCHANT, Mr. MCCAUL, Mr. 

MCCOTTER, Mr. MCHENRY, Mr. MCKEON, Mrs. MYRICK, Mr. 

NEUGEBAUER, Mr. PENCE, Mr. PITTS, Mr. POE of Texas, Mr. PRICE of 

Georgia, Mr. RADANOVICH, Mr. REHBERG, Mr. RYAN of Wisconsin, Mr. 

SCALISE, Mr. SESSIONS, Mr. SIMPSON, Mr. SMITH of Texas, Mr. 

SOUDER, Mr. SULLIVAN, Mr. THOMPSON of Pennsylvania, Mr. THORNBERRY, Mr. WAMP, Mr. WESTMORELAND, and Mr. YOUNG of Alaska) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committees on Natural Resources, Energy and Commerce, Science and Technology, Rules, and Oversight and 

Government Reform, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To provide the United States with a comprehensive energy 


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package to place Americans on a path to a secure economic future through increased energy innovation, conservation, and production. 

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 ‘‘American Energy Innovation Act’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—INNOVATION 

Subtitle A—Energy Independence 

Sec. 1001. Sense of Congress. 

Subtitle B—Tax Exempt Financing for Qualified Renewable Energy Facilities 

Sec. 1101. Special depreciation allowance for cellulosic biomass ethanol plant 

property. 

Sec. 1102. Coal-to-liquid facilities. 

Sec. 1103. Dedicated ethanol pipelines treated as 15-year property. 

Sec. 1104. Credit for pollution abatement equipment. 

Sec. 1105. Modifications relating to clean renewable energy bonds. 

Sec. 1106. Extension of renewable energy production tax credit. 

Subtitle C—Repeal of Federal Purchasing Requirement 

Sec. 1201. Repeal of Federal purchasing requirement. 

Subtitle D—Renewable Technologies 

Sec. 1301. Pilot project for developing solar energy on Federal lands. 

Sec. 1302. Three-year depreciation for solar and fuel cell property. 

Sec. 1303. Extension of credit for electricity produced from wind and biomass. 

Sec. 1304. Nuclear, hydropower, and biomass defined as renewable. 

Sec. 1305. Permanent extension of the credit for nonbusiness energy property 

and the credit for gas produced from biomass and for synthetic 

fuels produced from coal. 

Sec. 1306. Algae-based fuels parity. 

Subtitle E—Rewarding Innovation in Technology 

Sec. 1401. Increase in Alternative Simplified Research Credit. 

Sec. 1402. Research and Experimentation Credit permanent. 


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Sec. 1403. Alternative Fuel Vehicle Innovation Prize. 

Subtitle F—Improve National Grid Efficiency 

Sec. 1501. Income and gains from electricity transmission systems treated as 

qualifying income for publicly traded partnerships. 

Sec. 1502. Five-year applicable recovery period for depreciation of qualified 

smart electric meters. 

Subtitle G—Regulatory Burdens 

Sec. 1601. Greenhouse gas regulation under Clean Air Act. 

Sec. 1602. NEPA judicial review. 

Sec. 1603. Repeal of 2007 amendments to renewable fuel standard. 

Sec. 1604. Repeal of requirement to consult regarding impacts on global warming and polar bear population. 

Sec. 1605. Light bulb choice. 

Sec. 1606. Repeal of limitation of deduction for income attributable to domestic 

production of oil, gas, or primary products thereof. 

Sec. 1607. Hydraulic fracturing. 

Subtitle H—Judicial Review Regarding Energy Projects 

PART 1—JUDICIAL REVIEW REGARDING ENERGY PROJECTS

Sec. 1701. Exclusive jurisdiction over causes and claims relating to covered energy projects. 

Sec. 1702. Time for filing complaint. 

Sec. 1703. District Court for the District of Columbia deadline. 

Sec. 1704. Ability to seek appellate review. 

Sec. 1705. Deadline for appeal to the Supreme Court. 

Sec. 1706. Covered energy project defined. 

Sec. 1707. Limitation on application. 

PART 2—PERMITTING REFORM

Sec. 1711. Purposes. 

Sec. 1712. Federal Coordinator. 

Sec. 1713. Regional Offices and Regional Permit Coordinators. 

Sec. 1714. Reviews and actions of Federal agencies. 

Sec. 1715. State coordination. 

Sec. 1716. Savings provision. 

Sec. 1717. Administrative and Judicial Review. 

Sec. 1718. Amendments to publication process. 

Sec. 1719. Alaska Offshore Continental Shelf Coordination Office. 

Subtitle I—Innovation in Carbon Capture and Clean Coal Technology 

Sec. 1801. Coal-to-liquid fuel loan guarantee program. 

Sec. 1802. Coal-to-liquid facilities loan program. 

Sec. 1803. Allows for 7-year depreciation for power-plants that install clean 

coal technology or retro-fit plants for carbon sequestration 

technology. 

Sec. 1804. Extension of 50 cent per gallon alternative fuels excise tax credit. 

Sec. 1805. Provides a 20 percent investment tax credit capped at $200 million 

total per CTL plant placed in service before 2016. 

Sec. 1806. Reduces recovery period for certain energy production and distribution facilities. 


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Sec. 1807. DOE clean coal technology loan guarantees and direct loans. 

Subtitle J—Natural Gas 

Sec. 1901. Natural gas vehicle research, development, and demonstration 

projects. 

Sec. 1902. Modification of alternative fuel credit. 

Sec. 1903. Extension and modification of alternative fuel vehicle credit. 

Sec. 1904. Allowance of vehicle and infrastructure credits against regular and 

minimum tax and transferability of credits. 

Sec. 1905. Credit for producing vehicles fueled by natural gas or liquified natural gas. 

TITLE II—CONSERVATION 

Subtitle A—Conservation 

Sec. 2001. Permanent extension of the credit for nonbusiness energy property, 

the credit for gas produced from biomass and for synthetic 

fuels produced from coal, and the credit for energy efficient appliances. 

Sec. 2002. Extension and clarification of new energy efficient home credit. 

Sec. 2003. Extension and modification of deduction for energy efficient commercial buildings. 

Sec. 2004. Deduction for energy efficient low-rise buildings. 

Subtitle B—Clean Coal Alternative Transition 

Sec. 2101. Carbon dioxide storage capacity assessment. 

Sec. 2102. Efficiency audit and quantification. 

Subtitle C—Natural Gas Transition 

Sec. 2201. Extension of alternative vehicle credit purchase of natural gas powered vehicle from 2010 till 2020; increase in amount of credit 

for cars. 

Sec. 2202. Extension of credit of 50 percent of the auto conversion cost to a 

natural gas powered automobile from gasoline or diesel powered engine and the CNG home filling station cost. 

Subtitle D—Carbon Capture and Storage Credit 

Sec. 2301. Increase in carbon capture and storage tax credit. 

TITLE III—PRODUCTION 

Subtitle A—Outer Continental Shelf 

Sec. 3001. End moratorium of oil and gas leasing in certain areas of the Gulf 

of Mexico. 

Sec. 3002. Outer Continental Shelf directed lease sales. 

Sec. 3003. Leasing program considered approved. 

Sec. 3004. Outer Continental Shelf lease sales. 

Sec. 3005. Restrictions on leasing of the outer Continental Shelf. 

Sec. 3006. Sharing of OCS receipts with States and local governments. 

Subtitle B—Arctic Coastal Plain 

Sec. 3101. Definitions. 


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Sec. 3102. Leasing program for land within the Coastal Plain. 

Sec. 3103. Lease sales. 

Sec. 3104. Grant of leases by the Secretary. 

Sec. 3105. Lease terms and conditions. 

Sec. 3106. Coastal plain environmental protection. 

Sec. 3107. Expedited judicial review. 

Sec. 3108. Federal and State distribution of revenues. 

Sec. 3109. Rights-of-way across the Coastal Plain. 

Sec. 3110. Conveyance. 

Subtitle C—Nuclear Energy Reforms 

Sec. 3201. Amendments to title XVII of the Energy Policy Act 2005. 

Sec. 3202. Amendments to section 638 of the Energy Policy Act of 2005. 

Sec. 3203. Amendments to section 952(c) of the Energy Policy Act 2005. 

Sec. 3204. Domestic manufacturing base for nuclear components and equipment. 

Sec. 3205. Use of funds for recycling. 

Sec. 3206. Licensing of new nuclear power plants. 

Sec. 3207. Investment tax credit for investments in nuclear power facilties. 

Sec. 3208. National nuclear energy council. 

Sec. 3209. Temporary spent nuclear fuel storage agreements. 

Sec. 3210. Implementation of temporary spent nuclear fuel storage agreements. 

Sec. 3211. Expedited procedures for congressional review of temporary spent 

nuclear fuel storage agreements. 

Sec. 3212. Contracting and nuclear waste fund. 

Sec. 3213. Confidence in availability of waste disposal. 

Sec. 3214. Limitation on use of funds. 

Subtitle D—Expedited Oil, Gas, and Oil Shale Leasing of Federal Lands 

Sec. 3301. Expedited permitting of covered energy projects. 

Sec. 3302. Waiver of laws applicable to covered energy projects. 

Sec. 3303. Permitting for year-round conduct of covered energy projects. 

Subtitle E—Refining Capacity and Efficiency 

Sec. 3401. Refinery revitalization repeal. 

Sec. 3402. Reduction in number of boutique fuels. 

Sec. 3403. Refinery permitting process. 

Sec. 3404. Existing refinery permit application deadline. 

Sec. 3405. Removal of additional fee for new applications for permits to drill. 

Subtitle F—Alternative Sources of Fuel 

Sec. 3501. Year extension of election to expense certain refineries. 

Sec. 3502. Opening of lands to oil shale leasing. 

Sec. 3503. Oil shale and tar sands amendments. 

Sec. 3504. Tax credit for carbon dioxide captured from industrial sources and 

used in enhanced oil and natural gas recovery. 

Subtitle G—Domestic Energy Impact Statements 

Sec. 3601. Committee reports in House of Representatives required to include 

domestic energy impact statements. 

Sec. 3602. Domestic energy impact statements. 

Subtitle H—Deficit Reduction 


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Sec. 3701. Deficit Reduction Trust Fund. 

TITLE IV—JOB CREATION 

Sec. 4001. Sense of Congress. 

1 TITLE I—INNOVATION 

2 Subtitle A—Energy Independence 

3 SEC. 1001. SENSE OF CONGRESS. 

4 It is the sense of Congress that the fastest way to 

5 reach energy independence and effectively address climate 

6 change is through innovation, conservation, and respon7 sible production. Imposing a carbon tax or artificial regu8 latory mandates which promise no reduction in global car9 bon emissions will lead to the loss of millions of jobs for 

10 Americans. Congress must rely on the most sound and 

11 complete scientific evidence in order to tackle these chal12 lenges. 

13 Subtitle B—Tax Exempt Financing 

14 for Qualified Renewable Energy 

15 Facilities 

16 SEC. 1101. SPECIAL DEPRECIATION ALLOWANCE FOR CEL17 LULOSIC BIOMASS ETHANOL PLANT PROP18 ERTY. 

19 (a) IN GENERAL.—Section 168 of the Internal Rev20 enue Code of 1986 (relating to accelerated cost recovery 

21 system) is amended by adding at the end the following: 

22 ‘‘(o) SPECIAL ALLOWANCE FOR CELLULOSIC BIO23 MASS ETHANOL PLANT PROPERTY.— 


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

2 any qualified cellulosic biomass ethanol plant prop3 erty— 

4 ‘‘(A) the depreciation deduction provided 

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

6 such property is placed in service shall include 

7 an allowance equal to 50 percent of the ad8 justed basis of such property, and 

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

10 shall be reduced by the amount of such deduc11 tion before computing the amount otherwise al12 lowable as a depreciation deduction under this 

13 chapter for such taxable year and any subse14 quent taxable year. 

15 ‘‘(2) QUALIFIED CELLULOSIC BIOMASS ETH16 ANOL PLANT PROPERTY.— 

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

18 cellulosic biomass ethanol plant property’ means 

19 property of a character subject to the allowance 

20 for depreciation— 

21 ‘‘(i) which is used in the United 

22 States solely to produce cellulosic biomass 

23 ethanol, 


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

3 the enactment of this subsection, 

4 ‘‘(iii) which has a nameplate capacity 

5 of 100,000,000 gallons per year of cellu6 losic biomass ethanol, 

7 ‘‘(iv) which is acquired by the tax8 payer by purchase (as defined in section 

9 179(d)) after the date of the enactment of 

10 this subsection, but only if no written bind11 ing contract for the acquisition was in ef12 fect on or before the date of the enactment 

13 of this subsection, and 

14 ‘‘(v) which is placed in service by the 

15 taxpayer before January 1, 2013. 

16 ‘‘(B) EXCEPTIONS.— 

17 ‘‘(i) ALTERNATIVE DEPRECIATION

18 PROPERTY.—Such term shall not include 

19 any property described in section 

20 168(k)(2)(D)(i). 

21 ‘‘(ii) TAX-EXEMPT BOND-FINANCED

22 PROPERTY.—Such term shall not include 

23 any property any portion of which is fi24 nanced with the proceeds of any obligation 


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1 the interest on which is exempt from tax 

2 under section 103. 

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

4 makes an election under this subparagraph 

5 with respect to any class of property for 

6 any taxable year, this subsection shall not 

7 apply to all property in such class placed 

8 in service during such taxable year. 

9 ‘‘(3) CELLULOSIC BIOMASS ETHANOL.—For 

10 purposes of this subsection, the term ‘cellulosic bio11 mass ethanol’— 

12 ‘‘(A) means ethanol derived from any 

13 lignocellulosic or hemicellulosic matter that is 

14 available on a renewable or recurring basis, in15 cluding— 

16 ‘‘(i) dedicated energy crops and trees, 

17 ‘‘(ii) wood and wood residues, 

18 ‘‘(iii) plants, 

19 ‘‘(iv) grasses, 

20 ‘‘(v) agricultural residues, 

21 ‘‘(vi) fibers, 

22 ‘‘(vii) animal wastes and other waste 

23 materials, and 

24 ‘‘(viii) municipal and solid waste, and 


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1 ‘‘(B) includes any ethanol produced in fa2 cilities where animal wastes or other waste ma3 terials are digested or otherwise used to dis4 place 90 percent or more of the fossil fuel nor5 mally used in the production of ethanol. 

6 ‘‘(4) SPECIAL RULES.—For purposes of this 

7 subsection, rules similar to the rules of subpara8 graph (E) of section 168(k)(2) shall apply, except 

9 that such subparagraph shall be applied— 

10 ‘‘(A) by substituting ‘the date of the enact11 ment of subsection (o)’ for ‘December 31, 2007’ 

12 each place it appears therein, 

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

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

15 ‘‘(C) by substituting ‘qualified cellulosic 

16 biomass ethanol plant property’ for ‘qualified 

17 property’ in clause (iv) thereof. 

18 ‘‘(5) ALLOWANCE AGAINST ALTERNATIVE MIN19 IMUM TAX.—For purposes of this subsection, rules 

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

21 apply. 

22 ‘‘(6) RECAPTURE.—For purposes of this sub23 section, rules similar to the rules under section 

24 179(d)(10) shall apply with respect to any qualified 

25 cellulosic biomass ethanol plant property which 


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1 ceases to be qualified cellulosic biomass ethanol 

2 plant property.’’. 

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

4 this section shall apply to property placed in service after 

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

6 ending after such date. 

7 SEC. 1102. COAL-TO-LIQUID FACILITIES. 

8 (a) IN GENERAL.—Section 168 of the Internal Rev9 enue Code of 1986 (relating to accelerated cost recovery 

10 system), as amended by this Act, is amended by adding 

11 at the end the following: 

12 ‘‘(p) SPECIAL ALLOWANCE FOR COAL-TO-LIQUID

13 PLANT PROPERTY.— 

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

15 any qualified coal-to-liquid plant property— 

16 ‘‘(A) the depreciation deduction provided 

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

18 such property is placed in service shall include 

19 an allowance equal to 50 percent of the ad20 justed basis of such property, and 

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

22 shall be reduced by the amount of such deduc23 tion before computing the amount otherwise al24 lowable as a depreciation deduction under this 


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1 chapter for such taxable year and any subse2 quent taxable year. 

3 ‘‘(2) QUALIFIED COAL-TO-LIQUID PLANT PROP4 ERTY.— 

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

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

7 a character subject to the allowance for depre8 ciation— 

9 ‘‘(i) which is part of a commercial10 scale project that converts coal to 1 or 

11 more liquid or gaseous transportation fuel 

12 that demonstrates the capture, and seques13 tration or disposal or use of, the carbon di14 oxide produced in the conversion process, 

15 and that, on the basis of carbon dioxide se16 questration plan prepared by the applicant, 

17 is certified by the Administrator of the En18 vironmental Protection Agency, in con19 sultation with the Secretary of Energy, as 

20 producing fuel with life cycle carbon diox21 ide emissions at or below the average life22 cycle carbon dioxide emissions for the same 

23 type of fuel produced at traditional petro24 leum based facilities with similar annual 

25 capacities, 


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1 ‘‘(ii) which is used in the United 

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

3 ‘‘(iii) the original use of which com4 mences with the taxpayer after the date of 

5 the enactment of this subsection, 

6 ‘‘(iv) which has a nameplate capacity 

7 of 30,000 barrels per day production of 

8 coal-to-liquid fuels, 

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

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

11 after the date of the enactment of this sub12 section, but only if no written binding con13 tract for the acquisition was in effect on or 

14 before the date of the enactment of this 

15 subsection, and 

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

17 taxpayer before January 1, 2013. 

18 ‘‘(B) EXCEPTIONS.— 

19 ‘‘(i) ALTERNATIVE DEPRECIATION

20 PROPERTY.—Such term shall not include 

21 any property described in section 

22 168(k)(2)(D)(i). 

23 ‘‘(ii) TAX-EXEMPT BOND-FINANCED

24 PROPERTY.—Such term shall not include 

25 any property any portion of which is fiVerDate Nov 24 2008 18:41 Jun 13, 2009 Jkt 079200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H2828.IH H2828

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1 nanced with the proceeds of any obligation 

2 the interest on which is exempt from tax 

3 under section 103. 

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

5 makes an election under this subparagraph 

6 with respect to any class of property for 

7 any taxable year, this subsection shall not 

8 apply to all property in such class placed 

9 in service during such taxable year. 

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

11 subsection, rules similar to the rules of subpara12 graph (E) of section 168(k)(2) shall apply, except 

13 that such subparagraph shall be applied— 

14 ‘‘(A) by substituting ‘the date of the enact15 ment of subsection (l)’ for ‘December 31, 2007’ 

16 each place it appears therein, 

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

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

19 ‘‘(C) by substituting ‘qualified coal-to-liq20 uid plant property’ for ‘qualified property’ in 

21 clause (iv) thereof. 

22 ‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MIN23 IMUM TAX.—For purposes of this subsection, rules 

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

25 apply. 


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1 ‘‘(5) RECAPTURE.—For purposes of this sub2 section, rules similar to the rules under section 

3 179(d)(10) shall apply with respect to any qualified 

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

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

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

7 this subsection shall apply to property placed in service 

8 after the date of the enactment of this Act, in taxable 

9 years ending after such date. 

10 SEC. 1103. DEDICATED ETHANOL PIPELINES TREATED AS 

11 15-YEAR PROPERTY. 

12 (a) IN GENERAL.—Section 168(e)(3)(E) of the Inter13 nal Revenue Code of 1986 (defining 15-year property), is 

14 amended by striking ‘‘and’’ at the end of clause (viii), by 

15 striking the period at the end of clause (ix) and by insert16 ing ‘‘, and’’, and by adding at the end the following new 

17 clause: 

18 ‘‘(x) any dedicated ethanol distribu19 tion line the original use of which com20 mences with the taxpayer after August 1, 

21 2007, and which is placed in service before 

22 January 1, 2013.’’. 

23 (b) ALTERNATIVE SYSTEM.—The table contained in 

24 section 168(g)(3)(B) of such Code (relating to special rule 

25 for certain property assigned to classes) is amended by 


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1 inserting after the item relating to subparagraph (E)(ix) 

2 the following new item: 

‘‘(E)(x) ............................................................................................... 35’’. 

3 (c) EFFECTIVE DATE.— 

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

5 this section shall apply to property placed in service 

6 after August 1, 2008. 

7 (2) EXCEPTION.—The amendments made by 

8 this section shall not apply to any property with re9 spect to which the taxpayer or related party has en10 tered into a binding contract for the construction 

11 thereof on or before August 1, 2009, or, in the case 

12 of self-constructed property, has started construction 

13 on or before such date. 

14 SEC. 1104. CREDIT FOR POLLUTION ABATEMENT EQUIP15 MENT. 

16 (a) IN GENERAL.—Subpart D of part IV of sub17 chapter A of chapter 1 of the Internal Revenue Code of 

18 1986 is amended by inserting after section 45Q the fol19 lowing new section: 

20 ‘‘SEC. 45R. CREDIT FOR POLLUTION ABATEMENT EQUIP21 MENT. 

22 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

23 the pollution abatement equipment credit for any taxable 

24 year is an amount equal to 30 percent of the costs of any 


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1 qualified pollution abatement equipment property placed 

2 in service by the taxpayer during the taxable year. 

3 ‘‘(b) LIMITATION.—The credit allowed under sub4 section (a) for any taxable year with respect to any quali5 fied pollution abatement equipment property shall not ex6 ceed— 

7 ‘‘(1) $50,000,000 in the case of a property of 

8 a character subject an allowance for depreciation 

9 provided in section 167, and 

10 ‘‘(2) $30,000,000 in any other case. 

11 ‘‘(c) QUALIFIED POLLUTION ABATEMENT EQUIP12 MENT PROPERTY.—For purposes of this section, the term 

13 ‘qualified pollution abatement equipment property’ means 

14 pollution abatement equipment— 

15 ‘‘(1) which is part of a unit or facility which ei16 ther— 

17 ‘‘(A) utilizes technologies that meet rel18 evant Federal and State clean air requirements 

19 applicable to the unit or facility, including being 

20 adequately demonstrated for purposes of section 

21 111 of the Clean Air Act (42 U.S.C. 7411), 

22 achievable for purposes of section 169 of that 

23 Act (42 U.S.C. 7479), or achievable in practice 

24 for purposes of section 171 of that Act (42 

25 U.S.C. 7501), or 


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1 ‘‘(B) utilizes equipment or processes that 

2 exceed relevant Federal or State clean air re3 quirements applicable to the unit or facility by 

4 achieving greater efficiency or environmental 

5 performance, 

6 ‘‘(2) which is installed on a voluntary basis and 

7 not as a result of an agreement with a Federal or 

8 State agency or required as a decree from a judicial 

9 decision, and 

10 ‘‘(3) with respect to which an election under 

11 section 169 is not in effect.’’. 

12 (b) CREDIT TREATED AS PART OF GENERAL BUSI13 NESS CREDIT.—Section 38(b) of such Code is amended 

14 by striking ‘‘plus’’ at the end of paragraph (34), by strik15 ing the period at the end of paragraph (35) and inserting 

16 ‘‘, plus’’, and by adding at the end the following new para17 graph: 

18 ‘‘(36) the pollution abatement equipment credit 

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

20 (c) CLERICAL AMENDMENT.—The table of sections 

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

22 of such Code is amended by inserting after the item relat23 ing to section 45Q the following new item: 

‘‘Sec. 45R. Credit for pollution abatement equipment.’’. 

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

25 this section shall apply to expenditures made after the 


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1 date of the enactment of this Act, in taxable years ending 

2 after such date. 

3 SEC. 1105. MODIFICATIONS RELATING TO CLEAN RENEW4 ABLE ENERGY BONDS. 

5 (a) CLEAN RENEWABLE ENERGY BOND.—Paragraph 

6 (1) of section 54(d) of the Internal Revenue Code of 1986 

7 (defining clean renewable energy bond) is amended— 

8 (1) in subparagraph (A), by striking ‘‘pursu9 ant’’ and all that follows through ‘‘subsection 

10 (f)(2)’’, 

11 (2) in subparagraph (B), by striking ‘‘95 per12 cent or more of the proceeds’’ and inserting ‘‘90 per13 cent or more of the net proceeds’’, and 

14 (3) in subparagraph (D), by striking ‘‘sub15 section (h)’’ and inserting ‘‘subsection (g)’’. 

16 (b) QUALIFIED PROJECT.—Subparagraph (A) of sec17 tion 54(d)(2) of such Code (defining qualified project) is 

18 amended to read as follows: 

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

20 project’ means any qualified facility (as deter21 mined under section 45(d) without regard to 

22 paragraphs (8) and (10) thereof and to any 

23 placed in service requirement) owned by a 

24 qualified borrower and also without regard to 

25 the following: 


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1 ‘‘(i) In the case of a qualified facility 

2 described in section 45(d)(9) (regarding in3 cremental hydropower production), any de4 termination of incremental hydropower 

5 production and related calculations shall be 

6 determined by the qualified borrower based 

7 on a methodology that meets Federal En8 ergy Regulatory Commission standards. 

9 ‘‘(ii) In the case of a qualified facility 

10 described in section 45(d)(9) (regarding 

11 hydropower production), the facility need 

12 not be licensed by the Federal Energy 

13 Regulation Commission if the facility, 

14 when constructed, will meet Federal En15 ergy Regulatory Commission licensing re16 quirements and other applicable environ17 mental, licensing, and regulatory require18 ments.’’. 

19 (c) REIMBURSEMENT.—Subparagraph (C) of section 

20 54(d)(2) of such Code (relating to reimbursement) is 

21 amended to read as follows: 

22 ‘‘(C) REIMBURSEMENT.—For purposes of 

23 paragraph (1)(B), proceeds of a clean renew24 able energy bond may be issued to reimburse a 

25 qualified borrower for amounts paid after the 


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1 date of the enactment of this subparagraph in 

2 the same manner as proceeds of State and local 

3 government obligations the interest upon which 

4 is exempt from tax under section 103.’’. 

5 (d) CHANGE IN USE.—Subparagraph (D) of section 

6 54(d)(2) of such Code (relating to treatment of changes 

7 in use) is amended by striking ‘‘or qualified issuer’’. 

8 (e) MAXIMUM TERM.—Paragraph (2) of section 

9 54(e) of such Code (relating to maximum term) is amend10 ed by striking ‘‘without regard to the requirements of sub11 section (1)(6) and’’. 

12 (f) REPEAL OF LIMITATION ON AMOUNT OF BONDS

13 DESIGNATED.—Section 54 of such Code is amended by 

14 striking subsection (f) (relating to repeal of limitation on 

15 amount of bonds designated). 

16 (g) SPECIAL RULES RELATING TO EXPENDI17 TURES.—Subsection (h) of section 54 of such Code (relat18 ing to special rules relating to expenditures) is amended— 

19 (1) in paragraph (1)(A), by striking ‘‘95 per20 cent of the proceeds’’ and inserting ‘‘90 percent of 

21 the net proceeds’’, 

22 (2) in paragraph (1)(B)— 

23 (A) by striking ‘‘10 percent of the pro24 ceeds’’ and inserting ‘‘5 percent of the net pro25 ceeds’’, and 


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1 (B) by striking ‘‘the 6-month period begin2 ning on’’ both places it appears and inserting 

3 ‘‘1 year of’’, 

4 (3) in paragraph (1)(C), by inserting ‘‘net’’ be5 fore ‘‘proceeds’’, and 

6 (4) in paragraph (3), by striking ‘‘95 percent of 

7 the proceeds’’ and inserting ‘‘90 percent of the net 

8 proceeds’’. 

9 (h) REPEAL OF SPECIAL RULES RELATING TO ARBI10 TRAGE.—Section 54 of such Code is amended by striking 

11 subsection (i) (relating to repeal of special rules relating 

12 to arbitrage). 

13 (i) PUBLIC POWER ENTITY.—Subsection (j) of sec14 tion 54 of such Code (defining cooperative electric com15 pany; qualified energy tax credit bond lender; govern16 mental body; qualified borrower) is amended— 

17 (1) by redesignating paragraphs (4) and (5) as 

18 paragraphs (5) and (6), respectively, 

19 (2) by inserting after paragraph (3) the fol20 lowing new paragraph: 

21 ‘‘(4) PUBLIC POWER ENTITY.—The term ‘public 

22 power entity’ means a State utility with a service ob23 ligation, as such terms are defined in section 217 of 

24 the Federal Power Act (as in effect on the date of 

25 enactment of this paragraph).’’, 


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1 (3) in paragraph (5), as so redesignated— 

2 (A) by striking ‘‘or’’ at the end of subpara3 graph (B), 

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

5 subparagraph (C) and inserting ‘‘, or’’, and 

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

7 subparagraph: 

8 ‘‘(D) a public power entity.’’, and 

9 (4) in paragraph (6), as so redesignated— 

10 (A) by striking ‘‘or’’ at the end of subpara11 graph (A), 

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

13 subparagraph (B) and inserting ‘‘, or’’, and 

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

15 subparagraph: 

16 ‘‘(C) a public power entity.’’. 

17 (j) REPEAL OF RATABLE PRINCIPAL AMORTIZATION

18 REQUIREMENT.—Subsection (l) of section 54 of such 

19 Code (relating to other definitions and special rules) is 

20 amended by striking paragraph (5) and redesignating 

21 paragraph (6) as paragraph (5). 

22 (k) NET PROCEEDS.—Subsection (l) of section 54 of 

23 such Code (relating to other definitions and special rules), 

24 as amended by subsection (j), is amended by redesignating 

25 paragraphs (2), (3), (4), and (5) as paragraphs (4), (5), 


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1 (6), and (7), respectively, and by inserting after paragraph 

2 (1) the following new paragraphs: 

3 ‘‘(2) NET PROCEEDS.—The term ‘net proceeds’ 

4 means, with respect to an issue, the proceeds of such 

5 issue reduced by amounts in a reasonably required 

6 reserve or replacement fund. 

7 ‘‘(3) LIMITATION ON AMOUNT IN RESERVE OR

8 REPLACEMENT FUND WHICH MAY BE FINANCED BY

9 ISSUE.—A bond issued as part of an issue shall not 

10 be treated as a clean renewable energy bond if the 

11 amount of the proceeds from the sale of such issue 

12 which is part of any reserve or replacement fund ex13 ceeds 10 percent of the proceeds of the issue (or 

14 such higher amount which the issuer establishes is 

15 necessary to the satisfaction of the Secretary).’’. 

16 (l) OTHER SPECIAL RULES.—Subsection (l) of sec17 tion 54 of such Code (relating to other definitions and spe18 cial rules), as amended by subsections (j) and (k), is 

19 amended by adding at the end the following new para20 graphs: 

21 ‘‘(8) CREDITS MAY BE SEPARATED.—There 

22 may be a separation (including at issuance) of the 

23 ownership of a clean renewable energy bond and the 

24 entitlement to the credit under this section with re25 spect to such bond. In case of any such separation, 


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1 the credit under this section shall be allowed to the 

2 person who on the credit allowance date holds the 

3 instrument evidencing the entitlement to the credit 

4 and not to the holder of the bond. 

5 ‘‘(9) TREATMENT FOR ESTIMATED TAX PUR6 POSES.—Solely for the purposes of sections 6654 

7 and 6655, the credit allowed by this section to a tax8 payer by reason of holding a qualified energy tax 

9 credit bond on a credit allowance date (or the credit 

10 in the case of a separation as provided in paragraph 

11 (8)) shall be treated as if it were a payment of esti12 mated tax made by the taxpayer on such date. 

13 ‘‘(10) CARRYBACK AND CARRYFORWARD OF UN14 USED CREDITS.—If the sum of the credit exceeds 

15 the limitation imposed by subsection (c) for any tax16 able year, any credits may be applied in a manner 

17 similar to the rules set forth in section 39.’’. 

18 (m) TERMINATION.—Subsection (m) of section 54 of 

19 such Code (relating to termination) is amended by striking 

20 ‘‘2008’’ and inserting ‘‘2013’’. 

21 (n) CLERICAL REDESIGNATIONS.—Section 54 of such 

22 Code, as amended by the preceding provisions of this sec23 tion, is amended by redesignating subsections (g), (h), (j), 

24 (k), (l), and (m) as subsections (f), (g), (h), (i), (j), and 

25 (k), respectively. 


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1 (o) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to obligations issued after the date 

3 of the enactment of this Act. 

4 SEC. 1106. EXTENSION OF RENEWABLE ENERGY PRODUC5 TION TAX CREDIT. 

6 (a) IN GENERAL.—Section 45 of the Internal Rev7 enue Code of 1986 is amended— 

8 (1) by striking ‘‘10-year period beginning on 

9 the date the facility was originally placed in service,’’ 

10 in subsection (a)(2)(A)(ii) and inserting ‘‘5-year pe11 riod beginning on the date the facility was originally 

12 placed in service,’’, 

13 (2) by striking ‘‘in subsection (a)(2)(A)(ii).’’ in 

14 subsection (b)(4)(B)(i) and inserting ‘‘beginning on 

15 the date the facility was originally placed in serv16 ice.’’, 

17 (3) by striking ‘‘in subsection (a)(2)(A)(ii).’’ in 

18 subsection (b)(4)(B)(ii) and inserting ‘‘beginning on 

19 the date the facility was originally placed in serv20 ice.’’, and 

21 (4) by striking ‘‘January 1, 2009’’ each place 

22 it appears in subsection (d) and inserting ‘‘January 

23 1, 2020’’. 


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

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

4 Subtitle C—Repeal of Federal 

5 Purchasing Requirement 

6 SEC. 1201. REPEAL OF FEDERAL PURCHASING REQUIRE7 MENT. 

8 Section 526 of the Energy Independence and Security 

9 Act of 2007 is repealed. 

10 Subtitle D—Renewable 

11 Technologies 

12 SEC. 1301. PILOT PROJECT FOR DEVELOPING SOLAR EN13 ERGY ON FEDERAL LANDS. 

14 (a) IN GENERAL.—The Secretary of the Interior shall 

15 carry out in accordance with this section a pilot project 

16 for the leasing of Federal lands for the advancement, de17 velopment, assessment, installation, and operation of com18 mercial photovoltaic and concentrating solar power energy 

19 systems. 

20 (b) IDENTIFICATION OF LANDS FOR LEASING.— 

21 (1) LANDS SELECTION.—For purposes of this 

22 section, the Secretary of the Interior, acting through 

23 the Director of the Bureau of Land Management 

24 and in consultation with the Secretary of Energy, 

25 shall— 


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1 (A) identify lease sites of Federal lands 

2 under the jurisdiction of the Bureau of Land 

3 Management in the States of Arizona, Cali4 fornia, New Mexico, Nevada, and Utah, that 

5 are suitable and feasible for the installation and 

6 operation of photovoltaic and concentrating 

7 solar power energy systems under the pilot 

8 project, subject to valid existing rights; and 

9 (B) incorporate solar energy development 

10 under the pilot project into the relevant agency 

11 land use and resource management plans or 

12 equivalent plans for the lands identified under 

13 subparagraph (A). 

14 (2) MINIMUM AND MAXIMUM ACREAGE OF

15 SITES.—Each individual lease site identified under 

16 paragraph (1)(A) shall be a minimum of 1280 acres 

17 and shall not exceed 12,800 acres. 

18 (3) LANDS RELEASED FOR LEASING.—The Sec19 retary shall release for leasing under the pilot 

20 project lease sites identified under paragraph (1), in 

21 acreages that meet the following annual milestones: 

22 (A) By 2010, 79,012 acres. 

23 (B) By 2011, 316,049 acres. 


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1 (4) LANDS NOT INCLUDED.—The following 

2 Federal lands shall not be included within the pilot 

3 project: 

4 (A) Components of the National Land5 scape Conservation System. 

6 (B) Wilderness and Wilderness Study 

7 Areas. 

8 (C) Wild and Scenic Rivers. 

9 (D) National Scenic and Historic Trails. 

10 (E) Monuments. 

11 (F) Resource Natural Areas. 

12 (c) REPORT.—The Secretary shall report to the Con13 gress by not later than December 31, 2013, regarding the 

14 results of the pilot project and the viability of leasing Bu15 reau of Land Management lands for solar power energy 

16 production. 

17 SEC. 1302. THREE-YEAR DEPRECIATION FOR SOLAR AND 

18 FUEL CELL PROPERTY. 

19 (a) IN GENERAL.—Subparagraph (A) of section 

20 168(e)(3) of the Internal Revenue Code of 1986 (defining 

21 3-year property) is amended by striking ‘‘and’’ at the end 

22 of clause (ii), by striking the period at the end of clause 

23 (iii) and inserting a comma, and by inserting after clause 

24 (iii) the following: 


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1 ‘‘(iv) any property which is described 

2 in clause (i) or (ii) of section 48(a)(3)(A) 

3 (relating to solar), or would be so de4 scribed if the last sentence of such section 

5 did not apply to such clauses, and 

6 ‘‘(v) any property which is described 

7 in paragraph (1) of section 48(c) (defining 

8 qualified fuel cell property).’’. 

9 (b) CONFORMING AMENDMENT.—Section 

10 168(e)(3)(B)(vi)(I) of such Code is amended by inserting 

11 ‘‘(other than (i) or (ii) thereof and so much of clause (iv) 

12 thereof as relates to qualified fuel cell property)’’ after 

13 ‘‘subparagraph (A)’’. 

14 (c) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to property placed in service on 

16 or after December 31, 2009. 

17 SEC. 1303. EXTENSION OF CREDIT FOR ELECTRICITY PRO18 DUCED FROM WIND AND BIOMASS. 

19 (a) WIND.—Paragraph (1) of section 45(d) of the In20 ternal Revenue Code of 1986 is amended by striking ‘‘Jan21 uary 1, 2013’’ and inserting ‘‘January 1, 2018’’. 

22 (b) BIOMASS.—Paragraphs (2) and (3) of section 

23 45(d) of such Code is amended by striking ‘‘January 1, 

24 2014’’ each place it appears and inserting ‘‘January 1, 

25 2019’’. 


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

2 this section shall apply to property placed in service after 

3 the date of the enactment of this Act. 

4 SEC. 1304. NUCLEAR, HYDROPOWER, AND BIOMASS DE5 FINED AS RENEWABLE. 

6 For any public law after the enactment of the Amer7 ican Energy Innovation Act, any requirement that a per8 centage our total electrical supply must come from renew9 able sources, or if a Renewable Energy Portfolio is en10 acted, for purposes of that law, nuclear energy, biomass, 

11 and hydroelectircty shall be defined as renewable. 

12 SEC. 1305. PERMANENT EXTENSION OF THE CREDIT FOR 

13 NONBUSINESS ENERGY PROPERTY AND THE 

14 CREDIT FOR GAS PRODUCED FROM BIOMASS 

15 AND FOR SYNTHETIC FUELS PRODUCED 

16 FROM COAL. 

17 (a) CREDIT FOR NONBUSINESS ENERGY PROPERTY

18 MADE PERMANENT.— 

19 (1) IN GENERAL.—Section 25C of the Internal 

20 Revenue Code of 1986 is amended by striking sub21 section (g). 

22 (2) EFFECTIVE DATE.—The amendment made 

23 by this subsection shall apply to property placed in 

24 service after December 31, 2008. 


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1 (b) CREDIT FOR GAS PRODUCED FROM BIOMASS

2 AND FOR SYNTHETIC FUELS PRODUCED FROM COAL

3 MADE PERMANENT.— 

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

5 45K(f)(1) of such Code is amended to read as fol6 lows: 

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

8 service after December 31, 1992, paragraph (2) 

9 of subsection (e) shall not apply.’’. 

10 (2) EFFECTIVE DATE.—The amendment made 

11 by this subsection shall apply to fuel sold after De12 cember 31, 2008. 

13 SEC. 1306. ALGAE-BASED FUELS PARITY. 

14 (a) WITH ALCOHOL, ETC., USED AS FUEL.—Section 

15 40(b) of the Internal Revenue Code is amended by insert16 ing after paragraph (6) the following: 

17 ‘‘(7) ALGAE-BASED BIOFUEL CREDIT.— 

18 ‘‘(A) IN GENERAL.—For the purpose of 

19 this section, algae-based biofuels shall be treat20 ed in the same manner as cellulosic biofuel. 

21 ‘‘(B) DEFINITIONS.—For purposes of sub22 paragraph (A)— 

23 ‘‘(i) the term ‘algae-based fuel’ means 

24 a liquid fuel derived from the biomass of 


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1 algal organisms that can replace fuel de2 rived from petroleum, and 

3 ‘‘(ii) the term ‘algal organisms’ means 

4 single or multi-cellular organisms which 

5 are inherently aquatic and classified as 

6 non-vascular plants, which include (i) 

7 microalgae, (ii) blue-green algae 

8 (cyanobacteria), and (iii) macroalgae (sea9 weeds).’’. 

10 (b) WITH RENEWABLE DIESEL.—Section 40A of 

11 such Code is amended by inserting after paragraph (4) 

12 the following: 

13 ‘‘(5) ALGAE-BASED BIOFUEL.— 

14 ‘‘(A) IN GENERAL.—Except as provided in 

15 the last 3 sentences of paragraph (3), the term 

16 ‘renewable diesel’ shall include algae-based 

17 biofuels. 

18 ‘‘(B) DEFINITIONS.—For purposes of this 

19 paragraph— 

20 ‘‘(i) the term ‘algae-based fuel’ means 

21 a liquid fuel derived from the biomass of 

22 algal organisms that can replace fuel de23 rived from petroleum, and 

24 ‘‘(ii) the term ‘algal organisms’ means 

25 single or multi-cellular organisms which 


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1 are inherently aquatic and classified as 

2 non-vascular plants, which include (i) 

3 microalgae, (ii) blue-green algae 

4 (cyanobacteria), and (iii) macroalgae (sea5 weeds).’’. 

6 (c) BONUS DEPRECIATION FOR ALGAE-BASED FUEL

7 EQUIPMENT.—Subsection (l) of section 168 of such Code 

8 is amended by inserting after paragraph (8) the following: 

9 ‘‘(9) ALGAE-BASED FUEL PLANT PROPERTY.— 

10 ‘‘(A) IN GENERAL.—For the purpose of 

11 this section, qualified algae-based fuel plant 

12 property equipment shall be treated in the same 

13 manner as qualified cellulosic biofuel plant 

14 property. 

15 ‘‘(B) DEFINITIONS.—For purposes of sub16 paragraph (A)— 

17 ‘‘(i) QUALIFIED ALGAE-BASED FUEL

18 PLANT PROPERTY.—The term ‘qualified 

19 algae-based fuel plant property’ means 

20 property of a character subject to the al21 lowance for depreciation— 

22 ‘‘(I) which is used in the United 

23 States solely to produce algae-based 

24 fuel, 


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1 ‘‘(II) the original use of which 

2 commences with the taxpayer after 

3 the date of the enactment of this 

4 paragraph, 

5 ‘‘(III) which is acquired by the 

6 taxpayer by purchase after the date of 

7 the enactment of this paragraph, but 

8 only if no written binding contract for 

9 the acquisition was in effect on or be10 fore the date of the enactment of this 

11 paragraph, and 

12 ‘‘(IV) which is placed in service 

13 by the taxpayer before January 1, 

14 2017. 

15 ‘‘(ii) ALGAE-BASED FUEL.—The term 

16 ‘algae-based fuel’ means a liquid fuel de17 rived from the biomass of algal organisms 

18 that can replace fuel derived from petro19 leum. 

20 ‘‘(iii) ALGAL ORGANISMS.—The term 

21 ‘algal organisms’ means single or multi-cel22 lular organisms which are inherently 

23 aquatic and classified as non-vascular 

24 plants, which include (i) microalgae, (ii) 


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1 blue-green algae (cyanobacteria), and (iii) 

2 macroalgae (seaweeds).’’. 

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 Subtitle E—Rewarding Innovation 

7 in Technology 

8 SEC. 1401. INCREASE IN ALTERNATIVE SIMPLIFIED RE9 SEARCH CREDIT. 

10 Subparagraph (A) of section 41(c)(5) of the Internal 

11 Revenue Code of 1986 (relating to election of alternative 

12 simplified credit) is amended by striking ‘‘14 percent (12 

13 percent in the case of taxable years ending before January 

14 1, 2009)’’ and inserting ‘‘20 percent’’. 

15 SEC. 1402. RESEARCH AND EXPERIMENTATION CREDIT 

16 PERMANENT. 

17 (a) IN GENERAL.—Section 41 of the Internal Rev18 enue Code of 1986 is amended by striking subsection (h). 

19 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

20 section 45C(b) of such Code is amended by striking sub21 paragraph (D). 

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

23 this section shall apply to amounts paid or incurred after 

24 December 31, 2009. 


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1 SEC. 1403. ALTERNATIVE FUEL VEHICLE INNOVATION 

2 PRIZE. 

3 (a) IN GENERAL.—The Secretary shall carry out a 

4 program to be referred to as the ‘‘Alternative Fuel Vehicle 

5 Innovation Prize’’ to competitively award cash prizes to 

6 eligible contestants in conformity with this Act to advance 

7 the research, development, demonstration, and commercial 

8 application of alterative fuel vehicles. 

9 (b) ADVERTISING AND SOLICITATION OF COMPETI10 TORS.— 

11 (1) ADVERTISING.—The Secretary shall widely 

12 advertise prize competitions to encourage broad par13 ticipation in the program carried out under sub14 section (a). 

15 (2) ANNOUNCEMENT THROUGH FEDERAL REG16 ISTER NOTICE.—The Secretary shall announce each 

17 prize competition by publishing a notice in the Fed18 eral Register. This notice shall include the subject of 

19 the competition, the duration of the competition, the 

20 eligibility requirements for participation in the com21 petition, the process for participants to register for 

22 the competition, the amount of the prize, and the 

23 criteria for awarding the prize. 

24 (c) PRIZES; SELECTION CRITERIA.— 

25 (1) GRAND PRIZE.— 


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1 (A) IN GENERAL.—There shall be one 

2 grand prize of $10,000,000,000. 

3 (B) PROTOTYPE REQUIREMENT.—In order 

4 to be eligible to receive the grand prize under 

5 this section, an eligible contestant must produce 

6 a prototype of an alternative fuel vehicle. 

7 (C) SELECTION CRITERIA.—The Secretary 

8 shall develop, in consultation with the Secretary 

9 of Transportation and the Director of the Na10 tional Science Foundation, criteria on which to 

11 select the grand prize winner. Such criteria 

12 shall include, at a minimum, the following fac13 tors: 

14 (i) The extent to which the prototype 

15 will reduce the reliance of the United 

16 States on foreign sources of energy. 

17 (ii) The reduction in fuel costs of op18 erating the prototype compared to a simi19 lar non-alternative fuel vehicle. 

20 (iii) The extent to which the prototype 

21 meets or exceeds Federal safety standards. 

22 (iv) Whether the prototype has a fuel 

23 economy of at least 100 miles per gallon. 


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1 (v) The extent to which the prototype 

2 limits hazardous emissions compared to a 

3 comparable non-alternative fuel vehicle. 

4 (vi) The possibility of wide commercial 

5 application, including the production of ve6 hicles that are not hindered by lack of re7 fueling infrastructure. 

8 (vii) The estimated cost of the proto9 type, if it were mass-produced, and wheth10 er such cost is equivalent to the cost of a 

11 comparable non-alternative fuel vehicle. 

12 (viii) Whether the prototype could be 

13 mass-produced in the United States. 

14 (D) DEADLINE FOR AWARDING GRAND

15 PRIZE.—The Secretary shall set a deadline of 

16 not later than 5 years after the date of the en17 actment of this Act for awarding the grand 

18 prize. 

19 (2) ADDITIONAL PRIZES.— 

20 (A) IN GENERAL.—The Secretary may 

21 choose to award no more than 5 additional 

22 prizes, with such additional prizes having a 

23 total combined value of no more than 

24 $100,000,000. 


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1 (B) SELECTION CRITERIA.—Winners of 

2 additional prizes shall be selected based on their 

3 demonstration of— 

4 (i) Substantial advancements in spe5 cific areas of alternative vehicle tech6 nologies, components, or systems; or 

7 (ii) transformational changes in tech8 nology. 

9 (C) DEADLINE FOR AWARDING ADDI10 TIONAL PRIZES.—The Secretary shall set a 

11 deadline of not later than 5 years after the date 

12 of the enactment of this Act for awarding any 

13 additional prizes. 

14 (d) JUDGING.— 

15 (1) IN GENERAL.—The Secretary shall appoint 

16 5 individuals to serve as judges for the purpose of 

17 selecting the prize winners under this section. The 

18 judges shall select the grand prize winner based on 

19 the criteria developed under subsection (c)(1)(C) and 

20 shall select any additional prize winners based on 

21 the criteria described under subsection (c)(2)(B). 

22 (2) JUDGE REQUIREMENTS.—In order to be ap23 pointed as a judge, an individual may not have a fi24 nancial interest in any contestant and may not be an 


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1 employee, officer, director, agent, or family member 

2 of any contestant. 

3 (e) REPORT.—Not later than 60 days after all prizes 

4 are awarded under this section, the Secretary shall trans5 mit a report to the Congress containing— 

6 (1) a list of award recipients; 

7 (2) a description of the technologies developed 

8 by the award recipients; and 

9 (3) a description of the actions being taken to10 ward the commercial application of the technologies 

11 developed by the award recipients. 

12 (f) INTELLECTUAL PROPERTY.—The Federal Gov13 ernment shall not, by virtue of offering or awarding a 

14 prize under this section, be entitled to any intellectual 

15 property rights derived as a consequence of, or in direct 

16 relation to, the participation by a participant in a competi17 tion authorized by this section. This subsection shall not 

18 be construed to prevent the Federal Government from ne19 gotiating a license for the use of intellectual property de20 veloped for a prize competition under this section. The 

21 Federal Government may seek assurances that tech22 nologies for which prizes are awarded under this section 

23 are offered for commercialization in the event an award 

24 recipient does not take, or is not expected to take within 


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1 a reasonable time, effective steps to achieve practical ap2 plication of the technology. 

3 (g) WAIVER OF LIABILITY.—The Secretary may re4 quire participants to waive claims against the Federal 

5 Government for any injury, death, damage, or loss of 

6 property, revenue, or profits arising from the participants’ 

7 participation in a competition under this section. The Sec8 retary shall give notice of any waiver required under this 

9 section in the notice required by subsection (b)(2). 

10 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized such sums as may be necessary to carry 

12 out the provisions of this section. 

13 Subtitle F—Improve National Grid 

14 Efficiency 

15 SEC. 1501. INCOME AND GAINS FROM ELECTRICITY TRANS16 MISSION SYSTEMS TREATED AS QUALIFYING 

17 INCOME FOR PUBLICLY TRADED PARTNER18 SHIPS. 

19 (a) IN GENERAL.—Section 7704(d)(1) of the Inter20 nal Revenue Code of 1986 (defining qualifying income) is 

21 amended by redesignating subparagraphs (F) and (G) as 

22 subparagraphs (G) and (H), respectively, and by inserting 

23 after subparagraph (E) the following new subparagraph: 

24 ‘‘(F) income and gains from the trans25 mission of electricity at 69 or more kilovolts 


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1 through any property the original use of which 

2 commences after December 31, 2006,’’. 

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

4 this section shall take effect on the date of the enactment 

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

6 SEC. 1502. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR 

7 DEPRECIATION OF QUALIFIED SMART ELEC8 TRIC METERS. 

9 (a) IN GENERAL.—Section 168(e)(3)(B) of the Inter10 nal Revenue Code of 1986 (defining 5-year property) is 

11 amended by striking ‘‘and’’ at the end of clause (vi), by 

12 striking the period at the end of clause (vii) and inserting 

13 ‘‘, and’’, and by inserting after clause (vii) the following 

14 new clause: 

15 ‘‘(viii) any qualified smart electric 

16 meter.’’. 

17 (b) CONFORMING AMENDMENT.—Section 

18 168(e)(3)(D) of such Code is amended by striking clause 

19 (iii) and redesignating clause (iv) as clause (iii). 

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

21 this section shall apply to property placed in service in 

22 taxable years ending after the date of the enactment of 

23 this Act. 


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1 Subtitle G—Regulatory Burdens 

2 SEC. 1601. GREENHOUSE GAS REGULATION UNDER CLEAN 

3 AIR ACT. 

4 (a) DEFINITION OF AIR POLLUTANT.—Section 

5 302(g) of the Clean Air Act (42 U.S.C. 7602(g)) is 

6 amended by adding the following at the end thereof: ‘‘The 

7 term ‘air pollutant’ shall not include carbon dioxide, water 

8 vapor, methane, nitrous oxide, hydrofluorocarbons, 

9 perfluorocarbons, or sulfur hexafluoride.’’. 

10 (b) CLIMATE CHANGE NOT REGULATED BY CLEAN

11 AIR ACT.—Nothing in the Clean Air Act shall be treated 

12 as authorizing or requiring the regulation of climate 

13 change or global warming. 

14 SEC. 1602. NEPA JUDICIAL REVIEW. 

15 Title I of the National Environmental Policy Act of 

16 1969 (42 U.S.C. 4331 et seq.) is amended by adding at 

17 the end the following new section: 

18 ‘‘SEC. 106. JUDICIAL REVIEW. 

19 ‘‘(a) IN GENERAL.—Review of a Federal agency’s 

20 compliance with section 102 of the Act may be filed in 

21 the circuit in which the petitioner resides or transacts 

22 business which is directly affected by the action. Any such 

23 application for review shall be made within ninety days 

24 from the date of promulgation of the Federal agency’s de25 cision. 


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1 ‘‘(b) PROCEDURES FOR REVIEW.— 

2 ‘‘(1) LIMITATION.—In any judicial action under 

3 this Act, judicial review of any issues concerning a 

4 Federal agency’s compliance with section 102 shall 

5 be limited to the administrative record. Otherwise 

6 applicable principles of administrative law shall gov7 ern whether any supplemental materials may be con8 sidered by the court. 

9 ‘‘(2) STANDARD.—In considering objections 

10 raised in any judicial action under this Act, the 

11 court shall uphold the Federal agency’s decision, 

12 whether in is the first instance, a revocation, reces13 sion or other action, unless the objecting party can 

14 demonstrate, on the administrative record, that the 

15 decision was arbitrary and capricious or otherwise 

16 not in accordance with law. 

17 ‘‘(3) REMEDY.—If the court finds that the se18 lection of the response action was arbitrary and ca19 pricious or otherwise not in accordance with law, the 

20 court shall award such relief as the court deems ap21 propriate. 

22 ‘‘(4) PROCEDURAL ERRORS.—In reviewing al23 leged procedural errors, the court may disallow costs 

24 or damages only if the errors were so serious and re25 lated to matters of such central relevance to the acVerDate Nov 24 2008 18:41 Jun 13, 2009 Jkt 079200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H2828.IH H2828

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1 tion that the action would have been significantly 

2 changed had such errors not been made. 

3 ‘‘(c) NOTICE OF ACTIONS.—Whenever any action is 

4 brought under this Act in a court of the United States 

5 by a plaintiff other than the United States, the plaintiff 

6 shall provide a copy of the complaint to the Attorney Gen7 eral of the United States and to the Secretary or Adminis8 trator of the affected Federal agency. 

9 ‘‘(d) INTERVENTION.—In any action commenced 

10 under this Act, any person may intervene as a matter of 

11 right when such person claims an interest relating to the 

12 subject of the action and is so situated that the disposition 

13 of the action may, as a practical matter, impair or impede 

14 the person’s ability to protect that interest, unless the Sec15 retary or Administrator shows that the person’s interest 

16 is adequately represented by existing parties.’’. 

17 SEC. 1603. REPEAL OF 2007 AMENDMENTS TO RENEWABLE 

18 FUEL STANDARD. 

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

20 7545(o)) is amended to read as provided in section 

21 1501(a)(2) of the Energy Policy Act of 2005 (Public Law 

22 109–58; 119 Stat. 594, 1067). 


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1 SEC. 1604. REPEAL OF REQUIREMENT TO CONSULT RE2 GARDING IMPACTS ON GLOBAL WARMING 

3 AND POLAR BEAR POPULATION. 

4 Section 429 of the Department of the Interior, Envi5 ronment, and Related Agencies Appropriations Act, 2009 

6 (division E of Public Law 111–8) is repealed. 

7 SEC. 1605. LIGHT BULB CHOICE. 

8 (b) IN GENERAL.—Effective 6 months after the date 

9 of enactment of this Act, sections 321 and 322, and the 

10 items in the table of contents relating thereto, of the En11 ergy Independence and Security Act of 2007 are repealed. 

12 (c) REVERSION.—When the repeal occurs under 

13 paragraph (1), the amendments made by sections 321 and 

14 322 of the Energy Independence and Security Act of 2007 

15 are hereby repealed, and the laws amended thereby shall 

16 read as if those amendments had not been enacted. 

17 SEC. 1606. REPEAL OF LIMITATION OF DEDUCTION FOR IN18 COME ATTRIBUTABLE TO DOMESTIC PRO19 DUCTION OF OIL, GAS, OR PRIMARY PROD20 UCTS THEREOF. 

21 (a) IN GENERAL.—Subsection (d) of section 199 of 

22 the Internal Revenue Code of 1986 (as amended by sec23 tion 401 of the Energy Improvement and Extension Act 

24 of 2008) is amended by striking paragraph (9) and redes25 ignating paragraph (10) as paragraph (9). 


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1 (b) CONFORMING AMENDMENT.—Section 199(d)(2) 

2 of such Code is amended by striking ‘‘subsections 

3 (a)(1)(B) and (d)(9)(A)(iii)’’ and inserting ‘‘subsection 

4 (a)(1)(B)’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2008. 

8 SEC. 1607. HYDRAULIC FRACTURING. 

9 It is the sense of Congress that— 

10 (1) the Safe Drinking Water Act was never in11 tended to regulate natural gas and oil well construc12 tion and stimulation; 

13 (2) this responsibility has been effectively man14 aged by the States reflecting their unique needs; and 

15 (3) the modification of the Safe Drinking Water 

16 Act in the Energy Policy Act of 2005 to clarify that 

17 it was not intended to regulate the use of hydraulic 

18 fracturing was an appropriate and necessary action 

19 that should be retained. 


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1 Subtitle H—Judicial Review 

2 Regarding Energy Projects 

3 PART 1—JUDICIAL REVIEW REGARDING ENERGY 

4 PROJECTS 

5 SEC. 1701. EXCLUSIVE JURISDICTION OVER CAUSES AND 

6 CLAIMS RELATING TO COVERED ENERGY 

7 PROJECTS. 

8 Notwithstanding any other provision of law, the 

9 United States District Court for the District of Columbia 

10 shall have exclusive jurisdiction to hear all causes and 

11 claims under this title or any other provision of law that 

12 arise from any covered energy project. 

13 SEC. 1702. TIME FOR FILING COMPLAINT. 

14 All causes and claims referred to in section 1701 

15 must be filed not later than the end of the 60-day period 

16 beginning on the date of the action or decision by a Fed17 eral official that constitutes the covered energy project 

18 concerned. Any cause or claim not filed within that time 

19 period shall be barred. 

20 SEC. 1703. DISTRICT COURT FOR THE DISTRICT OF COLUM21 BIA DEADLINE. 

22 (a) IN GENERAL.—All proceedings that are subject 

23 to section 1701— 


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1 (1) shall be resolved as expeditiously as pos2 sible, and in any event not more than 180 days after 

3 such cause or claim is filed; and 

4 (2) shall take precedence over all other pending 

5 matters before the district court. 

6 (b) FAILURE TO COMPLY WITH DEADLINE.—If an 

7 interlocutory or final judgment, decree, or order has not 

8 been issued by the district court by the deadline described 

9 under this section, the cause or claim shall be dismissed 

10 with prejudice and all rights relating to such cause or 

11 claim shall be terminated. 

12 SEC. 1704. ABILITY TO SEEK APPELLATE REVIEW. 

13 An interlocutory or final judgment, decree, or order 

14 of the district court in a proceeding that is subject to sec15 tion 1701 may be reviewed by no other court except the 

16 Supreme Court. 

17 SEC. 1705. DEADLINE FOR APPEAL TO THE SUPREME 

18 COURT. 

19 If a writ of certiorari has been granted by the Su20 preme Court pursuant to section 1704, then— 

21 (1) the interlocutory or final judgment, decree, 

22 or order of the district court shall be resolved as ex23 peditiously as possible and in any event not more 

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1 ment, decree, order of the district court is issued; 

2 and 

3 (2) all such proceedings shall take precedence 

4 over all other matters then before the Supreme 

5 Court. 

6 SEC. 1706. COVERED ENERGY PROJECT DEFINED. 

7 In this part, the term ‘‘covered energy project’’ 

8 means any action or decision by the President or a Federal 

9 official regarding— 

10 (1) the leasing of Federal lands (including sub11 merged lands) for the exploration, development, pro12 duction, processing, or transmission of oil, natural 

13 gas, or any other source or form of energy, including 

14 actions and decisions regarding the selection or of15 fering of Federal lands for such leasing; or 

16 (2) any action under such a lease. 

17 SEC. 1707. LIMITATION ON APPLICATION. 

18 This part shall not apply with respect to a covered 

19 energy project to the extent such application would be in20 consistent with part 2. 

21 PART 2—PERMITTING REFORM 

22 SEC. 1711. PURPOSES. 

23 The purposes of this part are to— 

24 (1) respond to the Nation’s increased need for 

25 domestic energy resources; 


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1 (2) facilitate interagency coordination and co2 operation in the processing of permits required to 

3 support oil and gas use authorization on Federal 

4 lands, both onshore and on the outer Continental 

5 Shelf, in order to achieve greater consistency, cer6 tainty, and timeliness in permit processing require7 ments; 

8 (3) promote process streamlining and increased 

9 interagency efficiency, including elimination of inter10 agency duplication of effort; 

11 (4) improve information sharing among agen12 cies and understanding of respective agency roles 

13 and responsibilities; 

14 (5) promote coordination with State agencies 

15 with expertise and responsibilities related to Federal 

16 oil and gas permitting decisions; 

17 (6) promote responsible stewardship of Federal 

18 oil and gas resources; 

19 (7) maintain high standards of safety and envi20 ronmental protection; and 

21 (8) enhance the benefits to Federal permitting 

22 already occurring as a result of a coordinated and 

23 timely interagency process for oil and gas permit re24 view for certain Federal oil and gas leases. 


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1 SEC. 1712. FEDERAL COORDINATOR. 

2 (a) ESTABLISHMENT.—There is established, as an 

3 independent agency in the Executive Branch, the Office 

4 of the Federal Oil and Gas Permit Coordinator. 

5 (b) FEDERAL PERMIT COORDINATOR.—The Office 

6 shall be headed by a Federal Permit Coordinator, who 

7 shall be appointed by the President within 90 days after 

8 the date of enactment of this Act. 

9 (c) DUTIES.—The Federal Permit Coordinator shall 

10 be responsible for the following: 

11 (1) Coordinating the timely completion of all 

12 permitting activities by Federal agencies, and State 

13 agencies to the maximum extent practicable, with re14 spect to any oil and gas project under a Federal 

15 lease issued pursuant to the mineral leasing laws, ei16 ther onshore or on the outer Continental Shelf. For 

17 purposes of this part only, such oil and gas projects 

18 shall include oil shale projects under Federal oil 

19 shale leases. 

20 (2) Ensuring the compliance of Federal agen21 cies, and State agencies to the extent they partici22 pate, with this part. 

23 SEC. 1713. REGIONAL OFFICES AND REGIONAL PERMIT CO24 ORDINATORS. 

25 (a) REGIONAL OFFICES.—Within 90 days after the 

26 date of appointment of the Federal Permit Coordinator, 


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1 the Secretary of the Interior (Secretary), in consultation 

2 with the Federal Permit Coordinator, shall establish re3 gional offices to coordinate review of Federal permits for 

4 oil and gas projects on Federal lands onshore and on the 

5 outer Continental Shelf. 

6 (b) NUMBER AND LOCATION OF REGIONAL OF7 FICES.—The number of regional offices shall be estab8 lished by the Secretary in consultation with the Federal 

9 Permit Coordinator. The Secretary shall ensure that there 

10 is an adequate number of offices in each region proximate 

11 to available Federal oil and gas lease tracts onshore and 

12 on the outer Continental Shelf to meet the demands for 

13 expeditious permitting in that region. The Secretary shall 

14 designate as regional offices under this section all offices 

15 established under section 365 of the Energy Policy Act 

16 of 2005 (42 U.S.C. 15924). 

17 (c) MEMORANDUM OF UNDERSTANDING.—Within 90 

18 days after the appointment of the Federal Permit Coordi19 nator, the Federal Permit Coordinator, the Secretary, the 

20 Secretary of Agriculture, the Secretary of Commerce, the 

21 Secretary of Homeland Security, the Administrator of the 

22 Environmental Protection Agency, the Secretary of De23 fense, and the head of any other Federal agency with re24 sponsibilities related to permitting of Federal oil and gas 

25 leases, shall enter into a memorandum of understanding 


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1 (MOU) establishing respective duties and responsibilities 

2 for staffing the regional offices and accomplishing the ob3 jectives of this section. 

4 (d) DESIGNATION OF QUALIFIED STAFF.— 

5 (1) IN GENERAL.—Not later than 30 days after 

6 the date of signing of the MOU under subsection 

7 (c), all Federal signatory agencies shall assign to 

8 each regional office the appropriate employees with 

9 expertise in the oil and gas permitting issues relat10 ing to that office, including, but not limited, with re11 spect to— 

12 (A) consultation and preparation of bio13 logical opinions under section 7 of the Endan14 gered Species Act of 1973 (16 U.S.C. 1536); 

15 (B) permits under section 404 of Federal 

16 Water Pollution Control Act (33 U.S.C. 1344); 

17 (C) regulatory matters under the Clean Air 

18 Act (42 U.S.C. 7401 et seq.); 

19 (D) planning under the National Forest 

20 Management Act of 1976 (16 U.S.C. 472a et 

21 seq.); 

22 (E) the preparation of analyses under the 

23 National Environmental Policy Act of 1969 (42 

24 U.S.C. 4321 et seq.) (NEPA); 


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1 (F) applications for permits to drill under 

2 the Mineral Leasing Act (30 U.S.C. 181 et 

3 seq.); and 

4 (G) exploration plans and development and 

5 production plans under the Outer Continental 

6 Shelf Lands Act (43 U.S.C. 1331 et seq.). 

7 (2) PREFERENCE AND INCENTIVES.—To the 

8 maximum extent practicable, for purposes of this 

9 subsection, Federal agencies shall give preference to 

10 employees volunteering for reassignment to the re11 gional offices, and shall offer incentives to attract 

12 and retain regional office employees, including, but 

13 not limited to, retaining contract employees, rota14 tional assignments, salary incentives of up to 120 

15 percent of an employee’s existing salary immediately 

16 prior to reassignment, or any combination of strate17 gies. 

18 (e) DUTIES.—Each employee assigned under sub19 section (d) shall— 

20 (1) within 90 days after the date of assignment, 

21 report to the regional office to which the employee 

22 is assigned; 

23 (2) be responsible for all issues relating to the 

24 jurisdiction of the home office or agency of the em25 ployee; and 


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1 (3) participate as part of the team working on 

2 proposed oil and gas projects, planning, and environ3 mental analyses. 

4 (f) CREATION OF AND DELEGATION OF AUTHORITY

5 TO REGIONAL PERMIT COORDINATORS.—The Federal 

6 Permit Coordinator shall appoint a Regional Permit Coor7 dinator to be located within each regional office estab8 lished under this section, with full authority to act on be9 half of the Federal Permit Coordinator. 

10 (g) ADDITIONAL PERSONNEL.—The Federal Permit 

11 Coordinator or Regional Permit Coordinators may at any 

12 time direct that any Federal agency party to the MOU 

13 under subsection (c) assign additional staff required to im14 plement the duties of the regional offices. 

15 SEC. 1714. REVIEWS AND ACTIONS OF FEDERAL AGENCIES. 

16 (a) SCHEDULES FOR TIMELY PERMIT DECISION17 MAKING.—Within 10 days after the date on which the Sec18 retary receives any oil and gas permit application or 

19 amended application, the Secretary shall either notify the 

20 applicant that the application is complete or notify the ap21 plicant that information is missing and specify the infor22 mation that is required to be submitted for the application 

23 to be complete. Within 30 days after notifying a permit 

24 applicant that an application is complete, the Secretary, 

25 in consultation with the permit applicant as necessary, 


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1 shall determine and inform the Regional Permit Coordi2 nator responsible for that project area whether the pro3 posed permit is a class I, class II, or class III permit. The 

4 Regional Permit Coordinator shall as soon as possible but 

5 in no event later than 30 days following the Secretary’s 

6 determination establish a binding schedule to ensure the 

7 most expeditious possible review and processing of the re8 quested permit, in accordance with this section. 

9 (b) PERMIT CLASSES AND SCHEDULES.— 

10 (1) CLASS I PERMITS.—An oil and gas permit 

11 shall be designated as a class I permit under this 

12 section if the permitted activity is of a nature that 

13 would typically require preparation of an environ14 mental impact statement under NEPA to inform the 

15 permitting decision. For such permits, the Regional 

16 Permit Coordinator shall establish a schedule for 

17 timely completion of all permit reviews and proc18 essing, not to exceed 30 months. The Regional Per19 mit Coordinator shall make the schedule publicly 

20 available within 10 days after the schedule is estab21 lished. 

22 (2) CLASS II PERMITS.—An oil and gas permit 

23 shall be designated as a class II permit under this 

24 section if the permitted activity is of a nature that 

25 would typically be found not to significantly affect 


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1 the quality of the human environment under NEPA. 

2 For such permits, the Regional Permit Coordinator 

3 shall establish the most expeditious schedule possible 

4 for completion of all permit reviews and processing, 

5 not to exceed 90 days. The Regional Permit Coordi6 nator may grant a one-time extension of that sched7 ule, not to exceed 60 days, upon a good cause show8 ing that additional time is necessary to complete 

9 permit decisions. Not later than 15 days after estab10 lishing or extending any schedule for a class II per11 mit, the Regional Permit Coordinator shall provide 

12 the permit applicant with the schedule. 

13 (3) CLASS III PERMITS.—Notwithstanding para14 graphs (1) and (2), an oil and gas permit shall be 

15 designated as a class III permit under this section 

16 if the permitted activity either qualifies for a statu17 tory or regulatory categorical exclusion under NEPA 

18 or if the requirements under NEPA and other appli19 cable law for the permit have been completed within 

20 30 days after the date of a complete application. For 

21 such permits, the permit shall be issued within 30 

22 days after the date of a complete application. 

23 (4) RECLASSIFICATION OF CLASS II PERMIT.— 

24 If prior to the expiration of the established schedule 

25 for a class II permit newly discovered information 


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1 indicates that the class II permit will significantly 

2 affect the quality of the human environment, the 

3 Secretary may, in consultation with the permit appli4 cant, reclassify the permit as a class I permit under 

5 paragraph (1), and the Regional Coordinator shall 

6 establish an amended schedule that complies with 

7 the provisions of that paragraph. 

8 (c) REPORTING.—The Regional Permit Coordinators 

9 shall include data on all schedule timing and compliance 

10 in their reports to the Federal Permit Coordinator re11 quired under subsection (i), who shall include such data 

12 in the report to the President and Congress required 

13 under subsection (i). 

14 (d) DISPUTE RESOLUTION.—The Regional Permit 

15 Coordinator shall resolve all administrative issues that af16 fect oil and gas permit reviews. The Regional Permit Coor17 dinator shall report jointly to the Federal Permit Coordi18 nator and to the head of the relevant action agency, or 

19 his or her designee, for resolution of any issue regarding 

20 an oil and gas permit that may result in missing the 

21 schedule deadlines established pursuant to subsection (b). 

22 The Regional Permit Coordinators shall include data re23 garding the incidence and resolution of disputes under this 

24 subsection in their reports to the Federal Permit Coordi25 nator required under subsection (i), who shall include such 


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1 reported data and develop recommendations in the report 

2 to the President and Congress required under subsection 

3 (i). 

4 (f) PROHIBITION OF CERTAIN TERMS AND CONDI5 TIONS.—No Federal agency may include in any permit, 

6 right-of-way, or other authorization issued for an oil and 

7 gas project subject to the provisions of this part, any term 

8 or condition that may be authorized, but is not required, 

9 by the provisions of any applicable law, if the Federal Per10 mit Coordinator determines that such term or condition 

11 would prevent or impair in any significant respect comple12 tion of a permit review within the time schedule estab13 lished pursuant to subsection (b) or would otherwise im14 pair in any significant respect expeditious oil and gas de15 velopment. The Federal Permit Coordinator shall not have 

16 any authority to impose any terms, conditions, or require17 ments beyond those imposed by any Federal law, agency, 

18 regulation, or lease term. 

19 (g) CONSOLIDATED RECORD.—The Federal Permit 

20 Coordinator, acting through the appropriate Regional Per21 mit Coordinator, with the cooperation of Federal and 

22 State administrative officials and agencies, shall maintain 

23 a complete, consolidated record of all decisions made or 

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1 gional Permit Coordinator or by any Federal agency with 

2 respect to any oil and gas permit. 

3 (h) RELATIONSHIP TO NEPA AND ENERGY POLICY

4 ACT OF 2005.— 

5 (1) Section 390(a) of the Energy Policy Act of 

6 2005 (42 U.S.C. 15942(a)) is amended— 

7 (A) by striking ‘‘rebuttable presumption 

8 that the use of a’’; and 

9 (B) by striking ‘‘would apply’’. 

10 (2) Section 17(p) of the Mineral Leasing Act 

11 (30 U.S.C. 226(p)) is repealed. 

12 (i) ADDITIONAL POWERS AND RESPONSIBILITIES.— 

13 (1) REGIONAL PERMIT COORDINATOR RE14 PORTS.—The Regional Permit Coordinators shall 

15 each submit a report to the Federal Permit Coordi16 nator by December 31 of each year that documents 

17 each office’s performance in meeting the objectives 

18 under this part, including recommendations to fur19 ther streamline the permitting process. 

20 (2) REDIRECTION OF PRIORITIES OR RE21 SOURCES.—In order to expedite overall permitting 

22 activity, the Federal Permit Coordinator may redi23 rect the priority of regional office activities or the al24 location of resources among such offices, and shall 

25 engage the agencies that are parties to the MOU to 


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1 the extent such adjustments implicate their respec2 tive staffs or resources. 

3 (3) REPORT TO CONGRESS.—Beginning three 

4 years after the date of enactment of this Act, the 

5 Federal Permit Coordinator shall prepare and sub6 mit a report to the President and Congress by April 

7 15 of each year that outlines the results achieved 

8 under this part and makes recommendations to the 

9 President and Congress for further improvements in 

10 processing oil and gas permits on Federal lands. 

11 SEC. 1715. STATE COORDINATION. 

12 The Governor of any State wherein an oil and gas 

13 operation may require a Federal permit, or the coastline 

14 of which is in immediate geographic proximity to oil and 

15 gas operations on the outer Continental Shelf, may be a 

16 signatory to the MOU for purposes of fulfilling any State 

17 responsibilities with respect to Federal oil and gas permit18 ting decisions. The Regional Permit Coordinators shall fa19 cilitate and coordinate concurrent State reviews of re20 quested permits for oil and gas projects on the outer Con21 tinental Shelf. 

22 SEC. 1716. SAVINGS PROVISION. 

23 Except as expressly stated, nothing in this part af24 fects— 


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1 (1) the applicability of any Federal or State 

2 law; or 

3 (2) any delegation of authority made by the 

4 head of a Federal agency the employees of which are 

5 participating in the implementation of this section. 

6 SEC. 1717. ADMINISTRATIVE AND JUDICIAL REVIEW. 

7 (a) ADMINISTRATIVE REVIEW.—Any oil and gas per8 mitting decision for Federal lands onshore or on the outer 

9 Continental Shelf that was issued in accordance with the 

10 procedures established by this part shall not be subject 

11 to further administrative review within the respective Fed12 eral agency responsible for that decision, and shall be the 

13 final decision of that agency for purposes of judicial re14 view. 

15 (b) EXCLUSIVE JURISDICTION OVER PERMIT DECI16 SIONS.—Only the United States District Court for the 

17 District of Columbia shall have original jurisdiction over 

18 any civil action for the review of such a permit decision. 

19 (c) LIMITATIONS ON CLAIMS.—Notwithstanding any 

20 other provision of law, any action arising under Federal 

21 law seeking judicial review of a permit, license, or approval 

22 issued by a Federal agency for an oil and gas permit sub23 ject to this part shall be barred unless it is filed within 

24 90 days of the date of the decision. Nothing in this part 

25 shall creates a right to judicial review or places any limit 


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1 on filing a claim that a person has violated the terms of 

2 a permit, license, or approval. 

3 (d) FILING OF RECORD.—When any civil action is 

4 brought pursuant to this part, the Federal Permit Coordi5 nator shall immediately prepare for the court a consoli6 dated record. 

7 (e) EXPEDITED REVIEW.—Any action for judicial re8 view challenging a decision approved pursuant to this sec9 tion shall be set for consideration by not later than 90 

10 days after the date the action is filed. 

11 (f) EXPEDITED MANDAMUS REVIEW.—Notwith12 standing subsection (e), within 30 days after the filing of 

13 an action challenging or seeking to enforce an established 

14 permit review schedule for a class I permit, the court shall 

15 issue a decision either compelling permit issuance or sanc16 tioning the delay and establishing a new schedule that en17 ables the most expeditious possible completion of pro18 ceedings. In rendering its decision, the court shall review 

19 whether the agencies subject to the schedule have been 

20 acting in good faith, whether the permit applicant has 

21 been cooperating fully with the agencies that are respon22 sible for issuing the requested permits, and any other rel23 evant matters. The court may issue orders to enforce any 

24 schedule it establishes under this subsection. 


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1 (g) NO PRIVATE RIGHT OF ACTION.—This part shall 

2 not be construed to create any additional right, benefit, 

3 or trust responsibility, substantive or procedural, enforce4 able at law or equity, by a person against the United 

5 States, its agencies, its officers, or any person. 

6 (h) FINALITY OF LEASING DECISIONS.—Notwith7 standing the provisions of any law or regulation to the 

8 contrary, a decision by the Bureau of Land Management 

9 or the Minerals Management Service to issue a Final No10 tice of Sale and proceed with an oil and gas lease sale 

11 pursuant to any mineral leasing law shall not be subject 

12 to further administrative review within the Department of 

13 the Interior, and shall be the final decision of the agency 

14 for purposes of judicial review. 

15 SEC. 1718. AMENDMENTS TO PUBLICATION PROCESS. 

16 Section 18 of the Outer Continental Shelf Lands Act 

17 (43 U.S.C. 1344) is amended— 

18 (1) by amending subsection (c)(2) to read as 

19 follows: 

20 ‘‘(2) The Secretary shall publish a proposed 

21 leasing program in the Federal Register, and shall 

22 submit a copy of such proposed program to the Gov23 ernor of each affected State, for review and com24 ment. The Governor may solicit comments from 

25 those executives of local governments in his State 


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1 which he, in his discretion, determines will be af2 fected by the proposed program.’’; 

3 (2) by striking subsection (c)(3); and 

4 (3) in subsection (d)(2) by inserting ‘‘final’’ 

5 after ‘‘proposed’’. 

6 SEC. 1719. ALASKA OFFSHORE CONTINENTAL SHELF CO7 ORDINATION OFFICE. 

8 (a) ESTABLISHMENT.—The Secretary of the Interior 

9 shall establish and maintain, in coordination with the 

10 Mayor of the North Slope Borough of Alaska, a separate 

11 office to be known as the Alaska Offshore Continental 

12 Shelf Coordination Office. 

13 (b) PURPOSE.—The purpose of the office shall be 

14 to— 

15 (1) coordinate the leasing of the outer Conti16 nental Shelf off the coast of Alaska; 

17 (2) advise persons awarded such leases on local 

18 conditions and the history of areas affected by devel19 opment of the oil and gas resources of the outer 

20 Continental Shelf off the coast of Alaska; 

21 (3) provide to the Committee on Resources of 

22 the House of Representatives and the Committee on 

23 Energy and Natural Resources of the Senate annual 

24 reports on the status of the coordination between 

25 such and communities affected by such development; 


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1 (4) collect from residents of the North Slope of 

2 Alaska information regarding the impacts of such 

3 development on marine wildlife, coastal habitats, ma4 rine and coastal subsistence resources, and the ma5 rine and coastal environment of Alaska’s North 

6 Slope region; and 

7 (5) ensure that the information collected under 

8 paragraph (3) is submitted to— 

9 (A) developers of such resources; and 

10 (B) any appropriate Federal agency. 

11 Subtitle I—Innovation in Carbon 

12 Capture and Clean Coal Tech13 nology 

14 SEC. 1801. COAL-TO-LIQUID FUEL LOAN GUARANTEE PRO15 GRAM. 

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

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

18 amended by adding at the end the following: 

19 ‘‘(11) Large-scale coal-to-liquid facilities (as de20 fined in section 101 of the Coal-to-Liquid Fuel Pro21 motion Act of 2007) that use a feedstock, the major22 ity of which is the coal resources of the United 

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

24 day of liquid transportation fuel.’’. 


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1 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) 

3 is amended by adding at the end the following: 

4 ‘‘(c) COAL-TO-LIQUID PROJECTS.— 

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

6 appropriated such sums as are necessary to provide 

7 the cost of guarantees for projects involving large8 scale coal-to-liquid facilities under section 

9 1703(b)(11). 

10 ‘‘(2) ALTERNATIVE FUNDING.—If no appropria11 tions are made available under paragraph (1), an eli12 gible applicant may elect to provide payment to the 

13 Secretary, to be delivered if and at the time the ap14 plication is approved, in the amount of the estimated 

15 cost of the loan guarantee to the Federal Govern16 ment, as determined by the Secretary. 

17 ‘‘(3) LIMITATIONS.— 

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

19 shall be provided under this title for projects 

20 described in paragraph (1) after (as determined 

21 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) that produces no more 

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

10 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) that produces more than 20,000 

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

17 be eligible to receive a loan guarantee for 

18 the proportion of the cost of the facility 

19 that represents 20,000 barrels of coal-to20 liquid fuel per day of production. 

21 ‘‘(4) REQUIREMENTS.— 

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

23 days after the date of enactment of this sub24 section, the Secretary shall publish guidelines 


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1 for the coal-to-liquids loan guarantee applica2 tion process. 

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

4 year after the date of enactment of this sub5 section, the Secretary shall begin to accept ap6 plications for coal-to-liquid loan guarantees 

7 under this subsection. 

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

9 from the date of acceptance of an application 

10 under subparagraph (B), the Secretary shall 

11 evaluate the application and make final deter12 minations under this subsection. 

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

14 shall submit to the Committee on Energy and Nat15 ural Resources of the Senate and the Committee on 

16 Energy and Commerce of the House of Representa17 tives a report describing the status of the program 

18 under this subsection not later than each of— 

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

20 of this subsection; 

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

22 this subsection; and 

23 ‘‘(C) the dates on which the Secretary ap24 proves the first and fifth applications for coalVerDate Nov 24 2008 18:41 Jun 13, 2009 Jkt 079200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\H2828.IH H2828

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

3 SEC. 1802. COAL-TO-LIQUID FACILITIES LOAN PROGRAM. 

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

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

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

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

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

9 (b) ESTABLISHMENT.—The Secretary shall establish 

10 a program under which the Secretary shall provide loans, 

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

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

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

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

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

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

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

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

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

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

23 the amount of the loan. 

24 (e) REPAYMENT OF LOAN.— 


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

2 loan under this section, an eligible recipient shall 

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

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

5 receipt of the loan. 

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

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

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

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

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

13 (f) REQUIREMENTS.— 

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

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

17 loan application process. 

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

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

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

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

24 Act, the Secretary shall submit to the Committee on En25 ergy and Natural Resources of the Senate and the ComVerDate Nov 24 2008 18:41 Jun 13, 2009 Jkt 079200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\H2828.IH H2828

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

3 under this section. 

4 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated to carry out this section 

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

7 SEC. 1803. ALLOWS FOR 7-YEAR DEPRECIATION FOR 

8 POWER-PLANTS THAT INSTALL CLEAN COAL 

9 TECHNOLOGY OR RETRO-FIT PLANTS FOR 

10 CARBON SEQUESTRATION TECHNOLOGY. 

11 Any coal fired power plant generating power that ret12 rofits their operation to decrease their carbon output by 

13 at least 10 percent per year will get a 7-year accelerated 

14 depreciation credit for property placed in service after De15 cember 31, 2009. 

16 SEC. 1804. EXTENSION OF 50 CENT PER GALLON ALTER17 NATIVE FUELS EXCISE TAX CREDIT. 

18 Paragraph (5) of section 6426(d) of the Internal Rev19 enue Code of 1986 is amended by striking ‘‘2009’’ and 

20 inserting ‘‘2019’’ and by striking ‘‘2014’’ and inserting 

21 ‘‘2024’’. 


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1 SEC. 1805. PROVIDES A 20 PERCENT INVESTMENT TAX 

2 CREDIT CAPPED AT $200 MILLION TOTAL PER 

3 CTL PLANT PLACED IN SERVICE BEFORE 

4 2016. 

5 The Internal Revenue Service shall treat the syn6 thetic gas produced from coal-to-liquids with the same tax 

7 treatment as covered by the industrial gasification tax 

8 credit. 

9 SEC. 1806. REDUCES RECOVERY PERIOD FOR CERTAIN EN10 ERGY PRODUCTION AND DISTRIBUTION FA11 CILITIES. 

12 In the case of an individual or business, there shall 

13 be allowed as a credit against the taxes imposed by sub14 title A of the Internal Revenue Code of 1986 an amount 

15 equal to 30 percent of the expenditures made by such indi16 vidual or business for energy production and distribution 

17 facilities. 

18 SEC. 1807. DOE CLEAN COAL TECHNOLOGY LOAN GUARAN19 TEES AND DIRECT LOANS. 

20 The Secretary of Energy may provide clean coal tech21 nology loan guarantees and direct loans for the research, 

22 development, demonstration, and deployment of clean coal 

23 technology, to build up to five commercial-scale coal-fired 

24 plants with carbon capture and sequestration capabilities. 

25 For each such loan guarantee or loan, at least 50 percent 


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1 of the total cost of the project shall be provided by the 

2 private sector. 

3 Subtitle J—Natural Gas 

4 SEC. 1901. NATURAL GAS VEHICLE RESEARCH, DEVELOP5 MENT, AND DEMONSTRATION PROJECTS. 

6 (a) IN GENERAL.—The Secretary of Energy shall 

7 conduct a 5-year program of natural gas vehicle research, 

8 development, and demonstration. The Secretary shall co9 ordinate with the Administrator of the Environmental 

10 Protection Agency, as necessary. 

11 (b) PURPOSE.—The program under this section shall 

12 focus on— 

13 (1) the continued improvement and develop14 ment of new, cleaner, more efficient light-duty, me15 dium-duty, and heavy-duty natural gas vehicle en16 gines; 

17 (2) the integration of those engines into light18 duty, medium-duty, and heavy-duty natural gas vehi19 cles for onroad and offroad applications; 

20 (3) expanding product availability by assisting 

21 manufacturers with the certification of the engines 

22 or vehicles described in paragraph (1) or (2) to Fed23 eral or California certification requirements and in24 use emission standards; 


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1 (4) the demonstration and proper operation and 

2 use of the vehicles described in paragraph (2) under 

3 all operating conditions; 

4 (5) the development and improvement of na5 tionally recognized codes and standards for the con6 tinued safe operation of natural gas vehicles and 

7 their components; 

8 (6) improvement in the reliability and efficiency 

9 of natural gas fueling station infrastructure; 

10 (7) the certification of natural gas fueling sta11 tion infrastructure to nationally recognized and in12 dustry safety standards; 

13 (8) the improvement in the reliability and effi14 ciency of onboard natural gas fuel storage systems; 

15 (9) the development of new natural gas fuel 

16 storage materials; 

17 (10) the certification of onboard natural gas 

18 fuel storage systems to nationally recognized and in19 dustry safety standards; and 

20 (11) the use of natural gas engines in hybrid 

21 vehicles. 

22 (c) CERTIFICATION OF CONVERSION SYSTEMS.—The 

23 Secretary shall coordinate with the Administrator on 

24 issues related to streamlining the certification of natural 


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1 gas conversion systems to the appropriate Federal certifi2 cation requirements and in-use emission standards. 

3 (d) COOPERATION AND COORDINATION WITH INDUS4 TRY.—In developing and carrying out the program under 

5 this section, the Secretary shall coordinate with the nat6 ural gas vehicle industry to ensure cooperation between 

7 the public and the private sector. 

8 (e) CONDUCT OF PROGRAM.—The program under 

9 this section shall be conducted in accordance with sections 

10 3001 and 3002 of the Energy Policy Act of 1992. 

11 (f) REPORT.—Not later than 2 years after the date 

12 of enactment of this Act, the Secretary shall provide a re13 port to Congress on the implementation of this section. 

14 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated to the Secretary 

16 $30,000,000 for each of the fiscal years 2010 through 

17 2014 to carry out this section. 

18 (h) DEFINITION.—For purposes of this section, the 

19 term ‘‘natural gas’’ means compressed natural gas, lique20 fied natural gas, biomethane, and mixtures of hydrogen 

21 and methane or natural gas. 

22 SEC. 1902. MODIFICATION OF ALTERNATIVE FUEL CREDIT. 

23 (a) ALTERNATIVE FUEL CREDIT.—Paragraph (5) of 

24 section 6426(d) of the Internal Revenue Code of 1986 (re25 lating to alternative fuel credit) is amended by inserting 


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1 ‘‘, and December 31, 2027, in the case of any sale or use 

2 involving compressed or liquefied natural gas)’’ after ‘‘hy3 drogen’’. 

4 (b) ALTERNATIVE FUEL MIXTURE CREDIT.—Para5 graph (3) of section 6426(d) of such Code is amended by 

6 inserting ‘‘, and December 31, 2027, in the case of any 

7 sale or use involving compressed or liquefied natural gas)’’ 

8 after ‘‘hydrogen’’. 

9 (c) PAYMENTS RELATING TO ALTERNATIVE FUEL OR

10 ALTERNATIVE FUEL MIXTURES.—Paragraph (6) of sec11 tion 6427(e) of such Code is amended— 

12 (1) in subparagraph (C)— 

13 (A) by striking ‘‘subparagraph (D)’’ in 

14 subparagraph (C) and inserting ‘‘subpara15 graphs (D) and (E)’’, and 

16 (B) by striking ‘‘and’’ at the end thereof, 

17 (2) by striking the period at the end of sub18 paragraph (D) and inserting ‘‘, and’’, 

19 (3) by inserting the following: ‘‘or with respect 

20 to compressed or liquefied natural gas’’ after ‘‘sub21 paragraph (D)’’, and 

22 (4) by inserting the following new subpara23 graph: 


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1 ‘‘(E) any alternative fuel or alternative fuel 

2 mixture (as so defined) involving compressed or 

3 liquefied natural gas.’’. 

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

5 this section shall apply to fuel sold or used after the date 

6 of the enactment of this Act. 

7 SEC. 1903. EXTENSION AND MODIFICATION OF ALTER8 NATIVE FUEL VEHICLE CREDIT. 

9 (a) IN GENERAL.—Paragraph (4) of section 30B(k) 

10 of the Internal Revenue Code of 1986 (relating to termi11 nation) is amended by inserting ‘‘(December 31, 2027, in 

12 the case of a vehicle powered by compressed or liquefied 

13 natural gas)’’ before the period at the end. 

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

15 subsection (a) shall apply to property placed in service 

16 after the date of the enactment of this Act. 

17 SEC. 1904. ALLOWANCE OF VEHICLE AND INFRASTRUC18 TURE CREDITS AGAINST REGULAR AND MIN19 IMUM TAX AND TRANSFERABILITY OF CRED20 ITS. 

21 (a) BUSINESS CREDITS.—Subparagraph (B) of sec22 tion 38(c)(4) of the Internal Revenue Code of 1986 is 

23 amended by striking ‘‘and’’ at the end of clause (vii), by 

24 striking the period at the end of clause (viii) and inserting 


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1 ‘‘, and’’, and by inserting after clause (viii) the following 

2 new clauses: 

3 ‘‘(ix) the portion of the credit deter4 mined under section 30B which is attrib5 utable to the application of subsection 

6 (e)(3) thereof with respect to qualified al7 ternative fuel motor vehicles which are ca8 pable of being powered by compressed or 

9 liquefied natural gas, and 

10 ‘‘(x) the portion of the credit deter11 mined under section 30C which is attrib12 utable to the application of subsection (b) 

13 thereof with respect to refueling property 

14 which is used to store and or dispense 

15 compressed or liquefied natural gas.’’. 

16 (b) PERSONAL CREDITS.— 

17 (1) NEW QUALIFIED ALTERNATIVE FUEL

18 MOTOR VEHICLES.—Subsection (g) of section 30B of 

19 such Code is amended by adding at the end the fol20 lowing new paragraph: 

21 ‘‘(3) SPECIAL RULE RELATING TO CERTAIN

22 NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHI23 CLES.—In the case of the portion of the credit deter24 mined under subsection (a) which is attributable to 

25 the application of subsection (e)(3) with respect to 


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1 qualified alternative fuel motor vehicles which are 

2 capable of being powered by compressed or liquefied 

3 natural gas— 

4 ‘‘(A) paragraph (2) shall (after the appli5 cation of paragraph (1)) be applied separately 

6 with respect to such portion, and 

7 ‘‘(B) in lieu of the limitation determined 

8 under paragraph (2), such limitation shall not 

9 exceed the excess (if any) of— 

10 ‘‘(i) the sum of the regular tax liabil11 ity (as defined in section 26(b)) plus the 

12 tentative minimum tax for the taxable 

13 year, reduced by 

14 ‘‘(ii) the sum of the credits allowable 

15 under subpart A and sections 27 and 30.’’. 

16 (2) ALTERNATIVE FUEL VEHICLE REFUELING

17 PROPERTIES.—Subsection (d) of section 30C of such 

18 Code is amended by adding at the end the following 

19 new paragraph: 

20 ‘‘(3) SPECIAL RULE RELATING TO CERTAIN AL21 TERNATIVE FUEL VEHICLE REFUELING PROP22 ERTIES.—In the case of the portion of the credit de23 termined under subsection (a) with respect to refuel24 ing property which is used to store and or dispense 


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1 compressed or liquefied natural gas and which is at2 tributable to the application of subsection (b)— 

3 ‘‘(A) paragraph (2) shall (after the appli4 cation of paragraph (1)) be applied separately 

5 with respect to such portion, and 

6 ‘‘(B) in lieu of the limitation determined 

7 under paragraph (2), such limitation shall not 

8 exceed the excess (if any) of— 

9 ‘‘(i) the sum of the regular tax liabil10 ity (as defined in section 26(b)) plus the 

11 tentative minimum tax for the taxable 

12 year, reduced by 

13 ‘‘(ii) the sum of the credits allowable 

14 under subpart A and sections 27, 30, and 

15 the portion of the credit determined under 

16 section 30B which is attributable to the 

17 application of subsection (e)(3) thereof.’’. 

18 (c) CREDITS MAY BE TRANSFERRED.— 

19 (1) VEHICLE CREDITS.—Subsection (h) of sec20 tion 30B of such Code is amended by adding at the 

21 end the following new paragraph: 

22 ‘‘(11) TRANSFERABILITY OF CREDIT.—Nothing 

23 in any law or rule of law shall be construed to limit 

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1 tion for qualified alternative fuel motor vehicles 

2 which are capable of being powered by compressed 

3 or liquefied natural gas.’’. 

4 (2) INFRASTRUCTURE CREDIT.—Subsection (e) 

5 of section 30C of such Code is amended by adding 

6 at the end the following new paragraph: 

7 ‘‘(6) CREDIT MAY BE TRANSFERRED.—Nothing 

8 in any law or rule of law shall be construed to limit 

9 a taxpayer from transferring the credit allowed by 

10 this section through sale and repurchase agree11 ments.’’. 

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

13 this section shall apply with respect to property placed in 

14 service after the date of the enactment of this Act. 

15 SEC. 1905. CREDIT FOR PRODUCING VEHICLES FUELED BY 

16 NATURAL GAS OR LIQUIFIED NATURAL GAS. 

17 (a) IN GENERAL.—Subpart D of part IV of sub18 chapter A of chapter 1 of the Internal Revenue Code of 

19 1986 (relating to business-related credits) is amended by 

20 inserting after section 45Q the following new section: 

21 ‘‘SEC. 45R. PRODUCTION OF VEHICLES FUELED BY NAT22 URAL GAS OR LIQUIFIED NATURAL GAS. 

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

24 the case of a taxpayer who is a manufacturer of natural 

25 gas vehicles, the natural gas vehicle credit determined 


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1 under this section for any taxable year with respect to 

2 each eligible natural gas vehicle produced by the taxpayer 

3 during such year is an amount equal to the lesser of— 

4 ‘‘(1) 10 percent of the manufacturer’s basis in 

5 such vehicle, or 

6 ‘‘(2) $4,000. 

7 ‘‘(b) AGGREGATE CREDIT ALLOWED.—The aggre8 gate amount of credit allowed under subsection (a) with 

9 respect to a taxpayer for any taxable year shall not exceed 

10 $200,000,000 reduced by the amount of the credit allowed 

11 under subsection (a) to the taxpayer (or any predecessor) 

12 for all prior taxable years. 

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

14 ‘‘(1) ELIGIBLE NATURAL GAS VEHICLE.—The 

15 term ‘eligible natural gas vehicle’ means any motor 

16 vehicle (as defined in section 30(c)(2))— 

17 ‘‘(A) which— 

18 ‘‘(i) is only capable of operating on 

19 natural gas or liquefied natural gas, or 

20 ‘‘(ii) is capable of operating on com21 pressed or liquefied natural gas and (but 

22 not in combination with) gasoline or diesel 

23 fuel, but in no case shall such vehicle have 

24 an operating range of less than 200 miles 


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1 on compressed or liquefied natural gas, 

2 and 

3 ‘‘(B) the final assembly of which is in the 

4 United States. 

5 ‘‘(2) MANUFACTURER.—The term ‘manufac6 turer’ has the meaning given such term in regula7 tions prescribed by the Administrator of the Envi8 ronmental Protection Agency for purposes of the ad9 ministration of title II of the Clean Air Act (42 

10 U.S.C. 7521 et seq.). 

11 ‘‘(d) SPECIAL RULES.—For purposes of this sec12 tion— 

13 ‘‘(1) IN GENERAL.—Rules similar to the rules 

14 of subsections (c), (d), and (e) of section 52 shall 

15 apply. 

16 ‘‘(2) CONTROLLED GROUPS.— 

17 ‘‘(A) IN GENERAL.—All persons treated as 

18 a single employer under subsection (a) or (b) of 

19 section 52 or subsection (m) or (o) of section 

20 414 shall be treated as a single producer. 

21 ‘‘(B) INCLUSION OF FOREIGN CORPORA22 TIONS.—For purposes of subparagraph (A), in 

23 applying subsections (a) and (b) of section 52 

24 to this section, section 1563 shall be applied 

25 without regard to subsection (b)(2)(C) thereof. 


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1 ‘‘(3) VERIFICATION.—No amount shall be al2 lowed as a credit under subsection (a) with respect 

3 to which the taxpayer has not submitted such infor4 mation or certification as the Secretary, in consulta5 tion with the Secretary of Energy, determines nec6 essary. 

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

8 any vehicle produced after December 31, 2017.’’. 

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

10 Section 38(b) of such Code is amended by striking ‘‘plus’’ 

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

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

13 adding at the end the following: 

14 ‘‘(36) the natural gas vehicle credit determined 

15 under section 45R(a).’’. 

16 (c) CONFORMING AMENDMENT.—The table of sec17 tions for subpart D of part IV of subchapter A of chapter 

18 1 of such Code is amended by inserting after the item 

19 relating to section 45Q the following new item: 

‘‘Sec. 45R. Production of vehicles fueled by natural gas or liquified natural 

gas.’’. 

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

21 this section shall apply to vehicles produced after Decem22 ber 31, 2008. 


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1 TITLE II—CONSERVATION 

2 Subtitle A—Conservation 

3 SEC. 2001. PERMANENT EXTENSION OF THE CREDIT FOR 

4 NONBUSINESS ENERGY PROPERTY, THE 

5 CREDIT FOR GAS PRODUCED FROM BIOMASS 

6 AND FOR SYNTHETIC FUELS PRODUCED 

7 FROM COAL, AND THE CREDIT FOR ENERGY 

8 EFFICIENT APPLIANCES. 

9 (a) CREDIT FOR NONBUSINESS ENERGY PROPERTY

10 MADE PERMANENT.— 

11 (1) IN GENERAL.—Section 25C of the Internal 

12 Revenue Code of 1986 is amended by striking sub13 section (g). 

14 (2) EFFECTIVE DATE.—The amendment made 

15 by this subsection shall apply to property placed in 

16 service after December 31, 2008. 

17 (b) CREDIT FOR GAS PRODUCED FROM BIOMASS

18 AND FOR SYNTHETIC FUELS PRODUCED FROM COAL

19 MADE PERMANENT.— 

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

21 45K(f)(1) of such Code is amended to read as fol22 lows: 

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

24 service after December 31, 1992, paragraph (2) 

25 of subsection (e) shall not apply.’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to fuel sold after De3 cember 31, 2008. 

4 (c) EXTENSION OF CREDIT FOR ENERGY EFFICIENT

5 APPLIANCES.— 

6 (1) DISHWASHERS.—Section 45M(b)(1) of such 

7 Code is amended— 

8 (A) in subparagraph (A) by striking ‘‘cal9 endar year 2008 or 2009’’ and inserting ‘‘any 

10 of calendar years 2008 through 2019’’, and 

11 (B) in subparagraph (B) by striking ‘‘cal12 endar year 2008, 2009, or 2010’’ and inserting 

13 ‘‘any of calendar years 2008 through 2020’’. 

14 (2) CLOTHES WASHERS.—Section 45M(b)(2) of 

15 such Code is amended— 

16 (A) in subparagraph (B) by striking ‘‘cal17 endar year 2008 or 2009’’ and inserting ‘‘any 

18 of calendar years 2008 through 2019’’, 

19 (B) in subparagraphs (C) and (D) by 

20 striking ‘‘calendar year 2008, 2009, or 2010’’ 

21 both places it appears and inserting ‘‘any of 

22 calendar years 2008 through 2020’’. 

23 (3) REFRIGERATORS.—Section 45M(b)(3) of 

24 such Code is amended— 


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1 (A) in subparagraph (B) by striking ‘‘cal2 endar year 2008 or 2009’’ and inserting ‘‘any 

3 of calendar years 2008 through 2019’’, and 

4 (B) in subparagraphs (C) and (D) by 

5 striking ‘‘calendar year 2008, 2009, or 2010’’ 

6 both places it appears and inserting ‘‘any of 

7 calendar years 2008 through 2020’’. 

8 (4) EFFECTIVE DATE.—The amendments made 

9 by this subsection shall apply to appliances manufac10 tured after December 31, 2008. 

11 SEC. 2002. EXTENSION AND CLARIFICATION OF NEW EN12 ERGY EFFICIENT HOME CREDIT. 

13 (a) EXTENSION.—Subsection (g) of section 45L of 

14 the Internal Revenue Code of 1986 (relating to termi15 nation) is amended by striking ‘‘December 31, 2009’’ and 

16 inserting ‘‘December 31, 2013’’. 

17 (b) CLARIFICATION.— 

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

19 45L(a) is amended by striking ‘‘and’’ at the end of 

20 subparagraph (A) and by striking subparagraph (B) 

21 and inserting the following: 

22 ‘‘(B) acquired by a person from such eligi23 ble contractor, and 

24 ‘‘(C) used by any person as a residence 

25 during the taxable year.’’. 


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1 (2) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall take effect as if included in 

3 section 1332 of the Energy Policy Act of 2005. 

4 SEC. 2003. EXTENSION AND MODIFICATION OF DEDUCTION 

5 FOR ENERGY EFFICIENT COMMERCIAL 

6 BUILDINGS. 

7 (a) EXTENSION.—Subsection (h) of section 179D of 

8 the Internal Revenue Code of 1986 (relating to termi9 nation) is amended to read as follows: 

10 ‘‘(h) TERMINATION.—This section shall not apply 

11 with respect to property— 

12 ‘‘(1) which is certified under subsection (d)(6) 

13 after December 31, 2012, or 

14 ‘‘(2) which is placed in service after December 

15 31, 2014. 

16 A provisional certification shall be treated as meeting the 

17 requirements of paragraph (1) if it is based on the build18 ing plans, subject to inspection and testing after installa19 tion.’’. 

20 (b) INCREASE IN MAXIMUM AMOUNT OF DEDUC21 TION.— 

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

23 179D(b)(1) of such Code is amended by striking 

24 ‘‘$1.80’’ and inserting ‘‘$2.25’’. 


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

2 section 179D(d) of such Code is amended— 

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

4 ‘‘$0.75’’, and 

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

6 ‘‘$2.25’’. 

7 (c) MODIFICATIONS TO CERTAIN SPECIAL RULES.— 

8 (1) METHODS OF CALCULATING ENERGY SAV9 INGS.— 

10 (A) IN GENERAL.—Paragraph (2) of sec11 tion 179D(d) of such Code is amended— 

12 (i) by inserting ‘‘, except that the Sec13 retary shall use Standard 90.1–2001 in 

14 lieu of the California title 24 energy stand15 ards and the tables contained therein and 

16 the Secretary may add requirements from 

17 Standard 90.1–2001 (or any successor 

18 standard)’’ before the period at the end, 

19 and 

20 (ii) by adding at the end the following 

21 new sentence: ‘‘The calculation methods 

22 contained in such regulations shall also 

23 provide for the calculation of appropriate 

24 energy savings for design methods and 

25 technologies not otherwise credited in such 


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1 manual or standard, including energy sav2 ings associated with natural ventilation, 

3 evaporative cooling, automatic lighting con4 trols (such as occupancy sensors, 

5 photocells, and time clocks), day lighting, 

6 designs utilizing semi-conditioned spaces 

7 which maintain adequate comfort condi8 tions without air conditioning or without 

9 heating, improved fan system efficiency 

10 (including reductions in static pressure), 

11 advanced unloading mechanisms for me12 chanical cooling (such as multiple or vari13 able speed compressors), on-site generation 

14 of electricity (including combined heat and 

15 power systems, fuel cells, and renewable 

16 energy generation such as solar energy), 

17 and wiring with lower energy losses than 

18 wiring satisfying Standard 90.1–2001 re19 quirements for building power distribution 

20 systems.’’. 

21 (B) REQUIREMENTS FOR COMPUTER SOFT22 WARE USED IN CALCULATING ENERGY AND

23 POWER CONSUMPTION COSTS.—Paragraph 

24 (3)(B) of section 179D(d) of such Code is 

25 amended by striking ‘‘and’’ at the end of clause 


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1 (ii), by striking the period at the end of clause 

2 (iii) and inserting ‘‘, and’’, and by adding at the 

3 end the following: 

4 ‘‘(iv) which automatically— 

5 ‘‘(I) generates the features, en6 ergy use, and energy and power con7 sumption costs of a reference building 

8 which meets Standard 90.1–2001, 

9 ‘‘(II) generates the features, en10 ergy use, and energy and power con11 sumption costs of a compliant build12 ing or system which reduces the an13 nual energy and power costs by 50 

14 percent compared to Standard 90.1– 

15 2001, and 

16 ‘‘(III) compares such features, 

17 energy use, and consumption costs to 

18 the features, energy use, and con19 sumption costs of the building or sys20 tem with respect to which the calcula21 tion is being made.’’. 

22 (2) TARGETS FOR PARTIAL ALLOWANCE OF

23 CREDIT.—Paragraph (1)(B) of section 179D(d) of 

24 such Code is amended— 


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1 (A) by striking ‘‘The Secretary’’ and in2 serting the following: 

3 ‘‘(i) IN GENERAL.—The Secretary’’, 

4 and 

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

6 ‘‘(ii) ADDITIONAL REQUIREMENTS.— 

7 For purposes of clause (i)— 

8 ‘‘(I) the Secretary shall deter9 mine prescriptive criteria that can be 

10 modeled explicitly for reference build11 ings which meet the requirements of 

12 subsection (c)(1)(D) for different 

13 building types and regions, 

14 ‘‘(II) a system may be certified 

15 as meeting the target under subpara16 graph (A)(ii) if the appropriate ref17 erence building either meets the re18 quirements of subsection (c)(1)(D) 

19 with such system rather than the 

20 comparable reference system (using 

21 the calculation under paragraph (2)) 

22 or meets the relevant prescriptive cri23 teria under subclause (I), and 

24 ‘‘(III) the lighting system target 

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1 sity, except that it shall allow lighting 

2 controls credits that trade off for 

3 lighting power density savings based 

4 on section 3.2.2 of the 2005 Cali5 fornia Nonresidential Alternative Cal6 culation Method Approval Manual. 

7 ‘‘(B) PUBLICATION.—The Secretary shall 

8 publish in the Federal Register the bases for 

9 the target levels established in the regulations 

10 under clause (i).’’. 

11 (d) ALTERNATIVE STANDARDS.—Section 179D(d) of 

12 such Code is amended by adding at the end the following 

13 new paragraph: 

14 ‘‘(7) ALTERNATIVE STANDARDS PENDING

15 FINAL REGULATIONS.—Until such time as the Sec16 retary issues final regulations under paragraph 

17 (1)(B)— 

18 ‘‘(A) in the case of property which is part 

19 of a building envelope, the building envelope 

20 system target under paragraph (1)(A)(ii) shall 

21 be a 7 percent reduction in total annual energy 

22 and power costs (determined in the same man23 ner as under subsection (c)(1)(D)), and 

24 ‘‘(B) in the case of property which is part 

25 of the heating, cooling, ventilation, and hot 


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1 water systems, the heating, cooling, ventilation, 

2 and hot water system shall be treated as meet3 ing the target under paragraph (1)(A)(ii) if it 

4 would meet the requirement in subsection 

5 (c)(1)(D) if combined with a building envelope 

6 system and lighting system which met their re7 spective targets under paragraph (1)(A)(ii) (in8 cluding interim targets in effect under sub9 section (f) and subparagraph (A)).’’. 

10 (e) MODIFICATIONS TO LIGHTING STANDARDS.— 

11 (1) STANDARDS TO BE ALTERNATE STAND12 ARDS.—Subsection (f) of section 179D of such Code 

13 is amended by— 

14 (A) striking ‘‘Interim’’ in the heading and 

15 inserting ‘‘Alternative’’, and 

16 (B) inserting ‘‘, or, if the taxpayer elects, 

17 in lieu of the target set forth in such final regu18 lations’’ after ‘‘lighting system’’ at the end of 

19 the matter preceding paragraph (1). 

20 (2) QUALIFIED INDIVIDUALS.—Section 

21 179D(d)(6)(C) of such Code is amended by adding 

22 at the end the following: ‘‘For purposes of certifi23 cation of whether the alternative target for lighting 

24 systems under subsection (f) is met, individuals 

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1 viduals who are certified as Lighting Certified (LC) 

2 by the National Council on Qualifications for the 

3 Lighting Professions, Certified Energy Managers 

4 (CEM) by the Association of Energy Engineers, and 

5 LEED Accredited Professionals (AP) by the U.S. 

6 Green Buildings Council.’’. 

7 (3) REQUIREMENT FOR BILEVEL SWITCHING.— 

8 Section 179D(f)(2) of such Code is amended by add9 ing at the end the following new subparagraph: 

10 ‘‘(3) APPLICATION OF SUBSECTION TO BILEVEL

11 SWITCHING.— 

12 ‘‘(A) IN GENERAL.—Notwithstanding para13 graph (2)(C)(i), this subsection shall apply to a 

14 system which does not include provisions for 

15 bilevel switching if the reduction in lighting 

16 power density is at least 37.5 percent of the 

17 minimum requirements in Table 9.3.1.1 or 

18 Table 9.3.1.2 (not including additional interior 

19 lighting allowances) of Standard 90.1–2001. 

20 ‘‘(B) REDUCTION IN DEDUCTION.—In the 

21 case of a system to which this subsection ap22 plies by reason of subparagraph (A), paragraph 

23 (2) shall be applied— 


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1 ‘‘(i) by striking ‘40 percent’ and in2 serting ‘50 percent’ in subparagraph (A) 

3 thereof, and 

4 ‘‘(ii) in subparagraph (B)(ii) there5 of— 

6 ‘‘(I) by striking ‘25 percentage 

7 points’ and inserting ‘37.5 percentage 

8 points’; and 

9 ‘‘(II) by striking ‘15’ and insert10 ing ‘12.5’.’’. 

11 (f) PUBLIC PROPERTY.—Paragraph (4) of section 

12 179(d) of such Code is amended by striking ‘‘the Sec13 retary shall promulgate a regulation to allow the allocation 

14 of the deduction’’ and inserting ‘‘the deduction under this 

15 section shall be allowed’’. 

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

17 this section shall apply to property placed in service in 

18 taxable years beginning after the date of the enactment 

19 of this Act. 

20 SEC. 2004. DEDUCTION FOR ENERGY EFFICIENT LOW-RISE 

21 BUILDINGS. 

22 (a) IN GENERAL.—Part VI of subchapter B of chap23 ter 1 of the Internal Revenue Code of 1986 is amended 

24 by inserting after section 179E the following new section: 


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1 ‘‘SEC. 179F. ENERGY EFFICIENT LOW-RISE BUILDINGS DE2 DUCTION. 

3 ‘‘(a) IN GENERAL.—There shall be allowed as a de4 duction an amount equal to the amount of qualified energy 

5 efficiency expenditures paid or incurred by the taxpayer 

6 during the taxable year. 

7 ‘‘(b) LIMITATIONS.— 

8 ‘‘(1) IN GENERAL.—The amount allowed as a 

9 credit under subsection (a) with respect to any 

10 dwelling unit shall not exceed the product of— 

11 ‘‘(A) the qualified energy savings achieved, 

12 and 

13 ‘‘(B) $12,000. 

14 ‘‘(2) MINIMUM AMOUNT OF QUALIFIED ENERGY

15 SAVINGS.—No credit shall be allowed under sub16 section (a) with respect to any dwelling unit in a 

17 qualified low-rise building which achieves a qualified 

18 energy savings of less than 20 percent. 

19 ‘‘(c) QUALIFIED ENERGY EFFICIENCY EXPENDI20 TURES.—For purposes of this section— 

21 ‘‘(1) IN GENERAL.—The term ‘qualified energy 

22 efficiency expenditures’ means any amount paid or 

23 incurred which is related to producing qualified en24 ergy savings in any dwelling unit located in a quali25 fied low-rise building of the taxpayer which is lo26 cated in the United States. 


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1 ‘‘(2) NO DOUBLE BENEFIT FOR CERTAIN EX2 PENDITURES.—The term ‘qualified energy efficiency 

3 expenditures’ shall not include any expenditure for 

4 any property for which a deduction has been allowed 

5 to the taxpayer under section 179G. 

6 ‘‘(3) QUALIFIED LOW-RISE BUILDING.—The 

7 term ‘qualified low-rise building’ means a building— 

8 ‘‘(A) with respect to which depreciation is 

9 allowable under section 167, 

10 ‘‘(B) which is used for multifamily hous11 ing, and 

12 ‘‘(C) which is not within the scope of 

13 Standard 90.1–2001 (as defined under section 

14 179D(c)(2)). 

15 ‘‘(d) QUALIFIED ENERGY SAVINGS.—For purposes of 

16 this section— 

17 ‘‘(1) IN GENERAL.—The term ‘qualified energy 

18 savings’ means, with respect to any dwelling unit in 

19 a qualified low-rise building, the amount (measured 

20 as a percentage) by which— 

21 ‘‘(A) the annual energy use with respect to 

22 such dwelling unit after qualified energy effi23 ciency expenditures are made, as certified under 

24 paragraph (2), is less than 


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1 ‘‘(B) the annual energy use with respect to 

2 such dwelling unit before the qualified energy 

3 efficiency expenditures were made, as certified 

4 under paragraph (2). 

5 In determining annual energy use under subpara6 graph (B), any energy efficiency improvements 

7 which are not attributable to qualified energy effi8 ciency expenditures shall be disregarded. 

9 ‘‘(2) CERTIFICATION.— 

10 ‘‘(A) IN GENERAL.—The Secretary, in con11 sultation with the Secretary of Energy, shall 

12 prescribe the procedures and method for the 

13 making of certifications under this paragraph 

14 based on the Residential Energy Services Net15 work (RESNET) Technical Guidelines in effect 

16 on the date of the enactment of this Act. 

17 ‘‘(B) QUALIFIED INDIVIDUALS.—Any cer18 tification made under this paragraph may only 

19 be made by an individual who is recognized by 

20 an organization certified by the Secretary for 

21 such purposes. 

22 ‘‘(e) SPECIAL RULES.—For purposes of this section, 

23 rules similar to the rules under paragraphs (8) and (9) 

24 of section 25D(e) shall apply. 


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1 ‘‘(f) BASIS ADJUSTMENTS.—For purposes of this 

2 subtitle, if a credit is allowed under this section with re3 spect to any expenditure with respect to any property, the 

4 increase in the basis of such property which would (but 

5 for this subsection) result from such expenditure shall be 

6 reduced by the amount of the credit so allowed. 

7 ‘‘(g) TERMINATION.—This section shall not apply 

8 with respect to any property placed in service after Decem9 ber 31, 2013.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 263(a)(1) of such Code is amended 

12 by striking ‘‘or’’ at the end of subparagraph (K), by 

13 striking the period at the end of subparagraph (L) 

14 and inserting ‘‘, or’’, and by inserting after subpara15 graph (L) the following new subparagraph: 

16 ‘‘(M) expenditures for which a deduction is 

17 allowed under section 179F.’’. 

18 (2) Section 312(k)(3)(B) of such Code is 

19 amended by striking ‘‘179, 179A, 179B, 179C, 

20 179D, or 179E’’ each place it appears in the head21 ing and text and inserting ‘‘179, 179A, 179B, 179C, 

22 179D, 179E, or 179F’’. 

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

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

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


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1 inserting ‘‘, and’’, and by adding at the end the fol2 lowing new paragraph: 

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

4 179F(f).’’. 

5 (4) Section 1245(a) of such Code is amended 

6 by inserting ‘‘179F,’’ after ‘‘179E,’’ both places it 

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

8 (5) The table of sections for part VI of sub9 chapter B of such Code is amended by inserting 

10 after the item relating to section 179E the following 

11 new item: 

‘‘Sec. 179F. Energy efficient low-rise buildings deduction.’’. 

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

13 this section shall apply to amounts paid or incurred in tax14 able years beginning after the date of the enactment of 

15 this Act. 

16 Subtitle B—Clean Coal Alternative 

17 Transition 

18 SEC. 2101. CARBON DIOXIDE STORAGE CAPACITY ASSESS19 MENT. 

20 (a) DEFINITIONS.—In this section: 

21 (1) ASSESSMENT.—The term ‘‘assessment’’ 

22 means the national assessment of capacity for car23 bon dioxide completed under subsection (f). 

24 (2) CAPACITY.—The term ‘‘capacity’’ means the 

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1 bon dioxide in accordance with the requirements (in2 cluding physical, geological, and economic require3 ments) established under the methodology developed 

4 under subsection (b). 

5 (3) ENGINEERED HAZARD.—The term ‘‘engi6 neered hazard’’ includes the location and completion 

7 history of any well that could affect potential stor8 age. 

9 (4) RISK.—The term ‘‘risk’’ includes any risk 

10 posed by geomechanical, geochemical, 

11 hydrogeological, structural, and engineered hazards. 

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

13 the Secretary of the Interior, acting through the Di14 rector of the United States Geological Survey. 

15 (6) STORAGE FORMATION.—The term ‘‘storage 

16 formation’’ means a deep saline formation, 

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

18 capable of accommodating a volume of industrial 

19 carbon dioxide. 

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

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

22 a methodology for conducting an assessment under sub23 section (f), taking into consideration— 

24 (1) the geographical extent of all potential stor25 age formations in all States; 


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1 (2) the capacity of the potential storage forma2 tions; 

3 (3) the injectivity of the potential storage for4 mations; 

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

6 gas recoverable by injection and storage of industrial 

7 carbon dioxide in potential storage formations; 

8 (5) the risk associated with the potential stor9 age formations; and 

10 (6) the Carbon Sequestration Atlas of the 

11 United States and Canada that was completed by 

12 the Department of Energy in April 2006. 

13 (c) COORDINATION.— 

14 (1) FEDERAL COORDINATION.— 

15 (A) CONSULTATION.—The Secretary shall 

16 consult with the Secretary of Energy and the 

17 Administrator of the Environmental Protection 

18 Agency on issues of data sharing, format, devel19 opment of the methodology, and content of the 

20 assessment required under this title to ensure 

21 the maximum usefulness and success of the as22 sessment. 

23 (B) COOPERATION.—The Secretary of En24 ergy and the Administrator shall cooperate with 

25 the Secretary to ensure, to the maximum extent 


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1 practicable, the usefulness and success of the 

2 assessment. 

3 (2) STATE COORDINATION.—The Secretary 

4 shall consult with State geological surveys and other 

5 relevant entities to ensure, to the maximum extent 

6 practicable, the usefulness and success of the assess7 ment. 

8 (d) EXTERNAL REVIEW AND PUBLICATION.—On 

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

10 Secretary shall— 

11 (1) publish the methodology and solicit com12 ments from the public and the heads of affected 

13 Federal and State agencies; 

14 (2) establish a panel of individuals with exper15 tise in the matters described in paragraphs (1) 

16 through (5) of subsection (b) composed, as appro17 priate, of representatives of Federal agencies, insti18 tutions of higher education, nongovernmental organi19 zations, State organizations, industry, and inter20 national geoscience organizations to review the 

21 methodology and comments received under para22 graph (1); and 

23 (3) on completion of the review under para24 graph (2), publish in the Federal Register the re25 vised final methodology. 


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1 (e) PERIODIC UPDATES.—The methodology devel2 oped under this section shall be updated periodically (in3 cluding at least once every 5 years) to incorporate new 

4 data as the data becomes available. 

5 (f) NATIONAL ASSESSMENT.— 

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

7 the date of publication of the methodology under 

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

9 the Secretary of Energy and State geological sur10 veys, shall complete a national assessment of capac11 ity for carbon dioxide in accordance with the meth12 odology. 

13 (2) GEOLOGICAL VERIFICATION.—As part of 

14 the assessment under this subsection, the Secretary 

15 shall carry out a drilling program to supplement the 

16 geological data relevant to determining storage ca17 pacity of carbon dioxide in geological storage forma18 tions, including— 

19 (A) well log data; 

20 (B) core data; and 

21 (C) fluid sample data. 

22 (3) PARTNERSHIP WITH OTHER DRILLING PRO23 GRAMS.—As part of the drilling program under 

24 paragraph (2), the Secretary shall enter, as appro25 priate, into partnerships with other entities to collect 


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1 and integrate data from other drilling programs rel2 evant to the storage of carbon dioxide in geologic 

3 formations. 

4 (4) INCORPORATION INTO NATCARB.— 

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

6 assessment, the Secretary of Energy shall incor7 porate the results of the assessment using the 

8 NatCarb database, to the maximum extent 

9 practicable. 

10 (B) RANKING.—The database shall include 

11 the data necessary to rank potential storage 

12 sites for capacity and risk, across the United 

13 States, within each State, by formation, and 

14 within each basin. 

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

16 the date on which the assessment is completed, the 

17 Secretary shall submit to the Committee on Energy 

18 and Natural Resources of the Senate and the Com19 mittee on Science and Technology of the House of 

20 Representatives a report describing the findings 

21 under the assessment. 

22 (6) PERIODIC UPDATES.—The national assess23 ment developed under this section shall be updated 

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

25 support public and private sector decisionmaking. 


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1 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $30,000,000 for the period of fiscal years 2009 through 

4 2013. 

5 SEC. 2102. EFFICIENCY AUDIT AND QUANTIFICATION. 

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

7 date of enactment of this Act, the Secretary of Energy 

8 (referred to in this section as the ‘‘Secretary’’) shall con9 duct an efficiency audit, and quantify the operating effi10 ciencies, of all coal-fired electric generation facilities in the 

11 United States. 

12 (b) REPORT.—Not later than 180 days after the date 

13 of completion of the audit and quantification under sub14 section (a), the Secretary, in consultation with the Admin15 istrator of the Environmental Protection Agency, shall 

16 submit to the Committees on Energy and Natural Re17 sources and Environment and Public Works of the Senate 

18 and the Committee on Energy and Commerce of the 

19 House of Representatives, a report that— 

20 (1) identifies all commercially available tech21 nologies, processes, and other approaches to increas22 ing the efficiency of the coal-fired electric generation 

23 facilities audited; 

24 (2) includes a methodology for determining 

25 which technologies and processes, in the absence of 


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1 the obstacles identified under paragraph (3), would 

2 be sufficiently cost effective to recoup all costs of the 

3 technologies and processes in not more than 5 years 

4 after the date of installation or implementation, re5 spectively, of the technologies or processes; 

6 (3) identifies the technical, economic, regu7 latory, environmental, and other obstacles to coal8 fired electric generation facilities undertaking the in9 stallation of the technologies or incorporation of the 

10 processes described in paragraph (2); 

11 (4) includes recommendations as to legislative, 

12 administrative, and other actions that could reduce 

13 or eliminate the obstacles identified under paragraph 

14 (3); and 

15 (5) includes calculations of— 

16 (A) the additional power to be expected 

17 from the installation or implementation of those 

18 technologies and processes that are considered 

19 to be economic under the methodology described 

20 in paragraph (2); and 

21 (B) the greenhouse gas emissions that are 

22 or could be avoided through installation or im23 plementation of those technologies and proc24 esses. 


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1 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated such sums as are nec3 essary to carry out this section. 

4 Subtitle C—Natural Gas Transition 

5 SEC. 2201. EXTENSION OF ALTERNATIVE VEHICLE CREDIT 

6 PURCHASE OF NATURAL GAS POWERED VE7 HICLE FROM 2010 TILL 2020; INCREASE IN 

8 AMOUNT OF CREDIT FOR CARS. 

9 (a) EXTENSION.—Section 30B(k)(4) of the Internal 

10 Revenue Code of 1986 is amended by striking ‘‘2010’’ and 

11 inserting ‘‘2020’’. 

12 (b) INCREASE IN CREDIT AMOUNT FOR CARS.— 

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

14 (30)(B)(e)(3) of such Code is amended by striking 

15 ‘‘$5,000’’ and inserting ‘‘$8,000’’. 

16 (2) EFFECTIVE DATE.—The amendment made 

17 by paragraph (1) shall apply to property purchased 

18 after December 31, 2008. 


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1 SEC. 2202. EXTENSION OF CREDIT OF 50 PERCENT OF THE 

2 AUTO CONVERSION COST TO A NATURAL GAS 

3 POWERED AUTOMOBILE FROM GASOLINE OR 

4 DIESEL POWERED ENGINE AND THE CNG 

5 HOME FILLING STATION COST. 

6 (a) AUTO CONVERSION.—Section 30B(k)(4) of the 

7 Internal Revenue Code is amended by striking ‘‘2010’’ 

8 and inserting ‘‘2020’’. 

9 (b) CNG HOME FILLING STATION.—Section 

10 30C(e)(6) of such Code is amended— 

11 (1) in the text by striking ‘‘2011’’ and inserting 

12 ‘‘2021’’, and 

13 (2) in the heading by striking ‘‘and 2010’’ and 

14 inserting ‘‘through 2020’’. 

15 Subtitle D—Carbon Capture and 

16 Storage Credit 

17 SEC. 2301. INCREASE IN CARBON CAPTURE AND STORAGE 

18 TAX CREDIT. 

19 (a) APPLICATION OF SECTION.—Section 45Q(e) of 

20 the Internal Revenue Code of 1986 is amended by striking 

21 ‘‘75,000,000’’ and inserting ‘‘225,000,000’’. 

22 (b) INCREASE IN CREDIT AMOUNT.— 

23 (1) Section 45(a) of such Code is amended— 

24 (A) in paragraph (1) by striking ‘‘$20’’ 

25 and inserting ‘‘$50’’, and 


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1 (B) in paragraph (2) by striking ‘‘$10’’ 

2 and inserting ‘‘$40’’. 

3 (2) CONFORMING AMENDMENT.—Section 

4 45Q(d)(7) of such Code is amended— 

5 (A) by striking ‘‘2009’’ and inserting 

6 ‘‘2010’’, and 

7 (B) by striking ‘‘2008’’ and inserting 

8 ‘‘2009’’. 

9 TITLE III—PRODUCTION 

10 Subtitle A—Outer Continental 

11 Shelf 

12 SEC. 3001. END MORATORIUM OF OIL AND GAS LEASING IN 

13 CERTAIN AREAS OF THE GULF OF MEXICO. 

14 (a) REPEAL OF MORATORIUM.— 

15 (1) REPEAL.—Section 104 of the Gulf of Mex16 ico Energy Security Act of 2006 (43 U.S.C. 1331 

17 note; Public Law 109–432) is repealed. 

18 (2) NATIONAL DEFENSE AREA.—Section 12(d) 

19 of the Outer Continental Shelf Lands Act (43 

20 U.S.C. 1341(d)) is amended— 

21 (A) by striking ‘‘(d) The United States’’ 

22 and inserting the following: 

23 ‘‘(d) RESTRICTION OF AREAS FOR NATIONAL DE24 FENSE.— 

25 ‘‘(1) IN GENERAL.—The United States’’; and 


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

2 ‘‘(2) REVIEW.—Annually, the Secretary of De3 fense shall review the areas of the outer Continental 

4 Shelf that have been designated as restricted from 

5 exploration and operation to determine whether the 

6 areas should remain under restriction.’’. 

7 (b) LEASING OF MORATORIUM AREAS.— 

8 (1) IN GENERAL.—As soon as practicable, but 

9 not later than 1 year, after the date of enactment 

10 of this Act, the Secretary shall offer for leasing 

11 under the Outer Continental Shelf Lands Act (43 

12 U.S.C. 1331 et seq.), any areas made available for 

13 leasing as a result of the enactment of subsection 

14 (a). 

15 (2) LEASING PLAN.—Any areas made available 

16 for leasing under paragraph (1) shall be offered for 

17 lease under this section notwithstanding the omis18 sion of any of these respective areas from the appli19 cable 5-year plan developed by the Secretary pursu20 ant to section 18 of the Outer Continental Shelf 

21 Lands Act (43 U.S.C. 1344). 

22 (c) MILITARY MISSION.—Section 104 of the Gulf of 

23 Mexico Energy Security Act of 2006 (43 U.S.C. 1331 

24 note; Public Law 109–432) is further amended— 


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1 (1) by striking ‘‘(b) MILITARY MISSION

2 LINE.—Notwithstanding subsection (a), the’’ and in3 serting ‘‘(c) MILITARY MISSION.—’’; 

4 (2) by redesignating subsection (c) as sub5 section (b); 

6 (3) in subsection (b)(1), as so redesignated, by 

7 striking ‘‘paragraph (2) or (3) of subsection (a)’’ 

8 and inserting ‘‘paragraph (5)’’; and 

9 (4) by adding at the end the following: 

10 ‘‘(5) AREAS DESCRIBED.—The areas referred to 

11 in paragraph (1) are— 

12 ‘‘(A) any area in the Eastern Planning 

13 Area that is within 125 miles of the coastline 

14 of the State of Florida; and 

15 ‘‘(B) any area in the Central Planning 

16 Area that is— 

17 ‘‘(i) within— 

18 ‘‘(I) the 181 Area; and 

19 ‘‘(II) 100 miles of the coastline 

20 of the State of Florida; or 

21 ‘‘(ii)(I) outside the 181 Area; 

22 ‘‘(II) east of the western edge of the 

23 Pensacola Official Protraction Diagram 

24 (UTM X coordinate 1,393,920 (NAD 27 

25 feet)); and 


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1 ‘‘(III) within 100 miles of the coast2 line of the State of Florida.’’. 

3 SEC. 3002. OUTER CONTINENTAL SHELF DIRECTED LEASE 

4 SALES. 

5 (a) 209 LEASE SALE.—The Secretary of the Interior 

6 (referred to in this section as the ‘‘Secretary’’) shall offer 

7 the Beaufort Sea Program Area for oil and gas leasing 

8 pursuant to the Outer Continental Shelf Lands Act (43 

9 U.S.C. 1331 et seq.) in 2010 as established in the 2007– 

10 2012 Lease Sale Schedule. 

11 (b) 210 LEASE SALE.—The Secretary shall offer the 

12 Western Gulf of Mexico Program Area for oil and gas leas13 ing pursuant to the Outer Continental Shelf Lands Act 

14 (43 U.S.C. 1331 et seq.) in 2009 as established in the 

15 2007–2012 Lease Sale Schedule. 

16 (c) 212 LEASE SALE.—The Secretary shall offer the 

17 Chukchi Sea Program Area for oil and gas leasing pursu18 ant to the Outer Continental Shelf Lands Act (43 U.S.C. 

19 1331 et seq.) in 2010 as established in the 2007–2012 

20 Lease Sale Schedule. 

21 (d) 213 LEASE SALE.—The Secretary shall offer the 

22 Central Gulf of Mexico Program Area for oil and gas leas23 ing pursuant to the Outer Continental Shelf Lands Act 

24 (43 U.S.C. 1331 et seq.) in 2010 as established in the 

25 2007–2012 Lease Sale Schedule. 


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1 (e) 215 LEASE SALE.—The Secretary shall offer the 

2 Western Gulf of Mexico Program Area for oil and gas leas3 ing pursuant to the Outer Continental Shelf Lands Act 

4 (43 U.S.C. 1331 et seq.) in 2010 as established in the 

5 2007–2012 Lease Sale Schedule. 

6 (f) 216 LEASE SALE.—The Secretary shall offer the 

7 Central Gulf of Mexico Program Area for oil and gas leas8 ing pursuant to the Outer Continental Shelf Lands Act 

9 (43 U.S.C. 1331 et seq.) in 2011 as established in the 

10 2007–2012 Lease Sale Schedule. 

11 (g) 217 LEASE SALE.—The Secretary shall offer the 

12 Beaufort Sea Program Area for oil and gas leasing pursu13 ant to the Outer Continental Shelf Lands Act (43 U.S.C. 

14 1331 et seq.) in 2011 as established in the 2007–2012 

15 Lease Sale Schedule. 

16 (h) 214 LEASE SALE.—The Secretary shall offer the 

17 North Aleutian Basin Program Area for oil and gas leas18 ing pursuant to the Outer Continental Shelf Lands Act 

19 (43 U.S.C. 1331 et seq.) in 2011 as established in the 

20 2007–2012 Lease Sale Schedule. 

21 (i) 218 LEASE SALE.—The Secretary shall offer the 

22 Western Gulf of Mexico Program Area for oil and gas leas23 ing pursuant to the Outer Continental Shelf Lands Act 

24 (43 U.S.C. 1331 et seq.) in 2011 as established in the 

25 2007–2012 Lease Sale Schedule. 


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1 (j) 219 LEASE SALE.—The Secretary shall offer the 

2 Cook Inlet Program Area for oil and gas leasing pursuant 

3 to the Outer Continental Shelf Lands Act (43 U.S.C. 1331 

4 et seq.) in 2011 as established in the 2007–2012 Lease 

5 Sale Schedule. 

6 (k) 220 LEASE SALE.—The Secretary shall offer the 

7 Mid-Atlantic Program Area for oil and gas leasing pursu8 ant to the Outer Continental Shelf Lands Act (43 U.S.C. 

9 1331 et seq.) in 2011 as established in the 2007–2012 

10 Lease Sale Schedule. 

11 (l) 221 LEASE SALE.—The Secretary shall offer the 

12 Chukchi Sea Program Area for oil and gas leasing pursu13 ant to the Outer Continental Shelf Lands Act (43 U.S.C. 

14 1331 et seq.) in 2012 as established in the 2007–2012 

15 Lease Sale Schedule. 

16 (m) 222 LEASE SALE.—The Secretary shall offer the 

17 Central Gulf of Mexico Program Area for oil and gas leas18 ing pursuant to the Outer Continental Shelf Lands Act 

19 (43 U.S.C. 1331 et seq.) in 2012 as established in the 

20 2007–2012 Lease Sale Schedule. 

21 SEC. 3003. LEASING PROGRAM CONSIDERED APPROVED. 

22 (a) IN GENERAL.—The Draft Proposed Outer Conti23 nental Shelf Oil and Gas Leasing Program 2010–2015 

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

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


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1 Continental Shelf Lands Act (43 U.S.C. 1344) is consid2 ered to have been approved by the Secretary as a final 

3 oil and gas leasing program under that section. 

4 (b) FINAL ENVIRONMENTAL IMPACT STATEMENT.— 

5 The Secretary is considered to have issued a final environ6 mental impact statement for the program described in 

7 subsection (a) in accordance with all of the requirements 

8 of sections 18, 19, and 20 of the Outer Continental Shelf 

9 Lands Act (43 U.S.C. 1344, 1345, and 1346), in accord10 ance with all requirements under section 102(2)(C) of the 

11 National Environmental Policy Act of 1969 (42 U.S.C. 

12 4332(2)(C)), and in accordance with all requirements of 

13 the Coastal Zone Management Act of 1972 (16 U.S.C. 

14 1451 et seq.) 

15 SEC. 3004. OUTER CONTINENTAL SHELF LEASE SALES. 

16 (a) REQUIREMENT TO CONDUCT LEASE SALES.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), not later than one year after the date of 

19 enactment of this Act and annually thereafter, the 

20 Secretary of the Interior (referred to in this section 

21 as the ‘‘Secretary’’) shall conduct at a minimum one 

22 lease sale in an Atlantic Planning Area, one lease 

23 sale in the Pacific Planning Area, one lease sale in 

24 the Alaska Planning Area, and three lease sales in 

25 a Gulf of Mexico Planning Area for which the SecVerDate Nov 24 2008 18:41 Jun 13, 2009 Jkt 079200 PO 00000 Frm 00120 Fmt 6652 Sfmt 6201 E:\BILLS\H2828.IH H2828

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1 retary determines that there is a commercial interest 

2 in purchasing Federal oil and gas leases for produc3 tion on the outer Continental Shelf. 

4 (2) SUBSEQUENT DETERMINATIONS AND

5 SALES.—If the Secretary determines that there is 

6 not a commercial interest in purchasing Federal oil 

7 and gas leases for production on the outer Conti8 nental Shelf in a planning area under this sub9 section, not later than 2 years after the date of en10 actment of the determination and every 2 years 

11 thereafter, the Secretary shall— 

12 (A) determine whether there is a commer13 cial interest in purchasing Federal oil and gas 

14 leases for production on the outer Continental 

15 Shelf in the planning area; and 

16 (B) if the Secretary determines that there 

17 is a commercial interest described in subpara18 graph (A), conduct a lease sale in the planning 

19 area 

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

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

22 under this section notwithstanding the omission of any of 

23 these respective areas from the applicable 5-year plan de24 veloped by the Secretary pursuant to section 18 of the 

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


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1 SEC. 3005. RESTRICTIONS ON LEASING OF THE OUTER CON2 TINENTAL SHELF. 

3 (a) STATE OPT-OUT.—No lease authorizing a perma4 nent surface energy project for the exploration, develop5 ment, or production of oil or gas may be issued for any 

6 area of the outer Continental Shelf located within 10 miles 

7 of the coastline of a State if the State has notified the 

8 Secretary of the Interior that the State does not want to 

9 participate in such leasing. 

10 (b) EXISTING LEASES NOT AFFECTED.—This sec11 tion shall not affect any lease issued before the date of 

12 enactment of this Act. 

13 SEC. 3006. SHARING OF OCS RECEIPTS WITH STATES AND 

14 LOCAL GOVERNMENTS. 

15 Section 9 of the Outer Continental Shelf Lands Act 

16 (43 U.S.C. 1338) is amended as follows: 

17 (1) By designating the existing text as sub18 section (a). 

19 (2) In subsection (a) (as so designated) by in20 serting ‘‘, if not paid as otherwise provided in this 

21 title’’ after ‘‘receipts’’. 

22 (3) by adding the following: 

23 ‘‘(b) TREATMENT OF OCS RECEIPTS.— 

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

25 into a separate account in the Treasury the portion 


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1 of OCS Receipts for each fiscal year that will be 

2 shared under paragraph (2). 

3 ‘‘(2) IMMEDIATE RECEIPTS SHARING.—Begin4 ning October 1, 2009, the Secretary shall share 50 

5 percent of OCS Receipts derived from all leases, ex6 cept that the Secretary shall only share 25 percent 

7 of such OCS Receipts derived from all such leases 

8 within a State’s Adjacent Zone if leasing is not al9 lowed within at least 25 percent of that State’s Ad10 jacent Zone located completely within 75 miles of 

11 any coastline. 

12 ‘‘(3) ALLOCATIONS.—The Secretary shall allo13 cate the OCS Receipts deposited into the separate 

14 account established by paragraph (1) that are 

15 shared under paragraph (2) as follows: 

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

17 bonus bids from a leased tract, including inter18 est thereon, shall be allocated at the end of 

19 each fiscal year to the Adjacent State. 

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

21 royalties and net profit shares from a leased 

22 tract, including interest thereon, shall be allo23 cated at the end of each fiscal year as follows: 

24 ‘‘(i) 50 percent to the Adjacent State. 


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1 ‘‘(ii) 50 percent to all States, includ2 ing the Adjacent State, having a coastline 

3 point within 300 miles of the leased tract, 

4 divided equally, if such State allows leasing 

5 within at least 25 percent of its Adjacent 

6 Zone within 75 miles of the coastline. 

7 ‘‘(C) LIMITATION IF NOT ADMITTED TO

8 THE UNION AS A STATE.—Any entity defined as 

9 a ‘State’ under section 2(r), that has not been 

10 admitted to the Union as a State shall only be 

11 entitled to one-half of a ‘State’ share under this 

12 paragraph. 

13 ‘‘(c) TRANSMISSION OF ALLOCATIONS.— 

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

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

16 transmit— 

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

18 State’s allocations under subsections (b)(2), 

19 (b)(3)(A), and (b)(3)(B) (i) and (ii) for the im20 mediate prior fiscal year; and 

21 ‘‘(B) to each coastal county-equivalent and 

22 municipal political subdivisions of such State a 

23 total of 40 percent of such State’s allocations 

24 under subsections (b)(2), (b)(3)(A), and 

25 (b)(3)(B) (i) and (ii), for the immediate prior 


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1 fiscal year, together with all accrued interest 

2 thereon. 

3 ‘‘(2) ALLOCATIONS TO COASTAL COUNTY4 EQUIVALENT POLITICAL SUBDIVISIONS.—The Sec5 retary shall make an initial allocation of the OCS 

6 Receipts to be shared under paragraph (1)(B) as fol7 lows: 

8 ‘‘(A) 25 percent shall be allocated to coast9 al county-equivalent political subdivisions that 

10 are completely more than 25 miles landward of 

11 the coastline and at least a part of which lies 

12 not more than 75 miles landward from the 

13 coastline, with the allocation among such coast14 al county-equivalent political subdivisions based 

15 on population. 

16 ‘‘(B) 75 percent shall be allocated to coast17 al county-equivalent political subdivisions that 

18 are completely or partially less than 25 miles 

19 landward of the coastline, with the allocation 

20 among such coastal county-equivalent political 

21 subdivisions to be further allocated as follows: 

22 ‘‘(i) 25 percent shall be allocated 

23 based on the ratio of such coastal county24 equivalent political subdivision’s population 

25 to the coastal population of all coastal 


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1 county-equivalent political subdivisions in 

2 the State. 

3 ‘‘(ii) 25 percent shall be allocated 

4 based on the ratio of such coastal county5 equivalent political subdivision’s coastline 

6 miles to the coastline miles of all coastal 

7 county-equivalent political subdivisions in 

8 the State as calculated by the Secretary. 

9 In such calculations, coastal county-equiva10 lent political subdivisions without a coast11 line shall be considered to have 50 percent 

12 of the average coastline miles of the coast13 al county-equivalent political subdivisions 

14 that do have coastlines. 

15 ‘‘(iii) 50 percent shall be allocated 

16 equally to all coastal county-equivalent po17 litical subdivisions having a coastline point 

18 within 300 miles of the leased tract for 

19 which OCS Receipts are being shared. 

20 ‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO21 LITICAL SUBDIVISIONS.—The initial allocation to 

22 each coastal county-equivalent political subdivision 

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

24 coastal county-equivalent political subdivision and 

25 any coastal municipal political subdivisions located 


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1 partially or wholly within the boundaries of the 

2 coastal county-equivalent political subdivision as fol3 lows: 

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

5 coastal county-equivalent political subdivision. 

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

7 capita basis to the municipal political subdivi8 sions and the county-equivalent political sub9 division, with the allocation to the latter based 

10 upon its population not included within the 

11 boundaries of a municipal political subdivision. 

12 ‘‘(d) INVESTMENT OF DEPOSITS.—Amounts depos13 ited under this section shall be invested by the Secretary 

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

15 credit of the United States having maturities suitable to 

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

17 yielding the highest reasonably available interest rates as 

18 determined by the Secretary of the Treasury. 

19 ‘‘(e) USE OF FUNDS.—A recipient of funds under 

20 this section may use the funds for one or more of the fol21 lowing: 

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

23 institutions of higher learning and otherwise support 

24 public education, including career technical edu25 cation. 


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1 ‘‘(2) To make transportation infrastructure im2 provements. 

3 ‘‘(3) To reduce taxes. 

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

5 ‘‘(A) coastal or environmental restoration; 

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

7 enhancement; 

8 ‘‘(C) waterways construction and mainte9 nance; 

10 ‘‘(D) levee construction and maintenance 

11 and shore protection; and 

12 ‘‘(E) marine and oceanographic education 

13 and research. 

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

15 ‘‘(A) infrastructure associated with energy 

16 production activities conducted on the outer 

17 Continental Shelf; 

18 ‘‘(B) energy demonstration projects; 

19 ‘‘(C) supporting infrastructure for shore20 based energy projects; 

21 ‘‘(D) State geologic programs, including 

22 geologic mapping and data storage programs, 

23 and State geophysical data acquisition; 

24 ‘‘(E) State seismic monitoring programs, 

25 including operation of monitoring stations; 


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

2 through enhanced recovery techniques; 

3 ‘‘(G) alternative energy development, in4 cluding bio fuels, coal-to-liquids, oil shale, tar 

5 sands, geothermal, geopressure, wind, waves, 

6 currents, hydro, and other renewable energy; 

7 ‘‘(H) energy efficiency and conservation 

8 programs; and 

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

10 facilities that produce liquid fuels from hydro11 carbons and other biological matter. 

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

13 ‘‘(A) historic preservation programs and 

14 projects; 

15 ‘‘(B) natural disaster planning and re16 sponse; and 

17 ‘‘(C) hurricane and natural disaster insur18 ance programs. 

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

20 State law. 

21 ‘‘(f) NO ACCOUNTING REQUIRED.—No recipient of 

22 funds under this section shall be required to account to 

23 the Federal Government for the expenditure of such 

24 funds, except as otherwise may be required by law. How25 ever, States may enact legislation providing for accounting 


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1 for and auditing of such expenditures. Further, funds allo2 cated under this section to States and political subdivi3 sions may be used as matching funds for other Federal 

4 programs. 

5 ‘‘(g) EFFECT OF FUTURE LAWS.—Enactment of any 

6 future Federal statute that has the effect, as determined 

7 by the Secretary, of restricting any Federal agency from 

8 spending appropriated funds, or otherwise preventing it 

9 from fulfilling its pre-existing responsibilities as of the 

10 date of enactment of the statute, unless such responsibil11 ities have been reassigned to another Federal agency by 

12 the statute with no prevention of performance, to issue 

13 any permit or other approval impacting on the OCS oil 

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

15 or to implement any provision of this Act shall automati16 cally prohibit any sharing of OCS Receipts under this sec17 tion directly with the States, and their coastal political 

18 subdivisions, for the duration of the restriction. The Sec19 retary shall make the determination of the existence of 

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

21 outer Continental Shelf lessee or producing State. 

22 ‘‘(h) DEFINITIONS.—In this section: 

23 ‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL

24 SUBDIVISION.—The term ‘coastal county-equivalent 

25 political subdivision’ means a political jurisdiction 


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1 immediately below the level of State government, in2 cluding a county, parish, borough in Alaska, inde3 pendent municipality not part of a county, parish, or 

4 borough in Alaska, or other equivalent subdivision of 

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

6 ‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI7 SION.—The term ‘coastal municipal political subdivi8 sion’ means a municipality located within and part 

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

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

11 coastal municipal political subdivision lies within the 

12 coastal zone. 

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

14 population’ means the population of all coastal coun15 ty-equivalent political subdivisions, as determined by 

16 the most recent official data of the Census Bureau. 

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

18 means that portion of a coastal State, including the 

19 entire territory of any coastal county-equivalent po20 litical subdivision at least a part of which lies, within 

21 75 miles landward from the coastline, or a greater 

22 distance as determined by State law enacted to im23 plement this section. 


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

2 means all funds received by the Secretary to issue 

3 an outer Continental Shelf minerals lease. 

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

5 all funds received by the Secretary from production 

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

7 in-kind, or from net profit shares, from an outer 

8 Continental Shelf minerals lease. 

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

10 State’ means an Adjacent State having an Adjacent 

11 Zone containing leased tracts from which OCS Re12 ceipts were derived. 

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

14 means bonus bids and royalties, excluding royalties 

15 from leases amended under the authority of section 

16 8(s) of this Act.’’. 

17 Subtitle B—Arctic Coastal Plain 

18 SEC. 3101. DEFINITIONS. 

19 In this subtitle: 

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

21 Plain’’ means that area identified as the ‘‘1002 

22 Coastal Plain Area’’ on the map. 

23 (2) FEDERAL AGREEMENT.—The term ‘‘Fed24 eral Agreement’’ means the Federal Agreement and 

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


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1 issued on January 23, 1974, in accordance with sec2 tion 28 of the Mineral Leasing Act (30 U.S.C. 185) 

3 and the Trans-Alaska Pipeline Authorization Act 

4 (43 U.S.C. 1651 et seq.). 

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

6 Statement’’ means the final legislative environmental 

7 impact statement on the Coastal Plain, dated April 

8 1987, and prepared pursuant to section 1002 of the 

9 Alaska National Interest Lands Conservation Act 

10 (16 U.S.C. 3142) and section 102(2)(C) of the Na11 tional Environmental Policy Act of 1969 (42 U.S.C. 

12 4332(2)(C)). 

13 (4) MAP.—The term ‘‘map’’ means the map en14 titled ‘‘Arctic National Wildlife Refuge’’, dated Sep15 tember 2005, and prepared by the United States Ge16 ological Survey. 

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

18 the Secretary of the Interior (or the designee of the 

19 Secretary), acting through the Director of the Bu20 reau of Land Management, in consultation with the 

21 Director of the United States Fish and Wildlife 

22 Service. 


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1 SEC. 3102. LEASING PROGRAM FOR LAND WITHIN THE 

2 COASTAL PLAIN. 

3 (a) IN GENERAL.—The Secretary shall take such ac4 tions as are necessary— 

5 (1) to establish and implement, in accordance 

6 with this subtitle, a competitive oil and gas leasing 

7 program that will result in an environmentally sound 

8 program for the exploration, development, and pro9 duction of the oil and gas resources of the Coastal 

10 Plain; and 

11 (2) to administer this subtitle through regula12 tions, lease terms, conditions, restrictions, prohibi13 tions, stipulations, and other provisions that— 

14 (A) ensure the oil and gas exploration, de15 velopment, and production activities on the 

16 Coastal Plain will result in no significant ad17 verse effect on fish and wildlife, their habitat, 

18 subsistence resources, and the environment; and 

19 (B) require the application of the best 

20 commercially available technology for oil and 

21 gas exploration, development, and production to 

22 all exploration, development, and production op23 erations under this subtitle in a manner that 

24 ensures the receipt of fair market value by the 

25 public for the mineral resources to be leased. 

26 (b) REPEAL.— 


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1 (1) REPEAL.—Section 1003 of the Alaska Na2 tional Interest Lands Conservation Act of 1980 (16 

3 U.S.C. 3143) is repealed. 

4 (2) CONFORMING AMENDMENT.—The table of 

5 contents contained in section 1 of that Act (16 

6 U.S.C. 3101 note) is amended by striking the item 

7 relating to section 1003. 

8 (3) COMPLIANCE WITH NEPA FOR OTHER AC9 TIONS.— 

10 (A) IN GENERAL.—Before conducting the 

11 first lease sale under this subtitle, the Secretary 

12 shall prepare an environmental impact state13 ment in accordance with the National Environ14 mental Policy Act of 1969 (42 U.S.C. 4321 et 

15 seq.) with respect to the actions authorized by 

16 this subtitle that are not referred to in para17 graph (2). 

18 (B) IDENTIFICATION AND ANALYSIS.— 

19 Notwithstanding any other provision of law, in 

20 carrying out this paragraph, the Secretary shall 

21 not be required— 

22 (i) to identify nonleasing alternative 

23 courses of action; or 

24 (ii) to analyze the environmental ef25 fects of those courses of action. 


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1 (C) IDENTIFICATION OF PREFERRED AC2 TION.—Not later than 18 months after the date 

3 of enactment of this Act, the Secretary shall— 

4 (i) identify only a preferred action and 

5 a single leasing alternative for the first 

6 lease sale authorized under this subtitle; 

7 and 

8 (ii) analyze the environmental effects 

9 and potential mitigation measures for 

10 those 2 alternatives. 

11 (D) PUBLIC COMMENTS.—In carrying out 

12 this paragraph, the Secretary shall consider 

13 only public comments that are filed not later 

14 than 20 days after the date of publication of a 

15 draft environmental impact statement. 

16 (E) EFFECT OF COMPLIANCE.—Notwith17 standing any other provision of law, compliance 

18 with this paragraph shall be considered to sat19 isfy all requirements for the analysis and con20 sideration of the environmental effects of pro21 posed leasing under this subtitle. 

22 (c) RELATIONSHIP TO STATE AND LOCAL AUTHOR23 ITY.—Nothing in this subtitle expands or limits any State 

24 or local regulatory authority. 

25 (d) SPECIAL AREAS.— 


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1 (1) DESIGNATION.— 

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

3 consultation with the State of Alaska, the 

4 North Slope Borough, Alaska, and the City of 

5 Kaktovik, Alaska, may designate not more than 

6 45,000 acres of the Coastal Plain as a special 

7 area if the Secretary determines that the special 

8 area would be of such unique character and in9 terest as to require special management and 

10 regulatory protection. 

11 (B) SADLEROCHIT SPRING AREA.—The 

12 Secretary shall designate as a special area in 

13 accordance with subparagraph (A) the 

14 Sadlerochit Spring area, comprising approxi15 mately 4,000 acres as depicted on the map. 

16 (2) MANAGEMENT.—The Secretary shall man17 age each special area designated under this sub18 section in a manner that preserves the unique and 

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

20 subsistence resources, and cultural values of the 

21 area. 

22 (3) EXCLUSION FROM LEASING OR SURFACE

23 OCCUPANCY.— 


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1 (A) IN GENERAL.—The Secretary may ex2 clude any special area designated under this 

3 subsection from leasing. 

4 (B) NO SURFACE OCCUPANCY.—If the Sec5 retary leases all or a portion of a special area 

6 for the purposes of oil and gas exploration, de7 velopment, production, and related activities, 

8 there shall be no surface occupancy of the land 

9 comprising the special area. 

10 (4) DIRECTIONAL DRILLING.—Notwithstanding 

11 any other provision of this subsection, the Secretary 

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

13 terms that permit the use of horizontal drilling tech14 nology from sites on leases located outside the spe15 cial area. 

16 (e) LIMITATION ON CLOSED AREAS.—The Secretary 

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

18 leasing or to exploration, development, or production ex19 cept in accordance with this subtitle. 

20 (f) REGULATIONS.— 

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

22 after the date of enactment of this Act, the Sec23 retary shall promulgate such regulations as are nec24 essary to carry out this subtitle, including rules and 

25 regulations relating to protection of the fish and 


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1 wildlife, fish and wildlife habitat, subsistence re2 sources, and environment of the Coastal Plain. 

3 (2) REVISION OF REGULATIONS.—The Sec4 retary shall periodically review and, as appropriate, 

5 revise the rules and regulations issued under para6 graph (1) to reflect any significant biological, envi7 ronmental, scientific or engineering data that come 

8 to the attention of the Secretary. 

9 SEC. 3103. LEASE SALES. 

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

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

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

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

14 (b) PROCEDURES.—The Secretary shall, by regula15 tion, establish procedures for— 

16 (1) receipt and consideration of sealed nomina17 tions for any area in the Coastal Plain for inclusion 

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

19 a lease sale; 

20 (2) the holding of lease sales after that nomina21 tion process; and 

22 (3) public notice of and comment on designa23 tion of areas to be included in, or excluded from, a 

24 lease sale. 


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

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

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

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

5 for lease those tracts the Secretary considers to have the 

6 greatest potential for the discovery of hydrocarbons, tak7 ing into consideration nominations received pursuant to 

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

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

10 shall— 

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

12 enactment of this Act, conduct the first lease sale 

13 under this subtitle; 

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

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

16 and issue leases resulting from the sale; and 

17 (3) conduct additional sales at appropriate in18 tervals if sufficient interest in exploration or devel19 opment exists to warrant the conduct of the addi20 tional sales. 

21 SEC. 3104. 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 3103 a lease 

2 for any land on the Coastal Plain. 

3 (b) SUBSEQUENT TRANSFERS.— 

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

5 subtitle 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. 3105. LEASE TERMS AND CONDITIONS. 

13 An oil or gas lease issued pursuant to this subtitle 

14 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 within the Coastal 

7 Plain conducted by the lessee or by any of the sub8 contractors or agents of the lessee; 

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

10 convey, by contract or otherwise, that reclamation 

11 responsibility and liability to another person without 

12 the express written approval of the Secretary; 

13 (5) provide that the standard of reclamation for 

14 land required to be reclaimed under this subtitle 

15 shall 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 3102(a)(2); 

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

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

5 provide a fair share of employment and contracting 

6 for Alaska Natives and Alaska Native Corporations 

7 from throughout the State of Alaska, as determined 

8 by the level of obligation previously agreed to in the 

9 Federal Agreement; and 

10 (8) contain such other provisions as the Sec11 retary determines to be necessary to ensure compli12 ance with this subtitle and the regulations promul13 gated under this subtitle. 

14 SEC. 3106. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

15 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

16 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

17 In accordance with section 3102, the Secretary shall ad18 minister this subtitle through regulations, lease terms, 

19 conditions, restrictions, prohibitions, stipulations, or other 

20 provisions that— 

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

22 that oil and gas exploration, development, and pro23 duction activities on the Coastal Plain will result in 

24 no significant adverse effect on fish and wildlife, fish 

25 and wildlife habitat, and the environment; 


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1 (2) require the application of the best commer2 cially available technology for oil and gas explo3 ration, development, and production on all new ex4 ploration, development, and production operations; 

5 and 

6 (3) ensure that the maximum surface acreage 

7 covered in connection with the leasing program by 

8 production and support facilities, including airstrips 

9 and any areas covered by gravel berms or piers for 

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

11 the Coastal Plain. 

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

13 The Secretary shall require, with respect to any proposed 

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

15 (1) a site-specific analysis be made of the prob16 able effects, if any, that the drilling or related activi17 ties will have on fish and wildlife, fish and wildlife 

18 habitat, subsistence resources, subsistence uses, and 

19 the environment; 

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

21 and mitigate (in that order and to the maximum ex22 tent practicable) any significant adverse effect iden23 tified under paragraph (1); and 


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1 (3) the development of the plan shall occur 

2 after consultation with the 1 or more agencies hav3 ing jurisdiction over matters mitigated by the plan. 

4 (c) REGULATIONS TO PROTECT COASTAL PLAIN

5 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

6 AND THE ENVIRONMENT.—Before implementing the leas7 ing program authorized by this subtitle, the Secretary 

8 shall prepare and issue regulations, lease terms, condi9 tions, restrictions, prohibitions, stipulations, or other 

10 measures designed to ensure, to the maximum extent prac11 ticable, that the activities carried out on the Coastal Plain 

12 under this subtitle are conducted in a manner consistent 

13 with the purposes and environmental requirements of this 

14 subtitle. 

15 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI16 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

17 proposed regulations, lease terms, conditions, restrictions, 

18 prohibitions, and stipulations for the leasing program 

19 under this subtitle shall require— 

20 (1) compliance with all applicable provisions of 

21 Federal and State environmental law (including reg22 ulations); 

23 (2) implementation of and compliance with— 

24 (A) standards that are at least as effective 

25 as the safety and environmental mitigation 


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1 measures, as described in items 1 through 29 

2 on pages 167 through 169 of the Final State3 ment, on the Coastal Plain; 

4 (B) seasonal limitations on exploration, de5 velopment, and related activities, as necessary, 

6 to avoid significant adverse effects during peri7 ods of concentrated fish and wildlife breeding, 

8 denning, nesting, spawning, and migration; 

9 (C) design safety and construction stand10 ards for all pipelines and any access and service 

11 roads that minimize, to the maximum extent 

12 practicable, adverse effects on— 

13 (i) the passage of migratory species 

14 (such as caribou); and 

15 (ii) the flow of surface water by re16 quiring the use of culverts, bridges, or 

17 other structural devices; 

18 (D) prohibitions on general public access 

19 to, and use of, all pipeline access and service 

20 roads; 

21 (E) stringent reclamation and rehabilita22 tion requirements in accordance with this sub23 title for the removal from the Coastal Plain of 

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1 tion of oil and gas production operations, except 

2 in a case in which the Secretary determines 

3 that those facilities, structures, or equipment— 

4 (i) would assist in the management of 

5 the Arctic National Wildlife Refuge; and 

6 (ii) are donated to the United States 

7 for that purpose; 

8 (F) appropriate prohibitions or restrictions 

9 on— 

10 (i) access by all modes of transpor11 tation; 

12 (ii) sand and gravel extraction; and 

13 (iii) use of explosives; 

14 (G) reasonable stipulations for protection 

15 of cultural and archaeological resources; 

16 (H) measures to protect groundwater and 

17 surface water, including— 

18 (i) avoidance, to the maximum extent 

19 practicable, of springs, streams, and river 

20 systems; 

21 (ii) the protection of natural surface 

22 drainage patterns and wetland and ripar23 ian habitats; and 

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1 quate supplies of water for exploratory 

2 drilling; and 

3 (I) research, monitoring, and reporting re4 quirements; 

5 (3) that exploration activities (except surface 

6 geological studies) be limited to the period between 

7 approximately November 1 and May 1 of each year 

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

9 trails with adequate snow cover, ice pads, ice air10 strips, and air transport methods (except that those 

11 exploration activities may be permitted at other 

12 times if the Secretary determines that the explo13 ration will have no significant adverse effect on fish 

14 and wildlife, fish and wildlife habitat, and the envi15 ronment of the Coastal Plain); 

16 (4) consolidation of facility siting; 

17 (5) avoidance or reduction of air traffic-related 

18 disturbance to fish and wildlife; 

19 (6) treatment and disposal of hazardous and 

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

21 muds and cuttings, and domestic wastewater, includ22 ing, in accordance with applicable Federal and State 

23 environmental laws (including regulations)— 

24 (A) preparation of an annual waste man25 agement report; 


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1 (B) development and implementation of a 

2 hazardous materials tracking system; and 

3 (C) prohibition on the use of chlorinated 

4 solvents; 

5 (7) fuel storage and oil spill contingency plan6 ning; 

7 (8) conduct of periodic field crew environmental 

8 briefings; 

9 (9) avoidance of significant adverse effects on 

10 subsistence hunting, fishing, and trapping; 

11 (10) compliance with applicable air and water 

12 quality standards; 

13 (11) appropriate seasonal and safety zone des14 ignations around well sites, within which subsistence 

15 hunting and trapping shall be limited; and 

16 (12) development and implementation of such 

17 other protective environmental requirements, restric18 tions, terms, or conditions as the Secretary deter19 mines to be necessary. 

20 (e) CONSIDERATIONS.—In preparing and issuing reg21 ulations, lease terms, conditions, restrictions, prohibitions, 

22 or stipulations under this section, the Secretary shall take 

23 into consideration— 

24 (1) the stipulations and conditions that govern 

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1 gram, as set forth in the 1999 Northeast National 

2 Petroleum Reserve-Alaska Final Integrated Activity 

3 Plan/Environmental Impact Statement; 

4 (2) the environmental protection standards that 

5 governed the initial Coastal Plain seismic exploration 

6 program under parts 37.31 through 37.33 of title 

7 50, Code of Federal Regulations (or successor regu8 lations); and 

9 (3) the land use stipulations for exploratory 

10 drilling on the KIC–ASRC private land described in 

11 appendix 2 of the agreement between Arctic Slope 

12 Regional Corporation and the United States dated 

13 August 9, 1983. 

14 (f) FACILITY CONSOLIDATION PLANNING.— 

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

16 notice and comment, the Secretary shall prepare and 

17 periodically update a plan to govern, guide, and di18 rect the siting and construction of facilities for the 

19 exploration, development, production, and transpor20 tation of oil and gas resources from the Coastal 

21 Plain. 

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

23 shall be— 

24 (A) the avoidance of unnecessary duplica25 tion of facilities and activities; 


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1 (B) the encouragement of consolidation of 

2 common facilities and activities; 

3 (C) the location or confinement of facilities 

4 and activities to areas that will minimize impact 

5 on fish and wildlife, fish and wildlife habitat, 

6 subsistence resources, and the environment; 

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

8 maximum extent practicable; and 

9 (E) the enhancement of compatibility be10 tween wildlife values and development activities. 

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

12 shall— 

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

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

15 811 of the Alaska National Interest Lands Con16 servation Act (16 U.S.C. 3121); and 

17 (2) ensure that local residents shall have rea18 sonable access to public land in the Coastal Plain for 

19 traditional uses. 

20 SEC. 3107. EXPEDITED JUDICIAL REVIEW. 

21 (a) FILING OF COMPLAINTS.— 

22 (1) DEADLINE.—A complaint seeking judicial 

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

24 the Secretary under this subtitle shall be filed— 


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1 (A) except as provided in subparagraph 

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

3 date on which the action being challenged was 

4 carried out; or 

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

6 on grounds arising after the 90-day period de7 scribed in subparagraph (A), by not later than 

8 90 days after the date on which the complain9 ant knew or reasonably should have known 

10 about the grounds for the complaint. 

11 (2) VENUE.—A complaint seeking judicial re12 view of a provision of this subtitle or an action of 

13 the Secretary under this subtitle shall be filed in the 

14 United States Court of Appeals for the District of 

15 Columbia Circuit. 

16 (3) SCOPE.— 

17 (A) IN GENERAL.—Judicial review of a de18 cision of the Secretary relating to a lease sale 

19 under this subtitle (including an environmental 

20 analysis of such a lease sale) shall be— 

21 (i) limited to a review of whether the 

22 decision is in accordance with this subtitle; 

23 and 

24 (ii) based on the administrative record 

25 of the decision. 


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1 (B) PRESUMPTIONS.—Any identification 

2 by the Secretary of a preferred course of action 

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

4 Secretary of environmental effects, under this 

5 subtitle shall be presumed to be correct unless 

6 proven otherwise by clear and convincing evi7 dence. 

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

9 the Secretary that is subject to judicial review under this 

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

11 or criminal proceeding for enforcement. 

12 SEC. 3108. FEDERAL AND STATE DISTRIBUTION OF REVE13 NUES. 

14 (a) IN GENERAL.—Notwithstanding any other provi15 sion of law, of the amount of adjusted bonus, rental, and 

16 royalty revenues from Federal oil and gas leasing and op17 erations authorized under this subtitle for each fiscal 

18 year— 

19 (1) 50 percent shall be paid to the State of 

20 Alaska; and 

21 (2) the balance shall be used to offset the provi22 sions of this Act. 

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

24 of Alaska under this section shall be made semiannually. 


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1 SEC. 3109. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 

2 (a) IN GENERAL.—The Secretary shall issue rights3 of-way and easements across the Coastal Plain for the 

4 transportation of oil and gas— 

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

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

7 185), without regard to title XI of the Alaska Na8 tional Interest Lands Conservation Act (16 U.S.C. 

9 3161 et seq.); and 

10 (2) under title XI of the Alaska National Inter11 est Lands Conservation Act (16 U.S.C. 3161 et 

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

13 1111 of that Act (16 U.S.C. 3170, 3171). 

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

15 include in any right-of-way or easement issued under sub16 section (a) such terms and conditions as may be necessary 

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

18 in a significant adverse effect on the fish and wildlife, sub19 sistence resources, their habitat, and the environment of 

20 the Coastal Plain, including requirements that facilities be 

21 sited or designed so as to avoid unnecessary duplication 

22 of roads and pipelines. 

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

24 regulations under section 3102(f) provisions granting 

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


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1 SEC. 3110. CONVEYANCE. 

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

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

4 3192(h)(2)), to remove any cloud on title to land, and to 

5 clarify land ownership patterns in the Coastal Plain, the 

6 Secretary shall— 

7 (1) to the extent necessary to fulfill the entitle8 ment of the Kaktovik Inupiat Corporation under sec9 tions 12 and 14 of the Alaska Native Claims Settle10 ment Act (43 U.S.C. 1611, 1613), as determined by 

11 the Secretary, convey to that Corporation the sur12 face estate of the land described in paragraph (1) of 

13 Public Land Order 6959, in accordance with the 

14 terms and conditions of the agreement between the 

15 Secretary, the United States Fish and Wildlife Serv16 ice, the Bureau of Land Management, and the 

17 Kaktovik Inupiat Corporation, dated January 22, 

18 1993; and 

19 (2) convey to the Arctic Slope Regional Cor20 poration the remaining subsurface estate to which 

21 that Corporation is entitled under the agreement be22 tween that corporation and the United States, dated 

23 August 9, 1983. 


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1 Subtitle C—Nuclear Energy 

2 Reforms 

3 SEC. 3201. AMENDMENTS TO TITLE XVII OF THE ENERGY 

4 POLICY ACT 2005. 

5 (a) DEFINITION OF PROJECT COST.—Section 

6 1701(1) of the Energy Policy Act of 2005 (42 U.S.C. 

7 16511(1)) is amended by inserting a new paragraph (4) 

8 and renumbering the paragraphs accordingly: 

9 ‘‘(4) PROJECT COST.—The term ‘project cost’ 

10 means all costs associated with the development, 

11 planning, design, engineering, permitting and licens12 ing, construction, commissioning, start-up, shake13 down and financing of the facility, including but not 

14 limited to reasonable escalation and contingencies, 

15 the cost of and fees for the guarantee, reasonably re16 quired reserve funds, initial working capital and in17 terest during construction.’’. 

18 (b) TERMS AND CONDITIONS.—Section 1702 of the 

19 Energy Policy Act of 2005 (42 U.S.C. 16512) is amended 

20 by striking subsections (b) and (c) and inserting the fol21 lowing: 

22 ‘‘(b) SPECIFIC APPROPRIATION OR CONTRIBU23 TION.— 

24 ‘‘(1) IN GENERAL.—No guarantee shall be 

25 made unless— 


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1 ‘‘(A) an appropriation for the cost has 

2 been made; 

3 ‘‘(B) the Secretary has received from the 

4 borrower a payment in full for the cost of the 

5 obligation and deposited the payment into the 

6 Treasury; or 

7 ‘‘(C) a combination of (A) and (B) has 

8 been made, that when combined is sufficient to 

9 cover the cost of the obligation. 

10 ‘‘(2) RELATION TO OTHER LAWS.—Section 504 

11 (b) of the Federal Credit Reform Act of 1990 (2 

12 U.S.C. 661c(b)) shall not apply to a loan guarantee 

13 made in accordance with paragraph (1)(B).’’. 

14 (c) AMOUNT.—Section 1702 of the Energy Policy Act 

15 of 2005 (42 U.S.C. 16512) is amended by striking sub16 section (c) and inserting the following: 

17 ‘‘(c) AMOUNT.— 

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

19 the Secretary shall guarantee 100 percent of the ob20 ligation for a facility that is the subject of the guar21 antee, or a lesser amount if requested by the bor22 rower. 

23 ‘‘(2) LIMITATION.—The total amount of loans 

24 guaranteed for a facility by the Secretary shall not 

25 exceed 80 percent of the total cost of the facility, as 


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1 estimated at the time at which the guarantee is 

2 issued.’’. 

3 SEC. 3202. AMENDMENTS TO SECTION 638 OF THE ENERGY 

4 POLICY ACT OF 2005. 

5 (a) DEFINITIONS.—Section 638(a) of the Energy 

6 Policy Act of 2005 (42 U.S.C. 16014(a)) is amended— 

7 (1) by inserting after paragraph (3) the fol8 lowing: 

9 ‘‘(4) FULL POWER OPERATION.—The term ‘full 

10 power operation’ means whichever occurs first of— 

11 ‘‘(A) the ‘commercial operation date’ or 

12 the equivalent under the terms of the financing 

13 documents for such facility; or 

14 ‘‘(B) operation of such facility at an aver15 age of 50 percent or greater of nameplate ca16 pacity over any consecutive 30-day period. 

17 ‘‘(5) INCREASED PROJECT COSTS.—The term 

18 ‘increased project costs’ means the increased cost of 

19 constructing, commissioning, testing, operating or 

20 maintaining a reactor prior to full-power operation 

21 incurred as a result of a delay covered by the con22 tract including but not limited to costs of demobili23 zation and demobilization, increased costs of equip24 ment, materials and labor due to delay (including 

25 idle time), increased general and administrative 


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1 costs, and escalation costs for completing construc2 tion. 

3 ‘‘(6) LITIGATION.—The term ‘litigation’ means 

4 adjudication in Federal, State, local or tribal courts 

5 and administrative proceedings or hearings at or be6 fore Federal, State, local or tribal agencies or ad7 ministrative bodies.’’; and 

8 (2) by redesignating paragraph (4) as para9 graph (7). 

10 (b) CONTRACT AUTHORITY.—Section 638(b) of the 

11 Energy Policy Act of 2005 (42 U.S.C. 16014(b)) is 

12 amended by striking paragraph (1) and inserting the fol13 lowing: 

14 ‘‘(1) IN GENERAL.—The Secretary may enter 

15 into contracts under this section with sponsors of an 

16 advanced nuclear facility that cover at any one time 

17 outstanding a total of not more than 6 reactors, 

18 with the 6 reactors consisting of not more than 3 

19 different reactor designs, in accordance with para20 graph (2). In the event that any contract entered 

21 into under this section terminates or expires without 

22 a claim being paid by the Secretary thereunder, then 

23 the Secretary may enter into a new contract under 

24 this section in replacement or substitution for such 

25 contract.’’. 


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1 (c) COVERED COSTS.—Section 638(d) of the Energy 

2 Policy Act of 2005 (42 U.S.C. 16014(d)) is amended by 

3 striking paragraphs (2) and (3) and inserting the fol4 lowing: 

5 ‘‘(2) COVERAGE.—In the case of reactors that 

6 receive combined licenses and on which construction 

7 is commenced, the Secretary shall pay— 

8 ‘‘(A) 100 percent of the covered costs of 

9 delay that occur after the initial 30-day period 

10 of covered delay; but 

11 ‘‘(B) not more than $500,000,000 per con12 tract. 

13 ‘‘(3) COVERED DEBT OBLIGATIONS.—Debt obli14 gations covered under subparagraph (A) of para15 graph (5) shall include but not be limited to debt ob16 ligations incurred to pay increased project costs.’’. 

17 (d) DISPUTE RESOLUTION.—Section 638 of the En18 ergy Policy Act of 2005 (42 U.S.C. 16014) is amended— 

19 (1) by inserting after subsection (e) the fol20 lowing: 

21 ‘‘(f) DISPUTE RESOLUTION.—Any controversy or 

22 claim arising out of or relating to any contract entered 

23 into under this section shall be determined by arbitration 

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1 sociation. A decision by the arbitrator(s) shall be final and 

2 binding, and any court having jurisdiction may enter judg3 ment on it.’’; and 

4 (2) by designating subsections (f), (g), and (h) 

5 as subsections (g), (h), and (i) respectively. 

6 SEC. 3203. AMENDMENTS TO SECTION 952(c) OF THE EN7 ERGY POLICY ACT 2005. 

8 Section 952(c) of the Energy Policy Act of 2005 (42 

9 U.S.C. 16014) is amended by striking paragraphs (1) and 

10 (2) and substituting the following: 

11 ‘‘(1) IN GENERAL.—The Secretary shall carry 

12 out a Nuclear Power 2010 Program to position the 

13 Nation to start construction of new nuclear power 

14 plants by 2010 or as close to 2010 as achievable. 

15 ‘‘(2) SCOPE OF PROGRAM.—The Nuclear Power 

16 2010 Program shall be cost-shared with the private 

17 sector and shall support the following objectives: 

18 ‘‘(A) Demonstrating the licensing process 

19 for new nuclear power plants, including the Nu20 clear Regulatory Commission process for ob21 taining early site permits (EPS), combined con22 struction/operating licenses (cols), and design 

23 certifications. 

24 ‘‘(B) Conducting first-of-a-kind design and 

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1 clear reactor designs sufficient to bring those 

2 designs to a state of design completion suffi3 cient to allow development of firm cost esti4 mates. 

5 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

6 There are authorized to be appropriated to the Sec7 retary to carry out the Nuclear Power 2010 Pro8 gram— 

9 ‘‘(A) $182,800,000 for fiscal year 2009; 

10 ‘‘(B) $159,600,000 for fiscal year 2010; 

11 ‘‘(C) $135,600,000 for fiscal year 2011; 

12 ‘‘(D) $46,900,000 for fiscal year 2012; 

13 and 

14 ‘‘(E) $2,200,000 for fiscal year 2013.’’. 

15 SEC. 3204. DOMESTIC MANUFACTURING BASE FOR NU16 CLEAR COMPONENTS AND EQUIPMENT. 

17 (a) ESTABLISHMENT OF INTERAGENCY WORKING

18 GROUP.— 

19 (1) PURPOSES.—The purposes of this section 

20 are— 

21 (A) to increase the competitiveness of the 

22 United States nuclear energy products and 

23 services industries; 

24 (B) to identify the stimulus or incentives 

25 necessary to cause United States manufacturers 


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1 of nuclear energy products to expand manufac2 turing capacity; 

3 (C) to facilitate the export of United 

4 States nuclear energy products and services; 

5 (D) to reduce the trade deficit of the 

6 United States through the export of United 

7 States nuclear energy products and services; 

8 (E) to retain and create nuclear energy 

9 manufacturing and related service jobs in the 

10 United States; 

11 (F) to integrate the objectives in para12 graphs (1) through (4) in a manner consistent 

13 with the interests of the United States, into the 

14 foreign policy of the United States; and 

15 (G) to authorize funds for increasing 

16 United States capacity to manufacture nuclear 

17 energy products and supply nuclear energy 

18 services. 

19 (2) ESTABLISHMENT.— 

20 (A) There shall be established an inter21 agency working group that, in consultation with 

22 representative industry organizations and man23 ufacturers of nuclear energy products, shall 

24 make recommendations to coordinate the ac25 tions and programs of the Federal Government 


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1 in order to promote increasing domestic manu2 facturing capacity and export of domestic nu3 clear energy products and services. 

4 (B) The Interagency Working Group shall 

5 be composed as follows: 

6 (i) The Secretary of Energy, or the 

7 Secretary’s designee, shall chair the inter8 agency working group. The Secretary of 

9 Energy shall provide staff for carrying out 

10 the functions of the interagency working 

11 group established under this section. 

12 (ii) Representatives of— 

13 (I) the Department of Energy; 

14 (II) the Department of Com15 merce; 

16 (III) the Department of Defense; 

17 (IV) the Department of Treas18 ury; 

19 (V) the Department of State; 

20 (VI) the Environmental Protec21 tion Agency; 

22 (VII) the United States Agency 

23 for International Development; 

24 (VIII) the Export-Import Bank 

25 of the United States; 


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1 (IX) the Trade and Development 

2 Agency; 

3 (X) the Small Business Adminis4 tration; 

5 (XI) the Office of the U.S. Trade 

6 Representative; and 

7 (XII) other Federal agencies, as 

8 determined by the President. 

9 (iii) The heads of appropriate agencies 

10 shall detail such personnel and furnish 

11 such services to the interagency group, 

12 with or without reimbursement, as may be 

13 necessary to carry out the group’s func14 tions. 

15 (3) DUTIES OF THE INTERAGENCY WORKING

16 GROUP.— 

17 (A) Within six months of enactment, the 

18 interagency working group established under 

19 paragraph (2) shall identify the actions nec20 essary to promote the safe development and ap21 plication in foreign countries of nuclear energy 

22 products and services in order to— 

23 (i) increase electricity generation from 

24 nuclear energy sources through develop25 ment of new generation facilities; 


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1 (ii) improve the efficiency, safety and/ 

2 or reliability of existing nuclear generating 

3 facilities through modifications; and 

4 (iii) enhance the safe treatment, han5 dling, storage and disposal of used nuclear 

6 fuel. 

7 (B) Within 6 months of enactment, the 

8 interagency working group shall identify mecha9 nisms (including, but not limited to, tax stim10 ulus for investment, loans and loan guarantees, 

11 and grants) necessary for United States compa12 nies to increase their capacity to produce or 

13 provide nuclear energy products and services, 

14 and to increase their exports of nuclear energy 

15 products and services. The interagency working 

16 group shall identify administrative or legislative 

17 initiatives necessary to— 

18 (i) encourage United States compa19 nies to increase their manufacturing capac20 ity for nuclear energy products; 

21 (ii) provide technical and financial as22 sistance and support to small and mid23 sized businesses to establish quality assur24 ance programs in accordance with domestic 


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1 and international nuclear quality assurance 

2 code requirements; 

3 (iii) encourage, through financial in4 centives, private sector capital investment 

5 to expand manufacturing capacity; and 

6 (iv) provide technical assistance and 

7 financial incentives to small and mid-sized 

8 businesses to develop the work-force nec9 essary to increase manufacturing capacity 

10 and meet domestic and international nu11 clear quality assurance code requirements. 

12 (C) Within 9 months of enactment, the 

13 interagency working group shall provide a re14 port to Congress on its findings under subpara15 graphs (A) and (B), including recommendations 

16 for new legislative authority where necessary. 

17 (4) TRADE ASSISTANCE.—The interagency 

18 working group shall encourage the member agencies 

19 of the interagency working group to— 

20 (A) provide technical training and edu21 cation for international development personnel 

22 and local users in their own country; 

23 (B) provide financial and technical assist24 ance to nonprofit institutions that support the 

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1 panies that provide nuclear energy products and 

2 services; 

3 (C) develop nuclear energy projects in for4 eign countries; 

5 (D) provide technical assistance and train6 ing materials to loan officers of the World 

7 Bank, international lending institutions, com8 mercial and energy attaches at embassies of the 

9 United States and other appropriate personnel 

10 in order to provide information about nuclear 

11 energy products and services to foreign govern12 ments or other potential project sponsors; 

13 (E) support, through financial incentives, 

14 private sector efforts to commercialize and ex15 port nuclear energy products and services in ac16 cordance with the subsidy codes of the World 

17 Trade Organization; and 

18 (F) augment budgets for trade and devel19 opment programs in order to support pre-feasi20 bility or feasibility studies for projects that uti21 lize nuclear energy products and services. 

22 (5) AUTHORIZATION OF APPROPRIATIONS.— 

23 There are authorized to be appropriated to the Sec24 retary for purposes of carrying out this section 

25 $20,000,000 for fiscal years 2009 and 2010. 


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1 (b) CREDIT FOR QUALIFYING NUCLEAR POWER

2 MANUFACTURING.—Subpart E of part IV of subchapter 

3 A of chapter 1 of the Internal Revenue Code is amended 

4 by inserting after section 48B the following new section: 

5 ‘‘SEC. 48C. QUALIFYING NUCLEAR POWER MANUFAC6 TURING CREDIT. 

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

8 qualifying nuclear power manufacturing credit for any 

9 taxable year is an amount equal to 20 percent of the quali10 fied investment for such taxable year. 

11 ‘‘(b) QUALIFIED INVESTMENT.— 

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

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

14 the basis of eligible property placed in service by the 

15 taxpayer during such taxable year— 

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

17 nuclear power manufacturing project or is 

18 qualifying nuclear power manufacturing equip19 ment, 

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

21 erection of which is completed by the taxpayer, 

22 or 

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

24 the original use of such property commences 

25 with the taxpayer, 


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

2 amortization in lieu of depreciation) is allow3 able, and 

4 ‘‘(D) which is placed in service on or be5 fore December 31, 2015. 

6 ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED

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

8 apply for purposes of this section. 

9 ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI10 TURES RULES MADE APPLICABLE.—Rules similar to 

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

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

13 Revenue Reconciliation Act of 1990) shall apply for 

14 purposes of this section. 

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

16 ‘‘(1) QUALIFYING NUCLEAR POWER MANUFAC17 TURING PROJECT.—The term ‘qualifying nuclear 

18 power manufacturing project’ means any project 

19 which is designed primarily to enable the taxpayer to 

20 produce or test equipment necessary for the con21 struction or operation of a nuclear power plant. 

22 ‘‘(2) QUALIFYING NUCLEAR POWER MANUFAC23 TURING EQUIPMENT.—The term ‘qualifying nuclear 

24 power manufacturing equipment’ means machine 

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1 puters and other peripheral equipment, acquired or 

2 constructed primarily to enable the taxpayer to 

3 produce or test equipment necessary for the con4 struction or operation of a nuclear power plant. 

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

6 any building constructed to house qualifying nuclear 

7 power manufacturing equipment.’’. 

8 (c) CONFORMING AMENDMENTS.— 

9 (1) ADDITIONAL INVESTMENT CREDIT.—Sec10 tion 46 of such Code is amended by— 

11 (A) striking ‘‘and’’ at the end of paragraph 

12 (3), 

13 (B) striking the period at the end of para14 graph (4) and inserting ‘‘, and’’, and 

15 (C) inserting after paragraph (4) the fol16 lowing new paragraph: 

17 ‘‘(5) the qualifying nuclear power manufac18 turing credit.’’. 

19 (2) APPLICATION OF SECTION 49.—Subpara20 graph (C) of section 49(a)(1) of such Code is 

21 amended by: 

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

23 (iii), 

24 (B) striking the period at the end of clause 

25 (iv) and inserting ‘‘, and’’, and 


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1 (C) inserting after clause (iv) the following 

2 new clause: 

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

4 is part of a qualifying nuclear power equip5 ment manufacturing project under section 

6 48C.’’. 

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

8 preceding section 46 is amended by inserting after 

9 the line for section 48B the following new line: 

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

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

11 this section shall apply to property— 

12 (1) the construction, reconstruction, or erection 

13 of which of began after the date of enactment, or 

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

15 after the date of enactment and not pursuant to a 

16 binding contract which was in effect on the day prior 

17 to the date of enactment. 

18 SEC. 3205. USE OF FUNDS FOR RECYCLING. 

19 Section 302 of the Nuclear Waste Policy Act of 1982 

20 (42 U.S.C. 10222) is amended— 

21 (1) in subsection (d), by striking ‘‘The Sec22 retary may’’ and inserting ‘‘Except as provided in 

23 subsection (f), the Secretary may’’; and 

24 (2) by adding at the end the following new sub25 section: 


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1 ‘‘(f) RECYCLING.— 

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

3 Fund may be used by the Secretary of Energy to 

4 make grants to or enter into long-term contracts 

5 with private sector entities for the recycling of spent 

6 nuclear fuel. 

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

8 contracts authorized under paragraph (1) shall be 

9 awarded on the basis of a competitive bidding proc10 ess that— 

11 ‘‘(A) maximizes the competitive efficiency 

12 of the projects funded; 

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

14 amount of waste requiring disposal under this 

15 Act; and 

16 ‘‘(C) ensures adequate protection against 

17 the proliferation of nuclear materials that could 

18 be used in the manufacture of nuclear weap19 ons.’’. 

20 SEC. 3206. LICENSING OF NEW NUCLEAR POWER PLANTS. 

21 (a) Sections 189A(1)(A) of the Atomic Energy Act 

22 of 1954 is modified thus: 

23 ‘‘(A) In any proceeding under this Act, for 

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1 plication to transfer control, and in any pro2 ceeding for the issuance or modification of rules 

3 and regulations dealing with the activities of li4 censees, and in any proceeding for the payment 

5 of compensation, an award, or royalties under 

6 section 153, 157, 186c., or 188, the Commis7 sion shall grant a hearing upon the request of 

8 any person whose interest may be affected by 

9 the proceeding, and shall admit any such per10 son as a party to such proceeding. The Com11 mission may, in the absence of a request there12 for by any person whose interest may be af13 fected, issue a construction permit, an oper14 ating license or an amendment to a construc15 tion permit or an amendment to an operating 

16 license without a hearing, but upon thirty days’ 

17 notice and publication once in the Federal Reg18 ister of its intent to do so. The Commission 

19 may dispense with such thirty days’ notice and 

20 publication with respect to any application for 

21 an amendment to a construction permit or an 

22 amendment to an operating license upon a de23 termination by the Commission that the amend24 ment involves no significant hazards consider25 ation.’’. 


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1 (b) Section 185b of the Atomic Energy Act of 1954 

2 is modified thus: 

3 ‘‘b. After any public hearing held under section 

4 189a.(1)(A), the Commission shall issue to the applicant 

5 a combined construction and operating license if the appli6 cation contains sufficient information to support the 

7 issuance of a combined license and the Commission deter8 mines that there is reasonable assurance that the facility 

9 will be constructed and will operate in conformity with the 

10 license, the provisions of this Act, and the Commission’s 

11 rules and regulations. The Commission shall identify with12 in the combined license the inspections, tests, and anal13 yses, including those applicable to emergency planning, 

14 that the licensee shall perform, and the acceptance criteria 

15 that, if met, are necessary and sufficient to provide rea16 sonable assurance that the facility has been constructed 

17 and will be operated in conformity with the license, the 

18 provisions of this Act, and the Commission’s rules and 

19 regulations. Following issuance of the combined license, 

20 the Commission shall ensure that the prescribed inspec21 tions, tests, and analyses are performed and, prior to oper22 ation of the facility, shall find that the prescribed accept23 ance criteria are met. Any finding made under this sub24 section shall not require a hearing except as provided in 

25 section 189a.(1)(B).’’. 


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1 SEC. 3207. INVESTMENT TAX CREDIT FOR INVESTMENTS IN 

2 NUCLEAR POWER FACILTIES. 

3 (a) NEW CREDIT FOR NUCLEAR POWER FACILI4 TIES.—Section 46 of the Internal Revenue Code of 1986 

5 is amended by— 

6 (1) striking ‘‘and’’ at the end of paragraph (3), 

7 (2) striking the period at the end of paragraph 

8 (4) and inserting ‘‘, and’’, and 

9 (3) inserting after paragraph (4) the following 

10 new paragraph: 

11 ‘‘(5) the nuclear power facility construction 

12 credit.’’. 

13 (b) NUCLEAR POWER FACILITY CONSTRUCTION

14 CREDIT.—Subpart E of part IV of subchapter A of chap15 ter 1 of such Code is amended by inserting after section 

16 48B the following new section: 

17 ‘‘SEC. 48C. NUCLEAR POWER FACILITY CONSTRUCTION 

18 CREDIT. 

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

20 nuclear power facility construction credit for any taxable 

21 year is 10 percent of the qualified nuclear power facility 

22 expenditures with respect to a qualified nuclear power fa23 cility. 

24 ‘‘(b) WHEN EXPENDITURES TAKEN INTO AC25 COUNT.— 


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1 ‘‘(1) IN GENERAL.—Qualified nuclear power fa2 cility expenditures shall be taken into account for 

3 the taxable year in which the qualified nuclear power 

4 facility is placed in service. 

5 ‘‘(2) COORDINATION WITH SUBSECTION (C).— 

6 The amount which would (but for this paragraph) be 

7 taken into account under paragraph (1) with respect 

8 to any qualified nuclear power facility shall be re9 duced (but not below zero) by any amount of quali10 fied nuclear power facility expenditures taken into 

11 account under subsection (c) by the taxpayer or a 

12 predecessor of the taxpayer (or, in the case of a sale 

13 and leaseback described in section 50(a)(2)(C), by 

14 the lessee), to the extent any amount so taken into 

15 account has not been required to be recaptured 

16 under section 50(a). 

17 ‘‘(c) PROGRESS EXPENDITURES.— 

18 ‘‘(1) IN GENERAL.—A taxpayer may elect to 

19 take into account qualified nuclear power facility ex20 penditures— 

21 ‘‘(A) SELF-CONSTRUCTED PROPERTY.—In 

22 the case of a qualified nuclear power facility 

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1 erly chargeable to capital account with respect 

2 to such facility. 

3 ‘‘(B) ACQUIRED FACILITY.—In the case of 

4 a qualified nuclear facility which is not self-con5 structed property, in the taxable year in which 

6 such expenditures are paid. 

7 ‘‘(2) SPECIAL RULES FOR APPLYING PARA8 GRAPH (1).—For purposes of paragraph (1)— 

9 ‘‘(A) COMPONENT PARTS, ETC.—Property 

10 which is not self-constructed property and 

11 which is to be a component part of, or is other12 wise to be included in, any facility to which this 

13 subsection applies shall be taken into account in 

14 accordance with paragraph (1)(B). 

15 ‘‘(B) CERTAIN BORROWING DIS16 REGARDED.—Any amount borrowed directly or 

17 indirectly by the taxpayer on a nonrecourse 

18 basis from the person constructing the facility 

19 for the taxpayer shall not be treated as an 

20 amount expended for such facility. 

21 ‘‘(C) LIMITATION FOR FACILITIES OR COM22 PONENTS WHICH ARE NOT SELF-CON23 STRUCTED.— 

24 ‘‘(i) IN GENERAL.—In the case of a 

25 facility or a component of a facility which 


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1 is not self-constructed, the amount taken 

2 into account under paragraph (1)(B) for 

3 any taxable year shall not exceed the 

4 amount which represents the portion of the 

5 overall cost to the taxpayer of the facility 

6 or component of a facility which is prop7 erly attributable to the portion of the facil8 ity or component which is completed dur9 ing such taxable year. 

10 ‘‘(ii) CARRY-OVER OF CERTAIN

11 AMOUNTS.—In the case of a facility or 

12 component of a facility which is not self13 constructed, if for the taxable year— 

14 ‘‘(I) the amount which (but for 

15 clause (i)) would have been taken into 

16 account under paragraph (1)(B) ex17 ceeds the limitation of clause (i), then 

18 the amount of such excess shall be 

19 taken into account under paragraph 

20 (1)(B) for the succeeding taxable 

21 year, or 

22 ‘‘(II) the limitation of clause (i) 

23 exceeds the amount taken into ac24 count under paragraph (1)(B), then 

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1 crease the limitation of clause (i) for 

2 the succeeding taxable year. 

3 ‘‘(D) DETERMINATION OF PERCENTAGE OF

4 COMPLETION.—The determination under sub5 paragraph (C)(i) of the portion of the overall 

6 cost to the taxpayer of the construction which 

7 is properly attributable to construction com8 pleted during any taxable year shall be made on 

9 the basis of engineering or architectural esti10 mates or on the basis of cost accounting 

11 records. Unless the taxpayer establishes other12 wise by clear and convincing evidence, the con13 struction shall be deemed to be completed not 

14 more rapidly than ratably over the normal con15 struction period. 

16 ‘‘(E) NO PROGRESS EXPENDITURES FOR

17 CERTAIN PRIOR PERIODS.—No qualified nuclear 

18 facility expenditures shall be taken into account 

19 under this subsection for any period before the 

20 first day of the first taxable year to which an 

21 election under this subsection applies. 

22 ‘‘(F) NO PROGRESS EXPENDITURES FOR

23 PROPERTY FOR YEAR IT IS PLACED IN SERVICE, 

24 ETC.—In the case of any qualified nuclear facil25 ity, no qualified nuclear facility expenditures 


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1 shall be taken into account under this sub2 section for the earlier of— 

3 ‘‘(i) the taxable year in which the fa4 cility is placed in service, or 

5 ‘‘(ii) the first taxable year for which 

6 recapture is required under section 

7 50(a)(2) with respect to such facility, or 

8 for any taxable year thereafter. 

9 ‘‘(3) SELF-CONSTRUCTED.—For purposes of 

10 this subsection— 

11 ‘‘(A) The term ‘self-constructed facility’ 

12 means any facility if it is reasonable to believe 

13 that more than half of the qualified nuclear fa14 cility expenditures for such facility will be made 

15 directly by the taxpayer. 

16 ‘‘(B) A component of a facility shall be 

17 treated as not self-constructed if the cost of the 

18 component is at least 5 percent of the expected 

19 cost of the facility and the component is ac20 quired by the taxpayer. 

21 ‘‘(4) ELECTION.—An election shall be made 

22 under this section for a qualified nuclear power facil23 ity by claiming the nuclear power facility construc24 tion credit for expenditures described in paragraph 

25 (1) on a tax return filed by the due date for such 


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1 return (taking into account extensions). Such an 

2 election shall apply to the taxable year for which 

3 made and all subsequent taxable years. Such an 

4 election, once made, may be revoked only with the 

5 consent of the Secretary. 

6 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur7 poses of this section— 

8 ‘‘(1) QUALIFIED NUCLEAR POWER FACILITY.— 

9 The term ‘qualified nuclear power facility’ means an 

10 advanced nuclear power facility, as defined in section 

11 45J, the construction of which was approved by the 

12 Nuclear Regulatory Commission on or before De13 cember 31, 2013. 

14 ‘‘(2) QUALIFIED NUCLEAR POWER FACILITY

15 EXPENDITURES.— 

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

17 nuclear power facility expenditures’ means any 

18 amount properly chargeable to capital ac19 count— 

20 ‘‘(i) with respect to a qualified nuclear 

21 power facility, 

22 ‘‘(ii) for which depreciation is allow23 able under section 168, and 

24 ‘‘(iii) which are incurred before the 

25 qualified nuclear power facility is placed in 


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1 service or in connection with the placement 

2 of such facility in service. 

3 ‘‘(B) PRE-EFFECTIVE DATE EXPENDI4 TURES.—Qualified nuclear power facility ex5 penditures do not include any expenditures in6 curred by the taxpayer before January 1, 2007, 

7 unless such expenditures constitute less than 20 

8 percent of the total qualified nuclear power fa9 cility expenditures (determined without regard 

10 to this subparagraph) for the qualified nuclear 

11 power facility. 

12 ‘‘(3) DELAYS AND SUSPENSION OF CONSTRUC13 TION.— 

14 ‘‘(A) IN GENERAL.—For purposes of ap15 plying this section and section 50, a nuclear 

16 power facility that is under construction shall 

17 cease to be treated as a facility that will be a 

18 qualified nuclear power facility as of the earlier 

19 of— 

20 ‘‘(i) the date on which the taxpayer 

21 decides to terminate construction of the fa22 cility, or 

23 ‘‘(ii) the last day of any 24-month pe24 riod in which the taxpayer has failed to 

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1 penditures totaling at least 20 percent of 

2 the expected total cost of the nuclear 

3 power facility. 

4 ‘‘(B) AUTHORITY TO WAIVE.—The Sec5 retary may waive the application of clause (ii) 

6 of subparagraph (A) if the Secretary deter7 mines that the taxpayer intended to continue 

8 the construction of the qualified nuclear power 

9 facility and the expenditures were not incurred 

10 for reasons outside the control of the taxpayer. 

11 ‘‘(C) RESUMPTION OF CONSTRUCTION.—If 

12 a nuclear power facility that is under construc13 tion ceases to be a qualified nuclear power facil14 ity by reason of paragraph (2) and work is sub15 sequently resumed on the construction of such 

16 facility— 

17 ‘‘(i) the date work is subsequently re18 sumed shall be treated as the date that 

19 construction began for purposes of para20 graph (1), and 

21 ‘‘(ii) if the facility is a qualified nu22 clear power facility, the qualified nuclear 

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1 porary termination of construction of the 

2 facility.’’. 

3 (c) PROVISIONS RELATING TO CREDIT RECAP4 TURE.— 

5 (1) PROGRESS EXPENDITURE RECAPTURE

6 RULES.— 

7 (A) BASIC RULES.—Subparagraph (A) of 

8 section 50(a)(2) of such Code is amended to 

9 read as follows: 

10 ‘‘(A) IN GENERAL.—If during any taxable 

11 year any building to which section 47(d) applied 

12 or any facility to which section 48C(c) applied 

13 ceases (by reason of sale or other disposition, 

14 cancellation or abandonment of contract, or 

15 otherwise) to be, with respect to the taxpayer, 

16 property which, when placed in service, will be 

17 a qualified rehabilitated building or a qualified 

18 nuclear power facility, then the tax under this 

19 chapter for such taxable year shall be increased 

20 by an amount equal to the aggregate decrease 

21 in the credits allowed under section 38 for all 

22 prior taxable years which would have resulted 

23 solely from reducing to zero the credit deter24 mined under this subpart with respect to such 

25 building or facility.’’. 


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1 (B) AMENDMENT TO EXCESS CREDIT RE2 CAPTURE RULE.—Subparagraph (B) of section 

3 50(a)(2) of such Code is amended by— 

4 (i) inserting ‘‘or paragraph (2) of sec5 tion 48C(b)’’ after ‘‘paragraph (2) of sec6 tion 47(b)’’, 

7 (ii) inserting ‘‘or section 48C(b)(1)’’ 

8 after ‘‘section 47(b)(1)’’, and 

9 (iii) inserting ‘‘or facility’’ after 

10 ‘‘building’’. 

11 (C) AMENDMENT OF SALE AND LEASE12 BACK RULE.—Subparagraph (C) of section 

13 50(a)(2) of such Code is amended by— 

14 (i) inserting ‘‘or section 48C(c)’’ after 

15 ‘‘section 47(d)’’, and 

16 (ii) inserting ‘‘or qualified nuclear 

17 power facility expenditures’’ after ‘‘quali18 fied rehabilitation expenditures’’. 

19 (D) OTHER AMENDMENT.—Subparagraph 

20 (D) of section 50(a)(2) of such Code is amend21 ed by inserting ‘‘or section 48C(c)’’ after ‘‘sec22 tion 47(d)’’. 

23 (d) NO BASIS ADJUSTMENT.—Section 50(c) of such 

24 Code is amended by inserting at the end thereof the fol25 lowing new paragraph: 


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1 ‘‘(6) NUCLEAR POWER FACILITY CONSTRUC2 TION CREDIT.—Paragraphs (1) and (2) shall not 

3 apply to the nuclear power facility construction cred4 it.’’. 

5 (e) TECHNICAL AMENDMENTS.—The table of sec6 tions for subpart E of part IV of subchapter A of chapter 

7 1 of such Code is amended by inserting after the line for 

8 section 48B the following new line: 

‘‘Sec. 48C. Nuclear power facility construction credit.’’. 

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

10 this section shall be effective for expenditures incurred and 

11 property placed in service in taxable years beginning after 

12 the date of enactment. 

13 SEC. 3208. NATIONAL NUCLEAR ENERGY COUNCIL. 

14 (a) IN GENERAL.— 

15 (1) The Secretary of Energy shall establish a 

16 National Nuclear Energy Council (hereinafter the 

17 ‘‘Council’’). 

18 (2) The National Nuclear Energy Council shall 

19 be subject to the requirements of the Federal Advi20 sory Committee Act (5 U.S.C. appendix 2). 

21 (b) PURPOSE.—The National Nuclear Energy Coun22 cil shall— 

23 (1) serve in an advisory capacity to the Sec24 retary of Energy regarding nuclear energy on matVerDate Nov 24 2008 18:41 Jun 13, 2009 Jkt 079200 PO 00000 Frm 00187 Fmt 6652 Sfmt 6201 E:\BILLS\H2828.IH H2828

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1 ters submitted to the Council by the Secretary of 

2 Energy; and 

3 (2) advise, inform, and make recommendations 

4 to the Secretary of Energy, and represent the views 

5 of the nuclear energy industry with respect to any 

6 matter relating to nuclear energy. 

7 (c) MEMBERSHIP AND ORGANIZATION.— 

8 (1) The members of the Council shall be ap9 pointed by the Secretary of Energy. 

10 (2) The Council may establish such study and 

11 administrative committees as it may deem appro12 priate. Study committees shall only assist the Coun13 cil in preparing its advice, information, or rec14 ommendations to the Secretary of Energy. Adminis15 trative committees shall be formed solely for the 

16 purpose of assisting the Council or its Chairman in 

17 the management of the internal affairs of the Coun18 cil. 

19 (3) The officers of the Council shall consist of 

20 a Chairman, a Vice Chairman, and such other offi21 cers as may be approved by the Council. The Chair22 man and Vice Chairman must be members of the 

23 Council and shall receive no compensation for service 

24 as officers of the Council. 


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1 (4) The Secretary of Energy shall be Cochair2 man of the Council. If the Secretary of Energy des3 ignates a full-time, salaried official of the Depart4 ment of Energy as his alternate, such alternate may 

5 exercise any duties of the Secretary of Energy and 

6 may perform any function on the Council otherwise 

7 reserved for the Secretary of Energy. 

8 (5) The Chairman and the Vice Chairman shall 

9 be elected by the Council at its organizational meet10 ing to serve until their successors are elected at the 

11 next organizational meeting of the Council. 

12 (d) MEETINGS.— 

13 (1) Regular meetings of the Council shall be 

14 held at least twice each year at times determined by 

15 the Chairman and approved by the Government Co16 chairman. 

17 (2) No meeting of the Council shall be held un18 less the Government Cochairman approves the agen19 da thereof, approves the calling thereof, and is 

20 present thereat. 

21 (3) The time and place of all Council meetings 

22 shall be given general publicity and such meetings 

23 shall be open to the public. 

24 (e) STUDIES BY THE COUNCIL.— 


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1 (1) The Council may establish study committees 

2 to prepare reports for the consideration of the Coun3 cil pursuant to requests from the Secretary of En4 ergy for advice, information, and recommendations. 

5 (2) The Secretary of Energy or a full-time em6 ployee of the Department of Energy designated by 

7 the Secretary shall be the Cochairman of each study 

8 committee. 

9 (3) The members of study committees shall be 

10 selected from the Council membership on the basis 

11 of their training, experience, and general qualifica12 tions to deal with the matters assigned. 

13 SEC. 3209. TEMPORARY SPENT NUCLEAR FUEL STORAGE 

14 AGREEMENTS. 

15 (a) AUTHORIZATION AND LOCATION.—The Secretary 

16 of Energy (Secretary) is authorized to initiate spent nu17 clear fuel storage agreements as provided herein. 

18 (1) No later than 180 days from the date of en19 actment of this Act, representatives of a community 

20 may submit written notice to the Secretary that the 

21 community is willing to host a temporary spent nu22 clear fuel storage facility within its jurisdiction. 

23 (2) Within 90 days of the receipt of the notifi24 cation under subsection (a)(1), the Secretary shall 

25 determine whether the identified site is suitable for 


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1 a temporary storage facility. In determining the 

2 site’s suitability, the Secretary will evaluate technical 

3 feasibility and consider favorably local support for 

4 collocating a temporary spent nuclear fuel storage 

5 facility with facilities intended to develop and imple6 ment advanced nuclear fuel cycle technologies. 

7 (b) CONTENT OF AGREEMENTS.—If the Secretary 

8 determines one or more sites to be suitable in accordance 

9 with subsection (a)(2), negotiation of a temporary spent 

10 nuclear fuel storage facility agreement shall proceed. 

11 (1) Any temporary spent nuclear fuel storage 

12 agreement shall contain such terms and conditions, 

13 including financial, institutional and such other ar14 rangements as the Secretary and community deter15 mine to be reasonable and appropriate. 

16 (2) Any temporary spent nuclear fuel storage 

17 agreement may be amended only with the mutual 

18 consent of the parties to the agreement. 

19 (c) ENVIRONMENTAL IMPACT STATEMENT.—Execu20 tion of a temporary spent nuclear fuel storage agreement 

21 shall not require preparation of an environmental impact 

22 statement under section 102(2)(C) of the National Envi23 ronmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) or 

24 require any environmental review under subparagraph (E) 


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1 or (F) of section 102(2) of such Act (42 U.S.C. 

2 4332(2)(E), (F)). 

3 SEC. 3210. IMPLEMENTATION OF TEMPORARY SPENT NU4 CLEAR FUEL STORAGE AGREEMENTS. 

5 (a) IN GENERAL.—Any temporary spent nuclear fuel 

6 storage agreement or agreements entered into under sec7 tion 1 shall enter into force with respect to the United 

8 States if (and only if)— 

9 (1) the Secretary, at least 60 days before the 

10 day on which he or she enters into the temporary 

11 spent nuclear fuel storage agreement or agreements 

12 notifies the House of Representatives and the Senate 

13 of his intention to enter into the agreement or agree14 ments, and promptly thereafter publishes notice of 

15 such intention in the Federal Register; 

16 (2) the Governor of the State or States in 

17 which the facility is proposed to be located submits 

18 written notice to the Secretary that the Governor 

19 supports the temporary spent nuclear fuel storage 

20 agreement; and 

21 (3) after entering into the agreement, the Sec22 retary submits to the House of Representatives and 

23 to the Senate a copy of the final text of the agree24 ment, together with— 

25 (A) a draft of an implementing bill, and 


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1 (B) a statement of any administrative ac2 tion proposed to implement the agreement. 

3 (b) APPLICATION OF EXPEDITED PROCEDURES TO

4 IMPLEMENTING BILLS.—The provisions of paragraph (3) 

5 apply to implementing bills submitted with respect to tem6 porary spent nuclear fuel storage agreements entered into 

7 and submitted pursuant to paragraph (2). 

8 SEC. 3211. EXPEDITED PROCEDURES FOR CONGRESSIONAL 

9 REVIEW OF TEMPORARY SPENT NUCLEAR 

10 FUEL STORAGE AGREEMENTS. 

11 (a) RULES OF HOUSE OF REPRESENTATIVE AND

12 SENATE.—The provisions of this subsection are enacted 

13 by the Congress— 

14 (1) as an exercise of the rulemaking power of 

15 the House of Representatives and the Senate, re16 spectively, and as such they are deemed a part of 

17 the rules of each House, respectively, but applicable 

18 only with respect to the procedure to be followed in 

19 that House in the case of implementing bills de20 scribed in subsection (b)(2) of this section and ap21 proval resolutions described in subsection (b)(3) of 

22 this section; and they supersede other rules only to 

23 the extent that they are inconsistent therewith; and 

24 (2) with full recognition of the constitutional 

25 right of either House to change the rules (so far as 


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1 relating to the procedure of that House) at any time, 

2 in the same manner and to the same extent as in 

3 the case of any other rule of that House. 

4 (b) DEFINITIONS.—For purposes of this section— 

5 (1) the term ‘‘community’’ means any entity of 

6 local government appropriate, in terms of legal au7 thority, for negotiating and entering into temporary 

8 spent nuclear fuel storage agreements provided for 

9 in section 3210; 

10 (2) the term ‘‘implementing bill’’ means only a 

11 bill of either House of Congress which is introduced 

12 as provided in subsection (c) of this section with re13 spect to one or more temporary spent nuclear fuel 

14 storage agreements and which contain— 

15 (A) a provision approving such storage 

16 agreements, 

17 (B) a provision approving the statement of 

18 administrative action (if any) proposed to im19 plement such storage agreements, 

20 (C) if changes in existing laws or new stat21 utory authority is required to implement such 

22 storage agreement or agreements, provisions 

23 necessary or appropriate to implement such 

24 agreement or agreements either repealing or 


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1 amending existing laws or providing new statu2 tory authority, and 

3 (D) a provision containing revenue meas4 ures (if any), by reason of which the bill must 

5 originate in the House of Representatives as 

6 provided for in subsection (c); and 

7 (3) The term ‘‘approval resolution’’ means only 

8 a joint resolution of the two Houses of the Congress, 

9 the matter after the resolving clause of which is as 

10 follows: ‘‘That the Congress approves the temporary 

11 spent nuclear fuel storage agreement between the 

12 Secretary of Energy and llllllll on 

13 llllll,’’ the first blank space being filled 

14 with the name of the governor involved and the sec15 ond blank space being filled in with the appropriate 

16 date. 

17 (c) INTRODUCTION AND REFERRAL.—On the day on 

18 which the temporary spent nuclear fuel storage agreement 

19 is submitted to the House of Representatives and the Sen20 ate under this title, the implementing bill submitted by 

21 the Secretary with respect to such temporary spent nu22 clear fuel storage agreement shall be introduced (by re23 quest) in the House by the majority leader of the House, 

24 for himself and the minority leader of the House, or by 

25 Members of the House designated by the majority leader 


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1 and minority leader of the House; and shall be introduced 

2 (by request) in the Senate by the majority leader of the 

3 Senate, for himself and the minority leader of the Senate, 

4 or by Members of the Senate designated by the majority 

5 leader and minority leader of the Senate. If either House 

6 is not in session on the day on which such temporary spent 

7 nuclear fuel storage agreement is submitted, the imple8 menting bill shall be introduced in that House, as provided 

9 in the preceding sentence, on the first day thereafter on 

10 which that House is in session. Such bills shall be referred 

11 by the Presiding Officers of the respective Houses to the 

12 appropriate committee, or, in the case of a bill containing 

13 provisions within the jurisdiction of two or more commit14 tees, jointly to such committees for consideration of those 

15 provisions within their respective jurisdictions. 

16 (d) AMENDMENTS PROHIBITED.—No amendment to 

17 an implementing bill or approval resolution shall be in 

18 order in either the House of Representatives or the Sen19 ate; and no motion to suspend the application of this sub20 section shall be in order in either House, nor shall it be 

21 in order in either House for the Presiding Officer to enter22 tain a request to suspend the application of this subsection 

23 by unanimous consent. 

24 (e) PERIOD FOR COMMITTEE AND FLOOR CONSIDER25 ATION.— 


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1 (1) Except as provided in subsection (e)(2), if 

2 the committee or committees of either House to 

3 which an implementing bill or approval resolution 

4 has been referred have not reported it at the close 

5 of the 45th day after its introduction, such com6 mittee or committees shall be automatically dis7 charged from further consideration of the bill or res8 olution and it shall be placed on the appropriate cal9 endar. A vote on final passage of the bill or resolu10 tion shall be taken in each House on or before the 

11 close of the 15th day after the bill or resolution is 

12 reported by the committee or committees of that 

13 House to which it was referred, or after such com14 mittee or committees have been discharged from fur15 ther consideration of the bill or resolution. If prior 

16 to the passage by one House of an implementing bill 

17 or approval resolution of that House, that House re18 ceives the same implementing bill or approval resolu19 tion from the other House, then— 

20 (A) the procedure in that House shall be 

21 the same as if no implementation bill or ap22 proval resolution had been received from the 

23 other House, but 


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1 (B) the vote on final passage shall be on 

2 the implementing bill or approval resolution of 

3 the other House. 

4 (2) For purposes of computing a number of 

5 days in either House as provided for in subsection 

6 (e)(1), there shall be excluded any day on which that 

7 House is not in session. 

8 (3) If the implementing bill contains one or 

9 more revenue measures— 

10 (A) the provisions of subsection (e)(1) 

11 shall not apply; and 

12 (B) the Senate shall not take final action 

13 on the bill until it is received from the House. 

14 (f) FLOOR CONSIDERATION IN THE HOUSE.— 

15 (1) A motion in the House of Representatives 

16 to proceed to the consideration of an implementing 

17 bill or approval resolution shall be highly privileged 

18 and not debatable. An amendment to the motion 

19 shall not be in order, nor shall it be in order to move 

20 to reconsider the vote by which the motion is agreed 

21 to or disagreed to. 

22 (2) Debate in the House of Representatives on 

23 an implementing bill or approval resolution shall be 

24 limited to not more than 10 hours, which shall be 

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1 posing the bill or resolution. A motion further to 

2 limit debate shall not be debatable. It shall not be 

3 in order to move to recommit an implementing bill 

4 or approval resolution or to move to reconsider the 

5 vote by which an implementing bill or approval reso6 lution is agreed to or disagreed to. 

7 (3) Motions to postpone, made in the House of 

8 Representatives with respect to the consideration of 

9 an implementing bill or approval resolution, and mo10 tions to proceed to the consideration of other busi11 ness, shall be decided without debate. If a motion to 

12 proceed to consideration is agreed to, such resolution 

13 shall remain unfinished business of House until dis14 posed of. 

15 (4) All appeals from the decisions of the Chair 

16 relating to the application of the Rules of the House 

17 of Representatives to the procedure relating to an 

18 implementing bill or approval resolution shall be de19 cided without debate. 

20 (5) Except to the extent specifically provided in 

21 the preceding provisions of this subsection, consider22 ation of an implementing bill or approval resolution 

23 shall be governed by the Rules of the House of Rep24 resentatives applicable to other bills and resolutions 

25 in similar circumstances. 


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1 (g) FLOOR CONSIDERATION IN THE SENATE.— 

2 (1) A motion in the Senate to proceed to the 

3 consideration of an implementing bill or approval 

4 resolution shall be privileged and not debatable. An 

5 amendment to the motion shall not be in order, nor 

6 shall it be in order to move to reconsider the vote 

7 by which the motion is agreed to or disagreed to. 

8 (2) Debate in the Senate on an implementing 

9 bill or approval resolution, and all debatable motions 

10 and appeals in connection therewith, shall be limited 

11 to not more than 10 hours. The time shall be equally 

12 divided between, and controlled by, the majority 

13 leader and the minority leader or their designees. 

14 (3) Debate in the Senate on any debatable mo15 tion or appeal in connection with an implementing 

16 bill or approval resolution shall be limited to not 

17 more than 1 hour, to be equally divided between, 

18 and controlled by, the mover and the manager of the 

19 bill or resolution, except that in the event the man20 ager of the bill or resolution is in favor of any such 

21 motion or appeal, the time in opposition thereto 

22 shall be controlled by the minority leader or his des23 ignee. Such leaders, or either of them, may, from 

24 time under their control on the passage of an imple25 menting bill or approval resolution, allot additional 


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1 time to any Senator during the consideration of any 

2 debatable motion or appeal. 

3 (4) A motion in the Senate to further limit de4 bate is not debatable. A motion to recommit an im5 plementation bill or approval resolution is not in 

6 order. 

7 SEC. 3212. CONTRACTING AND NUCLEAR WASTE FUND. 

8 Section 302 of the Nuclear Waste Policy Act of 1982 

9 (42 U.S.C. 10222) is amended— 

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

11 the following: 

12 ‘‘For any civilian nuclear power reactor a license ap13 plication for which is filed with the Commission, pursuant 

14 to its authority under section 103 or 104 of the Atomic 

15 Energy Act of 1954, after the date of enactment of this 

16 Act, contracts entered into under this section shall— 

17 ‘‘(A) except as provided in subsections 

18 302(a)(1) (B), (C), (D), and (E), below, be 

19 generally consistent with the terms and condi20 tions of the ‘Standard Contract for Disposal of 

21 Spent Nuclear Fuel and/or High-Level Radio22 active Waste,’ as codified at 10 CFR part 961 

23 and in effect on January 1, 2007; 


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1 ‘‘(B) provide for the taking of title to, and 

2 for the Secretary to dispose of, the high-level 

3 waste or spent nuclear fuel; 

4 ‘‘(C) contain no provisions providing for 

5 adjustment of the 1.0 mil per kilowatt-hour fee 

6 established by paragraph (2); 

7 ‘‘(D) be entered into no later than 60 days 

8 following the docketing of the license applica9 tion by the Commission, or the date of enact10 ment of this Act, whichever is later; and 

11 ‘‘(E) provide that, on a schedule consistent 

12 with the Secretary’s acceptance of spent nuclear 

13 fuel from each civilian nuclear power reactor or 

14 site, and completed not later than the Sec15 retary’s completing the acceptance of all spent 

16 nuclear fuel from that commercial nuclear 

17 power reactor or site, the Secretary shall accept 

18 from each such reactor or site, all low-level ra19 dioactive waste defined in section 3(b)(1)(D) of 

20 the Low-level Radioactive Waste Policy Act, as 

21 amended, 42 U.S.C. 2021c(b)(1)(D).’’; 

22 (2) in subsection (a)(4), by striking all after 

23 ‘‘herein.’’ in the second sentence; 

24 (3) in subsection (a)(6), by adding at the end 

25 the following: 


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1 ‘‘Further, the Secretary shall offer to settle any ac2 tions pending on the date of enactment of this Act for 

3 damages resulting from failure to commence accepting 

4 spent nuclear fuel or high-level radioactive waste on or be5 fore January 31, 1998. Each offer to settle shall provide 

6 for the payment of $150 to the other party to a contract 

7 for disposal of spent nuclear fuel and high-level radioactive 

8 waste for each kilogram of spent nuclear fuel which such 

9 party was or shall be entitled to deliver to the Department 

10 in a particular year, based on the following aggregate ac11 ceptance rates: 400 MTU for 1998; 600 MTU for 1999; 

12 1,200 MTU for 2000; 2,000 MTU for 2001; and 3,000 

13 MTU for 2002 and thereafter; provided that the Secretary 

14 shall adjust the payment amount per kilogram of spent 

15 nuclear fuel under this subsection (a)(6) annually accord16 ing to the most recent Producer Price Index published by 

17 the Department of Labor. Such aggregate acceptance 

18 rates shall be allocated among parties to contracts with 

19 the United States based upon the age of spent nuclear 

20 fuel, as measured by the date of the discharge of such 

21 spent nuclear fuel from the civilian nuclear power reactor. 

22 Such offer to settle also shall include an annual payment 

23 of the amount to be determined by the Secretary of En24 ergy to any such party where a civilian nuclear power reac25 tor has been decommissioned, except for those portions of 


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1 the facility that cannot be decommissioned until removal 

2 of spent nuclear fuel and high-level radioactive waste. The 

3 Secretary also shall offer like compensation to parties to 

4 contracts entered into pursuant to section 302 of the Nu5 clear Waste Policy Act of 1982 (42 U.S.C. 10222) who 

6 brought actions for damages prior to the date of enact7 ment of this Act, but which were no longer pending as 

8 of said date, provided that such compensation shall be re9 duced by the amount of any settlement or judgment re10 ceived by such party.’’; and 

11 (4) in subsection (d), by adding at the end the 

12 following: 

13 ‘‘No amount may be expended by the Secretary from 

14 the Waste Fund to carry out research and development 

15 activities on advanced nuclear fuel cycle technologies.’’. 

16 SEC. 3213. CONFIDENCE IN AVAILABILITY OF WASTE DIS17 POSAL. 

18 (a) CONGRESSIONAL DETERMINATION.—The Con19 gress finds that— 

20 (1) there is reasonable assurance that high-level 

21 radioactive waste and spent nuclear fuel generated 

22 in reactors licensed by the Nuclear Regulatory Com23 mission in the past, currently, or in the future will 

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1 vironmental impact until capacity for ultimate dis2 posal is available; and 

3 (2) the Federal Government is responsible and 

4 has an established a policy for the ultimate safe and 

5 environmentally sound disposal of such high-level ra6 dioactive waste and spent nuclear fuel. 

7 (b) REGULATORY CONSIDERATION.—Notwith8 standing any other provision of law, for the period fol9 lowing the licensed operation of a civilian nuclear power 

10 reactor or any facility for the treatment or storage of 

11 spent nuclear fuel or high-level radioactive waste, no con12 sideration of the public health and safety, common defense 

13 and security, or environmental impacts of the storage of 

14 high-level radioactive waste and spent nuclear fuel gen15 erated in reactors licensed by the Nuclear Regulatory 

16 Commission in the past, currently, or in the future, is re17 quired by the Department of Energy or the Nuclear Regu18 latory Commission in connection with the development, 

19 construction, and operation of, or any permit, license, li20 cense amendment, or siting approval for, a civilian nuclear 

21 power reactor or any facility for the treatment or storage 

22 of spent nuclear fuel or high-level radioactive waste. Noth23 ing in this section shall affect the Department of Energy’s 

24 and Nuclear Regulatory Commission’s obligation to con25 sider the public health and safety, common defense and 


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1 security, and environmental impacts of storage during the 

2 period of licensed operation of a civilian nuclear power re3 actor or facility for the treatment or storage of spent nu4 clear fuel or high-level radioactive waste. 

5 SEC. 3214. LIMITATION ON USE OF FUNDS. 

6 None of the funds authorized by this Act may be used 

7 to improve or build any temporary storage or spent nu8 clear fuel and high-level radioactive waste disposal facility 

9 in a State previously recommended for repository develop10 ment under Public Law 97–425. 

11 Subtitle D—Expedited Oil, Gas, and 

12 Oil Shale Leasing of Federal Lands 

13 SEC. 3301. EXPEDITED PERMITTING OF COVERED ENERGY 

14 PROJECTS. 

15 (a) PERMIT APPLICATIONS DEEMED APPROVED.— 

16 (1) IN GENERAL.—Any application for a permit 

17 under Federal law for a covered energy project is 

18 deemed approved upon the expiration of the 6-month 

19 period beginning on the date of the submittal of a 

20 completed application for such permit, unless before 

21 the end of such period the Federal official author22 ized by law to issue such permit affirmatively dis23 approves the application and certifies to Congress 

24 the reasons for such disapproval. 

25 (2) EXTENSION OF PERIOD.— 


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1 (A) IN GENERAL.—The President may ex2 tend the period under subsection (a) for a per3 mit application by an additional 6 months by 

4 submitting to Congress a certification of the 

5 reasons why such extension is necessary. 

6 (B) LIMITATION.—The President may not 

7 extend such period more than one time with re8 spect to any particular permit application. 

9 (b) APPEAL OF DISAPPROVAL OF PERMIT APPLICA10 TION.— 

11 (1) IN GENERAL.—Any person who submits an 

12 application for a permit under Federal law for a cov13 ered energy project that is disapproved may file an 

14 action seeking judicial review (subject to subtitle B) 

15 of such disapproval within the 2-month period begin16 ning on the date of the disapproval. 

17 (2) DEADLINE FOR DECISION.—If a person files 

18 such an action— 

19 (A) a final decision shall be issued before 

20 the end of the 2-month period beginning on the 

21 date the appeal is filed; and 

22 (B) if a decision is not issued before the 

23 end of such period the permit application is 

24 deemed approved and the permit issued upon 

25 the expiration of such period. 


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1 SEC. 3302. WAIVER OF LAWS APPLICABLE TO COVERED EN2 ERGY PROJECTS. 

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law, the President or a designee of the President 

5 may waive any legal requirement under any provision of 

6 Federal law otherwise applicable to a covered energy 

7 project, including any provision of law relating to any ad8 ministrative protest of any agency action taken with re9 spect to such a project, as the President or such designee, 

10 in his or her sole discretion, determines necessary to en11 sure expeditious conduct of such project. Any such deter12 mination shall be effective upon being published in the 

13 Federal Register. 

14 (b) FEDERAL COURT REVIEW.— 

15 (1) IN GENERAL.—The district courts of the 

16 United States shall have exclusive jurisdiction to 

17 hear all causes or claims arising from any action un18 dertaken, or any decision made, by the President or 

19 such designee pursuant to subsection (a). Such a 

20 cause of action or claim may only be brought alleg21 ing a violation of the Constitution of the United 

22 States. The court shall not have jurisdiction to hear 

23 any claim not specified in this paragraph. 

24 (2) TIME FOR FILING OF COMPLAINT.—Any 

25 cause or claim brought pursuant to paragraph (1) 

26 shall be filed not later than the end of the 60-day 


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1 period beginning upon the expiration of the date of 

2 the action or decision made by the President or such 

3 designee. A claim shall be barred unless it is filed 

4 within that period. 

5 (3) ABILITY TO SEEK APPELLATE REVIEW.—An 

6 interlocutory or final judgment, decree, or order of 

7 the district court may be reviewed only upon petition 

8 for a writ of certiorari to the Supreme Court of the 

9 United States. 

10 SEC. 3303. PERMITTING FOR YEAR-ROUND CONDUCT OF 

11 COVERED ENERGY PROJECTS. 

12 Notwithstanding any other provision of law— 

13 (1) nothing in Federal law shall be construed as 

14 prohibiting the issuance of a permit authorizing con15 duct of a covered energy project throughout the 

16 year; and 

17 (2) any Federal official who is otherwise au18 thorized to issue a permit authorizing a covered en19 ergy project is encouraged to issue such a permit au20 thorizing conduct of a covered energy project 

21 throughout the year. 


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1 Subtitle E—Refining Capacity and 

2 Efficiency 

3 SEC. 3401. REFINERY REVITALIZATION REPEAL. 

4 Subtitle H of title III of the Energy Policy Act of 

5 2005 and the items relating thereto in the table of con6 tents of such Act are repealed. 

7 SEC. 3402. REDUCTION IN NUMBER OF BOUTIQUE FUELS. 

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

9 7545(c)(4)(C)) is amended as follows: 

10 (1) By redesignating the clause (v) added by 

11 section 1541(b) of the Energy Policy Act of 2005 

12 (Public Law 109–58; 119 Stat. 1106) as clause (vi). 

13 (2) In clause (vi) (as so redesignated)— 

14 (A) in subclause (I) by striking ‘‘approved 

15 under this paragraph as of September 1, 2004, 

16 in all State implementation plans’’ and by in17 serting in lieu there of ‘‘set forth on the list 

18 published under subclause (II) (or on the re19 vised list referred to in subclause (III) if the list 

20 has been revised)’’; 

21 (B) by amending subclause (III) to read as 

22 follows: 

23 ‘‘(III) The Administrator shall, after notice 

24 and opportunity for comment, remove a fuel 

25 from the list published under subclause (II) if 


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1 the Administrator determines that such fuel has 

2 ceased to be included in any State implementa3 tion plan or is identical to a Federal fuel con4 trol or prohibition promulgated and imple5 mented by the Administrator. The Adminis6 trator shall publish a revised list reflecting the 

7 reduction in the number of fuels.’’; 

8 (C) in subclause (IV) by striking ‘‘Sub9 clause (I)’’ and inserting ‘‘Neither subclause (I) 

10 nor subclause (V)’’ and by striking ‘‘not’’ and 

11 by striking ‘‘if such new fuel’’; and 

12 (D) by amending subclause (IV) to read as 

13 follows: 

14 ‘‘(IV) Subclause (I) shall not 

15 limit the Administrator’s author16 ity to approve a control or prohi17 bition respecting any new fuel 

18 under this paragraph in a State 

19 implementation plan or revision 

20 to a State implementation plan if 

21 such new fuel completely replaces 

22 a fuel on the list published under 

23 subclause (II) (or the revised list 

24 referred to in subclause (III) if 

25 the list has been revised) and if 


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1 the Administrator, after consulta2 tion with the Secretary of En3 ergy, publishes in the Federal 

4 Register after notice and com5 ment a finding that, in the Ad6 ministrator’s judgment, such con7 trol or prohibition respecting 

8 such new fuel will not cause fuel 

9 supply or distribution interrup10 tions or have a significant ad11 verse impact on fuel producibility 

12 in the affected area or contiguous 

13 areas.’’. 

14 SEC. 3403. REFINERY PERMITTING PROCESS. 

15 (a) DEFINITIONS.—In this section: 

16 (1) ADMINISTRATOR.—The term ‘‘Adminis17 trator’’ means the Administrator of the Environ18 mental Protection Agency. 

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

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

21 Indian Self-Determination and Education Assistance 

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

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

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

25 authorization that a refiner is required to obtain— 


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1 (A) under any Federal law; or 

2 (B) from a State or Indian tribal govern3 ment agency delegated authority by the Federal 

4 Government, or authorized under Federal law, 

5 to issue permits. 

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

7 person that— 

8 (A) owns or operates a refinery; or 

9 (B) seeks to become an owner or operator 

10 of a refinery. 

11 (5) REFINERY.— 

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

13 means— 

14 (i) a facility at which crude oil is re15 fined into transportation fuel or other pe16 troleum products; and 

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

18 facility at which coal is processed into syn19 thetic crude oil or any other fuel. 

20 (B) INCLUSIONS.—The term ‘‘refinery’’ in21 cludes an expansion of a refinery. 

22 (6) REFINERY EXPANSION.—The term ‘‘refin23 ery expansion’’ means a physical change in a refin24 ery that results in an increase in the capacity of the 

25 refinery. 


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1 (7) REFINERY PERMITTING AGREEMENT.—The 

2 term ‘‘refinery permitting agreement’’ means an 

3 agreement entered into between the Administrator 

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

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

6 the Secretary of Commerce. 

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

8 (A) a State; 

9 (B) the District of Columbia; 

10 (C) the Commonwealth of Puerto Rico; 

11 and 

12 (D) any other territory or possession of the 

13 United States. 

14 (b) STREAMLINING OF REFINERY PERMITTING

15 PROCESS.— 

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

18 tribe, the Administrator shall enter into a refinery 

19 permitting agreement with the State or Indian tribe 

20 under which the process for obtaining all permits 

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

24 section. 


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1 (2) AUTHORITY OF ADMINISTRATOR.—Under a 

2 refinery permitting agreement— 

3 (A) the Administrator shall have authority, 

4 as applicable and necessary, to— 

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

7 refiner is required to obtain to construct 

8 and operate a refinery; 

9 (ii) in consultation and cooperation 

10 with each Federal, State, or Indian tribal 

11 government agency that is required to 

12 make any determination to authorize the 

13 issuance of a permit, establish a schedule 

14 under which each agency shall— 

15 (I) concurrently consider, to the 

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

18 (II) complete each step in the 

19 permitting process; and 

20 (iii) issue a consolidated permit that 

21 combines all permits issued under the 

22 schedule established under clause (ii); and 

23 (B) the Administrator shall provide to 

24 State and Indian tribal government agencies— 


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1 (i) financial assistance in such 

2 amounts as the agencies reasonably require 

3 to hire such additional personnel as are 

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

6 established under subparagraph (A)(ii); 

7 and 

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

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

13 body of an Indian tribe shall agree that— 

14 (A) the Administrator shall have each of 

15 the authorities described in paragraph (2); and 

16 (B) each State or Indian tribal government 

17 agency shall— 

18 (i) in accordance with State law, make 

19 such structural and operational changes in 

20 the agencies as are necessary to enable the 

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

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

25 and 


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1 (ii) comply, to the maximum extent 

2 practicable, with the applicable schedule 

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

4 (4) DEADLINES.— 

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

6 consolidated permit for the construction of a 

7 new refinery, the Administrator and the State 

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

10 later than— 

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

14 (ii) on agreement of the applicant, the 

15 Administrator, and the State or governing 

16 body of the Indian tribe, 90 days after the 

17 expiration of the deadline established 

18 under clause (i). 

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

21 for the expansion of an existing refinery, the 

22 Administrator and the State or governing body 

23 of an Indian tribe shall approve or disapprove 

24 the consolidated permit not later than— 


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

4 (ii) on agreement of the applicant, the 

5 Administrator, and the State or governing 

6 body of the Indian tribe, 30 days after the 

7 expiration of the deadline established 

8 under clause (i). 

9 (5) FEDERAL AGENCIES.—Each Federal agency 

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

12 the applicable schedule established under paragraph 

13 (2)(A)(ii). 

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

16 permitting agreement shall be brought exclusively in 

17 the United States district court for the district in 

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

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

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

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


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

2 are required for the construction or operation of a 

3 refinery are not approved on or before any deadline 

4 established under paragraph (4), the Administrator 

5 may issue a consolidated permit that combines all 

6 other permits that the refiner is required to obtain 

7 other than any permits that are not approved. 

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

10 applicable law regarding permits necessary for the 

11 construction and operation of a refinery. 

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

14 States, and tribal governments to consult, to the 

15 maximum extent practicable, with local governments 

16 in carrying out this subsection. 

17 (11) AUTHORIZATION OF APPROPRIATIONS.— 

18 There are authorized to be appropriated such sums 

19 as are necessary to carry out this subsection. 

20 (12) EFFECT ON LOCAL AUTHORITY.—Nothing 

21 in this subsection affects— 

22 (A) the authority of a local government 

23 with respect to the issuance of permits; or 

24 (B) any requirement or ordinance of a 

25 local government (such as a zoning regulation). 


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1 (c) FISCHER-TROPSCH FUELS.— 

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

5 Secretary of Health and Human Services, and 

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

8 (A) conduct a research and demonstration 

9 program to evaluate the air quality benefits of 

10 ultra-clean Fischer-Tropsch transportation fuel, 

11 including diesel and jet fuel; 

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

14 reducing engine exhaust emissions; and 

15 (C) submit recommendations to Congress 

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

18 exposure to exhaust emissions. 

19 (2) GUIDANCE AND TECHNICAL SUPPORT.—The 

20 Administrator shall, to the extent necessary, issue 

21 any guidance or technical support documents that 

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

24 (3) REQUIREMENTS.—The program described 

25 in paragraph (1) shall consider— 


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

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

5 (B) the production costs associated with 

6 domestic production of those ultra clean fuel 

7 and prices for consumers. 

8 (4) REPORTS.—The Administrator shall submit 

9 to the Committee on Environment and Public Works 

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

12 and Commerce of the House of Representatives— 

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

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

17 on actions taken to carry out this subsection. 

18 SEC. 3404. EXISTING REFINERY PERMIT APPLICATION 

19 DEADLINE. 

20 Notwithstanding any other provision of law, applica21 tions for a permit for existing refinery applications shall 

22 not be considered to be timely if submitted after 120 days 

23 after the date of the enactment of this Act. 


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1 SEC. 3405. REMOVAL OF ADDITIONAL FEE FOR NEW APPLI2 CATIONS FOR PERMITS TO DRILL. 

3 The second undesignated paragraph of the matter 

4 under the heading ‘‘MANAGEMENT OF LANDS AND 

5 RESOURCES’’ under the heading ‘‘Bureau of Land Man6 agement’’ of title I of the Department of the Interior, En7 vironment, and Related Agencies Appropriations Act, 

8 2008 (Public Law 110–161; 121 Stat. 2098) is amended 

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

10 ‘‘each new application’’. 

11 Subtitle F—Alternative Sources of 

12 Fuel 

13 SEC. 3501. YEAR EXTENSION OF ELECTION TO EXPENSE 

14 CERTAIN REFINERIES. 

15 (a) IN GENERAL.—Paragraph (1) of section 179C(c) 

16 of the Internal Revenue Code of 1986 (defining qualified 

17 refinery property) is amended— 

18 (1) by striking ‘‘January 1, 2014’’ in subpara19 graph (B) and inserting ‘‘January 1, 2017’’, and 

20 (2) by striking ‘‘January 1, 2010’’ each place 

21 it appears in subparagraph (F) and inserting ‘‘Janu22 ary 1, 2013’’. 

23 (b) IMPLEMENTATION THROUGH SECRETARIAL

24 GUIDANCE.— 

25 (1) GUIDANCE.—Paragraph (1) of section 

26 179C(b) of such Code (relating to general rule for 


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1 election) is amended by inserting ‘‘or other guid2 ance’’ after ‘‘regulations’’. 

3 (2) REPORTING.—Subsection (h) of section 

4 179C of such Code (relating to reporting) is amend5 ed by striking ‘‘shall require’’ and inserting ‘‘may, 

6 through guidance, require’’. 

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

8 this Act shall apply to property placed in service after De9 cember 31, 2008. 

10 (d) REQUIREMENT FOR ISSUANCE OF GUIDANCE.— 

11 Not later than 90 days after the date of the enactment 

12 of this Act, the Secretary of the Treasury shall issue regu13 lations or other guidance to carry out section 179C of the 

14 Internal Revenue Code of 1986 (as amended by this sec15 tion). 

16 SEC. 3502. OPENING OF LANDS TO OIL SHALE LEASING. 

17 (a) REPEAL OF LIMITATION ON USE OF FUNDS.— 

18 Section 433 of division F of the Consolidated Appropria19 tions Act, 2008 (Public Law 110–161; 121 Stat. 2152) 

20 is repealed. 

21 (b) ISSUANCE OF REGULATIONS.—The Secretary of 

22 the Interior shall issue all regulations necessary to imple23 ment section 369 of the Energy Policy Act of 2005 (Public 

24 Law 109–58; 42 U.S.C. 15927) with respect to oil shale 

25 by not later than 60 days after the date of the enactment 


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1 of this Act. Such regulations shall include such safeguards 

2 and assurances as the Secretary considers necessary to 

3 allow States to exercise their regulatory and statutory au4 thorities under State law, consistent with otherwise appli5 cable Federal law. 

6 (c) LEASING OF OIL SHALE RESOURCE.—Imme7 diately after issuing regulations under subsection (b), the 

8 Secretary of the Interior shall— 

9 (1) offer for leasing for research and develop10 ment of oil shale resources under subsection (c) of 

11 section 369 of the Energy Policy Act of 2005 (Pub12 lic Law 109–58; 42 U.S.C. 15927), additional 160- 

13 acre tracts of lands the Secretary considers nec14 essary to fulfill the research and development objec15 tives of such Act; and 

16 (2) offer for leasing for commercial exploration, 

17 development, and production of oil shale resources 

18 under subsection (e) of such section, public lands in 

19 States for which the Secretary finds sufficient sup20 port and interest as required by that subsection. 

21 SEC. 3503. OIL SHALE AND TAR SANDS AMENDMENTS. 

22 (a) REPEAL OF REQUIREMENT TO ESTABLISH PAY23 MENTS.—Section 369(o) of the Energy Policy Act of 2005 

24 (Public Law 109–58; 119 Stat. 728; 42 U.S.C. 15927) 

25 is repealed. 


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1 (b) TREATMENT OF REVENUES.—Section 21 of the 

2 Mineral Leasing Act (30 U.S.C. 241) is amended by add3 ing at the end the following: 

4 ‘‘(e) REVENUES.— 

5 ‘‘(1) IN GENERAL.—Notwithstanding the provi6 sions of section 35, all revenues received from and 

7 under an oil shale or tar sands lease shall be dis8 posed of as provided in this subsection. 

9 ‘‘(2) ROYALTY RATES FOR COMMERCIAL

10 LEASES.— 

11 ‘‘(A) ROYALTY RATES.—The Secretary 

12 shall model the royalty schedule for oil shale 

13 and tar sands leases based on the royalty pro14 gram currently in effect for the production of 

15 synthetic crude oil from oil sands in the Prov16 ince of Alberta, Canada. 

17 ‘‘(B) REDUCTION.—The Secretary shall re18 duce any royalty otherwise required to be paid 

19 under subparagraph (A) under any oil shale or 

20 tar sands lease on a sliding scale based upon 

21 market price, with a 10 percent reduction if the 

22 average futures price of NYMEX Light Sweet 

23 Crude, or a similar index, drops, for the pre24 vious quarter year, below $50 (in January 1, 

25 2008, dollars), and an 80 percent reduction if 


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1 the average price drops below $30 (in January 

2 1, 2008, dollars) for the quarter previous to the 

3 one in which the production is sold. 

4 ‘‘(3) DISPOSITION OF REVENUES.— 

5 ‘‘(A) DEPOSIT.—The Secretary shall de6 posit into a separate account in the Treasury 

7 all revenues derived from any oil shale or tar 

8 sands lease. 

9 ‘‘(B) ALLOCATIONS TO STATES AND LOCAL

10 POLITICAL SUBDIVISIONS.—The Secretary shall 

11 allocate 50 percent of the revenues deposited 

12 into the account established under subpara13 graph (A) to the State within the boundaries of 

14 which the leased lands are located, with a por15 tion of that to be paid directly by the Secretary 

16 to the State’s local political subdivisions as pro17 vided in this paragraph. 

18 ‘‘(C) TRANSMISSION OF ALLOCATIONS.— 

19 ‘‘(i) IN GENERAL.—Not later than the 

20 last business day of the month after the 

21 month in which the revenues were received, 

22 the Secretary shall transmit— 

23 ‘‘(I) to each State two-thirds of 

24 such State’s allocations under sub25 paragraph (B), and in accordance 


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1 with clauses (ii) and (iii) to certain 

2 county-equivalent and municipal polit3 ical subdivisions of such State a total 

4 of one-third of such States allocations 

5 under subparagraph (B), together 

6 with all accrued interest thereon; and 

7 ‘‘(II) the remaining balance of 

8 such revenues shall be deposited into 

9 the Deficit Reduction Trust Fund cre10 ated by this Act. 

11 ‘‘(ii) ALLOCATIONS TO CERTAIN

12 COUNTY-EQUIVALENT POLITICAL SUBDIVI13 SIONS.—The Secretary shall under clause 

14 (i)(I) make equitable allocations of the rev15 enues to county-equivalent political sub16 divisions that the Secretary determines are 

17 closely associated with the leasing and pro18 duction of oil shale and tar sands, under a 

19 formula that the Secretary shall determine 

20 by regulation. 

21 ‘‘(iii) ALLOCATIONS TO MUNICIPAL

22 POLITICAL SUBDIVISIONS.—The initial al23 location to each county-equivalent political 

24 subdivision under clause (ii) shall be fur25 ther allocated to the county-equivalent poVerDate Nov 24 2008 18:41 Jun 13, 2009 Jkt 079200 PO 00000 Frm 00227 Fmt 6652 Sfmt 6201 E:\BILLS\H2828.IH H2828

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1 litical subdivision and any municipal polit2 ical subdivisions located partially or wholly 

3 within the boundaries of the county-equiva4 lent political subdivision on an equitable 

5 basis under a formula that the Secretary 

6 shall determine by regulation. 

7 ‘‘(D) INVESTMENT OF DEPOSITS.—The de8 posits in the Treasury account established 

9 under this section shall be invested by the Sec10 retary of the Treasury in securities backed by 

11 the full faith and credit of the United States 

12 having maturities suitable to the needs of the 

13 account and yielding the highest reasonably 

14 available interest rates as determined by the 

15 Secretary of the Treasury. 

16 ‘‘(E) USE OF FUNDS.—A recipient of 

17 funds under this subsection may use the funds 

18 for any lawful purpose as determined by State 

19 law. Funds allocated under this subsection to 

20 States and local political subdivisions may be 

21 used as matching funds for other Federal pro22 grams without limitation. Funds allocated to 

23 local political subdivisions under this subsection 

24 may not be used in calculation of payments to 

25 such local political subdivisions under programs 


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1 for payments in lieu of taxes or other similar 

2 programs. 

3 ‘‘(F) NO ACCOUNTING REQUIRED.—No re4 cipient of funds under this subsection shall be 

5 required to account to the Federal Government 

6 for the expenditure of such funds, except as 

7 otherwise may be required by law. 

8 ‘‘(4) DEFINITIONS.—In this subsection: 

9 ‘‘(A) COUNTY-EQUIVALENT POLITICAL

10 SUBDIVISION.—The term ‘county-equivalent po11 litical subdivision’ means a political jurisdiction 

12 immediately below the level of State govern13 ment, including a county, parish, borough in 

14 Alaska, independent municipality not part of a 

15 county, parish, or borough in Alaska, or other 

16 equivalent subdivision of a State. 

17 ‘‘(B) MUNICIPAL POLITICAL SUBDIVI18 SION.—The term ‘municipal political subdivi19 sion’ means a municipality located within and 

20 part of a county, parish, borough in Alaska, or 

21 other equivalent subdivision of a State.’’. 


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1 SEC. 3504. TAX CREDIT FOR CARBON DIOXIDE CAPTURED 

2 FROM INDUSTRIAL SOURCES AND USED IN 

3 ENHANCED OIL AND NATURAL GAS RECOV4 ERY. 

5 (a) IN GENERAL.—Subpart D of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 (relating to business credits) is amended by adding 

8 at the end the following new section: 

9 ‘‘SEC. 45R. CREDIT FOR CARBON DIOXIDE CAPTURED FROM 

10 INDUSTRIAL SOURCES AND USED AS A TER11 TIARY INJECTANT IN ENHANCED OIL AND 

12 NATURAL GAS RECOVERY. 

13 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

14 the captured carbon dioxide tertiary injectant credit for 

15 any taxable year is an amount equal to the product of— 

16 ‘‘(1) the credit amount, and 

17 ‘‘(2) the qualified carbon dioxide captured from 

18 industrial sources and used as a tertiary injectant in 

19 qualified enhanced oil and natural gas recovery 

20 which is attributable to the taxpayer. 

21 ‘‘(b) CREDIT AMOUNT.—For purposes of this sec22 tion— 

23 ‘‘(1) IN GENERAL.—The credit amount is $0.75 

24 per 1,000 standard cubic feet. 

25 ‘‘(2) INFLATION ADJUSTMENT.—In the case of 

26 any taxable year beginning in a calendar year after 


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1 2009, there shall be substituted for the $0.75 

2 amount under paragraph (1) an amount equal to the 

3 product of— 

4 ‘‘(A) $0.75, multiplied by 

5 ‘‘(B) the inflation adjustment factor for 

6 such calendar year determined under section 

7 43(b)(3)(B) for such calendar year, determined 

8 by substituting ‘2008’ for ‘1990’. 

9 ‘‘(c) QUALIFIED CARBON DIOXIDE.—For purposes of 

10 this section— 

11 ‘‘(1) IN GENERAL.—The term ‘qualified carbon 

12 dioxide’ means carbon dioxide captured from an an13 thropogenic source that— 

14 ‘‘(A) would otherwise be released into the 

15 atmosphere as industrial emission of green16 house gas, 

17 ‘‘(B) is measurable at the source of cap18 ture, 

19 ‘‘(C) is compressed, treated, and trans20 ported via pipeline, 

21 ‘‘(D) is sold as a tertiary injectant in 

22 qualified enhanced oil and natural gas recovery, 

23 and 


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1 ‘‘(E) is permanently sequestered in geologi2 cal formations as a result of the enhanced oil 

3 and natural gas recovery process. 

4 ‘‘(2) ANTHROPOGENIC SOURCE.—An anthropo5 genic source of carbon dioxide is an industrial 

6 source, including any of the following types of 

7 plants, and facilities related to such plant— 

8 ‘‘(A) a coal and natural gas fired electrical 

9 generating power station, 

10 ‘‘(B) a natural gas processing and treating 

11 plant, 

12 ‘‘(C) an ethanol plant, 

13 ‘‘(D) a fertilizer plant, and 

14 ‘‘(E) a chemical plant. 

15 ‘‘(3) DEFINITIONS.— 

16 ‘‘(A) QUALIFIED ENHANCED OIL AND NAT17 URAL GAS RECOVERY.—The term ‘qualified en18 hanced oil and natural gas recovery’ has the 

19 meaning given such term by section 43(c)(2). 

20 ‘‘(B) TERTIARY INJECTANT.—The term 

21 ‘tertiary injectant’ has the same meaning as 

22 when used within section 193(b)(1). 

23 ‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.— 

24 For purposes of this section— 


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1 ‘‘(1) ONLY CARBON DIOXIDE CAPTURED WITH2 IN THE UNITED STATES TAKEN INTO ACCOUNT.— 

3 Sales shall be taken into account under this section 

4 only with respect to qualified carbon dioxide of 

5 which is within— 

6 ‘‘(A) the United States (within the mean7 ing of section 638(1)), or 

8 ‘‘(B) a possession of the United States 

9 (within the meaning of section 638(2)). 

10 ‘‘(2) RECYCLED CARBON DIOXIDE.—The term 

11 ‘qualified carbon dioxide’ includes the initial deposit 

12 of captured carbon dioxide used as a tertiary 

13 injectant. Such term does not include carbon dioxide 

14 that is re-captured, recycled, and re-injected as part 

15 of the enhanced oil and natural gas recovery process. 

16 ‘‘(3) CREDIT ATTRIBUTABLE TO TAXPAYER.— 

17 Any credit under this section shall be attributable to 

18 the person that captures, treats, compresses, trans19 ports and sells the carbon dioxide for use as a ter20 tiary injectant in enhanced oil and natural gas re21 covery, except to the extent provided in regulations 

22 prescribed by the Secretary.’’. 

23 (b) CONFORMING AMENDMENT.—Section 38(b) of 

24 such Code (relating to general business credit), as amend25 ed by section 302, is amended by striking ‘‘plus’’ at the 


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

2 of paragraph (35) and inserting ‘‘, plus’’, and by adding 

3 at the end of following new paragraph: 

4 ‘‘(36) the captured carbon dioxide tertiary 

5 injectant credit determined under section 45P(a).’’. 

6 (c) CLERICAL AMENDMENT.—The table of sections 

7 for subpart B of part IV of subchapter A of chapter 1 

8 of such Code (relating to other credits) is amended by add9 ing at the end the following new section: 

‘‘Sec. 45R. Credit for carbon dioxide captured from industrial sources and used 

as a tertiary injectant in enhanced oil and natural gas recovery.’’. 

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

11 this section shall apply to taxable years beginning after 

12 the date of the enactment of this Act. 

13 Subtitle G—Domestic Energy 

14 Impact Statements 

15 SEC. 3601. COMMITTEE REPORTS IN HOUSE OF REP16 RESENTATIVES REQUIRED TO INCLUDE DO17 MESTIC ENERGY IMPACT STATEMENTS. 

18 (a) AMENDMENT TO RULE.—Clause 3(d) of rule XIII 

19 of the Rules of the House of Representatives is amended 

20 by adding at the end the following new subparagraph: 

21 ‘‘(4)(A) A statement (if timely submitted to the 

22 committee by the Comptroller General before the fil23 ing of the report) for each such bill or joint resolu24 tion that would have an impact on the governance 


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1 of public lands, including the outer Continental 

2 Shelf, of the impact of such bill on domestic energy 

3 availability. 

4 ‘‘(B) Each such statement shall contain— 

5 ‘‘(i) the physical/geographic size of any 

6 new areas of public lands which are opened up 

7 or closed off for energy exploration; and 

8 ‘‘(ii) the total amount of cubic feet of dry 

9 natural gas or the total number of barrels of oil 

10 or liquid natural gas, or the total number of 

11 short tons of coal, which could be recovered 

12 from any public lands which are opened up or 

13 closed off for energy exploration.’’. 

14 (b) EXERCISE OF RULEMAKING POWERS.—The 

15 amendment made by subsection (a) is enacted as an exer16 cise of the rulemaking power of the House of Representa17 tives, and as such shall be considered as part of the Rules 

18 of the House of Representatives, with full recognition of 

19 the constitutional right of the House of Representatives 

20 to change such Rules at any time, in the same manner, 

21 and to the same extent as in the case of any other Rule 

22 of the House of Representatives. 


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1 SEC. 3602. DOMESTIC ENERGY IMPACT STATEMENTS. 

2 (a) IN GENERAL.—Section 719 of title 31, United 

3 States Code, is amended by adding at the end the fol4 lowing new subsection: 

5 ‘‘(i) The Comptroller General shall, to the extent 

6 practicable, prepare for each bill or joint resolution re7 ported by any committee of the House of Representatives 

8 or the Senate that would have an impact on domestic en9 ergy availability, and submit to such committee a domestic 

10 energy impact statement containing— 

11 ‘‘(1) the physical/geographic size of any new 

12 areas of public lands which are opened up or closed 

13 off for energy exploration; and 

14 ‘‘(2) the total amount of cubic feet of dry nat15 ural gas or the total number of barrels of oil or liq16 uid natural gas, or the total number of short tons 

17 of coal, which could be recovered from any public 

18 lands which are opened up or closed off for energy 

19 exploration.’’. 

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

21 subsection (a) shall apply to bills and joint resolutions re22 ported by committees of the House of Representatives or 

23 the Senate 90 or more days after the date of the enact24 ment of this Act. 


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1 Subtitle H—Deficit Reduction 

2 SEC. 3701. DEFICIT REDUCTION TRUST FUND. 

3 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

4 Internal Revenue Code of 1986 is amended by adding at 

5 the end the following new section: 

6 ‘‘SEC. 9511. DEFICIT REDUCTION TRUST FUND. 

7 ‘‘(a) CREATION.—There is established in the Treas8 ury of the United States a trust fund to be known as the 

9 ‘Deficit Reduction Trust Fund’, consisting of such 

10 amounts as may be appropriated or credited to the Deficit 

11 Reduction Trust Fund as provided in this section. 

12 ‘‘(b) TRANSFERS.—There are hereby appropriated to 

13 the Deficit Reduction Trust Fund amounts equivalent to 

14 25 percent of all OCS Receipts, as defined in section 

15 9(i)(8) of the Outer Continental Shelf Lands Act (43 

16 U.S.C. 1338), that are derived from leases under that Act 

17 on tracts that would not have been available for leasing 

18 prior to the enactment of the American Energy Innovation 

19 Act and that would otherwise have been deposited in the 

20 General Fund of the Treasury and not allocated to any 

21 other specific use. 

22 ‘‘(c) EXPENDITURES.—Amounts in the Deficit Re23 duction Trust Fund shall be available as provided in ap24 propriation Acts only for the purpose of reducing the Fed25 eral debt.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for such subchapter is amended by adding at the end the 

3 following new item: 

‘‘Sec. 9511. Deficit Reduction Trust Fund.’’. 

4 TITLE IV—JOB CREATION 

5 SEC. 4001. SENSE OF CONGRESS. 

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

7 (1) A comprehensive energy policy would en8 hance the national security of the United States in 

9 two ways, by reducing our dependency on foreign 

10 sources of fuel and by simultaneously creating tens 

11 of millions of jobs over the next few decades. 

12 (2) Opening the full outer Continental Shelf to 

13 energy production would create 36 million jobs over 

14 the next 30 years. 

15 (3) Despite its distance from the continental 

16 United States, the opening of just 2,000 acres of 

17 land in the Arctic Coastal plain of Alaska is enough 

18 to supply up to an additional million jobs throughout 

19 the Nation. Millions more jobs will be created in sec20 tors of the economy that make our traditional 

21 sources of energy more efficient and clean. 

22 (4) Despite the progress being made in the de23 velopment of new and renewable energy sources and 

24 technologies, for the foreseeable future, there are no 

25 viable substitutes for the widely available, affordable 


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1 petroleum resources located within the United 

2 States. 

3 (5) While support must be given to continue to 

4 encourage the development of alternative energy 

5 sources, Congress must embrace a comprehensive 

6 energy policy that understands fossil fuels will con7 tinue to play a significant role in our energy policy 

8 for at least several more generations. 

9 (6) By doing so, the United States will embrace 

10 a realistic plan to reduce our dependency on foreign 

11 sources of energy and ensure our economic security. 

12 (b) SENSE OF CONGRESS.—It is the sense of Con13 gress that a comprehensive energy policy that promotes 

14 conservation, production, and innovation will consequently 

15 lead to massive long-term job creation. 

Æ 


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