I 

111TH CONGRESS 

1ST SESSION H. R. 2846 

To increase energy independence and job creation by increasing safe American 

energy production, encouraging the development of alternative and renewable energy, and promoting greater efficiencies and conservation for 

a cleaner environment. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2009 

Mr. BOEHNER (for himself, Mr. ADERHOLT, Mr. AKIN, Mr. ALEXANDER, Mr. 

AUSTRIA, Mrs. BACHMANN, Mr. BACHUS, Mr. BARTON of Texas, Mrs. 

BIGGERT, Mr. BISHOP of Utah, Mrs. BLACKBURN, Mr. BLUNT, Mr. 

BONNER, Mr. BOUSTANY, Mr. BRADY of Texas, Mr. BROUN of Georgia, 

Mr. BROWN of South Carolina, Mr. CALVERT, Mr. CAMP, Mr. CANTOR, 

Mrs. CAPITO, Mr. CASSIDY, Mr. CHAFFETZ, Mr. COBLE, Mr. COLE, Mr. 

CONAWAY, Mr. CRENSHAW, Mr. CULBERSON, Mr. DREIER, Mr. DUNCAN, 

Ms. FALLIN, Mr. FLEMING, Mr. FORBES, Ms. FOXX, Mr. FRANKS of Arizona, Mr. GINGREY of Georgia, Mr. GOHMERT, Mr. GOODLATTE, Ms. 

GRANGER, Mr. GRAVES, Mr. HALL of Texas, Mr. HARPER, Mr. 

HASTINGS of Washington, Mr. HENSARLING, Mr. HERGER, Mr. HOEKSTRA, Mr. HUNTER, Mr. ISSA, Ms. JENKINS, Mr. JORDAN of Ohio, Mr. 

KING of Iowa, Mr. KLINE of Minnesota, Mr. LAMBORN, Mr. LATTA, Mr. 

LEE of New York, Mr. LUETKEMEYER, Mrs. LUMMIS, Mr. MARCHANT, 

Mr. MCCARTHY of California, Mr. MCCAUL, Mr. MCHENRY, Mrs. 

MCMORRIS RODGERS, Mrs. MYRICK, Mrs. MILLER of Michigan, Mr. 

NEUGEBAUER, Mr. NUNES, Mr. OLSON, Mr. PENCE, Mr. PITTS, Mr. POE

of Texas, Mr. PRICE of Georgia, Mr. REHBERG, Mr. ROE of Tennessee, 

Mr. ROGERS of Alabama, Mr. ROGERS of Kentucky, Mr. ROONEY, Mr. 

SCALISE, Mrs. SCHMIDT, Mr. SCHOCK, Mr. SENSENBRENNER, Mr. SESSIONS, Mr. SHADEGG, Mr. SHIMKUS, Mr. SMITH of Texas, Mr. SOUDER, 

Mr. TERRY, Mr. THOMPSON of Pennsylvania, Mr. TIAHRT, Mr. TIBERI, 

Mr. TURNER, Mr. UPTON, Mr. WAMP, and Mr. COFFMAN of Colorado) 

introduced the following bill; which was referred to the Committee on 

Natural Resources, and in addition to the Committees on the Judiciary, 

Ways and Means, Energy and Commerce, Armed Services, Oversight and 

Government Reform, and Science and Technology, 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 


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A BILL 

To increase energy independence and job creation by increasing safe American energy production, encouraging the 

development of alternative and renewable energy, and 

promoting greater efficiencies and conservation for a 

cleaner environment. 

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 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—AMERICAN ENERGY 

Subtitle A—OCS 

Sec. 101. Short title. 

Sec. 102. Policy. 

Sec. 103. Leasing program considered approved. 

Sec. 104. Lease sales. 

Sec. 105. Prohibitions on surface occupancy. 

Sec. 106. Definitions under the Submerged Lands Act. 

Sec. 107. Seaward boundaries of States. 

Sec. 108. Exceptions from confirmation and establishment of States’ title, 

power, and rights. 

Sec. 109. Definitions under the Outer Continental Shelf Lands Act. 

Sec. 110. Determination of adjacent zones and planning areas. 

Sec. 111. Administration of leasing. 

Sec. 112. Grant of leases by Secretary. 

Sec. 113. Disposition of receipts. 

Sec. 114. Reservation of lands and rights. 

Sec. 115. Outer Continental Shelf leasing program. 

Sec. 116. Coordination with Adjacent States. 

Sec. 117. Environmental studies. 

Sec. 118. Outer Continental Shelf incompatible use. 

Sec. 119. Repurchase of certain leases. 

Sec. 120. Offsite environmental mitigation. 

Sec. 121. OCS regional headquarters. 


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Sec. 122. Leases for areas located within 12 nautical miles of California or 

Florida. 

Sec. 123. Coastal impact assistance. 

Sec. 124. Repeal of the Gulf of Mexico Energy Security Act of 2006. 

Subtitle B—ANWR 

Sec. 141. Short title. 

Sec. 142. Definitions. 

Sec. 143. Leasing program for lands within the Coastal Plain. 

Sec. 144. Lease sales. 

Sec. 145. Grant of leases by the Secretary. 

Sec. 146. Lease terms and conditions. 

Sec. 147. Coastal Plain environmental protection. 

Sec. 148. Expedited judicial review. 

Sec. 149. Federal and State distribution of revenues. 

Sec. 150. Rights-of-way across the Coastal Plain. 

Sec. 151. Conveyance. 

Sec. 152. Local government impact aid and community service assistance. 

Subtitle C—Oil Shale 

Sec. 161. Oil shale. 

Subtitle D—Refinery Permit Process Schedule 

Sec. 171. Short title. 

Sec. 172. Definitions. 

Sec. 173. State assistance. 

Sec. 174. Refinery process coordination and procedures. 

Sec. 175. Designation of closed military bases. 

Sec. 176. Savings clause. 

Sec. 177. Refinery revitalization repeal. 

TITLE II—CONSERVATION AND EFFICIENCY 

Subtitle A—Tax Incentives for Fuel Efficiency 

Sec. 201. Extension of credit for alternative fuel vehicles. 

Sec. 202. Extension of alternative fuel vehicle refueling property credit. 

Sec. 203. Extension of credit for new qualified plug-in electric drive motor vehicles. 

Subtitle B—Tapping America’s Ingenuity and Creativity 

Sec. 211. Definitions. 

Sec. 212. Statement of policy. 

Sec. 213. Prize authority. 

Sec. 214. Eligibility. 

Sec. 215. Intellectual property. 

Sec. 216. Waiver of liability. 

Sec. 217. Authorization of appropriations. 

Sec. 218. Next generation automobile prize program. 

Sec. 219. Advanced battery manufacturing incentive program. 

Subtitle C—Home and Business Tax Incentives 

Sec. 221. Extension of credit for energy efficient appliances. 


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Sec. 222. Extension of credit for nonbusiness energy property. 

Sec. 223. Extension of credit for residential energy efficient property. 

Sec. 224. Extension of new energy efficient home credit. 

Sec. 225. Extension of energy efficient commercial buildings deduction. 

Sec. 226. Extension of special rule to implement FERC and State electric restructuring policy. 

Sec. 227. Home energy audits. 

Sec. 228. Accelerated recovery period for depreciation of smart meters. 

TITLE III—NEW AND EXPANDING TECHNOLOGIES 

Subtitle A—Alternative Fuels 

Sec. 301. Repeal. 

Sec. 302. Government auction of long-term put option contracts on coal-to-liquid fuel produced by qualified coal-to-liquid facilities. 

Sec. 303. Standby loans for qualifying coal-to-liquids projects. 

Subtitle B—Tax Provisions 

Sec. 311. Extension of renewable electricity, refined coal, and Indian coal production credit. 

Sec. 312. Extension of energy credit. 

Sec. 313. Extension and modification of credit for clean renewable energy 

bonds. 

Sec. 314. Extension of credits for biodiesel and renewable diesel. 

Subtitle C—American Renewable and Alternative Energy Trust Fund 

Sec. 321. American Renewable and Alternative Energy Trust Fund. 

TITLE IV—NUCLEAR 

Sec. 401. Streamline the regulatory process. 

Sec. 402. Increase the supply of uranium. 

Sec. 403. Recycle and safely store spent nuclear fuel. 

Sec. 404. Confidence in availability of waste disposal. 

Sec. 405. Preferential treatment for certain nuclear reactors and related articles. 

Sec. 406. National Nuclear Energy Council. 

Sec. 407. Expansion of energy investment tax credit to include nuclear and 

clean-coal equipment. 

TITLE V—ENVIRONMENTAL REVIEW; GREENHOUSE GASES 

Sec. 501. Environmental review for renewable energy projects. 

Sec. 502. Greenhouse gas regulation under Clean Air Act. 

Sec. 503. Prohibition of consideration of impact of greenhouse gas. 

TITLE VI—LEGAL REFORM 

Sec. 601. Findings. 

Sec. 602. Exclusive jurisdiction over causes and claims relating to covered energy projects. 

Sec. 603. Time for filing complaint. 

Sec. 604. District court for the District of Columbia deadline. 

Sec. 605. Ability to seek appellate review. 

Sec. 606. Deadline for appeal to the Supreme Court. 


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Sec. 607. Limitation on scope of review and relief. 

Sec. 608. Legal fees. 

Sec. 609. Exclusion. 

Sec. 610. Covered energy project defined. 

1 TITLE I—AMERICAN ENERGY 

2 Subtitle A—OCS 

3 SEC. 101. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘Deep Ocean En5 ergy Resources Act of 2009’’. 

6 SEC. 102. POLICY. 

7 It is the policy of the United States that— 

8 (1) the United States is blessed with abundant 

9 energy resources on the outer Continental Shelf and 

10 has developed a comprehensive framework of envi11 ronmental laws and regulations and fostered the de12 velopment of state-of-the-art technology that allows 

13 for the responsible development of these resources 

14 for the benefit of its citizenry; 

15 (2) Adjacent States are required by the cir16 cumstances to commit significant resources in sup17 port of exploration, development, and production ac18 tivities for mineral resources on the outer Conti19 nental Shelf, and it is fair and proper for a portion 

20 of the receipts from such activities to be shared with 

21 Adjacent States and their local coastal governments; 

22 and 


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1 (3) among other bodies of inland waters, the 

2 Great Lakes, Long Island Sound, Delaware Bay, 

3 Chesapeake Bay, Albemarle Sound, San Francisco 

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

5 Continental Shelf, and are not subject to leasing by 

6 the Federal Government for the exploration, develop7 ment, and production of any mineral resources that 

8 might lie beneath them. 

9 SEC. 103. LEASING PROGRAM CONSIDERED APPROVED. 

10 (a) IN GENERAL.—The Draft Proposed Outer Conti11 nental Shelf Oil and Gas Leasing Program 2010–2015 re12 leased by the Secretary of the Interior (referred to in this 

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

14 Continental Shelf Lands Act (43 U.S.C. 1344) is consid15 ered to have been approved by the Secretary as a final 

16 oil and gas leasing program under that section, and is con17 sidered to be in full compliance with and in accordance 

18 with all requirements of the Outer Continental Shelf 

19 Lands Act, National Environmental Policy Act, Endan20 gered Species Act, Clean Air Act, Marine Mammals Pro21 tection Act, the Oil Pollution Control Act, and all other 

22 applicable laws. 

23 (b) FINAL ENVIRONMENTAL IMPACT STATEMENT.— 

24 The Secretary is considered to have issued a legally suffi25 cient final environmental impact statement for the proVerDate Nov 24 2008 00:17 Jun 16, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2846.IH H2846

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1 gram described in subsection (a) in accordance with all 

2 requirements under section 102(2)(C) of the National En3 vironmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), 

4 and all other applicable laws. 

5 SEC. 104. LEASE SALES. 

6 (a) OUTER CONTINENTAL SHELF.— 

7 (1) IN GENERAL.—Except as provided in para8 graph (2), not later than 30 days after the date of 

9 enactment of this Act and every 270 days thereafter, 

10 the Secretary of the Interior (referred to in this sec11 tion as the ‘‘Secretary’’) shall conduct a lease sale 

12 in each outer Continental Shelf planning region for 

13 which the Secretary determines that there is a com14 mercial interest in purchasing Federal oil and gas 

15 leases for production on the outer Continental Shelf. 

16 (2) SUBSEQUENT DETERMINATIONS AND

17 SALES.—If the Secretary determines that there is 

18 not a commercial interest in purchasing Federal oil 

19 and gas leases for production on the outer Conti20 nental Shelf in a planning area under this sub21 section, not later than 2 years after the date of en22 actment of the determination and every 2 years 

23 thereafter, the Secretary shall— 

24 (A) solicit if there is commercial interest in 

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1 duction on the outer Continental Shelf in the 

2 planning area; and 

3 (B) if the Secretary determines that there 

4 is a commercial interest described in subpara5 graph (A), conduct a lease sale in the planning 

6 area. 

7 (b) RENEWABLE ENERGY AND MARICULTURE.—The 

8 Secretary may conduct commercial lease sales of re9 sources— 

10 (1) to produce renewable energy (as defined in 

11 section 203(b) of the Energy Policy Act of 2005 (42 

12 U.S.C. 15852(b))); or 

13 (2) to cultivate marine organisms in the natural 

14 habitat of the organisms. 

15 SEC. 105. PROHIBITIONS ON SURFACE OCCUPANCY. 

16 (a) REGULATIONS.— 

17 (1) IN GENERAL.—The Secretary of the Inte18 rior shall promulgate regulations that establish man19 agement of the surface occupancy of the portion of 

20 the Outer Continental Shelf near the coastline to the 

21 effect that— 

22 (A) the coastal State shall have sole au23 thority to restrict or allow surface facilities 

24 above the waterline for the purpose of produc25 tion of oil or gas resources in any area that is 


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1 within 12 nautical miles seaward from the 

2 coastline of any coastal State, in any area of 

3 the Outer Continental Shelf that has not been 

4 made available for oil and gas leasing after 

5 January 1, 2001, in a final notice of sale; 

6 (B) unless permanent surface occupancy is 

7 authorized by the coastal State, only sub-sur8 face production facilities may be installed for 

9 areas that are located beyond 12 nautical miles 

10 but not more than 25 nautical miles seaward 

11 from the coastline of any coastal State, in any 

12 area of the Outer Continental Shelf that has 

13 not been made available for oil and gas leasing 

14 after January 1, 2001, in a final notice of sale; 

15 and 

16 (C) new offshore production facilities are 

17 encouraged and the impacts on coastal vistas 

18 are minimized, to the extent practical; and 

19 (D) onshore facilities that facilitate the de20 velopment and production of the resources of 

21 the Outer Continental Shelf within 12 nautical 

22 miles seaward of the coastline are allowed. 

23 (2) TEMPORARY ACTIVITIES NOT AFFECTED.— 

24 Nothing in these regulations shall restrict temporary 


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1 surface activities related to operations associated 

2 with Outer Continental Shelf oil and gas leases. 

3 SEC. 106. DEFINITIONS UNDER THE SUBMERGED LANDS 

4 ACT. 

5 Section 2 of the Submerged Lands Act (43 U.S.C. 

6 1301) is amended— 

7 (1) in subparagraph (2) of paragraph (a) by 

8 striking all after ‘‘seaward to a line’’ and inserting 

9 ‘‘twelve nautical miles distant from the coast line of 

10 such State;’’; 

11 (2) by striking out paragraph (b) and redesig12 nating the subsequent paragraphs in order as para13 graphs (b) through (g); 

14 (3) by striking the period at the end of para15 graph (g) (as so redesignated) and inserting ‘‘; 

16 and’’; 

17 (4) by adding the following: ‘‘(i) The term ‘Sec18 retary’ means the Secretary of the Interior.’’; and 

19 (5) by defining ‘‘State’’ as it is defined in sec20 tion 2(r) of the Outer Continental Shelf Lands Act 

21 (43 U.S.C. 1331(r)). 

22 SEC. 107. SEAWARD BOUNDARIES OF STATES. 

23 Section 4 of the Submerged Lands Act (43 U.S.C. 

24 1312) is amended— 


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1 (1) in the first sentence by striking ‘‘original’’, 

2 and in the same sentence by striking ‘‘three geo3 graphical’’ and inserting ‘‘twelve nautical’’; and 

4 (2) by striking all after the first sentence and 

5 inserting the following: ‘‘Extension and delineation 

6 of lateral offshore State boundaries under the provi7 sions of this Act shall follow the lines used to deter8 mine the Adjacent Zones of coastal States under the 

9 Outer Continental Shelf Lands Act to the extent 

10 such lines extend twelve nautical miles for the near11 est coastline.’’ 

12 SEC. 108. EXCEPTIONS FROM CONFIRMATION AND ESTAB13 LISHMENT OF STATES’ TITLE, POWER, AND 

14 RIGHTS. 

15 Section 5 of the Submerged Lands Act (43 U.S.C. 

16 1313) is amended— 

17 (1) by redesignating paragraphs (a) through (c) 

18 in order as paragraphs (1) through (3); 

19 (2) by inserting ‘‘(a)’’ before ‘‘There is ex20 cepted’’; and 

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

22 ‘‘(b) EXCEPTION OF OIL AND GAS MINERAL

23 RIGHTS.—There is excepted from the operation of sections 

24 3 and 4 all of the oil and gas mineral rights for lands 

25 beneath the navigable waters that are located within the 


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1 expanded offshore State seaward boundaries established 

2 under this Act. These oil and gas mineral rights shall re3 main Federal property and shall be considered to be part 

4 of the Federal outer Continental Shelf for purposes of the 

5 Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 

6 seq.) and subject to leasing under the authority of that 

7 Act and to laws applicable to the leasing of the oil and 

8 gas resources of the Federal outer Continental Shelf. All 

9 existing Federal oil and gas leases within the expanded 

10 offshore State seaward boundaries shall continue un11 changed by the provisions of this Act, except as otherwise 

12 provided herein. However, a State may exercise all of its 

13 sovereign powers of taxation within the entire extent of 

14 its expanded offshore State boundaries.’’. 

15 SEC. 109. DEFINITIONS UNDER THE OUTER CONTINENTAL 

16 SHELF LANDS ACT. 

17 Section 2 of the Outer Continental Shelf Lands Act 

18 (43 U.S.C. 1331) is amended— 

19 (1) by amending paragraph (f) to read as fol20 lows: 

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

22 State’.’’; 

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

24 of paragraphs (a) through (o) and inserting a pe25 riod; 


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1 (3) by striking ‘‘; and’’ at the end of paragraph 

2 (p) and inserting a period; 

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

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

5 to any program, plan, lease sale, leased tract or other ac6 tivity, proposed, conducted, or approved pursuant to the 

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

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

9 United States for the portion of the outer Continental 

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

11 or activity appertains or is, or is proposed to be, con12 ducted. For purposes of this paragraph, the term ‘State’ 

13 includes the Commonwealth of Puerto Rico, the Common14 wealth of the Northern Mariana Islands, the Virgin Is15 lands, American Samoa, Guam, and the other Territories 

16 of the United States. 

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

18 to any program, plan, lease sale, leased tract, or other ac19 tivity, proposed, conducted, or approved pursuant to the 

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

21 Shelf for which the laws of a particular Adjacent State 

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

23 of the United States. 

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


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

2 the term ‘coast line’ as defined in section 2(c) of the Sub3 merged Lands Act (43 U.S.C. 1301(c)). 

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

5 State having a common boundary at the coastline with the 

6 Adjacent State.’’; and 

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

9 States exclusive economic zone adjacent to the Terri10 tories of the United States’’. 

11 SEC. 110. DETERMINATION OF ADJACENT ZONES AND 

12 PLANNING AREAS. 

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

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

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

16 that follows through the end of the sentence and inserting 

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

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

19 are as indicated on the maps for each outer Continental 

20 Shelf region entitled ‘Alaska OCS Region State Adjacent 

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

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

23 Mexico OCS Region State Adjacent Zones and OCS Plan24 ning Areas’, and ‘Atlantic OCS Region State Adjacent 

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


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

2 Minerals Management Service.’’. 

3 SEC. 111. ADMINISTRATION OF LEASING. 

4 Section 5 of the Outer Continental Shelf Lands Act 

5 (43 U.S.C. 1334) is amended by adding at the end the 

6 following: 

7 ‘‘(k) VOLUNTARY PARTIAL RELINQUISHMENT OF A

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

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

10 no interest in producing and that the Secretary finds is 

11 geologically prospective. In return for any such relinquish12 ment, the Secretary shall provide to the lessee a royalty 

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

14 in accordance with regulations promulgated by the Sec15 retary to carry out this subsection. The Secretary shall 

16 publish final regulations implementing this subsection 

17 within 365 days after the date of the enactment of the 

18 Deep Ocean Energy Resources Act of 2009.’’. 

19 SEC. 112. GRANT OF LEASES BY SECRETARY. 

20 Section 8 of the Outer Continental Shelf Lands Act 

21 (43 U.S.C. 1337) is amended— 

22 (1) by adding at the end of subsection (b) the 

23 following: 

24 ‘‘The Secretary may issue more than one lease for 

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1 tinct range of vertical depths, horizontal surface area, or 

2 a combination of the two. The Secretary may issue regula3 tions that the Secretary determines are necessary to man4 age such leases consistent with the purposes of this Act.’’; 

5 (2) by amending subsection (p)(2)(B) to read 

6 as follows: 

7 ‘‘(B) The Secretary shall provide for the 

8 payment to coastal States, and their local coast9 al governments, of 75 percent of Federal re10 ceipts from projects authorized under this sec11 tion located partially or completely within the 

12 area extending seaward of State submerged 

13 lands out to 4 marine leagues from the coast14 line, and the payment to coastal States of 50 

15 percent of the receipts from projects completely 

16 located in the area more than 4 marine leagues 

17 from the coastline. Payments shall be based on 

18 a formula established by the Secretary by rule19 making no later than 180 days after the date 

20 of the enactment of the Deep Ocean Energy 

21 Resources Act of 2009 that provides for equi22 table distribution, based on proximity to the 

23 project, among coastal States that have coast24 line that is located within 200 miles of the geo25 graphic center of the project.’’; 


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

2 ‘‘(q) REMOVAL OF RESTRICTIONS ON JOINT BIDDING

3 IN CERTAIN AREAS OF THE OUTER CONTINENTAL

4 SHELF.—Restrictions on joint bidders shall no longer 

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

6 restrictions shall not apply to tracts in other OCS regions 

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

8 tracts’ under final regulations that shall be published by 

9 the Secretary by not later than 365 days after the date 

10 of the enactment of the Deep Ocean Energy Resources 

11 Act of 2009. 

12 ‘‘(r) ROYALTY SUSPENSION PROVISIONS.—After the 

13 date of the enactment of the Deep Ocean Energy Re14 sources Act of 2009, price thresholds shall apply to any 

15 royalty suspension volumes granted by the Secretary. Un16 less otherwise set by Secretary by regulation or for a par17 ticular lease sale, the price thresholds shall be $40.50 for 

18 oil (January 1, 2006, dollars) and $6.75 for natural gas 

19 (January 1, 2006, dollars). 

20 ‘‘(s) CONSERVATION OF RESOURCES FEES.—Not 

21 later than one year after the date of the enactment of the 

22 Deep Ocean Energy Resources Act of 2009, the Secretary 

23 by regulation shall establish a conservation of resources 

24 fee for nonproducing leases that will apply to new and ex25 isting leases which shall be set at $3.75 per acre per year. 


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1 This fee shall apply from and after October 1, 2009, and 

2 shall be treated as offsetting receipts.’’; 

3 (4) by striking subsection (a)(3)(A) and redes4 ignating the subsequent subparagraphs as subpara5 graphs (A) and (B), respectively; 

6 (5) in subsection (a)(3)(A) (as so redesignated) 

7 by striking ‘‘In the Western’’ and all that follows 

8 through ‘‘the Secretary’’ the first place it appears 

9 and inserting ‘‘The Secretary’’; and 

10 (6) effective October 1, 2009, in subsection 

11 (g)— 

12 (A) by striking all after ‘‘(g)’’, except para13 graph (3); 

14 (B) by striking the last sentence of para15 graph (3); and 

16 (C) by striking ‘‘(3)’’. 

17 SEC. 113. DISPOSITION OF RECEIPTS. 

18 Section 9 of the Outer Continental Shelf Lands Act 

19 (43 U.S.C. 1338) is amended— 

20 (1) by designating the existing text as sub21 section (a); 

22 (2) in subsection (a) (as so designated) by in23 serting ‘‘, if not paid as otherwise provided in this 

24 title’’ after ‘‘receipts’’; and 

25 (3) by adding the following: 


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

2 COMPLETELY WITHIN 100 MILES OF THE COASTLINE.— 

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

4 into a separate account in the Treasury the portion 

5 of OCS Receipts for each fiscal year that will be 

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

7 ‘‘(2) PHASED-IN RECEIPTS SHARING.— 

8 ‘‘(A) Beginning October 1, 2009, the Sec9 retary shall share OCS Receipts derived from 

10 the following areas: 

11 ‘‘(i) Lease tracts located on portions 

12 of the Gulf of Mexico OCS Region com13 pletely beyond 4 marine leagues from any 

14 coastline and completely within 100 miles 

15 of any coastline that were available for 

16 leasing under the 2002–2007 5-Year OCS 

17 Oil and Gas Leasing Program. 

18 ‘‘(ii) Lease tracts in production prior 

19 to October 1, 2009, completely beyond 4 

20 marine leagues from any coastline and 

21 completely within 100 miles of any coast22 line located on portions of the OCS that 

23 were not available for leasing under the 

24 2002–2007 5-Year OCS Oil and Gas Leas25 ing Program. 


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

2 issued prior to October 1, 2009, located in 

3 the Alaska OCS Region completely beyond 

4 4 marine leagues from any coastline and 

5 completely within 100 miles of the coast6 line. 

7 ‘‘(B) The Secretary shall share the fol8 lowing percentages of OCS Receipts from the 

9 leases described in subparagraph (A) derived 

10 during the fiscal year indicated: 

11 ‘‘(i) For fiscal year 2010, 5 percent. 

12 ‘‘(ii) For fiscal year 2011, 8 percent. 

13 ‘‘(iii) For fiscal year 2012, 11 per14 cent. 

15 ‘‘(iv) For fiscal year 2013, 14 percent. 

16 ‘‘(v) For fiscal year 2014, 17 percent. 

17 ‘‘(vi) For fiscal year 2015, 20 percent. 

18 ‘‘(vii) For fiscal year 2016, 23 per19 cent. 

20 ‘‘(viii) For fiscal year 2017, 26 per21 cent. 

22 ‘‘(ix) For fiscal year 2018, 29 percent. 

23 ‘‘(x) For fiscal year 2019, 32 percent. 

24 ‘‘(xi) For fiscal year 2020, 35 percent. 


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1 ‘‘(xii) For fiscal year 2021 and each 

2 subsequent fiscal year, 37.5 percent. 

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

4 not apply to leases that could not have been 

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

6 106(2) of the Deep Ocean Energy Resources 

7 Act of 2009. 

8 ‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin9 ning October 1, 2009, the Secretary shall share 

10 37.50 percent of OCS Receipts derived from all 

11 leases located completely beyond 4 marine leagues 

12 from any coastline and completely within 100 miles 

13 of any coastline not included within the provisions of 

14 paragraph (2), and 90 percent of the balance of 

15 such OCS Receipts shall be deposited into the Amer16 ican Renewable and Alternative Energy Trust Fund 

17 established by section 321 of the American Energy 

18 Act. 

19 ‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN

20 4 MARINE LEAGUES OF ANY COASTLINE.— 

21 ‘‘(A) AREAS DESCRIBED IN PARAGRAPH

22 (2).—Beginning October 1, 2009, and con23 tinuing through September 30, 2011, the Sec24 retary shall share 25 percent of OCS Receipts 

25 derived from all leases located within 4 marine 


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1 leagues from any coastline within areas de2 scribed in paragraph (2). For each fiscal year 

3 after September 30, 2011, the Secretary shall 

4 increase the percent shared in 5 percent incre5 ments each fiscal year until the sharing rate for 

6 all leases located within 4 marine leagues from 

7 any coastline within areas described in para8 graph (2) becomes 75 percent. 

9 ‘‘(B) AREAS NOT DESCRIBED IN PARA10 GRAPH (2).—Beginning October 1, 2009, the 

11 Secretary shall share 75 percent of OCS re12 ceipts derived from all leases located completely 

13 or partially within 4 marine leagues from any 

14 coastline within areas not described paragraph 

15 (2). 

16 ‘‘(5) ALLOCATIONS.—The Secretary shall allo17 cate the OCS Receipts deposited into the separate 

18 account established by paragraph (1) that are 

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

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

21 bonus bids from a leased tract, including inter22 est thereon, shall be allocated at the end of 

23 each fiscal year to the Adjacent State. 

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

25 royalties from a leased tract, including interest 


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1 thereon, shall be allocated at the end of each 

2 fiscal year to the Adjacent State and any other 

3 producing State or States with a leased tract 

4 within its Adjacent Zone within 100 miles of its 

5 coastline that generated royalties during the fis6 cal year, if the other producing State or States 

7 have a coastline point within 300 miles of any 

8 portion of the leased tract, in which case the 

9 amount allocated for the leased tract shall be— 

10 ‘‘(i) one-third to the Adjacent State; 

11 and 

12 ‘‘(ii) two-thirds to each producing 

13 State, including the Adjacent State, in14 versely proportional to the distance be15 tween the nearest point on the coastline of 

16 the producing State and the geographic 

17 center of the leased tract. 

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

19 PARTIALLY OR COMPLETELY BEYOND 100 MILES OF THE

20 COASTLINE.— 

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

22 into a separate account in the Treasury the portion 

23 of OCS Receipts for each fiscal year that will be 

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

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


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1 ‘‘(A) Beginning October 1, 2009, the Sec2 retary shall share OCS Receipts derived from 

3 the following areas: 

4 ‘‘(i) Lease tracts located on portions 

5 of the Gulf of Mexico OCS Region partially 

6 or completely beyond 100 miles of any 

7 coastline that were available for leasing 

8 under the 2002–2007 5-Year OCS Oil and 

9 Gas Leasing Program. 

10 ‘‘(ii) Lease tracts in production prior 

11 to October 1, 2009, partially or completely 

12 beyond 100 miles of any coastline located 

13 on portions of the OCS that were not 

14 available for leasing under the 2002–2007 

15 5-Year OCS Oil and Gas Leasing Pro16 gram. 

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

18 issued prior to October 1, 2009, located in 

19 the Alaska OCS Region partially or com20 pletely beyond 100 miles of the coastline. 

21 ‘‘(B) The Secretary shall share the fol22 lowing percentages of OCS Receipts from the 

23 leases described in subparagraph (A) derived 

24 during the fiscal year indicated: 

25 ‘‘(i) For fiscal year 2010, 5 percent. 


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1 ‘‘(ii) For fiscal year 2011, 8 percent. 

2 ‘‘(iii) For fiscal year 2012, 11 per3 cent. 

4 ‘‘(iv) For fiscal year 2013, 14 percent. 

5 ‘‘(v) For fiscal year 2014, 17 percent. 

6 ‘‘(vi) For fiscal year 2015, 20 percent. 

7 ‘‘(vii) For fiscal year 2016, 23 per8 cent. 

9 ‘‘(viii) For fiscal year 2017, 26 per10 cent. 

11 ‘‘(ix) For fiscal year 2018, 29 percent. 

12 ‘‘(x) For fiscal year 2019, 32 percent. 

13 ‘‘(xi) For fiscal year 2020, 35 percent. 

14 ‘‘(xii) For fiscal year 2021 and each 

15 subsequent fiscal year, 37.5 percent. 

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

17 not apply to leases that could not have been 

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

19 106(2) of the Deep Ocean Energy Resources 

20 Act of 2009. 

21 ‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin22 ning October 1, 2009, the Secretary shall share 37.5 

23 percent of OCS Receipts derived on and after Octo24 ber 1, 2009, from all leases located partially or com25 pletely beyond 100 miles of any coastline not inVerDate Nov 24 2008 00:17 Jun 16, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H2846.IH H2846

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1 cluded within the provisions of paragraph (2), except 

2 that the Secretary shall only share 25 percent of 

3 such OCS Receipts derived from all such leases 

4 within a State’s Adjacent Zone if no leasing is al5 lowed within any portion of that State’s Adjacent 

6 Zone located completely within 100 miles of any 

7 coastline. 

8 ‘‘(4) ALLOCATIONS.—The Secretary shall allo9 cate the OCS Receipts deposited into the separate 

10 account established by paragraph (1) that are 

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

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

13 bonus bids from a leased tract, including inter14 est thereon, shall be allocated at the end of 

15 each fiscal year to the Adjacent State. 

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

17 royalties from a leased tract, including interest 

18 thereon, shall be allocated at the end of each 

19 fiscal year to the Adjacent State and any other 

20 producing State or States with a leased tract 

21 within its Adjacent Zone partially or completely 

22 beyond 100 miles of its coastline that generated 

23 royalties during the fiscal year, if the other pro24 ducing State or States have a coastline point 

25 within 300 miles of any portion of the leased 


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1 tract, in which case the amount allocated for 

2 the leased tract shall be— 

3 ‘‘(i) one-third to the Adjacent State; 

4 and 

5 ‘‘(ii) two-thirds to each producing 

6 State, including the Adjacent State, in7 versely proportional to the distance be8 tween the nearest point on the coastline of 

9 the producing State and the geographic 

10 center of the leased tract. 

11 ‘‘(d) TRANSMISSION OF ALLOCATIONS.— 

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

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

14 transmit— 

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

16 State’s allocations under subsections (b)(5)(A), 

17 (b)(5)(B), (c)(4)(A), and (c)(4)(B) for the im18 mediate prior fiscal year; 

19 ‘‘(B) to each coastal county-equivalent and 

20 municipal political subdivisions of such State a 

21 total of 40 percent of such State’s allocations 

22 under subsections (b)(5)(A), (b)(5)(B), 

23 (c)(4)(A), and (c)(4)(B), together with all ac24 crued interest thereon; and 


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1 ‘‘(C) the remaining allocations under sub2 sections (b)(5) and (c)(4), together with all ac3 crued interest thereon. 

4 ‘‘(2) ALLOCATIONS TO COASTAL COUNTY5 EQUIVALENT POLITICAL SUBDIVISIONS.—The Sec6 retary shall make an initial allocation of the OCS 

7 Receipts to be shared under paragraph (1)(B) as fol8 lows: 

9 ‘‘(A) 25 percent shall be allocated to coast10 al county-equivalent political subdivisions that 

11 are completely more than 25 miles landward of 

12 the coastline and at least a part of which lies 

13 not more than 75 miles landward from the 

14 coastline, with the allocation among such coast15 al county-equivalent political subdivisions based 

16 on population. 

17 ‘‘(B) 75 percent shall be allocated to coast18 al county-equivalent political subdivisions that 

19 are completely or partially less than 25 miles 

20 landward of the coastline, with the allocation 

21 among such coastal county-equivalent political 

22 subdivisions to be further allocated as follows: 

23 ‘‘(i) 25 percent shall be allocated 

24 based on the ratio of such coastal county25 equivalent political subdivision’s population 


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1 to the coastal population of all coastal 

2 county-equivalent political subdivisions in 

3 the State. 

4 ‘‘(ii) 25 percent shall be allocated 

5 based on the ratio of such coastal county6 equivalent political subdivision’s coastline 

7 miles to the coastline miles of all coastal 

8 county-equivalent political subdivisions in 

9 the State as calculated by the Secretary. 

10 In such calculations, coastal county-equiva11 lent political subdivisions without a coast12 line shall be considered to have 50 percent 

13 of the average coastline miles of the coast14 al county-equivalent political subdivisions 

15 that do have coastlines. 

16 ‘‘(iii) 25 percent shall be allocated to 

17 all coastal county-equivalent political sub18 divisions having a coastline point within 

19 300 miles of the leased tract for which 

20 OCS Receipts are being shared based on a 

21 formula that allocates the funds based on 

22 such coastal county-equivalent political 

23 subdivision’s relative distance from the 

24 leased tract. 


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1 ‘‘(iv) 25 percent shall be allocated to 

2 all coastal county-equivalent political sub3 divisions having a coastline point within 

4 300 miles of the leased tract for which 

5 OCS Receipts are being shared based on 

6 the relative level of outer Continental Shelf 

7 oil and gas activities in a coastal political 

8 subdivision compared to the level of outer 

9 Continental Shelf activities in all coastal 

10 political subdivisions in the State. The Sec11 retary shall define the term ‘outer Conti12 nental Shelf oil and gas activities’ for pur13 poses of this subparagraph to include, but 

14 not be limited to, construction of vessels, 

15 drillships, and platforms involved in explo16 ration, production, and development on the 

17 outer Continental Shelf; support and sup18 ply bases, ports, and related activities; of19 fices of geologists, geophysicists, engineers, 

20 and other professionals involved in support 

21 of exploration, production, and develop22 ment of oil and gas on the outer Conti23 nental Shelf; pipelines and other means of 

24 transporting oil and gas production from 

25 the outer Continental Shelf; and processing 


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1 and refining of oil and gas production from 

2 the outer Continental Shelf. For purposes 

3 of this subparagraph, if a coastal county4 equivalent political subdivision does not 

5 have a coastline, its coastal point shall be 

6 the point on the coastline closest to it. 

7 ‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO8 LITICAL SUBDIVISIONS.—The initial allocation to 

9 each coastal county-equivalent political subdivision 

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

11 coastal county-equivalent political subdivision and 

12 any coastal municipal political subdivisions located 

13 partially or wholly within the boundaries of the 

14 coastal county-equivalent political subdivision as fol15 lows: 

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

17 coastal county-equivalent political subdivision. 

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

19 capita basis to the municipal political subdivi20 sions and the county-equivalent political sub21 division, with the allocation to the latter based 

22 upon its population not included within the 

23 boundaries of a municipal political subdivision. 

24 ‘‘(e) INVESTMENT OF DEPOSITS.—Amounts depos25 ited under this section shall be invested by the Secretary 


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

2 credit of the United States having maturities suitable to 

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

4 yielding the highest reasonably available interest rates as 

5 determined by the Secretary of the Treasury. 

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

7 section may use the funds for one or more of the following: 

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

9 institutions of higher learning and otherwise support 

10 public education, including career technical edu11 cation. 

12 ‘‘(2) To make transportation infrastructure im13 provements. 

14 ‘‘(3) To reduce taxes. 

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

16 ‘‘(A) coastal or environmental restoration; 

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

18 enhancement; 

19 ‘‘(C) waterways construction and mainte20 nance; 

21 ‘‘(D) levee construction and maintenance 

22 and shore protection; and 

23 ‘‘(E) marine and oceanographic education 

24 and research. 

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


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1 ‘‘(A) infrastructure associated with energy 

2 production activities conducted on the outer 

3 Continental Shelf; 

4 ‘‘(B) energy demonstration projects; 

5 ‘‘(C) supporting infrastructure for shore6 based energy projects; 

7 ‘‘(D) State geologic programs, including 

8 geologic mapping and data storage programs, 

9 and State geophysical data acquisition; 

10 ‘‘(E) State seismic monitoring programs, 

11 including operation of monitoring stations; 

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

13 through enhanced recovery techniques; 

14 ‘‘(G) alternative energy development, in15 cluding bio fuels, coal-to-liquids, oil shale, tar 

16 sands, geothermal, geopressure, wind, waves, 

17 currents, hydro, solar, and other renewable en18 ergy; 

19 ‘‘(H) energy efficiency and conservation 

20 programs; and 

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

22 facilities that produce liquid fuels from hydro23 carbons and other biological matter. 

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


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1 ‘‘(A) historic preservation programs and 

2 projects; 

3 ‘‘(B) natural disaster planning and re4 sponse; and 

5 ‘‘(C) hurricane and natural disaster insur6 ance programs. 

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

8 State law. 

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

10 funds under this section shall be required to account to 

11 the Federal Government for the expenditure of such 

12 funds, except as otherwise may be required by law. How13 ever, States may enact legislation providing for accounting 

14 for and auditing of such expenditures. Further, funds allo15 cated under this section to States and political subdivi16 sions may be used as matching funds for other Federal 

17 programs. 

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

19 future Federal statute that has the effect, as determined 

20 by the Secretary, of restricting any Federal agency from 

21 spending appropriated funds, or otherwise preventing it 

22 from fulfilling its pre-existing responsibilities as of the 

23 date of enactment of the statute, unless such responsibil24 ities have been reassigned to another Federal agency by 

25 the statute with no prevention of performance, to issue 


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1 any permit or other approval impacting on the OCS oil 

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

3 or to implement any provision of this Act shall automati4 cally prohibit any sharing of OCS Receipts under this sec5 tion directly with the States, and their coastal political 

6 subdivisions, for the duration of the restriction. The Sec7 retary shall make the determination of the existence of 

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

9 outer Continental Shelf lessee or producing State. 

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

11 ‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL

12 SUBDIVISION.—The term ‘coastal county-equivalent 

13 political subdivision’ means a political jurisdiction 

14 immediately below the level of State government, in15 cluding a county, parish, borough in Alaska, inde16 pendent municipality not part of a county, parish, or 

17 borough in Alaska, or other equivalent subdivision of 

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

19 ‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI20 SION.—The term ‘coastal municipal political subdivi21 sion’ means a municipality located within and part 

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

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

24 coastal municipal political subdivision lies within the 

25 coastal zone. 


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

2 population’ means the population of all coastal coun3 ty-equivalent political subdivisions, as determined by 

4 the most recent official data of the Census Bureau. 

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

6 means that portion of a coastal State, including the 

7 entire territory of any coastal county-equivalent po8 litical subdivision at least a part of which lies, within 

9 75 miles landward from the coastline, or a greater 

10 distance as determined by State law enacted to im11 plement this section. 

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

13 means all funds received by the Secretary to issue 

14 an outer Continental Shelf minerals lease. 

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

16 all funds received by the Secretary from production 

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

18 in-kind, from an outer Continental Shelf minerals 

19 lease. 

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

21 State’ means an Adjacent State having an Adjacent 

22 Zone containing leased tracts from which OCS Re23 ceipts were derived. 


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

2 means bonus bids, royalties, and conservation of re3 sources fees.’’. 

4 SEC. 114. RESERVATION OF LANDS AND RIGHTS. 

5 Section 12 of the Outer Continental Shelf Lands Act 

6 (43 U.S.C. 1341) is amended by adding at the end the 

7 following: 

8 ‘‘(g) PROHIBITION ON LEASING EAST OF THE MILI9 TARY MISSION LINE.— 

10 ‘‘(1) Notwithstanding any other provision of 

11 law, from and after the enactment of the Deep 

12 Ocean Energy Resources Act of 2009, prior to Janu13 ary 1, 2022, no area of the outer Continental Shelf 

14 located in the Gulf of Mexico east of the military 

15 mission line may be offered for leasing for oil and 

16 gas or natural gas unless a waiver is issued by the 

17 Secretary of Defense. If such a waiver is granted, 

18 62.5 percent of the OCS Receipts from a lease with19 in such area issued because of such waiver shall be 

20 paid annually to the National Guards of all States 

21 having a point within 1000 miles of such a lease, al22 located among the States on a per capita basis using 

23 the entire population of such States. 

24 ‘‘(2) In this subsection, the term ‘military mis25 sion line’ means a line located at 86 degrees, 41 


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1 minutes West Longitude, and extending south from 

2 the coast of Florida to the outer boundary of United 

3 States territorial waters in the Gulf of Mexico.’’. 

4 SEC. 115. OUTER CONTINENTAL SHELF LEASING PROGRAM. 

5 Section 18 of the Outer Continental Shelf Lands Act 

6 (43 U.S.C. 1344) is amended— 

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

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

9 each 5-Year Program, include lease sales that when 

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

11 leasing at least 75 percent of the available unleased 

12 acreage within each OCS Planning Area. Available 

13 unleased acreage is that portion of the outer Conti14 nental Shelf that is not under lease at the time of 

15 the proposed lease sale, and has not otherwise been 

16 made unavailable for leasing by law.’’; 

17 (2) in subsection (c), by striking so much as 

18 precedes paragraph (3) and inserting the following: 

19 ‘‘(c)(1) During the preparation of any proposed leas20 ing program under this section, the Secretary shall con21 sider and analyze leasing throughout the entire outer Con22 tinental Shelf without regard to any other law affecting 

23 such leasing. During this preparation the Secretary shall 

24 invite and consider suggestions from any interested Fed25 eral agency, including the Attorney General, in consultaVerDate Nov 24 2008 00:17 Jun 16, 2009 Jkt 079200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H2846.IH H2846

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1 tion with the Federal Trade Commission, and from the 

2 Governor of any coastal State. The Secretary may also in3 vite or consider any suggestions from the executive of any 

4 local government in a coastal State that have been pre5 viously submitted to the Governor of such State, and from 

6 any other person. Further, the Secretary shall consult 

7 with the Secretary of Defense regarding military oper8 ational needs in the outer Continental Shelf. The Sec9 retary shall work with the Secretary of Defense to resolve 

10 any conflicts that might arise regarding offering any area 

11 of the outer Continental Shelf for oil and gas leasing. If 

12 the Secretaries are not able to resolve all such conflicts, 

13 any unresolved issues shall be elevated to the President 

14 for resolution. 

15 ‘‘(2) After the consideration and analysis required by 

16 paragraph (1), including the consideration of the sugges17 tions received from any interested Federal agency, the 

18 Federal Trade Commission, the Governor of any coastal 

19 State, any local government of a coastal State, and any 

20 other person, the Secretary shall publish in the Federal 

21 Register a proposed leasing program accompanied by a 

22 draft environmental impact statement prepared pursuant 

23 to the National Environmental Policy Act of 1969. After 

24 the publishing of the proposed leasing program and during 

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1 mental impact statement, the Secretary shall submit a 

2 copy of the proposed program to the Governor of each af3 fected State for review and comment. The Governor may 

4 solicit comments from those executives of local govern5 ments in the Governor’s State that the Governor, in the 

6 discretion of the Governor, determines will be affected by 

7 the proposed program. If any comment by such Governor 

8 is received by the Secretary at least 15 days prior to sub9 mission to the Congress pursuant to paragraph (3) and 

10 includes a request for any modification of such proposed 

11 program, the Secretary shall reply in writing, granting or 

12 denying such request in whole or in part, or granting such 

13 request in such modified form as the Secretary considers 

14 appropriate, and stating the Secretary’s reasons therefor. 

15 All such correspondence between the Secretary and the 

16 Governor of any affected State, together with any addi17 tional information and data relating thereto, shall accom18 pany such proposed program when it is submitted to the 

19 Congress.’’; and 

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

21 ‘‘(i) PROJECTION OF STATE ADJACENT ZONE RE22 SOURCES AND STATE AND LOCAL GOVERNMENT SHARES

23 OF OCS RECEIPTS.—Concurrent with the publication of 

24 the scoping notice at the beginning of the development of 

25 each 5-Year Outer Continental Shelf Oil and Gas Leasing 


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1 Program, or as soon thereafter as possible, the Secretary 

2 shall— 

3 ‘‘(1) provide to each Adjacent State a current 

4 estimate of proven and potential oil and gas re5 sources located within the State’s Adjacent Zone; 

6 and 

7 ‘‘(2) provide to each Adjacent State, and coast8 al political subdivisions thereof, a best-efforts projec9 tion of the OCS Receipts that the Secretary expects 

10 will be shared with each Adjacent State, and its 

11 coastal political subdivisions, using the assumption 

12 that the unleased tracts within the State’s Adjacent 

13 Zone are fully made available for leasing, including 

14 long-term projected OCS Receipts. In addition, the 

15 Secretary shall include a macroeconomic estimate of 

16 the impact of such leasing on the national economy 

17 and each State’s economy, including investment, 

18 jobs, revenues, personal income, and other cat19 egories.’’. 

20 SEC. 116. COORDINATION WITH ADJACENT STATES. 

21 Section 19 of the Outer Continental Shelf Lands Act 

22 (43 U.S.C. 1345) is amended— 

23 (1) in subsection (a) in the first sentence by in24 serting ‘‘, for any tract located within the Adjacent 

25 State’s Adjacent Zone,’’ after ‘‘government’’; and 


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1 (2) by adding the following: 

2 ‘‘(f)(1) No Federal agency may permit or otherwise 

3 approve, without the concurrence of the Adjacent State, 

4 the construction of a crude oil or petroleum products (or 

5 both) pipeline within the part of the Adjacent State’s Ad6 jacent Zone that is withdrawn from oil and gas leasing, 

7 except that such a pipeline may be approved, without such 

8 Adjacent State’s concurrence, to pass through such Adja9 cent Zone if at least 50 percent of the production pro10 jected to be carried by the pipeline within its first 10 years 

11 of operation is from areas of the Adjacent State’s Adja12 cent Zone. 

13 ‘‘(2) No State may prohibit the construction within 

14 its Adjacent Zone or its State waters of a natural gas pipe15 line that will transport natural gas produced from the 

16 outer Continental Shelf. However, an Adjacent State may 

17 prevent a proposed natural gas pipeline landing location 

18 if it proposes two alternate landing locations in the Adja19 cent State, acceptable to the Adjacent State, located with20 in 50 miles on either side of the proposed landing loca21 tion.’’. 

22 SEC. 117. ENVIRONMENTAL STUDIES. 

23 Section 20(d) of the Outer Continental Shelf Lands 

24 Act (43 U.S.C. 1346) is amended— 

25 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 


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

2 ‘‘(2) For all programs, lease sales, leases, and 

3 actions under this Act, the following shall apply re4 garding the application of the National Environ5 mental Policy Act of 1969: 

6 ‘‘(A) Granting or directing lease suspen7 sions and the conduct of all preliminary activi8 ties on outer Continental Shelf tracts, including 

9 seismic activities, are categorically excluded 

10 from the need to prepare either an environ11 mental assessment or an environmental impact 

12 statement, and the Secretary shall not be re13 quired to analyze whether any exceptions to a 

14 categorical exclusion apply for activities con15 ducted under the authority of this Act. 

16 ‘‘(B) The environmental impact statement 

17 developed in support of each 5-Year Oil and 

18 Gas Leasing Program provides the environ19 mental analysis for all lease sales to be con20 ducted under the program and such sales shall 

21 not be subject to further environmental anal22 ysis. 

23 ‘‘(C) Exploration plans shall not be subject 

24 to any requirement to prepare an environmental 

25 impact statement, and the Secretary may find 


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1 that exploration plans are eligible for categor2 ical exclusion due to the impacts already being 

3 considered within an environmental impact 

4 statement or due to mitigation measures in5 cluded within the plan. 

6 ‘‘(D) Within each OCS Planning Area, 

7 after the preparation of the first development 

8 and production plan environmental impact 

9 statement for a leased tract within the Area, fu10 ture development and production plans for 

11 leased tracts within the Area shall only require 

12 the preparation of an environmental assessment 

13 unless the most recent development and produc14 tion plan environmental impact statement with15 in the Area was finalized more than 10 years 

16 prior to the date of the approval of the plan, in 

17 which case an environmental impact statement 

18 shall be required.’’. 

19 SEC. 118. OUTER CONTINENTAL SHELF INCOMPATIBLE 

20 USE. 

21 (a) IN GENERAL.—No Federal agency may permit 

22 construction or operation (or both) of any facility, or des23 ignate or maintain a restricted transportation corridor or 

24 operating area on the Federal outer Continental Shelf or 

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1 mined by the Secretary of the Interior, oil and gas leasing 

2 and substantially full exploration and production of tracts 

3 that are geologically prospective for oil or natural gas (or 

4 both). 

5 (b) EXCEPTIONS.—Subsection (a) shall not apply to 

6 any facility, transportation corridor, or operating area the 

7 construction, operation, designation, or maintenance of 

8 which is or will be— 

9 (1) located in an area of the outer Continental 

10 Shelf that is unavailable for oil and gas leasing by 

11 operation of law; 

12 (2) used for a military readiness activity (as de13 fined in section 315(f) of Public Law 107–314; 16 

14 U.S.C. 703 note); or 

15 (3) required in the national interest, as deter16 mined by the President. 

17 SEC. 119. REPURCHASE OF CERTAIN LEASES. 

18 (a) AUTHORITY TO REPURCHASE AND CANCEL CER19 TAIN LEASES.—The Secretary of the Interior shall repur20 chase and cancel any Federal oil and gas, geothermal, 

21 coal, oil shale, tar sands, or other mineral lease, whether 

22 onshore or offshore, but not including any outer Conti23 nental Shelf oil and gas leases that were subject to litiga24 tion in the Court of Federal Claims on January 1, 2006, 

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1 chase and cancellation under the regulations authorized 

2 by this section. 

3 (b) REGULATIONS.—Not later than 365 days after 

4 the date of the enactment of this Act, the Secretary shall 

5 publish a final regulation stating the conditions under 

6 which a lease referred to in subsection (a) would qualify 

7 for repurchase and cancellation, and the process to be fol8 lowed regarding repurchase and cancellation. Such regula9 tion shall include, but not be limited to, the following: 

10 (1) The Secretary shall repurchase and cancel 

11 a lease after written request by the lessee upon a 

12 finding by the Secretary that— 

13 (A) a request by the lessee for a required 

14 permit or other approval complied with applica15 ble law, except the Coastal Zone Management 

16 Act of 1972 (16 U.S.C. 1451 et seq.), and 

17 terms of the lease and such permit or other ap18 proval was denied; 

19 (B) a Federal agency failed to act on a re20 quest by the lessee for a required permit, other 

21 approval, or administrative appeal within a reg22 ulatory or statutory time-frame associated with 

23 the requested action, whether advisory or man24 datory, or if none, within 180 days; or 


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1 (C) a Federal agency attached a condition 

2 of approval, without agreement by the lessee, to 

3 a required permit or other approval if such con4 dition of approval was not mandated by Federal 

5 statute or regulation in effect on the date of 

6 lease issuance, or was not specifically allowed 

7 under the terms of the lease. 

8 (2) A lessee shall not be required to exhaust ad9 ministrative remedies regarding a permit request, 

10 administrative appeal, or other required request for 

11 approval for the purposes of this section. 

12 (3) The Secretary shall make a final agency de13 cision on a request by a lessee under this section 

14 within 180 days of request. 

15 (4) Compensation to a lessee to repurchase and 

16 cancel a lease under this section shall be the amount 

17 that a lessee would receive in a restitution case for 

18 a material breach of contract. 

19 (5) Compensation shall be in the form of a 

20 check or electronic transfer from the Department of 

21 the Treasury from funds deposited into miscella22 neous receipts under the authority of the same Act 

23 that authorized the issuance of the lease being re24 purchased. 


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1 (6) Failure of the Secretary to make a final 

2 agency decision on a request by a lessee under this 

3 section within 180 days of request shall result in a 

4 10 percent increase in the compensation due to the 

5 lessee if the lease is ultimately repurchased. 

6 (c) NO PREJUDICE.—This section shall not be inter7 preted to prejudice any other rights that the lessee would 

8 have in the absence of this section. 

9 SEC. 120. OFFSITE ENVIRONMENTAL MITIGATION. 

10 Notwithstanding any other provision of law, any per11 son conducting activities under the Mineral Leasing Act 

12 (30 U.S.C. 181 et seq.), the Geothermal Steam Act (30 

13 U.S.C. 1001 et seq.), the Mineral Leasing Act for Ac14 quired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 

15 U.S.C. 552 et seq.), the General Mining Act of 1872 (30 

16 U.S.C. 22 et seq.), the Materials Act of 1947 (30 U.S.C. 

17 601 et seq.), or the Outer Continental Shelf Lands Act 

18 (43 U.S.C. 1331 et seq.), may in satisfying any mitigation 

19 requirements associated with such activities propose miti20 gation measures on a site away from the area impacted 

21 and the Secretary of the Interior shall accept these pro22 posed measures if the Secretary finds that they generally 

23 achieve the purposes for which mitigation measures apper24 tained. 


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1 SEC. 121. OCS REGIONAL HEADQUARTERS. 

2 Not later than July 1, 2011, the Secretary of the In3 terior shall establish the headquarters for the Atlantic 

4 OCS Region, the headquarters for the Gulf of Mexico OCS 

5 Region, and the headquarters for the Pacific OCS Region 

6 within a State bordering the Atlantic OCS Region, a State 

7 bordering the Gulf of Mexico OCS Region, and a State 

8 bordering the Pacific OCS Region. Such Atlantic and Pa9 cific OCS Regions headquarters shall be located within 25 

10 miles of the coastline and each Minerals Management 

11 Service OCS regional headquarters shall be the permanent 

12 duty station for all Minerals Management Service per13 sonnel that on a daily basis spend on average 60 percent 

14 or more of their time in performance of duties in support 

15 of the activities of the respective Region, except that the 

16 Minerals Management Service may house regional inspec17 tion staff in other locations. Each OCS Region shall each 

18 be led by a Regional Director who shall be an employee 

19 within the Senior Executive Service. 

20 SEC. 122. LEASES FOR AREAS LOCATED WITHIN 12 NAU21 TICAL MILES OF CALIFORNIA OR FLORIDA. 

22 (a) AUTHORIZATION TO CANCEL AND EXCHANGE

23 CERTAIN EXISTING OIL AND GAS LEASES.— 

24 (1) AUTHORITY.—Within 2 years after the date 

25 of enactment of this Act, the lessee of an existing oil 

26 and gas lease for an area located completely within 


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1 12 nautical miles of the coastline within the Cali2 fornia or Florida Adjacent Zones shall have the op3 tion, without compensation, of exchanging such lease 

4 for a new oil and gas lease having a primary term 

5 of 5 years. For the area subject to the new lease, the 

6 lessee may select any unleased tract on the outer 

7 Continental Shelf that is in an area available for 

8 leasing. 

9 (2) ADMINISTRATIVE PROCESS.—The Secretary 

10 of the Interior shall establish a reasonable adminis11 trative process to implement paragraph (1). Ex12 changes and conversions under subsection (a), in13 cluding the issuance of new leases, shall not be con14 sidered to be major Federal actions for purposes of 

15 the National Environmental Policy Act of 1969 (42 

16 U.S.C. 4321 et seq.). Further, such actions con17 ducted in accordance with this section are deemed to 

18 be in compliance all provisions of the Outer Conti19 nental Shelf Lands Act (43 U.S.C. 1331 et seq.). 

20 (3) OPERATING RESTRICTIONS.—A new lease 

21 issued in exchange for an existing lease under this 

22 section shall be subject to such national defense op23 erating stipulations on the OCS tract covered by the 

24 new lease as may be applicable upon issuance. 


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1 (4) PRIORITY.—The Secretary shall give pri2 ority in the lease exchange process based on the 

3 amount of the original bonus bid paid for the 

4 issuance of each lease to be exchanged. The Sec5 retary shall allow leases covering partial tracts to be 

6 exchanged for leases covering full tracts conditioned 

7 upon payment of additional bonus bids on a per-acre 

8 basis as determined by the average per acre of the 

9 original bonus bid per acre for the partial tract 

10 being exchanged. 

11 (b) FURTHER LEASE CANCELLATION AND EX12 CHANGE PROVISIONS.— 

13 (1) CANCELLATION OF LEASE.—As part of the 

14 lease exchange process under this section, the Sec15 retary shall cancel a lease that is exchanged under 

16 this section. 

17 (2) CONSENT OF LESSEES.—All lessees holding 

18 an interest in a lease must consent to cancellation 

19 of their leasehold interests in order for the lease to 

20 be cancelled and exchanged under this section. 

21 (3) WAIVER OF RIGHTS.—As a prerequisite to 

22 the exchange of a lease under this section, the lessee 

23 must waive any rights to bring any litigation against 

24 the United States related to the transaction. 


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1 (4) PLUGGING AND ABANDONMENT.—The plug2 ging and abandonment requirements for any wells 

3 located on any lease to be cancelled and exchanged 

4 under this section must be complied with by the les5 sees prior to the cancellation and exchange. 

6 (c) EXISTING OIL AND GAS LEASE DEFINED.—In 

7 this section the term ‘‘existing oil and gas lease’’ means 

8 an oil and gas lease in effect on the date of the enactment 

9 of this Act. 

10 SEC. 123. COASTAL IMPACT ASSISTANCE. 

11 Section 31 of the Outer Continental Shelf Lands Act 

12 (43 U.S.C. 1356a) is repealed. 

13 SEC. 124. REPEAL OF THE GULF OF MEXICO ENERGY SECU14 RITY ACT OF 2006. 

15 The Gulf of Mexico Energy Security Act of 2006 is 

16 repealed effective October 1, 2009. 

17 Subtitle B—ANWR 

18 SEC. 141. SHORT TITLE. 

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

20 Independence and Price Reduction Act’’. 

21 SEC. 142. DEFINITIONS. 

22 In this subtitle: 

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

24 Plain’’ means that area described in appendix I to 

25 part 37 of title 50, Code of Federal Regulations. 


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1 (2) SECRETARY.—The term ‘‘Secretary’’, except 

2 as otherwise provided, means the Secretary of the 

3 Interior or the Secretary’s designee. 

4 SEC. 143. LEASING PROGRAM FOR LANDS WITHIN THE 

5 COASTAL PLAIN. 

6 (a) IN GENERAL.—The Secretary shall take such ac7 tions as are necessary— 

8 (1) to establish and implement, in accordance 

9 with this subtitle and acting through the Director of 

10 the Bureau of Land Management in consultation 

11 with the Director of the United States Fish and 

12 Wildlife Service, a competitive oil and gas leasing 

13 program that will result in an environmentally sound 

14 program for the exploration, development, and pro15 duction of the oil and gas resources of the Coastal 

16 Plain; and 

17 (2) to administer the provisions of this subtitle 

18 through regulations, lease terms, conditions, restric19 tions, prohibitions, stipulations, and other provisions 

20 that ensure the oil and gas exploration, development, 

21 and production activities on the Coastal Plain will 

22 result in no significant adverse effect on fish and 

23 wildlife, their habitat, subsistence resources, and the 

24 environment, including, in furtherance of this goal, 

25 by requiring the application of the best commercially 


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1 available technology for oil and gas exploration, de2 velopment, and production to all exploration, devel3 opment, and production operations under this sub4 title in a manner that ensures the receipt of fair 

5 market value by the public for the mineral resources 

6 to be leased. 

7 (b) REPEAL.— 

8 (1) REPEAL.—Section 1003 of the Alaska Na9 tional Interest Lands Conservation Act of 1980 (16 

10 U.S.C. 3143) is repealed. 

11 (2) CONFORMING AMENDMENT.—The table of 

12 contents in section 1 of such Act is amended by 

13 striking the item relating to section 1003. 

14 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER15 TAIN OTHER LAWS.— 

16 (1) COMPATIBILITY.—For purposes of the Na17 tional Wildlife Refuge System Administration Act of 

18 1966 (16 U.S.C. 668dd et seq.), the oil and gas 

19 leasing program and activities authorized by this 

20 section in the Coastal Plain are deemed to be com21 patible with the purposes for which the Arctic Na22 tional Wildlife Refuge was established, and no fur23 ther findings or decisions are required to implement 

24 this determination. 


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1 (2) ADEQUACY OF THE DEPARTMENT OF THE

2 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

3 STATEMENT.—The ‘‘Final Legislative Environ4 mental Impact Statement’’ (April 1987) on the 

5 Coastal Plain prepared pursuant to section 1002 of 

6 the Alaska National Interest Lands Conservation 

7 Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) 

8 of the National Environmental Policy Act of 1969 

9 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the re10 quirements under the National Environmental Policy 

11 Act of 1969 that apply with respect to prelease ac12 tivities, including actions authorized to be taken by 

13 the Secretary to develop and promulgate the regula14 tions for the establishment of a leasing program au15 thorized by this subtitle before the conduct of the 

16 first lease sale. 

17 (3) COMPLIANCE WITH NEPA FOR OTHER AC18 TIONS.—Before conducting the first lease sale under 

19 this subtitle, the Secretary shall prepare an environ20 mental impact statement under the National Envi21 ronmental Policy Act of 1969 with respect to the ac22 tions authorized by this subtitle that are not re23 ferred to in paragraph (2). Notwithstanding any 

24 other law, the Secretary is not required to identify 

25 nonleasing alternative courses of action or to analyze 


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1 the environmental effects of such courses of action. 

2 The Secretary shall only identify a preferred action 

3 for such leasing and a single leasing alternative, and 

4 analyze the environmental effects and potential miti5 gation measures for those two alternatives. The 

6 identification of the preferred action and related 

7 analysis for the first lease sale under this subtitle 

8 shall be completed within 18 months after the date 

9 of enactment of this Act. The Secretary shall only 

10 consider public comments that specifically address 

11 the Secretary’s preferred action and that are filed 

12 within 20 days after publication of an environmental 

13 analysis. Notwithstanding any other law, compliance 

14 with this paragraph is deemed to satisfy all require15 ments for the analysis and consideration of the envi16 ronmental effects of proposed leasing under this sub17 title. 

18 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR19 ITY.—Nothing in this subtitle shall be considered to ex20 pand or limit State and local regulatory authority. 

21 (e) SPECIAL AREAS.— 

22 (1) IN GENERAL.—The Secretary, after con23 sultation with the State of Alaska, the city of 

24 Kaktovik, and the North Slope Borough, may des25 ignate up to a total of 45,000 acres of the Coastal 


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1 Plain as a Special Area if the Secretary determines 

2 that the Special Area is of such unique character 

3 and interest so as to require special management 

4 and regulatory protection. The Secretary shall des5 ignate as such a Special Area the Sadlerochit Spring 

6 area, comprising approximately 4,000 acres. 

7 (2) MANAGEMENT.—Each such Special Area 

8 shall be managed so as to protect and preserve the 

9 area’s unique and diverse character including its 

10 fish, wildlife, and subsistence resource values. 

11 (3) EXCLUSION FROM LEASING OR SURFACE

12 OCCUPANCY.—The Secretary may exclude any Spe13 cial Area from leasing. If the Secretary leases a Spe14 cial Area, or any part thereof, for purposes of oil 

15 and gas exploration, development, production, and 

16 related activities, there shall be no surface occu17 pancy of the lands comprising the Special Area. 

18 (4) DIRECTIONAL DRILLING.—Notwithstanding 

19 the other provisions of this subsection, the Secretary 

20 may lease all or a portion of a Special Area under 

21 terms that permit the use of horizontal drilling tech22 nology from sites on leases located outside the Spe23 cial Area. 

24 (f) LIMITATION ON CLOSED AREAS.—The Sec25 retary’s sole authority to close lands within the Coastal 


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1 Plain to oil and gas leasing and to exploration, develop2 ment, and production is that set forth in this subtitle. 

3 (g) REGULATIONS.— 

4 (1) IN GENERAL.—The Secretary shall pre5 scribe such regulations as may be necessary to carry 

6 out this subtitle, including rules and regulations re7 lating to protection of the fish and wildlife, their 

8 habitat, subsistence resources, and environment of 

9 the Coastal Plain, by no later than 15 months after 

10 the date of enactment of this Act. 

11 (2) REVISION OF REGULATIONS.—The Sec12 retary shall periodically review and, if appropriate, 

13 revise the rules and regulations issued under sub14 section (a) to reflect any significant biological, envi15 ronmental, or engineering data that come to the Sec16 retary’s attention. 

17 SEC. 144. LEASE SALES. 

18 (a) IN GENERAL.—Lands may be leased pursuant to 

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

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

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

22 (b) PROCEDURES.—The Secretary shall, by regula23 tion, establish procedures for— 

24 (1) receipt and consideration of sealed nomina25 tions for any area in the Coastal Plain for inclusion 


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

2 a lease sale; 

3 (2) the holding of lease sales after such nomina4 tion process; and 

5 (3) public notice of and comment on designa6 tion of areas to be included in, or excluded from, a 

7 lease sale. 

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

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

10 (d) ACREAGE MINIMUM IN FIRST SALE.—In the first 

11 lease sale under this subtitle, the Secretary shall offer for 

12 lease those tracts the Secretary considers to have the 

13 greatest potential for the discovery of hydrocarbons, tak14 ing into consideration nominations received pursuant to 

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

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

17 shall— 

18 (1) conduct the first lease sale under this sub19 title within 22 months after the date of the enact20 ment of this Act; 

21 (2) evaluate the bids in such sale and issue 

22 leases resulting from such sale, within 90 days after 

23 the date of the completion of such sale; and 


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1 (3) conduct additional sales so long as sufficient 

2 interest in development exists to warrant, in the Sec3 retary’s judgment, the conduct of such sales. 

4 SEC. 145. GRANT OF LEASES BY THE SECRETARY. 

5 (a) IN GENERAL.—The Secretary may grant to the 

6 highest responsible qualified bidder in a lease sale con7 ducted pursuant to section 144 any lands to be leased on 

8 the Coastal Plain upon payment by the lessee of such 

9 bonus as may be accepted by the Secretary. 

10 (b) SUBSEQUENT TRANSFERS.—No lease issued 

11 under this subtitle may be sold, exchanged, assigned, sub12 let, or otherwise transferred except with the approval of 

13 the Secretary. Prior to any such approval the Secretary 

14 shall consult with, and give due consideration to the views 

15 of, the Attorney General. 

16 SEC. 146. LEASE TERMS AND CONDITIONS. 

17 (a) IN GENERAL.—An oil or gas lease issued pursu18 ant to this subtitle shall— 

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

less than 121 20 ⁄2 percent in amount or value of the 

21 production removed or sold from the lease, as deter22 mined by the Secretary under the regulations appli23 cable to other Federal oil and gas leases; 

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

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1 ploratory drilling activities as necessary to protect 

2 caribou calving areas and other species of fish and 

3 wildlife; 

4 (3) require that the lessee of lands within the 

5 Coastal Plain shall be fully responsible and liable for 

6 the reclamation of lands within the Coastal Plain 

7 and any other Federal lands that are adversely af8 fected in connection with exploration, development, 

9 production, or transportation activities conducted 

10 under the lease and within the Coastal Plain by the 

11 lessee or by any of the subcontractors or agents of 

12 the lessee; 

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

14 convey, by contract or otherwise, the reclamation re15 sponsibility and liability to another person without 

16 the express written approval of the Secretary; 

17 (5) provide that the standard of reclamation for 

18 lands required to be reclaimed under this subtitle 

19 shall be, as nearly as practicable, a condition capable 

20 of supporting the uses which the lands were capable 

21 of supporting prior to any exploration, development, 

22 or production activities, or upon application by the 

23 lessee, to a higher or better use as approved by the 

24 Secretary; 


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1 (6) contain terms and conditions relating to 

2 protection of fish and wildlife, their habitat, subsist3 ence resources, and the environment as required 

4 pursuant to section 143(a)(2); 

5 (7) provide that the lessee, its agents, and its 

6 contractors use best efforts to provide a fair share, 

7 as determined by the level of obligation previously 

8 agreed to in the 1974 agreement implementing sec9 tion 29 of the Federal Agreement and Grant of 

10 Right of Way for the Operation of the Trans-Alaska 

11 Pipeline, of employment and contracting for Alaska 

12 Natives and Alaska Native Corporations from 

13 throughout the State; 

14 (8) prohibit the export of oil produced under 

15 the lease; and 

16 (9) contain such other provisions as the Sec17 retary determines necessary to ensure compliance 

18 with the provisions of this subtitle and the regula19 tions issued under this subtitle. 

20 (b) PROJECT LABOR AGREEMENTS.—The Secretary, 

21 as a term and condition of each lease under this subtitle 

22 and in recognizing the Government’s proprietary interest 

23 in labor stability and in the ability of construction labor 

24 and management to meet the particular needs and condi25 tions of projects to be developed under the leases issued 


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1 pursuant to this subtitle and the special concerns of the 

2 parties to such leases, shall require that the lessee and 

3 its agents and contractors negotiate to obtain a project 

4 labor agreement for the employment of laborers and me5 chanics on production, maintenance, and construction 

6 under the lease. 

7 SEC. 147. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

8 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

9 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

10 The Secretary shall, consistent with the requirements of 

11 section 143, administer the provisions of this subtitle 

12 through regulations, lease terms, conditions, restrictions, 

13 prohibitions, stipulations, and other provisions that— 

14 (1) ensure the oil and gas exploration, develop15 ment, and production activities on the Coastal Plain 

16 will result in no significant adverse effect on fish 

17 and wildlife, their habitat, and the environment; 

18 (2) require the application of the best commer19 cially available technology for oil and gas explo20 ration, development, and production on all new ex21 ploration, development, and production operations; 

22 and 

23 (3) ensure that the maximum amount of sur24 face acreage covered by production and support fa25 cilities, including airstrips and any areas covered by 


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1 gravel berms or piers for support of pipelines, does 

2 not exceed 2,000 acres on the Coastal Plain. 

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

4 The Secretary shall also require, with respect to any pro5 posed drilling and related activities, that— 

6 (1) a site-specific analysis be made of the prob7 able effects, if any, that the drilling or related activi8 ties will have on fish and wildlife, their habitat, sub9 sistence resources, and the environment; 

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

11 and mitigate (in that order and to the extent prac12 ticable) any significant adverse effect identified 

13 under paragraph (1); and 

14 (3) the development of the plan shall occur 

15 after consultation with the agency or agencies hav16 ing jurisdiction over matters mitigated by the plan. 

17 (c) REGULATIONS TO PROTECT COASTAL PLAIN

18 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

19 AND THE ENVIRONMENT.—Before implementing the leas20 ing program authorized by this subtitle, the Secretary 

21 shall prepare and promulgate regulations, lease terms, 

22 conditions, restrictions, prohibitions, stipulations, and 

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1 ducted in a manner consistent with the purposes and envi2 ronmental requirements of this subtitle. 

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

5 proposed regulations, lease terms, conditions, restrictions, 

6 prohibitions, and stipulations for the leasing program 

7 under this subtitle shall require compliance with all appli8 cable provisions of Federal and State environmental law, 

9 and shall also require the following: 

10 (1) Standards at least as effective as the safety 

11 and environmental mitigation measures set forth in 

12 items 1 through 29 at pages 167 through 169 of the 

13 ‘‘Final Legislative Environmental Impact State14 ment’’ (April 1987) on the Coastal Plain. 

15 (2) Seasonal limitations on exploration, develop16 ment, and related activities, where necessary, to 

17 avoid significant adverse effects during periods of 

18 concentrated fish and wildlife breeding, denning, 

19 nesting, spawning, and migration. 

20 (3) That exploration activities, except for sur21 face geological studies, be limited to the period be22 tween approximately November 1 and May 1 each 

23 year and that exploration activities shall be sup24 ported, if necessary, by ice roads, winter trails with 

25 adequate snow cover, ice pads, ice airstrips, and air 


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1 transport methods, except that such exploration ac2 tivities may occur at other times if the Secretary 

3 finds that such exploration will have no significant 

4 adverse effect on the fish and wildlife, their habitat, 

5 and the environment of the Coastal Plain. 

6 (4) Design safety and construction standards 

7 for all pipelines and any access and service roads, 

8 that— 

9 (A) minimize, to the maximum extent pos10 sible, adverse effects upon the passage of mi11 gratory species such as caribou; and 

12 (B) minimize adverse effects upon the flow 

13 of surface water by requiring the use of cul14 verts, bridges, and other structural devices. 

15 (5) Prohibitions on general public access and 

16 use on all pipeline access and service roads. 

17 (6) Stringent reclamation and rehabilitation re18 quirements, consistent with the standards set forth 

19 in this subtitle, requiring the removal from the 

20 Coastal Plain of all oil and gas development and 

21 production facilities, structures, and equipment upon 

22 completion of oil and gas production operations, ex23 cept that the Secretary may exempt from the re24 quirements of this paragraph those facilities, struc25 tures, or equipment that the Secretary determines 


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1 would assist in the management of the Arctic Na2 tional Wildlife Refuge and that are donated to the 

3 United States for that purpose. 

4 (7) Appropriate prohibitions or restrictions on 

5 access by all modes of transportation. 

6 (8) Appropriate prohibitions or restrictions on 

7 sand and gravel extraction. 

8 (9) Consolidation of facility siting. 

9 (10) Appropriate prohibitions or restrictions on 

10 use of explosives. 

11 (11) Avoidance, to the extent practicable, of 

12 springs, streams, and river system; the protection of 

13 natural surface drainage patterns, wetlands, and ri14 parian habitats; and the regulation of methods or 

15 techniques for developing or transporting adequate 

16 supplies of water for exploratory drilling. 

17 (12) Avoidance or minimization of air traffic-re18 lated disturbance to fish and wildlife. 

19 (13) Treatment and disposal of hazardous and 

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

21 muds and cuttings, and domestic wastewater, includ22 ing an annual waste management report, a haz23 ardous materials tracking system, and a prohibition 

24 on chlorinated solvents, in accordance with applica25 ble Federal and State environmental law. 


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1 (14) Fuel storage and oil spill contingency plan2 ning. 

3 (15) Research, monitoring, and reporting re4 quirements. 

5 (16) Field crew environmental briefings. 

6 (17) Avoidance of significant adverse effects 

7 upon subsistence hunting, fishing, and trapping by 

8 subsistence users. 

9 (18) Compliance with applicable air and water 

10 quality standards. 

11 (19) Appropriate seasonal and safety zone des12 ignations around well sites, within which subsistence 

13 hunting and trapping shall be limited. 

14 (20) Reasonable stipulations for protection of 

15 cultural and archeological resources. 

16 (21) All other protective environmental stipula17 tions, restrictions, terms, and conditions deemed 

18 necessary by the Secretary. 

19 (e) CONSIDERATIONS.—In preparing and promul20 gating regulations, lease terms, conditions, restrictions, 

21 prohibitions, and stipulations under this section, the Sec22 retary shall consider the following: 

23 (1) The stipulations and conditions that govern 

24 the National Petroleum Reserve-Alaska leasing pro25 gram, as set forth in the 1999 Northeast National 


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1 Petroleum Reserve-Alaska Final Integrated Activity 

2 Plan/Environmental Impact Statement. 

3 (2) The environmental protection standards 

4 that governed the initial Coastal Plain seismic explo5 ration program under parts 37.31 to 37.33 of title 

6 50, Code of Federal Regulations. 

7 (3) The land use stipulations for exploratory 

8 drilling on the KIC–ASRC private lands that are set 

9 forth in appendix 2 of the August 9, 1983, agree10 ment between Arctic Slope Regional Corporation and 

11 the United States. 

12 (f) FACILITY CONSOLIDATION PLANNING.— 

13 (1) IN GENERAL.—The Secretary shall, after 

14 providing for public notice and comment, prepare 

15 and update periodically a plan to govern, guide, and 

16 direct the siting and construction of facilities for the 

17 exploration, development, production, and transpor18 tation of Coastal Plain oil and gas resources. 

19 (2) OBJECTIVES.—The plan shall have the fol20 lowing objectives: 

21 (A) Avoiding unnecessary duplication of fa22 cilities and activities. 

23 (B) Encouraging consolidation of common 

24 facilities and activities. 


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1 (C) Locating or confining facilities and ac2 tivities to areas that will minimize impact on 

3 fish and wildlife, their habitat, and the environ4 ment. 

5 (D) Utilizing existing facilities wherever 

6 practicable. 

7 (E) Enhancing compatibility between wild8 life values and development activities. 

9 (g) ACCESS TO PUBLIC LANDS.—The Secretary 

10 shall— 

11 (1) manage public lands in the Coastal Plain 

12 subject to subsections (a) and (b) of section 811 of 

13 the Alaska National Interest Lands Conservation 

14 Act (16 U.S.C. 3121); and 

15 (2) ensure that local residents shall have rea16 sonable access to public lands in the Coastal Plain 

17 for traditional uses. 

18 SEC. 148. EXPEDITED JUDICIAL REVIEW. 

19 (a) FILING OF COMPLAINT.— 

20 (1) DEADLINE.—Subject to paragraph (2), any 

21 complaint seeking judicial review of any provision of 

22 this subtitle or any action of the Secretary under 

23 this subtitle shall be filed— 


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1 (A) except as provided in subparagraph 

2 (B), within the 60-day period beginning on the 

3 date of the action being challenged; or 

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

5 on grounds arising after such period, within 60 

6 days after the complainant knew or reasonably 

7 should have known of the grounds for the com8 plaint. 

9 (2) VENUE.—Any complaint seeking judicial re10 view of any provision of this subtitle or any action 

11 of the Secretary under this subtitle may be filed only 

12 in the United States District Court for the District 

13 of Columbia. 

14 (3) LIMITATION ON SCOPE OF CERTAIN RE15 VIEW.—Judicial review of a Secretarial decision to 

16 conduct a lease sale under this subtitle, including 

17 the environmental analysis thereof, shall be limited 

18 to whether the Secretary has complied with the 

19 terms of this subtitle and shall be based upon the 

20 administrative record of that decision. The Sec21 retary’s identification of a preferred course of action 

22 to enable leasing to proceed and the Secretary’s 

23 analysis of environmental effects under this subtitle 

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1 wise by clear and convincing evidence to the con2 trary. 

3 (b) LIMITATION ON OTHER REVIEW.—Actions of the 

4 Secretary with respect to which review could have been 

5 obtained under this section shall not be subject to judicial 

6 review in any civil or criminal proceeding for enforcement. 

7 SEC. 149. FEDERAL AND STATE DISTRIBUTION OF REVE8 NUES. 

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law, of the amount of adjusted bonus, rental, and 

11 royalty revenues from Federal oil and gas leasing and op12 erations authorized under this subtitle— 

13 (1) 50 percent shall be paid to the State of 

14 Alaska; and 

15 (2) except as provided in section 152(d), 90 

16 percent of the balance shall be deposited into the 

17 American Renewable and Alternative Energy Trust 

18 Fund established by section 321. 

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

20 of Alaska under this section shall be made semiannually. 

21 SEC. 150. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 

22 (a) IN GENERAL.—The Secretary shall issue rights23 of-way and easements across the Coastal Plain for the 

24 transportation of oil and gas— 


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

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

3 185), without regard to title XI of the Alaska Na4 tional Interest Lands Conservation Act (30 U.S.C. 

5 3161 et seq.); and 

6 (2) under title XI of the Alaska National Inter7 est Lands Conservation Act (30 U.S.C. 3161 et 

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

9 1111 of that Act (16 U.S.C. 3170 and 3171). 

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

11 include in any right-of-way or easement issued under sub12 section (a) such terms and conditions as may be necessary 

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

14 in a significant adverse effect on the fish and wildlife, sub15 sistence resources, their habitat, and the environment of 

16 the Coastal Plain, including requirements that facilities be 

17 sited or designed so as to avoid unnecessary duplication 

18 of roads and pipelines. 

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

20 regulations under section 143(g) provisions granting 

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

22 of this section. 

23 SEC. 151. CONVEYANCE. 

24 In order to maximize Federal revenues by removing 

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1 terns within the Coastal Plain, the Secretary, notwith2 standing the provisions of section 1302(h)(2) of the Alas3 ka National Interest Lands Conservation Act (16 U.S.C. 

4 3192(h)(2)), shall convey— 

5 (1) to the Kaktovik Inupiat Corporation the 

6 surface estate of the lands described in paragraph 1 

7 of Public Land Order 6959, to the extent necessary 

8 to fulfill the Corporation’s entitlement under sec9 tions 12 and 14 of the Alaska Native Claims Settle10 ment Act (43 U.S.C. 1611 and 1613) in accordance 

11 with the terms and conditions of the Agreement be12 tween the Department of the Interior, the United 

13 States Fish and Wildlife Service, the Bureau of 

14 Land Management, and the Kaktovik Inupiat Cor15 poration effective January 22, 1993; and 

16 (2) to the Arctic Slope Regional Corporation 

17 the remaining subsurface estate to which it is enti18 tled pursuant to the August 9, 1983, agreement be19 tween the Arctic Slope Regional Corporation and the 

20 United States of America. 

21 SEC. 152. LOCAL GOVERNMENT IMPACT AID AND COMMU22 NITY SERVICE ASSISTANCE. 

23 (a) FINANCIAL ASSISTANCE AUTHORIZED.— 

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

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1 ernment Impact Aid Assistance Fund established by 

2 subsection (d) to provide timely financial assistance 

3 to entities that are eligible under paragraph (2) and 

4 that are directly impacted by the exploration for or 

5 production of oil and gas on the Coastal Plain under 

6 this subtitle. 

7 (2) ELIGIBLE ENTITIES.—The North Slope 

8 Borough, the City of Kaktovik, and any other bor9 ough, municipal subdivision, village, or other com10 munity in the State of Alaska that is directly im11 pacted by exploration for, or the production of, oil 

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

13 determined by the Secretary, shall be eligible for fi14 nancial assistance under this section. 

15 (b) USE OF ASSISTANCE.—Financial assistance 

16 under this section may be used only for— 

17 (1) planning for mitigation of the potential ef18 fects of oil and gas exploration and development on 

19 environmental, social, cultural, recreational, and sub20 sistence values; 

21 (2) implementing mitigation plans and main22 taining mitigation projects; 

23 (3) developing, carrying out, and maintaining 

24 projects and programs that provide new or expanded 

25 public facilities and services to address needs and 


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1 problems associated with such effects, including fire2 fighting, police, water, waste treatment, medivac, 

3 and medical services; and 

4 (4) establishment of a coordination office, by 

5 the North Slope Borough, in the City of Kaktovik, 

6 which shall— 

7 (A) coordinate with and advise developers 

8 on local conditions, impact, and history of the 

9 areas utilized for development; and 

10 (B) provide to the Committee on Natural 

11 Resources of the House of Representatives and 

12 the Committee on Energy and Natural Re13 sources of the Senate an annual report on the 

14 status of coordination between developers and 

15 the communities affected by development. 

16 (c) APPLICATION.— 

17 (1) IN GENERAL.—Any community that is eligi18 ble for assistance under this section may submit an 

19 application for such assistance to the Secretary, in 

20 such form and under such procedures as the Sec21 retary may prescribe by regulation. 

22 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

23 community located in the North Slope Borough may 

24 apply for assistance under this section either directly 


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1 to the Secretary or through the North Slope Bor2 ough. 

3 (3) APPLICATION ASSISTANCE.—The Secretary 

4 shall work closely with and assist the North Slope 

5 Borough and other communities eligible for assist6 ance under this section in developing and submitting 

7 applications for assistance under this section. 

8 (d) ESTABLISHMENT OF FUND.— 

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

10 Treasury the Coastal Plain Local Government Im11 pact Aid Assistance Fund. 

12 (2) USE.—Amounts in the fund may be used 

13 only for providing financial assistance under this 

14 section. 

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

16 shall be deposited into the fund amounts received by 

17 the United States as revenues derived from rents, 

18 bonuses, and royalties from Federal leases and lease 

19 sales authorized under this subtitle. 

20 (4) LIMITATION ON DEPOSITS.—The total 

21 amount in the fund may not exceed $11,000,000. 

22 (5) INVESTMENT OF BALANCES.—The Sec23 retary of the Treasury shall invest amounts in the 

24 fund in interest bearing government securities. 


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1 (e) AUTHORIZATION OF APPROPRIATIONS.—To pro2 vide financial assistance under this section there is author3 ized to be appropriated to the Secretary from the Coastal 

4 Plain Local Government Impact Aid Assistance Fund 

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

6 Subtitle C—Oil Shale 

7 SEC. 161. OIL SHALE. 

8 (a) FINDINGS.—Congress finds that oil shale re9 sources located within the United States— 

10 (1) total almost 2 trillion barrels of oil in place; 

11 (2) are a strategically important domestic re12 source that should be developed on an accelerated 

13 basis to reduce our growing reliance on politically 

14 and economically unstable sources of foreign oil im15 ports; 

16 (3) are one of the best resources available for 

17 advancing American technology and creating Amer18 ican jobs; and 

19 (4) will be a critically important component of 

20 the Nation’s transportation fuel sector in particular, 

21 by providing a secure domestic source of aviation 

22 fuel for both commercial and military uses. 

23 (b) ADDITIONAL RESEARCH AND DEVELOPMENT

24 LEASE SALES.—The Secretary of the Interior shall hold 

25 a lease sale within 180 days after the date of enactment 


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1 of this Act offering an additional 10 parcels for lease for 

2 research, development, and demonstration of oil shale re3 sources, under the terms offered in the solicitation of bids 

4 for such leases published on January 15, 2009 (74 Fed. 

5 Reg. 10). 

6 (c) APPLICATION OF REGULATIONS.—The oil shale 

7 management final rules published by the Department of 

8 the Interior on November 18, 2008 (73 Fed. Reg. 223), 

9 shall apply to all commercial leasing for the management 

10 of federally owned oil shale, and any associated minerals, 

11 located on Federal lands. 

12 (d) REDUCED PAYMENTS TO ENSURE PRODUC13 TION.—The Secretary of the Interior may temporarily re14 duce royalties, fees, rentals, bonus, or other payments for 

15 leases of Federal lands for the development and produc16 tion of oil shale resources as necessary to incentivize and 

17 encourage development of such resources, if the Secretary 

18 determines that the royalties, fees, rentals, bonus bids, 

19 and other payments otherwise authorized by law are hin20 dering production of such resources. 

21 Subtitle D—Refinery Permit 

22 Process Schedule 

23 SEC. 171. SHORT TITLE. 

24 This subtitle may be cited as the ‘‘Refinery Permit 

25 Process Schedule Act’’. 


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1 SEC. 172. DEFINITIONS. 

2 For purposes of this subtitle— 

3 (1) the term ‘‘Administrator’’ means the Ad4 ministrator of the Environmental Protection Agency; 

5 (2) the term ‘‘applicant’’ means a person who 

6 (with the approval of the governor of the State, or 

7 in the case of Native American tribes or tribal terri8 tories the designated leader of the tribe or tribal 

9 community, where the proposed refinery would be lo10 cated) is seeking a Federal refinery authorization; 

11 (3) the term ‘‘biomass’’ has the meaning given 

12 that term in section 932(a)(1) of the Energy Policy 

13 Act of 2005; 

14 (4) the term ‘‘Federal refinery authorization’’— 

15 (A) means any authorization required 

16 under Federal law, whether administered by a 

17 Federal or State administrative agency or offi18 cial, with respect to siting, construction, expan19 sion, or operation of a refinery; and 

20 (B) includes any permits, licenses, special 

21 use authorizations, certifications, opinions, or 

22 other approvals required under Federal law 

23 with respect to siting, construction, expansion, 

24 or operation of a refinery; 

25 (5) the term ‘‘refinery’’ means— 


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1 (A) a facility designed and operated to re2 ceive, load, unload, store, transport, process, 

3 and refine crude oil by any chemical or physical 

4 process, including distillation, fluid catalytic 

5 cracking, hydrocracking, coking, alkylation, 

6 etherification, polymerization, catalytic reform7 ing, isomerization, hydrotreating, blending, and 

8 any combination thereof, in order to produce 

9 gasoline or distillate; 

10 (B) a facility designed and operated to re11 ceive, load, unload, store, transport, process, 

12 and refine coal by any chemical or physical 

13 process, including liquefaction, in order to 

14 produce gasoline or diesel as its primary out15 put; or 

16 (C) a facility designed and operated to re17 ceive, load, unload, store, transport, process (in18 cluding biochemical, photochemical, and bio19 technology processes), and refine biomass in 

20 order to produce biofuel; and 

21 (6) the term ‘‘State’’ means a State, the Dis22 trict of Columbia, the Commonwealth of Puerto 

23 Rico, and any other territory or possession of the 

24 United States. 


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1 SEC. 173. STATE ASSISTANCE. 

2 (a) STATE ASSISTANCE.—At the request of a gov3 ernor of a State, or in the case of Native American tribes 

4 or tribal territories the designated leader of the tribe or 

5 tribal community, the Administrator is authorized to pro6 vide financial assistance to that State or tribe or tribal 

7 community to facilitate the hiring of additional personnel 

8 to assist the State or tribe or tribal community with exper9 tise in fields relevant to consideration of Federal refinery 

10 authorizations. 

11 (b) OTHER ASSISTANCE.—At the request of a gov12 ernor of a State, or in the case of Native American tribes 

13 or tribal territories the designated leader of the tribe or 

14 tribal community, a Federal agency responsible for a Fed15 eral refinery authorization shall provide technical, legal, 

16 or other nonfinancial assistance to that State or tribe or 

17 tribal community to facilitate its consideration of Federal 

18 refinery authorizations. 

19 SEC. 174. REFINERY PROCESS COORDINATION AND PROCE20 DURES. 

21 (a) APPOINTMENT OF FEDERAL COORDINATOR.— 

22 (1) IN GENERAL.—The President shall appoint 

23 a Federal coordinator to perform the responsibilities 

24 assigned to the Federal coordinator under this sub25 title. 


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1 (2) OTHER AGENCIES.—Each Federal and 

2 State agency or official required to provide a Fed3 eral refinery authorization shall cooperate with the 

4 Federal coordinator. 

5 (b) FEDERAL REFINERY AUTHORIZATIONS.— 

6 (1) MEETING PARTICIPANTS.—Not later than 

7 30 days after receiving a notification from an appli8 cant that the applicant is seeking a Federal refinery 

9 authorization pursuant to Federal law, the Federal 

10 coordinator appointed under subsection (a) shall 

11 convene a meeting of representatives from all Fed12 eral and State agencies responsible for a Federal re13 finery authorization with respect to the refinery. The 

14 governor of a State shall identify each agency of 

15 that State that is responsible for a Federal refinery 

16 authorization with respect to that refinery. 

17 (2) MEMORANDUM OF AGREEMENT.—(A) Not 

18 later than 90 days after receipt of a notification de19 scribed in paragraph (1), the Federal coordinator 

20 and the other participants at a meeting convened 

21 under paragraph (1) shall establish a memorandum 

22 of agreement setting forth the most expeditious co23 ordinated schedule possible for completion of all 

24 Federal refinery authorizations with respect to the 

25 refinery, consistent with the full substantive and 


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1 procedural review required by Federal law. If a Fed2 eral or State agency responsible for a Federal refin3 ery authorization with respect to the refinery is not 

4 represented at such meeting, the Federal coordinator 

5 shall ensure that the schedule accommodates those 

6 Federal refinery authorizations, consistent with Fed7 eral law. In the event of conflict among Federal re8 finery authorization scheduling requirements, the re9 quirements of the Environmental Protection Agency 

10 shall be given priority. 

11 (B) Not later than 15 days after completing the 

12 memorandum of agreement, the Federal coordinator 

13 shall publish the memorandum of agreement in the 

14 Federal Register. 

15 (C) The Federal coordinator shall ensure that 

16 all parties to the memorandum of agreement are 

17 working in good faith to carry out the memorandum 

18 of agreement, and shall facilitate the maintenance of 

19 the schedule established therein. 

20 (c) CONSOLIDATED RECORD.—The Federal coordi21 nator shall, with the cooperation of Federal and State ad22 ministrative agencies and officials, maintain a complete 

23 consolidated record of all decisions made or actions taken 

24 by the Federal coordinator or by a Federal administrative 

25 agency or officer (or State administrative agency or officer 


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1 acting under delegated Federal authority) with respect to 

2 any Federal refinery authorization. Such record shall be 

3 the record for judicial review under subsection (d) of deci4 sions made or actions taken by Federal and State adminis5 trative agencies and officials, except that, if the Court de6 termines that the record does not contain sufficient infor7 mation, the Court may remand the proceeding to the Fed8 eral coordinator for further development of the consoli9 dated record. 

10 (d) REMEDIES.— 

11 (1) IN GENERAL.—The United States District 

12 Court for the district in which the proposed refinery 

13 is located shall have exclusive jurisdiction over any 

14 civil action for the review of the failure of an agency 

15 or official to act on a Federal refinery authorization 

16 in accordance with the schedule established pursuant 

17 to the memorandum of agreement. 

18 (2) STANDING.—If an applicant or a party to 

19 a memorandum of agreement alleges that a failure 

20 to act described in paragraph (1) has occurred and 

21 that such failure to act would jeopardize timely com22 pletion of the entire schedule as established in the 

23 memorandum of agreement, such applicant or other 

24 party may bring a cause of action under this sub25 section. 


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1 (3) COURT ACTION.—If an action is brought 

2 under paragraph (2), the Court shall review whether 

3 the parties to the memorandum of agreement have 

4 been acting in good faith, whether the applicant has 

5 been cooperating fully with the agencies that are re6 sponsible for issuing a Federal refinery authoriza7 tion, and any other relevant materials in the consoli8 dated record. Taking into consideration those fac9 tors, if the Court finds that a failure to act de10 scribed in paragraph (1) has occurred, and that such 

11 failure to act would jeopardize timely completion of 

12 the entire schedule as established in the memo13 randum of agreement, the Court shall establish a 

14 new schedule that is the most expeditious coordi15 nated schedule possible for completion of pro16 ceedings, consistent with the full substantive and 

17 procedural review required by Federal law. The 

18 court may issue orders to enforce any schedule it es19 tablishes under this paragraph. 

20 (4) FEDERAL COORDINATOR’S ACTION.—When 

21 any civil action is brought under this subsection, the 

22 Federal coordinator shall immediately file with the 

23 Court the consolidated record compiled by the Fed24 eral coordinator pursuant to subsection (c). 


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1 (5) EXPEDITED REVIEW.—The Court shall set 

2 any civil action brought under this subsection for ex3 pedited consideration. 

4 SEC. 175. DESIGNATION OF CLOSED MILITARY BASES. 

5 (a) DESIGNATION REQUIREMENT.—Not later than 

6 90 days after the date of enactment of this Act, the Presi7 dent shall designate no less than 3 closed military installa8 tions, or portions thereof, as potentially suitable for the 

9 construction of a refinery. At least 1 such site shall be 

10 designated as potentially suitable for construction of a re11 finery to refine biomass in order to produce biofuel. 

12 (b) REDEVELOPMENT AUTHORITY.—The redevelop13 ment authority for each installation designated under sub14 section (a), in preparing or revising the redevelopment 

15 plan for the installation, shall consider the feasibility and 

16 practicability of siting a refinery on the installation. 

17 (c) MANAGEMENT AND DISPOSAL OF REAL PROP18 ERTY.—The Secretary of Defense, in managing and dis19 posing of real property at an installation designated under 

20 subsection (a) pursuant to the base closure law applicable 

21 to the installation, shall give substantial deference to the 

22 recommendations of the redevelopment authority, as con23 tained in the redevelopment plan for the installation, re24 garding the siting of a refinery on the installation. The 

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1 tary installation or portion thereof found to be suitable 

2 for the siting of a refinery under subsection (a) shall be 

3 carried out in the manner provided by the base closure 

4 law applicable to the installation. 

5 (d) DEFINITIONS.—For purposes of this section— 

6 (1) the term ‘‘base closure law’’ means the De7 fense Base Closure and Realignment Act of 1990 

8 (part A of title XXIX of Public Law 101–510; 10 

9 U.S.C. 2687 note) and title II of the Defense Au10 thorization Amendments and Base Closure and Re11 alignment Act (Public Law 100–526; 10 U.S.C. 

12 2687 note); and 

13 (2) the term ‘‘closed military installation’’ 

14 means a military installation closed or approved for 

15 closure pursuant to a base closure law. 

16 SEC. 176. SAVINGS CLAUSE. 

17 Nothing in this subtitle shall be construed to affect 

18 the application of any environmental or other law, or to 

19 prevent any party from bringing a cause of action under 

20 any environmental or other law, including citizen suits. 

21 SEC. 177. REFINERY REVITALIZATION REPEAL. 

22 Subtitle H of title III of the Energy Policy Act of 

23 2005 and the items relating thereto in the table of con24 tents of such Act are repealed. 


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1 TITLE II—CONSERVATION AND 

2 EFFICIENCY 

3 Subtitle A—Tax Incentives for Fuel 

4 Efficiency 

5 SEC. 201. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

6 VEHICLES. 

7 Paragraph (4) of section 30B(j) of the Internal Rev8 enue Code of 1986 is amended by striking ‘‘December 31, 

9 2010’’ and inserting ‘‘December 31, 2020’’. 

10 SEC. 202. EXTENSION OF ALTERNATIVE FUEL VEHICLE RE11 FUELING PROPERTY CREDIT. 

12 Paragraph (1) of section 30C(g) of the Internal Rev13 enue Code of 1986 is amended— 

14 (1) by striking ‘‘hydrogen,’’ and inserting ‘‘hy15 drogen or alternative fuels (as defined in section 

16 30B(e)(4)(B)),’’, and 

17 (2) by striking ‘‘December 31, 2014’’ and in18 serting ‘‘December 31, 2020’’. 

19 SEC. 203. EXTENSION OF CREDIT FOR NEW QUALIFIED 

20 PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. 

21 (a) IN GENERAL.—Section 30D of the Internal Rev22 enue Code of 1986 is amended by adding at the end the 

23 following new subsection: 

24 ‘‘(g) TERMINATION.—This section shall not apply to 

25 property placed in service after December 31, 2020.’’. 


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1 (b) REPEAL OF LIMITATION ON NUMBER OF NEW

2 QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

3 ELIGIBLE FOR CREDIT.—Section 30D of such Code, as 

4 amended by subsection (a), is amended by striking sub5 section (e) and redesignating subsections (f) and (g) as 

6 subsections (e) and (f), respectively. 

7 (c) CONFORMING AMENDMENTS.— 

8 (1) Section 1016(a)(37) of such Code is amend9 ed by striking ‘‘section 30D(f)(1)’’ and inserting 

10 ‘‘section 30D(e)(1)’’. 

11 (2) Section 6501(m) of such Code is amended 

12 by striking ‘‘section 30D(e)(4)’’ and inserting ‘‘sec13 tion 30D(e)(4)’’. 

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

15 this section shall apply to vehicles acquired after Decem16 ber 31, 2009. 

17 Subtitle B—Tapping America’s 

18 Ingenuity and Creativity 

19 SEC. 211. DEFINITIONS. 

20 In this subtitle: 

21 (1) ADMINISTERING ENTITY.—The term ‘‘ad22 ministering entity’’ means the entity with which the 

23 Secretary enters into an agreement under section 

24 214(c). 


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1 (2) DEPARTMENT.—The term ‘‘Department’’ 

2 means the Department of Energy. 

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

4 the Secretary of Energy. 

5 SEC. 212. STATEMENT OF POLICY. 

6 It is the policy of the United States to provide incen7 tives to encourage the development and implementation of 

8 innovative energy technologies and new energy sources 

9 that will reduce our reliance on foreign energy. 

10 SEC. 213. PRIZE AUTHORITY. 

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

12 program to competitively award cash prizes in conformity 

13 with this subtitle to advance the research, development, 

14 demonstration, and commercial application of innovative 

15 energy technologies and new energy sources. 

16 (b) ADVERTISING AND SOLICITATION OF COMPETI17 TORS.— 

18 (1) ADVERTISING.—The Secretary shall widely 

19 advertise prize competitions to encourage broad par20 ticipation in the program carried out under sub21 section (a), including individuals, universities, com22 munities, and large and small businesses. 

23 (2) ANNOUNCEMENT THROUGH FEDERAL REG24 ISTER NOTICE.—The Secretary shall announce each 

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1 eral Register. This notice shall include essential ele2 ments of the competition such as the subject of the 

3 competition, the duration of the competition, the eli4 gibility requirements for participation in the com5 petition, the process for participants to register for 

6 the competition, the amount of the prize, and the 

7 criteria for awarding the prize. 

8 (c) ADMINISTERING THE COMPETITION.—The Sec9 retary may enter into an agreement with a private, non10 profit entity to administer the prize competitions, subject 

11 to the provisions of this subtitle. The administering entity 

12 shall perform the following functions: 

13 (1) Advertise the competition and its results. 

14 (2) Raise funds from private entities and indi15 viduals to pay for administrative costs and cash 

16 prizes. 

17 (3) Develop, in consultation with and subject to 

18 the final approval of the Secretary, criteria to select 

19 winners based upon the goal of safely and ade20 quately storing nuclear used fuel. 

21 (4) Determine, in consultation with and subject 

22 to the final approval of the Secretary, the appro23 priate amount of the awards. 

24 (5) Protect against the administering entity’s 

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1 ticipant’s intellectual property, trade secrets, and 

2 confidential business information. Any information 

3 properly identified as trade secrets or confidential 

4 business information that is submitted by a partici5 pant as part of a competitive program under this 

6 subtitle may be withheld from public disclosure. 

7 (6) Develop and promulgate sufficient rules to 

8 define the parameters of designing and proposing in9 novative energy technologies and new energy sources 

10 with input from industry, citizens, and corporations 

11 familiar with such activities. 

12 (d) FUNDING SOURCES.—Prizes under this subtitle 

13 may consist of Federal appropriated funds, funds provided 

14 by the administering entity, or funds raised through 

15 grants or donations. The Secretary may accept funds from 

16 other Federal agencies for such cash prizes and, notwith17 standing section 3302(b) of title 31, United States Code, 

18 may use such funds for the cash prize program. Other 

19 than publication of the names of prize sponsors, the Sec20 retary may not give any special consideration to any pri21 vate sector entity or individual in return for a donation 

22 to the Secretary or administering entity. 

23 (e) ANNOUNCEMENT OF PRIZES.—The Secretary 

24 may not publish a notice required by subsection (b)(2) 

25 until all the funds needed to pay out the announced 


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1 amount of the prize have been appropriated to the Depart2 ment or the Department has received from the admin3 istering entity a written commitment to provide all nec4 essary funds. 

5 SEC. 214. ELIGIBILITY. 

6 To be eligible to win a prize under this subtitle, an 

7 individual or entity— 

8 (1) shall notify the administering entity of in9 tent to submit ideas and intent to collect the prize 

10 upon selection; 

11 (2) shall comply with all the requirements stat12 ed in the Federal Register notice required under sec13 tion 213(b)(2); 

14 (3) in the case of a private entity, shall be in15 corporated in and maintain a primary place of busi16 ness in the United States, and in the case of an in17 dividual, whether participating singly or in a group, 

18 shall be a citizen of the United States; 

19 (4) shall not be a Federal entity, a Federal em20 ployee acting within the scope of his or her employ21 ment, or an employee of a national laboratory acting 

22 within the scope of employment; 

23 (5) shall not use Federal funding or other Fed24 eral resources to compete for the prize; and 


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1 (6) shall not be an entity acting on behalf of 

2 any foreign government or agent. 

3 SEC. 215. INTELLECTUAL PROPERTY. 

4 The Federal Government shall not, by virtue of offer5 ing or awarding a prize under this subtitle, be entitled to 

6 any intellectual property rights derived as a consequence 

7 of, or in direct relation to, the participation by a registered 

8 participant in a competition authorized by this subtitle. 

9 This section shall not be construed to prevent the Federal 

10 Government from negotiating a license for the use of intel11 lectual property developed for a prize competition under 

12 this subtitle. The Federal Government may seek assur13 ances that technologies for which prizes are awarded 

14 under this subtitle are offered for commercialization in the 

15 event an award recipient does not take, or is not expected 

16 to take within a reasonable time, effective steps to achieve 

17 practical application of the technology. 

18 SEC. 216. WAIVER OF LIABILITY. 

19 The Secretary may require registered participants to 

20 waive claims against the Federal Government and the ad21 ministering entity (except claims for willful misconduct) 

22 for any injury, death, damage, or loss of property, revenue, 

23 or profits arising from the registered participants’ partici24 pation in a competition under this subtitle. The Secretary 

25 shall give notice of any waiver required under this section 


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1 in the notice required by section 213(b)(2). The Secretary 

2 may not require a registered participant to waive claims 

3 against the administering entity arising out of the unau4 thorized use or disclosure by the administering entity of 

5 the registered participant’s intellectual property, trade se6 crets, or confidential business information. 

7 SEC. 217. AUTHORIZATION OF APPROPRIATIONS. 

8 (a) AWARDS.—Forty percent of amounts in the 

9 American Energy Trust Fund shall be available without 

10 further appropriation to carry out specified provisions of 

11 this section. 

12 (b) TREATMENT OF AWARDS.—Amounts received 

13 pursuant to an award under this subtitle may not be taxed 

14 by any Federal, State, or local authority. 

15 (c) ADMINISTRATION.—In addition to the amounts 

16 authorized under subsection (a), there are authorized to 

17 be appropriated to the Secretary for each of fiscal years 

18 2009 through 2020 $2,000,000 for the administrative 

19 costs of carrying out this subtitle. 

20 (d) CARRYOVER OF FUNDS.—Funds appropriated for 

21 prize awards under this subtitle shall remain available 

22 until expended and may be transferred, reprogrammed, or 

23 expended for other purposes only after the expiration of 

24 11 fiscal years after the fiscal year for which the funds 

25 were originally appropriated. No provision in this subtitle 


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1 permits obligation or payment of funds in violation of sec2 tion 1341 of title 31, United States Code. 

3 SEC. 218. NEXT GENERATION AUTOMOBILE PRIZE PRO4 GRAM. 

5 The Secretary of Energy shall establish a program 

6 to award a prize in the amount of $500,000,000 to the 

7 first automobile manufacturer incorporated in the United 

8 States to manufacture and sell in the United States 

9 50,000 midsized sedan automobiles which operate on gaso10 line and can travel 100 miles per gallon. 

11 SEC. 219. ADVANCED BATTERY MANUFACTURING INCEN12 TIVE PROGRAM. 

13 (a) DEFINITIONS.—In this section: 

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

15 battery’’ means an electrical storage device suitable 

16 for vehicle applications. 

17 (2) ENGINEERING INTEGRATION COSTS.—The 

18 term ‘‘engineering integration costs’’ includes the 

19 cost of engineering tasks relating to— 

20 (A) incorporation of qualifying components 

21 into the design of advanced batteries; and 

22 (B) design of tooling and equipment and 

23 developing manufacturing processes and mate24 rial suppliers for production facilities that 


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1 produce qualifying components or advanced bat2 teries. 

3 (b) ADVANCED BATTERY MANUFACTURING FACIL4 ITY.—The Secretary shall provide facility funding awards 

5 under this section to advanced battery manufacturers to 

6 pay not more than 30 percent of the cost of reequipping, 

7 expanding, or establishing a manufacturing facility in the 

8 United States to produce advanced batteries. 

9 (c) PERIOD OF AVAILABILITY.—An award under sub10 section (b) shall apply to— 

11 (1) facilities and equipment placed in service 

12 before December 30, 2020; and 

13 (2) engineering integration costs incurred dur14 ing the period beginning on the date of enactment 

15 of this Act and ending on December 30, 2020. 

16 (d) DIRECT LOAN PROGRAM.— 

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

18 the date of enactment of this subtitle, and subject to 

19 the availability of appropriated funds, the Secretary 

20 shall carry out a program to provide a total of not 

21 more than $100,000,000 in loans to eligible individ22 uals and entities (as determined by the Secretary) 

23 for the costs of activities described in subsection (b). 

24 (2) SELECTION OF ELIGIBLE PROJECTS.—The 

25 Secretary shall select eligible projects to receive 


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1 loans under this subsection in cases in which, as de2 termined by the Secretary, the award recipient— 

3 (A) is financially viable without the receipt 

4 of additional Federal funding associated with 

5 the proposed project; 

6 (B) will provide sufficient information to 

7 the Secretary for the Secretary to ensure that 

8 the qualified investment is expended efficiently 

9 and effectively; and 

10 (C) has met such other criteria as may be 

11 established and published by the Secretary. 

12 (3) RATES, TERMS, AND REPAYMENT OF

13 LOANS.—A loan provided under this subsection— 

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

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

16 the cost of funds to the Department of the 

17 Treasury for obligations of comparable matu18 rity; 

19 (B) shall have a term equal to the lesser 

20 of— 

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

22 eligible project to be carried out using 

23 funds from the loan, as determined by the 

24 Secretary; and 

25 (ii) 25 years; 


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1 (C) may be subject to a deferral in repay2 ment for not more than 5 years after the date 

3 on which the eligible project carried out using 

4 funds from the loan first begins operations, as 

5 determined by the Secretary; and 

6 (D) shall be made by the Federal Financ7 ing Bank. 

8 (e) FEES.—The cost of administering a loan made 

9 under this section shall not exceed $100,000. 

10 (f) SET ASIDE FOR SMALL MANUFACTURERS.— 

11 (1) DEFINITION OF COVERED FIRM.—In this 

12 subsection, the term ‘‘covered firm’’ means a firm 

13 that— 

14 (A) employs fewer than 500 individuals; 

15 and 

16 (B) manufactures automobiles or compo17 nents of automobiles. 

18 (2) SET ASIDE.—Of the amount of funds used 

19 to provide awards for each fiscal year under sub20 section (b), the Secretary shall use not less than 10 

21 percent to provide awards to covered firms or con22 sortia led by a covered firm. 

23 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

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1 ergy Trust Fund such sums as are necessary to carry out 

2 this section for each of fiscal years 2009 through 2013. 

3 Subtitle C—Home and Business 

4 Tax Incentives 

5 SEC. 221. EXTENSION OF CREDIT FOR ENERGY EFFICIENT 

6 APPLIANCES. 

7 (a) IN GENERAL.—Subsection (b) of section 45M of 

8 the Internal Revenue Code of 1986 (relating to applicable 

9 amount) is amended— 

10 (1) in paragraph (1)— 

11 (A) by striking ‘‘2008 or 2009’’ in sub12 paragraph (A) and inserting ‘‘2008, 2009, 

13 2010, 2011, or 2012’’, and 

14 (B) by striking ‘‘2008, 2009, or 2010’’ in 

15 subparagraph (B) and inserting ‘‘2008, 2009, 

16 2010, 2011, 2012, or 2013’’, 

17 (2) in paragraph (2)— 

18 (A) by striking ‘‘2008 or 2009’’ in sub19 paragraph (B) and inserting ‘‘2008, 2009, 

20 2010, 2011, or 2012’’, 

21 (B) by striking ‘‘2008, 2009, or 2010’’ in 

22 subparagraph (C) and inserting ‘‘2008, 2009, 

23 2010, 2011, 2012, or 2013’’, and 


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1 (C) by striking ‘‘2008, 2009, or 2010’’ in 

2 subparagraph (D) and inserting ‘‘2008, 2009, 

3 2010, 2011, 2012, or 2013’’, and 

4 (3) in paragraph (3)— 

5 (A) by striking ‘‘2008 or 2009’’ in sub6 paragraph (B) and inserting ‘‘2008, 2009, 

7 2010, 2011, or 2012’’, 

8 (B) by striking ‘‘2008, 2009, or 2010’’ in 

9 subparagraph (C) and inserting ‘‘2008, 2009, 

10 2010, 2011, 2012, or 2013’’, and 

11 (C) by striking ‘‘2008, 2009, or 2010’’ in 

12 subparagraph (D) and inserting ‘‘2008, 2009, 

13 2010, 2011, 2012, or 2013’’. 

14 (b) INCREASE IN AGGREGATE CREDIT AMOUNT AL15 LOWED.—Paragraph (1) of section 45M(e) of such Code 

16 (relating to aggregate credit amount allowed) is amended 

17 by striking ‘‘$75,000,000’’ and inserting ‘‘$100,000,000’’. 

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

19 this section shall apply to appliances produced after De20 cember 31, 2009. 

21 SEC. 222. EXTENSION OF CREDIT FOR NONBUSINESS EN22 ERGY PROPERTY. 

23 (a) IN GENERAL.—Section 25C(g) of the Internal 

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1 ed by striking ‘‘December 31, 2010’’ and inserting ‘‘De2 cember 31, 2020’’. 

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

4 this section shall apply to property placed in service after 

5 December 31, 2007. 

6 SEC. 223. EXTENSION OF CREDIT FOR RESIDENTIAL EN7 ERGY EFFICIENT PROPERTY. 

8 Section 25D(g) of the Internal Revenue Code of 1986 

9 (relating to termination) is amended by striking ‘‘Decem10 ber 31, 2016’’ and inserting ‘‘December 31, 2020’’. 

11 SEC. 224. EXTENSION OF NEW ENERGY EFFICIENT HOME 

12 CREDIT. 

13 Subsection (g) of section 45L of the Internal Revenue 

14 Code of 1986 (relating to termination) is amended by 

15 striking ‘‘December 31, 2009’’ and inserting ‘‘December 

16 31, 2020’’. 

17 SEC. 225. EXTENSION OF ENERGY EFFICIENT COMMERCIAL 

18 BUILDINGS DEDUCTION. 

19 Section 179D(h) of the Internal Revenue Code of 

20 1986 (relating to termination) is amended by striking 

21 ‘‘December 31, 2013’’ and inserting ‘‘December 31, 

22 2020’’. 


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1 SEC. 226. EXTENSION OF SPECIAL RULE TO IMPLEMENT 

2 FERC AND STATE ELECTRIC RESTRUC3 TURING POLICY. 

4 (a) IN GENERAL.—Paragraph (3) of section 451(i) 

5 of the Internal Revenue Code of 1986 is amended by strik6 ing ‘‘January 1, 2008’’ and inserting ‘‘January 1, 2021’’. 

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

8 subsection (a) shall apply to transactions after December 

9 31, 2008. 

10 SEC. 227. HOME ENERGY AUDITS. 

11 (a) IN GENERAL.—Subpart A of part IV of sub12 chapter A of chapter 1 of the Internal Revenue Code of 

13 1986 is amended by inserting after section 25D the fol14 lowing new section: 

15 ‘‘SEC. 25E. HOME ENERGY AUDITS. 

16 ‘‘(a) IN GENERAL.—In the case of an individual, 

17 there shall be allowed as a credit against the tax imposed 

18 by this chapter for the taxable year an amount equal to 

19 50 percent of the amount of qualified energy audit paid 

20 or incurred by the taxpayer during the taxable year. 

21 ‘‘(b) LIMITATIONS.— 

22 ‘‘(1) DOLLAR LIMITATION.—The amount al23 lowed as a credit under subsection (a) with respect 

24 to a residence of the taxpayer for a taxable year 

25 shall not exceed $400. 


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1 ‘‘(2) LIMITATION BASED ON AMOUNT OF

2 TAX.—In the case of any taxable year to which sec3 tion 26(a)(2) does not apply, the credit allowed 

4 under subsection (a) shall not exceed the excess of— 

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

6 (as defined in section 26(b)) plus the tax im7 posed by section 55, over 

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

9 under this subpart (other than this section) and 

10 section 27 for the taxable year. 

11 ‘‘(c) QUALIFIED ENERGY AUDIT.—For purposes of 

12 this section, the term ‘qualified energy audit’ means an 

13 energy audit of the principal residence of the taxpayer per14 formed by a qualified energy auditor through a com15 prehensive site visit. Such audit may include a blower door 

16 test, an infra-red camera test, and a furnace combustion 

17 efficiency test. In addition, such audit shall include such 

18 substitute tests for the tests specified in the preceding sen19 tence, and such additional tests, as the Secretary may by 

20 regulation require. A principal residence shall not be taken 

21 into consideration under this subparagraph unless such 

22 residence is located in the United States. 

23 ‘‘(d) PRINCIPAL RESIDENCE.—For purposes of this 

24 section, the term ‘principal residence’ has the same mean25 ing as when used in section 121. 


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1 ‘‘(e) QUALIFIED ENERGY AUDITOR.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall specify 

3 by regulations the qualifications required to be a 

4 qualified energy auditor for purposes of this section. 

5 Such regulations shall include rules prohibiting con6 flicts-of-interest, including the disallowance of com7 missions or other payments based on goods or non8 audit services purchased by the taxpayer from the 

9 auditor. 

10 ‘‘(2) CERTIFICATION.—The Secretary shall pre11 scribe the procedures and methods for certifying 

12 that an auditor is a qualified energy auditor. To the 

13 maximum extent practicable, such procedures and 

14 methods shall provide for a variety of sources to ob15 tain certifications.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Section 23(b)(4)(B) of the Internal Revenue 

18 Code of 1986 is amended by striking ‘‘section 25D’’ 

19 and inserting ‘‘sections 25D and 25E’’. 

20 (2) Section 23(c)(1) of such Code is amended 

21 by striking ‘‘25D and’’ and inserting ‘‘25D, 25E, 

22 and’’. 

23 (3) Section 24(b)(3)(B) of such Code is amend24 ed by inserting ‘‘25E,’’ after ‘‘25D,’’. 


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1 (4) Clauses (i) and (ii) of section 25(e)(1)(C) of 

2 such Code are each amended by inserting ‘‘25E,’’ 

3 after ‘‘25D,’’. 

4 (5) Section 25B(g)(2) of such Code is amended 

5 by inserting ‘‘25E,’’ after ‘‘25D,’’. 

6 (6) Section 25D(c)(1)(B) of such Code is 

7 amended by inserting ‘‘and section 25E’’ after ‘‘this 

8 section’’. 

9 (7) Section 25D(c)(2)(A) of such Code is 

10 amended by inserting ‘‘and section 25E’’ after ‘‘this 

11 section’’. 

12 (8) The table of sections for subpart A of part 

13 IV of subchapter A chapter 1 of such Code is 

14 amended by inserting after the item relating to sec15 tion 25D the following new item: 

‘‘Sec. 25E. Home energy audits.’’. 

16 (c) EFFECTIVE DATE.— 

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

18 this section shall apply to amounts paid or incurred 

19 in taxable years beginning after the date of the en20 actment of this Act. 

21 (2) APPLICATION OF EGTRRA SUNSET.—The 

22 amendments made by paragraphs (1) and (3) of 

23 subsection (b) shall be subject to title IX of the Eco24 nomic Growth and Tax Relief Reconciliation Act of 


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1 2001 in the same manner as the provisions of such 

2 Act to which such amendments relate. 

3 SEC. 228. ACCELERATED RECOVERY PERIOD FOR DEPRE4 CIATION OF SMART METERS. 

5 (a) IN GENERAL.—Section 168(e)(3)(B) of the Inter6 nal Revenue Code of 1986 is amended by striking ‘‘and’’ 

7 at the end of clause (vi), by striking the period at the end 

8 of clause (vii) and inserting ‘‘, and’’, and by inserting after 

9 clause (vii) the following new clause: 

10 ‘‘(viii) any qualified smart electric 

11 meter.’’. 

12 (b) CONFORMING AMENDMENT.—Section 

13 168(e)(3)(D) of such Code is amended by striking clause 

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

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

16 this section shall apply to property placed in service after 

17 the date of the enactment of this Act. 

18 TITLE III—NEW AND EXPANDING 

19 TECHNOLOGIES 

20 Subtitle A—Alternative Fuels 

21 SEC. 301. REPEAL. 

22 Section 526 of the Energy Independence and Security 

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


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1 SEC. 302. GOVERNMENT AUCTION OF LONG-TERM PUT OP2 TION CONTRACTS ON COAL-TO-LIQUID FUEL 

3 PRODUCED BY QUALIFIED COAL-TO-LIQUID 

4 FACILITIES. 

5 (a) IN GENERAL.—The Secretary shall, from time to 

6 time, auction to the public coal-to-liquid fuel put option 

7 contracts having expiration dates of 5 years, 10 years, 15 

8 years, or 20 years. 

9 (b) CONSULTATION WITH SECRETARY OF EN10 ERGY.—The Secretary shall consult with the Secretary of 

11 Energy regarding— 

12 (1) the frequency of the auctions; 

13 (2) the strike prices specified in the contracts; 

14 (3) the number of contracts to be auctioned 

15 with a given strike price and expiration date; and 

16 (4) the capacity of existing or planned facilities 

17 to produce coal-to-liquid fuel. 

18 (c) DEFINITIONS.—In this section: 

19 (1) COAL-TO-LIQUID FUEL.—The term ‘‘coal-to20 liquid fuel’’ means any transportation-grade liquid 

21 fuel derived primarily from coal (including peat) and 

22 produced at a qualified coal-to-liquid facility. 

23 (2) COAL-TO-LIQUID PUT OPTION CONTRACT.— 

24 The term ‘‘coal-to-liquid put option contract’’ means 

25 a contract, written by the Secretary, which— 


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1 (A) gives the holder the right (but not the 

2 obligation) to sell to the Government of the 

3 United States a certain quantity of a specific 

4 type of coal-to-liquid fuel produced by a quali5 fied coal-to-liquid facility specified in the con6 tract, at a strike price specified in the contract, 

7 on or before an expiration date specified in the 

8 contract; and 

9 (B) is transferable by the holder to any 

10 other entity. 

11 (3) QUALIFIED COAL-TO-LIQUID FACILITY.— 

12 The term ‘‘qualified coal-to-liquid facility’’ means a 

13 manufacturing facility that has the capacity to 

14 produce at least 10,000 barrels per day of transpor15 tation grade liquid fuels from a feedstock that is pri16 marily domestic coal (including peat and any prop17 erty which allows for the capture, transportation, or 

18 sequestration of by-products resulting from such 

19 process, including carbon emissions). 

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

21 the Secretary of the Treasury. 

22 (5) STRIKE PRICE.—The term ‘‘strike price’’ 

23 means, with respect to a put option contract, the 

24 price at which the holder of the contract has the 


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1 right to sell the fuel which is the subject of the con2 tract. 

3 (d) REGULATIONS.—The Secretary shall prescribe 

4 such regulations as may be necessary to carry out this 

5 section. 

6 (e) EFFECTIVE DATE.—This section shall take effect 

7 1 year after the date of the enactment of this Act. 

8 SEC. 303. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQ9 UIDS PROJECTS. 

10 Section 1702 of the Energy Policy Act of 2005 (42 

11 U.S.C. 16512) is amended by adding at the end the fol12 lowing new subsection: 

13 ‘‘(k) STANDBY LOANS FOR QUALIFYING CTL 

14 PROJECTS.— 

15 ‘‘(1) DEFINITIONS.—For purposes of this sub16 section: 

17 ‘‘(A) CAP PRICE.—The term ‘cap price’ 

18 means a market price specified in the standby 

19 loan agreement above which the project is re20 quired to make payments to the United States. 

21 ‘‘(B) FULL TERM.—The term ‘full term’ 

22 means the full term of a standby loan agree23 ment, as specified in the agreement, which shall 

24 not exceed the lesser of 30 years or 90 percent 


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1 of the projected useful life of the project (as de2 termined by the Secretary). 

3 ‘‘(C) MARKET PRICE.—The term ‘market 

4 price’ means the average quarterly price of a 

5 petroleum price index specified in the standby 

6 loan agreement. 

7 ‘‘(D) MINIMUM PRICE.—The term ‘min8 imum price’ means a market price specified in 

9 the standby loan agreement below which the 

10 United States is obligated to make disburse11 ments to the project. 

12 ‘‘(E) OUTPUT.—The term ‘output’ means 

13 some or all of the liquid or gaseous transpor14 tation fuels produced from the project, as speci15 fied in the loan agreement. 

16 ‘‘(F) PRIMARY TERM.—The term ‘primary 

17 term’ means the initial term of a standby loan 

18 agreement, as specified in the agreement, which 

19 shall not exceed the lesser of 20 years or 75 

20 percent of the projected useful life of the 

21 project (as determined by the Secretary). 

22 ‘‘(G) QUALIFYING CTL PROJECT.—The 

23 term ‘qualifying CTL project’ means— 


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1 ‘‘(i) a commercial-scale project that 

2 converts coal to one or more liquid or gas3 eous transportation fuels; or 

4 ‘‘(ii) not more than one project at a 

5 facility that converts petroleum refinery 

6 waste products, including petroleum coke, 

7 into one or more liquids or gaseous trans8 portation fuels, 

9 that demonstrates the capture, and sequestra10 tion or disposal or use of, the carbon dioxide 

11 produced in the conversion process, and that, 

12 on the basis of a carbon dioxide sequestration 

13 plan prepared by the applicant, is certified by 

14 the Administrator of the Environmental Protec15 tion Agency, in consultation with the Secretary, 

16 as producing fuel with life cycle carbon dioxide 

17 emissions at or below the average life cycle car18 bon dioxide emissions for the same type of fuel 

19 produced at traditional petroleum based facili20 ties with similar annual capacities. 

21 ‘‘(H) STANDBY LOAN AGREEMENT.—The 

22 term ‘standby loan agreement’ means a loan 

23 agreement entered into under paragraph (2). 

24 ‘‘(2) STANDBY LOANS.— 


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1 ‘‘(A) LOAN AUTHORITY.—The Secretary 

2 may enter into standby loan agreements with 

3 not more than six qualifying CTL projects, at 

4 least one of which shall be a project jointly or 

5 in part owned by two or more small coal pro6 ducers. Such an agreement— 

7 ‘‘(i) shall provide that the Secretary 

8 will make a direct loan (within the mean9 ing of section 502(1) of the Federal Credit 

10 Reform Act of 1990) to the qualifying 

11 CTL project; and 

12 ‘‘(ii) shall set a cap price and a min13 imum price for the primary term of the 

14 agreement. 

15 ‘‘(B) LOAN DISBURSEMENTS.—Such a loan 

16 shall be disbursed during the primary term of 

17 such agreement whenever the market price falls 

18 below the minimum price. The amount of such 

19 disbursements in any calendar quarter shall be 

20 equal to the excess of the minimum price over 

21 the market price, times the output of the 

22 project (but not more than a total level of dis23 bursements specified in the agreement). 

24 ‘‘(C) LOAN REPAYMENTS.—The Secretary 

25 shall establish terms and conditions, including 


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1 interest rates and amortization schedules, for 

2 the repayment of such loan within the full term 

3 of the agreement, subject to the following limi4 tations: 

5 ‘‘(i) If in any calendar quarter during 

6 the primary term of the agreement the 

7 market price is less than the cap price, the 

8 project may elect to defer some or all of its 

9 repayment obligations due in that quarter. 

10 Any unpaid obligations will continue to ac11 crue interest. 

12 ‘‘(ii) If in any calendar quarter during 

13 the primary term of the agreement the 

14 market price is greater than the cap price, 

15 the project shall meet its scheduled repay16 ment obligation plus deferred repayment 

17 obligations, but shall not be required to 

18 pay in that quarter an amount that is 

19 more than the excess of the market price 

20 over the cap price, times the output of the 

21 project. 

22 ‘‘(iii) At the end of the primary term 

23 of the agreement, the cumulative amount 

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1 ortized (with interest) over the remainder 

2 of the full term of the agreement. 

3 ‘‘(3) PROFIT-SHARING.—The Secretary is au4 thorized to enter into a profit-sharing agreement 

5 with the project at the time the standby loan agree6 ment is executed. Under such an agreement, if the 

7 market price exceeds the cap price in a calendar 

8 quarter, a profit-sharing payment shall be made for 

9 that quarter, in an amount equal to— 

10 ‘‘(A) the excess of the market price over 

11 the cap price, times the output of the project; 

12 less 

13 ‘‘(B) any loan repayments made for the 

14 calendar quarter. 

15 ‘‘(4) COMPLIANCE WITH FEDERAL CREDIT RE16 FORM ACT.— 

17 ‘‘(A) UPFRONT PAYMENT OF COST OF

18 LOAN.—No standby loan agreement may be en19 tered into under this subsection unless the 

20 project makes a payment to the United States 

21 that the Office of Management and Budget de22 termines is equal to the cost of such loan (de23 termined under 502(5)(B) of the Federal Credit 

24 Reform Act of 1990). Such payment shall be 


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1 made at the time the standby loan agreement is 

2 executed. 

3 ‘‘(B) MINIMIZATION OF RISK TO THE GOV4 ERNMENT.—In making the determination of the 

5 cost of the loan for purposes of setting the pay6 ment for a standby loan under subparagraph 

7 (A), the Secretary and the Office of Manage8 ment and Budget shall take into consideration 

9 the extent to which the minimum price and the 

10 cap price reflect historical patterns of volatility 

11 in actual oil prices relative to projections of fu12 ture oil prices, based upon publicly available 

13 data from the Energy Information Administra14 tion, and employing statistical methods and 

15 analyses that are appropriate for the analysis of 

16 volatility in energy prices. 

17 ‘‘(C) TREATMENT OF PAYMENTS.—The 

18 value to the United States of a payment under 

19 subparagraph (A) and any profit-sharing pay20 ments under paragraph (3) shall be taken into 

21 account for purposes of section 502(5)(B)(iii) of 

22 the Federal Credit Reform Act of 1990 in de23 termining the cost to the Federal Government 

24 of a standby loan made under this subsection. 

25 If a standby loan has no cost to the Federal 


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1 Government, the requirements of section 504(b) 

2 of such Act shall be deemed to be satisfied. 

3 ‘‘(5) OTHER PROVISIONS.— 

4 ‘‘(A) NO DOUBLE BENEFIT.—A project re5 ceiving a loan under this subsection may not, 

6 during the primary term of the loan agreement, 

7 receive a Federal loan guarantee under sub8 section (a) of this section, or under other laws. 

9 ‘‘(B) SUBROGATION, ETC.—Subsections 

10 (g)(2) (relating to subrogation), (h) (relating to 

11 fees), and (j) (relating to full faith and credit) 

12 shall apply to standby loans under this sub13 section to the same extent they apply to loan 

14 guarantees.’’. 

15 Subtitle B—Tax Provisions 

16 SEC. 311. EXTENSION OF RENEWABLE ELECTRICITY, RE17 FINED COAL, AND INDIAN COAL PRODUCTION 

18 CREDIT. 

19 (a) CREDIT MADE PERMANENT.— 

20 (1) IN GENERAL.—Subsection (d) of section 45 

21 of the Internal Revenue Code of 1986 (relating to 

22 qualified facilities) is amended— 

23 (A) by striking ‘‘and before January 1, 

24 2014’’ each place it occurs, 


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1 (B) by striking ‘‘, and before January 1, 

2 2013’’ in paragraph (1), and 

3 (C) by striking ‘‘before January 1, 2009’’ 

4 in paragraph (10). 

5 (2) OPEN-LOOP BIOMASS FACILITIES.—Sub6 paragraph (A) of section 45(d)(3) of such Code is 

7 amended to read as follows: 

8 ‘‘(A) IN GENERAL.—In the case of a facil9 ity using open-loop biomass to produce elec10 tricity, the term ‘qualified facility’ means any 

11 facility owned by the taxpayer which is origi12 nally placed in service after October 22, 2004.’’. 

13 (3) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall apply to electricity produced 

15 and sold after December 31, 2009, in taxable years 

16 ending after such date. 

17 (b) SALES OF NET ELECTRICITY TO REGULATED

18 PUBLIC UTILITIES TREATED AS SALES TO UNRELATED

19 PERSONS.—Paragraph (4) of section 45(e) of such Code 

20 is amended by adding at the end the following new sen21 tence: ‘‘The net amount of electricity sold by any taxpayer 

22 to a regulated public utility (as defined in section 

23 7701(a)(33)) shall be treated as sold to an unrelated per24 son.’’. 


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1 (c) ALLOWANCE AGAINST ALTERNATIVE MINIMUM

2 TAX.— 

3 (1) IN GENERAL.—Clause (iii) of section 

4 38(c)(4)(B) of such Code (relating to specified cred5 its) is amended by striking ‘‘produced—’’ and all 

6 that follows and inserting ‘‘produced at a facility 

7 which is originally placed in service after the date of 

8 the enactment of this paragraph.’’. 

9 (2) EFFECTIVE DATE.—The amendment made 

10 by paragraph (1) shall apply to taxable years begin11 ning after the date of the enactment of this Act. 

12 SEC. 312. EXTENSION OF ENERGY CREDIT. 

13 (a) SOLAR ENERGY PROPERTY.—Paragraphs 

14 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal 

15 Revenue Code of 1986 (relating to energy credit) are each 

16 amended by striking ‘‘but only with respect to periods end17 ing before January 1, 2017’’. 

18 (b) FUEL CELL PROPERTY.—Section 48(c)(1) of 

19 such Code (relating to qualified fuel cell property) is 

20 amended by striking subparagraph (D). 

21 (c) MICROTURBINE PROPERTY.—Subparagraph (D) 

22 of section 48(c)(2) of the Internal Revenue Code of 1986 

23 (relating to qualified microturbine property) is amended 

24 by striking ‘‘December 31, 2016’’ and inserting ‘‘Decem25 ber 31, 2020’’. 


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1 SEC. 313. EXTENSION AND MODIFICATION OF CREDIT FOR 

2 CLEAN RENEWABLE ENERGY BONDS. 

3 (a) EXTENSION.—Section 54(m) of the Internal Rev4 enue Code of 1986 (relating to termination) is amended 

5 by striking ‘‘December 31, 2009’’ and inserting ‘‘Decem6 ber 31, 2020’’. 

7 (b) INCREASE IN NATIONAL LIMITATION.—Section 

8 54(f) of such Code (relating to limitation on amount of 

9 bonds designated) is amended— 

10 (1) by striking ‘‘$1,200,000,000’’ in paragraph 

11 (1) and inserting ‘‘$1,600,000,000’’, and 

12 (2) by striking ‘‘$750,000,000’’ in paragraph 

13 (2) and inserting ‘‘$1,000,000,000’’. 

14 (c) MODIFICATION OF RATABLE PRINCIPAL AMORTI15 ZATION REQUIREMENT.— 

16 (1) IN GENERAL.—Paragraph (4) of section 

17 54(l) of such Code is amended to read as follows: 

18 ‘‘(4) RATABLE PRINCIPAL AMORTIZATION RE19 QUIRED.—A bond shall not be treated as a clean re20 newable energy bond unless it is part of an issue 

21 which provides for an equal amount of principal to 

22 be paid by the qualified issuer during each 12-month 

23 period that the issue is outstanding (other than the 

24 first 12-month period).’’. 

25 (2) TECHNICAL AMENDMENT.—The third sen26 tence of section 54(e)(2) of such Code is amended 


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1 by striking ‘‘subsection (l)(6)’’ and inserting ‘‘sub2 section (l)(4)’’. 

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

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

5 the enactment of this Act. 

6 SEC. 314. EXTENSION OF CREDITS FOR BIODIESEL AND RE7 NEWABLE DIESEL. 

8 (a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 

9 6427(e)(6)(B) of the Internal Revenue Code of 1986 are 

10 each amended by striking ‘‘December 31, 2009’’ and in11 serting ‘‘December 31, 2020’’. 

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

13 this section shall apply to fuel produced, and sold or used, 

14 after December 31, 2009. 

15 Subtitle C—American Renewable 

16 and Alternative Energy Trust Fund 

17 SEC. 321. AMERICAN RENEWABLE AND ALTERNATIVE EN18 ERGY TRUST FUND. 

19 (a) ESTABLISHMENT OF TRUST FUND.—There is es20 tablished in the Treasury of the United States a trust fund 

21 to be known as the ‘‘American Renewable and Alternative 

22 Energy Trust Fund’’, consisting of such amounts as may 

23 be transferred to the American Renewable and Alternative 

24 Energy Trust Fund as provided in section 149 and the 

25 amendments made by section 113 of this Act. 


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1 (b) EXPENDITURES FROM AMERICAN RENEWABLE

2 AND ALTERNATIVE ENERGY TRUST FUND.— 

3 (1) IN GENERAL.—Amounts in the American 

4 Renewable and Alternative Energy Trust Fund shall 

5 be available without further appropriation to carry 

6 out specified provisions of the Energy Policy Act of 

7 2005 (Public Law 109–58; in this section referred to 

8 as ‘‘EPAct2005’’) and the Energy Independence and 

9 Security Act of 2007 (Public Law 110–140; in this 

10 section referred to as ‘‘EISAct2007’’), as follows: 

11 (A) Grants to improve the commercial 

12 value of forest biomass for electric energy, use13 ful heat, transportation fuels, and other com14 mercial purposes, section 210 of EPAct2005, 3 

15 percent. 

16 (B) Hydroelectric production incentives, 

17 section 242 of EPAct2005, 2 percent. 

18 (C) Oil shale, tar sands, and other stra19 tegic unconventional fuels, section 369 of 

20 EPAct2005, 3 percent. 

21 (D) Clean Coal Power Initiative, section 

22 401 of EPAct2005, 7 percent. 

23 (E) Solar and wind technologies, section 

24 812 of EPAct2005, 7 percent. 


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1 (F) Renewable Energy, section 931 of 

2 EPAct2005, 20 percent. 

3 (G) Production incentives for cellulosic 

4 biofuels, section 942 of EPAct2005, 2.5 per5 cent. 

6 (H) Coal and related technologies pro7 gram, section 962 of EPAct2005, 4 percent. 

8 (I) Methane hydrate research, section 968 

9 of EPAct2005, 2.5 percent. 

10 (J) Incentives for Innovative Technologies, 

11 section 1704 of EPAct2005, 7 percent. 

12 (K) Grants for production of advanced 

13 biofuels, section 207 of EISAct2007, 16 per14 cent. 

15 (L) Photovoltaic demonstration program, 

16 section 607 EISAct2007, 2.5 percent. 

17 (M) Geothermal Energy, title VI, subtitle 

18 B of EISAct2007, 4 percent. 

19 (N) Marine and Hydrokinetic Renewable 

20 Energy Technologies, title VI, subtitle C of 

21 EISAct2007, 2.5 percent. 

22 (O) Energy storage competitiveness, sec23 tion 641 of EISAct2007, 10 percent. 


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1 (P) Smart grid technology research, devel2 opment, and demonstration, section 1304 of 

3 EISAct2007, 7 percent. 

4 (2) APPORTIONMENT OF EXCESS AMOUNT.— 

5 Notwithstanding paragraph (1), any amounts allo6 cated under paragraph (1) that are in excess of the 

7 amounts authorized in the applicable cited section or 

8 subtitle of EPAct2005 and EISAct2007 shall be re9 allocated to the remaining sections and subtitles 

10 cited in paragraph (1), up to the amounts otherwise 

11 authorized by law to carry out such sections and 

12 subtitles, in proportion to the amounts authorized by 

13 law to be appropriated for such other sections and 

14 subtitles. 

15 TITLE IV—NUCLEAR 

16 SEC. 401. STREAMLINE THE REGULATORY PROCESS. 

17 (a) FAST TRACK.— 

18 (1) PUBLIC HEALTH AND SAFETY.—Nothing in 

19 this subsection shall supersede, mitigate, detract 

20 from, or in anyway decrease the Nuclear Regulatory 

21 Commission’s ability to maintain the highest possible 

22 levels of public health and safety standards for nu23 clear facilities in the United States. No authority 

24 granted by this subsection shall be executed in a 


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1 manner that jeopardizes, minimizes, reduces, or 

2 lessens public health and safety standards. 

3 (2) STREAMLINING COMBINED CONSTRUCTION

4 AND OPERATING LICENSE.— 

5 (A) IN GENERAL.—The Nuclear Regu6 latory Commission shall establish and imple7 ment an expedited procedure for issuing a Com8 bined Construction and Operating License for 

9 qualified new reactors. 

10 (B) QUALIFICATIONS.—To qualify for the 

11 expedited procedure under this paragraph, an 

12 applicant shall— 

13 (i) apply for construction of a reactor 

14 based on a design approved by the Nuclear 

15 Regulatory Commission; 

16 (ii) construct the new reactor on a site 

17 where an operating nuclear power plant al18 ready exists; 

19 (iii) establish to the satisfaction of the 

20 Nuclear Regulatory Commission that there 

21 is broad local public support for the 

22 project; 

23 (iv) be an existing nuclear powerplant 

24 owner or operator with a substantial 

25 record of safe operations and be in good 


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1 standing with the Nuclear Regulatory 

2 Commission; 

3 (v) submit a complete Combined Con4 struction and Operating License applica5 tion; and 

6 (vi) demonstrate sufficient financial 

7 commitment to the project and prepared8 ness to proceed in earnest once the permit 

9 is issued, as demonstrated by— 

10 (I) the purchase of, or contract 

11 to purchase, long-lead materials; or 

12 (II) assured financing. 

13 (C) EXPEDITED PROCEDURE.—With re14 spect to a license for which the applicant has 

15 satisfied the requirements of subparagraph (B) 

16 and seeks fast track consideration, the Nuclear 

17 Regulatory Commission shall follow the fol18 lowing procedures: 

19 (i) Undertake a one year expedited 

20 environmental review process. 

21 (ii) Commence a one year public com22 ment period for comments on the applica23 tion. 

24 (iii) Expedite the technical review 

25 process to that amount of time which is 


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1 necessary to efficiently issue Combined 

2 Construction and Operating License per3 mits without sacrificing any aspect of pub4 lic health or safety. 

5 (D) GOALS.—The Nuclear Regulatory 

6 Commission shall present recommendations to 

7 Congress within 90 days of the date of enact8 ment of this Act for procedures that would 

9 allow the Commission to pursue a transparent, 

10 fact-based process in a nonadversarial environ11 ment where it can make decisions based on 

12 sound science and engineering as expeditiously 

13 as practicable. These recommendations shall en14 compass an efficient process that allows those 

15 parties that have standing to participate in the 

16 proceedings to raise legitimate concerns to be 

17 heard and resolved without undue delay. 

18 (3) NUCLEAR STEAM SUPPLY SYSTEM DESIGN

19 CERTIFICATION.—The Nuclear Regulatory Commis20 sion shall establish a schedule for certification of a 

21 Nuclear Steam Supply System reactor that main22 tains the highest levels of public health and safety. 

23 Such schedule shall seek to reduce by one half the 

24 time necessary to certify a reactor design. Such a 


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1 schedule shall be presented to Congress within one 

2 year of date of enactment of this Act. 

3 (4) TECHNOLOGY NEUTRAL PLANT DESIGN

4 SPECIFICATIONS.—Within one year of the date of 

5 enactment of this Act, the Nuclear Regulatory Com6 mission shall outline to the Congress an approach 

7 that will allow the Nuclear Regulatory Commission 

8 to develop technology-neutral guidelines for nuclear 

9 plant licensing in the future that would allow for the 

10 more seamless entry of new technologies into the 

11 marketplace. 

12 (5) ADDITIONAL FUNDING AND PERSONNEL RE13 SOURCES.—Not later than 90 days after the date of 

14 enactment of this Act, the Nuclear Regulatory Com15 mission shall transmit to the Congress a request for 

16 such additional funding and personnel resources as 

17 are necessary to carry out paragraphs (1) through 

18 (4). 

19 (6) NATIONAL LABORATORY SUPPORT.—Each 

20 national laboratory with expertise in the nuclear 

21 field shall, in coordination with the Nuclear Regu22 latory Commission, dedicate personnel to supporting 

23 either or both of the expedited design certification 

24 under paragraph (3) or the expedited licensing pro25 cedures under paragraph (2). 


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1 (7) EDUCATIONAL PROGRAM FUNDS.—To both 

2 support the Nation’s effort to efficiently license new 

3 nuclear power plants and build the expertise and 

4 workforce necessary to regulate and operate those 

5 plants, the Nuclear Regulatory Commission and the 

6 Department of Energy shall direct educational fund7 ing to programs to enhance or directly support the 

8 activities authorized by this subsection. 

9 (b) NATIONAL POLICY GOAL.—It is the policy goal 

10 of the United States to license 100 new nuclear reactors, 

11 or the megawatt equivalent, by 2030, if there are a suffi12 cient number of applicants. 

13 (c) MANDATORY HEARINGS FOR UNCONTESTED LI14 CENSE APPLICANTS.— 

15 (1) Sections 189A(1)(A) of the Atomic Energy 

16 Act of 1954 is modified thus: 

17 ‘‘(A) In any proceeding under this Act, for 

18 the granting, suspending, revoking, or amend19 ing of any license or construction permit, or ap20 plication to transfer control, and in any pro21 ceeding for the issuance or modification of rules 

22 and regulations dealing with the activities of li23 censees, and in any proceeding for the payment 

24 of compensation, an award, or royalties under 

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1 sion shall grant a hearing upon the request of 

2 any person whose interest may be affected by 

3 the proceeding, and shall admit any such per4 son as a party to such proceeding. The Com5 mission may, in the absence of a request there6 for by any person whose interest may be af7 fected, issue a construction permit, an oper8 ating license or an amendment to a construc9 tion permit or an amendment to an operating 

10 license without a hearing, but upon thirty days’ 

11 notice and publication once in the Federal Reg12 ister of its intent to do so. The Commission 

13 may dispense with such thirty days’ notice and 

14 publication with respect to any application for 

15 an amendment to a construction permit or an 

16 amendment to an operating license upon a de17 termination by the Commission that the amend18 ment involves no significant hazards consider19 ation.’’. 

20 (2) Section 185b of the Atomic Energy Act of 

21 1954 is modified thus: 

22 ‘‘b. After any public hearing held under section 

23 189a.(1)(A), the Commission shall issue to the applicant 

24 a combined construction and operating license if the appli25 cation contains sufficient information to support the 


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1 issuance of a combined license and the Commission deter2 mines that there is reasonable assurance that the facility 

3 will be constructed and will operate in conformity with the 

4 license, the provisions of this Act, and the Commission’s 

5 rules and regulations. The Commission shall identify with6 in the combined license the inspections, tests, and anal7 yses, including those applicable to emergency planning, 

8 that the licensee shall perform, and the acceptance criteria 

9 that, if met, are necessary and sufficient to provide rea10 sonable assurance that the facility has been constructed 

11 and will be operated in conformity with the license, the 

12 provisions of this Act, and the Commission’s rules and 

13 regulations. Following issuance of the combined license, 

14 the Commission shall ensure that the prescribed inspec15 tions, tests, and analyses are performed and, prior to oper16 ation of the facility, shall find that the prescribed accept17 ance criteria are met. Any finding made under this sub18 section shall not require a hearing except as provided in 

19 section 189a.(1)(B).’’. 

20 SEC. 402. INCREASE THE SUPPLY OF URANIUM. 

21 (a) SUPPLY DISRUPTION MITIGATION RESERVE.— 

22 The Secretary of Energy shall create a uranium supply23 disruption mitigation reserve. The Energy Department 

24 shall undergo an audit to account for all unused materials 

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1 clear reactors. Once accounted for, some portion, or all, 

2 of this resource shall be allocated to be a temporary re3 serve of reactor fuel to protect against a foreign supplier 

4 attempt to deny American energy producers access to ura5 nium fuel. 

6 (b) FINDINGS.—The Congress finds the following: 

7 (1) It is necessary to preserve access to domes8 tic uranium reserves and resources in order to meet 

9 the United States demand for clean noncarbon emit10 ting energy. Doing so will contribute to the Nation’s 

11 effort to seek energy independence and enhance our 

12 national and economic security. 

13 (2) United States utilities currently use ap14 proximately 56,000,000 pounds of uranium each 

15 year. Meanwhile, total United States uranium pro16 duction is only approximately 3,000,000 to 

17 4,000,000 pounds each year, or less than 10 percent 

18 of the Nation’s annual need. 

19 (3) To meet the United States demand for ura20 nium, the United States imports uranium from Rus21 sia, Canada, Australia, and Kazakhstan. In 2004, 

22 nearly 50 percent of imported uranium came from 

23 Russia. 


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1 (4) American industry can easily produce 

2 20,000,000 to 30,000,000 pounds of uranium each 

3 year from domestic resources. 

4 (5) To produce those resources we must pre5 serve access to the Nation’s uranium reserves and 

6 resources found within the northern Arizona strip, 

7 Northwestern New Mexico, Wyoming, and other 

8 parts of the United States. 

9 (6) The Arizona strip region, located in the 

10 Utah-Arizona border region, is estimated to contain 

11 a resource endowment of 375,000,000 pounds of 

12 uranium oxide (United States Geological Survey Cir13 cular 1051), making it the second most important 

14 uranium region in the United States after to Wyo15 ming. The energy potential of this quantity of ura16 nium rivals the energy equivalence of the total recov17 erable oil discovered at Prudhoe Bay Alaska, the 

18 largest oil field in North America. This quantity of 

19 uranium comprises over 40 percent of the Nation’s 

20 estimated uranium resource endowment, and Ari21 zona Strip area uranium is by far the highest grade 

22 uranium nationally. Development of these resources 

23 would promote energy independence and protect our 

24 national security. 


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1 (7) Development of these resources would pre2 vent the United States from being over reliant on 

3 less stable foreign sources of uranium. 

4 (8) The importance of developing these re5 sources is crucial as the rest of the world is embrac6 ing nuclear power, including China, India, Russia, 

7 Europe, the Middle East, Japan, and Korea, result8 ing in a exponential demand for known and undis9 covered uranium resources. 

10 (c) URANIUM POLICY SUMMIT.— 

11 (1) IN GENERAL.—The Secretary of the Inte12 rior, working with the Secretary of Energy, shall 

13 convene a national summit on uranium by no later 

14 than 180 days after the date of the enactment of 

15 this Act, to produce a report for Congress by no 

16 later than 1 year after the date of the enactment of 

17 this Act that includes an assessment of the Nation’s 

18 uranium resources and provides policy recommenda19 tions to ensure access to these resources for private 

20 sector development in an environmentally responsible 

21 manner. A principle policy objective of the summit 

22 and report shall be to domestically produce enough 

23 uranium to meet 30 percent of our national uranium 

24 demand by 2030. 


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1 (2) PARTICIPANTS.—The national summit on 

2 uranium shall include— 

3 (A) representatives from mining, enrich4 ment, utility, and disposal sectors of the ura5 nium industry; and 

6 (B) experts in hydrology, geology, mine 

7 reclamation, and safety. 

8 SEC. 403. RECYCLE AND SAFELY STORE SPENT NUCLEAR 

9 FUEL. 

10 (a) HIGH-LEVEL NUCLEAR WASTE REPOSITORY.— 

11 (1) The Federal Government remains obliged to 

12 construct and operate at least one high-level nuclear 

13 materials geologic repository for the disposal of 

14 spent nuclear fuel and high-level radioactive waste. 

15 (2) The high-level nuclear waste repository site 

16 at Yucca Mountain shall remain the site for the Na17 tion’s nuclear waste repository unless it is deemed 

18 technologically or scientifically unsuitable by the Nu19 clear Regulatory Commission following full statutory 

20 review of the Department of Energy’s license appli21 cation to construct the Yucca Mountain repository. 

22 (3) The Nuclear Regulatory Commission shall 

23 continue to review the Department of Energy’s 

24 pending license application to construct the nuclear 


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1 waste repository at Yucca Mountain until a deter2 mination is made on the merits of the application. 

3 (4) In addition to pursuing approval of the li4 cense application referenced in paragraph (3), the 

5 Secretary shall undertake the following activities: 

6 (A) Seeking all other necessary regulatory 

7 approvals and permits to construct and operate 

8 the Yucca Mountain repository. 

9 (B) Conducting all necessary design and 

10 engineering work to support construction of the 

11 repository. 

12 (C) Undertaking all infrastructure activi13 ties necessary to support the construction or 

14 operation of the repository or transportation to 

15 the site of spent nuclear fuel and high-level ra16 dioactive waste. Infrastructure activities in17 clude, but are not limited to, safety upgrades; 

18 site preparation; the construction of a rail line 

19 to connect the Yucca Mountain site with the 

20 national rail network, including any facilities to 

21 facilitate rail operations; and construction, up22 grade, acquisition, or operation of electrical 

23 grids or facilities, other utilities, communication 

24 facilities, access roads, rail lines, and non25 nuclear support facilities. 


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1 (5) All statutory limitations on the amount of 

2 spent fuel that can be placed in Yucca Mountain 

3 shall be removed and replaced with new limits based 

4 on scientific and technical analysis of the full capac5 ity of Yucca Mountain for the storage of spent nu6 clear fuel and high-level radioactive waste. 

7 (b) TEMPORARY NUCLEAR FUEL STORAGE FACILI8 TIES.—The Secretary of the Interior shall grant all nec9 essary rights of way and land use authorizations needed 

10 for a nuclear fuel storage facility if the State and locality 

11 in which such facility is located reach an agreement with 

12 a private entity. The Federal Government shall take title 

13 of the contents of any such facility upon closure or decom14 missioning. 

15 (c) RECYCLING.— 

16 (1) AMENDMENT.—Section 302 of the Nuclear 

17 Waste Policy Act of 1982 (42 U.S.C. 10222) is 

18 amended— 

19 (A) in subsection (d), by striking ‘‘The 

20 Secretary may’’ and inserting ‘‘Except as pro21 vided in subsection (f), the Secretary may’’; and 

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

23 subsection: 

24 ‘‘(f) RECYCLING.— 


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

2 Fund shall be used by the Secretary of Energy to 

3 make grants to or enter into long-term contracts 

4 with private sector entities for the recycling of spent 

5 nuclear fuel. 

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

7 contracts authorized under paragraph (1) shall be 

8 awarded on the basis a competitive bidding process 

9 that— 

10 ‘‘(A) maximizes the competitive efficiency 

11 of the projects funded; 

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

13 amount of waste requiring disposal under this 

14 Act; and 

15 ‘‘(C) ensures adequate protection against 

16 the proliferation of nuclear materials that could 

17 be used in the manufacture of nuclear weap18 ons.’’. 

19 (2) PROHIBITION.—The Administration is pro20 hibited from blocking or hindering spent nuclear fuel 

21 recycling activities. 

22 (3) RULEMAKING FOR LICENSING OF SPENT

23 NUCLEAR FUEL RECYCLING FACILITIES.— 

24 (A) REQUIREMENT.—The Nuclear Regu25 latory Commission shall, as expeditiously as 


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1 possible, but in no event later than 2 years 

2 after the date of enactment of this Act, com3 plete a rulemaking establishing a process for 

4 the licensing by the Nuclear Regulatory Com5 mission, under the Atomic Energy Act of 1954, 

6 of facilities for the recycling of spent nuclear 

7 fuel. 

8 (B) FUNDING.—Amounts in the Nuclear 

9 Waste Fund established under section 302 of 

10 the Nuclear Waste Policy Act of 1982 (42 

11 U.S.C. 10222) shall be made available to the 

12 Nuclear Regulatory Commission to cover the 

13 costs of carrying out subparagraph (A) of this 

14 paragraph. 

15 SEC. 404. CONFIDENCE IN AVAILABILITY OF WASTE DIS16 POSAL. 

17 Notwithstanding any other provision of law, in decid18 ing whether to permit the construction or operation of a 

19 nuclear reactor or any related facilities, the Nuclear Regu20 latory Commission shall deem, without further consider21 ation, that sufficient capacity will be available in a timely 

22 manner to dispose of spent nuclear fuel and high level ra23 dioactive waste resulting from the operation of the reactor 

24 and any related facilities. 


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1 SEC. 405. PREFERENTIAL TREATMENT FOR CERTAIN NU2 CLEAR REACTORS AND RELATED ARTICLES. 

3 (a) IN GENERAL.—The President shall proclaim 

4 duty-free treatment or other preferential treatment for 

5 any article described in subsection (b) that is imported 

6 directly into the customs territory of the United States 

7 if the President determines, after obtaining advice from 

8 the International Trade Commission, that there is no do9 mestic production of such article. 

10 (b) ARTICLE DESCRIBED.—An article described in 

11 this subsection is any article provided for in heading 8401 

12 or 9902.84 of the Harmonized Tariff Schedule of the 

13 United States (relating to nuclear reactors; fuel elements 

14 (cartridges), non-irradiated, for nuclear reactors; machin15 ery and apparatus for isotopic separation; parts thereof). 

16 (c) WITHDRAWAL, SUSPENSION, OR LIMITATION OF

17 PREFERENTIAL TREATMENT.—The President may with18 draw, suspend, or limit the application of duty-free treat19 ment or other preferential treatment under this section for 

20 any article described in subsection (b) with respect to 

21 which duty-free treatment has been proclaimed under sub22 section (a). 

23 (d) TERMINATION OF PREFERENTIAL TREAT24 MENT.—No duty-free treatment or other preferential 

25 treatment extended under this section shall remain in ef26 fect after 5 years. 


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1 SEC. 406. NATIONAL NUCLEAR ENERGY COUNCIL. 

2 (a) IN GENERAL.— 

3 (1) The Secretary of Energy shall establish a 

4 National Nuclear Energy Council (hereinafter the 

5 ‘‘Council’’). 

6 (2) The National Nuclear Energy Council shall 

7 be subject to the requirements of the Federal Advi8 sory Committee Act (5 U.S.C. appendix 2). 

9 (b) PURPOSE.—The National Nuclear Energy Coun10 cil shall— 

11 (1) serve in an advisory capacity to the Sec12 retary of Energy regarding nuclear energy on mat13 ters submitted to the Council by the Secretary of 

14 Energy; 

15 (2) advise, inform, and make recommendations 

16 to the Secretary of Energy with respect to any mat17 ter relating to nuclear energy; 

18 (3) help nuclear energy related investors to 

19 navigate the Federal bureaucracy to efficiently bring 

20 their products and services to the marketplace; and 

21 (4) not participate in any research and develop22 ment or commercialization activities. 

23 (c) MEMBERSHIP AND ORGANIZATION.— 

24 (1) The members of the Council shall be ap25 pointed by the Secretary of Energy. 


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1 (2) The Council may establish such study and 

2 administrative committees as it may deem appro3 priate. Study committees shall only assist the Coun4 cil in preparing its advice, information, or rec5 ommendations to the Secretary of Energy. Adminis6 trative committees shall be formed solely for the 

7 purpose of assisting the Council or its Chairman in 

8 the management of the internal affairs of the Coun9 cil. 

10 (3) The officers of the Council shall consist of 

11 a Chairman, a Vice Chairman, and such other offi12 cers as may be approved by the Council. The Chair13 man and Vice Chairman must be members of the 

14 Council and shall receive no compensation for service 

15 as officers of the Council. 

16 (4) The Secretary of Energy shall be Cochair17 man of the Council. If the Secretary of Energy des18 ignates a full-time, salaried official of the Depart19 ment of Energy as his alternate, such alternate may 

20 exercise any duties of the Secretary of Energy and 

21 may perform any function on the Council otherwise 

22 reserved for the Secretary of Energy. 

23 (5) The Chairman and the Vice Chairman shall 

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1 ing to serve until their successors are elected at the 

2 next organizational meeting of the Council. 

3 (d) MEETINGS.— 

4 (1) Regular meetings of the Council shall be 

5 held at least twice each year at times determined by 

6 the Chairman and approved by the Government Co7 chairman. 

8 (2) No meeting of the Council shall be held un9 less the Government Cochairman approves the agen10 da thereof, approves the calling thereof, and is 

11 present thereat. 

12 (3) The time and place of all Council meetings 

13 shall be given general publicity and such meetings 

14 shall be open to the public. 

15 (e) STUDIES BY THE COUNCIL.— 

16 (1) The Council may establish study committees 

17 to prepare reports for the consideration of the Coun18 cil pursuant to requests from the Secretary of En19 ergy for advice, information, and recommendations. 

20 (2) The Secretary of Energy or a full-time em21 ployee of the Department of Energy designated by 

22 the Secretary shall be the Cochairman of each study 

23 committee. 

24 (3) The members of study committees shall be 

25 selected from the Council membership on the basis 


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1 of their training, experience, and general qualifica2 tions to deal with the matters assigned. 

3 SEC. 407. EXPANSION OF ENERGY INVESTMENT TAX CRED4 IT TO INCLUDE NUCLEAR AND CLEAN-COAL 

5 EQUIPMENT. 

6 (a) IN GENERAL.—Clause (i) of section 

7 48C(c)((1)(A) of the Internal Revenue Code of 1986 is 

8 amended by striking ‘‘or’’ at the end of subclause (VI), 

9 by striking ‘‘and’’ at the end of subclause (VII), by insert10 ing after subclause (VII) the following new subclauses: 

11 ‘‘(VIII) property designed to be 

12 used to produce energy from an ad13 vanced nuclear power facility (as de14 fined in section 45J(d)), or 

15 ‘‘(IX) property designed to be 

16 used to produce energy from clean17 coal equipment, and’’. 

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

19 of section 48C of such Code is amended by inserting 

20 ‘‘45J,’’ before ‘‘48,’’. 

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

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

23 after the date of the enactment of this Act. 


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1 TITLE V—ENVIRONMENTAL 

2 REVIEW; GREENHOUSE GASES 

3 SEC. 501. ENVIRONMENTAL REVIEW FOR RENEWABLE EN4 ERGY PROJECTS. 

5 (a) COMPLIANCE WITH NEPA FOR RENEWABLE EN6 ERGY PROJECTS.—Notwithstanding any other law, in pre7 paring an environmental assessment or environmental im8 pact statement required under section 102 of the National 

9 Environmental Policy Act of 1969 (42 U.S.C. 4332) with 

10 respect to any action authorizing a renewable energy 

11 project under the jurisdiction of a Federal agency— 

12 (1) no Federal agency is required to identify al13 ternative project locations or actions other than the 

14 proposed action and the no action alternative; and 

15 (2) no Federal agency is required to analyze the 

16 environmental effects of alternative locations or ac17 tions other than those submitted by the project pro18 ponent. 

19 (b) CONSIDERATION OF ALTERNATIVES.—In any en20 vironmental assessment or environmental impact state21 ment referred to in subsection (a), the Federal agency 

22 shall only identify and analyze the environmental effects 

23 and potential mitigation measures of— 

24 (1) the proposed action; and 

25 (2) the no action alternative. 


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1 (c) PUBLIC COMMENT.—In preparing an environ2 mental assessment or environmental impact statement re3 ferred to in subsection (a), the Federal agency shall only 

4 consider public comments that specifically address the pre5 ferred action and that are filed within 20 days after publi6 cation of a draft environmental assessment or draft envi7 ronmental impact statement. Notwithstanding any other 

8 law, compliance with this subsection is deemed to satisfy 

9 section 102(2) of the National Environmental Policy Act 

10 of 1969 (42 U.S.C. 4332(2)) and the applicable regula11 tions and administrative guidelines with respect to pro12 posed renewable energy projects. 

13 (d) RENEWABLE ENERGY PROJECT DEFINED.—For 

14 purposes of this section, the term ‘‘renewable energy 

15 project’’— 

16 (1) means any proposal to utilize an energy 

17 source other than coal, oil, or natural gas; and 

18 (2) includes the use of nuclear, wind, solar, geo19 thermal, biomass, hydro (including large, small20 scale, and low head conventional hydro), or tidal 

21 forces to generate energy. 

22 SEC. 502. GREENHOUSE GAS REGULATION UNDER CLEAN 

23 AIR ACT. 

24 (a) IN GENERAL.—Section 302(g) of the Clean Air 

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1 lowing at the end thereof: ‘‘The term ‘air pollutant’ shall 

2 not include carbon dioxide, water vapor, methane, nitrous 

3 oxide, hydrofluorocarbons, perfluorocarbons, or sulfur 

4 hexafluoride.’’. 

5 (b) CLIMATE CHANGE NOT REGULATED BY CLEAN

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

7 as authorizing or requiring the regulation of climate 

8 change or global warming. 

9 SEC. 503. PROHIBITION OF CONSIDERATION OF IMPACT OF 

10 GREENHOUSE GAS. 

11 (a) IN GENERAL.—The Endangered Species Act of 

12 1973 (16 U.S.C. 1531 et seq.) is amended by adding at 

13 the end the following new section: 

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

15 GREENHOUSE GAS. 

16 ‘‘(a) DEFINITION OF GREENHOUSE.—In this section, 

17 the term ‘greenhouse gas’ means any of— 

18 ‘‘(1) carbon dioxide; 

19 ‘‘(2) methane; 

20 ‘‘(3) nitrous oxide; 

21 ‘‘(4) sulfur hexafluoride; 

22 ‘‘(5) a hydrofluorocarbon; 

23 ‘‘(6) a perfluorocarbon; or 

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

25 the Secretary for purposes of this section. 


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

2 greenhouse gas on any species of fish or wildlife or plant 

3 shall not be considered for any purpose in the implementa4 tion of this Act.’’. 

5 (b) CONFORMING AMENDMENT.—The table of con6 tents in the first section of the Endangered Species Act 

7 of 1973 (16 U.S.C. prec. 1531) is amended by adding at 

8 the end the following new items: 

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

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

9 TITLE VI—LEGAL REFORM 

10 SEC. 601. FINDINGS. 

11 Congress finds that— 

12 (1) the United States spends over $1 billion per 

13 day to import crude oil from foreign countries; 

14 (2) such expenditure represents the largest 

15 wealth transfer in history; 

16 (3) the United States has at least 86 billion 

17 barrels of oil and 420 trillion cubic feet of natural 

18 gas in the outer Continental Shelf; 

19 (4) environmental groups have legally chal20 lenged every lease in the Alaskan Outer Continental 

21 Shelf in the Chukchi and Beaufort Seas; 

22 (5) environmental groups have legally chal23 lenged the entire 2007–2012 5-year national outer 

24 Continental Shelf leasing program; 


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1 (6) such legal challenges significantly delay or 

2 ultimately prevent energy resources from reaching 

3 the American public; 

4 (7) these legal challenges come at a high cost 

5 to the American public and the American economy; 

6 and 

7 (8) Congress finds that expedited judicial re8 view is necessary to prevent this gross abuse of the 

9 United States judicial system. 

10 SEC. 602. EXCLUSIVE JURISDICTION OVER CAUSES AND 

11 CLAIMS RELATING TO COVERED ENERGY 

12 PROJECTS. 

13 Notwithstanding any other provision of law, the 

14 United States District Court for the District of Columbia 

15 shall have exclusive jurisdiction to hear all causes and 

16 claims under this title or any other Act that arise from 

17 any covered energy project. 

18 SEC. 603. TIME FOR FILING COMPLAINT. 

19 All causes and claims referred to in section 602 must 

20 be filed not later than the end of the 60-day period begin21 ning on the date of the action or decision by a Federal 

22 official that constitutes the covered energy project con23 cerned. Any cause or claim not filed within that time pe24 riod shall be barred. 


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1 SEC. 604. DISTRICT COURT FOR THE DISTRICT OF COLUM2 BIA DEADLINE. 

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

4 to section 602— 

5 (1) shall be resolved as expeditiously as pos6 sible, and in any event not more than 180 days after 

7 such cause or claim is filed; and 

8 (2) shall take precedence over all other pending 

9 matters before the district court. 

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

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

12 been issued by the district court by the deadline described 

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

14 with prejudice and all rights relating to such cause or 

15 claim shall be terminated. 

16 SEC. 605. ABILITY TO SEEK APPELLATE REVIEW. 

17 An interlocutory or final judgment, decree, or order 

18 of the district court may be reviewed by no other court 

19 except the Supreme Court. 

20 SEC. 606. DEADLINE FOR APPEAL TO THE SUPREME 

21 COURT. 

22 If a writ of certiorari has been granted by the Su23 preme Court pursuant to section 605, then— 

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

25 or order of the district court shall be resolved as ex26 peditiously as possible and in any event not more 


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1 than 180 days after such interlocutory or final judg2 ment, decree, order of the district court is issued; 

3 and 

4 (2) all such proceedings shall take precedence 

5 over all other matters then before the Supreme 

6 Court. 

7 SEC. 607. LIMITATION ON SCOPE OF REVIEW AND RELIEF. 

8 (a) ADMINISTRATIVE FINDINGS AND CONCLU9 SIONS.—In any judicial review of any Federal action under 

10 this Act, any administrative findings and conclusions re11 lating to the challenged Federal action shall be presumed 

12 to be correct unless shown otherwise by clear and con13 vincing evidence contained in the administrative record. 

14 (b) LIMITATION ON PROSPECTIVE RELIEF.—In any 

15 judicial review of any action, or failure to act, under this 

16 Act, the Court shall not grant or approve any prospective 

17 relief unless the Court finds that such relief is narrowly 

18 drawn, extends no further than necessary to correct the 

19 violation of a Federal law requirement, and is the least 

20 intrusive means necessary to correct the violation con21 cerned. 

22 SEC. 608. LEGAL FEES. 

23 Any person filing a petition seeking judicial review 

24 of any action, or failure to act, under this Act who is not 

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1 cluding intervening parties), other than the United States, 

2 fees and other expenses incurred by that party in connec3 tion with the judicial review, unless the Court finds that 

4 the position of the person was substantially justified or 

5 that special circumstances make an award unjust. 

6 SEC. 609. EXCLUSION. 

7 This title shall not apply with respect to disputes be8 tween the parties to a lease issued pursuant to an author9 izing leasing statute regarding the obligations of such 

10 lease or the alleged breach thereof. 

11 SEC. 610. COVERED ENERGY PROJECT DEFINED. 

12 In this title, the term ‘‘covered energy project’’ means 

13 any action or decision by a Federal official regarding— 

14 (1) the leasing of Federal lands (including sub15 merged lands) for the exploration, development, pro16 duction, processing, or transmission of oil, natural 

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

18 actions and decisions regarding the selection or of19 fering of Federal lands for such leasing; or 

20 (2) any action under such a lease. 

Æ 


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