I 

111TH CONGRESS 

1ST SESSION H. R. 3505 

To increase the supply of American made energy, reduce energy costs to 

the American taxpayer, provide a long-term energy framework to reduce 

dependence on foreign oil, tap into American sources of energy, and 

reduce the size of the Federal deficit. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2009 

Mr. GARY G. MILLER of California (for himself and Mr. ROONEY) introduced 

the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on Ways and Means, Energy 

and Commerce, the Judiciary, 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 

A BILL 

To increase the supply of American made energy, reduce 

energy costs to the American taxpayer, provide a longterm energy framework to reduce dependence on foreign 

oil, tap into American sources of energy, and reduce 

the size of the Federal deficit. 

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. 

4 This Act may be cited as the ‘‘American Energy Pro5 duction and Price Reduction Act’’. 


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1 SEC. 2. TABLE OF CONTENTS. 

2 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—SENSE OF CONGRESS 

Sec. 101. Sense of Congress. 

TITLE II—AMERICAN OIL PRODUCTION 

Subtitle A—Outer Continental Shelf 

Sec. 201. Definitions under the Submerged Lands Act. 

Sec. 202. Seaward boundaries of States. 

Sec. 203. Exceptions from confirmation and establishment of States’ title, 

power, and rights. 

Sec. 204. Definitions under the Outer Continental Shelf Lands Act. 

Sec. 205. Determination of Adjacent Zones and Planning Areas. 

Sec. 206. Administration of leasing. 

Sec. 207. Grant of leases by Secretary. 

Sec. 208. Disposition of receipts. 

Sec. 209. Reservation of lands and rights. 

Sec. 210. Outer Continental Shelf leasing program. 

Sec. 211. Coordination with Adjacent States. 

Sec. 212. Environmental studies. 

Sec. 213. Outer Continental Shelf incompatible use. 

Sec. 214. Repurchase of certain leases. 

Sec. 215. Offsite environmental mitigation. 

Sec. 216. OCS regional headquarters. 

Sec. 217. Leases for areas located within 100 miles of California or Florida. 

Sec. 218. Coastal impact assistance. 

Sec. 219. Repeal of the Gulf of Mexico Energy Security Act of 2006. 

Subtitle B—ANWR 

Sec. 231. Short title. 

Sec. 232. Definitions. 

Sec. 233. Leasing program for lands within the Coastal Plain. 

Sec. 234. Lease sales. 

Sec. 235. Grant of leases by the Secretary. 

Sec. 236. Lease terms and conditions. 

Sec. 237. Coastal Plain environmental protection. 

Sec. 238. Expedited judicial review. 

Sec. 239. Federal and State distribution of revenues. 

Sec. 240. Rights-of-way across the Coastal Plain. 

Sec. 241. Conveyance. 

Sec. 242. Local government impact aid and community service assistance. 

TITLE III—NUCLEAR POWER 

Sec. 301. Waste Confidence. 

Sec. 302. ASME Nuclear Certification credit. 

TITLE IV—REGULATORY BURDENS 


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Sec. 401. Greenhouse gas regulation under Clean Air Act. 

Sec. 402. NEPA judicial review. 

Sec. 403. Repeal of 2007 amendments to renewable fuel standard. 

Sec. 404. Repeal of requirement to consult regarding impacts on global warming and polar bear population. 

Sec. 405. Light bulb choice. 

Sec. 406. Repeal of deduction for income attributable to domestic production 

activities. 

TITLE V—SOLAR POWER 

Sec. 501. Short title. 

Sec. 502. Exemption of solar energy projects from environmental impact statement requirement. 

TITLE VI—NATURAL GAS 

Sec. 601. Natural gas vehicle research, development, and demonstration 

projects. 

Sec. 602. Alternative fuel credit with respect to compressed or liquefied natural 

gas made permanent. 

Sec. 603. Alternative fuel vehicle credit made permanent with respect to vehicles powered by compressed or liquefied natural gas. 

Sec. 604. Allowance of vehicle and infrastructure credits against regular and 

minimum tax and transferability of credits. 

Sec. 605. Credit for producing vehicles fueled by natural gas or liquified natural gas. 

TITLE VII—CLEAN COAL 

Sec. 701. Coal-to-liquid facilities. 

Sec. 702. Permanent extension of the credit for nonbusiness energy property 

and the credit for gas produced from biomass and for synthetic 

fuels produced from coal. 

Sec. 703. Coal-to-liquid fuel loan guarantee program. 

Sec. 704. Coal-to-liquid facilities loan program. 

Sec. 705. 7-year depreciation for clean coal technology or for carbon sequestration technology installed or retro-fit at power-plants. 

Sec. 706. Extension of 50 cent per gallon alternative fuels excise tax credit. 

Sec. 707. Provides a 20 percent investment tax credit capped at $200 million 

total per ctl plant placed in service before 2016. 

Sec. 708. Reduces recovery period for certain energy production and distribution facilities. 

Sec. 709. DOE clean coal technology loan guarantees and direct loans. 

Sec. 710. Carbon dioxide storage capacity assessment. 

Sec. 711. Efficiency audit and quantification. 

TITLE VIII—TAX INCENTIVES 

Sec. 801. Extension of credit for energy efficient appliances. 

Sec. 802. Extension of credit for nonbusiness energy property. 

Sec. 803. Extension of credit for residential energy efficient property. 

Sec. 804. Extension of new energy efficient home credit. 

Sec. 805. Extension of energy efficient commercial buildings deduction. 

Sec. 806. Extension of special rule to implement FERC and State electric restructuring policy. 

Sec. 807. Home energy audits. 


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Sec. 808. Extension of renewable electricity, refined coal, and Indian coal production credit. 

Sec. 809. Extension of energy credit. 

Sec. 810. Credit for clean renewable energy bonds made permanent. 

Sec. 811. Extension of credits for biodiesel and renewable diesel. 

Sec. 812. Alternative fuel vehicle refueling property credit made permanent. 

1 TITLE I—SENSE OF CONGRESS 

2 SEC. 101. SENSE OF CONGRESS. 

3 It is the sense of Congress that at no time shall Con4 gress enact legislation that will lead to the increase of do5 mestic energy prices. 

6 TITLE II—AMERICAN OIL 

7 PRODUCTION 

8 Subtitle A—Outer Continental 

9 Shelf 

10 SEC. 201. DEFINITIONS UNDER THE SUBMERGED LANDS 

11 ACT. 

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

13 1301) is amended— 

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

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

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

17 such State;’’; 

18 (2) by striking out paragraph (b) and redesig19 nating the subsequent paragraphs in order as para20 graphs (b) through (g); 


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1 (3) by striking the period at the end of para2 graph (g) (as so redesignated) and inserting ‘‘; 

3 and’’; 

4 (4) by adding the following: 

5 ‘‘(i) The term ‘Secretary’ means the Secretary of the 

6 Interior.’’; and 

7 (5) by defining ‘‘State’’ as it is defined in sec8 tion 2(r) of the Outer Continental Shelf Lands Act 

9 (43 U.S.C. 1331(r)). 

10 SEC. 202. SEAWARD BOUNDARIES OF STATES. 

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

12 1312) is amended— 

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

14 and in the same sentence by striking ‘‘three geo15 graphical’’ and inserting ‘‘twelve nautical’’; and 

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

17 inserting the following: ‘‘Extension and delineation 

18 of lateral offshore State boundaries under the provi19 sions of this Act shall follow the lines used to deter20 mine the Adjacent Zones of coastal States under the 

21 Outer Continental Shelf Lands Act to the extent 

22 such lines extend twelve nautical miles for the near23 est coastline.’’. 


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1 SEC. 203. EXCEPTIONS FROM CONFIRMATION AND ESTAB2 LISHMENT OF STATES’ TITLE, POWER, AND 

3 RIGHTS. 

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

5 1313) is amended— 

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

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

8 (2) by inserting ‘‘(a)’’ before ‘‘There is ex9 cepted’’; and 

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

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

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

13 3 and 4 all of the oil and gas mineral rights for lands 

14 beneath the navigable waters that are located within the 

15 expanded offshore State seaward boundaries established 

16 under this Act. These oil and gas mineral rights shall re17 main Federal property and shall be considered to be part 

18 of the Federal outer Continental Shelf for purposes of the 

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

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

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

22 gas resources of the Federal outer Continental Shelf. All 

23 existing Federal oil and gas leases within the expanded 

24 offshore State seaward boundaries shall continue un25 changed by the provisions of this Act, except as otherwise 

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


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1 sovereign powers of taxation within the entire extent of 

2 its expanded offshore State boundaries.’’. 

3 SEC. 204. DEFINITIONS UNDER THE OUTER CONTINENTAL 

4 SHELF LANDS ACT. 

5 Section 2 of the Outer Continental Shelf Lands Act 

6 (43 U.S.C. 1331) is amended— 

7 (1) by amending paragraph (f) to read as fol8 lows: 

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

10 State’.’’; 

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

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

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

15 (p) and inserting a period; 

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

17 ‘‘(r) The term ‘Adjacent State’ 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, any State the laws of which are 

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

22 United States for the portion of the outer Continental 

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

24 or activity appertains or is, or is proposed to be, con25 ducted. For purposes of this paragraph, the term ‘State’ 


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1 includes the Commonwealth of Puerto Rico, the Common2 wealth of the Northern Mariana Islands, the Virgin Is3 lands, American Samoa, Guam, and the other territories 

4 of the United States. 

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

6 to any program, plan, lease sale, leased tract, or other ac7 tivity proposed, conducted, or approved pursuant to the 

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

9 Shelf for which the laws of a particular Adjacent State 

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

11 of the United States. 

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

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

14 the term ‘coast line’ as defined in section 2(c) of the Sub15 merged Lands Act (43 U.S.C. 1301(c)). 

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

17 State having a common boundary at the coastline with the 

18 Adjacent State.’’; and 

19 (5) in paragraph (a), by inserting after ‘‘con20 trol’’ the following: ‘‘or lying within the United 

21 States exclusive economic zone adjacent to the terri22 tories of the United States’’. 


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1 SEC. 205. DETERMINATION OF ADJACENT ZONES AND 

2 PLANNING AREAS. 

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

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

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

6 that follows through the end of the sentence and inserting 

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

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

9 are as indicated on the maps for each outer Continental 

10 Shelf region entitled ‘Alaska OCS Region State Adjacent 

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

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

13 Mexico OCS Region State Adjacent Zones and OCS Plan14 ning Areas’, and ‘Atlantic OCS Region State Adjacent 

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

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

17 Minerals Management Service.’’. 

18 SEC. 206. ADMINISTRATION OF LEASING. 

19 Section 5 of the Outer Continental Shelf Lands Act 

20 (43 U.S.C. 1334) is amended by adding at the end the 

21 following: 

22 ‘‘(k) VOLUNTARY PARTIAL RELINQUISHMENT OF A

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

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

25 no interest in producing and that the Secretary finds is 

26 geologically prospective. In return for any such relinquishVerDate Nov 24 2008 04:15 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3505.IH H3505

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1 ment, the Secretary shall provide to the lessee a royalty 

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

3 in accordance with regulations promulgated by the Sec4 retary to carry out this subsection. The Secretary shall 

5 publish final regulations implementing this subsection 

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

7 American Energy Production and Price Reduction Act. 

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

9 than July 1, 2010, the Secretary shall publish a final regu10 lation that shall— 

11 ‘‘(1) establish procedures for entering into nat12 ural gas leases; 

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

14 available for tracts on the outer Continental Shelf 

15 that are wholly within 100 miles of the coastline 

16 within an area withdrawn from disposition by leas17 ing on the day after the date of enactment of the 

18 American Energy Production and Price Reduction 

19 Act; 

20 ‘‘(3) provide that natural gas leases shall con21 tain the same rights and obligations established for 

22 oil and gas leases, except as otherwise provided in 

23 the American Energy Production and Price Reduc24 tion Act; 


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

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

3 oil estimated to be contained within any tract shall 

4 be excluded; 

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

6 a well and reinjected into the leased tract shall not 

7 be subject to payment of royalty, and that the Sec8 retary shall consider, in setting the royalty rates for 

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

10 of not producing any crude oil; and 

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

12 to an oil and gas lease on the outer Continental 

13 Shelf shall apply to a natural gas lease unless other14 wise clearly inapplicable.’’. 

15 SEC. 207. GRANT OF LEASES BY SECRETARY. 

16 Section 8 of the Outer Continental Shelf Lands Act 

17 (43 U.S.C. 1337) is amended— 

18 (1) in subsection (a)(1) by inserting after the 

19 first sentence the following: ‘‘Further, the Secretary 

20 may grant natural gas leases in a manner similar to 

21 the granting of oil and gas leases and under the var22 ious bidding systems available for oil and gas 

23 leases.’’; 

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

25 following: ‘‘The Secretary may issue more than one 


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1 lease for a given tract if each lease applies to a sepa2 rate and distinct range of vertical depths, horizontal 

3 surface area, or a combination of the two. The Sec4 retary may issue regulations that the Secretary de5 termines are necessary to manage such leases con6 sistent with the purposes of this Act.’’; 

7 (3) by amending subsection (p)(2)(B) to read 

8 as follows: 

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

10 payment to coastal States, and their local coast11 al governments, of 75 percent of Federal re12 ceipts from projects authorized under this sec13 tion located partially or completely within the 

14 area extending seaward of State submerged 

15 lands out to 4 marine leagues from the coast16 line, and the payment to coastal States of 50 

17 percent of the receipts from projects completely 

18 located in the area more than 4 marine leagues 

19 from the coastline. Payments shall be based on 

20 a formula established by the Secretary by rule21 making no later than 180 days after the date 

22 of the enactment of the American Energy Pro23 duction and Price Reduction Act that provides 

24 for equitable distribution, based on proximity to 

25 the project, among coastal States that have 


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1 coastline that is located within 200 miles of the 

2 geographic center of the project.’’; 

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

4 ‘‘(q) NATURAL GAS LEASES.— 

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

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

7 produce the natural gas from a field on a natural 

8 gas leased tract if the Secretary estimates that the 

9 discovered field has at least 40 percent of the eco10 nomically recoverable Btu content of the field con11 tained within natural gas and such natural gas is ec12 onomical to produce. 

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

14 lease may not produce crude oil from the lease un15 less the Governor of the Adjacent State agrees to 

16 such production. 

17 ‘‘(3) ESTIMATES OF BTU CONTENT.—The Sec18 retary shall make estimates of the natural gas Btu 

19 content of discovered fields on a natural gas lease 

20 only after the completion of at least one exploration 

21 well, the data from which has been tied to the re22 sults of a three-dimensional seismic survey of the 

23 field. The Secretary may not require the lessee to 

24 further delineate any discovered field prior to mak25 ing such estimates. 


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1 ‘‘(4) DEFINITION OF NATURAL GAS.—For pur2 poses of a natural gas lease, natural gas means nat3 ural gas and all substances produced in association 

4 with gas, including, but not limited to, hydrocarbon 

5 liquids (other than crude oil) that are obtained by 

6 the condensation of hydrocarbon vapors and sepa7 rate out in liquid form from the produced gas 

8 stream. 

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

10 IN CERTAIN AREAS OF THE OUTER CONTINENTAL

11 SHELF.—Restrictions on joint bidders shall no longer 

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

13 restrictions shall not apply to tracts in other OCS regions 

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

15 tracts’ under final regulations that shall be published by 

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

17 of the enactment of the American Energy Production and 

18 Price Reduction Act. 

19 ‘‘(s) ROYALTY SUSPENSION PROVISIONS.—After the 

20 date of the enactment of the American Energy Production 

21 and Price Reduction Act, price thresholds shall apply to 

22 any royalty suspension volumes granted by the Secretary. 

23 Unless otherwise set by the Secretary by regulation or for 

24 a particular lease sale, the price thresholds shall be $40.50 


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

2 gas (January 1, 2006 dollars). 

3 ‘‘(t) CONSERVATION OF RESOURCES FEES.—Not 

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

5 American Energy Production and Price Reduction Act, 

6 the Secretary by regulation shall establish a conservation 

7 of resources fee for nonproducing leases that will apply 

8 to new and existing leases which shall be set at $3.75 per 

9 acre per year. This fee shall apply from and after October 

10 1, 2008, and shall be treated as offsetting receipts.’’; 

11 (5) by striking subsection (a)(3)(A) and redes12 ignating the subsequent subparagraphs as subpara13 graphs (A) and (B), respectively; 

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

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

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

17 and inserting ‘‘The Secretary’’; and 

18 (7) effective October 1, 2009, in subsection 

19 (g)— 

20 (A) by striking all after ‘‘(g)’’, except para21 graph (3); 

22 (B) by striking the last sentence of para23 graph (3); and 

24 (C) by striking ‘‘(3)’’. 


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1 SEC. 208. DISPOSITION OF RECEIPTS. 

2 Section 9 of the Outer Continental Shelf Lands Act 

3 (43 U.S.C. 1338) is amended— 

4 (1) by designating the existing text as sub5 section (a); 

6 (2) in subsection (a) (as so designated) by in7 serting ‘‘, if not paid as otherwise provided in this 

8 title’’ after ‘‘receipts’’; and 

9 (3) by adding the following: 

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

11 COMPLETELY WITHIN 100 MILES OF THE COASTLINE.— 

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

13 into a separate account in the Treasury the portion 

14 of OCS Receipts for each fiscal year that will be 

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

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

17 ‘‘(A) Beginning October 1, 2009, the Sec18 retary shall share OCS Receipts derived from 

19 the following areas: 

20 ‘‘(i) Lease tracts located on portions 

21 of the Gulf of Mexico OCS Region com22 pletely beyond 4 marine leagues from any 

23 coastline and completely within 100 miles 

24 of any coastline that were available for 

25 leasing under the 2002–2007 5-Year OCS 

26 Oil and Gas Leasing Program. 


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1 ‘‘(ii) Lease tracts in production prior 

2 to October 1, 2008, completely beyond 4 

3 marine leagues from any coastline and 

4 completely within 100 miles of any coast5 line located on portions of the OCS that 

6 were not available for leasing under the 

7 2002–2007 5-Year OCS Oil and Gas Leas8 ing Program. 

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

10 issued prior to October 1, 2008, located in 

11 the Alaska OCS Region completely beyond 

12 4 marine leagues from any coastline and 

13 completely within 100 miles of the coast14 line. 

15 ‘‘(B) The Secretary shall share the fol16 lowing percentages of OCS Receipts from the 

17 leases described in subparagraph (A) derived 

18 during the fiscal year indicated: 

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

20 ‘‘(ii) For fiscal year 2011, 10 percent. 

21 ‘‘(iii) For fiscal year 2012, 14 per22 cent. 

23 ‘‘(iv) For fiscal year 2013, 19 percent. 

24 ‘‘(v) For fiscal year 2014, 23 percent. 

25 ‘‘(vi) For fiscal year 2015, 27 percent. 


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1 ‘‘(vii) For fiscal year 2016, 31 per2 cent. 

3 ‘‘(viii) For fiscal year 2017, 35 per4 cent. 

5 ‘‘(ix) For fiscal year 2018, 39 percent. 

6 ‘‘(x) For fiscal year 2019, 43 percent. 

7 ‘‘(xi) For fiscal year 2020, 47 percent. 

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

9 subsequent fiscal year, 50 percent. 

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

11 not apply to leases that could not have been 

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

13 106(2) of the American Energy Production and 

14 Price Reduction Act. 

15 ‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin16 ning October 1, 2009, the Secretary shall share 50 

17 percent of OCS Receipts derived from all leases lo18 cated completely beyond 4 marine leagues from any 

19 coastline and completely within 100 miles of any 

20 coastline not included within the provisions of para21 graph (2), and 100 percent of the balance of such 

22 OCS Receipts shall be directed toward reducing the 

23 national deficit and if such a deficit does not exist 

24 then the OCS Receipts shall be directed toward re25 ducing the national debt. 


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1 ‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN

2 4 MARINE LEAGUES OF ANY COASTLINE.— 

3 ‘‘(A) AREAS DESCRIBED IN PARAGRAPH

4 (2).—Beginning October 1, 2009, and con5 tinuing through September 30, 2011, the Sec6 retary shall share 25 percent of OCS Receipts 

7 derived from all leases located within 4 marine 

8 leagues from any coastline within areas de9 scribed in paragraph (2). For each fiscal year 

10 after September 30, 2010, the Secretary shall 

11 increase the percent shared in 5 percent incre12 ments each fiscal year until the sharing rate for 

13 all leases located within 4 marine leagues from 

14 any coastline within areas described in para15 graph (2) becomes 75 percent. 

16 ‘‘(B) AREAS NOT DESCRIBED IN PARA17 GRAPH (2).—Beginning October 1, 2009, the 

18 Secretary shall share 75 percent of OCS Re19 ceipts derived from all leases located completely 

20 or partially within 4 marine leagues from any 

21 coastline within areas not described paragraph 

22 (2). 

23 ‘‘(5) ALLOCATIONS.—The Secretary shall allo24 cate the OCS Receipts deposited into the separate 


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1 account established by paragraph (1) that are 

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

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

4 bonus bids from a leased tract, including inter5 est thereon, shall be allocated at the end of 

6 each fiscal year to the Adjacent State. 

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

8 royalties from a leased tract, including interest 

9 thereon, shall be allocated at the end of each 

10 fiscal year to the Adjacent State and any other 

11 producing State or States with a leased tract 

12 within its Adjacent Zone within 100 miles of its 

13 coastline that generated royalties during the fis14 cal year, if the other producing States have a 

15 coastline point within 300 miles of any portion 

16 of the leased tract, in which case the amount al17 located for the leased tract shall be— 

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

19 and 

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

21 State, including the Adjacent State, in22 versely proportional to the distance be23 tween the nearest point on the coastline of 

24 the producing State and the geographic 

25 center of the leased tract. 


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

2 PARTIALLY OR COMPLETELY BEYOND 100 MILES OF THE

3 COASTLINE.— 

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

5 into a separate account in the Treasury the portion 

6 of OCS Receipts for each fiscal year that will be 

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

8 ‘‘(2) PHASED-IN RECEIPTS SHARING.— 

9 ‘‘(A) Beginning October 1, 2009, the Sec10 retary shall share OCS Receipts derived from 

11 the following areas: 

12 ‘‘(i) Lease tracts located on portions 

13 of the Gulf of Mexico OCS Region partially 

14 or completely beyond 100 miles of any 

15 coastline that were available for leasing 

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

17 Gas Leasing Program. 

18 ‘‘(ii) Lease tracts in production prior 

19 to October 1, 2009, partially or completely 

20 beyond 100 miles of any coastline located 

21 on portions of the OCS that were not 

22 available for leasing under the 2002–2007 

23 5-Year OCS Oil and Gas Leasing Pro24 gram. 


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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 partially or com4 pletely beyond 100 miles of the coastline. 

5 ‘‘(B) The Secretary shall share the fol6 lowing percentages of OCS Receipts from the 

7 leases described in subparagraph (A) derived 

8 during the fiscal year indicated: 

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

10 ‘‘(ii) For fiscal year 2011, 10 percent. 

11 ‘‘(iii) For fiscal year 2012, 14 per12 cent. 

13 ‘‘(iv) For fiscal year 2013, 19 percent. 

14 ‘‘(v) For fiscal year 2014, 23 percent. 

15 ‘‘(vi) For fiscal year 2015, 27 percent. 

16 ‘‘(vii) For fiscal year 2016, 31 per17 cent. 

18 ‘‘(viii) For fiscal year 2017, 35 per19 cent. 

20 ‘‘(ix) For fiscal year 2018, 39 percent. 

21 ‘‘(x) For fiscal year 2019, 43 percent. 

22 ‘‘(xi) For fiscal year 2020, 47 percent. 

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

24 subsequent fiscal year, 50 percent. 


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

2 not apply to leases that could not have been 

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

4 106(2) of the American Energy Production and 

5 Price Reduction Act. 

6 ‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin7 ning October 1, 2009, the Secretary shall share 50 

8 percent of OCS Receipts derived on and after Octo9 ber 1, 2009, from all leases located partially or com10 pletely beyond 100 miles of any coastline not in11 cluded within the provisions of paragraph (2), except 

12 that the Secretary shall only share 25 percent of 

13 such OCS Receipts derived from all such leases 

14 within a State’s Adjacent Zone if no leasing is al15 lowed within any portion of that State’s Adjacent 

16 Zone located completely within 100 miles of any 

17 coastline. 

18 ‘‘(4) ALLOCATIONS.—The Secretary shall allo19 cate the OCS Receipts deposited into the separate 

20 account established by paragraph (1) that are 

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

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

23 bonus bids from a leased tract, including inter24 est thereon, shall be allocated at the end of 

25 each fiscal year to the Adjacent State. 


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

2 royalties from a leased tract, including interest 

3 thereon, shall be allocated at the end of each 

4 fiscal year to the Adjacent State and any other 

5 producing State or States with a leased tract 

6 within its Adjacent Zone partially or completely 

7 beyond 100 miles of its coastline that generated 

8 royalties during the fiscal year, if the other pro9 ducing State or States have a coastline point 

10 within 300 miles of any portion of the leased 

11 tract, in which case the amount allocated for 

12 the leased tract shall be— 

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

14 and 

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

16 State, including the Adjacent State, in17 versely proportional to the distance be18 tween the nearest point on the coastline of 

19 the producing State and the geographic 

20 center of the leased tract. 

21 ‘‘(d) TRANSMISSION OF ALLOCATIONS.— 

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

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

24 transmit— 


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

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

3 (b)(5)(B), (c)(4)(A), and (c)(4)(B) for the im4 mediate prior fiscal year; 

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

6 municipal political subdivision of such State a 

7 total of 40 percent of such State’s allocations 

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

9 (c)(4)(A), and (c)(4)(B), together with all ac10 crued interest thereon; and 

11 ‘‘(C) the remaining allocations under sub12 sections (b)(5) and (c)(4), together with all ac13 crued interest thereon. 

14 ‘‘(2) ALLOCATIONS TO COASTAL COUNTY15 EQUIVALENT POLITICAL SUBDIVISIONS.—The Sec16 retary shall make an initial allocation of the OCS 

17 Receipts to be shared under paragraph (1)(B) as fol18 lows: 

19 ‘‘(A) 25 percent shall be allocated to coast20 al county-equivalent political subdivisions that 

21 are completely more than 25 miles landward of 

22 the coastline and at least a part of which lies 

23 not more than 75 miles landward from the 

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1 al county-equivalent political subdivisions based 

2 on population. 

3 ‘‘(B) 75 percent shall be allocated to coast4 al county-equivalent political subdivisions that 

5 are completely or partially less than 25 miles 

6 landward of the coastline, with the allocation 

7 among such coastal county-equivalent political 

8 subdivisions to be further allocated as follows: 

9 ‘‘(i) 25 percent shall be allocated 

10 based on the ratio of such coastal county11 equivalent political subdivision’s population 

12 to the coastal population of all coastal 

13 county-equivalent political subdivisions in 

14 the State. 

15 ‘‘(ii) 25 percent shall be allocated 

16 based on the ratio of such coastal county17 equivalent political subdivision’s coastline 

18 miles to the coastline miles of all coastal 

19 county-equivalent political subdivisions in 

20 the State as calculated by the Secretary. 

21 In such calculations, coastal county-equiva22 lent political subdivisions without a coast23 line shall be considered to have 50 percent 

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1 al county-equivalent political subdivisions 

2 that do have coastlines. 

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

4 all coastal county-equivalent political sub5 divisions having a coastline point within 

6 300 miles of the leased tract for which 

7 OCS Receipts are being shared based on a 

8 formula that allocates the funds based on 

9 such coastal county-equivalent political 

10 subdivision’s relative distance from the 

11 leased tract. 

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

13 all coastal county-equivalent political sub14 divisions having a coastline point within 

15 300 miles of the leased tract for which 

16 OCS Receipts are being shared based on 

17 the relative level of outer Continental Shelf 

18 oil and gas activities in a coastal political 

19 subdivision compared to the level of outer 

20 Continental Shelf activities in all coastal 

21 political subdivisions in the State. The Sec22 retary shall define the term ‘outer Conti23 nental Shelf oil and gas activities’ for pur24 poses of this subparagraph to include, but 

25 not be limited to, construction of vessels, 


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1 drillships, and platforms involved in explo2 ration, production, and development on the 

3 outer Continental Shelf; support and sup4 ply bases, ports, and related activities; of5 fices of geologists, geophysicists, engineers, 

6 and other professionals involved in support 

7 of exploration, production, and develop8 ment of oil and gas on the outer Conti9 nental Shelf; pipelines and other means of 

10 transporting oil and gas production from 

11 the outer Continental Shelf; and processing 

12 and refining of oil and gas production from 

13 the outer Continental Shelf. For purposes 

14 of this subparagraph, if a coastal county15 equivalent political subdivision does not 

16 have a coastline, its coastal point shall be 

17 the point on the coastline closest to it. 

18 ‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO19 LITICAL SUBDIVISIONS.—The initial allocation to 

20 each coastal county-equivalent political subdivision 

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

22 coastal county-equivalent political subdivision and 

23 any coastal municipal political subdivisions located 

24 partially or wholly within the boundaries of the 


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1 coastal county-equivalent political subdivision as fol2 lows: 

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

4 coastal county-equivalent political subdivision. 

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

6 capita basis to the municipal political subdivi7 sions and the county-equivalent political sub8 division, with the allocation to the latter based 

9 upon its population not included within the 

10 boundaries of a municipal political subdivision. 

11 ‘‘(e) INVESTMENT OF DEPOSITS.—Amounts depos12 ited under this section shall be invested by the Secretary 

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

14 credit of the United States having maturities suitable to 

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

16 yielding the highest reasonably available interest rates as 

17 determined by the Secretary of the Treasury. 

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

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

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

21 institutions of higher learning and otherwise support 

22 public education, including career technical edu23 cation. 

24 ‘‘(2) To make transportation infrastructure im25 provements. 


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1 ‘‘(3) To reduce taxes. 

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

3 ‘‘(A) coastal or environmental restoration; 

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

5 enhancement; 

6 ‘‘(C) waterways construction and mainte7 nance; 

8 ‘‘(D) levee construction and maintenance 

9 and shore protection; and 

10 ‘‘(E) marine and oceanographic education 

11 and research. 

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

13 ‘‘(A) infrastructure associated with energy 

14 production activities conducted on the outer 

15 Continental Shelf; 

16 ‘‘(B) energy demonstration projects; 

17 ‘‘(C) supporting infrastructure for shore18 based energy projects; 

19 ‘‘(D) State geologic programs, including 

20 geologic mapping and data storage programs, 

21 and State geophysical data acquisition; 

22 ‘‘(E) State seismic monitoring programs, 

23 including operation of monitoring stations; 

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

25 through enhanced recovery techniques; 


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1 ‘‘(G) alternative energy development, in2 cluding biofuels, coal-to-liquids, oil shale, tar 

3 sands, geothermal, geopressure, wind, waves, 

4 currents, hydro, and other renewable energy; 

5 ‘‘(H) energy efficiency and conservation 

6 programs; and 

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

8 facilities that produce liquid fuels from hydro9 carbons and other biological matter. 

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

11 ‘‘(A) historic preservation programs and 

12 projects; 

13 ‘‘(B) natural disaster planning and re14 sponse; and 

15 ‘‘(C) hurricane and natural disaster insur16 ance programs. 

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

18 State law. 

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

20 funds under this section shall be required to account to 

21 the Federal Government for the expenditure of such 

22 funds, except as otherwise may be required by law. How23 ever, States may enact legislation providing for accounting 

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1 sions may be used as matching funds for other Federal 

2 programs. 

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

4 future Federal statute that has the effect, as determined 

5 by the Secretary, of restricting any Federal agency from 

6 spending appropriated funds, or otherwise preventing it 

7 from fulfilling its pre-existing responsibilities as of the 

8 date of enactment of the statute, unless such responsibil9 ities have been reassigned to another Federal agency by 

10 the statute with no prevention of performance, to issue 

11 any permit or other approval impacting on the OCS oil 

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

13 or to implement any provision of this Act shall automati14 cally prohibit any sharing of OCS Receipts under this sec15 tion directly with the States, and their coastal political 

16 subdivisions, for the duration of the restriction. The Sec17 retary shall make the determination of the existence of 

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

19 outer Continental Shelf lessee or producing State. 

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

21 ‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL

22 SUBDIVISION.—The term ‘coastal county-equivalent 

23 political subdivision’ means a political jurisdiction 

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1 pendent municipality not part of a county, parish, or 

2 borough in Alaska, or other equivalent subdivision of 

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

4 ‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI5 SION.—The term ‘coastal municipal political subdivi6 sion’ means a municipality located within and part 

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

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

9 coastal municipal political subdivision lies within the 

10 coastal zone. 

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

12 population’ means the population of all coastal coun13 ty-equivalent political subdivisions, as determined by 

14 the most recent official data of the Bureau of the 

15 Census. 

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

17 means that portion of a coastal State, including the 

18 entire territory of any coastal county-equivalent po19 litical subdivision at least a part of which lies within 

20 75 miles landward from the coastline, or a greater 

21 distance as determined by State law enacted to im22 plement this section. 

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

24 means all funds received by the Secretary to issue 

25 an outer Continental Shelf minerals lease. 


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

2 all funds received by the Secretary from production 

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

4 in-kind, from an outer Continental Shelf minerals 

5 lease. 

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

7 State’ means an Adjacent State having an Adjacent 

8 Zone containing leased tracts from which OCS re9 ceipts were derived. 

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

11 means bonus bids, royalties, and conservation of re12 sources fees.’’. 

13 SEC. 209. RESERVATION OF LANDS AND RIGHTS. 

14 Section 12 of the Outer Continental Shelf Lands Act 

15 (43 U.S.C. 1341) is amended— 

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

17 following: ‘‘The President may partially or com18 pletely revise or revoke any prior withdrawal made 

19 by the President under the authority of this section. 

20 The President may not revise or revoke a withdrawal 

21 that is extended by a State under subsection (h), nor 

22 may the President withdraw from leasing any area 

23 for which a State failed to prohibit, or petition to 

24 prohibit, leasing under subsection (g). Further, in 

25 the area of the outer Continental Shelf more than 


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1 100 miles from any coastline, not more than 25 per2 cent of the acreage of any OCS Planning Area may 

3 be withdrawn from leasing under this section at any 

4 point in time. A withdrawal by the President may be 

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

6 potential uses of the outer Continental Shelf, to the 

7 maximum extent possible, the President shall accom8 modate competing interests and potential uses.’’; 

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

10 ‘‘(g) AVAILABILITY FOR LEASING WITHIN CERTAIN

11 AREAS OF THE OUTER CONTINENTAL SHELF.— 

12 ‘‘(1) PROHIBITION AGAINST LEASING.— 

13 ‘‘(A) UNAVAILABLE FOR LEASING WITH14 OUT STATE REQUEST.—Except as otherwise 

15 provided in this subsection, from and after en16 actment of the American Energy Production 

17 and Price Reduction Act, the Secretary shall 

18 not offer for leasing for oil and gas, or natural 

19 gas, any area within 50 miles of the coastline 

20 that was withdrawn from disposition by leasing 

21 in the Atlantic OCS Region or the Pacific OCS 

22 Region, or the Gulf of Mexico OCS Region 

23 Eastern Planning Area, as depicted on the 

24 maps referred to in this subparagraph, under 

25 the ‘Memorandum on Withdrawal of Certain 


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1 Areas of the United States Outer Continental 

2 Shelf from Leasing Disposition’, 34 Weekly 

3 Comp. Pres. Doc. 1111, dated June 12, 1998, 

4 or any area within 50 miles of the coastline not 

5 withdrawn under that Memorandum that is in6 cluded within the Gulf of Mexico OCS Region 

7 Eastern Planning Area as indicated on the map 

8 entitled ‘Gulf of Mexico OCS Region State Ad9 jacent Zones and OCS Planning Areas’ or the 

10 Florida Straits Planning Area as indicated on 

11 the map entitled ‘Atlantic OCS Region State 

12 Adjacent Zones and OCS Planning Areas’, both 

13 of which are dated September 2005 and on file 

14 in the Office of the Director, Minerals Manage15 ment Service. 

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

17 FROM THE COASTLINE.—Unless an Adjacent 

18 State petitions under subsection (h) within one 

19 year after the date of the enactment of the 

20 American Energy Production and Price Reduc21 tion Act for natural gas leasing or by June 30, 

22 2010, for oil and gas leasing, the Secretary 

23 shall offer for leasing any area more than 50 

24 miles but less than 100 miles from the coastline 

25 that was withdrawn from disposition by leasing 


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1 in the Atlantic OCS Region, the Pacific OCS 

2 Region, or the Gulf of Mexico OCS Region 

3 Eastern Planning Area, as depicted on the 

4 maps referred to in this subparagraph, under 

5 the ‘Memorandum on Withdrawal of Certain 

6 Areas of the United States Outer Continental 

7 Shelf from Leasing Disposition’, 34 Weekly 

8 Comp. Pres. Doc. 1111, dated June 12, 1998, 

9 or any area more than 50 miles but less than 

10 100 miles of the coastline not withdrawn under 

11 that Memorandum that is included within the 

12 Gulf of Mexico OCS Region Eastern Planning 

13 Area as indicated on the map entitled ‘Gulf of 

14 Mexico OCS Region State Adjacent Zones and 

15 OCS Planning Areas’ or within the Florida 

16 Straits Planning Area as indicated on the map 

17 entitled ‘Atlantic OCS Region State Adjacent 

18 Zones and OCS Planning Areas’, both of which 

19 are dated September 2005 and on file in the 

20 Office of the Director, Minerals Management 

21 Service. 

22 ‘‘(2) PETITION FOR LEASING.— 

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

24 State, upon concurrence of its legislature, may 

25 submit to the Secretary a petition requesting 


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1 that the Secretary make available any area that 

2 is within the State’s Adjacent Zone, included 

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

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

5 the coastline of a Neighboring State for the 

6 conduct of offshore leasing, pre-leasing, and re7 lated activities with respect to natural gas leas8 ing; or (ii) is greater than 50 miles from any 

9 point on the coastline of a Neighboring State 

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

11 and related activities with respect to oil and gas 

12 leasing. The Adjacent State may also petition 

13 for leasing any other area within its Adjacent 

14 Zone if leasing is allowed in the similar area of 

15 the Adjacent Zone of the applicable Neigh16 boring State, or if not allowed, if the Neigh17 boring State, acting through its Governor, ex18 presses its concurrence with the petition. The 

19 Secretary shall only consider such a petition 

20 upon making a finding that leasing is allowed 

21 in the similar area of the Adjacent Zone of the 

22 applicable Neighboring State or upon receipt of 

23 the concurrence of the Neighboring State. The 

24 date of receipt by the Secretary of such concur25 rence by the Neighboring State shall constitute 


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1 the date of receipt of the petition for that area 

2 for which the concurrence applies. 

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

4 petition, a State with an Adjacent Zone that 

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

7 within 25 miles of the coastline by— 

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

9 number of production platforms; 

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

11 average distance of production platforms 

12 from the coastline; 

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

15 than 10 miles from the coastline; 

16 ‘‘(iv) limiting some tracts to being 

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

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

21 as the Secretary does not determine that 

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


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

2 than 90 days after receipt of a petition under 

3 subparagraph (A), the Secretary shall approve 

4 the petition, unless the Secretary determines 

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

7 the State’s Adjacent Zone. Prior to approving 

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

11 area included within the scope of the petition. 

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

13 fails to approve or deny a petition in accordance 

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

16 the petition. 

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

19 within 180 days of the approval of a petition 

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

22 the Secretary shall amend the current 5-Year 

23 Outer Continental Shelf Oil and Gas Leasing 

24 Program to include a lease sale or sales for at 

25 least 75 percent of the associated areas, unless 


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1 there are, from the date of approval, expiration 

2 of such time limits, as applicable, fewer than 12 

3 months remaining in the current 5-Year Leas4 ing Program in which case the Secretary shall 

5 include the associated areas within lease sales 

6 under the next 5-Year Leasing Program. For 

7 purposes of amending the 5-Year Program in 

8 accordance with this section, further consulta9 tions with States shall not be required. For 

10 purposes of this section, an environmental as11 sessment performed under the provisions of the 

12 National Environmental Policy Act of 1969 to 

13 assess the effects of approving the petition shall 

14 be sufficient to amend the 5-Year Leasing Pro15 gram. 

16 ‘‘(h) OPTION TO EXTEND WITHDRAWAL FROM

17 LEASING WITHIN CERTAIN AREAS OF THE OUTER CON18 TINENTAL SHELF.—A State, through its Governor and 

19 upon the concurrence of its legislature, may extend for a 

20 period of time of up to 5 years for each extension the with21 drawal from leasing for all or part of any area within the 

22 State’s Adjacent Zone located more than 50 miles, but less 

23 than 100 miles, from the coastline that is subject to sub24 section (g)(1)(B). A State may extend multiple times for 

25 any particular area but not more than once per calendar 


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1 year for any particular area. A State must prepare sepa2 rate extensions, with separate votes by its legislature, for 

3 oil and gas leasing and for natural gas leasing. An exten4 sion by a State may affect some areas to be withdrawn 

5 from all leasing and some areas to be withdrawn only from 

6 one type of leasing. 

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

8 Adjacent State of any constitutional provision, or enact9 ment of any State statute, that has the effect, as deter10 mined by the Secretary, of restricting either the Governor 

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

12 related to subsection (g) or (h), or both, shall automati13 cally (1) prohibit any sharing of OCS Receipts under this 

14 Act with the Adjacent State, and its coastal political sub15 divisions, and (2) prohibit the Adjacent State from exer16 cising any authority under subsection (h), for the duration 

17 of the restriction. The Secretary shall make the determina18 tion of the existence of such restricting constitutional pro19 vision or State statute within 30 days of a petition by any 

20 outer Continental Shelf lessee or coastal State. 

21 ‘‘(j) PROHIBITION ON LEASING EAST OF THE MILI22 TARY MISSION LINE.— 

23 ‘‘(1) Notwithstanding any other provision of 

24 law, from and after the enactment of the American 

25 Energy Production and Price Reduction Act, prior 


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1 to January 1, 2022, no area of the outer Conti2 nental Shelf located in the Gulf of Mexico east of the 

3 military mission line may be offered for leasing for 

4 oil and gas or natural gas unless a waiver is issued 

5 by the Secretary of Defense. If such a waiver is 

6 granted, 62.5 percent of the OCS Receipts from a 

7 lease within such area issued because of such waiver 

8 shall be paid annually to the National Guards of all 

9 States having a point within 1,000 miles of such a 

10 lease, allocated among the States on a per capita 

11 basis using the entire population of such States. 

12 ‘‘(2) In this subsection, the term ‘military mis13 sion line’ means a line located at 86 degrees, 41 

14 minutes West Longitude, and extending south from 

15 the coast of Florida to the outer boundary of United 

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

17 SEC. 210. OUTER CONTINENTAL SHELF LEASING PROGRAM. 

18 Section 18 of the Outer Continental Shelf Lands Act 

19 (43 U.S.C. 1344) is amended— 

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

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

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

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

24 or natural gas leasing at least 75 percent of the 

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1 ning Area. Available unleased acreage is that portion 

2 of the outer Continental Shelf that is not under 

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

4 not otherwise been made unavailable for leasing by 

5 law.’’; 

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

7 precedes paragraph (3) and inserting the following: 

8 ‘‘(c)(1) During the preparation of any proposed leas9 ing program under this section, the Secretary shall con10 sider and analyze leasing throughout the entire outer Con11 tinental Shelf without regard to any other law affecting 

12 such leasing. During this preparation the Secretary shall 

13 invite and consider suggestions from any interested Fed14 eral agency, including the Attorney General, in consulta15 tion with the Federal Trade Commission, and from the 

16 Governor of any coastal State. The Secretary may also in17 vite or consider any suggestions from the executive of any 

18 local government in a coastal State that have been pre19 viously submitted to the Governor of such State, and from 

20 any other person. Further, the Secretary shall consult 

21 with the Secretary of Defense regarding military oper22 ational needs in the outer Continental Shelf. The Sec23 retary shall work with the Secretary of Defense to resolve 

24 any conflicts that might arise regarding offering any area 

25 of the outer Continental Shelf for oil and gas or natural 


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1 gas leasing. If the Secretaries are not able to resolve all 

2 such conflicts, any unresolved issues shall be elevated to 

3 the President for resolution. 

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

5 paragraph (1), including the consideration of the sugges6 tions received from any interested Federal agency, the 

7 Federal Trade Commission, the Governor of any coastal 

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

9 other person, the Secretary shall publish in the Federal 

10 Register a proposed leasing program accompanied by a 

11 draft environmental impact statement prepared pursuant 

12 to the National Environmental Policy Act of 1969. After 

13 the publishing of the proposed leasing program and during 

14 the comment period provided for on the draft environ15 mental impact statement, the Secretary shall submit a 

16 copy of the proposed program to the Governor of each af17 fected State for review and comment. The Governor may 

18 solicit comments from those executives of local govern19 ments in the Governor’s State that the Governor, in the 

20 discretion of the Governor, determines will be affected by 

21 the proposed program. If any comment by such Governor 

22 is received by the Secretary at least 15 days prior to sub23 mission to the Congress pursuant to paragraph (3) and 

24 includes a request for any modification of such proposed 

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


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

2 request in such modified form as the Secretary considers 

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

4 All such correspondence between the Secretary and the 

5 Governor of any affected State, together with any addi6 tional information and data relating thereto, shall accom7 pany such proposed program when it is submitted to the 

8 Congress.’’; and 

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

10 ‘‘(i) PROJECTION OF STATE ADJACENT ZONE RE11 SOURCES AND STATE AND LOCAL GOVERNMENT SHARES

12 OF OCS RECEIPTS.—Concurrent with the publication of 

13 the scoping notice at the beginning of the development of 

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

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

16 shall— 

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

18 estimate of proven and potential oil and gas re19 sources located within the State’s Adjacent Zone; 

20 and 

21 ‘‘(2) provide to each Adjacent State, and coast22 al political subdivisions thereof, a best-efforts projec23 tion of the OCS Receipts that the Secretary expects 

24 will be shared with each Adjacent State, and its 

25 coastal political subdivisions, using the assumption 


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1 that the unleased tracts within the State’s Adjacent 

2 Zone are fully made available for leasing, including 

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

4 Secretary shall include a macroeconomic estimate of 

5 the impact of such leasing on the national economy 

6 and each State’s economy, including investment, 

7 jobs, revenues, personal income, and other cat8 egories.’’. 

9 SEC. 211. COORDINATION WITH ADJACENT STATES. 

10 Section 19 of the Outer Continental Shelf Lands Act 

11 (43 U.S.C. 1345) is amended— 

12 (1) in subsection (a) in the first sentence by in13 serting ‘‘, for any tract located within the Adjacent 

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

15 (2) by adding the following: 

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

17 approve, without the concurrence of the Adjacent State, 

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

19 both) pipeline within the part of the Adjacent State’s Ad20 jacent Zone that is withdrawn from oil and gas or natural 

21 gas leasing, except that such a pipeline may be approved, 

22 without such Adjacent State’s concurrence, to pass 

23 through such Adjacent Zone if at least 50 percent of the 

24 production projected to be carried by the pipeline within 


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1 its first 10 years of operation is from areas of the Adja2 cent State’s Adjacent Zone. 

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

4 its Adjacent Zone or its State waters of a natural gas pipe5 line that will transport natural gas produced from the 

6 outer Continental Shelf. However, an Adjacent State may 

7 prevent a proposed natural gas pipeline landing location 

8 if it proposes two alternate landing locations in the Adja9 cent State, acceptable to the Adjacent State, located with10 in 50 miles on either side of the proposed landing loca11 tion.’’. 

12 SEC. 212. ENVIRONMENTAL STUDIES. 

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

14 Act (43 U.S.C. 1346) is amended— 

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

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

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

18 actions under this Act, the following shall apply re19 garding the application of the National Environ20 mental Policy Act of 1969: 

21 ‘‘(A) Granting or directing lease suspen22 sions and the conduct of all preliminary activi23 ties on outer Continental Shelf tracts, including 

24 seismic activities, are categorically excluded 

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1 mental assessment or an environmental impact 

2 statement, and the Secretary shall not be re3 quired to analyze whether any exceptions to a 

4 categorical exclusion apply for activities con5 ducted under the authority of this Act. 

6 ‘‘(B) The environmental impact statement 

7 developed in support of each 5-Year Oil and 

8 Gas Leasing Program provides the environ9 mental analysis for all lease sales to be con10 ducted under the program and such sales shall 

11 not be subject to further environmental anal12 ysis. 

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

14 to any requirement to prepare an environmental 

15 impact statement, and the Secretary may find 

16 that exploration plans are eligible for categor17 ical exclusion due to the impacts already being 

18 considered within an environmental impact 

19 statement or due to mitigation measures in20 cluded within the plan. 

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

22 after the preparation of the first development 

23 and production plan environmental impact 

24 statement for a leased tract within the Area, fu25 ture development and production plans for 


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1 leased tracts within the Area shall only require 

2 the preparation of an environmental assessment 

3 unless the most recent development and produc4 tion plan environmental impact statement with5 in the Area was finalized more than 10 years 

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

7 which case an environmental impact statement 

8 shall be required.’’. 

9 SEC. 213. OUTER CONTINENTAL SHELF INCOMPATIBLE 

10 USE. 

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

12 construction or operation (or both) of any facility, or des13 ignate or maintain a restricted transportation corridor or 

14 operating area on the Federal outer Continental Shelf or 

15 in State waters, that will be incompatible with, as deter16 mined by the Secretary of the Interior, oil and gas or nat17 ural gas leasing and substantially full exploration and pro18 duction of tracts that are geologically prospective for oil 

19 or natural gas (or both). 

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

21 any facility, transportation corridor, or operating area the 

22 construction, operation, designation, or maintenance of 

23 which is or will be— 


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

2 Shelf that is unavailable for oil and gas or natural 

3 gas leasing by operation of law; 

4 (2) used for a military readiness activity (as de5 fined in section 315(f) of Public Law 107–314; 16 

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

7 (3) required in the national interest, as deter8 mined by the President. 

9 SEC. 214. REPURCHASE OF CERTAIN LEASES. 

10 (a) AUTHORITY TO REPURCHASE AND CANCEL CER11 TAIN LEASES.—The Secretary of the Interior shall repur12 chase and cancel any Federal oil and gas, geothermal, 

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

14 onshore or offshore, but not including any outer Conti15 nental Shelf oil and gas leases that were subject to litiga16 tion in the Court of Federal Claims on January 1, 2006, 

17 if the Secretary finds that such lease qualifies for repur18 chase and cancellation under the regulations authorized 

19 by this section. 

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

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

22 publish a final regulation stating the conditions under 

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

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1 lowed regarding repurchase and cancellation. Such regula2 tion shall include, but not be limited to, the following: 

3 (1) The Secretary shall repurchase and cancel 

4 a lease after written request by the lessee upon a 

5 finding by the Secretary that— 

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

7 permit or other approval complied with applica8 ble law, except the Coastal Zone Management 

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

10 terms of the lease and such permit or other ap11 proval was denied; 

12 (B) a Federal agency failed to act on a re13 quest by the lessee for a required permit, other 

14 approval, or administrative appeal within a reg15 ulatory or statutory timeframe associated with 

16 the requested action, whether advisory or man17 datory, or if none, within 180 days; or 

18 (C) a Federal agency attached a condition 

19 of approval, without agreement by the lessee, to 

20 a required permit or other approval if such con21 dition of approval was not mandated by Federal 

22 statute or regulation in effect on the date of 

23 lease issuance, or was not specifically allowed 

24 under the terms of the lease. 


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1 (2) A lessee shall not be required to exhaust ad2 ministrative remedies regarding a permit request, 

3 administrative appeal, or other required request for 

4 approval for the purposes of this section. 

5 (3) The Secretary shall make a final agency de6 cision on a request by a lessee under this section 

7 within 180 days of request. 

8 (4) Compensation to a lessee to repurchase and 

9 cancel a lease under this section shall be the amount 

10 that a lessee would receive in a restitution case for 

11 a material breach of contract. 

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

13 check or electronic transfer from the Department of 

14 the Treasury from funds deposited into miscella15 neous receipts under the authority of the same Act 

16 that authorized the issuance of the lease being re17 purchased. 

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

19 agency decision on a request by a lessee under this 

20 section within 180 days of request shall result in a 

21 10 percent increase in the compensation due to the 

22 lessee if the lease is ultimately repurchased. 

23 (c) NO PREJUDICE.—This section shall not be inter24 preted to prejudice any other rights that the lessee would 

25 have in the absence of this section. 


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1 SEC. 215. OFFSITE ENVIRONMENTAL MITIGATION. 

2 Notwithstanding any other provision of law, any per3 son conducting activities under the Mineral Leasing Act 

4 (30 U.S.C. 181 et seq.), the Geothermal Steam Act (30 

5 U.S.C. 1001 et seq.), the Mineral Leasing Act for Ac6 quired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 

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

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

9 601 et seq.), or the Outer Continental Shelf Lands Act 

10 (43 U.S.C. 1331 et seq.), may in satisfying any mitigation 

11 requirements associated with such activities propose miti12 gation measures on a site away from the area impacted 

13 and the Secretary of the Interior shall accept these pro14 posed measures if the Secretary finds that they generally 

15 achieve the purposes for which mitigation measures apper16 tained. 

17 SEC. 216. OCS REGIONAL HEADQUARTERS. 

18 Not later than July 1, 2010, the Secretary of the In19 terior shall establish the headquarters for the Atlantic 

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

21 Region, and the headquarters for the Pacific OCS Region 

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

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

24 bordering the Pacific OCS Region, respectively, from 

25 among the States bordering those Regions, that petitions 

26 by no later than January 1, 2010, for leasing, for oil and 


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1 gas or natural gas, covering at least 40 percent of the area 

2 of its Adjacent Zone within 100 miles of the coastline. 

3 Such Atlantic and Pacific OCS Regions headquarters shall 

4 be located within 25 miles of the coastline and each MMS 

5 OCS regional headquarters shall be the permanent duty 

6 station for all Minerals Management Service personnel 

7 that on a daily basis spend on average 60 percent or more 

8 of their time in performance of duties in support of the 

9 activities of the respective Region, except that the Min10 erals Management Service may house regional inspection 

11 staff in other locations. Each OCS Region shall each be 

12 led by a Regional Director who shall be an employee with13 in the Senior Executive Service. 

14 SEC. 217. LEASES FOR AREAS LOCATED WITHIN 100 MILES 

15 OF CALIFORNIA OR FLORIDA. 

16 (a) AUTHORIZATION TO CANCEL AND EXCHANGE

17 CERTAIN EXISTING OIL AND GAS LEASES; PROHIBITION

18 ON SUBMITTAL OF EXPLORATION PLANS FOR CERTAIN

19 LEASES PRIOR TO JUNE 30, 2012.— 

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

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

22 and gas lease for an area located completely within 

23 100 miles of the coastline within the California or 

24 Florida Adjacent Zones shall have the option, with25 out compensation, of exchanging such lease for a 


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1 new oil and gas lease having a primary term of 5 

2 years. For the area subject to the new lease, the les3 see may select any unleased tract on the outer Con4 tinental Shelf that is in an area available for leasing. 

5 Further, with the permission of the relevant Gov6 ernor, such a lessee may convert its existing oil and 

7 gas lease into a natural gas lease having a primary 

8 term of 5 years and covering the same area as the 

9 existing lease or another area within the same 

10 State’s Adjacent Zone within 100 miles of the coast11 line. 

12 (2) ADMINISTRATIVE PROCESS.—The Secretary 

13 of the Interior shall establish a reasonable adminis14 trative process to implement paragraph (1). Ex15 changes and conversions under subsection (a), in16 cluding the issuance of new leases, shall not be con17 sidered to be major Federal actions for purposes of 

18 the National Environmental Policy Act of 1969 (42 

19 U.S.C. 4321 et seq.). Further, such actions con20 ducted in accordance with this section are deemed to 

21 be in compliance all provisions of the Outer Conti22 nental Shelf Lands Act (43 U.S.C. 1331 et seq.). 

23 (3) OPERATING RESTRICTIONS.—A new lease 

24 issued in exchange for an existing lease under this 

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1 erating stipulations on the OCS tract covered by the 

2 new lease as may be applicable upon issuance. 

3 (4) PRIORITY.—The Secretary shall give pri4 ority in the lease exchange process based on the 

5 amount of the original bonus bid paid for the 

6 issuance of each lease to be exchanged. The Sec7 retary shall allow leases covering partial tracts to be 

8 exchanged for leases covering full tracts conditioned 

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

10 basis as determined by the average per acre of the 

11 original bonus bid per acre for the partial tract 

12 being exchanged. 

13 (5) EXPLORATION PLANS.—Any exploration 

14 plan submitted to the Secretary of the Interior after 

15 the date of the enactment of this Act and before 

16 July 1, 2012, for an oil and gas lease for an area 

17 wholly within 100 miles of the coastline within the 

18 California Adjacent Zone or Florida Adjacent Zone 

19 shall not be treated as received by the Secretary 

20 until the earlier of July 1, 2012, or the date on 

21 which a petition by the Adjacent State for oil and 

22 gas leasing covering the area within which is located 

23 the area subject to the oil and gas lease was ap24 proved. 


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1 (b) FURTHER LEASE CANCELLATION AND EX2 CHANGE PROVISIONS.— 

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

4 lease exchange process under this section, the Sec5 retary shall cancel a lease that is exchanged under 

6 this section. 

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

8 an interest in a lease must consent to cancellation 

9 of their leasehold interests in order for the lease to 

10 be cancelled and exchanged under this section. 

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

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

13 must waive any rights to bring any litigation against 

14 the United States related to the transaction. 

15 (4) PLUGGING AND ABANDONMENT.—The plug16 ging and abandonment requirements for any wells 

17 located on any lease to be cancelled and exchanged 

18 under this section must be complied with by the les19 sees prior to the cancellation and exchange. 

20 (c) AREA PARTIALLY WITHIN 100 MILES OF FLOR21 IDA.—An existing oil and gas lease for an area located 

22 partially within 100 miles of the coastline within the Flor23 ida Adjacent Zone may only be developed and produced 

24 using wells drilled from well-head locations at least 100 

25 miles from the coastline to any bottom-hole location on 


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1 the area of the lease. This subsection shall not apply if 

2 Florida has petitioned for leasing closer to the coastline 

3 than 100 miles. 

4 (d) EXISTING OIL AND GAS LEASE DEFINED.—In 

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

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

7 of this Act. 

8 SEC. 218. COASTAL IMPACT ASSISTANCE. 

9 Section 31 of the Outer Continental Shelf Lands Act 

10 (43 U.S.C. 1356a) is repealed. 

11 SEC. 219. REPEAL OF THE GULF OF MEXICO ENERGY SECU12 RITY ACT OF 2006. 

13 The Gulf of Mexico Energy Security Act of 2006 is 

14 repealed effective October 1, 2008. 

15 Subtitle B—ANWR 

16 SEC. 231. SHORT TITLE. 

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

18 Independence and Price Reduction Act’’. 

19 SEC. 232. DEFINITIONS. 

20 In this subtitle: 

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

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

23 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. 233. 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. 234. 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. 235. 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 134 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. 236. 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 133(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. 237. 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 133, 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 systems; the protection 

13 of natural surface drainage patterns, wetlands, and 

14 riparian 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. 238. 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 90-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 90 

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 Court of Appeals for the Dis13 trict 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. 239. 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) the balance shall be deposited in the Fed16 eral Treasury to pay down the Federal deficit, and 

17 if no deficit exists than to pay down the national 

18 debt. 

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

20 of Alaska under this section shall be made semiannually. 

21 SEC. 240. 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 133(g) provisions granting 

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

22 of this section. 

23 SEC. 241. 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. 242. 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 TITLE III—NUCLEAR POWER 

7 SEC. 301. WASTE CONFIDENCE. 

8 The Nuclear Regulatory Commission may not deny 

9 an application for a license, permit, or other authorization 

10 under the Atomic Energy Act of 1954 on the grounds that 

11 sufficient capacity does not exist, or will not become avail12 able on a timely basis, for disposal of spent nuclear fuel 

13 or high-level radioactive waste from the facility for which 

14 the license, permit, or other authorization is sought. 

15 SEC. 302. ASME NUCLEAR CERTIFICATION CREDIT. 

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

18 1986 (relating to business related credits) is amended by 

19 adding at the end the following new section: 

20 ‘‘SEC. 45R. ASME NUCLEAR CERTIFICATION CREDIT. 

21 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

22 ASME Nuclear Certification credit determined under this 

23 section for any taxable year is an amount equal to 15 per24 cent of the qualified nuclear expenditures paid or incurred 

25 by the taxpayer. 


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1 ‘‘(b) QUALIFIED NUCLEAR EXPENDITURES.—For 

2 purposes of this section, the term ‘qualified nuclear ex3 penditures’ means any expenditure related to— 

4 ‘‘(1) obtaining a certification under the Amer5 ican Society of Mechanical Engineers Nuclear Com6 ponent Certification program, or 

7 ‘‘(2) increasing the taxpayer’s capacity to con8 struct, fabricate, assemble, or install components— 

9 ‘‘(A) for any facility which uses nuclear en10 ergy to produce electricity, and 

11 ‘‘(B) with respect to the construction, fab12 rication, assembly, or installation of which the 

13 taxpayer is certified under such program. 

14 ‘‘(c) TIMING OF CREDIT.—The credit allowed under 

15 subsection (a) for any expenditures shall be allowed— 

16 ‘‘(1) in the case of a qualified nuclear expendi17 ture described in subsection (b)(1), for the taxable 

18 year of such certification, and 

19 ‘‘(2) in the case of any other qualified nuclear 

20 expenditure, for the taxable year in which such ex21 penditure is paid or incurred. 

22 ‘‘(d) SPECIAL RULES.— 

23 ‘‘(1) BASIS ADJUSTMENT.—For purposes of 

24 this subtitle, if a credit is allowed under this section 

25 for an expenditure, the increase in basis which would 


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1 result (but for this subsection) for such expenditure 

2 shall be reduced by the amount of the credit allowed 

3 under this section. 

4 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc5 tion shall be allowed under this chapter for any 

6 amount taken into account in determining the credit 

7 under this section. 

8 ‘‘(e) TERMINATION.—This section shall not apply to 

9 any expenditures paid or incurred in taxable years begin10 ning after December 31, 2019.’’. 

11 (b) CONFORMING AMENDMENTS.— 

12 (1) Subsection (b) of section 38 of such Code 

13 is amended by striking ‘‘plus’’ at the end of para14 graph (34), by striking the period at the end of 

15 paragraph (35) and inserting ‘‘, plus’’, and by add16 ing at the end the following new paragraph: 

17 ‘‘(36) the ASME nuclear certification credit de18 termined under section 45R(a).’’. 

19 (2) Subsection (a) of section 1016 of such Code 

20 (relating to adjustments to basis) is amended by 

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

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

23 inserting ‘‘, and’’, and by adding at the end the fol24 lowing new paragraph: 


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

2 45R(e)(1).’’. 

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

4 this section shall apply to expenditures paid or incurred 

5 in taxable years beginning after December 31, 2009. 

6 TITLE IV—REGULATORY 

7 BURDENS 

8 SEC. 401. GREENHOUSE GAS REGULATION UNDER CLEAN 

9 AIR ACT. 

10 (a) DEFINITION OF AIR POLLUTANT.—Section 

11 302(g) of the Clean Air Act (42 U.S.C. 7602(g)) is 

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

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

14 vapor, methane, nitrous oxide, hydrofluorocarbons, 

15 perfluorocarbons, or sulfur hexafluoride.’’. 

16 (b) CLIMATE CHANGE NOT REGULATED BY CLEAN

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

18 as authorizing or requiring the regulation of climate 

19 change or global warming. 

20 SEC. 402. NEPA JUDICIAL REVIEW. 

21 Title I of the National Environmental Policy Act of 

22 1969 (42 U.S.C. 4331 et seq.) is amended by adding at 

23 the end the following new section: 


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1 ‘‘SEC. 106. JUDICIAL REVIEW. 

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

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

4 the circuit in which the petitioner resides or transacts 

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

6 application for review shall be made within ninety days 

7 from the date of promulgation of the Federal agency’s de8 cision. 

9 ‘‘(b) PROCEDURES FOR REVIEW.— 

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

11 this Act, judicial review of any issues concerning a 

12 Federal agency’s compliance with section 102 shall 

13 be limited to the administrative record. Otherwise 

14 applicable principles of administrative law shall gov15 ern whether any supplemental materials may be con16 sidered by the court. 

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

18 raised in any judicial action under this Act, the 

19 court shall uphold the Federal agency’s decision, 

20 whether in is the first instance, a revocation, reces21 sion or other action, unless the objecting party can 

22 demonstrate, on the administrative record, that the 

23 decision was arbitrary and capricious or otherwise 

24 not in accordance with law. 

25 ‘‘(3) REMEDY.—If the court finds that the se26 lection of the response action was arbitrary and caVerDate Nov 24 2008 04:15 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\H3505.IH H3505

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1 pricious or otherwise not in accordance with law, the 

2 court shall award such relief as the court deems ap3 propriate. 

4 ‘‘(4) PROCEDURAL ERRORS.—In reviewing al5 leged procedural errors, the court may disallow costs 

6 or damages only if the errors were so serious and re7 lated to matters of such central relevance to the ac8 tion that the action would have been significantly 

9 changed had such errors not been made. 

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

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

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

13 shall provide a copy of the complaint to the Attorney Gen14 eral of the United States and to the Secretary or Adminis15 trator of the affected Federal agency. 

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

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

18 right when such person claims an interest relating to the 

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

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

21 the person’s ability to protect that interest, unless the Sec22 retary or Administrator shows that the person’s interest 

23 is adequately represented by existing parties.’’. 


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1 SEC. 403. REPEAL OF 2007 AMENDMENTS TO RENEWABLE 

2 FUEL STANDARD. 

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

4 7545(o)) is amended to read as provided in section 

5 1501(a)(2) of the Energy Policy Act of 2005 (Public Law 

6 109–58; 119 Stat. 594, 1067). 

7 SEC. 404. REPEAL OF REQUIREMENT TO CONSULT REGARD8 ING IMPACTS ON GLOBAL WARMING AND 

9 POLAR BEAR POPULATION. 

10 Section 429 of the Department of the Interior, Envi11 ronment, and Related Agencies Appropriations Act, 2009 

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

13 SEC. 405. LIGHT BULB CHOICE. 

14 (a) IN GENERAL.—Effective 6 months after the date 

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

16 items in the table of contents relating thereto, of the En17 ergy Independence and Security Act of 2007 are repealed. 

18 (b) REVERSION.—When the repeal occurs under 

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

20 322 of the Energy Independence and Security Act of 2007 

21 are hereby repealed, and the laws amended thereby shall 

22 read as if those amendments had not been enacted. 


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1 SEC. 406. REPEAL OF DEDUCTION FOR INCOME ATTRIB2 UTABLE TO DOMESTIC PRODUCTION ACTIVI3 TIES. 

4 (a) IN GENERAL.—Section 199 of the Internal Rev5 enue Code is repealed. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Sections 86(b)(2)(A), 135(c)(4)(A), 

8 137(b)(3)(A), 219(g)(3)(A)(ii), 221(b)(2)(C), 

9 246(b)(1), and 469(i)(3)(F) of such Code are each 

10 amended by striking ‘‘199,’’. 

11 (2) Clause (i) of section 163(j)(6)(A) of such 

12 Code is amended by inserting ‘‘and’’ at the end of 

13 subclause (II), by striking subclause (III) and by re14 designating subclause (IV) as subclause (III). 

15 (3) Subparagraph (C) of section 170(b)(2) of 

16 such Code is amended by striking clause (iv), by re17 designating clause (v) as clause (iv), and by insert18 ing ‘‘and’’ at the end of clause (iii). 

19 (4) Subsection (d) of section 172 of such Code 

20 is amended by striking paragraph (7). 

21 (5) Subsection (a) of section 613 of such Code 

22 is amended by striking ‘‘and without the deduction 

23 under section 199’’. 

24 (6) Paragraph (1) of section 613A(d) of such 

25 Code is amended by redesignating subparagraphs 


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1 (C), (D), and (E) as subparagraphs (B), (C), and 

2 (D), respectively, and by striking subparagraph (B). 

3 (7) Subsection (a) of section 1402 of such Code 

4 is amended by inserting ‘‘and’’ at the end of para5 graph (15), by striking paragraph (16), and by re6 designating paragraph (17) as paragraph (16). 

7 (8) The table of sections for part VI of sub8 chapter B of chapter 1 of such Code is amended by 

9 striking the item relating to section 199. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2009. 

13 TITLE V—SOLAR POWER 

14 SEC. 501. SHORT TITLE. 

15 This subtitle may be cited as the ‘‘Emergency Solar 

16 Power Permit Act’’. 

17 SEC. 502. EXEMPTION OF SOLAR ENERGY PROJECTS FROM 

18 ENVIRONMENTAL IMPACT STATEMENT RE19 QUIREMENT. 

20 (a) IN GENERAL.—Title I of the National Environ21 mental Policy Act of 1969 (42 U.S.C. 4331 et seq.) is 

22 amended by adding at the end the following new section: 

23 ‘‘SEC. 106. No action relating to the development, de24 ployment, or operation of a solar energy project on lands 

25 managed by the Bureau of Land Management shall be 


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1 considered a major Federal action for the purposes of sec2 tion 102(2)(C).’’. 

3 (b) EFFECT FOR STATEMENTS UNDERWAY.—Each 

4 department and agency of the Federal Government shall 

5 cease the preparation of a statement, commenced pursu6 ant to section 102(2)(C) of the National Environmental 

7 Policy Act of 1969 (42 U.S.C. 4332(2)(C)), for any action 

8 described in the amendment made by subsection (a), to 

9 the extent that the preparation of such statement would 

10 delay or otherwise interfere with such action. 

11 TITLE VI—NATURAL GAS 

12 SEC. 601. NATURAL GAS VEHICLE RESEARCH, DEVELOP13 MENT, AND DEMONSTRATION PROJECTS. 

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

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

16 development, and demonstration. The Secretary shall co17 ordinate with the Administrator of the Environmental 

18 Protection Agency, as necessary. 

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

20 focus on— 

21 (1) the continued improvement and develop22 ment of new, cleaner, more efficient light-duty, me23 dium-duty, and heavy-duty natural gas vehicle en24 gines; 


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1 (2) the integration of those engines into light2 duty, medium-duty, and heavy-duty natural gas vehi3 cles for onroad and offroad applications; 

4 (3) expanding product availability by assisting 

5 manufacturers with the certification of the engines 

6 or vehicles described in paragraph (1) or (2) to Fed7 eral or California certification requirements and in8 use emission standards; 

9 (4) the demonstration and proper operation and 

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

11 all operating conditions; 

12 (5) the development and improvement of na13 tionally recognized codes and standards for the con14 tinued safe operation of natural gas vehicles and 

15 their components; 

16 (6) improvement in the reliability and efficiency 

17 of natural gas fueling station infrastructure; 

18 (7) the certification of natural gas fueling sta19 tion infrastructure to nationally recognized and in20 dustry safety standards; 

21 (8) the improvement in the reliability and effi22 ciency of onboard natural gas fuel storage systems; 

23 (9) the development of new natural gas fuel 

24 storage materials; 


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1 (10) the certification of onboard natural gas 

2 fuel storage systems to nationally recognized and in3 dustry safety standards; and 

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

5 vehicles. 

6 (c) CERTIFICATION OF CONVERSION SYSTEMS.—The 

7 Secretary shall coordinate with the Administrator on 

8 issues related to streamlining the certification of natural 

9 gas conversion systems to the appropriate Federal certifi10 cation requirements and in-use emission standards. 

11 (d) COOPERATION AND COORDINATION WITH INDUS12 TRY.—In developing and carrying out the program under 

13 this section, the Secretary shall coordinate with the nat14 ural gas vehicle industry to ensure cooperation between 

15 the public and the private sector. 

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

17 this section shall be conducted in accordance with sections 

18 3001 and 3002 of the Energy Policy Act of 1992. 

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

20 of enactment of this Act, the Secretary shall provide a re21 port to Congress on the implementation of this section. 

22 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated to the Secretary 

24 $30,000,000 for each of the fiscal years 2010 through 

25 2014 to carry out this section. 


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

2 term ‘‘natural gas’’ means compressed natural gas, lique3 fied natural gas, biomethane, and mixtures of hydrogen 

4 and methane or natural gas. 

5 SEC. 602. ALTERNATIVE FUEL CREDIT WITH RESPECT TO 

6 COMPRESSED OR LIQUEFIED NATURAL GAS 

7 MADE PERMANENT. 

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

9 section 6426(d) of the Internal Revenue Code of 1986 (re10 lating to alternative fuel credit) is amended to read as fol11 lows: 

12 ‘‘(5) TERMINATION.— 

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

14 subparagraph (B), this subsection shall not 

15 apply to any sale or use for any period after 

16 December 31, 2009 (September 30, 2014, in 

17 the case of any sale or use involving liquefied 

18 hydrogen). 

19 ‘‘(B) COMPRESSED OR LIQUEFIED NAT20 URAL GAS.—Subparagraph (A) shall not apply 

21 in the case of any sale or use involving com22 pressed or liquefied natural gas.’’. 

23 (b) ALTERNATIVE FUEL MIXTURE CREDIT.—Para24 graph (3) of section 6426(e) of such Code is amended to 

25 read as follows: 


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1 ‘‘(3) TERMINATION.— 

2 ‘‘(A) Except as provided in subparagraph 

3 (B), this subsection shall not apply to any sale 

4 or use for any period after December 31, 2009 

5 (September 30, 2014, in the case of any sale or 

6 use involving liquefied hydrogen). 

7 ‘‘(B) COMPRESSED OR LIQUEFIED NAT8 URAL GAS.—Subparagraph (A) shall not apply 

9 in the case of any sale or use involving com10 pressed or liquefied natural gas.’’. 

11 (c) PAYMENTS RELATING TO ALTERNATIVE FUEL OR

12 ALTERNATIVE FUEL MIXTURES.—Paragraph (6) of sec13 tion 6427(e) of such Code is amended by adding at the 

14 end the following flush sentence: 

15 ‘‘The preceding sentence shall not apply in the case 

16 of any sale or use involving compressed or liquefied 

17 natural gas.’’. 

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

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

20 of the enactment of this Act. 


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1 SEC. 603. ALTERNATIVE FUEL VEHICLE CREDIT MADE PER2 MANENT WITH RESPECT TO VEHICLES POW3 ERED BY COMPRESSED OR LIQUEFIED NAT4 URAL GAS. 

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

6 of the Internal Revenue Code of 1986 (relating to termi7 nation) is amended by adding at the end the following 

8 flush sentence: 

9 ‘‘The preceding sentence shall not apply in the case 

10 of a vehicle powered by compressed or liquefied nat11 ural gas.’’. 

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

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

14 after the date of the enactment of this Act. 

15 SEC. 604. ALLOWANCE OF VEHICLE AND INFRASTRUCTURE 

16 CREDITS AGAINST REGULAR AND MINIMUM 

17 TAX AND TRANSFERABILITY OF CREDITS. 

18 (a) BUSINESS CREDITS.—Subparagraph (B) of sec19 tion 38(c)(4) of the Internal Revenue Code of 1986 is 

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

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

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

23 new clauses: 

24 ‘‘(ix) the portion of the credit deter25 mined under section 30B which is attrib26 utable to the application of subsection 


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1 (e)(3) thereof with respect to qualified al2 ternative fuel motor vehicles which are ca3 pable of being powered by compressed or 

4 liquefied natural gas, and 

5 ‘‘(x) the portion of the credit deter6 mined under section 30C which is attrib7 utable to the application of subsection (b) 

8 thereof with respect to refueling property 

9 which is used to store and or dispense 

10 compressed or liquefied natural gas.’’. 

11 (b) PERSONAL CREDITS.— 

12 (1) NEW QUALIFIED ALTERNATIVE FUEL

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

14 such Code is amended by adding at the end the fol15 lowing new paragraph: 

16 ‘‘(3) SPECIAL RULE RELATING TO CERTAIN

17 NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHI18 CLES.—In the case of the portion of the credit deter19 mined under subsection (a) which is attributable to 

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

21 qualified alternative fuel motor vehicles which are 

22 capable of being powered by compressed or liquefied 

23 natural gas— 


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1 ‘‘(A) paragraph (2) shall (after the appli2 cation of paragraph (1)) be applied separately 

3 with respect to such portion, and 

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

5 under paragraph (2), such limitation shall not 

6 exceed the excess (if any) of— 

7 ‘‘(i) the sum of the regular tax liabil8 ity (as defined in section 26(b)) plus the 

9 tentative minimum tax for the taxable 

10 year, reduced by 

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

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

13 (2) ALTERNATIVE FUEL VEHICLE REFUELING

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

15 Code is amended by adding at the end the following 

16 new paragraph: 

17 ‘‘(3) SPECIAL RULE RELATING TO CERTAIN AL18 TERNATIVE FUEL VEHICLE REFUELING PROP19 ERTIES.—In the case of the portion of the credit de20 termined under subsection (a) with respect to refuel21 ing property which is used to store and or dispense 

22 compressed or liquefied natural gas and which is at23 tributable to the application of subsection (b)— 


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1 ‘‘(A) paragraph (2) shall (after the appli2 cation of paragraph (1)) be applied separately 

3 with respect to such portion, and 

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

5 under paragraph (2), such limitation shall not 

6 exceed the excess (if any) of— 

7 ‘‘(i) the sum of the regular tax liabil8 ity (as defined in section 26(b)) plus the 

9 tentative minimum tax for the taxable 

10 year, reduced by 

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

12 under subpart A and sections 27, 30, and 

13 the portion of the credit determined under 

14 section 30B which is attributable to the 

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

16 (c) CREDITS MAY BE TRANSFERRED.— 

17 (1) VEHICLE CREDITS.—Subsection (h) of sec18 tion 30B of such Code is amended by adding at the 

19 end the following new paragraph: 

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

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

22 a taxpayer from transferring, through sale and re23 purchase agreement, the credit allowed by this sec24 tion for qualified alternative fuel motor vehicles 


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1 which are capable of being powered by compressed 

2 or liquefied natural gas.’’. 

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

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

5 at the end the following new paragraph: 

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

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

8 a taxpayer from transferring the credit allowed by 

9 this section through sale and repurchase agree10 ments.’’. 

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

12 this section shall apply with respect to property placed in 

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

14 SEC. 605. CREDIT FOR PRODUCING VEHICLES FUELED BY 

15 NATURAL GAS OR LIQUIFIED NATURAL GAS. 

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

18 1986 (relating to business related credits), as amended by 

19 this Act, is amended by inserting after section 45R the 

20 following new section: 

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

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

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

25 gas vehicles, the natural gas vehicle credit determined 


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1 under this section for any taxable year with respect to 

2 each eligible natural gas vehicle produced by the taxpayer 

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

4 ‘‘(1) 10 percent of the manufacturer’s basis in 

5 such vehicle, or 

6 ‘‘(2) $4,000. 

7 ‘‘(b) AGGREGATE CREDIT ALLOWED.—The aggre8 gate amount of credit allowed under subsection (a) with 

9 respect to a taxpayer for any taxable year shall not exceed 

10 $200,000,000 reduced by the amount of the credit allowed 

11 under subsection (a) to the taxpayer (or any predecessor) 

12 for all prior taxable years. 

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

14 ‘‘(1) ELIGIBLE NATURAL GAS VEHICLE.—The 

15 term ‘eligible natural gas vehicle’ means any motor 

16 vehicle (as defined in section 30(c)(2))— 

17 ‘‘(A) which— 

18 ‘‘(i) is only capable of operating on 

19 natural gas or liquefied natural gas, or 

20 ‘‘(ii) is capable of operating on com21 pressed or liquefied natural gas and (but 

22 not in combination with) gasoline or diesel 

23 fuel, but in no case shall such vehicle have 

24 an operating range of less than 200 miles 


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1 on compressed or liquefied natural gas, 

2 and 

3 ‘‘(B) the final assembly of which is in the 

4 United States. 

5 ‘‘(2) MANUFACTURER.—The term ‘manufac6 turer’ has the meaning given such term in regula7 tions prescribed by the Administrator of the Envi8 ronmental Protection Agency for purposes of the ad9 ministration of title II of the Clean Air Act (42 

10 U.S.C. 7521 et seq.). 

11 ‘‘(d) SPECIAL RULES.—For purposes of this sec12 tion— 

13 ‘‘(1) IN GENERAL.—Rules similar to the rules 

14 of subsections (c), (d), and (e) of section 52 shall 

15 apply. 

16 ‘‘(2) CONTROLLED GROUPS.— 

17 ‘‘(A) IN GENERAL.—All persons treated as 

18 a single employer under subsection (a) or (b) of 

19 section 52 or subsection (m) or (o) of section 

20 414 shall be treated as a single producer. 

21 ‘‘(B) INCLUSION OF FOREIGN CORPORA22 TIONS.—For purposes of subparagraph (A), in 

23 applying subsections (a) and (b) of section 52 

24 to this section, section 1563 shall be applied 

25 without regard to subsection (b)(2)(C) thereof. 


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1 ‘‘(3) VERIFICATION.—No amount shall be al2 lowed as a credit under subsection (a) with respect 

3 to which the taxpayer has not submitted such infor4 mation or certification as the Secretary, in consulta5 tion with the Secretary of Energy, determines nec6 essary.’’. 

7 (b) CREDIT TO BE PART OF BUSINESS CREDIT.— 

8 Section 38(b) of such Code, as amended by this Act, is 

9 amended by striking ‘‘plus’’ at the end of paragraph (35), 

10 by striking the period at the end of paragraph (36) and 

11 inserting ‘‘, plus’’, and by adding at the end the following: 

12 ‘‘(37) the natural gas vehicle credit determined 

13 under section 45S(a).’’. 

14 (c) CONFORMING AMENDMENT.—The table of sec15 tions for subpart D of part IV of subchapter A of chapter 

16 1 of such Code is amended by inserting after the item 

17 relating to section 45R the following new item: 

‘‘Sec. 45S. Production of vehicles fueled by natural gas or liquified natural 

gas.’’. 

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

19 this section shall apply to vehicles produced after Decem20 ber 31, 2008. 


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1 TITLE VII—CLEAN COAL 

2 SEC. 701. COAL-TO-LIQUID FACILITIES. 

3 (a) IN GENERAL.—Section 168 of the Internal Rev4 enue Code of 1986 (relating to accelerated cost recovery 

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

6 ‘‘(o) SPECIAL ALLOWANCE FOR COAL-TO-LIQUID

7 PLANT PROPERTY.— 

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

9 any qualified coal-to-liquid plant property— 

10 ‘‘(A) the depreciation deduction provided 

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

12 such property is placed in service shall include 

13 an allowance equal to 50 percent of the ad14 justed basis of such property, and 

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

16 shall be reduced by the amount of such deduc17 tion before computing the amount otherwise al18 lowable as a depreciation deduction under this 

19 chapter for such taxable year and any subse20 quent taxable year. 

21 ‘‘(2) QUALIFIED COAL-TO-LIQUID PLANT PROP22 ERTY.— 

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

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


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1 a character subject to the allowance for depre2 ciation— 

3 ‘‘(i) which is part of a commercial4 scale project that converts coal to 1 or 

5 more liquid or gaseous transportation fuel 

6 that demonstrates the capture, and seques7 tration or disposal or use of, the carbon di8 oxide produced in the conversion process, 

9 and that, on the basis of carbon dioxide se10 questration plan prepared by the applicant, 

11 is certified by the Administrator of the En12 vironmental Protection Agency, in con13 sultation with the Secretary of Energy, as 

14 producing fuel with life cycle carbon diox15 ide emissions at or below the average life16 cycle carbon dioxide emissions for the same 

17 type of fuel produced at traditional petro18 leum based facilities with similar annual 

19 capacities, 

20 ‘‘(ii) which is used in the United 

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

22 ‘‘(iii) the original use of which com23 mences with the taxpayer after the date of 

24 the enactment of this subsection, 


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1 ‘‘(iv) which has a nameplate capacity 

2 of 30,000 barrels per day production of 

3 coal-to-liquid fuels, 

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

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

6 after the date of the enactment of this sub7 section, but only if no written binding con8 tract for the acquisition was in effect on or 

9 before the date of the enactment of this 

10 subsection, and 

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

12 taxpayer before January 1, 2013. 

13 ‘‘(B) EXCEPTIONS.— 

14 ‘‘(i) ALTERNATIVE DEPRECIATION

15 PROPERTY.—Such term shall not include 

16 any property described in section 

17 168(k)(2)(D)(i). 

18 ‘‘(ii) TAX-EXEMPT BOND-FINANCED

19 PROPERTY.—Such term shall not include 

20 any property any portion of which is fi21 nanced with the proceeds of any obligation 

22 the interest on which is exempt from tax 

23 under section 103. 

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

25 makes an election under this subparagraph 


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1 with respect to any class of property for 

2 any taxable year, this subsection shall not 

3 apply to all property in such class placed 

4 in service during such taxable year. 

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

6 subsection, rules similar to the rules of subpara7 graph (E) of section 168(k)(2) shall apply, except 

8 that such subparagraph shall be applied— 

9 ‘‘(A) by substituting ‘the date of the enact10 ment of subsection (l)’ for ‘December 31, 2007’ 

11 each place it appears therein, 

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

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

14 ‘‘(C) by substituting ‘qualified coal-to-liq15 uid plant property’ for ‘qualified property’ in 

16 clause (iv) thereof. 

17 ‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MIN18 IMUM TAX.—For purposes of this subsection, rules 

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

20 apply. 

21 ‘‘(5) RECAPTURE.—For purposes of this sub22 section, rules similar to the rules under section 

23 179(d)(10) shall apply with respect to any qualified 

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

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


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

2 this section shall apply to property placed in service after 

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

4 ending after such date. 

5 SEC. 702. PERMANENT EXTENSION OF THE CREDIT FOR 

6 NONBUSINESS ENERGY PROPERTY AND THE 

7 CREDIT FOR GAS PRODUCED FROM BIOMASS 

8 AND FOR SYNTHETIC FUELS PRODUCED 

9 FROM COAL. 

10 (a) CREDIT FOR NONBUSINESS ENERGY PROPERTY

11 MADE PERMANENT.— 

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

13 Revenue Code of 1986 is amended by striking sub14 section (g). 

15 (2) EFFECTIVE DATE.—The amendment made 

16 by this subsection shall apply to property placed in 

17 service after December 31, 2008. 

18 (b) CREDIT FOR GAS PRODUCED FROM BIOMASS

19 AND FOR SYNTHETIC FUELS PRODUCED FROM COAL

20 MADE PERMANENT.— 

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

22 45K(f)(1) of such Code is amended to read as fol23 lows: 


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

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

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

4 (2) EFFECTIVE DATE.—The amendment made 

5 by this subsection shall apply to fuel sold after De6 cember 31, 2008. 

7 SEC. 703. COAL-TO-LIQUID FUEL LOAN GUARANTEE PRO8 GRAM. 

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

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

11 amended by adding at the end the following: 

12 ‘‘(11) Large-scale coal-to-liquid facilities (as de13 fined in section 101 of the Coal-to-Liquid Fuel Pro14 motion Act of 2007) that use a feedstock, the major15 ity of which is the coal resources of the United 

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

17 day of liquid transportation fuel.’’. 

18 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

19 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) 

20 is amended by adding at the end the following: 

21 ‘‘(c) COAL-TO-LIQUID PROJECTS.— 

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

23 appropriated such sums as are necessary to provide 

24 the cost of guarantees for projects involving largeVerDate Nov 24 2008 04:15 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00112 Fmt 6652 Sfmt 6201 E:\BILLS\H3505.IH H3505

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1 scale coal-to-liquid facilities under section 

2 1703(b)(11). 

3 ‘‘(2) ALTERNATIVE FUNDING.—If no appropria4 tions are made available under paragraph (1), an eli5 gible applicant may elect to provide payment to the 

6 Secretary, to be delivered if and at the time the ap7 plication is approved, in the amount of the estimated 

8 cost of the loan guarantee to the Federal Govern9 ment, as determined by the Secretary. 

10 ‘‘(3) LIMITATIONS.— 

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

12 shall be provided under this title for projects 

13 described in paragraph (1) after (as determined 

14 by the Secretary)— 

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

16 issued under this title; or 

17 ‘‘(ii) production capacity covered by 

18 such loan guarantees reaches 100,000 bar19 rels per day of coal-to-liquid fuel. 

20 ‘‘(B) INDIVIDUAL PROJECTS.— 

21 ‘‘(i) IN GENERAL.—A loan guarantee 

22 may be provided under this title for any 

23 large-scale coal-to-liquid facility described 

24 in paragraph (1) that produces no more 


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

2 per day. 

3 ‘‘(ii) NON-FEDERAL FUNDING RE4 QUIREMENT.—To be eligible for a loan 

5 guarantee under this title, a large-scale 

6 coal-to-liquid facility described in para7 graph (1) that produces more than 20,000 

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

9 be eligible to receive a loan guarantee for 

10 the proportion of the cost of the facility 

11 that represents 20,000 barrels of coal-to12 liquid fuel per day of production. 

13 ‘‘(4) REQUIREMENTS.— 

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

15 days after the date of enactment of this sub16 section, the Secretary shall publish guidelines 

17 for the coal-to-liquids loan guarantee applica18 tion process. 

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

20 year after the date of enactment of this sub21 section, the Secretary shall begin to accept ap22 plications for coal-to-liquid loan guarantees 

23 under this subsection. 

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

25 from the date of acceptance of an application 


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1 under subparagraph (B), the Secretary shall 

2 evaluate the application and make final deter3 minations under this subsection. 

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

5 shall submit to the Committee on Energy and Nat6 ural Resources of the Senate and the Committee on 

7 Energy and Commerce of the House of Representa8 tives a report describing the status of the program 

9 under this subsection not later than each of— 

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

11 of this subsection; 

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

13 this subsection; and 

14 ‘‘(C) the dates on which the Secretary ap15 proves the first and fifth applications for coal16 to-liquid loan guarantees under this sub17 section.’’. 

18 SEC. 704. COAL-TO-LIQUID FACILITIES LOAN PROGRAM. 

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

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

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

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

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

24 (b) ESTABLISHMENT.—The Secretary shall establish 

25 a program under which the Secretary shall provide loans, 


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

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

3 obtaining any services necessary for the planning, permit4 ting, and construction of a coal-to-liquid facility. 

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

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

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

8 and containing such information as the Secretary may re9 quire. 

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

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

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

13 the amount of the loan. 

14 (e) REPAYMENT OF LOAN.— 

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

16 loan under this section, an eligible recipient shall 

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

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

19 receipt of the loan. 

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

21 under paragraph (1) may be made from any financ22 ing or assistance received for the construction of a 

23 coal-to-liquid facility described in subsection (a), in24 cluding a loan guarantee provided under section 


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1 1703(b)(11) of the Energy Policy Act of 2005 (42 

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

3 (f) REQUIREMENTS.— 

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

5 after the date of enactment of this Act, the Sec6 retary shall publish guidelines for the coal-to-liquids 

7 loan application process. 

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

9 after the date of enactment of this Act, the Sec10 retary shall begin to accept applications for coal-to11 liquid loans under this section. 

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

13 180 days and 1 year after the date of enactment of this 

14 Act, the Secretary shall submit to the Committee on En15 ergy and Natural Resources of the Senate and the Com16 mittee on Energy and Commerce of the House of Rep17 resentatives a report describing the status of the program 

18 under this section. 

19 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to carry out this section 

21 $200,000,000, to remain available until expended. 


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1 SEC. 705. 7-YEAR DEPRECIATION FOR CLEAN COAL TECH2 NOLOGY OR FOR CARBON SEQUESTRATION 

3 TECHNOLOGY INSTALLED OR RETRO-FIT AT 

4 POWER-PLANTS. 

5 (a) IN GENERAL.—Subparagraph (C) of section 

6 168(e)(3) of the Internal Revenue Code of 1986 is amend7 ed by striking ‘‘and’’ at the end of clause (iv), by striking 

8 the period at the end of clause (v) and inserting ‘‘, and’’, 

9 and by inserting after clause (v) the following new clause: 

10 ‘‘(v) any property installed with re11 spect to any coal fired power plant gener12 ating power that retrofits the operation of 

13 such plant to decrease its carbon output by 

14 at least 10 percent per year.’’. 

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

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

17 after December 31, 2009. 

18 SEC. 706. EXTENSION OF 50 CENT PER GALLON ALTER19 NATIVE FUELS EXCISE TAX CREDIT. 

20 Paragraph (5) of section 6426(d) of the Internal Rev21 enue Code of 1986 is amended— 

22 (1) by striking ‘‘2009’’ and inserting ‘‘2019’’, 

23 and 

24 (2) by striking ‘‘2014’’ and inserting ‘‘2024’’. 


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1 SEC. 707. PROVIDES A 20 PERCENT INVESTMENT TAX CRED2 IT CAPPED AT $200 MILLION TOTAL PER CTL 

3 PLANT PLACED IN SERVICE BEFORE 2016. 

4 The Internal Revenue Service shall treat the syn5 thetic gas produced from coal-to-liquids with the same tax 

6 treatment as covered by the industrial gasification tax 

7 credit. 

8 SEC. 708. REDUCES RECOVERY PERIOD FOR CERTAIN EN9 ERGY PRODUCTION AND DISTRIBUTION FA10 CILITIES. 

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

12 be allowed as a credit against the taxes imposed by sub13 title A of the Internal Revenue Code of 1986 an amount 

14 equal to 30 percent of the expenditures made by such indi15 vidual or business for energy production and distribution 

16 facilities. 

17 SEC. 709. DOE CLEAN COAL TECHNOLOGY LOAN GUARAN18 TEES AND DIRECT LOANS. 

19 The Secretary of Energy may provide clean coal tech20 nology loan guarantees and direct loans for the research, 

21 development, demonstration, and deployment of clean coal 

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

23 plants with carbon capture and sequestration capabilities. 

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

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

26 private sector. 


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1 SEC. 710. CARBON DIOXIDE STORAGE CAPACITY ASSESS2 MENT. 

3 (a) DEFINITIONS.—In this section: 

4 (1) ASSESSMENT.—The term ‘‘assessment’’ 

5 means the national assessment of capacity for car6 bon dioxide completed under subsection (f). 

7 (2) CAPACITY.—The term ‘‘capacity’’ means the 

8 portion of a storage formation that can retain car9 bon dioxide in accordance with the requirements (in10 cluding physical, geological, and economic require11 ments) established under the methodology developed 

12 under subsection (b). 

13 (3) ENGINEERED HAZARD.—The term ‘‘engi14 neered hazard’’ includes the location and completion 

15 history of any well that could affect potential stor16 age. 

17 (4) RISK.—The term ‘‘risk’’ includes any risk 

18 posed by geomechanical, geochemical, 

19 hydrogeological, structural, and engineered hazards. 

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

21 the Secretary of the Interior, acting through the Di22 rector of the United States Geological Survey. 

23 (6) STORAGE FORMATION.—The term ‘‘storage 

24 formation’’ means a deep saline formation, 

25 unmineable coal seam, or oil or gas reservoir that is 


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1 capable of accommodating a volume of industrial 

2 carbon dioxide. 

3 (b) METHODOLOGY.—Not later than 1 year after the 

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

5 a methodology for conducting an assessment under sub6 section (f), taking into consideration— 

7 (1) the geographical extent of all potential stor8 age formations in all States; 

9 (2) the capacity of the potential storage forma10 tions; 

11 (3) the injectivity of the potential storage for12 mations; 

13 (4) an estimate of potential volumes of oil and 

14 gas recoverable by injection and storage of industrial 

15 carbon dioxide in potential storage formations; 

16 (5) the risk associated with the potential stor17 age formations; and 

18 (6) the Carbon Sequestration Atlas of the 

19 United States and Canada that was completed by 

20 the Department of Energy in April 2006. 

21 (c) COORDINATION.— 

22 (1) FEDERAL COORDINATION.— 

23 (A) CONSULTATION.—The Secretary shall 

24 consult with the Secretary of Energy and the 

25 Administrator of the Environmental Protection 


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1 Agency on issues of data sharing, format, devel2 opment of the methodology, and content of the 

3 assessment required under this title to ensure 

4 the maximum usefulness and success of the as5 sessment. 

6 (B) COOPERATION.—The Secretary of En7 ergy and the Administrator shall cooperate with 

8 the Secretary to ensure, to the maximum extent 

9 practicable, the usefulness and success of the 

10 assessment. 

11 (2) STATE COORDINATION.—The Secretary 

12 shall consult with State geological surveys and other 

13 relevant entities to ensure, to the maximum extent 

14 practicable, the usefulness and success of the assess15 ment. 

16 (d) EXTERNAL REVIEW AND PUBLICATION.—On 

17 completion of the methodology under subsection (b), the 

18 Secretary shall— 

19 (1) publish the methodology and solicit com20 ments from the public and the heads of affected 

21 Federal and State agencies; 

22 (2) establish a panel of individuals with exper23 tise in the matters described in paragraphs (1) 

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1 tutions of higher education, nongovernmental organi2 zations, State organizations, industry, and inter3 national geoscience organizations to review the 

4 methodology and comments received under para5 graph (1); and 

6 (3) on completion of the review under para7 graph (2), publish in the Federal Register the re8 vised final methodology. 

9 (e) PERIODIC UPDATES.—The methodology devel10 oped under this section shall be updated periodically (in11 cluding at least once every 5 years) to incorporate new 

12 data as the data becomes available. 

13 (f) NATIONAL ASSESSMENT.— 

14 (1) IN GENERAL.—Not later than 2 years after 

15 the date of publication of the methodology under 

16 subsection (d)(1), the Secretary, in consultation with 

17 the Secretary of Energy and State geological sur18 veys, shall complete a national assessment of capac19 ity for carbon dioxide in accordance with the meth20 odology. 

21 (2) GEOLOGICAL VERIFICATION.—As part of 

22 the assessment under this subsection, the Secretary 

23 shall carry out a drilling program to supplement the 

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1 pacity of carbon dioxide in geological storage forma2 tions, including— 

3 (A) well log data; 

4 (B) core data; and 

5 (C) fluid sample data. 

6 (3) PARTNERSHIP WITH OTHER DRILLING PRO7 GRAMS.—As part of the drilling program under 

8 paragraph (2), the Secretary shall enter, as appro9 priate, into partnerships with other entities to collect 

10 and integrate data from other drilling programs rel11 evant to the storage of carbon dioxide in geologic 

12 formations. 

13 (4) INCORPORATION INTO NATCARB.— 

14 (A) IN GENERAL.—On completion of the 

15 assessment, the Secretary of Energy shall incor16 porate the results of the assessment using the 

17 NatCarb database, to the maximum extent 

18 practicable. 

19 (B) RANKING.—The database shall include 

20 the data necessary to rank potential storage 

21 sites for capacity and risk, across the United 

22 States, within each State, by formation, and 

23 within each basin. 

24 (5) REPORT.—Not later than 180 days after 

25 the date on which the assessment is completed, the 


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1 Secretary shall submit to the Committee on Energy 

2 and Natural Resources of the Senate and the Com3 mittee on Science and Technology of the House of 

4 Representatives a report describing the findings 

5 under the assessment. 

6 (6) PERIODIC UPDATES.—The national assess7 ment developed under this section shall be updated 

8 periodically (including at least once every 5 years) to 

9 support public and private sector decisionmaking. 

10 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

11 authorized to be appropriated to carry out this section 

12 $30,000,000 for the period of fiscal years 2009 through 

13 2013. 

14 SEC. 711. EFFICIENCY AUDIT AND QUANTIFICATION. 

15 (a) IN GENERAL.—Not later than 1 year after the 

16 date of enactment of this Act, the Secretary of Energy 

17 (referred to in this section as the ‘‘Secretary’’) shall con18 duct an efficiency audit, and quantify the operating effi19 ciencies, of all coal-fired electric generation facilities in the 

20 United States. 

21 (b) REPORT.—Not later than 180 days after the date 

22 of completion of the audit and quantification under sub23 section (a), the Secretary, in consultation with the Admin24 istrator of the Environmental Protection Agency, shall 

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1 sources and Environment and Public Works of the Senate 

2 and the Committee on Energy and Commerce of the 

3 House of Representatives, a report that— 

4 (1) identifies all commercially available tech5 nologies, processes, and other approaches to increas6 ing the efficiency of the coal-fired electric generation 

7 facilities audited; 

8 (2) includes a methodology for determining 

9 which technologies and processes, in the absence of 

10 the obstacles identified under paragraph (3), would 

11 be sufficiently cost effective to recoup all costs of the 

12 technologies and processes in not more than 5 years 

13 after the date of installation or implementation, re14 spectively, of the technologies or processes; 

15 (3) identifies the technical, economic, regu16 latory, environmental, and other obstacles to coal17 fired electric generation facilities undertaking the in18 stallation of the technologies or incorporation of the 

19 processes described in paragraph (2); 

20 (4) includes recommendations as to legislative, 

21 administrative, and other actions that could reduce 

22 or eliminate the obstacles identified under paragraph 

23 (3); and 

24 (5) includes calculations of— 


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1 (A) the additional power to be expected 

2 from the installation or implementation of those 

3 technologies and processes that are considered 

4 to be economic under the methodology described 

5 in paragraph (2); and 

6 (B) the greenhouse gas emissions that are 

7 or could be avoided through installation or im8 plementation of those technologies and proc9 esses. 

10 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated such sums as are nec12 essary to carry out this section. 

13 TITLE VIII—TAX INCENTIVES 

14 SEC. 801. EXTENSION OF CREDIT FOR ENERGY EFFICIENT 

15 APPLIANCES. 

16 (a) IN GENERAL.—Subsection (b) of section 45M of 

17 the Internal Revenue Code of 1986 (relating to applicable 

18 amount) is amended— 

19 (1) in paragraphs (1)(A), (2)(B), and (3)(B), 

20 by striking ‘‘in calendar year 2008 or 2009’’ each 

21 place it appears and inserting ‘‘after calendar year 

22 2007’’, 

23 (2) in paragraphs (1)(B), (2)(C), (2)(D), 

24 (3)(C), and (3)(D), by striking ‘‘in calendar year 


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1 2008, 2009, or 2010’’ and inserting ‘‘after calendar 

2 year 2007’’. 

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

4 this section shall apply to appliances produced after De5 cember 31, 2009. 

6 SEC. 802. EXTENSION OF CREDIT FOR NONBUSINESS EN7 ERGY PROPERTY. 

8 Section 25C of the Internal Revenue Code of 1986 

9 is amended by striking subsection (g). 

10 SEC. 803. EXTENSION OF CREDIT FOR RESIDENTIAL EN11 ERGY EFFICIENT PROPERTY. 

12 Section 25D of the Internal Revenue Code of 1986 

13 is amended by striking subsection (g). 

14 SEC. 804. EXTENSION OF NEW ENERGY EFFICIENT HOME 

15 CREDIT. 

16 Section 45L of the Internal Revenue Code of 1986 

17 is amended by striking subsection (g). 

18 SEC. 805. EXTENSION OF ENERGY EFFICIENT COMMERCIAL 

19 BUILDINGS DEDUCTION. 

20 Section 179D of the Internal Revenue Code of 1986 

21 is amended by striking subsection (h). 


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1 SEC. 806. EXTENSION OF SPECIAL RULE TO IMPLEMENT 

2 FERC AND STATE ELECTRIC RESTRUC3 TURING POLICY. 

4 Paragraph (3) of section 451(i) of the Internal Rev5 enue Code of 1986 is amended by striking ‘‘before Janu6 ary 1, 2008 (before January 1, 2010, in the case of a 

7 qualified electric utility),’’. 

8 SEC. 807. HOME ENERGY AUDITS. 

9 (a) IN GENERAL.—Subpart A of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of 

11 1986 is amended by inserting after section 25D the fol12 lowing new section: 

13 ‘‘SEC. 25E. HOME ENERGY AUDITS. 

14 ‘‘(a) IN GENERAL.—In the case of an individual, 

15 there shall be allowed as a credit against the tax imposed 

16 by this chapter for the taxable year an amount equal to 

17 50 percent of the amount of qualified energy audit paid 

18 or incurred by the taxpayer during the taxable year. 

19 ‘‘(b) LIMITATIONS.— 

20 ‘‘(1) DOLLAR LIMITATION.—The amount al21 lowed as a credit under subsection (a) with respect 

22 to a residence of the taxpayer for a taxable year 

23 shall not exceed $400. 

24 ‘‘(2) LIMITATION BASED ON AMOUNT OF

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1 tion 26(a)(2) does not apply, the credit allowed 

2 under subsection (a) shall not exceed the excess of— 

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

4 (as defined in section 26(b)) plus the tax im5 posed by section 55, over 

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

7 under this subpart (other than this section) and 

8 section 27 for the taxable year. 

9 ‘‘(c) QUALIFIED ENERGY AUDIT.—For purposes of 

10 this section, the term ‘qualified energy audit’ means an 

11 energy audit of the principal residence of the taxpayer per12 formed by a qualified energy auditor through a com13 prehensive site visit. Such audit may include a blower door 

14 test, an infra-red camera test, and a furnace combustion 

15 efficiency test. In addition, such audit shall include such 

16 substitute tests for the tests specified in the preceding sen17 tence, and such additional tests, as the Secretary may by 

18 regulation require. A principal residence shall not be taken 

19 into consideration under this subparagraph unless such 

20 residence is located in the United States. 

21 ‘‘(d) PRINCIPAL RESIDENCE.—For purposes of this 

22 section, the term ‘principal residence’ has the same mean23 ing as when used in section 121. 

24 ‘‘(e) QUALIFIED ENERGY AUDITOR.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall specify 

2 by regulations the qualifications required to be a 

3 qualified energy auditor for purposes of this section. 

4 Such regulations shall include rules prohibiting con5 flicts-of-interest, including the disallowance of com6 missions or other payments based on goods or non7 audit services purchased by the taxpayer from the 

8 auditor. 

9 ‘‘(2) CERTIFICATION.—The Secretary shall pre10 scribe the procedures and methods for certifying 

11 that an auditor is a qualified energy auditor. To the 

12 maximum extent practicable, such procedures and 

13 methods shall provide for a variety of sources to ob14 tain certifications.’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Section 23(b)(4)(B) of the Internal Revenue 

17 Code of 1986 is amended by inserting ‘‘and section 

18 25E’’ after ‘‘this section’’. 

19 (2) Section 23(c)(1) of such Code is amended 

20 by inserting ‘‘, 25E,’’ after ‘‘25D’’. 

21 (3) Section 24(b)(3)(B) of such Code is amend22 ed by striking ‘‘and 25B’’ and inserting ‘‘, 25B, and 

23 25E’’. 


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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 striking ‘‘section 23’’ and inserting ‘‘sections 23 

6 and 25E’’. 

7 (6) Section 25D(c)(1) of such Code is amended 

8 by inserting ‘‘and section 25E’’ after ‘‘this section’’. 

9 (7) Section 25D(c)(2) of such Code is amended 

10 by striking ‘‘and 25B’’ and inserting ‘‘25B, and 

11 25E’’. 

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.—The amendments made by 

17 this section shall apply to amounts paid or incurred in tax18 able years beginning after the date of the enactment of 

19 this Act. 

20 SEC. 808. EXTENSION OF RENEWABLE ELECTRICITY, RE21 FINED COAL, AND INDIAN COAL PRODUCTION 

22 CREDIT. 

23 (a) CREDIT MADE PERMANENT.— 


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1 (1) IN GENERAL.—Subsection (d) of section 45 

2 of the Internal Revenue Code of 1986 (relating to 

3 qualified facilities) is amended— 

4 (A) by striking ‘‘and before January 1, 

5 2014’’ each place it occurs, 

6 (B) by striking ‘‘, and before January 1, 

7 2014’’ in paragraphs (1) and (2)(A)(i), and 

8 (C) by striking ‘‘before January 1, 2009’’ 

9 in paragraph (10). 

10 (2) OPEN-LOOP BIOMASS FACILITIES.—Sub11 paragraph (A) of section 45(d)(3) of such Code is 

12 amended to read as follows: 

13 ‘‘(A) IN GENERAL.—In the case of a facil14 ity using open-loop biomass to produce elec15 tricity, the term ‘qualified facility’ means any 

16 facility owned by the taxpayer which is origi17 nally placed in service after October 22, 2004.’’. 

18 (3) EFFECTIVE DATE.—The amendments made 

19 by this subsection shall apply to electricity produced 

20 and sold after December 31, 2008, in taxable years 

21 ending after such date. 

22 (b) ALLOWANCE AGAINST ALTERNATIVE MINIMUM

23 TAX.— 

24 (1) IN GENERAL.—Clause (iii) of section 

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1 its) is amended by striking ‘‘produced—’’ and all 

2 that follows and inserting ‘‘produced at a facility 

3 which is originally placed in service after the date of 

4 the enactment of this paragraph.’’. 

5 (2) EFFECTIVE DATE.—The amendment made 

6 by paragraph (1) shall apply to taxable years begin7 ning after the date of the enactment of this Act. 

8 SEC. 809. EXTENSION OF ENERGY CREDIT. 

9 (a) SOLAR ENERGY PROPERTY.—Paragraphs 

10 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal 

11 Revenue Code of 1986 (relating to energy credit) are each 

12 amended by striking ‘‘but only with respect to periods end13 ing before January 1, 2017’’. 

14 (b) FUEL CELL PROPERTY.—Section 48(c)(1) of 

15 such Code (relating to qualified fuel cell property) is 

16 amended by striking subparagraph (D). 

17 (c) MICROTURBINE PROPERTY.—Section 48(c)(2) of 

18 such Code (relating to qualified microturbine property) is 

19 amended by striking subparagraph (D). 

20 (d) COMBINED HEAT AND POWER SYSTEM PROP21 ERTY.—Section 48(c)(3) of such Code (relating to com22 bined heat and power system property) is amended by in23 serting ‘‘and’’ at the end of clause (ii), by striking ‘‘, and’’ 

24 at the end of clause (iii) and inserting a period, and by 

25 striking clause (iv). 


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1 SEC. 810. CREDIT FOR CLEAN RENEWABLE ENERGY BONDS 

2 MADE PERMANENT. 

3 Section 54 of the Internal Revenue Code of 1986 (re4 lating to termination) is amended by striking subsection 

5 (m). 

6 SEC. 811. EXTENSION OF CREDITS FOR BIODIESEL AND RE7 NEWABLE DIESEL. 

8 (a) IN GENERAL.—Section 40A of the Internal Rev9 enue Code of 1986 is amended by striking subsection (g). 

10 (b) BIODIESEL MIXTURE CREDIT.— 

11 (1) Section 6426(c) of the Internal Revenue 

12 Code of 1986 is amended by striking paragraph (6). 

13 (2) Section 6427(e)(5) of the Internal Revenue 

14 Code of 1986 is amended by striking subparagraph 

15 (B) and redesignating subparagraphs (C) and (D) 

16 as subparagraphs (B) and (C), respectively. 

17 SEC. 812. ALTERNATIVE FUEL VEHICLE REFUELING PROP18 ERTY CREDIT MADE PERMANENT. 

19 Section 30C of the Internal Revenue Code of 1986 

20 is amended by striking subsection (g). 

Æ 


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