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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3505 Introduced in House (IH)]

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 long-term energy framework to reduce 
  dependence on foreign oil, tap into American sources of energy, and 
                reduce the size of the Federal deficit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Energy Production and Price 
Reduction Act''.

SEC. 2. TABLE OF CONTENTS.

    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

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.
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.

                       TITLE I--SENSE OF CONGRESS

SEC. 101. SENSE OF CONGRESS.

    It is the sense of Congress that at no time shall Congress enact 
legislation that will lead to the increase of domestic energy prices.

                   TITLE II--AMERICAN OIL PRODUCTION

                  Subtitle A--Outer Continental Shelf

SEC. 201. DEFINITIONS UNDER THE SUBMERGED LANDS ACT.

    Section 2 of the Submerged Lands Act (43 U.S.C. 1301) is amended--
            (1) in subparagraph (2) of paragraph (a) by striking all 
        after ``seaward to a line'' and inserting ``twelve nautical 
        miles distant from the coast line of such State;'';
            (2) by striking out paragraph (b) and redesignating the 
        subsequent paragraphs in order as paragraphs (b) through (g);
            (3) by striking the period at the end of paragraph (g) (as 
        so redesignated) and inserting ``; and'';
            (4) by adding the following:
    ``(i) The term `Secretary' means the Secretary of the Interior.''; 
and
            (5) by defining ``State'' as it is defined in section 2(r) 
        of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(r)).

SEC. 202. SEAWARD BOUNDARIES OF STATES.

    Section 4 of the Submerged Lands Act (43 U.S.C. 1312) is amended--
            (1) in the first sentence by striking ``original'', and in 
        the same sentence by striking ``three geographical'' and 
        inserting ``twelve nautical''; and
            (2) by striking all after the first sentence and inserting 
        the following: ``Extension and delineation of lateral offshore 
        State boundaries under the provisions of this Act shall follow 
        the lines used to determine the Adjacent Zones of coastal 
        States under the Outer Continental Shelf Lands Act to the 
        extent such lines extend twelve nautical miles for the nearest 
        coastline.''.

SEC. 203. EXCEPTIONS FROM CONFIRMATION AND ESTABLISHMENT OF STATES' 
              TITLE, POWER, AND RIGHTS.

    Section 5 of the Submerged Lands Act (43 U.S.C. 1313) is amended--
            (1) by redesignating paragraphs (a) through (c) in order as 
        paragraphs (1) through (3);
            (2) by inserting ``(a)'' before ``There is excepted''; and
            (3) by inserting at the end the following:
    ``(b) Exception of Oil and Gas Mineral Rights.--There is excepted 
from the operation of sections 3 and 4 all of the oil and gas mineral 
rights for lands beneath the navigable waters that are located within 
the expanded offshore State seaward boundaries established under this 
Act. These oil and gas mineral rights shall remain Federal property and 
shall be considered to be part of the Federal outer Continental Shelf 
for purposes of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
et seq.) and subject to leasing under the authority of that Act and to 
laws applicable to the leasing of the oil and gas resources of the 
Federal outer Continental Shelf. All existing Federal oil and gas 
leases within the expanded offshore State seaward boundaries shall 
continue unchanged by the provisions of this Act, except as otherwise 
provided herein. However, a State may exercise all of its sovereign 
powers of taxation within the entire extent of its expanded offshore 
State boundaries.''.

SEC. 204. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.

    Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) 
is amended--
            (1) by amending paragraph (f) to read as follows:
    ``(f) The term `affected State' means the `Adjacent State'.'';
            (2) by striking the semicolon at the end of each of 
        paragraphs (a) through (o) and inserting a period;
            (3) by striking ``; and'' at the end of paragraph (p) and 
        inserting a period;
            (4) by adding at the end the following:
    ``(r) The term `Adjacent State' means, with respect to any program, 
plan, lease sale, leased tract, or other activity, proposed, conducted, 
or approved pursuant to the provisions of this Act, any State the laws 
of which are declared, pursuant to section 4(a)(2), to be the law of 
the United States for the portion of the outer Continental Shelf on 
which such program, plan, lease sale, leased tract, or activity 
appertains or is, or is proposed to be, conducted. For purposes of this 
paragraph, the term `State' includes the Commonwealth of Puerto Rico, 
the Commonwealth of the Northern Mariana Islands, the Virgin Islands, 
American Samoa, Guam, and the other territories of the United States.
    ``(s) The term `Adjacent Zone' means, with respect to any program, 
plan, lease sale, leased tract, or other activity proposed, conducted, 
or approved pursuant to the provisions of this Act, the portion of the 
outer Continental Shelf for which the laws of a particular Adjacent 
State are declared, pursuant to section 4(a)(2), to be the law of the 
United States.
    ``(t) The term `miles' means statute miles.
    ``(u) The term `coastline' has the same meaning as the term `coast 
line' as defined in section 2(c) of the Submerged Lands Act (43 U.S.C. 
1301(c)).
    ``(v) The term `Neighboring State' means a coastal State having a 
common boundary at the coastline with the Adjacent State.''; and
            (5) in paragraph (a), by inserting after ``control'' the 
        following: ``or lying within the United States exclusive 
        economic zone adjacent to the territories of the United 
        States''.

SEC. 205. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.

    Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1333(a)(2)(A)) is amended in the first sentence by striking ``, 
and the President'' and all that follows through the end of the 
sentence and inserting the following: ``. The lines extending seaward 
and defining each State's Adjacent Zone, and each OCS Planning Area, 
are as indicated on the maps for each outer Continental Shelf region 
entitled `Alaska OCS Region State Adjacent Zone and OCS Planning 
Areas', `Pacific OCS Region State Adjacent Zones and OCS Planning 
Areas', `Gulf of Mexico OCS Region State Adjacent Zones and OCS 
Planning Areas', and `Atlantic OCS Region State Adjacent Zones and OCS 
Planning Areas', all of which are dated September 2005 and on file in 
the Office of the Director, Minerals Management Service.''.

SEC. 206. ADMINISTRATION OF LEASING.

    Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) 
is amended by adding at the end the following:
    ``(k) Voluntary Partial Relinquishment of a Lease.--Any lessee of a 
producing lease may relinquish to the Secretary any portion of a lease 
that the lessee has no interest in producing and that the Secretary 
finds is geologically prospective. In return for any such 
relinquishment, the Secretary shall provide to the lessee a royalty 
incentive for the portion of the lease retained by the lessee, in 
accordance with regulations promulgated by the Secretary to carry out 
this subsection. The Secretary shall publish final regulations 
implementing this subsection within 365 days after the date of the 
enactment of the American Energy Production and Price Reduction Act.
    ``(l) Natural Gas Lease Regulations.--Not later than July 1, 2010, 
the Secretary shall publish a final regulation that shall--
            ``(1) establish procedures for entering into natural gas 
        leases;
            ``(2) ensure that natural gas leases are only available for 
        tracts on the outer Continental Shelf that are wholly within 
        100 miles of the coastline within an area withdrawn from 
        disposition by leasing on the day after the date of enactment 
        of the American Energy Production and Price Reduction Act;
            ``(3) provide that natural gas leases shall contain the 
        same rights and obligations established for oil and gas leases, 
        except as otherwise provided in the American Energy Production 
        and Price Reduction Act;
            ``(4) provide that, in reviewing the adequacy of bids for 
        natural gas leases, the value of any crude oil estimated to be 
        contained within any tract shall be excluded;
            ``(5) provide that any crude oil produced from a well and 
        reinjected into the leased tract shall not be subject to 
        payment of royalty, and that the Secretary shall consider, in 
        setting the royalty rates for a natural gas lease, the 
        additional cost to the lessee of not producing any crude oil; 
        and
            ``(6) provide that any Federal law that applies to an oil 
        and gas lease on the outer Continental Shelf shall apply to a 
        natural gas lease unless otherwise clearly inapplicable.''.

SEC. 207. GRANT OF LEASES BY SECRETARY.

    Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) 
is amended--
            (1) in subsection (a)(1) by inserting after the first 
        sentence the following: ``Further, the Secretary may grant 
        natural gas leases in a manner similar to the granting of oil 
        and gas leases and under the various bidding systems available 
        for oil and gas leases.'';
            (2) by adding at the end of subsection (b) the following: 
        ``The Secretary may issue more than one lease for a given tract 
        if each lease applies to a separate and distinct range of 
        vertical depths, horizontal surface area, or a combination of 
        the two. The Secretary may issue regulations that the Secretary 
        determines are necessary to manage such leases consistent with 
        the purposes of this Act.'';
            (3) by amending subsection (p)(2)(B) to read as follows:
                    ``(B) The Secretary shall provide for the payment 
                to coastal States, and their local coastal governments, 
                of 75 percent of Federal receipts from projects 
                authorized under this section located partially or 
                completely within the area extending seaward of State 
                submerged lands out to 4 marine leagues from the 
                coastline, and the payment to coastal States of 50 
                percent of the receipts from projects completely 
                located in the area more than 4 marine leagues from the 
                coastline. Payments shall be based on a formula 
                established by the Secretary by rulemaking no later 
                than 180 days after the date of the enactment of the 
                American Energy Production and Price Reduction Act that 
                provides for equitable distribution, based on proximity 
                to the project, among coastal States that have 
                coastline that is located within 200 miles of the 
                geographic center of the project.'';
            (4) by adding at the end the following:
    ``(q) Natural Gas Leases.--
            ``(1) Right to produce natural gas.--A lessee of a natural 
        gas lease shall have the right to produce the natural gas from 
        a field on a natural gas leased tract if the Secretary 
        estimates that the discovered field has at least 40 percent of 
        the economically recoverable Btu content of the field contained 
        within natural gas and such natural gas is economical to 
        produce.
            ``(2) Crude oil.--A lessee of a natural gas lease may not 
        produce crude oil from the lease unless the Governor of the 
        Adjacent State agrees to such production.
            ``(3) Estimates of btu content.--The Secretary shall make 
        estimates of the natural gas Btu content of discovered fields 
        on a natural gas lease only after the completion of at least 
        one exploration well, the data from which has been tied to the 
        results of a three-dimensional seismic survey of the field. The 
        Secretary may not require the lessee to further delineate any 
        discovered field prior to making such estimates.
            ``(4) Definition of natural gas.--For purposes of a natural 
        gas lease, natural gas means natural gas and all substances 
        produced in association with gas, including, but not limited 
        to, hydrocarbon liquids (other than crude oil) that are 
        obtained by the condensation of hydrocarbon vapors and separate 
        out in liquid form from the produced gas stream.
    ``(r) Removal of Restrictions on Joint Bidding in Certain Areas of 
the Outer Continental Shelf.--Restrictions on joint bidders shall no 
longer apply to tracts located in the Alaska OCS Region. Such 
restrictions shall not apply to tracts in other OCS regions determined 
to be `frontier tracts' or otherwise `high cost tracts' under final 
regulations that shall be published by the Secretary by not later than 
365 days after the date of the enactment of the American Energy 
Production and Price Reduction Act.
    ``(s) Royalty Suspension Provisions.--After the date of the 
enactment of the American Energy Production and Price Reduction Act, 
price thresholds shall apply to any royalty suspension volumes granted 
by the Secretary. Unless otherwise set by the Secretary by regulation 
or for a particular lease sale, the price thresholds shall be $40.50 
for oil (January 1, 2006 dollars) and $6.75 for natural gas (January 1, 
2006 dollars).
    ``(t) Conservation of Resources Fees.--Not later than one year 
after the date of the enactment of the American Energy Production and 
Price Reduction Act, the Secretary by regulation shall establish a 
conservation of resources fee for nonproducing leases that will apply 
to new and existing leases which shall be set at $3.75 per acre per 
year. This fee shall apply from and after October 1, 2008, and shall be 
treated as offsetting receipts.'';
            (5) by striking subsection (a)(3)(A) and redesignating the 
        subsequent subparagraphs as subparagraphs (A) and (B), 
        respectively;
            (6) in subsection (a)(3)(A) (as so redesignated) by 
        striking ``In the Western'' and all that follows through ``the 
        Secretary'' the first place it appears and inserting ``The 
        Secretary''; and
            (7) effective October 1, 2009, in subsection (g)--
                    (A) by striking all after ``(g)'', except paragraph 
                (3);
                    (B) by striking the last sentence of paragraph (3); 
                and
                    (C) by striking ``(3)''.

SEC. 208. DISPOSITION OF RECEIPTS.

    Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended--
            (1) by designating the existing text as subsection (a);
            (2) in subsection (a) (as so designated) by inserting ``, 
        if not paid as otherwise provided in this title'' after 
        ``receipts''; and
            (3) by adding the following:
    ``(b) Treatment of OCS Receipts From Tracts Completely Within 100 
Miles of the Coastline.--
            ``(1) Deposit.--The Secretary shall deposit into a separate 
        account in the Treasury the portion of OCS Receipts for each 
        fiscal year that will be shared under paragraphs (2), (3), and 
        (4).
            ``(2) Phased-in receipts sharing.--
                    ``(A) Beginning October 1, 2009, the Secretary 
                shall share OCS Receipts derived from the following 
                areas:
                            ``(i) Lease tracts located on portions of 
                        the Gulf of Mexico OCS Region completely beyond 
                        4 marine leagues from any coastline and 
                        completely within 100 miles of any coastline 
                        that were available for leasing under the 2002-
                        2007 5-Year OCS Oil and Gas Leasing Program.
                            ``(ii) Lease tracts in production prior to 
                        October 1, 2008, completely beyond 4 marine 
                        leagues from any coastline and completely 
                        within 100 miles of any coastline located on 
                        portions of the OCS that were not available for 
                        leasing under the 2002-2007 5-Year OCS Oil and 
                        Gas Leasing Program.
                            ``(iii) Lease tracts for which leases are 
                        issued prior to October 1, 2008, located in the 
                        Alaska OCS Region completely beyond 4 marine 
                        leagues from any coastline and completely 
                        within 100 miles of the coastline.
                    ``(B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases described 
                in subparagraph (A) derived during the fiscal year 
                indicated:
                            ``(i) For fiscal year 2010, 5 percent.
                            ``(ii) For fiscal year 2011, 10 percent.
                            ``(iii) For fiscal year 2012, 14 percent.
                            ``(iv) For fiscal year 2013, 19 percent.
                            ``(v) For fiscal year 2014, 23 percent.
                            ``(vi) For fiscal year 2015, 27 percent.
                            ``(vii) For fiscal year 2016, 31 percent.
                            ``(viii) For fiscal year 2017, 35 percent.
                            ``(ix) For fiscal year 2018, 39 percent.
                            ``(x) For fiscal year 2019, 43 percent.
                            ``(xi) For fiscal year 2020, 47 percent.
                            ``(xii) For fiscal year 2021 and each 
                        subsequent fiscal year, 50 percent.
                    ``(C) The provisions of this paragraph shall not 
                apply to leases that could not have been issued but for 
                section 5(k) of this Act or section 106(2) of the 
                American Energy Production and Price Reduction Act.
            ``(3) Immediate receipts sharing.--Beginning October 1, 
        2009, the Secretary shall share 50 percent of OCS Receipts 
        derived from all leases located completely beyond 4 marine 
        leagues from any coastline and completely within 100 miles of 
        any coastline not included within the provisions of paragraph 
        (2), and 100 percent of the balance of such OCS Receipts shall 
        be directed toward reducing the national deficit and if such a 
        deficit does not exist then the OCS Receipts shall be directed 
        toward reducing the national debt.
            ``(4) Receipts sharing from tracts within 4 marine leagues 
        of any coastline.--
                    ``(A) Areas described in paragraph (2).--Beginning 
                October 1, 2009, and continuing through September 30, 
                2011, the Secretary shall share 25 percent of OCS 
                Receipts derived from all leases located within 4 
                marine leagues from any coastline within areas 
                described in paragraph (2). For each fiscal year after 
                September 30, 2010, the Secretary shall increase the 
                percent shared in 5 percent increments each fiscal year 
                until the sharing rate for all leases located within 4 
                marine leagues from any coastline within areas 
                described in paragraph (2) becomes 75 percent.
                    ``(B) Areas not described in paragraph (2).--
                Beginning October 1, 2009, the Secretary shall share 75 
                percent of OCS Receipts derived from all leases located 
                completely or partially within 4 marine leagues from 
                any coastline within areas not described paragraph (2).
            ``(5) Allocations.--The Secretary shall allocate the OCS 
        Receipts deposited into the separate account established by 
        paragraph (1) that are shared under paragraphs (2), (3), and 
        (4) as follows:
                    ``(A) Bonus bids.--Deposits derived from bonus bids 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State.
                    ``(B) Royalties.--Deposits derived from royalties 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State and any other producing State or States 
                with a leased tract within its Adjacent Zone within 100 
                miles of its coastline that generated royalties during 
                the fiscal year, if the other producing States have a 
                coastline point within 300 miles of any portion of the 
                leased tract, in which case the amount allocated for 
                the leased tract shall be--
                            ``(i) one-third to the Adjacent State; and
                            ``(ii) two-thirds to each producing State, 
                        including the Adjacent State, inversely 
                        proportional to the distance between the 
                        nearest point on the coastline of the producing 
                        State and the geographic center of the leased 
                        tract.
    ``(c) Treatment of OCS Receipts From Tracts Partially or Completely 
Beyond 100 Miles of the Coastline.--
            ``(1) Deposit.--The Secretary shall deposit into a separate 
        account in the Treasury the portion of OCS Receipts for each 
        fiscal year that will be shared under paragraphs (2) and (3).
            ``(2) Phased-in receipts sharing.--
                    ``(A) Beginning October 1, 2009, the Secretary 
                shall share OCS Receipts derived from the following 
                areas:
                            ``(i) Lease tracts located on portions of 
                        the Gulf of Mexico OCS Region partially or 
                        completely beyond 100 miles of any coastline 
                        that were available for leasing under the 2002-
                        2007 5-Year OCS Oil and Gas Leasing Program.
                            ``(ii) Lease tracts in production prior to 
                        October 1, 2009, partially or completely beyond 
                        100 miles of any coastline located on portions 
                        of the OCS that were not available for leasing 
                        under the 2002-2007 5-Year OCS Oil and Gas 
                        Leasing Program.
                            ``(iii) Lease tracts for which leases are 
                        issued prior to October 1, 2009, located in the 
                        Alaska OCS Region partially or completely 
                        beyond 100 miles of the coastline.
                    ``(B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases described 
                in subparagraph (A) derived during the fiscal year 
                indicated:
                            ``(i) For fiscal year 2010, 5 percent.
                            ``(ii) For fiscal year 2011, 10 percent.
                            ``(iii) For fiscal year 2012, 14 percent.
                            ``(iv) For fiscal year 2013, 19 percent.
                            ``(v) For fiscal year 2014, 23 percent.
                            ``(vi) For fiscal year 2015, 27 percent.
                            ``(vii) For fiscal year 2016, 31 percent.
                            ``(viii) For fiscal year 2017, 35 percent.
                            ``(ix) For fiscal year 2018, 39 percent.
                            ``(x) For fiscal year 2019, 43 percent.
                            ``(xi) For fiscal year 2020, 47 percent.
                            ``(xii) For fiscal year 2021 and each 
                        subsequent fiscal year, 50 percent.
                    ``(C) The provisions of this paragraph shall not 
                apply to leases that could not have been issued but for 
                section 5(k) of this Act or section 106(2) of the 
                American Energy Production and Price Reduction Act.
            ``(3) Immediate receipts sharing.--Beginning October 1, 
        2009, the Secretary shall share 50 percent of OCS Receipts 
        derived on and after October 1, 2009, from all leases located 
        partially or completely beyond 100 miles of any coastline not 
        included within the provisions of paragraph (2), except that 
        the Secretary shall only share 25 percent of such OCS Receipts 
        derived from all such leases within a State's Adjacent Zone if 
        no leasing is allowed within any portion of that State's 
        Adjacent Zone located completely within 100 miles of any 
        coastline.
            ``(4) Allocations.--The Secretary shall allocate the OCS 
        Receipts deposited into the separate account established by 
        paragraph (1) that are shared under paragraphs (2) and (3) as 
        follows:
                    ``(A) Bonus bids.--Deposits derived from bonus bids 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State.
                    ``(B) Royalties.--Deposits derived from royalties 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State and any other producing State or States 
                with a leased tract within its Adjacent Zone partially 
                or completely beyond 100 miles of its coastline that 
                generated royalties during the fiscal year, if the 
                other producing State or States have a coastline point 
                within 300 miles of any portion of the leased tract, in 
                which case the amount allocated for the leased tract 
                shall be--
                            ``(i) one-third to the Adjacent State; and
                            ``(ii) two-thirds to each producing State, 
                        including the Adjacent State, inversely 
                        proportional to the distance between the 
                        nearest point on the coastline of the producing 
                        State and the geographic center of the leased 
                        tract.
    ``(d) Transmission of Allocations.--
            ``(1) In general.--Not later than 90 days after the end of 
        each fiscal year, the Secretary shall transmit--
                    ``(A) to each State 60 percent of such State's 
                allocations under subsections (b)(5)(A), (b)(5)(B), 
                (c)(4)(A), and (c)(4)(B) for the immediate prior fiscal 
                year;
                    ``(B) to each coastal county-equivalent and 
                municipal political subdivision of such State a total 
                of 40 percent of such State's allocations under 
                subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and 
                (c)(4)(B), together with all accrued interest thereon; 
                and
                    ``(C) the remaining allocations under subsections 
                (b)(5) and (c)(4), together with all accrued interest 
                thereon.
            ``(2) Allocations to coastal county-equivalent political 
        subdivisions.--The Secretary shall make an initial allocation 
        of the OCS Receipts to be shared under paragraph (1)(B) as 
        follows:
                    ``(A) 25 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely more than 25 miles landward of the coastline 
                and at least a part of which lies not more than 75 
                miles landward from the coastline, with the allocation 
                among such coastal county-equivalent political 
                subdivisions based on population.
                    ``(B) 75 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely or partially less than 25 miles landward of 
                the coastline, with the allocation among such coastal 
                county-equivalent political subdivisions to be further 
                allocated as follows:
                            ``(i) 25 percent shall be allocated based 
                        on the ratio of such coastal county-equivalent 
                        political subdivision's population to the 
                        coastal population of all coastal county-
                        equivalent political subdivisions in the State.
                            ``(ii) 25 percent shall be allocated based 
                        on the ratio of such coastal county-equivalent 
                        political subdivision's coastline miles to the 
                        coastline miles of all coastal county-
                        equivalent political subdivisions in the State 
                        as calculated by the Secretary. In such 
                        calculations, coastal county-equivalent 
                        political subdivisions without a coastline 
                        shall be considered to have 50 percent of the 
                        average coastline miles of the coastal county-
                        equivalent political subdivisions that do have 
                        coastlines.
                            ``(iii) 25 percent shall be allocated to 
                        all coastal county-equivalent political 
                        subdivisions having a coastline point within 
                        300 miles of the leased tract for which OCS 
                        Receipts are being shared based on a formula 
                        that allocates the funds based on such coastal 
                        county-equivalent political subdivision's 
                        relative distance from the leased tract.
                            ``(iv) 25 percent shall be allocated to all 
                        coastal county-equivalent political 
                        subdivisions having a coastline point within 
                        300 miles of the leased tract for which OCS 
                        Receipts are being shared based on the relative 
                        level of outer Continental Shelf oil and gas 
                        activities in a coastal political subdivision 
                        compared to the level of outer Continental 
                        Shelf activities in all coastal political 
                        subdivisions in the State. The Secretary shall 
                        define the term `outer Continental Shelf oil 
                        and gas activities' for purposes of this 
                        subparagraph to include, but not be limited to, 
                        construction of vessels, drillships, and 
                        platforms involved in exploration, production, 
                        and development on the outer Continental Shelf; 
                        support and supply bases, ports, and related 
                        activities; offices of geologists, 
                        geophysicists, engineers, and other 
                        professionals involved in support of 
                        exploration, production, and development of oil 
                        and gas on the outer Continental Shelf; 
                        pipelines and other means of transporting oil 
                        and gas production from the outer Continental 
                        Shelf; and processing and refining of oil and 
                        gas production from the outer Continental 
                        Shelf. For purposes of this subparagraph, if a 
                        coastal county-equivalent political subdivision 
                        does not have a coastline, its coastal point 
                        shall be the point on the coastline closest to 
                        it.
            ``(3) Allocations to coastal municipal political 
        subdivisions.--The initial allocation to each coastal county-
        equivalent political subdivision under paragraph (2) shall be 
        further allocated to the coastal county-equivalent political 
        subdivision and any coastal municipal political subdivisions 
        located partially or wholly within the boundaries of the 
        coastal county-equivalent political subdivision as follows:
                    ``(A) One-third shall be allocated to the coastal 
                county-equivalent political subdivision.
                    ``(B) Two-thirds shall be allocated on a per capita 
                basis to the municipal political subdivisions and the 
                county-equivalent political subdivision, with the 
                allocation to the latter based upon its population not 
                included within the boundaries of a municipal political 
                subdivision.
    ``(e) Investment of Deposits.--Amounts deposited under this section 
shall be invested by the Secretary of the Treasury in securities backed 
by the full faith and credit of the United States having maturities 
suitable to the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as determined 
by the Secretary of the Treasury.
    ``(f) Use of Funds.--A recipient of funds under this section may 
use the funds for one or more of the following:
            ``(1) To reduce in-State college tuition at public 
        institutions of higher learning and otherwise support public 
        education, including career technical education.
            ``(2) To make transportation infrastructure improvements.
            ``(3) To reduce taxes.
            ``(4) To promote, fund, and provide for--
                    ``(A) coastal or environmental restoration;
                    ``(B) fish, wildlife, and marine life habitat 
                enhancement;
                    ``(C) waterways construction and maintenance;
                    ``(D) levee construction and maintenance and shore 
                protection; and
                    ``(E) marine and oceanographic education and 
                research.
            ``(5) To promote, fund, and provide for--
                    ``(A) infrastructure associated with energy 
                production activities conducted on the outer 
                Continental Shelf;
                    ``(B) energy demonstration projects;
                    ``(C) supporting infrastructure for shore-based 
                energy projects;
                    ``(D) State geologic programs, including geologic 
                mapping and data storage programs, and State 
                geophysical data acquisition;
                    ``(E) State seismic monitoring programs, including 
                operation of monitoring stations;
                    ``(F) development of oil and gas resources through 
                enhanced recovery techniques;
                    ``(G) alternative energy development, including 
                biofuels, coal-to-liquids, oil shale, tar sands, 
                geothermal, geopressure, wind, waves, currents, hydro, 
                and other renewable energy;
                    ``(H) energy efficiency and conservation programs; 
                and
                    ``(I) front-end engineering and design for 
                facilities that produce liquid fuels from hydrocarbons 
                and other biological matter.
            ``(6) To promote, fund, and provide for--
                    ``(A) historic preservation programs and projects;
                    ``(B) natural disaster planning and response; and
                    ``(C) hurricane and natural disaster insurance 
                programs.
            ``(7) For any other purpose as determined by State law.
    ``(g) No Accounting Required.--No recipient of funds under this 
section shall be required to account to the Federal Government for the 
expenditure of such funds, except as otherwise may be required by law. 
However, States may enact legislation providing for accounting for and 
auditing of such expenditures. Further, funds allocated under this 
section to States and political subdivisions may be used as matching 
funds for other Federal programs.
    ``(h) Effect of Future Laws.--Enactment of any future Federal 
statute that has the effect, as determined by the Secretary, of 
restricting any Federal agency from spending appropriated funds, or 
otherwise preventing it from fulfilling its pre-existing 
responsibilities as of the date of enactment of the statute, unless 
such responsibilities have been reassigned to another Federal agency by 
the statute with no prevention of performance, to issue any permit or 
other approval impacting on the OCS oil and gas leasing program, or any 
lease issued thereunder, or to implement any provision of this Act 
shall automatically prohibit any sharing of OCS Receipts under this 
section directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Secretary shall 
make the determination of the existence of such restricting effects 
within 30 days of a petition by any outer Continental Shelf lessee or 
producing State.
    ``(i) Definitions.--In this section:
            ``(1) Coastal county-equivalent political subdivision.--The 
        term `coastal county-equivalent political subdivision' means a 
        political jurisdiction immediately below the level of State 
        government, including a county, parish, borough in Alaska, 
        independent municipality not part of a county, parish, or 
        borough in Alaska, or other equivalent subdivision of a coastal 
        State, that lies within the coastal zone.
            ``(2) Coastal municipal political subdivision.--The term 
        `coastal municipal political subdivision' means a municipality 
        located within and part of a county, parish, borough in Alaska, 
        or other equivalent subdivision of a State, all or part of 
        which coastal municipal political subdivision lies within the 
        coastal zone.
            ``(3) Coastal population.--The term `coastal population' 
        means the population of all coastal county-equivalent political 
        subdivisions, as determined by the most recent official data of 
        the Bureau of the Census.
            ``(4) Coastal zone.--The term `coastal zone' means that 
        portion of a coastal State, including the entire territory of 
        any coastal county-equivalent political subdivision at least a 
        part of which lies within 75 miles landward from the coastline, 
        or a greater distance as determined by State law enacted to 
        implement this section.
            ``(5) Bonus bids.--The term `bonus bids' means all funds 
        received by the Secretary to issue an outer Continental Shelf 
        minerals lease.
            ``(6) Royalties.--The term `royalties' means all funds 
        received by the Secretary from production of oil or natural 
        gas, or the sale of production taken in-kind, from an outer 
        Continental Shelf minerals lease.
            ``(7) Producing state.--The term `producing State' means an 
        Adjacent State having an Adjacent Zone containing leased tracts 
        from which OCS receipts were derived.
            ``(8) OCS receipts.--The term `OCS Receipts' means bonus 
        bids, royalties, and conservation of resources fees.''.

SEC. 209. RESERVATION OF LANDS AND RIGHTS.

    Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1341) is amended--
            (1) in subsection (a) by adding at the end the following: 
        ``The President may partially or completely revise or revoke 
        any prior withdrawal made by the President under the authority 
        of this section. The President may not revise or revoke a 
        withdrawal that is extended by a State under subsection (h), 
        nor may the President withdraw from leasing any area for which 
        a State failed to prohibit, or petition to prohibit, leasing 
        under subsection (g). Further, in the area of the outer 
        Continental Shelf more than 100 miles from any coastline, not 
        more than 25 percent of the acreage of any OCS Planning Area 
        may be withdrawn from leasing under this section at any point 
        in time. A withdrawal by the President may be for a term not to 
        exceed 10 years. When considering potential uses of the outer 
        Continental Shelf, to the maximum extent possible, the 
        President shall accommodate competing interests and potential 
        uses.'';
            (2) by adding at the end the following:
    ``(g) Availability for Leasing Within Certain Areas of the Outer 
Continental Shelf.--
            ``(1) Prohibition against leasing.--
                    ``(A) Unavailable for leasing without state 
                request.--Except as otherwise provided in this 
                subsection, from and after enactment of the American 
                Energy Production and Price Reduction Act, the 
                Secretary shall not offer for leasing for oil and gas, 
                or natural gas, any area within 50 miles of the 
                coastline that was withdrawn from disposition by 
                leasing in the Atlantic OCS Region or the Pacific OCS 
                Region, or the Gulf of Mexico OCS Region Eastern 
                Planning Area, as depicted on the maps referred to in 
                this subparagraph, under the `Memorandum on Withdrawal 
                of Certain Areas of the United States Outer Continental 
                Shelf from Leasing Disposition', 34 Weekly Comp. Pres. 
                Doc. 1111, dated June 12, 1998, or any area within 50 
                miles of the coastline not withdrawn under that 
                Memorandum that is included within the Gulf of Mexico 
                OCS Region Eastern Planning Area as indicated on the 
                map entitled `Gulf of Mexico OCS Region State Adjacent 
                Zones and OCS Planning Areas' or the Florida Straits 
                Planning Area as indicated on the map entitled 
                `Atlantic OCS Region State Adjacent Zones and OCS 
                Planning Areas', both of which are dated September 2005 
                and on file in the Office of the Director, Minerals 
                Management Service.
                    ``(B) Areas between 50 and 100 miles from the 
                coastline.--Unless an Adjacent State petitions under 
                subsection (h) within one year after the date of the 
                enactment of the American Energy Production and Price 
                Reduction Act for natural gas leasing or by June 30, 
                2010, for oil and gas leasing, the Secretary shall 
                offer for leasing any area more than 50 miles but less 
                than 100 miles from the coastline that was withdrawn 
                from disposition by leasing in the Atlantic OCS Region, 
                the Pacific OCS Region, or the Gulf of Mexico OCS 
                Region Eastern Planning Area, as depicted on the maps 
                referred to in this subparagraph, under the `Memorandum 
                on Withdrawal of Certain Areas of the United States 
                Outer Continental Shelf from Leasing Disposition', 34 
                Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, or 
                any area more than 50 miles but less than 100 miles of 
                the coastline not withdrawn under that Memorandum that 
                is included within the Gulf of Mexico OCS Region 
                Eastern Planning Area as indicated on the map entitled 
                `Gulf of Mexico OCS Region State Adjacent Zones and OCS 
                Planning Areas' or within the Florida Straits Planning 
                Area as indicated on the map entitled `Atlantic OCS 
                Region State Adjacent Zones and OCS Planning Areas', 
                both of which are dated September 2005 and on file in 
                the Office of the Director, Minerals Management 
                Service.
            ``(2) Petition for leasing.--
                    ``(A) In general.--The Governor of the State, upon 
                concurrence of its legislature, may submit to the 
                Secretary a petition requesting that the Secretary make 
                available any area that is within the State's Adjacent 
                Zone, included within the provisions of paragraph (1), 
                and that (i) is greater than 25 miles from any point on 
                the coastline of a Neighboring State for the conduct of 
                offshore leasing, pre-leasing, and related activities 
                with respect to natural gas leasing; or (ii) is greater 
                than 50 miles from any point on the coastline of a 
                Neighboring State for the conduct of offshore leasing, 
                pre-leasing, and related activities with respect to oil 
                and gas leasing. The Adjacent State may also petition 
                for leasing any other area within its Adjacent Zone if 
                leasing is allowed in the similar area of the Adjacent 
                Zone of the applicable Neighboring State, or if not 
                allowed, if the Neighboring State, acting through its 
                Governor, expresses its concurrence with the petition. 
                The Secretary shall only consider such a petition upon 
                making a finding that leasing is allowed in the similar 
                area of the Adjacent Zone of the applicable Neighboring 
                State or upon receipt of the concurrence of the 
                Neighboring State. The date of receipt by the Secretary 
                of such concurrence by the Neighboring State shall 
                constitute the date of receipt of the petition for that 
                area for which the concurrence applies.
                    ``(B) Limitations on leasing.--In its petition, a 
                State with an Adjacent Zone that contains leased tracts 
                may condition new leasing for oil and gas, or natural 
                gas for tracts within 25 miles of the coastline by--
                            ``(i) requiring a net reduction in the 
                        number of production platforms;
                            ``(ii) requiring a net increase in the 
                        average distance of production platforms from 
                        the coastline;
                            ``(iii) limiting permanent surface 
                        occupancy on new leases to areas that are more 
                        than 10 miles from the coastline;
                            ``(iv) limiting some tracts to being 
                        produced from shore or from platforms located 
                        on other tracts; or
                            ``(v) other conditions that the Adjacent 
                        State may deem appropriate as long as the 
                        Secretary does not determine that production is 
                        made economically or technically impracticable 
                        or otherwise impossible.
                    ``(C) Action by secretary.--Not later than 90 days 
                after receipt of a petition under subparagraph (A), the 
                Secretary shall approve the petition, unless the 
                Secretary determines that leasing the area would 
                probably cause serious harm or damage to the marine 
                resources of the State's Adjacent Zone. Prior to 
                approving the petition, the Secretary shall complete an 
                environmental assessment that documents the anticipated 
                environmental effects of leasing in the area included 
                within the scope of the petition.
                    ``(D) Failure to act.--If the Secretary fails to 
                approve or deny a petition in accordance with 
                subparagraph (C) the petition shall be considered to be 
                approved 90 days after receipt of the petition.
                    ``(E) Amendment of the 5-year leasing program.--
                Notwithstanding section 18, within 180 days of the 
                approval of a petition under subparagraph (C) or (D), 
                after the expiration of the time limits in paragraph 
                (1)(B), the Secretary shall amend the current 5-Year 
                Outer Continental Shelf Oil and Gas Leasing Program to 
                include a lease sale or sales for at least 75 percent 
                of the associated areas, unless there are, from the 
                date of approval, expiration of such time limits, as 
                applicable, fewer than 12 months remaining in the 
                current 5-Year Leasing Program in which case the 
                Secretary shall include the associated areas within 
                lease sales under the next 5-Year Leasing Program. For 
                purposes of amending the 5-Year Program in accordance 
                with this section, further consultations with States 
                shall not be required. For purposes of this section, an 
                environmental assessment performed under the provisions 
                of the National Environmental Policy Act of 1969 to 
                assess the effects of approving the petition shall be 
                sufficient to amend the 5-Year Leasing Program.
    ``(h) Option To Extend Withdrawal From Leasing Within Certain Areas 
of the Outer Continental Shelf.--A State, through its Governor and upon 
the concurrence of its legislature, may extend for a period of time of 
up to 5 years for each extension the withdrawal from leasing for all or 
part of any area within the State's Adjacent Zone located more than 50 
miles, but less than 100 miles, from the coastline that is subject to 
subsection (g)(1)(B). A State may extend multiple times for any 
particular area but not more than once per calendar year for any 
particular area. A State must prepare separate extensions, with 
separate votes by its legislature, for oil and gas leasing and for 
natural gas leasing. An extension by a State may affect some areas to 
be withdrawn from all leasing and some areas to be withdrawn only from 
one type of leasing.
    ``(i) Effect of Other Laws.--Adoption by any Adjacent State of any 
constitutional provision, or enactment of any State statute, that has 
the effect, as determined by the Secretary, of restricting either the 
Governor or the Legislature, or both, from exercising full discretion 
related to subsection (g) or (h), or both, shall automatically (1) 
prohibit any sharing of OCS Receipts under this Act with the Adjacent 
State, and its coastal political subdivisions, and (2) prohibit the 
Adjacent State from exercising any authority under subsection (h), for 
the duration of the restriction. The Secretary shall make the 
determination of the existence of such restricting constitutional 
provision or State statute within 30 days of a petition by any outer 
Continental Shelf lessee or coastal State.
    ``(j) Prohibition on Leasing East of the Military Mission Line.--
            ``(1) Notwithstanding any other provision of law, from and 
        after the enactment of the American Energy Production and Price 
        Reduction Act, prior to January 1, 2022, no area of the outer 
        Continental Shelf located in the Gulf of Mexico east of the 
        military mission line may be offered for leasing for oil and 
        gas or natural gas unless a waiver is issued by the Secretary 
        of Defense. If such a waiver is granted, 62.5 percent of the 
        OCS Receipts from a lease within such area issued because of 
        such waiver shall be paid annually to the National Guards of 
        all States having a point within 1,000 miles of such a lease, 
        allocated among the States on a per capita basis using the 
        entire population of such States.
            ``(2) In this subsection, the term `military mission line' 
        means a line located at 86 degrees, 41 minutes West Longitude, 
        and extending south from the coast of Florida to the outer 
        boundary of United States territorial waters in the Gulf of 
        Mexico.''.

SEC. 210. OUTER CONTINENTAL SHELF LEASING PROGRAM.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended--
            (1) in subsection (a), by adding at the end of paragraph 
        (3) the following: ``The Secretary shall, in each 5-Year 
        Program, include lease sales that when viewed as a whole 
        propose to offer for oil and gas or natural gas leasing at 
        least 75 percent of the available unleased acreage within each 
        OCS Planning Area. Available unleased acreage is that portion 
        of the outer Continental Shelf that is not under lease at the 
        time of the proposed lease sale, and has not otherwise been 
        made unavailable for leasing by law.'';
            (2) in subsection (c), by striking so much as precedes 
        paragraph (3) and inserting the following:
    ``(c)(1) During the preparation of any proposed leasing program 
under this section, the Secretary shall consider and analyze leasing 
throughout the entire outer Continental Shelf without regard to any 
other law affecting such leasing. During this preparation the Secretary 
shall invite and consider suggestions from any interested Federal 
agency, including the Attorney General, in consultation with the 
Federal Trade Commission, and from the Governor of any coastal State. 
The Secretary may also invite or consider any suggestions from the 
executive of any local government in a coastal State that have been 
previously submitted to the Governor of such State, and from any other 
person. Further, the Secretary shall consult with the Secretary of 
Defense regarding military operational needs in the outer Continental 
Shelf. The Secretary shall work with the Secretary of Defense to 
resolve any conflicts that might arise regarding offering any area of 
the outer Continental Shelf for oil and gas or natural gas leasing. If 
the Secretaries are not able to resolve all such conflicts, any 
unresolved issues shall be elevated to the President for resolution.
    ``(2) After the consideration and analysis required by paragraph 
(1), including the consideration of the suggestions received from any 
interested Federal agency, the Federal Trade Commission, the Governor 
of any coastal State, any local government of a coastal State, and any 
other person, the Secretary shall publish in the Federal Register a 
proposed leasing program accompanied by a draft environmental impact 
statement prepared pursuant to the National Environmental Policy Act of 
1969. After the publishing of the proposed leasing program and during 
the comment period provided for on the draft environmental impact 
statement, the Secretary shall submit a copy of the proposed program to 
the Governor of each affected State for review and comment. The 
Governor may solicit comments from those executives of local 
governments in the Governor's State that the Governor, in the 
discretion of the Governor, determines will be affected by the proposed 
program. If any comment by such Governor is received by the Secretary 
at least 15 days prior to submission to the Congress pursuant to 
paragraph (3) and includes a request for any modification of such 
proposed program, the Secretary shall reply in writing, granting or 
denying such request in whole or in part, or granting such request in 
such modified form as the Secretary considers appropriate, and stating 
the Secretary's reasons therefor. All such correspondence between the 
Secretary and the Governor of any affected State, together with any 
additional information and data relating thereto, shall accompany such 
proposed program when it is submitted to the Congress.''; and
            (3) by adding at the end the following:
    ``(i) Projection of State Adjacent Zone Resources and State and 
Local Government Shares of OCS Receipts.--Concurrent with the 
publication of the scoping notice at the beginning of the development 
of each 5-Year Outer Continental Shelf Oil and Gas Leasing Program, or 
as soon thereafter as possible, the Secretary shall--
            ``(1) provide to each Adjacent State a current estimate of 
        proven and potential oil and gas resources located within the 
        State's Adjacent Zone; and
            ``(2) provide to each Adjacent State, and coastal political 
        subdivisions thereof, a best-efforts projection of the OCS 
        Receipts that the Secretary expects will be shared with each 
        Adjacent State, and its coastal political subdivisions, using 
        the assumption that the unleased tracts within the State's 
        Adjacent Zone are fully made available for leasing, including 
        long-term projected OCS Receipts. In addition, the Secretary 
        shall include a macroeconomic estimate of the impact of such 
        leasing on the national economy and each State's economy, 
        including investment, jobs, revenues, personal income, and 
        other categories.''.

SEC. 211. COORDINATION WITH ADJACENT STATES.

    Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1345) is amended--
            (1) in subsection (a) in the first sentence by inserting 
        ``, for any tract located within the Adjacent State's Adjacent 
        Zone,'' after ``government''; and
            (2) by adding the following:
    ``(f)(1) No Federal agency may permit or otherwise approve, without 
the concurrence of the Adjacent State, the construction of a crude oil 
or petroleum products (or both) pipeline within the part of the 
Adjacent State's Adjacent Zone that is withdrawn from oil and gas or 
natural gas leasing, except that such a pipeline may be approved, 
without such Adjacent State's concurrence, to pass through such 
Adjacent Zone if at least 50 percent of the production projected to be 
carried by the pipeline within its first 10 years of operation is from 
areas of the Adjacent State's Adjacent Zone.
    ``(2) No State may prohibit the construction within its Adjacent 
Zone or its State waters of a natural gas pipeline that will transport 
natural gas produced from the outer Continental Shelf. However, an 
Adjacent State may prevent a proposed natural gas pipeline landing 
location if it proposes two alternate landing locations in the Adjacent 
State, acceptable to the Adjacent State, located within 50 miles on 
either side of the proposed landing location.''.

SEC. 212. ENVIRONMENTAL STUDIES.

    Section 20(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1346) is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following:
            ``(2) For all programs, lease sales, leases, and actions 
        under this Act, the following shall apply regarding the 
        application of the National Environmental Policy Act of 1969:
                    ``(A) Granting or directing lease suspensions and 
                the conduct of all preliminary activities on outer 
                Continental Shelf tracts, including seismic activities, 
                are categorically excluded from the need to prepare 
                either an environmental assessment or an environmental 
                impact statement, and the Secretary shall not be 
                required to analyze whether any exceptions to a 
                categorical exclusion apply for activities conducted 
                under the authority of this Act.
                    ``(B) The environmental impact statement developed 
                in support of each 5-Year Oil and Gas Leasing Program 
                provides the environmental analysis for all lease sales 
                to be conducted under the program and such sales shall 
                not be subject to further environmental analysis.
                    ``(C) Exploration plans shall not be subject to any 
                requirement to prepare an environmental impact 
                statement, and the Secretary may find that exploration 
                plans are eligible for categorical exclusion due to the 
                impacts already being considered within an 
                environmental impact statement or due to mitigation 
                measures included within the plan.
                    ``(D) Within each OCS Planning Area, after the 
                preparation of the first development and production 
                plan environmental impact statement for a leased tract 
                within the Area, future development and production 
                plans for leased tracts within the Area shall only 
                require the preparation of an environmental assessment 
                unless the most recent development and production plan 
                environmental impact statement within the Area was 
                finalized more than 10 years prior to the date of the 
                approval of the plan, in which case an environmental 
                impact statement shall be required.''.

SEC. 213. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.

    (a) In General.--No Federal agency may permit construction or 
operation (or both) of any facility, or designate or maintain a 
restricted transportation corridor or operating area on the Federal 
outer Continental Shelf or in State waters, that will be incompatible 
with, as determined by the Secretary of the Interior, oil and gas or 
natural gas leasing and substantially full exploration and production 
of tracts that are geologically prospective for oil or natural gas (or 
both).
    (b) Exceptions.--Subsection (a) shall not apply to any facility, 
transportation corridor, or operating area the construction, operation, 
designation, or maintenance of which is or will be--
            (1) located in an area of the outer Continental Shelf that 
        is unavailable for oil and gas or natural gas leasing by 
        operation of law;
            (2) used for a military readiness activity (as defined in 
        section 315(f) of Public Law 107-314; 16 U.S.C. 703 note); or
            (3) required in the national interest, as determined by the 
        President.

SEC. 214. REPURCHASE OF CERTAIN LEASES.

    (a) Authority To Repurchase and Cancel Certain Leases.--The 
Secretary of the Interior shall repurchase and cancel any Federal oil 
and gas, geothermal, coal, oil shale, tar sands, or other mineral 
lease, whether onshore or offshore, but not including any outer 
Continental Shelf oil and gas leases that were subject to litigation in 
the Court of Federal Claims on January 1, 2006, if the Secretary finds 
that such lease qualifies for repurchase and cancellation under the 
regulations authorized by this section.
    (b) Regulations.--Not later than 365 days after the date of the 
enactment of this Act, the Secretary shall publish a final regulation 
stating the conditions under which a lease referred to in subsection 
(a) would qualify for repurchase and cancellation, and the process to 
be followed regarding repurchase and cancellation. Such regulation 
shall include, but not be limited to, the following:
            (1) The Secretary shall repurchase and cancel a lease after 
        written request by the lessee upon a finding by the Secretary 
        that--
                    (A) a request by the lessee for a required permit 
                or other approval complied with applicable law, except 
                the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
                et seq.), and terms of the lease and such permit or 
                other approval was denied;
                    (B) a Federal agency failed to act on a request by 
                the lessee for a required permit, other approval, or 
                administrative appeal within a regulatory or statutory 
                timeframe associated with the requested action, whether 
                advisory or mandatory, or if none, within 180 days; or
                    (C) a Federal agency attached a condition of 
                approval, without agreement by the lessee, to a 
                required permit or other approval if such condition of 
                approval was not mandated by Federal statute or 
                regulation in effect on the date of lease issuance, or 
                was not specifically allowed under the terms of the 
                lease.
            (2) A lessee shall not be required to exhaust 
        administrative remedies regarding a permit request, 
        administrative appeal, or other required request for approval 
        for the purposes of this section.
            (3) The Secretary shall make a final agency decision on a 
        request by a lessee under this section within 180 days of 
        request.
            (4) Compensation to a lessee to repurchase and cancel a 
        lease under this section shall be the amount that a lessee 
        would receive in a restitution case for a material breach of 
        contract.
            (5) Compensation shall be in the form of a check or 
        electronic transfer from the Department of the Treasury from 
        funds deposited into miscellaneous receipts under the authority 
        of the same Act that authorized the issuance of the lease being 
        repurchased.
            (6) Failure of the Secretary to make a final agency 
        decision on a request by a lessee under this section within 180 
        days of request shall result in a 10 percent increase in the 
        compensation due to the lessee if the lease is ultimately 
        repurchased.
    (c) No Prejudice.--This section shall not be interpreted to 
prejudice any other rights that the lessee would have in the absence of 
this section.

SEC. 215. OFFSITE ENVIRONMENTAL MITIGATION.

    Notwithstanding any other provision of law, any person conducting 
activities under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the 
Geothermal Steam Act (30 U.S.C. 1001 et seq.), the Mineral Leasing Act 
for Acquired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 U.S.C. 
552 et seq.), the General Mining Act of 1872 (30 U.S.C. 22 et seq.), 
the Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in satisfying 
any mitigation requirements associated with such activities propose 
mitigation measures on a site away from the area impacted and the 
Secretary of the Interior shall accept these proposed measures if the 
Secretary finds that they generally achieve the purposes for which 
mitigation measures appertained.

SEC. 216. OCS REGIONAL HEADQUARTERS.

    Not later than July 1, 2010, the Secretary of the Interior shall 
establish the headquarters for the Atlantic OCS Region, the 
headquarters for the Gulf of Mexico OCS Region, and the headquarters 
for the Pacific OCS Region within a State bordering the Atlantic OCS 
Region, a State bordering the Gulf of Mexico OCS Region, and a State 
bordering the Pacific OCS Region, respectively, from among the States 
bordering those Regions, that petitions by no later than January 1, 
2010, for leasing, for oil and gas or natural gas, covering at least 40 
percent of the area of its Adjacent Zone within 100 miles of the 
coastline. Such Atlantic and Pacific OCS Regions headquarters shall be 
located within 25 miles of the coastline and each MMS OCS regional 
headquarters shall be the permanent duty station for all Minerals 
Management Service personnel that on a daily basis spend on average 60 
percent or more of their time in performance of duties in support of 
the activities of the respective Region, except that the Minerals 
Management Service may house regional inspection staff in other 
locations. Each OCS Region shall each be led by a Regional Director who 
shall be an employee within the Senior Executive Service.

SEC. 217. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF CALIFORNIA OR 
              FLORIDA.

    (a) Authorization To Cancel and Exchange Certain Existing Oil and 
Gas Leases; Prohibition on Submittal of Exploration Plans for Certain 
Leases Prior to June 30, 2012.--
            (1) Authority.--Within 2 years after the date of enactment 
        of this Act, the lessee of an existing oil and gas lease for an 
        area located completely within 100 miles of the coastline 
        within the California or Florida Adjacent Zones shall have the 
        option, without compensation, of exchanging such lease for a 
        new oil and gas lease having a primary term of 5 years. For the 
        area subject to the new lease, the lessee may select any 
        unleased tract on the outer Continental Shelf that is in an 
        area available for leasing. Further, with the permission of the 
        relevant Governor, such a lessee may convert its existing oil 
        and gas lease into a natural gas lease having a primary term of 
        5 years and covering the same area as the existing lease or 
        another area within the same State's Adjacent Zone within 100 
        miles of the coastline.
            (2) Administrative process.--The Secretary of the Interior 
        shall establish a reasonable administrative process to 
        implement paragraph (1). Exchanges and conversions under 
        subsection (a), including the issuance of new leases, shall not 
        be considered to be major Federal actions for purposes of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.). Further, such actions conducted in accordance with this 
        section are deemed to be in compliance all provisions of the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).
            (3) Operating restrictions.--A new lease issued in exchange 
        for an existing lease under this section shall be subject to 
        such national defense operating stipulations on the OCS tract 
        covered by the new lease as may be applicable upon issuance.
            (4) Priority.--The Secretary shall give priority in the 
        lease exchange process based on the amount of the original 
        bonus bid paid for the issuance of each lease to be exchanged. 
        The Secretary shall allow leases covering partial tracts to be 
        exchanged for leases covering full tracts conditioned upon 
        payment of additional bonus bids on a per-acre basis as 
        determined by the average per acre of the original bonus bid 
        per acre for the partial tract being exchanged.
            (5) Exploration plans.--Any exploration plan submitted to 
        the Secretary of the Interior after the date of the enactment 
        of this Act and before July 1, 2012, for an oil and gas lease 
        for an area wholly within 100 miles of the coastline within the 
        California Adjacent Zone or Florida Adjacent Zone shall not be 
        treated as received by the Secretary until the earlier of July 
        1, 2012, or the date on which a petition by the Adjacent State 
        for oil and gas leasing covering the area within which is 
        located the area subject to the oil and gas lease was approved.
    (b) Further Lease Cancellation and Exchange Provisions.--
            (1) Cancellation of lease.--As part of the lease exchange 
        process under this section, the Secretary shall cancel a lease 
        that is exchanged under this section.
            (2) Consent of lessees.--All lessees holding an interest in 
        a lease must consent to cancellation of their leasehold 
        interests in order for the lease to be cancelled and exchanged 
        under this section.
            (3) Waiver of rights.--As a prerequisite to the exchange of 
        a lease under this section, the lessee must waive any rights to 
        bring any litigation against the United States related to the 
        transaction.
            (4) Plugging and abandonment.--The plugging and abandonment 
        requirements for any wells located on any lease to be cancelled 
        and exchanged under this section must be complied with by the 
        lessees prior to the cancellation and exchange.
    (c) Area Partially Within 100 Miles of Florida.--An existing oil 
and gas lease for an area located partially within 100 miles of the 
coastline within the Florida Adjacent Zone may only be developed and 
produced using wells drilled from well-head locations at least 100 
miles from the coastline to any bottom-hole location on the area of the 
lease. This subsection shall not apply if Florida has petitioned for 
leasing closer to the coastline than 100 miles.
    (d) Existing Oil and Gas Lease Defined.--In this section the term 
``existing oil and gas lease'' means an oil and gas lease in effect on 
the date of the enactment of this Act.

SEC. 218. COASTAL IMPACT ASSISTANCE.

    Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1356a) is repealed.

SEC. 219. REPEAL OF THE GULF OF MEXICO ENERGY SECURITY ACT OF 2006.

    The Gulf of Mexico Energy Security Act of 2006 is repealed 
effective October 1, 2008.

                            Subtitle B--ANWR

SEC. 231. SHORT TITLE.

    This subtitle may be cited as the ``American Energy Independence 
and Price Reduction Act''.

SEC. 232. DEFINITIONS.

    In this subtitle:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area described in appendix I to part 37 of title 50, Code of 
        Federal Regulations.
            (2) Secretary.--The term ``Secretary'', except as otherwise 
        provided, means the Secretary of the Interior or the 
        Secretary's designee.

SEC. 233. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

    (a) In General.--The Secretary shall take such actions as are 
necessary--
            (1) to establish and implement, in accordance with this 
        subtitle and acting through the Director of the Bureau of Land 
        Management in consultation with the Director of the United 
        States Fish and Wildlife Service, a competitive oil and gas 
        leasing program that will result in an environmentally sound 
        program for the exploration, development, and production of the 
        oil and gas resources of the Coastal Plain; and
            (2) to administer the provisions of this subtitle through 
        regulations, lease terms, conditions, restrictions, 
        prohibitions, stipulations, and other provisions that ensure 
        the oil and gas exploration, development, and production 
        activities on the Coastal Plain will result in no significant 
        adverse effect on fish and wildlife, their habitat, subsistence 
        resources, and the environment, including, in furtherance of 
        this goal, by requiring the application of the best 
        commercially available technology for oil and gas exploration, 
        development, and production to all exploration, development, 
        and production operations under this subtitle in a manner that 
        ensures the receipt of fair market value by the public for the 
        mineral resources to be leased.
    (b) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
            (2) Conforming amendment.--The table of contents in section 
        1 of such Act is amended by striking the item relating to 
        section 1003.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
        seq.), the oil and gas leasing program and activities 
        authorized by this section in the Coastal Plain are deemed to 
        be compatible with the purposes for which the Arctic National 
        Wildlife Refuge was established, and no further findings or 
        decisions are required to implement this determination.
            (2) Adequacy of the department of the interior's 
        legislative environmental impact statement.--The ``Final 
        Legislative Environmental Impact Statement'' (April 1987) on 
        the Coastal Plain prepared pursuant to section 1002 of the 
        Alaska National Interest Lands Conservation Act of 1980 (16 
        U.S.C. 3142) and section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
        deemed to satisfy the requirements under the National 
        Environmental Policy Act of 1969 that apply with respect to 
        prelease activities, including actions authorized to be taken 
        by the Secretary to develop and promulgate the regulations for 
        the establishment of a leasing program authorized by this 
        subtitle before the conduct of the first lease sale.
            (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this subtitle, the 
        Secretary shall prepare an environmental impact statement under 
        the National Environmental Policy Act of 1969 with respect to 
        the actions authorized by this subtitle that are not referred 
        to in paragraph (2). Notwithstanding any other law, the 
        Secretary is not required to identify nonleasing alternative 
        courses of action or to analyze the environmental effects of 
        such courses of action. The Secretary shall only identify a 
        preferred action for such leasing and a single leasing 
        alternative, and analyze the environmental effects and 
        potential mitigation measures for those two alternatives. The 
        identification of the preferred action and related analysis for 
        the first lease sale under this subtitle shall be completed 
        within 18 months after the date of enactment of this Act. The 
        Secretary shall only consider public comments that specifically 
        address the Secretary's preferred action and that are filed 
        within 20 days after publication of an environmental analysis. 
        Notwithstanding any other law, compliance with this paragraph 
        is deemed to satisfy all requirements for the analysis and 
        consideration of the environmental effects of proposed leasing 
        under this subtitle.
    (d) Relationship to State and Local Authority.--Nothing in this 
subtitle shall be considered to expand or limit State and local 
regulatory authority.
    (e) Special Areas.--
            (1) In general.--The Secretary, after consultation with the 
        State of Alaska, the city of Kaktovik, and the North Slope 
        Borough, may designate up to a total of 45,000 acres of the 
        Coastal Plain as a Special Area if the Secretary determines 
        that the Special Area is of such unique character and interest 
        so as to require special management and regulatory protection. 
        The Secretary shall designate as such a Special Area the 
        Sadlerochit Spring area, comprising approximately 4,000 acres.
            (2) Management.--Each such Special Area shall be managed so 
        as to protect and preserve the area's unique and diverse 
        character including its fish, wildlife, and subsistence 
        resource values.
            (3) Exclusion from leasing or surface occupancy.--The 
        Secretary may exclude any Special Area from leasing. If the 
        Secretary leases a Special Area, or any part thereof, for 
        purposes of oil and gas exploration, development, production, 
        and related activities, there shall be no surface occupancy of 
        the lands comprising the Special Area.
            (4) Directional drilling.--Notwithstanding the other 
        provisions of this subsection, the Secretary may lease all or a 
        portion of a Special Area under terms that permit the use of 
        horizontal drilling technology from sites on leases located 
        outside the Special Area.
    (f) Limitation on Closed Areas.--The Secretary's sole authority to 
close lands within the Coastal Plain to oil and gas leasing and to 
exploration, development, and production is that set forth in this 
subtitle.
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this subtitle, 
        including rules and regulations relating to protection of the 
        fish and wildlife, their habitat, subsistence resources, and 
        environment of the Coastal Plain, by no later than 15 months 
        after the date of enactment of this Act.
            (2) Revision of regulations.--The Secretary shall 
        periodically review and, if appropriate, revise the rules and 
        regulations issued under subsection (a) to reflect any 
        significant biological, environmental, or engineering data that 
        come to the Secretary's attention.

SEC. 234. LEASE SALES.

    (a) In General.--Lands may be leased pursuant to this subtitle to 
any person qualified to obtain a lease for deposits of oil and gas 
under the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Coastal Plain for inclusion in, or exclusion (as 
        provided in subsection (c)) from, a lease sale;
            (2) the holding of lease sales after such nomination 
        process; and
            (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this subtitle shall 
be by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--In the first lease sale under 
this subtitle, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) conduct the first lease sale under this subtitle within 
        22 months after the date of the enactment of this Act;
            (2) evaluate the bids in such sale and issue leases 
        resulting from such sale, within 90 days after the date of the 
        completion of such sale; and
            (3) conduct additional sales so long as sufficient interest 
        in development exists to warrant, in the Secretary's judgment, 
        the conduct of such sales.

SEC. 235. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--The Secretary may grant to the highest responsible 
qualified bidder in a lease sale conducted pursuant to section 134 any 
lands to be leased on the Coastal Plain upon payment by the lessee of 
such bonus as may be accepted by the Secretary.
    (b) Subsequent Transfers.--No lease issued under this subtitle may 
be sold, exchanged, assigned, sublet, or otherwise transferred except 
with the approval of the Secretary. Prior to any such approval the 
Secretary shall consult with, and give due consideration to the views 
of, the Attorney General.

SEC. 236. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this 
subtitle shall--
            (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent in amount or value of the production removed or 
        sold from the lease, as determined by the Secretary under the 
        regulations applicable to other Federal oil and gas leases;
            (2) provide that the Secretary may close, on a seasonal 
        basis, portions of the Coastal Plain to exploratory drilling 
        activities as necessary to protect caribou calving areas and 
        other species of fish and wildlife;
            (3) require that the lessee of lands within the Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of lands within the Coastal Plain and any other Federal lands 
        that are adversely affected in connection with exploration, 
        development, production, or transportation activities conducted 
        under the lease and within the Coastal Plain by the lessee or 
        by any of the subcontractors or agents of the lessee;
            (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, the reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
            (5) provide that the standard of reclamation for lands 
        required to be reclaimed under this subtitle shall be, as 
        nearly as practicable, a condition capable of supporting the 
        uses which the lands were capable of supporting prior to any 
        exploration, development, or production activities, or upon 
        application by the lessee, to a higher or better use as 
        approved by the Secretary;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, their habitat, subsistence resources, and 
        the environment as required pursuant to section 133(a)(2);
            (7) provide that the lessee, its agents, and its 
        contractors use best efforts to provide a fair share, as 
        determined by the level of obligation previously agreed to in 
        the 1974 agreement implementing section 29 of the Federal 
        Agreement and Grant of Right of Way for the Operation of the 
        Trans-Alaska Pipeline, of employment and contracting for Alaska 
        Natives and Alaska Native Corporations from throughout the 
        State;
            (8) prohibit the export of oil produced under the lease; 
        and
            (9) contain such other provisions as the Secretary 
        determines necessary to ensure compliance with the provisions 
        of this subtitle and the regulations issued under this 
        subtitle.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this subtitle and in recognizing the 
Government's proprietary interest in labor stability and in the ability 
of construction labor and management to meet the particular needs and 
conditions of projects to be developed under the leases issued pursuant 
to this subtitle and the special concerns of the parties to such 
leases, shall require that the lessee and its agents and contractors 
negotiate to obtain a project labor agreement for the employment of 
laborers and mechanics on production, maintenance, and construction 
under the lease.

SEC. 237. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard To Govern Authorized 
Coastal Plain Activities.--The Secretary shall, consistent with the 
requirements of section 133, administer the provisions of this subtitle 
through regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other provisions that--
            (1) ensure the oil and gas exploration, development, and 
        production activities on the Coastal Plain will result in no 
        significant adverse effect on fish and wildlife, their habitat, 
        and the environment;
            (2) require the application of the best commercially 
        available technology for oil and gas exploration, development, 
        and production on all new exploration, development, and 
        production operations; and
            (3) ensure that the maximum amount of surface acreage 
        covered by production and support facilities, including 
        airstrips and any areas covered by gravel berms or piers for 
        support of pipelines, does not exceed 2,000 acres on the 
        Coastal Plain.
    (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
also require, with respect to any proposed drilling and related 
activities, that--
            (1) a site-specific analysis be made of the probable 
        effects, if any, that the drilling or related activities will 
        have on fish and wildlife, their habitat, subsistence 
        resources, and the environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the extent practicable) any significant 
        adverse effect identified under paragraph (1); and
            (3) the development of the plan shall occur after 
        consultation with the agency or agencies having jurisdiction 
        over matters mitigated by the plan.
    (c) Regulations To Protect Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this subtitle, the Secretary shall 
prepare and promulgate regulations, lease terms, conditions, 
restrictions, prohibitions, stipulations, and other measures designed 
to ensure that the activities undertaken on the Coastal Plain under 
this subtitle are conducted in a manner consistent with the purposes 
and environmental requirements of this subtitle.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this subtitle shall require compliance with all applicable 
provisions of Federal and State environmental law, and shall also 
require the following:
            (1) Standards at least as effective as the safety and 
        environmental mitigation measures set forth in items 1 through 
        29 at pages 167 through 169 of the ``Final Legislative 
        Environmental Impact Statement'' (April 1987) on the Coastal 
        Plain.
            (2) Seasonal limitations on exploration, development, and 
        related activities, where necessary, to avoid significant 
        adverse effects during periods of concentrated fish and 
        wildlife breeding, denning, nesting, spawning, and migration.
            (3) That exploration activities, except for surface 
        geological studies, be limited to the period between 
        approximately November 1 and May 1 each year and that 
        exploration activities shall be supported, if necessary, by ice 
        roads, winter trails with adequate snow cover, ice pads, ice 
        airstrips, and air transport methods, except that such 
        exploration activities may occur at other times if the 
        Secretary finds that such exploration will have no significant 
        adverse effect on the fish and wildlife, their habitat, and the 
        environment of the Coastal Plain.
            (4) Design safety and construction standards for all 
        pipelines and any access and service roads, that--
                    (A) minimize, to the maximum extent possible, 
                adverse effects upon the passage of migratory species 
                such as caribou; and
                    (B) minimize adverse effects upon the flow of 
                surface water by requiring the use of culverts, 
                bridges, and other structural devices.
            (5) Prohibitions on general public access and use on all 
        pipeline access and service roads.
            (6) Stringent reclamation and rehabilitation requirements, 
        consistent with the standards set forth in this subtitle, 
        requiring the removal from the Coastal Plain of all oil and gas 
        development and production facilities, structures, and 
        equipment upon completion of oil and gas production operations, 
        except that the Secretary may exempt from the requirements of 
        this paragraph those facilities, structures, or equipment that 
        the Secretary determines would assist in the management of the 
        Arctic National Wildlife Refuge and that are donated to the 
        United States for that purpose.
            (7) Appropriate prohibitions or restrictions on access by 
        all modes of transportation.
            (8) Appropriate prohibitions or restrictions on sand and 
        gravel extraction.
            (9) Consolidation of facility siting.
            (10) Appropriate prohibitions or restrictions on use of 
        explosives.
            (11) Avoidance, to the extent practicable, of springs, 
        streams, and river systems; the protection of natural surface 
        drainage patterns, wetlands, and riparian habitats; and the 
        regulation of methods or techniques for developing or 
        transporting adequate supplies of water for exploratory 
        drilling.
            (12) Avoidance or minimization of air traffic-related 
        disturbance to fish and wildlife.
            (13) Treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including an annual waste management 
        report, a hazardous materials tracking system, and a 
        prohibition on chlorinated solvents, in accordance with 
        applicable Federal and State environmental law.
            (14) Fuel storage and oil spill contingency planning.
            (15) Research, monitoring, and reporting requirements.
            (16) Field crew environmental briefings.
            (17) Avoidance of significant adverse effects upon 
        subsistence hunting, fishing, and trapping by subsistence 
        users.
            (18) Compliance with applicable air and water quality 
        standards.
            (19) Appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited.
            (20) Reasonable stipulations for protection of cultural and 
        archeological resources.
            (21) All other protective environmental stipulations, 
        restrictions, terms, and conditions deemed necessary by the 
        Secretary.
    (e) Considerations.--In preparing and promulgating regulations, 
lease terms, conditions, restrictions, prohibitions, and stipulations 
under this section, the Secretary shall consider the following:
            (1) The stipulations and conditions that govern the 
        National Petroleum Reserve-Alaska leasing program, as set forth 
        in the 1999 Northeast National Petroleum Reserve-Alaska Final 
        Integrated Activity Plan/Environmental Impact Statement.
            (2) The environmental protection standards that governed 
        the initial Coastal Plain seismic exploration program under 
        parts 37.31 to 37.33 of title 50, Code of Federal Regulations.
            (3) The land use stipulations for exploratory drilling on 
        the KIC-ASRC private lands that are set forth in appendix 2 of 
        the August 9, 1983, agreement between Arctic Slope Regional 
        Corporation and the United States.
    (f) Facility Consolidation Planning.--
            (1) In general.--The Secretary shall, after providing for 
        public notice and comment, prepare and update periodically a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of Coastal Plain oil and gas resources.
            (2) Objectives.--The plan shall have the following 
        objectives:
                    (A) Avoiding unnecessary duplication of facilities 
                and activities.
                    (B) Encouraging consolidation of common facilities 
                and activities.
                    (C) Locating or confining facilities and activities 
                to areas that will minimize impact on fish and 
                wildlife, their habitat, and the environment.
                    (D) Utilizing existing facilities wherever 
                practicable.
                    (E) Enhancing compatibility between wildlife values 
                and development activities.
    (g) Access to Public Lands.--The Secretary shall--
            (1) manage public lands in the Coastal Plain subject to 
        subsections (a) and (b) of section 811 of the Alaska National 
        Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public lands in the Coastal Plain for traditional 
        uses.

SEC. 238. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaint.--
            (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this subtitle or 
        any action of the Secretary under this subtitle shall be 
        filed--
                    (A) except as provided in subparagraph (B), within 
                the 90-day period beginning on the date of the action 
                being challenged; or
                    (B) in the case of a complaint based solely on 
                grounds arising after such period, within 90 days after 
                the complainant knew or reasonably should have known of 
                the grounds for the complaint.
            (2) Venue.--Any complaint seeking judicial review of any 
        provision of this subtitle or any action of the Secretary under 
        this subtitle may be filed only in the United States Court of 
        Appeals for the District of Columbia.
            (3) Limitation on scope of certain review.--Judicial review 
        of a Secretarial decision to conduct a lease sale under this 
        subtitle, including the environmental analysis thereof, shall 
        be limited to whether the Secretary has complied with the terms 
        of this subtitle and shall be based upon the administrative 
        record of that decision. The Secretary's identification of a 
        preferred course of action to enable leasing to proceed and the 
        Secretary's analysis of environmental effects under this 
        subtitle shall be presumed to be correct unless shown otherwise 
        by clear and convincing evidence to the contrary.
    (b) Limitation on Other Review.--Actions of the Secretary with 
respect to which review could have been obtained under this section 
shall not be subject to judicial review in any civil or criminal 
proceeding for enforcement.

SEC. 239. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

    (a) In General.--Notwithstanding any other provision of law, of the 
amount of adjusted bonus, rental, and royalty revenues from Federal oil 
and gas leasing and operations authorized under this subtitle--
            (1) 50 percent shall be paid to the State of Alaska; and
            (2) the balance shall be deposited in the Federal Treasury 
        to pay down the Federal deficit, and if no deficit exists than 
        to pay down the national debt.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.

SEC. 240. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

    (a) In General.--The Secretary shall issue rights-of-way and 
easements across the Coastal Plain for the transportation of oil and 
gas--
            (1) except as provided in paragraph (2), under section 28 
        of the Mineral Leasing Act (30 U.S.C. 185), without regard to 
        title XI of the Alaska National Interest Lands Conservation Act 
        (30 U.S.C. 3161 et seq.); and
            (2) under title XI of the Alaska National Interest Lands 
        Conservation Act (30 U.S.C. 3161 et seq.), for access 
        authorized by sections 1110 and 1111 of that Act (16 U.S.C. 
        3170 and 3171).
    (b) Terms and Conditions.--The Secretary shall include in any 
right-of-way or easement issued under subsection (a) such terms and 
conditions as may be necessary to ensure that transportation of oil and 
gas does not result in a significant adverse effect on the fish and 
wildlife, subsistence resources, their habitat, and the environment of 
the Coastal Plain, including requirements that facilities be sited or 
designed so as to avoid unnecessary duplication of roads and pipelines.
    (c) Regulations.--The Secretary shall include in regulations under 
section 133(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 241. CONVEYANCE.

    In order to maximize Federal revenues by removing claims on title 
to lands and clarifying land ownership patterns within the Coastal 
Plain, the Secretary, notwithstanding the provisions of section 
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 
U.S.C. 3192(h)(2)), shall convey--
            (1) to the Kaktovik Inupiat Corporation the surface estate 
        of the lands described in paragraph 1 of Public Land Order 
        6959, to the extent necessary to fulfill the Corporation's 
        entitlement under sections 12 and 14 of the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance 
        with the terms and conditions of the Agreement between the 
        Department of the Interior, the United States Fish and Wildlife 
        Service, the Bureau of Land Management, and the Kaktovik 
        Inupiat Corporation effective January 22, 1993; and
            (2) to the Arctic Slope Regional Corporation the remaining 
        subsurface estate to which it is entitled pursuant to the 
        August 9, 1983, agreement between the Arctic Slope Regional 
        Corporation and the United States of America.

SEC. 242. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

    (a) Financial Assistance Authorized.--
            (1) In general.--The Secretary may use amounts available 
        from the Coastal Plain Local Government Impact Aid Assistance 
        Fund established by subsection (d) to provide timely financial 
        assistance to entities that are eligible under paragraph (2) 
        and that are directly impacted by the exploration for or 
        production of oil and gas on the Coastal Plain under this 
        subtitle.
            (2) Eligible entities.--The North Slope Borough, the City 
        of Kaktovik, and any other borough, municipal subdivision, 
        village, or other community in the State of Alaska that is 
        directly impacted by exploration for, or the production of, oil 
        or gas on the Coastal Plain under this subtitle, as determined 
        by the Secretary, shall be eligible for financial assistance 
        under this section.
    (b) Use of Assistance.--Financial assistance under this section may 
be used only for--
            (1) planning for mitigation of the potential effects of oil 
        and gas exploration and development on environmental, social, 
        cultural, recreational, and subsistence values;
            (2) implementing mitigation plans and maintaining 
        mitigation projects;
            (3) developing, carrying out, and maintaining projects and 
        programs that provide new or expanded public facilities and 
        services to address needs and problems associated with such 
        effects, including fire-fighting, police, water, waste 
        treatment, medivac, and medical services; and
            (4) establishment of a coordination office, by the North 
        Slope Borough, in the City of Kaktovik, which shall--
                    (A) coordinate with and advise developers on local 
                conditions, impact, and history of the areas utilized 
                for development; and
                    (B) provide to the Committee on Natural Resources 
                of the House of Representatives and the Committee on 
                Energy and Natural Resources of the Senate an annual 
                report on the status of coordination between developers 
                and the communities affected by development.
    (c) Application.--
            (1) In general.--Any community that is eligible for 
        assistance under this section may submit an application for 
        such assistance to the Secretary, in such form and under such 
        procedures as the Secretary may prescribe by regulation.
            (2) North slope borough communities.--A community located 
        in the North Slope Borough may apply for assistance under this 
        section either directly to the Secretary or through the North 
        Slope Borough.
            (3) Application assistance.--The Secretary shall work 
        closely with and assist the North Slope Borough and other 
        communities eligible for assistance under this section in 
        developing and submitting applications for assistance under 
        this section.
    (d) Establishment of Fund.--
            (1) In general.--There is established in the Treasury the 
        Coastal Plain Local Government Impact Aid Assistance Fund.
            (2) Use.--Amounts in the fund may be used only for 
        providing financial assistance under this section.
            (3) Deposits.--Subject to paragraph (4), there shall be 
        deposited into the fund amounts received by the United States 
        as revenues derived from rents, bonuses, and royalties from 
        Federal leases and lease sales authorized under this subtitle.
            (4) Limitation on deposits.--The total amount in the fund 
        may not exceed $11,000,000.
            (5) Investment of balances.--The Secretary of the Treasury 
        shall invest amounts in the fund in interest-bearing Government 
        securities.
    (e) Authorization of Appropriations.--To provide financial 
assistance under this section there is authorized to be appropriated to 
the Secretary from the Coastal Plain Local Government Impact Aid 
Assistance Fund $5,000,000 for each fiscal year.

                        TITLE III--NUCLEAR POWER

SEC. 301. WASTE CONFIDENCE.

    The Nuclear Regulatory Commission may not deny an application for a 
license, permit, or other authorization under the Atomic Energy Act of 
1954 on the grounds that sufficient capacity does not exist, or will 
not become available on a timely basis, for disposal of spent nuclear 
fuel or high-level radioactive waste from the facility for which the 
license, permit, or other authorization is sought.

SEC. 302. ASME NUCLEAR CERTIFICATION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45R. ASME NUCLEAR CERTIFICATION CREDIT.

    ``(a) In General.--For purposes of section 38, the ASME Nuclear 
Certification credit determined under this section for any taxable year 
is an amount equal to 15 percent of the qualified nuclear expenditures 
paid or incurred by the taxpayer.
    ``(b) Qualified Nuclear Expenditures.--For purposes of this 
section, the term `qualified nuclear expenditures' means any 
expenditure related to--
            ``(1) obtaining a certification under the American Society 
        of Mechanical Engineers Nuclear Component Certification 
        program, or
            ``(2) increasing the taxpayer's capacity to construct, 
        fabricate, assemble, or install components--
                    ``(A) for any facility which uses nuclear energy to 
                produce electricity, and
                    ``(B) with respect to the construction, 
                fabrication, assembly, or installation of which the 
                taxpayer is certified under such program.
    ``(c) Timing of Credit.--The credit allowed under subsection (a) 
for any expenditures shall be allowed--
            ``(1) in the case of a qualified nuclear expenditure 
        described in subsection (b)(1), for the taxable year of such 
        certification, and
            ``(2) in the case of any other qualified nuclear 
        expenditure, for the taxable year in which such expenditure is 
        paid or incurred.
    ``(d) Special Rules.--
            ``(1) Basis adjustment.--For purposes of this subtitle, if 
        a credit is allowed under this section for an expenditure, the 
        increase in basis which would result (but for this subsection) 
        for such expenditure shall be reduced by the amount of the 
        credit allowed under this section.
            ``(2) Denial of double benefit.--No deduction shall be 
        allowed under this chapter for any amount taken into account in 
        determining the credit under this section.
    ``(e) Termination.--This section shall not apply to any 
expenditures paid or incurred in taxable years beginning after December 
31, 2019.''.
    (b) Conforming Amendments.--
            (1) Subsection (b) of section 38 of such Code is amended by 
        striking ``plus'' at the end of paragraph (34), by striking the 
        period at the end of paragraph (35) and inserting ``, plus'', 
        and by adding at the end the following new paragraph:
            ``(36) the ASME nuclear certification credit determined 
        under section 45R(a).''.
            (2) Subsection (a) of section 1016 of such Code (relating 
        to adjustments to basis) is amended by striking ``and'' at the 
        end of paragraph (36), by striking the period at the end of 
        paragraph (37) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(38) to the extent provided in section 45R(e)(1).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
December 31, 2009.

                      TITLE IV--REGULATORY BURDENS

SEC. 401. GREENHOUSE GAS REGULATION UNDER CLEAN AIR ACT.

    (a) Definition of Air Pollutant.--Section 302(g) of the Clean Air 
Act (42 U.S.C. 7602(g)) is amended by adding the following at the end 
thereof: ``The term `air pollutant' shall not include carbon dioxide, 
water vapor, methane, nitrous oxide, hydrofluorocarbons, 
perfluorocarbons, or sulfur hexafluoride.''.
    (b) Climate Change Not Regulated by Clean Air Act.--Nothing in the 
Clean Air Act shall be treated as authorizing or requiring the 
regulation of climate change or global warming.

SEC. 402. NEPA JUDICIAL REVIEW.

    Title I of the National Environmental Policy Act of 1969 (42 U.S.C. 
4331 et seq.) is amended by adding at the end the following new 
section:

``SEC. 106. JUDICIAL REVIEW.

    ``(a) In General.--Review of a Federal agency's compliance with 
section 102 of the Act may be filed in the circuit in which the 
petitioner resides or transacts business which is directly affected by 
the action. Any such application for review shall be made within ninety 
days from the date of promulgation of the Federal agency's decision.
    ``(b) Procedures for Review.--
            ``(1) Limitation.--In any judicial action under this Act, 
        judicial review of any issues concerning a Federal agency's 
        compliance with section 102 shall be limited to the 
        administrative record. Otherwise applicable principles of 
        administrative law shall govern whether any supplemental 
        materials may be considered by the court.
            ``(2) Standard.--In considering objections raised in any 
        judicial action under this Act, the court shall uphold the 
        Federal agency's decision, whether in is the first instance, a 
        revocation, recession or other action, unless the objecting 
        party can demonstrate, on the administrative record, that the 
        decision was arbitrary and capricious or otherwise not in 
        accordance with law.
            ``(3) Remedy.--If the court finds that the selection of the 
        response action was arbitrary and capricious or otherwise not 
        in accordance with law, the court shall award such relief as 
        the court deems appropriate.
            ``(4) Procedural errors.--In reviewing alleged procedural 
        errors, the court may disallow costs or damages only if the 
        errors were so serious and related to matters of such central 
        relevance to the action that the action would have been 
        significantly changed had such errors not been made.
    ``(c) Notice of Actions.--Whenever any action is brought under this 
Act in a court of the United States by a plaintiff other than the 
United States, the plaintiff shall provide a copy of the complaint to 
the Attorney General of the United States and to the Secretary or 
Administrator of the affected Federal agency.
    ``(d) Intervention.--In any action commenced under this Act, any 
person may intervene as a matter of right when such person claims an 
interest relating to the subject of the action and is so situated that 
the disposition of the action may, as a practical matter, impair or 
impede the person's ability to protect that interest, unless the 
Secretary or Administrator shows that the person's interest is 
adequately represented by existing parties.''.

SEC. 403. REPEAL OF 2007 AMENDMENTS TO RENEWABLE FUEL STANDARD.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended 
to read as provided in section 1501(a)(2) of the Energy Policy Act of 
2005 (Public Law 109-58; 119 Stat. 594, 1067).

SEC. 404. REPEAL OF REQUIREMENT TO CONSULT REGARDING IMPACTS ON GLOBAL 
              WARMING AND POLAR BEAR POPULATION.

    Section 429 of the Department of the Interior, Environment, and 
Related Agencies Appropriations Act, 2009 (division E of Public Law 
111-8) is repealed.

SEC. 405. LIGHT BULB CHOICE.

    (a) In General.--Effective 6 months after the date of enactment of 
this Act, sections 321 and 322, and the items in the table of contents 
relating thereto, of the Energy Independence and Security Act of 2007 
are repealed.
    (b) Reversion.--When the repeal occurs under paragraph (1), the 
amendments made by sections 321 and 322 of the Energy Independence and 
Security Act of 2007 are hereby repealed, and the laws amended thereby 
shall read as if those amendments had not been enacted.

SEC. 406. REPEAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC 
              PRODUCTION ACTIVITIES.

    (a) In General.--Section 199 of the Internal Revenue Code is 
repealed.
    (b) Conforming Amendments.--
            (1) Sections 86(b)(2)(A), 135(c)(4)(A), 137(b)(3)(A), 
        219(g)(3)(A)(ii), 221(b)(2)(C), 246(b)(1), and 469(i)(3)(F) of 
        such Code are each amended by striking ``199,''.
            (2) Clause (i) of section 163(j)(6)(A) of such Code is 
        amended by inserting ``and'' at the end of subclause (II), by 
        striking subclause (III) and by redesignating subclause (IV) as 
        subclause (III).
            (3) Subparagraph (C) of section 170(b)(2) of such Code is 
        amended by striking clause (iv), by redesignating clause (v) as 
        clause (iv), and by inserting ``and'' at the end of clause 
        (iii).
            (4) Subsection (d) of section 172 of such Code is amended 
        by striking paragraph (7).
            (5) Subsection (a) of section 613 of such Code is amended 
        by striking ``and without the deduction under section 199''.
            (6) Paragraph (1) of section 613A(d) of such Code is 
        amended by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (B), (C), and (D), respectively, and by striking 
        subparagraph (B).
            (7) Subsection (a) of section 1402 of such Code is amended 
        by inserting ``and'' at the end of paragraph (15), by striking 
        paragraph (16), and by redesignating paragraph (17) as 
        paragraph (16).
            (8) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 199.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

                          TITLE V--SOLAR POWER

SEC. 501. SHORT TITLE.

    This subtitle may be cited as the ``Emergency Solar Power Permit 
Act''.

SEC. 502. EXEMPTION OF SOLAR ENERGY PROJECTS FROM ENVIRONMENTAL IMPACT 
              STATEMENT REQUIREMENT.

    (a) In General.--Title I of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4331 et seq.) is amended by adding at the end the 
following new section:
    ``Sec. 106.  No action relating to the development, deployment, or 
operation of a solar energy project on lands managed by the Bureau of 
Land Management shall be considered a major Federal action for the 
purposes of section 102(2)(C).''.
    (b) Effect for Statements Underway.--Each department and agency of 
the Federal Government shall cease the preparation of a statement, 
commenced pursuant to section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C)), for any action described in 
the amendment made by subsection (a), to the extent that the 
preparation of such statement would delay or otherwise interfere with 
such action.

                         TITLE VI--NATURAL GAS

SEC. 601. NATURAL GAS VEHICLE RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
              PROJECTS.

    (a) In General.--The Secretary of Energy shall conduct a 5-year 
program of natural gas vehicle research, development, and 
demonstration. The Secretary shall coordinate with the Administrator of 
the Environmental Protection Agency, as necessary.
    (b) Purpose.--The program under this section shall focus on--
            (1) the continued improvement and development of new, 
        cleaner, more efficient light-duty, medium-duty, and heavy-duty 
        natural gas vehicle engines;
            (2) the integration of those engines into light-duty, 
        medium-duty, and heavy-duty natural gas vehicles for onroad and 
        offroad applications;
            (3) expanding product availability by assisting 
        manufacturers with the certification of the engines or vehicles 
        described in paragraph (1) or (2) to Federal or California 
        certification requirements and in-use emission standards;
            (4) the demonstration and proper operation and use of the 
        vehicles described in paragraph (2) under all operating 
        conditions;
            (5) the development and improvement of nationally 
        recognized codes and standards for the continued safe operation 
        of natural gas vehicles and their components;
            (6) improvement in the reliability and efficiency of 
        natural gas fueling station infrastructure;
            (7) the certification of natural gas fueling station 
        infrastructure to nationally recognized and industry safety 
        standards;
            (8) the improvement in the reliability and efficiency of 
        onboard natural gas fuel storage systems;
            (9) the development of new natural gas fuel storage 
        materials;
            (10) the certification of onboard natural gas fuel storage 
        systems to nationally recognized and industry safety standards; 
        and
            (11) the use of natural gas engines in hybrid vehicles.
    (c) Certification of Conversion Systems.--The Secretary shall 
coordinate with the Administrator on issues related to streamlining the 
certification of natural gas conversion systems to the appropriate 
Federal certification requirements and in-use emission standards.
    (d) Cooperation and Coordination With Industry.--In developing and 
carrying out the program under this section, the Secretary shall 
coordinate with the natural gas vehicle industry to ensure cooperation 
between the public and the private sector.
    (e) Conduct of Program.--The program under this section shall be 
conducted in accordance with sections 3001 and 3002 of the Energy 
Policy Act of 1992.
    (f) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall provide a report to Congress on the 
implementation of this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $30,000,000 for each of the fiscal years 
2010 through 2014 to carry out this section.
    (h) Definition.--For purposes of this section, the term ``natural 
gas'' means compressed natural gas, liquefied natural gas, biomethane, 
and mixtures of hydrogen and methane or natural gas.

SEC. 602. ALTERNATIVE FUEL CREDIT WITH RESPECT TO COMPRESSED OR 
              LIQUEFIED NATURAL GAS MADE PERMANENT.

    (a) Alternative Fuel Credit.--Paragraph (5) of section 6426(d) of 
the Internal Revenue Code of 1986 (relating to alternative fuel credit) 
is amended to read as follows:
            ``(5) Termination.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), this subsection shall not apply to 
                any sale or use for any period after December 31, 2009 
                (September 30, 2014, in the case of any sale or use 
                involving liquefied hydrogen).
                    ``(B) Compressed or liquefied natural gas.--
                Subparagraph (A) shall not apply in the case of any 
                sale or use involving compressed or liquefied natural 
                gas.''.
    (b) Alternative Fuel Mixture Credit.--Paragraph (3) of section 
6426(e) of such Code is amended to read as follows:
            ``(3) Termination.--
                    ``(A) Except as provided in subparagraph (B), this 
                subsection shall not apply to any sale or use for any 
                period after December 31, 2009 (September 30, 2014, in 
                the case of any sale or use involving liquefied 
                hydrogen).
                    ``(B) Compressed or liquefied natural gas.--
                Subparagraph (A) shall not apply in the case of any 
                sale or use involving compressed or liquefied natural 
                gas.''.
    (c) Payments Relating to Alternative Fuel or Alternative Fuel 
Mixtures.--Paragraph (6) of section 6427(e) of such Code is amended by 
adding at the end the following flush sentence:
        ``The preceding sentence shall not apply in the case of any 
        sale or use involving compressed or liquefied natural gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

SEC. 603. ALTERNATIVE FUEL VEHICLE CREDIT MADE PERMANENT WITH RESPECT 
              TO VEHICLES POWERED BY COMPRESSED OR LIQUEFIED NATURAL 
              GAS.

    (a) In General.--Paragraph (4) of section 30B(k) of the Internal 
Revenue Code of 1986 (relating to termination) is amended by adding at 
the end the following flush sentence:
        ``The preceding sentence shall not apply in the case of a 
        vehicle powered by compressed or liquefied natural gas.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 604. ALLOWANCE OF VEHICLE AND INFRASTRUCTURE CREDITS AGAINST 
              REGULAR AND MINIMUM TAX AND TRANSFERABILITY OF CREDITS.

    (a) Business Credits.--Subparagraph (B) of section 38(c)(4) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (vii), by striking the period at the end of clause (viii) and 
inserting ``, and'', and by inserting after clause (viii) the following 
new clauses:
                            ``(ix) the portion of the credit determined 
                        under section 30B which is attributable to the 
                        application of subsection (e)(3) thereof with 
                        respect to qualified alternative fuel motor 
                        vehicles which are capable of being powered by 
                        compressed or liquefied natural gas, and
                            ``(x) the portion of the credit determined 
                        under section 30C which is attributable to the 
                        application of subsection (b) thereof with 
                        respect to refueling property which is used to 
                        store and or dispense compressed or liquefied 
                        natural gas.''.
    (b) Personal Credits.--
            (1) New qualified alternative fuel motor vehicles.--
        Subsection (g) of section 30B of such Code is amended by adding 
        at the end the following new paragraph:
            ``(3) Special rule relating to certain new qualified 
        alternative fuel motor vehicles.--In the case of the portion of 
        the credit determined under subsection (a) which is 
        attributable to the application of subsection (e)(3) with 
        respect to qualified alternative fuel motor vehicles which are 
        capable of being powered by compressed or liquefied natural 
        gas--
                    ``(A) paragraph (2) shall (after the application of 
                paragraph (1)) be applied separately with respect to 
                such portion, and
                    ``(B) in lieu of the limitation determined under 
                paragraph (2), such limitation shall not exceed the 
                excess (if any) of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the 
                        tentative minimum tax for the taxable year, 
                        reduced by
                            ``(ii) the sum of the credits allowable 
                        under subpart A and sections 27 and 30.''.
            (2) Alternative fuel vehicle refueling properties.--
        Subsection (d) of section 30C of such Code is amended by adding 
        at the end the following new paragraph:
            ``(3) Special rule relating to certain alternative fuel 
        vehicle refueling properties.--In the case of the portion of 
        the credit determined under subsection (a) with respect to 
        refueling property which is used to store and or dispense 
        compressed or liquefied natural gas and which is attributable 
        to the application of subsection (b)--
                    ``(A) paragraph (2) shall (after the application of 
                paragraph (1)) be applied separately with respect to 
                such portion, and
                    ``(B) in lieu of the limitation determined under 
                paragraph (2), such limitation shall not exceed the 
                excess (if any) of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the 
                        tentative minimum tax for the taxable year, 
                        reduced by
                            ``(ii) the sum of the credits allowable 
                        under subpart A and sections 27, 30, and the 
                        portion of the credit determined under section 
                        30B which is attributable to the application of 
                        subsection (e)(3) thereof.''.
    (c) Credits May Be Transferred.--
            (1) Vehicle credits.--Subsection (h) of section 30B of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(11) Transferability of credit.--Nothing in any law or 
        rule of law shall be construed to limit a taxpayer from 
        transferring, through sale and repurchase agreement, the credit 
        allowed by this section for qualified alternative fuel motor 
        vehicles which are capable of being powered by compressed or 
        liquefied natural gas.''.
            (2) Infrastructure credit.--Subsection (e) of section 30C 
        of such Code is amended by adding at the end the following new 
        paragraph:
            ``(6) Credit may be transferred.--Nothing in any law or 
        rule of law shall be construed to limit a taxpayer from 
        transferring the credit allowed by this section through sale 
        and repurchase agreements.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to property placed in service after the date of the 
enactment of this Act.

SEC. 605. CREDIT FOR PRODUCING VEHICLES FUELED BY NATURAL GAS OR 
              LIQUIFIED NATURAL GAS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits), as amended by this Act, is amended by inserting after section 
45R the following new section:

``SEC. 45S. PRODUCTION OF VEHICLES FUELED BY NATURAL GAS OR LIQUIFIED 
              NATURAL GAS.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer who is a manufacturer of natural gas vehicles, the natural gas 
vehicle credit determined under this section for any taxable year with 
respect to each eligible natural gas vehicle produced by the taxpayer 
during such year is an amount equal to the lesser of--
            ``(1) 10 percent of the manufacturer's basis in such 
        vehicle, or
            ``(2) $4,000.
    ``(b) Aggregate Credit Allowed.--The aggregate amount of credit 
allowed under subsection (a) with respect to a taxpayer for any taxable 
year shall not exceed $200,000,000 reduced by the amount of the credit 
allowed under subsection (a) to the taxpayer (or any predecessor) for 
all prior taxable years.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible natural gas vehicle.--The term `eligible 
        natural gas vehicle' means any motor vehicle (as defined in 
        section 30(c)(2))--
                    ``(A) which--
                            ``(i) is only capable of operating on 
                        natural gas or liquefied natural gas, or
                            ``(ii) is capable of operating on 
                        compressed or liquefied natural gas and (but 
                        not in combination with) gasoline or diesel 
                        fuel, but in no case shall such vehicle have an 
                        operating range of less than 200 miles on 
                        compressed or liquefied natural gas, and
                    ``(B) the final assembly of which is in the United 
                States.
            ``(2) Manufacturer.--The term `manufacturer' has the 
        meaning given such term in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
    ``(d) Special Rules.--For purposes of this section--
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall apply.
            ``(2) Controlled groups.--
                    ``(A) In general.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as a single producer.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this section, section 1563 
                shall be applied without regard to subsection (b)(2)(C) 
                thereof.
            ``(3) Verification.--No amount shall be allowed as a credit 
        under subsection (a) with respect to which the taxpayer has not 
        submitted such information or certification as the Secretary, 
        in consultation with the Secretary of Energy, determines 
        necessary.''.
    (b) Credit To Be Part of Business Credit.--Section 38(b) of such 
Code, as amended by this Act, is amended by striking ``plus'' at the 
end of paragraph (35), by striking the period at the end of paragraph 
(36) and inserting ``, plus'', and by adding at the end the following:
            ``(37) the natural gas vehicle credit determined under 
        section 45S(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45R the following new 
item:

``Sec. 45S. Production of vehicles fueled by natural gas or liquified 
                            natural gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles produced after December 31, 2008.

                         TITLE VII--CLEAN COAL

SEC. 701. COAL-TO-LIQUID FACILITIES.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
(relating to accelerated cost recovery system) is amended by adding at 
the end the following:
    ``(o) Special Allowance for Coal-to-Liquid Plant Property.--
            ``(1) Additional allowance.--In the case of any qualified 
        coal-to-liquid plant property--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                property is placed in service shall include an 
                allowance equal to 50 percent of the adjusted basis of 
                such property, and
                    ``(B) the adjusted basis of such property shall be 
                reduced by the amount of such deduction before 
                computing the amount otherwise allowable as a 
                depreciation deduction under this chapter for such 
                taxable year and any subsequent taxable year.
            ``(2) Qualified coal-to-liquid plant property.--
                    ``(A) In general.--The term `qualified coal-to-
                liquid plant property' means property of a character 
                subject to the allowance for depreciation--
                            ``(i) which is part of a commercial-scale 
                        project that converts coal to 1 or more liquid 
                        or gaseous transportation fuel that 
                        demonstrates the capture, and sequestration or 
                        disposal or use of, the carbon dioxide produced 
                        in the conversion process, and that, on the 
                        basis of carbon dioxide sequestration plan 
                        prepared by the applicant, is certified by the 
                        Administrator of the Environmental Protection 
                        Agency, in consultation with the Secretary of 
                        Energy, as producing fuel with life cycle 
                        carbon dioxide emissions at or below the 
                        average life-cycle carbon dioxide emissions for 
                        the same type of fuel produced at traditional 
                        petroleum based facilities with similar annual 
                        capacities,
                            ``(ii) which is used in the United States 
                        solely to produce coal-to-liquid fuels,
                            ``(iii) the original use of which commences 
                        with the taxpayer after the date of the 
                        enactment of this subsection,
                            ``(iv) which has a nameplate capacity of 
                        30,000 barrels per day production of coal-to-
                        liquid fuels,
                            ``(v) which is acquired by the taxpayer by 
                        purchase (as defined in section 179(d)) after 
                        the date of the enactment of this subsection, 
                        but only if no written binding contract for the 
                        acquisition was in effect on or before the date 
                        of the enactment of this subsection, and
                            ``(vi) which is placed in service by the 
                        taxpayer before January 1, 2013.
                    ``(B) Exceptions.--
                            ``(i) Alternative depreciation property.--
                        Such term shall not include any property 
                        described in section 168(k)(2)(D)(i).
                            ``(ii) Tax-exempt bond-financed property.--
                        Such term shall not include any property any 
                        portion of which is financed with the proceeds 
                        of any obligation the interest on which is 
                        exempt from tax under section 103.
                            ``(iii) Election out.--If a taxpayer makes 
                        an election under this subparagraph with 
                        respect to any class of property for any 
                        taxable year, this subsection shall not apply 
                        to all property in such class placed in service 
                        during such taxable year.
            ``(3) Special rules.--For purposes of this subsection, 
        rules similar to the rules of subparagraph (E) of section 
        168(k)(2) shall apply, except that such subparagraph shall be 
        applied--
                    ``(A) by substituting `the date of the enactment of 
                subsection (l)' for `December 31, 2007' each place it 
                appears therein,
                    ``(B) by substituting `January 1, 2013' for 
                `January 1, 2010' in clause (i) thereof, and
                    ``(C) by substituting `qualified coal-to-liquid 
                plant property' for `qualified property' in clause (iv) 
                thereof.
            ``(4) Allowance against alternative minimum tax.--For 
        purposes of this subsection, rules similar to the rules of 
        section 168(k)(2)(G) shall apply.
            ``(5) Recapture.--For purposes of this subsection, rules 
        similar to the rules under section 179(d)(10) shall apply with 
        respect to any qualified coal-to-liquid plant property which 
        ceases to be qualified coal-to-liquid plant property.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act, in taxable years ending after such date.

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.

    (a) Credit for Nonbusiness Energy Property Made Permanent.--
            (1) In general.--Section 25C of the Internal Revenue Code 
        of 1986 is amended by striking subsection (g).
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after December 31, 
        2008.
    (b) Credit for Gas Produced From Biomass and for Synthetic Fuels 
Produced From Coal Made Permanent.--
            (1) In general.--Subparagraph (B) of section 45K(f)(1) of 
        such Code is amended to read as follows:
                    ``(B) if such facility is originally placed in 
                service after December 31, 1992, paragraph (2) of 
                subsection (e) shall not apply.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to fuel sold after December 31, 2008.

SEC. 703. COAL-TO-LIQUID FUEL LOAN GUARANTEE PROGRAM.

    (a) Eligible Projects.--Section 1703(b) of the Energy Policy Act of 
2005 (42 U.S.C. 16513(b)) is amended by adding at the end the 
following:
            ``(11) Large-scale coal-to-liquid facilities (as defined in 
        section 101 of the Coal-to-Liquid Fuel Promotion Act of 2007) 
        that use a feedstock, the majority of which is the coal 
        resources of the United States, to produce not less than 10,000 
        barrels a day of liquid transportation fuel.''.
    (b) Authorization of Appropriations.--Section 1704 of the Energy 
Policy Act of 2005 (42 U.S.C. 16514) is amended by adding at the end 
the following:
    ``(c) Coal-to-Liquid Projects.--
            ``(1) In general.--There are authorized to be appropriated 
        such sums as are necessary to provide the cost of guarantees 
        for projects involving large-scale coal-to-liquid facilities 
        under section 1703(b)(11).
            ``(2) Alternative funding.--If no appropriations are made 
        available under paragraph (1), an eligible applicant may elect 
        to provide payment to the Secretary, to be delivered if and at 
        the time the application is approved, in the amount of the 
        estimated cost of the loan guarantee to the Federal Government, 
        as determined by the Secretary.
            ``(3) Limitations.--
                    ``(A) In general.--No loan guarantees shall be 
                provided under this title for projects described in 
                paragraph (1) after (as determined by the Secretary)--
                            ``(i) the tenth such loan guarantee is 
                        issued under this title; or
                            ``(ii) production capacity covered by such 
                        loan guarantees reaches 100,000 barrels per day 
                        of coal-to-liquid fuel.
                    ``(B) Individual projects.--
                            ``(i) In general.--A loan guarantee may be 
                        provided under this title for any large-scale 
                        coal-to-liquid facility described in paragraph 
                        (1) that produces no more than 20,000 barrels 
                        of coal-to-liquid fuel per day.
                            ``(ii) Non-federal funding requirement.--To 
                        be eligible for a loan guarantee under this 
                        title, a large-scale coal-to-liquid facility 
                        described in paragraph (1) that produces more 
                        than 20,000 barrels per day of coal-to-liquid 
                        fuel shall be eligible to receive a loan 
                        guarantee for the proportion of the cost of the 
                        facility that represents 20,000 barrels of 
                        coal-to-liquid fuel per day of production.
            ``(4) Requirements.--
                    ``(A) Guidelines.--Not later than 180 days after 
                the date of enactment of this subsection, the Secretary 
                shall publish guidelines for the coal-to-liquids loan 
                guarantee application process.
                    ``(B) Applications.--Not later than 1 year after 
                the date of enactment of this subsection, the Secretary 
                shall begin to accept applications for coal-to-liquid 
                loan guarantees under this subsection.
                    ``(C) Deadline.--Not later than 1 year from the 
                date of acceptance of an application under subparagraph 
                (B), the Secretary shall evaluate the application and 
                make final determinations under this subsection.
            ``(5) Reports to congress.--The Secretary shall submit to 
        the Committee on Energy and Natural Resources of the Senate and 
        the Committee on Energy and Commerce of the House of 
        Representatives a report describing the status of the program 
        under this subsection not later than each of--
                    ``(A) 180 days after the date of enactment of this 
                subsection;
                    ``(B) 1 year after the date of enactment of this 
                subsection; and
                    ``(C) the dates on which the Secretary approves the 
                first and fifth applications for coal-to-liquid loan 
                guarantees under this subsection.''.

SEC. 704. COAL-TO-LIQUID FACILITIES LOAN PROGRAM.

    (a) Definition of Eligible Recipient.--In this section, the term 
``eligible recipient'' means an individual, organization, or other 
entity that owns, operates, or plans to construct a coal-to-liquid 
facility that will produce at least 10,000 barrels per day of coal-to-
liquid fuel.
    (b) Establishment.--The Secretary shall establish a program under 
which the Secretary shall provide loans, in a total amount not to 
exceed $20,000,000, for use by eligible recipients to pay the Federal 
share of the cost of obtaining any services necessary for the planning, 
permitting, and construction of a coal-to-liquid facility.
    (c) Application.--To be eligible to receive a loan under subsection 
(b), the eligible recipient shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require.
    (d) Non-Federal Match.--To be eligible to receive a loan under this 
section, an eligible recipient shall use non-Federal funds to provide a 
dollar-for-dollar match of the amount of the loan.
    (e) Repayment of Loan.--
            (1) In general.--To be eligible to receive a loan under 
        this section, an eligible recipient shall agree to repay the 
        original amount of the loan to the Secretary not later than 5 
        years after the date of the receipt of the loan.
            (2) Source of funds.--Repayment of a loan under paragraph 
        (1) may be made from any financing or assistance received for 
        the construction of a coal-to-liquid facility described in 
        subsection (a), including a loan guarantee provided under 
        section 1703(b)(11) of the Energy Policy Act of 2005 (42 U.S.C. 
        16513(b)(11)).
    (f) Requirements.--
            (1) Guidelines.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall publish guidelines 
        for the coal-to-liquids loan application process.
            (2) Applications.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall begin to accept 
        applications for coal-to-liquid loans under this section.
    (g) Reports to Congress.--Not later than each of 180 days and 1 
year after the date of enactment of this Act, the Secretary shall 
submit to the Committee on Energy and Natural Resources of the Senate 
and the Committee on Energy and Commerce of the House of 
Representatives a report describing the status of the program under 
this section.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $200,000,000, to remain 
available until expended.

SEC. 705. 7-YEAR DEPRECIATION FOR CLEAN COAL TECHNOLOGY OR FOR CARBON 
              SEQUESTRATION TECHNOLOGY INSTALLED OR RETRO-FIT AT POWER-
              PLANTS.

    (a) In General.--Subparagraph (C) of section 168(e)(3) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (iv), by striking the period at the end of clause (v) and 
inserting ``, and'', and by inserting after clause (v) the following 
new clause:
                            ``(v) any property installed with respect 
                        to any coal fired power plant generating power 
                        that retrofits the operation of such plant to 
                        decrease its carbon output by at least 10 
                        percent per year.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after December 31, 2009.

SEC. 706. EXTENSION OF 50 CENT PER GALLON ALTERNATIVE FUELS EXCISE TAX 
              CREDIT.

    Paragraph (5) of section 6426(d) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``2009'' and inserting ``2019'', and
            (2) by striking ``2014'' and inserting ``2024''.

SEC. 707. PROVIDES A 20 PERCENT INVESTMENT TAX CREDIT CAPPED AT $200 
              MILLION TOTAL PER CTL PLANT PLACED IN SERVICE BEFORE 
              2016.

    The Internal Revenue Service shall treat the synthetic gas produced 
from coal-to-liquids with the same tax treatment as covered by the 
industrial gasification tax credit.

SEC. 708. REDUCES RECOVERY PERIOD FOR CERTAIN ENERGY PRODUCTION AND 
              DISTRIBUTION FACILITIES.

    In the case of an individual or business, there shall be allowed as 
a credit against the taxes imposed by subtitle A of the Internal 
Revenue Code of 1986 an amount equal to 30 percent of the expenditures 
made by such individual or business for energy production and 
distribution facilities.

SEC. 709. DOE CLEAN COAL TECHNOLOGY LOAN GUARANTEES AND DIRECT LOANS.

    The Secretary of Energy may provide clean coal technology loan 
guarantees and direct loans for the research, development, 
demonstration, and deployment of clean coal technology, to build up to 
five commercial-scale coal-fired plants with carbon capture and 
sequestration capabilities. For each such loan guarantee or loan, at 
least 50 percent of the total cost of the project shall be provided by 
the private sector.

SEC. 710. CARBON DIOXIDE STORAGE CAPACITY ASSESSMENT.

    (a) Definitions.--In this section:
            (1) Assessment.--The term ``assessment'' means the national 
        assessment of capacity for carbon dioxide completed under 
        subsection (f).
            (2) Capacity.--The term ``capacity'' means the portion of a 
        storage formation that can retain carbon dioxide in accordance 
        with the requirements (including physical, geological, and 
        economic requirements) established under the methodology 
        developed under subsection (b).
            (3) Engineered hazard.--The term ``engineered hazard'' 
        includes the location and completion history of any well that 
        could affect potential storage.
            (4) Risk.--The term ``risk'' includes any risk posed by 
        geomechanical, geochemical, hydrogeological, structural, and 
        engineered hazards.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the United 
        States Geological Survey.
            (6) Storage formation.--The term ``storage formation'' 
        means a deep saline formation, unmineable coal seam, or oil or 
        gas reservoir that is capable of accommodating a volume of 
        industrial carbon dioxide.
    (b) Methodology.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop a methodology for conducting 
an assessment under subsection (f), taking into consideration--
            (1) the geographical extent of all potential storage 
        formations in all States;
            (2) the capacity of the potential storage formations;
            (3) the injectivity of the potential storage formations;
            (4) an estimate of potential volumes of oil and gas 
        recoverable by injection and storage of industrial carbon 
        dioxide in potential storage formations;
            (5) the risk associated with the potential storage 
        formations; and
            (6) the Carbon Sequestration Atlas of the United States and 
        Canada that was completed by the Department of Energy in April 
        2006.
    (c) Coordination.--
            (1) Federal coordination.--
                    (A) Consultation.--The Secretary shall consult with 
                the Secretary of Energy and the Administrator of the 
                Environmental Protection Agency on issues of data 
                sharing, format, development of the methodology, and 
                content of the assessment required under this title to 
                ensure the maximum usefulness and success of the 
                assessment.
                    (B) Cooperation.--The Secretary of Energy and the 
                Administrator shall cooperate with the Secretary to 
                ensure, to the maximum extent practicable, the 
                usefulness and success of the assessment.
            (2) State coordination.--The Secretary shall consult with 
        State geological surveys and other relevant entities to ensure, 
        to the maximum extent practicable, the usefulness and success 
        of the assessment.
    (d) External Review and Publication.--On completion of the 
methodology under subsection (b), the Secretary shall--
            (1) publish the methodology and solicit comments from the 
        public and the heads of affected Federal and State agencies;
            (2) establish a panel of individuals with expertise in the 
        matters described in paragraphs (1) through (5) of subsection 
        (b) composed, as appropriate, of representatives of Federal 
        agencies, institutions of higher education, nongovernmental 
        organizations, State organizations, industry, and international 
        geoscience organizations to review the methodology and comments 
        received under paragraph (1); and
            (3) on completion of the review under paragraph (2), 
        publish in the Federal Register the revised final methodology.
    (e) Periodic Updates.--The methodology developed under this section 
shall be updated periodically (including at least once every 5 years) 
to incorporate new data as the data becomes available.
    (f) National Assessment.--
            (1) In general.--Not later than 2 years after the date of 
        publication of the methodology under subsection (d)(1), the 
        Secretary, in consultation with the Secretary of Energy and 
        State geological surveys, shall complete a national assessment 
        of capacity for carbon dioxide in accordance with the 
        methodology.
            (2) Geological verification.--As part of the assessment 
        under this subsection, the Secretary shall carry out a drilling 
        program to supplement the geological data relevant to 
        determining storage capacity of carbon dioxide in geological 
        storage formations, including--
                    (A) well log data;
                    (B) core data; and
                    (C) fluid sample data.
            (3) Partnership with other drilling programs.--As part of 
        the drilling program under paragraph (2), the Secretary shall 
        enter, as appropriate, into partnerships with other entities to 
        collect and integrate data from other drilling programs 
        relevant to the storage of carbon dioxide in geologic 
        formations.
            (4) Incorporation into natcarb.--
                    (A) In general.--On completion of the assessment, 
                the Secretary of Energy shall incorporate the results 
                of the assessment using the NatCarb database, to the 
                maximum extent practicable.
                    (B) Ranking.--The database shall include the data 
                necessary to rank potential storage sites for capacity 
                and risk, across the United States, within each State, 
                by formation, and within each basin.
            (5) Report.--Not later than 180 days after the date on 
        which the assessment is completed, the Secretary shall submit 
        to the Committee on Energy and Natural Resources of the Senate 
        and the Committee on Science and Technology of the House of 
        Representatives a report describing the findings under the 
        assessment.
            (6) Periodic updates.--The national assessment developed 
        under this section shall be updated periodically (including at 
        least once every 5 years) to support public and private sector 
        decisionmaking.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $30,000,000 for the period of 
fiscal years 2009 through 2013.

SEC. 711. EFFICIENCY AUDIT AND QUANTIFICATION.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Energy (referred to in this section as 
the ``Secretary'') shall conduct an efficiency audit, and quantify the 
operating efficiencies, of all coal-fired electric generation 
facilities in the United States.
    (b) Report.--Not later than 180 days after the date of completion 
of the audit and quantification under subsection (a), the Secretary, in 
consultation with the Administrator of the Environmental Protection 
Agency, shall submit to the Committees on Energy and Natural Resources 
and Environment and Public Works of the Senate and the Committee on 
Energy and Commerce of the House of Representatives, a report that--
            (1) identifies all commercially available technologies, 
        processes, and other approaches to increasing the efficiency of 
        the coal-fired electric generation facilities audited;
            (2) includes a methodology for determining which 
        technologies and processes, in the absence of the obstacles 
        identified under paragraph (3), would be sufficiently cost 
        effective to recoup all costs of the technologies and processes 
        in not more than 5 years after the date of installation or 
        implementation, respectively, of the technologies or processes;
            (3) identifies the technical, economic, regulatory, 
        environmental, and other obstacles to coal-fired electric 
        generation facilities undertaking the installation of the 
        technologies or incorporation of the processes described in 
        paragraph (2);
            (4) includes recommendations as to legislative, 
        administrative, and other actions that could reduce or 
        eliminate the obstacles identified under paragraph (3); and
            (5) includes calculations of--
                    (A) the additional power to be expected from the 
                installation or implementation of those technologies 
                and processes that are considered to be economic under 
                the methodology described in paragraph (2); and
                    (B) the greenhouse gas emissions that are or could 
                be avoided through installation or implementation of 
                those technologies and processes.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

                       TITLE VIII--TAX INCENTIVES

SEC. 801. EXTENSION OF CREDIT FOR ENERGY EFFICIENT APPLIANCES.

    (a) In General.--Subsection (b) of section 45M of the Internal 
Revenue Code of 1986 (relating to applicable amount) is amended--
            (1) in paragraphs (1)(A), (2)(B), and (3)(B), by striking 
        ``in calendar year 2008 or 2009'' each place it appears and 
        inserting ``after calendar year 2007'',
            (2) in paragraphs (1)(B), (2)(C), (2)(D), (3)(C), and 
        (3)(D), by striking ``in calendar year 2008, 2009, or 2010'' 
        and inserting ``after calendar year 2007''.
    (b) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2009.

SEC. 802. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    Section 25C of the Internal Revenue Code of 1986 is amended by 
striking subsection (g).

SEC. 803. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY.

    Section 25D of the Internal Revenue Code of 1986 is amended by 
striking subsection (g).

SEC. 804. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

    Section 45L of the Internal Revenue Code of 1986 is amended by 
striking subsection (g).

SEC. 805. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    Section 179D of the Internal Revenue Code of 1986 is amended by 
striking subsection (h).

SEC. 806. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC AND STATE 
              ELECTRIC RESTRUCTURING POLICY.

    Paragraph (3) of section 451(i) of the Internal Revenue Code of 
1986 is amended by striking ``before January 1, 2008 (before January 1, 
2010, in the case of a qualified electric utility),''.

SEC. 807. HOME ENERGY AUDITS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 25E. HOME ENERGY AUDITS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to 50 percent of the amount of qualified 
energy audit paid or incurred by the taxpayer during the taxable year.
    ``(b) Limitations.--
            ``(1) Dollar limitation.--The amount allowed as a credit 
        under subsection (a) with respect to a residence of the 
        taxpayer for a taxable year shall not exceed $400.
            ``(2) Limitation based on amount of tax.--In the case of 
        any taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) shall not exceed the excess 
        of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.
    ``(c) Qualified Energy Audit.--For purposes of this section, the 
term `qualified energy audit' means an energy audit of the principal 
residence of the taxpayer performed by a qualified energy auditor 
through a comprehensive site visit. Such audit may include a blower 
door test, an infra-red camera test, and a furnace combustion 
efficiency test. In addition, such audit shall include such substitute 
tests for the tests specified in the preceding sentence, and such 
additional tests, as the Secretary may by regulation require. A 
principal residence shall not be taken into consideration under this 
subparagraph unless such residence is located in the United States.
    ``(d) Principal Residence.--For purposes of this section, the term 
`principal residence' has the same meaning as when used in section 121.
    ``(e) Qualified Energy Auditor.--
            ``(1) In general.--The Secretary shall specify by 
        regulations the qualifications required to be a qualified 
        energy auditor for purposes of this section. Such regulations 
        shall include rules prohibiting conflicts-of-interest, 
        including the disallowance of commissions or other payments 
        based on goods or non-audit services purchased by the taxpayer 
        from the auditor.
            ``(2) Certification.--The Secretary shall prescribe the 
        procedures and methods for certifying that an auditor is a 
        qualified energy auditor. To the maximum extent practicable, 
        such procedures and methods shall provide for a variety of 
        sources to obtain certifications.''.
    (b) Conforming Amendments.--
            (1) Section 23(b)(4)(B) of the Internal Revenue Code of 
        1986 is amended by inserting ``and section 25E'' after ``this 
        section''.
            (2) Section 23(c)(1) of such Code is amended by inserting 
        ``, 25E,'' after ``25D''.
            (3) Section 24(b)(3)(B) of such Code is amended by striking 
        ``and 25B'' and inserting ``, 25B, and 25E''.
            (4) Clauses (i) and (ii) of section 25(e)(1)(C) of such 
        Code are each amended by inserting ``25E,'' after ``25D,''.
            (5) Section 25B(g)(2) of such Code is amended by striking 
        ``section 23'' and inserting ``sections 23 and 25E''.
            (6) Section 25D(c)(1) of such Code is amended by inserting 
        ``and section 25E'' after ``this section''.
            (7) Section 25D(c)(2) of such Code is amended by striking 
        ``and 25B'' and inserting ``25B, and 25E''.
            (8) The table of sections for subpart A of part IV of 
        subchapter A chapter 1 of such Code is amended by inserting 
        after the item relating to section 25D the following new item:

``Sec. 25E. Home energy audits.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 808. EXTENSION OF RENEWABLE ELECTRICITY, REFINED COAL, AND INDIAN 
              COAL PRODUCTION CREDIT.

    (a) Credit Made Permanent.--
            (1) In general.--Subsection (d) of section 45 of the 
        Internal Revenue Code of 1986 (relating to qualified 
        facilities) is amended--
                    (A) by striking ``and before January 1, 2014'' each 
                place it occurs,
                    (B) by striking ``, and before January 1, 2014'' in 
                paragraphs (1) and (2)(A)(i), and
                    (C) by striking ``before January 1, 2009'' in 
                paragraph (10).
            (2) Open-loop biomass facilities.--Subparagraph (A) of 
        section 45(d)(3) of such Code is amended to read as follows:
                    ``(A) In general.--In the case of a facility using 
                open-loop biomass to produce electricity, the term 
                `qualified facility' means any facility owned by the 
                taxpayer which is originally placed in service after 
                October 22, 2004.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to electricity produced and sold after December 31, 
        2008, in taxable years ending after such date.
    (b) Allowance Against Alternative Minimum Tax.--
            (1) In general.--Clause (iii) of section 38(c)(4)(B) of 
        such Code (relating to specified credits) is amended by 
        striking ``produced--'' and all that follows and inserting 
        ``produced at a facility which is originally placed in service 
        after the date of the enactment of this paragraph.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.

SEC. 809. EXTENSION OF ENERGY CREDIT.

    (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) 
of section 48(a) of the Internal Revenue Code of 1986 (relating to 
energy credit) are each amended by striking ``but only with respect to 
periods ending before January 1, 2017''.
    (b) Fuel Cell Property.--Section 48(c)(1) of such Code (relating to 
qualified fuel cell property) is amended by striking subparagraph (D).
    (c) Microturbine Property.--Section 48(c)(2) of such Code (relating 
to qualified microturbine property) is amended by striking subparagraph 
(D).
    (d) Combined Heat and Power System Property.--Section 48(c)(3) of 
such Code (relating to combined heat and power system property) is 
amended by inserting ``and'' at the end of clause (ii), by striking ``, 
and'' at the end of clause (iii) and inserting a period, and by 
striking clause (iv).

SEC. 810. CREDIT FOR CLEAN RENEWABLE ENERGY BONDS MADE PERMANENT.

    Section 54 of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking subsection (m).

SEC. 811. EXTENSION OF CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) In General.--Section 40A of the Internal Revenue Code of 1986 
is amended by striking subsection (g).
    (b) Biodiesel Mixture Credit.--
            (1) Section 6426(c) of the Internal Revenue Code of 1986 is 
        amended by striking paragraph (6).
            (2) Section 6427(e)(5) of the Internal Revenue Code of 1986 
        is amended by striking subparagraph (B) and redesignating 
        subparagraphs (C) and (D) as subparagraphs (B) and (C), 
        respectively.

SEC. 812. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT MADE 
              PERMANENT.

    Section 30C of the Internal Revenue Code of 1986 is amended by 
striking subsection (g).
                                 <all>
```