Infrastructure Jobs and Energy Independence Act

To greatly enhance America’s path toward energy independence and economic and national security, to rebuild our Nation’s aging roads, bridges, locks, and dams, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Infrastructure Jobs and Energy Independence Act (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—Offshore Leasing and Other Energy Provisions Subtitle A—Offshore Leasing Sec. 101. Leasing program deemed approved. Sec. 102. Lease sales. Sec. 103. Seaward boundaries of States. Sec. 104. Military operations. Sec. 105. Coordination with Adjacent States. Sec. 106. Gulf of Mexico oil and gas. Sec. 107. Sharing of revenues. Sec. 108. Inventory of offshore energy resources. Sec. 109. Prohibitions on surface occupancy and other appropriate environmental safeguards. Subtitle B—Expedited Judicial Review Sec. 121. Definitions. Sec. 122. Exclusive jurisdiction over causes and claims relating to covered oil and natural gas activities. Sec. 123. Time for filing petition; standing. Sec. 124. Timetable. Sec. 125. Limitation on scope of review and relief. Sec. 126. Legal fees. Sec. 127. Exclusion. Subtitle C—Other Energy Provisions Sec. 131. Policies regarding buying and building American. Title II—Modifying the Strategic Petroleum Reserve and Funding Conservation and Energy Research and Development Sec. 201. Findings. Sec. 202. Definitions. Sec. 203. Objectives. Sec. 204. Modification of the Strategic Petroleum Reserve. Title III—Arctic National Wildlife Refuge Sec. 301. Repeal of prohibition of leasing of Arctic National Wildlife Refuge. I Offshore Leasing and Other Energy Provisions A Offshore Leasing 101. Leasing program deemed approved (a) In general The Draft Proposed Outer Continental Shelf Oil and Gas Leasing Program 2017–2022 issued by the Secretary of the Interior (referred to in this section as the Secretary 43 U.S.C. 1344 (b) Additional included areas (1) In general The Program includes the following additional areas: (A) All areas in the Chukchi Sea. (B) All areas in the Beaufort Sea. (C) All areas in Bristol Bay. (D) All areas in previously leased areas off the coast of Virginia. (E) All other outer Continental Shelf planning areas that— (i) are estimated to contain more than 5,000,000,000 barrels of oil; and (ii) are estimated to contain more than 50,000,000,000,000 cubic feet of gas. (2) Determination of other areas To determine the planning areas described in paragraph (1), the Secretary shall use the document titled Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of the Nation’s Outer Continental Shelf, 2011 (c) Presidential exclusion prohibited The President may not exclude from oil and gas leasing any area included in the final oil and gas leasing program deemed approved under this section. (d) Final environmental impact statement The Secretary is deemed to have issued a final environmental impact statement for the final oil and gas leasing program deemed approved under this section in accordance with all requirements under section 102(2)(C) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2)(C) 102. Lease sales (a) Outer Continental Shelf (1) In general Except as provided in paragraph (2), not later than 30 days after the date of enactment of this Act and every 270 days thereafter, the Secretary of the Interior (referred to in this section as the Secretary (2) Subsequent determinations and sales If the Secretary determines that there is not a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in a planning area under this subsection, not later than 2 years after the date of enactment of the determination and every 2 years thereafter, the Secretary shall— (A) determine whether there is a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in the planning area; and (B) if the Secretary determines that there is a commercial interest described in subparagraph (A), conduct a lease sale in the planning area. (b) Renewable energy and mariculture The Secretary may conduct commercial lease sales of resources of the outer Continental Shelf (as that term is defined in the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 et seq. (1) to produce renewable energy (as defined in section 203(b) of the Energy Policy Act of 2005 ( 42 U.S.C. 15852(b) (2) to cultivate marine organisms in the natural habitat of the organisms. 103. Seaward boundaries of States (a) Seaward boundaries Section 4 of the Submerged Lands Act ( 43 U.S.C. 1312 three geographical miles 9 nautical miles (b) Conforming amendments Section 2 of the Submerged Lands Act ( 43 U.S.C. 1301 (1) in subsection (a)(2), by striking three geographical miles 9 nautical miles (2) in subsection (b)— (A) by striking three geographical miles 9 nautical miles (B) by striking three marine leagues 9 nautical miles (c) Effect of amendments (1) In general Subject to paragraphs (2) through (4), the amendments made by this section shall not affect Federal oil and gas mineral rights and should not affect the States’ current authority within existing State boundaries. (2) Existing leases The amendments made by this section shall not affect any Federal oil and gas lease in effect on the date of enactment of this Act. (3) Taxation (A) In general A State may exercise all of the sovereign powers of taxation of the State within the entire extent of the seaward boundaries of the State (as extended by the amendments made by this section). (B) Limitation Nothing in this paragraph affects the authority of a State to tax any Federal oil and gas lease in effect on the date of enactment of this Act. 104. Military operations The Secretary shall consult with the Secretary of Defense regarding military operations needs in the Outer Continental Shelf. The Secretary shall work with the Secretary of Defense to resolve any conflicts that might arise between such operations and leasing under this section. If the Secretaries are unable to resolve all such conflicts, any unresolved issues shall be referred by the Secretaries to the President in a timely fashion for immediate resolution. 105. Coordination with Adjacent States Section 19 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1345 (1) in subsection (a) in the first sentence by inserting , for any tract located within the Adjacent State’s Adjacent Zone, government (2) by adding the following: (f) (1) Prior to issuing a permit or approval for the construction of a pipeline to transport crude oil, natural gas or associated liquids production withdrawn from oil and gas leases on the outer Continental Shelf, a Federal agency must seek the concurrence of the Adjacent State if the pipeline is to transit the Adjacent State’s Adjacent Zone between the outer Continental Shelf and landfall. No State may prohibit construction of such a pipeline within its Adjacent Zone or its State waters. However, an Adjacent State may require routing of such a pipeline to one of two alternate landfall locations in the Adjacent State, designated by the Adjacent State, located within 60 miles on either side of a proposed landfall location. (2) In this subsection: (A) The term Adjacent State State (B) The term Adjacent Zone . 106. Gulf of Mexico oil and gas (a) Repeal Section 104 of division C of the Tax Relief and Health Care Act of 2006 ( Public Law 109–432 (b) Leasing plan for the Eastern Gulf of Mexico Pursuant to sections 101 and 102 of this Act, the Secretary of the Interior shall issue a final leasing plan for the Eastern Gulf of Mexico within 180 days after the date of enactment of this Act for all areas where there exists commercial interest in purchasing Federal oil and gas leases for production. 107. Sharing of revenues (a) In general Section 8(g) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(g) (1) in paragraph (2) by striking Notwithstanding Except as provided in paragraph (6), and notwithstanding (2) by redesignating paragraphs (6) and (7) as paragraphs (8) and (9); and (3) by inserting after paragraph (5) the following: (6) Bonus bids and royalties under qualified leases (A) New leases Of amounts received by the United States as bonus bids, royalties, rentals, and other sums collected under any new qualified lease on submerged lands made available for leasing under this Act by the enactment of the Infrastructure Jobs and Energy Independence Act (i) 30 percent shall be paid to the States that are producing States with respect to those submerged lands that are located within the seaward boundaries of such a State established under section 4(a)(2)(A); (ii) 10 percent shall be deposited in the general fund of the Treasury used solely for paying off the national debt; and (iii) 60 percent shall be deposited in the Infrastructure Renewal Reserve established by paragraph (7). (B) Leased tract that lies partially within the seaward boundaries of a state In the case of a leased tract that lies partially within the seaward boundaries of a State, the amounts of bonus bids and royalties from such tract that are subject to subparagraph (A)(ii) with respect to such State shall be a percentage of the total amounts of bonus bids and royalties from such tract that is equivalent to the total percentage of surface acreage of the tract that lies within such seaward boundaries. (C) Use of payments to states Amounts paid to a State under subparagraph (A)(ii) shall be used by the State for one or more of the following: (i) Education. (ii) Transportation. (iii) Coastal restoration, environmental restoration, and beach replenishment. (iv) Energy infrastructure. (v) Renewable energy development. (vi) Energy efficiency and conservation. (vii) Any other purpose determined by State law. (D) Definitions In this paragraph: (i) Adjacent state The term Adjacent State (ii) Adjacent zone The term Adjacent Zone (iii) Producing state The term producing State (iv) State The term State (v) Qualified lease The term qualified lease Infrastructure Jobs and Energy Independence Act (E) Application This paragraph shall apply to bonus bids and royalties received by the United States under qualified leases after implementation of sections 105 and 106 of the Infrastructure Jobs and Energy Independence Act (F) Existing revenues All revenues including revenues, including bonus bids, royalties, rentals, and other sums, collected from leases issued under this Act prior to the enactment Infrastructure Jobs and Energy Independence Act (7) Establishment of reserve accounts (A) In general For budgetary purposes, there is established as a separate account to receive deposits under paragraph (6)(A)— (i) the Infrastructure Renewal Reserve, which shall be applied to offset the costs of— (I) Federal-aid highway and highway safety construction programs carried out by the Secretary of Transportation; (II) public transportation programs carried out by the Secretary of Transportation; (III) water resources development construction projects carried out by the Secretary of the Army (acting through the Chief of Engineers); and (IV) legislation enacted after the date of the enactment of the Infrastructure Jobs and Energy Independence Act (ii) the Clean Water Reserve, which shall be applied to offset the costs of programs under the Federal Water Pollution Control Act, the Safe Drinking Water Act, and the Safe Drinking Water Act Amendments of 1996 that provide assistance, such as grants, matching grants, and no- and low-interest loans, to States and municipalities, including construction programs to rebuild and modernize clean water and sewage infrastructure. (B) Deposit of balance from SPR Petroleum Account In addition to deposits under paragraph (6)(A), the Secretary shall transfer to the Infrastructure Renewal Reserve the balance of funds in the SPR Petroleum Account on the date of enactment of this Act in excess of $10,000,000. (C) Procedure for adjustments (i) Budget committee chairman After the reporting of a bill or joint resolution, or the offering of an amendment thereto or the submission of a conference report thereon, providing funding for the purposes set forth in clause (i) or (ii) of subparagraph (A) in excess of the sum of amount of the deposits under paragraph (6)(A) for those purposes for fiscal year 2016 and funds deposited under subparagraph (B) of this paragraph, the chairman of the Committee on the Budget of the applicable House of Congress shall make the adjustments set forth in clause (ii) for the amount of new budget authority and outlays in that measure and the outlays flowing from that budget authority. (ii) Matters to be adjusted The adjustments referred to in clause (i) are to be made to— (I) the discretionary spending limits, if any, set forth in the appropriate concurrent resolution on the budget; (II) the allocations made pursuant to the appropriate concurrent resolution on the budget pursuant to section 302(a) of the Congressional Budget Act of 1974; and (III) the budget aggregates contained in the appropriate concurrent resolution on the budget as required by section 301(a) of the Congressional Budget Act of 1974. (iii) Amounts of adjustments The adjustments referred to in clauses (i) and (ii) shall not exceed the receipts estimated by the Congressional Budget Office that are attributable to this Act for the fiscal year in which the adjustments are made. (8) Maintenance of effort by States The Secretary of the Interior, the Secretary of Health and Human Services, the Secretary of Energy, and any other Federal official with authority to implement legislation referred to in paragraph (6)(A) shall ensure that financial assistance provided to a State under that legislation for any purpose with amounts made available under this subsection or in any legislation with respect to which paragraph (7) applies supplement, and do not replace, the amounts expended by the State for that purpose before the date of the enactment of the Infrastructure Jobs and Energy Independence Act (9) Distributions for Federal-aid highway or highway safety construction program To the extent practicable, amounts made available for a Federal-aid highway or highway safety construction program, the costs of which are offset by application of the Infrastructure Renewal Reserve, shall be distributed using the apportionment formula that applies to that program. . (b) Establishment of State Seaward Boundaries Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1333(a)(2)(A) , and the President . Such extended lines are deemed to be 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 Atlantic OCS Region State Adjacent Zones and OCS Planning Areas Public Law 109–432 108. Inventory of offshore energy resources (a) In general The Secretary of the Interior (in this section referred to as the Secretary (b) Environmental studies Not later than 180 days after the date of enactment of this Act, the Secretary shall complete any environmental studies necessary to gather information essential to an accurate inventory, including geological and geophysical explorations under part 251 of title 30, Code of Federal Regulations (or successor regulations). (c) Effect on oil and gas leasing No inventory that is conducted under this section or any other Federal law (including regulations) shall restrict, limit, delay, or otherwise adversely affect— (1) the development of any Outer Continental Shelf leasing program under section 18 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344 (2) any leasing, exploration, development, or production of any Federal offshore oil and gas leases. (d) Funding (1) In general The Secretary of the Treasury shall make a one-time transfer to the Secretary, without further appropriation and from royalties collected by the United States in conjunction with the production of oil and gas, of such sums as are necessary for the Secretary to carry out this section. (2) Limitation The amount transferred under paragraph (1) shall not exceed $50,000,000. 109. Prohibitions on surface occupancy and other appropriate environmental safeguards (a) Regulations (1) In general (A) Environmental safeguards The Secretary of the Interior shall promulgate regulations that establish appropriate environmental safeguards for the exploration and production of oil and natural gas on the outer Continental Shelf. (B) Safety protocols All operations, including under any permit issued pursuant to an application for a permit to drill or an application for a permit to sidetrack, that has been approved by the Minerals Management Service or the Bureau of Ocean Energy Management, Regulation and Enforcement, for purposes of outer Continental Shelf energy exploration or development and production, shall be carried out in accordance with the safety protocols contained in part 250 of title 30, Code of Federal Regulations. (2) Requirements The regulations shall include provisions ensuring that— (A) no surface facility shall be installed for the purpose of production of oil or gas resources in any area that is within 10 miles from the shore of any coastal State, in any area of the Outer Continental Shelf that has not previously been made available for oil and gas leasing; (B) only temporary surface facilities are installed for areas that are located— (i) beyond 10 miles from the shore of any coastal State, in any area of the Outer Continental Shelf that has not previously been made available for oil and gas leasing; and (ii) not more than 20 miles from the shore; (C) the impact of offshore production facilities on coastal vistas is otherwise mitigated; and (D) onshore facilities that are able to draw upon the resources of the outer Continental Shelf within 10 miles of shore are allowed. (b) Conforming amendment Section 105 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2006 ( Public Law 109–54 43 U.S.C. 1331 Public Law 109–432 and any other area that the Secretary of the Interior may offer for leasing, preleasing, or any related activity under section 104 of that Act 2006) B Expedited Judicial Review 121. Definitions In this subtitle: (1) Authorizing leasing statute The term authorizing leasing statute 43 U.S.C. 1331 et seq. 30 U.S.C. 181 et seq. 30 U.S.C. 351 et seq. (2) Covered oil and natural gas activity The term covered oil and natural gas activity (A) the leasing of any lands pursuant to an authorizing leasing statute for the exploration, development, production, processing, or transmission of oil, natural gas, or associated hydrocarbons, including actions or decisions relating to the selection of which lands may or shall be made available for such leasing; and (B) any activity taken or proposed to be taken pursuant or in relation to such leases, including their suspension, and any environmental analyses relating to such activity. 122. Exclusive jurisdiction over causes and claims relating to covered oil and natural gas activities Notwithstanding any other provision of law, any Federal action approving any covered oil and natural gas activity shall be subject to judicial review only— (1) in the United States Court of Appeals for the District of Columbia Circuit; and (2) after the person filing a petition seeking such judicial review has exhausted all available administrative remedies with respect to such Federal action. 123. Time for filing petition; standing (a) In general All petitions referred to in section 122 must be filed within 30 days after the latter of the challenged Federal action or the exhaustion of all available administrative remedies with respect to such Federal action. A claim or challenge shall be barred unless it is filed within the time specified. (b) Standing No person whose legal rights will not be directly and adversely affected by the challenged action, and who is not within the zone of interest protected by each Act under which the challenge is brought, shall have standing to file any petition referred to in section 122. 124. Timetable The United States Court of Appeals for the District of Columbia Circuit shall complete all judicial review, including rendering a judgment, before the end of the 120-day period beginning on the date on which a petition referred to in section 122 is filed, unless all parties to such proceeding agree to an extension of such period. 125. Limitation on scope of review and relief (a) Administrative findings and conclusions In any judicial review referred to in section 122, any administrative findings and conclusions relating to the challenged Federal action shall be presumed to be correct unless shown otherwise by clear and convincing evidence contained in the administrative record. (b) Limitation on prospective relief In any judicial review referred to in section 122, the Court shall not grant or approve any prospective relief unless the court finds that such relief is narrowly drawn, extends no further than necessary to correct the violation of a Federal law requirement, and is the least intrusive means necessary to correct the violation concerned. 126. Legal fees Any person filing a petition referred to in section 122 who is not a prevailing party shall pay to the prevailing parties (including intervening parties), other than the United States, fees and other expenses incurred by that party in connection with the judicial review, unless the Court finds that the position of the person was substantially justified or that special circumstances make an award unjust. 127. Exclusion Section 122 shall not apply to disputes between the parties to a lease issued pursuant to an authorizing leasing statute regarding the obligations of such lease or the alleged breach thereof. C Other Energy Provisions 131. Policies regarding buying and building American (a) Intent of Congress It is the intent of the Congress that this Act, among other things, result in a healthy and growing American industrial, manufacturing, transportation, and service sector employing the vast talents of America’s workforce to assist in the development of energy from domestic sources. Moreover, the Congress intends to monitor the deployment of personnel and material onshore and offshore to encourage the development of American technology and manufacturing to enable United States workers to benefit from this Act by good jobs and careers, as well as the establishment of important industrial facilities to support expanded access to American resources. (b) Safeguard for extraordinary ability Section 30(a) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1356(a) regulations which regulations that shall be supplemental and complimentary with and under no circumstances a substitution for the provisions of the Constitution and laws of the United States extended to the subsoil and seabed of the outer Continental Shelf pursuant to section 4 of this Act, except insofar as such laws would otherwise apply to individuals who have extraordinary ability in the sciences, arts, education, or business, which has been demonstrated by sustained national or international acclaim, and that (c) Work standards All construction, repair, or alteration of public buildings and public works of the Government and buildings or works financed or otherwise assisted in whole or in part under this Act by a loan, loan guarantee, grant, annual contribution, credit enhancement, or any other form of Federal assistance authorized under this Act shall be performed in accordance with the standards applicable to comparable activity under any other provision of law, without regard to the form or type of Federal assistance provided thereunder. II Modifying the Strategic Petroleum Reserve and Funding Conservation and Energy Research and Development 201. Findings Congress finds the following: (1) The Strategic Petroleum Reserve (SPR) was created by Congress in 1975, to protect the Nation from any future oil supply disruptions. When the program was established, United States refiners were capable of handling light crude and medium crude and the makeup of the SPR matched this capacity. This is not the case today. (2) A GAO analysis found that nearly half of the refineries considered vulnerable to supply disruptions are not compatible with the types of oil currently stored in the SPR and would be unable to maintain normal refining capacity if forced to rely on SPR oil as currently constituted, thereby reducing the effectiveness of the SPR in the event of a supply disruption. GAO concluded that the SPR should be comprised of at least 10 percent heavy crude. (3) This Act implements the GAO recommendation and dedicates funds received from the transactions to existing energy conservation, research, and assistance programs. 202. Definitions In this title— (1) the term light grade petroleum (2) the term heavy grade petroleum (3) the term Secretary 203. Objectives The objectives of this title are as follows: (1) To modernize the composition of the Strategic Petroleum Reserve to reflect the current processing capabilities of refineries in the United States. (2) To provide increased funding to accelerate conservation, energy research and development, and assistance through existing programs. 204. Modification of the Strategic Petroleum Reserve Notwithstanding section 161 of the Energy Policy and Conservation Act ( 42 U.S.C. 6241 (1) exchange as soon as possible light grade petroleum from the Strategic Petroleum Reserve, in an amount equal to 10 percent of the total number of barrels of crude oil in the Reserve as of the date of enactment of this Act, for an equivalent volume of heavy grade petroleum plus any additional cash bonus bids received that reflect the difference in the market value between light grade petroleum and heavy grade petroleum and the timing of deliveries of the heavy grade petroleum; (2) from the gross proceeds of the cash bonus bids, deposit the amount necessary to pay for the direct administrative and operational costs of the exchange into the SPR Petroleum Account established under section 167 of the Energy Policy and Conservation Act ( 42 U.S.C. 6247 (3) deposit 90 percent of the remaining net proceeds from the exchange into the Infrastructure Renewal Reserve established in section 107. III Arctic National Wildlife Refuge 301. Repeal of prohibition of leasing of Arctic National Wildlife Refuge (a) Repeal Section 1003 of the Alaska National Interest Lands Conservation Act ( 16 U.S.C. 3143 (b) Conforming amendment The table of contents contained in section 1 of that Act ( 16 U.S.C. 3101

Summary: Infrastructure Jobs and Energy Independence Act Deems the Draft Proposed Outer Continental Shelf Oil and Gas Leasing Program 2017-2022 (Program) issued by the Secretary of the Interior to be approved as a final oil and gas leasing program under the Outer Continental Shelf Lands Act, including the modifications to the Program as prescribed by this Act. Includes the following additional areas within the Program: (1) the Chukchi Sea; (2) the Beaufort Sea; (3) Bristol Bay; (4) previously leased areas off the coast of Virginia; and (5) all other outer Continental Shelf planning areas estimated to contain over 5 billion barrels of oil, and more than 50 billion cubic feet of gas. Prohibits the President from excluding from oil and gas leasing any area included in the final oil and gas leasing program deemed approved under this Act. Deems the Secretary to have issued a final environmental impact statement for the Program under the National Environmental Policy Act of 1969. Directs the Secretary to: (1) conduct a lease sale in each outer Continental Shelf (OCS) planning area for which there is a commercial interest in purchasing federal oil and gas production leases, (2) prepare an inventory of U.S. offshore energy resources, and (3) promulgate regulations governing the production of oil or gas resources of the OCS. Authorizes the Secretary conduct commercial lease sales of OCS resources to produce renewable energy and cultivate marine organisms in their natural habitats. Extends from three geographical miles to nine nautical miles the allowable seaward boundary of a coastal state. Repeals the moratorium on oil and gas leasing in: (1) any area east of the Military Mission Line in the Gulf of Mexico, (2) any area in the Eastern Planning Area that is within 125 miles of the Florida coastline, and (3) specified areas within the Central Planning Area and within 100 miles of the Florida coastline. Requires the Secretary to issue a final leasing plan for the Eastern Gulf of Mexico for all areas where there exists commercial interest in purchasing federal oil and gas leases for production. Requires the Secretary of Energy to: (1) publish a plan to exchange a specified amount of light grade petroleum from the Strategic Petroleum Reserve for heavy grade petroleum plus additional cash bonus bids that reflect the difference in market value between light grade and heavy grade petroleum and the timing of deliveries of heavy grade petroleum, and (2) deposit 90% of the remaining net proceeds from the exchange into the Infrastructure Renewal Reserve. Amends the Alaska National Interest Lands Conservation Act to repeal the prohibition against leasing or other development leading to production of oil and gas from the Arctic National Wildlife Refuge.