104 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(38) to the extent provided in section 
179F(f).’’. 
(4) Section 1245(a) of such Code is amended 
by inserting ‘‘179F,’’ after ‘‘179E,’’ both places it 
appears in paragraphs (2)(C) and (3)(C). 
(5) The table of sections for part VI of sub-
chapter B of such Code is amended by inserting 
after the item relating to section 179E the following 
new item: 
‘‘Sec. 179F. Energy efficient low-rise buildings deduction.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
Subtitle B—Clean Coal Alternative 
Transition 
SEC. 2101. CARBON DIOXIDE STORAGE CAPACITY ASSESS-
MENT. 
(a) DEFINITIONS.—In this section: 
(1) ASSESSMENT.—The term ‘‘assessment’’ 
means the national assessment of capacity for car-
bon dioxide completed under subsection (f). 
(2) CAPACITY.—The term ‘‘capacity’’ means the 
portion of a storage formation that can retain car-
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bon dioxide in accordance with the requirements (in-
cluding physical, geological, and economic require-
ments) established under the methodology developed 
under subsection (b). 
(3) ENGINEERED
HAZARD.—The term ‘‘engi-
neered hazard’’ includes the location and completion 
history of any well that could affect potential stor-
age. 
(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 Di-
rector 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 sub-
section (f), taking into consideration— 
(1) the geographical extent of all potential stor-
age formations in all States; 
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(2) the capacity of the potential storage forma-
tions; 
(3) the injectivity of the potential storage for-
mations; 
(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 stor-
age 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, devel-
opment of the methodology, and content of the 
assessment required under this title to ensure 
the maximum usefulness and success of the as-
sessment. 
(B) COOPERATION.—The Secretary of En-
ergy and the Administrator shall cooperate with 
the Secretary to ensure, to the maximum extent 
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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 assess-
ment. 
(d) EXTERNAL REVIEW
AND PUBLICATION.—On 
completion of the methodology under subsection (b), the 
Secretary shall— 
(1) publish the methodology and solicit com-
ments from the public and the heads of affected 
Federal and State agencies; 
(2) establish a panel of individuals with exper-
tise in the matters described in paragraphs (1) 
through (5) of subsection (b) composed, as appro-
priate, of representatives of Federal agencies, insti-
tutions of higher education, nongovernmental organi-
zations, State organizations, industry, and inter-
national geoscience organizations to review the 
methodology and comments received under para-
graph (1); and 
(3) on completion of the review under para-
graph (2), publish in the Federal Register the re-
vised final methodology. 
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(e) PERIODIC UPDATES.—The methodology devel-
oped under this section shall be updated periodically (in-
cluding 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 sur-
veys, shall complete a national assessment of capac-
ity for carbon dioxide in accordance with the meth-
odology. 
(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 ca-
pacity of carbon dioxide in geological storage forma-
tions, including— 
(A) well log data; 
(B) core data; and 
(C) fluid sample data. 
(3) PARTNERSHIP WITH OTHER DRILLING PRO-
GRAMS.—As part of the drilling program under 
paragraph (2), the Secretary shall enter, as appro-
priate, into partnerships with other entities to collect 
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109 
and integrate data from other drilling programs rel-
evant 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 incor-
porate 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 Com-
mittee on Science and Technology of the House of 
Representatives a report describing the findings 
under the assessment. 
(6) PERIODIC UPDATES.—The national assess-
ment developed under this section shall be updated 
periodically (including at least once every 5 years) to 
support public and private sector decisionmaking. 
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(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. 2102. 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 con-
duct an efficiency audit, and quantify the operating effi-
ciencies, 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 sub-
section (a), the Secretary, in consultation with the Admin-
istrator of the Environmental Protection Agency, shall 
submit to the Committees on Energy and Natural Re-
sources 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 tech-
nologies, processes, and other approaches to increas-
ing the efficiency of the coal-fired electric generation 
facilities audited; 
(2) includes a methodology for determining 
which technologies and processes, in the absence of 
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111 
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, re-
spectively, of the technologies or processes; 
(3) identifies the technical, economic, regu-
latory, environmental, and other obstacles to coal- 
fired electric generation facilities undertaking the in-
stallation 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 im-
plementation of those technologies and proc-
esses. 
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112 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
Subtitle C—Natural Gas Transition 
SEC. 2201. EXTENSION OF ALTERNATIVE VEHICLE CREDIT 
PURCHASE OF NATURAL GAS POWERED VE-
HICLE FROM 2010 TILL 2020; INCREASE IN 
AMOUNT OF CREDIT FOR CARS. 
(a) EXTENSION.—Section 30B(k)(4) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘2010’’ and 
inserting ‘‘2020’’. 
(b) INCREASE IN CREDIT AMOUNT FOR CARS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
(30)(B)(e)(3) of such Code is amended by striking 
‘‘$5,000’’ and inserting ‘‘$8,000’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to property purchased 
after December 31, 2008. 
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SEC. 2202. EXTENSION OF CREDIT OF 50 PERCENT OF THE 
AUTO CONVERSION COST TO A NATURAL GAS 
POWERED AUTOMOBILE FROM GASOLINE OR 
DIESEL POWERED ENGINE AND THE CNG 
HOME FILLING STATION COST. 
(a) AUTO CONVERSION.—Section 30B(k)(4) of the 
Internal Revenue Code is amended by striking ‘‘2010’’ 
and inserting ‘‘2020’’. 
(b) 
CNG 
HOME
FILLING
STATION.—Section 
30C(e)(6) of such Code is amended— 
(1) in the text by striking ‘‘2011’’ and inserting 
‘‘2021’’, and 
(2) in the heading by striking ‘‘and 2010’’ and 
inserting ‘‘through 2020’’. 
Subtitle D—Carbon Capture and 
Storage Credit 
SEC. 2301. INCREASE IN CARBON CAPTURE AND STORAGE 
TAX CREDIT. 
(a) APPLICATION OF SECTION.—Section 45Q(e) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘75,000,000’’ and inserting ‘‘225,000,000’’. 
(b) INCREASE IN CREDIT AMOUNT.— 
(1) Section 45(a) of such Code is amended— 
(A) in paragraph (1) by striking ‘‘$20’’ 
and inserting ‘‘$50’’, and 
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(B) in paragraph (2) by striking ‘‘$10’’ 
and inserting ‘‘$40’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
45Q(d)(7) of such Code is amended— 
(A) by striking ‘‘2009’’ and inserting 
‘‘2010’’, and 
(B) by striking ‘‘2008’’ and inserting 
‘‘2009’’. 
TITLE III—PRODUCTION 
Subtitle A—Outer Continental 
Shelf 
SEC. 3001. END MORATORIUM OF OIL AND GAS LEASING IN 
CERTAIN AREAS OF THE GULF OF MEXICO. 
(a) REPEAL OF MORATORIUM.— 
(1) REPEAL.—Section 104 of the Gulf of Mex-
ico Energy Security Act of 2006 (43 U.S.C. 1331 
note; Public Law 109–432) is repealed. 
(2) NATIONAL DEFENSE AREA.—Section 12(d) 
of the Outer Continental Shelf Lands Act (43 
U.S.C. 1341(d)) is amended— 
(A) by striking ‘‘(d) The United States’’ 
and inserting the following: 
‘‘(d) RESTRICTION OF AREAS FOR NATIONAL DE-
FENSE.— 
‘‘(1) IN GENERAL.—The United States’’; and 
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(B) by adding at the end the following: 
‘‘(2) REVIEW.—Annually, the Secretary of De-
fense shall review the areas of the outer Continental 
Shelf that have been designated as restricted from 
exploration and operation to determine whether the 
areas should remain under restriction.’’. 
(b) LEASING OF MORATORIUM AREAS.— 
(1) IN GENERAL.—As soon as practicable, but 
not later than 1 year, after the date of enactment 
of this Act, the Secretary shall offer for leasing 
under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.), any areas made available for 
leasing as a result of the enactment of subsection 
(a). 
(2) LEASING PLAN.—Any areas made available 
for leasing under paragraph (1) shall be offered for 
lease under this section notwithstanding the omis-
sion of any of these respective areas from the appli-
cable 5-year plan developed by the Secretary pursu-
ant to section 18 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1344). 
(c) MILITARY MISSION.—Section 104 of the Gulf of 
Mexico Energy Security Act of 2006 (43 U.S.C. 1331 
note; Public Law 109–432) is further amended— 
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Continental Shelf Lands Act (43 U.S.C. 1344) is consid-
ered to have been approved by the Secretary as a final 
oil and gas leasing program under that section. 
(b) FINAL ENVIRONMENTAL IMPACT STATEMENT.— 
The Secretary is considered to have issued a final environ-
mental impact statement for the program described in 
subsection (a) in accordance with all of the requirements 
of sections 18, 19, and 20 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1344, 1345, and 1346), in accord-
ance with all requirements under section 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)), and in accordance with all requirements of 
the Coastal Zone Management Act of 1972 (16 U.S.C. 
1451 et seq.) 
SEC. 3004. OUTER CONTINENTAL SHELF LEASE SALES. 
(a) REQUIREMENT TO CONDUCT LEASE SALES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), not later than one year after the date of 
enactment of this Act and annually thereafter, the 
Secretary of the Interior (referred to in this section 
as the ‘‘Secretary’’) shall conduct at a minimum one 
lease sale in an Atlantic Planning Area, one lease 
sale in the Pacific Planning Area, one lease sale in 
the Alaska Planning Area, and three lease sales in 
a Gulf of Mexico Planning Area for which the Sec-
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121 
retary determines that there is a commercial interest 
in purchasing Federal oil and gas leases for produc-
tion on the outer Continental Shelf. 
(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 Conti-
nental Shelf in a planning area under this sub-
section, not later than 2 years after the date of en-
actment of the determination and every 2 years 
thereafter, the Secretary shall— 
(A) determine whether there is a commer-
cial 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 subpara-
graph (A), conduct a lease sale in the planning 
area 
(b) LEASING PLAN.—Any areas made available for 
leasing under subsection (a) shall be offered for lease 
under this section notwithstanding the omission of any of 
these respective areas from the applicable 5-year plan de-
veloped by the Secretary pursuant to section 18 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1344). 
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122 
SEC. 3005. RESTRICTIONS ON LEASING OF THE OUTER CON-
TINENTAL SHELF. 
(a) STATE OPT-OUT.—No lease authorizing a perma-
nent surface energy project for the exploration, develop-
ment, or production of oil or gas may be issued for any 
area of the outer Continental Shelf located within 10 miles 
of the coastline of a State if the State has notified the 
Secretary of the Interior that the State does not want to 
participate in such leasing. 
(b) EXISTING LEASES NOT AFFECTED.—This sec-
tion shall not affect any lease issued before the date of 
enactment of this Act. 
SEC. 3006. SHARING OF OCS RECEIPTS WITH STATES AND 
LOCAL GOVERNMENTS. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended as follows: 
(1) By designating the existing text as sub-
section (a). 
(2) In subsection (a) (as so designated) by in-
serting ‘‘, if not paid as otherwise provided in this 
title’’ after ‘‘receipts’’. 
(3) by adding the following: 
‘‘(b) TREATMENT OF OCS RECEIPTS.— 
‘‘(1) DEPOSIT.—The Secretary shall deposit 
into a separate account in the Treasury the portion 
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123 
of OCS Receipts for each fiscal year that will be 
shared under paragraph (2). 
‘‘(2) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2009, the Secretary shall share 50 
percent of OCS Receipts derived from all leases, ex-
cept that the Secretary shall only share 25 percent 
of such OCS Receipts derived from all such leases 
within a State’s Adjacent Zone if leasing is not al-
lowed within at least 25 percent of that State’s Ad-
jacent Zone located completely within 75 miles of 
any coastline. 
‘‘(3) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
account established by paragraph (1) that are 
shared under paragraph (2) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties and net profit shares from a leased 
tract, including interest thereon, shall be allo-
cated at the end of each fiscal year as follows: 
‘‘(i) 50 percent to the Adjacent State. 
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124 
‘‘(ii) 50 percent to all States, includ-
ing the Adjacent State, having a coastline 
point within 300 miles of the leased tract, 
divided equally, if such State allows leasing 
within at least 25 percent of its Adjacent 
Zone within 75 miles of the coastline. 
‘‘(C) LIMITATION
IF
NOT
ADMITTED
TO 
THE UNION AS A STATE.—Any entity defined as 
a ‘State’ under section 2(r), that has not been 
admitted to the Union as a State shall only be 
entitled to one-half of a ‘State’ share under this 
paragraph. 
‘‘(c) 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)(2), 
(b)(3)(A), and (b)(3)(B) (i) and (ii) for the im-
mediate prior fiscal year; and 
‘‘(B) to each coastal county-equivalent and 
municipal political subdivisions of such State a 
total of 40 percent of such State’s allocations 
under 
subsections 
(b)(2), 
(b)(3)(A), 
and 
(b)(3)(B) (i) and (ii), for the immediate prior 
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125 
fiscal year, together with all accrued interest 
thereon. 
‘‘(2) ALLOCATIONS
TO
COASTAL
COUNTY- 
EQUIVALENT
POLITICAL
SUBDIVISIONS.—The Sec-
retary shall make an initial allocation of the OCS 
Receipts to be shared under paragraph (1)(B) as fol-
lows: 
‘‘(A) 25 percent shall be allocated to coast-
al 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 coast-
al county-equivalent political subdivisions based 
on population. 
‘‘(B) 75 percent shall be allocated to coast-
al 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 
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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-equiva-
lent political subdivisions without a coast-
line shall be considered to have 50 percent 
of the average coastline miles of the coast-
al county-equivalent political subdivisions 
that do have coastlines. 
‘‘(iii) 50 percent shall be allocated 
equally to all coastal county-equivalent po-
litical subdivisions having a coastline point 
within 300 miles of the leased tract for 
which OCS Receipts are being shared. 
‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO-
LITICAL
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 
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partially or wholly within the boundaries of the 
coastal county-equivalent political subdivision as fol-
lows: 
‘‘(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 subdivi-
sions and the county-equivalent political sub-
division, with the allocation to the latter based 
upon its population not included within the 
boundaries of a municipal political subdivision. 
‘‘(d) INVESTMENT OF DEPOSITS.—Amounts depos-
ited 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. 
‘‘(e) USE OF FUNDS.—A recipient of funds under 
this section may use the funds for one or more of the fol-
lowing: 
‘‘(1) To reduce in-State college tuition at public 
institutions of higher learning and otherwise support 
public education, including career technical edu-
cation. 
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‘‘(2) To make transportation infrastructure im-
provements. 
‘‘(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 mainte-
nance; 
‘‘(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; 
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‘‘(F) development of oil and gas resources 
through enhanced recovery techniques; 
‘‘(G) alternative energy development, in-
cluding bio fuels, 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 hydro-
carbons and other biological matter. 
‘‘(6) To promote, fund, and provide for— 
‘‘(A) historic preservation programs and 
projects; 
‘‘(B) natural disaster planning and re-
sponse; and 
‘‘(C) hurricane and natural disaster insur-
ance programs. 
‘‘(7) For any other purpose as determined by 
State law. 
‘‘(f) 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. How-
ever, States may enact legislation providing for accounting 
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130 
for and auditing of such expenditures. Further, funds allo-
cated under this section to States and political subdivi-
sions may be used as matching funds for other Federal 
programs. 
‘‘(g) 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 responsibil-
ities 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 automati-
cally prohibit any sharing of OCS Receipts under this sec-
tion directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Sec-
retary 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. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL 
SUBDIVISION.—The term ‘coastal county-equivalent 
political subdivision’ means a political jurisdiction 
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131 
immediately below the level of State government, in-
cluding a county, parish, borough in Alaska, inde-
pendent 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 SUBDIVI-
SION.—The term ‘coastal municipal political subdivi-
sion’ 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 coun-
ty-equivalent political subdivisions, as determined by 
the most recent official data of the Census Bureau. 
‘‘(4) COASTAL ZONE.—The term ‘coastal zone’ 
means that portion of a coastal State, including the 
entire territory of any coastal county-equivalent po-
litical 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 im-
plement this section. 
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‘‘(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, or from net profit shares, 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 Re-
ceipts were derived. 
‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 
means bonus bids and royalties, excluding royalties 
from leases amended under the authority of section 
8(s) of this Act.’’. 
Subtitle B—Arctic Coastal Plain 
SEC. 3101. DEFINITIONS. 
In this subtitle: 
(1) COASTAL
PLAIN.—The term ‘‘Coastal 
Plain’’ means that area identified as the ‘‘1002 
Coastal Plain Area’’ on the map. 
(2) FEDERAL AGREEMENT.—The term ‘‘Fed-
eral Agreement’’ means the Federal Agreement and 
Grant Right-of-Way for the Trans-Alaska Pipeline 
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issued on January 23, 1974, in accordance with sec-
tion 28 of the Mineral Leasing Act (30 U.S.C. 185) 
and the Trans-Alaska Pipeline Authorization Act 
(43 U.S.C. 1651 et seq.). 
(3) FINAL
STATEMENT.—The term ‘‘Final 
Statement’’ means the final legislative environmental 
impact statement on the Coastal Plain, dated April 
1987, and prepared pursuant to section 1002 of the 
Alaska National Interest Lands Conservation Act 
(16 U.S.C. 3142) and section 102(2)(C) of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)). 
(4) MAP.—The term ‘‘map’’ means the map en-
titled ‘‘Arctic National Wildlife Refuge’’, dated Sep-
tember 2005, and prepared by the United States Ge-
ological Survey. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior (or the designee of the 
Secretary), acting through the Director of the Bu-
reau of Land Management, in consultation with the 
Director of the United States Fish and Wildlife 
Service. 
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SEC. 3102. LEASING PROGRAM FOR LAND WITHIN THE 
COASTAL PLAIN. 
(a) IN GENERAL.—The Secretary shall take such ac-
tions as are necessary— 
(1) to establish and implement, in accordance 
with this subtitle, a competitive oil and gas leasing 
program that will result in an environmentally sound 
program for the exploration, development, and pro-
duction of the oil and gas resources of the Coastal 
Plain; and 
(2) to administer this subtitle through regula-
tions, lease terms, conditions, restrictions, prohibi-
tions, stipulations, and other provisions that— 
(A) ensure the oil and gas exploration, de-
velopment, and production activities on the 
Coastal Plain will result in no significant ad-
verse effect on fish and wildlife, their habitat, 
subsistence resources, and the environment; and 
(B) require the application of the best 
commercially available technology for oil and 
gas exploration, development, and production to 
all exploration, development, and production op-
erations 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.— 
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(1) REPEAL.—Section 1003 of the Alaska Na-
tional Interest Lands Conservation Act of 1980 (16 
U.S.C. 3143) is repealed. 
(2) CONFORMING AMENDMENT.—The table of 
contents contained in section 1 of that Act (16 
U.S.C. 3101 note) is amended by striking the item 
relating to section 1003. 
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.— 
(A) IN GENERAL.—Before conducting the 
first lease sale under this subtitle, the Secretary 
shall prepare an environmental impact state-
ment in accordance with the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) with respect to the actions authorized by 
this subtitle that are not referred to in para-
graph (2). 
(B) IDENTIFICATION
AND
ANALYSIS.— 
Notwithstanding any other provision of law, in 
carrying out this paragraph, the Secretary shall 
not be required— 
(i) to identify nonleasing alternative 
courses of action; or 
(ii) to analyze the environmental ef-
fects of those courses of action. 
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(C) IDENTIFICATION OF PREFERRED AC-
TION.—Not later than 18 months after the date 
of enactment of this Act, the Secretary shall— 
(i) identify only a preferred action and 
a single leasing alternative for the first 
lease sale authorized under this subtitle; 
and 
(ii) analyze the environmental effects 
and potential mitigation measures for 
those 2 alternatives. 
(D) PUBLIC COMMENTS.—In carrying out 
this paragraph, the Secretary shall consider 
only public comments that are filed not later 
than 20 days after the date of publication of a 
draft environmental impact statement. 
(E) EFFECT
OF
COMPLIANCE.—Notwith-
standing any other provision of law, compliance 
with this paragraph shall be considered to sat-
isfy all requirements for the analysis and con-
sideration of the environmental effects of pro-
posed leasing under this subtitle. 
(c) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this subtitle expands or limits any State 
or local regulatory authority. 
(d) SPECIAL AREAS.— 
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137 
(1) DESIGNATION.— 
(A) IN
GENERAL.—The Secretary, after 
consultation with the State of Alaska, the 
North Slope Borough, Alaska, and the City of 
Kaktovik, Alaska, may designate not more than 
45,000 acres of the Coastal Plain as a special 
area if the Secretary determines that the special 
area would be of such unique character and in-
terest as to require special management and 
regulatory protection. 
(B) SADLEROCHIT
SPRING
AREA.—The 
Secretary shall designate as a special area in 
accordance 
with 
subparagraph 
(A) 
the 
Sadlerochit Spring area, comprising approxi-
mately 4,000 acres as depicted on the map. 
(2) MANAGEMENT.—The Secretary shall man-
age each special area designated under this sub-
section in a manner that preserves the unique and 
diverse character of the area, including fish, wildlife, 
subsistence resources, and cultural values of the 
area. 
(3) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.— 
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(A) IN GENERAL.—The Secretary may ex-
clude any special area designated under this 
subsection from leasing. 
(B) NO SURFACE OCCUPANCY.—If the Sec-
retary leases all or a portion of a special area 
for the purposes of oil and gas exploration, de-
velopment, production, and related activities, 
there shall be no surface occupancy of the land 
comprising the special area. 
(4) DIRECTIONAL DRILLING.—Notwithstanding 
any other provision of this subsection, the Secretary 
may lease all or a portion of a special area under 
terms that permit the use of horizontal drilling tech-
nology from sites on leases located outside the spe-
cial area. 
(e) LIMITATION ON CLOSED AREAS.—The Secretary 
may not close land within the Coastal Plain to oil and gas 
leasing or to exploration, development, or production ex-
cept in accordance with this subtitle. 
(f) REGULATIONS.— 
(1) IN GENERAL.—Not later than 15 months 
after the date of enactment of this Act, the Sec-
retary shall promulgate such regulations as are nec-
essary to carry out this subtitle, including rules and 
regulations relating to protection of the fish and 
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139 
wildlife, fish and wildlife habitat, subsistence re-
sources, and environment of the Coastal Plain. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary shall periodically review and, as appropriate, 
revise the rules and regulations issued under para-
graph (1) to reflect any significant biological, envi-
ronmental, scientific or engineering data that come 
to the attention of the Secretary. 
SEC. 3103. LEASE SALES. 
(a) IN GENERAL.—Land 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 regula-
tion, establish procedures for— 
(1) receipt and consideration of sealed nomina-
tions 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 that nomina-
tion process; and 
(3) public notice of and comment on designa-
tion of areas to be included in, or excluded from, a 
lease sale. 
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140 
(c) LEASE SALE BIDS.—Bidding for leases under 
this subtitle shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—For 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, tak-
ing 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) not later than 22 months after the date of 
enactment of this Act, conduct the first lease sale 
under this subtitle; 
(2) not later than 90 days after the date of the 
completion of the sale, evaluate the bids in the sale 
and issue leases resulting from the sale; and 
(3) conduct additional sales at appropriate in-
tervals if sufficient interest in exploration or devel-
opment exists to warrant the conduct of the addi-
tional sales. 
SEC. 3104. GRANT OF LEASES BY THE SECRETARY. 
(a) IN GENERAL.—On payment by a lessee of such 
bonus as may be accepted by the Secretary, the Secretary 
may grant to the highest responsible qualified bidder in 
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a lease sale conducted pursuant to section 3103 a lease 
for any land on the Coastal Plain. 
(b) SUBSEQUENT TRANSFERS.— 
(1) IN GENERAL.—No lease issued under this 
subtitle may be sold, exchanged, assigned, sublet, or 
otherwise transferred except with the approval of the 
Secretary. 
(2) CONDITION FOR APPROVAL.—Before grant-
ing any approval described in paragraph (1), the 
Secretary shall consult with and give due consider-
ation to the opinion of the Attorney General. 
SEC. 3105. LEASE TERMS AND CONDITIONS. 
An oil or gas lease issued pursuant to this subtitle 
shall— 
(1) provide for the payment of a royalty of not 
less than 121⁄2 percent of the amount or value of the 
production removed or sold from the lease, as deter-
mined by the Secretary in accordance with regula-
tions applicable to other Federal oil and gas leases; 
(2) provide that the Secretary may close, on a 
seasonal basis, such portions of the Coastal Plain to 
exploratory drilling activities as are necessary to 
protect caribou calving areas and other species of 
fish and wildlife; 
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142 
(3) require that each lessee of land within the 
Coastal Plain shall be fully responsible and liable for 
the reclamation of land within the Coastal Plain and 
any other Federal land that is adversely affected in 
connection with exploration, development, produc-
tion, or transportation activities within the Coastal 
Plain conducted by the lessee or by any of the sub-
contractors or agents of the lessee; 
(4) provide that the lessee may not delegate or 
convey, by contract or otherwise, that reclamation 
responsibility and liability to another person without 
the express written approval of the Secretary; 
(5) provide that the standard of reclamation for 
land required to be reclaimed under this subtitle 
shall be, to the maximum extent practicable— 
(A) a condition capable of supporting the 
uses that the land was capable of supporting 
prior to any exploration, development, or pro-
duction activities; or 
(B) on application by the lessee, to a high-
er or better standard, as approved by the Sec-
retary; 
(6) contain terms and conditions relating to 
protection of fish and wildlife, fish and wildlife habi-
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tat, subsistence resources, and the environment as 
required under section 3102(a)(2); 
(7) provide that each lessee, and each agent 
and contractor of a lessee, use their best efforts to 
provide a fair share of employment and contracting 
for Alaska Natives and Alaska Native Corporations 
from throughout the State of Alaska, as determined 
by the level of obligation previously agreed to in the 
Federal Agreement; and 
(8) contain such other provisions as the Sec-
retary determines to be necessary to ensure compli-
ance with this subtitle and the regulations promul-
gated under this subtitle. 
SEC. 3106. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 
(a) NO SIGNIFICANT ADVERSE EFFECT STANDARD 
TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 
In accordance with section 3102, the Secretary shall ad-
minister this subtitle through regulations, lease terms, 
conditions, restrictions, prohibitions, stipulations, or other 
provisions that— 
(1) ensure, to the maximum extent practicable, 
that oil and gas exploration, development, and pro-
duction activities on the Coastal Plain will result in 
no significant adverse effect on fish and wildlife, fish 
and wildlife habitat, and the environment; 
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(2) require the application of the best commer-
cially available technology for oil and gas explo-
ration, development, and production on all new ex-
ploration, development, and production operations; 
and 
(3) ensure that the maximum surface acreage 
covered in connection with the leasing program 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 require, with respect to any proposed 
drilling and related activities on the Coastal Plain, that— 
(1) a site-specific analysis be made of the prob-
able effects, if any, that the drilling or related activi-
ties will have on fish and wildlife, fish and wildlife 
habitat, subsistence resources, subsistence uses, and 
the environment; 
(2) a plan be implemented to avoid, minimize, 
and mitigate (in that order and to the maximum ex-
tent practicable) any significant adverse effect iden-
tified under paragraph (1); and 
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(3) the development of the plan shall occur 
after consultation with the 1 or more agencies hav-
ing 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 leas-
ing program authorized by this subtitle, the Secretary 
shall prepare and issue regulations, lease terms, condi-
tions, restrictions, prohibitions, stipulations, or other 
measures designed to ensure, to the maximum extent prac-
ticable, that the activities carried out 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 ENVI-
RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 
proposed regulations, lease terms, conditions, restrictions, 
prohibitions, and stipulations for the leasing program 
under this subtitle shall require— 
(1) compliance with all applicable provisions of 
Federal and State environmental law (including reg-
ulations); 
(2) implementation of and compliance with— 
(A) standards that are at least as effective 
as the safety and environmental mitigation 
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measures, as described in items 1 through 29 
on pages 167 through 169 of the Final State-
ment, on the Coastal Plain; 
(B) seasonal limitations on exploration, de-
velopment, and related activities, as necessary, 
to avoid significant adverse effects during peri-
ods of concentrated fish and wildlife breeding, 
denning, nesting, spawning, and migration; 
(C) design safety and construction stand-
ards for all pipelines and any access and service 
roads that minimize, to the maximum extent 
practicable, adverse effects on— 
(i) the passage of migratory species 
(such as caribou); and 
(ii) the flow of surface water by re-
quiring the use of culverts, bridges, or 
other structural devices; 
(D) prohibitions on general public access 
to, and use of, all pipeline access and service 
roads; 
(E) stringent reclamation and rehabilita-
tion requirements in accordance with this sub-
title for the removal from the Coastal Plain of 
all oil and gas development and production fa-
cilities, structures, and equipment on comple-
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tion of oil and gas production operations, except 
in a case in which the Secretary determines 
that those facilities, structures, or equipment— 
(i) would assist in the management of 
the Arctic National Wildlife Refuge; and 
(ii) are donated to the United States 
for that purpose; 
(F) appropriate prohibitions or restrictions 
on— 
(i) access by all modes of transpor-
tation; 
(ii) sand and gravel extraction; and 
(iii) use of explosives; 
(G) reasonable stipulations for protection 
of cultural and archaeological resources; 
(H) measures to protect groundwater and 
surface water, including— 
(i) avoidance, to the maximum extent 
practicable, of springs, streams, and river 
systems; 
(ii) the protection of natural surface 
drainage patterns and wetland and ripar-
ian habitats; and 
(iii) the regulation of methods or tech-
niques for developing or transporting ade-
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quate supplies of water for exploratory 
drilling; and 
(I) research, monitoring, and reporting re-
quirements; 
(3) that exploration activities (except surface 
geological studies) be limited to the period between 
approximately November 1 and May 1 of each year 
and be supported, if necessary, by ice roads, winter 
trails with adequate snow cover, ice pads, ice air-
strips, and air transport methods (except that those 
exploration activities may be permitted at other 
times if the Secretary determines that the explo-
ration will have no significant adverse effect on fish 
and wildlife, fish and wildlife habitat, and the envi-
ronment of the Coastal Plain); 
(4) consolidation of facility siting; 
(5) avoidance or reduction of air traffic-related 
disturbance to fish and wildlife; 
(6) treatment and disposal of hazardous and 
toxic wastes, solid wastes, reserve pit fluids, drilling 
muds and cuttings, and domestic wastewater, includ-
ing, in accordance with applicable Federal and State 
environmental laws (including regulations)— 
(A) preparation of an annual waste man-
agement report; 
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(B) development and implementation of a 
hazardous materials tracking system; and 
(C) prohibition on the use of chlorinated 
solvents; 
(7) fuel storage and oil spill contingency plan-
ning; 
(8) conduct of periodic field crew environmental 
briefings; 
(9) avoidance of significant adverse effects on 
subsistence hunting, fishing, and trapping; 
(10) compliance with applicable air and water 
quality standards; 
(11) appropriate seasonal and safety zone des-
ignations around well sites, within which subsistence 
hunting and trapping shall be limited; and 
(12) development and implementation of such 
other protective environmental requirements, restric-
tions, terms, or conditions as the Secretary deter-
mines to be necessary. 
(e) CONSIDERATIONS.—In preparing and issuing reg-
ulations, lease terms, conditions, restrictions, prohibitions, 
or stipulations under this section, the Secretary shall take 
into consideration— 
(1) the stipulations and conditions that govern 
the National Petroleum Reserve-Alaska leasing pro-
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gram, 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 through 37.33 of title 
50, Code of Federal Regulations (or successor regu-
lations); and 
(3) the land use stipulations for exploratory 
drilling on the KIC–ASRC private land described in 
appendix 2 of the agreement between Arctic Slope 
Regional Corporation and the United States dated 
August 9, 1983. 
(f) FACILITY CONSOLIDATION PLANNING.— 
(1) IN GENERAL.—After providing for public 
notice and comment, the Secretary shall prepare and 
periodically update a plan to govern, guide, and di-
rect the siting and construction of facilities for the 
exploration, development, production, and transpor-
tation of oil and gas resources from the Coastal 
Plain. 
(2) OBJECTIVES.—The objectives of the plan 
shall be— 
(A) the avoidance of unnecessary duplica-
tion of facilities and activities; 
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(B) the encouragement of consolidation of 
common facilities and activities; 
(C) the location or confinement of facilities 
and activities to areas that will minimize impact 
on fish and wildlife, fish and wildlife habitat, 
subsistence resources, and the environment; 
(D) the use of existing facilities, to the 
maximum extent practicable; and 
(E) the enhancement of compatibility be-
tween wildlife values and development activities. 
(g) ACCESS
TO
PUBLIC
LAND.—The Secretary 
shall— 
(1) manage public land in the Coastal Plain in 
accordance with subsections (a) and (b) of section 
811 of the Alaska National Interest Lands Con-
servation Act (16 U.S.C. 3121); and 
(2) ensure that local residents shall have rea-
sonable access to public land in the Coastal Plain for 
traditional uses. 
SEC. 3107. EXPEDITED JUDICIAL REVIEW. 
(a) FILING OF COMPLAINTS.— 
(1) DEADLINE.—A complaint seeking judicial 
review of a provision of this subtitle or an action of 
the Secretary under this subtitle shall be filed— 
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(A) except as provided in subparagraph 
(B), during the 90-day period beginning on the 
date on which the action being challenged was 
carried out; or 
(B) in the case of a complaint based solely 
on grounds arising after the 90-day period de-
scribed in subparagraph (A), by not later than 
90 days after the date on which the complain-
ant knew or reasonably should have known 
about the grounds for the complaint. 
(2) VENUE.—A complaint seeking judicial re-
view of a provision of this subtitle or an action of 
the Secretary under this subtitle shall be filed in the 
United States Court of Appeals for the District of 
Columbia Circuit. 
(3) SCOPE.— 
(A) IN GENERAL.—Judicial review of a de-
cision of the Secretary relating to a lease sale 
under this subtitle (including an environmental 
analysis of such a lease sale) shall be— 
(i) limited to a review of whether the 
decision is in accordance with this subtitle; 
and 
(ii) based on the administrative record 
of the decision. 
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(B) PRESUMPTIONS.—Any identification 
by the Secretary of a preferred course of action 
relating to a lease sale, and any analysis by the 
Secretary of environmental effects, under this 
subtitle shall be presumed to be correct unless 
proven otherwise by clear and convincing evi-
dence. 
(b) LIMITATION ON OTHER REVIEW.—Any action of 
the Secretary that is subject to judicial review under this 
section shall not be subject to judicial review in any civil 
or criminal proceeding for enforcement. 
SEC. 3108. FEDERAL AND STATE DISTRIBUTION OF REVE-
NUES. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, of the amount of adjusted bonus, rental, and 
royalty revenues from Federal oil and gas leasing and op-
erations authorized under this subtitle for each fiscal 
year— 
(1) 50 percent shall be paid to the State of 
Alaska; and 
(2) the balance shall be used to offset the provi-
sions of this Act. 
(b) PAYMENTS TO ALASKA.—Payments to the State 
of Alaska under this section shall be made semiannually. 
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SEC. 3109. 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 Na-
tional Interest Lands Conservation Act (16 U.S.C. 
3161 et seq.); and 
(2) under title XI of the Alaska National Inter-
est Lands Conservation Act (16 U.S.C. 3161 et 
seq.), for access authorized by sections 1110 and 
1111 of that Act (16 U.S.C. 3170, 3171). 
(b) TERMS AND CONDITIONS.—The Secretary shall 
include in any right-of-way or easement issued under sub-
section (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, sub-
sistence 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 3102(f) provisions granting 
rights-of-way and easements described in subsection (a). 
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SEC. 3110. CONVEYANCE. 
Notwithstanding section 1302(h)(2) of the Alaska 
National Interest Lands Conservation Act (16 U.S.C. 
3192(h)(2)), to remove any cloud on title to land, and to 
clarify land ownership patterns in the Coastal Plain, the 
Secretary shall— 
(1) to the extent necessary to fulfill the entitle-
ment of the Kaktovik Inupiat Corporation under sec-
tions 12 and 14 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1611, 1613), as determined by 
the Secretary, convey to that Corporation the sur-
face estate of the land described in paragraph (1) of 
Public Land Order 6959, in accordance with the 
terms and conditions of the agreement between the 
Secretary, the United States Fish and Wildlife Serv-
ice, the Bureau of Land Management, and the 
Kaktovik Inupiat Corporation, dated January 22, 
1993; and 
(2) convey to the Arctic Slope Regional Cor-
poration the remaining subsurface estate to which 
that Corporation is entitled under the agreement be-
tween that corporation and the United States, dated 
August 9, 1983. 
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Subtitle C—Nuclear Energy 
Reforms 
SEC. 3201. AMENDMENTS TO TITLE XVII OF THE ENERGY 
POLICY ACT 2005. 
(a) 
DEFINITION
OF
PROJECT
COST.—Section 
1701(1) of the Energy Policy Act of 2005 (42 U.S.C. 
16511(1)) is amended by inserting a new paragraph (4) 
and renumbering the paragraphs accordingly: 
‘‘(4) PROJECT COST.—The term ‘project cost’ 
means all costs associated with the development, 
planning, design, engineering, permitting and licens-
ing, construction, commissioning, start-up, shake-
down and financing of the facility, including but not 
limited to reasonable escalation and contingencies, 
the cost of and fees for the guarantee, reasonably re-
quired reserve funds, initial working capital and in-
terest during construction.’’. 
(b) TERMS AND CONDITIONS.—Section 1702 of the 
Energy Policy Act of 2005 (42 U.S.C. 16512) is amended 
by striking subsections (b) and (c) and inserting the fol-
lowing: 
‘‘(b) SPECIFIC
APPROPRIATION
OR
CONTRIBU-
TION.— 
‘‘(1) IN
GENERAL.—No guarantee shall be 
made unless— 
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‘‘(A) an appropriation for the cost has 
been made; 
‘‘(B) the Secretary has received from the 
borrower a payment in full for the cost of the 
obligation and deposited the payment into the 
Treasury; or 
‘‘(C) a combination of (A) and (B) has 
been made, that when combined is sufficient to 
cover the cost of the obligation. 
‘‘(2) RELATION TO OTHER LAWS.—Section 504 
(b) of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661c(b)) shall not apply to a loan guarantee 
made in accordance with paragraph (1)(B).’’. 
(c) AMOUNT.—Section 1702 of the Energy Policy Act 
of 2005 (42 U.S.C. 16512) is amended by striking sub-
section (c) and inserting the following: 
‘‘(c) AMOUNT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall guarantee 100 percent of the ob-
ligation for a facility that is the subject of the guar-
antee, or a lesser amount if requested by the bor-
rower. 
‘‘(2) LIMITATION.—The total amount of loans 
guaranteed for a facility by the Secretary shall not 
exceed 80 percent of the total cost of the facility, as 
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estimated at the time at which the guarantee is 
issued.’’. 
SEC. 3202. AMENDMENTS TO SECTION 638 OF THE ENERGY 
POLICY ACT OF 2005. 
(a) DEFINITIONS.—Section 638(a) of the Energy 
Policy Act of 2005 (42 U.S.C. 16014(a)) is amended— 
(1) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) FULL POWER OPERATION.—The term ‘full 
power operation’ means whichever occurs first of— 
‘‘(A) the ‘commercial operation date’ or 
the equivalent under the terms of the financing 
documents for such facility; or 
‘‘(B) operation of such facility at an aver-
age of 50 percent or greater of nameplate ca-
pacity over any consecutive 30-day period. 
‘‘(5) INCREASED
PROJECT
COSTS.—The term 
‘increased project costs’ means the increased cost of 
constructing, commissioning, testing, operating or 
maintaining a reactor prior to full-power operation 
incurred as a result of a delay covered by the con-
tract including but not limited to costs of demobili-
zation and demobilization, increased costs of equip-
ment, materials and labor due to delay (including 
idle time), increased general and administrative 
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costs, and escalation costs for completing construc-
tion. 
‘‘(6) LITIGATION.—The term ‘litigation’ means 
adjudication in Federal, State, local or tribal courts 
and administrative proceedings or hearings at or be-
fore Federal, State, local or tribal agencies or ad-
ministrative bodies.’’; and 
(2) by redesignating paragraph (4) as para-
graph (7). 
(b) CONTRACT AUTHORITY.—Section 638(b) of the 
Energy Policy Act of 2005 (42 U.S.C. 16014(b)) is 
amended by striking paragraph (1) and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—The Secretary may enter 
into contracts under this section with sponsors of an 
advanced nuclear facility that cover at any one time 
outstanding a total of not more than 6 reactors, 
with the 6 reactors consisting of not more than 3 
different reactor designs, in accordance with para-
graph (2). In the event that any contract entered 
into under this section terminates or expires without 
a claim being paid by the Secretary thereunder, then 
the Secretary may enter into a new contract under 
this section in replacement or substitution for such 
contract.’’. 
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(c) COVERED COSTS.—Section 638(d) of the Energy 
Policy Act of 2005 (42 U.S.C. 16014(d)) is amended by 
striking paragraphs (2) and (3) and inserting the fol-
lowing: 
‘‘(2) COVERAGE.—In the case of reactors that 
receive combined licenses and on which construction 
is commenced, the Secretary shall pay— 
‘‘(A) 100 percent of the covered costs of 
delay that occur after the initial 30-day period 
of covered delay; but 
‘‘(B) not more than $500,000,000 per con-
tract. 
‘‘(3) COVERED DEBT OBLIGATIONS.—Debt obli-
gations covered under subparagraph (A) of para-
graph (5) shall include but not be limited to debt ob-
ligations incurred to pay increased project costs.’’. 
(d) DISPUTE RESOLUTION.—Section 638 of the En-
ergy Policy Act of 2005 (42 U.S.C. 16014) is amended— 
(1) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) DISPUTE RESOLUTION.—Any controversy or 
claim arising out of or relating to any contract entered 
into under this section shall be determined by arbitration 
in Washington, DC according to the then prevailing Com-
mercial Arbitration Rules of the American Arbitration As-
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161 
sociation. A decision by the arbitrator(s) shall be final and 
binding, and any court having jurisdiction may enter judg-
ment on it.’’; and 
(2) by designating subsections (f), (g), and (h) 
as subsections (g), (h), and (i) respectively. 
SEC. 3203. AMENDMENTS TO SECTION 952(c) OF THE EN-
ERGY POLICY ACT 2005. 
Section 952(c) of the Energy Policy Act of 2005 (42 
U.S.C. 16014) is amended by striking paragraphs (1) and 
(2) and substituting the following: 
‘‘(1) IN GENERAL.—The Secretary shall carry 
out a Nuclear Power 2010 Program to position the 
Nation to start construction of new nuclear power 
plants by 2010 or as close to 2010 as achievable. 
‘‘(2) SCOPE OF PROGRAM.—The Nuclear Power 
2010 Program shall be cost-shared with the private 
sector and shall support the following objectives: 
‘‘(A) Demonstrating the licensing process 
for new nuclear power plants, including the Nu-
clear Regulatory Commission process for ob-
taining early site permits (EPS), combined con-
struction/operating licenses (cols), and design 
certifications. 
‘‘(B) Conducting first-of-a-kind design and 
engineering work on at least two advanced nu-
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clear reactor designs sufficient to bring those 
designs to a state of design completion suffi-
cient to allow development of firm cost esti-
mates. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary to carry out the Nuclear Power 2010 Pro-
gram— 
‘‘(A) $182,800,000 for fiscal year 2009; 
‘‘(B) $159,600,000 for fiscal year 2010; 
‘‘(C) $135,600,000 for fiscal year 2011; 
‘‘(D) $46,900,000 for fiscal year 2012; 
and 
‘‘(E) $2,200,000 for fiscal year 2013.’’. 
SEC. 3204. DOMESTIC MANUFACTURING BASE FOR NU-
CLEAR COMPONENTS AND EQUIPMENT. 
(a) ESTABLISHMENT
OF INTERAGENCY WORKING 
GROUP.— 
(1) PURPOSES.—The purposes of this section 
are— 
(A) to increase the competitiveness of the 
United States nuclear energy products and 
services industries; 
(B) to identify the stimulus or incentives 
necessary to cause United States manufacturers 
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of nuclear energy products to expand manufac-
turing capacity; 
(C) to facilitate the export of United 
States nuclear energy products and services; 
(D) to reduce the trade deficit of the 
United States through the export of United 
States nuclear energy products and services; 
(E) to retain and create nuclear energy 
manufacturing and related service jobs in the 
United States; 
(F) to integrate the objectives in para-
graphs (1) through (4) in a manner consistent 
with the interests of the United States, into the 
foreign policy of the United States; and 
(G) to authorize funds for increasing 
United States capacity to manufacture nuclear 
energy products and supply nuclear energy 
services. 
(2) ESTABLISHMENT.— 
(A) There shall be established an inter-
agency working group that, in consultation with 
representative industry organizations and man-
ufacturers of nuclear energy products, shall 
make recommendations to coordinate the ac-
tions and programs of the Federal Government 
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in order to promote increasing domestic manu-
facturing capacity and export of domestic nu-
clear energy products and services. 
(B) The Interagency Working Group shall 
be composed as follows: 
(i) The Secretary of Energy, or the 
Secretary’s designee, shall chair the inter-
agency working group. The Secretary of 
Energy shall provide staff for carrying out 
the functions of the interagency working 
group established under this section. 
(ii) Representatives of— 
(I) the Department of Energy; 
(II) the Department of Com-
merce; 
(III) the Department of Defense; 
(IV) the Department of Treas-
ury; 
(V) the Department of State; 
(VI) the Environmental Protec-
tion Agency; 
(VII) the United States Agency 
for International Development; 
(VIII) the Export-Import Bank 
of the United States; 
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(IX) the Trade and Development 
Agency; 
(X) the Small Business Adminis-
tration; 
(XI) the Office of the U.S. Trade 
Representative; and 
(XII) other Federal agencies, as 
determined by the President. 
(iii) The heads of appropriate agencies 
shall detail such personnel and furnish 
such services to the interagency group, 
with or without reimbursement, as may be 
necessary to carry out the group’s func-
tions. 
(3) DUTIES OF THE INTERAGENCY WORKING 
GROUP.— 
(A) Within six months of enactment, the 
interagency working group established under 
paragraph (2) shall identify the actions nec-
essary to promote the safe development and ap-
plication in foreign countries of nuclear energy 
products and services in order to— 
(i) increase electricity generation from 
nuclear energy sources through develop-
ment of new generation facilities; 
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(ii) improve the efficiency, safety and/ 
or reliability of existing nuclear generating 
facilities through modifications; and 
(iii) enhance the safe treatment, han-
dling, storage and disposal of used nuclear 
fuel. 
(B) Within 6 months of enactment, the 
interagency working group shall identify mecha-
nisms (including, but not limited to, tax stim-
ulus for investment, loans and loan guarantees, 
and grants) necessary for United States compa-
nies to increase their capacity to produce or 
provide nuclear energy products and services, 
and to increase their exports of nuclear energy 
products and services. The interagency working 
group shall identify administrative or legislative 
initiatives necessary to— 
(i) encourage United States compa-
nies to increase their manufacturing capac-
ity for nuclear energy products; 
(ii) provide technical and financial as-
sistance and support to small and mid- 
sized businesses to establish quality assur-
ance programs in accordance with domestic 
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and international nuclear quality assurance 
code requirements; 
(iii) encourage, through financial in-
centives, private sector capital investment 
to expand manufacturing capacity; and 
(iv) provide technical assistance and 
financial incentives to small and mid-sized 
businesses to develop the work-force nec-
essary to increase manufacturing capacity 
and meet domestic and international nu-
clear quality assurance code requirements. 
(C) Within 9 months of enactment, the 
interagency working group shall provide a re-
port to Congress on its findings under subpara-
graphs (A) and (B), including recommendations 
for new legislative authority where necessary. 
(4) 
TRADE
ASSISTANCE.—The 
interagency 
working group shall encourage the member agencies 
of the interagency working group to— 
(A) provide technical training and edu-
cation for international development personnel 
and local users in their own country; 
(B) provide financial and technical assist-
ance to nonprofit institutions that support the 
marketing and export efforts of domestic com-
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panies that provide nuclear energy products and 
services; 
(C) develop nuclear energy projects in for-
eign countries; 
(D) provide technical assistance and train-
ing materials to loan officers of the World 
Bank, international lending institutions, com-
mercial and energy attaches at embassies of the 
United States and other appropriate personnel 
in order to provide information about nuclear 
energy products and services to foreign govern-
ments or other potential project sponsors; 
(E) support, through financial incentives, 
private sector efforts to commercialize and ex-
port nuclear energy products and services in ac-
cordance with the subsidy codes of the World 
Trade Organization; and 
(F) augment budgets for trade and devel-
opment programs in order to support pre-feasi-
bility or feasibility studies for projects that uti-
lize nuclear energy products and services. 
(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary for purposes of carrying out this section 
$20,000,000 for fiscal years 2009 and 2010. 
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(b) CREDIT
FOR QUALIFYING NUCLEAR POWER 
MANUFACTURING.—Subpart E of part IV of subchapter 
A of chapter 1 of the Internal Revenue Code is amended 
by inserting after section 48B the following new section: 
‘‘SEC. 
48C. 
QUALIFYING 
NUCLEAR 
POWER 
MANUFAC-
TURING CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
qualifying nuclear power manufacturing credit for any 
taxable year is an amount equal to 20 percent of the quali-
fied investment for such taxable year. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of eligible property placed in service by the 
taxpayer during such taxable year— 
‘‘(A) which is either part of a qualifying 
nuclear power manufacturing project or is 
qualifying nuclear power manufacturing equip-
ment, 
‘‘(B)(i) the construction, reconstruction, or 
erection of which is completed by the taxpayer, 
or 
‘‘(ii) which is acquired by the taxpayer if 
the original use of such property commences 
with the taxpayer, 
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‘‘(C) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able, and 
‘‘(D) which is placed in service on or be-
fore December 31, 2015. 
‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED 
PROPERTY.—Rules similar to section 48(a)(4) shall 
apply for purposes of this section. 
‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to 
the rules of subsections (c)(4) and (d) of section 46 
(as in effect on the day before the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFYING NUCLEAR POWER MANUFAC-
TURING
PROJECT.—The term ‘qualifying nuclear 
power manufacturing project’ means any project 
which is designed primarily to enable the taxpayer to 
produce or test equipment necessary for the con-
struction or operation of a nuclear power plant. 
‘‘(2) QUALIFYING NUCLEAR POWER MANUFAC-
TURING EQUIPMENT.—The term ‘qualifying nuclear 
power manufacturing equipment’ means machine 
tools and other similar equipment, including com-
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puters and other peripheral equipment, acquired or 
constructed primarily to enable the taxpayer to 
produce or test equipment necessary for the con-
struction or operation of a nuclear power plant. 
‘‘(3) PROJECT.—The term ‘project’ includes 
any building constructed to house qualifying nuclear 
power manufacturing equipment.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) ADDITIONAL
INVESTMENT
CREDIT.—Sec-
tion 46 of such Code is amended by— 
(A) striking ‘‘and’’ at the end of paragraph 
(3), 
(B) striking the period at the end of para-
graph (4) and inserting ‘‘, and’’, and 
(C) inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) the qualifying nuclear power manufac-
turing credit.’’. 
(2) APPLICATION
OF
SECTION
49.—Subpara-
graph (C) of section 49(a)(1) of such Code is 
amended by: 
(A) striking ‘‘and’’ at the end of clause 
(iii), 
(B) striking the period at the end of clause 
(iv) and inserting ‘‘, and’’, and 
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(C) inserting after clause (iv) the following 
new clause: 
‘‘(v) the basis of any property which 
is part of a qualifying nuclear power equip-
ment manufacturing project under section 
48C.’’. 
(3) TABLE OF SECTIONS.—The table of sections 
preceding section 46 is amended by inserting after 
the line for section 48B the following new line: 
‘‘Sec. 48C. Qualifying nuclear power manufacturing credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property— 
(1) the construction, reconstruction, or erection 
of which of began after the date of enactment, or 
(2) which was acquired by the taxpayer on or 
after the date of enactment and not pursuant to a 
binding contract which was in effect on the day prior 
to the date of enactment. 
SEC. 3205. USE OF FUNDS FOR RECYCLING. 
Section 302 of the Nuclear Waste Policy Act of 1982 
(42 U.S.C. 10222) is amended— 
(1) in subsection (d), by striking ‘‘The Sec-
retary may’’ and inserting ‘‘Except as provided in 
subsection (f), the Secretary may’’; and 
(2) by adding at the end the following new sub-
section: 
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173 
‘‘(f) RECYCLING.— 
‘‘(1) IN
GENERAL.—Amounts in the Waste 
Fund may be used by the Secretary of Energy to 
make grants to or enter into long-term contracts 
with private sector entities for the recycling of spent 
nuclear fuel. 
‘‘(2) COMPETITIVE
SELECTION.—Grants and 
contracts authorized under paragraph (1) shall be 
awarded on the basis of a competitive bidding proc-
ess that— 
‘‘(A) maximizes the competitive efficiency 
of the projects funded; 
‘‘(B) best serves the goal of reducing the 
amount of waste requiring disposal under this 
Act; and 
‘‘(C) ensures adequate protection against 
the proliferation of nuclear materials that could 
be used in the manufacture of nuclear weap-
ons.’’. 
SEC. 3206. LICENSING OF NEW NUCLEAR POWER PLANTS. 
(a) Sections 189A(1)(A) of the Atomic Energy Act 
of 1954 is modified thus: 
‘‘(A) In any proceeding under this Act, for 
the granting, suspending, revoking, or amend-
ing of any license or construction permit, or ap-
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174 
plication to transfer control, and in any pro-
ceeding for the issuance or modification of rules 
and regulations dealing with the activities of li-
censees, and in any proceeding for the payment 
of compensation, an award, or royalties under 
section 153, 157, 186c., or 188, the Commis-
sion shall grant a hearing upon the request of 
any person whose interest may be affected by 
the proceeding, and shall admit any such per-
son as a party to such proceeding. The Com-
mission may, in the absence of a request there-
for by any person whose interest may be af-
fected, issue a construction permit, an oper-
ating license or an amendment to a construc-
tion permit or an amendment to an operating 
license without a hearing, but upon thirty days’ 
notice and publication once in the Federal Reg-
ister of its intent to do so. The Commission 
may dispense with such thirty days’ notice and 
publication with respect to any application for 
an amendment to a construction permit or an 
amendment to an operating license upon a de-
termination by the Commission that the amend-
ment involves no significant hazards consider-
ation.’’. 
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(b) Section 185b of the Atomic Energy Act of 1954 
is modified thus: 
‘‘b. After any public hearing held under section 
189a.(1)(A), the Commission shall issue to the applicant 
a combined construction and operating license if the appli-
cation contains sufficient information to support the 
issuance of a combined license and the Commission deter-
mines that there is reasonable assurance that the facility 
will be constructed and will operate in conformity with the 
license, the provisions of this Act, and the Commission’s 
rules and regulations. The Commission shall identify with-
in the combined license the inspections, tests, and anal-
yses, including those applicable to emergency planning, 
that the licensee shall perform, and the acceptance criteria 
that, if met, are necessary and sufficient to provide rea-
sonable assurance that the facility has been constructed 
and will be operated in conformity with the license, the 
provisions of this Act, and the Commission’s rules and 
regulations. Following issuance of the combined license, 
the Commission shall ensure that the prescribed inspec-
tions, tests, and analyses are performed and, prior to oper-
ation of the facility, shall find that the prescribed accept-
ance criteria are met. Any finding made under this sub-
section shall not require a hearing except as provided in 
section 189a.(1)(B).’’. 
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176 
SEC. 3207. INVESTMENT TAX CREDIT FOR INVESTMENTS IN 
NUCLEAR POWER FACILTIES. 
(a) NEW CREDIT
FOR NUCLEAR POWER FACILI-
TIES.—Section 46 of the Internal Revenue Code of 1986 
is amended by— 
(1) striking ‘‘and’’ at the end of paragraph (3), 
(2) striking the period at the end of paragraph 
(4) and inserting ‘‘, and’’, and 
(3) inserting after paragraph (4) the following 
new paragraph: 
‘‘(5) the nuclear power facility construction 
credit.’’. 
(b) NUCLEAR
POWER
FACILITY
CONSTRUCTION 
CREDIT.—Subpart E of part IV of subchapter A of chap-
ter 1 of such Code is amended by inserting after section 
48B the following new section: 
‘‘SEC. 48C. NUCLEAR POWER FACILITY CONSTRUCTION 
CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
nuclear power facility construction credit for any taxable 
year is 10 percent of the qualified nuclear power facility 
expenditures with respect to a qualified nuclear power fa-
cility. 
‘‘(b) WHEN
EXPENDITURES
TAKEN
INTO
AC-
COUNT.— 
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177 
‘‘(1) IN GENERAL.—Qualified nuclear power fa-
cility expenditures shall be taken into account for 
the taxable year in which the qualified nuclear power 
facility is placed in service. 
‘‘(2) COORDINATION WITH SUBSECTION (C).— 
The amount which would (but for this paragraph) be 
taken into account under paragraph (1) with respect 
to any qualified nuclear power facility shall be re-
duced (but not below zero) by any amount of quali-
fied nuclear power facility expenditures taken into 
account under subsection (c) by the taxpayer or a 
predecessor of the taxpayer (or, in the case of a sale 
and leaseback described in section 50(a)(2)(C), by 
the lessee), to the extent any amount so taken into 
account has not been required to be recaptured 
under section 50(a). 
‘‘(c) PROGRESS EXPENDITURES.— 
‘‘(1) IN GENERAL.—A taxpayer may elect to 
take into account qualified nuclear power facility ex-
penditures— 
‘‘(A) SELF-CONSTRUCTED PROPERTY.—In 
the case of a qualified nuclear power facility 
which is a self-constructed facility, in the tax-
able year for which such expenditures are prop-
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178 
erly chargeable to capital account with respect 
to such facility. 
‘‘(B) ACQUIRED FACILITY.—In the case of 
a qualified nuclear facility which is not self-con-
structed property, in the taxable year in which 
such expenditures are paid. 
‘‘(2) SPECIAL
RULES
FOR
APPLYING
PARA-
GRAPH (1).—For purposes of paragraph (1)— 
‘‘(A) COMPONENT PARTS, ETC.—Property 
which is not self-constructed property and 
which is to be a component part of, or is other-
wise to be included in, any facility to which this 
subsection applies shall be taken into account in 
accordance with paragraph (1)(B). 
‘‘(B) 
CERTAIN
BORROWING
DIS-
REGARDED.—Any amount borrowed directly or 
indirectly by the taxpayer on a nonrecourse 
basis from the person constructing the facility 
for the taxpayer shall not be treated as an 
amount expended for such facility. 
‘‘(C) LIMITATION FOR FACILITIES OR COM-
PONENTS
WHICH
ARE
NOT
SELF-CON-
STRUCTED.— 
‘‘(i) IN GENERAL.—In the case of a 
facility or a component of a facility which 
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179 
is not self-constructed, the amount taken 
into account under paragraph (1)(B) for 
any taxable year shall not exceed the 
amount which represents the portion of the 
overall cost to the taxpayer of the facility 
or component of a facility which is prop-
erly attributable to the portion of the facil-
ity or component which is completed dur-
ing such taxable year. 
‘‘(ii) 
CARRY-OVER
OF
CERTAIN 
AMOUNTS.—In the case of a facility or 
component of a facility which is not self- 
constructed, if for the taxable year— 
‘‘(I) the amount which (but for 
clause (i)) would have been taken into 
account under paragraph (1)(B) ex-
ceeds the limitation of clause (i), then 
the amount of such excess shall be 
taken into account under paragraph 
(1)(B) for the succeeding taxable 
year, or 
‘‘(II) the limitation of clause (i) 
exceeds the amount taken into ac-
count under paragraph (1)(B), then 
the amount of such excess shall in-
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180 
crease the limitation of clause (i) for 
the succeeding taxable year. 
‘‘(D) DETERMINATION OF PERCENTAGE OF 
COMPLETION.—The determination under sub-
paragraph (C)(i) of the portion of the overall 
cost to the taxpayer of the construction which 
is properly attributable to construction com-
pleted during any taxable year shall be made on 
the basis of engineering or architectural esti-
mates or on the basis of cost accounting 
records. Unless the taxpayer establishes other-
wise by clear and convincing evidence, the con-
struction shall be deemed to be completed not 
more rapidly than ratably over the normal con-
struction period. 
‘‘(E) NO
PROGRESS
EXPENDITURES
FOR 
CERTAIN PRIOR PERIODS.—No qualified nuclear 
facility expenditures shall be taken into account 
under this subsection for any period before the 
first day of the first taxable year to which an 
election under this subsection applies. 
‘‘(F) NO
PROGRESS
EXPENDITURES
FOR 
PROPERTY FOR YEAR IT IS PLACED IN SERVICE, 
ETC.—In the case of any qualified nuclear facil-
ity, no qualified nuclear facility expenditures 
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181 
shall be taken into account under this sub-
section for the earlier of— 
‘‘(i) the taxable year in which the fa-
cility is placed in service, or 
‘‘(ii) the first taxable year for which 
recapture 
is 
required 
under 
section 
50(a)(2) with respect to such facility, or 
for any taxable year thereafter. 
‘‘(3) SELF-CONSTRUCTED.—For purposes of 
this subsection— 
‘‘(A) The term ‘self-constructed facility’ 
means any facility if it is reasonable to believe 
that more than half of the qualified nuclear fa-
cility expenditures for such facility will be made 
directly by the taxpayer. 
‘‘(B) A component of a facility shall be 
treated as not self-constructed if the cost of the 
component is at least 5 percent of the expected 
cost of the facility and the component is ac-
quired by the taxpayer. 
‘‘(4) ELECTION.—An election shall be made 
under this section for a qualified nuclear power facil-
ity by claiming the nuclear power facility construc-
tion credit for expenditures described in paragraph 
(1) on a tax return filed by the due date for such 
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182 
return (taking into account extensions). Such an 
election shall apply to the taxable year for which 
made and all subsequent taxable years. Such an 
election, once made, may be revoked only with the 
consent of the Secretary. 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) QUALIFIED NUCLEAR POWER FACILITY.— 
The term ‘qualified nuclear power facility’ means an 
advanced nuclear power facility, as defined in section 
45J, the construction of which was approved by the 
Nuclear Regulatory Commission on or before De-
cember 31, 2013. 
‘‘(2) QUALIFIED
NUCLEAR
POWER
FACILITY 
EXPENDITURES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
nuclear power facility expenditures’ means any 
amount properly chargeable to capital ac-
count— 
‘‘(i) with respect to a qualified nuclear 
power facility, 
‘‘(ii) for which depreciation is allow-
able under section 168, and 
‘‘(iii) which are incurred before the 
qualified nuclear power facility is placed in 
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183 
service or in connection with the placement 
of such facility in service. 
‘‘(B) PRE-EFFECTIVE
DATE
EXPENDI-
TURES.—Qualified nuclear power facility ex-
penditures do not include any expenditures in-
curred by the taxpayer before January 1, 2007, 
unless such expenditures constitute less than 20 
percent of the total qualified nuclear power fa-
cility expenditures (determined without regard 
to this subparagraph) for the qualified nuclear 
power facility. 
‘‘(3) DELAYS AND SUSPENSION OF CONSTRUC-
TION.— 
‘‘(A) IN GENERAL.—For purposes of ap-
plying this section and section 50, a nuclear 
power facility that is under construction shall 
cease to be treated as a facility that will be a 
qualified nuclear power facility as of the earlier 
of— 
‘‘(i) the date on which the taxpayer 
decides to terminate construction of the fa-
cility, or 
‘‘(ii) the last day of any 24-month pe-
riod in which the taxpayer has failed to 
incur qualified nuclear power facility ex-
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184 
penditures totaling at least 20 percent of 
the expected total cost of the nuclear 
power facility. 
‘‘(B) AUTHORITY
TO
WAIVE.—The Sec-
retary may waive the application of clause (ii) 
of subparagraph (A) if the Secretary deter-
mines that the taxpayer intended to continue 
the construction of the qualified nuclear power 
facility and the expenditures were not incurred 
for reasons outside the control of the taxpayer. 
‘‘(C) RESUMPTION OF CONSTRUCTION.—If 
a nuclear power facility that is under construc-
tion ceases to be a qualified nuclear power facil-
ity by reason of paragraph (2) and work is sub-
sequently resumed on the construction of such 
facility— 
‘‘(i) the date work is subsequently re-
sumed shall be treated as the date that 
construction began for purposes of para-
graph (1), and 
‘‘(ii) if the facility is a qualified nu-
clear power facility, the qualified nuclear 
power facility expenditures shall be deter-
mined without regard to any delay or tem-
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185 
porary termination of construction of the 
facility.’’. 
(c) PROVISIONS
RELATING
TO
CREDIT
RECAP-
TURE.— 
(1) 
PROGRESS
EXPENDITURE
RECAPTURE 
RULES.— 
(A) BASIC RULES.—Subparagraph (A) of 
section 50(a)(2) of such Code is amended to 
read as follows: 
‘‘(A) IN GENERAL.—If during any taxable 
year any building to which section 47(d) applied 
or any facility to which section 48C(c) applied 
ceases (by reason of sale or other disposition, 
cancellation or abandonment of contract, or 
otherwise) to be, with respect to the taxpayer, 
property which, when placed in service, will be 
a qualified rehabilitated building or a qualified 
nuclear power facility, then the tax under this 
chapter for such taxable year shall be increased 
by an amount equal to the aggregate decrease 
in the credits allowed under section 38 for all 
prior taxable years which would have resulted 
solely from reducing to zero the credit deter-
mined under this subpart with respect to such 
building or facility.’’. 
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186 
(B) AMENDMENT TO EXCESS CREDIT RE-
CAPTURE RULE.—Subparagraph (B) of section 
50(a)(2) of such Code is amended by— 
(i) inserting ‘‘or paragraph (2) of sec-
tion 48C(b)’’ after ‘‘paragraph (2) of sec-
tion 47(b)’’, 
(ii) inserting ‘‘or section 48C(b)(1)’’ 
after ‘‘section 47(b)(1)’’, and 
(iii) 
inserting 
‘‘or 
facility’’ 
after 
‘‘building’’. 
(C) AMENDMENT
OF
SALE
AND
LEASE-
BACK
RULE.—Subparagraph (C) of section 
50(a)(2) of such Code is amended by— 
(i) inserting ‘‘or section 48C(c)’’ after 
‘‘section 47(d)’’, and 
(ii) inserting ‘‘or qualified nuclear 
power facility expenditures’’ after ‘‘quali-
fied rehabilitation expenditures’’. 
(D) OTHER AMENDMENT.—Subparagraph 
(D) of section 50(a)(2) of such Code is amend-
ed by inserting ‘‘or section 48C(c)’’ after ‘‘sec-
tion 47(d)’’. 
(d) NO BASIS ADJUSTMENT.—Section 50(c) of such 
Code is amended by inserting at the end thereof the fol-
lowing new paragraph: 
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187 
‘‘(6) NUCLEAR
POWER
FACILITY
CONSTRUC-
TION CREDIT.—Paragraphs (1) and (2) shall not 
apply to the nuclear power facility construction cred-
it.’’. 
(e) TECHNICAL AMENDMENTS.—The table of sec-
tions for subpart E of part IV of subchapter A of chapter 
1 of such Code is amended by inserting after the line for 
section 48B the following new line: 
‘‘Sec. 48C. Nuclear power facility construction credit.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall be effective for expenditures incurred and 
property placed in service in taxable years beginning after 
the date of enactment. 
SEC. 3208. NATIONAL NUCLEAR ENERGY COUNCIL. 
(a) IN GENERAL.— 
(1) The Secretary of Energy shall establish a 
National Nuclear Energy Council (hereinafter the 
‘‘Council’’). 
(2) The National Nuclear Energy Council shall 
be subject to the requirements of the Federal Advi-
sory Committee Act (5 U.S.C. appendix 2). 
(b) PURPOSE.—The National Nuclear Energy Coun-
cil shall— 
(1) serve in an advisory capacity to the Sec-
retary of Energy regarding nuclear energy on mat-
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188 
ters submitted to the Council by the Secretary of 
Energy; and 
(2) advise, inform, and make recommendations 
to the Secretary of Energy, and represent the views 
of the nuclear energy industry with respect to any 
matter relating to nuclear energy. 
(c) MEMBERSHIP AND ORGANIZATION.— 
(1) The members of the Council shall be ap-
pointed by the Secretary of Energy. 
(2) The Council may establish such study and 
administrative committees as it may deem appro-
priate. Study committees shall only assist the Coun-
cil in preparing its advice, information, or rec-
ommendations to the Secretary of Energy. Adminis-
trative committees shall be formed solely for the 
purpose of assisting the Council or its Chairman in 
the management of the internal affairs of the Coun-
cil. 
(3) The officers of the Council shall consist of 
a Chairman, a Vice Chairman, and such other offi-
cers as may be approved by the Council. The Chair-
man and Vice Chairman must be members of the 
Council and shall receive no compensation for service 
as officers of the Council. 
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189 
(4) The Secretary of Energy shall be Cochair-
man of the Council. If the Secretary of Energy des-
ignates a full-time, salaried official of the Depart-
ment of Energy as his alternate, such alternate may 
exercise any duties of the Secretary of Energy and 
may perform any function on the Council otherwise 
reserved for the Secretary of Energy. 
(5) The Chairman and the Vice Chairman shall 
be elected by the Council at its organizational meet-
ing to serve until their successors are elected at the 
next organizational meeting of the Council. 
(d) MEETINGS.— 
(1) Regular meetings of the Council shall be 
held at least twice each year at times determined by 
the Chairman and approved by the Government Co-
chairman. 
(2) No meeting of the Council shall be held un-
less the Government Cochairman approves the agen-
da thereof, approves the calling thereof, and is 
present thereat. 
(3) The time and place of all Council meetings 
shall be given general publicity and such meetings 
shall be open to the public. 
(e) STUDIES BY THE COUNCIL.— 
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190 
(1) The Council may establish study committees 
to prepare reports for the consideration of the Coun-
cil pursuant to requests from the Secretary of En-
ergy for advice, information, and recommendations. 
(2) The Secretary of Energy or a full-time em-
ployee of the Department of Energy designated by 
the Secretary shall be the Cochairman of each study 
committee. 
(3) The members of study committees shall be 
selected from the Council membership on the basis 
of their training, experience, and general qualifica-
tions to deal with the matters assigned. 
SEC. 3209. TEMPORARY SPENT NUCLEAR FUEL STORAGE 
AGREEMENTS. 
(a) AUTHORIZATION AND LOCATION.—The Secretary 
of Energy (Secretary) is authorized to initiate spent nu-
clear fuel storage agreements as provided herein. 
(1) No later than 180 days from the date of en-
actment of this Act, representatives of a community 
may submit written notice to the Secretary that the 
community is willing to host a temporary spent nu-
clear fuel storage facility within its jurisdiction. 
(2) Within 90 days of the receipt of the notifi-
cation under subsection (a)(1), the Secretary shall 
determine whether the identified site is suitable for 
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191 
a temporary storage facility. In determining the 
site’s suitability, the Secretary will evaluate technical 
feasibility and consider favorably local support for 
collocating a temporary spent nuclear fuel storage 
facility with facilities intended to develop and imple-
ment advanced nuclear fuel cycle technologies. 
(b) CONTENT OF AGREEMENTS.—If the Secretary 
determines one or more sites to be suitable in accordance 
with subsection (a)(2), negotiation of a temporary spent 
nuclear fuel storage facility agreement shall proceed. 
(1) Any temporary spent nuclear fuel storage 
agreement shall contain such terms and conditions, 
including financial, institutional and such other ar-
rangements as the Secretary and community deter-
mine to be reasonable and appropriate. 
(2) Any temporary spent nuclear fuel storage 
agreement may be amended only with the mutual 
consent of the parties to the agreement. 
(c) ENVIRONMENTAL IMPACT STATEMENT.—Execu-
tion of a temporary spent nuclear fuel storage agreement 
shall not require preparation of an environmental impact 
statement under section 102(2)(C) of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) or 
require any environmental review under subparagraph (E) 
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192 
or (F) of section 102(2) of such Act (42 U.S.C. 
4332(2)(E), (F)). 
SEC. 3210. IMPLEMENTATION OF TEMPORARY SPENT NU-
CLEAR FUEL STORAGE AGREEMENTS. 
(a) IN GENERAL.—Any temporary spent nuclear fuel 
storage agreement or agreements entered into under sec-
tion 1 shall enter into force with respect to the United 
States if (and only if)— 
(1) the Secretary, at least 60 days before the 
day on which he or she enters into the temporary 
spent nuclear fuel storage agreement or agreements 
notifies the House of Representatives and the Senate 
of his intention to enter into the agreement or agree-
ments, and promptly thereafter publishes notice of 
such intention in the Federal Register; 
(2) the Governor of the State or States in 
which the facility is proposed to be located submits 
written notice to the Secretary that the Governor 
supports the temporary spent nuclear fuel storage 
agreement; and 
(3) after entering into the agreement, the Sec-
retary submits to the House of Representatives and 
to the Senate a copy of the final text of the agree-
ment, together with— 
(A) a draft of an implementing bill, and 
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193 
(B) a statement of any administrative ac-
tion proposed to implement the agreement. 
(b) APPLICATION OF EXPEDITED PROCEDURES TO 
IMPLEMENTING BILLS.—The provisions of paragraph (3) 
apply to implementing bills submitted with respect to tem-
porary spent nuclear fuel storage agreements entered into 
and submitted pursuant to paragraph (2). 
SEC. 3211. EXPEDITED PROCEDURES FOR CONGRESSIONAL 
REVIEW OF TEMPORARY SPENT NUCLEAR 
FUEL STORAGE AGREEMENTS. 
(a) RULES OF HOUSE OF REPRESENTATIVE AND 
SENATE.—The provisions of this subsection are enacted 
by the Congress— 
(1) as an exercise of the rulemaking power of 
the House of Representatives and the Senate, re-
spectively, and as such they are deemed a part of 
the rules of each House, respectively, but applicable 
only with respect to the procedure to be followed in 
that House in the case of implementing bills de-
scribed in subsection (b)(2) of this section and ap-
proval resolutions described in subsection (b)(3) of 
this section; and they supersede other rules only to 
the extent that they are inconsistent therewith; and 
(2) with full recognition of the constitutional 
right of either House to change the rules (so far as 
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relating to the procedure of that House) at any time, 
in the same manner and to the same extent as in 
the case of any other rule of that House. 
(b) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘community’’ means any entity of 
local government appropriate, in terms of legal au-
thority, for negotiating and entering into temporary 
spent nuclear fuel storage agreements provided for 
in section 3210; 
(2) the term ‘‘implementing bill’’ means only a 
bill of either House of Congress which is introduced 
as provided in subsection (c) of this section with re-
spect to one or more temporary spent nuclear fuel 
storage agreements and which contain— 
(A) a provision approving such storage 
agreements, 
(B) a provision approving the statement of 
administrative action (if any) proposed to im-
plement such storage agreements, 
(C) if changes in existing laws or new stat-
utory authority is required to implement such 
storage agreement or agreements, provisions 
necessary or appropriate to implement such 
agreement or agreements either repealing or 
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amending existing laws or providing new statu-
tory authority, and 
(D) a provision containing revenue meas-
ures (if any), by reason of which the bill must 
originate in the House of Representatives as 
provided for in subsection (c); and 
(3) The term ‘‘approval resolution’’ means only 
a joint resolution of the two Houses of the Congress, 
the matter after the resolving clause of which is as 
follows: ‘‘That the Congress approves the temporary 
spent nuclear fuel storage agreement between the 
Secretary of Energy and llllllll on 
llllll,’’ the first blank space being filled 
with the name of the governor involved and the sec-
ond blank space being filled in with the appropriate 
date. 
(c) INTRODUCTION AND REFERRAL.—On the day on 
which the temporary spent nuclear fuel storage agreement 
is submitted to the House of Representatives and the Sen-
ate under this title, the implementing bill submitted by 
the Secretary with respect to such temporary spent nu-
clear fuel storage agreement shall be introduced (by re-
quest) in the House by the majority leader of the House, 
for himself and the minority leader of the House, or by 
Members of the House designated by the majority leader 
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196 
and minority leader of the House; and shall be introduced 
(by request) in the Senate by the majority leader of the 
Senate, for himself and the minority leader of the Senate, 
or by Members of the Senate designated by the majority 
leader and minority leader of the Senate. If either House 
is not in session on the day on which such temporary spent 
nuclear fuel storage agreement is submitted, the imple-
menting bill shall be introduced in that House, as provided 
in the preceding sentence, on the first day thereafter on 
which that House is in session. Such bills shall be referred 
by the Presiding Officers of the respective Houses to the 
appropriate committee, or, in the case of a bill containing 
provisions within the jurisdiction of two or more commit-
tees, jointly to such committees for consideration of those 
provisions within their respective jurisdictions. 
(d) AMENDMENTS PROHIBITED.—No amendment to 
an implementing bill or approval resolution shall be in 
order in either the House of Representatives or the Sen-
ate; and no motion to suspend the application of this sub-
section shall be in order in either House, nor shall it be 
in order in either House for the Presiding Officer to enter-
tain a request to suspend the application of this subsection 
by unanimous consent. 
(e) PERIOD FOR COMMITTEE AND FLOOR CONSIDER-
ATION.— 
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197 
(1) Except as provided in subsection (e)(2), if 
the committee or committees of either House to 
which an implementing bill or approval resolution 
has been referred have not reported it at the close 
of the 45th day after its introduction, such com-
mittee or committees shall be automatically dis-
charged from further consideration of the bill or res-
olution and it shall be placed on the appropriate cal-
endar. A vote on final passage of the bill or resolu-
tion shall be taken in each House on or before the 
close of the 15th day after the bill or resolution is 
reported by the committee or committees of that 
House to which it was referred, or after such com-
mittee or committees have been discharged from fur-
ther consideration of the bill or resolution. If prior 
to the passage by one House of an implementing bill 
or approval resolution of that House, that House re-
ceives the same implementing bill or approval resolu-
tion from the other House, then— 
(A) the procedure in that House shall be 
the same as if no implementation bill or ap-
proval resolution had been received from the 
other House, but 
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198 
(B) the vote on final passage shall be on 
the implementing bill or approval resolution of 
the other House. 
(2) For purposes of computing a number of 
days in either House as provided for in subsection 
(e)(1), there shall be excluded any day on which that 
House is not in session. 
(3) If the implementing bill contains one or 
more revenue measures— 
(A) the provisions of subsection (e)(1) 
shall not apply; and 
(B) the Senate shall not take final action 
on the bill until it is received from the House. 
(f) FLOOR CONSIDERATION IN THE HOUSE.— 
(1) A motion in the House of Representatives 
to proceed to the consideration of an implementing 
bill or approval resolution shall be highly privileged 
and not debatable. An amendment to the motion 
shall not be in order, nor shall it be in order to move 
to reconsider the vote by which the motion is agreed 
to or disagreed to. 
(2) Debate in the House of Representatives on 
an implementing bill or approval resolution shall be 
limited to not more than 10 hours, which shall be 
divided equally between those favoring and those op-
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199 
posing the bill or resolution. A motion further to 
limit debate shall not be debatable. It shall not be 
in order to move to recommit an implementing bill 
or approval resolution or to move to reconsider the 
vote by which an implementing bill or approval reso-
lution is agreed to or disagreed to. 
(3) Motions to postpone, made in the House of 
Representatives with respect to the consideration of 
an implementing bill or approval resolution, and mo-
tions to proceed to the consideration of other busi-
ness, shall be decided without debate. If a motion to 
proceed to consideration is agreed to, such resolution 
shall remain unfinished business of House until dis-
posed of. 
(4) All appeals from the decisions of the Chair 
relating to the application of the Rules of the House 
of Representatives to the procedure relating to an 
implementing bill or approval resolution shall be de-
cided without debate. 
(5) Except to the extent specifically provided in 
the preceding provisions of this subsection, consider-
ation of an implementing bill or approval resolution 
shall be governed by the Rules of the House of Rep-
resentatives applicable to other bills and resolutions 
in similar circumstances. 
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200 
(g) FLOOR CONSIDERATION IN THE SENATE.— 
(1) A motion in the Senate to proceed to the 
consideration of an implementing bill or approval 
resolution shall be privileged and not debatable. An 
amendment to the motion shall not be in order, nor 
shall it be in order to move to reconsider the vote 
by which the motion is agreed to or disagreed to. 
(2) Debate in the Senate on an implementing 
bill or approval resolution, and all debatable motions 
and appeals in connection therewith, shall be limited 
to not more than 10 hours. The time shall be equally 
divided between, and controlled by, the majority 
leader and the minority leader or their designees. 
(3) Debate in the Senate on any debatable mo-
tion or appeal in connection with an implementing 
bill or approval resolution shall be limited to not 
more than 1 hour, to be equally divided between, 
and controlled by, the mover and the manager of the 
bill or resolution, except that in the event the man-
ager of the bill or resolution is in favor of any such 
motion or appeal, the time in opposition thereto 
shall be controlled by the minority leader or his des-
ignee. Such leaders, or either of them, may, from 
time under their control on the passage of an imple-
menting bill or approval resolution, allot additional 
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201 
time to any Senator during the consideration of any 
debatable motion or appeal. 
(4) A motion in the Senate to further limit de-
bate is not debatable. A motion to recommit an im-
plementation bill or approval resolution is not in 
order. 
SEC. 3212. CONTRACTING AND NUCLEAR WASTE FUND. 
Section 302 of the Nuclear Waste Policy Act of 1982 
(42 U.S.C. 10222) is amended— 
(1) in subsection (a)(1), by adding at the end 
the following: 
‘‘For any civilian nuclear power reactor a license ap-
plication for which is filed with the Commission, pursuant 
to its authority under section 103 or 104 of the Atomic 
Energy Act of 1954, after the date of enactment of this 
Act, contracts entered into under this section shall— 
‘‘(A) except as provided in subsections 
302(a)(1) (B), (C), (D), and (E), below, be 
generally consistent with the terms and condi-
tions of the ‘Standard Contract for Disposal of 
Spent Nuclear Fuel and/or High-Level Radio-
active Waste,’ as codified at 10 CFR part 961 
and in effect on January 1, 2007; 
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202 
‘‘(B) provide for the taking of title to, and 
for the Secretary to dispose of, the high-level 
waste or spent nuclear fuel; 
‘‘(C) contain no provisions providing for 
adjustment of the 1.0 mil per kilowatt-hour fee 
established by paragraph (2); 
‘‘(D) be entered into no later than 60 days 
following the docketing of the license applica-
tion by the Commission, or the date of enact-
ment of this Act, whichever is later; and 
‘‘(E) provide that, on a schedule consistent 
with the Secretary’s acceptance of spent nuclear 
fuel from each civilian nuclear power reactor or 
site, and completed not later than the Sec-
retary’s completing the acceptance of all spent 
nuclear fuel from that commercial nuclear 
power reactor or site, the Secretary shall accept 
from each such reactor or site, all low-level ra-
dioactive waste defined in section 3(b)(1)(D) of 
the Low-level Radioactive Waste Policy Act, as 
amended, 42 U.S.C. 2021c(b)(1)(D).’’; 
(2) in subsection (a)(4), by striking all after 
‘‘herein.’’ in the second sentence; 
(3) in subsection (a)(6), by adding at the end 
the following: 
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203 
‘‘Further, the Secretary shall offer to settle any ac-
tions pending on the date of enactment of this Act for 
damages resulting from failure to commence accepting 
spent nuclear fuel or high-level radioactive waste on or be-
fore January 31, 1998. Each offer to settle shall provide 
for the payment of $150 to the other party to a contract 
for disposal of spent nuclear fuel and high-level radioactive 
waste for each kilogram of spent nuclear fuel which such 
party was or shall be entitled to deliver to the Department 
in a particular year, based on the following aggregate ac-
ceptance rates: 400 MTU for 1998; 600 MTU for 1999; 
1,200 MTU for 2000; 2,000 MTU for 2001; and 3,000 
MTU for 2002 and thereafter; provided that the Secretary 
shall adjust the payment amount per kilogram of spent 
nuclear fuel under this subsection (a)(6) annually accord-
ing to the most recent Producer Price Index published by 
the Department of Labor. Such aggregate acceptance 
rates shall be allocated among parties to contracts with 
the United States based upon the age of spent nuclear 
fuel, as measured by the date of the discharge of such 
spent nuclear fuel from the civilian nuclear power reactor. 
Such offer to settle also shall include an annual payment 
of the amount to be determined by the Secretary of En-
ergy to any such party where a civilian nuclear power reac-
tor has been decommissioned, except for those portions of 
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204 
the facility that cannot be decommissioned until removal 
of spent nuclear fuel and high-level radioactive waste. The 
Secretary also shall offer like compensation to parties to 
contracts entered into pursuant to section 302 of the Nu-
clear Waste Policy Act of 1982 (42 U.S.C. 10222) who 
brought actions for damages prior to the date of enact-
ment of this Act, but which were no longer pending as 
of said date, provided that such compensation shall be re-
duced by the amount of any settlement or judgment re-
ceived by such party.’’; and 
(4) in subsection (d), by adding at the end the 
following: 
‘‘No amount may be expended by the Secretary from 
the Waste Fund to carry out research and development 
activities on advanced nuclear fuel cycle technologies.’’. 
SEC. 3213. CONFIDENCE IN AVAILABILITY OF WASTE DIS-
POSAL. 
(a) CONGRESSIONAL DETERMINATION.—The Con-
gress finds that— 
(1) there is reasonable assurance that high-level 
radioactive waste and spent nuclear fuel generated 
in reactors licensed by the Nuclear Regulatory Com-
mission in the past, currently, or in the future will 
be managed in a safe manner without significant en-
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205 
vironmental impact until capacity for ultimate dis-
posal is available; and 
(2) the Federal Government is responsible and 
has an established a policy for the ultimate safe and 
environmentally sound disposal of such high-level ra-
dioactive waste and spent nuclear fuel. 
(b) 
REGULATORY
CONSIDERATION.—Notwith-
standing any other provision of law, for the period fol-
lowing the licensed operation of a civilian nuclear power 
reactor or any facility for the treatment or storage of 
spent nuclear fuel or high-level radioactive waste, no con-
sideration of the public health and safety, common defense 
and security, or environmental impacts of the storage of 
high-level radioactive waste and spent nuclear fuel gen-
erated in reactors licensed by the Nuclear Regulatory 
Commission in the past, currently, or in the future, is re-
quired by the Department of Energy or the Nuclear Regu-
latory Commission in connection with the development, 
construction, and operation of, or any permit, license, li-
cense amendment, or siting approval for, a civilian nuclear 
power reactor or any facility for the treatment or storage 
of spent nuclear fuel or high-level radioactive waste. Noth-
ing in this section shall affect the Department of Energy’s 
and Nuclear Regulatory Commission’s obligation to con-
sider the public health and safety, common defense and 
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206 
security, and environmental impacts of storage during the 
period of licensed operation of a civilian nuclear power re-
actor or facility for the treatment or storage of spent nu-
clear fuel or high-level radioactive waste. 
SEC. 3214. LIMITATION ON USE OF FUNDS. 
None of the funds authorized by this Act may be used 
to improve or build any temporary storage or spent nu-
clear fuel and high-level radioactive waste disposal facility 
in a State previously recommended for repository develop-
ment under Public Law 97–425. 
Subtitle D—Expedited Oil, Gas, and 
Oil Shale Leasing of Federal Lands 
SEC. 3301. EXPEDITED PERMITTING OF COVERED ENERGY 
PROJECTS. 
(a) PERMIT APPLICATIONS DEEMED APPROVED.— 
(1) IN GENERAL.—Any application for a permit 
under Federal law for a covered energy project is 
deemed approved upon the expiration of the 6-month 
period beginning on the date of the submittal of a 
completed application for such permit, unless before 
the end of such period the Federal official author-
ized by law to issue such permit affirmatively dis-
approves the application and certifies to Congress 
the reasons for such disapproval. 
(2) EXTENSION OF PERIOD.— 
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207 
(A) IN GENERAL.—The President may ex-
tend the period under subsection (a) for a per-
mit application by an additional 6 months by 
submitting to Congress a certification of the 
reasons why such extension is necessary. 
(B) LIMITATION.—The President may not 
extend such period more than one time with re-
spect to any particular permit application. 
(b) APPEAL OF DISAPPROVAL OF PERMIT APPLICA-
TION.— 
(1) IN GENERAL.—Any person who submits an 
application for a permit under Federal law for a cov-
ered energy project that is disapproved may file an 
action seeking judicial review (subject to subtitle B) 
of such disapproval within the 2-month period begin-
ning on the date of the disapproval. 
(2) DEADLINE FOR DECISION.—If a person files 
such an action— 
(A) a final decision shall be issued before 
the end of the 2-month period beginning on the 
date the appeal is filed; and 
(B) if a decision is not issued before the 
end of such period the permit application is 
deemed approved and the permit issued upon 
the expiration of such period. 
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208 
SEC. 3302. WAIVER OF LAWS APPLICABLE TO COVERED EN-
ERGY PROJECTS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the President or a designee of the President 
may waive any legal requirement under any provision of 
Federal law otherwise applicable to a covered energy 
project, including any provision of law relating to any ad-
ministrative protest of any agency action taken with re-
spect to such a project, as the President or such designee, 
in his or her sole discretion, determines necessary to en-
sure expeditious conduct of such project. Any such deter-
mination shall be effective upon being published in the 
Federal Register. 
(b) FEDERAL COURT REVIEW.— 
(1) IN GENERAL.—The district courts of the 
United States shall have exclusive jurisdiction to 
hear all causes or claims arising from any action un-
dertaken, or any decision made, by the President or 
such designee pursuant to subsection (a). Such a 
cause of action or claim may only be brought alleg-
ing a violation of the Constitution of the United 
States. The court shall not have jurisdiction to hear 
any claim not specified in this paragraph. 
(2) TIME
FOR
FILING
OF
COMPLAINT.—Any 
cause or claim brought pursuant to paragraph (1) 
shall be filed not later than the end of the 60-day 
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209 
period beginning upon the expiration of the date of 
the action or decision made by the President or such 
designee. A claim shall be barred unless it is filed 
within that period. 
(3) ABILITY TO SEEK APPELLATE REVIEW.—An 
interlocutory or final judgment, decree, or order of 
the district court may be reviewed only upon petition 
for a writ of certiorari to the Supreme Court of the 
United States. 
SEC. 3303. PERMITTING FOR YEAR-ROUND CONDUCT OF 
COVERED ENERGY PROJECTS. 
Notwithstanding any other provision of law— 
(1) nothing in Federal law shall be construed as 
prohibiting the issuance of a permit authorizing con-
duct of a covered energy project throughout the 
year; and 
(2) any Federal official who is otherwise au-
thorized to issue a permit authorizing a covered en-
ergy project is encouraged to issue such a permit au-
thorizing conduct of a covered energy project 
throughout the year. 
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210 
Subtitle E—Refining Capacity and 
Efficiency 
SEC. 3401. REFINERY REVITALIZATION REPEAL. 
Subtitle H of title III of the Energy Policy Act of 
2005 and the items relating thereto in the table of con-
tents of such Act are repealed. 
SEC. 3402. REDUCTION IN NUMBER OF BOUTIQUE FUELS. 
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 
7545(c)(4)(C)) is amended as follows: 
(1) By redesignating the clause (v) added by 
section 1541(b) of the Energy Policy Act of 2005 
(Public Law 109–58; 119 Stat. 1106) as clause (vi). 
(2) In clause (vi) (as so redesignated)— 
(A) in subclause (I) by striking ‘‘approved 
under this paragraph as of September 1, 2004, 
in all State implementation plans’’ and by in-
serting in lieu there of ‘‘set forth on the list 
published under subclause (II) (or on the re-
vised list referred to in subclause (III) if the list 
has been revised)’’; 
(B) by amending subclause (III) to read as 
follows: 
‘‘(III) The Administrator shall, after notice 
and opportunity for comment, remove a fuel 
from the list published under subclause (II) if 
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211 
the Administrator determines that such fuel has 
ceased to be included in any State implementa-
tion plan or is identical to a Federal fuel con-
trol or prohibition promulgated and imple-
mented by the Administrator. The Adminis-
trator shall publish a revised list reflecting the 
reduction in the number of fuels.’’; 
(C) in subclause (IV) by striking ‘‘Sub-
clause (I)’’ and inserting ‘‘Neither subclause (I) 
nor subclause (V)’’ and by striking ‘‘not’’ and 
by striking ‘‘if such new fuel’’; and 
(D) by amending subclause (IV) to read as 
follows: 
‘‘(IV) Subclause (I) shall not 
limit the Administrator’s author-
ity to approve a control or prohi-
bition respecting any new fuel 
under this paragraph in a State 
implementation plan or revision 
to a State implementation plan if 
such new fuel completely replaces 
a fuel on the list published under 
subclause (II) (or the revised list 
referred to in subclause (III) if 
the list has been revised) and if 
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212 
the Administrator, after consulta-
tion with the Secretary of En-
ergy, publishes in the Federal 
Register after notice and com-
ment a finding that, in the Ad-
ministrator’s judgment, such con-
trol or prohibition respecting 
such new fuel will not cause fuel 
supply or distribution interrup-
tions or have a significant ad-
verse impact on fuel producibility 
in the affected area or contiguous 
areas.’’. 
SEC. 3403. REFINERY PERMITTING PROCESS. 
(a) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
(3) PERMIT.—The term ‘‘permit’’ means any 
permit, license, approval, variance, or other form of 
authorization that a refiner is required to obtain— 
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213 
(A) under any Federal law; or 
(B) from a State or Indian tribal govern-
ment agency delegated authority by the Federal 
Government, or authorized under Federal law, 
to issue permits. 
(4) REFINER.—The term ‘‘refiner’’ means a 
person that— 
(A) owns or operates a refinery; or 
(B) seeks to become an owner or operator 
of a refinery. 
(5) REFINERY.— 
(A) IN
GENERAL.—The term ‘‘refinery’’ 
means— 
(i) a facility at which crude oil is re-
fined into transportation fuel or other pe-
troleum products; and 
(ii) a coal liquification or coal-to-liquid 
facility at which coal is processed into syn-
thetic crude oil or any other fuel. 
(B) INCLUSIONS.—The term ‘‘refinery’’ in-
cludes an expansion of a refinery. 
(6) REFINERY EXPANSION.—The term ‘‘refin-
ery expansion’’ means a physical change in a refin-
ery that results in an increase in the capacity of the 
refinery. 
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214 
(7) REFINERY PERMITTING AGREEMENT.—The 
term ‘‘refinery permitting agreement’’ means an 
agreement entered into between the Administrator 
and a State or Indian tribe under subsection (b). 
(8) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce. 
(9) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; 
and 
(D) any other territory or possession of the 
United States. 
(b) STREAMLINING
OF
REFINERY
PERMITTING 
PROCESS.— 
(1) IN GENERAL.—At the request of the Gov-
ernor of a State or the governing body of an Indian 
tribe, the Administrator shall enter into a refinery 
permitting agreement with the State or Indian tribe 
under which the process for obtaining all permits 
necessary for the construction and operation of a re-
finery shall be streamlined using a systematic inter-
disciplinary multimedia approach as provided in this 
section. 
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(2) AUTHORITY OF ADMINISTRATOR.—Under a 
refinery permitting agreement— 
(A) the Administrator shall have authority, 
as applicable and necessary, to— 
(i) accept from a refiner a consoli-
dated application for all permits that the 
refiner is required to obtain to construct 
and operate a refinery; 
(ii) in consultation and cooperation 
with each Federal, State, or Indian tribal 
government agency that is required to 
make any determination to authorize the 
issuance of a permit, establish a schedule 
under which each agency shall— 
(I) concurrently consider, to the 
maximum extent practicable, each de-
termination to be made; and 
(II) complete each step in the 
permitting process; and 
(iii) issue a consolidated permit that 
combines all permits issued under the 
schedule established under clause (ii); and 
(B) the Administrator shall provide to 
State and Indian tribal government agencies— 
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(i) 
financial 
assistance 
in 
such 
amounts as the agencies reasonably require 
to hire such additional personnel as are 
necessary to enable the Government agen-
cies to comply with the applicable schedule 
established under subparagraph (A)(ii); 
and 
(ii) technical, legal, and other assist-
ance in complying with the refinery permit-
ting agreement. 
(3) AGREEMENT BY THE STATE.—Under a re-
finery permitting agreement, a State or governing 
body of an Indian tribe shall agree that— 
(A) the Administrator shall have each of 
the authorities described in paragraph (2); and 
(B) each State or Indian tribal government 
agency shall— 
(i) in accordance with State law, make 
such structural and operational changes in 
the agencies as are necessary to enable the 
agencies to carry out consolidated project- 
wide permit reviews concurrently and in 
coordination with the Environmental Pro-
tection Agency and other Federal agencies; 
and 
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217 
(ii) comply, to the maximum extent 
practicable, with the applicable schedule 
established under paragraph (2)(A)(ii). 
(4) DEADLINES.— 
(A) NEW REFINERIES.—In the case of a 
consolidated permit for the construction of a 
new refinery, the Administrator and the State 
or governing body of an Indian tribe shall ap-
prove or disapprove the consolidated permit not 
later than— 
(i) 360 days after the date of the re-
ceipt of the administratively complete ap-
plication for the consolidated permit; or 
(ii) on agreement of the applicant, the 
Administrator, and the State or governing 
body of the Indian tribe, 90 days after the 
expiration of the deadline established 
under clause (i). 
(B) EXPANSION
OF
EXISTING
REFIN-
ERIES.—In the case of a consolidated permit 
for the expansion of an existing refinery, the 
Administrator and the State or governing body 
of an Indian tribe shall approve or disapprove 
the consolidated permit not later than— 
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(i) 120 days after the date of the re-
ceipt of the administratively complete ap-
plication for the consolidated permit; or 
(ii) on agreement of the applicant, the 
Administrator, and the State or governing 
body of the Indian tribe, 30 days after the 
expiration of the deadline established 
under clause (i). 
(5) FEDERAL AGENCIES.—Each Federal agency 
that is required to make any determination to au-
thorize the issuance of a permit shall comply with 
the applicable schedule established under paragraph 
(2)(A)(ii). 
(6) JUDICIAL REVIEW.—Any civil action for re-
view of any permit determination under a refinery 
permitting agreement shall be brought exclusively in 
the United States district court for the district in 
which the refinery is located or proposed to be lo-
cated. 
(7) EFFICIENT PERMIT REVIEW.—In order to 
reduce the duplication of procedures, the Adminis-
trator shall use State permitting and monitoring 
procedures to satisfy substantially equivalent Fed-
eral requirements under this title. 
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(8) SEVERABILITY.—If 1 or more permits that 
are required for the construction or operation of a 
refinery are not approved on or before any deadline 
established under paragraph (4), the Administrator 
may issue a consolidated permit that combines all 
other permits that the refiner is required to obtain 
other than any permits that are not approved. 
(9) SAVINGS.—Nothing in this subsection af-
fects the operation or implementation of otherwise 
applicable law regarding permits necessary for the 
construction and operation of a refinery. 
(10) CONSULTATION
WITH
LOCAL
GOVERN-
MENTS.—Congress encourages the Administrator, 
States, and tribal governments to consult, to the 
maximum extent practicable, with local governments 
in carrying out this subsection. 
(11) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as are necessary to carry out this subsection. 
(12) EFFECT ON LOCAL AUTHORITY.—Nothing 
in this subsection affects— 
(A) the authority of a local government 
with respect to the issuance of permits; or 
(B) any requirement or ordinance of a 
local government (such as a zoning regulation). 
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220 
(c) FISCHER-TROPSCH FUELS.— 
(1) IN GENERAL.—In cooperation with the Sec-
retary of Energy, the Secretary of Defense, the Ad-
ministrator of the Federal Aviation Administration, 
Secretary of Health and Human Services, and 
Fischer-Tropsch industry representatives, the Ad-
ministrator shall— 
(A) conduct a research and demonstration 
program to evaluate the air quality benefits of 
ultra-clean Fischer-Tropsch transportation fuel, 
including diesel and jet fuel; 
(B) evaluate the use of ultra-clean Fischer- 
Tropsch transportation fuel as a mechanism for 
reducing engine exhaust emissions; and 
(C) submit recommendations to Congress 
on the most effective use and associated bene-
fits of these ultra-clean fuel for reducing public 
exposure to exhaust emissions. 
(2) GUIDANCE AND TECHNICAL SUPPORT.—The 
Administrator shall, to the extent necessary, issue 
any guidance or technical support documents that 
would facilitate the effective use and associated ben-
efit of Fischer-Tropsch fuel and blends. 
(3) REQUIREMENTS.—The program described 
in paragraph (1) shall consider— 
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221 
(A) the use of neat (100 percent) Fischer- 
Tropsch fuel and blends with conventional 
crude oil-derived fuel for heavy-duty and light- 
duty diesel engines and the aviation sector; and 
(B) the production costs associated with 
domestic production of those ultra clean fuel 
and prices for consumers. 
(4) REPORTS.—The Administrator shall submit 
to the Committee on Environment and Public Works 
and the Committee on Energy and Natural Re-
sources of the Senate and the Committee on Energy 
and Commerce of the House of Representatives— 
(A) not later than 1 year, an interim re-
port on actions taken to carry out this sub-
section; and 
(B) not later than 2 years, a final report 
on actions taken to carry out this subsection. 
SEC. 3404. EXISTING REFINERY PERMIT APPLICATION 
DEADLINE. 
Notwithstanding any other provision of law, applica-
tions for a permit for existing refinery applications shall 
not be considered to be timely if submitted after 120 days 
after the date of the enactment of this Act. 
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222 
SEC. 3405. REMOVAL OF ADDITIONAL FEE FOR NEW APPLI-
CATIONS FOR PERMITS TO DRILL. 
The second undesignated paragraph of the matter 
under the heading ‘‘MANAGEMENT OF LANDS AND 
RESOURCES’’ under the heading ‘‘Bureau of Land Man-
agement’’ of title I of the Department of the Interior, En-
vironment, and Related Agencies Appropriations Act, 
2008 (Public Law 110–161; 121 Stat. 2098) is amended 
by striking ‘‘to be be reduced’’ and all that follows through 
‘‘each new application’’. 
Subtitle F—Alternative Sources of 
Fuel 
SEC. 3501. YEAR EXTENSION OF ELECTION TO EXPENSE 
CERTAIN REFINERIES. 
(a) IN GENERAL.—Paragraph (1) of section 179C(c) 
of the Internal Revenue Code of 1986 (defining qualified 
refinery property) is amended— 
(1) by striking ‘‘January 1, 2014’’ in subpara-
graph (B) and inserting ‘‘January 1, 2017’’, and 
(2) by striking ‘‘January 1, 2010’’ each place 
it appears in subparagraph (F) and inserting ‘‘Janu-
ary 1, 2013’’. 
(b) 
IMPLEMENTATION
THROUGH
SECRETARIAL 
GUIDANCE.— 
(1) GUIDANCE.—Paragraph (1) of section 
179C(b) of such Code (relating to general rule for 
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223 
election) is amended by inserting ‘‘or other guid-
ance’’ after ‘‘regulations’’. 
(2) REPORTING.—Subsection (h) of section 
179C of such Code (relating to reporting) is amend-
ed by striking ‘‘shall require’’ and inserting ‘‘may, 
through guidance, require’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this Act shall apply to property placed in service after De-
cember 31, 2008. 
(d) REQUIREMENT FOR ISSUANCE OF GUIDANCE.— 
Not later than 90 days after the date of the enactment 
of this Act, the Secretary of the Treasury shall issue regu-
lations or other guidance to carry out section 179C of the 
Internal Revenue Code of 1986 (as amended by this sec-
tion). 
SEC. 3502. OPENING OF LANDS TO OIL SHALE LEASING. 
(a) REPEAL OF LIMITATION ON USE OF FUNDS.— 
Section 433 of division F of the Consolidated Appropria-
tions Act, 2008 (Public Law 110–161; 121 Stat. 2152) 
is repealed. 
(b) ISSUANCE OF REGULATIONS.—The Secretary of 
the Interior shall issue all regulations necessary to imple-
ment section 369 of the Energy Policy Act of 2005 (Public 
Law 109–58; 42 U.S.C. 15927) with respect to oil shale 
by not later than 60 days after the date of the enactment 
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