224 
of this Act. Such regulations shall include such safeguards 
and assurances as the Secretary considers necessary to 
allow States to exercise their regulatory and statutory au-
thorities under State law, consistent with otherwise appli-
cable Federal law. 
(c) LEASING
OF OIL SHALE RESOURCE.—Imme-
diately after issuing regulations under subsection (b), the 
Secretary of the Interior shall— 
(1) offer for leasing for research and develop-
ment of oil shale resources under subsection (c) of 
section 369 of the Energy Policy Act of 2005 (Pub-
lic Law 109–58; 42 U.S.C. 15927), additional 160- 
acre tracts of lands the Secretary considers nec-
essary to fulfill the research and development objec-
tives of such Act; and 
(2) offer for leasing for commercial exploration, 
development, and production of oil shale resources 
under subsection (e) of such section, public lands in 
States for which the Secretary finds sufficient sup-
port and interest as required by that subsection. 
SEC. 3503. OIL SHALE AND TAR SANDS AMENDMENTS. 
(a) REPEAL OF REQUIREMENT TO ESTABLISH PAY-
MENTS.—Section 369(o) of the Energy Policy Act of 2005 
(Public Law 109–58; 119 Stat. 728; 42 U.S.C. 15927) 
is repealed. 
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(b) TREATMENT OF REVENUES.—Section 21 of the 
Mineral Leasing Act (30 U.S.C. 241) is amended by add-
ing at the end the following: 
‘‘(e) REVENUES.— 
‘‘(1) IN GENERAL.—Notwithstanding the provi-
sions of section 35, all revenues received from and 
under an oil shale or tar sands lease shall be dis-
posed of as provided in this subsection. 
‘‘(2) 
ROYALTY
RATES
FOR
COMMERCIAL 
LEASES.— 
‘‘(A) ROYALTY
RATES.—The Secretary 
shall model the royalty schedule for oil shale 
and tar sands leases based on the royalty pro-
gram currently in effect for the production of 
synthetic crude oil from oil sands in the Prov-
ince of Alberta, Canada. 
‘‘(B) REDUCTION.—The Secretary shall re-
duce any royalty otherwise required to be paid 
under subparagraph (A) under any oil shale or 
tar sands lease on a sliding scale based upon 
market price, with a 10 percent reduction if the 
average futures price of NYMEX Light Sweet 
Crude, or a similar index, drops, for the pre-
vious quarter year, below $50 (in January 1, 
2008, dollars), and an 80 percent reduction if 
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the average price drops below $30 (in January 
1, 2008, dollars) for the quarter previous to the 
one in which the production is sold. 
‘‘(3) DISPOSITION OF REVENUES.— 
‘‘(A) DEPOSIT.—The Secretary shall de-
posit into a separate account in the Treasury 
all revenues derived from any oil shale or tar 
sands lease. 
‘‘(B) ALLOCATIONS TO STATES AND LOCAL 
POLITICAL SUBDIVISIONS.—The Secretary shall 
allocate 50 percent of the revenues deposited 
into the account established under subpara-
graph (A) to the State within the boundaries of 
which the leased lands are located, with a por-
tion of that to be paid directly by the Secretary 
to the State’s local political subdivisions as pro-
vided in this paragraph. 
‘‘(C) TRANSMISSION OF ALLOCATIONS.— 
‘‘(i) IN GENERAL.—Not later than the 
last business day of the month after the 
month in which the revenues were received, 
the Secretary shall transmit— 
‘‘(I) to each State two-thirds of 
such State’s allocations under sub-
paragraph (B), and in accordance 
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227 
with clauses (ii) and (iii) to certain 
county-equivalent and municipal polit-
ical subdivisions of such State a total 
of one-third of such States allocations 
under subparagraph (B), together 
with all accrued interest thereon; and 
‘‘(II) the remaining balance of 
such revenues shall be deposited into 
the Deficit Reduction Trust Fund cre-
ated by this Act. 
‘‘(ii) 
ALLOCATIONS
TO
CERTAIN 
COUNTY-EQUIVALENT POLITICAL SUBDIVI-
SIONS.—The Secretary shall under clause 
(i)(I) make equitable allocations of the rev-
enues to county-equivalent political sub-
divisions that the Secretary determines are 
closely associated with the leasing and pro-
duction of oil shale and tar sands, under a 
formula that the Secretary shall determine 
by regulation. 
‘‘(iii) ALLOCATIONS
TO
MUNICIPAL 
POLITICAL SUBDIVISIONS.—The initial al-
location to each county-equivalent political 
subdivision under clause (ii) shall be fur-
ther allocated to the county-equivalent po-
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228 
litical subdivision and any municipal polit-
ical subdivisions located partially or wholly 
within the boundaries of the county-equiva-
lent political subdivision on an equitable 
basis under a formula that the Secretary 
shall determine by regulation. 
‘‘(D) INVESTMENT OF DEPOSITS.—The de-
posits in the Treasury account established 
under this section shall be invested by the Sec-
retary 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 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 subsection may use the funds 
for any lawful purpose as determined by State 
law. Funds allocated under this subsection to 
States and local political subdivisions may be 
used as matching funds for other Federal pro-
grams without limitation. Funds allocated to 
local political subdivisions under this subsection 
may not be used in calculation of payments to 
such local political subdivisions under programs 
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229 
for payments in lieu of taxes or other similar 
programs. 
‘‘(F) NO ACCOUNTING REQUIRED.—No re-
cipient of funds under this subsection shall be 
required to account to the Federal Government 
for the expenditure of such funds, except as 
otherwise may be required by law. 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) 
COUNTY-EQUIVALENT
POLITICAL 
SUBDIVISION.—The term ‘county-equivalent po-
litical subdivision’ means a political jurisdiction 
immediately below the level of State govern-
ment, including a county, parish, borough in 
Alaska, independent municipality not part of a 
county, parish, or borough in Alaska, or other 
equivalent subdivision of a State. 
‘‘(B) 
MUNICIPAL
POLITICAL
SUBDIVI-
SION.—The term ‘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.’’. 
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230 
SEC. 3504. TAX CREDIT FOR CARBON DIOXIDE CAPTURED 
FROM INDUSTRIAL SOURCES AND USED IN 
ENHANCED OIL AND NATURAL GAS RECOV-
ERY. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business credits) is amended by adding 
at the end the following new section: 
‘‘SEC. 45R. CREDIT FOR CARBON DIOXIDE CAPTURED FROM 
INDUSTRIAL SOURCES AND USED AS A TER-
TIARY INJECTANT IN ENHANCED OIL AND 
NATURAL GAS RECOVERY. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the captured carbon dioxide tertiary injectant credit for 
any taxable year is an amount equal to the product of— 
‘‘(1) the credit amount, and 
‘‘(2) the qualified carbon dioxide captured from 
industrial sources and used as a tertiary injectant in 
qualified enhanced oil and natural gas recovery 
which is attributable to the taxpayer. 
‘‘(b) CREDIT AMOUNT.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The credit amount is $0.75 
per 1,000 standard cubic feet. 
‘‘(2) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 
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231 
2009, there shall be substituted for the $0.75 
amount under paragraph (1) an amount equal to the 
product of— 
‘‘(A) $0.75, multiplied by 
‘‘(B) the inflation adjustment factor for 
such calendar year determined under section 
43(b)(3)(B) for such calendar year, determined 
by substituting ‘2008’ for ‘1990’. 
‘‘(c) QUALIFIED CARBON DIOXIDE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified carbon 
dioxide’ means carbon dioxide captured from an an-
thropogenic source that— 
‘‘(A) would otherwise be released into the 
atmosphere as industrial emission of green-
house gas, 
‘‘(B) is measurable at the source of cap-
ture, 
‘‘(C) is compressed, treated, and trans-
ported via pipeline, 
‘‘(D) is sold as a tertiary injectant in 
qualified enhanced oil and natural gas recovery, 
and 
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232 
‘‘(E) is permanently sequestered in geologi-
cal formations as a result of the enhanced oil 
and natural gas recovery process. 
‘‘(2) ANTHROPOGENIC SOURCE.—An anthropo-
genic source of carbon dioxide is an industrial 
source, including any of the following types of 
plants, and facilities related to such plant— 
‘‘(A) a coal and natural gas fired electrical 
generating power station, 
‘‘(B) a natural gas processing and treating 
plant, 
‘‘(C) an ethanol plant, 
‘‘(D) a fertilizer plant, and 
‘‘(E) a chemical plant. 
‘‘(3) DEFINITIONS.— 
‘‘(A) QUALIFIED ENHANCED OIL AND NAT-
URAL GAS RECOVERY.—The term ‘qualified en-
hanced oil and natural gas recovery’ has the 
meaning given such term by section 43(c)(2). 
‘‘(B) TERTIARY
INJECTANT.—The term 
‘tertiary injectant’ has the same meaning as 
when used within section 193(b)(1). 
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
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‘‘(1) ONLY CARBON DIOXIDE CAPTURED WITH-
IN THE UNITED STATES TAKEN INTO ACCOUNT.— 
Sales shall be taken into account under this section 
only with respect to qualified carbon dioxide of 
which is within— 
‘‘(A) the United States (within the mean-
ing of section 638(1)), or 
‘‘(B) a possession of the United States 
(within the meaning of section 638(2)). 
‘‘(2) RECYCLED CARBON DIOXIDE.—The term 
‘qualified carbon dioxide’ includes the initial deposit 
of captured carbon dioxide used as a tertiary 
injectant. Such term does not include carbon dioxide 
that is re-captured, recycled, and re-injected as part 
of the enhanced oil and natural gas recovery process. 
‘‘(3) CREDIT ATTRIBUTABLE TO TAXPAYER.— 
Any credit under this section shall be attributable to 
the person that captures, treats, compresses, trans-
ports and sells the carbon dioxide for use as a ter-
tiary injectant in enhanced oil and natural gas re-
covery, except to the extent provided in regulations 
prescribed by the Secretary.’’. 
(b) CONFORMING AMENDMENT.—Section 38(b) of 
such Code (relating to general business credit), as amend-
ed by section 302, is amended by striking ‘‘plus’’ at the 
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end of paragraph (34), by striking the period at the end 
of paragraph (35) and inserting ‘‘, plus’’, and by adding 
at the end of following new paragraph: 
‘‘(36) the captured carbon dioxide tertiary 
injectant credit determined under section 45P(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of such Code (relating to other credits) is amended by add-
ing at the end the following new section: 
‘‘Sec. 45R. Credit for carbon dioxide captured from industrial sources and used 
as a tertiary injectant in enhanced oil and natural gas recov-
ery.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Subtitle G—Domestic Energy 
Impact Statements 
SEC. 3601. COMMITTEE REPORTS IN HOUSE OF REP-
RESENTATIVES REQUIRED TO INCLUDE DO-
MESTIC ENERGY IMPACT STATEMENTS. 
(a) AMENDMENT TO RULE.—Clause 3(d) of rule XIII 
of the Rules of the House of Representatives is amended 
by adding at the end the following new subparagraph: 
‘‘(4)(A) A statement (if timely submitted to the 
committee by the Comptroller General before the fil-
ing of the report) for each such bill or joint resolu-
tion that would have an impact on the governance 
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