Such term includes the last day on which the bond 
is outstanding. 
‘‘(2) BOND.—The term ‘bond’ includes any ob-
ligation. 
‘‘(3) STATE.—The term ‘State’ includes the 
District of Columbia and any possession of the 
United States. 
‘‘(4) AVAILABLE
PROJECT
PROCEEDS.—The 
term ‘available project proceeds’ means— 
‘‘(A) the excess of— 
‘‘(i) the proceeds from the sale of an 
issue, over 
‘‘(ii) the issuance costs financed by 
the issue (to the extent that such costs do 
not exceed 2 percent of such proceeds), 
and 
‘‘(B) the proceeds from any investment of 
the excess described in subparagraph (A). 
‘‘(f) CREDIT TREATED AS INTEREST.—For purposes 
of this subtitle, the credit determined under subsection (a) 
shall be treated as interest which is includible in gross in-
come. 
‘‘(g) S CORPORATIONS AND PARTNERSHIPS.—In the 
case of a tax credit bond held by an S corporation or part-
nership, the allocation of the credit allowed by this section 
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to the shareholders of such corporation or partners of such 
partnership shall be treated as a distribution. 
‘‘(h) BONDS HELD
BY REGULATED INVESTMENT 
COMPANIES AND REAL ESTATE INVESTMENT TRUSTS.— 
If any qualified tax credit bond is held by a regulated in-
vestment company or a real estate investment trust, the 
credit determined under subsection (a) shall be allowed to 
shareholders of such company or beneficiaries of such 
trust (and any gross income included under subsection (f) 
with respect to such credit shall be treated as distributed 
to such shareholders or beneficiaries) under procedures 
prescribed by the Secretary. 
‘‘(i) CREDITS MAY BE STRIPPED.—Under regula-
tions prescribed by the Secretary— 
‘‘(1) IN GENERAL.—There may be a separation 
(including at issuance) of the ownership of a quali-
fied tax credit bond and the entitlement to the credit 
under this section with respect to such bond. In case 
of any such separation, the credit under this section 
shall be allowed to the person who on the credit al-
lowance date holds the instrument evidencing the en-
titlement to the credit and not to the holder of the 
bond. 
‘‘(2) CERTAIN RULES TO APPLY.—In the case 
of a separation described in paragraph (1), the rules 
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of section 1286 shall apply to the qualified tax credit 
bond as if it were a stripped bond and to the credit 
under this section as if it were a stripped coupon. 
‘‘SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS. 
‘‘(a) NEW CLEAN RENEWABLE ENERGY BOND.—For 
purposes of this subpart, the term ‘new clean renewable 
energy bond’ means any bond issued as part of an issue 
if— 
‘‘(1) 100 percent of the available project pro-
ceeds of such issue are to be used for capital expend-
itures incurred by public power providers or coopera-
tive electric companies for one or more qualified re-
newable energy facilities, 
‘‘(2) the bond is issued by a qualified issuer, 
and 
‘‘(3) the issuer designates such bond for pur-
poses of this section. 
‘‘(b) REDUCED CREDIT AMOUNT.—The annual credit 
determined under section 54A(b) with respect to any new 
clean renewable energy bond shall be 70 percent of the 
amount so determined without regard to this subsection. 
‘‘(c) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.— 
‘‘(1) IN
GENERAL.—The maximum aggregate 
face amount of bonds which may be designated 
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under subsection (a) by any issuer shall not exceed 
the limitation amount allocated under this sub-
section to such issuer. 
‘‘(2) NATIONAL
LIMITATION
ON
AMOUNT
OF 
BONDS DESIGNATED.—There is a national new clean 
renewable energy bond limitation of $2,000,000,000 
which shall be allocated by the Secretary as provided 
in paragraph (3), except that— 
‘‘(A) not more than 60 percent thereof 
may be allocated to qualified projects of public 
power providers, and 
‘‘(B) not more than 40 percent thereof 
may be allocated to qualified projects of cooper-
ative electric companies. 
‘‘(3) METHOD OF ALLOCATION.— 
‘‘(A) ALLOCATION AMONG PUBLIC POWER 
PROVIDERS.—After the Secretary determines 
the qualified projects of public power providers 
which are appropriate for receiving an alloca-
tion of the national new clean renewable energy 
bond limitation, the Secretary shall, to the max-
imum extent practicable, make allocations 
among such projects in such manner that the 
amount allocated to each such project bears the 
same ratio to the cost of such project as the 
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limitation under subparagraph (2)(A) bears to 
the cost of all such projects. 
‘‘(B) ALLOCATION
AMONG
COOPERATIVE 
ELECTRIC
COMPANIES.—The Secretary shall 
make allocations of the amount of the national 
new clean renewable energy bond limitation de-
scribed in paragraph (2)(B) among qualified 
projects of cooperative electric companies in 
such manner as the Secretary determines ap-
propriate. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED RENEWABLE ENERGY FACIL-
ITY.—The term ‘qualified renewable energy facility’ 
means a qualified facility (as determined under sec-
tion 45(d) without regard to paragraphs (8) and 
(10) thereof and to any placed in service date) 
owned by a public power provider or a cooperative 
electric company. 
‘‘(2) PUBLIC
POWER
PROVIDER.—The term 
‘public power provider’ means a State utility with a 
service obligation, as such terms are defined in sec-
tion 217 of the Federal Power Act (as in effect on 
the date of the enactment of this paragraph). 
‘‘(3) COOPERATIVE ELECTRIC COMPANY.—The 
term ‘cooperative electric company’ means a mutual 
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or cooperative electric company described in section 
501(c)(12) or section 1381(a)(2)(C). 
‘‘(4) CLEAN RENEWABLE ENERGY BOND LEND-
ER.—The term ‘clean renewable energy bond lender’ 
means a lender which is a cooperative which is 
owned by, or has outstanding loans to, 100 or more 
cooperative electric companies and is in existence on 
February 1, 2002, and shall include any affiliated 
entity which is controlled by such lender. 
‘‘(5) QUALIFIED ISSUER.—The term ‘qualified 
issuer’ means a public power provider, a cooperative 
electric company, a clean renewable energy bond 
lender, or a not-for-profit electric utility which has 
received a loan or loan guarantee under the Rural 
Electrification Act.’’. 
(b) REPORTING.—Subsection (d) of section 6049 of 
such Code (relating to returns regarding payments of in-
terest) is amended by adding at the end the following new 
paragraph: 
‘‘(9) REPORTING
OF
CREDIT
ON
QUALIFIED 
TAX CREDIT BONDS.— 
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts 
includible in gross income under section 54A 
and such amounts shall be treated as paid on 
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the credit allowance date (as defined in section 
54A(e)(1)). 
‘‘(B) 
REPORTING
TO
CORPORATIONS, 
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in 
subparagraph (A) of this paragraph, subsection 
(b)(4) of this section shall be applied without 
regard to subparagraphs (A), (H), (I), (J), (K), 
and (L)(i). 
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are 
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations 
which require more frequent or more detailed 
reporting.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Sections 54(c)(2) and 1400N(l)(3)(B) of 
such Code are each amended by striking ‘‘subpart 
C’’ and inserting ‘‘subparts C and I’’. 
(2) Section 1397E(c)(2) of such Code is 
amended by striking ‘‘subpart H’’ and inserting 
‘‘subparts H and I’’. 
(3) Section 6401(b)(1) of such Code is amend-
ed by striking ‘‘and H’’ and inserting ‘‘H, and I’’. 
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(4) The heading of subpart H of part IV of 
subchapter A of chapter 1 of such Code is amended 
by striking ‘‘Certain Bonds’’ and inserting 
‘‘Clean Renewable Energy Bonds’’. 
(5) The table of subparts for part IV of sub-
chapter A of chapter 1 of such Code is amended by 
striking the item relating to subpart H and inserting 
the following new items: 
‘‘SUBPART H. NONREFUNDABLE CREDIT TO HOLDERS OF CLEAN RENEWABLE 
ENERGY BONDS. 
‘‘SUBPART I. QUALIFIED TAX CREDIT BONDS.’’. 
(d) EFFECTIVE DATES.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
SEC. 119. EXTENSION AND MODIFICATION OF CREDIT FOR 
RESIDENTIAL 
ENERGY 
EFFICIENT 
PROP-
ERTY. 
(a) EXTENSION.—Subsection (g) of section 25D of 
the Internal Revenue Code of 1986 (relating to termi-
nation) is amended by striking ‘‘2008’’ and inserting 
‘‘2016’’. 
(b) SOLAR ELECTRIC PROPERTY.—Paragraph (1) of 
section 25D(a) of such Code (relating to allowance of cred-
it) is amended by striking ‘‘30 percent of’’. 
(c) MODIFICATION
OF MAXIMUM CREDIT.—Para-
graph (1) of section 25D(b) of the Internal Revenue Code 
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of 1986 (relating to limitations) is amended to read as 
follows: 
‘‘(1) MAXIMUM
CREDIT.—The credit allowed 
under subsection (a) for any taxable year shall not 
exceed— 
‘‘(A) $1,500 with respect to each half kilo-
watt of installed capacity of qualified solar elec-
tric property for which qualified solar electric 
property expenditures are made, 
‘‘(B) $2,000 with respect to any qualified 
solar water heating property expenditures, and 
‘‘(C) $500 with respect to each half kilo-
watt of capacity of qualified fuel cell property 
(as defined in section 48(c)(1)) for which quali-
fied fuel cell property expenditures are made.’’. 
(d) DEFINITION
OF
QUALIFIED
SOLAR
WATER 
HEATING PROPERTY EXPENDITURE.—Paragraph (1) of 
section 25D(d) of such Code is amended by striking ‘‘to 
heat water for use in’’ and inserting ‘‘to heat or cool (or 
provide hot water for use in)’’. 
(e) DEFINITION
OF
QUALIFIED
PHOTOVOLTAIC 
PROPERTY EXPENDITURE.—Paragraph (2) of section 
25D(d) of such Code is amended by inserting ‘‘, including 
advanced energy storage systems installed as an inte-
grated component of the foregoing’’ after ‘‘taxpayer’’. 
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(f) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.— 
(1) IN GENERAL.—Section 25D(b) of the Inter-
nal Revenue Code of 1986 (as amended by sub-
section (b)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) CREDIT ALLOWED AGAINST ALTERNATIVE 
MINIMUM TAX.—The credit allowed under subsection 
(a) for the taxable year shall not exceed the excess 
of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under subpart A of part IV of subchapter A 
(other than this section) and section 27 for the 
taxable year.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subsection (c) of section 25D of such 
Code is amended to read as follows: 
‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) for any taxable year 
exceeds the limitation imposed by subsection (b)(3) for 
such taxable year, such excess shall be carried to the suc-
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ceeding taxable year and added to the credit allowable 
under subsection (a) for such succeeding taxable year.’’. 
(B) Section 23(b)(4)(B) of such Code is 
amended by inserting ‘‘and section 25D’’ after 
‘‘this section’’. 
(C) Section 24(b)(3)(B) of such Code is 
amended by striking ‘‘sections 23 and 25B’’ 
and inserting ‘‘sections 23, 25B, and 25D’’. 
(D) Section 26(a)(1) of such Code is 
amended by striking ‘‘and 25B’’ and inserting 
‘‘25B, and 25D’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures made in taxable 
years beginning after December 31, 2006. 
Subtitle C—Coal-to-Liquid Fuel 
SEC. 121. EXTENSION OF ALTERNATIVE FUEL CREDIT FOR 
FUEL DERIVED FROM COAL. 
(a) ALTERNATIVE FUEL CREDIT.—Paragraph (4) of 
section 6426(d) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(4) TERMINATION.—This subsection shall not 
apply to— 
‘‘(A) any sale or use involving liquid fuel 
derived from a feedstock that is primarily do-
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mestic coal (including peat) for any period after 
September 30, 2020, 
‘‘(B) any sale or use involving liquified hy-
drogen for any period after September 30, 
2014, and 
‘‘(C) any other sale or use for any period 
after September 30, 2009.’’. 
(b) PAYMENTS.— 
(1) IN
GENERAL.—Paragraph (5) of section 
6427(e) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ and the end of subpara-
graph (C), by striking the period at the end of sub-
paragraph (D) and inserting ‘‘, and’’, and by adding 
at the end the following new subparagraph: 
‘‘(E) any alternative fuel or alternative fuel 
mixture (as so defined) involving transportation 
grade liquid fuel derived from coal (including 
peat) sold or used after September 30, 2020.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
6427(e)(5)(C) of such Code is amended by striking 
‘‘subparagraph (D)’’ and inserting ‘‘subparagraphs 
(D) and (E)’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
6426(d)(2)(E) of such Code is amended by inserting 
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‘‘transportation grade’’ before ‘‘liquid fuel’’ and by strik-
ing ‘‘through the Fischer-Tropsch process’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to any sale or use for any period 
after the date of enactment of this Act. 
Subtitle D—Energy Efficiency 
SEC. 131. EXTENSION OF NEW ENERGY EFFICIENT HOME 
CREDIT. 
(a) IN GENERAL.—Section 45L(g) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘December 
31, 2008’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to qualified new energy efficient 
homes acquired after the date of enactment of this Act, 
in taxable years ending after such date. 
SEC. 132. MODIFICATION AND EXTENSION OF ENERGY EF-
FICIENT COMMERCIAL BUILDINGS DEDUC-
TION. 
(a) INCREASE IN CREDIT AMOUNT.— 
(1) IN GENERAL.—Subparagraph (A) of section 
179D(b)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$1.80’’ and inserting ‘‘$2.25’’. 
(2) PARTIAL ALLOWANCE.—Subparagraph (A) 
of section 179D(d)(1) of such Code is amended— 
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Subtitle F—Biofuel Production 
SEC. 151. EXTENSION AND MODIFICATION OF CREDITS FOR 
BIODIESEL AND RENEWABLE DIESEL. 
(a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 
6427(e)(5)(B) of the Internal Revenue Code of 1986 are 
each amended by striking ‘‘December 31, 2008’’ and in-
serting ‘‘December 31, 2010’’. 
(b) UNIFORM TREATMENT OF DIESEL PRODUCED 
FROM BIOMASS.—Paragraph (3) of section 40A(f) of such 
Code is amended by striking ‘‘using a thermal 
depolymerization process’’. 
(c) ELIGIBILITY OF CERTAIN AVIATION FUEL.—Sec-
tion 40A(f)(3) of such Code (defining renewable diesel) 
is amended by adding at the end the following new flush 
sentence: ‘‘The term ‘renewable diesel’ also means fuel de-
rived from biomass (as defined in section 45K(c)(3)) using 
a thermal depolymerization process which meets the re-
quirements of a Department of Defense specification for 
military jet fuel or an American Society of Testing and 
Materials specification for aviation turbine fuel.’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to fuel produced, and sold or used, after 
the date of the enactment of this Act. 
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(2) UNIFORM
TREATMENT
OF
DIESEL
PRO-
DUCED FROM BIOMASS.—The amendments made by 
subsection (b) shall apply to fuel produced, and sold 
or used, after the date which is 30 days after the 
date of the enactment of this Act. 
Subtitle G—Oil and Gas Provisions 
SEC. 161. EXPENSING FOR CRUDE OIL REFINERIES. 
(a) IN GENERAL.—Subsection (c) of section 179C of 
the Internal Revenue Code of 1986 (relating to election 
to expense certain refineries) is amended by adding at the 
end the following new paragraph: 
‘‘(4) EXTENSION
TO
CERTAIN
FACILITIES.— 
The term ‘qualified refinery property’ shall also 
mean any refinery or portion of a refinery— 
‘‘(A) the original use of which commences 
with the taxpayer, 
‘‘(B) the construction of which— 
‘‘(i) except as provided in clause (ii), 
is subject to a binding construction con-
tract entered into after December 31, 
2008, and before January 1, 2015, but 
only if there was no written binding con-
struction contract entered into before Jan-
uary 1, 2009, or 
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‘‘(ii) in the case of self-constructed 
property, began after December 31, 2008, 
and 
‘‘(C) which is placed in service by the tax-
payer after the date of the enactment of this 
paragraph and before January 1, 2020.’’. 
SEC. 162. EXTENSION OF SUSPENSION OF TAXABLE IN-
COME LIMIT ON PERCENTAGE DEPLETION 
FOR OIL AND NATURAL GAS PRODUCED 
FROM MARGINAL PROPERTIES. 
(a) IN GENERAL.—Subparagraph (H) of section 
613A(c)(6) is amended by striking ‘‘January 1, 2008’’ and 
inserting ‘‘January 1, 2012’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 163. INCREASE IN DEPLETION RATE FOR MARGINAL 
OIL OR GAS PRODUCTION. 
(a) BASE RATE.—Clause (i) of section 613A(c)(6)(C) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘15 percent’’ and inserting ‘‘20 percent’’. 
(b) MAXIMUM RATE.—Section 613A(c)(6)(C) of such 
Code is amended by striking ‘‘25 percent’’ and inserting 
‘‘30 percent’’. 
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(c) REFERENCE PRICE.—Section 613A(c)(6)(C)(ii) 
of such Code is amended by striking ‘‘$20’’ and inserting 
‘‘$40’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 164. SUSPENSION OF TAXABLE INCOME LIMITATION 
ON PERCENTAGE DEPLETION. 
(a) IN GENERAL.—The first sentence of paragraph 
(1) of section 613A(d) of the Internal Revenue Code of 
1986 (relating to limitation based on taxable income) is 
amended by striking ‘‘The deduction’’ and inserting ‘‘In 
the case of taxable years beginning before January 1, 
2008, or after December 31, 2011, the deduction’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 165. STUDY ON FAIR AND TRANSPARENT FUEL PRIC-
ING. 
(a) STUDY.—The Federal Trade Commission shall 
conduct a study to determine— 
(1) the effects on competitive gasoline pricing of 
State guaranteed profit laws, also known as ‘‘min-
imum mark-up’’ or ‘‘below cost sales’’ statutes; and 
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(2) the effect of credit card processing fees on 
gasoline costs to consumers. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Federal Trade Commission 
shall transmit to Congress a report on the findings of the 
study conducted pursuant to subsection (a) and shall pub-
lish such report on the Commission’s Internet website. 
Subtitle H—Carbon Capture and 
Sequestration 
SEC. 171. EXPANSION AND MODIFICATION OF ADVANCED 
COAL PROJECT INVESTMENT CREDIT. 
(a) MODIFICATION
OF CREDIT AMOUNT.—Section 
48A(a) (relating to qualifying advanced coal project cred-
it) is amended by striking ‘‘and’’ at the end of paragraph 
(1), by striking the period at the end of paragraph (2) 
and inserting ‘‘, and’’, and by adding at the end the fol-
lowing the paragraph: 
‘‘(3) 30 percent of the qualified investment for 
such taxable year in the case of projects described 
in clauses (iii) or (iv) of subsection (d)(3)(B).’’. 
(b) EXPANSION OF AGGREGATE CREDITS.—Section 
48A(d)(3)(A) (relating to aggregate credits) is amended 
by 
striking 
‘‘$1,300,000,000’’ 
and 
inserting 
‘‘$1,500,000,000’’. 
(c) AUTHORIZATION OF ADDITIONAL PROJECTS.— 
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(1) IN GENERAL.—Subparagraph (B) of section 
48A(d)(3) (relating to aggregate credits) is amended 
to read as follows: 
‘‘(B) PARTICULAR PROJECTS.—Of the dol-
lar amount in subparagraph (A), the Secretary 
is authorized to certify— 
‘‘(i) $500,000,000 for advanced coal 
electricity projects the application for 
which is submitted during the period de-
scribed in paragraph (2)(A)(i), 
‘‘(ii) $500,000,000 for coal gasifi-
cation projects the application for which is 
submitted during the period described in 
paragraph (2)(A)(i), and 
‘‘(iii) $500,000,000 for coal to liquid 
facilities which can demonstrate that the 
facility would capture and sequester at 
least 65 percent of the facility’s carbon di-
oxide emissions, the application for which 
is submitted during the period described in 
paragraph (2)(A)(ii).’’. 
(2) APPLICATION
PERIOD
FOR
ADDITIONAL 
PROJECTS.—Subparagraph (A) of section 48A(d)(2) 
(relating to certification) is amended to read as fol-
lows: 
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‘‘(G) in the case of any project the applica-
tion for which is submitted during the period 
described in subsection (d)(2)(A)(ii), the project 
includes equipment which separates and seques-
ters at least 65 percent (70 percent in the case 
of an application for reallocated credits under 
subsection (d)(4)) of such project’s total carbon 
dioxide emissions.’’. 
(B) HIGHEST
PRIORITY
FOR
PROJECTS 
WHICH
SEQUESTER
CARBON
DIOXIDE
EMIS-
SIONS.—Section 48A(e)(3) is amended by strik-
ing ‘‘and’’ at the end of subparagraph (A)(iii), 
by striking the period at the end of subpara-
graph (B)(3) and inserting ‘‘, and’’, and by 
adding at the end the following new subpara-
graph: 
‘‘(C) give highest priority to projects with 
the greatest separation and sequestration per-
centage of total carbon dioxide emissions.’’. 
(C) RECAPTURE OF CREDIT FOR FAILURE 
TO
SEQUESTER.—Section 48A (relating to 
qualifying advanced coal project credit) is 
amended by adding at the end the following 
new subsection: 
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‘‘(h) RECAPTURE OF CREDIT FOR FAILURE TO SE-
QUESTER.—The Secretary shall provide for recapturing 
the benefit of any credit allowable under subsection (a) 
with respect to any project which fails to attain or main-
tain the separation and sequestration requirements of sub-
section (e)(1)(G).’’. 
(4) ADDITIONAL
PRIORITY
FOR
RESEARCH 
PARTNERSHIPS.—Section 48A(e)(3)(B), as amended 
by paragraph (3)(B), is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(ii), 
(B) by redesignating clause (iii) as clause 
(iv), and 
(C) by inserting after clause (ii) the fol-
lowing new clause: 
‘‘(iii) applicant participants who have 
a research partnership with an eligible edu-
cational institution (as defined in section 
529(e)(5)), and’’. 
(5) CLERICAL AMENDMENT.—Section 48A(e)(3) 
is amended by striking ‘‘INTEGRATED GASIFICATION 
COMBINED
CYCLE’’ in the heading and inserting 
‘‘CERTAIN’’. 
(d) COMPETITIVE CERTIFICATION AWARDS MODI-
FICATION AUTHORITY.—Section 48A (relating to quali-
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fying advanced coal project credit), as amended by sub-
section (c)(3), is amended by adding at the end the fol-
lowing new subsection: 
‘‘(i) COMPETITIVE CERTIFICATION AWARDS MODI-
FICATION AUTHORITY.—In implementing this section or 
section 48B, the Secretary is directed to modify the terms 
of any competitive certification award and any associated 
closing agreement where such modification— 
‘‘(1) is consistent with the objectives of such 
section, 
‘‘(2) is requested by the recipient of the com-
petitive certification award, and 
‘‘(3) involves moving the project site to improve 
the potential to capture and sequester carbon dioxide 
emissions, reduce costs of transporting feedstock, 
and serve a broader customer base, 
unless the Secretary determines that the dollar amount 
of tax credits available to the taxpayer under such section 
would increase as a result of the modification or such 
modification would result in such project not being origi-
nally certified. In considering any such modification, the 
Secretary shall consult with other relevant Federal agen-
cies, including the Department of Energy.’’. 
(e) EFFECTIVE DATES.— 
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(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to credits the application for 
which is submitted during the period described in 
section 48A(d)(2)(A)(ii) of the Internal Revenue 
Code of 1986 and which are allocated or reallocated 
after the date of the enactment of this Act. 
(2) 
COMPETITIVE
CERTIFICATION
AWARDS 
MODIFICATION AUTHORITY.—The amendment made 
by subsection (d) shall take effect on the date of the 
enactment of this Act and is applicable to all com-
petitive certification awards entered into under sec-
tion 48A or 48B of the Internal Revenue Code of 
1986, whether such awards were issued before, on, 
or after such date of enactment. 
(3) TECHNICAL AMENDMENT.—The amendment 
made by subsection (c)(5) shall take effect as if in-
cluded in the amendment made by section 1307(b) 
of the Energy Tax Incentives Act of 2005. 
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TITLE II—AMERICAN-MADE 
ENERGY TRUST FUND 
SEC. 201. ESTABLISHMENT OF AMERICAN-MADE ENERGY 
TRUST FUND. 
(a) CREATION OF TRUST FUND.—Subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is 
amended by inserting at the end the following new section: 
‘‘SEC. 9511. AMERICAN-MADE ENERGY TRUST FUND. 
‘‘(a) ESTABLISHMENT OF TRUST FUND.—There is 
established in the Treasury of the United States a trust 
fund to be known as the ‘American-Made Energy Trust 
Fund’, consisting of such amounts as may be appropriated 
or credited to the American-Made Energy Trust Fund as 
provided in this section or section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the American-Made Energy Trust 
Fund amounts required to be transferred under section 
308 of the American-Made Energy Act of 2008 and under 
section 8(g)(6) of the Outer Continental Shelf Lands Act 
(as added by section 703 of the American-Made Energy 
Act of 2008). 
‘‘(c) EXPENDITURES FROM AMERICAN-MADE EN-
ERGY TRUST FUND.—As provided by appropriation Acts, 
amounts in the American-Made Energy Trust Fund shall 
be available in any year for transfer to the general fund 
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of the Treasury to offset any reduction in revenue to the 
United States that the Secretary estimates results from 
the amendments made by the American-Made Energy Act 
of 2008.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of such Code is amended 
by inserting at the end the following new item: 
‘‘Sec. 9511. American-Made Energy Trust Fund.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply after the date of the enactment 
of this Act. 
TITLE 
III—DEVELOPMENT 
OF 
OIL AND GAS RESOURCES OF 
THE 
COASTAL 
PLAIN 
OF 
ALASKA 
SEC. 301. DEFINITIONS. 
In this title: 
(1) COASTAL
PLAIN.—The term ‘‘Coastal 
Plain’’ means that area described in appendix I to 
part 37 of title 50, Code of Federal Regulations. 
(2) SECRETARY.—The term ‘‘Secretary’’, except 
as otherwise provided, means the Secretary of the 
Interior or the Secretary’s designee. 
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SEC. 302. LEASING PROGRAM FOR LANDS 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 title and acting through the Director of the 
Bureau of Land Management in consultation with 
the Director of the United States Fish and Wildlife 
Service, a competitive oil and gas leasing program 
that will result in an environmentally sound program 
for the exploration, development, and production of 
the oil and gas resources of the Coastal Plain; and 
(2) to administer the provisions of this title 
through regulations, lease terms, conditions, restric-
tions, prohibitions, stipulations, and other provisions 
that ensure the oil and gas exploration, development, 
and production activities on the Coastal Plain will 
result in no significant adverse effect on fish and 
wildlife, their habitat, subsistence resources, and the 
environment, including, in furtherance of this goal, 
by requiring the application of the best commercially 
available technology for oil and gas exploration, de-
velopment, and production to all exploration, devel-
opment, and production operations under this title 
in a manner that ensures the receipt of fair market 
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value by the public for the mineral resources to be 
leased. 
The Secretary shall not commence leasing under the pro-
gram described in paragraph (1) unless a finding has been 
made that bonus bids for offered leases are estimated to 
be not less than $6,000,000,000. 
(b) REPEAL.— 
(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 in section 1 of such Act is amended by 
striking the item relating to section 1003. 
(c) COMPLIANCE WITH REQUIREMENTS UNDER CER-
TAIN OTHER LAWS.— 
(1) COMPATIBILITY.—For purposes of the Na-
tional Wildlife Refuge System Administration Act of 
1966 (16 U.S.C. 668dd et seq.), the oil and gas 
leasing program and activities authorized by this 
section in the Coastal Plain are deemed to be com-
patible with the purposes for which the Arctic Na-
tional Wildlife Refuge was established, and no fur-
ther findings or decisions are required to implement 
this determination. 
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(2) ADEQUACY OF THE DEPARTMENT OF THE 
INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT 
STATEMENT.—The 
‘‘Final 
Legislative 
Environ-
mental Impact Statement’’ (April 1987) on the 
Coastal Plain prepared pursuant to section 1002 of 
the Alaska National Interest Lands Conservation 
Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) 
of the National Environmental Policy Act of 1969 
(42 U.S.C. 4332(2)(C)) is deemed to satisfy the re-
quirements under the National Environmental Policy 
Act of 1969 that apply with respect to prelease ac-
tivities, including actions authorized to be taken by 
the Secretary to develop and promulgate the regula-
tions for the establishment of a leasing program au-
thorized by this title before the conduct of the first 
lease sale. 
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.—Before conducting the first lease sale under 
this title, the Secretary shall prepare an environ-
mental impact statement under the National Envi-
ronmental Policy Act of 1969 with respect to the ac-
tions authorized by this title that are not referred to 
in paragraph (2). Notwithstanding any other law, 
the Secretary is not required to identify nonleasing 
alternative courses of action or to analyze the envi-
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ronmental effects of such courses of action. The Sec-
retary shall only identify a preferred action for such 
leasing and a single leasing alternative, and analyze 
the environmental effects and potential mitigation 
measures for those two alternatives. The identifica-
tion of the preferred action and related analysis for 
the first lease sale under this title shall be completed 
within 18 months after the date of enactment of this 
title. The Secretary shall only consider public com-
ments that specifically address the Secretary’s pre-
ferred action and that are filed within 20 days after 
publication of an environmental analysis. Notwith-
standing any other law, compliance with this para-
graph is deemed to satisfy all requirements for the 
analysis and consideration of the environmental ef-
fects of proposed leasing under this title. 
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this title shall be considered to expand 
or limit State and local regulatory authority. 
(e) SPECIAL AREAS.— 
(1) IN
GENERAL.—The Secretary, after con-
sultation with the State of Alaska, the city of 
Kaktovik, and the North Slope Borough, may des-
ignate up to a total of 45,000 acres of the Coastal 
Plain as a Special Area if the Secretary determines 
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that the Special Area is of such unique character 
and interest so as to require special management 
and regulatory protection. The Secretary shall des-
ignate as such a Special Area the Sadlerochit Spring 
area, comprising approximately 4,000 acres. 
(2) MANAGEMENT.—Each such Special Area 
shall be managed so as to protect and preserve the 
area’s unique and diverse character including its 
fish, wildlife, and subsistence resource values. 
(3) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.—The Secretary may exclude any Spe-
cial Area from leasing. If the Secretary leases a Spe-
cial Area, or any part thereof, for purposes of oil 
and gas exploration, development, production, and 
related activities, there shall be no surface occu-
pancy of the lands comprising the Special Area. 
(4) DIRECTIONAL DRILLING.—Notwithstanding 
the other provisions of this subsection, the Secretary 
may lease all or a portion of a Special Area under 
terms that permit the use of horizontal drilling tech-
nology from sites on leases located outside the Spe-
cial Area. 
(f) LIMITATION
ON
CLOSED
AREAS.—The Sec-
retary’s sole authority to close lands within the Coastal 
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Plain to oil and gas leasing and to exploration, develop-
ment, and production is that set forth in this title. 
(g) REGULATIONS.— 
(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out this title, including rules and regulations relating 
to protection of the fish and wildlife, their habitat, 
subsistence resources, and environment of the Coast-
al Plain, by no later than 15 months after the date 
of enactment of this title. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary shall periodically review and, if appropriate, 
revise the rules and regulations issued under sub-
section (a) to reflect any significant biological, envi-
ronmental, or engineering data that come to the Sec-
retary’s attention. 
SEC. 303. LEASE SALES. 
(a) IN GENERAL.—Lands may be leased pursuant to 
this title to any person qualified to obtain a lease for de-
posits 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 
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in, or exclusion (as provided in subsection (c)) from, 
a lease sale; 
(2) the holding of lease sales after such 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. 
(c) LEASE SALE BIDS.—Bidding for leases under 
this title shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first 
lease sale under this title, 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) conduct the first lease sale under this title 
within 22 months after the date of the enactment of 
this title; and 
(2) conduct additional sales so long as sufficient 
interest in development exists to warrant, in the Sec-
retary’s judgment, the conduct of such sales. 
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SEC. 304. GRANT OF LEASES BY THE SECRETARY. 
(a) IN GENERAL.—The Secretary may grant to the 
highest responsible qualified bidder in a lease sale con-
ducted pursuant to section 303 any lands to be leased on 
the Coastal Plain upon payment by the lessee of such 
bonus as may be accepted by the Secretary. 
(b) SUBSEQUENT
TRANSFERS.—No lease issued 
under this title may be sold, exchanged, assigned, sublet, 
or otherwise transferred except with the approval of the 
Secretary. Prior to any such approval the Secretary shall 
consult with, and give due consideration to the views of, 
the Attorney General. 
SEC. 305. LEASE TERMS AND CONDITIONS. 
(a) IN GENERAL.—An oil or gas lease issued pursu-
ant to this title shall— 
(1) provide for the payment of a royalty of not 
less than 121⁄2 percent in amount or value of the 
production removed or sold from the lease, as deter-
mined by the Secretary under the regulations appli-
cable to other Federal oil and gas leases; 
(2) provide that the Secretary may close, on a 
seasonal basis, portions of the Coastal Plain to ex-
ploratory drilling activities as necessary to protect 
caribou calving areas and other species of fish and 
wildlife; 
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(3) require that the lessee of lands within the 
Coastal Plain shall be fully responsible and liable for 
the reclamation of lands within the Coastal Plain 
and any other Federal lands that are adversely af-
fected in connection with exploration, development, 
production, or transportation activities conducted 
under the lease and within the Coastal Plain by the 
lessee or by any of the subcontractors or agents of 
the lessee; 
(4) provide that the lessee may not delegate or 
convey, by contract or otherwise, the reclamation re-
sponsibility and liability to another person without 
the express written approval of the Secretary; 
(5) provide that the standard of reclamation for 
lands required to be reclaimed under this title shall 
be, as nearly as practicable, a condition capable of 
supporting the uses which the lands were capable of 
supporting prior to any exploration, development, or 
production activities, or upon application by the les-
see, to a higher or better use as approved by the 
Secretary; 
(6) contain terms and conditions relating to 
protection of fish and wildlife, their habitat, subsist-
ence resources, and the environment as required 
pursuant to section 302(a)(2); 
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(7) provide that the lessee, its agents, and its 
contractors use best efforts to provide a fair share, 
as determined by the level of obligation previously 
agreed to in the 1974 agreement implementing sec-
tion 29 of the Federal Agreement and Grant of 
Right of Way for the Operation of the Trans-Alaska 
Pipeline, of employment and contracting for Alaska 
Natives and Alaska Native Corporations from 
throughout the State; and 
(8) contain such other provisions as the Sec-
retary determines necessary to ensure compliance 
with the provisions of this title and the regulations 
issued under this title. 
(b) PROJECT LABOR AGREEMENTS.—The Secretary, 
as a term and condition of each lease under this title and 
in recognizing the Government’s proprietary interest in 
labor stability and in the ability of construction labor and 
management to meet the particular needs and conditions 
of projects to be developed under the leases issued pursu-
ant to this title and the special concerns of the parties 
to such leases, shall require that the lessee and its agents 
and contractors negotiate to obtain a project labor agree-
ment for the employment of laborers and mechanics on 
production, maintenance, and construction under the 
lease. 
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SEC. 306. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 
(a) NO SIGNIFICANT ADVERSE EFFECT STANDARD 
TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 
The Secretary shall, consistent with the requirements of 
section 302, administer the provisions of this title through 
regulations, lease terms, conditions, restrictions, prohibi-
tions, stipulations, and other provisions that— 
(1) ensure the oil and gas exploration, develop-
ment, and production activities on the Coastal Plain 
will result in no significant adverse effect on fish 
and wildlife, their habitat, and the environment; 
(2) require the application of the best 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 amount of sur-
face acreage covered by production and support fa-
cilities, including airstrips and any areas covered by 
gravel berms or piers for support of pipelines, does 
not exceed 2,000 acres on the Coastal Plain. 
(b) SITE-SPECIFIC ASSESSMENT AND MITIGATION.— 
The Secretary shall also require, with respect to any pro-
posed drilling and related activities, that— 
(1) a site-specific analysis be made of the prob-
able effects, if any, that the drilling or related activi-
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ties will have on fish and wildlife, their habitat, sub-
sistence resources, and the environment; 
(2) a plan be implemented to avoid, minimize, 
and mitigate (in that order and to the extent prac-
ticable) any significant adverse effect identified 
under paragraph (1); and 
(3) the development of the plan shall occur 
after consultation with the agency or 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 title, the Secretary shall 
prepare and promulgate regulations, lease terms, condi-
tions, restrictions, prohibitions, stipulations, and other 
measures designed to ensure that the activities undertaken 
on the Coastal Plain under this title are conducted in a 
manner consistent with the purposes and environmental 
requirements of this title. 
(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 title shall require compliance with all applicable 
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provisions of Federal and State environmental law, and 
shall also require the following: 
(1) Standards at least as effective as the safety 
and environmental mitigation measures set forth in 
items 1 through 29 at pages 167 through 169 of the 
‘‘Final Legislative Environmental Impact State-
ment’’ (April 1987) on the Coastal Plain. 
(2) Seasonal limitations on exploration, develop-
ment, and related activities, where necessary, to 
avoid significant adverse effects during periods of 
concentrated fish and wildlife breeding, denning, 
nesting, spawning, and migration. 
(3) That exploration activities, except for sur-
face geological studies, be limited to the period be-
tween approximately November 1 and May 1 each 
year and that exploration activities shall be sup-
ported, if necessary, by ice roads, winter trails with 
adequate snow cover, ice pads, ice airstrips, and air 
transport methods, except that such exploration ac-
tivities may occur at other times if the Secretary 
finds that such exploration will have no significant 
adverse effect on the fish and wildlife, their habitat, 
and the environment of the Coastal Plain. 
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(4) Design safety and construction standards 
for all pipelines and any access and service roads, 
that— 
(A) minimize, to the maximum extent pos-
sible, adverse effects upon the passage of mi-
gratory species such as caribou; and 
(B) minimize adverse effects upon the flow 
of surface water by requiring the use of cul-
verts, bridges, and other structural devices. 
(5) Prohibitions on general public access and 
use on all pipeline access and service roads. 
(6) Stringent reclamation and rehabilitation re-
quirements, consistent with the standards set forth 
in this title, requiring the removal from the Coastal 
Plain of all oil and gas development and production 
facilities, structures, and equipment upon completion 
of oil and gas production operations, except that the 
Secretary may exempt from the requirements of this 
paragraph those facilities, structures, or equipment 
that the Secretary determines would assist in the 
management of the Arctic National Wildlife Refuge 
and that are donated to the United States for that 
purpose. 
(7) Appropriate prohibitions or restrictions on 
access by all modes of transportation. 
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(8) Appropriate prohibitions or restrictions on 
sand and gravel extraction. 
(9) Consolidation of facility siting. 
(10) Appropriate prohibitions or restrictions on 
use of explosives. 
(11) Avoidance, to the extent practicable, of 
springs, streams, and river system; the protection of 
natural surface drainage patterns, wetlands, and ri-
parian habitats; and the regulation of methods or 
techniques for developing or transporting adequate 
supplies of water for exploratory drilling. 
(12) Avoidance or minimization of air traffic-re-
lated disturbance to fish and wildlife. 
(13) Treatment and disposal of hazardous and 
toxic wastes, solid wastes, reserve pit fluids, drilling 
muds and cuttings, and domestic wastewater, includ-
ing an annual waste management report, a haz-
ardous materials tracking system, and a prohibition 
on chlorinated solvents, in accordance with applica-
ble Federal and State environmental law. 
(14) Fuel storage and oil spill contingency plan-
ning. 
(15) Research, monitoring, and reporting re-
quirements. 
(16) Field crew environmental briefings. 
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(17) Avoidance of significant adverse effects 
upon subsistence hunting, fishing, and trapping by 
subsistence users. 
(18) Compliance with applicable air and water 
quality standards. 
(19) Appropriate seasonal and safety zone des-
ignations around well sites, within which subsistence 
hunting and trapping shall be limited. 
(20) Reasonable stipulations for protection of 
cultural and archeological resources. 
(21) All other protective environmental stipula-
tions, restrictions, terms, and conditions deemed 
necessary by the Secretary. 
(e) CONSIDERATIONS.—In preparing and promul-
gating regulations, lease terms, conditions, restrictions, 
prohibitions, and stipulations under this section, the Sec-
retary shall consider the following: 
(1) The stipulations and conditions that govern 
the National Petroleum Reserve-Alaska leasing pro-
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 explo-
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ration program under parts 37.31 to 37.33 of title 
50, Code of Federal Regulations. 
(3) The land use stipulations for exploratory 
drilling on the KIC–ASRC private lands that are set 
forth in Appendix 2 of the August 9, 1983, agree-
ment between Arctic Slope Regional Corporation and 
the United States. 
(f) FACILITY CONSOLIDATION PLANNING.— 
(1) IN GENERAL.—The Secretary shall, after 
providing for public notice and comment, prepare 
and update periodically a plan to govern, guide, and 
direct the siting and construction of facilities for the 
exploration, development, production, and transpor-
tation of Coastal Plain oil and gas resources. 
(2) OBJECTIVES.—The plan shall have the fol-
lowing objectives: 
(A) Avoiding unnecessary duplication of fa-
cilities and activities. 
(B) Encouraging consolidation of common 
facilities and activities. 
(C) Locating or confining facilities and ac-
tivities to areas that will minimize impact on 
fish and wildlife, their habitat, and the environ-
ment. 
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(D) Utilizing existing facilities wherever 
practicable. 
(E) Enhancing compatibility between wild-
life values and development activities. 
(g) ACCESS
TO PUBLIC LANDS.—The Secretary 
shall— 
(1) manage public lands in the Coastal Plain 
subject to subsections (a) and (b) of section 811 of 
the Alaska National Interest Lands Conservation 
Act (16 U.S.C. 3121); and 
(2) ensure that local residents shall have rea-
sonable access to public lands in the Coastal Plain 
for traditional uses. 
SEC. 307. EXPEDITED JUDICIAL REVIEW. 
(a) FILING OF COMPLAINT.— 
(1) DEADLINE.—Subject to paragraph (2), any 
complaint seeking judicial review of any provision of 
this title or any action of the Secretary under this 
title shall be filed— 
(A) except as provided in subparagraph 
(B), within the 90-day period beginning on the 
date of the action being challenged; or 
(B) in the case of a complaint based solely 
on grounds arising after such period, within 90 
days after the complainant knew or reasonably 
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should have known of the grounds for the com-
plaint. 
(2) VENUE.—Any complaint seeking judicial re-
view of any provision of this title or any action of 
the Secretary under this title may be filed only in 
the United States Court of Appeals for the District 
of Columbia. 
(3) LIMITATION
ON
SCOPE
OF
CERTAIN
RE-
VIEW.—Judicial review of a Secretarial decision to 
conduct a lease sale under this title, including the 
environmental analysis thereof, shall be limited to 
whether the Secretary has complied with the terms 
of this title and shall be based upon the administra-
tive record of that decision. The Secretary’s identi-
fication of a preferred course of action to enable 
leasing to proceed and the Secretary’s analysis of 
environmental effects under this title shall be pre-
sumed to be correct unless shown otherwise by clear 
and convincing evidence to the contrary. 
(b) LIMITATION ON OTHER REVIEW.—Actions of the 
Secretary with respect to which review could have been 
obtained under this section shall not be subject to judicial 
review in any civil or criminal proceeding for enforcement. 
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SEC. 308. 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 title— 
(1) 50 percent shall be paid to the State of 
Alaska; and 
(2) except as provided in section 311(d), the 
balance shall be transferred to the American-Made 
Energy Trust Fund. 
(b) PAYMENTS TO ALASKA.—Payments to the State 
of Alaska under this section shall be made semiannually. 
SEC. 309. 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 (30 U.S.C. 
3161 et seq.); and 
(2) under title XI of the Alaska National Inter-
est Lands Conservation Act (30 U.S.C. 3161 et 
seq.), for access authorized by sections 1110 and 
1111 of that Act (16 U.S.C. 3170 and 3171). 
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(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 302(g) provisions granting 
rights-of-way and easements described in subsection (a) 
of this section. 
SEC. 310. CONVEYANCE. 
In order to maximize Federal revenues by removing 
clouds on title to lands and clarifying land ownership pat-
terns within the Coastal Plain, the Secretary, notwith-
standing the provisions of section 1302(h)(2) of the Alas-
ka National Interest Lands Conservation Act (16 U.S.C. 
3192(h)(2)), shall convey— 
(1) to the Kaktovik Inupiat Corporation the 
surface estate of the lands described in paragraph 1 
of Public Land Order 6959, to the extent necessary 
to fulfill the Corporation’s entitlement under sec-
tions 12 and 14 of the Alaska Native Claims Settle-
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ment Act (43 U.S.C. 1611 and 1613) in accordance 
with the terms and conditions of the Agreement be-
tween the Department of the Interior, the United 
States Fish and Wildlife Service, the Bureau of 
Land Management, and the Kaktovik Inupiat Cor-
poration effective January 22, 1993; and 
(2) to the Arctic Slope Regional Corporation 
the remaining subsurface estate to which it is enti-
tled pursuant to the August 9, 1983, agreement be-
tween the Arctic Slope Regional Corporation and the 
United States of America. 
SEC. 311. LOCAL GOVERNMENT IMPACT AID AND COMMU-
NITY SERVICE ASSISTANCE. 
(a) FINANCIAL ASSISTANCE AUTHORIZED.— 
(1) IN
GENERAL.—The Secretary may use 
amounts available from the Coastal Plain Local Gov-
ernment Impact Aid Assistance Fund established by 
subsection (d) to provide timely financial assistance 
to entities that are eligible under paragraph (2) and 
that are directly impacted by the exploration for or 
production of oil and gas on the Coastal Plain under 
this title. 
(2) ELIGIBLE
ENTITIES.—The North Slope 
Borough, the City of Kaktovik, and any other bor-
ough, municipal subdivision, village, or other com-
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munity in the State of Alaska that is directly im-
pacted by exploration for, or the production of, oil 
or gas on the Coastal Plain under this title, as de-
termined by the Secretary, shall be eligible for finan-
cial assistance under this section. 
(b) USE
OF
ASSISTANCE.—Financial assistance 
under this section may be used only for— 
(1) planning for mitigation of the potential ef-
fects of oil and gas exploration and development on 
environmental, social, cultural, recreational, and sub-
sistence values; 
(2) implementing mitigation plans and main-
taining mitigation projects; 
(3) developing, carrying out, and maintaining 
projects and programs that provide new or expanded 
public facilities and services to address needs and 
problems associated with such effects, including fire- 
fighting, police, water, waste treatment, medivac, 
and medical services; and 
(4) establishment of a coordination office, by 
the north slope borough, in the city of kaktovik, 
which shall— 
(A) coordinate with and advise developers 
on local conditions, impact, and history of the 
areas utilized for development; and 
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(B) provide to the Committee on Resources 
of the House of Representatives and the Com-
mittee on Energy and Natural Resources of the 
Senate an annual report on the status of co-
ordination between developers and the commu-
nities affected by development. 
(c) APPLICATION.— 
(1) IN GENERAL.—Any community that is eligi-
ble for assistance under this section may submit an 
application for such assistance to the Secretary, in 
such form and under such procedures as the Sec-
retary may prescribe by regulation. 
(2) NORTH SLOPE BOROUGH COMMUNITIES.—A 
community located in the North Slope Borough may 
apply for assistance under this section either directly 
to the Secretary or through the North Slope Bor-
ough. 
(3) APPLICATION ASSISTANCE.—The Secretary 
shall work closely with and assist the North Slope 
Borough and other communities eligible for assist-
ance under this section in developing and submitting 
applications for assistance under this section. 
(d) ESTABLISHMENT OF FUND.— 
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(1) IN GENERAL.—There is established in the 
Treasury the Coastal Plain Local Government Im-
pact Aid Assistance Fund. 
(2) USE.—Amounts in the fund may be used 
only for providing financial assistance under this 
section. 
(3) DEPOSITS.—Subject to paragraph (4), there 
shall be deposited into the fund amounts received by 
the United States as revenues derived from rents, 
bonuses, and royalties from Federal leases and lease 
sales authorized under this title. 
(4) LIMITATION
ON
DEPOSITS.—The total 
amount in the fund may not exceed $11,000,000. 
(5) INVESTMENT
OF
BALANCES.—The Sec-
retary of the Treasury shall invest amounts in the 
fund in interest bearing government securities. 
(e) AUTHORIZATION OF APPROPRIATIONS.—To pro-
vide financial assistance under this section there is author-
ized to be appropriated to the Secretary from the Coastal 
Plain Local Government Impact Aid Assistance Fund 
$5,000,000 for each fiscal year. 
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100 
TITLE IV—COAL-TO-LIQUID 
FUEL PROMOTION 
SEC. 401. STRATEGIC PETROLEUM RESERVE. 
(a) DEVELOPMENT, OPERATION, AND MAINTENANCE 
OF RESERVE.—Section 159 of the Energy Policy and Con-
servation Act (42 U.S.C. 6239) is amended— 
(1) by redesignating subsections (f), (g), (j), 
(k), and (l) as subsections (a), (b), (e), (f), and (g), 
respectively; and 
(2) by inserting after subsection (b) (as redesig-
nated by paragraph (1)) the following: 
‘‘(c) STUDY
OF
MAINTAINING
COAL-TO-LIQUID 
PRODUCTS IN RESERVE.—Not later than 1 year after the 
date of enactment of the American-Made Energy Act of 
2008, the Secretary and the Secretary of Defense shall— 
‘‘(1) conduct a study of the feasibility and suit-
ability of maintaining coal-to-liquid products in the 
Reserve; and 
‘‘(2) submit to the Committee on Energy and 
Natural Resources and the Committee on Armed 
Services of the Senate and the Committee on Energy 
and Commerce and the Committee on Armed Serv-
ices of the House of Representatives a report de-
scribing the results of the study. 
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101 
‘‘(d) CONSTRUCTION OF STORAGE FACILITIES.—As 
soon as practicable after the date of enactment of the 
American-Made Energy Act of 2008, the Secretary may 
construct 1 or more storage facilities— 
‘‘(1) in the vicinity of pipeline infrastructure 
and at least 1 military base; but 
‘‘(2) outside the boundaries of any State on the 
coast of the Gulf of Mexico.’’. 
(b) PETROLEUM PRODUCTS FOR STORAGE IN RE-
SERVE.—Section 160 of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6240) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by inserting a semi-
colon at the end; 
(B) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(C) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(4) coal-to-liquid fuel (as defined in section 
404 of the American-Made Energy Act of 2008), as 
the Secretary determines to be appropriate, in a 
quantity not to exceed 20 percent of the total quan-
tity of petroleum products in the Reserve.’’; 
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102 
(2) in subsection (b), by redesignating para-
graphs (3) through (5) as paragraphs (2) through 
(4), respectively; and 
(3) by redesignating subsections (f) and (h) as 
subsections (d) and (e), respectively. 
(c) CONFORMING AMENDMENTS.—Section 167 of the 
Energy Policy and Conservation Act (42 U.S.C. 6247) is 
amended— 
(1) in subsection (b)— 
(A) by redesignating paragraphs (2) and 
(3) as paragraphs (1) and (2), respectively; and 
(B) in paragraph (2) (as redesignated by 
subparagraph (A)), by striking ‘‘section 160(f)’’ 
and inserting ‘‘section 160(e)’’; and 
(2) in subsection (d), in the matter preceding 
paragraph (1), by striking ‘‘section 160(f)’’ and in-
serting ‘‘section 160(e)’’. 
SEC. 402. PROCUREMENT OF UNCONVENTIONAL FUELS BY 
THE DEPARTMENT OF DEFENSE. 
Section 2398a of title 10, United States Code, is 
amended— 
(1) in subsection (b)— 
(A) by striking ‘‘The Secretary’’ and in-
serting ‘‘(1) The Secretary’’; 
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104 
‘‘(2) The term ‘coal-to-liquid’ means a proces 
within the meaning of section 404 of the American- 
Made Energy Act of 2008.’’. 
SEC. 403. GOVERNMENT AUCTION OF LONG TERM PUT OP-
TION CONTRACTS ON COAL-TO-LIQUID FUEL 
PRODUCED BY QUALIFIED COAL-TO-LIQUID 
FACILITIES. 
(a) IN GENERAL.—The Secretary shall, from time to 
time, auction to the public coal-to-liquid fuel put option 
contracts having expiration dates of 5 years, 10 years, 15 
years, or 20 years. 
(b) CONSULTATION
WITH
SECRETARY
OF
EN-
ERGY.—The Secretary shall consult with the Secretary of 
Energy regarding— 
(1) the frequency of the auctions; 
(2) the strike prices specified in the contracts; 
(3) the number of contracts to be auctioned 
with a given strike price and expiration date; and 
(4) the capacity of existing or planned facilities 
to produce coal-to-liquid fuel. 
(c) DEFINITIONS.—In this section: 
(1) COAL-TO-LIQUID PUT OPTION CONTRACT.— 
The term ‘‘coal-to-liquid put option contract’’ means 
a contract, written by the Secretary, which— 
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105 
(A) gives the holder the right (but not the 
obligation) to sell to the Government of the 
United States a certain quantity of a specific 
type of coal-to-liquid fuel produced by a quali-
fied coal-to-liquid facility specified in the con-
tract, at a strike price specified in the contract, 
on or before an expiration date specified in the 
contract; and 
(B) is transferable by the holder to any 
other entity. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(3) STRIKE PRICE.—The term ‘‘strike price’’ 
means, with respect to a put option contract, the 
price at which the holder of the contract has the 
right to sell the fuel which is the subject of the con-
tract. 
(d) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out this 
section. 
(e) EFFECTIVE DATE.—This section shall take effect 
1 year after the date of the enactment of this Act. 
SEC. 404. DEFINITIONS. 
For purposes of this title (except as otherwise pro-
vided)— 
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106 
(1) COAL-TO-LIQUID FUEL.—The term ‘‘coal-to- 
liquid fuel’’ means any transportation-grade liquid 
fuel derived primarily from coal (including peat) and 
produced at a qualified coal-to-liquid facility. 
(2) QUALIFIED
COAL-TO-LIQUID
FACILITY.— 
The term ‘‘qualified coal-to-liquid facility’’ means a 
manufacturing facility that has the capacity to 
produce at least 10,000 barrels per day of transpor-
tation grade liquid fuels from a feedstock that is pri-
marily domestic coal (including peat and any prop-
erty which allows for the capture, transportation, or 
sequestration of by-products resulting from such 
process, including carbon emissions). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
TITLE V—BIOFUEL PROGRAM 
SEC. 501. GRANTS FOR CELLULOSIC ETHANOL PRODUC-
TION. 
Subsection (s) of section 211 of the Clean Air Act 
(as added by section 1512 of the Energy Policy Act of 
2005) (and as redesignated by section 9307 of this Act), 
relating to conversion assistance for cellulosic biomass, 
waste-derived ethanol, and approved renewable fuels, is 
amended as follows: 
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107 
(1) By adding the following new subparagraphs 
at the end of paragraph (3): 
‘‘(D) $500,000,000 for fiscal year 2009. 
‘‘(E) $500,000,000 for fiscal year 2010.’’. 
(2) By adding the following new paragraph at 
the end thereof: 
‘‘(5) CRITERIA.—In awarding grants under this 
section, the Secretary shall give priority to applica-
tions that promote feedstock diversity and the geo-
graphic dispersion of production facilities.’’. 
SEC. 502. LOAN GUARANTEES FOR BIOREFINERIES AND 
BIOFUEL PRODUCTION PLANTS. 
Section 9003 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8103) is amended— 
(1) in the section heading, by inserting ‘‘; 
LOAN GUARANTEES FOR BIOREFINERIES AND 
BIOFUEL
PRODUCTION
PLANTS’’ 
after 
‘‘GRANTS’’; 
(2) in subsection (b)(2)(A), by striking ‘‘and’’ 
the 1st place it appears and inserting ‘‘or’’; 
(3) in subsection (c), by redesignating sub-
section (h ) as subsection (i) and subsections (d) 
through (g) as subsections (e) through (h ), respec-
tively, and inserting after subsection (c) the fol-
lowing: 
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108 
‘‘(d) LOAN GUARANTEES.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
loan guarantees to eligible entities to assist in pay-
ing the cost of development and construction of bio-
refineries and biofuel production plants (including 
retrofitting) to carry out projects to demonstrate the 
commercial viability of 1 or more processes for con-
verting biomass to fuels or chemicals. 
‘‘(2) LIMITATIONS.— 
‘‘(A) MAXIMUM
PERCENTAGE
OF
LOAN 
GUARANTEED.—A loan guarantee under para-
graph (1) shall be for not more than 90 percent 
of the principal and interest due on the loan. 
‘‘(B) TOTAL
AMOUNTS
GUARANTEED.— 
The total amount of principal and interest 
guaranteed under paragraph (1) shall not ex-
ceed— 
‘‘(i) $600,000,000, in the case of 
loans 
valued 
at 
not 
more 
than 
$100,000,000; or 
‘‘(ii) $1,000,000,000, in the case of 
loans valued at more than $100,000,000 
but not more than $250,000,000. 
‘‘(C) MAXIMUM TERM OF LOAN GUARAN-
TEED.—The Secretary shall determine the max-
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109 
imum term of a loan guarantee provided under 
paragraph (1).’’; 
(4) in subsection (f) (as so redesignated)— 
(A) in paragraph (1), by inserting ‘‘and 
loan guarantees under subsection (d)’’ after 
‘‘(c)’’; 
(B) in paragraph (2)(A), by inserting ‘‘or 
loan guarantees under subsection (d)’’ after 
‘‘(c)’’; 
(C) in paragraph (2)(B)— 
(i) by striking ‘‘and’’ at the end of 
clause (viii); 
(ii) by striking the period at the end 
of clause (ix) and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(x) The level of local ownership.’’; and 
(D) by adding at the end the following: 
‘‘(3) PRIORITY
IN
AWARDING
LOAN
GUARAN-
TEES.—In selecting projects to receive loan guaran-
tees under subsection (d), the Secretary shall give 
priority to projects based on the criteria set forth in 
paragraph (2)(B) of this subsection.’’; 
(5) in subsection (i), by striking ‘‘2007’’ and in-
serting ‘‘2012’’; and 
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110 
(6) by adding at the end the following new sub-
sections: 
‘‘(j) ADDITIONAL FUNDING
FOR LOAN GUARAN-
TEES.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary shall use to carry out this section— 
‘‘(1) $50,000,000 for fiscal year 2008; 
‘‘(2) $65,000,000 for fiscal year 2009; 
‘‘(3) $75,000,000 for fiscal year 2010; 
‘‘(4) $150,000,000 for fiscal year 2011; and 
‘‘(5) $250,000,000 for fiscal year 2012. 
‘‘(k) CONTINUATION OF OPERATIONS.— 
‘‘(1) FUNDING.—The Secretary shall continue 
to carry out this section at the rate of operation in 
effect on September 30, 2012, from sums in the 
Treasury not otherwise appropriated, through Sep-
tember 30, 2017. 
‘‘(2) AUTHORITY.—The program and authori-
ties provided under this section shall continue in 
force and effect through September 30, 2017.’’. 
SEC. 503. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 
2000. 
(a) RESTATEMENT, EXTENSION, AND INCREASED 
FUNDING OF ACT.—Section 9008 of the Farm Security 
and Rural Investment Act of 2002 (Public Law 107–171; 
116 Stat. 486) is amended to read as follows: 
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111 
‘‘SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT 
OF 2000. 
‘‘(a) SHORT TITLE.—This section may be cited as the 
‘Biomass Research and Development Act of 2000’. 
‘‘(b) FINDINGS.—Congress finds that— 
‘‘(1) conversion of biomass into biobased indus-
trial products offers outstanding potential for benefit 
to the national interest through— 
‘‘(A) improved strategic security and bal-
ance of payments; 
‘‘(B) healthier rural economies; 
‘‘(C) improved environmental quality; 
‘‘(D) near-zero net greenhouse gas emis-
sions; 
‘‘(E) technology export; and 
‘‘(F) sustainable resource supply; 
‘‘(2) the key technical challenges to be overcome 
in order for biobased industrial products to be cost- 
competitive are finding new technology and reducing 
the cost of technology for converting biomass into 
desired biobased industrial products; 
‘‘(3) biobased fuels have the clear potential to 
be sustainable, low cost, and high performance fuels 
that are compatible with both current and future 
transportation systems and provide near-zero net 
greenhouse gas emissions; 
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112 
‘‘(4) biobased chemicals have the clear potential 
for environmentally benign product life cycles; 
‘‘(5) biobased power can— 
‘‘(A) provide environmental benefits; 
‘‘(B) promote rural economic development; 
and 
‘‘(C) diversify energy resource options; 
‘‘(6) many biomass feedstocks suitable for in-
dustrial processing show the clear potential for sus-
tainable production, in some cases resulting in im-
proved soil fertility and carbon sequestration; 
‘‘(7)(A) grain processing mills are biorefineries 
that produce a diversity of useful food, chemical, 
feed, and fuel products; and 
‘‘(B) technologies that result in further diver-
sification of the range of value-added biobased in-
dustrial products can meet a key need for the grain 
processing industry; 
‘‘(8)(A) cellulosic feedstocks are attractive be-
cause of their low cost and widespread availability; 
and 
‘‘(B) research resulting in cost-effective tech-
nology to overcome the recalcitrance of cellulosic bio-
mass would allow biorefineries to produce fuels and 
bulk chemicals on a very large scale, with a commen-
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113 
surately large realization of the benefit described in 
paragraph (1); 
‘‘(9) research into the fundamentals to under-
stand important mechanisms of biomass conversion 
can be expected to accelerate the application and ad-
vancement of biomass processing technology by— 
‘‘(A) increasing the confidence and speed 
with which new technologies can be scaled up; 
and 
‘‘(B) giving rise to processing innovations 
based on new knowledge; 
‘‘(10) the added utility of biobased industrial 
products developed through improvements in proc-
essing technology would encourage the design of 
feedstocks that would meet future needs more effec-
tively; 
‘‘(11) the creation of value-added biobased in-
dustrial products would create new jobs in construc-
tion, manufacturing, and distribution, as well as new 
higher-valued exports of products and technology; 
‘‘(12)(A) because of the relatively short-term 
time horizon characteristic of private sector invest-
ments, and because many benefits of biomass proc-
essing are in the national interest, it is appropriate 
for 
the 
Federal 
Government 
to 
provide 
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precommercial investment in fundamental research 
and research-driven innovation in the biomass proc-
essing area; and 
‘‘(B) such an investment would provide a valu-
able complement to ongoing and past governmental 
support in the biomass processing area; and 
‘‘(13) several prominent studies, including stud-
ies by the President’s Committee of Advisors on 
Science and Technology and the National Research 
Council— 
‘‘(A) support the potential for large re-
search-driven advances in technologies for pro-
duction of biobased industrial products as well 
as associated benefits; and 
‘‘(B) document the need for a focused, in-
tegrated, and innovation-driven research effort 
to provide the appropriate progress in a timely 
manner. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) ADVISORY COMMITTEE.—The term ‘Advi-
sory Committee’ means the Biomass Research and 
Development Technical Advisory Committee estab-
lished by this section. 
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