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(4) FEDERAL SHARE.—The Federal share of 
costs of grants under this subsection shall be pro-
vided from funds made available to carry out this 
section. The Federal share of the cost of a project 
carried out with such a grant shall not exceed 50 
percent of such cost. 
(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection for each of fiscal years 2009 through 
2018 the amount of $5,000,000. No funds author-
ized under this section may be used for the purposes 
of drilling new wells. 
(6) AMENDMENT.—Section 4 of the Geothermal 
Steam Act of 1970 (30 USC 1003) is amended by 
adding at the end the following: 
‘‘(h) 
GEOTHERMAL
RESOURCES
CO-PRODUCED 
WITH THE MINERALS.—Any person who holds a lease or 
who operates a cooperative or unit plan under the Mineral 
Leasing Act, in the absence of an existing lease for geo-
thermal resources under this Act, shall upon notice to the 
Secretary have the right to utilize any geothermal re-
sources co-produced with the minerals for which the lease 
was issued during the operation of that lease or coopera-
tive or unit plan, for the generating of electricity to oper-
ate the lease. Any electricity that is produced in excess 
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HR 6108 IH 
of that which is required to operate the lease and that 
is sold for purposes outside of the boundary of the lease 
shall be subject to the requirements of section 5.’’. 
(f) LIQUID FUELS GRANT PROGRAM.— 
(1) PROGRAM.—The Secretary of the Interior 
shall establish a grant program for facilities for coal- 
to-liquids, petroleum coke-to-liquids, oil shale, tar 
sands, heavy oil, and Alaska natural gas-to-liquids 
and to assess the production of low-rank coal water 
fuel (in this subsection referred to as ‘‘LRCWF’’). 
(2) LRCWF.—The LRCWF grant project shall 
be allocated $15,000,000. 
(3) DEFINITIONS.—In this subsection: 
(A) COAL-TO-LIQUIDS
FRONT-END
ENGI-
NEERING AND DESIGN.—The terms ‘‘coal-to-liq-
uids front-end engineering and design’’ and 
‘‘FEED’’ mean those expenditures necessary to 
engineer, design, and obtain permits for a facil-
ity for a particular geographic location which 
will utilize a process or technique to produce 
liquid fuels from coal resources. 
(B) LOW-RANK
COAL
WATER
FUEL.—In 
this subsection the term ‘‘low-rank coal water 
fuel’’ means a liquid fuel produced from hydro-
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thermal treatment of lignite and sub-bituminous 
coals. 
(4) GRANT PROVISIONS.—All grants shall re-
quire a 50 percent non-Federal cost share. The first 
4 FEED grant recipients who receive full project 
construction financing commitments, based on ear-
liest calendar date, shall not be required to repay 
any of their grants. The next 4 FEED grant recipi-
ents who receive such commitments shall be required 
to repay 25 percent of the grant. The next 4 FEED 
grant recipients who receive such commitments shall 
be required to repay 50 percent of the grant, and 
the remaining FEED grant recipients shall be re-
quired to repay 75 percent of the grant. The 
LRCWF recipient shall not be required to repay the 
grant. Any required repayment shall be paid as part 
of the closing process for any construction financing 
relating to the grant. No repayment shall require the 
payment of interest if repaid within 5 years of the 
issuance of the grant. FEED grants shall be limited 
to a maximum of $1,000,000 per 1,000 barrels per 
day of liquid fuels production capacity, not to exceed 
$25 million per year. 
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HR 6108 IH 
(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection— 
(A) $65,000,000 for fiscal year 2009; and 
(B) $37,500,000 for each of fiscal years 
2010 through 2018. 
(g) RENEWABLE ENERGY FROM OCEAN WAVE, 
TIDE, CURRENT, AND THERMAL RESOURCES.— 
(1) PROGRAM.—The Secretary of the Interior 
shall establish a grant program for the production of 
renewable energy from ocean waves, tides, currents, 
and thermal resources. 
(2) GRANT PROVISIONS.—All grants under this 
subsection shall require a 50 percent non-Federal 
cost share. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection funds for each of fiscal years 2009 
through 2018 in the amount of $20,000,000 each 
year. 
(h) AMENDMENT TO THE SURFACE MINING CON-
TROL AND RECLAMATION ACT OF 1977.—Section 507 of 
the Surface Mining Control and Reclamation Act of 1977 
(30 U.S.C. 1267) is amended by adding at the end the 
following: 
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HR 6108 IH 
‘‘(i) Any person who provides the regulatory authority 
with a map under subsection (b)(13) or (b)(14) shall not 
be liable to any other person in any way for the accuracy 
or completeness of any such map which was not prepared 
and certified by or on behalf of such person.’’. 
SEC. 27. LEASES FOR AREAS LOCATED WITHIN 100 MILES 
OF CALIFORNIA OR FLORIDA. 
(a) AUTHORIZATION TO CANCEL AND EXCHANGE 
CERTAIN EXISTING OIL AND GAS LEASES; PROHIBITION 
ON SUBMITTAL OF EXPLORATION PLANS FOR CERTAIN 
LEASES PRIOR TO JUNE 30, 2012.— 
(1) AUTHORITY.—Within 2 years after the date 
of enactment of this Act, the lessee of an existing oil 
and gas lease for an area located completely within 
100 miles of the coastline within the California or 
Florida Adjacent Zones shall have the option, with-
out compensation, of exchanging such lease for a 
new oil and gas lease having a primary term of 5 
years. For the area subject to the new lease, the les-
see may select any unleased tract on the outer Con-
tinental Shelf that is in an area available for leasing. 
Further, with the permission of the relevant Gov-
ernor, such a lessee may convert its existing oil and 
gas lease into a natural gas lease having a primary 
term of 5 years and covering the same area as the 
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HR 6108 IH 
existing lease or another area within the same 
State’s Adjacent Zone within 100 miles of the coast-
line. 
(2) ADMINISTRATIVE PROCESS.—The Secretary 
of the Interior shall establish a reasonable adminis-
trative process to implement paragraph (1). Ex-
changes and conversions under subsection (a), in-
cluding the issuance of new leases, shall not be con-
sidered to be major Federal actions for purposes of 
the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). Further, such actions con-
ducted in accordance with this section are deemed to 
be in compliance all provisions of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1331 et seq.). 
(3) OPERATING
RESTRICTIONS.—A new lease 
issued in exchange for an existing lease under this 
section shall be subject to such national defense op-
erating stipulations on the OCS tract covered by the 
new lease as may be applicable upon issuance. 
(4) PRIORITY.—The Secretary shall give pri-
ority in the lease exchange process based on the 
amount of the original bonus bid paid for the 
issuance of each lease to be exchanged. The Sec-
retary shall allow leases covering partial tracts to be 
exchanged for leases covering full tracts conditioned 
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upon payment of additional bonus bids on a per-acre 
basis as determined by the average per acre of the 
original bonus bid per acre for the partial tract 
being exchanged. 
(5) EXPLORATION
PLANS.—Any exploration 
plan submitted to the Secretary of the Interior after 
the date of the enactment of this Act and before 
July 1, 2012, for an oil and gas lease for an area 
wholly within 100 miles of the coastline within the 
California Adjacent Zone or Florida Adjacent Zone 
shall not be treated as received by the Secretary 
until the earlier of July 1, 2012, or the date on 
which a petition by the Adjacent State for oil and 
gas leasing covering the area within which is located 
the area subject to the oil and gas lease was ap-
proved. 
(b) FURTHER
LEASE
CANCELLATION
AND
EX-
CHANGE PROVISIONS.— 
(1) CANCELLATION OF LEASE.—As part of the 
lease exchange process under this section, the Sec-
retary shall cancel a lease that is exchanged under 
this section. 
(2) CONSENT OF LESSEES.—All lessees holding 
an interest in a lease must consent to cancellation 
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of their leasehold interests in order for the lease to 
be cancelled and exchanged under this section. 
(3) WAIVER OF RIGHTS.—As a prerequisite to 
the exchange of a lease under this section, the lessee 
must waive any rights to bring any litigation against 
the United States related to the transaction. 
(4) PLUGGING AND ABANDONMENT.—The plug-
ging and abandonment requirements for any wells 
located on any lease to be cancelled and exchanged 
under this section must be complied with by the les-
sees prior to the cancellation and exchange. 
(c) AREA PARTIALLY WITHIN 100 MILES OF FLOR-
IDA.—An existing oil and gas lease for an area located 
partially within 100 miles of the coastline within the Flor-
ida Adjacent Zone may only be developed and produced 
using wells drilled from well-head locations at least 100 
miles from the coastline to any bottom-hole location on 
the area of the lease. This subsection shall not apply if 
Florida has petitioned for leasing closer to the coastline 
than 100 miles. 
(d) EXISTING OIL AND GAS LEASE DEFINED.—In 
this section the term ‘‘existing oil and gas lease’’ means 
an oil and gas lease in effect on the date of the enactment 
of this Act. 
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HR 6108 IH 
SEC. 28. COASTAL IMPACT ASSISTANCE. 
Section 31 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356a) is repealed. 
SEC. 29. 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. 
(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 
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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, 
2006, dollars), and an 80 percent reduction if 
the average price drops below $30 (in January 
1, 2006, 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.— 
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HR 6108 IH 
SEC. 32. REPEAL OF THE GULF OF MEXICO ENERGY SECU-
RITY ACT OF 2006. 
The Gulf of Mexico Energy Security Act of 2006 is 
repealed effective October 1, 2008. 
Æ 
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