I 
110TH CONGRESS 
2D SESSION 
H. R. 6899 
To advance the national security interests of the United States by reducing 
its dependency on oil through renewable and clean, alternative fuel tech-
nologies while building a bridge to the future through expanded access 
to Federal oil and natural gas resources, revising the relationship between 
the oil and gas industry and the consumers who own those resources 
and deserve a fair return from the development of publicly owned oil 
and gas, ending tax subsidies for large oil and gas companies, and 
facilitating energy efficiencies in the building, housing, and transportation 
sectors, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 15, 2008 
Mr. RAHALL (for himself, Mr. GENE GREEN of Texas, Mr. GEORGE MILLER 
of California, and Mr. DINGELL) introduced the following bill; which was 
referred to the Committee on Natural Resources, and in addition to the 
Committees on Energy and Commerce, Ways and Means, Oversight and 
Government Reform, the Judiciary, Financial Services, Transportation 
and Infrastructure, the Budget, Rules, Science and Technology, and For-
eign Affairs, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To advance the national security interests of the United 
States by reducing its dependency on oil through renew-
able and clean, alternative fuel technologies while build-
ing a bridge to the future through expanded access to 
Federal oil and natural gas resources, revising the rela-
tionship between the oil and gas industry and the con-
sumers who own those resources and deserve a fair re-
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turn from the development of publicly owned oil and 
gas, ending tax subsidies for large oil and gas companies, 
and facilitating energy efficiencies in the building, hous-
ing, and transportation sectors, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Comprehensive Amer-
ican Energy Security and Consumer Protection Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—FEDERAL OIL AND GAS LEASING 
Subtitle A—Outer Continental Shelf Oil and Gas Leasing 
Sec. 101. Prohibition on leasing. 
Sec. 102. Opening of certain areas to oil and gas leasing. 
Sec. 103. Coastal State roles and responsibilities. 
Sec. 104. Protection of the environment and conservation of the natural re-
sources of the Outer Continental Shelf. 
Sec. 105. Limitations. 
Sec. 106. Prohibition on leasing in certain Federal protected areas. 
Sec. 107. No effect on applicable law. 
Sec. 108. Buy American requirements. 
Sec. 109. Small, woman-owned, and minority-owned businesses. 
Sec. 110. Definitions. 
Subtitle B—Diligent Development of Federal Oil and Gas Leases 
Sec. 121. Clarification. 
Sec. 122. Covered provisions. 
Sec. 123. Regulations. 
Sec. 124. Resource estimates and leasing program management indicators. 
Subtitle C—Royalties Under Offshore Oil and Gas Leases 
Sec. 131. Short title. 
Sec. 132. Price thresholds for royalty suspension provisions. 
Sec. 133. Clarification of authority to impose price thresholds for certain lease 
sales. 
Sec. 134. Eligibility for new leases and the transfer of leases; conservation of 
resources fees. 
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Sec. 135. Strategic Energy Efficiency and Renewables Reserve. 
Subtitle D—Accountability and Integrity in the Federal Energy Program 
Sec. 141. Royalty in-kind. 
Sec. 142. Fair return on production of Federal oil and gas resources. 
Sec. 143. Royalty-in-kind ethics. 
Sec. 144. Prohibition on certain gifts. 
Sec. 145. Strengthening the ability of the Interior Department Inspector Gen-
eral to secure cooperation. 
Subtitle E—Federal Oil and Gas Royalty Reform 
Sec. 151. Amendments to definitions. 
Sec. 152. Interest. 
Sec. 153. Obligation period. 
Sec. 154. Tolling agreements and subpoenas. 
Sec. 155. Liability for royalty payments. 
Subtitle F—National Petroleum Reserve in Alaska 
Sec. 161. Short title. 
Sec. 162. Acceleration of lease sales for National Petroleum Reserve in Alaska. 
Sec. 163. National Petroleum Reserve in Alaska: pipeline construction. 
Sec. 164. Alaska natural gas pipeline project facilitation. 
Sec. 165. Project labor agreements and other pipeline requirements. 
Sec. 166. Ban on export of Alaskan oil. 
Subtitle G—Oil Shale 
Sec. 171. Oil shale leasing. 
TITLE II—CONSUMER ENERGY SUPPLY 
Sec. 201. Short title. 
Sec. 202. Definitions. 
Sec. 203. Sale and replacement of oil from the Strategic Petroleum Reserve. 
TITLE III—PUBLIC TRANSPORTATION 
Sec. 301. Short title. 
Sec. 302. Findings. 
Sec. 303. Grants to improve public transportation services. 
Sec. 304. Increased Federal share for Clean Air Act compliance. 
Sec. 305. Transportation fringe benefits. 
Sec. 306. Capital cost of contracting vanpool pilot program. 
Sec. 307. National consumer awareness program. 
Sec. 308. Exception to alternative fuel procurement requirement. 
TITLE IV—GREATER ENERGY EFFICIENCY IN BUILDING CODES 
Sec. 401. Greater energy efficiency in building codes. 
TITLE V—FEDERAL RENEWABLE ELECTRICITY STANDARD 
Sec. 501. Federal renewable electricity standard. 
TITLE VI—GREEN RESOURCES FOR ENERGY EFFICIENT 
NEIGHBORHOODS 
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Sec. 601. Short title and table of contents. 
Sec. 602. Definitions. 
Sec. 603. Implementation of energy efficiency participation incentives for HUD 
programs. 
Sec. 604. Minimum HUD energy efficiency standards and standards for addi-
tional credit. 
Sec. 605. Energy efficiency and conservation demonstration program for multi-
family housing projects assisted with project-based rental as-
sistance. 
Sec. 606. Additional credit for Fannie Mae and Freddie Mac housing goals for 
energy efficient mortgages. 
Sec. 607. Duty to serve underserved markets for energy-efficient and location- 
efficient mortgages. 
Sec. 608. Consideration of energy efficiency under FHA mortgage insurance 
programs and Native American and Native Hawaiian loan 
guarantee programs. 
Sec. 609. Energy efficient mortgages education and outreach campaign. 
Sec. 610. Collection of information on energy-efficient and location efficient 
mortgages through Home Mortgage Disclosure Act. 
Sec. 611. Ensuring availability of homeowners insurance for homes not con-
nected to electricity grid. 
Sec. 612. Mortgage incentives for energy-efficient multifamily housing. 
Sec. 613. Energy efficiency certifications for housing with mortgages insured by 
FHA. 
Sec. 614. Assisted housing energy loan pilot program. 
Sec. 615. Residential energy efficiency block grant program. 
Sec. 616. Including sustainable development in comprehensive housing afford-
ability strategies. 
Sec. 617. Grant program to increase sustainable low-income community devel-
opment capacity. 
Sec. 618. Utilization of energy performance contracts in HOPE VI. 
Sec. 619. HOPE VI green developments requirement. 
Sec. 620. Consideration of energy-efficiency improvements in appraisals. 
Sec. 621. Assistance for Housing Assistance Council. 
Sec. 622. Rural housing and economic development assistance. 
Sec. 623. Loans to States and Indian tribes to carry out renewable energy 
sources activities. 
Sec. 624. Green banking centers. 
Sec. 625. Public housing energy cost report. 
TITLE VII—MISCELLANEOUS PROVISIONS 
Sec. 701. Alternative fuel pumps. 
Sec. 702. National Energy Center of Excellence. 
Sec. 703. Sense of Congress regarding renewable biomass. 
TITLE VIII—ENERGY TAX INCENTIVES 
Sec. 800. Short title, etc. 
Subtitle A—Energy Production Incentives 
PART 1—RENEWABLE ENERGY INCENTIVES 
Sec. 801. Renewable energy credit. 
Sec. 802. Production credit for electricity produced from marine renewables. 
Sec. 803. Energy credit. 
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Sec. 804. Credit for residential energy efficient property. 
Sec. 805. Special rule to implement FERC and State electric restructuring pol-
icy. 
Sec. 806. New clean renewable energy bonds. 
PART 2—CARBON MITIGATION PROVISIONS 
Sec. 811. Expansion and modification of advanced coal project investment cred-
it. 
Sec. 812. Expansion and modification of coal gasification investment credit. 
Sec. 813. Temporary increase in coal excise tax. 
Sec. 814. Special rules for refund of the coal excise tax to certain coal pro-
ducers and exporters. 
Sec. 815. Carbon audit of the tax code. 
Subtitle B—Transportation and Domestic Fuel Security Provisions 
Sec. 821. Inclusion of cellulosic biofuel in bonus depreciation for biomass eth-
anol plant property. 
Sec. 822. Credits for biodiesel and renewable diesel. 
Sec. 823. Clarification that credits for fuel are designed to provide an incentive 
for United States production. 
Sec. 824. Credit for new qualified plug-in electric drive motor vehicles. 
Sec. 825. Exclusion from heavy truck tax for idling reduction units and ad-
vanced insulation. 
Sec. 826. Restructuring of New York Liberty Zone tax credits. 
Sec. 827. Transportation fringe benefit to bicycle commuters. 
Sec. 828. Alternative fuel vehicle refueling property credit. 
Sec. 829. Energy security bonds. 
Sec. 830. Certain income and gains relating to alcohol fuels and mixtures, bio-
diesel fuels and mixtures, and alternative fuels and mixtures 
treated as qualifying income for publicly traded partnerships. 
Subtitle C—Energy Conservation and Efficiency Provisions 
Sec. 841. Qualified energy conservation bonds. 
Sec. 842. Credit for nonbusiness energy property. 
Sec. 843. Energy efficient commercial buildings deduction. 
Sec. 844. Modifications of energy efficient appliance credit for appliances pro-
duced after 2007. 
Sec. 845. Accelerated recovery period for depreciation of smart meters and 
smart grid systems. 
Sec. 846. Qualified green building and sustainable design projects. 
Subtitle D—Revenue Provisions 
Sec. 851. Limitation of deduction for income attributable to domestic produc-
tion of oil, gas, or primary products thereof. 
Sec. 852. Clarification of determination of foreign oil and gas extraction in-
come. 
Sec. 853. Time for payment of corporate estimated taxes. 
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TITLE I—FEDERAL OIL AND GAS 
LEASING 
Subtitle A—Outer Continental 
Shelf Oil and Gas Leasing 
SEC. 101. PROHIBITION ON LEASING. 
(a) PROHIBITION.—The Outer Continental Shelf 
Lands Act (43 U.S.C. 1331 et seq.) notwithstanding, the 
Secretary shall not take nor authorize any action related 
to oil and gas preleasing or leasing of any area of the 
Outer Continental Shelf that was not available for oil and 
gas leasing as of July 1, 2008, unless that action is ex-
pressly authorized by this subtitle or a statute enacted by 
Congress after the date of enactment of this Act. 
(b) TREATMENT OF AREAS IN GULF OF MEXICO.— 
For purposes of this subtitle, such action with respect to 
an area referred to in section 104(a) of the Gulf of Mexico 
Energy Security Act of 2006 (title I of division C of Public 
Law 109–432; 42 U.S.C. 1331 note) taken or authorized 
after the period referred to in that section shall be treated 
as authorized by this subtitle, and such leasing of such 
area shall be treated as authorized under section 102(a). 
SEC. 102. OPENING OF CERTAIN AREAS TO OIL AND GAS 
LEASING. 
(a) LEASING
AUTHORIZED.—The Secretary may 
offer for oil and gas leasing, preleasing, or other related 
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activities, in accordance with this section and the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) and 
subject to subsection (b) of this section, section 103 of 
this Act, and section 307 of the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1456), any area— 
(1) that is in any Outer Continental Shelf Plan-
ning Area in the Atlantic Ocean or Pacific Ocean 
that is located farther than 50 miles from the coast-
line; and 
(2) that was not otherwise available for oil and 
gas leasing, preleasing, and other related activities 
as of July 1, 2008. 
(b) INCLUSION IN LEASING PROGRAM REQUIRED.— 
An area may be offered for lease under this section only 
if it has been included in an Outer Continental Shelf leas-
ing program approved by the Secretary in accordance with 
section 18 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1344). 
(c) REQUIREMENT TO CONDUCT LEASE SALES.—As 
soon as practicable, consistent with subsection (b) and sec-
tion 103(a), but not later than 3 years after the date of 
enactment of this Act, and as appropriate thereafter, the 
Secretary shall conduct oil and gas lease sales under the 
Outer Continental Shelf lands Act (43 U.S.C. 1331 et 
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seq.) for areas that are made available for leasing by this 
section. 
SEC. 103. COASTAL STATE ROLES AND RESPONSIBILITIES. 
(a) STATE APPROVAL OF CERTAIN LEASING RE-
QUIRED.—The Secretary may not conduct any oil and gas 
leasing or preleasing activity in any area made available 
for oil and gas leasing by section 102(a) that is located 
within 100 miles from the coastline and within the sea-
ward lateral boundaries of an adjacent State, unless the 
adjacent State has enacted a law approving of the issuance 
of such leasing by the Secretary. 
(b) CONSULTATION WITH ADJACENT AND NEIGH-
BORING STATES.— 
(1) IN GENERAL.—In addition to the consulta-
tion provided for under section 19 of the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1345), the Gov-
ernor of a State that has a coastline within 100 
miles of an area of the Outer Continental Shelf 
being considered for oil and gas leasing and made 
available for such leasing by section 102(a) may sub-
mit recommendations to the Secretary with respect 
to— 
(A) the size, timing, or location of a pro-
posed lease sale; or 
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(B) a proposed development and produc-
tion plan. 
(2) REQUIREMENTS.—Subsections (b), (c), and 
(d) of section 19 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1345) shall apply to the rec-
ommendations provided for in paragraph (1). 
SEC. 104. PROTECTION OF THE ENVIRONMENT AND CON-
SERVATION OF THE NATURAL RESOURCES 
OF THE OUTER CONTINENTAL SHELF. 
The Secretary— 
(1) shall ensure that any activity under this 
subtitle is carried out in a manner that provides for 
the protection of the coastal environment, marine 
environment, and human environment of State 
coastal zones and the Outer Continental Shelf; and 
(2) shall review all Federal regulations that are 
otherwise applicable to activities authorized by this 
subtitle to ensure environmentally sound oil and gas 
operations on the Outer Continental Shelf. 
SEC. 105. LIMITATIONS. 
(a) COMPLIANCE WITH MEMORANDUM.—Any oil and 
gas leasing of areas of the Outer Continental Shelf shall 
be conducted in accordance with the document entitled 
‘‘Memorandum of Agreement between the Department of 
Defense and the Department of the Interior on Mutual 
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Concerns On The Outer Continental Shelf’’ and dated 
July 2, 1983, and such revisions thereto as may be agreed 
to by the Secretary of Defense and the Secretary of the 
Interior; except that no such revisions may be made prior 
to January 21, 2009. 
(b) NATIONAL
SECURITY.—Notwithstanding sub-
section (a), the United States reserves the right to des-
ignate by and through the Secretary of Defense, with the 
approval of the President, national defense areas on the 
Outer Continental Shelf pursuant to section 12(d) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1341(d)). 
SEC. 106. PROHIBITION ON LEASING IN CERTAIN FEDERAL 
PROTECTED AREAS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of this or any other Federal law, no lease or other 
authorization may be issued by the Federal Government 
that authorizes exploration, development, or production of 
oil or natural gas in— 
(1) any marine national monument or national 
marine sanctuary; or 
(2) the fishing grounds known as Georges Bank 
in the waters of the United States, which is one of 
the largest and historically important fishing 
grounds of the United States. 
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(b) IDENTIFICATION OF COORDINATES OF GEORGES 
BANK.—The Secretary of Commerce, after publication of 
public notice and an opportunity for public comment, shall 
identify the specific coordinates that delineate Georges 
Bank in the waters of the United States for purposes of 
subsection (a). 
SEC. 107. NO EFFECT ON APPLICABLE LAW. 
Except as otherwise specifically provided in this sub-
title, nothing in this subtitle waives or modifies any appli-
cable environmental or other law. 
SEC. 108. BUY AMERICAN REQUIREMENTS. 
(a) IN GENERAL.—It is the intent of Congress that 
this Act, among other things, result in a healthy and grow-
ing American industrial, manufacturing, transportation, 
and service sector employing the vast talents of America’s 
workforce to assist in the development of energy from do-
mestic sources. Moreover, the Congress intends to monitor 
the deployment of personnel and material onshore and off-
shore to encourage the development of American tech-
nology and manufacturing to enable United States work-
ers to benefit from this Act by good jobs and careers, as 
well as the establishment of important industrial facilities 
to support expanded access to American resources. 
(b) SAFEGUARD FOR EXTRAORDINARY ABILITY.— 
Section 30(a) of the Outer Continental Shelf Lands Act 
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(43 U.S.C. 1356(a)) is amended in the matter preceding 
paragraph (1) by striking ‘‘regulations which’’ and insert-
ing ‘‘regulations that shall be supplemental and com-
plimentary with and under no circumstances a substi-
tution for the provisions of the Constitution and laws of 
the United States extended to the subsoil and seabed of 
the outer Continental Shelf pursuant to section 4 of this 
Act, except insofar as such laws would otherwise apply to 
individuals who have extraordinary ability in the sciences, 
arts, education, or business, which has been demonstrated 
by sustained national or international acclaim, and that’’. 
SEC. 109. SMALL, WOMAN-OWNED, AND MINORITY-OWNED 
BUSINESSES. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is amended by adding at the end the 
following: 
‘‘(q) OPPORTUNITIES FOR LEASING.—The Secretary 
shall establish goals to ensure equal opportunity to bid on 
offshore leases for qualified small, women-owned, and mi-
nority-owned exploration and production companies and 
may implement, where appropriate, outreach programs for 
qualified historically underutilized exploration and produc-
tion companies to participate in the bidding process for 
offshore leases.’’. 
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SEC. 110. DEFINITIONS. 
In this subtitle: 
(1) ADJACENT
STATE.—The term ‘‘adjacent 
State’’ means, with respect to any program, plan, 
lease sale, leased tract, or other activity, proposed, 
conducted, or approved in accordance with the Outer 
Continental Shelf Lands Act (43U.S.C. 1331 et 
seq.), the State, the laws of which are declared pur-
suant to section 4(a)(2) of the Outer Continental 
Shelf Lands Act (43 U.S.C.1333(a)(2)) to be the 
law of the United States for the portion of the Outer 
Continental Shelf on which the program, plan, lease 
sale, leased tract, or activity is, or is proposed to be, 
conducted. 
(2) 
COASTAL
ENVIRONMENT.—The 
term 
‘‘coastal environment’’ has the meaning given that 
term in the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.). 
(3) COASTAL ZONE.—The term ‘‘coastal zone’’ 
has the meaning given that term in the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1331 et seq.). 
(4) COASTLINE.—The term ‘‘coastline’’ has the 
meaning given the term ‘‘coast line’’ under section 
2 of the Submerged Lands Act (43 U.S.C. 1301). 
(5) HUMAN ENVIRONMENT.—The term ‘‘human 
environment’’ has the meaning given that term in 
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the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.). 
(6) MARINE
ENVIRONMENT.—The term ‘‘ma-
rine environment’’ has the meaning given that term 
in the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.). 
(7) OUTER CONTINENTAL SHELF.—The term 
‘‘Outer Continental Shelf’’ has the meaning given 
the term ‘‘outer Continental Shelf’’ under section 2 
of the Outer Continental Shelf Lands Act (43 
U.S.C. 1331). 
(8) SEAWARD LATERAL BOUNDARY.—The term 
‘‘seaward lateral boundary’’ means a boundary 
drawn by the Minerals Management Service in the 
Federal Register notice of January 3, 2006 (vol 71, 
no. 1). 
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
Subtitle B—Diligent Development 
of Federal Oil and Gas Leases 
SEC. 121. CLARIFICATION. 
The lands subject to each lease that authorizes the 
exploration for or development or production of oil or nat-
ural gas that is issued under a provision of law described 
in section 122 shall be diligently developed for such pro-
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duction by the person holding the lease in order to ensure 
timely production from the lease. 
SEC. 122. COVERED PROVISIONS. 
The provisions referred to in section 121 are the fol-
lowing: 
(1) Section 17 of the Mineral Leasing Act (30 
U.S.C. 226). 
(2) Section 107 of the Naval Petroleum Re-
serves Production Act of 1976 (42 U.S.C. 6506a). 
(3) The Outer Continental Shelf Lands Act (43 
11 U.S.C. 1331 et seq.). 
(4) The Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 351 et seq.). 
SEC. 123. REGULATIONS. 
The Secretary shall issue regulations within 180 days 
after the date of enactment of this Act that establish what 
constitutes diligently developing for purposes of this sub-
title. 
SEC. 124. RESOURCE ESTIMATES AND LEASING PROGRAM 
MANAGEMENT INDICATORS. 
(a) IN GENERAL.—The Secretary of the Interior shall 
annually collect and report to Congress— 
(1) the number of leases and the number of 
acres of land under Federal onshore oil and gas 
lease, per State and per year the lease was issued— 
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(A) on which seismic exploration activity is 
occurring or has occurred; 
(B) on which permits to drill have been ap-
plied for, but not yet awarded; 
(C) on which permits to drill have been ap-
proved, but no drilling has yet occurred; 
(D) on which wells have been drilled but 
no production has occurred; and 
(E) on which production is occurring; 
(2) resource estimates for and the number of 
acres of Federal onshore and offshore lands, by 
State or offshore planning area— 
(A) under lease, per year the lease was 
issued; 
(B) under lease and not producing, per 
year the lease was issued; 
(C) under lease and drilled, but not pro-
ducing, per year the lease was issued; 
(D) offered for lease in a lease sale con-
ducted during the previous year, but not leased; 
and 
(E) available for leasing but not under 
lease or offered for leasing in the previous year; 
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(3) resource estimates for and the number of 
acres of unleased Federal onshore and offshore land 
available for oil and gas leasing; 
(4) resource estimates for and the number of 
acres of areas of the Outer Continental Shelf— 
(A) included in proposed sale areas in the 
most recent 5-year plan developed by the Sec-
retary pursuant to section 18 of the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1344); and 
(B) available for oil and gas leasing but 
not included in the 5-year plan; 
(5) the number of leases and the number of 
acres of Federal onshore land, per Bureau of Land 
Management field office, offered in a lease sale con-
ducted during the previous year, including data on 
the number of protests filed and how many lease 
tracts were withdrawn as a result of such protests, 
and how many leases were offered and issued with 
stipulations as a result of those protests, including 
the name of the entity or entities filing the protests; 
(6) the number of applications for permits to 
drill received, approved, pending, and denied, in the 
previous year per Bureau of Land Management and 
Minerals Management Service field office; 
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(7) the number of environmental inspections 
conducted per State and per Bureau of Land Man-
agement and Minerals Management Service field of-
fice in the previous year; and 
(8) the number of full time staff equivalent 
(FTEs) devoted to permit processing and oversight 
per Bureau of Land Management and Minerals 
Management Service field office. 
(b) COVERED PROVISIONS.—Subsection (a) shall 
apply with respect to leases and land eligible for leasing 
pursuant to— 
(1) section 17 of the Mineral Leasing Act (30 
U.S.C. 226); 
(2) the Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 351 et seq.); 
(3) section 107 of the Naval Petroleum Re-
serves Production Act of 1976 (42 U.S.C. 6506a); 
or 
(4) the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.). 
Subtitle C—Royalties Under 
Offshore Oil and Gas Leases 
SEC. 131. SHORT TITLE. 
This subtitle may be cited as the ‘‘Royalty Relief for 
American Consumers Act of 2008’’. 
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SEC. 132. PRICE THRESHOLDS FOR ROYALTY SUSPENSION 
PROVISIONS. 
The Secretary of the Interior shall agree to a request 
by any lessee to amend any oil and gas lease issued for 
any Gulf of Mexico tract during the period of January 
1, 1998, through December 31, 1999, to incorporate price 
thresholds applicable to royalty suspension provisions, that 
are equal to or less than the price thresholds described 
in clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer 
Continental 
Shelf 
Lands 
Act 
(43 
U.S.C. 
1337(a)(3)(C)). Any amended lease shall impose the new 
or revised price thresholds effective October 1, 2006. Ex-
isting lease provisions shall prevail through September 30, 
2006. 
SEC. 133. CLARIFICATION OF AUTHORITY TO IMPOSE 
PRICE THRESHOLDS FOR CERTAIN LEASE 
SALES. 
Congress reaffirms the authority of the Secretary of 
the Interior under section 8(a)(1)(H) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)) to 
vary, based on the price of production from a lease, the 
suspension of royalties under any lease subject to section 
304 of the Outer Continental Shelf Deep Water Royalty 
Relief Act (Public Law 104–58; 43 U.S.C. 1337 note). 
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SEC. 134. ELIGIBILITY FOR NEW LEASES AND THE TRANS-
FER OF LEASES; CONSERVATION OF RE-
SOURCES FEES. 
(a) ISSUANCE OF NEW LEASES.— 
(1) IN
GENERAL.—The Secretary shall not 
issue any new lease that authorizes the production 
of oil or natural gas in the Gulf of Mexico under the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 
et seq.) to a person described in paragraph (2) un-
less— 
(A) the person has renegotiated each cov-
ered lease with respect to which the person is 
a lessee, to modify the payment responsibilities 
of the person to include price thresholds that 
are equal to or less than the price thresholds 
described in clauses (v) through (vii) of section 
8(a)(3)(C) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(3)(C)); or 
(B) the person has— 
(i) paid all fees established by the 
Secretary under subsection (b) that are 
due with respect to each covered lease for 
which the person is a lessee; or 
(ii) entered into an agreement with 
the Secretary under which the person is 
obligated to pay such fees. 
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(2) PERSONS DESCRIBED.—A person referred 
to in paragraph (1) is a person that— 
(A) is a lessee that— 
(i) holds a covered lease on the date 
on which the Secretary considers the 
issuance of the new lease; or 
(ii) was issued a covered lease before 
the date of enactment of this Act, but 
transferred the covered lease to another 
person or entity (including a subsidiary or 
affiliate of the lessee) after the date of en-
actment of this Act; or 
(B) any other person or entity who has 
any direct or indirect interest in, or who derives 
any benefit from, a covered lease; 
(3) MULTIPLE LESSEES.— 
(A) IN GENERAL.—For purposes of para-
graph (1), if there are multiple lessees that own 
a share of a covered lease, the Secretary may 
implement separate agreements with any lessee 
with a share of the covered lease that modifies 
the payment responsibilities with respect to the 
share of the lessee to include price thresholds 
that are equal to or less than the price thresh-
olds described in clauses (v) through (vii) of 
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section 8(a)(3)(C) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). 
(B) TREATMENT OF SHARE AS COVERED 
LEASE.—Beginning on the effective date of an 
agreement under subparagraph (A), any share 
subject to the agreement shall not constitute a 
covered lease with respect to any lessees that 
entered into the agreement. 
(b) CONSERVATION OF RESOURCES FEES.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of 
the Interior by regulation shall establish— 
(A) a conservation of resources fee for pro-
ducing Federal oil and gas leases in the Gulf of 
Mexico; and 
(B) a conservation of resources fee for 
nonproducing Federal oil and gas leases in the 
Gulf of Mexico. 
(2) PRODUCING LEASE FEE TERMS.—The fee 
under paragraph (1)(A)— 
(A) subject to subparagraph (C), shall 
apply to covered leases that are producing 
leases; 
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