308 
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 
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.— 
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309 
(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; 
(B) shall be set at $9 per barrel for oil and 
$1.25 per million Btu for gas, respectively, in 
2005 dollars; and 
(C) shall apply only to production of oil or 
gas occurring— 
(i) in any calendar year in which the 
arithmetic average of the daily closing 
prices for light sweet crude oil on the New 
York Mercantile Exchange (NYMEX) ex-
ceeds $34.73 per barrel for oil and $4.34 
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310 
per million Btu for gas in 2005 dollars; 
and 
(ii) on or after October 1, 2006. 
(3) NONPRODUCING LEASE FEE TERMS.—The 
fee under paragraph (1)(B)— 
(A) subject to subparagraph (C), shall 
apply to leases that are nonproducing leases; 
(B) shall be set at $3.75 per acre per year 
in 2005 dollars; and 
(C) shall apply on and after October 1, 
2006. 
(4) TREATMENT OF RECEIPTS.—Amounts re-
ceived by the United States as fees under this sub-
section shall be treated as offsetting receipts. 
(c) TRANSFERS.—A lessee or any other person who 
has any direct or indirect interest in, or who derives a 
benefit from, a lease shall not be eligible to obtain by sale 
or other transfer (including through a swap, spinoff, serv-
icing, or other agreement) any covered lease, the economic 
benefit of any covered lease, or any other lease for 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.), unless— 
(1) the lessee or other person has— 
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311 
(A) renegotiated all covered leases of the 
lessee or other person; and 
(B) entered into an agreement with the 
Secretary to modify the terms of all covered 
leases of the lessee or other person to include 
limitations on royalty relief based on market 
prices 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 
(2) the lessee or other person has— 
(A) paid all fees established by the Sec-
retary under subsection (b) that are due with 
respect to each covered lease for which the per-
son is a lessee; or 
(B) entered into an agreement with the 
Secretary under which the person is obligated 
to pay such fees. 
(d) DEFINITIONS.—In this section— 
(1) COVERED
LEASE.—The term ‘‘covered 
lease’’ means a lease for oil or gas production in the 
Gulf of Mexico that is— 
(A) in existence on the date of enactment 
of this Act; 
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312 
(B) issued by the Department of the Inte-
rior under section 304 of the Outer Continental 
Shelf Deep Water Royalty Relief Act (43 
U.S.C. 1337 note; Public Law 104–58); and 
(C) not subject to limitations on royalty re-
lief based on market price 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)). 
(2) LESSEE.—The term ‘‘lessee’’ includes any 
person or other entity that controls, is controlled by, 
or is in or under common control with, a lessee. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
SEC. 815. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED 
ROYALTY RELIEF FOR THE OIL AND GAS IN-
DUSTRY. 
(a) REPEAL OF PROVISIONS OF ENERGY POLICY ACT 
OF 2005.—The following provisions of the Energy Policy 
Act of 2005 (Public Law 109–58) are repealed: 
(1) Section 344 (42 U.S.C. 15904; relating to 
incentives for natural gas production from deep wells 
in shallow waters of the Gulf of Mexico). 
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(2) Section 345 (42 U.S.C. 15905; relating to 
royalty relief for deep water production in the Gulf 
of Mexico). 
(3) Subsection (i) of section 365 (42 U.S.C. 
15924; relating to the prohibition on drilling-related 
permit application cost recovery fees). 
(b) PROVISIONS RELATING
TO PLANNING AREAS 
OFFSHORE ALASKA.—Section 8(a)(3)(B) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) 
is amended by striking ‘‘and in the Planning Areas off-
shore Alaska’’ after ‘‘West longitude’’. 
(c) PROVISIONS RELATING TO NAVAL PETROLEUM 
RESERVE IN ALASKA.—Section 107 of the Naval Petro-
leum Reserves Production Act of 1976 (as transferred, re-
designated, moved, and amended by section 347 of the En-
ergy Policy Act of 2005 (119 Stat. 704)) is amended— 
(1) in subsection (i) by striking paragraphs (2) 
through (6); and 
(2) by striking subsection (k). 
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314 
Subtitle C—Strategic Energy 
Efficiency and Renewable Reserve 
SEC. 821. STRATEGIC ENERGY EFFICIENCY AND RENEW-
ABLES RESERVE FOR INVESTMENTS IN RE-
NEWABLE 
ENERGY 
AND 
ENERGY 
EFFI-
CIENCY. 
(a) IN GENERAL.—For budgetary purposes, the addi-
tional Federal receipts by reason of the enactment of this 
Act shall be held in a separate account to be known as 
the ‘‘Strategic Energy Efficiency and Renewables Re-
serve’’. The Strategic Energy Efficiency and Renewables 
Reserve shall be available to offset the cost of subsequent 
legislation— 
(1) to accelerate the use of clean domestic re-
newable energy resources and alternative fuels; 
(2) to promote the utilization of energy-efficient 
products and practices and conservation; and 
(3) to increase research, development, and de-
ployment of clean renewable energy and efficiency 
technologies. 
(b) PROCEDURE FOR ADJUSTMENTS.— 
(1) BUDGET COMMITTEE CHAIRMAN.—After the 
reporting of a bill or joint resolution, or the offering 
of an amendment thereto or the submission of a con-
ference report thereon, providing funding for the 
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315 
purposes set forth in subsection (a) in excess of the 
amounts provided for those purposes for fiscal year 
2007, the chairman of the Committee on the Budget 
of the applicable House of Congress shall make the 
adjustments set forth in paragraph (2) for the 
amount of new budget authority and outlays in that 
measure and the outlays flowing from that budget 
authority. 
(2) MATTERS TO BE ADJUSTED.—The adjust-
ments referred to in paragraph (1) are to be made 
to— 
(A) the discretionary spending limits, if 
any, set forth in the appropriate concurrent res-
olution on the budget; 
(B) the allocations made pursuant to the 
appropriate concurrent resolution on the budget 
pursuant to section 302(a) of the Congressional 
Budget Act of 1974; and 
(C) the budget aggregates contained in the 
appropriate concurrent resolution on the budget 
as required by section 301(a) of the Congres-
sional Budget Act of 1974. 
(3) AMOUNTS OF ADJUSTMENTS.—The adjust-
ments referred to in paragraphs (1) and (2) shall 
not exceed the receipts estimated by the Congres-
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316 
sional Budget Office that are attributable to this Act 
for the fiscal year in which the adjustments are 
made. 
Æ 
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