I 
110TH CONGRESS 
2D SESSION 
H. R. 6670 
To open areas of the Outer Continental Shelf to oil and gas leasing, to 
direct the Commodity Futures Trading Commission to utilize its author-
ity to curb immediately the role of excessive speculation in energy mar-
kets, to require sales of light grade petroleum from the Strategic Petro-
leum Reserve and acquisitions of equivalent volumes of heavy grade 
petroleum, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 30, 2008 
Mr. GENE GREEN of Texas (for himself, Mr. CUELLAR, Mr. DAVIS of Ala-
bama, Mr. ORTIZ, Mr. LAMPSON, Mr. BOREN, Mr. COSTA, Mr. 
RODRIGUEZ, Mr. CRAMER, Mr. GONZALEZ, Mr. CAZAYOUX, Mr. FOSTER, 
Mr. ABERCROMBIE, Mr. HINOJOSA, Mr. MELANCON, and Mr. CHILDERS) 
introduced the following bill; which was referred to the Committee on 
Natural Resources, and in addition to the Committees on Energy and 
Commerce, Science and Technology, Transportation and Infrastructure, 
Education and Labor, and Agriculture, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To open areas of the Outer Continental Shelf to oil and 
gas leasing, to direct the Commodity Futures Trading 
Commission to utilize its authority to curb immediately 
the role of excessive speculation in energy markets, to 
require sales of light grade petroleum from the Strategic 
Petroleum Reserve and acquisitions of equivalent volumes 
of heavy grade petroleum, and for other purposes. 
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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 ‘‘Long-Term Energy 
Assurance and Security Enhancement Act of 2008’’ or the 
‘‘LEASE Act of 2008’’. 
TITLE I—OUTER CONTINENTAL 
SHELF OIL AND GAS LEASING 
Subtitle A—Offshore Oil and Gas 
Leasing in Gulf of Mexico 
SEC. 101. OFFSHORE OIL AND GAS LEASING IN CERTAIN 
AREAS OF THE GULF OF MEXICO. 
(a) OPENING OF CERTAIN AREAS IN EASTERN GULF 
OF MEXICO TO OIL AND GAS LEASING.— 
(1) IN GENERAL.—Section 104(a) of the Gulf 
of Mexico Energy Security Act of 2006 (43 U.S.C. 
1331 note; Public Law 109–432) is amended— 
(A) by striking paragraph (1); 
(B) in paragraph (2), by striking ‘‘125 
miles’’ and inserting ‘‘100 miles’’; and 
(C) by redesignating paragraphs (2) and 
(3) as paragraphs (1) and (2), respectively. 
(2) TERMINATION OF RESTRICTION ON USE OF 
FUNDS.—Section 104 of division F of the Consoli-
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dated Appropriations Act, 2008 (Public Law 110– 
161; 121 Stat. 2118) is amended— 
(A) by inserting ‘‘and’’ after ‘‘North Atlan-
tic;’’; and 
(B) by striking ‘‘; and the eastern’’ and all 
that follows and inserting a period. 
(3) 
REQUIREMENT
TO
CONDUCT
LEASE 
SALES.—As soon as practicable, but not later than 
1 year after the date of the enactment of this Act, 
and annually thereafter, the Secretary of the Inte-
rior shall conduct oil and gas lease sales under the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 
et seq.) for areas of the Outer Continental Shelf in 
the Eastern Gulf of Mexico areas that are available 
for leasing as a result of the amendments made by 
paragraph (1). 
(4) OMISSION FROM LEASING PROGRAM.—Areas 
shall be offered for lease under this subsection not-
withstanding the omission of the area from any 
outer Continental Shelf leasing program under sec-
tion 18 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1344). 
(b) LIMITATIONS.— 
(1) COMPLIANCE WITH MEMORANDUM.—Any oil 
and gas leasing of areas of the Outer Continental 
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Shelf in the Eastern Gulf of Mexico that are avail-
able for leasing as a result of the amendments made 
by subsection (a) shall be conducted in accordance 
with the document entitled ‘‘Memorandum of Agree-
ment between the Department of Defense and the 
Department of the Interior on Mutual 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. 
(2) MILITARY MISSION LINE.—Notwithstanding 
subsection (a), the United States reserves the right 
to designate by and through the Secretary of De-
fense, with the approval of the President, national 
defense areas on the Outer Continental Shelf pursu-
ant to section 12(d) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1341(d)). 
SEC. 102. DISPOSITION OF QUALIFIED OUTER CONTI-
NENTAL SHELF REVENUES. 
(a) IN GENERAL.—Notwithstanding section 9 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1338) and 
subject to the other provisions of this section, for each ap-
plicable fiscal year, the Secretary of the Treasury shall 
deposit— 
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(1) 25 percent of qualified Outer Continental 
Shelf revenues in the general fund of the Treasury; 
(2) 25 percent of qualified Outer Continental 
Shelf revenues in the Energy Independence and Se-
curity Fund established by section 131; and 
(3) 50 percent of qualified Outer Continental 
Shelf revenues in a special account in the Treasury, 
from which the Secretary shall disburse— 
(A) 75 percent to Gulf producing States in 
accordance with subsection (b); and 
(B) 25 percent to provide financial assist-
ance to States in accordance with section 6 of 
the Land and Water Conservation Fund Act of 
1965 (16 U.S.C. 460l–8), which shall be consid-
ered income to the Land and Water Conserva-
tion Fund for purposes of section 2 of that Act 
(16 U.S.C. 460l–5). 
(b) ALLOCATION AMONG GULF PRODUCING STATES 
AND COASTAL POLITICAL SUBDIVISIONS.— 
(1) ALLOCATION
AMONG
GULF
PRODUCING 
STATES.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), effective for each fiscal year after 
fiscal year 2007, the amount made available 
under subsection (a)(2)(A) shall be allocated to 
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31(b)(4) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1356a(b)(4)). 
(c) TIMING.—The amounts required to be deposited 
under paragraph (2) of subsection (a) for the applicable 
fiscal year shall be made available in accordance with that 
paragraph during the fiscal year immediately following the 
applicable fiscal year. 
(d) AUTHORIZED USES.— 
(1) IN GENERAL.—Subject to paragraph (2), 
each Gulf producing State and coastal political sub-
division shall use all amounts received under sub-
section (b) in accordance with all applicable Federal 
and State laws, only for 1 or more of the following 
purposes: 
(A) Projects and activities for the purposes 
of coastal protection, including conservation, 
coastal restoration, hurricane protection, and 
infrastructure directly affected by coastal wet-
land losses. 
(B) Mitigation of damage to fish, wildlife, 
or natural resources. 
(C) Implementation of a federally approved 
marine, coastal, or comprehensive conservation 
management plan. 
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(D) Mitigation of the impact of Outer Con-
tinental Shelf activities through the funding of 
onshore infrastructure projects. 
(E) Planning assistance and the adminis-
trative costs of complying with this section. 
(2) LIMITATION.—Not more than 3 percent of 
amounts received by a Gulf producing State or 
coastal political subdivision under subsection (b) 
may be used for the purposes described in paragraph 
(1)(E). 
(e) ADMINISTRATION.—Amounts made available 
under subsection (a)(2) shall— 
(1) be made available, without further appro-
priation, in accordance with this section; 
(2) remain available until expended; and 
(3) be in addition to any amounts appropriated 
under— 
(A) the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.); 
(B) the Land and Water Conservation 
Fund Act of 1965 (16 U.S.C. 460l–4 et seq.); 
or 
(C) any other provision of law. 
(f) LIMITATIONS
ON AMOUNT
OF DISTRIBUTED 
QUALIFIED OUTER CONTINENTAL SHELF REVENUES.— 
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(1) IN GENERAL.—Subject to paragraph (2), 
the total amount of qualified Outer Continental 
Shelf revenues made available under subsection 
(a)(2) shall not exceed $500,000,000 for each of fis-
cal years 2016 through 2055. 
(2) PRO RATA REDUCTIONS.—If paragraph (1) 
limits the amount of qualified Outer Continental 
Shelf revenue that would be paid under subpara-
graphs (A) and (B) of subsection (a)(2)— 
(A) the Secretary shall reduce the amount 
of qualified Outer Continental Shelf revenue 
provided to each recipient on a pro rata basis; 
and 
(B) any remainder of the qualified Outer 
Continental Shelf revenues shall revert to the 
general fund of the Treasury. 
SEC. 103. DEFINITIONS. 
In this subtitle: 
(1) COASTAL
POLITICAL
SUBDIVISION.—The 
term ‘‘coastal political subdivision’’ means a political 
subdivision of a Gulf producing State any part of 
which political subdivision is— 
(A) within the coastal zone (as defined in 
section 304 of the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1453)) of the Gulf pro-
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ducing State as of the date of enactment of this 
Act; and 
(B) not more than 200 nautical miles from 
the geographic center of any leased tract. 
(2) GULF PRODUCING STATE.—The term ‘‘Gulf 
producing State’’ means each of the States of Ala-
bama, Florida, Louisiana, Mississippi, and Texas. 
(3) MILITARY MISSION LINE.—The term ‘‘Mili-
tary Mission Line’’ means the north-south line at 
86°41′31′′ W. longitude. 
(4) 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). 
(5) QUALIFIED
OUTER
CONTINENTAL
SHELF 
REVENUES.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘qualified Outer 
Continental Shelf revenues’’ means all rentals, 
royalties, bonus bids, and other sums due and 
payable to the United States under oil and 
gases leases of the Outer Continental Shelf 
issued as a result of enactment of this subtitle. 
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(B) EXCLUSIONS.—The term ‘‘qualified 
Outer Continental Shelf revenues’’ does not in-
clude— 
(i) revenues from the forfeiture of a 
bond or other surety securing obligations 
other than royalties, civil penalties, or roy-
alties taken by the Secretary in-kind and 
not sold; or 
(ii) revenues generated from leases 
subject to section 8(g) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 
1337(g)). 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
SEC. 104. PROTECTION OF THE ENVIRONMENT AND CON-
SERVATION OF THE NATURAL RESOURCES 
OF THE OUTER CONTINENTAL SHELF. 
The Secretary of the Interior shall ensure that any 
activity under this subtitle is carried out in a manner that 
provides for the protection of the environment and the 
conservation of the natural resources of the Outer Conti-
nental Shelf, and shall review all otherwise applicable reg-
ulations to ensure environmentally sound oil and gas oper-
ations on the Outer Continental Shelf. 
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Subtitle B—Offshore Oil and Gas 
Leasing Outside Gulf of Mexico 
SEC. 121. ESTABLISHMENT OF PROJECTED SEAWARD LAT-
ERAL STATE BOUNDARY LINES ON THE OCS. 
Not later than one year after the date of the enact-
ment of this Act, the Secretary of the Interior shall by 
regulation delineate the lateral boundaries between coastal 
states in areas of the Outer Continental Shelf that are 
outside the Gulf of Mexico and that are under exclusive 
Federal jurisdiction for purposes of leasing of areas for 
exploration, development, and production of oil and nat-
ural gas. 
SEC. 122. ASSESSMENTS OF OIL AND GAS RESOURCES OF 
THE OCS. 
(a) IN GENERAL.—On or after the effective date of 
regulations issued by the Secretary of the Interior under 
section 121, the Governor of a coastal State may, if au-
thorized by a law of the State enacted after the date of 
enactment of this Act, submit to the Secretary of the Inte-
rior a request that the Secretary conduct an assessment 
of the oil and gas resources of any areas of the Outer Con-
tinental Shelf located— 
(1) outside the Gulf of Mexico; 
(2) within the seaward lateral boundaries of the 
State; and 
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tive upon the date the request is approved (or 
deemed approved) in accordance with that sub-
section. 
(b) OPTION TO REQUEST LEASING.— 
(1) IN
GENERAL.—On or after the effective 
date of regulations issued by the Secretary of the In-
terior under section 121, the Governor of a coastal 
State may, if authorized by a law of the coastal 
State enacted after the date of the enactment of this 
Act, submit to the Secretary of the Interior a re-
quest that the Secretary conduct oil and gas leasing 
of any area of the Outer Continental Shelf under the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 
et seq.) that is located— 
(A) outside the Gulf of Mexico; 
(B) within the seaward lateral boundaries 
of the State; and 
(C) between 25 miles and 100 miles from 
the coastline. 
(2) ACTION
BY
SECRETARY.—Not later than 
the end of the 2-year period beginning on the date 
of receipt of a request under paragraph (1), the Sec-
retary shall— 
(A) approve the request; or 
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(B) disapprove the request if the Secretary 
determines that leasing would create unreason-
able risk of harm to the marine, human, or 
coastal environment of the State. 
(3) FAILURE TO ACT.—If Secretary fails to ap-
prove or disapprove a request under paragraph (1) 
within the period described in paragraph (2), the 
Secretary is deemed to have approved the request. 
(c) INITIATION OF LEASING.—The Secretary shall 
conduct leasing of each area of the Outer Continental 
Shelf that is available for leasing as a result of the enact-
ment of subsection (a) by as soon as possible after the 
date the area is available. 
(d) OMISSION FROM LEASING PROGRAM.—Areas 
shall be offered for lease under this section notwith-
standing the omission of the areas from any outer Conti-
nental Shelf leasing program under section 18 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1344) 
SEC. 124. DISPOSITION OF QUALIFIED OUTER CONTI-
NENTAL SHELF REVENUES. 
(a) IN GENERAL.—Notwithstanding section 9 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1338) and 
subject to the other provisions of this section, for each ap-
plicable fiscal year, the Secretary of the Treasury shall 
deposit— 
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(1) 25 percent of qualified Outer Continental 
Shelf revenues in the general fund of the Treasury; 
(2) 25 percent of qualified Outer Continental 
Shelf revenues in the Energy Independence and Se-
curity Fund established by section 131; and 
(3) 50 percent of qualified Outer Continental 
Shelf revenues in a special account in the Treasury 
from which the Secretary shall disburse— 
(A) 75 percent to States in accordance 
with subsection (b); and 
(B) 25 percent to provide financial assist-
ance to States in accordance with section 6 of 
the Land and Water Conservation Fund Act of 
1965 (16 U.S.C. 460l–8), which shall be consid-
ered income to the Land and Water Conserva-
tion Fund for purposes of section 2 of that Act 
(16 U.S.C. 460l–5). 
(b) ALLOCATION AMONG STATES AND COASTAL PO-
LITICAL SUBDIVISIONS.— 
(1) ALLOCATION AMONG PRODUCING STATES.— 
(A) REVENUES ATTRIBUTABLE TO LEASE 
TRACTS LOCATED WITHIN 100 MILES OF THE 
COASTLINE.—Subject to subparagraph (C), ef-
fective for each fiscal year after fiscal year 
2007, the amount made available under sub-
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section (a)(3)(A) that is attributable to leased 
tracts located within 100 miles of the coastline 
shall be allocated to producing States in 
amounts (determined under a formula estab-
lished by the Secretary by regulation) that are 
inversely proportional to the respective dis-
tances between the point on the coastline of 
each producing State that is closest to the geo-
graphic center of the applicable leased tract and 
the geographic center of the leased tract. 
(B) REVENUES ATTRIBUTABLE TO LEASE 
TRACTS LOCATED MORE THAN 100 MILES FROM 
THE
COASTLINE.—Subject to subparagraph 
(C), effective for each fiscal year after fiscal 
year 2007, the amount made available under 
subsection (a)(3)(A) that is attributable to a 
leased tract located more than 100 miles from 
the coastline shall be allocated to States having 
a point on the coastline that is within 200 miles 
of the geographic center of the leased tract, in 
amounts (determined under a formula estab-
lished by the Secretary by regulation) that are 
inversely proportional to the respective dis-
tances between the point on the coastline of 
each State that is closest to the geographic cen-
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ter of the applicable leased tract and the geo-
graphic center of the leased tract. 
(C) MINIMUM ALLOCATION.—The amount 
allocated to a State each fiscal year under each 
of subparagraphs (A) and (B) shall be at least 
5 percent of the amounts allocated under that 
subparagraph for that fiscal year. 
(2) PAYMENTS
TO
COASTAL
POLITICAL
SUB-
DIVISIONS.— 
(A) IN GENERAL.—The Secretary shall pay 
20 percent of the allocable share of each State, 
as determined under paragraph (1), to the 
coastal political subdivisions of the State. 
(B) ALLOCATION.—The amount paid by 
the Secretary to coastal political subdivisions 
under this paragraph shall be allocated to each 
coastal political subdivision in accordance with 
subparagraphs (B), (C), and (E) of section 
31(b)(4) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1356a(b)(4)). 
(c) TIMING.—The amounts required to be deposited 
under paragraph (2) of subsection (a) for the applicable 
fiscal year shall be made available in accordance with that 
paragraph during the fiscal year immediately following the 
applicable fiscal year. 
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(d) AUTHORIZED USES.— 
(1) IN GENERAL.—Subject to paragraph (2), 
each State and coastal political subdivision shall use 
all amounts received under subsection (b) in accord-
ance with all applicable Federal and State laws, only 
for 1 or more of the following purposes: 
(A) Projects and activities for the purposes 
of coastal protection, including conservation, 
coastal restoration, hurricane protection, and 
infrastructure directly affected by coastal wet-
land losses. 
(B) Mitigation of damage to fish, wildlife, 
or natural resources. 
(C) Implementation of a federally approved 
marine, coastal, or comprehensive conservation 
management plan. 
(D) Mitigation of the impact of Outer Con-
tinental Shelf activities through the funding of 
onshore infrastructure projects. 
(E) Planning assistance and the adminis-
trative costs of complying with this section. 
(2) LIMITATION.—Not more than 3 percent of 
amounts received by a State or coastal political sub-
division under subsection (b) may be used for the 
purposes described in paragraph (1)(E). 
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(e) ADMINISTRATION.—Amounts made available 
under subsection (a)(2) shall— 
(1) be made available, without further appro-
priation, in accordance with this section; 
(2) remain available until expended; and 
(3) be in addition to any amounts appropriated 
under— 
(A) the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.); 
(B) the Land and Water Conservation 
Fund Act of 1965 (16 U.S.C. 460l–4 et seq.); 
or 
(C) any other provision of law. 
SEC. 125. PROTECTION OF THE ENVIRONMENT AND CON-
SERVATION OF THE NATURAL RESOURCES 
OF THE OUTER CONTINENTAL SHELF. 
The Secretary of the Interior shall ensure that any 
activity under this subtitle is carried out in a manner that 
provides for the protection of the environment and the 
conservation of the natural resources of the Outer Conti-
nental Shelf, and shall review all otherwise applicable reg-
ulations to ensure environmentally sound oil and gas oper-
ations on the Outer Continental Shelf. 
SEC. 126. DEFINITIONS. 
In this subtitle: 
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(1) COASTAL
POLITICAL
SUBDIVISION.—The 
term ‘‘coastal political subdivision’’ means a political 
subdivision of a State any part of which political 
subdivision is— 
(A) within the coastal zone (as defined in 
section 304 of the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1453)) of the State as 
of the date of enactment of this Act; and 
(B) not more than 200 nautical miles from 
the geographic center of any leased tract. 
(2) OUTER CONTINENTAL SHELF.—The term 
‘‘Outer Continental Shelf’’ has the meaning the term 
‘‘outer Continental Shelf’’ under section 2 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1331). 
(3) PRODUCING STATE.—The term ‘‘producing 
State’’— 
(A) means any State within the lateral 
boundaries of which (as determined under sec-
tion 121) there is any tract that is subject to 
a Federal oil and gas lease issued as a result 
of enactment of this subtitle; and 
(B) does not include the States of Ala-
bama, Louisiana, Mississippi, and Texas. 
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(4) QUALIFIED
OUTER
CONTINENTAL
SHELF 
REVENUES.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘qualified Outer 
Continental Shelf revenues’’ means all rentals, 
royalties, bonus bids, and other sums due and 
payable to the United States under oil and 
gases leases of the Outer Continental Shelf 
issued as a result of enactment of this subtitle. 
(B) EXCLUSIONS.—The term ‘‘qualified 
Outer Continental Shelf revenues’’ does not in-
clude— 
(i) revenues from the forfeiture of a 
bond or other surety securing obligations 
other than royalties, civil penalties, or roy-
alties taken by the Secretary in-kind and 
not sold; or 
(ii) revenues generated from leases 
subject to section 8(g) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 
1337(g)). 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
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Subtitle C—Energy Independence 
and Security Fund 
SEC. 131. ENERGY INDEPENDENCE AND SECURITY FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury a separate account which shall be known as the 
Energy Independence and Security Fund. 
(b) CONTENTS.—The account shall consist of such 
amounts as are deposited into it under this title. 
(c) DISTRIBUTION OF FUNDS.—There shall be trans-
ferred from the Fund each fiscal year and available for 
expenditure, without further appropriation and without 
fiscal year limitation, all of the amounts deposited into the 
Fund in that fiscal year, in equal amounts, as follows: 
(1) ASSESSMENT
OF
OIL
AND
GAS
RE-
SOURCES.—An amount to the Secretary of the Inte-
rior for assessments of oil and gas resources under 
section 122. 
(2) WIND ENERGY RESEARCH AND DEVELOP-
MENT.—An amount to the account ‘‘Energy Effi-
ciency and Renewable Energy’’, to remain available 
until expended, for necessary expenses for a program 
to support the development of next-generation wind 
turbines, including turbines capable of operating in 
areas with low wind speeds, as authorized in section 
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931(a)(2)(B) of the Energy Policy Act of 2005 (42 
U.S.C. 16231(a)(2)(B)). 
(3) SOLAR ENERGY RESEARCH AND DEVELOP-
MENT.—An amount to the account ‘‘Energy Effi-
ciency and Renewable Energy’’, to remain available 
until expended, for necessary expenses for a program 
to accelerate the research, development, demonstra-
tion, and deployment of solar energy technologies, 
and public education and outreach materials pursu-
ant to such program, as authorized by section 
931(a)(2)(A) of the Energy Policy Act of 2005 (42 
U.S.C. 16231(a)(2)(A)). 
(4) 
LOW
INCOME
WEATHERIZATION.—An 
amount to the account ‘‘Weatherization Assistance 
Program’’, to remain available until expended, for 
necessary expenses for a program to weatherize low 
income housing, as authorized by section 411 of the 
Energy Independence and Security Act of 2007 
(Public Law 110–140). 
(5) MARINE AND HYDROKINETIC RENEWABLE 
ELECTRIC
ENERGY.—An amount to the account 
‘‘Energy Efficiency and Renewable Energy’’, to re-
main available until expended, for necessary ex-
penses for a program to accelerate the research, de-
velopment, demonstration, and deployment of ocean 
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and wave energy, including hydrokinetic renewable 
energy, as authorized by section 931 of the Energy 
Policy Act of 2005 (42 U.S.C. 16231) and section 
636 of the Energy Independence and Security Act of 
2007 (42 U.S.C. 17215). 
(6) ADVANCED RESEARCH PROJECTS AGENCY— 
ENERGY.—An amount to the account ‘‘Energy 
Transformation Acceleration Fund’’, established 
under section 5012(m) of the America COMPETES 
Act (42 U.S.C. 16538(m), to remain available until 
expended. 
(7) ADVANCED VEHICLES RESEARCH, DEVELOP-
MENT, AND DEMONSTRATION.—An amount to the 
account ‘‘Energy Efficiency and Renewable Energy’’, 
to remain available until expended, for necessary ex-
penses for research, development, and demonstration 
on advanced, cost-effective technologies to improve 
the energy efficiency and environmental performance 
of vehicles, as authorized in section 911(a)(2)(A) of 
the Energy Policy Act of 2005 (42 U.S.C. 
16191(a)(2)(A)). 
(8) GEOTHERMAL ENERGY DEVELOPMENT.—An 
amount to the account ‘‘Energy Efficiency and Re-
newable Energy’’, to remain available until ex-
pended, for necessary expenses for geothermal re-
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search and development activities to be managed by 
the National Renewable Energy Laboratory, as au-
thorized by sections 613, 614, 615, and 616 of the 
Energy Independence and Security Act of 2007 (42 
U.S.C. 17192–95) and section 931(a)(2)(C) of the 
Energy 
Policy 
Act 
of 
2005 
(42 
U.S.C. 
16231(a)(2)(C)). 
(9) CARBON
CAPTURE
AND
STORAGE.—An 
amount to the account ‘‘Fossil Energy Research and 
Development’’, to remain available until expended, 
for necessary expenses for a program of demonstra-
tion projects of carbon capture and storage, and for 
a research program to address public health, safety, 
and environmental impacts, as authorized by section 
963 of the Energy Policy Act of 2005 (42 U.S.C. 
16293) and sections 703 and 707 of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 
17251, 17255). 
(10) NONCONVENTIONAL
DOMESTIC
NATURAL 
GAS
PRODUCTION
AND
ENVIRONMENTAL
RE-
SEARCH.— 
(A) An amount to the account authorized 
by section 999H(e) of the Energy Policy Act of 
2005 (42 U.S.C. 16378(e)), to remain available 
until expended. 
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(B) An amount to the account ‘‘Fossil En-
ergy Research and Development’’, to remain 
available until expended, for necessary expenses 
for a program of basin-oriented assessments 
and public and private partnerships involving 
States and industry to foster the development 
of regional advanced technological, regulatory, 
and economic development strategies for the ef-
ficient and environmentally sustainable recovery 
and market delivery of natural gas and
do-
mestic petroleum resources within the United 
States, and for support for the Stripper Well 
Consortium. 
(11) HYDROGEN
RESEARCH
AND
DEVELOP-
MENT.—An amount to the account ‘‘Energy Effi-
ciency and Renewable Energy’’, to remain available 
until expended, for necessary expenses for the De-
partment of Energy’s H-Prize Program, as author-
ized by section 1008(f) of the Energy Policy Act of 
2005 (42 U.S.C. 16396(f)). 
(12) ENERGY STORAGE FOR TRANSPORTATION 
AND ELECTRIC POWER.— 
(A) An amount to the account ‘‘Basic En-
ergy Sciences’’, to remain available until ex-
pended, for necessary expenses for a program 
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to accelerate basic research on energy storage 
systems to support electric drive vehicles, sta-
tionary applications, and electricity trans-
mission and distribution, as authorized by sec-
tion 641(p)(1) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17231(p)(1)). 
(B) An amount to the account ‘‘Energy 
Efficiency and Renewable Energy’’, to remain 
available until expended, including— 
(i) for a program to accelerate applied 
research on energy storage systems to sup-
port electric drive vehicles, stationary ap-
plications, and electricity transmission and 
distribution 
as 
authorized 
by 
section 
641(p)(2) of the Energy Independence and 
Security 
Act 
of 
2007 
(42 
U.S.C. 
17231(p)(2)); 
(ii) for energy storage systems dem-
onstrations 
as 
authorized 
by 
section 
641(p)(4) of the Energy Independence and 
Security 
Act 
of 
2007 
(42 
U.S.C. 
17231(p)(4)); and 
(iii) for vehicle energy storage systems 
demonstrations as authorized by section 
641(p)(5) of the Energy Independence and 
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Security 
Act 
of 
2007 
(42 
U.S.C. 
17231(p)(5)). 
(13) LOW INCOME HOME ENERGY ASSISTANCE 
PROGRAMS.—An amount to the Secretary of Health 
and Human Services for allotment under section 
2604(a) through (d) of the Low-Income Home En-
ergy Assistance Act of 1981 (42 U.S.C. 8623(a)– 
(d)). 
(14) INDUSTRIAL
ENERGY
EFFICIENCY
RE-
SEARCH AND DEVELOPMENT.—An amount to the ac-
count ‘‘Energy Efficiency and Renewable Energy’’, 
to remain available until expended, for necessary ex-
penses for a program to accelerate the research, de-
velopment, demonstration, and deployment of new 
technologies to improve the energy efficiency and re-
duce greenhouse gas emissions from industrial proc-
esses, as authorized in section 911(a)(2)(C) of the 
Energy 
Policy 
Act 
of 
2005 
(42 
U.S.C. 
16191(a)(2)(C)) and in section 452 of the Energy 
Independence and Security Act of 2007 (Public Law 
110–40). 
(15) BUILDING ENERGY EFFICIENCY RESEARCH 
AND
DEVELOPMENT.—An amount to the account 
‘‘Energy Efficiency and Renewable Energy’’, to re-
main available until expended, for necessary ex-
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penses for a program to accelerate the research, de-
velopment, demonstration, and deployment of new 
technologies to improve the energy efficiency and re-
duce greenhouse gas emissions from buildings, as 
authorized in section 422 of the Energy Independ-
ence and Security Act of 2007 (Public Law 110– 
140). 
(16) PUBLIC
TRANSPORTATION
URBANIZED 
AREA FORMULA GRANTS.—An amount to the Sec-
retary of Transportation, to remain available until 
expended, for necessary expenses for a program to 
promote public transportation in urbanized areas, as 
authorized by section 5307 of such title, which shall 
be apportioned in accordance with section 5336 
(other than subsections (i)(1) and (j)) of such title. 
(17) 
PUBLIC
TRANSPORTATION
FORMULA 
GRANTS FOR OTHER THAN URBANIZED AREAS.—An 
amount to the Secretary of Transportation, to re-
main available until expended, for necessary ex-
penses for a program to promote public transpor-
tation in areas other than urbanized areas, as au-
thorized by section 5311 of such title, which shall be 
apportioned in accordance with such section 5311. 
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TITLE 
II—CURBING 
SPECULA-
TION IN ENERGY MARKETS 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Energy Markets 
Emergency Act of 2008’’. 
SEC. 202. ENERGY MARKETS. 
(a) FINDINGS.—The Congress finds as follows: 
(1) The Commodity Futures Trading Commis-
sion was created as an independent agency, in 1974, 
with the mandate to enforce and administer the 
Commodity Exchange Act, to ensure market integ-
rity, to protect market users from fraud and abusive 
trading practices, and to prevent and prosecute ma-
nipulation of the price of any commodity in inter-
state commerce. 
(2) Congress has given the Commodity Futures 
Trading Commission authority under the Commodity 
Exchange Act to take necessary actions to address 
market emergencies. 
(3) The Commodity Futures Trading Commis-
sion may use its emergency authority with respect to 
any major market disturbance which prevents the 
market from accurately reflecting the forces of sup-
ply and demand for a commodity. 
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(4) Congress has declared, in section 4a of the 
Commodity Exchange Act, that excessive speculation 
imposes an undue and unnecessary burden on inter-
state commerce. 
(5) On June 6, 2008, the price of crude oil 
traded on the New York Mercantile Exchange hit an 
all-time record of $139.12 per barrel. 
(6) The average price of a barrel of crude oil 
in 2007 was $72, and the average price of a barrel 
of crude oil to date in 2008 is $109. 
(7) Heating oil futures contracts have risen in 
price from $2.97 to $3.81 during the March through 
May contract months. 
(8) United States airlines are forecast to spend 
$61,200,000,000 on jet fuel in 2008, which is 
$20,000,000,000 more than they spent for jet fuel 
in 2007. 
(9) According to the American Automobile As-
sociation— 
(A) families and businesses are paying an 
average of $4.07 per gallon for regular gasoline, 
which is near the all-time high and is more 
than double the price in 2001; and 
(B) truckers and farmers are paying an 
average of $4.77 per gallon for diesel fuel, 
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which is near the all-time high and triple the 
price in 2001. 
(10) During this decade, energy demand has 
been steadily on the rise in nations such as China 
and other Asian exporting nations. 
(11) In a May 2008 report, the International 
Monetary Fund raised the possibility that specula-
tion has played a significant role in the run-up of oil 
prices, and stated ‘‘It is hard to explain current oil 
prices in terms of fundamentals alone. The recent 
surge in the oil price seems to go well beyond what 
would be indicated by the growth of the world econ-
omy.’’. 
(b) DIRECTION FROM CONGRESS.—The Commodity 
Futures Trading Commission shall utilize all its authority, 
including its emergency powers, to— 
(1) curb immediately the role of excessive spec-
ulation in any contract market within the jurisdic-
tion and control of the Commodity Futures Trading 
Commission, on or through which energy futures or 
swaps are traded; and 
(2) eliminate excessive speculation, price distor-
tion, sudden or unreasonable fluctuations or unwar-
ranted changes in prices, or other unlawful activity 
that is causing major market disturbances that pre-
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vent the market from accurately reflecting the forces 
of supply and demand for energy commodities. 
TITLE III—SALES FROM STRA-
TEGIC PETROLEUM RESERVE 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘Consumer Energy 
Supply Act of 2008’’. 
SEC. 302. DEFINITIONS. 
In this title— 
(1) the term ‘‘light grade petroleum’’ means 
crude oil with an API gravity of 30 degrees or high-
er; 
(2) the term ‘‘heavy grade petroleum’’ means 
crude oil with an API gravity of 26 degrees or lower; 
and 
(3) the term ‘‘Secretary’’ means the Secretary 
of Energy. 
SEC. 303. SALE AND REPLACEMENT OF OIL FROM THE 
STRATEGIC PETROLEUM RESERVE. 
(a) INITIAL
PETROLEUM
SALE
AND
REPLACE-
MENT.—Notwithstanding section 161 of the Energy Policy 
and Conservation Act (42 U.S.C. 6241), the Secretary 
shall publish a plan not later than 15 days after the date 
of enactment of this Act to— 
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(1) sell, in the amounts and on the schedule de-
scribed in subsection (b), light grade petroleum from 
the Strategic Petroleum Reserve and acquire an 
equivalent volume of heavy grade petroleum; 
(2) deposit the cash proceeds from sales under 
paragraph (1) into the SPR Petroleum Account es-
tablished under section 167 of the Energy Policy 
and Conservation Act (42 U.S.C. 6247); and 
(3) from the cash proceeds deposited pursuant 
to paragraph (2), withdraw the amount necessary to 
pay for the direct administrative and operational 
costs of the sale and acquisition. 
(b) AMOUNTS AND SCHEDULE.—The sale and acqui-
sition described in subsection (a) shall require the offer 
for sale of a total quantity of 70,000,000 barrels of light 
grade petroleum from the Strategic Petroleum Reserve. 
The sale shall commence, whether or not a plan has been 
published under subsection (a), not later than 30 days 
after the date of enactment of this Act and be completed 
no more than six months after the date of enactment of 
this Act, with at least 20,000,000 barrels to be offered 
for sale within the first 60 days after the date of enact-
ment of this Act. In no event shall the Secretary sell bar-
rels of oil under subsection (a) that would result in a Stra-
tegic Petroleum Reserve that contains fewer than 90 per-
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cent of the total amount of barrels in the Strategic Petro-
leum Reserve as of the date of enactment of this Act. 
Heavy grade petroleum, to replace the quantities of light 
grade petroleum sold under this section, shall be obtained 
through acquisitions which— 
(1) shall commence no sooner than 6 months 
after the date of enactment of this Act; 
(2) shall be completed, at the discretion of the 
Secretary, not later than 5 years after the date of 
enactment of this Act; 
(3) shall be carried out in a manner so as to 
maximize the monetary value to the Federal Govern-
ment; and 
(4) shall be carried out using the receipts from 
the sales of light grade petroleum authorized under 
this section. 
(c) DEFERRALS.—The Secretary is encouraged to, 
when economically beneficial and practical, grant requests 
to defer scheduled deliveries of petroleum to the Reserve 
under subsection (a) if the deferral will result in a pre-
mium paid in additional barrels of oil which will reduce 
the cost of oil acquisition and increase the volume of oil 
delivered to the Reserve or yield additional cash bonuses. 
Æ 
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