I 
110TH CONGRESS 
2D SESSION 
H. R. 6412 
To promote the energy security of the United States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2008 
Mrs. MUSGRAVE introduced the following bill; which was referred to the Com-
mittee on Natural Resources, and in addition to the Committees on En-
ergy and Commerce, Science and Technology, Oversight and Government 
Reform, Armed Services, Foreign Affairs, Ways and Means, and Agri-
culture, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To promote the energy security of the United States, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Comprehensive Energy Exploration, Price Reduction, 
and Renewable Energy Investment Act of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
Sec. 2. Definition of Secretary. 
TITLE I—TRADITIONAL RESOURCES 
Subtitle A—Outer Continental Shelf 
Sec. 101. Publication of projected State lines on outer Continental Shelf. 
Sec. 102. Production of oil and natural gas in new producing areas. 
Sec. 103. Conforming amendment. 
Subtitle B—Leasing Program for Land Within Coastal Plain 
Sec. 111. Definitions. 
Sec. 112. Leasing program for land within the Coastal Plain. 
Sec. 113. Lease sales. 
Sec. 114. Grant of leases by the Secretary. 
Sec. 115. Lease terms and conditions. 
Sec. 116. Coastal Plain environmental protection. 
Sec. 117. Expedited judicial review. 
Sec. 118. Rights-of-way and easements across Coastal Plain. 
Sec. 119. Conveyance. 
Sec. 120. Local government impact aid and community service assistance. 
Sec. 121. Prohibition on exports. 
Sec. 122. Allocation of revenues. 
Subtitle C—Permitting 
Sec. 131. Refinery permitting process. 
Subtitle D—Strategic Petroleum Reserve 
Sec. 141. Suspension of petroleum acquisition for Strategic Petroleum Reserve. 
Subtitle E—Restoration of State Revenue 
Sec. 151. Restoration of State revenue. 
Subtitle F—Renewable Energy Transition Trust Fund 
Sec. 161. Renewable Energy Transition Trust Fund. 
TITLE II—ALTERNATIVE RESOURCES 
Subtitle A—Renewable Fuel and Advanced Energy Technology 
Sec. 201. Definition of renewable biomass. 
Sec. 202. Advanced battery manufacturing incentive program. 
Sec. 203. Biofuels infrastructure and additives research and development. 
Sec. 204. Study of increased consumption of ethanol-blended gasoline with 
higher levels of ethanol. 
Sec. 205. Study of diesel vehicle attributes. 
Subtitle B—Clean Coal-Derived Fuels for Energy Security 
Sec. 211. Short title. 
Sec. 212. Definitions. 
Sec. 213. Clean coal-derived fuel program. 
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Subtitle C—Oil Shale 
Sec. 221.
Removal of prohibition on final regulations for commercial leasing 
program for oil shale resources on public land. 
Subtitle D—Department of Defense Facilitation of Secure Domestic Fuel 
Development 
Sec. 231. Procurement and acquisition of alternative fuels. 
Sec. 232. Multiyear contract authority for the Department of Defense for the 
procurement of synthetic fuels. 
TITLE III—MISCELLANEOUS 
Sec. 301. Limitation on sales of defense articles and defense services to the 
Kingdom of Saudi Arabia. 
Sec. 302. Extension and modification of renewable energy production tax credit. 
Sec. 303. Extension and modification of solar energy and fuel cell investment 
tax credit. 
Sec. 304. Extension and modification of residential energy efficient property 
credit. 
Sec. 305. Extension and modification of credit for clean renewable energy 
bonds. 
Sec. 306. Extension and modification of credit for energy efficiency improve-
ments to existing homes. 
Sec. 307. Extension and modification of tax credit for energy efficient new 
homes. 
Sec. 308. Extension and modification of energy efficient commercial buildings 
deduction. 
Sec. 309. Modification and extension of energy efficient appliance credit for ap-
pliances produced after 2007. 
Sec. 310. Apollo 21 energy independence program. 
Sec. 311. Study of effects of speculation in the futures markets for natural gas, 
crude oil, and gasoline on cash market and retail prices, and 
choice of trading venue. 
Sec. 312. Requirement that the Commodity Futures Trading Commission issue 
a notice of proposed rulemaking regarding comparability of for-
eign regulation of futures and derivatives trading. 
SEC. 2. DEFINITION OF SECRETARY. 
In this Act, the term ‘‘Secretary’’ means the Sec-
retary of Energy. 
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TITLE I—TRADITIONAL 
RESOURCES 
Subtitle A—Outer Continental 
Shelf 
SEC. 101. PUBLICATION OF PROJECTED STATE LINES ON 
OUTER CONTINENTAL SHELF. 
Section 4(a)(2)(A) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended— 
(1) by designating the first, second, and third 
sentences as clause (i), (iii), and (iv), respectively; 
(2) in clause (i) (as so designated), by inserting 
before the period at the end the following: ‘‘not later 
than 90 days after the date of enactment of the 
Comprehensive Energy Exploration, Price Reduc-
tion, and Renewable Energy Investment Act of 
2008’’; and 
(3) by inserting after clause (i) (as so des-
ignated) the following: 
‘‘(ii)(I) The projected lines shall also be used for the 
purpose of preleasing and leasing activities conducted in 
new producing areas under section 32. 
‘‘(II) This clause shall not affect any property right 
or title to Federal submerged land on the outer Conti-
nental Shelf. 
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‘‘(III) In carrying out this clause, the President shall 
consider the offshore administrative boundaries beyond 
State submerged lands for planning, coordination, and ad-
ministrative purposes of the Department of the Interior, 
but may establish different boundaries.’’. 
SEC. 102. PRODUCTION OF OIL AND NATURAL GAS IN NEW 
PRODUCING AREAS. 
The Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW 
PRODUCING AREAS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COASTAL
POLITICAL
SUBDIVISION.—The 
term ‘coastal political subdivision’ means a political 
subdivision of a new 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 new pro-
ducing State as of the date of enactment of this 
section; and 
‘‘(B) not more than 200 nautical miles 
from the geographic center of any leased tract. 
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‘‘(2) MORATORIUM AREA.—The term ‘morato-
rium area’ means an area covered by sections 104 
through 105 of the Department of the Interior, En-
vironment, and Related Agencies Appropriations 
Act, 2008 (Public Law 110–161; 121 Stat. 2118) 
(as in effect on the day before the date of enactment 
of this section). 
‘‘(3) NEW PRODUCING AREA.—The term ‘new 
producing area’ means any moratorium area within 
the offshore administrative boundaries beyond the 
submerged land of a State that is located greater 
than 50 miles from the coastline of the State. 
‘‘(4) NEW PRODUCING STATE.—The term ‘new 
producing State’ means a State that has, within the 
offshore administrative boundaries beyond the sub-
merged land of the State, a new producing area 
available for oil and gas leasing under subsection 
(b). 
‘‘(5) 
OFFSHORE
ADMINISTRATIVE
BOUND-
ARIES.—The term ‘offshore administrative bound-
aries’ means the administrative boundaries estab-
lished by the Secretary beyond State submerged land 
for planning, coordination, and administrative pur-
poses of the Department of the Interior and pub-
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lished in the Federal Register on January 3, 2006 
(71 Fed. Reg. 127). 
‘‘(6) QUALIFIED OUTER CONTINENTAL SHELF 
REVENUES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
outer Continental Shelf revenues’ means all 
rentals, royalties, bonus bids, and other sums 
due and payable to the United States from 
leases entered into on or after the date of en-
actment of this section for new producing areas. 
‘‘(B) EXCLUSIONS.—The term ‘qualified 
outer Continental Shelf revenues’ does not in-
clude— 
‘‘(i) revenues from a bond or other 
surety forfeited for obligations other than 
the collection of royalties; 
‘‘(ii) revenues from civil penalties; 
‘‘(iii) royalties taken by the Secretary 
in-kind and not sold; 
‘‘(iv) revenues generated from leases 
subject to section 8(g); or 
‘‘(v) any revenues considered qualified 
outer Continental Shelf revenues under 
section 102 of the Gulf of Mexico Energy 
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Security Act of 2006 (43 U.S.C. 1331 
note; Public Law 109–432). 
‘‘(b) PETITION
FOR LEASING NEW PRODUCING 
AREAS.— 
‘‘(1) IN GENERAL.—Beginning on the date on 
which the President delineates projected State lines 
under section 4(a)(2)(A)(ii), the Governor of a State 
with a new producing area within the offshore ad-
ministrative boundaries beyond the submerged land 
of the State may submit to the Secretary a petition 
requesting that the Secretary make the new pro-
ducing area available for oil and gas leasing. 
‘‘(2) ACTION BY SECRETARY.—Notwithstanding 
section 18, as soon as practicable after receipt of a 
petition under paragraph (1), the Secretary shall ap-
prove the petition if the Secretary determines that 
leasing the new producing area would not create an 
unreasonable risk of harm to the marine, human, or 
coastal environment. 
‘‘(c) DISPOSITION
OF QUALIFIED OUTER CONTI-
NENTAL SHELF REVENUES FROM NEW PRODUCING 
AREAS.— 
‘‘(1) IN GENERAL.—Notwithstanding section 9 
and subject to the other provisions of this sub-
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section, for each applicable fiscal year, the Secretary 
of the Treasury shall deposit— 
‘‘(A) 35 percent of qualified outer Conti-
nental Shelf revenues in the general fund of the 
Treasury; 
‘‘(B) 30 percent of qualified outer Conti-
nental Shelf revenues in a special account in 
the Treasury from which the Secretary shall 
disburse— 
‘‘(i) 75 percent to new producing 
States in accordance with paragraph (2); 
and 
‘‘(ii) 25 percent to provide financial 
assistance to States in accordance with 
section 6 of the Land and Water Conserva-
tion Fund Act of 1965 (16 U.S.C. 460l 
–8), which shall be considered income to 
the Land and Water Conservation Fund 
for purposes of section 2 of that Act (16 
U.S.C. 460l–5); and 
‘‘(C) 35 percent of qualified outer Conti-
nental Shelf revenues in the Renewable Energy 
Transition Trust Fund established by section 
161 of the Comprehensive Energy Exploration, 
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Price Reduction, and Renewable Energy Invest-
ment Act of 2008. 
‘‘(2) ALLOCATION TO NEW PRODUCING STATES 
AND COASTAL POLITICAL SUBDIVISIONS.— 
‘‘(A) ALLOCATION
TO
NEW
PRODUCING 
STATES.—Effective for fiscal year 2008 and 
each fiscal year thereafter, the amount made 
available under paragraph (1)(B)(i) shall be al-
located to each new producing State in amounts 
(based on a formula established by the Sec-
retary by regulation) proportional to the 
amount of qualified outer Continental Shelf rev-
enues generated in the new producing area off-
shore each State. 
‘‘(B) PAYMENTS
TO
COASTAL
POLITICAL 
SUBDIVISIONS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall pay 20 percent of the allocable share 
of each new producing State, as deter-
mined under subparagraph (A), to the 
coastal political subdivisions of the new 
producing State. 
‘‘(ii) ALLOCATION.—The amount paid 
by the Secretary to coastal political sub-
divisions shall be allocated to each coastal 
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political subdivision in accordance with 
subparagraphs (B) and (C) of section 
31(b)(4). 
‘‘(3) MINIMUM ALLOCATION.—The amount allo-
cated to a new producing State for each fiscal year 
under paragraph (2) shall be at least 5 percent of 
the amounts available under for the fiscal year 
under paragraph (1)(B)(i). 
‘‘(4) TIMING.—The amounts required to be de-
posited under subparagraph (B) of paragraph (1) 
for the applicable fiscal year shall be made available 
in accordance with that subparagraph during the fis-
cal year immediately following the applicable fiscal 
year. 
‘‘(5) AUTHORIZED USES.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), each new producing State and coast-
al political subdivision shall use all amounts re-
ceived under paragraph (2) in accordance with 
all applicable Federal and State laws, only for 
1 or more of the following purposes: 
‘‘(i) Projects and activities for the 
purposes of coastal protection, including 
conservation, coastal restoration, hurricane 
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protection, and infrastructure directly af-
fected by coastal wetland losses. 
‘‘(ii) Mitigation of damage to fish, 
wildlife, or natural resources. 
‘‘(iii) Implementation of a federally 
approved marine, coastal, or comprehensive 
conservation management plan. 
‘‘(iv) Mitigation of the impact of outer 
Continental Shelf activities through the 
funding of onshore infrastructure projects. 
‘‘(v) Planning assistance and the ad-
ministrative costs of complying with this 
section. 
‘‘(B) LIMITATION.—Not more than 3 per-
cent of amounts received by a new producing 
State or coastal political subdivision under 
paragraph (2) may be used for the purposes de-
scribed in subparagraph (A)(v). 
‘‘(6) ADMINISTRATION.—Amounts made avail-
able under paragraph (1)(B) shall— 
‘‘(A) be made available, without further 
appropriation, in accordance with this sub-
section; 
‘‘(B) remain available until expended; and 
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‘‘(C) be in addition to any amounts appro-
priated under— 
‘‘(i) other provisions of this Act; 
‘‘(ii) the Land and Water Conserva-
tion Fund Act of 1965 (16 U.S.C. 460l– 
4 et seq.); or 
‘‘(iii) any other provision of law. 
‘‘(d) DISPOSITION
OF QUALIFIED OUTER CONTI-
NENTAL SHELF REVENUES FROM OTHER AREAS.—Not-
withstanding section 9, for each applicable fiscal year, the 
terms and conditions of subsection (c) shall apply to the 
disposition of qualified outer Continental Shelf revenues 
that— 
‘‘(1) are derived from oil or gas leasing in an 
area that is not included in the current 5-year plan 
of the Secretary for oil or gas leasing; and 
‘‘(2) are not assumed in the budget of the 
United States Government submitted by the Presi-
dent under section 1105 of title 31, United States 
Code.’’. 
SEC. 103. CONFORMING AMENDMENT. 
Sections 104 through 105 of the Department of the 
Interior, Environment, and Related Agencies Appropria-
tions Act, 2008 (Public Law 110–161; 121 Stat. 2118) 
are repealed. 
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Subtitle B—Leasing Program for 
Land Within Coastal Plain 
SEC. 111. DEFINITIONS. 
In this subtitle: 
(1) COASTAL
PLAIN.—The term ‘‘Coastal 
Plain’’ means that area identified as the ‘‘1002 
Coastal Plain Area’’ on the map. 
(2) FEDERAL AGREEMENT.—The term ‘‘Fed-
eral Agreement’’ means the Federal Agreement and 
Grant Right-of-Way for the Trans-Alaska Pipeline 
issued on January 23, 1974, in accordance with sec-
tion 28 of the Mineral Leasing Act (30 U.S.C. 185) 
and the Trans-Alaska Pipeline Authorization Act 
(43 U.S.C. 1651 et seq.). 
(3) FINAL
STATEMENT.—The term ‘‘Final 
Statement’’ means the final legislative environmental 
impact statement on the Coastal Plain, dated April 
1987, and prepared pursuant to section 1002 of the 
Alaska National Interest Lands Conservation Act 
(16 U.S.C. 3142) and section 102(2)(C) of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)). 
(4) MAP.—The term ‘‘map’’ means the map en-
titled ‘‘Arctic National Wildlife Refuge’’, dated Sep-
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tember 2005, and prepared by the United States Ge-
ological Survey. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior (or the designee of the 
Secretary), acting through the Director of the Bu-
reau of Land Management in consultation with the 
Director of the United States Fish and Wildlife 
Service and in coordination with a State coordinator 
appointed by the Governor of the State of Alaska. 
SEC. 112. LEASING PROGRAM FOR LAND WITHIN THE 
COASTAL PLAIN. 
(a) IN GENERAL.— 
(1) AUTHORIZATION.—Congress authorizes the 
exploration, leasing, development, production, and 
economically feasible and prudent transportation of 
oil and gas in and from the Coastal Plain. 
(2) ACTIONS.—The Secretary shall take such 
actions as are necessary— 
(A) to establish and implement, in accord-
ance with this subtitle, a competitive oil and 
gas leasing program that will result in an envi-
ronmentally sound program for the exploration, 
development, and production of the oil and gas 
resources of the Coastal Plain while taking into 
consideration the interests and concerns of resi-
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dents of the Coastal Plain, which is the home-
land of the Kaktovikmiut Inupiat; and 
(B) to administer this subtitle through reg-
ulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other provisions 
that— 
(i) ensure the oil and gas exploration, 
development, and production activities on 
the Coastal Plain will result in no signifi-
cant adverse effect on fish and wildlife, 
their habitat, subsistence resources, and 
the environment; and 
(ii) require the application of the best 
commercially available technology for oil 
and gas exploration, development, and pro-
duction to all exploration, development, 
and production operations under this sub-
title in a manner that ensures the receipt 
of fair market value by the public for the 
mineral resources to be leased. 
(b) REPEAL.— 
(1) REPEAL.—Section 1003 of the Alaska Na-
tional Interest Lands Conservation Act (16 U.S.C. 
3143) is repealed. 
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(2) CONFORMING AMENDMENT.—The table of 
contents contained in section 1 of that Act (16 
U.S.C. 3101 note) 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.)— 
(A) the oil and gas pre-leasing and leasing 
program, and activities authorized by this sec-
tion in the Coastal Plain, shall be considered to 
be compatible with the purposes for which the 
Arctic National Wildlife Refuge was established; 
and 
(B) no further findings or decisions shall 
be required to implement that program and 
those activities. 
(2) ADEQUACY OF THE DEPARTMENT OF THE 
INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT 
STATEMENT.—The Final Statement shall be consid-
ered to satisfy the requirements under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.) that apply with respect to pre-leasing activi-
ties, including exploration programs and actions au-
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thorized to be taken by the Secretary to develop and 
promulgate the regulations for the establishment of 
a leasing program authorized by this subtitle before 
the conduct of the first lease sale. 
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.— 
(A) IN GENERAL.—Before conducting the 
first lease sale under this subtitle, the Secretary 
shall prepare an environmental impact state-
ment in accordance with the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) with respect to the actions authorized by 
this subtitle that are not referred to in para-
graph (2). 
(B) IDENTIFICATION
AND
ANALYSIS.— 
Notwithstanding any other provision of law, in 
carrying out this paragraph, the Secretary shall 
not be required— 
(i) to identify nonleasing alternative 
courses of action; or 
(ii) to analyze the environmental ef-
fects of those courses of action. 
(C) IDENTIFICATION OF PREFERRED AC-
TION.—Not later than 18 months after the date 
of enactment of this Act, the Secretary shall— 
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(i) identify only a preferred action and 
a single leasing alternative for the first 
lease sale authorized under this subtitle; 
and 
(ii) analyze the environmental effects 
and potential mitigation measures for 
those 2 alternatives. 
(D) PUBLIC COMMENTS.—In carrying out 
this paragraph, the Secretary shall consider 
only public comments that are filed not later 
than 20 days after the date of publication of a 
draft environmental impact statement. 
(E) EFFECT
OF
COMPLIANCE.—Notwith-
standing any other provision of law, compliance 
with this paragraph shall be considered to sat-
isfy all requirements for the analysis and con-
sideration of the environmental effects of pro-
posed leasing under this subtitle. 
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this subtitle expands or limits any State 
or local regulatory authority. 
(e) SPECIAL AREAS.— 
(1) DESIGNATION.— 
(A) IN
GENERAL.—The Secretary, after 
consultation with the State of Alaska, the 
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North Slope Borough, Alaska, and the City of 
Kaktovik, Alaska, may designate not more than 
45,000 acres of the Coastal Plain as a special 
area if the Secretary determines that the special 
area would be of such unique character and in-
terest as to require special management and 
regulatory protection. 
(B) SADLEROCHIT
SPRING
AREA.—The 
Secretary shall designate as a special area in 
accordance 
with 
subparagraph 
(A) 
the 
Sadlerochit Spring area, comprising approxi-
mately 4,000 acres as depicted on the map. 
(2) MANAGEMENT.—The Secretary shall man-
age each special area designated under this sub-
section in a manner that— 
(A) respects and protects the Native people 
of the area; and 
(B) preserves the unique and diverse char-
acter of the area, including fish, wildlife, sub-
sistence resources, and cultural values of the 
area. 
(3) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.— 
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(A) IN GENERAL.—The Secretary may ex-
clude any special area designated under this 
subsection from leasing. 
(B) NO SURFACE OCCUPANCY.—If the Sec-
retary leases all or a portion of a special area 
for the purposes of oil and gas exploration, de-
velopment, production, and related activities, 
there shall be no surface occupancy of the land 
comprising the special area. 
(4) DIRECTIONAL DRILLING.—Notwithstanding 
any other provision 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 Secretary 
may not close land within the Coastal Plain to oil and gas 
leasing or to exploration, development, or production ex-
cept in accordance with this subtitle. 
(g) REGULATIONS.— 
(1) IN GENERAL.—Not later than 15 months 
after the date of enactment of this Act, in consulta-
tion with appropriate agencies of the State of Alas-
ka, the North Slope Borough, Alaska, and the City 
of Kaktovik, Alaska, the Secretary shall issue such 
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regulations as are necessary to carry out this sub-
title, including rules and regulations relating to pro-
tection of the fish and wildlife, fish and wildlife habi-
tat, and subsistence resources of the Coastal Plain. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary may periodically review and, as appropriate, 
revise the rules and regulations issued under para-
graph (1) to reflect any significant scientific or engi-
neering data that come to the attention of the Sec-
retary. 
SEC. 113. LEASE SALES. 
(a) IN GENERAL.—Land may be leased pursuant to 
this subtitle to any person qualified to obtain a lease for 
deposits 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 
in, or exclusion (as provided in subsection (c)) from, 
a lease sale; 
(2) the holding of lease sales after that nomina-
tion process; and 
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(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 subtitle shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—For the 
first lease sale under this subtitle, 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) not later than 22 months after the date of 
enactment of this Act, conduct the first lease sale 
under this subtitle; 
(2) not later than September 30, 2012, conduct 
a second lease sale under this subtitle; and 
(3) conduct additional sales at appropriate in-
tervals if sufficient interest in exploration or devel-
opment exists to warrant the conduct of the addi-
tional sales. 
SEC. 114. GRANT OF LEASES BY THE SECRETARY. 
(a) IN GENERAL.—Upon payment by a lessee of such 
bonus as may be accepted by the Secretary, the Secretary 
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may grant to the highest responsible qualified bidder in 
a lease sale conducted pursuant to section 113 a lease for 
any land on the Coastal Plain. 
(b) SUBSEQUENT TRANSFERS.— 
(1) IN GENERAL.—No lease issued under this 
subtitle may be sold, exchanged, assigned, sublet, or 
otherwise transferred except with the approval of the 
Secretary. 
(2) CONDITION FOR APPROVAL.—Before grant-
ing any approval described in paragraph (1), the 
Secretary shall consult with and give due consider-
ation to the opinion of the Attorney General. 
SEC. 115. LEASE TERMS AND CONDITIONS. 
(a) IN GENERAL.—An oil or gas lease issued pursu-
ant to this subtitle shall— 
(1) provide for the payment of a royalty of not 
less than 161⁄2 percent of the amount or value of the 
production removed or sold from the lease, as deter-
mined by the Secretary in accordance with regula-
tions applicable to other Federal oil and gas leases; 
(2) provide that the Secretary may close, on a 
seasonal basis, such portions of the Coastal Plain to 
exploratory drilling activities as are necessary to 
protect caribou calving areas and other species of 
fish and wildlife; 
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(3) require that each lessee of land within the 
Coastal Plain shall be fully responsible and liable for 
the reclamation of land within the Coastal Plain and 
any other Federal land that is adversely affected in 
connection with exploration, development, produc-
tion, or transportation activities within the Coastal 
Plain conducted by the lessee or by any of the sub-
contractors or agents of the lessee; 
(4) provide that the lessee may not delegate or 
convey, by contract or otherwise, that reclamation 
responsibility and liability to another person without 
the express written approval of the Secretary; 
(5) provide that the standard of reclamation for 
land required to be reclaimed under this subtitle 
shall be, to the maximum extent practicable— 
(A) a condition capable of supporting the 
uses that the land was capable of supporting 
prior to any exploration, development, or pro-
duction activities; or 
(B) upon application by the lessee, to a 
higher or better standard, as approved by the 
Secretary; 
(6) contain terms and conditions relating to 
protection of fish and wildlife, fish and wildlife habi-
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tat, subsistence resources, and the environment as 
required under section 112(a)(2); 
(7) provide that each lessee, and each agent 
and contractor of a lessee, use their best efforts to 
provide a fair share of employment and contracting 
for Alaska Natives and Alaska Native Corporations 
from throughout the State of Alaska, as determined 
by the level of obligation previously agreed to in the 
Federal Agreement; and 
(8) contain such other provisions as the Sec-
retary determines to be necessary to ensure compli-
ance with this subtitle and regulations issued under 
this subtitle. 
(b) PROJECT LABOR AGREEMENTS.—The Secretary, 
as a term and condition of each lease under this subtitle, 
and in recognizing the proprietary interest of the Federal 
Government in labor stability and in the ability of con-
struction labor and management to meet the particular 
needs and conditions of projects to be developed under the 
leases issued pursuant to this subtitle (including the spe-
cial concerns of the parties to those leases), shall require 
that each lessee, and each agent and contractor of a lessee, 
under this subtitle negotiate to obtain a project labor 
agreement for the employment of laborers and mechanics 
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on production, maintenance, and construction under the 
lease. 
SEC. 116. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 
(a) NO SIGNIFICANT ADVERSE EFFECT STANDARD 
TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 
In accordance with section 112, the Secretary shall admin-
ister this subtitle through regulations, lease terms, condi-
tions, restrictions, prohibitions, stipulations, or other pro-
visions that— 
(1) ensure, to the maximum extent practicable, 
that oil and gas exploration, development, and pro-
duction activities on the Coastal Plain will result in 
no significant adverse effect on fish and wildlife, fish 
and wildlife 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 surface acreage 
covered in connection with the leasing program by 
production and support facilities, 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. 
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(b) SITE-SPECIFIC ASSESSMENT AND MITIGATION.— 
The Secretary shall require, with respect to any proposed 
drilling and related activities on the Coastal Plain, that— 
(1) a site-specific environmental analysis be 
made of the probable effects, if any, that the drilling 
or related activities will have on fish and wildlife, 
fish and wildlife habitat, subsistence resources, sub-
sistence uses, and the environment; 
(2) a plan be implemented to avoid, minimize, 
and mitigate (in that order and to the maximum ex-
tent practicable) any significant adverse effect iden-
tified under paragraph (1); and 
(3) the development of the plan occur after con-
sultation with— 
(A) each agency having jurisdiction over 
matters mitigated by the plan; 
(B) the State of Alaska; 
(C) North Slope Borough, Alaska; and 
(D) the City of Kaktovik, Alaska. 
(c) REGULATIONS TO PROTECT COASTAL PLAIN 
FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 
AND THE ENVIRONMENT.—Before implementing the leas-
ing program authorized by this subtitle, the Secretary 
shall prepare and issue regulations, lease terms, condi-
tions, restrictions, prohibitions, stipulations, or other 
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measures designed to ensure, to the maximum extent prac-
ticable, that the activities carried out on the Coastal Plain 
under this subtitle are conducted in a manner consistent 
with the purposes and environmental requirements of this 
subtitle. 
(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 subtitle shall require— 
(1) compliance with all applicable provisions of 
Federal and State environmental law (including reg-
ulations); 
(2) implementation of and compliance with— 
(A) standards that are at least as effective 
as the safety and environmental mitigation 
measures, as described in items 1 through 29 
on pages 167 through 169 of the Final State-
ment, on the Coastal Plain; 
(B) seasonal limitations on exploration, de-
velopment, and related activities, as necessary, 
to avoid significant adverse effects during peri-
ods of concentrated fish and wildlife breeding, 
denning, nesting, spawning, and migration; 
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(C) design safety and construction stand-
ards for all pipelines and any access and service 
roads that minimize, to the maximum extent 
practicable, adverse effects on— 
(i) the passage of migratory species 
(such as caribou); and 
(ii) the flow of surface water by re-
quiring the use of culverts, bridges, or 
other structural devices; 
(D) prohibitions on general public access 
to, and use of, all pipeline access and service 
roads; 
(E) stringent reclamation and rehabilita-
tion requirements in accordance with this sub-
title for the removal from the Coastal Plain of 
all oil and gas development and production fa-
cilities, structures, and equipment on comple-
tion of oil and gas production operations, except 
in a case in which the Secretary determines 
that those facilities, structures, or equipment— 
(i) would assist in the management of 
the Arctic National Wildlife Refuge; and 
(ii) are donated to the United States 
for that purpose; 
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(F) appropriate prohibitions or restrictions 
on— 
(i) access by all modes of transpor-
tation; 
(ii) sand and gravel extraction; and 
(iii) use of explosives; 
(G) reasonable stipulations for protection 
of cultural and archaeological resources; 
(H) measures to protect groundwater and 
surface water, including— 
(i) avoidance, to the maximum extent 
practicable, of springs, streams, and river 
systems; 
(ii) the protection of natural surface 
drainage patterns and wetland and ripar-
ian habitats; and 
(iii) the regulation of methods or tech-
niques for developing or transporting ade-
quate supplies of water for exploratory 
drilling; and 
(I) research, monitoring, and reporting re-
quirements; 
(3) that exploration activities (except surface 
geological studies) be limited to the period between 
approximately November 1 and May 1 of each year 
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and be supported, if necessary, by ice roads, winter 
trails with adequate snow cover, ice pads, ice air-
strips, and air transport methods (except that those 
exploration activities may be permitted at other 
times if the Secretary determines that the explo-
ration will have no significant adverse effect on fish 
and wildlife, fish and wildlife habitat, subsistence re-
sources, and the environment of the Coastal Plain); 
(4) consolidation of facility siting; 
(5) avoidance or reduction of air traffic-related 
disturbance to fish and wildlife; 
(6) treatment and disposal of hazardous and 
toxic wastes, solid wastes, reserve pit fluids, drilling 
muds and cuttings, and domestic wastewater, includ-
ing, in accordance with applicable Federal and State 
environmental laws (including regulations)— 
(A) preparation of an annual waste man-
agement report; 
(B) development and implementation of a 
hazardous materials tracking system; and 
(C) prohibition on the use of chlorinated 
solvents; 
(7) fuel storage and oil spill contingency plan-
ning; 
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(8) conduct of periodic field crew environmental 
briefings; 
(9) avoidance of significant adverse effects on 
subsistence hunting, fishing, and trapping; 
(10) compliance with applicable air and water 
quality standards; 
(11) appropriate seasonal and safety zone des-
ignations around well sites, within which subsistence 
hunting and trapping shall be limited; and 
(12) development and implementation of such 
other protective environmental requirements, restric-
tions, terms, or conditions as the Secretary, after 
consultation with the State of Alaska, North Slope 
Borough, Alaska, and the City of Kaktovik, Alaska, 
determines to be necessary. 
(e) CONSIDERATIONS.—In preparing and issuing reg-
ulations, lease terms, conditions, restrictions, prohibitions, 
or stipulations under this section, the Secretary shall take 
into consideration— 
(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; 
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(2) the environmental protection standards that 
governed the initial Coastal Plain seismic exploration 
program under parts 37.31 through 37.33 of title 
50, Code of Federal Regulations (or successor regu-
lations); and 
(3) the land use stipulations for exploratory 
drilling on the KIC–ASRC private land described in 
Appendix 2 of the agreement between Arctic Slope 
Regional Corporation and the United States dated 
August 9, 1983. 
(f) FACILITY CONSOLIDATION PLANNING.— 
(1) IN GENERAL.—After providing for public 
notice and comment, the Secretary shall prepare and 
periodically update a plan to govern, guide, and di-
rect the siting and construction of facilities for the 
exploration, development, production, and transpor-
tation of oil and gas resources from the Coastal 
Plain. 
(2) OBJECTIVES.—The objectives of the plan 
shall be— 
(A) the avoidance of unnecessary duplica-
tion of facilities and activities; 
(B) the encouragement of consolidation of 
common facilities and activities; 
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(C) the location or confinement of facilities 
and activities to areas that will minimize impact 
on fish and wildlife, fish and wildlife habitat, 
subsistence resources, and the environment; 
(D) the use of existing facilities, to the 
maximum extent practicable; and 
(E) the enhancement of compatibility be-
tween wildlife values and development activities. 
(g) ACCESS
TO
PUBLIC
LAND.—The Secretary 
shall— 
(1) manage public land in the Coastal Plain in 
accordance with subsections (a) and (b) of section 
811 of the Alaska National Interest Lands Con-
servation Act (16 U.S.C. 3121); and 
(2) ensure that local residents shall have rea-
sonable access to public land in the Coastal Plain for 
traditional uses. 
SEC. 117. EXPEDITED JUDICIAL REVIEW. 
(a) FILING OF COMPLAINTS.— 
(1) DEADLINE.—A complaint seeking judicial 
review of a provision of this subtitle or an action of 
the Secretary under this subtitle shall be filed— 
(A) except as provided in subparagraph 
(B), during the 90-day period beginning on the 
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date on which the action being challenged was 
carried out; or 
(B) in the case of a complaint based solely 
on grounds arising after the 90-day period de-
scribed in subparagraph (A), during the 90-day 
period beginning on the date on which the com-
plainant knew or reasonably should have known 
about the grounds for the complaint. 
(2) VENUE.—A complaint seeking judicial re-
view of a provision of this subtitle or an action of 
the Secretary under this subtitle shall be filed in the 
United States Court of Appeals for the District of 
Columbia. 
(3) SCOPE.— 
(A) IN GENERAL.—Judicial review of a de-
cision of the Secretary under this subtitle (in-
cluding an environmental analysis of such a 
lease sale) shall be— 
(i) limited to a review of whether the 
decision is in accordance with this subtitle; 
and 
(ii) based on the administrative record 
of the decision. 
(B) PRESUMPTIONS.—Any identification 
by the Secretary of a preferred course of action 
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relating to a lease sale, and any analysis by the 
Secretary of environmental effects, under this 
subtitle shall be presumed to be correct unless 
proven otherwise by clear and convincing evi-
dence. 
(b) LIMITATION ON OTHER REVIEW.—Any action of 
the Secretary that is subject to judicial review under this 
section shall not be subject to judicial review in any civil 
or criminal proceeding for enforcement. 
SEC. 118. RIGHTS-OF-WAY AND EASEMENTS ACROSS COAST-
AL PLAIN. 
For purposes of section 1102(4)(A) of the Alaska Na-
tional Interest Lands Conservation Act (16 U.S.C. 
3162(4)(A)), any rights-of-way or easements across the 
Coastal Plain for the exploration, development, produc-
tion, or transportation of oil and gas shall be considered 
to be established incident to the management of the Coast-
al Plain under this section. 
SEC. 119. CONVEYANCE. 
Notwithstanding section 1302(h)(2) of the Alaska 
National Interest Lands Conservation Act (16 U.S.C. 
3192(h)(2)), to remove any cloud on title to land, and to 
clarify land ownership patterns in the Coastal Plain, the 
Secretary shall— 
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(1) to the extent necessary to fulfill the entitle-
ment of the Kaktovik Inupiat Corporation under sec-
tions 12 and 14 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1611, 1613), as determined by 
the Secretary, convey to that Corporation the sur-
face estate of the land described in paragraph (1) of 
Public Land Order 6959, in accordance with the 
terms and conditions of the agreement between the 
Secretary, the United States Fish and Wildlife Serv-
ice, the Bureau of Land Management, and the 
Kaktovik Inupiat Corporation, dated January 22, 
1993; and 
(2) convey to the Arctic Slope Regional Cor-
poration the remaining subsurface estate to which 
that Corporation is entitled under the agreement be-
tween that corporation and the United States, dated 
August 9, 1983. 
SEC. 120. LOCAL GOVERNMENT IMPACT AID AND COMMU-
NITY SERVICE ASSISTANCE. 
(a) ESTABLISHMENT OF FUND.— 
(1) IN GENERAL.—As a condition on the receipt 
of funds under section 122(2), the State of Alaska 
shall establish in the treasury of the State, and ad-
minister in accordance with this section, a fund to 
be known as the ‘‘Coastal Plain Local Government 
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Impact Aid Assistance Fund’’ (referred to in this 
section as the ‘‘Fund’’). 
(2) DEPOSITS.—Subject to paragraph (1), the 
Secretary of the Treasury shall deposit into the 
Fund, $35,000,000 each year from the amount 
available under section 122(2)(A). 
(3) INVESTMENT.—The Governor of the State 
of Alaska (referred to in this section as the ‘‘Gov-
ernor’’) shall invest amounts in the Fund in interest- 
bearing securities of the United States or the State 
of Alaska. 
(b) ASSISTANCE.—The Governor, in cooperation with 
the Mayor of the North Slope Borough, shall use amounts 
in the Fund to provide assistance to North Slope Borough, 
Alaska, the City of Kaktovik, Alaska, and any other bor-
ough, municipal subdivision, village, or other community 
in the State of Alaska that is directly impacted by explo-
ration for, or the production of, oil or gas on the Coastal 
Plain under this subtitle, or any Alaska Native Regional 
Corporation acting on behalf of the villages and commu-
nities within its region whose lands lie along the right of 
way of the Trans Alaska Pipeline System, as determined 
by the Governor. 
(c) APPLICATION.— 
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(1) IN GENERAL.—To receive assistance under 
subsection (b), a community or Regional Corporation 
described in that subsection shall submit to the Gov-
ernor, or to the Mayor of the North Slope Borough, 
an application in such time, in such manner, and 
containing such information as the Governor may re-
quire. 
(2) ACTION BY NORTH SLOPE BOROUGH.—The 
Mayor of the North Slope Borough shall submit to 
the Governor each application received under para-
graph (1) as soon as practicable after the date on 
which the application is received. 
(3) ASSISTANCE OF GOVERNOR.—The Governor 
shall assist communities in submitting applications 
under this subsection, to the maximum extent prac-
ticable. 
(d) USE OF FUNDS.—A community or Regional Cor-
poration that receives funds under subsection (b) may use 
the funds— 
(1) to plan for mitigation, implement a mitiga-
tion plan, or maintain a mitigation project to ad-
dress the potential effects of oil and gas exploration 
and development on environmental, social, cultural, 
recreational, and subsistence resources of the com-
munity; 
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(2) to develop, carry out, and maintain— 
(A) a project to provide new or expanded 
public facilities; or 
(B) services to address the needs and prob-
lems associated with the effects described in 
paragraph (1), including firefighting, police, 
water and waste treatment, first responder, and 
other medical services; 
(3) to compensate residents of the Coastal 
Plain for significant damage to environmental, so-
cial, cultural, recreational, or subsistence resources; 
and 
(4) in the City of Kaktovik, Alaska— 
(A) to develop a mechanism for providing 
members of the Kaktovikmiut Inupiat commu-
nity an opportunity to— 
(i) monitor development on the Coast-
al Plain; and 
(ii) provide information and rec-
ommendations to the Governor based on 
traditional aboriginal knowledge of the nat-
ural resources, flora, fauna, and ecological 
processes of the Coastal Plain; and 
(B) to establish a local coordination office, 
to be managed by the Mayor of the North Slope 
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Borough, in coordination with the City of 
Kaktovik, Alaska— 
(i) to coordinate with and advise de-
velopers on local conditions and the history 
of areas affected by development; 
(ii) to provide to the Committee on 
Resources of the House of Representatives 
and the Committee on Energy and Natural 
Resources of the Senate annual reports on 
the status of the coordination between de-
velopers and communities affected by de-
velopment; 
(iii) to collect from residents of the 
Coastal Plain information regarding the 
impacts of development on fish, wildlife, 
habitats, subsistence resources, and the en-
vironment of the Coastal Plain; and 
(iv) to ensure that the information 
collected under clause (iii) is submitted 
to— 
(I) developers; and 
(II) any appropriate Federal 
agency. 
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SEC. 121. PROHIBITION ON EXPORTS. 
An oil or gas lease issued under this subtitle shall 
prohibit the exportation of oil or gas produced under the 
lease. 
SEC. 122. ALLOCATION OF REVENUES. 
Notwithstanding the Mineral Leasing Act (30 U.S.C. 
181 et seq.) or any other provision of law, of the adjusted 
bonus, rental, and royalty receipts from Federal oil and 
gas leasing and operations authorized under this sub-
title— 
(1) 50 percent shall be deposited in the general 
fund of the Treasury; 
(2) 30 percent in the Renewable Energy Tran-
sition Trust Fund established by section 161; and 
(3) of the remaining amounts— 
(A) $35,000,000 shall be deposited by the 
Secretary of the Treasury into the fund created 
under section 120(a)(1); and 
(B) the remainder shall be disbursed to the 
State of Alaska. 
Subtitle C—Permitting 
SEC. 131. REFINERY PERMITTING PROCESS. 
(a) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
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(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
(3) PERMIT.—The term ‘‘permit’’ means any 
permit, license, approval, variance, or other form of 
authorization that a refiner is required to obtain— 
(A) under any Federal law; or 
(B) from a State or Indian tribal govern-
ment agency delegated authority by the Federal 
Government, or authorized under Federal law, 
to issue permits. 
(4) REFINER.—The term ‘‘refiner’’ means a 
person that— 
(A) owns or operates a refinery; or 
(B) seeks to become an owner or operator 
of a refinery. 
(5) REFINERY.— 
(A) IN
GENERAL.—The term ‘‘refinery’’ 
means— 
(i) a facility at which crude oil is re-
fined into transportation fuel or other pe-
troleum products; and 
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(ii) a coal liquification or coal-to-liquid 
facility at which coal is processed into syn-
thetic crude oil or any other fuel. 
(B) INCLUSIONS.—The term ‘‘refinery’’ in-
cludes an expansion of a refinery. 
(6) REFINERY EXPANSION.—The term ‘‘refin-
ery expansion’’ means a physical change in a refin-
ery that results in an increase in the capacity of the 
refinery. 
(7) REFINERY PERMITTING AGREEMENT.—The 
term ‘‘refinery permitting agreement’’ means an 
agreement entered into between the Administrator 
and a State or Indian tribe under subsection (b). 
(8) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce. 
(9) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; 
and 
(D) any other territory or possession of the 
United States. 
(b) STREAMLINING
OF
REFINERY
PERMITTING 
PROCESS.— 
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(1) IN GENERAL.—At the request of the Gov-
ernor of a State or the governing body of an Indian 
tribe, the Administrator shall enter into a refinery 
permitting agreement with the State or Indian tribe 
under which the process for obtaining all permits 
necessary for the construction and operation of a re-
finery shall be streamlined using a systematic inter-
disciplinary multimedia approach as provided in this 
section. 
(2) AUTHORITY OF ADMINISTRATOR.—Under a 
refinery permitting agreement— 
(A) the Administrator shall have authority, 
as applicable and necessary, to— 
(i) accept from a refiner a consoli-
dated application for all permits that the 
refiner is required to obtain to construct 
and operate a refinery; 
(ii) in consultation and cooperation 
with each Federal, State, or Indian tribal 
government agency that is required to 
make any determination to authorize the 
issuance of a permit, establish a schedule 
under which each agency shall— 
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(I) concurrently consider, to the 
maximum extent practicable, each de-
termination to be made; and 
(II) complete each step in the 
permitting process; and 
(iii) issue a consolidated permit that 
combines all permits issued under the 
schedule established under clause (ii); and 
(B) the Administrator shall provide to 
State and Indian tribal government agencies— 
(i) 
financial 
assistance 
in 
such 
amounts as the agencies reasonably require 
to hire such additional personnel as are 
necessary to enable the Government agen-
cies to comply with the applicable schedule 
established under subparagraph (A)(ii); 
and 
(ii) technical, legal, and other assist-
ance in complying with the refinery permit-
ting agreement. 
(3) AGREEMENT BY THE STATE.—Under a re-
finery permitting agreement, a State or governing 
body of an Indian tribe shall agree that— 
(A) the Administrator shall have each of 
the authorities described in paragraph (2); and 
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(B) each State or Indian tribal government 
agency shall— 
(i) in accordance with State law, make 
such structural and operational changes in 
the agencies as are necessary to enable the 
agencies to carry out consolidated project- 
wide permit reviews concurrently and in 
coordination with the Environmental Pro-
tection Agency and other Federal agencies; 
and 
(ii) comply, to the maximum extent 
practicable, with the applicable schedule 
established under paragraph (2)(A)(ii). 
(4) DEADLINES.— 
(A) NEW REFINERIES.—In the case of a 
consolidated permit for the construction of a 
new refinery, the Administrator and the State 
or governing body of an Indian tribe shall ap-
prove or disapprove the consolidated permit not 
later than— 
(i) 360 days after the date of the re-
ceipt of the administratively complete ap-
plication for the consolidated permit; or 
(ii) on agreement of the applicant, the 
Administrator, and the State or governing 
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body of the Indian tribe, 90 days after the 
expiration of the deadline established 
under clause (i). 
(B) EXPANSION
OF
EXISTING
REFIN-
ERIES.—In the case of a consolidated permit 
for the expansion of an existing refinery, the 
Administrator and the State or governing body 
of an Indian tribe shall approve or disapprove 
the consolidated permit not later than— 
(i) 120 days after the date of the re-
ceipt of the administratively complete ap-
plication for the consolidated permit; or 
(ii) on agreement of the applicant, the 
Administrator, and the State or governing 
body of the Indian tribe, 30 days after the 
expiration of the deadline established 
under clause (i). 
(5) FEDERAL AGENCIES.—Each Federal agency 
that is required to make any determination to au-
thorize the issuance of a permit shall comply with 
the applicable schedule established under paragraph 
(2)(A)(ii). 
(6) JUDICIAL REVIEW.—Any civil action for re-
view of any permit determination under a refinery 
permitting agreement shall be brought exclusively in 
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the United States district court for the district in 
which the refinery is located or proposed to be lo-
cated. 
(7) EFFICIENT PERMIT REVIEW.—In order to 
reduce the duplication of procedures, the Adminis-
trator shall use State permitting and monitoring 
procedures to satisfy substantially equivalent Fed-
eral requirements under this title. 
(8) SEVERABILITY.—If 1 or more permits that 
are required for the construction or operation of a 
refinery are not approved on or before any deadline 
established under paragraph (4), the Administrator 
may issue a consolidated permit that combines all 
other permits that the refiner is required to obtain 
other than any permits that are not approved. 
(9) SAVINGS.—Nothing in this subsection af-
fects the operation or implementation of otherwise 
applicable law regarding permits necessary for the 
construction and operation of a refinery. 
(10) CONSULTATION
WITH
LOCAL
GOVERN-
MENTS.—Congress encourages the Administrator, 
States, and tribal governments to consult, to the 
maximum extent practicable, with local governments 
in carrying out this subsection. 
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(11) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as are necessary to carry out this subsection. 
(12) EFFECT ON LOCAL AUTHORITY.—Nothing 
in this subsection affects— 
(A) the authority of a local government 
with respect to the issuance of permits; or 
(B) any requirement or ordinance of a 
local government (such as a zoning regulation). 
(c) FISCHER-TROPSCH FUELS.— 
(1) IN GENERAL.—In cooperation with the Sec-
retary of Energy, the Secretary of Defense, the Ad-
ministrator of the Federal Aviation Administration, 
Secretary of Health and Human Services, and 
Fischer-Tropsch industry representatives, the Ad-
ministrator shall— 
(A) conduct a research and demonstration 
program to evaluate the air quality benefits of 
ultra-clean Fischer-Tropsch transportation fuel, 
including diesel and jet fuel; 
(B) evaluate the use of ultra-clean Fischer- 
Tropsch transportation fuel as a mechanism for 
reducing engine exhaust emissions; and 
(C) submit recommendations to Congress 
on the most effective use and associated bene-
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fits of these ultra-clean fuel for reducing public 
exposure to exhaust emissions. 
(2) GUIDANCE AND TECHNICAL SUPPORT.—The 
Administrator shall, to the extent necessary, issue 
any guidance or technical support documents that 
would facilitate the effective use and associated ben-
efit of Fischer-Tropsch fuel and blends. 
(3) REQUIREMENTS.—The program described 
in paragraph (1) shall consider— 
(A) the use of neat (100 percent) Fischer- 
Tropsch fuel and blends with conventional 
crude oil-derived fuel for heavy-duty and light- 
duty diesel engines and the aviation sector; and 
(B) the production costs associated with 
domestic production of those ultra clean fuel 
and prices for consumers. 
(4) REPORTS.—The Administrator shall submit 
to the Committee on Environment and Public Works 
and the Committee on Energy and Natural Re-
sources of the Senate and the Committee on Energy 
and Commerce of the House of Representatives— 
(A) not later than 1 year, an interim re-
port on actions taken to carry out this sub-
section; and 
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(B) not later than 2 years, a final report 
on actions taken to carry out this subsection. 
Subtitle D—Strategic Petroleum 
Reserve 
SEC. 141. SUSPENSION OF PETROLEUM ACQUISITION FOR 
STRATEGIC PETROLEUM RESERVE. 
(a) IN GENERAL.—Except as provided in subsection 
(b) and notwithstanding any other provision of law, during 
the 180-day period beginning on the date of enactment 
of this Act— 
(1) the Secretary of the Interior shall suspend 
acquisition of petroleum for the Strategic Petroleum 
Reserve through the royalty-in-kind program; and 
(2) the Secretary of Energy shall suspend ac-
quisition of petroleum for the Strategic Petroleum 
Reserve through any other acquisition method. 
(b) RESUMPTION.—Effective beginning on the day 
after the end of the period described in subsection (a)— 
(1) the Secretary of the Interior may resume 
acquisition of petroleum for the Strategic Petroleum 
Reserve through the royalty-in-kind program; and 
(2) the Secretary of Energy may resume acqui-
sition of petroleum for the Strategic Petroleum Re-
serve through any other acquisition method. 
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Subtitle E—Restoration of State 
Revenue 
SEC. 151. RESTORATION OF STATE REVENUE. 
The matter under the heading ‘‘ADMINISTRATIVE 
PROVISIONS’’ under the heading ‘‘MINERALS MANAGE-
MENT SERVICE’’ of title I of the Department of the Inte-
rior, Environment, and Related Agencies Appropriations 
Act, 2008 (Public Law 110–161; 121 Stat. 2109) is 
amended by striking ‘‘Notwithstanding’’ and all that fol-
lows through ‘‘Treasury.’’. 
Subtitle F—Renewable Energy 
Transition Trust Fund 
SEC. 161. RENEWABLE ENERGY TRANSITION TRUST FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury a separate account which shall be known as the 
Renewable Energy Transition Trust Fund (in this section 
referred to as the ‘‘Trust Fund’’). 
(b) CONTENTS.—The Trust Fund shall consist of 
such amounts as are deposited in the Trust Fund under 
any other provisions of law. 
(c) USE.—Amounts in the Trust Fund shall be avail-
able to the Secretary to provide competitive grants for re-
search and development of commercially viable energy pro-
duction from renewable sources, including for wind, solar, 
hydro, geothermal, biomass, tidal, and other advanced re-
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newable energy technologies as determined by the Sec-
retary. 
TITLE II—ALTERNATIVE 
RESOURCES 
Subtitle A—Renewable Fuel and 
Advanced Energy Technology 
SEC. 201. DEFINITION OF RENEWABLE BIOMASS. 
Section 211(o)(1) of the Clean Air Act (42 U.S.C. 
7545(o)(1)) is amended by striking subparagraph (I) and 
inserting the following: 
‘‘(I) RENEWABLE BIOMASS.—The term ‘re-
newable biomass’ means— 
‘‘(i) nonmerchantable materials or 
precommercial thinnings that— 
‘‘(I) are byproducts of preventive 
treatments, such as trees, wood, 
brush, thinnings, chips, and slash, 
that are removed— 
‘‘(aa) to reduce hazardous 
fuels; 
‘‘(bb) to reduce or contain 
disease or insect infestation; or 
‘‘(cc) 
to 
restore 
forest 
health; 
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‘‘(II) would not otherwise be used 
for higher-value products; and 
‘‘(III) are harvested from Na-
tional Forest System land or public 
land (as defined in section 103 of the 
Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1702))— 
‘‘(aa) where permitted by 
law; and 
‘‘(bb) in accordance with ap-
plicable land management plans 
and the requirements for old- 
growth maintenance, restoration, 
and management direction of 
paragraphs (2), (3), and (4) of 
subsection (e) and the require-
ments for large-tree retention of 
subsection (f) of section 102 of 
the Healthy Forests Restoration 
Act of 2003 (16 U.S.C. 6512); or 
‘‘(ii) any organic matter that is avail-
able on a renewable or recurring basis 
from non-Federal land or from land be-
longing to an Indian tribe, or an Indian in-
dividual, that is held in trust by the United 
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States or subject to a restriction against 
alienation imposed by the United States, 
including— 
‘‘(I) renewable plant material, in-
cluding— 
‘‘(aa) feed grains; 
‘‘(bb) 
other 
agricultural 
commodities; 
‘‘(cc) other plants and trees; 
and 
‘‘(dd) algae; and 
‘‘(II) waste material, including— 
‘‘(aa) crop residue; 
‘‘(bb) other vegetative waste 
material (including wood waste 
and wood residues); 
‘‘(cc) animal waste and by-
products (including fats, oils, 
greases, and manure); and 
‘‘(dd) food waste and yard 
waste.’’. 
SEC. 202. ADVANCED BATTERY MANUFACTURING INCEN-
TIVE PROGRAM. 
(a) DEFINITIONS.—In this section: 
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(1) ADVANCED BATTERY.—The term ‘‘advanced 
battery’’ means an electrical storage device suitable 
for vehicle applications. 
(2) ENGINEERING
INTEGRATION
COSTS.—The 
term ‘‘engineering integration costs’’ includes the 
cost of engineering tasks relating to— 
(A) incorporation of qualifying components 
into the design of advanced batteries; and 
(B) design of tooling and equipment and 
developing manufacturing processes and mate-
rial suppliers for production facilities that 
produce qualifying components or advanced bat-
teries. 
(b) ADVANCED BATTERY MANUFACTURING FACIL-
ITY.—The Secretary shall provide facility funding awards 
under this section to advanced battery manufacturers to 
pay not more than 30 percent of the cost of reequipping, 
expanding, or establishing a manufacturing facility in the 
United States to produce advanced batteries. 
(c) PERIOD OF AVAILABILITY.—An award under sub-
section (b) shall apply to— 
(1) facilities and equipment placed in service 
before December 30, 2020; and 
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(2) engineering integration costs incurred dur-
ing the period beginning on the date of enactment 
of this Act and ending on December 30, 2020. 
(d) DIRECT LOAN PROGRAM.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, and subject to the 
availability of appropriated funds, the Secretary 
shall carry out a program to provide a total of not 
more than $25,000,000 in loans to eligible individ-
uals and entities (as determined by the Secretary) 
for the costs of activities described in subsection (b). 
(2) SELECTION OF ELIGIBLE PROJECTS.—The 
Secretary shall select eligible projects to receive 
loans under this subsection in cases in which, as de-
termined by the Secretary, the award recipient— 
(A) is financially viable without the receipt 
of additional Federal funding associated with 
the proposed project; 
(B) will provide sufficient information to 
the Secretary for the Secretary to ensure that 
the qualified investment is expended efficiently 
and effectively; and 
(C) has met such other criteria as may be 
established and published by the Secretary. 
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(3) RATES, 
TERMS, 
AND
REPAYMENT
OF 
LOANS.—A loan provided under this subsection— 
(A) shall have an interest rate that, as of 
the date on which the loan is made, is equal to 
the cost of funds to the Department of the 
Treasury for obligations of comparable matu-
rity; 
(B) shall have a term equal to the lesser 
of— 
(i) the projected life, in years, of the 
eligible project to be carried out using 
funds from the loan, as determined by the 
Secretary; and 
(ii) 25 years; 
(C) may be subject to a deferral in repay-
ment for not more than 5 years after the date 
on which the eligible project carried out using 
funds from the loan first begins operations, as 
determined by the Secretary; and 
(D) shall be made by the Federal Financ-
ing Bank. 
(e) FEES.—The cost of administering a loan made 
under this section shall not exceed $100,000. 
(f) SET ASIDE FOR SMALL MANUFACTURERS.— 
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(1) DEFINITION OF COVERED FIRM.—In this 
subsection, the term ‘‘covered firm’’ means a firm 
that— 
(A) employs fewer than 500 individuals; 
and 
(B) manufactures automobiles or compo-
nents of automobiles. 
(2) SET ASIDE.—Of the amount of funds used 
to provide awards for each fiscal year under sub-
section (b), the Secretary shall use not less than 10 
percent to provide awards to covered firms or con-
sortia led by a covered firm. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section for each of fiscal years 
2009 through 2013. 
SEC. 203. BIOFUELS INFRASTRUCTURE AND ADDITIVES RE-
SEARCH AND DEVELOPMENT. 
(a) IN GENERAL.—The Assistant Administrator of 
the Office of Research and Development of the Environ-
mental Protection Agency (referred to in this section as 
the ‘‘Assistant Administrator’’), in consultation with the 
Secretary and the National Institute of Standards and 
Technology, shall carry out a program of research and de-
velopment of materials to be added to biofuels to make 
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the biofuels more compatible with infrastructure used to 
store and deliver petroleum-based fuels to the point of 
final sale. 
(b) REQUIREMENTS.—In carrying out the program 
described in subsection (a), the Assistant Administrator 
shall address— 
(1) materials to prevent or mitigate— 
(A) corrosion of metal, plastic, rubber, 
cork, fiberglass, glues, or any other material 
used in pipes and storage tanks; 
(B) dissolving of storage tank sediments; 
(C) clogging of filters; 
(D) contamination from water or other 
adulterants or pollutants; 
(E) poor flow properties relating to low 
temperatures; 
(F) oxidative and thermal instability in 
long-term storage and use; and 
(G) microbial contamination; 
(2) problems associated with electrical conduc-
tivity; 
(3) alternatives to conventional methods for re-
furbishment and cleaning of gasoline and diesel 
tanks, including tank lining applications; 
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(4) strategies to minimize emissions from infra-
structure; 
(5) issues with respect to certification by a na-
tionally recognized testing laboratory of components 
for fuel-dispensing devises that specifically reference 
compatibility with alcohol-blended fuels and other 
biofuels that contain greater than 15 percent alco-
hol; 
(6) challenges for design, reforming, storage, 
handling, and dispensing hydrogen fuel from various 
feedstocks, including biomass, from neighborhood 
fueling stations, including codes and standards de-
velopment necessary beyond that carried out under 
section 809 of the Energy Policy Act of 2005 (42 
U.S.C. 16158); 
(7) issues with respect to at which point in the 
fuel supply chain additives optimally should be 
added to fuels; and 
(8) other problems, as identified by the Assist-
ant Administrator, in consultation with the Sec-
retary and the National Institute of Standards and 
Technology. 
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SEC. 204. STUDY OF INCREASED CONSUMPTION OF ETH-
ANOL-BLENDED 
GASOLINE 
WITH 
HIGHER 
LEVELS OF ETHANOL. 
(a) IN GENERAL.—The Secretary, in cooperation 
with the Secretary of Agriculture, the Administrator of the 
Environmental Protection Agency, and the Secretary of 
Transportation, and after providing notice and an oppor-
tunity for public comment, shall conduct a study of the 
feasibility of increasing consumption in the United States 
of ethanol-blended gasoline with levels of ethanol that are 
not less than 10 percent and not more than 40 percent. 
(b) STUDY.—The study under subsection (a) shall in-
clude— 
(1) a review of production and infrastructure 
constraints on increasing consumption of ethanol; 
(2) an evaluation of the economic, market, and 
energy-related impacts of State and regional dif-
ferences in ethanol blends; 
(3) an evaluation of the economic, market, and 
energy-related impacts on gasoline retailers and con-
sumers of separate and distinctly labeled fuel stor-
age facilities and dispensers; 
(4) an evaluation of the environmental impacts 
of mid-level ethanol blends on evaporative and ex-
haust emissions from on-road, off-road, and marine 
engines, recreational boats, vehicles, and equipment; 
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(5) an evaluation of the impacts of mid-level 
ethanol blends on the operation, durability, and per-
formance of on-road, off-road, and marine engines, 
recreational boats, vehicles, and equipment; 
(6) an evaluation of the safety impacts of mid- 
level ethanol blends on consumers that own and op-
erate off-road and marine engines, recreational 
boats, vehicles, or equipment; and 
(7) an evaluation of the impacts of increased 
use of renewable fuels derived from food crops on 
the price and supply of agricultural commodities in 
both domestic and global markets. 
(c) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary shall submit to 
Congress a report describing the results of the study con-
ducted under this section. 
SEC. 205. STUDY OF DIESEL VEHICLE ATTRIBUTES. 
(a) IN GENERAL.—The Secretary, in consultation 
with the Administrator of the Environmental Protection 
Agency and the Secretary of Transportation, shall conduct 
a study to identify— 
(1) the environmental and efficiency attributes 
of diesel-fueled vehicles as the vehicles compare to 
comparable gasoline fueled, E–85 fueled, and hybrid 
vehicles; 
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(2) the technical, economic, regulatory, environ-
mental, and other obstacles to increasing the usage 
of diesel-fueled vehicles; 
(3) the legislative, administrative, and other ac-
tions that could reduce or eliminate the obstacles 
identified under paragraph (2); and 
(4) the costs and benefits associated with re-
ducing or eliminating the obstacles identified under 
paragraph (2). 
(b) REPORT.—Not later than 90 days after the date 
of enactment of this Act, the Secretary shall submit to 
the Committee on Energy and Natural Resources of the 
Senate and the Committee on Energy and Commerce of 
the House of Representatives a report describing the re-
sults of the study conducted under subsection (a). 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
Subtitle B—Clean Coal-Derived 
Fuels for Energy Security 
SEC. 211. SHORT TITLE. 
This subtitle may be cited as the ‘‘Clean Coal-Derived 
Fuels for Energy Security Act of 2008’’. 
SEC. 212. DEFINITIONS. 
In this subtitle: 
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(1) CLEAN COAL-DERIVED FUEL.— 
(A) IN GENERAL.—The term ‘‘clean coal- 
derived fuel’’ means aviation fuel, motor vehicle 
fuel, home heating oil, or boiler fuel that is— 
(i) substantially derived from the coal 
resources of the United States; and 
(ii) refined or otherwise processed at a 
facility located in the United States that 
captures up to 100 percent of the carbon 
dioxide emissions that would otherwise be 
released at the facility. 
(B) INCLUSIONS.—The term ‘‘clean coal- 
derived fuel’’ may include any other resource 
that is extracted, grown, produced, or recovered 
in the United States. 
(2) COVERED FUEL.—The term ‘‘covered fuel’’ 
means— 
(A) aviation fuel; 
(B) motor vehicle fuel; 
(C) home heating oil; and 
(D) boiler fuel. 
(3) SMALL REFINERY.—The term ‘‘small refin-
ery’’ means a refinery for which the average aggre-
gate daily crude oil throughput for a calendar year 
(as determined by dividing the aggregate throughput 
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for the calendar year by the number of days in the 
calendar year) does not exceed 75,000 barrels. 
SEC. 213. CLEAN COAL-DERIVED FUEL PROGRAM. 
(a) PROGRAM.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the President 
shall promulgate regulations to ensure that covered 
fuel sold or introduced into commerce in the United 
States (except in noncontiguous States or terri-
tories), on an annual average basis, contains the ap-
plicable volume of clean coal-derived fuel determined 
in accordance with paragraph (4). 
(2) PROVISIONS OF REGULATIONS.—Regardless 
of the date of promulgation, the regulations promul-
gated under paragraph (1)— 
(A) shall contain compliance provisions ap-
plicable to refineries, blenders, distributors, and 
importers, as appropriate, to ensure that— 
(i) the requirements of this subsection 
are met; and 
(ii) clean coal-derived fuels produced 
from facilities for the purpose of compli-
ance with this subtitle result in life cycle 
greenhouse gas emissions that are not 
greater than gasoline; and 
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(B) shall not— 
(i) restrict geographic areas in the 
contiguous United States in which clean 
coal-derived fuel may be used; or 
(ii) impose any per-gallon obligation 
for the use of clean coal-derived fuel. 
(3) RELATIONSHIP TO OTHER REGULATIONS.— 
Regulations promulgated under this paragraph shall, 
to the maximum extent practicable, incorporate the 
program structure, compliance and reporting re-
quirements established under the final regulations 
promulgated to implement the renewable fuel pro-
gram established by the amendment made by section 
1501(a)(2) of the Energy Policy Act of 2005 (Public 
Law 109–58; 119 Stat. 1067). 
(4) APPLICABLE VOLUME.— 
(A) CALENDAR
YEARS
2015
THROUGH 
2022.—For the purpose of this subsection, the 
applicable volume for any of calendar years 
2015 through 2022 shall be determined in ac-
cordance with the following table: 
Applicable volume of clean 
coal-derived fuel 
Calendar year: 
(in billions of gallons): 
2015 ...................................................................................................
0.75
2016 ...................................................................................................
1.5
2017 ...................................................................................................
2.25
2018 ...................................................................................................
3.00
2019 ...................................................................................................
3.75
2020 ...................................................................................................
4.5
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Applicable volume of clean 
coal-derived fuel 
Calendar year: 
(in billions of gallons): 
2021 ...................................................................................................
5.25
2022 ...................................................................................................
6.0. 
(B) CALENDAR
YEAR
2023
AND
THERE-
AFTER.—Subject to subparagraph (C), for the 
purposes of this subsection, the applicable vol-
ume for calendar year 2023 and each calendar 
year thereafter shall be determined by the 
President, in coordination with the Secretary 
and the Administrator of the Environmental 
Protection Agency, based on a review of the im-
plementation of the program during calendar 
years 2015 through 2022, including a review 
of— 
(i) the impact of clean coal-derived 
fuels on the energy security of the United 
States; 
(ii) the expected annual rate of future 
production of clean coal-derived fuels; and 
(iii) the impact of the use of clean 
coal-derived fuels on other factors, includ-
ing job creation, rural economic develop-
ment, and the environment. 
(C) MINIMUM APPLICABLE VOLUME.—For 
the purpose of this subsection, the applicable 
volume for calendar year 2023 and each cal-
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endar year thereafter shall be equal to the prod-
uct obtained by multiplying— 
(i) the number of gallons of covered 
fuel that the President estimates will be 
sold or introduced into commerce in the 
calendar year; and 
(ii) the ratio that— 
(I) 
6,000,000,000 
gallons 
of 
clean coal-derived fuel; bears to 
(II) the number of gallons of cov-
ered fuel sold or introduced into com-
merce in calendar year 2022. 
(b) APPLICABLE PERCENTAGES.— 
(1) PROVISION OF ESTIMATE OF VOLUMES OF 
CERTAIN FUEL SALES.—Not later than October 31 
of each of calendar years 2015 through 2021, the 
Administrator of the Energy Information Adminis-
tration shall provide to the President an estimate, 
with respect to the following calendar year, of the 
volumes of covered fuel projected to be sold or intro-
duced into commerce in the United States. 
(2) DETERMINATION OF APPLICABLE PERCENT-
AGES.— 
(A) IN GENERAL.—Not later than Novem-
ber 30 of each of calendar years 2015 through 
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2022, based on the estimate provided under 
paragraph (1), the President shall determine 
and publish in the Federal Register, with re-
spect to the following calendar year, the clean 
coal-derived fuel obligation that ensures that 
the requirements of subsection (a) are met. 
(B) REQUIRED
ELEMENTS.—The clean 
coal-derived fuel obligation determined for a 
calendar year under subparagraph (A) shall— 
(i) be applicable to refineries, blend-
ers, and importers, as appropriate; 
(ii) be expressed in terms of a volume 
percentage of covered fuel sold or intro-
duced into commerce in the United States; 
and 
(iii) subject to paragraph (3)(A), con-
sist of a single applicable percentage that 
applies to all categories of persons speci-
fied in clause (i). 
(3) ADJUSTMENTS.—In determining the appli-
cable percentage for a calendar year, the President 
shall make adjustments— 
(A) to prevent the imposition of redundant 
obligations on any person specified in para-
graph (2)(B)(i); and 
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(B) to account for the use of clean coal-de-
rived fuel during the previous calendar year by 
small refineries that are exempt under sub-
section (f). 
(c) VOLUME CONVERSION FACTORS
FOR CLEAN 
COAL-DERIVED FUELS BASED ON ENERGY CONTENT.— 
(1) IN
GENERAL.—For the purpose of sub-
section (a), the President shall assign values to spe-
cific types of clean coal-derived fuel for the purpose 
of satisfying the fuel volume requirements of sub-
section (a)(4) in accordance with this subsection. 
(2) ENERGY
CONTENT
RELATIVE
TO
DIESEL 
FUEL.—For clean coal-derived fuels, 1 gallon of the 
clean coal-derived fuel shall be considered to be the 
equivalent of 1 gallon of diesel fuel multiplied by the 
ratio that— 
(A) the number of British thermal units of 
energy produced by the combustion of 1 gallon 
of the clean coal-derived fuel (as measured 
under conditions determined by the Secretary); 
bears to 
(B) the number of British thermal units of 
energy produced by the combustion of 1 gallon 
of diesel fuel (as measured under conditions de-
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termined by the Secretary to be comparable to 
conditions described in subparagraph (A)). 
(d) CREDIT PROGRAM.— 
(1) IN GENERAL.—The President, in consulta-
tion with the Secretary and the clean coal-derived 
fuel requirement of this section. 
(2) MARKET TRANSPARENCY.—In carrying out 
the credit program under this subsection, the Presi-
dent shall facilitate price transparency in markets 
for the sale and trade of credits, with due regard for 
the public interest, the integrity of those markets, 
fair competition, and the protection of consumers. 
(e) WAIVERS.— 
(1) IN GENERAL.—The President, in consulta-
tion with the Secretary and the Administrator of the 
Environmental Protection Agency, may waive the re-
quirements of subsection (a) in whole or in part on 
petition by 1 or more States by reducing the na-
tional quantity of clean coal-derived fuel required 
under subsection (a), based on a determination by 
the President (after public notice and opportunity 
for comment), that— 
(A) implementation of the requirement 
would severely harm the economy or environ-
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ment of a State, a region, or the United States; 
or 
(B) extreme and unusual circumstances 
exist that prevent distribution of an adequate 
supply of domestically produced clean coal-de-
rived fuel to consumers in the United States. 
(2) PETITIONS FOR WAIVERS.—The President, 
in consultation with the Secretary and the Adminis-
trator of the Environmental Protection Agency, shall 
approve or disapprove a State petition for a waiver 
of the requirements of subsection (a) within 90 days 
after the date on which the petition is received by 
the President. 
(3) TERMINATION
OF
WAIVERS.—A waiver 
granted under paragraph (1) shall terminate after 1 
year, but may be renewed by the President after 
consultation with the Secretary and the Adminis-
trator of the Environmental Protection Agency. 
(f) SMALL REFINERIES.— 
(1) TEMPORARY EXEMPTION.— 
(A) IN
GENERAL.—The requirements of 
subsection (a) shall not apply to small refineries 
until calendar year 2018. 
(B) EXTENSION OF EXEMPTION.— 
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(i) STUDY BY SECRETARY.—Not later 
than December 31, 2013, the Secretary 
shall submit to the President and Congress 
a report describing the results of a study 
to determine whether compliance with the 
requirements of subsection (a) would im-
pose a disproportionate economic hardship 
on small refineries. 
(ii) EXTENSION OF EXEMPTION.—In 
the case of a small refinery that the Sec-
retary determines under clause (i) would 
be subject to a disproportionate economic 
hardship if required to comply with sub-
section (a), the President shall extend the 
exemption under subparagraph (A) for the 
small refinery for a period of not less than 
2 additional years. 
(2) PETITIONS BASED ON DISPROPORTIONATE 
ECONOMIC HARDSHIP.— 
(A) EXTENSION OF EXEMPTION.—A small 
refinery may at any time petition the President 
for an extension of the exemption under para-
graph (1) for the reason of disproportionate 
economic hardship. 
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(B) EVALUATION OF PETITIONS.—In eval-
uating a petition under subparagraph (A), the 
President, in consultation with the Secretary, 
shall consider the findings of the study under 
paragraph (1)(B) and other economic factors. 
(C) DEADLINE
FOR
ACTION
ON
PETI-
TIONS.—The President shall act on any petition 
submitted by a small refinery for a hardship ex-
emption not later than 90 days after the date 
of receipt of the petition. 
(3) OPT-IN FOR SMALL REFINERIES.—A small 
refinery shall be subject to the requirements of sub-
section (a) if the small refinery notifies the Presi-
dent that the small refinery waives the exemption 
under paragraph (1). 
(g) PENALTIES AND ENFORCEMENT.— 
(1) CIVIL PENALTIES.— 
(A) IN GENERAL.—Any person that vio-
lates a regulation promulgated under subsection 
(a), or that fails to furnish any information re-
quired under such a regulation, shall be liable 
to the United States for a civil penalty of not 
more than the total of— 
(i) $25,000 for each day of the viola-
tion; and 
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(ii) the amount of economic benefit or 
savings received by the person resulting 
from the violation, as determined by the 
President. 
(B) COLLECTION.—Civil penalties under 
subparagraph (A) shall be assessed by, and col-
lected in a civil action brought by, the Secretary 
or such other officer of the United States as is 
designated by the President. 
(2) INJUNCTIVE AUTHORITY.— 
(A) IN GENERAL.—The district courts of 
the United States shall have jurisdiction to— 
(i) restrain a violation of a regulation 
promulgated under subsection (a); 
(ii) award other appropriate relief; 
and 
(iii) compel the furnishing of informa-
tion required under the regulation. 
(B) ACTIONS.—An action to restrain such 
violations and compel such actions shall be 
brought by and in the name of the United 
States. 
(C) SUBPOENAS.—In the action, a sub-
poena for a witness who is required to attend 
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a district court in any district may apply in any 
other district. 
(h) EFFECTIVE DATE.—Except as otherwise specifi-
cally provided in this section, this section takes effect on 
January 1, 2016. 
Subtitle C—Oil Shale 
SEC. 221. REMOVAL OF PROHIBITION ON FINAL REGULA-
TIONS FOR COMMERCIAL LEASING PROGRAM 
FOR OIL SHALE RESOURCES ON PUBLIC 
LAND. 
Section 433 of the Department of the Interior, Envi-
ronment, and Related Agencies Appropriations Act, 2008 
(Public Law 110–161; 121 Stat. 2152) is repealed. 
Subtitle D—Department of Defense 
Facilitation of Secure Domestic 
Fuel Development 
SEC. 231. PROCUREMENT AND ACQUISITION OF ALTER-
NATIVE FUELS. 
Section 526 of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17142) is repealed. 
SEC. 232. MULTIYEAR CONTRACT AUTHORITY FOR THE DE-
PARTMENT OF DEFENSE FOR THE PROCURE-
MENT OF SYNTHETIC FUELS. 
(a) MULTIYEAR CONTRACTS
FOR
THE PROCURE-
MENT OF SYNTHETIC FUELS AUTHORIZED.— 
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(1) IN
GENERAL.—Chapter 141 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2410r. Multiyear contract authority: purchase of 
synthetic fuels 
‘‘(a) MULTIYEAR CONTRACTS AUTHORIZED.—The 
head of an agency may enter into contracts for a period 
not to exceed 25 years for the purchase of synthetic fuels. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) The term ‘head of an agency’ has the 
meaning given that term in section 2302(1) of this 
title. 
‘‘(2) The term ‘synthetic fuel’ means any liquid, 
gas, or combination thereof that— 
‘‘(A) can be used as a substitute for petro-
leum or natural gas (or any derivative thereof, 
including chemical feedstocks); and 
‘‘(B) is produced by chemical or physical 
transformation of domestic sources of energy.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 141 of such title 
is amended by adding at the end the following new 
item: 
‘‘2410r. Multiyear contract authority: purchase of synthetic fuels.’’. 
(b) REGULATIONS.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of 
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Defense shall prescribe regulations providing that the 
head of an agency may initiate a multiyear contract as 
authorized by section 2410r of title 10, United States 
Code (as added by subsection (a)), only if the head of the 
agency has determined in writing that— 
(1) there is a reasonable expectation that 
throughout the contemplated contract period the 
head of the agency will request funding for the con-
tract at the level required to avoid contract cancella-
tion; 
(2) the technical risks associated with the tech-
nologies for the production of synthetic fuel under 
the contract are not excessive; and 
(3) the contract will contain appropriate pricing 
mechanisms to minimize risk to the Government 
from significant changes in market prices for energy. 
(c) LIMITATION ON USE OF AUTHORITY.—No con-
tract may be entered into under the authority in section 
2410r of title 10, United States Code (as so added), until 
the regulations required by subsection (b) are prescribed. 
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TITLE III—MISCELLANEOUS 
SEC. 301. LIMITATION ON SALES OF DEFENSE ARTICLES 
AND DEFENSE SERVICES TO THE KINGDOM 
OF SAUDI ARABIA. 
(a) LIMITATION.—The issuance of any letter of offer 
with respect to a proposed sale of defense articles and de-
fense services to the Kingdom of Saudi Arabia is hereby 
prohibited unless the President determines and certifies 
to Congress that the Kingdom of Saudi Arabia has in-
creased its oil production to at least 10,000,000 barrels 
of oil per day, and has maintained such level of produc-
tion. 
(b) WAIVER.—The President may, on a case by case 
basis, waive the application of subsection (a) with respect 
to a proposed sale of defense articles and defense services 
if the President determines and certifies to Congress that 
the waiver is vital to the national security interests of the 
United States or the national security interests of a 
United States ally. 
(c) DEFINITIONS.—In this section, the terms ‘‘de-
fense article’’ and ‘‘defense service’’ have the meaning 
given such terms in section 47 of the Arms Export Control 
Act (22 U.S.C. 2794 note). 
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SEC. 302. EXTENSION AND MODIFICATION OF RENEWABLE 
ENERGY PRODUCTION TAX CREDIT. 
(a) EXTENSION OF CREDIT.—Each of the following 
provisions of section 45(d) of the Internal Revenue Code 
of 1986 (relating to qualified facilities) is amended by 
striking ‘‘January 1, 2009’’ and inserting ‘‘January 1, 
2010’’: 
(1) Paragraph (1). 
(2) Clauses (i) and (ii) of paragraph (2)(A). 
(3) Clauses (i)(I) and (ii) of paragraph (3)(A). 
(4) Paragraph (4). 
(5) Paragraph (5). 
(6) Paragraph (6). 
(7) Paragraph (7). 
(8) Paragraph (8). 
(9) Subparagraphs (A) and (B) of paragraph 
(9). 
(b) PRODUCTION CREDIT FOR ELECTRICITY PRO-
DUCED FROM MARINE RENEWABLES.— 
(1) IN
GENERAL.—Paragraph (1) of section 
45(c) of such Code (relating to resources) is amend-
ed by striking ‘‘and’’ at the end of subparagraph 
(G), by striking the period at the end of subpara-
graph (H) and inserting ‘‘, and’’, and by adding at 
the end the following new subparagraph: 
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‘‘(I) marine and hydrokinetic renewable en-
ergy.’’. 
(2) MARINE RENEWABLES.—Subsection (c) of 
section 45 of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(10) MARINE
AND
HYDROKINETIC
RENEW-
ABLE ENERGY.— 
‘‘(A) IN GENERAL.—The term ‘marine and 
hydrokinetic renewable energy’ means energy 
derived from— 
‘‘(i) waves, tides, and currents in 
oceans, estuaries, and tidal areas, 
‘‘(ii) free flowing water in rivers, 
lakes, and streams, 
‘‘(iii) free flowing water in an irriga-
tion system, canal, or other man-made 
channel, including projects that utilize non-
mechanical structures to accelerate the 
flow of water for electric power production 
purposes, or 
‘‘(iv) differentials in ocean tempera-
ture (ocean thermal energy conversion). 
‘‘(B) EXCEPTIONS.—Such term shall not 
include any energy which is derived from any 
source which utilizes a dam, diversionary struc-
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ture (except as provided in subparagraph 
(A)(iii)), or impoundment for electric power 
production purposes.’’. 
(3) DEFINITION OF FACILITY.—Subsection (d) 
of section 45 of such Code is amended by adding at 
the end the following new paragraph: 
‘‘(11) MARINE
AND
HYDROKINETIC
RENEW-
ABLE ENERGY FACILITIES.—In the case of a facility 
producing electricity from marine and hydrokinetic 
renewable energy, the term ‘qualified facility’ means 
any facility owned by the taxpayer— 
‘‘(A) which has a nameplate capacity rat-
ing of at least 150 kilowatts, and 
‘‘(B) which is originally placed in service 
on or after the date of the enactment of this 
paragraph and before January 1, 2010.’’. 
(4) CREDIT RATE.—Subparagraph (A) of sec-
tion 45(b)(4) of such Code is amended by striking 
‘‘or (9)’’ and inserting ‘‘(9), or (11)’’. 
(5) COORDINATION
WITH
SMALL
IRRIGATION 
POWER.—Paragraph (5) of section 45(d) of such 
Code, as amended by subsection (a), is amended by 
striking ‘‘January 1, 2010’’ and inserting ‘‘the date 
of the enactment of paragraph (11)’’. 
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(c) SALES OF ELECTRICITY TO REGULATED PUBLIC 
UTILITIES TREATED
AS SALES
TO UNRELATED PER-
SONS.—Section 45(e)(4) of such Code (relating to related 
persons) is amended by adding at the end the following 
new sentence: ‘‘A taxpayer shall be treated as selling elec-
tricity to an unrelated person if such electricity is sold to 
a regulated public utility (as defined in section 
7701(a)(33).’’. 
(d) TRASH FACILITY CLARIFICATION.—Paragraph 
(7) of section 45(d) of such Code is amended— 
(1) by striking ‘‘facility which burns’’ and in-
serting ‘‘facility (other than a facility described in 
paragraph (6)) which uses’’, and 
(2) by striking ‘‘COMBUSTION’’. 
(e) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendments made by 
subsection (a) shall apply to property originally 
placed in service after December 31, 2008. 
(2) MODIFICATIONS.—The amendments made 
by subsections (b) and (c) shall apply to electricity 
produced and sold after the date of the enactment 
of this Act, in taxable years ending after such date. 
(3) TRASH
FACILITY
CLARIFICATION.—The 
amendments made by subsection (d) shall apply to 
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electricity produced and sold before, on, or after De-
cember 31, 2007. 
SEC. 303. EXTENSION AND MODIFICATION OF SOLAR EN-
ERGY AND FUEL CELL INVESTMENT TAX 
CREDIT. 
(a) EXTENSION OF CREDIT.— 
(1) SOLAR
ENERGY
PROPERTY.—Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the 
Internal Revenue Code of 1986 (relating to energy 
credit) are each amended by striking ‘‘January 1, 
2009’’ and inserting ‘‘January 1, 2017’’. 
(2) FUEL CELL PROPERTY.—Subparagraph (E) 
of section 48(c)(1) of such Code (relating to quali-
fied fuel cell property) is amended by striking ‘‘De-
cember 31, 2008’’ and inserting ‘‘December 31, 
2016’’. 
(3) QUALIFIED
MICROTURBINE
PROPERTY.— 
Subparagraph (E) of section 48(c)(2) of such Code 
(relating to qualified microturbine property) is 
amended by striking ‘‘December 31, 2008’’ and in-
serting ‘‘December 31, 2016’’. 
(b) ALLOWANCE OF ENERGY CREDIT AGAINST AL-
TERNATIVE MINIMUM TAX.—Subparagraph (B) of section 
38(c)(4) of such Code (relating to specified credits) is 
amended by striking ‘‘and’’ at the end of clause (iii), by 
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striking the period at the end of clause (iv) and inserting 
‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(v) the credit determined under sec-
tion 46 to the extent that such credit is at-
tributable to the energy credit determined 
under section 48.’’. 
(c) REPEAL OF DOLLAR PER KILOWATT LIMITATION 
FOR FUEL CELL PROPERTY.— 
(1) IN
GENERAL.—Section 48(c)(1) of such 
Code (relating to qualified fuel cell), as amended by 
subsection (a)(2), is amended by striking subpara-
graph (B) and by redesignating subparagraphs (C), 
(D), and (E) as subparagraphs (B), (C), and (D), 
respectively. 
(2) 
CONFORMING
AMENDMENT.—Section 
48(a)(1) of such Code is amended by striking ‘‘para-
graphs (1)(B) and (2)(B) of subsection (c)’’ and in-
serting ‘‘subsection (c)(2)(B)’’. 
(d) PUBLIC ELECTRIC UTILITY PROPERTY TAKEN 
INTO ACCOUNT.— 
(1) IN
GENERAL.—Paragraph (3) of section 
48(a) of such Code is amended by striking the sec-
ond sentence thereof. 
(2) CONFORMING AMENDMENTS.— 
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(A) Paragraph (1) of section 48(c) of such 
Code, as amended by this section, is amended 
by striking subparagraph (C) and redesignating 
subparagraph (D) as subparagraph (C). 
(B) Paragraph (2) of section 48(c) of such 
Code, as amended by subsection (a)(3), is 
amended by striking subparagraph (D) and re-
designating subparagraph (E) as subparagraph 
(D). 
(e) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendments made by 
subsection (a) shall take effect on the date of the en-
actment of this Act. 
(2) ALLOWANCE AGAINST ALTERNATIVE MIN-
IMUM TAX.—The amendments made by subsection 
(b) shall apply to credits determined under section 
46 of the Internal Revenue Code of 1986 in taxable 
years beginning after the date of the enactment of 
this Act and to carrybacks of such credits. 
(3) FUEL CELL PROPERTY AND PUBLIC ELEC-
TRIC UTILITY PROPERTY.—The amendments made 
by subsections (c) and (d) shall apply to periods 
after the date of the enactment of this Act, in tax-
able years ending after such date, under rules simi-
lar to the rules of section 48(m) of the Internal Rev-
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by the sum of the credits allowable under this 
subpart (other than this section), such excess 
shall be carried to the succeeding taxable year 
and added to the credit allowable under sub-
section (a) for such succeeding taxable year. 
‘‘(B) RULE
FOR
OTHER
YEARS.—In the 
case of a taxable year to which section 26(a)(2) 
does not apply, if the credit allowable under 
subsection (a) exceeds the limitation imposed by 
paragraph (1) for such taxable year, such ex-
cess shall be carried to the succeeding taxable 
year and added to the credit allowable under 
subsection (a) for such succeeding taxable 
year.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 23(b)(4)(B) of such Code is 
amended by inserting ‘‘and section 25D’’ after 
‘‘this section’’. 
(B) Section 24(b)(3)(B) of such Code is 
amended by striking ‘‘and 25B’’ and inserting 
‘‘, 25B, and 25D’’. 
(C) Section 25B(g)(2) of such Code is 
amended by striking ‘‘section 23’’ and inserting 
‘‘sections 23 and 25D’’. 
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(D) Section 26(a)(1) of such Code is 
amended by striking ‘‘and 25B’’ and inserting 
‘‘25B, and 25D’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after December 31, 2007. 
(2) APPLICATION
OF
EGTRRA
SUNSET.—The 
amendments made by subparagraphs (A) and (B) of 
subsection (c)(2) shall be subject to title IX of the 
Economic Growth and Tax Relief Reconciliation Act 
of 2001 in the same manner as the provisions of 
such Act to which such amendments relate. 
SEC. 305. EXTENSION AND MODIFICATION OF CREDIT FOR 
CLEAN RENEWABLE ENERGY BONDS. 
(a) EXTENSION.—Section 54(m) of the Internal Rev-
enue Code of 1986 (relating to termination) is amended 
by striking ‘‘December 31, 2008’’ and inserting ‘‘Decem-
ber 31, 2009’’. 
(b) INCREASE IN NATIONAL LIMITATION.—Section 
54(f) of such Code (relating to limitation on amount of 
bonds designated) is amended— 
(1) by inserting ‘‘, and for the period beginning 
after the date of the enactment of the Clean Energy 
Tax Stimulus Act of 2008 and ending before Janu-
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ary 1, 2010, $400,000,000’’ after ‘‘$1,200,000,000’’ 
in paragraph (1), 
(2) by striking ‘‘$750,000,000 of the’’ in para-
graph (2) and inserting ‘‘$750,000,000 of the 
$1,200,000,000’’, and 
(3) by striking ‘‘bodies’’ in paragraph (2) and 
inserting ‘‘bodies, and except that the Secretary may 
not allocate more than 1⁄3 of the $400,000,000 na-
tional clean renewable energy bond limitation to fi-
nance qualified projects of qualified borrowers which 
are public power providers nor more than 1⁄3 of such 
limitation to finance qualified projects of qualified 
borrowers which are mutual or cooperative electric 
companies described in section 501(c)(12) or section 
1381(a)(2)(C)’’. 
(c) PUBLIC POWER PROVIDERS DEFINED.—Section 
54(j) of such Code is amended— 
(1) by adding at the end the following new 
paragraph: 
‘‘(6) 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).’’, and 
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(2) by inserting ‘‘; PUBLIC POWER PROVIDER’’ 
before the period at the end of the heading. 
(d) TECHNICAL AMENDMENT.—The third sentence of 
section 54(e)(2) of such Code is amended by striking 
‘‘subsection (l)(6)’’ and inserting ‘‘subsection (l)(5)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
SEC. 306. EXTENSION AND MODIFICATION OF CREDIT FOR 
ENERGY EFFICIENCY IMPROVEMENTS TO EX-
ISTING HOMES. 
(a) EXTENSION OF CREDIT.—Section 25C(g) of the 
Internal Revenue Code of 1986 (relating to termination) 
is amended by striking ‘‘December 31, 2007’’ and insert-
ing ‘‘December 31, 2009’’. 
(b) QUALIFIED BIOMASS FUEL PROPERTY.— 
(1) IN GENERAL.—Section 25C(d)(3) of such 
Code is amended— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (D), 
(B) by striking the period at the end of 
subparagraph (E) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
subparagraph: 
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‘‘(F) a stove which uses the burning of bio-
mass fuel to heat a dwelling unit located in the 
United States and used as a residence by the 
taxpayer, or to heat water for use in such a 
dwelling unit, and which has a thermal effi-
ciency rating of at least 75 percent.’’. 
(2) BIOMASS FUEL.—Section 25C(d) of such 
Code (relating to residential energy property expend-
itures) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(6) BIOMASS FUEL.—The term ‘biomass fuel’ 
means any plant-derived fuel available on a renew-
able or recurring basis, including agricultural crops 
and trees, wood and wood waste and residues (in-
cluding wood pellets), plants (including aquatic 
plants), grasses, residues, and fibers.’’. 
(c) MODIFICATIONS OF STANDARDS FOR ENERGY- 
EFFICIENT BUILDING PROPERTY.— 
(1) ELECTRIC
HEAT
PUMPS.—Subparagraph 
(B) of section 25C(d)(3) of such Code is amended 
to read as follows: 
‘‘(A) an electric heat pump which achieves 
the highest efficiency tier established by the 
Consortium for Energy Efficiency, as in effect 
on January 1, 2008.’’. 
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to termination) is amended by striking ‘‘December 31, 
2008’’ and inserting ‘‘December 31, 2010’’. 
(b) ALLOWANCE
FOR
CONTRACTOR’S
PERSONAL 
RESIDENCE.—Subparagraph (B) of section 45L(a)(1) of 
such Code is amended to read as follows: 
‘‘(B)(i) acquired by a person from such eli-
gible contractor and used by any person as a 
residence during the taxable year, or 
‘‘(ii) used by such eligible contractor as a 
residence during the taxable year.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to homes acquired after December 
31, 2008. 
SEC. 308. EXTENSION AND MODIFICATION OF ENERGY EF-
FICIENT COMMERCIAL BUILDINGS DEDUC-
TION. 
(a) EXTENSION.—Section 179D(h) of the Internal 
Revenue Code of 1986 (relating to termination) is amend-
ed by striking ‘‘December 31, 2008’’ and inserting ‘‘De-
cember 31, 2009’’. 
(b) 
ADJUSTMENT
OF
MAXIMUM
DEDUCTION 
AMOUNT.— 
(1) IN GENERAL.—Subparagraph (A) of section 
179D(b)(1) of such Code (relating to maximum 
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100 
amount of deduction) is amended by striking 
‘‘$1.80’’ and inserting ‘‘$2.25’’. 
(2) PARTIAL ALLOWANCE.—Paragraph (1) of 
section 179D(d) of such Code is amended— 
(A) by striking ‘‘$.60’’ and inserting 
‘‘$0.75’’, and 
(B) by striking ‘‘$1.80’’ and inserting 
‘‘$2.25’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 309. MODIFICATION AND EXTENSION OF ENERGY EF-
FICIENT APPLIANCE CREDIT FOR APPLI-
ANCES PRODUCED AFTER 2007. 
(a) IN GENERAL.—Subsection (b) of section 45M of 
the Internal Revenue Code of 1986 (relating to applicable 
amount) is amended to read as follows: 
‘‘(b) APPLICABLE AMOUNT.—For purposes of sub-
section (a)— 
‘‘(1) DISHWASHERS.—The applicable amount 
is— 
‘‘(A) $45 in the case of a dishwasher which 
is manufactured in calendar year 2008 or 2009 
and which uses no more than 324 kilowatt 
hours per year and 5.8 gallons per cycle, and 
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101 
‘‘(B) $75 in the case of a dishwasher 
which is manufactured in calendar year 2008, 
2009, or 2010 and which uses no more than 
307 kilowatt hours per year and 5.0 gallons per 
cycle (5.5 gallons per cycle for dishwashers de-
signed for greater than 12 place settings). 
‘‘(2) 
CLOTHES
WASHERS.—The 
applicable 
amount is— 
‘‘(A) $75 in the case of a residential top- 
loading clothes washer manufactured in cal-
endar year 2008 which meets or exceeds a 1.72 
modified energy factor and does not exceed a 
8.0 water consumption factor, 
‘‘(B) $125 in the case of a residential top- 
loading clothes washer manufactured in cal-
endar year 2008 or 2009 which meets or ex-
ceeds a 1.8 modified energy factor and does not 
exceed a 7.5 water consumption factor, 
‘‘(C) $150 in the case of a residential or 
commercial clothes washer manufactured in cal-
endar year 2008, 2009, or 2010 which meets or 
exceeds 2.0 modified energy factor and does not 
exceed a 6.0 water consumption factor, and 
‘‘(D) $250 in the case of a residential or 
commercial clothes washer manufactured in cal-
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102 
endar year 2008, 2009, or 2010 which meets or 
exceeds 2.2 modified energy factor and does not 
exceed a 4.5 water consumption factor. 
‘‘(3) REFRIGERATORS.—The applicable amount 
is— 
‘‘(A) $50 in the case of a refrigerator 
which is manufactured in calendar year 2008, 
and consumes at least 20 percent but not more 
than 22.9 percent less kilowatt hours per year 
than the 2001 energy conservation standards, 
‘‘(B) $75 in the case of a refrigerator 
which is manufactured in calendar year 2008 or 
2009, and consumes at least 23 percent but no 
more than 24.9 percent less kilowatt hours per 
year than the 2001 energy conservation stand-
ards, 
‘‘(C) $100 in the case of a refrigerator 
which is manufactured in calendar year 2008, 
2009, or 2010, and consumes at least 25 per-
cent but not more than 29.9 percent less kilo-
watt hours per year than the 2001 energy con-
servation standards, and 
‘‘(D) $200 in the case of a refrigerator 
manufactured in calendar year 2008, 2009, or 
2010 and which consumes at least 30 percent 
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103 
less energy than the 2001 energy conservation 
standards.’’. 
(b) ELIGIBLE PRODUCTION.— 
(1) SIMILAR
TREATMENT
FOR
ALL
APPLI-
ANCES.—Subsection (c) of section 45M of such Code 
(relating to eligible production) is amended— 
(A) by striking paragraph (2), 
(B) by striking ‘‘(1) IN GENERAL’’ and all 
that follows through ‘‘the eligible’’ and inserting 
‘‘The eligible’’, and 
(C) by moving the text of such subsection 
in line with the subsection heading and redesig-
nating subparagraphs (A) and (B) as para-
graphs (1) and (2), respectively. 
(2) MODIFICATION
OF
BASE
PERIOD.—Para-
graph (2) of section 45M(c) of such Code, as amend-
ed by paragraph (1) of this section, is amended by 
striking ‘‘3-calendar year’’ and inserting ‘‘2-calendar 
year’’. 
(c) TYPES OF ENERGY EFFICIENT APPLIANCES.— 
Subsection (d) of section 45M of such Code (defining 
types of energy efficient appliances) is amended to read 
as follows: 
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104 
‘‘(d) TYPES OF ENERGY EFFICIENT APPLIANCE.— 
For purposes of this section, the types of energy efficient 
appliances are— 
‘‘(1) dishwashers described in subsection (b)(1), 
‘‘(2) clothes washers described in subsection 
(b)(2), and 
‘‘(3) 
refrigerators 
described 
in 
subsection 
(b)(3).’’. 
(d) AGGREGATE CREDIT AMOUNT ALLOWED.— 
(1) INCREASE IN LIMIT.—Paragraph (1) of sec-
tion 45M(e) of such Code (relating to aggregate 
credit amount allowed) is amended to read as fol-
lows: 
‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— 
The aggregate amount of credit allowed under sub-
section (a) with respect to a taxpayer for any tax-
able year shall not exceed $75,000,000 reduced by 
the amount of the credit allowed under subsection 
(a) to the taxpayer (or any predecessor) for all prior 
taxable years beginning after December 31, 2007.’’. 
(2) EXCEPTION FOR CERTAIN REFRIGERATOR 
AND CLOTHES WASHERS.—Paragraph (2) of section 
45M(e) of such Code is amended to read as follows: 
‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIG-
ERATORS
AND
CLOTHES
WASHERS.—Refrigerators 
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105 
described in subsection (b)(3)(D) and clothes wash-
ers described in subsection (b)(2)(D) shall not be 
taken into account under paragraph (1).’’. 
(e) QUALIFIED ENERGY EFFICIENT APPLIANCES.— 
(1) IN
GENERAL.—Paragraph (1) of section 
45M(f) of such Code (defining qualified energy effi-
cient appliance) is amended to read as follows: 
‘‘(1) QUALIFIED
ENERGY
EFFICIENT
APPLI-
ANCE.—The term ‘qualified energy efficient appli-
ance’ means— 
‘‘(A) any dishwasher described in sub-
section (b)(1), 
‘‘(B) any clothes washer described in sub-
section (b)(2), and 
‘‘(C) any refrigerator described in sub-
section (b)(3).’’. 
(2) CLOTHES WASHER.—Section 45M(f)(3) of 
such Code (defining clothes washer) is amended by 
inserting ‘‘commercial’’ before ‘‘residential’’ the sec-
ond place it appears. 
(3) TOP-LOADING
CLOTHES
WASHER.—Sub-
section (f) of section 45M of such Code (relating to 
definitions) is amended by redesignating paragraphs 
(4), (5), (6), and (7) as paragraphs (5), (6), (7), 
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106 
and (8), respectively, and by inserting after para-
graph (3) the following new paragraph: 
‘‘(4) TOP-LOADING
CLOTHES
WASHER.—The 
term ‘top-loading clothes washer’ means a clothes 
washer which has the clothes container compartment 
access located on the top of the machine and which 
operates on a vertical axis.’’. 
(4) REPLACEMENT OF ENERGY FACTOR.—Sec-
tion 45M(f)(6) of such Code, as redesignated by 
paragraph (3), is amended to read as follows: 
‘‘(6) MODIFIED
ENERGY
FACTOR.—The term 
‘modified energy factor’ means the modified energy 
factor established by the Department of Energy for 
compliance with the Federal energy conservation 
standard.’’. 
(5) GALLONS
PER
CYCLE; WATER
CONSUMP-
TION FACTOR.—Section 45M(f) of such Code (relat-
ing to definitions), as amended by paragraph (3), is 
amended by adding at the end the following: 
‘‘(9) GALLONS PER CYCLE.—The term ‘gallons 
per cycle’ means, with respect to a dishwasher, the 
amount of water, expressed in gallons, required to 
complete a normal cycle of a dishwasher. 
‘‘(10) WATER
CONSUMPTION
FACTOR.—The 
term ‘water consumption factor’ means, with respect 
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107 
to a clothes washer, the quotient of the total weight-
ed per-cycle water consumption divided by the cubic 
foot (or liter) capacity of the clothes washer.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to appliances produced after De-
cember 31, 2007. 
SEC. 310. APOLLO 21 ENERGY INDEPENDENCE PROGRAM. 
The President shall establish a program, modeled on 
the Apollo program, for the 21st century that will make 
it the goal of the United States to become energy inde-
pendent by 2018. Such program shall be designed to, by 
2018— 
(1) end our dependence on foreign sources of 
oil; 
(2) establish infrastructure and invest in re-
search to power America with alternative sources of 
energy, especially low-carbon emitting fuels and fuels 
that encourage economic development in rural areas; 
and 
(3) reduce the proportion of the family budget 
that goes toward energy costs, especially among 
Americans with limited income. 
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108 
SEC. 311. STUDY OF EFFECTS OF SPECULATION IN THE FU-
TURES MARKETS FOR NATURAL GAS, CRUDE 
OIL, AND GASOLINE ON CASH MARKET AND 
RETAIL PRICES, AND CHOICE OF TRADING 
VENUE. 
(a) STUDY.—The Federal Trade Commission, the 
Board of Governors of the Federal Reserve System, and 
the Energy Information Agency, in consultation with the 
Commodity Futures Trading Commission, other Federal 
agencies, and other entities involved in gathering and re-
viewing such information, shall jointly conduct a study of 
the effects of speculation in the futures markets (including 
foreign futures markets) for natural gas, crude oil, and 
gasoline on cash market and retail prices for the commod-
ities. The study shall focus on the effects of margin re-
quirements, position limits, and other regulatory require-
ments that apply with respect to trading in the commod-
ities on the choice of trading venue. 
(b) REPORT TO THE CONGRESS.—Within 180 days 
after the date of the enactment of this Act, the Federal 
Trade Commission shall submit to the Committee on En-
ergy and Commerce of the House of Representatives and 
the Committee on Commerce of the Senate a report on 
the results of the study required by subsection (a). 
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109 
SEC. 312. REQUIREMENT THAT THE COMMODITY FUTURES 
TRADING COMMISSION ISSUE A NOTICE OF 
PROPOSED RULEMAKING REGARDING COM-
PARABILITY OF FOREIGN REGULATION OF 
FUTURES AND DERIVATIVES TRADING. 
Within 6 months after the date of the enactment of 
this Act, the Commodity Futures Trading Commission 
shall— 
(1) issue a notice of proposed rulemaking re-
garding how the Commission determines whether 
regulation of futures contracts and derivatives (in-
cluding any related position limits, margin require-
ments, and reporting requirements) by a foreign 
country is comparable to regulation of such under 
the Commodity Exchange Act, which includes a re-
quest for comments from the public regarding the 
factors which the Commission should consider in 
making such a determination; 
(2) evaluate any such comments submitted to 
the Commission; and 
(3) determine whether the Commission should 
issue a proposed rule regarding the matter. 
Æ 
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