130 
(1) DURATION.—A lease under this section 
shall be for— 
(A) an initial term of 25 years; and 
(B) any additional period after the initial 
term during which electricity is being produced 
annually in commercial quantities from the 
lease. 
(2) ADMINISTRATION.—The Secretary shall es-
tablish terms and conditions for the issuance, trans-
fer, renewal, suspension, and cancellation of a lease 
under this section. 
(3) READJUSTMENT.— 
(A) IN GENERAL.—Royalties, rentals, and 
other terms and conditions of a lease under this 
section shall be subject to readjustment— 
(i) on the date that is 15 years after 
the date on which the lease is issued; and 
(ii) every 10 years thereafter. 
(B) LEASE.—Each lease issued under this 
Act shall provide for readjustment in accord-
ance with subparagraph (A). 
(j) SURFACE-DISTURBING ACTIVITIES.—The Secre-
taries shall— 
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131 
(1) regulate all surface-disturbing activities con-
ducted pursuant to any lease issued under this sec-
tion; and 
(2) require any necessary reclamation and other 
actions under the lease as are required in the inter-
est of conservation of surface resources. 
(k) SECURITY.—The Secretaries shall require the 
holder of a lease issued under this section— 
(1) to furnish a surety bond or other form of 
security, as prescribed by the Secretaries; 
(2) to provide for the reclamation and restora-
tion of the area covered by the lease; and 
(3) to comply with such other requirements as 
the Secretaries consider necessary to protect the in-
terests of the public and the United States. 
(l) PERIODIC REVIEW.—Not less frequently than 
once every 5 years, the Secretary shall conduct a review 
of the adequacy of the surety bond or other form of secu-
rity provided by the holder of a lease issued under this 
section. 
SEC. 184. DISPOSITION OF REVENUES. 
(a) DISPOSITION OF REVENUES.—Of the amounts 
collected as bonus bids, royalties, rentals, fees, or other 
payments under a right-of-way, permit, lease, or other au-
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thorization for the development of wind or solar energy 
on covered land— 
(1) 25 percent shall be paid by the Secretary of 
the Treasury to the State within the boundaries of 
which the income is derived; 
(2) 25 percent shall be paid by the Secretary of 
the Treasury to the 1 or more counties within the 
boundaries of which the income is derived; and 
(3) 50 percent shall be deposited in the Treas-
ury of the United States. 
(b) PAYMENTS
TO
STATES
AND
COUNTIES.— 
Amounts paid to States and counties under subsection (a) 
shall be used consistent with section 35 of the Mineral 
Leasing Act (30 U.S.C. 191). 
Subtitle H—Miscellaneous 
Provisions 
SEC. 191. MILITARY OPERATIONS. 
The Secretary shall consult with the Secretary of De-
fense regarding military operations needs in the waters of 
the outer Continental Shelf. The Secretary shall work with 
the Secretary of Defense to resolve any conflicts that 
might arise between such operations and leasing under 
this subtitle. If the Secretaries are unable to resolve all 
such conflicts, any unresolved issues shall be referred by 
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133 
the Secretaries to the President within 90 days for imme-
diate resolution. 
SEC. 192. ENVIRONMENTAL SENSITIVITY ANALYSIS UNDER 
THE PROGRAM. 
(a) ENVIRONMENTAL SENSITIVITY INDEX.—The En-
vironmental Sensitivity Index, developed by the National 
Oceanic and Atmospheric Administration, which considers 
the sensitivity of different shoreline areas to oil spills, and 
the ranking under the program of the areas of the outer 
Continental Shelf based upon the Environmental Sensi-
tivity Index, satisfies the requirements of section 18 of the 
Act (43 U.S.C. 1344), including the requirement to con-
sider the relative environmental sensitivity of different 
areas of the outer Continental Shelf under section 
18(a)(2)(G) of the Act (43 U.S.C. 1344(a)(2)(G)). 
(b) PROGRAM DEEMED SUFFICIENT.—The Final 
Outer Continental Shelf Oil and Gas Leasing Program, 
2007–2012, is deemed to meet all requirements of section 
18 of the Act (43 U.S.C. 1344) and is effective as of the 
date on which the Secretary made that program effective. 
SEC. 193. VALIDITY OF EXISTING LEASES. 
Any lease heretofore issued pursuant to a lease sale 
held under the Final Outer Continental Shelf Oil and Gas 
Leasing Program, 2007–2012, including any lease issued 
pursuant to Lease Sale 193 or 213, is deemed to be in 
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134 
full compliance with the Act and all other legal require-
ments. 
SEC. 194. INTEGRITY OF LEASE SALES AND LEASING 
SCHEDULE. 
(a) LEASING DURING JUDICIAL OR ADMINISTRATIVE 
REVIEW.—Section 18(d)(3) of the Act (43 U.S.C. 
1344(d)(3)) is amended to read as follows: 
‘‘(3) After the leasing program has been approved by 
the Secretary, except as otherwise provided by applicable 
law, no lease shall be issued unless it is for an area in-
cluded in the approved leasing program and unless it con-
tains provisions consistent with the approved leasing pro-
gram, except that leasing shall continue for so long as 
such program is under judicial or administrative review 
pursuant to this Act, including any administrative review 
occasioned by the remand of such program as a result of 
judicial review. Any lease issued pursuant to a lease sale 
held in the period that the approved leasing program is 
under judicial or administrative review is deemed to have 
been issued pursuant to an approved leasing program.’’. 
(b) COURT ACTION UPON APPEAL.—The last sen-
tence of section 23(c)(6) of the Act (43 U.S.C. 1349(c)(6)) 
is amended to read as follows: ‘‘The court may affirm or 
modify any order or decision or may remand the pro-
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135 
ceedings to the Secretary for such further action as it may 
direct.’’. 
SEC. 195. AUTHORITY TO CONDUCT OFFSHORE DRILLING 
UNDER APPROVED PERMITS. 
(a) IN GENERAL.—Subject to subsection (b), each 
holder of a permit issued pursuant to an application for 
a permit to drill, including an application for a permit to 
sidetrack, that was approved by the Minerals Management 
Service before May 3, 2010, for purposes of outer Conti-
nental Shelf energy exploration or development and pro-
duction may conduct all operations authorized under the 
terms of the permit (including all exploration plans, devel-
opment operations coordination documents, and develop-
ment production plans submitted for the permit)— 
(1) without further review by the Bureau of 
Ocean Energy Management, Regulation and En-
forcement and Bureau of Safety and Environmental 
Enforcement; and 
(2) without further review or delay under the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et. seq.) or any other similar statutes, 
including the Federal Water Pollution Control Act 
(33 U.S.C. 1251 et seq.) or the Marine Mammal 
Protection Act of 1972 (16 U.S.C. 1361 et seq.). 
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(b) OPERATIONS.—Operations conducted under sub-
section (a) shall be carried out in accordance with the safe-
ty protocols contained in part 250 of title 30, Code of Fed-
eral Regulations. 
(c) REVIEW OF COMPLIANCE.—This section does not 
prohibit review of compliance with the terms of such a per-
mit. 
SEC. 196. TIME REQUIREMENT TO ACT ON OIL AND NAT-
URAL GAS DRILLING PERMITS. 
Subsection (d) of section 11 of the Act (43 U.S.C. 
1340) is amended by designating the existing text as para-
graph (1) and adding at the end the following: 
‘‘(2)(A) The Secretary shall approve or dis-
approve any application for a permit for drilling a 
well under an approved exploration or development 
plan, or any application to amend a previously ap-
proved permit, within 30 days after its submission, 
except that the Secretary may disapprove such per-
mit only upon a determination that— 
‘‘(i) any proposed activity under the permit 
would result in any condition described in sec-
tion 5(a)(2)(A)(i); and 
‘‘(ii) such proposed activity cannot be 
modified to avoid such condition. 
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137 
‘‘(B) The Secretary may request additional in-
formation from the applicant prior to approving or 
disapproving such application, but the request for 
additional information must be received by the appli-
cant within 15 days after submission of the applica-
tion to the Secretary. Upon receipt of the additional 
information requested by the Secretary, the Sec-
retary shall approve or disapprove the application 
within 15 days in accordance with this subsection. If 
the Secretary disapproves a permit application or an 
amended permit application pursuant to this sub-
section, and there is no other well on the lease tract 
capable of production in paying quantities, within 90 
days after receipt of a final disapproval decision all 
record title holders of the lease may request can-
cellation of the lease, and within 60 days after re-
ceipt of such cancellation request the Secretary shall 
pay to the record title holders the amount of any 
bonus bid paid for such lease. The Secretary shall 
make such payment from amounts that otherwise 
would be credited to miscellaneous receipts pursuant 
to section 9.’’. 
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138 
SEC. 197. TIMELY ISSUANCE OF ONSHORE OIL AND GAS 
LEASES. 
Section 17(a)(1) of the Mineral Leasing Act (30 
U.S.C. 226(b)(1)(A)) is amended by striking ‘‘Leases shall 
be issued within 60 days following payment by the success-
ful bidder of the remainder of the bonus bid, if any, and 
the annual rental for the first lease year.’’ and inserting 
‘‘Unless the Secretary issues a lease sooner, leases shall 
automatically issue exactly 60 days following payment by 
the successful bidder of the remainder of the bonus bid, 
if any, and the annual rental for the first lease year. The 
filing of any protest to the sale or issuance of a lease shall 
not act to extend the date by which the lease is to be 
issued following payment by the successful bidder under 
the preceding sentence, nor shall the issuance of a lease 
be delayed or deferred beyond 60 days following payment 
by the successful bidder pending resolution of a protest 
to the sale or issuance of the lease.’’. 
SEC. 198. STATE AUDITING. 
Where authority is ceded to States to audit proc-
essing and transportation for purposes of royalty calcula-
tion under section 205 of the Royalty Simplification and 
Fairness Act of 1996, State auditors shall provide back-
ground methodology and supporting detail to the payor 
for audit findings; including formulas and supporting 
worksheets detailing the calculations used when costs from 
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139 
processing plants and transportation providers are dis-
allowed by the State auditor. The State shall seek written 
authority from the processors and transporters to provide 
this information when necessary and requested. 
TITLE II—CONTINENTAL 
PIPELINE APPROVAL 
SEC. 201. KEYSTONE XL PIPELINE PERMIT APPROVAL. 
(a) PERMIT APPROVAL.—The permit described in 
subsection (b) is hereby approved. 
(b) DESCRIPTION OF PERMIT.—The permit approved 
under subsection (a) is the permit with respect to certain 
energy-related facilities and land transportation crossings 
on the international boundaries of the United States for 
the Keystone XL pipeline project, an application for which 
was filed on September 19, 2008 (including amendments). 
(c) REQUIREMENTS.—The permit granted under sub-
section (a) shall require the following: 
(1) The permittee shall comply with all applica-
ble Federal and State laws (including regulations) 
and all applicable industrial codes regarding the con-
struction, connection, operation, and maintenance of 
the United States facilities. 
(2) The permittee shall take all appropriate 
measures to prevent or mitigate any adverse envi-
ronmental impact or disruption of historic properties 
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140 
in connection with the construction, operation, and 
maintenance of the United States facilities. 
(3) For the purpose of the permit approved 
under subsection (a) (regardless of any modifications 
under subsection (d))— 
(A) the final environmental impact state-
ment issued by the Secretary of State on Au-
gust 26, 2011, satisfies all requirements of the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) and section 106 of the Na-
tional Historic Preservation Act (16 U.S.C. 
470f); 
(B) any modification required by the Sec-
retary of State to the Plan described in para-
graph (4)(A) shall not require supplementation 
of the final environmental impact statement de-
scribed in that paragraph; and 
(C) no further Federal environmental re-
view shall be required. 
(4) The construction, operation, and mainte-
nance of the facilities shall be in all material re-
spects similar to that described in the application 
described in subsection (b) and in accordance with— 
(A) the construction, mitigation, and rec-
lamation measures agreed to by the permittee 
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141 
in the Construction Mitigation and Reclamation 
Plan found in appendix B of the final environ-
mental impact statement issued by the Sec-
retary of State on August 26, 2011, subject to 
the modification described in subsection (d); 
(B) the special conditions agreed to be-
tween the permittee and the Administrator of 
the Pipeline Hazardous Materials Safety Ad-
ministration of the Department of Transpor-
tation found in appendix U of the final environ-
mental impact statement described in subpara-
graph (A); 
(C) if the modified route submitted by the 
Governor 
of 
Nebraska 
under 
subsection 
(d)(3)(B) crosses the Sand Hills region, the 
measures agreed to by the permittee for the 
Sand Hills region found in appendix H of the 
final environmental impact statement described 
in subparagraph (A); and 
(D) the stipulations identified in appendix 
S of the final environmental impact statement 
described in subparagraph (A). 
(5) Other requirements that are standard in-
dustry practice or commonly included in Federal 
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142 
permits that are similar to a permit approved under 
subsection (a). 
(d) MODIFICATION.—The permit approved under 
subsection (a) shall require— 
(1) the reconsideration of routing of the Key-
stone XL pipeline within the State of Nebraska; 
(2) a review period during which routing within 
the State of Nebraska may be reconsidered and the 
route of the Keystone XL pipeline through the State 
altered with any accompanying modification to the 
Plan described in subsection (c)(4)(A); and 
(3) the President— 
(A) to coordinate review with the State of 
Nebraska and provide any necessary data and 
reasonable technical assistance material to the 
review process required under this subsection; 
and 
(B) to approve the route within the State 
of Nebraska that has been submitted to the 
Secretary of State by the Governor of Ne-
braska. 
(e) EFFECT OF NO APPROVAL.—If the President 
does not approve the route within the State of Nebraska 
submitted by the Governor of Nebraska under subsection 
(d)(3)(B) not later than 10 days after the date of submis-
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143 
sion, the route submitted by the Governor of Nebraska 
under subsection (d)(3)(B) shall be considered approved, 
pursuant to the terms of the permit approved under sub-
section (a) that meets the requirements of subsection (c) 
and this subsection, by operation of law. 
(f) PRIVATE PROPERTY SAVINGS CLAUSE.—Nothing 
in this section alters the Federal, State, or local processes 
or conditions in effect on the date of enactment of this 
Act that are necessary to secure access from private prop-
erty owners to construct the Keystone XL pipeline. 
TITLE III—RADIOLOGICAL 
MATERIAL REPOSITORY 
SEC. 301. RADIOLOGICAL MATERIAL REPOSITORY. 
(a) REPOSITORY REQUIRED.—The Federal Govern-
ment shall site and permit at least one radiological mate-
rial geologic repository for the disposal of radiological ma-
terial. 
(b) YUCCA MOUNTAIN.— 
(1) IN GENERAL.—The repository site at Yucca 
Mountain shall remain the site for the Nation’s radi-
ological material repository following full statutory 
review of the Department of Energy’s license appli-
cation to construct the Yucca Mountain repository. 
(2) APPLICATION.—The Nuclear Regulatory 
Commission shall continue to review the Department 
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144 
of Energy’s pending license application to construct 
the repository at Yucca Mountain until a determina-
tion is made on the merits of the application. 
(c) DEADLINES.— 
(1) SUITABILITY
DETERMINATION.—Not later 
than 90 days after the enactment of this Act, the 
Nuclear Regulatory Commission shall make a deter-
mination regarding the suitability of Yucca Moun-
tain under subsection (a). 
(2) ACTION ON APPLICATION.—Not later than 
180 days after the enactment of this Act, the Nu-
clear Regulatory Commission shall approve the ap-
plication under subsection (b). 
(d) LIMITATIONS
ON AMOUNT
OF RADIOLOGICAL 
MATERIAL.—All statutory limitations on the amount of 
radiological material that can be placed in Yucca Moun-
tain are hereby removed and shall be replaced by the Nu-
clear Regulatory Commission with new limits based on sci-
entific and technical analysis of the full capacity of Yucca 
Mountain for the storage of radiological material. 
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145 
TITLE IV—RELIEF FROM REGU-
LATIONS AND PROHIBITIONS 
THAT 
CAUSE 
ARTIFICIAL 
PRICE INCREASES 
SEC. 401. ENDANGERED SPECIES ACT OF 1973 REFORM. 
The Endangered Species Act of 1973 (16 U.S.C. 
1531 et seq.) is amended— 
(1) by striking ‘‘best scientific and commercial 
data available’’ each place it appears and inserting 
‘‘best scientific and economic data available at the 
time, including analysis of the costs and benefits of 
the matter under consideration’’; and 
(2) by adding at the end the following: 
‘‘SEC. 19. SCOPE. 
‘‘Nothing in this Act shall be construed to authorize 
the use of this Act or the rules and regulations promul-
gated pursuant to this Act to regulate greenhouse gas 
emissions.’’. 
SEC. 402. REPEAL OF EPA CLIMATE CHANGE REGULATION. 
(a) GREENHOUSE GAS REGULATION UNDER CLEAN 
AIR ACT.—Section 302(g) of the Clean Air Act (42 U.S.C. 
7602(g)) is amended by adding the following at the end 
thereof: ‘‘The term ‘air pollutant’ does not include carbon 
dioxide, 
water 
vapor, 
methane, 
nitrous 
oxide, 
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146 
hydrofluorocarbons, 
perfluorocarbons, 
or 
sulfur 
hexafluoride.’’. 
(b) NO REGULATION OF CLIMATE CHANGE.—Noth-
ing in the Clean Air Act (42 U.S.C. 7401 et seq.), the 
Federal Water Pollution Control Act (33 U.S.C. 1251 et 
seq.), the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), the Endangered Species Act of 1973 
(16 U.S.C. 1531 et seq.), or the Solid Waste Disposal Act 
(42 U.S.C. 6901 et seq.), shall be treated as authorizing 
or requiring the regulation of climate change or global 
warming. 
(c) EXCEPTIONS.—Notwithstanding subsections (a) 
and (b), this section does not prohibit the following: 
(1) Implementation and enforcement of the rule 
entitled ‘‘Light-Duty Vehicle Greenhouse Gas Emis-
sion Standards and Corporate Average Fuel Econ-
omy Standards’’ (as published at 75 Fed. Reg. 
25324 (May 7, 2010) and without further revision) 
and finalization, implementation, enforcement, and 
revision of the proposed rule entitled ‘‘Greenhouse 
Gas Emissions Standards and Fuel Efficiency 
Standards for Medium- and Heavy-Duty Engines 
and Vehicles’’ published at 75 Fed. Reg. 74152 (No-
vember 30, 2010). 
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147 
(2) Statutorily authorized Federal research, de-
velopment, demonstration programs and voluntary 
programs addressing climate change. 
(3) Implementation and enforcement of title VI 
of the Clean Air Act (42 U.S.C. 7671 et seq.) to the 
extent such implementation or enforcement only in-
volves one or more class I substances or class II sub-
stances (as such terms are defined in section 601 of 
such title). 
(4) Implementation and enforcement of section 
821 (42 U.S.C. 7651k note) of Public Law 101–549 
(commonly referred to as the ‘‘Clean Air Act 
Amendments of 1990’’). 
SEC. 403. REPEAL OF FEDERAL BAN ON SYNTHETIC FUELS 
PURCHASING REQUIREMENT. 
Section 526 of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17142) is repealed. 
SEC. 404. REPEAL OF ETHANOL MANDATES. 
Section 211(o) of the Clean Air Act (42 U.S.C. 
7545(o); relating to the Renewable Fuel Program) is re-
pealed. 
TITLE V—REFINERY REFORM 
SEC. 501. REFINERY PERMITTING PROCESS. 
(a) DEFINITIONS.—In this section: 
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(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) EXPANSION.—The term ‘‘expansion’’ means 
a physical change that results in an increase in the 
capacity of a refinery. 
(3) 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). 
(4) 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. 
(5) 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. 
(6) REFINERY.— 
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149 
(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 
(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. 
(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) 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.— 
(1) IN GENERAL.—At the request of the Gov-
ernor of a State or the governing body of an Indian 
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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 the Administrator 
shall have authority, as applicable and necessary, 
to— 
(A) accept from a refiner a consolidated 
application for all permits that the refiner is re-
quired to obtain to construct and operate a re-
finery; 
(B) in consultation and cooperation with 
each Federal, State, or Indian tribal govern-
ment agency that is required to make any de-
termination to authorize the issuance of a per-
mit, establish a schedule under which each 
agency shall— 
(i) concurrently consider, to the max-
imum extent practicable, each determina-
tion to be made; and 
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151 
(ii) complete each step in the permit-
ting process; and 
(C) issue a consolidated permit that com-
bines all permits issued under the schedule es-
tablished under subparagraph (B). 
(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 
(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)(B). 
(4) DEADLINES.— 
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(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) 365 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, 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 
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153 
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)(B). 
(6) JUDICIAL REVIEW.—Any civil action for re-
view of any permit determination under a refinery 
permitting agreement shall be brought exclusively in 
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 
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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 directs the Administrator, States, 
and tribal governments to consult, to the maximum 
extent practicable, with local governments in car-
rying out this subsection. 
(11) 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— 
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(A) conduct a research and demonstration 
program to evaluate the air quality benefits of 
Fischer-Tropsch transportation fuel, including 
diesel and jet fuel; 
(B) evaluate the use of Fischer-Tropsch 
transportation fuel as a mechanism for reduc-
ing engine exhaust emissions; and 
(C) submit recommendations to Congress 
on the most effective use and associated bene-
fits of these fuels 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 fuel and prices for con-
sumers. 
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(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 and the Committee on Natural Re-
sources of the House of Representatives— 
(A) not later than 1 year after the date of 
enactment of this Act, an interim report on ac-
tions taken to carry out this subsection; and 
(B) not later than 2 years after the date 
of enactment of this Act, a final report on ac-
tions taken to carry out this subsection. 
SEC. 502. EXISTING REFINERY PERMIT APPLICATION DEAD-
LINE. 
Notwithstanding any other provision of law, applica-
tions for a permit for existing refinery applications shall 
not be considered to be timely if submitted after 120 days 
after the date of enactment of this Act. 
TITLE VI—REPEAL OF ENERGY 
TAX SUBSIDIES 
SEC. 600. AMENDMENT OF 1986 CODE. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
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section or other provision of the Internal Revenue Code 
of 1986. 
SEC. 601. REPEAL OF CREDIT FOR ALCOHOL FUEL, BIO-
DIESEL, AND ALTERNATIVE FUEL MIXTURES. 
(a) IN GENERAL.—Section 6426 is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Subparagraph (D) of section 6427(e)(6) is 
amended by striking ‘‘September 30, 2014’’ and in-
serting ‘‘September 30, 2012’’. 
(2) Paragraph (1) of section 4101(a) is amend-
ed by striking ‘‘or alcohol (as defined in section 
6426(b)(4)(A)’’. 
(3) Paragraph (2) of section 4104(a) is amend-
ed by striking ‘‘6426, or 6427(e)’’. 
(4) Subparagraph (E) of section 7704(d)(1) is 
amended— 
(A) by inserting ‘‘(as in effect on the day 
before the date of the enactment of the Energy 
Exploration and Production to Achieve National 
Demand Act)’’ after ‘‘of section 6426’’, and 
(B) by inserting ‘‘(as so in effect)’’ after 
‘‘section 6426(b)(4)(A)’’. 
(5) Paragraph (1) of section 9503(b) is amend-
ed by striking the second sentence. 
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(c) CLERICAL AMENDMENT.—The table of sections 
for subchapter B of chapter 65 is amended by striking 
the item relating to section 6426. 
(d) EFFECTIVE.—The amendments made by this sec-
tion shall apply with respect to fuel sold and used after 
December 31, 2012. 
SEC. 602. REPEAL OF CREDIT FOR CERTAIN PLUG-IN ELEC-
TRIC VEHICLES. 
(a) IN GENERAL.—Section 30 is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (3) of section 24(b) is amended 
by striking ‘‘, 30’’. 
(2) Clause (ii) of section 25(e)(1)(C) is amend-
ed by striking ‘‘, 30’’. 
(3) Paragraph (2) of section 25B(g) is amended 
by striking ‘‘, 30’’. 
(4) Paragraph (1) of section 26(a) is amended 
by striking ‘‘, 30’’. 
(5) Subclause (VI) of section 48C(c)(1)(A)(i) is 
amended by inserting ‘‘(as in effect on the day be-
fore the date of the enactment of the Energy Explo-
ration and Production to Achieve National Demand 
Act)’’ after ‘‘section 30(d)’’. 
(6) Paragraph (3) of section 179A(c) is amend-
ed by inserting ‘‘(as in effect on the day before the 
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159 
date of the enactment of the Energy Freedom and 
Economic Prosperity Act)’’ after section ‘‘30(c)’’. 
(7) Subsection (a) of section 1016 is amended 
by striking paragraph (25) and by redesignating 
paragraphs (26) through (37) as paragraphs (25) 
through (36), respectively. 
(8) Subsection (m) of section 6501 is amended 
by striking ‘‘30(e)(6)’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
is amended by striking the item relating to section 30. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2011. 
SEC. 603. EARLY TERMINATION OF CREDIT FOR QUALIFIED 
FUEL CELL MOTOR VEHICLES. 
(a) IN GENERAL.—Section 30B is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Subparagraph (A) of section 24(b)(3) is 
amended by striking ‘‘, 30B’’. 
(2) Clause (ii) of section 25(e)(1)(C) is amend-
ed by striking ‘‘, 30B’’. 
(3) Paragraph (2) of section 25B(g) is amended 
by striking ‘‘, 30B,’’. 
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(4) Paragraph (1) of section 26(a) is amended 
by striking ‘‘, 30B’’. 
(5) Subsection (b) of section 38 is amended by 
striking paragraph (25). 
(6) Subsection (a) of section 1016, as amended 
by section 602 of this Act, is amended by striking 
paragraph (33) and by redesignating paragraphs 
(34), (35), and (36) as paragraphs (33), (34), and 
(35), respectively. 
(7) Paragraph (2) of section 1400C(d) is 
amended by striking ‘‘, 30B’’. 
(8) Subsection (m) of section 6501 is amended 
by striking ‘‘, 30B(h)(9)’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
is amended by striking the item relating to section 30B. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2012. 
SEC. 604. REPEAL OF ALTERNATIVE FUEL VEHICLE RE-
FUELING PROPERTY CREDIT. 
(a) IN GENERAL.—Section 30C is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of section 38 is amended by 
striking paragraph (26). 
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(2) Paragraph (3) of section 55(c) is amended 
by striking ‘‘, 30C(d)(2),’’. 
(3) Subsection (a) of section 1016, as amended 
by sections 602 and 603 of this Act, is amended by 
striking paragraph (33) and by redesignating para-
graph (34) and (35) as paragraphs (33) and (34), 
respectively. 
(4) Subsection (m) of section 6501 is amended 
by striking ‘‘, 30C(e)(5)’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
is amended by striking the item relating to section 30C. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2012. 
SEC. 605. REPEAL OF CREDIT FOR ALCOHOL USED AS 
FUEL. 
(a) IN GENERAL.—Section 40 is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of section 38 is amended by 
striking paragraph (3). 
(2) Subsection (c) of section 196 is amended by 
striking paragraph (3) and by redesignating para-
graphs (4) through (14) as paragraphs (3) through 
(13), respectively. 
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(3) Paragraph (1) of section 4101(a) is amend-
ed by striking ‘‘, and every person producing cellu-
losic biofuel (as defined in section 40(b)(6)(E))’’. 
(4) Paragraph (1) of section 4104(a) is amend-
ed by striking ‘‘, 40’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2012. 
SEC. 606. REPEAL OF CREDIT FOR BIODIESEL AND RENEW-
ABLE DIESEL USED AS FUEL. 
(a) IN GENERAL.—Section 40A is repealed. 
(b) CONFORMING AMENDMENT.— 
(1) Subsection (b) of section 38 is amended by 
striking paragraph (17). 
(2) Section 87 is repealed. 
(3) Subsection (c) of section 196, as amended 
by section 605 of this Act, is amended by striking 
paragraph (11) and by redesignating paragraphs 
(11), (12), and (13) as paragraphs (10), (11), and 
(12), respectively. 
(4) Paragraph (1) of section 4101(a) is amend-
ed by striking ‘‘, every person producing or import-
ing biodiesel (as defined in section 40A(d)(1)’’. 
(5) Paragraph (1) of section 4104(a) is amend-
ed by striking ‘‘, and 40A’’. 
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(6) Subparagraph (E) of section 7704(d)(1) is 
amended by inserting ‘‘(as so in effect)’’ after ‘‘sec-
tion 40A(d)(1)’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by striking the item relating to section 40A. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel produced, and sold or used, 
after December 31, 2011. 
SEC. 607. REPEAL OF ENHANCED OIL RECOVERY CREDIT. 
(a) IN GENERAL.—Section 43 is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of section 38 is amended by 
striking paragraph (6). 
(2) Paragraph (4) of section 45Q(d) is amended 
by inserting ‘‘(as in effect on the day before the date 
of the enactment of the Energy Exploration and 
Production to Achieve National Demand Act)’’ after 
‘‘section 43(c)(2)’’. 
(3) Subsection (c) of section 196, as amended 
by sections 605 and 606 of this Act, is amended by 
striking paragraph (5) and by redesignating para-
graphs (6) through (12) as paragraphs (5) through 
(11), respectively. 
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(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by striking the item relating to section 43. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to costs paid or incurred in taxable 
years beginning after December 31, 2012. 
SEC. 608. TERMINATION OF CREDIT FOR ELECTRICITY 
PRODUCED FROM CERTAIN RENEWABLE RE-
SOURCES. 
(a) IN GENERAL.—Subsection (d) of section 45 is 
amended— 
(1) by striking ‘‘2013’’ in paragraph (1) and in-
serting ‘‘2012’’, and 
(2) by striking ‘‘2014’’ each place it appears in 
paragraphs (2), (3), (4), (6), (7), (9), and (11) and 
inserting ‘‘2012’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2012. 
SEC. 609. REPEAL OF CREDIT FOR PRODUCING OIL AND 
GAS FROM MARGINAL WELLS. 
(a) IN GENERAL.—Section 45I is repealed. 
(b) CONFORMING AMENDMENT.—Subsection (b) of 
section 38 is amended by striking paragraph (19). 
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(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by striking the item relating to section 45I. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to production in taxable years be-
ginning after December 31, 2012. 
SEC. 610. TERMINATION OF CREDIT FOR PRODUCTION 
FROM ADVANCED NUCLEAR POWER FACILI-
TIES. 
(a) IN GENERAL.—Subparagraph (B) of section 
45J(d)(1) is amended by striking ‘‘January 1, 2021’’ and 
inserting ‘‘January 1, 2013’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2012. 
SEC. 611. REPEAL OF CREDIT FOR CARBON DIOXIDE SE-
QUESTRATION. 
(a) IN GENERAL.—Section 45Q is repealed. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to carbon dioxide captured after 
December 31, 2012. 
SEC. 612. TERMINATION OF ENERGY CREDIT. 
(a) IN GENERAL.—Section 48 is amended— 
(1) by striking ‘‘January 1, 2017’’ each place 
it appears and inserting ‘‘January 1, 2013’’, 
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(2) by striking ‘‘December 31, 2016’’ each 
place it appears and inserting ‘‘December 31, 
2012’’, and 
(3) by striking ‘‘2012, or 2013’’ in subsection 
(a)(5)(C)(ii) and inserting ‘‘or 2012’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2012. 
SEC. 613. REPEAL OF QUALIFYING ADVANCED COAL 
PROJECT. 
(a) IN GENERAL.—Section 48A is repealed. 
(b) CONFORMING
AMENDMENT.—Section 46 is 
amended by striking paragraph (3) and by redesignating 
paragraphs (4), (5), and (6) as paragraphs (3), (4), and 
(5), respectively. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart E of part IV of subchapter A of chapter 1 
is amended by striking the item relating to section 48A. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2012. 
SEC. 614. REPEAL OF QUALIFYING GASIFICATION PROJECT 
CREDIT. 
(a) IN GENERAL.—Section 48B is repealed. 
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(b) CONFORMING
AMENDMENT.—Section 46, as 
amended by section 613, is amended by striking para-
graph (3) and by redesignating paragraphs (4) and (5) 
as paragraphs (3) and (4), respectively. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart E of part IV of subchapter A of chapter 1 
is amended by striking the item relating to section 48B. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2012. 
SEC. 615. REPEAL OF AMERICAN RECOVERY AND REIN-
VESTMENT ACT OF 2009 ENERGY GRANT PRO-
GRAM. 
(a) IN GENERAL.—Section 1603 of division B of the 
American Recovery and Reinvestment Act of 2009 is re-
pealed. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2011. 
TITLE VII—REGULATORY 
RELIEF 
SEC. 701. LEGISLATIVE STAY. 
(a) ESTABLISHMENT OF STANDARDS.—In place of 
the rules specified in subsection (b), and notwithstanding 
the date by which such rules would otherwise be required 
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to be promulgated, the Administrator of the Environ-
mental Protection Agency (in this title referred to as the 
‘‘Administrator’’) shall— 
(1) propose regulations for industrial, commer-
cial, and institutional boilers and process heaters, 
and commercial and industrial solid waste inciner-
ator units, subject to any of the rules specified in 
subsection (b)— 
(A) establishing maximum achievable con-
trol technology standards, performance stand-
ards, and other requirements under sections 
112 and 129, as applicable, of the Clean Air 
Act (42 U.S.C. 7412, 7429); and 
(B) identifying non-hazardous secondary 
materials that, when used as fuels or ingredi-
ents in combustion units of such boilers, proc-
ess heaters, or incinerator units are solid waste 
under the Solid Waste Disposal Act (42 U.S.C. 
6901 et seq.; commonly referred to as the ‘‘Re-
source Conservation and Recovery Act’’) for 
purposes of determining the extent to which 
such combustion units are required to meet the 
emissions standards under section 112 of the 
Clean Air Act (42 U.S.C. 7412) or the emission 
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standards under section 129 of such Act (42 
U.S.C. 7429); and 
(2) finalize the regulations on the date that is 
15 months after the date of the enactment of this 
Act. 
(b) STAY OF EARLIER RULES.—The following rules 
are of no force or effect, shall be treated as though such 
rules had never taken effect, and shall be replaced as de-
scribed in subsection (a): 
(1) ‘‘National Emission Standards for Haz-
ardous Air Pollutants for Major Sources: Industrial, 
Commercial, and Institutional Boilers and Process 
Heaters’’, published at 76 Fed. Reg. 15608 (March 
21, 2011). 
(2) ‘‘National Emission Standards for Haz-
ardous Air Pollutants for Area Sources: Industrial, 
Commercial, and Institutional Boilers’’, published at 
76 Fed. Reg. 15554 (March 21, 2011). 
(3) ‘‘Standards of Performance for New Sta-
tionary Sources and Emission Guidelines for Exist-
ing Sources: Commercial and Industrial Solid Waste 
Incineration Units’’, published at 76 Fed. Reg. 
15704 (March 21, 2011). 
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(4) ‘‘Identification of Non-Hazardous Sec-
ondary Materials That Are Solid Waste’’, published 
at 76 Fed. Reg. 15456 (March 21, 2011). 
(c) INAPPLICABILITY
OF CERTAIN PROVISIONS.— 
With respect to any standard required by subsection (a) 
to be promulgated in regulations under section 112 of the 
Clean Air Act (42 U.S.C. 7412), the provisions of sub-
sections (g)(2) and (j) of such section 112 shall not apply 
prior to the effective date of the standard specified in such 
regulations. 
SEC. 702. COMPLIANCE DATES. 
(a) ESTABLISHMENT OF COMPLIANCE DATES.—For 
each regulation promulgated pursuant to section 701, the 
Administrator— 
(1) shall establish a date for compliance with 
standards and requirements under such regulation 
that is, notwithstanding any other provision of law, 
not earlier than 5 years after the effective date of 
the regulation; and 
(2) in proposing a date for such compliance, 
shall take into consideration— 
(A) the costs of achieving emissions reduc-
tions; 
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(B) any non-air quality health and environ-
mental impact and energy requirements of the 
standards and requirements; 
(C) the feasibility of implementing the 
standards and requirements, including the time 
needed to— 
(i) obtain necessary permit approvals; 
and 
(ii) procure, install, and test control 
equipment; 
(D) the availability of equipment, sup-
pliers, and labor, given the requirements of the 
regulation and other proposed or finalized regu-
lations of the Environmental Protection Agency; 
and 
(E) potential net employment impacts. 
(b) NEW SOURCES.—The date on which the Adminis-
trator proposes a regulation pursuant to section 701(a)(1) 
establishing an emission standard under section 112 or 
129 of the Clean Air Act (42 U.S.C. 7412, 7429) shall 
be treated as the date on which the Administrator first 
proposes such a regulation for purposes of applying the 
definition of a new source under section 112(a)(4) of such 
Act (42 U.S.C. 7412(a)(4)) or the definition of a new solid 
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waste incineration unit under section 129(g)(2) of such 
Act (42 U.S.C. 7429(g)(2)). 
(c) RULE OF CONSTRUCTION.—Nothing in this title 
shall be construed to restrict or otherwise affect the provi-
sions of paragraphs (3)(B) and (4) of section 112(i) of 
the Clean Air Act (42 U.S.C. 7412(i)). 
SEC. 703. ENERGY RECOVERY AND CONSERVATION. 
Notwithstanding any other provision of law, and to 
ensure the recovery and conservation of energy consistent 
with the Solid Waste Disposal Act (42 U.S.C. 6901 et 
seq.; commonly referred to as the ‘‘Resource Conservation 
and Recovery Act’’), in promulgating rules under section 
701(a) addressing the subject matter of the rules specified 
in paragraphs (3) and (4) of section 701(b), the Adminis-
trator— 
(1) shall adopt the definitions of the terms 
‘‘commercial and industrial solid waste incineration 
unit’’, ‘‘commercial and industrial waste’’, and ‘‘con-
tained gaseous material’’ in the rule entitled ‘‘Stand-
ards of Performance for New Stationary Sources 
and Emission Guidelines for Existing Sources: Com-
mercial and Industrial Solid Waste Incineration 
Units’’, published at 65 Fed. Reg. 75338 (December 
1, 2000); and 
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(2) shall identify non-hazardous secondary ma-
terial to be solid waste only if— 
(A) the material meets such definition of 
commercial and industrial waste; or 
(B) if the material is a gas, it meets such 
definition of contained gaseous material. 
SEC. 704. OTHER PROVISIONS. 
(a) ESTABLISHMENT OF STANDARDS ACHIEVABLE IN 
PRACTICE.—In promulgating rules under section 701(a), 
the Administrator shall ensure that emissions standards 
for existing and new sources established under section 112 
or 129 of the Clean Air Act (42 U.S.C. 7412, 7429), as 
applicable, can be met under actual operating conditions 
consistently and concurrently with emission standards for 
all other air pollutants regulated by the rule for the source 
category, taking into account variability in actual source 
performance, source design, fuels, inputs, controls, ability 
to measure the pollutant emissions, and operating condi-
tions. 
(b) REGULATORY ALTERNATIVES.—For each regula-
tion promulgated pursuant to section 701(a), from among 
the range of regulatory alternatives authorized under the 
Clean Air Act (42 U.S.C. 7401 et seq.) including work 
practice standards under section 112(h) of such Act (42 
U.S.C. 7412(h)), the Administrator shall impose the least 
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174 
burdensome, consistent with the purposes of such Act and 
Executive Order No. 13563 published at 76 Fed. Reg. 
3821 (January 21, 2011). 
(c) DEDUCTION FOR CAPITAL EXPENDITURES RE-
LATING TO ENERGY PROPERTY.— 
(1) IN GENERAL.— 
(A) IN GENERAL.—Part VI of subchapter 
B of chapter 1 is amended by inserting after 
section 179E the following new section: 
‘‘SEC. 179F. ELECTION TO EXPENSE PROPERTY USED IN 
THE PRODUCTION OF ENERGY. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the cost of any property used in the produc-
tion of energy as an expense which is not chargeable to 
capital account. Any cost so treated shall be allowed as 
a deduction for the taxable year in which the property is 
placed in service. 
‘‘(b) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall be made on the tax-
payer’s return of the tax imposed by this chapter for 
the taxable year. Such election shall specify the 
property to which the election applies and shall be 
made in such manner as the Secretary may by regu-
lations prescribe. 
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‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section may not be revoked except 
with the consent of the Secretary. 
‘‘(c) PROPERTY USED IN THE PRODUCTION OF EN-
ERGY.—For purposes of this section, the term ‘property 
used in the production of energy’ means property— 
‘‘(1) used in the production of energy, 
‘‘(2) the original use of which commences with 
the taxpayer, and 
‘‘(3) which is placed in service by the taxpayer 
after the date of the enactment of this section. 
‘‘(d) COORDINATION.—No expenditures shall be 
taken into account under subsection (a) with respect to 
the portion of the cost of any property taken into account 
in determining a credit or deduction under any other sec-
tion of this chapter. 
‘‘(e) BASIS REDUCTION.—For purposes of this sub-
title, if a deduction is allowed under this section with re-
spect to any property, the basis of such property shall be 
reduced by the amount of the deduction so allowed. 
‘‘(f) REPORTING.—No deduction shall be allowed 
under subsection (a) to any taxpayer for any taxable year 
unless such taxpayer files with the Secretary a report con-
taining such information with respect to the operation of 
the mines of the taxpayer as the Secretary shall require.’’. 
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176 
(B) Section 1016(a) is amended by strik-
ing ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) 
and inserting ‘‘, and’’, and by adding at the end 
the following new paragraph: 
‘‘(38) to the extent provided in section 
179F(e).’’. 
(C) Section 263(a)(1) of the Internal Rev-
enue Code of 1986 (relating to capital expendi-
tures) is amended by striking ‘‘or’’ at the end 
of subparagraph (K), by striking the period at 
the end of paragraph (L) and inserting ‘‘, or’’, 
and by adding at the end the following new sub-
paragraph: 
‘‘(M) expenditures for which a deduction is 
allowed under section 179F.’’. 
(D) Section 1245(a) of such Code is 
amended by inserting ‘‘179F,’’ after ‘‘179E,’’ 
both places it appears in paragraphs (2)(C) and 
(3)(C). 
(E) The table of sections for part VI of 
subchapter B of chapter 1 of such Code is 
amended by inserting after the item relating to 
section 179E the following new item: 
‘‘Sec. 179F. Election to expense property used in the production of energy.’’. 
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177 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2012. 
SEC. 705. MANAGEMENT AND DISPOSAL OF COAL COMBUS-
TION RESIDUALS. 
(a) AMENDMENT TO SUBTITLE D OF THE SOLID 
WASTE DISPOSAL ACT.—Subtitle D of the Solid Waste 
Disposal Act (42 U.S.C. 6941 et seq.) is amended by add-
ing at the end the following new section: 
‘‘SEC. 4011. MANAGEMENT AND DISPOSAL OF COAL COM-
BUSTION RESIDUALS. 
‘‘(a) STATE PERMIT PROGRAMS FOR COAL COMBUS-
TION RESIDUALS.—Each State may adopt and implement 
a coal combustion residuals permit program. 
‘‘(b) STATE ACTIONS.— 
‘‘(1) NOTIFICATION.—Not later than 6 months 
after the date of enactment of this section (except 
as provided by the deadline identified under sub-
section (d)(2)(B)), the Governor of each State shall 
notify the Administrator, in writing, whether such 
State will adopt and implement a coal combustion 
residuals permit program. 
‘‘(2) CERTIFICATION.— 
‘‘(A) IN
GENERAL.—Not later than 36 
months after the date of enactment of this sec-
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tion (except as provided in subsections (f)(1)(A) 
and (f)(1)(C)), in the case of a State that has 
notified the Administrator that it will imple-
ment a coal combustion residuals permit pro-
gram, the head of the lead State agency respon-
sible for implementing the coal combustion re-
siduals permit program shall submit to the Ad-
ministrator a certification that such coal com-
bustion residuals permit program meets the 
specifications described in subsection (c)(1). 
‘‘(B) CONTENTS.—A certification sub-
mitted under this paragraph shall include— 
‘‘(i) a letter identifying the lead State 
agency responsible for implementing the 
coal combustion residuals permit program, 
signed by the head of such agency; 
‘‘(ii) identification of any other State 
agencies involved with the implementation 
of the coal combustion residuals permit 
program; 
‘‘(iii) a narrative description that pro-
vides an explanation of how the State will 
ensure that the coal combustion residuals 
permit program meets the requirements of 
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this section, including a description of the 
State’s— 
‘‘(I) process to inspect or other-
wise determine compliance with such 
permit program; 
‘‘(II) process to enforce the re-
quirements of such permit program; 
and 
‘‘(III) public participation proc-
ess for the promulgation, amendment, 
or repeal of regulations for, and the 
issuance of permits under, such per-
mit program; 
‘‘(iv) a legal certification that the 
State has, at the time of certification, fully 
effective statutes or regulations necessary 
to implement a coal combustion residuals 
permit program that meets the specifica-
tions described in subsection (c)(1); and 
‘‘(v) copies of State statutes and regu-
lations described in clause (iv). 
‘‘(3) MAINTENANCE OF 4005(c) OR 3006 PRO-
GRAM.—In order to adopt or implement a coal com-
bustion residuals permit program under this section 
(including pursuant to subsection (f)), the State 
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agency responsible for implementing a coal combus-
tion residuals permit program in a State shall main-
tain an approved program under section 4005(c) or 
an authorized program under section 3006. 
‘‘(c) PERMIT PROGRAM SPECIFICATIONS.— 
‘‘(1) MINIMUM REQUIREMENTS.—The specifica-
tions described in this subsection for a coal combus-
tion residuals permit program are as follows: 
‘‘(A) The revised criteria described in 
paragraph (2) shall apply to a coal combustion 
residuals permit program, except as provided in 
paragraph (3). 
‘‘(B) Each structure shall be, in accord-
ance with generally accepted engineering stand-
ards for the structural integrity of such struc-
tures, designed, constructed, and maintained to 
provide for containment of the maximum vol-
umes of coal combustion residuals appropriate 
for the structure. If a structure is determined 
by the head of the agency responsible for imple-
menting the coal combustion residuals permit 
program to be deficient, the head of such agen-
cy has authority to require action to correct the 
deficiency according to a schedule determined 
by such agency. If the identified deficiency is 
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181 
not corrected according to such schedule, the 
head of such agency has authority to require 
that the structure close in accordance with sub-
section (h). 
‘‘(C) The coal combustion residuals permit 
program shall apply the revised criteria promul-
gated pursuant to section 4010(c) for location, 
design, groundwater monitoring, corrective ac-
tion, financial assurance, closure, and post-clo-
sure described in paragraph (2) and the speci-
fications described in this paragraph to surface 
impoundments. 
‘‘(D) If a structure that is classified as 
posing a high hazard potential pursuant to the 
guidelines published by the Federal Emergency 
Management Agency entitled ‘Federal Guide-
lines for Dam Safety: Hazard Potential Classi-
fication System for Dams’ (FEMA Publication 
Number 333) is determined by the head of the 
agency responsible for implementing the coal 
combustion residuals permit program to be defi-
cient with respect to the structural integrity re-
quirement in subparagraph (B), the head of 
such agency has authority to require action to 
correct the deficiency according to a schedule 
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182 
determined by such agency. If the identified de-
ficiency is not corrected according to such 
schedule, the head of such agency has authority 
to require that the structure close in accordance 
with subsection (h). 
‘‘(E) New structures that first receive coal 
combustion residuals after the date of enact-
ment of this section shall be constructed with a 
base located a minimum of two feet above the 
upper limit of the natural water table. 
‘‘(F) In the case of a coal combustion re-
siduals permit program implemented by a 
State, the State has the authority to inspect 
structures and implement and enforce such per-
mit program. 
‘‘(G) In the case of a coal combustion re-
siduals permit program implemented by a 
State, the State has the authority to address 
wind dispersal of dust from coal combustion re-
siduals by requiring dust control measures, as 
determined appropriate by the head of the lead 
State agency responsible for implementing the 
coal combustion residuals permit program. 
‘‘(2) REVISED CRITERIA.—The revised criteria 
described in this paragraph are— 
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183 
‘‘(A) the revised criteria for design, 
groundwater monitoring, corrective action, clo-
sure, and post-closure, for structures, includ-
ing— 
‘‘(i) for new structures, and lateral ex-
pansions of existing structures, that first 
receive coal combustion residuals after the 
date of enactment of this section, the re-
vised criteria regarding design require-
ments described in section 258.40 of title 
40, Code of Federal Regulations; and 
‘‘(ii) for all structures that receive 
coal combustion residuals after the date of 
enactment of this section, the revised cri-
teria regarding groundwater monitoring 
and corrective action requirements de-
scribed in subpart E of part 258 of title 
40, Code of Federal Regulations, except 
that, for the purposes of this paragraph, 
such revised criteria shall also include— 
‘‘(I) for the purposes of detection 
monitoring, the constituents boron, 
chloride, conductivity, fluoride, mer-
cury, pH, sulfate, sulfide, and total 
dissolved solids; and 
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184 
‘‘(II) for the purposes of assess-
ment monitoring, the constituents alu-
minum, boron, chloride, fluoride, iron, 
manganese, molybdenum, pH, sulfate, 
and total dissolved solids; 
‘‘(B) the revised criteria for location re-
strictions described in— 
‘‘(i) for new structures, and lateral ex-
pansions of existing structures, that first 
receive coal combustion residuals after the 
date of enactment of this section, sections 
258.11 through 258.15 of title 40, Code of 
Federal Regulations; and 
‘‘(ii) for existing structures that re-
ceive coal combustion residuals after the 
date of enactment of this section, sections 
258.11 and 258.15 of title 40, Code of 
Federal Regulations; 
‘‘(C) for all structures that receive coal 
combustion residuals after the date of enact-
ment of this section, the revised criteria for air 
quality described in section 258.24 of title 40, 
Code of Federal Regulations; 
‘‘(D) for all structures that receive coal 
combustion residuals after the date of enact-
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185 
ment of this section, the revised criteria for fi-
nancial assurance described in subpart G of 
part 258 of title 40, Code of Federal Regula-
tions; 
‘‘(E) for all structures that receive coal 
combustion residuals after the date of enact-
ment of this section, the revised criteria for sur-
face water described in section 258.27 of title 
40, Code of Federal Regulations; 
‘‘(F) for all structures that receive coal 
combustion residuals after the date of enact-
ment of this section, the revised criteria for rec-
ordkeeping described in section 258.29 of title 
40, Code of Federal Regulations; 
‘‘(G) for landfills and other land-based 
units, other than surface impoundments, that 
receive coal combustion residuals after the date 
of enactment of this section, the revised criteria 
for run-on and run-off control systems de-
scribed in section 258.26 of title 40, Code of 
Federal Regulations; and 
‘‘(H) for surface impoundments that re-
ceive coal combustion residuals after the date of 
enactment of this section, the revised criteria 
for run-off control systems described in section 
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186 
258.26(a)(2) of title 40, Code of Federal Regu-
lations. 
‘‘(3) APPLICABILITY
OF
CERTAIN
REQUIRE-
MENTS.—A State may determine that one or more 
of the requirements of the revised criteria described 
in paragraph (2) is not needed for the management 
of coal combustion residuals in that State, and may 
decline to apply such requirement as part of its coal 
combustion residuals permit program. If a State de-
clines to apply a requirement under this paragraph, 
the State shall include in the certification under sub-
section (b)(2) a description of such requirement and 
the reasons such requirement is not needed in the 
State. If the Administrator determines that a State 
determination under this paragraph does not accu-
rately reflect the needs for the management of coal 
combustion residuals in the State, the Administrator 
may treat such State determination as a deficiency 
under subsection (d). 
‘‘(d) WRITTEN NOTICE AND OPPORTUNITY TO REM-
EDY.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
provide to a State written notice and an opportunity 
to remedy deficiencies in accordance with paragraph 
(2) if at any time the State— 
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187 
‘‘(A) does not satisfy the notification re-
quirement under subsection (b)(1); 
‘‘(B) has not submitted a certification 
under subsection (b)(2); 
‘‘(C) does not satisfy the maintenance re-
quirement under subsection (b)(3); or 
‘‘(D) is not implementing a coal combus-
tion residuals permit program that meets the 
specifications described in subsection (c)(1). 
‘‘(2) CONTENTS OF NOTICE; DEADLINE FOR RE-
SPONSE.—A notice provided under this subsection 
shall— 
‘‘(A) include findings of the Administrator 
detailing any applicable deficiencies in— 
‘‘(i) compliance by the State with the 
notification requirement under subsection 
(b)(1); 
‘‘(ii) compliance by the State with the 
certification requirement under subsection 
(b)(2); 
‘‘(iii) compliance by the State with the 
maintenance requirement under subsection 
(b)(3); and 
‘‘(iv) the State coal combustion re-
siduals permit program in meeting the 
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specifications 
described 
in 
subsection 
(c)(1); and 
‘‘(B) identify, in collaboration with the 
State, a reasonable deadline, which shall be not 
sooner than 6 months after the State receives 
the notice, by which the State shall remedy the 
deficiencies detailed under subparagraph (A). 
‘‘(e) IMPLEMENTATION BY ADMINISTRATOR.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
implement a coal combustion residuals permit pro-
gram for a State only in the following cir-
cumstances: 
‘‘(A) If the Governor of such State notifies 
the Administrator under subsection (b)(1) that 
such State will not adopt and implement such 
a permit program. 
‘‘(B) If such State has received a notice 
under subsection (d) and, after any review 
brought by the State under section 7006, fails, 
by the deadline identified in such notice under 
subsection (d)(2)(B), to remedy the deficiencies 
detailed in such notice under subsection 
(d)(2)(A). 
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189 
‘‘(C) If such State informs the Adminis-
trator, in writing, that such State will no longer 
implement such a permit program. 
‘‘(2) REQUIREMENTS.—If the Administrator 
implements a coal combustion residuals permit pro-
gram for a State under paragraph (1), such permit 
program shall consist of the specifications described 
in subsection (c)(1). 
‘‘(3) ENFORCEMENT.—If the Administrator im-
plements a coal combustion residuals permit pro-
gram for a State under paragraph (1), the authori-
ties referred to in section 4005(c)(2)(A) shall apply 
with respect to coal combustion residuals and struc-
tures and the Administrator may use such authori-
ties to inspect, gather information, and enforce the 
requirements of this section in the State. 
‘‘(f) STATE CONTROL AFTER IMPLEMENTATION BY 
ADMINISTRATOR.— 
‘‘(1) STATE CONTROL.— 
‘‘(A) NEW ADOPTION AND IMPLEMENTA-
TION BY STATE.—For a State for which the 
Administrator is implementing a coal combus-
tion residuals permit program under subsection 
(e)(1)(A), the State may adopt and implement 
such a permit program by— 
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190 
‘‘(i) notifying the Administrator that 
the State will adopt and implement such a 
permit program; 
‘‘(ii) not later than 6 months after the 
date of such notification, submitting to the 
Administrator a certification under sub-
section (b)(2); and 
‘‘(iii) receiving from the Adminis-
trator— 
‘‘(I) a determination that the 
State coal combustion residuals per-
mit program meets the specifications 
described in subsection (c)(1); and 
‘‘(II) a timeline for transition of 
control of the coal combustion residu-
als permit program. 
‘‘(B) REMEDYING DEFICIENT PERMIT PRO-
GRAM.—For a State for which the Adminis-
trator is implementing a coal combustion re-
siduals 
permit 
program 
under 
subsection 
(e)(1)(B), the State may adopt and implement 
such a permit program by— 
‘‘(i) remedying the deficiencies de-
tailed in the notice provided under sub-
section (d)(2)(A); and 
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191 
‘‘(ii) receiving from the Adminis-
trator— 
‘‘(I) a determination that the de-
ficiencies detailed in such notice have 
been remedied; and 
‘‘(II) a timeline for transition of 
control of the coal combustion residu-
als permit program. 
‘‘(C) RESUMPTION
OF
IMPLEMENTATION 
BY STATE.—For a State for which the Adminis-
trator is implementing a coal combustion re-
siduals 
permit 
program 
under 
subsection 
(e)(1)(C), the State may adopt and implement 
such a permit program by— 
‘‘(i) notifying the Administrator that 
the State will adopt and implement such a 
permit program; 
‘‘(ii) not later than 6 months after the 
date of such notification, submitting to the 
Administrator a certification under sub-
section (b)(2); and 
‘‘(iii) receiving from the Adminis-
trator— 
‘‘(I) a determination that the 
State coal combustion residuals per-
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192 
mit program meets the specifications 
described in subsection (c)(1); and 
‘‘(II) a timeline for transition of 
control of the coal combustion residu-
als permit program. 
‘‘(2) REVIEW OF DETERMINATION.— 
‘‘(A) DETERMINATION
REQUIRED.—The 
Administrator shall make a determination 
under paragraph (1) not later than 90 days 
after the date on which the State submits a cer-
tification 
under 
paragraph 
(1)(A)(ii) 
or 
(1)(C)(ii), or notifies the Administrator that the 
deficiencies have been remedied pursuant to 
paragraph (1)(B)(i), as applicable. 
‘‘(B) REVIEW.—A State may obtain a re-
view of a determination by the Administrator 
under paragraph (1) as if such determination 
was a final regulation for purposes of section 
7006. 
‘‘(3) IMPLEMENTATION DURING TRANSITION.— 
‘‘(A) EFFECT ON ACTIONS AND ORDERS.— 
Actions taken or orders issued pursuant to a 
coal combustion residuals permit program shall 
remain in effect if— 
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‘‘(g) EFFECT ON DETERMINATION UNDER 4005(c) 
OR 3006.—The Administrator shall not consider the im-
plementation of a coal combustion residuals permit pro-
gram by the Administrator under subsection (e) in making 
a determination of approval for a permit program or other 
system of prior approval and conditions under section 
4005(c) or of authorization for a program under section 
3006. 
‘‘(h) CLOSURE.—If it is determined, pursuant to a 
coal combustion residuals permit program, that a struc-
ture should close, the time period and method for the clo-
sure of such structure shall be set forth in a closure plan 
that establishes a deadline for completion and that takes 
into account the nature and the site-specific characteris-
tics of the structure to be closed. In the case of a surface 
impoundment, the closure plan shall require, at a min-
imum, the removal of liquid and the stabilization of re-
maining waste, as necessary to support the final cover. 
‘‘(i) AUTHORITY.— 
‘‘(1) STATE AUTHORITY.—Nothing in this sec-
tion shall preclude or deny any right of any State to 
adopt or enforce any regulation or requirement re-
specting coal combustion residuals that is more 
stringent or broader in scope than a regulation or 
requirement under this section. 
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195 
‘‘(2) AUTHORITY OF THE ADMINISTRATOR.— 
‘‘(A) IN GENERAL.—Except as provided in 
subsection (e) of this section and section 6005 
of this title, the Administrator shall, with re-
spect to the regulation of coal combustion re-
siduals, defer to the States pursuant to this sec-
tion. 
‘‘(B) IMMINENT HAZARD.—Nothing in this 
section shall be construed to affect the author-
ity of the Administrator under section 7003 
with respect to coal combustion residuals. 
‘‘(C) TECHNICAL AND ENFORCEMENT AS-
SISTANCE
ONLY
UPON
REQUEST.—Upon re-
quest from the head of a lead State agency that 
is implementing a coal combustion residuals 
permit program, the Administrator may provide 
to such State agency only the technical or en-
forcement assistance requested. 
‘‘(3) CITIZEN SUITS.—Nothing in this section 
shall be construed to affect the authority of a person 
to commence a civil action in accordance with sec-
tion 7002. 
‘‘(j) MINE RECLAMATION ACTIVITIES.—A coal com-
bustion residuals permit program implemented under sub-
section (e) by the Administrator shall not apply to the uti-
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196 
lization, placement, and storage of coal combustion residu-
als at surface mining and reclamation operations. 
‘‘(k) DEFINITIONS.—In this section: 
‘‘(1) 
COAL
COMBUSTION
RESIDUALS.—The 
term ‘coal combustion residuals’ means— 
‘‘(A) the solid wastes listed in section 
3001(b)(3)(A)(i), including recoverable mate-
rials from such wastes; 
‘‘(B) coal combustion wastes that are co- 
managed with wastes produced in conjunction 
with the combustion of coal, provided that such 
wastes are not segregated and disposed of sepa-
rately from the coal combustion wastes and 
comprise a relatively small proportion of the 
total wastes being disposed in the structure; 
‘‘(C) fluidized bed combustion wastes; 
‘‘(D) wastes from the co-burning of coal 
with nonhazardous secondary materials pro-
vided that coal makes up at least 50 percent of 
the total fuel burned; and 
‘‘(E) wastes from the co-burning of coal 
with materials described in subparagraph (A) 
that are recovered from monofills. 
‘‘(2) COAL
COMBUSTION
RESIDUALS
PERMIT 
PROGRAM.—The term ‘coal combustion residuals 
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197 
permit program’ means a permit program or other 
system of prior approval and conditions that is 
adopted by or for a State for the management and 
disposal of coal combustion residuals to the extent 
such activities occur in structures in such State. 
‘‘(3) STRUCTURE.—The term ‘structure’ means 
a landfill, surface impoundment, or other land-based 
unit which may receive coal combustion residuals. 
‘‘(4) REVISED
CRITERIA.—The term ‘revised 
criteria’ means the criteria promulgated for munic-
ipal solid waste landfill units under section 4004(a) 
and under section 1008(a)(3), as revised under sec-
tion 4010(c) in accordance with the requirement of 
such section that the criteria protect human health 
and the environment.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents contained in section 1001 of the Solid Waste Dis-
posal Act is amended by inserting after the item relating 
to section 4010 the following: 
‘‘Sec. 4011. Management and disposal of coal combustion residuals.’’. 
(c) 2000 REGULATORY DETERMINATION.—Nothing 
in this section, or the amendments made by this section, 
shall be construed to alter in any manner the Environ-
mental Protection Agency’s regulatory determination enti-
tled ‘‘Notice of Regulatory Determination on Wastes from 
the Combustion of Fossil Fuels’’, published at 65 Fed. 
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198 
Reg. 32214 (May 22, 2000), that the fossil fuel combus-
tion wastes addressed in that determination do not war-
rant regulation under subtitle C of the Solid Waste Dis-
posal Act (42 U.S.C. 6921 et seq.). 
TITLE VIII—ATTAINMENT OF NA-
TIONAL AMBIENT AIR QUAL-
ITY STANDARDS 
SEC. 801. AIR QUALITY MONITORING AND MODELING 
METHODOLOGIES. 
(a) NONATTAINMENT DESIGNATION TO BE BASED 
ON MONITORING DATA.—Section 107 of the Clean Air Act 
(42 U.S.C. 7407) is amended by adding at the end the 
following: 
‘‘(f) NONATTAINMENT DESIGNATION TO BE BASED 
ON MONITORING DATA.—Any designation or redesigna-
tion of an area or portion of an area within a State or 
interstate area as a nonattainment area for a pollutant 
within the meaning of subsection (d)(1)(A)(i) shall— 
‘‘(1) be based on monitoring data; and 
‘‘(2) not take into consideration modeling 
data.’’. 
(b) AIR QUALITY MODELING METHODOLOGIES.— 
(1) METHODOLOGIES.—Section 110 of the 
Clean Air Act (42 U.S.C. 7410) is amended by add-
ing at the end the following: 
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199 
‘‘(d) AIR QUALITY MODELING METHODOLOGIES.— 
The Administrator shall, by regulation, set forth the air 
quality modeling methodologies required to be used for 
purposes of air quality modeling pursuant to subsection 
(a)(2)(K).’’. 
(2) REGULATIONS.—The Administrator of the 
Environmental Protection Agency shall promulgate 
final regulations, as required by section 110(d) of 
the Clean Air Act, as added by paragraph (1), not 
later than one year after the date of the enactment 
of this Act. 
SEC. 802. EXTENDING COMPLIANCE FOR NAAQS ATTAIN-
MENT FOR DOWNWIND STATES. 
Section 181 of the Clean Air Act (42 U.S.C. 7511) 
is amended by adding at the end the following: 
‘‘(d) EXTENDED ATTAINMENT DATE FOR CERTAIN 
DOWNWIND AREAS.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) The term ‘upwind area’ means an 
area that— 
‘‘(i) affects nonattainment in another 
area (in this subsection referred to as the 
‘downwind area’); and 
‘‘(ii) is either— 
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‘‘(I) a nonattainment area with a 
later attainment date than the down-
wind area; or 
‘‘(II) an area in another State 
that the Administrator has found to 
be significantly contributing to non-
attainment in the downwind area in 
violation of section 110(a)(2)(D) and 
for which the Administrator has es-
tablished requirements through notice 
and comment rulemaking to reduce 
the emissions causing such significant 
contribution. 
‘‘(B) The term ‘current classification’ 
means the classification of a downwind area 
under this section at the time of the determina-
tion under paragraph (2). 
‘‘(2) EXTENSION.—Notwithstanding subsection 
(b)(2), a downwind area that is not in attainment 
within 18 months of the attainment deadline re-
quired under this section may seek an extension of 
time to come into attainment by petitioning the Ad-
ministrator for such an extension. If the Adminis-
trator— 
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201 
‘‘(A) determines that the area is a down-
wind area with respect to a particular national 
ambient air quality standard for ozone; 
‘‘(B) approves a plan revision for such 
area as provided in paragraph (3) prior to a re-
classification under subsection (b)(2)(A); and 
‘‘(C) determines that the petitioning down-
wind area has demonstrated that it is affected 
by transport from an upwind area to a degree 
that affects the area’s ability to attain, 
the Administrator, in lieu of such reclassification, 
may extend the attainment date for such downwind 
area for such standard in accordance with paragraph 
(5). 
‘‘(3) APPROVAL.—In order to extend the attain-
ment date for a downwind area under this sub-
section, the Administrator may approve a revision of 
the applicable implementation plan for the downwind 
area for the national ambient air quality standard 
that— 
‘‘(A) complies with all requirements of this 
Act applicable under the current classification 
of the downwind area, including any require-
ments applicable to the area under section 
172(c) for such standard; 
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202 
‘‘(B) includes any additional measures 
needed to demonstrate attainment by the ex-
tended attainment date provided under this 
subsection, and provides for implementation of 
those measures as expeditiously as practicable; 
and 
‘‘(C) provides appropriate measures to en-
sure that no area downwind of the area receiv-
ing the extended attainment date will be af-
fected by transport to a degree that affects the 
other area’s ability to attain. 
‘‘(4) PRIOR
RECLASSIFICATION
DETERMINA-
TION.—If, after April 1, 2003, and prior to the time 
the 1-hour ozone standard no longer applies to a 
downwind area, the Administrator made a reclassi-
fication determination under subsection (b)(2)(A) 
for such downwind area, and the Administrator ap-
proves a plan consistent with subparagraphs (A) and 
(B) for such area, the reclassification shall be with-
drawn and, for purposes of implementing the 8-hour 
ozone national ambient air quality standard, the 
area shall be treated as if the reclassification never 
occurred. Such plan must be submitted no later than 
12 months following enactment of this subsection, 
and— 
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203 
‘‘(A) the plan revision for the downwind 
area must comply with all control and planning 
requirements of this Act applicable under the 
classification that applied immediately prior to 
reclassification, including any requirements ap-
plicable to the area under section 172(c) for 
such standard; and 
‘‘(B) the plan must include any additional 
measures needed to demonstrate attainment no 
later than the date on which the last reductions 
in pollution transport that have been found by 
the Administrator to significantly contribute to 
nonattainment are required to be achieved by 
the upwind area or areas. 
‘‘(5) EXTENDED DATE.—The attainment date 
extended under this subsection shall provide for at-
tainment of such national ambient air quality stand-
ard for ozone in the downwind area as expeditiously 
as practicable but no later than the new date that 
the area would have been subject to had it been re-
classified under subsection (b)(2). 
‘‘(6) RULEMAKING.—Within 12 months after 
the enactment of this subsection, the Administrator 
shall, after notice and comment, promulgate rules to 
determine, for purposes of paragraphs (2) and (3), 
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204 
when an area is affected by transport to a degree 
that affects the area’s ability to attain. The purpose 
of such rules shall be to ensure that downwind areas 
are not unjustly penalized.’’. 
TITLE IX—SUB-BASIN REPORT-
ING OF GREENHOUSE GAS 
EMISSIONS 
SEC. 901. SUB-BASIN REPORTING OF GREENHOUSE GAS 
EMISSIONS. 
Section 114 of the Clean Air Act (42 U.S.C. 7414) 
is amended by adding at the end the following: 
‘‘(e) REPORTING OF GREENHOUSE GAS EMISSIONS 
FROM PETROLEUM AND NATURAL GAS SYSTEMS.—In re-
quiring any owner or operator of any facility in the petro-
leum and natural gas system source category (as such 
terms are used in part 98 of title 40, Code of Federal 
Regulations, and any successor regulations) to report 
greenhouse gas emissions from facilities in such category, 
the Administrator shall allow the owner or operator, at 
its election— 
‘‘(1) to designate sub-basins consisting of simi-
lar fields within a larger basin; and 
‘‘(2) to report such emissions from such sub-ba-
sins instead of reporting such emissions from the 
larger basin.’’. 
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TITLE X—IMPLEMENTATION OF 
NATIONAL OCEAN POLICY 
SEC. 1001. PROHIBITION ON USE OF FUNDS. 
(a) Federal departments and agencies are prohibited 
from performing activities to implement Executive Order 
13547. 
TITLE XI—OTHER PROVISIONS 
SEC. 1101. ADMINISTRATIVE RECORD. 
The administrative record compiled by an agency re-
garding an application for a permit, authorization, or 
other agency action involving a Priority Energy Project 
shall be the sole and exclusive record for any appeal or 
review of the permit action or other activity by that agency 
or other agency, as applicable. Upon final agency action, 
such record shall be closed and shall not be subject to any 
further evidentiary proceedings or requirements unless re-
quested by the applicant. 
SEC. 1102. STATEMENT OF ENERGY EFFECTS. 
(a) PREPARATION.— 
(1) REQUIREMENT.—An agency shall prepare 
and submit a Statement of Energy Effects to the 
Administrator of the Office of Information and Reg-
ulatory Affairs of the Office of Management and 
Budget, for each proposed significant energy action. 
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(2) CONTENTS.—A Statement of Energy Ef-
fects shall consist of a detailed statement by the 
agency responsible for the significant energy action 
relating to— 
(A) any adverse effects on energy supply, 
distribution, or use (including a shortfall in 
supply, price increases, and increased use of 
foreign supplies) should the proposal be imple-
mented; and 
(B) reasonable alternatives to the action 
with adverse energy effects, and the expected 
effects of such alternatives on energy supply, 
distribution, and use. 
(3) GUIDANCE AND CONSULTATION.—The Ad-
ministrator of the Office of Information and Regu-
latory Affairs shall provide guidance to the agencies 
on the implementation of this section and shall con-
sult with other agencies as appropriate in the imple-
mentation of this section. 
(b) PUBLICATION.—Agencies shall publish their 
Statements of Energy Effects, or a summary thereof, in 
each related notice of proposed rulemaking and in any re-
sulting final rule. 
(c) DEFINITIONS.—For purposes of this subsection— 
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(1) the term ‘‘agency’’ has the meaning given 
that term in paragraph (1) of section 3502 of title 
44, United States Code, except that the term does 
not include an independent regulatory agency, as de-
fined in paragraph (5) of that section; and 
(2) the term ‘‘significant energy action’’ means 
any action by an agency that is expected to lead to 
promulgation of a final regulation and that— 
(A) is likely to have a significant adverse 
effect on the supply, distribution, or use of en-
ergy; or 
(B) is designated by the Administrator of 
the Office of Information and Regulatory Af-
fairs as a significant energy action. 
SEC. 1103. PRIORITY-ENERGY PROJECT PERMIT DURATION. 
The approval to construct or operate a Priority En-
ergy Project pursuant to any Federal permit, as applica-
ble, shall remain valid and authorized for the later of— 
(1) 18 months following the date on which the 
last permit needed by a Priority Energy Project to 
commence construction or operation is final and no 
longer subject to judicial review; 
(2) 3 years; or 
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(3) in the case of a nationwide permit issued by 
the Army Corps of Engineers pursuant to part 330 
of title 33, Code of Federal Regulations, 5 years. 
SEC. 1104. EXEMPTION FOR TAKINGS OF MIGRATORY BIRD 
INCIDENTAL TO ENERGY DEVELOPMENT AND 
PRODUCTION. 
Section 6 of The Migratory Bird Treaty Act (16 
U.S.C. 707) is amended in subsection (a) by striking ‘‘not 
more than’’ and all that follows through the end of the 
subsection and inserting ‘‘not more than $1,000.’’. 
Æ 
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