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(2) shall consult annually with any State from 
which Federal oil or gas royalty is being taken in- 
kind to ensure, to the maximum extent practicable, 
that the royalty in-kind program provides revenues 
to the State greater than or equal to those likely to 
have been received had royalties been taken in-value. 
(h) SMALL REFINERIES.— 
(1) PREFERENCE.—If the Secretary finds that 
sufficient supplies of crude oil are not available in 
the open market to refineries that do not have their 
own source of supply for crude oil, the Secretary 
may grant preference to such refineries in the sale 
of any royalty oil accruing or reserved to the United 
States under Federal oil and gas leases issued under 
any mineral leasing law, for processing or use in 
such refineries at private sale at not less than the 
market price. 
(2) PRORATION
AMONG
REFINERIES
IN
PRO-
DUCTION AREA.—In disposing of oil under this sub-
section, the Secretary of Energy may, at the discre-
tion of the Secretary, prorate the oil among refin-
eries described in paragraph (1) in the area in which 
the oil is produced. 
(i) DISPOSITION TO FEDERAL AGENCIES.—
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(1) ONSHORE ROYALTY.—Any royalty oil or gas 
taken by the Secretary in-kind from onshore oil and 
gas leases may be sold at not less than the market 
price to any Federal agency. 
(2) OFFSHORE ROYALTY.—Any royalty oil or 
gas taken in-kind from a Federal oil or gas lease on 
the outer Continental Shelf may be disposed of only 
under section 27 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1353). 
(j) FEDERAL LOW-INCOME ENERGY ASSISTANCE 
PROGRAMS.— 
(1) PREFERENCE.—In disposing of royalty oil 
or gas taken in-kind under this section, the Sec-
retary may grant a preference to any person, includ-
ing any Federal or State agency, for the purpose of 
providing additional resources to any Federal low-in-
come energy assistance program. 
(2) REPORT.—Not later than 3 years after the 
date of enactment of this Act, the Secretary shall 
transmit a report to Congress, assessing the effec-
tiveness of granting preferences specified in para-
graph (1) and providing a specific recommendation 
on the continuation of authority to grant pref-
erences.
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SEC. 313. MARGINAL PROPERTY PRODUCTION INCENTIVES. 
(a) DEFINITION OF MARGINAL PROPERTY.—Until 
such time as the Secretary issues regulations under sub-
section (e) that prescribe a different definition, in this sec-
tion the term ‘‘marginal property’’ means an onshore unit, 
communitization agreement, or lease not within a unit or 
communitization agreement, that produces on average the 
combined equivalent of less than 15 barrels of oil per well 
per day or 90 million British thermal units of gas per well 
per day calculated based on the average over the 3 most 
recent production months, including only wells that 
produce on more than half of the days during those 3 pro-
duction months. 
(b) CONDITIONS
FOR
REDUCTION
OF
ROYALTY 
RATE.—Until such time as the Secretary issues regula-
tions under subsection (e) that prescribe different thresh-
olds or standards, the Secretary shall reduce the royalty 
rate on— 
(1) oil production from marginal properties as 
prescribed in subsection (c) when the spot price of 
West Texas Intermediate crude oil at Cushing, Okla-
homa, is, on average, less than $15 per barrel for 90 
consecutive trading days; and 
(2) gas production from marginal properties as 
prescribed in subsection (c) when the spot price of 
natural gas delivered at Henry Hub, Louisiana, is,
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on average, less than $2.00 per million British ther-
mal units for 90 consecutive trading days. 
(c) REDUCED ROYALTY RATE.— 
(1) IN GENERAL.—When a marginal property 
meets the conditions specified in subsection (b), the 
royalty rate shall be the lesser of— 
(A) 5 percent; or 
(B) the applicable rate under any other 
statutory or regulatory royalty relief provision 
that applies to the affected production. 
(2) PERIOD OF EFFECTIVENESS.—The reduced 
royalty rate under this subsection shall be effective 
beginning on the first day of the production month 
following the date on which the applicable condition 
specified in subsection (b) is met. 
(d) TERMINATION OF REDUCED ROYALTY RATE.— 
A royalty rate prescribed in subsection (d)(1)(A) shall ter-
minate— 
(1) with respect to oil production from a mar-
ginal property, on the first day of the production 
month following the date on which— 
(A) the spot price of West Texas Inter-
mediate crude oil at Cushing, Oklahoma, on av-
erage, exceeds $15 per barrel for 90 consecutive 
trading days; or
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(B) the property no longer qualifies as a 
marginal property; and 
(2) with respect to gas production from a mar-
ginal property, on the first day of the production 
month following the date on which— 
(A) the spot price of natural gas delivered 
at Henry Hub, Louisiana, on average, exceeds 
$2.00 per million British thermal units for 90 
consecutive trading days; or 
(B) the property no longer qualifies as a 
marginal property. 
(e) REGULATIONS PRESCRIBING DIFFERENT RE-
LIEF.— 
(1) DISCRETIONARY REGULATIONS.—The Sec-
retary may by regulation prescribe different param-
eters, standards, and requirements for, and a dif-
ferent degree or extent of, royalty relief for marginal 
properties in lieu of those prescribed in subsections 
(a) through (d). 
(2) MANDATORY
REGULATIONS.—Not later 
than 18 months after the date of enactment of this 
Act, the Secretary shall by regulation— 
(A) prescribe standards and requirements 
for, and the extent of royalty relief for, mar-
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ginal properties for oil and gas leases on the 
outer Continental Shelf; and 
(B) define what constitutes a marginal 
property on the outer Continental Shelf for pur-
poses of this section. 
(3) CONSIDERATIONS.—In promulgating regu-
lations under this subsection, the Secretary may con-
sider— 
(A) oil and gas prices and market trends; 
(B) production costs; 
(C) abandonment costs; 
(D) Federal and State tax provisions and 
the effects of those provisions on production ec-
onomics; 
(E) other royalty relief programs; 
(F) regional differences in average well-
head prices; 
(G) national energy security issues; and 
(H) other relevant matters. 
(f) SAVINGS PROVISION.—Nothing in this section 
prevents a lessee from receiving royalty relief or a royalty 
reduction pursuant to any other law (including a regula-
tion) that provides more relief than the amounts provided 
by this section.
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SEC. 314. INCENTIVES FOR NATURAL GAS PRODUCTION 
FROM DEEP WELLS IN THE SHALLOW WA-
TERS OF THE GULF OF MEXICO. 
(a) ROYALTY INCENTIVE REGULATIONS.—The Sec-
retary shall publish a final regulation to complete the rule-
making begun by the Notice of Proposed Rulemaking enti-
tled ‘‘Relief or Reduction in Royalty Rates—Deep Gas 
Provisions’’, published in the Federal Register on March 
26, 2003 (Federal Register, volume 68, number 58, 
14868–14886). 
(b) ROYALTY INCENTIVE REGULATIONS FOR ULTRA 
DEEP GAS WELLS.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, in addition 
to any other regulations that may provide royalty in-
centives for natural gas produced from deep wells on 
oil and gas leases issued pursuant to the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1331 et seq.), 
the Secretary shall issue regulations, in accordance 
with the regulations published pursuant to sub-
section (a), granting royalty relief suspension vol-
umes of not less than 35,000,000,000 cubic feet 
with respect to the production of natural gas from 
ultra deep wells on leases issued before January 1, 
2001, in shallow waters less than 200 meters deep 
located in the Gulf of Mexico wholly west of 87 de-
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grees, 30 minutes West longitude. Regulations 
issued under this subsection shall be retroactive to 
the date that the Notice of Proposed Rulemaking is 
published in the Federal Register. 
(2) DEFINITION
OF
ULTRA
DEEP
WELL.—In 
this subsection, the term ‘‘ultra deep well’’ means a 
well drilled with a perforated interval, the top of 
which is at least 20,000 feet true vertical depth 
below the datum at mean sea level. 
SEC. 315. ROYALTY RELIEF FOR DEEP WATER PRODUC-
TION. 
(a) IN GENERAL.—For all tracts located in water 
depths of greater than 400 meters in the Western and 
Central Planning Area of the Gulf of Mexico, including 
the portion of the Eastern Planning Area of the Gulf of 
Mexico encompassing whole lease blocks lying west of 87 
degrees, 30 minutes West longitude, any oil or gas lease 
sale under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) occurring within 5 years after the 
date of enactment of this Act shall use the bidding system 
authorized in section 8(a)(1)(H) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)), except that 
the suspension of royalties shall be set at a volume of not 
less than—
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(1) 5,000,000 barrels of oil equivalent for each 
lease in water depths of 400 to 800 meters; 
(2) 9,000,000 barrels of oil equivalent for each 
lease in water depths of 800 to 1,600 meters; and 
(3) 12,000,000 barrels of oil equivalent for each 
lease in water depths greater than 1,600 meters. 
(b) LIMITATION.—The Secretary may place limita-
tions on the suspension of royalty relief granted based on 
market price. 
SEC. 316. ALASKA OFFSHORE ROYALTY SUSPENSION. 
Section 8(a)(3)(B) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by in-
serting ‘‘and in the Planning Areas offshore Alaska’’ after 
‘‘West longitude’’. 
SEC. 317. OIL AND GAS LEASING IN THE NATIONAL PETRO-
LEUM RESERVE IN ALASKA. 
(a) TRANSFER OF AUTHORITY.— 
(1) REDESIGNATION.—The Naval Petroleum 
Reserves Production Act of 1976 (42 U.S.C. 6501 
et seq.) is amended by redesignating section 107 (42 
U.S.C. 6507) as section 108. 
(2) TRANSFER.—The matter under the heading 
‘‘EXPLORATION OF NATIONAL PETROLEUM RESERVE 
IN
ALASKA’’ under the heading ‘‘ENERGY AND
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MINERALS’’ of title I of Public Law 96–514 (42 
U.S.C. 6508) is— 
(A) transferred to the Naval Petroleum 
Reserves Production Act of 1976 (42 U.S.C. 
6501 et seq.); 
(B) redesignated as section 107 of that 
Act; and 
(C) moved so as to appear after section 
106 of that Act (42 U.S.C. 6506). 
(b) COMPETITIVE LEASING.—Section 107 of the 
Naval Petroleum Reserves Production Act of 1976 (as 
amended by subsection (a) of this section) is amended— 
(1) by striking the heading and all that follows 
through ‘‘Provided, That (1) activities’’ and insert-
ing the following: 
‘‘SEC. 107. COMPETITIVE LEASING OF OIL AND GAS. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law and pursuant to regulations issued by the 
Secretary, the Secretary shall conduct an expeditious pro-
gram of competitive leasing of oil and gas in the National 
Petroleum Reserve in Alaska (referred to in this section 
as the ‘Reserve’). 
‘‘(b) MITIGATION OF ADVERSE EFFECTS.—Activi-
ties’’;
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(2) by striking ‘‘Alaska (the Reserve); (2) the’’ 
and inserting ‘‘Alaska. 
‘‘(c) LAND USE PLANNING; BLM WILDERNESS 
STUDY.—The’’; 
(3) by striking ‘‘Reserve; (3) the’’ and inserting 
‘‘Reserve. 
‘‘(d) FIRST LEASE SALE.—The’’; 
(4) by striking ‘‘4332); (4) the’’ and inserting 
‘‘4321 et seq.). 
‘‘(e) WITHDRAWALS.—The’’; 
(5) by striking ‘‘herein; (5) bidding’’ and insert-
ing ‘‘under this section. 
‘‘(f) BIDDING SYSTEMS.—Bidding’’; 
(6) by striking ‘‘629); (6) lease’’ and inserting 
‘‘629). 
‘‘(g) GEOLOGICAL STRUCTURES.—Lease’’; 
(7) by striking ‘‘structures; (7) the’’ and insert-
ing ‘‘structures. 
‘‘(h) SIZE OF LEASE TRACTS.—The’’; 
(8) by striking ‘‘Secretary; (8)’’ and all that fol-
lows through ‘‘Drilling, production,’’ and inserting 
‘‘Secretary. 
‘‘(i) TERMS.— 
‘‘(1) IN GENERAL.—Each lease shall be—
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‘‘(A) issued for an initial period of not 
more than 10 years; and 
‘‘(B) renewed for successive 10-year terms 
if— 
‘‘(i) oil or gas is produced from the 
lease in paying quantities; 
‘‘(ii) oil or gas is capable of being pro-
duced in paying quantities; or 
‘‘(iii) drilling or reworking operations, 
as approved by the Secretary, are con-
ducted on the leased land. 
‘‘(2) RENEWAL OF NONPRODUCING LEASES.— 
The Secretary shall renew for an additional 10-year 
term a lease that does not meet the requirements of 
paragraph (1)(B) if the lessee submits to the Sec-
retary an application for renewal not later than 60 
days before the expiration of the primary lease 
and— 
‘‘(A) the lessee certifies, and the Secretary 
agrees, that hydrocarbon resources were discov-
ered on 1 or more wells drilled on the leased 
land in such quantities that a prudent operator 
would hold the lease for potential future devel-
opment; 
‘‘(B) the lessee—
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‘‘(i) pays the Secretary a renewal fee 
of $100 per acre of leased land; and 
‘‘(ii) provides evidence, and the Sec-
retary agrees that, the lessee has diligently 
pursued exploration that warrants continu-
ation with the intent of continued explo-
ration or future development of the leased 
land; or 
‘‘(C) all or part of the lease— 
‘‘(i) is part of a unit agreement cov-
ering a lease described in subparagraph 
(A) or (B); and 
‘‘(ii) has not been previously con-
tracted out of the unit. 
‘‘(3) APPLICABILITY.—This subsection applies 
to a lease that— 
‘‘(A) is entered into before, on, or after the 
date of enactment of the Energy Policy Act of 
2003; and 
‘‘(B) is effective on or after the date of en-
actment of that Act. 
‘‘(j) UNIT AGREEMENTS.— 
‘‘(1) IN GENERAL.—For the purpose of con-
servation of the natural resources of all or part of 
any oil or gas pool, field, reservoir, or like area, les-
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sees (including representatives) of the pool, field, 
reservoir, or like area may unite with each other, or 
jointly or separately with others, in collectively 
adopting and operating under a unit agreement for 
all or part of the pool, field, reservoir, or like area 
(whether or not any other part of the oil or gas pool, 
field, reservoir, or like area is already subject to any 
cooperative or unit plan of development or oper-
ation), if the Secretary determines the action to be 
necessary or advisable in the public interest. 
‘‘(2) PARTICIPATION BY STATE OF ALASKA.— 
The Secretary shall ensure that the State of Alaska 
is provided the opportunity for active participation 
concerning creation and management of units 
formed or expanded under this subsection that in-
clude acreage in which the State of Alaska has an 
interest in the mineral estate. 
‘‘(3) PARTICIPATION
BY
REGIONAL
CORPORA-
TIONS.—The Secretary shall ensure that any Re-
gional Corporation (as defined in section 3 of the 
Alaska Native Claims Settlement Act (43 U.S.C. 
1602)) is provided the opportunity for active partici-
pation concerning creation and management of units 
that include acreage in which the Regional Corpora-
tion has an interest in the mineral estate.
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‘‘(4) 
PRODUCTION
ALLOCATION
METHOD-
OLOGY.—The Secretary may use a production alloca-
tion methodology for each participating area within 
a unit created for land in the Reserve, State of Alas-
ka land, or Regional Corporation land shall, when 
appropriate, be based on the characteristics of each 
specific oil or gas pool, field, reservoir, or like area 
to take into account reservoir heterogeneity and a 
real variation in reservoir producibility across diverse 
leasehold interests. 
‘‘(5) BENEFIT OF OPERATIONS.—Drilling, pro-
duction,’’; 
(9) by striking ‘‘When separate’’ and inserting 
the following: 
‘‘(6) POOLING.—If separate’’; 
(10) by inserting ‘‘(in consultation with the 
owners of the other land)’’ after ‘‘determined by the 
Secretary of the Interior’’; 
(11) by striking ‘‘thereto; (10) to’’ and all that 
follows through ‘‘the terms provided therein’’ and in-
serting ‘‘to the agreement. 
‘‘(k) EXPLORATION INCENTIVES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) WAIVER, SUSPENSION, OR
REDUC-
TION.—To encourage the greatest ultimate re-
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covery of oil or gas or in the interest of con-
servation, the Secretary may waive, suspend, or 
reduce the rental fees or minimum royalty, or 
reduce the royalty on an entire leasehold (in-
cluding on any lease operated pursuant to a 
unit agreement), if (after consultation with the 
State of Alaska and the North Slope Borough 
of Alaska and the concurrence of any Regional 
Corporation for leases that include lands avail-
able for acquisition by the Regional Corporation 
under the provisions of section 1431(o) of the 
Alaska National Interest Lands Conservation 
Act (16 U.S.C. 3101 et seq.)) the Secretary de-
termines that the waiver, suspension, or reduc-
tion is in the public interest. 
‘‘(B) APPLICABILITY.—This paragraph ap-
plies to a lease that— 
‘‘(i) is entered into before, on, or after 
the date of enactment of the Energy Policy 
Act of 2003; and 
‘‘(ii) is effective on or after the date 
of enactment of that Act.’’; 
(12) by striking ‘‘The Secretary is authorized 
to’’ and inserting the following:
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HR 4503 RDS 
‘‘(2) SUSPENSION OF OPERATIONS AND PRO-
DUCTION.—The Secretary may’’; 
(13) by striking ‘‘In the event’’ and inserting 
the following: 
‘‘(3) SUSPENSION OF PAYMENTS.—If’’; 
(14) by striking ‘‘thereto; and (11) all’’ and in-
serting ‘‘to the lease. 
‘‘(l) RECEIPTS.—All’’; 
(15) by redesignating clauses (A), (B), and (C) 
as clauses (1), (2), and (3), respectively; 
(16) by striking ‘‘Any agency’’ and inserting 
the following: 
‘‘(m) EXPLORATIONS.—Any agency’’; 
(17) by striking ‘‘Any action’’ and inserting the 
following: 
‘‘(n) ENVIRONMENTAL IMPACT STATEMENTS.— 
‘‘(1) JUDICIAL REVIEW.—Any action’’; 
(18) by striking ‘‘The detailed’’ and inserting 
the following: 
‘‘(2) INITIAL LEASE SALES.—The detailed’’; 
(19) by striking ‘‘of the Naval Petroleum Re-
serves Production Act of 1976 (90 Stat. 304; 42 
U.S.C. 6504)’’; and 
(20) by adding at the end the following:
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HR 4503 RDS 
‘‘(o) WAIVER OF ADMINISTRATION FOR CONVEYED 
LANDS.—Notwithstanding section 14(g) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1613(g)) or any 
other provision of law— 
‘‘(1) the Secretary of the Interior shall waive 
administration of any oil and gas lease insofar as 
such lease covers any land in the National Petro-
leum Reserve in Alaska in which the subsurface es-
tate is conveyed to the Arctic Slope Regional Cor-
poration; and 
‘‘(2) if any such conveyance of such subsurface 
estate does not cover all the land embraced within 
any such oil and gas lease— 
‘‘(A) the person who owns the subsurface 
estate in any particular portion of the land cov-
ered by such lease shall be entitled to all of the 
revenues reserved under such lease as to such 
portion, including, without limitation, all the 
royalty payable with respect to oil or gas pro-
duced from or allocated to such particular por-
tion of the land covered by such lease; and 
‘‘(B) the Secretary of the Interior shall 
segregate such lease into 2 leases, 1 of which 
shall cover only the subsurface estate conveyed 
to the Arctic Slope Regional Corporation, and
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operations, production, or other circumstances 
(other than payment of rentals or royalties) 
that satisfy obligations of the lessee under, or 
maintain, either of the segregated leases shall 
likewise satisfy obligations of the lessee under, 
or maintain, the other segregated lease to the 
same extent as if such segregated leases re-
mained a part of the original unsegregated 
lease.’’. 
SEC. 318. ORPHANED, ABANDONED, OR IDLED WELLS ON 
FEDERAL LAND. 
(a) IN GENERAL.—The Secretary, in cooperation 
with the Secretary of Agriculture, shall establish a pro-
gram not later than 1 year after the date of enactment 
of this Act to remediate, reclaim, and close orphaned, 
abandoned, or idled oil and gas wells located on land ad-
ministered by the land management agencies within the 
Department of the Interior and the Department of Agri-
culture. 
(b) ACTIVITIES.—The program under subsection (a) 
shall— 
(1) include a means of ranking orphaned, aban-
doned, or idled wells sites for priority in remedi-
ation, reclamation, and closure, based on public
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health and safety, potential environmental harm, 
and other land use priorities; 
(2) provide for identification and recovery of 
the costs of remediation, reclamation, and closure 
from persons or other entities currently providing a 
bond or other financial assurance required under 
State or Federal law for an oil or gas well that is 
orphaned, abandoned, or idled; and 
(3) provide for recovery from the persons or en-
tities identified under paragraph (2), or their sure-
ties or guarantors, of the costs of remediation, rec-
lamation, and closure of such wells. 
(c) COOPERATION
AND CONSULTATIONS.—In car-
rying out the program under subsection (a), the Secretary 
shall— 
(1) work cooperatively with the Secretary of Ag-
riculture and the States within which Federal land 
is located; and 
(2) consult with the Secretary of Energy and 
the Interstate Oil and Gas Compact Commission. 
(d) PLAN.—Not later than 1 year after the date of 
enactment of this Act, the Secretary, in cooperation with 
the Secretary of Agriculture, shall submit to Congress a 
plan for carrying out the program under subsection (a).
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(e) IDLED WELL.—For the purposes of this section, 
a well is idled if— 
(1) the well has been nonoperational for at least 
7 years; and 
(2) there is no anticipated beneficial use for the 
well. 
(f) TECHNICAL ASSISTANCE PROGRAM
FOR NON- 
FEDERAL LAND.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall establish a program to provide technical and fi-
nancial assistance to oil and gas producing States to 
facilitate State efforts over a 10-year period to en-
sure a practical and economical remedy for environ-
mental problems caused by orphaned or abandoned 
oil and gas exploration or production well sites on 
State or private land. 
(2) ASSISTANCE.—The Secretary of Energy 
shall work with the States, through the Interstate 
Oil and Gas Compact Commission, to assist the 
States in quantifying and mitigating environmental 
risks of onshore orphaned or abandoned oil or gas 
wells on State and private land. 
(3) ACTIVITIES.—The program under para-
graph (1) shall include—
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HR 4503 RDS 
(A) mechanisms to facilitate identification, 
if feasible, of the persons currently providing a 
bond or other form of financial assurance re-
quired under State or Federal law for an oil or 
gas well that is orphaned or abandoned; 
(B) criteria for ranking orphaned or aban-
doned well sites based on factors such as public 
health and safety, potential environmental 
harm, and other land use priorities; 
(C) information and training programs on 
best practices for remediation of different types 
of sites; and 
(D) funding of State mitigation efforts on 
a cost-shared basis. 
(g) FEDERAL REIMBURSEMENT
FOR ORPHANED 
WELL RECLAMATION PILOT PROGRAM.— 
(1) REIMBURSEMENT FOR REMEDIATING, RE-
CLAIMING, AND CLOSING WELLS ON LAND SUBJECT 
TO A NEW LEASE.—The Secretary shall carry out a 
pilot program under which, in issuing a new oil and 
gas lease on federally owned land on which 1 or 
more orphaned wells are located, the Secretary— 
(A) may require, but not as a condition of 
the lease, that the lessee remediate, reclaim, 
and close in accordance with standards estab-
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lished by the Secretary, all orphaned wells on 
the land leased; and 
(B) shall develop a program to reimburse 
a lessee, through a royalty credit against the 
Federal share of royalties owed or other means, 
for the reasonable actual costs of remediating, 
reclaiming, and closing the orphaned well pur-
suant to that requirement. 
(2) REIMBURSEMENT
FOR
RECLAIMING
OR-
PHANED WELLS ON OTHER LAND.—In carrying out 
this subsection, the Secretary— 
(A) may authorize any lessee under an oil 
and gas lease on federally owned land to re-
claim in accordance with the Secretary’s stand-
ards— 
(i) an orphaned well on unleased fed-
erally owned land; or 
(ii) an orphaned well located on an ex-
isting lease on federally owned land for the 
reclamation of which the lessee is not le-
gally responsible; and 
(B) shall develop a program to provide re-
imbursement of 115 percent of the reasonable 
actual costs of remediating, reclaiming, and 
closing the orphaned well, through credits
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HR 4503 RDS 
against the Federal share of royalties or other 
means. 
(3) EFFECT OF REMEDIATION, RECLAMATION, 
OR CLOSURE OF WELL PURSUANT TO AN APPROVED 
REMEDIATION PLAN.— 
(A) 
DEFINITION
OF
REMEDIATING 
PARTY.—In this paragraph the term ‘‘remedi-
ating party’’ means a person who remediates, 
reclaims, or closes an abandoned, orphaned, or 
idled well pursuant to this subsection. 
(B) GENERAL RULE.—A remediating party 
who remediates, reclaims, or closes an aban-
doned, orphaned, or idled well in accordance 
with a detailed written remediation plan ap-
proved by the Secretary under this subsection, 
shall be immune from civil liability under Fed-
eral environmental laws, for— 
(i) pre-existing environmental condi-
tions at or associated with the well, unless 
the remediating party owns or operates, in 
the past owned or operated, or is related to 
a person that owns or operates or in the 
past owned or operated, the well or the 
land on which the well is located; or
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HR 4503 RDS 
(ii) any remaining releases of pollut-
ants from the well during or after comple-
tion of the remediation, reclamation, or 
closure of the well, unless the remediating 
party causes increased pollution as a result 
of activities that are not in accordance 
with the approved remediation plan. 
(C) LIMITATIONS.—Nothing in this section 
shall limit in any way the liability of a remedi-
ating party for injury, damage, or pollution re-
sulting from the remediating party’s acts or 
omissions that are not in accordance with the 
approved remediation plan, are reckless or will-
ful, constitute gross negligence or wanton mis-
conduct, or are unlawful. 
(4) REGULATIONS.—The Secretary may issue 
such regulations as are appropriate to carry out this 
subsection. 
(h) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated to carry out this section $25,000,000 
for each of fiscal years 2005 through 2009. 
(2) USE.—Of the amounts authorized under 
paragraph (1), $5,000,000 are authorized for each 
fiscal year for activities under subsection (f).
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HR 4503 RDS 
SEC. 319. COMBINED HYDROCARBON LEASING. 
(a) SPECIAL PROVISIONS REGARDING LEASING.— 
Section 17(b)(2) of the Mineral Leasing Act (30 U.S.C. 
226(b)(2)) is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and 
(2) by adding at the end the following: 
‘‘(B) For any area that contains any combination of 
tar sand and oil or gas (or both), the Secretary may issue 
under this Act, separately— 
‘‘(i) a lease for exploration for and extraction of 
tar sand; and 
‘‘(ii) a lease for exploration for and development 
of oil and gas. 
‘‘(C) A lease issued for tar sand shall be issued using 
the same bidding process, annual rental, and posting pe-
riod as a lease issued for oil and gas, except that the min-
imum acceptable bid required for a lease issued for tar 
sand shall be $2 per acre. 
‘‘(D) The Secretary may waive, suspend, or alter any 
requirement under section 26 that a permittee under a 
permit authorizing prospecting for tar sand must exercise 
due diligence, to promote any resource covered by a com-
bined hydrocarbon lease.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
17(b)(1)(B) of the Mineral Leasing Act (30 U.S.C. 
226(b)(1)(B)) is amended in the second sentence by in-
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serting ‘‘, subject to paragraph (2)(B),’’ after ‘‘Sec-
retary’’. 
(c) REGULATIONS.—Not later than 45 days after the 
date of enactment of this Act, the Secretary shall issue 
final regulations to implement this section. 
SEC. 320. LIQUIFIED NATURAL GAS. 
Section 3 of the Natural Gas Act (15 U.S.C. 717b) 
is amended by adding at the end the following: 
‘‘(d) LIMITATION ON COMMISSION AUTHORITY.—If 
an applicant under this section proposes to construct or 
expand a liquified natural gas terminal either onshore or 
in State waters for the purpose of importing liquified nat-
ural gas into the United States, the Commission shall not 
deny or condition the application solely on the basis that 
the applicant proposes to utilize the terminal exclusively 
or partially for gas that the applicant or any affiliate 
thereof will supply thereto. In all other respects, sub-
section (a) shall remain applicable to any such proposal.’’. 
SEC. 321. ALTERNATE ENERGY-RELATED USES ON THE 
OUTER CONTINENTAL SHELF. 
(a) AMENDMENT TO OUTER CONTINENTAL SHELF 
LANDS ACT.—Section 8 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337) is amended by adding at the 
end the following:
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‘‘(p) LEASES, EASEMENTS, OR RIGHTS-OF-WAY FOR 
ENERGY AND RELATED PURPOSES.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of the Department in which 
the Coast Guard is operating and other relevant de-
partments and agencies of the Federal Government, 
may grant a lease, easement, or right-of-way on the 
outer Continental Shelf for activities not otherwise 
authorized in this Act, the Deepwater Port Act of 
1974 (33 U.S.C. 1501 et seq.), or the Ocean Ther-
mal Energy Conversion Act of 1980 (42 U.S.C. 
9101 et seq.), or other applicable law, if those activi-
ties— 
‘‘(A) support exploration, development, 
production, transportation, or storage of oil, 
natural gas, or other minerals; 
‘‘(B) produce or support production, trans-
portation, or transmission of energy from 
sources other than oil and gas; or 
‘‘(C) use, for energy-related or marine-re-
lated purposes, facilities currently or previously 
used for activities authorized under this Act. 
‘‘(2) PAYMENTS.—The Secretary shall establish 
reasonable forms of payments for any easement or 
right-of-way granted under this subsection. Such
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payments shall not be assessed on the basis of 
throughput or production. The Secretary may estab-
lish fees, rentals, bonus, or other payments by rule 
or by agreement with the party to which the lease, 
easement, or right-of-way is granted. 
‘‘(3) CONSULTATION.—Before exercising au-
thority under this subsection, the Secretary shall 
consult with the Secretary of Defense and other ap-
propriate agencies concerning issues related to na-
tional security and navigational obstruction. 
‘‘(4) 
COMPETITIVE
OR
NONCOMPETITIVE 
BASIS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
issue a lease, easement, or right-of-way for en-
ergy and related purposes as described in para-
graph (1) on a competitive or noncompetitive 
basis. 
‘‘(B) CONSIDERATIONS.—In determining 
whether a lease, easement, or right-of-way shall 
be granted competitively or noncompetitively, 
the Secretary shall consider such factors as— 
‘‘(i) prevention of waste and conserva-
tion of natural resources; 
‘‘(ii) the economic viability of an en-
ergy project;
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‘‘(iii) protection of the environment; 
‘‘(iv) the national interest and na-
tional security; 
‘‘(v) human safety; 
‘‘(vi) protection of correlative rights; 
and 
‘‘(vii) potential return for the lease, 
easement, or right-of-way. 
‘‘(5) REGULATIONS.—Not later than 270 days 
after the date of enactment of the Energy Policy Act 
of 2003, the Secretary, in consultation with the Sec-
retary of the Department in which the Coast Guard 
is operating and other relevant agencies of the Fed-
eral Government and affected States, shall issue any 
necessary regulations to ensure safety, protection of 
the environment, prevention of waste, and conserva-
tion of the natural resources of the outer Conti-
nental Shelf, protection of national security inter-
ests, and protection of correlative rights in the outer 
Continental Shelf. 
‘‘(6) SECURITY.—The Secretary shall require 
the holder of a lease, easement, or right-of-way 
granted under this subsection to furnish a surety 
bond or other form of security, as prescribed by the 
Secretary, and to comply with such other require-
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ments as the Secretary considers necessary to pro-
tect the interests of the United States. 
‘‘(7) EFFECT OF SUBSECTION.—Nothing in this 
subsection displaces, supersedes, limits, or modifies 
the jurisdiction, responsibility, or authority of any 
Federal or State agency under any other Federal 
law. 
‘‘(8) APPLICABILITY.—This subsection does not 
apply to any area on the outer Continental Shelf 
designated as a National Marine Sanctuary.’’. 
(b) CONFORMING AMENDMENT.—Section 8 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337) is 
amended by striking the section heading and inserting the 
following: ‘‘LEASES, EASEMENTS, AND RIGHTS-OF-WAY 
ON THE OUTER CONTINENTAL SHELF.—’’. 
(c) SAVINGS PROVISION.—Nothing in the amendment 
made by subsection (a) requires, with respect to any 
project— 
(1) for which offshore test facilities have been 
constructed before the date of enactment of this Act; 
or 
(2) for which a request for proposals has been 
issued by a public authority, 
any resubmittal of documents previously submitted or any 
reauthorization of actions previously authorized.
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SEC. 322. PRESERVATION OF GEOLOGICAL AND GEO-
PHYSICAL DATA. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘National Geological and Geophysical Data Preservation 
Program Act of 2004’’. 
(b) PROGRAM.—The Secretary shall carry out a Na-
tional Geological and Geophysical Data Preservation Pro-
gram in accordance with this section— 
(1) to archive geologic, geophysical, and engi-
neering data, maps, well logs, and samples; 
(2) to provide a national catalog of such archi-
val material; and 
(3) to provide technical and financial assistance 
related to the archival material. 
(c) PLAN.—Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to Con-
gress a plan for the implementation of the Program. 
(d) DATA ARCHIVE SYSTEM.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish, as a component of the Program, a data ar-
chive system to provide for the storage, preservation, 
and archiving of subsurface, surface, geological, geo-
physical, and engineering data and samples. The 
Secretary, in consultation with the Advisory Com-
mittee, shall develop guidelines relating to the data
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archive system, including the types of data and sam-
ples to be preserved. 
(2) SYSTEM COMPONENTS.—The system shall 
be comprised of State agencies that elect to be part 
of the system and agencies within the Department 
of the Interior that maintain geological and geo-
physical data and samples that are designated by 
the Secretary in accordance with this subsection. 
The Program shall provide for the storage of data 
and samples through data repositories operated by 
such agencies. 
(3) LIMITATION
OF
DESIGNATION.—The Sec-
retary may not designate a State agency as a com-
ponent of the data archive system unless that agency 
is the agency that acts as the geological survey in 
the State. 
(4) DATA FROM FEDERAL LAND.—The data ar-
chive system shall provide for the archiving of rel-
evant subsurface data and samples obtained from 
Federal land— 
(A) in the most appropriate repository des-
ignated under paragraph (2), with preference 
being given to archiving data in the State in 
which the data were collected; and
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(B) consistent with all applicable law and 
requirements relating to confidentiality and pro-
prietary data. 
(e) NATIONAL CATALOG.— 
(1) IN GENERAL.—As soon as practicable after 
the date of enactment of this Act, the Secretary 
shall develop and maintain, as a component of the 
Program, a national catalog that identifies— 
(A) data and samples available in the data 
archive system established under subsection (d); 
(B) the repository for particular material 
in the system; and 
(C) the means of accessing the material. 
(2) AVAILABILITY.—The Secretary shall make 
the national catalog accessible to the public on the 
site of the Survey on the Internet, consistent with all 
applicable requirements related to confidentiality 
and proprietary data. 
(f) ADVISORY COMMITTEE.— 
(1) IN
GENERAL.—The Advisory Committee 
shall advise the Secretary on planning and imple-
mentation of the Program. 
(2) NEW
DUTIES.—In addition to its duties 
under the National Geologic Mapping Act of 1992
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(43 U.S.C. 31a et seq.), the Advisory Committee 
shall perform the following duties: 
(A) Advise the Secretary on developing 
guidelines and procedures for providing assist-
ance for facilities under subsection (g)(1). 
(B) Review and critique the draft imple-
mentation plan prepared by the Secretary under 
subsection (c). 
(C) Identify useful studies of data archived 
under the Program that will advance under-
standing of the Nation’s energy and mineral re-
sources, geologic hazards, and engineering geol-
ogy. 
(D) Review the progress of the Program in 
archiving significant data and preventing the 
loss of such data, and the scientific progress of 
the studies funded under the Program. 
(E) Include in the annual report to the 
Secretary required under section 5(b)(3) of the 
National Geologic Mapping Act of 1992 (43 
U.S.C. 31d(b)(3)) an evaluation of the progress 
of the Program toward fulfilling the purposes of 
the Program under subsection (b). 
(g) FINANCIAL ASSISTANCE.—
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(1) ARCHIVE FACILITIES.—Subject to the avail-
ability of appropriations, the Secretary shall provide 
financial assistance to a State agency that is des-
ignated under subsection (d)(2) for providing facili-
ties to archive energy material. 
(2) STUDIES.—Subject to the availability of ap-
propriations, the Secretary shall provide financial as-
sistance to any State agency designated under sub-
section (d)(2) for studies and technical assistance 
activities that enhance understanding, interpreta-
tion, and use of materials archived in the data ar-
chive system established under subsection (d). 
(3) FEDERAL SHARE.—The Federal share of 
the cost of an activity carried out with assistance 
under this subsection shall be not more than 50 per-
cent of the total cost of the activity. 
(4) PRIVATE CONTRIBUTIONS.—The Secretary 
shall apply to the non-Federal share of the cost of 
an activity carried out with assistance under this 
subsection the value of private contributions of prop-
erty and services used for that activity. 
(h) REPORT.—The Secretary shall include in each re-
port under section 8 of the National Geologic Mapping Act 
of 1992 (43 U.S.C. 31g)— 
(1) a description of the status of the Program;
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(2) an evaluation of the progress achieved in 
developing the Program during the period covered by 
the report; and 
(3) any recommendations for legislative or other 
action the Secretary considers necessary and appro-
priate to fulfill the purposes of the Program under 
subsection (b). 
(i) MAINTENANCE OF STATE EFFORT.—It is the in-
tent of Congress that the States not use this section as 
an opportunity to reduce State resources applied to the 
activities that are the subject of the Program. 
(j) DEFINITIONS.—In this section: 
(1) ADVISORY COMMITTEE.—The term ‘‘Advi-
sory Committee’’ means the advisory committee es-
tablished under section 5 of the National Geologic 
Mapping Act of 1992 (43 U.S.C. 31d). 
(2) PROGRAM.—The term ‘‘Program’’ means 
the National Geological and Geophysical Data Pres-
ervation Program carried out under this section. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, acting through the Di-
rector of the United States Geological Survey. 
(4) SURVEY.—The term ‘‘Survey’’ means the 
United States Geological Survey.
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(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$30,000,000 for each of fiscal years 2004 through 2008. 
SEC. 323. OIL AND GAS LEASE ACREAGE LIMITATIONS. 
Section 27(d)(1) of the Mineral Leasing Act (30 
U.S.C. 184(d)(1)) is amended by inserting after ‘‘acreage 
held in special tar sand areas’’ the following: ‘‘, and acre-
age under any lease any portion of which has been com-
mitted to a federally approved unit or cooperative plan or 
communitization agreement or for which royalty (includ-
ing compensatory royalty or royalty in-kind) was paid in 
the preceding calendar year,’’. 
SEC. 324. ASSESSMENT OF DEPENDENCE OF STATE OF HA-
WAII ON OIL. 
(a) ASSESSMENT.—The Secretary of Energy shall as-
sess the economic implication of the dependence of the 
State of Hawaii on oil as the principal source of energy 
for the State, including— 
(1) the short- and long-term prospects for crude 
oil supply disruption and price volatility and poten-
tial impacts on the economy of Hawaii; 
(2) the economic relationship between oil-fired 
generation of electricity from residual fuel and re-
fined petroleum products consumed for ground, ma-
rine, and air transportation;
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(3) the technical and economic feasibility of in-
creasing the contribution of renewable energy re-
sources for generation of electricity, on an island-by- 
island basis, including— 
(A) siting and facility configuration; 
(B) environmental, operational, and safety 
considerations; 
(C) the availability of technology; 
(D) effects on the utility system including 
reliability; 
(E) infrastructure and transport require-
ments; 
(F) community support; and 
(G) other factors affecting the economic 
impact of such an increase and any effect on 
the economic relationship described in para-
graph (2); 
(4) the technical and economic feasibility of 
using liquified natural gas to displace residual fuel 
oil for electric generation, including neighbor island 
opportunities, and the effect of the displacement on 
the economic relationship described in paragraph 
(2), including— 
(A) the availability of supply;
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(B) siting and facility configuration for on-
shore and offshore liquified natural gas receiv-
ing terminals; 
(C) the factors described in subparagraphs 
(B) through (F) of paragraph (3); and 
(D) other economic factors; 
(5) the technical and economic feasibility of 
using renewable energy sources (including hydrogen) 
for ground, marine, and air transportation energy 
applications to displace the use of refined petroleum 
products, on an island-by-island basis, and the eco-
nomic impact of the displacement on the relationship 
described in (2); and 
(6) an island-by-island approach to— 
(A) the development of hydrogen from re-
newable resources; and 
(B) the application of hydrogen to the en-
ergy needs of Hawaii 
(b) CONTRACTING AUTHORITY.—The Secretary of 
Energy may carry out the assessment under subsection 
(a) directly or, in whole or in part, through 1 or more 
contracts with qualified public or private entities. 
(c) REPORT.—Not later than 300 days after the date 
of enactment of this Act, the Secretary of Energy shall 
prepare, in consultation with agencies of the State of Ha-
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waii and other stakeholders, as appropriate, and submit 
to Congress, a report detailing the findings, conclusions, 
and recommendations resulting from the assessment. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
SEC. 325. DEADLINE FOR DECISION ON APPEALS OF CON-
SISTENCY 
DETERMINATION 
UNDER 
THE 
COASTAL ZONE MANAGEMENT ACT OF 1972. 
(a) IN GENERAL.—Section 319 of the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1465) is amended 
to read as follows: 
‘‘APPEALS TO THE SECRETARY 
‘‘SEC. 319. (a) NOTICE.—The Secretary shall publish 
an initial notice in the Federal Register not later than 30 
days after the date of the filing of any appeal to the Sec-
retary of a consistency determination under section 307. 
‘‘(b) CLOSURE OF RECORD.— 
‘‘(1) IN GENERAL.—Not later than the end of 
the 120-day period beginning on the date of publica-
tion of an initial notice under subsection (a), the 
Secretary shall receive no more filings on the appeal 
and the administrative record regarding the appeal 
shall be closed. 
‘‘(2) NOTICE.—Upon the closure of the admin-
istrative record, the Secretary shall immediately
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publish a notice that the administrative record has 
been closed. 
‘‘(c) DEADLINE FOR DECISION.—The Secretary shall 
issue a decision in any appeal filed under section 307 not 
later than 120 days after the closure of the administrative 
record. 
‘‘(d) APPLICATION.—This section applies to appeals 
initiated by the Secretary and appeals filed by an appli-
cant.’’. 
(b) APPLICATION.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by subsection (a) 
shall apply with respect to any appeal initiated or 
filed before, on, or after the date of enactment of 
this Act. 
(2) LIMITATION.—Subsection (a) of section 319 
of the Coastal Zone Management Act of 1972 (as 
amended by subsection (a)) shall not apply with re-
spect to an appeal initiated or filed before the date 
of enactment of this Act. 
(c) CLOSURE OF RECORD FOR APPEAL FILED BE-
FORE DATE OF ENACTMENT.—Notwithstanding section 
319(b)(1) of the Coastal Zone Management Act of 1972 
(as amended by this section), in the case of an appeal of 
a consistency determination under section 307 of that Act
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initiated or filed before the date of enactment of this Act, 
the Secretary of Commerce shall receive no more filings 
on the appeal and the administrative record regarding the 
appeal shall be closed not later than 120 days after the 
date of enactment of this Act. 
SEC. 326. REIMBURSEMENT FOR COSTS OF NEPA ANAL-
YSES, DOCUMENTATION, AND STUDIES. 
(a) IN GENERAL.—The Mineral Leasing Act is 
amended by inserting after section 37 (30 U.S.C. 193) 
the following: 
‘‘REIMBURSEMENT FOR COSTS OF CERTAIN ANALYSES, 
DOCUMENTATION, AND STUDIES 
‘‘SEC. 38. (a) IN GENERAL.—The Secretary of the 
Interior may reimburse a person that is a lessee, operator, 
operating rights owner, or applicant for any lease under 
this Act for reasonable amounts paid by the person for 
preparation for the Secretary by a contractor or other per-
son selected by the Secretary of any project-level analysis, 
documentation, or related study required pursuant to the 
National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) with respect to the lease. 
‘‘(b) CONDITIONS.—The Secretary may provide reim-
bursement under subsection (a) only if— 
‘‘(1) adequate funding to enable the Secretary 
to timely prepare the analysis, documentation, or re-
lated study is not appropriated;
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‘‘(2) the person paid the costs voluntarily; 
‘‘(3) the person maintains records of its costs 
in accordance with regulations issued by the Sec-
retary; 
‘‘(4) the reimbursement is in the form of a re-
duction in the Federal share of the royalty required 
to be paid for the lease for which the analysis, docu-
mentation, or related study is conducted, and is 
agreed to by the Secretary and the person reim-
bursed prior to commencing the analysis, docu-
mentation, or related study; and 
‘‘(5) the agreement required under paragraph 
(4) contains provisions— 
‘‘(A) reducing royalties owed on lease pro-
duction based on market prices; 
‘‘(B) stipulating an automatic termination 
of the royalty reduction upon recovery of docu-
mented costs; and 
‘‘(C) providing a process by which the les-
see may seek reimbursement for circumstances 
in which production from the specified lease is 
not possible.’’. 
(b) APPLICATION.—The amendment made by this 
section shall apply with respect to an analysis, documenta-
tion, or a related study conducted on or after the date
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of enactment of this Act for any lease entered into before, 
on, or after the date of enactment of this Act. 
(c) DEADLINE FOR REGULATIONS.—The Secretary 
shall issue regulations implementing the amendment made 
by this section by not later than 1 year after the date 
of enactment of this Act. 
SEC. 327. HYDRAULIC FRACTURING. 
Paragraph (1) of section 1421(d) of the Safe Drink-
ing Water Act (42 U.S.C. 300h(d)) is amended to read 
as follows: 
‘‘(1) UNDERGROUND
INJECTION.—The term 
‘underground injection’— 
‘‘(A) means the subsurface emplacement of 
fluids by well injection; and 
‘‘(B) excludes— 
‘‘(i) the underground injection of nat-
ural gas for purposes of storage; and 
‘‘(ii) the underground injection of 
fluids or propping agents pursuant to hy-
draulic fracturing operations related to oil 
or gas production activities.’’.
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SEC. 328. OIL AND GAS EXPLORATION AND PRODUCTION 
DEFINED. 
Section 502 of the Federal Water Pollution Control 
Act (33 U.S.C. 1362) is amended by adding at the end 
the following: 
‘‘(24) OIL AND GAS EXPLORATION AND PRO-
DUCTION.—The term ‘oil and gas exploration, pro-
duction, processing, or treatment operations or 
transmission facilities’ means all field activities or 
operations associated with exploration, production, 
processing, or treatment operations, or transmission 
facilities, including activities necessary to prepare a 
site for drilling and for the movement and placement 
of drilling equipment, whether or not such field ac-
tivities or operations may be considered to be con-
struction activities.’’. 
SEC. 329. OUTER CONTINENTAL SHELF PROVISIONS. 
(a) STORAGE
ON
THE
OUTER
CONTINENTAL 
SHELF.—Section 5(a)(5) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1334(a)(5)) is amended by insert-
ing ‘‘from any source’’ after ‘‘oil and gas’’. 
(b) DEEPWATER PROJECTS.—Section 6 of the Deep-
water Port Act of 1974 (33 U.S.C. 1505) is amended by 
adding at the end the following: 
‘‘(d) RELIANCE ON ACTIVITIES OF OTHER AGEN-
CIES.—In fulfilling the requirements of section 5(f)—
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‘‘(1) to the extent that other Federal agencies 
have prepared environmental impact statements, are 
conducting studies, or are monitoring the affected 
human, marine, or coastal environment, the Sec-
retary may use the information derived from those 
activities in lieu of directly conducting such activi-
ties; and 
‘‘(2) the Secretary may use information ob-
tained from any State or local government or from 
any person.’’. 
(c) NATURAL GAS DEFINED.—Section 3(13) of the 
Deepwater Port Act of 1974 (33 U.S.C. 1502(13)) is 
amended to read as follows: 
‘‘(13) natural gas means— 
‘‘(A) natural gas unmixed; or 
‘‘(B) any mixture of natural or artificial 
gas, including compressed or liquefied natural 
gas, natural gas liquids, liquefied petroleum 
gas, and condensate recovered from natural 
gas;’’. 
SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUC-
TION OR OFFSHORE MINERAL DEVELOP-
MENT PROJECTS. 
(a) AGENCY OF RECORD, PIPELINE CONSTRUCTION 
PROJECTS.—Any Federal administrative agency pro-
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ceeding that is an appeal or review under section 319 of 
the Coastal Zone Management Act of 1972 (16 U.S.C. 
1465), as amended by this Act, related to Federal author-
ity for an interstate natural gas pipeline construction 
project, including construction of natural gas storage and 
liquefied natural gas facilities, shall use as its exclusive 
record for all purposes the record compiled by the Federal 
Energy Regulatory Commission pursuant to the Commis-
sion’s proceeding under sections 3 and 7 of the Natural 
Gas Act (15 U.S.C. 717b, 717f). 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that all Federal and State agencies with jurisdiction 
over interstate natural gas pipeline construction activities 
should coordinate their proceedings within the timeframes 
established by the Federal Energy Regulatory Commission 
when the Commission is acting under sections 3 and 7 
of the Natural Gas Act (15 U.S.C. 717b, 717f) to deter-
mine whether a certificate of public convenience and neces-
sity should be issued for a proposed interstate natural gas 
pipeline. 
(c) AGENCY OF RECORD, OFFSHORE MINERAL DE-
VELOPMENT
PROJECTS.—Any Federal administrative 
agency proceeding that is an appeal or review under sec-
tion 319 of the Coastal Zone Management Act of 1972 
(16 U.S.C. 1465), as amended by this Act, related to Fed-
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eral authority for the permitting, approval, or other au-
thorization of energy projects, including projects to ex-
plore, develop, or produce mineral resources in or under-
lying the outer Continental Shelf shall use as its exclusive 
record for all purposes (except for the filing of pleadings) 
the record compiled by the relevant Federal permitting 
agency. 
SEC. 331. BILATERAL INTERNATIONAL OIL SUPPLY AGREE-
MENTS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the President may export oil to, or secure oil 
for, any country pursuant to a bilateral international oil 
supply agreement entered into by the United States with 
the country before June 25, 1979, or to any country pur-
suant to the International Emergency Oil Sharing Plan 
of the International Energy Agency. 
(b) MEMORANDUM OF AGREEMENT.—The following 
agreements are deemed to have entered into force by oper-
ation of law and are deemed to have no termination date: 
(1) The agreement entitled ‘‘Agreement amend-
ing and extending the memorandum of agreement of 
June 22, 1979’’, entered into force November 13, 
1994 (TIAS 12580). 
(2) The agreement entitled ‘‘Agreement amend-
ing the contingency implementing arrangements of
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October 17, 1980’’, entered into force June 27, 
1995 (TIAS 12670). 
SEC. 332. NATURAL GAS MARKET REFORM. 
(a) CLARIFICATION OF EXISTING CFTC AUTHOR-
ITY.— 
(1) FALSE REPORTING.—Section 9(a)(2) of the 
Commodity Exchange Act (7 U.S.C. 13(a)(2)) is 
amended by striking ‘‘false or misleading or know-
ingly inaccurate reports’’ and inserting ‘‘knowingly 
false or knowingly misleading or knowingly inac-
curate reports’’. 
(2) COMMISSION
ADMINISTRATIVE
AND
CIVIL 
AUTHORITY.—Section 9 of the Commodity Exchange 
Act (7 U.S.C. 13) is amended by redesignating sub-
section (f) as subsection (e), and adding: 
‘‘(f) COMMISSION ADMINISTRATIVE AND CIVIL AU-
THORITY.—The Commission may bring administrative or 
civil actions as provided in this Act against any person 
for a violation of any provision of this section including, 
but not limited to, false reporting under subsection 
(a)(2).’’. 
(3) EFFECT
OF
AMENDMENTS.—The amend-
ments made by paragraphs (1) and (2) restate, with-
out substantive change, existing burden of proof pro-
visions and existing Commission civil enforcement
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authority, respectively. These clarifying changes do 
not alter any existing burden of proof or grant any 
new statutory authority. The provisions of this sec-
tion, as restated herein, continue to apply to any ac-
tion pending on or commenced after the date of en-
actment of this Act for any act, omission, or viola-
tion occurring before, on, or after, such date of en-
actment. 
(b) FRAUD AUTHORITY.—Section 4b of the Com-
modity Exchange Act (7 U.S.C. 6b) is amended— 
(1) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(2) by striking subsection (a) and inserting the 
following: 
‘‘(a) It shall be unlawful— 
‘‘(1) for any person, in or in connection with 
any order to make, or the making of, any contract 
of sale of any commodity for future delivery or in 
interstate commerce, that is made, or to be made, on 
or subject to the rules of a designated contract mar-
ket, for or on behalf of any other person; or 
‘‘(2) for any person, in or in connection with 
any order to make, or the making of, any contract 
of sale of any commodity for future delivery, or 
other agreement, contract, or transaction subject to
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section 5a(g) (1) and (2) of this Act, that is made, 
or to be made, for or on behalf of, or with, any other 
person, other than on or subject to the rules of a 
designated contract market— 
‘‘(A) to cheat or defraud or attempt to 
cheat or defraud such other person; 
‘‘(B) willfully to make or cause to be made 
to such other person any false report or state-
ment or willfully to enter or cause to be entered 
for such other person any false record; 
‘‘(C) willfully to deceive or attempt to de-
ceive such other person by any means whatso-
ever in regard to any order or contract or the 
disposition or execution of any order or con-
tract, or in regard to any act of agency per-
formed, with respect to any order or contract 
for or, in the case of subsection (a)(2), with 
such other person; or 
‘‘(D)(i) to bucket an order if such order is 
either represented by such person as an order 
to be executed, or required to be executed, on 
or subject to the rules of a designated contract 
market; or 
‘‘(ii) to fill an order by offset against the 
order or orders of any other person, or willfully
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and knowingly and without the prior consent of 
such other person to become the buyer in re-
spect to any selling order of such other person, 
or become the seller in respect to any buying 
order of such other person, if such order is ei-
ther represented by such person as an order to 
be executed, or required to be executed, on or 
subject to the rules of a designated contract 
market. 
‘‘(b) Subsection (a)(2) shall not obligate any person, 
in connection with a transaction in a contract of sale of 
a commodity for future delivery, or other agreement, con-
tract or transaction subject to section 5a(g) (1) and (2) 
of this Act, with another person, to disclose to such other 
person nonpublic information that may be material to the 
market price of such commodity or transaction, except as 
necessary to make any statement made to such other per-
son in connection with such transaction, not misleading 
in any material respect.’’. 
(c) JURISDICTION OF THE CFTC.—The Natural Gas 
Act (15 U.S.C. 717 et seq.) is amended by adding at the 
end: 
‘‘SEC. 26. JURISDICTION. 
‘‘This Act shall not affect the exclusive jurisdiction 
of the Commodity Futures Trading Commission with re-
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spect to accounts, agreements, contracts, or transactions 
in commodities under the Commodity Exchange Act (7 
U.S.C. 1 et seq.). Any request for information by the Com-
mission to a designated contract market, registered deriva-
tives transaction execution facility, board of trade, ex-
change, or market involving accounts, agreements, con-
tracts, or transactions in commodities (including natural 
gas, electricity, and other energy commodities) within the 
exclusive jurisdiction of the Commodity Futures Trading 
Commission shall be directed to the Commodity Futures 
Trading Commission, which shall cooperate in responding 
to any information request by the Commission.’’. 
(d) INCREASED PENALTIES.—Section 21 of the Nat-
ural Gas Act (15 U.S.C. 717t) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘$5,000’’ and inserting 
‘‘$1,000,000’’; and 
(B) by striking ‘‘two years’’ and inserting 
‘‘5 years’’; and 
(2) in subsection (b), by striking ‘‘$500’’ and 
inserting ‘‘$50,000’’. 
SEC. 333. NATURAL GAS MARKET TRANSPARENCY. 
The Natural Gas Act (15 U.S.C 717 et seq.) is 
amended—
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(1) by redesignating section 24 as section 25; 
and 
(2) by inserting after section 23 the following: 
‘‘SEC. 24. NATURAL GAS MARKET TRANSPARENCY. 
‘‘(a) AUTHORIZATION.—(1) Not later than 180 days 
after the date of enactment of the Energy Policy Act of 
2003, the Federal Energy Regulatory Commission shall 
issue rules directing all entities subject to the Commis-
sion’s jurisdiction as provided under this Act to timely re-
port information about the availability and prices of nat-
ural gas sold at wholesale in interstate commerce to the 
Commission and price publishers. 
‘‘(2) The Commission shall evaluate the data for ade-
quate price transparency and accuracy. 
‘‘(3) Rules issued under this subsection requiring the 
reporting of information to the Commission that may be-
come publicly available shall be limited to aggregate data 
and transaction-specific data that are otherwise required 
by the Commission to be made public. 
‘‘(4) In exercising its authority under this section, the 
Commission shall not— 
‘‘(A) compete with, or displace from the market 
place, any price publisher; or 
‘‘(B) regulate price publishers or impose any re-
quirements on the publication of information.
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‘‘(b) TIMELY ENFORCEMENT.—No person shall be 
subject to any penalty under this section with respect to 
a violation occurring more than 3 years before the date 
on which the Federal Energy Regulatory Commission 
seeks to assess a penalty. 
‘‘(c) LIMITATION ON COMMISSION AUTHORITY.—(1) 
The Commission shall not condition access to interstate 
pipeline transportation upon the reporting requirements 
authorized under this section. 
‘‘(2) Natural gas sales by a producer that are attrib-
utable to volumes of natural gas produced by such pro-
ducer shall not be subject to the rules issued pursuant to 
this section. 
‘‘(3) The Commission shall not require natural gas 
producers, processors, or users who have a de minimis 
market presence to participate in the reporting require-
ments provided in this section.’’. 
Subtitle C—Access to Federal Land 
SEC. 341. OFFICE OF FEDERAL ENERGY PROJECT COORDI-
NATION. 
(a) ESTABLISHMENT.—The President shall establish 
the Office of Federal Energy Project Coordination (re-
ferred to in this section as the ‘‘Office’’) within the Execu-
tive Office of the President in the same manner and with 
the same mission as the White House Energy Projects
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Task Force established by Executive Order No. 13212 (42 
U.S.C. 13201 note). 
(b) STAFFING.—The Office shall be staffed by func-
tional experts from relevant Federal agencies on a non-
reimbursable basis to carry out the mission of the Office. 
(c) REPORT.—The Office shall transmit an annual 
report to Congress that describes the activities put in place 
to coordinate and expedite Federal decisions on energy 
projects. The report shall list accomplishments in improv-
ing the Federal decisionmaking process and shall include 
any additional recommendations or systemic changes 
needed to establish a more effective and efficient Federal 
permitting process. 
SEC. 342. FEDERAL ONSHORE OIL AND GAS LEASING AND 
PERMITTING PRACTICES. 
(a) REVIEW OF ONSHORE OIL AND GAS LEASING 
PRACTICES.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior, in consultation with the Secretary of Agri-
culture with respect to National Forest System lands 
under the jurisdiction of the Department of Agri-
culture, shall perform an internal review of current 
Federal onshore oil and gas leasing and permitting 
practices.
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(2) INCLUSIONS.—The review shall include the 
process for— 
(A) accepting or rejecting offers to lease; 
(B) administrative appeals of decisions or 
orders of officers or employees of the Bureau of 
Land Management with respect to a Federal oil 
or gas lease; 
(C) considering surface use plans of oper-
ation, including the timeframes in which the 
plans are considered, and any recommendations 
for improving and expediting the process; and 
(D) identifying stipulations to address site- 
specific concerns and conditions, including those 
stipulations relating to the environment and re-
source use conflicts. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary of the Interior and 
the Secretary of Agriculture shall transmit a report to 
Congress that describes— 
(1) actions taken under section 3 of Executive 
Order No. 13212 (42 U.S.C. 13201 note); and 
(2) actions taken or any plans to improve the 
Federal onshore oil and gas leasing program.
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SEC. 343. MANAGEMENT OF FEDERAL OIL AND GAS LEAS-
ING PROGRAMS. 
(a) TIMELY ACTION ON LEASES AND PERMITS.—To 
ensure timely action on oil and gas leases and applications 
for permits to drill on land otherwise available for leasing, 
the Secretary of the Interior (in this section referred to 
as the ‘‘Secretary’’) shall— 
(1) ensure expeditious compliance with section 
102(2)(C) of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4332(2)(C)); 
(2) improve consultation and coordination with 
the States and the public; and 
(3) improve the collection, storage, and retrieval 
of information relating to the leasing activities. 
(b) BEST MANAGEMENT PRACTICES.— 
(1) IN GENERAL.—Not later than 18 months 
after the date of enactment of this Act, the Sec-
retary shall develop and implement best manage-
ment practices to— 
(A) improve the administration of the on-
shore oil and gas leasing program under the 
Mineral Leasing Act (30 U.S.C. 181 et seq.); 
and 
(B) ensure timely action on oil and gas 
leases and applications for permits to drill on 
lands otherwise available for leasing.
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(2) CONSIDERATIONS.—In developing the best 
management practices under paragraph (1), the Sec-
retary shall consider any recommendations from the 
review under section 342. 
(3) REGULATIONS.—Not later than 180 days 
after the development of best management practices 
under paragraph (1), the Secretary shall publish, for 
public comment, proposed regulations that set forth 
specific timeframes for processing leases and appli-
cations in accordance with the practices, including 
deadlines for— 
(A) approving or disapproving resource 
management plans and related documents, lease 
applications, and surface use plans; and 
(B) related administrative appeals. 
(c) IMPROVED ENFORCEMENT.—The Secretary shall 
improve inspection and enforcement of oil and gas activi-
ties, including enforcement of terms and conditions in per-
mits to drill. 
(d) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to amounts authorized to be appropriated to carry 
out section 17 of the Mineral Leasing Act (30 U.S.C. 
226), there are authorized to be appropriated to the Sec-
retary for each of fiscal years 2004 through 2007—
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(1) $40,000,000 to carry out subsections (a) 
and (b); and 
(2) $20,000,000 to carry out subsection (c). 
SEC. 344. CONSULTATION REGARDING OIL AND GAS LEAS-
ING ON PUBLIC LAND. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Secretary of the Interior 
and the Secretary of Agriculture shall enter into a memo-
randum of understanding regarding oil and gas leasing 
on— 
(1) public lands under the jurisdiction of the 
Secretary of the Interior; and 
(2) National Forest System lands under the ju-
risdiction of the Secretary of Agriculture. 
(b) CONTENTS.—The memorandum of understanding 
shall include provisions that— 
(1) establish administrative procedures and 
lines of authority that ensure timely processing of oil 
and gas lease applications, surface use plans of oper-
ation, and applications for permits to drill, including 
steps for processing surface use plans and applica-
tions for permits to drill consistent with the 
timelines established by the amendment made by 
section 348;
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(2) eliminate duplication of effort by providing 
for coordination of planning and environmental com-
pliance efforts; and 
(3) ensure that lease stipulations are— 
(A) applied consistently; 
(B) coordinated between agencies; and 
(C) only as restrictive as necessary to pro-
tect the resource for which the stipulations are 
applied. 
(c) DATA RETRIEVAL SYSTEM.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary of 
the Interior and the Secretary of Agriculture shall 
establish a joint data retrieval system that is capable 
of— 
(A) tracking applications and formal re-
quests made in accordance with procedures of 
the Federal onshore oil and gas leasing pro-
gram; and 
(B) providing information regarding the 
status of the applications and requests within 
the Department of the Interior and the Depart-
ment of Agriculture. 
(2) RESOURCE
MAPPING.—Not later than 2 
years after the date of enactment of this Act, the
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Secretary of the Interior and the Secretary of Agri-
culture shall establish a joint Geographic Informa-
tion System mapping system for use in— 
(A) tracking surface resource values to aid 
in resource management; and 
(B) processing surface use plans of oper-
ation and applications for permits to drill. 
SEC. 345. ESTIMATES OF OIL AND GAS RESOURCES UNDER-
LYING ONSHORE FEDERAL LAND. 
(a) ASSESSMENT.—Section 604 of the Energy Act of 
2000 (42 U.S.C. 6217) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) by striking ‘‘reserve’’; and 
(ii) by striking ‘‘and’’ after the semi-
colon; and 
(B) by striking paragraph (2) and insert-
ing the following: 
‘‘(2) the extent and nature of any restrictions 
or impediments to the development of the resources, 
including— 
‘‘(A) impediments to the timely granting of 
leases; 
‘‘(B) post-lease restrictions, impediments, 
or delays on development for conditions of ap-
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proval, applications for permits to drill, or proc-
essing of environmental permits; and 
‘‘(C) permits or restrictions associated with 
transporting the resources for entry into com-
merce; and 
‘‘(3) the quantity of resources not produced or 
introduced into commerce because of the restric-
tions.’’; 
(2) in subsection (b)— 
(A) by striking ‘‘reserve’’ and inserting 
‘‘resource’’; and 
(B) by striking ‘‘publically’’ and inserting 
‘‘publicly’’; and 
(3) by striking subsection (d) and inserting the 
following: 
‘‘(d) ASSESSMENTS.—Using the inventory, the Sec-
retary of Energy shall make periodic assessments of eco-
nomically recoverable resources accounting for a range of 
parameters such as current costs, commodity prices, tech-
nology, and regulations.’’. 
(b) METHODOLOGY.—The Secretary of the Interior 
shall use the same assessment methodology across all geo-
logical provinces, areas, and regions in preparing and 
issuing national geological assessments to ensure accurate 
comparisons of geological resources.
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SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER NO. 13211; 
ACTIONS CONCERNING REGULATIONS THAT 
SIGNIFICANTLY AFFECT ENERGY SUPPLY, 
DISTRIBUTION, OR USE. 
(a) REQUIREMENT.—The head of each Federal agen-
cy shall require that before the Federal agency takes any 
action that could have a significant adverse effect on the 
supply of domestic energy resources from Federal public 
land, the Federal agency taking the action shall comply 
with Executive Order No. 13211 (42 U.S.C. 13201 note). 
(b) GUIDANCE.—Not later than 180 days after the 
date of enactment of this Act, the Secretary of Energy 
shall publish guidance for purposes of this section describ-
ing what constitutes a significant adverse effect on the 
supply of domestic energy resources under Executive 
Order No. 13211 (42 U.S.C. 13201 note). 
(c) MEMORANDUM OF UNDERSTANDING.—The Sec-
retary of the Interior and the Secretary of Agriculture 
shall include in the memorandum of understanding under 
section 344 provisions for implementing subsection (a) of 
this section. 
SEC. 347. PILOT PROJECT TO IMPROVE FEDERAL PERMIT 
COORDINATION. 
(a) ESTABLISHMENT.—The Secretary of the Interior 
(in this section referred to as the ‘‘Secretary’’) shall estab-
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lish a Federal Permit Streamlining Pilot Project (in this 
section referred to as the ‘‘Pilot Project’’). 
(b) MEMORANDUM OF UNDERSTANDING.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Secretary 
shall enter into a memorandum of understanding 
with the Secretary of Agriculture, the Administrator 
of the Environmental Protection Agency, and the 
Chief of Engineers of the Army Corps of Engineers 
for purposes of this section. 
(2) STATE
PARTICIPATION.—The Secretary 
may request that the Governors of Wyoming, Mon-
tana, Colorado, Utah, and New Mexico be signato-
ries to the memorandum of understanding. 
(c) DESIGNATION OF QUALIFIED STAFF.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the signing of the memorandum of un-
derstanding under subsection (b), all Federal signa-
tory parties shall assign to each of the field offices 
identified in subsection (d), on a nonreimbursable 
basis, an employee who has expertise in the regu-
latory issues relating to the office in which the em-
ployee is employed, including, as applicable, par-
ticular expertise in—
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(A) the consultations and the preparation 
of biological opinions under section 7 of the En-
dangered Species Act of 1973 (16 U.S.C. 
1536); 
(B) permits under section 404 of Federal 
Water Pollution Control Act (33 U.S.C. 1344); 
(C) regulatory matters under the Clean Air 
Act (42 U.S.C. 7401 et seq.); 
(D) planning under the National Forest 
Management Act of 1976 (16 U.S.C. 472a et 
seq.); and 
(E) the preparation of analyses under the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). 
(2) DUTIES.—Each employee assigned under 
paragraph (1) shall— 
(A) not later than 90 days after the date 
of assignment, report to the Bureau of Land 
Management Field Managers in the office to 
which the employee is assigned; 
(B) be responsible for all issues relating to 
the jurisdiction of the home office or agency of 
the employee; and
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(C) participate as part of the team of per-
sonnel working on proposed energy projects, 
planning, and environmental analyses. 
(d) FIELD OFFICES.—The following Bureau of Land 
Management Field Offices shall serve as the Pilot Project 
offices: 
(1) Rawlins, Wyoming. 
(2) Buffalo, Wyoming. 
(3) Miles City, Montana. 
(4) Farmington, New Mexico. 
(5) Carlsbad, New Mexico. 
(6) Glenwood Springs, Colorado. 
(7) Vernal, Utah. 
(e) REPORTS.—Not later than 3 years after the date 
of enactment of this Act, the Secretary shall transmit to 
Congress a report that— 
(1) outlines the results of the Pilot Project to 
date; and 
(2) makes a recommendation to the President 
regarding whether the Pilot Project should be imple-
mented throughout the United States. 
(f) ADDITIONAL PERSONNEL.—The Secretary shall 
assign to each field office identified in subsection (d) any 
additional personnel that are necessary to ensure the ef-
fective implementation of—
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(1) the Pilot Project; and 
(2) other programs administered by the field of-
fices, including inspection and enforcement relating 
to energy development on Federal land, in accord-
ance with the multiple use mandate of the Federal 
Land Policy and Management Act of 1976 (43 
U.S.C. 1701 et seq). 
(g) SAVINGS PROVISION.—Nothing in this section af-
fects— 
(1) the operation of any Federal or State law; 
or 
(2) any delegation of authority made by the 
head of a Federal agency whose employees are par-
ticipating in the Pilot Project. 
SEC. 348. DEADLINE FOR CONSIDERATION OF APPLICA-
TIONS FOR PERMITS. 
Section 17 of the Mineral Leasing Act (30 U.S.C. 
226) is amended by adding at the end the following: 
‘‘(p) DEADLINES FOR CONSIDERATION OF APPLICA-
TIONS FOR PERMITS.— 
‘‘(1) IN
GENERAL.—Not later than 10 days 
after the date on which the Secretary receives an ap-
plication for any permit to drill, the Secretary 
shall—
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‘‘(A) notify the applicant that the applica-
tion is complete; or 
‘‘(B) notify the applicant that information 
is missing and specify any information that is 
required to be submitted for the application to 
be complete. 
‘‘(2) ISSUANCE OR DEFERRAL.—Not later than 
30 days after the applicant for a permit has sub-
mitted a complete application, the Secretary shall— 
‘‘(A) issue the permit; or 
‘‘(B)(i) defer decision on the permit; and 
‘‘(ii) provide to the applicant a notice that 
specifies any steps that the applicant could take 
for the permit to be issued. 
‘‘(3) REQUIREMENTS FOR DEFERRED APPLICA-
TIONS.— 
‘‘(A) IN GENERAL.—If the Secretary pro-
vides notice under paragraph (2)(B)(ii), the ap-
plicant shall have a period of 2 years from the 
date of receipt of the notice in which to com-
plete all requirements specified by the Sec-
retary, including providing information needed 
for compliance with the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
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‘‘(B) ISSUANCE
OF
DECISION
ON
PER-
MIT.—If the applicant completes the require-
ments within the period specified in subpara-
graph (A), the Secretary shall issue a decision 
on the permit not later than 10 days after the 
date of completion of the requirements de-
scribed in subparagraph (A). 
‘‘(C) DENIAL OF PERMIT.—If the appli-
cant does not complete the requirements within 
the period specified in subparagraph (A), the 
Secretary shall deny the permit. 
‘‘(q) REPORT.—On a quarterly basis, each field office 
of the Bureau of Land Management and the Forest Serv-
ice shall transmit to the Secretary of the Interior or the 
Secretary of Agriculture, respectively, a report that— 
‘‘(1) specifies the number of applications for 
permits to drill received by the field office in the pe-
riod covered by the report; and 
‘‘(2) describes how each of the applications was 
disposed of by the field office.’’. 
SEC. 349. CLARIFICATION OF FAIR MARKET RENTAL VALUE 
DETERMINATIONS FOR PUBLIC LAND AND 
FOREST SERVICE RIGHTS-OF-WAY. 
(a) LINEAR
RIGHTS-OF-WAY
UNDER
FEDERAL 
LAND POLICY AND MANAGEMENT ACT OF 1976.—Section
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504 of the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1764) is amended by adding at the end 
the following: 
‘‘(k) DETERMINATION OF FAIR MARKET VALUE OF 
LINEAR RIGHTS-OF-WAY.— 
‘‘(1) IN GENERAL.—Effective beginning on the 
date of the issuance of the rules required by para-
graph (2), for purposes of subsection (g), the Sec-
retary concerned shall determine the fair market 
value for the use of land encumbered by a linear 
right-of-way granted, issued, or renewed under this 
title using the valuation method described in para-
graphs (2), (3), and (4). 
‘‘(2) REVISIONS.—Not later than 1 year after 
the date of enactment of this subsection— 
‘‘(A) the Secretary of the Interior shall 
amend section 2803.1–2 of title 43, Code of 
Federal Regulations, as in effect on the date of 
enactment of this subsection, to revise the per 
acre rental fee zone value schedule by State, 
county, and type of linear right-of-way use to 
reflect current values of land in each zone; and 
‘‘(B) the Secretary of Agriculture shall 
make the same revision for linear rights-of-way
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granted, issued, or renewed under this title on 
National Forest System land. 
‘‘(3) UPDATES.—The Secretary concerned shall 
annually update the schedule revised under para-
graph (2) by multiplying the current year’s rental 
per acre by the annual change, second quarter to 
second quarter (June 30 to June 30) in the Gross 
National Product Implicit Price Deflator Index pub-
lished in the Survey of Current Business of the De-
partment of Commerce, Bureau of Economic Anal-
ysis. 
‘‘(4) REVIEW.—If the cumulative change in the 
index referred to in paragraph (3) exceeds 30 per-
cent, or the change in the 3-year average of the 1- 
year Treasury interest rate used to determine per 
acre rental fee zone values exceeds plus or minus 50 
percent, the Secretary concerned shall conduct a re-
view of the zones and rental per acre figures to de-
termine whether the value of Federal land has dif-
fered sufficiently from the index referred to in para-
graph (3) to warrant a revision in the base zones 
and rental per acre figures. If, as a result of the re-
view, the Secretary concerned determines that such 
a revision is warranted, the Secretary concerned 
shall revise the base zones and rental per acre fig-
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ures accordingly. Any revision of base zones and 
rental per acre figure shall only affect lease rental 
rates at inception or renewal.’’. 
(b) RIGHTS-OF-WAY
UNDER
MINERAL
LEASING 
ACT.—Section 28(l) of the Mineral Leasing Act (30 
U.S.C. 185(l)) is amended by inserting before the period 
at the end the following: ‘‘using the valuation method de-
scribed in section 2803.1–2 of title 43, Code of Federal 
Regulations, as revised in accordance with section 504(k) 
of the Federal Land Policy and Management Act of 1976 
(43 U.S.C. 1764(k))’’. 
SEC. 350. ENERGY FACILITY RIGHTS-OF-WAY AND COR-
RIDORS ON FEDERAL LAND. 
(a) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary of 
Agriculture and the Secretary of the Interior, in con-
sultation with the Secretary of Commerce, the Sec-
retary of Defense, the Secretary of Energy, and the 
Federal Energy Regulatory Commission, shall sub-
mit to Congress a joint report— 
(A) that addresses— 
(i) the location of existing rights-of- 
way and designated and de facto corridors 
for oil and gas pipelines and electric trans-
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(3) LIMITATION.—The Secretary of the Interior 
and the Secretary of Agriculture shall limit the dis-
tribution of the report and Geographic Information 
System-based information referred to in paragraph 
(1) as necessary for national and infrastructure se-
curity reasons, if either Secretary determines that 
the information may be withheld from public disclo-
sure under a national security or other exception 
under section 552(b) of title 5, United States Code. 
(b) CORRIDOR DESIGNATIONS.— 
(1) 11 CONTIGUOUS
WESTERN
STATES.—Not 
later than 2 years after the date of enactment of 
this Act, the Secretary of Agriculture, the Secretary 
of Commerce, the Secretary of Defense, the Sec-
retary of Energy, and the Secretary of the Interior, 
in consultation with the Federal Energy Regulatory 
Commission and the affected utility industries, shall 
jointly— 
(A) designate, under title V of the Federal 
Land Policy and Management Act of 1976 (43 
U.S.C. 1761 et seq.) and other applicable Fed-
eral laws, corridors for oil and gas pipelines and 
electricity transmission and facilities on Federal 
land in the eleven contiguous Western States 
(as defined in section 103 of the Federal Land
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HR 4503 RDS 
Policy and Management Act of 1976 (43 U.S.C. 
1702)); 
(B) perform any environmental reviews 
that may be required to complete the designa-
tions of corridors for the facilities on Federal 
land in the eleven contiguous Western States; 
and 
(C) incorporate the designated corridors 
into— 
(i) the relevant departmental and 
agency land use and resource management 
plans; or 
(ii) equivalent plans. 
(2) OTHER STATES.—Not later than 4 years 
after the date of enactment of this Act, the Sec-
retary of Agriculture, the Secretary of Commerce, 
the Secretary of Defense, the Secretary of Energy, 
and the Secretary of the Interior, in consultation 
with the Federal Energy Regulatory Commission 
and the affected utility industries, shall jointly— 
(A) identify corridors for oil and gas pipe-
lines and electricity transmission and distribu-
tion facilities on Federal land in the States 
other than those described in paragraph (1); 
and
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(B) schedule prompt action to identify, 
designate, and incorporate the corridors into 
the land use plan. 
(3) ONGOING
RESPONSIBILITIES.—After com-
pleting the requirements under paragraphs (1) and 
(2), the Secretary of Agriculture, the Secretary of 
Commerce, the Secretary of Defense, the Secretary 
of Energy, and the Secretary of the Interior, with 
respect to lands under their respective jurisdictions, 
in consultation with the Federal Energy Regulatory 
Commission and the affected utility industries, shall 
establish procedures that— 
(A) ensure that additional corridors for oil 
and gas pipelines and electricity transmission 
and distribution facilities on Federal land are 
promptly identified and designated; and 
(B) expedite applications to construct or 
modify oil and gas pipelines and electricity 
transmission and distribution facilities within 
the corridors, taking into account prior analyses 
and environmental reviews undertaken during 
the designation of corridors. 
(c) CONSIDERATIONS.—In carrying out this section, 
the Secretaries shall take into account the need for up-
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graded and new electricity transmission and distribution 
facilities to— 
(1) improve reliability; 
(2) relieve congestion; and 
(3) enhance the capability of the national grid 
to deliver electricity. 
(d) DEFINITION OF CORRIDOR.— 
(1) IN GENERAL.—In this section and title V of 
the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1761 et seq.), the term ‘‘corridor’’ 
means— 
(A) a linear strip of land— 
(i) with a width determined with con-
sideration given to technological, environ-
mental, and topographical factors; and 
(ii) that contains, or may in the fu-
ture contain, 1 or more utility, communica-
tion, or transportation facilities; 
(B) a land use designation that is estab-
lished— 
(i) by law; 
(ii) by Secretarial Order; 
(iii) through the land use planning 
process; or
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(iv) by other management decision; 
and 
(C) a designation made for the purpose of 
establishing the preferred location of compatible 
linear facilities and land uses. 
(2) SPECIFICATIONS
OF
CORRIDOR.—On des-
ignation of a corridor under this section, the center-
line, width, and compatible uses of a corridor shall 
be specified. 
SEC. 351. CONSULTATION REGARDING ENERGY RIGHTS-OF- 
WAY ON PUBLIC LAND. 
(a) MEMORANDUM OF UNDERSTANDING.— 
(1) IN
GENERAL.—Not later than 6 months 
after the date of enactment of this Act, the Sec-
retary of Energy, in consultation with the Secretary 
of the Interior, the Secretary of Agriculture, and the 
Secretary of Defense with respect to lands under 
their respective jurisdictions, shall enter into a 
memorandum of understanding to coordinate all ap-
plicable Federal authorizations and environmental 
reviews relating to a proposed or existing utility fa-
cility. To the maximum extent practicable under ap-
plicable law, the Secretary of Energy shall, to ensure 
timely review and permit decisions, coordinate such 
authorizations and reviews with any Indian tribes,
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multi-State entities, and State agencies that are re-
sponsible for conducting any separate permitting 
and environmental reviews of the affected utility fa-
cility. 
(2) CONTENTS.—The memorandum of under-
standing shall include provisions that— 
(A) establish— 
(i) a unified right-of-way application 
form; and 
(ii) an administrative procedure for 
processing right-of-way applications, in-
cluding lines of authority, steps in applica-
tion processing, and timeframes for appli-
cation processing; 
(B) provide for coordination of planning 
relating to the granting of the rights-of-way; 
(C) provide for an agreement among the 
affected Federal agencies to prepare a single 
environmental review document to be used as 
the basis for all Federal authorization decisions; 
and 
(D) provide for coordination of use of 
right-of-way stipulations to achieve consistency. 
(b) NATURAL GAS PIPELINES.—
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(1) IN GENERAL.—With respect to permitting 
activities for interstate natural gas pipelines, the 
May 2002 document entitled ‘‘Interagency Agree-
ment On Early Coordination Of Required Environ-
mental And Historic Preservation Reviews Con-
ducted In Conjunction With The Issuance Of Au-
thorizations To Construct And Operate Interstate 
Natural Gas Pipelines Certificated By The Federal 
Energy Regulatory Commission’’ shall constitute 
compliance with subsection (a). 
(2) REPORT.— 
(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this Act, and 
every 2 years thereafter, agencies that are sig-
natories to the document referred to in para-
graph (1) shall transmit to Congress a report 
on how the agencies under the jurisdiction of 
the Secretaries are incorporating and imple-
menting the provisions of the document referred 
to in paragraph (1). 
(B) CONTENTS.—The report shall ad-
dress— 
(i) efforts to implement the provisions 
of the document referred to in paragraph 
(1);
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(ii) whether the efforts have had a 
streamlining effect; 
(iii) further improvements to the per-
mitting process of the agency; and 
(iv) recommendations for inclusion of 
State and tribal governments in a coordi-
nated permitting process. 
(c) DEFINITION OF UTILITY FACILITY.—In this sec-
tion, the term ‘‘utility facility’’ means any privately, pub-
licly, or cooperatively owned line, facility, or system— 
(1) for the transportation of— 
(A) oil, natural gas, synthetic liquid fuel, 
or gaseous fuel; 
(B) any refined product produced from oil, 
natural gas, synthetic liquid fuel, or gaseous 
fuel; or 
(C) products in support of the production 
of material referred to in subparagraph (A) or 
(B); 
(2) for storage and terminal facilities in connec-
tion with the production of material referred to in 
paragraph (1); or 
(3) for the generation, transmission, and dis-
tribution of electric energy.
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SEC. 352. RENEWABLE ENERGY ON FEDERAL LAND. 
(a) REPORT.— 
(1) IN GENERAL.—Not later than 24 months 
after the date of enactment of this Act, the Sec-
retary of the Interior, in cooperation with the Sec-
retary of Agriculture, shall develop and transmit to 
Congress a report that includes recommendations on 
opportunities to develop renewable energy on— 
(A) public lands under the jurisdiction of 
the Secretary of the Interior; and 
(B) National Forest System lands under 
the jurisdiction of the Secretary of Agriculture. 
(2) CONTENTS.—The report shall include— 
(A) 5-year plans developed by the Sec-
retary of the Interior and the Secretary of Agri-
culture, respectively, for encouraging the devel-
opment of renewable energy consistent with ap-
plicable law and management plans; 
(B) an analysis of— 
(i) the use of rights-of-way, leases, or 
other methods to develop renewable energy 
on such lands; 
(ii) the anticipated benefits of grants, 
loans, tax credits, or other provisions to 
promote renewable energy development on 
such lands; and
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(iii) any issues that the Secretary of 
the Interior or the Secretary of Agriculture 
have encountered in managing renewable 
energy projects on such lands, believe are 
likely to arise in relation to the develop-
ment of renewable energy on such lands; 
(C) a list, developed in consultation with 
the Secretary of Energy and the Secretary of 
Defense, of lands under the jurisdiction of the 
Department of Energy or the Department of 
Defense that would be suitable for development 
for renewable energy, and any recommended 
statutory and regulatory mechanisms for such 
development; and 
(D) any recommendations relating to the 
issues addressed in the report. 
(b) NATIONAL ACADEMY OF SCIENCES STUDY.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Secretary of 
the Interior shall contract with the National Acad-
emy of Sciences to— 
(A) study the potential for the development 
of wind, solar, and ocean energy (including 
tidal, wave, and thermal energy) on the outer 
Continental Shelf;
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(B) assess existing Federal authorities for 
the development of such resources; and 
(C) recommend statutory and regulatory 
mechanisms for such development. 
(2) TRANSMITTAL.—The results of the study 
shall be transmitted to Congress not later than 2 
years after the date of enactment of this Act. 
(c) GENERATION CAPACITY OF ELECTRICITY FROM 
RENEWABLE ENERGY RESOURCES ON PUBLIC LAND.— 
The Secretary of the Interior shall, not later than 10 years 
after the date of enactment of this Act, seek to approve 
renewable energy projects located (or to be located) on 
public lands with a generation capacity of at least 10,000 
megawatts of electricity. 
SEC. 353. ELECTRICITY TRANSMISSION LINE RIGHT-OF- 
WAY, CLEVELAND NATIONAL FOREST AND 
ADJACENT PUBLIC LAND, CALIFORNIA. 
(a) ISSUANCE.— 
(1) IN GENERAL.—Not later than 60 days after 
the completion of the environmental reviews under 
subsection (c), the Secretary of the Interior and the 
Secretary of Agriculture shall issue all necessary 
grants, easements, permits, plan amendments, and 
other approvals to allow for the siting and construc-
tion of a high-voltage electricity transmission line
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right-of-way running approximately north to south 
through the Trabuco Ranger District of the Cleve-
land National Forest in the State of California and 
adjacent lands under the jurisdiction of the Bureau 
of Land Management and the Forest Service. 
(2) INCLUSIONS.—The right-of-way approvals 
under paragraph (1) shall provide all necessary Fed-
eral authorization from the Secretary of the Interior 
and the Secretary of Agriculture for the routing, 
construction, operation, and maintenance of a 500- 
kilovolt transmission line capable of meeting the 
long-term electricity transmission needs of the region 
between the existing Valley-Serrano transmission 
line to the north and the Telega-Escondido trans-
mission line to the south, and for connecting to fu-
ture generating capacity that may be developed in 
the region. 
(b) PROTECTION OF WILDERNESS AREAS.—The Sec-
retary of the Interior and the Secretary of Agriculture 
shall not allow any portion of a transmission line right- 
of-way corridor identified in subsection (a) to enter any 
identified wilderness area in existence as of the date of 
enactment of this Act. 
(c) ENVIRONMENTAL
AND
ADMINISTRATIVE
RE-
VIEWS.—
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(1) DEPARTMENT
OF
INTERIOR
OR
LOCAL 
AGENCY.—The Secretary of the Interior, acting 
through the Director of the Bureau of Land Man-
agement, shall be the lead Federal agency with over-
all responsibility to ensure completion of required 
environmental and other reviews of the approvals to 
be issued under subsection (a). 
(2) NATIONAL FOREST SYSTEM LAND.—For the 
portions of the corridor on National Forest System 
lands, the Secretary of Agriculture shall complete all 
required environmental reviews and administrative 
actions in coordination with the Secretary of the In-
terior. 
(3) EXPEDITIOUS
COMPLETION.—The reviews 
required for issuance of the approvals under sub-
section (a) shall be completed not later than 1 year 
after the date of the enactment of this Act. 
(d) OTHER TERMS AND CONDITIONS.—The trans-
mission line right-of-way shall be subject to such terms 
and conditions as the Secretary of the Interior and the 
Secretary of Agriculture consider necessary, based on the 
environmental reviews under subsection (c), to protect the 
value of historic, cultural, and natural resources under the 
jurisdiction of the Secretary of the Interior or the Sec-
retary of Agriculture.
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(e) PREFERENCE AMONG PROPOSALS.—The Sec-
retary of the Interior and the Secretary of Agriculture 
shall give a preference to any application or preapplication 
proposal for a transmission line right-of-way referred to 
in subsection (a) that was submitted before December 31, 
2002, over all other applications and proposals for the 
same or a similar right-of-way submitted on or after that 
date. 
SEC. 354. SENSE OF CONGRESS REGARDING DEVELOPMENT 
OF MINERALS UNDER PADRE ISLAND NA-
TIONAL SEASHORE. 
(a) FINDINGS.—Congress finds the following: 
(1) Pursuant to Public Law 87–712 (16 U.S.C. 
459d et seq.; popularly known as the ‘‘Federal Ena-
bling Act’’) and various deeds and actions under 
that Act, the United States is the owner of only the 
surface estate of certain lands constituting the 
Padre Island National Seashore. 
(2) Ownership of the oil, gas, and other min-
erals in the subsurface estate of the lands consti-
tuting the Padre Island National Seashore was never 
acquired by the United States, and ownership of 
those interests is held by the State of Texas and pri-
vate parties.
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(3) Public Law 87–712 (16 U.S.C. 459d et 
seq.)— 
(A) expressly contemplated that the United 
States would recognize the ownership and fu-
ture development of the oil, gas, and other min-
erals in the subsurface estate of the lands con-
stituting the Padre Island National Seashore by 
the owners and their mineral lessees; and 
(B) recognized that approval of the State 
of Texas was required to create Padre Island 
National Seashore. 
(4) Approval was given for the creation of 
Padre Island National Seashore by the State of 
Texas through Tex. Rev. Civ. Stat. Ann. Art. 
6077(t) (Vernon 1970), which expressly recognized 
that development of the oil, gas, and other minerals 
in the subsurface of the lands constituting Padre Is-
land National Seashore would be conducted with full 
rights of ingress and egress under the laws of the 
State of Texas. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that with regard to Federal law, any regulation of 
the development of oil, gas, or other minerals in the sub-
surface of the lands constituting Padre Island National
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Seashore should be made as if those lands retained the 
status that the lands had on September 27, 1962. 
SEC. 355. ENCOURAGING PROHIBITION OF OFF-SHORE 
DRILLING IN THE GREAT LAKES. 
Congress encourages— 
(1) the States of Illinois, Michigan, New York, 
Pennsylvania, and Wisconsin to continue to prohibit 
offshore drilling in the Great Lakes for oil and gas; 
and 
(2) the States of Indiana, Minnesota, and Ohio 
to enact a prohibition of such drilling. 
SEC. 356. FINGER LAKES NATIONAL FOREST WITHDRAWAL. 
All Federal land within the boundary of Finger Lakes 
National Forest in the State of New York is withdrawn 
from— 
(1) all forms of entry, appropriation, or disposal 
under the public land laws; and 
(2) disposition under all laws relating to oil and 
gas leasing. 
SEC. 357. STUDY ON LEASE EXCHANGES IN THE ROCKY 
MOUNTAIN FRONT. 
(a) DEFINITIONS.—For the purposes of this section: 
(1) BADGER-TWO MEDICINE AREA.—The term 
‘‘Badger-Two Medicine Area’’ means the Forest 
Service land located in—
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(A) T. 31 N., R. 12–13 W.; 
(B) T. 30 N., R. 11–13 W.; 
(C) T. 29 N., R. 10–16 W.; and 
(D) T. 28 N., R. 10–14 W. 
(2) BLACKLEAF AREA.—The term ‘‘Blackleaf 
Area’’ means the Federal land owned by the Forest 
Service and Bureau of Land Management that is lo-
cated in— 
(A) T. 27 N., R. 9 W.; 
(B) T. 26 N., R. 9–10 W.; 
(C) T. 25 N., R. 8–10 W.; and 
(D) T. 24 N., R. 8–9 W. 
(3) ELIGIBLE LESSEE.—The term ‘‘eligible les-
see’’ means a lessee under a nonproducing lease. 
(4) NONPRODUCING LEASE.—The term ‘‘non-
producing lease’’ means a Federal oil or gas lease— 
(A) that is in existence and in good stand-
ing on the date of enactment of this Act; and 
(B) that is located in the Badger-Two 
Medicine Area or the Blackleaf Area. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(6) STATE.—The term ‘‘State’’ means the State 
of Montana. 
(b) EVALUATION.—
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(1) IN GENERAL.—The Secretary, in consulta-
tion with the Governor of the State, and the eligible 
lessees, shall evaluate opportunities for domestic oil 
and gas production through the exchange of the 
nonproducing leases. 
(2) REQUIREMENTS.—In carrying out the eval-
uation under subsection (a), the Secretary shall— 
(A) consider opportunities for domestic 
production of oil and gas through— 
(i) the exchange of the nonproducing 
leases for oil and gas lease tracts of com-
parable value in the State; and 
(ii) the issuance of bidding, royalty, or 
rental credits for Federal oil and gas leases 
in the State in exchange for the cancella-
tion of the nonproducing leases; 
(B) consider any other appropriate means 
to exchange, or provide compensation for the 
cancellation of, nonproducing leases, subject to 
the consent of the eligible lessees; 
(C) consider the views of any interested 
persons, including the State; 
(D) determine the level of interest of the 
eligible lessees in exchanging the nonproducing 
leases;
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(E) assess the economic impact on the les-
sees and the State of lease exchange, lease can-
cellation, and final judicial or administrative de-
cisions related to the nonproducing leases; and 
(F) provide recommendations on— 
(i) whether to pursue an exchange of 
the nonproducing leases; 
(ii) any changes in laws (including 
regulations) that are necessary for the Sec-
retary to carry out the exchange; and 
(iii) any other appropriate means to 
exchange or provide compensation for the 
cancellation of a nonproducing lease, sub-
ject to the consent of the eligible lessee. 
(c) VALUATION OF NONPRODUCING LEASES.—For 
the purpose of the evaluation under subsection (a), the 
value of a nonproducing lease shall be an amount equal 
to the difference between— 
(1) the sum of— 
(A) the amount paid by the eligible lessee 
for the nonproducing lease; 
(B) any direct expenditures made by the 
eligible lessee before the transmittal of the re-
port in subsection (c) associated with the explo-
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ration and development of the nonproducing 
lease; and 
(C) interest on any amounts under sub-
paragraphs (A) and (B) during the period be-
ginning on the date on which the amount was 
paid and ending on the date on which credits 
are issued under subsection (b)(2)(A)(ii); and 
(2) the sum of the revenues from the nonpro-
ducing lease. 
(d) REPORT TO CONGRESS.—Not later than 2 years 
after the date of the enactment of this Act, the Secretary 
shall initiate the evaluation in subsection (b) and transmit 
to Congress a report on the evaluation. 
SEC. 358. FEDERAL COALBED METHANE REGULATION. 
Any State currently on the list of Affected States es-
tablished under section 1339(b) of the Energy Policy Act 
of 1992 (42 U.S.C. 13368(b)) shall be removed from the 
list if, not later than 3 years after the date of enactment 
of this Act, the State takes, or prior to the date of enact-
ment has taken, any of the actions required for removal 
from the list under such section 1339(b). 
SEC. 359. LIVINGSTON PARISH MINERAL RIGHTS TRANS-
FER. 
(a) AMENDMENTS.—Section 102 of Public Law 102– 
562 (106 Stat. 4234) is amended—
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(1) by striking ‘‘(a) IN GENERAL.—’’; 
(2) by striking ‘‘and subject to the reservation 
in subsection (b),’’; and 
(3) by striking subsection (b). 
(b) IMPLEMENTATION OF AMENDMENT.—The Sec-
retary of the Interior shall execute the legal instruments 
necessary to effectuate the amendment made by sub-
section (a)(3). 
Subtitle D—Alaska Natural Gas 
Pipeline 
SEC. 371. SHORT TITLE. 
This subtitle may be cited as the ‘‘Alaska Natural 
Gas Pipeline Act’’. 
SEC. 372. DEFINITIONS. 
In this subtitle: 
(1) ALASKA NATURAL GAS.—The term ‘‘Alaska 
natural gas’’ means natural gas derived from the 
area of the State of Alaska lying north of 64 degrees 
north latitude. 
(2) ALASKA
NATURAL
GAS
TRANSPORTATION 
PROJECT.—The term ‘‘Alaska natural gas transpor-
tation project’’ means any natural gas pipeline sys-
tem that carries Alaska natural gas to the border 
between Alaska and Canada (including related facili-
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HR 4503 RDS 
ties subject to the jurisdiction of the Commission) 
that is authorized under— 
(A) the Alaska Natural Gas Transpor-
tation Act of 1976 (15 U.S.C. 719 et seq.); or 
(B) section 373. 
(3) ALASKA
NATURAL
GAS
TRANSPORTATION 
SYSTEM.—The term ‘‘Alaska natural gas transpor-
tation system’’ means the Alaska natural gas trans-
portation project authorized under the Alaska Nat-
ural Gas Transportation Act of 1976 (15 U.S.C. 
719 et seq.) and designated and described in section 
2 of the President’s decision. 
(4) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Energy Regulatory Commission. 
(5) FEDERAL COORDINATOR.—The term ‘‘Fed-
eral Coordinator’’ means the head of the Office of 
the Federal Coordinator for Alaska Natural Gas 
Transportation Projects established by section 
376(a). 
(6) PRESIDENT’S DECISION.—The term ‘‘Presi-
dent’s decision’’ means the decision and report to 
Congress on the Alaska natural gas transportation 
system— 
(A) issued by the President on September 
22, 1977, in accordance with section 7 of the
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Alaska Natural Gas Transportation Act of 
1976 (15 U.S.C. 719e); and 
(B) approved by Public Law 95–158 (15 
U.S.C. 719f note; 91 Stat. 1268). 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(8) STATE.—The term ‘‘State’’ means the State 
of Alaska. 
SEC. 373. ISSUANCE OF CERTIFICATE OF PUBLIC CONVEN-
IENCE AND NECESSITY. 
(a) AUTHORITY
OF
THE COMMISSION.—Notwith-
standing the Alaska Natural Gas Transportation Act of 
1976 (15 U.S.C. 719 et seq.), the Commission may, in 
accordance with section 7(c) of the Natural Gas Act (15 
U.S.C. 717f(c)), consider and act on an application for 
the issuance of a certificate of public convenience and ne-
cessity authorizing the construction and operation of an 
Alaska natural gas transportation project other than the 
Alaska natural gas transportation system. 
(b) ISSUANCE OF CERTIFICATE.— 
(1) IN GENERAL.—The Commission shall issue 
a certificate of public convenience and necessity au-
thorizing the construction and operation of an Alas-
ka natural gas transportation project under this sec-
tion if the applicant has satisfied the requirements
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HR 4503 RDS 
of section 7(e) of the Natural Gas Act (15 U.S.C. 
717f(e)). 
(2) CONSIDERATIONS.—In considering an appli-
cation under this section, the Commission shall pre-
sume that— 
(A) a public need exists to construct and 
operate the proposed Alaska natural gas trans-
portation project; and 
(B) sufficient downstream capacity will 
exist to transport the Alaska natural gas mov-
ing through the project to markets in the con-
tiguous United States. 
(c) EXPEDITED APPROVAL PROCESS.—Not later 
than 60 days after the date of issuance of the final envi-
ronmental impact statement under section 374 for an 
Alaska natural gas transportation project, the Commission 
shall issue a final order granting or denying any applica-
tion for a certificate of public convenience and necessity 
for the project under section 7(c) of the Natural Gas Act 
(15 U.S.C. 717f(c)) and this section. 
(d) PROHIBITION OF CERTAIN PIPELINE ROUTE.— 
No license, permit, lease, right-of-way, authorization, or 
other approval required under Federal law for the con-
struction of any pipeline to transport natural gas from
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land within the Prudhoe Bay oil and gas lease area may 
be granted for any pipeline that follows a route that— 
(1) traverses land beneath navigable waters (as 
defined in section 2 of the Submerged Lands Act 
(43 U.S.C. 1301)) beneath, or the adjacent shoreline 
of, the Beaufort Sea; and 
(2) enters Canada at any point north of 68 de-
grees north latitude. 
(e) OPEN SEASON.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of enactment of this Act, the Commis-
sion shall issue regulations governing the conduct of 
open seasons for Alaska natural gas transportation 
projects (including procedures for the allocation of 
capacity). 
(2) REGULATIONS.—The regulations referred to 
in paragraph (1) shall— 
(A) include the criteria for and timing of 
any open seasons; 
(B) promote competition in the explo-
ration, development, and production of Alaska 
natural gas; and 
(C) for any open season for capacity ex-
ceeding the initial capacity, provide the oppor-
tunity for the transportation of natural gas
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other than from the Prudhoe Bay and Point 
Thomson units. 
(3) APPLICABILITY.—Except in a case in which 
an expansion is ordered in accordance with section 
375, initial or expansion capacity on any Alaska nat-
ural gas transportation project shall be allocated in 
accordance with procedures to be established by the 
Commission in regulations issued under paragraph 
(1). 
(f) 
PROJECTS
IN
THE
CONTIGUOUS
UNITED 
STATES.— 
(1) IN GENERAL.—An application for additional 
or expanded pipeline facilities that may be required 
to transport Alaska natural gas from Canada to 
markets in the contiguous United States may be 
made in accordance with the Natural Gas Act (15 
U.S.C. 717a et seq.). 
(2) EXPANSION.—To the extent that a pipeline 
facility described in paragraph (1) includes the ex-
pansion of any facility constructed in accordance 
with the Alaska Natural Gas Transportation Act of 
1976 (15 U.S.C. 719 et seq.), that Act shall con-
tinue to apply. 
(g) STUDY OF IN-STATE NEEDS.—The holder of the 
certificate of public convenience and necessity issued,
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modified, or amended by the Commission for an Alaska 
natural gas transportation project shall demonstrate that 
the holder has conducted a study of Alaska in-State needs, 
including tie-in points along the Alaska natural gas trans-
portation project for in-State access. 
(h) ALASKA ROYALTY GAS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Commission, on a request by the 
State and after a hearing, may provide for reason-
able access to the Alaska natural gas transportation 
project by the State (or State designee) for the 
transportation of royalty gas of the State for the 
purpose of meeting local consumption needs within 
the State. 
(2) EXCEPTION.—The rates of shippers of sub-
scribed capacity on an Alaska natural gas transpor-
tation project described in paragraph (1), as in ef-
fect as of the date on which access under that para-
graph is granted, shall not be increased as a result 
of such access. 
(i) REGULATIONS.—The Commission may issue such 
regulations as are necessary to carry out this section. 
SEC. 374. ENVIRONMENTAL REVIEWS. 
(a) COMPLIANCE WITH NEPA.—The issuance of a 
certificate of public convenience and necessity authorizing
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the construction and operation of any Alaska natural gas 
transportation project under section 373 shall be treated 
as a major Federal action significantly affecting the qual-
ity of the human environment within the meaning of sec-
tion 102(2)(C) of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4332(2)(C)). 
(b) DESIGNATION OF LEAD AGENCY.— 
(1) IN GENERAL.—The Commission— 
(A) shall be the lead agency for purposes 
of complying with the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.); 
and 
(B) shall be responsible for preparing the 
environmental impact statement required by 
section 102(2)(c) of that Act (42 U.S.C. 
4332(2)(c)) with respect to an Alaska natural 
gas transportation project under section 373. 
(2) CONSOLIDATION OF STATEMENTS.—In car-
rying out paragraph (1), the Commission shall pre-
pare a single environmental impact statement, which 
shall consolidate the environmental reviews of all 
Federal agencies considering any aspect of the Alas-
ka natural gas transportation project covered by the 
environmental impact statement. 
(c) OTHER AGENCIES.—
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HR 4503 RDS 
(1) IN GENERAL.—Each Federal agency consid-
ering an aspect of the construction and operation of 
an Alaska natural gas transportation project under 
section 373 shall— 
(A) cooperate with the Commission; and 
(B) comply with deadlines established by 
the Commission in the preparation of the envi-
ronmental impact statement under this section. 
(2) SATISFACTION OF NEPA REQUIREMENTS.— 
The environmental impact statement prepared under 
this section shall be adopted by each Federal agency 
described in paragraph (1) in satisfaction of the re-
sponsibilities of the Federal agency under section 
102(2)(C) of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4332(2)(C)) with respect to the 
Alaska natural gas transportation project covered by 
the environmental impact statement. 
(d) EXPEDITED PROCESS.—The Commission shall— 
(1) not later than 1 year after the Commission 
determines that the application under section 373 
with respect to an Alaska natural gas transportation 
project is complete, issue a draft environmental im-
pact statement under this section; and 
(2) not later than 180 days after the date of 
issuance of the draft environmental impact state-
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HR 4503 RDS 
ment, issue a final environmental impact statement, 
unless the Commission for good cause determines 
that additional time is needed. 
SEC. 375. PIPELINE EXPANSION. 
(a) AUTHORITY.—With respect to any Alaska natural 
gas transportation project, on a request by 1 or more per-
sons and after giving notice and an opportunity for a hear-
ing, the Commission may order the expansion of the Alas-
ka natural gas project if the Commission determines that 
such an expansion is required by the present and future 
public convenience and necessity. 
(b) RESPONSIBILITIES OF COMMISSION.—Before or-
dering an expansion under subsection (a), the Commission 
shall— 
(1) approve or establish rates for the expansion 
service that are designed to ensure the recovery, on 
an incremental or rolled-in basis, of the cost associ-
ated with the expansion (including a reasonable rate 
of return on investment); 
(2) ensure that the rates do not require existing 
shippers on the Alaska natural gas transportation 
project to subsidize expansion shippers; 
(3) find that a proposed shipper will comply 
with, and the proposed expansion and the expansion 
of service will be undertaken and implemented based
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on, terms and conditions consistent with the tariff of 
the Alaska natural gas transportation project in ef-
fect as of the date of the expansion; 
(4) find that the proposed facilities will not ad-
versely affect the financial or economic viability of 
the Alaska natural gas transportation project; 
(5) find that the proposed facilities will not ad-
versely affect the overall operations of the Alaska 
natural gas transportation project; 
(6) find that the proposed facilities will not di-
minish the contract rights of existing shippers to 
previously subscribed certificated capacity; 
(7) ensure that all necessary environmental re-
views have been completed; and 
(8) find that adequate downstream facilities 
exist or are expected to exist to deliver incremental 
Alaska natural gas to market. 
(c) REQUIREMENT FOR A FIRM TRANSPORTATION 
AGREEMENT.—Any order of the Commission issued in ac-
cordance with this section shall be void unless the person 
requesting the order executes a firm transportation agree-
ment with the Alaska natural gas transportation project 
within such reasonable period of time as the order may 
specify.
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(d) LIMITATION.—Nothing in this section expands or 
otherwise affects any authority of the Commission with 
respect to any natural gas pipeline located outside the 
State. 
(e) REGULATIONS.—The Commission may issue such 
regulations as are necessary to carry out this section. 
SEC. 376. FEDERAL COORDINATOR. 
(a) ESTABLISHMENT.—There is established, as an 
independent office in the executive branch, the Office of 
the Federal Coordinator for Alaska Natural Gas Trans-
portation Projects. 
(b) FEDERAL COORDINATOR.— 
(1) APPOINTMENT.—The Office shall be headed 
by a Federal Coordinator for Alaska Natural Gas 
Transportation Projects, who shall be appointed by 
the President, by and with the advice and consent 
of the Senate, to serve a term to last until 1 year 
following the completion of the project referred to in 
section 373. 
(2) COMPENSATION.—The Federal Coordinator 
shall be compensated at the rate prescribed for level 
III of the Executive Schedule (5 U.S.C. 5314). 
(c) DUTIES.—The Federal Coordinator shall be re-
sponsible for—
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(1) coordinating the expeditious discharge of all 
activities by Federal agencies with respect to an 
Alaska natural gas transportation project; and 
(2) ensuring the compliance of Federal agencies 
with the provisions of this subtitle. 
(d) REVIEWS AND ACTIONS OF OTHER FEDERAL 
AGENCIES.— 
(1) EXPEDITED
REVIEWS
AND
ACTIONS.—All 
reviews conducted and actions taken by any Federal 
agency relating to an Alaska natural gas transpor-
tation project authorized under this section shall be 
expedited, in a manner consistent with completion of 
the necessary reviews and approvals by the deadlines 
under this subtitle. 
(2) PROHIBITION OF CERTAIN TERMS AND CON-
DITIONS.—No Federal agency may include in any 
certificate, right-of-way, permit, lease, or other au-
thorization issued to an Alaska natural gas trans-
portation project any term or condition that may be 
permitted, but is not required, by any applicable law 
if the Federal Coordinator determines that the term 
or condition would prevent or impair in any signifi-
cant respect the expeditious construction and oper-
ation, or an expansion, of the Alaska natural gas 
transportation project.
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(3) PROHIBITION OF CERTAIN ACTIONS.—Un-
less required by law, no Federal agency shall add to, 
amend, or abrogate any certificate, right-of-way, per-
mit, lease, or other authorization issued to an Alas-
ka natural gas transportation project if the Federal 
Coordinator determines that the action would pre-
vent or impair in any significant respect the expedi-
tious construction and operation, or an expansion, of 
the Alaska natural gas transportation project. 
(4) LIMITATION.—The Federal Coordinator 
shall not have authority to— 
(A) override— 
(i) the implementation or enforcement 
of regulations issued by the Commission 
under section 373; or 
(ii) an order by the Commission to ex-
pand the project under section 375; or 
(B) impose any terms, conditions, or re-
quirements in addition to those imposed by the 
Commission or any agency with respect to con-
struction and operation, or an expansion of, the 
project. 
(e) STATE COORDINATION.— 
(1) IN
GENERAL.—The Federal Coordinator 
and the State shall enter into a joint surveillance
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and monitoring agreement similar to the agreement 
in effect during construction of the Trans-Alaska 
Pipeline, to be approved by the President and the 
Governor of the State, for the purpose of monitoring 
the construction of the Alaska natural gas transpor-
tation project. 
(2) PRIMARY
RESPONSIBILITY.—With respect 
to an Alaska natural gas transportation project— 
(A) the Federal Government shall have pri-
mary surveillance and monitoring responsibility 
in areas where the Alaska natural gas transpor-
tation project crosses Federal land or private 
land; and 
(B) the State government shall have pri-
mary surveillance and monitoring responsibility 
in areas where the Alaska natural gas transpor-
tation project crosses State land. 
(f) TRANSFER OF FEDERAL INSPECTOR FUNCTIONS 
AND AUTHORITY.—On appointment of the Federal Coor-
dinator by the President, all of the functions and authority 
of the Office of Federal Inspector of Construction for the 
Alaska Natural Gas Transportation System vested in the 
Secretary under section 3012(b) of the Energy Policy Act 
of 1992 (15 U.S.C. 719e note; Public Law 102–486), in-
cluding all functions and authority described and enumer-
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ated in the Reorganization Plan No. 1 of 1979 (44 Fed. 
Reg. 33663), Executive Order No. 12142 of June 21, 
1979 (44 Fed. Reg. 36927), and section 5 of the Presi-
dent’s decision, shall be transferred to the Federal Coordi-
nator. 
(g) TEMPORARY AUTHORITY.—The functions, au-
thorities, duties, and responsibilities of the Federal Coor-
dinator shall be vested in the Secretary until the later of 
the appointment of the Federal Coordinator by the Presi-
dent, or 18 months after the date of enactment of this 
Act. 
SEC. 377. JUDICIAL REVIEW. 
(a) EXCLUSIVE JURISDICTION.—Except for review by 
the Supreme Court on writ of certiorari, the United States 
Court of Appeals for the District of Columbia Circuit shall 
have original and exclusive jurisdiction to determine— 
(1) the validity of any final order or action (in-
cluding a failure to act) of any Federal agency or of-
ficer under this subtitle; 
(2) the constitutionality of any provision of this 
subtitle, or any decision made or action taken under 
this subtitle; or 
(3) the adequacy of any environmental impact 
statement prepared under the National Environ-
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mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
with respect to any action under this subtitle. 
(b) DEADLINE FOR FILING CLAIM.—A claim arising 
under this subtitle may be brought not later than 60 days 
after the date of the decision or action giving rise to the 
claim. 
(c) 
EXPEDITED
CONSIDERATION.—The 
United 
States Court of Appeals for the District of Columbia Cir-
cuit shall set any action brought under subsection (a) for 
expedited consideration, taking into account the national 
interest of enhancing national energy security by providing 
access to the significant gas reserves in Alaska needed to 
meet the anticipated demand for natural gas. 
(d) AMENDMENT OF THE ALASKA NATURAL GAS 
TRANSPORTATION ACT OF 1976.—Section 10(c) of the 
Alaska Natural Gas Transportation Act of 1976 (15 
U.S.C. 719h) is amended— 
(1) by striking ‘‘(c)(1) A claim’’ and inserting 
the following: 
‘‘(c) JURISDICTION.— 
‘‘(1) SPECIAL COURTS.— 
‘‘(A) IN GENERAL.—A claim’’; 
(2) by striking ‘‘Such court shall have’’ and in-
serting the following:
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‘‘(B) 
EXCLUSIVE
JURISDICTION.—The 
Special Court shall have’’; 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) EXPEDITED
CONSIDERATION.—The Spe-
cial Court shall set any action brought under this 
section for expedited consideration, taking into ac-
count the national interest described in section 2.’’; 
and 
(4) in paragraph (3), by striking ‘‘(3) The en-
actment’’ and inserting the following: 
‘‘(3) ENVIRONMENTAL IMPACT STATEMENTS.— 
The enactment’’. 
SEC. 378. STATE JURISDICTION OVER IN-STATE DELIVERY 
OF NATURAL GAS. 
(a) LOCAL DISTRIBUTION.—Any facility receiving 
natural gas from an Alaska natural gas transportation 
project for delivery to consumers within the State— 
(1) shall be deemed to be a local distribution fa-
cility within the meaning of section 1(b) of the Nat-
ural Gas Act (15 U.S.C. 717(b)); and 
(2) shall not be subject to the jurisdiction of the 
Commission. 
(b) ADDITIONAL PIPELINES.—Except as provided in 
section 373(d), nothing in this subtitle shall preclude or
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otherwise affect a future natural gas pipeline that may 
be constructed to deliver natural gas to Fairbanks, An-
chorage, Matanuska-Susitna Valley, or the Kenai penin-
sula or Valdez or any other site in the State for consump-
tion within or distribution outside the State. 
(c) RATE COORDINATION.— 
(1) IN GENERAL.—In accordance with the Nat-
ural Gas Act (15 U.S.C. 717a et seq.), the Commis-
sion shall establish rates for the transportation of 
natural gas on any Alaska natural gas transpor-
tation project. 
(2) CONSULTATION.—In carrying out para-
graph (1), the Commission, in accordance with sec-
tion 17(b) of the Natural Gas Act (15 U.S.C. 
717p(b)), shall consult with the State regarding 
rates (including rate settlements) applicable to nat-
ural gas transported on and delivered from the Alas-
ka natural gas transportation project for use within 
the State. 
SEC. 379. STUDY OF ALTERNATIVE MEANS OF CONSTRUC-
TION. 
(a) REQUIREMENT OF STUDY.—If no application for 
the issuance of a certificate or amended certificate of pub-
lic convenience and necessity authorizing the construction 
and operation of an Alaska natural gas transportation
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project has been filed with the Commission by the date 
that is 18 months after the date of enactment of this Act, 
the Secretary shall conduct a study of alternative ap-
proaches to the construction and operation of such an 
Alaska natural gas transportation project. 
(b) SCOPE OF STUDY.—The study under subsection 
(a) shall take into consideration the feasibility of— 
(1) establishing a Federal Government corpora-
tion to construct an Alaska natural gas transpor-
tation project; and 
(2) securing alternative means of providing 
Federal financing and ownership (including alter-
native combinations of Government and private cor-
porate ownership) of the Alaska natural gas trans-
portation project. 
(c) CONSULTATION.—In conducting the study under 
subsection (a), the Secretary shall consult with the Sec-
retary of the Treasury and the Secretary of the Army (act-
ing through the Chief of Engineers). 
(d) REPORT.—On completion of any study under sub-
section (a), the Secretary shall submit to Congress a re-
port that describes— 
(1) the results of the study; and
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(2) any recommendations of the Secretary (in-
cluding proposals for legislation to implement the 
recommendations). 
SEC. 380. CLARIFICATION OF ANGTA STATUS AND AU-
THORITIES. 
(a) SAVINGS CLAUSE.—Nothing in this subtitle af-
fects— 
(1) any decision, certificate, permit, right-of- 
way, lease, or other authorization issued under sec-
tion 9 of the Alaska Natural Gas Transportation Act 
of 1976 (15 U.S.C. 719g); or 
(2) any Presidential finding or waiver issued in 
accordance with that Act. 
(b) CLARIFICATION
OF
AUTHORITY
TO
AMEND 
TERMS AND CONDITIONS TO MEET CURRENT PROJECT 
REQUIREMENTS.—Any Federal agency responsible for 
granting or issuing any certificate, permit, right-of-way, 
lease, or other authorization under section 9 of the Alaska 
Natural Gas Transportation Act of 1976 (15 U.S.C. 
719g) may add to, amend, or rescind any term or condi-
tion included in the certificate, permit, right-of-way, lease, 
or other authorization to meet current project require-
ments (including the physical design, facilities, and tariff 
specifications), if the addition, amendment, or rescission—
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(1) would not compel any change in the basic 
nature and general route of the Alaska natural gas 
transportation system as designated and described in 
section 2 of the President’s decision; or 
(2) would not otherwise prevent or impair in 
any significant respect the expeditious construction 
and initial operation of the Alaska natural gas 
transportation system. 
(c) UPDATED ENVIRONMENTAL REVIEWS.—The Sec-
retary shall require the sponsor of the Alaska natural gas 
transportation system to submit such updated environ-
mental data, reports, permits, and impact analyses as the 
Secretary determines are necessary to develop detailed 
terms, conditions, and compliance plans required by sec-
tion 5 of the President’s decision. 
SEC. 381. SENSE OF CONGRESS CONCERNING USE OF 
STEEL MANUFACTURED IN NORTH AMERICA 
NEGOTIATION OF A PROJECT LABOR AGREE-
MENT. 
It is the sense of Congress that— 
(1) an Alaska natural gas transportation 
project would provide significant economic benefits 
to the United States and Canada; and
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(2) to maximize those benefits, the sponsors of 
the Alaska natural gas transportation project should 
make every effort to— 
(A) use steel that is manufactured in 
North America; and 
(B) negotiate a project labor agreement to 
expedite construction of the pipeline. 
SEC. 382. SENSE OF CONGRESS AND STUDY CONCERNING 
PARTICIPATION BY SMALL BUSINESS CON-
CERNS. 
(a) DEFINITION OF SMALL BUSINESS CONCERN.— 
In this section, the term ‘‘small business concern’’ has the 
meaning given the term in section 3(a) of the Small Busi-
ness Act (15 U.S.C. 632(a)). 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) an Alaska natural gas transportation 
project would provide significant economic benefits 
to the United States and Canada; and 
(2) to maximize those benefits, the sponsors of 
the Alaska natural gas transportation project should 
maximize the participation of small business con-
cerns in contracts and subcontracts awarded in car-
rying out the project. 
(c) STUDY.—
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(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study to determine 
the extent to which small business concerns partici-
pate in the construction of oil and gas pipelines in 
the United States. 
(2) REPORT.—Not later that 1 year after the 
date of enactment of this Act, the Comptroller Gen-
eral shall submit to Congress a report that describes 
results of the study under paragraph (1). 
(3) 
UPDATES.—The 
Comptroller 
General 
shall— 
(A) update the study at least once every 5 
years until construction of an Alaska natural 
gas transportation project is completed; and 
(B) on completion of each update, submit 
to Congress a report containing the results of 
the update. 
SEC. 383. ALASKA PIPELINE CONSTRUCTION TRAINING 
PROGRAM. 
(a) PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary of Labor 
(in this section referred to as the ‘‘Secretary’’) shall 
make grants to the Alaska Workforce Investment 
Board—
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(A) to recruit and train adult and dis-
located workers in Alaska, including Alaska Na-
tives, in the skills required to construct and op-
erate an Alaska gas pipeline system; and 
(B) for the design and construction of a 
training facility to be located in Fairbanks, 
Alaska, to support an Alaska gas pipeline train-
ing program. 
(2) 
COORDINATION
WITH
EXISTING
PRO-
GRAMS.—The training program established with the 
grants authorized under paragraph (1) shall be con-
sistent with the vision and goals set forth in the 
State of Alaska Unified Plan, as developed pursuant 
to the Workforce Investment Act of 1998 (29 U.S.C. 
2801 et seq.). 
(b) REQUIREMENTS FOR GRANTS.—The Secretary 
shall make a grant under subsection (a) only if— 
(1) the Governor of the State of Alaska re-
quests the grant funds and certifies in writing to the 
Secretary that there is a reasonable expectation that 
the construction of the Alaska natural gas pipeline 
system will commence by the date that is 2 years 
after the date of the certification; and
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(2) the Secretary of Energy concurs in writing 
to the Secretary with the certification made under 
paragraph (1) after considering— 
(A) the status of necessary Federal and 
State permits; 
(B) the availability of financing for the 
Alaska natural gas pipeline project; and 
(C) other relevant factors. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section $20,000,000. Not more than 15 percent 
of the funds may be used for the facility described in sub-
section (a)(1)(B). 
SEC. 384. SENSE OF CONGRESS CONCERNING NATURAL 
GAS DEMAND. 
It is the sense of Congress that— 
(1) North American demand for natural gas 
will increase dramatically over the course of the next 
several decades; 
(2) both the Alaska Natural Gas Pipeline and 
the Mackenzie Delta Natural Gas project in Canada 
will be necessary to help meet the increased demand 
for natural gas in North America; 
(3) Federal and State officials should work to-
gether with officials in Canada to ensure both
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projects can move forward in a mutually beneficial 
fashion; 
(4) Federal and State officials should acknowl-
edge that the smaller scope, fewer permitting re-
quirements, and lower cost of the Mackenzie Delta 
project means it will most likely be completed before 
the Alaska Natural Gas Pipeline; 
(5) natural gas production in the 48 contiguous 
States and Canada will not be able to meet all do-
mestic demand in the coming decades; and 
(6) as a result, natural gas delivered from Alas-
kan North Slope will not displace or reduce the com-
mercial viability of Canadian natural gas produced 
from the Mackenzie Delta or production from the 48 
contiguous States. 
SEC. 385. SENSE OF CONGRESS CONCERNING ALASKAN 
OWNERSHIP. 
It is the sense of Congress that— 
(1) Alaska Native Regional Corporations, com-
panies owned and operated by Alaskans, and indi-
vidual Alaskans should have the opportunity to own 
shares of the Alaska natural gas pipeline in a way 
that promotes economic development for the State; 
and
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(2) to facilitate economic development in the 
State, all project sponsors should negotiate in good 
faith with any willing Alaskan person that desires to 
be involved in the project. 
SEC. 386. LOAN GUARANTEES. 
(a) AUTHORITY.—(1) The Secretary may enter into 
agreements with 1 or more holders of a certificate of pub-
lic convenience and necessity issued under section 373(b) 
of this Act or section 9 of the Alaska Natural Gas Trans-
portation Act of 1976 (15 U.S.C. 719g) to issue Federal 
guarantee instruments with respect to loans and other 
debt obligations for a qualified infrastructure project. 
(2) Subject to the requirements of this section, the 
Secretary may also enter into agreements with 1 or more 
owners of the Canadian portion of a qualified infrastruc-
ture project to issue Federal guarantee instruments with 
respect to loans and other debt obligations for a qualified 
infrastructure project as though such owner were a holder 
described in paragraph (1). 
(3) The authority of the Secretary to issue Federal 
guarantee instruments under this section for a qualified 
infrastructure project shall expire on the date that is 2 
years after the date on which the final certificate of public 
convenience and necessity (including any Canadian certifi-
cates of public convenience and necessity) is issued for the
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project. A final certificate shall be considered to have been 
issued when all certificates of public convenience and ne-
cessity have been issued that are required for the initial 
transportation of commercially economic quantities of nat-
ural gas from Alaska to the continental United States. 
(b) CONDITIONS.—(1) The Secretary may issue a 
Federal guarantee instrument for a qualified infrastruc-
ture project only after a certificate of public convenience 
and necessity under section 373(b) of this Act or an 
amended certificate under section 9 of the Alaska Natural 
Gas Transportation Act of 1976 (15 U.S.C. 719g) has 
been issued for the project. 
(2) The Secretary may issue a Federal guarantee in-
strument under this section for a qualified infrastructure 
project only if the loan or other debt obligation guaranteed 
by the instrument has been issued by an eligible lender. 
(3) The Secretary shall not require as a condition of 
issuing a Federal guarantee instrument under this section 
any contractual commitment or other form of credit sup-
port of the sponsors (other than equity contribution com-
mitments and completion guarantees), or any throughput 
or other guarantee from prospective shippers greater than 
such guarantees as shall be required by the project own-
ers.
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(c) LIMITATIONS ON AMOUNTS.—(1) The amount of 
loans and other debt obligations guaranteed under this 
section for a qualified infrastructure project shall not ex-
ceed 80 percent of the total capital costs of the project, 
including interest during construction. 
(2) The principal amount of loans and other debt ob-
ligations guaranteed under this section shall not exceed, 
in the aggregate, $18,000,000,000, which amount shall be 
indexed for United States dollar inflation from the date 
of enactment of this Act, as measured by the Consumer 
Price Index. 
(d) LOAN TERMS AND FEES.—(1) The Secretary 
may issue Federal guarantee instruments under this sec-
tion that take into account repayment profiles and grace 
periods justified by project cash flows and project-specific 
considerations. The term of any loan guaranteed under 
this section shall not exceed 30 years. 
(2) An eligible lender may assess and collect from the 
borrower such other fees and costs associated with the ap-
plication and origination of the loan or other debt obliga-
tion as are reasonable and customary for a project finance 
transaction in the oil and gas sector. 
(e) REGULATIONS.—The Secretary may issue regula-
tions to carry out this section.
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(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to cover the cost of loan guarantees under this 
section, as defined by section 502(5) of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a(5)). Such sums shall 
remain available until expended. 
(g) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) The term ‘‘Consumer Price Index’’ means 
the Consumer Price Index for all-urban consumers, 
United States city average, as published by the Bu-
reau of Labor Statistics, or if such index shall cease 
to be published, any successor index or reasonable 
substitute thereof. 
(2) The term ‘‘eligible lender’’ means any non- 
Federal qualified institutional buyer (as defined by 
section 230.144A(a) of title 17, Code of Federal 
Regulations (or any successor regulation), known as 
Rule 144A(a) of the Securities and Exchange Com-
mission and issued under the Securities Act of 
1933), including— 
(A) a qualified retirement plan (as defined 
in section 4974(c) of the Internal Revenue Code 
of 1986 (26 U.S.C. 4974(c)) that is a qualified 
institutional buyer; and
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(B) a governmental plan (as defined in 
section 414(d) of the Internal Revenue Code of 
1986 (26 U.S.C. 414(d)) that is a qualified in-
stitutional buyer. 
(3) The term ‘‘Federal guarantee instrument’’ 
means any guarantee or other pledge by the Sec-
retary to pledge the full faith and credit of the 
United States to pay all of the principal and interest 
on any loan or other debt obligation entered into by 
a holder of a certificate of public convenience and 
necessity. 
(4) The term ‘‘qualified infrastructure project’’ 
means an Alaskan natural gas transportation project 
consisting of the design, engineering, finance, con-
struction, and completion of pipelines and related 
transportation and production systems (including 
gas treatment plants), and appurtenances thereto, 
that are used to transport natural gas from the 
Alaska North Slope to the continental United 
States.
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TITLE IV—COAL 
Subtitle A—Clean Coal Power 
Initiative 
SEC. 401. AUTHORIZATION OF APPROPRIATIONS. 
(a) CLEAN COAL POWER INITIATIVE.—There are au-
thorized to be appropriated to the Secretary of Energy (re-
ferred to in this title as the ‘‘Secretary’’) to carry out the 
activities authorized by this subtitle $200,000,000 for 
each of fiscal years 2004 through 2012, to remain avail-
able until expended. 
(b) REPORT.—The Secretary shall submit to Con-
gress the report required by this subsection not later than 
March 31, 2005. The report shall include, with respect 
to subsection (a), a 10-year plan containing— 
(1) a detailed assessment of whether the aggre-
gate funding levels provided under subsection (a) are 
the appropriate funding levels for that program; 
(2) a detailed description of how proposals will 
be solicited and evaluated, including a list of all ac-
tivities expected to be undertaken; 
(3) a detailed list of technical milestones for 
each coal and related technology that will be pur-
sued; and 
(4) a detailed description of how the program 
will avoid problems enumerated in General Account-
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ing Office reports on the Clean Coal Technology 
Program, including problems that have resulted in 
unspent funds and projects that failed either finan-
cially or scientifically. 
SEC. 402. PROJECT CRITERIA. 
(a) IN GENERAL.—The Secretary shall not provide 
funding under this subtitle for any project that does not 
advance efficiency, environmental performance, and cost 
competitiveness well beyond the level of technologies that 
are in commercial service or have been demonstrated on 
a scale that the Secretary determines is sufficient to dem-
onstrate that commercial service is viable as of the date 
of enactment of this Act. 
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER 
INITIATIVE.— 
(1) GASIFICATION PROJECTS.— 
(A) IN GENERAL.—In allocating the funds 
made available under section 401(a), the Sec-
retary shall ensure that at least 60 percent of 
the funds are used only for projects on coal- 
based gasification technologies, including gasifi-
cation combined cycle, gasification fuel cells, 
gasification coproduction, and hybrid gasifi-
cation/combustion.
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(B) TECHNICAL
MILESTONES.—The Sec-
retary shall periodically set technical milestones 
specifying the emission and thermal efficiency 
levels that coal gasification projects under this 
subtitle shall be designed, and reasonably ex-
pected, to achieve. The technical milestones 
shall become more restrictive during the life of 
the program. The Secretary shall set the peri-
odic milestones so as to achieve by 2020 coal 
gasification projects able— 
(i) to remove 99 percent of sulfur di-
oxide; 
(ii) to emit not more than .05 lbs of 
NOx per million Btu; 
(iii) to achieve substantial reductions 
in mercury emissions; and 
(iv) to achieve a thermal efficiency 
of— 
(I) 60 percent for coal of more 
than 9,000 Btu; 
(II) 59 percent for coal of 7,000 
to 9,000 Btu; and 
(III) 50 percent for coal of less 
than 7,000 Btu.
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(2) OTHER PROJECTS.—The Secretary shall pe-
riodically set technical milestones and ensure that up 
to 40 percent of the funds appropriated pursuant to 
section 401(a) are used for projects not described in 
paragraph (1). The milestones shall specify the 
emission and thermal efficiency levels that projects 
funded under this paragraph shall be designed to 
and reasonably expected to achieve. The technical 
milestones shall become more restrictive during the 
life of the program. The Secretary shall set the peri-
odic milestones so as to achieve by 2010 projects 
able— 
(A) to remove 97 percent of sulfur dioxide; 
(B) to emit no more than .08 lbs of NOx 
per million Btu; 
(C) to achieve substantial reductions in 
mercury emissions; and 
(D) to achieve a thermal efficiency of— 
(i) 45 percent for coal of more than 
9,000 Btu; 
(ii) 44 percent for coal of 7,000 to 
9,000 Btu; and 
(iii) 40 percent for coal of less than 
7,000 Btu.
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(3) CONSULTATION.—Before setting the tech-
nical milestones under paragraphs (1)(B) and (2), 
the Secretary shall consult with the Administrator of 
the Environmental Protection Agency and interested 
entities, including coal producers, industries using 
coal, organizations to promote coal or advanced coal 
technologies, environmental organizations, and orga-
nizations representing workers. 
(4) EXISTING UNITS.—In the case of projects 
at units in existence on the date of enactment of this 
Act, in lieu of the thermal efficiency requirements 
set forth in paragraph (1)(B)(iv) and (2)(D), the 
milestones shall be designed to achieve an overall 
thermal design efficiency improvement, compared to 
the efficiency of the unit as operated, of not less 
than— 
(A) 7 percent for coal of more than 9,000 
Btu; 
(B) 6 percent for coal of 7,000 to 9,000 
Btu; or 
(C) 4 percent for coal of less than 7,000 
Btu. 
(5) PERMITTED
USES.—In carrying out this 
subtitle, the Secretary may fund projects that in-
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clude, as part of the project, the separation and cap-
ture of carbon dioxide. 
(c) FINANCIAL CRITERIA.—The Secretary shall not 
provide a funding award under this subtitle unless the re-
cipient documents to the satisfaction of the Secretary 
that— 
(1) the award recipient is financially viable 
without the receipt of additional Federal funding; 
(2) the recipient will provide sufficient informa-
tion to the Secretary to enable the Secretary to en-
sure that the award funds are spent efficiently and 
effectively; and 
(3) a market exists for the technology being 
demonstrated or applied, as evidenced by statements 
of interest in writing from potential purchasers of 
the technology. 
(d) FINANCIAL ASSISTANCE.—The Secretary shall 
provide financial assistance to projects that meet the re-
quirements of subsections (a), (b), and (c) and are likely 
to— 
(1) achieve overall cost reductions in the utiliza-
tion of coal to generate useful forms of energy; 
(2) improve the competitiveness of coal among 
various forms of energy in order to maintain a diver-
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sity of fuel choices in the United States to meet elec-
tricity generation requirements; and 
(3) demonstrate methods and equipment that 
are applicable to 25 percent of the electricity gener-
ating facilities, using various types of coal, that use 
coal as the primary feedstock as of the date of en-
actment of this Act. 
(e) FEDERAL SHARE.—The Federal share of the cost 
of a coal or related technology project funded by the Sec-
retary under this subtitle shall not exceed 50 percent. 
(f) APPLICABILITY.—No technology, or level of emis-
sion reduction, shall be treated as adequately dem-
onstrated for purposes of section 111 of the Clean Air Act 
(42 U.S.C. 7411), achievable for purposes of section 169 
of that Act (42 U.S.C. 7479), or achievable in practice 
for purposes of section 171 of that Act (42 U.S.C. 7501) 
solely by reason of the use of such technology, or the 
achievement of such emission reduction, by 1 or more fa-
cilities receiving assistance under this subtitle. 
SEC. 403. REPORT. 
Not later than 1 year after the date of enactment 
of this Act, and once every 2 years thereafter through 
2012, the Secretary, in consultation with other appro-
priate Federal agencies, shall submit to Congress a report 
describing—
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(1) the technical milestones set forth in section 
402 and how those milestones ensure progress to-
ward meeting the requirements of subsections 
(b)(1)(B) and (b)(2) of section 402; and 
(2) the status of projects funded under this 
subtitle. 
SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE. 
As part of the program authorized in section 401, 
the Secretary shall award competitive, merit-based grants 
to universities for the establishment of Centers of Excel-
lence for Energy Systems of the Future. The Secretary 
shall provide grants to universities that show the greatest 
potential for advancing new clean coal technologies. 
Subtitle B—Clean Power Projects 
SEC. 411. COAL TECHNOLOGY LOAN. 
There are authorized to be appropriated to the Sec-
retary $125,000,000 to provide a loan to the owner of the 
experimental plant constructed under United States De-
partment of Energy cooperative agreement number DE- 
FC-22–91PC90544 on such terms and conditions as the 
Secretary determines, including interest rates and upfront 
payments. 
SEC. 412. COAL GASIFICATION. 
The Secretary is authorized to provide loan guaran-
tees for a project to produce energy from a plant using
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integrated gasification combined cycle technology of at 
least 400 megawatts in capacity that produces power at 
competitive rates in deregulated energy generation mar-
kets and that does not receive any subsidy (direct or indi-
rect) from ratepayers. 
SEC. 413. INTEGRATED GASIFICATION COMBINED CYCLE 
TECHNOLOGY. 
The Secretary is authorized to provide loan guaran-
tees for a project to produce energy from a plant using 
integrated gasification combined cycle technology located 
in a taconite-producing region of the United States that 
is entitled under the law of the State in which the plant 
is located to enter into a long-term contract approved by 
a State Public Utility Commission to sell at least 450 
megawatts of output to a utility. 
SEC. 414. PETROLEUM COKE GASIFICATION. 
The Secretary is authorized to provide loan guaran-
tees 
for 
at 
least 
petroleum 
coke 
gasification 
polygeneration project. 
SEC. 415. INTEGRATED COAL/RENEWABLE ENERGY SYS-
TEM. 
The Secretary is authorized, subject to the avail-
ability of appropriations, to provide loan guarantees for 
a project to produce energy from coal of less than 7000 
btu/lb using appropriate advanced integrated gasification
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combined cycle technology, including repowering of exist-
ing facilities, that is combined with wind and other renew-
able sources, minimizes and offers the potential to seques-
ter carbon dioxide emissions, and provides a ready source 
of hydrogen for near-site fuel cell demonstrations. The fa-
cility may be built in stages, combined output shall be at 
least 200 megawatts at successively more competitive 
rates, and the facility shall be located in the Upper Great 
Plains. Section 402(b) technical criteria apply, and the 
Federal cost share shall not exceed 50 percent. The loan 
guarantees provided under this section do not preclude the 
facility from receiving an allocation for investment tax 
credits under section 48A of the Internal Revenue Code 
of 1986. Utilizing this investment tax credit does not pro-
hibit the use of other Clean Coal Program funding. 
SEC. 416. ELECTRON SCRUBBING DEMONSTRATION. 
The Secretary shall use $5,000,000 from amounts 
appropriated to initiate, through the Chicago Operations 
Office, a project to demonstrate the viability of high-en-
ergy electron scrubbing technology on commercial-scale 
electrical generation using high-sulfur coal.
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Subtitle C—Federal Coal Leases 
SEC. 421. REPEAL OF THE 160-ACRE LIMITATION FOR COAL 
LEASES. 
Section 3 of the Mineral Leasing Act (30 U.S.C. 203) 
is amended— 
(1) in the first sentence— 
(A) by striking ‘‘Any person’’ and inserting 
‘‘(a) Any person’’; 
(B) by inserting a comma after ‘‘may’’; 
and 
(C) by striking ‘‘upon’’ and all that follows 
through the period and inserting the following: 
‘‘upon a finding by the Secretary that the 
lease— 
‘‘(1) would be in the interest of the United 
States; 
‘‘(2) would not displace a competitive interest 
in the land; and 
‘‘(3) would not include land or deposits that can 
be developed as part of another potential or existing 
operation; 
secure modifications of the original coal lease by including 
additional coal land or coal deposits contiguous or cor-
nering to those embraced in the lease, but in no event shall 
the total area added by any modifications to an existing
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coal lease exceed 1280 acres, or add acreage larger than 
the acreage in the original lease.’’; 
(2) in the second sentence, by striking ‘‘The 
Secretary’’ and inserting the following: 
‘‘(b) The Secretary’’; and 
(3) in the third sentence, by striking ‘‘The min-
imum’’ and inserting the following: 
‘‘(c) The minimum’’. 
SEC. 422. MINING PLANS. 
Section 2(d)(2) of the Mineral Leasing Act (30 
U.S.C. 202a(2)) is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and 
(2) by adding at the end the following: 
‘‘(B) The Secretary may establish a period of more 
than 40 years if the Secretary determines that the longer 
period— 
‘‘(i) will ensure the maximum economic recovery 
of a coal deposit; or 
‘‘(ii) the longer period is in the interest of the 
orderly, efficient, or economic development of a coal 
resource.’’. 
SEC. 423. PAYMENT OF ADVANCE ROYALTIES UNDER COAL 
LEASES. 
Section 7(b) of the Mineral Leasing Act (30 U.S.C. 
207(b)) is amended to read as follows:
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‘‘(b)(1) Each lease shall be subjected to the condition 
of diligent development and continued operation of the 
mine or mines, except in a case in which operations under 
the lease are interrupted by strikes, the elements, or cas-
ualties not attributable to the lessee. 
‘‘(2)(A) The Secretary of the Interior may suspend 
the condition of continued operation upon the payment of 
advance royalties, if the Secretary determines that the 
public interest will be served by the suspension. 
‘‘(B) Advance royalties required under subparagraph 
(A) shall be computed based on— 
‘‘(i) the average price for coal sold in the spot 
market from the same region during the last month 
of each applicable continued operation year; or 
‘‘(ii) by using other methods established by the 
Secretary of the Interior to capture the commercial 
value of coal, 
and based on commercial quantities, as defined by regula-
tion by the Secretary of the Interior. 
‘‘(C) The aggregate number of years during the ini-
tial and any extended term of any lease for which advance 
royalties may be accepted in lieu of the condition of contin-
ued operation shall not exceed 20. 
‘‘(3) The amount of any production royalty paid for 
any year shall be reduced (but not below 0) by the amount
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of any advance royalties paid under the lease, to the extent 
that the advance royalties have not been used to reduce 
production royalties for a prior year. 
‘‘(4) The Secretary may, upon 6 months’ notice to 
a lessee, cease to accept advance royalties in lieu of the 
requirement of continued operation. 
‘‘(5) Nothing in this subsection affects the require-
ment contained in the second sentence of subsection (a) 
relating to commencement of production at the end of 10 
years.’’. 
SEC. 424. ELIMINATION OF DEADLINE FOR SUBMISSION OF 
COAL LEASE OPERATION AND RECLAMATION 
PLAN. 
Section 7(c) of the Mineral Leasing Act (30 U.S.C. 
207(c)) is amended in the first sentence by striking ‘‘and 
not later than three years after a lease is issued,’’. 
SEC. 425. AMENDMENT RELATING TO FINANCIAL ASSUR-
ANCES WITH RESPECT TO BONUS BIDS. 
Section 2(a) of the Mineral Leasing Act (30 U.S.C. 
201(a)) is amended by adding at the end the following: 
‘‘(4)(A) The Secretary shall not require a surety bond 
or any other financial assurance to guarantee payment of 
deferred bonus bid installments with respect to any coal 
lease issued on a cash bonus bid to a lessee or successor 
in interest having a history of a timely payment of noncon-
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tested coal royalties and advanced coal royalties in lieu 
of production (where applicable) and bonus bid installment 
payments. 
‘‘(B) The Secretary may waive any requirement that 
a lessee provide a surety bond or other financial assurance 
for a coal lease issued before the date of the enactment 
of the Energy Policy Act of 2003 only if the Secretary 
determines that the lessee has a history of making timely 
payments referred to in subparagraph (A). 
‘‘(5) Notwithstanding any other provision of law, if 
the lessee under a coal lease fails to pay any installment 
of a deferred cash bonus bid within 10 days after the Sec-
retary provides written notice that payment of the install-
ment is past due— 
‘‘(A) the lease shall automatically terminate; 
and 
‘‘(B) any bonus payments already made to the 
United States with respect to the lease shall not be 
returned to the lessee or credited in any future lease 
sale.’’. 
SEC. 426. INVENTORY REQUIREMENT. 
(a) REVIEW OF ASSESSMENTS.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior, in consultation with the Secretary of Agri-
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culture and the Secretary, shall review coal assess-
ments and other available data to identify— 
(A) public lands, other than National Park 
lands, with coal resources; 
(B) the extent and nature of any restric-
tions or impediments to the development of coal 
resources on public lands identified under sub-
paragraph (A); and 
(C) with respect to areas of such lands for 
which sufficient data exists, resources of com-
pliant coal and supercompliant coal. 
(2) DEFINITIONS.—In this subsection: 
(A) COMPLIANT COAL.—The term ‘‘compli-
ant coal’’ means coal that contains not less 
than 1.0 and not more than 1.2 pounds of sul-
fur dioxide per million Btu. 
(B) SUPERCOMPLIANT
COAL.—The term 
‘‘supercompliant coal’’ means coal that contains 
less than 1.0 pounds of sulfur dioxide per mil-
lion Btu. 
(b) COMPLETION AND UPDATING OF THE INVEN-
TORY.—The Secretary of the Interior— 
(1) shall complete the inventory under sub-
section (a)(1) by not later than 2 years after the 
date of the enactment of this Act; and
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(2) shall update the inventory as the availability 
of data and developments in technology warrant. 
(c) REPORT.—The Secretary of the Interior shall 
submit to Congress, and make publicly available— 
(1) a report containing the inventory under this 
section by not later than 2 years after the effective 
date of this section; and 
(2) each update of that inventory. 
SEC. 427. APPLICATION OF AMENDMENTS. 
The amendments made by this subtitle apply— 
(1) with respect to any coal lease issued on or 
after the date of enactment of this Act; and 
(2) with respect to any coal lease issued before 
the date of enactment of this Act, upon the earlier 
of— 
(A) the date of readjustment of the lease 
as provided for by section 7(a) of the Mineral 
Leasing Act (30 U.S.C. 207(a)); or 
(B) the date the lessee requests such appli-
cation.
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Subtitle D—Coal and Related 
Programs 
SEC. 441. CLEAN AIR COAL PROGRAM. 
(a) AMENDMENT.—The Energy Policy Act of 1992 
is amended by adding the following new title at the end 
thereof: 
‘‘TITLE XXXI—CLEAN AIR COAL 
PROGRAM 
‘‘SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS. 
‘‘(a) FINDINGS.—The Congress finds that— 
‘‘(1) new environmental regulations present ad-
ditional challenges for coal-fired electrical generation 
in the private marketplace; and 
‘‘(2) the Department of Energy, in cooperation 
with industry, has already fully developed and com-
mercialized several new clean-coal technologies that 
will allow the clean use of coal. 
‘‘(b) PURPOSES.—The purposes of this title are to— 
‘‘(1) promote national energy policy and energy 
security, diversity, and economic competitiveness 
benefits that result from the increased use of coal; 
‘‘(2) mitigate financial risks, reduce the cost, 
and increase the marketplace acceptance of the new 
clean coal technologies; and
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‘‘(3) advance the deployment of pollution con-
trol equipment to meet the current and future obli-
gations of coal-fired generation units regulated 
under the Clean Air Act (42 U.S.C. 7402 and fol-
lowing). 
‘‘SEC. 3102. AUTHORIZATION OF PROGRAM. 
‘‘The Secretary shall carry out a program to facilitate 
production and generation of coal-based power and the in-
stallation of pollution control equipment. 
‘‘SEC. 3103. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) POLLUTION CONTROL PROJECTS.—There are 
authorized 
to 
be 
appropriated 
to 
the 
Secretary 
$300,000,000 for fiscal year 2005, $100,000,000 for fis-
cal year 2006, $40,000,000 for fiscal year 2007, 
$30,000,000 for fiscal year 2008, and $30,000,000 for fis-
cal year 2009, to remain available until expended, for car-
rying out the program for pollution control projects, which 
may include— 
‘‘(1) pollution control equipment and processes 
for the control of mercury air emissions; 
‘‘(2) pollution control equipment and processes 
for the control of nitrogen dioxide air emissions or 
sulfur dioxide emissions;
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‘‘(3) pollution control equipment and processes 
for the mitigation or collection of more than one pol-
lutant; 
‘‘(4) advanced combustion technology for the 
control of at least two pollutants, including mercury, 
particulate matter, nitrogen oxides, and sulfur diox-
ide, which may also be designed to improve the en-
ergy efficiency of the unit; and 
‘‘(5) advanced pollution control equipment and 
processes designed to allow use of the waste byprod-
ucts or other byproducts of the equipment or an 
electrical generation unit designed to allow the use 
of byproducts. 
Funds appropriated under this subsection which are not 
awarded before fiscal year 2011 may be applied to projects 
under subsection (b), in addition to amounts authorized 
under subsection (b). 
‘‘(b) GENERATION PROJECTS.—There are authorized 
to be appropriated to the Secretary $150,000,000 for fis-
cal year 2006, $250,000,000 for each of the fiscal years 
2007 through 2011, and $100,000,000 for fiscal year 
2012, to remain available until expended, for generation 
projects and air pollution control projects. Such projects 
may include—
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‘‘(1) coal-based electrical generation equipment 
and processes, including gasification combined cycle 
or other coal-based generation equipment and proc-
esses; 
‘‘(2) associated environmental control equip-
ment, that will be cost-effective and that is designed 
to meet anticipated regulatory requirements; 
‘‘(3) coal-based electrical generation equipment 
and processes, including gasification fuel cells, gas-
ification coproduction, and hybrid gasification/com-
bustion projects; and 
‘‘(4) advanced coal-based electrical generation 
equipment and processes, including oxidation com-
bustion techniques, ultra-supercritical boilers, and 
chemical looping, which the Secretary determines 
will be cost-effective and could substantially con-
tribute to meeting anticipated environmental or en-
ergy needs. 
‘‘(c) LIMITATION.—Funds placed at risk during any 
fiscal year for Federal loans or loan guarantees pursuant 
to this title may not exceed 30 percent of the total funds 
obligated under this title. 
‘‘SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA. 
‘‘The Secretary shall pursuant to authorizations con-
tained in section 3103 provide funding for air pollution
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control projects designed to facilitate compliance with 
Federal and State environmental regulations, including 
any regulation that may be established with respect to 
mercury. 
‘‘SEC. 3105. CRITERIA FOR GENERATION PROJECTS. 
‘‘(a) CRITERIA.—The Secretary shall establish cri-
teria on which selection of individual projects described in 
section 3103(b) should be based. The Secretary may mod-
ify the criteria as appropriate to reflect improvements in 
equipment, except that the criteria shall not be modified 
to be less stringent. These selection criteria shall include— 
‘‘(1) prioritization of projects whose installation 
is likely to result in significant air quality improve-
ments in nonattainment air quality areas; 
‘‘(2) prioritization of projects that result in the 
repowering or replacement of older, less efficient 
units; 
‘‘(3) documented broad interest in the procure-
ment of the equipment and utilization of the proc-
esses used in the projects by electrical generator 
owners or operators; 
‘‘(4) equipment and processes beginning in 
2005 through 2010 that are projected to achieve an 
thermal efficiency of—
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‘‘(A) 40 percent for coal of more than 
9,000 Btu per pound based on higher heating 
values; 
‘‘(B) 38 percent for coal of 7,000 to 9,000 
Btu per pound based on higher heating values; 
and 
‘‘(C) 36 percent for coal of less than 7,000 
Btu per pound based on higher heating values, 
except that energy used for coproduction or cogen-
eration shall not be counted in calculating the ther-
mal efficiency under this paragraph; and 
‘‘(5) equipment and processes beginning in 
2011 and 2012 that are projected to achieve an 
thermal efficiency of— 
‘‘(A) 45 percent for coal of more than 
9,000 Btu per pound based on higher heating 
values; 
‘‘(B) 44 percent for coal of 7,000 to 9,000 
Btu per pound based on higher heating values; 
and 
‘‘(C) 40 percent for coal of less than 7,000 
Btu per pound based on higher heating values, 
except that energy used for coproduction or cogen-
eration shall not be counted in calculating the ther-
mal efficiency under this paragraph.
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‘‘(b) SELECTION.—(1) In selecting the projects, up 
to 25 percent of the projects selected may be either co-
production or cogeneration or other gasification projects, 
but at least 25 percent of the projects shall be for the 
sole purpose of electrical generation, and priority should 
be given to equipment and projects less than 600 MW to 
foster and promote standard designs. 
‘‘(2) The Secretary shall give priority to projects that 
have been developed and demonstrated that are not yet 
cost competitive, and for coal energy generation projects 
that advance efficiency, environmental performance, or 
cost competitiveness significantly beyond the level of pollu-
tion control equipment that is in operation on a full scale. 
‘‘SEC. 3106. FINANCIAL CRITERIA. 
‘‘(a) IN GENERAL.—The Secretary shall only provide 
financial assistance to projects that meet the requirements 
of sections 3103 and 3104 and are likely to— 
‘‘(1) achieve overall cost reductions in the utili-
zation of coal to generate useful forms of energy; 
and 
‘‘(2) improve the competitiveness of coal in 
order to maintain a diversity of domestic fuel choices 
in the United States to meet electricity generation 
requirements.
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‘‘(b) CONDITIONS.—The Secretary shall not provide 
a funding award under this title unless— 
‘‘(1) the award recipient is financially viable 
without the receipt of additional Federal funding; 
and 
‘‘(2) the recipient provides sufficient informa-
tion to the Secretary for the Secretary to ensure 
that the award funds are spent efficiently and effec-
tively. 
‘‘(c) EQUAL ACCESS.—The Secretary shall, to the ex-
tent practical, utilize cooperative agreement, loan guar-
antee, and direct Federal loan mechanisms designed to en-
sure that all electrical generation owners have equal access 
to these technology deployment incentives. The Secretary 
shall develop and direct a competitive solicitation process 
for the selection of technologies and projects under this 
title. 
‘‘SEC. 3107. FEDERAL SHARE. 
‘‘The Federal share of the cost of a coal or related 
technology project funded by the Secretary under this title 
shall not exceed 50 percent. For purposes of this title, 
Federal funding includes only appropriated funds. 
‘‘SEC. 3108. APPLICABILITY. 
‘‘No technology, or level of emission reduction, shall 
be treated as adequately demonstrated for purposes of sec-
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tion 111 of the Clean Air Act (42 U.S.C. 7411), achievable 
for purposes of section 169 of the Clean Air Act (42 
U.S.C. 7479), or achievable in practice for purposes of 
section 171 of the Clean Air Act (42 U.S.C. 7501) solely 
by reason of the use of such technology, or the achieve-
ment of such emission reduction, by one or more facilities 
receiving assistance under this title.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents of the Energy Policy Act of 1992 is amended 
by adding at the end the following: 
‘‘TITLE XXXI CLEAN AIR COAL PROGRAM 
‘‘Sec. 3101. Findings; purposes; definitions. 
‘‘Sec. 3102. Authorization of program. 
‘‘Sec. 3103. Authorization of appropriations. 
‘‘Sec. 3104. Air pollution control project criteria. 
‘‘Sec. 3105. Criteria for generation projects. 
‘‘Sec. 3106. Financial criteria. 
‘‘Sec. 3107. Federal share. 
‘‘Sec. 3108. Applicability.’’. 
TITLE V—INDIAN ENERGY 
SEC. 501. SHORT TITLE. 
This title may be cited as the ‘‘Indian Tribal Energy 
Development and Self-Determination Act of 2004’’. 
SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PRO-
GRAMS. 
(a) IN GENERAL.—Title II of the Department of En-
ergy Organization Act (42 U.S.C. 7131 et seq.) is amend-
ed by adding at the end the following:
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‘‘OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS 
‘‘SEC. 217. (a) ESTABLISHMENT.—There is estab-
lished within the Department an Office of Indian Energy 
Policy and Programs (referred to in this section as the 
‘Office’). The Office shall be headed by a Director, who 
shall be appointed by the Secretary and compensated at 
a rate equal to that of level IV of the Executive Schedule 
under section 5315 of title 5, United States Code. 
‘‘(b) DUTIES OF DIRECTOR.—The Director, in ac-
cordance with Federal policies promoting Indian self-de-
termination and the purposes of this Act, shall provide, 
direct, foster, coordinate, and implement energy planning, 
education, management, conservation, and delivery pro-
grams of the Department that— 
‘‘(1) promote Indian tribal energy development, 
efficiency, and use; 
‘‘(2) reduce or stabilize energy costs; 
‘‘(3) enhance and strengthen Indian tribal en-
ergy and economic infrastructure relating to natural 
resource development and electrification; and 
‘‘(4) bring electrical power and service to In-
dian land and the homes of tribal members located 
on Indian lands or acquired, constructed, or im-
proved (in whole or in part) with Federal funds.’’. 
(b) CONFORMING AMENDMENTS.—
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(1) The table of contents of the Department of 
Energy Organization Act (42 U.S.C. prec. 7101) is 
amended— 
(A) in the item relating to section 209, by 
striking ‘‘Section’’ and inserting ‘‘Sec.’’; and 
(B) by striking the items relating to sec-
tions 213 through 216 and inserting the fol-
lowing: 
‘‘Sec. 213. Establishment of policy for National Nuclear Security Administra-
tion. 
‘‘Sec. 214. Establishment of security, counterintelligence, and intelligence poli-
cies. 
‘‘Sec. 215. Office of Counterintelligence. 
‘‘Sec. 216. Office of Intelligence. 
‘‘Sec. 217. Office of Indian Energy Policy and Programs.’’. 
(2) Section 5315 of title 5, United States Code, 
is amended by inserting ‘‘Director, Office of Indian 
Energy Policy and Programs, Department of En-
ergy.’’ after ‘‘Inspector General, Department of En-
ergy.’’. 
SEC. 503. INDIAN ENERGY. 
(a) IN GENERAL.—Title XXVI of the Energy Policy 
Act of 1992 (25 U.S.C. 3501 et seq.) is amended to read 
as follows: 
‘‘TITLE XXVI—INDIAN ENERGY 
‘‘SEC. 2601. DEFINITIONS. 
‘‘For purposes of this title:
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‘‘(1) The term ‘Director’ means the Director of 
the Office of Indian Energy Policy and Programs, 
Department of Energy. 
‘‘(2) The term ‘Indian land’ means— 
‘‘(A) any land located within the bound-
aries of an Indian reservation, pueblo, or 
rancheria; 
‘‘(B) any land not located within the 
boundaries of an Indian reservation, pueblo, or 
rancheria, the title to which is held— 
‘‘(i) in trust by the United States for 
the benefit of an Indian tribe or an indi-
vidual Indian; 
‘‘(ii) by an Indian tribe or an indi-
vidual Indian, subject to restriction against 
alienation under laws of the United States; 
or 
‘‘(iii) by a dependent Indian commu-
nity; and 
‘‘(C) land that is owned by an Indian tribe 
and was conveyed by the United States to a 
Native Corporation pursuant to the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et 
seq.), or that was conveyed by the United
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States to a Native Corporation in exchange for 
such land. 
‘‘(3) The term ‘Indian reservation’ includes— 
‘‘(A) an Indian reservation in existence in 
any State or States as of the date of enactment 
of this paragraph; 
‘‘(B) a public domain Indian allotment; 
and 
‘‘(C) a dependent Indian community lo-
cated within the borders of the United States, 
regardless of whether the community is lo-
cated— 
‘‘(i) on original or acquired territory 
of the community; or 
‘‘(ii) within or outside the boundaries 
of any particular State. 
‘‘(4) The term ‘Indian tribe’ has the meaning 
given the term in section 4 of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 
450b), except that the term ‘Indian tribe’, for the 
purpose of paragraph (11) and sections 2603(b)(3) 
and 2604, shall not include any Native Corporation. 
‘‘(5) The term ‘integration of energy resources’ 
means any project or activity that promotes the loca-
tion and operation of a facility (including any pipe-
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line, gathering system, transportation system or fa-
cility, or electric transmission or distribution facility) 
on or near Indian land to process, refine, generate 
electricity from, or otherwise develop energy re-
sources on, Indian land. 
‘‘(6) The term ‘Native Corporation’ has the 
meaning given the term in section 3 of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602). 
‘‘(7) The term ‘organization’ means a partner-
ship, joint venture, limited liability company, or 
other unincorporated association or entity that is es-
tablished to develop Indian energy resources. 
‘‘(8) The term ‘Program’ means the Indian en-
ergy resource development program established 
under section 2602(a). 
‘‘(9) The term ‘Secretary’ means the Secretary 
of the Interior. 
‘‘(10) The term ‘tribal energy resource develop-
ment organization’ means an organization of 2 or 
more entities, at least 1 of which is an Indian tribe, 
that has the written consent of the governing bodies 
of all Indian tribes participating in the organization 
to apply for a grant, loan, or other assistance au-
thorized by section 2602.
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‘‘(11) The term ‘tribal land’ means any land or 
interests in land owned by any Indian tribe, title to 
which is held in trust by the United States or which 
is subject to a restriction against alienation under 
laws of the United States. 
‘‘SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOP-
MENT. 
‘‘(a) DEPARTMENT OF THE INTERIOR PROGRAM.— 
‘‘(1) To assist Indian tribes in the development 
of energy resources and further the goal of Indian 
self-determination, the Secretary shall establish and 
implement an Indian energy resource development 
program to assist consenting Indian tribes and tribal 
energy resource development organizations in achiev-
ing the purposes of this title. 
‘‘(2) In carrying out the Program, the Sec-
retary shall— 
‘‘(A) provide development grants to Indian 
tribes and tribal energy resource development 
organizations for use in developing or obtaining 
the managerial and technical capacity needed to 
develop energy resources on Indian land, and to 
properly account for resulting energy produc-
tion and revenues;
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‘‘(B) provide grants to Indian tribes and 
tribal energy resource development organiza-
tions for use in carrying out projects to pro-
mote the integration of energy resources, and to 
process, use, or develop those energy resources, 
on Indian land; and 
‘‘(C) provide low-interest loans to Indian 
tribes and tribal energy resource development 
organizations for use in the promotion of en-
ergy resource development on Indian land and 
integration of energy resources. 
‘‘(3) There are authorized to be appropriated to 
carry out this subsection such sums as are necessary 
for each of fiscal years 2004 through 2014. 
‘‘(b) DEPARTMENT
OF ENERGY INDIAN ENERGY 
EDUCATION PLANNING AND MANAGEMENT ASSISTANCE 
PROGRAM.— 
‘‘(1) The Director shall establish programs to 
assist consenting Indian tribes in meeting energy 
education, research and development, planning, and 
management needs. 
‘‘(2) In carrying out this subsection, the Direc-
tor may provide grants, on a competitive basis, to an 
Indian tribe or tribal energy resource development 
organization for use in carrying out—
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‘‘(A) energy, energy efficiency, and energy 
conservation programs; 
‘‘(B) studies and other activities sup-
porting tribal acquisitions of energy supplies, 
services, and facilities; 
‘‘(C) planning, construction, development, 
operation, maintenance, and improvement of 
tribal electrical generation, transmission, and 
distribution facilities located on Indian land; 
and 
‘‘(D) development, construction, and inter-
connection of electric power transmission facili-
ties located on Indian land with other electric 
transmission facilities. 
‘‘(3)(A) The Director may develop, in consulta-
tion with Indian tribes, a formula for providing 
grants under this subsection. 
‘‘(B) In providing a grant under this sub-
section, the Director shall give priority to an applica-
tion received from an Indian tribe with inadequate 
electric service (as determined by the Director). 
‘‘(4) The Secretary of Energy may issue such 
regulations as necessary to carry out this subsection.
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‘‘(5) There are authorized to be appropriated to 
carry out this subsection $20,000,000 for each of 
fiscal years 2004 through 2014. 
‘‘(c) DEPARTMENT OF ENERGY LOAN GUARANTEE 
PROGRAM.— 
‘‘(1) Subject to paragraph (3), the Secretary of 
Energy may provide loan guarantees (as defined in 
section 502 of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a)) for not more than 90 percent 
of the unpaid principal and interest due on any loan 
made to any Indian tribe for energy development. 
‘‘(2) A loan guarantee under this subsection 
shall be made by— 
‘‘(A) a financial institution subject to ex-
amination by the Secretary of Energy; or 
‘‘(B) an Indian tribe, from funds of the In-
dian tribe. 
‘‘(3) The aggregate outstanding amount guar-
anteed by the Secretary of Energy at any time under 
this subsection shall not exceed $2,000,000,000. 
‘‘(4) The Secretary of Energy may issue such 
regulations as the Secretary of Energy determines 
are necessary to carry out this subsection.
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‘‘(5) There are authorized to be appropriated 
such sums as are necessary to carry out this sub-
section, to remain available until expended. 
‘‘(6) Not later than 1 year from the date of en-
actment of this section, the Secretary of Energy 
shall report to Congress on the financing require-
ments of Indian tribes for energy development on In-
dian land. 
‘‘(d) FEDERAL AGENCIES-INDIAN ENERGY PREF-
ERENCE.— 
‘‘(1) In purchasing electricity or any other en-
ergy product or byproduct, a Federal agency or de-
partment may give preference to an energy and re-
source production enterprise, partnership, consor-
tium, corporation, or other type of business organi-
zation the majority of the interest in which is owned 
and controlled by 1 or more Indian tribes. 
‘‘(2) In carrying out this subsection, a Federal 
agency or department shall not— 
‘‘(A) pay more than the prevailing market 
price for an energy product or byproduct; or 
‘‘(B) obtain less than prevailing market 
terms and conditions.
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‘‘SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULA-
TION. 
‘‘(a) GRANTS.—The Secretary may provide to Indian 
tribes, on an annual basis, grants for use in accordance 
with subsection (b). 
‘‘(b) USE OF FUNDS.—Funds from a grant provided 
under this section may be used— 
‘‘(1) by an Indian tribe for the development of 
a tribal energy resource inventory or tribal energy 
resource on Indian land; 
‘‘(2) by an Indian tribe for the development of 
a feasibility study or other report necessary to the 
development of energy resources on Indian land; 
‘‘(3) by an Indian tribe (other than an Indian 
Tribe in Alaska except the Metlakatla Indian Com-
munity) for the development and enforcement of 
tribal laws (including regulations) relating to tribal 
energy resource development and the development of 
technical infrastructure to protect the environment 
under applicable law; or 
‘‘(4) by a Native Corporation for the develop-
ment and implementation of corporate policies and 
the development of technical infrastructure to pro-
tect the environment under applicable law; and 
‘‘(5) by an Indian tribe for the training of em-
ployees that—
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‘‘(A) are engaged in the development of en-
ergy resources on Indian land; or 
‘‘(B) are responsible for protecting the en-
vironment. 
‘‘(c) OTHER ASSISTANCE.—In carrying out the obli-
gations of the United States under this title, the Secretary 
shall ensure, to the maximum extent practicable and to 
the extent of available resources, that upon the request 
of an Indian tribe, the Indian tribe shall have available 
scientific and technical information and expertise, for use 
in the Indian tribe’s regulation, development, and manage-
ment of energy resources on Indian land. The Secretary 
may fulfill this responsibility either directly, through the 
use of Federal officials, or indirectly, by providing finan-
cial assistance to the Indian tribe to secure independent 
assistance. 
‘‘SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS- 
OF-WAY INVOLVING ENERGY DEVELOPMENT 
OR TRANSMISSION. 
‘‘(a) LEASES AND BUSINESS AGREEMENTS.—Subject 
to the provisions of this section— 
‘‘(1) an Indian tribe may, at its discretion, 
enter into a lease or business agreement for the pur-
pose of energy resource development on tribal land, 
including a lease or business agreement for—
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‘‘(A) exploration for, extraction of, proc-
essing of, or other development of the Indian 
tribe’s energy mineral resources located on trib-
al land; and 
‘‘(B) construction or operation of an elec-
tric generation, transmission, or distribution fa-
cility located on tribal land or a facility to proc-
ess or refine energy resources developed on trib-
al land; and 
‘‘(2) such lease or business agreement described 
in paragraph (1) shall not require the approval of 
the Secretary under section 2103 of the Revised 
Statutes (25 U.S.C. 81) or any other provision of 
law, if— 
‘‘(A) the lease or business agreement is ex-
ecuted pursuant to a tribal energy resource 
agreement approved by the Secretary under 
subsection (e); 
‘‘(B) the term of the lease or business 
agreement does not exceed— 
‘‘(i) 30 years; or 
‘‘(ii) in the case of a lease for the pro-
duction of oil resources, gas resources, or 
both, 10 years and as long thereafter as oil
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or gas is produced in paying quantities; 
and 
‘‘(C) the Indian tribe has entered into a 
tribal energy resource agreement with the Sec-
retary, as described in subsection (e), relating 
to the development of energy resources on tribal 
land (including the periodic review and evalua-
tion of the activities of the Indian tribe under 
the agreement, to be conducted pursuant to the 
provisions required by subsection (e)(2)(D)(i)). 
‘‘(b) RIGHTS-OF-WAY FOR PIPELINES OR ELECTRIC 
TRANSMISSION
OR DISTRIBUTION LINES.—An Indian 
tribe may grant a right-of-way over tribal land for a pipe-
line or an electric transmission or distribution line without 
approval by the Secretary if— 
‘‘(1) the right-of-way is executed in accordance 
with a tribal energy resource agreement approved by 
the Secretary under subsection (e); 
‘‘(2) the term of the right-of-way does not ex-
ceed 30 years; 
‘‘(3) the pipeline or electric transmission or dis-
tribution line serves— 
‘‘(A) an electric generation, transmission, 
or distribution facility located on tribal land; or
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‘‘(B) a facility located on tribal land that 
processes or refines energy resources developed 
on tribal land; and 
‘‘(4) the Indian tribe has entered into a tribal 
energy resource agreement with the Secretary, as de-
scribed in subsection (e), relating to the development 
of energy resources on tribal land (including the 
periodic review and evaluation of the Indian tribe’s 
activities under such agreement described in sub-
paragraphs (D) and (E) of subsection (e)(2)). 
‘‘(c) RENEWALS.—A lease or business agreement en-
tered into or a right-of-way granted by an Indian tribe 
under this section may be renewed at the discretion of the 
Indian tribe in accordance with this section. 
‘‘(d) VALIDITY.—No lease, business agreement, or 
right-of-way relating to the development of tribal energy 
resources pursuant to the provisions of this section shall 
be valid unless the lease, business agreement, or right-of- 
way is authorized by the provisions of a tribal energy re-
source agreement approved by the Secretary under sub-
section (e)(2). 
‘‘(e) TRIBAL ENERGY RESOURCE AGREEMENTS.— 
‘‘(1) On issuance of regulations under para-
graph (8), an Indian tribe may submit to the Sec-
retary for approval a tribal energy resource agree-
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ment governing leases, business agreements, and 
rights-of-way under this section. 
‘‘(2)(A) Not later than 180 days after the date 
on which the Secretary receives a tribal energy re-
source agreement submitted by an Indian tribe 
under paragraph (1), or not later than 60 days after 
the Secretary receives a revised tribal energy re-
source agreement submitted by an Indian tribe 
under paragraph (4)(C), (or such later date as may 
be agreed to by the Secretary and the Indian tribe), 
the Secretary shall approve or disapprove the tribal 
energy resource agreement. 
‘‘(B) The Secretary shall approve a tribal en-
ergy resource agreement submitted under paragraph 
(1) if— 
‘‘(i) the Secretary determines that the In-
dian tribe has demonstrated that the Indian 
tribe has sufficient capacity to regulate the de-
velopment of energy resources of the Indian 
tribe; 
‘‘(ii) the tribal energy resource agreement 
includes provisions required under subpara-
graph (D); and 
‘‘(iii) the tribal energy resource agreement 
includes provisions that, with respect to a lease,
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business agreement, or right-of-way under this 
section— 
‘‘(I) ensure the acquisition of nec-
essary information from the applicant for 
the lease, business agreement, or right-of- 
way; 
‘‘(II) address the term of the lease or 
business agreement or the term of convey-
ance of the right-of-way; 
‘‘(III) address amendments and re-
newals; 
‘‘(IV) address the economic return to 
the Indian tribe under leases, business 
agreements, and rights-of-way; 
‘‘(V) address technical or other rel-
evant requirements; 
‘‘(VI) establish requirements for envi-
ronmental review in accordance with sub-
paragraph (C); 
‘‘(VII) ensure compliance with all ap-
plicable environmental laws; 
‘‘(VIII) identify final approval author-
ity; 
‘‘(IX) provide for public notification of 
final approvals;
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‘‘(X) establish a process for consulta-
tion with any affected States concerning 
off-reservation impacts, if any, identified 
pursuant to the provisions required under 
subparagraph (C)(i); 
‘‘(XI) 
describe 
the 
remedies 
for 
breach of the lease, business agreement, or 
right-of-way; 
‘‘(XII) require each lease, business 
agreement, and right-of-way to include a 
statement that, in the event that any of its 
provisions violates an express term or re-
quirement set forth in the tribal energy re-
source agreement pursuant to which it was 
executed— 
‘‘(aa) such provision shall be null 
and void; and 
‘‘(bb) if the Secretary determines 
such provision to be material, the Sec-
retary shall have the authority to sus-
pend or rescind the lease, business 
agreement, or right-of-way or take 
other appropriate action that the Sec-
retary determines to be in the best in-
terest of the Indian tribe;
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‘‘(XIII) require each lease, business 
agreement, and right-of-way to provide 
that it will become effective on the date on 
which a copy of the executed lease, busi-
ness agreement, or right-of-way is deliv-
ered to the Secretary in accordance with 
regulations adopted pursuant to this sub-
section; and 
‘‘(XIV) include citations to tribal 
laws, regulations, or procedures, if any, 
that set out tribal remedies that must be 
exhausted before a petition may be sub-
mitted to the Secretary pursuant to para-
graph (7)(B). 
‘‘(C) Tribal energy resource agreements sub-
mitted under paragraph (1) shall establish, and in-
clude provisions to ensure compliance with, an envi-
ronmental review process that, with respect to a 
lease, business agreement, or right-of-way under this 
section, provides for— 
‘‘(i) the identification and evaluation of all 
significant environmental impacts (as compared 
with a no-action alternative), including effects 
on cultural resources;
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‘‘(ii) the identification of proposed mitiga-
tion; 
‘‘(iii) a process for ensuring that the public 
is informed of and has an opportunity to com-
ment on the environmental impacts of the pro-
posed action before tribal approval of the lease, 
business agreement, or right-of-way; and 
‘‘(iv) sufficient administrative support and 
technical capability to carry out the environ-
mental review process. 
‘‘(D) A tribal energy resource agreement nego-
tiated between the Secretary and an Indian tribe in 
accordance with this subsection shall include— 
‘‘(i) provisions requiring the Secretary to 
conduct a periodic review and evaluation to 
monitor the performance of the Indian tribe’s 
activities associated with the development of en-
ergy resources under the tribal energy resource 
agreement; and 
‘‘(ii) when such review and evaluation re-
sult in a finding by the Secretary of imminent 
jeopardy to a physical trust asset arising from 
a violation of the tribal energy resource agree-
ment or applicable Federal laws, provisions au-
thorizing the Secretary to take appropriate ac-
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tions determined by the Secretary to be nec-
essary to protect such asset, which actions may 
include reassumption of responsibility for activi-
ties associated with the development of energy 
resources on tribal land until the violation and 
conditions that gave rise to such jeopardy have 
been corrected. 
‘‘(E) The periodic review and evaluation de-
scribed in subparagraph (D) shall be conducted on 
an annual basis, except that, after the third such an-
nual review and evaluation, the Secretary and the 
Indian tribe may mutually agree to amend the tribal 
energy resource agreement to authorize the review 
and evaluation required by subparagraph (D) to be 
conducted once every 2 years. 
‘‘(3) The Secretary shall provide notice and op-
portunity for public comment on tribal energy re-
source agreements submitted for approval under 
paragraph (1). The Secretary’s review of a tribal en-
ergy resource agreement under the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) shall be limited to the direct effects of that ap-
proval. 
‘‘(4) If the Secretary disapproves a tribal en-
ergy resource agreement submitted by an Indian
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tribe under paragraph (1), the Secretary shall, not 
later than 10 days after the date of disapproval— 
‘‘(A) notify the Indian tribe in writing of 
the basis for the disapproval; 
‘‘(B) identify what changes or other ac-
tions are required to address the concerns of 
the Secretary; and 
‘‘(C) provide the Indian tribe with an op-
portunity to revise and resubmit the tribal en-
ergy resource agreement. 
‘‘(5) If an Indian tribe executes a lease or busi-
ness agreement or grants a right-of-way in accord-
ance with a tribal energy resource agreement ap-
proved under this subsection, the Indian tribe shall, 
in accordance with the process and requirements set 
forth in the Secretary’s regulations adopted pursu-
ant to paragraph (8), provide to the Secretary— 
‘‘(A) a copy of the lease, business agree-
ment, or right-of-way document (including all 
amendments to and renewals of the document); 
and 
‘‘(B) in the case of a tribal energy resource 
agreement or a lease, business agreement, or 
right-of-way that permits payments to be made 
directly to the Indian tribe, information and
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documentation of those payments sufficient to 
enable the Secretary to discharge the trust re-
sponsibility of the United States to enforce the 
terms of, and protect the Indian tribe’s rights 
under, the lease, business agreement, or right- 
of-way. 
‘‘(6)(A) For purposes of the activities to be un-
dertaken by the Secretary pursuant to this section, 
the Secretary shall— 
‘‘(i) carry out such activities in a manner 
consistent with the trust responsibility of the 
United States relating to mineral and other 
trust resources; and 
‘‘(ii) act in good faith and in the best in-
terests of the Indian tribes. 
‘‘(B) Subject to the provisions of subsections 
(a)(2), (b), and (c) waiving the requirement of Sec-
retarial approval of leases, business agreements, and 
rights-of-way executed pursuant to tribal energy re-
source agreements approved under this section, and 
the provisions of subparagraph (D), nothing in this 
section shall absolve the United States from any re-
sponsibility to Indians or Indian tribes, including, 
but not limited to, those which derive from the trust 
relationship or from any treaties, statutes, and other
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laws of the United States, Executive Orders, or 
agreements between the United States and any In-
dian tribe. 
‘‘(C) The Secretary shall continue to have a 
trust obligation to ensure that the rights and inter-
ests of an Indian tribe are protected in the event 
that— 
‘‘(i) any other party to any such lease, 
business agreement, or right-of-way violates any 
applicable provision of Federal law or the terms 
of any lease, business agreement, or right-of- 
way under this section; or 
‘‘(ii) any provision in such lease, business 
agreement, or right-of-way violates any express 
provision or requirement set forth in the tribal 
energy resource agreement pursuant to which 
the lease, business agreement, or right-of-way 
was executed. 
‘‘(D) Notwithstanding subparagraph (B), the 
United States shall not be liable to any party (in-
cluding any Indian tribe) for any of the negotiated 
terms of, or any losses resulting from the negotiated 
terms of, a lease, business agreement, or right-of- 
way executed pursuant to and in accordance with a 
tribal energy resource agreement approved by the
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Secretary under paragraph (2). For the purpose of 
this subparagraph, the term ‘negotiated terms’ 
means any terms or provisions that are negotiated 
by an Indian tribe and any other party or parties to 
a lease, business agreement, or right-of-way entered 
into pursuant to an approved tribal energy resource 
agreement. 
‘‘(7)(A) In this paragraph, the term ‘interested 
party’ means any person or entity the interests of 
which have sustained or will sustain a significant ad-
verse environmental impact as a result of the failure 
of an Indian tribe to comply with a tribal energy re-
source agreement of the Indian tribe approved by 
the Secretary under paragraph (2). 
‘‘(B) After exhaustion of tribal remedies, and in 
accordance with the process and requirements set 
forth in regulations adopted by the Secretary pursu-
ant to paragraph (8), an interested party may sub-
mit to the Secretary a petition to review compliance 
of an Indian tribe with a tribal energy resource 
agreement of the Indian tribe approved by the Sec-
retary under paragraph (2). 
‘‘(C)(i) Not later than 120 days after the date 
on which the Secretary receives a petition under sub-
paragraph (B), the Secretary shall determine wheth-
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er the Indian tribe is not in compliance with the 
tribal energy resource agreement, as alleged in the 
petition. 
‘‘(ii) The Secretary may adopt procedures 
under paragraph (8) authorizing an extension of 
time, not to exceed 120 days, for making the deter-
mination under clause (i) in any case in which the 
Secretary determines that additional time is nec-
essary to evaluate the allegations of the petition. 
‘‘(iii) Subject to subparagraph (D), if the Sec-
retary determines that the Indian tribe is not in 
compliance with the tribal energy resource agree-
ment as alleged in the petition, the Secretary shall 
take such action as is necessary to ensure compli-
ance with the provisions of the tribal energy resource 
agreement, which action may include— 
‘‘(I) temporarily suspending some or all ac-
tivities under a lease, business agreement, or 
right-of-way under this section until the Indian 
tribe or such activities are in compliance with 
the provisions of the approved tribal energy re-
source agreement; or 
‘‘(II) rescinding approval of all or part of 
the tribal energy resource agreement, and if all 
of such agreement is rescinded, reassuming the
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responsibility for approval of any future leases, 
business agreements, or rights-of-way described 
in subsections (a) and (b). 
‘‘(D) Prior to seeking to ensure compliance with 
the provisions of the tribal energy resource agree-
ment of an Indian tribe under subparagraph (C)(iii), 
the Secretary shall— 
‘‘(i) make a written determination that de-
scribes the manner in which the tribal energy 
resource agreement has been violated; 
‘‘(ii) provide the Indian tribe with a writ-
ten notice of the violations together with the 
written determination; and 
‘‘(iii) before taking any action described in 
subparagraph (C)(iii) or seeking any other rem-
edy, provide the Indian tribe with a hearing and 
a reasonable opportunity to attain compliance 
with the tribal energy resource agreement. 
‘‘(E) An Indian tribe described in subparagraph 
(D) shall retain all rights to appeal as provided in 
regulations issued by the Secretary. 
‘‘(8) Not later than 1 year after the date of en-
actment of the Indian Tribal Energy Development 
and Self-Determination Act of 2004, the Secretary
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shall issue regulations that implement the provisions 
of this subsection, including— 
‘‘(A) criteria to be used in determining the 
capacity of an Indian tribe described in para-
graph (2)(B)(i), including the experience of the 
Indian tribe in managing natural resources and 
financial and administrative resources available 
for use by the Indian tribe in implementing the 
approved tribal energy resource agreement of 
the Indian tribe; 
‘‘(B) a process and requirements in accord-
ance with which an Indian tribe may— 
‘‘(i) voluntarily rescind a tribal energy 
resource agreement approved by the Sec-
retary under this subsection; and 
‘‘(ii) return to the Secretary the re-
sponsibility to approve any future leases, 
business agreements, and rights-of-way de-
scribed in this subsection; 
‘‘(C) provisions setting forth the scope of, 
and procedures for, the periodic review and 
evaluation described in subparagraphs (D) and 
(E) of paragraph (2), including provisions for 
review of transactions, reports, site inspections,
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and any other review activities the Secretary 
determines to be appropriate; and 
‘‘(D) provisions defining final agency ac-
tions after exhaustion of administrative appeals 
from determinations of the Secretary under 
paragraph (7). 
‘‘(f) NO EFFECT ON OTHER LAW.—Nothing in this 
section affects the application of— 
‘‘(1) any Federal environment law; 
‘‘(2) the Surface Mining Control and Reclama-
tion Act of 1977 (30 U.S.C. 1201 et seq.); or 
‘‘(3) except as otherwise provided in this title, 
the Indian Mineral Development Act of 1982 (25 
U.S.C. 2101 et seq.) and the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as are necessary for each of fiscal years 2004 
through 2014 to implement the provisions of this section 
and to make grants or provide other appropriate assist-
ance to Indian tribes to assist the Indian tribes in devel-
oping and implementing tribal energy resource agreements 
in accordance with the provisions of this section.
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‘‘SEC. 2605. INDIAN MINERAL DEVELOPMENT REVIEW. 
‘‘(a) IN GENERAL.—The Secretary shall conduct a 
review of all activities being conducted under the Indian 
Mineral Development Act of 1982 (25 U.S.C. 2101 et 
seq.) as of that date. 
‘‘(b) REPORT.—Not later than 1 year after the date 
of enactment of the Indian Tribal Energy Development 
and Self-Determination Act of 2004, the Secretary shall 
submit to Congress a report that includes— 
‘‘(1) the results of the review; 
‘‘(2) recommendations to ensure that Indian 
tribes have the opportunity to develop Indian energy 
resources; and 
‘‘(3) an analysis of the barriers to the develop-
ment of energy resources on Indian land (including 
legal, fiscal, market, and other barriers), along with 
recommendations for the removal of those barriers. 
‘‘SEC. 2606. FEDERAL POWER MARKETING ADMINISTRA-
TIONS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) The term ‘Administrator’ means the Ad-
ministrator of the Bonneville Power Administration 
and the Administrator of the Western Area Power 
Administration. 
‘‘(2) The term ‘power marketing administra-
tion’ means—