‘‘(f) NO ACCOUNTING REQUIRED.—No recipient of 
funds under this section shall be required to account to 
the Federal Government for the expenditure of such 
funds, except as otherwise may be required by law. How-
ever, States may enact legislation providing for accounting 
for and auditing of such expenditures. Funds allocated 
under this section to States and political subdivisions may 
be used as matching funds for other Federal programs. 
‘‘(g) EFFECT OF FUTURE LAWS.—Enactment after 
the date of the enactment of the Energy Security and Em-
ployment Act of any Federal statute that has the effect, 
as determined by the Secretary, of restricting any Federal 
agency from spending appropriated funds, or otherwise 
preventing it from fulfilling its preexisting responsibilities 
as of the date of enactment of the statute (unless such 
responsibilities have been reassigned to another Federal 
agency by the statute with no prevention of performance) 
to issue any permit or other approval impacting on the 
OCS oil and gas leasing program, or any lease issued 
thereunder, or to implement any provision of this Act shall 
automatically prohibit any payment of OCS Receipts 
under this section directly to States, and their coastal po-
litical subdivisions, for the duration of the restriction. The 
Secretary shall make the determination of the existence 
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of such restricting effects within 30 days of a petition by 
any outer Continental Shelf lessee or producing State. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) ADJACENT
STATE.—The term ‘Adjacent 
State’ means, with respect to any program, plan, 
lease sale, leased tract or other activity, proposed, 
conducted, or approved pursuant to the provisions of 
this Act, any State the laws of which are declared 
to be the law of the United States for the portion 
of the outer Continental Shelf on which such pro-
gram, plan, lease sale, leased tract, or activity apper-
tains or is, or is proposed to be, conducted. 
‘‘(2) ADJACENT ZONE AND STATE ADJACENT 
ZONE.—Each of the terms ‘Adjacent Zone’ and 
‘State Adjacent Zone’ means, with respect to any 
program, plan, lease sale, leased tract, or other ac-
tivity, proposed, conducted, or approved under this 
Act, the portion of the outer Continental Shelf for 
which the laws of a particular Adjacent State are de-
clared to be the law of the United States. 
‘‘(3) BONUS
BIDS.—The term ‘bonus bid’ 
means all funds received by the Secretary to issue 
an outer Continental Shelf mineral lease. 
‘‘(4) COASTAL COUNTY-EQUIVALENT POLITICAL 
SUBDIVISION.—The term ‘coastal county-equivalent 
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political subdivision’ means a political jurisdiction 
immediately below the level of State government, in-
cluding a county, parish, borough in Alaska, inde-
pendent municipality that is not part of a county, 
parish, or borough in Alaska, or other equivalent 
subdivision of a coastal State, that lies within the 
coastal zone. 
‘‘(5) COASTAL MUNICIPAL POLITICAL SUBDIVI-
SION.—The term ‘coastal municipal political subdivi-
sion’ means a municipality located within and part 
of a county, parish, borough in Alaska, or other 
equivalent subdivision of a State, all or part of which 
coastal municipal political subdivision lies within the 
coastal zone. 
‘‘(6) COASTAL POPULATION.—The term ‘coastal 
population’ means the population of all coastal coun-
ty-equivalent political subdivisions, as determined by 
the most recent official data of the Census Bureau. 
‘‘(7) COASTAL ZONE.—The term ‘coastal zone’ 
means that portion of a coastal State, including the 
entire territory of any coastal county-equivalent po-
litical subdivision at least a part of which lies, within 
75 miles landward from the coastline, or a greater 
distance as determined by State law enacted to im-
plement this section. 
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‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 
means bonus bids and royalties, excluding royalties 
from leases amended under the authority of section 
8(s) of this Act. 
‘‘(9) PRODUCING STATE.—The term ‘producing 
State’ means an Adjacent State having an Adjacent 
Zone containing a leased tract from which OCS Re-
ceipts are derived. 
‘‘(10) ROYALTY.—The term ‘royalty’ means all 
funds received by the United States from production 
of oil or natural gas, or the sale of production taken 
in-kind, or from net profit shares, from an outer 
Continental Shelf mineral lease.’’. 
Subtitle B—Arctic Coastal Plain 
SEC. 111. DEFINITIONS. 
In this subtitle: 
(1) COASTAL
PLAIN.—The term ‘‘Coastal 
Plain’’ means that area identified as the ‘‘1002 
Coastal Plain Area’’ on the map. 
(2) FEDERAL AGREEMENT.—The term ‘‘Fed-
eral Agreement’’ means the Federal Agreement and 
Grant Right-of-Way for the Trans-Alaska Pipeline 
issued on January 23, 1974, in accordance with sec-
tion 28 of the Mineral Leasing Act (30 U.S.C. 185) 
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and the Trans-Alaska Pipeline Authorization Act 
(43 U.S.C. 1651 et seq.). 
(3) FINAL
STATEMENT.—The term ‘‘Final 
Statement’’ means the final legislative environmental 
impact statement on the Coastal Plain, dated April 
1987, and prepared pursuant to section 1002 of the 
Alaska National Interest Lands Conservation Act 
(16 U.S.C. 3142) and section 102(2)(C) of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)). 
(4) MAP.—The term ‘‘map’’ means the map en-
titled ‘‘Arctic National Wildlife Refuge’’, dated Sep-
tember 2005, and prepared by the United States Ge-
ological Survey. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior (or the designee of the 
Secretary), acting through the Director of the Bu-
reau of Land Management, in consultation with the 
Director of the United States Fish and Wildlife 
Service. 
SEC. 112. LEASING PROGRAM FOR LAND WITHIN THE 
COASTAL PLAIN. 
(a) IN GENERAL.—The Secretary shall take such ac-
tions as are necessary— 
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(1) to establish and implement, in accordance 
with this subtitle, a competitive oil and gas leasing 
program that will result in an environmentally sound 
program for the exploration, development, and pro-
duction of the oil and gas resources of the Coastal 
Plain; and 
(2) to administer this subtitle through regula-
tions, lease terms, conditions, restrictions, prohibi-
tions, stipulations, and other provisions that require 
the application of the best commercially available 
technology for oil and gas exploration, development, 
and production to all exploration, development, and 
production operations under this subtitle in a man-
ner that ensures the receipt of fair market value by 
the public for the mineral resources to be leased. 
(b) REPEAL.— 
(1) REPEAL.—Section 1003 of the Alaska Na-
tional Interest Lands Conservation Act of 1980 (16 
U.S.C. 3143) is repealed. 
(2) CONFORMING AMENDMENT.—The table of 
contents contained in section 1 of that Act (16 
U.S.C. 3101 note) is amended by striking the item 
relating to section 1003. 
(c) COMPLIANCE WITH REQUIREMENTS FROM CER-
TAIN OTHER LAWS.— 
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(1) ADEQUACY OF THE DEPARTMENT OF THE 
INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT 
STATEMENT.—The 
‘‘Final 
Legislative 
Environ-
mental Impact Statement’’ (April 1987) on the 
Coastal Plain prepared pursuant to section 1002 of 
the Alaska National Interest Lands Conservation 
Act (16 U.S.C. 3142) and section 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4332(2)(C)) is deemed to satisfy the require-
ments under the National Environmental Policy Act 
of 1969 that apply with respect to prelease activities 
under this subtitle, including actions authorized to 
be taken by the Secretary to develop and promulgate 
the regulations for the establishment of a leasing 
program authorized by this subtitle before the con-
duct of the first lease sale. 
(2) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.— 
(A) IN GENERAL.—Before conducting the 
first lease sale under this subtitle, the Secretary 
shall prepare an environmental impact state-
ment in accordance with the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) with respect to the actions authorized by 
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this subtitle that are not referred to in para-
graph (1). 
(B) IDENTIFICATION
AND
ANALYSIS.— 
Notwithstanding any other provision of law, in 
carrying out this paragraph, the Secretary shall 
not be required— 
(i) to identify nonleasing alternative 
courses of action; or 
(ii) to analyze the environmental ef-
fects of those courses of action. 
(C) IDENTIFICATION OF PREFERRED AC-
TION.—Not later than 18 months after the date 
of enactment of this Act, the Secretary shall— 
(i) identify only a preferred action and 
a single leasing alternative for the first 
lease sale authorized under this subtitle; 
and 
(ii) analyze the environmental effects 
and potential mitigation measures for 
those 2 alternatives. 
(D) PUBLIC COMMENTS.—In carrying out 
this paragraph, the Secretary shall consider 
only public comments that are filed not later 
than 20 days after the date of publication of a 
draft environmental impact statement. 
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(E) EFFECT
OF
COMPLIANCE.—Notwith-
standing any other provision of law, compliance 
with this paragraph shall be considered to sat-
isfy all requirements for the analysis and con-
sideration of the environmental effects of pro-
posed leasing under this subtitle. 
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this subtitle expands or limits any State 
or local regulatory authority. 
(e) SPECIAL AREAS.— 
(1) DESIGNATION.— 
(A) IN
GENERAL.—The Secretary, after 
consultation with the State of Alaska, the 
North Slope Borough, Alaska, and the City of 
Kaktovik, Alaska, may designate not more than 
45,000 acres of the Coastal Plain as a special 
area if the Secretary determines that the special 
area would be of such unique character and in-
terest as to require special management and 
regulatory protection. 
(B) SADLEROCHIT
SPRING
AREA.—The 
Secretary shall designate as a special area in 
accordance 
with 
subparagraph 
(A) 
the 
Sadlerochit Spring area, comprising approxi-
mately 4,000 acres as depicted on the map. 
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(2) MANAGEMENT.—The Secretary shall man-
age each special area designated under this sub-
section in a manner that preserves the unique and 
diverse character of the area, including fish, wildlife, 
subsistence resources, and cultural values of the 
area. 
(3) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.— 
(A) IN GENERAL.—The Secretary may ex-
clude any special area designated under this 
subsection from leasing. 
(B) NO SURFACE OCCUPANCY.—If the Sec-
retary leases all or a portion of a special area 
for the purposes of oil and gas exploration, de-
velopment, production, and related activities, 
there shall be no surface occupancy of the land 
comprising the special area. 
(4) DIRECTIONAL DRILLING.—Notwithstanding 
any other provision of this subsection, the Secretary 
may lease all or a portion of a special area under 
terms that permit the use of horizontal drilling tech-
nology from sites on lease tracts located outside the 
special area. 
(f) LIMITATION ON CLOSED AREAS.—The Secretary 
may not close land within the Coastal Plain to oil and gas 
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leasing or to exploration, development, or production ex-
cept in accordance with this subtitle. 
(g) REGULATIONS.— 
(1) IN GENERAL.—Not later than 15 months 
after the date of enactment of this Act, the Sec-
retary shall promulgate such regulations as are nec-
essary to carry out this subtitle, including rules and 
regulations relating to protection of the fish and 
wildlife, fish and wildlife habitat, subsistence re-
sources, and environment of the Coastal Plain. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary shall periodically review and, as appropriate, 
revise the rules and regulations issued under para-
graph (1) to reflect any significant biological, envi-
ronmental, scientific or engineering data that come 
to the attention of the Secretary. 
SEC. 113. LEASE SALES. 
(a) IN GENERAL.—Land may be leased pursuant to 
this subtitle to any person qualified to obtain a lease for 
deposits of oil and gas under the Mineral Leasing Act (30 
U.S.C. 181 et seq.). 
(b) PROCEDURES.—The Secretary shall, by regula-
tion, establish procedures for— 
(1) receipt and consideration of sealed nomina-
tions for any area in the Coastal Plain for inclusion 
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