168
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
terminate—
(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
169
(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-
170
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
consider—
(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.
171
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-
172
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—
173
(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
174
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’’;
175
(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—
176
‘‘(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—
177
‘‘(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-
178
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.
179
‘‘(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-
180
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:
181
‘‘(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:
182
‘‘(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
183
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
184
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).
185
(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—
186
(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-
187
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
standards—
(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
188
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
189
(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).
190
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-
191
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:
192
‘‘(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
activities—
‘‘(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
193
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;
194
‘‘(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-
195
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.
196
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
197
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
198
(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
199
(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.—
200
(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;
201
(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.
202
(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;
203
(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;
204
(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-
205
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
206
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
207
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;
208
‘‘(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
209
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.’’.
210
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)—
211
‘‘(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-
212
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-
213
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
214
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
215
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
216
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
217
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-
218
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—
219
(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.
220
‘‘(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
221
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.
222
(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.
223
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.
224
(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—
225
(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;
226
(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
227
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-
228
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.
229
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-
230
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—
231
(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
232
(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—
233
(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
affects—
(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—
234
‘‘(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.).
235
‘‘(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
236
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
237
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-
238
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-
239
mission and distribution facilities on Fed-
eral land; and
(ii) opportunities for additional oil
and gas pipeline and electric transmission
capacity within those rights-of-way and
corridors; and
(B) that includes a plan for making avail-
able, on request, to the appropriate Federal,
State, and local agencies, tribal governments,
and other persons involved in the siting of oil
and gas pipelines and electricity transmission
facilities Geographic Information System-based
information regarding the location of the exist-
ing rights-of-way and corridors and any planned
rights-of-way and corridors.
(2) CONSULTATIONS AND CONSIDERATIONS.—
In preparing the report, the Secretary of the Interior
and the Secretary of Agriculture shall consult
with—
(A) other agencies of Federal, State, tribal,
or local units of government, as appropriate;
(B) persons involved in the siting of oil
and gas pipelines and electric transmission fa-
cilities; and
(C) other interested members of the public.
240
(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
241
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
242
(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-
243
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
established—
(i) by law;
(ii) by Secretarial Order;
(iii) through the land use planning
process; or
244
(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,
245
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.—
246
(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
address—
(i) efforts to implement the provisions
of the document referred to in paragraph
(1);
247
(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.
248
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
249
(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;
250
(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
251
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.—
252
(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.
253
(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.
254
(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
255
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—
256
(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.—
257
(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;
258
(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-
259
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—
260
(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-
261
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
262
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
263
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
264
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
265
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,
266
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
267
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.—
268
(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-
269
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
270
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.
271
(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—
272
(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.
273
(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
274
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-
275
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-
276
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:
277
‘‘(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
278
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
279
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
280
(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
affects—
(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—
281
(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
282
(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.—
283
(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—
284
(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
285
(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
286
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
287
(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
288
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.
289
(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.
290
(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
291
(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.
292
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-
293
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.
294
(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.
295
(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.
296
(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-
297
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-
298
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—
299
(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
300
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
301
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.
302
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
303
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:
304
‘‘(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
305
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-
306
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-
307
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
308
(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.
309
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
310
‘‘(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;
311
‘‘(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—
312
‘‘(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
313
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—
314
‘‘(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.
315
‘‘(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.
316
‘‘(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-
317
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:
318
‘‘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.—
319
(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:
320
‘‘(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
321
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
located—
‘‘(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-
322
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.
323
‘‘(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;
324
‘‘(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—
325
‘‘(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.
326
‘‘(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.
327
‘‘(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.
328
‘‘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—
329
‘‘(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—
330
‘‘(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
331
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
332
‘‘(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-
333
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,
334
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;
335
‘‘(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;
336
‘‘(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;
337
‘‘(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-
338
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
339
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
340
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
341
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
342
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-
343
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
344
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
345
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,
346
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.
347
‘‘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—
348
‘‘(A) the Bonneville Power Administration;
‘‘(B) the Western Area Power Administra-
tion; and
‘‘(C) any other power administration the
power allocation of which is used by or for the
benefit of an Indian tribe located in the service
area of the administration.
‘‘(b) ENCOURAGEMENT OF INDIAN TRIBAL ENERGY
DEVELOPMENT.—Each Administrator shall encourage In-
dian tribal energy development by taking such actions as
are appropriate, including administration of programs of
the Bonneville Power Administration and the Western
Area Power Administration, in accordance with this sec-
tion.
‘‘(c) ACTION BY THE ADMINISTRATOR.—In carrying
out this section, and in accordance with existing law—
‘‘(1) each Administrator shall consider the
unique relationship that exists between the United
States and Indian tribes;
‘‘(2) power allocations from the Western Area
Power Administration to Indian tribes may be used
to meet firming and reserve needs of Indian-owned
energy projects on Indian land;
‘‘(3) the Administrator of the Western Area
Power Administration may purchase non-federally
349
generated power from Indian tribes to meet the
firming and reserve requirements of the Western
Area Power Administration; and
‘‘(4) each Administrator shall not pay more
than the prevailing market price for an energy prod-
uct nor obtain less than prevailing market terms and
conditions.
‘‘(d) ASSISTANCE
FOR
TRANSMISSION
SYSTEM
USE.—(1) An Administrator may provide technical assist-
ance to Indian tribes seeking to use the high-voltage trans-
mission system for delivery of electric power.
‘‘(2) The costs of technical assistance provided under
paragraph (1) shall be funded by the Secretary of Energy
using nonreimbursable funds appropriated for that pur-
pose, or by the applicable Indian tribes.
‘‘(e) POWER ALLOCATION STUDY.—Not later than 2
years after the date of enactment of the Indian Tribal En-
ergy Development and Self-Determination Act of 2004,
the Secretary of Energy shall submit to Congress a report
that—
‘‘(1) describes the use by Indian tribes of Fed-
eral power allocations of the Western Area Power
Administration (or power sold by the Southwestern
Power Administration) and the Bonneville Power
350
Administration to or for the benefit of Indian tribes
in service areas of those administrations; and
‘‘(2) identifies—
‘‘(A) the quantity of power allocated to, or
used for the benefit of, Indian tribes by the
Western Area Power Administration;
‘‘(B) the quantity of power sold to Indian
tribes by other power marketing administra-
tions; and
‘‘(C) barriers that impede tribal access to
and use of Federal power, including an assess-
ment of opportunities to remove those barriers
and improve the ability of power marketing ad-
ministrations to deliver Federal power.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$750,000, which shall remain available until expended and
shall not be reimbursable.
‘‘SEC. 2607. WIND AND HYDROPOWER FEASIBILITY STUDY.
‘‘(a) STUDY.—The Secretary of Energy, in coordina-
tion with the Secretary of the Army and the Secretary,
shall conduct a study of the cost and feasibility of devel-
oping a demonstration project that would use wind energy
generated by Indian tribes and hydropower generated by
the Army Corps of Engineers on the Missouri River to
351
supply firming power to the Western Area Power Adminis-
tration.
‘‘(b) SCOPE OF STUDY.—The study shall—
‘‘(1) determine the feasibility of the blending of
wind energy and hydropower generated from the
Missouri River dams operated by the Army Corps of
Engineers;
‘‘(2) review historical and projected require-
ments for firming power and the patterns of avail-
ability and use of firming power;
‘‘(3) assess the wind energy resource potential
on tribal land and projected cost savings through a
blend of wind and hydropower over a 30-year period;
‘‘(4) determine seasonal capacity needs and as-
sociated transmission upgrades for integration of
tribal wind generation; and
‘‘(5) include an independent tribal engineer as
a study team member.
‘‘(c) REPORT.—Not later than 1 year after the date
of enactment of the Energy Policy Act of 2003, the Sec-
retary and Secretary of the Army shall submit to Congress
a report that describes the results of the study,
including—
‘‘(1) an analysis of the potential energy cost or
benefits to the customers of the Western Area Power
352
Administration through the use of combined wind
and hydropower;
‘‘(2) an evaluation of whether a combined wind
and hydropower system can reduce reservoir fluctua-
tion, enhance efficient and reliable energy produc-
tion, and provide Missouri River management flexi-
bility;
‘‘(3) recommendations for a demonstration
project that could be carried out by the Western
Area Power Administration in partnership with an
Indian tribal government or tribal energy resource
development organization to demonstrate the feasi-
bility and potential of using wind energy produced
on Indian land to supply firming energy to the
Western Area Power Administration or any other
Federal power marketing agency; and
‘‘(4) an identification of—
‘‘(A) the economic and environmental costs
or benefits to be realized through such a Fed-
eral-tribal partnership; and
‘‘(B) the manner in which such a partner-
ship could contribute to the energy security of
the United States.
‘‘(d) FUNDING.—
353
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this section $500,000, to remain available until ex-
pended.
‘‘(2) NONREIMBURSABILITY.—Costs incurred by the
Secretary in carrying out this section shall be non-
reimbursable.’’.
(b) CONFORMING AMENDMENTS.—The table of con-
tents for the Energy Policy Act of 1992 is amended by
striking the items relating to title XXVI and inserting the
following:
‘‘Sec. 2601. Definitions.
‘‘Sec. 2602. Indian tribal energy resource development.
‘‘Sec. 2603. Indian tribal energy resource regulation.
‘‘Sec. 2604. Leases, business agreements, and rights-of-way involving energy
development or transmission.
‘‘Sec. 2605. Indian mineral development review.
‘‘Sec. 2606. Federal Power Marketing Administrations.
‘‘Sec. 2607. Wind and hydropower feasibility study.’’.
SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT.
The Dine Power Authority, an enterprise of the Nav-
ajo Nation, shall be eligible to receive grants and other
assistance as authorized by section 217 of the Department
of Energy Organization Act, as added by section 502 of
this title, and section 2602 of the Energy Policy Act of
1992, as amended by this title, for activities associated
with the development of a transmission line from the Four
Corners Area to southern Nevada, including related power
generation opportunities.
354
SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED
HOUSING.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall promote energy conservation in
housing that is located on Indian land and assisted with
Federal resources through—
(1) the use of energy-efficient technologies and
innovations (including the procurement of energy-ef-
ficient refrigerators and other appliances);
(2) the promotion of shared savings contracts;
and
(3) the use and implementation of such other
similar technologies and innovations as the Secretary
of Housing and Urban Development considers to be
appropriate.
(b) AMENDMENT.—Section 202(2) of the Native
American Housing and Self-Determination Act of 1996
(25 U.S.C. 4132(2)) is amended by inserting ‘‘improve-
ment to achieve greater energy efficiency,’’ after ‘‘plan-
ning,’’.
SEC. 506. CONSULTATION WITH INDIAN TRIBES.
In carrying out this title and the amendments made
by this title, the Secretary of Energy and the Secretary
shall, as appropriate and to the maximum extent prac-
ticable, involve and consult with Indian tribes in a manner
that is consistent with the Federal trust and the govern-
355
ment-to-government relationships between Indian tribes
and the United States.
TITLE VI—NUCLEAR MATTERS
Subtitle A—Price-Anderson Act
Amendments
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ‘‘Price-Anderson
Amendments Act of 2003’’.
SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.
(a) INDEMNIFICATION
OF NUCLEAR REGULATORY
COMMISSION LICENSEES.—Section 170 c. of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(c)) is amended—
(1) in the subsection heading, by striking ‘‘LI-
CENSES’’ and inserting ‘‘LICENSEES’’; and
(2) by striking ‘‘December 31, 2003’’ each
place it appears and inserting ‘‘December 31,
2023’’.
(b) INDEMNIFICATION OF DEPARTMENT OF ENERGY
CONTRACTORS.—Section 170 d.(1)(A) of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended
by striking ‘‘December 31, 2004’’ and inserting ‘‘Decem-
ber 31, 2023’’.
(c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL
INSTITUTIONS.—Section 170 k. of the Atomic Energy Act
of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘Au-