I 
110TH CONGRESS 
2D SESSION 
H. R. 6817 
To increase domestic energy production and diversify America’s energy 
portfolio. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2008 
Mr. MATHESON (for himself, Mr. DOYLE, Mr. ALTMIRE, Mr. MELANCON, Mr. 
DONNELLY, and Mr. TANNER) introduced the following bill; which was 
referred to the Committee on Ways and Means, and in addition to the 
Committees on Natural Resources, Energy and Commerce, Science and 
Technology, and Agriculture, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To increase domestic energy production and diversify 
America’s energy portfolio. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fulfilling U.S. Energy 
Leadership Act of 2008’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
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TITLE I—PRODUCTION: OCS 
Sec. 101. Inventory and leasing of Outer Continental Shelf oil and natural gas 
resources. 
Sec. 102. Conforming amendments to moratoria on use of appropriations. 
Sec. 103. Disposition of royalties. 
Sec. 104. Reports on due diligence in development of leases. 
Sec. 105. Limitations. 
TITLE II—UNCONVENTIONAL FUELS 
Sec. 201. Standby loans for qualifying coal-to-liquids projects. 
Sec. 202. Oil shale leasing. 
TITLE III—STUDY OF ENERGY TRANSMISSION BARRIERS AND 
OPPORTUNITIES 
Sec. 301. Study required. 
TITLE IV—NEXT GENERATION ENERGY AND EFFICIENCY FUND 
Sec. 401. Next Generation Energy and Efficiency Fund. 
TITLE V—ADDRESSING TRANSPARENCY AND DATA SHARING IN 
SPECULATION 
Sec. 501. Commission authority over traders. 
Sec. 502. Speculative limits and transparency for off-shore oil trading. 
Sec. 503. Additional commission employees for improved enforcement. 
Sec. 504. Study of international regulation of energy commodity markets. 
Sec. 505. Index traders and swap dealers. 
Sec. 506. Disaggregation of index funds and other data in energy markets. 
TITLE VI—NUCLEAR ENERGY 
Sec. 601. Study of impact on greenhouse gas reductions. 
Sec. 602. Study of possible cost reductions. 
Sec. 603. Authorization for Nuclear Power 2010 Program. 
Sec. 604. Establishment of Interagency Working Group. 
Sec. 605. Nuclear energy workforce. 
TITLE VII—ENERGY TAX INCENTIVES 
Sec. 700. Reference. 
Subtitle A—Energy Production Incentives 
PART 1—RENEWABLE ENERGY INCENTIVES 
Sec. 701. Renewable energy credit. 
Sec. 702. Production credit for electricity produced from marine renewables. 
Sec. 703. Energy credit. 
Sec. 704. Credit for residential energy efficient property. 
Sec. 705. Special rule to implement FERC and State electric restructuring pol-
icy. 
Sec. 706. New clean renewable energy bonds. 
PART 2—CARBON MITIGATION PROVISIONS 
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Sec. 711. Expansion and modification of advanced coal project investment cred-
it. 
Sec. 712. Expansion and modification of coal gasification investment credit. 
Sec. 713. Temporary increase in coal excise tax. 
Sec. 714. Special rules for refund of the coal excise tax to certain coal pro-
ducers and exporters. 
Sec. 715. Carbon audit of the tax code. 
Subtitle B—Transportation and Domestic Fuel Security Provisions 
Sec. 721. Inclusion of cellulosic biofuel in bonus depreciation for biomass eth-
anol plant property. 
Sec. 722. Credits for biodiesel and renewable diesel. 
Sec. 723. Clarification that credits for fuel are designed to provide an incentive 
for United States production. 
Sec. 724. Credit for new qualified plug-in electric drive motor vehicles. 
Sec. 725. Exclusion from heavy truck tax for idling reduction units and ad-
vanced insulation. 
Sec. 726. Restructuring of New York Liberty Zone tax credits. 
Sec. 727. Transportation fringe benefit to bicycle commuters. 
Sec. 728. Alternative fuel vehicle refueling property credit. 
Subtitle C—Energy Conservation and Efficiency Provisions 
Sec. 731. Qualified energy conservation bonds. 
Sec. 732. Credit for nonbusiness energy property. 
Sec. 733. Energy efficient commercial buildings deduction. 
Sec. 734. Modifications of energy efficient appliance credit for appliances pro-
duced after 2007. 
Sec. 735. Accelerated recovery period for depreciation of smart meters and 
smart grid systems. 
Sec. 736. Qualified green building and sustainable design projects. 
Subtitle D—Revenue Provision 
Sec. 741. Delay in application of worldwide allocation of interest. 
TITLE I—PRODUCTION: OCS 
SEC. 101. INVENTORY AND LEASING OF OUTER CONTI-
NENTAL SHELF OIL AND NATURAL GAS RE-
SOURCES. 
(a) INVENTORY.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in subsection (c), the Secretary of the Interior 
(in this section referred to as the ‘‘Secretary’’) may 
conduct an inventory in accordance with this sub-
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section of oil and natural gas resources beneath the 
waters of the Outer Continental Shelf (as defined in 
section 2 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331)), other than beneath such waters 
located in the Gulf of Mexico. 
(2) BEST
TECHNOLOGY
AVAILABLE.—In con-
ducting the inventory, the Secretary shall use the 
best technology available to obtain accurate resource 
estimates. 
(3) REPORTS.—The Secretary shall submit to 
Congress and the requesting Governor a report on 
any inventory conducted under this section. 
(b) LEASING.—Except as otherwise provided in sub-
section (c), the Secretary shall offer for oil and natural 
gas leasing pursuant to the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331 et seq.) by as soon as practicable 
after the date of enactment of this Act all areas for which 
an inventory has been conducted under subsection (a). 
(c) LIMITATIONS.—The Secretary may not under this 
section— 
(1) conduct an inventory under this section or 
any offshore oil and natural gas preleasing, leasing, 
or related activities for any area of the Outer Conti-
nental Shelf located within 50 miles of the coastline; 
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(2) conduct an inventory under this section or 
any offshore oil and natural gas preleasing, leasing, 
or related activities for any area of the Outer Conti-
nental Shelf located more than 50 miles and less 
than 100 miles from the coastline of a State, if the 
State has enacted a statute that objects to conduct 
of the inventory in that area. 
SEC. 102. CONFORMING AMENDMENTS TO MORATORIA ON 
USE OF APPROPRIATIONS. 
The Department of the Interior, Environment, and 
Related Agencies Appropriations Act, 2008 (division F of 
Public Law 110–161) is amended— 
(1) in section 104 (121 Stat. 2118) by striking 
‘‘the areas of northern, central, and southern Cali-
fornia; the North Atlantic; Washington and Oregon; 
and’’; and 
(2) by striking 105 (121 Stat. 2118). 
SEC. 103. DISPOSITION OF ROYALTIES. 
Notwithstanding any other provision of law, of 
amounts received by the United States as royalties under 
any oil and gas lease of an area of the Outer Continental 
Shelf issued after the date of the enactment of this Act 
under this title— 
(1) 50 percent shall be deposited— 
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(A) during the 10-year period beginning on 
the first date amounts are received by the 
United States as royalties under a lease issued 
under this title, into the Next Generation En-
ergy and Efficiency Fund established by title 
IV; and 
(B) after such period, into the general 
fund of the Treasury; 
(2) 37.5 percent shall be paid, in equal 
amounts, to the States that are affected States (as 
that term is defined in section 2 of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1331) with re-
spect to the lease tract; and 
(3) 12.5 percent shall be available to provide fi-
nancial assistance to States in accordance with sec-
tion 6 of the Land and Water Conservation Fund 
Act of 1965 (16 U.S.C. 460l–8), which shall be con-
sidered income to the Land and Water Conservation 
Fund for purposes of section 2 of that Act (16 
U.S.C. 460l–5). 
SEC. 104. REPORTS ON DUE DILIGENCE IN DEVELOPMENT 
OF LEASES. 
The Secretary of the Interior shall issue regulations 
that require that the holder of a Federal oil and gas lease 
for the Outer Continental Shelf shall periodically submit 
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a report to the Secretary describing the actions that have 
been taken under the lease that demonstrate due diligence 
in the development of oil and gas resources under the 
lease. 
SEC. 105. LIMITATIONS. 
Noting in this Act shall be considered to affect— 
(1) any restriction on drilling for natural gas or 
oil, or on the expenditure of funds for leasing Fed-
eral lands for such drilling, in any of the Great 
Lakes; or 
(2) any regulations governing drilling for nat-
ural gas or oil on the Outer Continental Shelf. 
TITLE II—UNCONVENTIONAL 
FUELS 
SEC. 201. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQ-
UIDS PROJECTS. 
Section 1702 of the Energy Policy Act of 2005 (42 
U.S.C. 16512) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) STANDBY
LOANS
FOR
QUALIFYING
CTL 
PROJECTS.— 
‘‘(1) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) CAP
PRICE.—The term ‘cap price’ 
means a market price specified in the standby 
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loan agreement above which the project is re-
quired to make payments to the United States. 
‘‘(B) FULL TERM.—The term ‘full term’ 
means the full term of a standby loan agree-
ment, as specified in the agreement, which shall 
not exceed the lesser of 30 years or 90 percent 
of the projected useful life of the project (as de-
termined by the Secretary). 
‘‘(C) MARKET PRICE.—The term ‘market 
price’ means the average quarterly price of a 
petroleum price index specified in the standby 
loan agreement. 
‘‘(D) MINIMUM
PRICE.—The term ‘min-
imum price’ means a market price specified in 
the standby loan agreement below which the 
United States is obligated to make disburse-
ments to the project. 
‘‘(E) OUTPUT.—The term ‘output’ means 
some or all of the liquid or gaseous transpor-
tation fuels produced from the project, as speci-
fied in the loan agreement. 
‘‘(F) PRIMARY TERM.—The term ‘primary 
term’ means the initial term of a standby loan 
agreement, as specified in the agreement, which 
shall not exceed the lesser of 20 years or 75 
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percent of the projected useful life of the 
project (as determined by the Secretary). 
‘‘(G) QUALIFYING
CTL
PROJECT.—The 
term ‘qualifying CTL project’ means— 
‘‘(i) a commercial-scale project that 
converts coal to one or more liquid or gas-
eous transportation fuels; or 
‘‘(ii) not more than one project at a 
facility that converts petroleum refinery 
waste products, including petroleum coke, 
into one or more liquids or gaseous trans-
portation fuels, 
that demonstrates the capture, and sequestra-
tion or disposal or use of, the carbon dioxide 
produced in the conversion process, and that, 
on the basis of a carbon dioxide sequestration 
plan prepared by the applicant, is certified by 
the Administrator of the Environmental Protec-
tion Agency, in consultation with the Secretary, 
as producing fuel with life cycle carbon dioxide 
emissions at or below the average life cycle car-
bon dioxide emissions for the same type of fuel 
produced at traditional petroleum based facili-
ties with similar annual capacities. 
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‘‘(H) STANDBY
LOAN
AGREEMENT.—The 
term ‘standby loan agreement’ means a loan 
agreement entered into under paragraph (2). 
‘‘(2) STANDBY LOANS.— 
‘‘(A) LOAN
AUTHORITY.—The Secretary 
may enter into standby loan agreements with 
not more than six qualifying CTL projects, at 
least one of which shall be a project jointly or 
in part owned by two or more small coal pro-
ducers. Such an agreement— 
‘‘(i) shall provide that the Secretary 
will make a direct loan (within the mean-
ing of section 502(1) of the Federal Credit 
Reform Act of 1990) to the qualifying 
CTL project; and 
‘‘(ii) shall set a cap price and a min-
imum price for the primary term of the 
agreement. 
‘‘(B) LOAN DISBURSEMENTS.—Such a loan 
shall be disbursed during the primary term of 
such agreement whenever the market price falls 
below the minimum price. The amount of such 
disbursements in any calendar quarter shall be 
equal to the excess of the minimum price over 
the market price, times the output of the 
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project (but not more than a total level of dis-
bursements specified in the agreement). 
‘‘(C) LOAN REPAYMENTS.—The Secretary 
shall establish terms and conditions, including 
interest rates and amortization schedules, for 
the repayment of such loan within the full term 
of the agreement, subject to the following limi-
tations: 
‘‘(i) If in any calendar quarter during 
the primary term of the agreement the 
market price is less than the cap price, the 
project may elect to defer some or all of its 
repayment obligations due in that quarter. 
Any unpaid obligations will continue to ac-
crue interest. 
‘‘(ii) If in any calendar quarter during 
the primary term of the agreement the 
market price is greater than the cap price, 
the project shall meet its scheduled repay-
ment obligation plus deferred repayment 
obligations, but shall not be required to 
pay in that quarter an amount that is 
more than the excess of the market price 
over the cap price, times the output of the 
project. 
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‘‘(iii) At the end of the primary term 
of the agreement, the cumulative amount 
of any deferred repayment obligations, to-
gether with accrued interest, shall be am-
ortized (with interest) over the remainder 
of the full term of the agreement. 
‘‘(3) PROFIT-SHARING.—The Secretary is au-
thorized to enter into a profit-sharing agreement 
with the project at the time the standby loan agree-
ment is executed. Under such an agreement, if the 
market price exceeds the cap price in a calendar 
quarter, a profit-sharing payment shall be made for 
that quarter, in an amount equal to— 
‘‘(A) the excess of the market price over 
the cap price, times the output of the project; 
less 
‘‘(B) any loan repayments made for the 
calendar quarter. 
‘‘(4) COMPLIANCE WITH FEDERAL CREDIT RE-
FORM ACT.— 
‘‘(A) UPFRONT
PAYMENT
OF
COST
OF 
LOAN.—No standby loan agreement may be en-
tered into under this subsection unless the 
project makes a payment to the United States 
that the Office of Management and Budget de-
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(2) Subparagraph (C) of section 54A(d)(2) is 
amended to read as follows: 
‘‘(C) QUALIFIED PURPOSE.—For purposes 
of this paragraph, the term ‘qualified purpose’ 
means— 
‘‘(i) in the case of a qualified forestry 
conservation bond, a purpose specified in 
section 54B(e), and 
‘‘(ii) in the case of a new clean renew-
able energy bond, a purpose specified in 
section 54C(a)(1).’’. 
(3) The table of sections for subpart I of part 
IV of subchapter A of chapter 1 is amended by add-
ing at the end the following new item: 
‘‘SEC. 54C. Qualified clean renewable energy bonds.’’. 
(c) REPORTING.—Subsection (d) of section 6049 is 
amended by adding at the end the following new para-
graph: 
‘‘(9) REPORTING
OF
CREDIT
ON
QUALIFIED 
TAX CREDIT BONDS.— 
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts 
includible in gross income under section 54A 
and such amounts shall be treated as paid on 
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