992 
‘‘(iv) the amount, in megawatts, of 
the project’s fuel cell energy generation. 
‘‘(5) CERTIFICATION
OF
USE
OF
TAX
BEN-
EFIT.—No later than 30 days after the completion 
of the project, each project must certify to the Sec-
retary that the net benefit of the tax-exempt financ-
ing was used for the purposes described in para-
graph (4). 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) RURAL
STATE.—The term ‘rural 
State’ means any State which has— 
‘‘(i) 
a 
population 
of 
less 
than 
4,500,000 according to the 2000 census, 
‘‘(ii) a population density of less than 
150 people per square mile according to 
the 2000 census, and 
‘‘(iii) increased in population by less 
than half the rate of the national increase 
between the 1990 and 2000 censuses. 
‘‘(B) LOCAL
GOVERNMENT.—The term 
‘local government’ has the meaning given such 
term by section 1393(a)(5). 
‘‘(C) NET BENEFIT OF TAX-EXEMPT FI-
NANCING.—The term ‘net benefit of tax-exempt
993 
financing’ means the present value of the inter-
est savings (determined by a calculation estab-
lished by the Secretary) which result from the 
tax-exempt status of the bonds. 
‘‘(7) AGGREGATE
FACE
AMOUNT
OF
TAX-EX-
EMPT FINANCING.— 
‘‘(A) IN GENERAL.—An issue shall not be 
treated as an issue described in subsection 
(a)(14) if the aggregate face amount of bonds 
issued by the State or local government pursu-
ant thereto for a project (when added to the ag-
gregate face amount of bonds previously so 
issued for such project) exceeds an amount des-
ignated by the Secretary as part of the designa-
tion. 
‘‘(B) 
LIMITATION
ON
AMOUNT
OF 
BONDS.—The Secretary may not allocate au-
thority to issue qualified green building and 
sustainable design project bonds in an aggre-
gate face amount exceeding $2,000,000,000. 
‘‘(8) TERMINATION.—Subsection (a)(14) shall 
not apply with respect to any bond issued after Sep-
tember 30, 2009. 
‘‘(9) TREATMENT
OF
CURRENT
REFUNDING 
BONDS.—Paragraphs (7)(B) and (8) shall not apply
994 
to any bond (or series of bonds) issued to refund a 
bond issued under subsection (a)(14) before October 
1, 2009, if— 
‘‘(A) the average maturity date of the issue 
of which the refunding bond is a part is not 
later than the average maturity date of the 
bonds to be refunded by such issue, 
‘‘(B) the amount of the refunding bond 
does not exceed the outstanding amount of the 
refunded bond, and 
‘‘(C) the net proceeds of the refunding 
bond are used to redeem the refunded bond not 
later than 90 days after the date of the 
issuance of the refunding bond. 
For purposes of subparagraph (A), average maturity shall 
be determined in accordance with section 147(b)(2)(A).’’. 
(c) EXEMPTION FROM GENERAL STATE VOLUME 
CAPS.—Paragraph (3) of section 146(g) (relating to ex-
ception for certain bonds) is amended— 
(1) by striking ‘‘or (13)’’ and inserting ‘‘(13), 
or (14)’’, and 
(2) by striking ‘‘and qualified public educational 
facilities’’ and inserting ‘‘qualified public educational 
facilities, and qualified green building and sustain-
able design projects’’.
995 
(d) SPECIAL RULE FOR ASSETS FINANCED UNDER 
THIS SECTION AND ACCOUNTABILITY.— 
(1) DENIAL OF DOUBLE BENEFIT.—Any asset 
financed with bonds issued pursuant to this section 
shall be ineligible for any credit or deduction estab-
lished under the Energy Tax Policy Act of 2004. 
(2) ACCOUNTABILITY.—Each issuer shall main-
tain, on behalf of each project, an interest bearing 
reserve account equal to 1 percent of the net pro-
ceeds of any bond issued under this section for such 
project. Not later than 5 years after the date of 
issuance, the Secretary of the Treasury, after con-
sultation with the Administrator of the Environ-
mental Protection Agency, shall determine whether 
the project financed with such bonds has substan-
tially complied with the terms and conditions de-
scribed in section 142(l)(4) of the Internal Revenue 
Code of 1986 (as added by this section). If the Sec-
retary, after such consultation, certifies that the 
project has substantially complied with such terms 
and conditions and meets the commitments set forth 
in the application for such project described in sec-
tion 142(l)(4) of such Code, amounts in the reserve 
account, including all interest, shall be released to 
the project. If the Secretary determines that the
996 
project has not substantially complied with such 
terms and conditions, amounts in the reserve ac-
count, including all interest, shall be paid to the 
United States Treasury. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issues after the date of 
the enactment of this Act. 
TITLE XIV—MISCELLANEOUS 
Subtitle A—Rural and Remote 
Electricity Construction 
SEC. 1401. DENALI COMMISSION PROGRAMS. 
(a) POWER COST EQUALIZATION PROGRAM.—There 
are authorized to be appropriated to the Denali Commis-
sion established by the Denali Commission Act of 1998 
(42 U.S.C. 3121 note) not more than $5,000,000 for each 
of fiscal years 2005 through 2011 for the purposes of 
funding the power cost equalization program established 
under section 42.45.100 of the Alaska Statutes. 
(b) AVAILABILITY OF FUNDS.— 
(1) PURPOSE.—Amounts described in para-
graph (2) shall be available to the Denali Commis-
sion to permit energy generation and development 
(including fuel cells, hydroelectric, solar, wind, wave, 
and tidal energy, and alternative energy sources), 
energy transmission (including interties), fuel tank
997 
replacement and clean-up, fuel transportation net-
works and related facilities, power cost equalization 
programs, and other energy programs, notwith-
standing any other provision of law. 
(2) AMOUNTS.—(A) Except as provided in sub-
paragraph (B), the amounts referred to in para-
graph (1) shall be any Federal royalties, rents, and 
bonuses derived from the Federal share of Federal 
oil and gas leases in the National Petroleum Reserve 
in Alaska, up to a maximum of $50,000,000, for 
each of the fiscal years 2004 through 2013. 
(B) If amounts available under subparagraph 
(A) for one of the fiscal years 2004 through 2013 
are less than $50,000,000, the Secretary of Energy 
shall make available an amount sufficient to ensure 
that the amount available under this subsection for 
that fiscal year equals $50,000,000, from amounts 
remaining after deposits are made under section 
949(a)(1), from the same source from which those 
deposits are made. 
SEC. 1402. RURAL AND REMOTE COMMUNITY ASSISTANCE. 
(a) PROGRAM.—Section 19 of the Rural Electrifica-
tion Act of 1936 (7 U.S.C 918a) is amended by striking 
all that precedes subsection (b) and inserting the fol-
lowing:
998 
‘‘SEC. 19. ELECTRIC GENERATION, TRANSMISSION, AND 
DISTRIBUTION 
FACILITIES 
EFFICIENCY 
GRANTS AND LOANS TO RURAL AND REMOTE 
COMMUNITIES WITH EXTREMELY HIGH ELEC-
TRICITY COSTS. 
‘‘(a) IN GENERAL.—The Secretary, acting through 
the Rural Utilities Service, may— 
‘‘(1) in coordination with State rural develop-
ment initiatives, make grants and loans to persons, 
States, political subdivisions of States, and other en-
tities organized under the laws of States, to acquire, 
construct, extend, upgrade, and otherwise improve 
electric generation, transmission, and distribution fa-
cilities serving communities in which the average 
revenue per kilowatt hour of electricity for all con-
sumers is greater than 150 percent of the average 
revenue per kilowatt hour of electricity for all con-
sumers in the United States (as determined by the 
Energy Information Administration using the most 
recent data available); 
‘‘(2) make grants and loans to the Denali Com-
mission established by the Denali Commission Act of 
1998 (42 U.S.C. 3121 note; Public 105–277) to be 
used for the purpose of providing funds to acquire, 
construct, extend, upgrade, finance, and otherwise 
improve electric generation, transmission, and dis-
999 
tribution facilities serving communities described in 
paragraph (1); and 
‘‘(3) make grants to State entities to establish 
and support a revolving fund to provide a more cost- 
effective means of purchasing fuel in areas where 
the fuel cannot be shipped by means of surface 
transportation.’’. 
(b) DEFINITION
OF PERSON.—Section 13 of the 
Rural Electrification Act of 1936 (7 U.S.C. 913) is 
amended by striking ‘‘or association’’ and inserting ‘‘asso-
ciation, or Indian tribe (as defined in section 4 of the In-
dian Self-Determination and Education Assistance Act)’’. 
Subtitle B—Coastal Programs 
SEC. 1411. ROYALTY PAYMENTS UNDER LEASES UNDER 
THE OUTER CONTINENTAL SHELF LANDS 
ACT. 
(a) ROYALTY RELIEF.— 
(1) IN GENERAL.—For purposes of providing 
compensation for lessees and a State for which 
amounts are authorized by section 6004(c) of the Oil 
Pollution Act of 1990 (Public Law 101–380), a les-
see may withhold from payment any royalty due and 
owing to the United States under any leases under 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1301 et seq.) for offshore oil or gas production from
1000 
a covered lease tract if, on or before the date that 
the payment is due and payable to the United 
States, the lessee makes a payment to the Secretary 
of the Interior of 44 cents for every $1 of royalty 
withheld. 
(2) USE OF AMOUNTS PAID TO SECRETARY.— 
Within 30 days after the Secretary of the Interior 
receives payments under paragraph (1), the Sec-
retary of the Interior shall— 
(A) make 47.5 percent of such payments 
available to the State referred to in section 
6004(c) of the Oil Pollution Act of 1990; and 
(B) make 52.5 percent of such payments 
available equally, only for the programs and 
purposes identified as number 282 at page 
1389 of House Report number 108–10 and for 
a program described at page 1159 of that Re-
port in the State referred to in such section 
6004(c). 
(3) TREATMENT
OF
AMOUNTS.—Any royalty 
withheld by a lessee in accordance with this section 
(including any portion thereof that is paid to the 
Secretary of the Interior under paragraph (1)) shall 
be treated as paid for purposes of satisfaction of the 
royalty obligations of the lessee to the United States.
1001 
(4) CERTIFICATION OF WITHHELD AMOUNTS.— 
The Secretary of the Treasury shall— 
(A) determine the amount of royalty with-
held by a lessee under this section; and 
(B) promptly publish a certification when 
the total amount of royalty withheld by the les-
see under this section is equal to— 
(i) the dollar amount stated at page 
47 of Senate Report number 101–534, 
which is designated therein as the total 
drainage claim for the West Delta field; 
plus 
(ii) interest as described at page 47 of 
that Report. 
(b) PERIOD OF ROYALTY RELIEF.—Subsection (a) 
shall apply to royalty amounts that are due and payable 
in the period beginning on January 1, 2004, and ending 
on the date on which the Secretary of the Treasury pub-
lishes a certification under subsection (a)(4)(B). 
(c) DEFINITIONS.—As used in this section: 
(1) COVERED LEASE TRACT.—The term ‘‘cov-
ered lease tract’’ means a leased tract (or portion of 
a leased tract)—
1002 
(A) lying seaward of the zone defined and 
governed by section 8(g) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1337(g)); or 
(B) lying within such zone but to which 
such section does not apply. 
(2) LESSEE.—The term ‘‘lessee’’— 
(A) means a person or entity that, on the 
date of the enactment of the Oil Pollution Act 
of 1990, was a lessee referred to in section 
6004(c) of that Act (as in effect on that date 
of the enactment), but did not hold lease rights 
in Federal offshore lease OCS–G–5669; and 
(B) includes successors and affiliates of a 
person or entity described in subparagraph (A). 
SEC. 1412. DOMESTIC OFFSHORE ENERGY REINVESTMENT. 
(a) DOMESTIC OFFSHORE ENERGY REINVESTMENT 
PROGRAM.—The Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 32. DOMESTIC OFFSHORE ENERGY REINVESTMENT 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) APPROVED
PLAN.—The term ‘approved 
plan’ means a Secure Energy Reinvestment Plan ap-
proved by the Secretary under this section.
1003 
‘‘(2) COASTAL
ENERGY
STATE.—The term 
‘Coastal Energy State’ means a Coastal State off 
the coastline of which, within the seaward lateral 
boundary as determined by the map referenced in 
subsection (c)(2)(A), outer Continental Shelf bonus 
bids or royalties are generated, other than bonus 
bids or royalties from a leased tract within any area 
of the outer Continental Shelf for which a morato-
rium on new leasing was in effect as of January 1, 
2002, unless the lease was issued before the estab-
lishment of the moratorium and was in production 
on such date. 
‘‘(3) COASTAL
POLITICAL
SUBDIVISION.—The 
term ‘coastal political subdivision’ means a county, 
parish, or other equivalent subdivision of a Coastal 
Energy State, all or part of which lies within the 
boundaries of the coastal zone of the State, as iden-
tified in the State’s approved coastal zone manage-
ment program under the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1451 et seq.) on the date 
of the enactment of this section. 
‘‘(4) COASTAL POPULATION.—The term ‘coastal 
population’ means the population of a coastal polit-
ical subdivision, as determined by the most recent 
official data of the Census Bureau.
1004 
‘‘(5) COASTLINE.—The term ‘coastline’ has the 
same meaning as the term ‘coast line’ in subsection 
2(c) of the Submerged Lands Act (43 U.S.C. 
1301(c)). 
‘‘(6) FUND.—The term ‘Fund’ means the Se-
cure Energy Reinvestment Fund established by this 
section. 
‘‘(7) LEASED TRACT.—The term ‘leased tract’ 
means a tract maintained under section 6 or leased 
under section 8 for the purpose of drilling for, devel-
oping, and producing oil and natural gas resources. 
‘‘(8) QUALIFIED OUTER CONTINENTAL SHELF 
REVENUES.—(A) Except as provided in subpara-
graph (B), the term ‘qualified outer Continental 
Shelf revenues’ means all amounts received by the 
United States on or after October 1, 2003, from 
each leased tract or portion of a leased tract lying 
seaward of the zone defined and governed by section 
8(g), or lying within such zone but to which section 
8(g) does not apply, including bonus bids, rents, roy-
alties (including payments for royalties taken in kind 
and sold), net profit share payments, and related in-
terest. 
‘‘(B) Such term does not include any revenues 
from a leased tract or portion of a leased tract that
1005 
is included within any area of the outer Continental 
Shelf for which a moratorium on new leasing was in 
effect as of January 1, 2002, unless the lease was 
issued before the establishment of the moratorium 
and was in production on such date. 
‘‘(9) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Interior. 
‘‘(b) SECURE ENERGY REINVESTMENT FUND.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a separate ac-
count which shall be known as the ‘Secure Energy 
Reinvestment Fund’. The Fund shall consist of 
amounts deposited under paragraph (2), and such 
other amounts as may be appropriated to the Fund. 
‘‘(2) DEPOSITS.—For each fiscal year after fis-
cal year 2003, the Secretary of the Treasury shall 
deposit into the Fund the following: 
‘‘(A) Notwithstanding section 9, all quali-
fied outer Continental Shelf revenues attrib-
utable to royalties received by the United States 
in the fiscal year that are in excess of the fol-
lowing amount: 
‘‘(i) $3,455,000,000 in the case of 
royalties received in fiscal year 2004.
1006 
‘‘(ii) $3,726,000,000 in the case of 
royalties received in fiscal year 2005. 
‘‘(iii) $4,613,000,000 in the case of 
royalties received in fiscal year 2006. 
‘‘(iv) $5,226,000,000 in the case of 
royalties received in fiscal year 2007. 
‘‘(v) $5,841,000,000 in the case of 
royalties received in fiscal year 2008. 
‘‘(vi) $5,763,000,000 in the case of 
royalties received in fiscal year 2009. 
‘‘(vii) $6,276,000,000 in the case of 
royalties received in fiscal year 2010. 
‘‘(viii) $6,351,000,000 in the case of 
royalties received in fiscal year 2011. 
‘‘(ix) $6,551,000,000 in the case of 
royalties received in fiscal year 2012. 
‘‘(x) $5,120,000,000 in the case of 
royalties received in fiscal year 2013. 
‘‘(B) Notwithstanding section 9, all quali-
fied outer Continental shelf revenues attrib-
utable to bonus bids received by the United 
States in each of the fiscal years 2004 through 
2013 that are in excess of $1,000,000,000. 
‘‘(C) Notwithstanding section 9, in addi-
tion to amounts deposited under subparagraphs
1007 
(A) and (B), $35,000,000 of amounts received 
by the United States each fiscal year as royal-
ties for oil or gas production on the outer Con-
tinental Shelf, except that no amounts shall be 
deposited under this subparagraph before fiscal 
year 2004 or after fiscal year 2013. 
‘‘(D) All interest earned under paragraph 
(4). 
‘‘(E) All repayments under subsection (f). 
‘‘(3) REDUCTION IN DEPOSIT.—(A) For each 
fiscal year after fiscal year 2013 in which amounts 
received by the United States as royalties for oil or 
gas production on the outer Continental Shelf are 
less than the sum of the amounts described in sub-
paragraph (B) (before the application of this sub-
paragraph), the Secretary of the Treasury shall re-
duce each of the amounts described in subparagraph 
(B) proportionately. 
‘‘(B) The amounts referred to in subparagraph 
(A) are the following: 
‘‘(i) The amount required to be covered 
into the Historic Preservation Fund under sec-
tion 108 of the National Historic Preservation 
Act (16 U.S.C. 470h) on the date of the enact-
ment of this paragraph.
1008 
‘‘(ii) The amount required to be credited to 
the Land and Water Conservation Fund under 
section 2(c)(2) of the Land and Water Con-
servation Fund Act of 1965 (16 U.S.C. 4601– 
5(c)(2)) on the date of the enactment of this 
paragraph. 
‘‘(iii) The amount required to be deposited 
under subparagraph (C) of paragraph (2) of 
this subsection. 
‘‘(4) INVESTMENT.—The Secretary of the 
Treasury shall invest moneys in the Fund (including 
interest) in public debt securities with maturities 
suitable to the needs of the Fund, as determined by 
the Secretary of the Treasury, and bearing interest 
at rates determined by the Secretary of the Treas-
ury, taking into consideration current market yields 
on outstanding marketable obligations of the United 
States of comparable maturity. Such invested mon-
eys shall remain invested until needed to meet re-
quirements for disbursement under this section. 
‘‘(5) REVIEW
AND
REVISION
OF
BASELINE 
AMOUNTS.—Not later than December 31, 2008, the 
Secretary of the Interior, in consultation with the 
Secretary of the Treasury, shall—
1014 
‘‘(3) REALLOCATION.—Any amount allocated to 
a Coastal Energy State or coastal political subdivi-
sion of such a State but not disbursed because of a 
failure of a Coastal Energy State to have an ap-
proved plan shall be reallocated by the Secretary 
among all other Coastal Energy States in a manner 
consistent with this subsection, except that the Sec-
retary— 
‘‘(A) shall hold the amount in escrow with-
in the Fund until the earlier of the end of the 
next fiscal year in which the allocation is made 
or the final resolution of any appeal regarding 
the disapproval of a plan submitted by the 
State under this section; and 
‘‘(B) shall continue to hold such amount in 
escrow until the end of the subsequent fiscal 
year thereafter, if the Secretary determines that 
such State is making a good faith effort to de-
velop and submit, or update, a Secure Energy 
Reinvestment Plan under subsection (d). 
‘‘(4) MINIMUM
SHARE.—Notwithstanding any 
other provision of this subsection, the amount allo-
cated under this subsection to each Coastal Energy 
State each fiscal year shall be not less than 5 per-
cent of the total amount available for that fiscal year
1015 
for allocation under this subsection to Coastal En-
ergy States, except that for any Coastal Energy 
State determined by the Secretary to have an area 
formed by the extension of the State’s seaward lat-
eral boundary, as designated by the map referenced 
in paragraph (2)(A)(iii), of less than 490 square 
statute miles, the amount allocated to such State 
shall not be less than 10 percent of the total amount 
available for that fiscal year for allocation under this 
subsection. 
‘‘(5) RECOMPUTATION.—If the allocation to one 
or more Coastal Energy States under paragraph (4) 
with respect to a fiscal year is greater than the 
amount that would be allocated to such States under 
this subsection if paragraph (4) did not apply, then 
the allocations under this subsection to all other 
Coastal Energy States shall be paid from the 
amount remaining after deduction of the amounts 
allocated under paragraph (4), but shall be reduced 
on a pro rata basis by the sum of the allocations 
under paragraph (4) so that not more than 100 per-
cent of the funds available in the Fund for allocation 
with respect to that fiscal year is allocated. 
‘‘(d) SECURE ENERGY REINVESTMENT PLAN.—