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‘‘(B) FORMULA.—Of the amount paid by 
the Secretary to coastal political subdivisions 
under subparagraph (A)— 
‘‘(i) 25 percent shall be allocated to 
each coastal political subdivision in the pro-
portion that— 
‘‘(I) the coastal population of the 
coastal political subdivision; bears to 
‘‘(II) the coastal population of all 
coastal political subdivisions in the 
producing State; 
‘‘(ii) 25 percent shall be allocated to 
each coastal political subdivision in the pro-
portion that— 
‘‘(I) the number of miles of coast-
line of the coastal political subdivision; 
bears to 
‘‘(II) the number of miles of coast-
line of all coastal political subdivisions 
in the producing State; and 
‘‘(iii) 50 percent shall be allocated in 
amounts that are inversely proportional to 
the respective distances between the points 
in each coastal political subdivision that
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are closest to the geographic center of each 
leased tract, as determined by the Secretary. 
‘‘(C) EXCEPTION FOR THE STATE OF LOU-
ISIANA.—For the purposes of subparagraph 
(B)(ii), the coastline for coastal political subdivi-
sions in the State of Louisiana without a coast-
line shall be considered to be 1⁄3 the average 
length of the coastline of all coastal political sub-
divisions with a coastline in the State of Lou-
isiana. 
‘‘(D) EXCEPTION FOR THE STATE OF ALAS-
KA.—For the purposes of carrying out subpara-
graph (B)(iii) in the State of Alaska, the 
amounts allocated shall be divided equally 
among the 2 coastal political subdivisions that 
are closest to the geographic center of a leased 
tract. 
‘‘(E) EXCLUSION
OF
CERTAIN
LEASED 
TRACTS.—For purposes of subparagraph (B)(iii), 
a leased tract or portion of a leased tract shall 
be excluded if the tract or portion of a leased 
tract is located in a geographic area subject to 
a leasing moratorium on January 1, 2005, un-
less the lease was in production on that date. 
‘‘(6) NO APPROVED PLAN.—
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B) and except as provided in subpara-
graph (C), in a case in which any amount allo-
cated to a producing State or coastal political 
subdivision under paragraph (4) or (5) is not 
disbursed because the producing State does not 
have in effect a plan that has been approved by 
the Secretary under subsection (c), the Secretary 
shall allocate the undisbursed amount equally 
among all other producing States. 
‘‘(B) RETENTION
OF
ALLOCATION.—The 
Secretary shall hold in escrow an undisbursed 
amount described in subparagraph (A) until 
such date as the final appeal regarding the dis-
approval of a plan submitted under subsection 
(c) is decided. 
‘‘(C) WAIVER.—The Secretary may waive 
subparagraph (A) with respect to an allocated 
share of a producing State and hold the allocable 
share in escrow if the Secretary determines that 
the producing State is making a good faith effort 
to develop and submit, or update, a plan in ac-
cordance with subsection (c). 
‘‘(c) COASTAL IMPACT ASSISTANCE PLAN.— 
‘‘(1) SUBMISSION OF STATE PLANS.—
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‘‘(A) IN GENERAL.—Not later than July 1, 
2008, the Governor of a producing State shall 
submit to the Secretary a coastal impact assist-
ance plan. 
‘‘(B) PUBLIC PARTICIPATION.—In carrying 
out subparagraph (A), the Governor shall solicit 
local input and provide for public participation 
in the development of the plan. 
‘‘(2) APPROVAL.— 
‘‘(A) IN GENERAL.—The Secretary shall ap-
prove a plan of a producing State submitted 
under paragraph (1) before disbursing any 
amount to the producing State, or to a coastal 
political subdivision located in the producing 
State, under this section. 
‘‘(B) COMPONENTS.—The Secretary shall 
approve a plan submitted under paragraph (1) 
if— 
‘‘(i) the Secretary determines that the 
plan is consistent with the uses described in 
subsection (d); and 
‘‘(ii) the plan contains— 
‘‘(I) the name of the State agency 
that will have the authority to rep-
resent and act on behalf of the pro-
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ducing State in dealing with the Sec-
retary for purposes of this section; 
‘‘(II) a program for the imple-
mentation of the plan that describes 
how the amounts provided under this 
section to the producing State will be 
used; 
‘‘(III) for each coastal political 
subdivision that receives an amount 
under this section— 
‘‘(aa) the name of a contact 
person; and 
‘‘(bb) a description of how 
the coastal political subdivision 
will use amounts provided under 
this section; 
‘‘(IV) a certification by the Gov-
ernor that ample opportunity has been 
provided for public participation in 
the development and revision of the 
plan; and 
‘‘(V) a description of measures 
that will be taken to determine the 
availability of assistance from other
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relevant Federal resources and pro-
grams. 
‘‘(3) AMENDMENT.—Any amendment to a plan 
submitted under paragraph (1) shall be— 
‘‘(A) developed in accordance with this sub-
section; and 
‘‘(B) submitted to the Secretary for ap-
proval or disapproval under paragraph (4). 
‘‘(4) PROCEDURE.—Not later than 90 days after 
the date on which a plan or amendment to a plan is 
submitted under paragraph (1) or (3), the Secretary 
shall approve or disapprove the plan or amendment. 
‘‘(d) AUTHORIZED USES.— 
‘‘(1) IN GENERAL.—A producing State or coastal 
political subdivision shall use all amounts received 
under this section, including any amount deposited 
in a trust fund that is administered by the State or 
coastal political subdivision and dedicated to uses 
consistent with this section, in accordance with all 
applicable Federal and State law, only for 1 or more 
of the following purposes: 
‘‘(A) Projects and activities for the con-
servation, protection, or restoration of coastal 
areas, including wetland.
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‘‘(B) Mitigation of damage to fish, wildlife, 
or natural resources. 
‘‘(C) Planning assistance and the adminis-
trative costs of complying with this section. 
‘‘(D) Implementation of a federally-ap-
proved marine, coastal, or comprehensive con-
servation management plan. 
‘‘(E) Mitigation of the impact of outer Con-
tinental Shelf activities through funding of on-
shore infrastructure projects and public service 
needs. 
‘‘(2) COMPLIANCE WITH AUTHORIZED USES.—If 
the Secretary determines that any expenditure made 
by a producing State or coastal political subdivision 
is not consistent with this subsection, the Secretary 
shall not disburse any additional amount under this 
section to the producing State or the coastal political 
subdivision until such time as all amounts obligated 
for unauthorized uses have been repaid or reobligated 
for authorized uses. 
‘‘(3) LIMITATION.—Not more than 23 percent of 
amounts received by a producing State or coastal po-
litical subdivision for any 1 fiscal year shall be used 
for the purposes described subparagraphs (C) and (E) 
of paragraph (1).’’.
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Subtitle E—Natural Gas 
SEC. 381. EXPORTATION OR IMPORTATION OF NATURAL 
GAS. 
Section 3 of the Natural Gas Act (15 U.S.C. 717b) is 
amended by adding at the end the following: 
‘‘(d) Except as specifically provided in this part, noth-
ing in this Act affects the rights of States under— 
‘‘(1) the Coastal Zone Management Act of 1972 
(16 U.S.C. 1451 et seq.) 
‘‘(2) the Clean Air Act (42 U.S.C. 7401 et seq.); 
or 
‘‘(3) the Federal Water Pollution Control Act (33 
U.S.C. 1251 et seq.). 
‘‘(e)(1) No facilities located onshore or in State waters 
for the import of natural gas from a foreign country, or 
the export of natural gas to a foreign country, shall be sited, 
constructed, expanded, or operated, unless the Commission 
has authorized such acts or operations. 
‘‘(2) The Commission shall have the exclusive author-
ity to approve or deny an application for the siting, con-
struction, expansion, or operation of facilities located on-
shore or in State waters for the import of natural gas from 
a foreign county or the export of natural gas to a foreign 
country.
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‘‘(3)(A) Except as provided in subparagraph (B), the 
Commission may approve an application described in 
paragraph (2), in whole or part, with such modifications 
and upon such terms and conditions as the Commission 
finds appropriate. 
‘‘(B) The Commission shall not— 
‘‘(i) deny an application solely on the basis that 
the applicant proposes to use the liquefied natural gas 
import facility exclusively or partially for gas that 
the applicant or an affiliate of the applicant will sup-
ply to the facility; or 
‘‘(ii) condition an order on— 
‘‘(I) a requirement that the liquefied nat-
ural gas import facility offer service to customers 
other than the applicant, or any affiliate of the 
applicant, securing the order; 
‘‘(II) any regulation of the rates, charges, 
terms, or conditions of service of the liquefied 
natural gas import facility; or 
‘‘(III) a requirement to file with the Com-
mission schedules or contracts related to the 
rates, charges, terms, or conditions of service of 
the liquefied natural gas import facility. 
‘‘(4) An order issued for a liquefied natural gas import 
facility that also offers service to customers on an open ac-
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cess basis shall not result in subsidization of expansion ca-
pacity by existing customers, degradation of service to exist-
ing customers, or undue discrimination against existing 
customers as to their terms or conditions of service at the 
facility, as all of those terms are defined by the Commis-
sion.’’. 
SEC. 382. NEW NATURAL GAS STORAGE FACILITIES. 
Section 4 of the Natural Gas Act (15 U.S.C. 717c) is 
amended by adding at the end the following: 
‘‘(f)(1) In exercising its authority under this Act or 
the Natural Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), 
the Commission may authorize a natural gas company (or 
any person that will be a natural gas company on comple-
tion of any proposed construction) to provide storage and 
storage-related services at market-based rates for new stor-
age capacity placed in service after the date of enactment 
of the Energy Policy Act of 2005, notwithstanding the fact 
that the company is unable to demonstrate that the com-
pany lacks market power, if the Commission determines 
that— 
‘‘(A) market-based rates are in the public inter-
est and necessary to encourage the construction of 
storage capacity in areas needing storage services; 
and 
‘‘(B) customers are adequately protected.
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‘‘(2) The Commission shall ensure that reasonable 
terms and conditions are in place to protect consumers. 
‘‘(3) If the Commission authorizes a natural gas com-
pany to charge market-based rates under this subsection, 
the Commission shall review periodically (but not more fre-
quently than triennially) whether the market-based rate is 
just, reasonable, and not unduly discriminatory or pref-
erential.’’. 
SEC. 383. PROCESS COORDINATION; HEARINGS; RULES OF 
PROCEDURES. 
Section 15 of the Natural Gas Act (15 U.S.C. 717n) 
is amended— 
(1) by striking the section heading and inserting 
the following: 
‘‘PROCESS COORDINATION; HEARINGS; RULES OF 
PROCEDURE’’; 
(2) by redesignating subsections (a) and (b) as 
subsections (e) and (f), respectively; 
(3) by striking ‘‘SEC. 15.’’ and inserting the fol-
lowing: 
‘‘SEC. 15. (a) In this section, the term ‘Federal author-
ization’— 
‘‘(1) means any authorization required under 
Federal law with respect to an application for au-
thorization under section 3 or a certificate of public 
convenience and necessity under section 7; and
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‘‘(2) includes any permits, special use authoriza-
tions, certifications, opinions, or other approvals as 
may be required under Federal law with respect to an 
application for authorization under section 3 or a 
certificate of public convenience and necessity under 
section 7. 
‘‘(b)(1) With respect to an application for Federal au-
thorization, the Commission shall, unless the Commission 
orders otherwise, be the lead agency for purposes of com-
plying with the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.). 
‘‘(2) As lead agency, the Commission, in consultation 
with affected agencies, shall prepare a single environmental 
review document, which shall be used as a basis for all deci-
sions under Federal law on— 
‘‘(A) an application for authorization under sec-
tion 3; or 
‘‘(B) a certificate of public convenience and ne-
cessity under section 7. 
‘‘(c)(1) The Commission shall, in consultation with 
agencies responsible for Federal authorizations, and with 
due consideration of recommendations by the agencies, es-
tablish a schedule for all Federal authorizations required 
to be completed before an application under section 3 or 
7 may be approved.
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‘‘(2) In establishing a schedule, the Commission shall 
comply with applicable schedules established by Federal 
law. 
‘‘(3) All Federal and State agencies with jurisdiction 
over natural gas infrastructure shall seek to coordinate their 
proceedings within the timeframes established by the Com-
mission with respect to an application for authorization 
under section 3 or a certificate of public convenience and 
necessity under section 7. 
‘‘(d)(1) In a case in which an administrative agency 
or officer has failed to act by the deadline established by 
the Commission under this section for deciding whether to 
issue the authorization, the applicant or any State in which 
the facility would be located may file an appeal with the 
President, who shall, in consultation with the affected agen-
cy, take action on the pending application. 
‘‘(2) Based on the overall record and in consultation 
with the affected agency, the President may— 
‘‘(A) issue the necessary authorization with any 
appropriate conditions; or 
‘‘(B) deny the application. 
‘‘(3) Not later than 90 days after the filing of an ap-
peal, the President shall issue a decision as to that appeal.
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‘‘(4) In making a decision under this subsection, the 
President shall comply with applicable requirements of Fed-
eral law, including— 
‘‘(A) the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.) 
‘‘(B) the Federal Water Pollution Control Act 
(33 U.S.C. 1251 et seq.); 
‘‘(C) the National Forest Management Act of 
1976 (16 U.S.C. 472a et seq.); 
‘‘(D) the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.); 
‘‘(E) the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1701 et seq.); 
‘‘(F) the Coastal Zone Management Act of 1972 
(16 U.S.C. 1451 et seq.); and 
‘‘(G) the Clean Air Act (42 U.S.C. 7401 et 
seq.).’’. 
SEC. 384. PENALTIES. 
(a) CRIMINAL PENALTIES.— 
(1) NATURAL GAS ACT.—Section 21 of the Nat-
ural Gas Act (15 U.S.C. 717t) is amended— 
(A) in subsection (a)— 
(i) by striking ‘‘$5,000’’ and inserting 
‘‘$1,000,000’’; and
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(ii) by striking ‘‘two years’’ and in-
serting ‘‘5 years’’; and 
(B) in subsection (b), by striking ‘‘$500’’ 
and inserting ‘‘$50,000’’. 
(2) NATURAL GAS POLICY ACT OF 1978.—Section 
504(c) of the Natural Gas Policy Act of 1978 (15 
U.S.C. 3414(c)) is amended— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘$5,000’’ and inserting ‘‘$1,000,000’’; 
(ii) in subparagraph (B), by striking 
‘‘two years’’ and inserting ‘‘5 years’’; and 
(B) in paragraph (2), by striking ‘‘$500 for 
each violation’’ and inserting ‘‘$50,000 for each 
day on which the offense occurs’’. 
(b) CIVIL PENALTIES.— 
(1) NATURAL GAS ACT.—The Natural Gas Act 
(15 U.S.C. 717 et seq.) is amended— 
(A) by redesignating sections 22 through 24 
as sections 24 through 26, respectively; and 
(B) by inserting after section 21 (15 U.S.C. 
717t) the following: 
‘‘CIVIL PENALTY AUTHORITY 
‘‘SEC. 22. (a) Any person that violates this Act, or any 
rule, regulation, restriction, condition, or order made or im-
posed by the Commission under authority of this Act, shall
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be subject to a civil penalty of not more than $1,000,000 
per day per violation for as long as the violation continues. 
‘‘(b) The penalty shall be assessed by the Commission 
after notice and opportunity for public hearing. 
‘‘(c) In determining the amount of a proposed penalty, 
the Commission shall take into consideration the nature 
and seriousness of the violation and the efforts to remedy 
the violation.’’. 
(2) NATURAL GAS POLICY ACT OF 1978.—Section 
504(b)(6)(A) of the Natural Gas Policy Act of 1978 
(15 U.S.C. 3414(b)(6)(A)) is amended— 
(A) in clause (i), by striking ‘‘$5,000’’ and 
inserting ‘‘$1,000,000’’; and 
(B) in clause (ii), by striking ‘‘$25,000’’ 
and inserting ‘‘$1,000,000’’. 
SEC. 385. MARKET MANIPULATION. 
The Natural Gas Act is amended by inserting after 
section 4 (15 U.S.C. 717c) the following: 
‘‘PROHIBITION ON MARKET MANIPULATION 
‘‘SEC. 4A. It shall be unlawful for any entity, directly 
or indirectly, to use or employ, in connection with the pur-
chase or sale of natural gas or the purchase or sale of trans-
portation services subject to the jurisdiction of the Commis-
sion, any manipulative or deceptive device or contrivance 
(as those terms are used in section 10(b) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78j(b)) in contravention
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of such rules and regulations as the Commission may pre-
scribe as necessary in the public interest or for the protec-
tion of natural gas ratepayers.’’ 
SEC. 386. NATURAL GAS MARKET TRANSPARENCY RULES. 
The Natural Gas Act (15 U.S.C. 717 et seq.) (as 
amended by section 385(b)(1)) is amended by inserting 
after section 22 the following: 
‘‘NATURAL GAS MARKET TRANSPARENCY RULES 
‘‘SEC. 23. (a)(1) The Commission may issue such rules 
as the Commission considers to be appropriate to establish 
an electronic information system to provide the Commission 
and the public with access to such information as is nec-
essary to facilitate price transparency and participation in 
markets for the sale or transportation of natural gas in 
interstate commerce. 
‘‘(2) The system under paragraph (1) shall provide, 
on a timely basis, information about the availability and 
prices of natural gas sold at wholesale and in interstate 
commerce to the Commission, State commissions, buyers 
and sellers of wholesale natural gas, and the public. 
‘‘(3) The Commission may— 
‘‘(A) obtain information described in paragraph 
(2) from any market participant; and 
‘‘(B) rely on an entity other than the Commis-
sion to receive and make public the information.