under this section must be complied with by the les-
sees prior to the cancellation and exchange. 
(c) AREA PARTIALLY WITHIN 100 MILES OF FLOR-
IDA.—An existing oil and gas lease for an area located 
partially within 100 miles of the coastline within the Flor-
ida Adjacent Zone may only be developed and produced 
using wells drilled from well-head locations at least 100 
miles from the coastline to any bottom-hole location on 
the area of the lease. This subsection shall not apply if 
Florida has petitioned for leasing closer to the coastline 
than 100 miles. 
(d) EXISTING OIL AND GAS LEASE DEFINED.—In 
this section the term ‘‘existing oil and gas lease’’ means 
an oil and gas lease in effect on the date of the enactment 
of this Act. 
SEC. 126. COASTAL IMPACT ASSISTANCE. 
Section 31 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356a) is repealed. 
SEC. 127. SENSE OF THE CONGRESS TO BUY AND BUILD 
AMERICAN. 
(a) BUY AND BUILD AMERICAN.—It is the intention 
of the Congress that this Act, among other things, result 
in a healthy and growing American industrial, manufac-
turing, transportation, and service sector employing the 
vast talents of America’s workforce to assist in the devel-
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opment of affordable energy from the Outer Continental 
Shelf. Moreover, the Congress intends to monitor the de-
ployment of personnel and material in the Outer Conti-
nental Shelf to encourage the development of American 
technology and manufacturing to enable United States 
workers to benefit from this Act by good jobs and careers, 
as well as the establishment of important industrial facili-
ties to support expanded access to American resources. 
(b) SAFEGUARD FOR EXTRAORDINARY ABILITY.— 
Section 30(a) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356(a)) is amended in the matter preceding 
paragraph (1) by striking ‘‘regulations which’’ and insert-
ing ‘‘regulations that shall be supplemental and com-
plimentary with and under no circumstances a substi-
tution for the provisions of the Constitution and laws of 
the United States extended to the subsoil and seabed of 
the outer Continental Shelf pursuant to section 4(a)(1) 
of this Act, except insofar as such laws would otherwise 
apply to individuals who have extraordinary ability in the 
sciences, arts, education, or business, which has been dem-
onstrated by sustained national or international acclaim, 
and that’’. 
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SEC. 128. REPEAL OF THE GULF OF MEXICO ENERGY SECU-
RITY ACT OF 2006. 
The Gulf of Mexico Energy Security Act of 2006 is 
repealed effective October 1, 2008. 
SEC. 129. REMOVAL OF ADDITIONAL FEE FOR NEW APPLI-
CATIONS FOR PERMITS TO DRILL. 
The second undesignated paragraph of the matter 
under the heading ‘‘MANAGEMENT OF LANDS AND 
RESOURCES’’ under the heading ‘‘Bureau of Land Man-
agement’’ of title I of the Department of the Interior, En-
vironment, and Related Agencies Appropriations Act, 
2008 (Public Law 110–161; 121 Stat. 2098) is amended 
by striking ‘‘to be reduced’’ and all that follows through 
‘‘each new application,’’. 
SEC. 130. CREDIT FOR PRODUCING FUEL FROM NON-
CONVENTIONAL SOURCES TO APPLY TO GAS 
PRODUCED ONSHORE FROM FORMATIONS 
MORE THAN 15,000 FEET DEEP. 
(a) IN GENERAL.—Subparagraph (B) of section 
45K(c)(1) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘or’’ at the end of clause (i), by striking 
‘‘and’’ at the end of clause (ii) and inserting ‘‘or’’, and 
by inserting after clause (ii) the following new clause: 
‘‘(iii) an onshore well from a forma-
tion more than 15,000 feet deep, and’’. 
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(b) ELIGIBLE DEEP GAS WELLS.—Section 45K of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(h) ELIGIBLE DEEP GAS WELLS.—In the case of 
a well producing qualified fuel described in subsection 
(c)(1)(B)(iii)— 
‘‘(1) for purposes of subsection (e)(1)(A), such 
well shall be treated as drilled before January 1, 
1993, if such well is drilled after the date of the en-
actment of this subsection, and 
‘‘(2) subsection (e)(2) shall not apply.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 131. TAX CREDIT FOR CARBON DIOXIDE CAPTURED 
FROM INDUSTRIAL SOURCES AND USED IN 
ENHANCED OIL AND NATURAL GAS RECOV-
ERY. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business credits) is amended by adding 
at the end the following new section: 
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‘‘SEC. 45P. CREDIT FOR CARBON DIOXIDE CAPTURED FROM 
INDUSTRIAL SOURCES AND USED AS A TER-
TIARY INJECTANT IN ENHANCED OIL AND 
NATURAL GAS RECOVERY. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the captured carbon dioxide tertiary injectant credit for 
any taxable year is an amount equal to the product of— 
‘‘(1) the credit amount, and 
‘‘(2) the qualified carbon dioxide captured from 
industrial sources and used as a tertiary injectant in 
qualified enhanced oil and natural gas recovery 
which is attributable to the taxpayer. 
‘‘(b) CREDIT AMOUNT.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The credit amount is $0.75 
per 1,000 standard cubic feet. 
‘‘(2) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 
2007, there shall be substituted for the $0.75 
amount under paragraph (1) an amount equal to the 
product of— 
‘‘(A) $0.75, multiplied by 
‘‘(B) the inflation adjustment factor for 
such calendar year determined under section 
43(b)(3)(B) for such calendar year, determined 
by substituting ‘2006’ for ‘1990’. 
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‘‘(c) QUALIFIED CARBON DIOXIDE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified carbon 
dioxide’ means carbon dioxide captured from an an-
thropogenic source that— 
‘‘(A) would otherwise be released into the 
atmosphere as industrial emission of green-
house gas, 
‘‘(B) is measurable at the source of cap-
ture, 
‘‘(C) is compressed, treated, and trans-
ported via pipeline, 
‘‘(D) is sold as a tertiary injectant in 
qualified enhanced oil and natural gas recovery, 
and 
‘‘(E) is permanently sequestered in geologi-
cal formations as a result of the enhanced oil 
and natural gas recovery process. 
‘‘(2) ANTHROPOGENIC SOURCE.—An anthropo-
genic source of carbon dioxide is an industrial 
source, including any of the following types of 
plants, and facilities related to such plant— 
‘‘(A) a coal and natural gas fired electrical 
generating power station, 
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‘‘(B) a natural gas processing and treating 
plant, 
‘‘(C) an ethanol plant, 
‘‘(D) a fertilizer plant, and 
‘‘(E) a chemical plant. 
‘‘(3) DEFINITIONS.— 
‘‘(A) QUALIFIED ENHANCED OIL AND NAT-
URAL GAS RECOVERY.—The term ‘qualified en-
hanced oil and natural gas recovery’ has the 
meaning given such term by section 43(c)(2). 
‘‘(B) TERTIARY
INJECTANT.—The term 
‘tertiary injectant’ has the same meaning as 
when used within section 193(b)(1). 
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) ONLY CARBON DIOXIDE CAPTURED WITH-
IN THE UNITED STATES TAKEN INTO ACCOUNT.— 
Sales shall be taken into account under this section 
only with respect to qualified carbon dioxide of 
which is within— 
‘‘(A) the United States (within the mean-
ing of section 638(1)), or 
‘‘(B) a possession of the United States 
(within the meaning of section 638(2)). 
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‘‘(2) RECYCLED CARBON DIOXIDE.—The term 
‘qualified carbon dioxide’ includes the initial deposit 
of captured carbon dioxide used as a tertiary 
injectant. Such term does not include carbon dioxide 
that is re-captured, recycled, and re-injected as part 
of the enhanced oil and natural gas recovery process. 
‘‘(3) CREDIT ATTRIBUTABLE TO TAXPAYER.— 
Any credit under this section shall be attributable to 
the person that captures, treats, compresses, trans-
ports and sells the carbon dioxide for use as a ter-
tiary injectant in enhanced oil and natural gas re-
covery, except to the extent provided in regulations 
prescribed by the Secretary.’’. 
(b) CONFORMING AMENDMENT.—Section 38(b) of 
such Code (relating to general business credit), as amend-
ed by section 302, is amended by striking ‘‘plus’’ at the 
end of paragraph (31), by striking the period at the end 
of paragraph (32) and inserting ‘‘, plus’’, and by adding 
at the end of following new paragraph: 
‘‘(33) the captured carbon dioxide tertiary 
injectant credit determined under section 45P(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of such Code (relating to other credits) is amended by add-
ing at the end the following new section: 
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‘‘Sec. 45P. Credit for carbon dioxide captured from industrial sources and used 
as a tertiary injectant in enhanced oil and natural gas recov-
ery.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
TITLE II—OIL AND GAS LEASING 
PROGRAM 
FOR 
COASTAL 
PLAIN OF ALASKA 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘American Energy 
Independence and Price Reduction Act’’. 
SEC. 202. DEFINITIONS. 
In this title: 
(1) COASTAL
PLAIN.—The term ‘‘Coastal 
Plain’’ means that area described in appendix I to 
part 37 of title 50, Code of Federal Regulations. 
(2) SECRETARY.—The term ‘‘Secretary’’, except 
as otherwise provided, means the Secretary of the 
Interior or the Secretary’s designee. 
SEC. 203. LEASING PROGRAM FOR LANDS WITHIN THE 
COASTAL PLAIN. 
(a) IN GENERAL.—The Secretary shall take such ac-
tions as are necessary— 
(1) to establish and implement, in accordance 
with this Act and acting through the Director of the 
Bureau of Land Management in consultation with 
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the Director of the United States Fish and Wildlife 
Service, a competitive oil and gas leasing program 
that will result in an environmentally sound program 
for the exploration, development, and production of 
the oil and gas resources of the Coastal Plain; and 
(2) to administer the provisions of this Act 
through regulations, lease terms, conditions, restric-
tions, prohibitions, stipulations, and other provisions 
that ensure the oil and gas exploration, development, 
and production activities on the Coastal Plain will 
result in no significant adverse effect on fish and 
wildlife, their habitat, subsistence resources, and the 
environment, including, in furtherance of this goal, 
by requiring the application of the best commercially 
available technology for oil and gas exploration, de-
velopment, and production to all exploration, devel-
opment, and production operations under this Act in 
a manner that ensures the receipt of fair market 
value by the public for the mineral resources to be 
leased. 
(b) REPEAL.— 
(1) REPEAL.—Section 1003 of the Alaska Na-
tional Interest Lands Conservation Act of 1980 (16 
U.S.C. 3143) is repealed. 
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(2) CONFORMING AMENDMENT.—The table of 
contents in section 1 of such Act is amended by 
striking the item relating to section 1003. 
(c) COMPLIANCE WITH REQUIREMENTS UNDER CER-
TAIN OTHER LAWS.— 
(1) COMPATIBILITY.—For purposes of the Na-
tional Wildlife Refuge System Administration Act of 
1966 (16 U.S.C. 668dd et seq.), the oil and gas 
leasing program and activities authorized by this 
section in the Coastal Plain are deemed to be com-
patible with the purposes for which the Arctic Na-
tional Wildlife Refuge was established, and no fur-
ther findings or decisions are required to implement 
this determination. 
(2) ADEQUACY OF THE DEPARTMENT OF THE 
INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT 
STATEMENT.—The 
‘‘Final 
Legislative 
Environ-
mental Impact Statement’’ (April 1987) on the 
Coastal Plain prepared pursuant to section 1002 of 
the Alaska National Interest Lands Conservation 
Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) 
of the National Environmental Policy Act of 1969 
(42 U.S.C. 4332(2)(C)) is deemed to satisfy the re-
quirements under the National Environmental Policy 
Act of 1969 that apply with respect to prelease ac-
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tivities, including actions authorized to be taken by 
the Secretary to develop and promulgate the regula-
tions for the establishment of a leasing program au-
thorized by this Act before the conduct of the first 
lease sale. 
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.—Before conducting the first lease sale under 
this Act, the Secretary shall prepare an environ-
mental impact statement under the National Envi-
ronmental Policy Act of 1969 with respect to the ac-
tions authorized by this Act that are not referred to 
in paragraph (2). Notwithstanding any other law, 
the Secretary is not required to identify nonleasing 
alternative courses of action or to analyze the envi-
ronmental effects of such courses of action. The Sec-
retary shall only identify a preferred action for such 
leasing and a single leasing alternative, and analyze 
the environmental effects and potential mitigation 
measures for those two alternatives. The identifica-
tion of the preferred action and related analysis for 
the first lease sale under this Act shall be completed 
within 18 months after the date of enactment of this 
Act. The Secretary shall only consider public com-
ments that specifically address the Secretary’s pre-
ferred action and that are filed within 20 days after 
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publication of an environmental analysis. Notwith-
standing any other law, compliance with this para-
graph is deemed to satisfy all requirements for the 
analysis and consideration of the environmental ef-
fects of proposed leasing under this Act. 
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this Act shall be considered to expand 
or limit State and local regulatory authority. 
(e) SPECIAL AREAS.— 
(1) IN
GENERAL.—The Secretary, after con-
sultation with the State of Alaska, the city of 
Kaktovik, and the North Slope Borough, may des-
ignate up to a total of 45,000 acres of the Coastal 
Plain as a Special Area if the Secretary determines 
that the Special Area is of such unique character 
and interest so as to require special management 
and regulatory protection. The Secretary shall des-
ignate as such a Special Area the Sadlerochit Spring 
area, comprising approximately 4,000 acres. 
(2) MANAGEMENT.—Each such Special Area 
shall be managed so as to protect and preserve the 
area’s unique and diverse character including its 
fish, wildlife, and subsistence resource values. 
(3) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.—The Secretary may exclude any Spe-
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cial Area from leasing. If the Secretary leases a Spe-
cial Area, or any part thereof, for purposes of oil 
and gas exploration, development, production, and 
related activities, there shall be no surface occu-
pancy of the lands comprising the Special Area. 
(4) DIRECTIONAL DRILLING.—Notwithstanding 
the other provisions of this subsection, the Secretary 
may lease all or a portion of a Special Area under 
terms that permit the use of horizontal drilling tech-
nology from sites on leases located outside the Spe-
cial Area. 
(f) LIMITATION
ON
CLOSED
AREAS.—The Sec-
retary’s sole authority to close lands within the Coastal 
Plain to oil and gas leasing and to exploration, develop-
ment, and production is that set forth in this Act. 
(g) REGULATIONS.— 
(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out this Act, including rules and regulations relating 
to protection of the fish and wildlife, their habitat, 
subsistence resources, and environment of the Coast-
al Plain, by no later than 15 months after the date 
of enactment of this Act. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary shall periodically review and, if appropriate, 
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revise the rules and regulations issued under sub-
section (a) to reflect any significant biological, envi-
ronmental, or engineering data that come to the Sec-
retary’s attention. 
SEC. 204. LEASE SALES. 
(a) IN GENERAL.—Lands may be leased pursuant to 
this Act to any person qualified to obtain a lease for depos-
its of oil and gas under the Mineral Leasing Act (30 
U.S.C. 181 et seq.). 
(b) PROCEDURES.—The Secretary shall, by regula-
tion, establish procedures for— 
(1) receipt and consideration of sealed nomina-
tions for any area in the Coastal Plain for inclusion 
in, or exclusion (as provided in subsection (c)) from, 
a lease sale; 
(2) the holding of lease sales after such nomina-
tion process; and 
(3) public notice of and comment on designa-
tion of areas to be included in, or excluded from, a 
lease sale. 
(c) LEASE SALE BIDS.—Bidding for leases under 
this Act shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first 
lease sale under this Act, the Secretary shall offer for lease 
those tracts the Secretary considers to have the greatest 
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potential for the discovery of hydrocarbons, taking into 
consideration nominations received pursuant to subsection 
(b)(1), but in no case less than 200,000 acres. 
(e) TIMING
OF
LEASE
SALES.—The Secretary 
shall— 
(1) conduct the first lease sale under this Act 
within 22 months after the date of the enactment of 
this Act; 
(2) evaluate the bids in such sale and issue 
leases resulting from such sale, within 90 days after 
the date of the completion of such sale; and 
(3) conduct additional sales so long as sufficient 
interest in development exists to warrant, in the Sec-
retary’s judgment, the conduct of such sales. 
SEC. 205. GRANT OF LEASES BY THE SECRETARY. 
(a) IN GENERAL.—The Secretary may grant to the 
highest responsible qualified bidder in a lease sale con-
ducted pursuant to section 4 any lands to be leased on 
the Coastal Plain upon payment by the lessee of such 
bonus as may be accepted by the Secretary. 
(b) SUBSEQUENT
TRANSFERS.—No lease issued 
under this Act may be sold, exchanged, assigned, sublet, 
or otherwise transferred except with the approval of the 
Secretary. Prior to any such approval the Secretary shall 
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