I 
110TH CONGRESS 
2D SESSION 
H. R. 6566 
To bring down energy prices by increasing safe, domestic production, encour-
aging the development of alternative and renewable energy, and pro-
moting conservation. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 22, 2008 
Mr. BOEHNER (for himself, Mr. BLUNT, Mr. PUTNAM, Mr. MCCOTTER, Ms. 
GRANGER, Mr. CARTER, Mr. COLE of Oklahoma, Mr. CANTOR, Mr. 
DREIER, Mr. BARTON of Texas, Mr. ENGLISH of Pennsylvania, Mr. 
DAVID DAVIS of Tennessee, Mrs. MYRICK, Mrs. MILLER of Michigan, Mr. 
SESSIONS, Mrs. SCHMIDT, Mrs. CUBIN, Mr. WILSON of South Carolina, 
Mr. LATTA, Mr. ISSA, Mr. DUNCAN, Mr. ROGERS of Michigan, Mr. 
NEUGEBAUER, Mr. GINGREY, Mr. BACHUS, Mr. BUYER, Mr. NUNES, 
Mrs. BLACKBURN, Ms. FALLIN, Mr. WAMP, Mrs. DRAKE, Mr. ROYCE, 
Mr. RADANOVICH, Mr. CHABOT, Mr. BRADY of Texas, Mr. SCALISE, Mr. 
ADERHOLT, Mr. WESTMORELAND, Mr. BONNER, Mr. MCHUGH, Mr. LIN-
DER, Mrs. MCMORRIS RODGERS, Mr. KING of New York, Mr. SHIMKUS, 
Mr. SMITH of Nebraska, Mr. ROGERS of Kentucky, Mr. SMITH of Texas, 
Mr. WOLF, Mr. BOUSTANY, Mr. ROHRABACHER, Mr. TIBERI, Mr. ROG-
ERS of Alabama, Ms. FOXX, Mr. CULBERSON, Mr. KUHL of New York, 
Mr. PICKERING, Mr. GOODE, Mr. GOHMERT, Mr. MARCHANT, Mr. DAVIS 
of Kentucky, Mr. MCCARTHY of California, Mrs. CAPITO, Mr. CALVERT, 
Mrs. BACHMANN, Mr. MCCAUL of Texas, Mr. SHUSTER, Mr. BISHOP of 
Utah, Mr. EVERETT, Mr. BURTON of Indiana, Mr. BOOZMAN, Mr. 
LATOURETTE, Mr. TERRY, Mr. FORTENBERRY, Mr. KING of Iowa, Mr. 
MANZULLO, Mr. HALL of Texas, Mr. HOEKSTRA, Mr. PLATTS, Mr. 
JONES of North Carolina, Mr. GRAVES, Mr. LAMBORN, Mr. KLINE of 
Minnesota, Mr. SALI, and Mr. PENCE) introduced the following bill; 
which was referred to the Committee on Natural Resources, and in addi-
tion to the Committees on the Judiciary, Ways and Means, Energy and 
Commerce, Armed Services, Oversight and Government Reform, and 
Science and Technology, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
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A BILL 
To bring down energy prices by increasing safe, domestic 
production, encouraging the development of alternative 
and renewable energy, and promoting conservation. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Energy Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—AMERICAN ENERGY 
Subtitle A—OCS 
Sec. 101. Short title. 
Sec. 102. Policy. 
Sec. 103. Definitions under the Submerged Lands Act. 
Sec. 104. Seaward boundaries of States. 
Sec. 105. Exceptions from confirmation and establishment of States’ title, 
power, and rights. 
Sec. 106. Definitions under the Outer Continental Shelf Lands Act. 
Sec. 107. Determination of adjacent zones and planning areas. 
Sec. 108. Administration of leasing. 
Sec. 109. Grant of leases by Secretary. 
Sec. 110. Disposition of receipts. 
Sec. 111. Reservation of lands and rights. 
Sec. 112. Outer Continental Shelf leasing program. 
Sec. 113. Coordination with adjacent States. 
Sec. 114. Environmental studies. 
Sec. 115. Termination of effect of laws prohibiting the spending of appro-
priated funds for certain purposes. 
Sec. 116. Outer Continental Shelf incompatible use. 
Sec. 117. Repurchase of certain leases. 
Sec. 118. Offsite environmental mitigation. 
Sec. 119. OCS regional headquarters. 
Sec. 120. Leases for areas located within 100 miles of California or Florida. 
Sec. 121. Coastal impact assistance. 
Sec. 122. Repeal of the Gulf of Mexico Energy Security Act of 2006. 
Subtitle B—ANWR 
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Sec. 141. Short title. 
Sec. 142. Definitions. 
Sec. 143. Leasing program for lands within the Coastal Plain. 
Sec. 144. Lease sales. 
Sec. 145. Grant of leases by the Secretary. 
Sec. 146. Lease terms and conditions. 
Sec. 147. Coastal Plain environmental protection. 
Sec. 148. Expedited judicial review. 
Sec. 149. Federal and State distribution of revenues. 
Sec. 150. Rights-of-way across the Coastal Plain. 
Sec. 151. Conveyance. 
Sec. 152. Local government impact aid and community service assistance. 
Subtitle C—Oil Shale 
Sec. 161. Repeal. 
TITLE II—CONSERVATION AND EFFICIENCY 
Subtitle A—Tax Incentives for Fuel Efficiency 
Sec. 201. Credit for new qualified plug-in electric drive motor vehicles. 
Sec. 202. Extension of credit for alternative fuel vehicles. 
Sec. 203. Extension of alternative fuel vehicle refueling property credit. 
Subtitle B—Tapping America’s Ingenuity and Creativity 
Sec. 211. Definitions. 
Sec. 212. Statement of policy. 
Sec. 213. Prize authority. 
Sec. 214. Eligibility. 
Sec. 215. Intellectual property. 
Sec. 216. Waiver of liability. 
Sec. 217. Authorization of appropriations. 
Sec. 218. Next generation automobile prize program. 
Sec. 219. Advanced battery manufacturing incentive program. 
Subtitle C—Home and Business Tax Incentives 
Sec. 221. Extension of credit for energy efficient appliances. 
Sec. 222. Extension of credit for nonbusiness energy property. 
Sec. 223. Extension of credit for residential energy efficient property. 
Sec. 224. Extension of new energy efficient home credit. 
Sec. 225. Extension of energy efficient commercial buildings deduction. 
Sec. 226. Extension of special rule to implement FERC and State electric re-
structuring policy. 
Sec. 227. Home energy audits. 
Sec. 228. Accelerated recovery period for depreciation of smart meters. 
Subtitle D—Refinery Permit Process Schedule 
Sec. 231. Short title. 
Sec. 232. Definitions. 
Sec. 233. State assistance. 
Sec. 234. Refinery process coordination and procedures. 
Sec. 235. Designation of closed military bases. 
Sec. 236. Savings clause. 
Sec. 237. Refinery revitalization repeal. 
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TITLE III—NEW AND EXPANDING TECHNOLOGIES 
Subtitle A—Alternative Fuels 
Sec. 301. Repeal. 
Sec. 302. Government auction of long term put option contracts on coal-to-liq-
uid fuel produced by qualified coal-to-liquid facilities. 
Sec. 303. Standby loans for qualifying coal-to-liquids projects. 
Subtitle B—Tax Provisions 
Sec. 311. Extension of renewable electricity, refined coal, and Indian coal pro-
duction credit. 
Sec. 312. Extension of energy credit. 
Sec. 313. Extension and modification of credit for clean renewable energy 
bonds. 
Sec. 314. Extension of credits for biodiesel and renewable diesel. 
Subtitle C—Nuclear 
Sec. 321. Use of funds for recycling. 
Sec. 322. Rulemaking for licensing of spent nuclear fuel recycling facilities. 
Sec. 323. Nuclear waste fund budget status. 
Sec. 324. Waste Confidence. 
Sec. 325. ASME Nuclear Certification credit. 
Subtitle D—American Renewable and Alternative Energy Trust Fund 
Sec. 331. American Renewable and Alternative Energy Trust Fund. 
TITLE I—AMERICAN ENERGY 
Subtitle A—OCS 
SEC. 101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Deep Ocean En-
ergy Resources Act of 2008’’. 
SEC. 102. POLICY. 
It is the policy of the United States that— 
(1) the United States is blessed with abundant 
energy resources on the outer Continental Shelf and 
has developed a comprehensive framework of envi-
ronmental laws and regulations and fostered the de-
velopment of state-of-the-art technology that allows 
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for the responsible development of these resources 
for the benefit of its citizenry; 
(2) Adjacent States are required by the cir-
cumstances to commit significant resources in sup-
port of exploration, development, and production ac-
tivities for mineral resources on the outer Conti-
nental Shelf, and it is fair and proper for a portion 
of the receipts from such activities to be shared with 
Adjacent States and their local coastal governments; 
(3) the existing laws governing the leasing and 
production of the mineral resources of the outer 
Continental Shelf have reduced the production of 
mineral resources, have preempted Adjacent States 
from being sufficiently involved in the decisions re-
garding the allowance of mineral resource develop-
ment, and have been harmful to the national inter-
est; 
(4) the national interest is served by granting 
the Adjacent States more options related to whether 
or not mineral leasing should occur in the outer 
Continental Shelf within their Adjacent Zones; 
(5) it is not reasonably foreseeable that explo-
ration of a leased tract located more than 25 miles 
seaward of the coastline, development and produc-
tion of a natural gas discovery located more than 25 
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miles seaward of the coastline, or development and 
production of an oil discovery located more than 50 
miles seaward of the coastline will adversely affect 
resources near the coastline; 
(6) transportation of oil from a leased tract 
might reasonably be foreseen, under limited cir-
cumstances, to have the potential to adversely affect 
resources near the coastline if the oil is within 50 
miles of the coastline, but such potential to adversely 
affect such resources is likely no greater, and prob-
ably less, than the potential impacts from tanker 
transportation because tanker spills usually involve 
large releases of oil over a brief period of time; and 
(7) among other bodies of inland waters, the 
Great Lakes, Long Island Sound, Delaware Bay, 
Chesapeake Bay, Albemarle Sound, San Francisco 
Bay, and Puget Sound are not part of the outer 
Continental Shelf, and are not subject to leasing by 
the Federal Government for the exploration, develop-
ment, and production of any mineral resources that 
might lie beneath them. 
SEC. 103. DEFINITIONS UNDER THE SUBMERGED LANDS 
ACT. 
Section 2 of the Submerged Lands Act (43 U.S.C. 
1301) is amended— 
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(1) in subparagraph (2) of paragraph (a) by 
striking all after ‘‘seaward to a line’’ and inserting 
‘‘twelve nautical miles distant from the coast line of 
such State;’’; 
(2) by striking out paragraph (b) and redesig-
nating the subsequent paragraphs in order as para-
graphs (b) through (g); 
(3) by striking the period at the end of para-
graph (g) (as so redesignated) and inserting ‘‘; 
and’’; 
(4) by adding the following: ‘‘(i) The term ‘Sec-
retary’ means the Secretary of the Interior.’’; and 
(5) by defining ‘‘State’’ as it is defined in sec-
tion 2(r) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331(r)). 
SEC. 104. SEAWARD BOUNDARIES OF STATES. 
Section 4 of the Submerged Lands Act (43 U.S.C. 
1312) is amended— 
(1) in the first sentence by striking ‘‘original’’, 
and in the same sentence by striking ‘‘three geo-
graphical’’ and inserting ‘‘twelve nautical’’; and 
(2) by striking all after the first sentence and 
inserting the following: ‘‘Extension and delineation 
of lateral offshore State boundaries under the provi-
sions of this Act shall follow the lines used to deter-
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mine the Adjacent Zones of coastal States under the 
Outer Continental Shelf Lands Act to the extent 
such lines extend twelve nautical miles for the near-
est coastline.’’ 
SEC. 105. EXCEPTIONS FROM CONFIRMATION AND ESTAB-
LISHMENT OF STATES’ TITLE, POWER, AND 
RIGHTS. 
Section 5 of the Submerged Lands Act (43 U.S.C. 
1313) is amended— 
(1) by redesignating paragraphs (a) through (c) 
in order as paragraphs (1) through (3); 
(2) by inserting ‘‘(a)’’ before ‘‘There is ex-
cepted’’; and 
(3) by inserting at the end the following: 
‘‘(b) EXCEPTION
OF
OIL
AND
GAS
MINERAL 
RIGHTS.—There is excepted from the operation of sections 
3 and 4 all of the oil and gas mineral rights for lands 
beneath the navigable waters that are located within the 
expanded offshore State seaward boundaries established 
under this Act. These oil and gas mineral rights shall re-
main Federal property and shall be considered to be part 
of the Federal outer Continental Shelf for purposes of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.) and subject to leasing under the authority of that 
Act and to laws applicable to the leasing of the oil and 
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gas resources of the Federal outer Continental Shelf. All 
existing Federal oil and gas leases within the expanded 
offshore State seaward boundaries shall continue un-
changed by the provisions of this Act, except as otherwise 
provided herein. However, a State may exercise all of its 
sovereign powers of taxation within the entire extent of 
its expanded offshore State boundaries.’’. 
SEC. 106. DEFINITIONS UNDER THE OUTER CONTINENTAL 
SHELF LANDS ACT. 
Section 2 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331) is amended— 
(1) by amending paragraph (f) to read as fol-
lows: 
‘‘(f) The term ‘affected State’ means the ‘Adjacent 
State’.’’; 
(2) by striking the semicolon at the end of each 
of paragraphs (a) through (o) and inserting a pe-
riod; 
(3) by striking ‘‘; and’’ at the end of paragraph 
(p) and inserting a period; 
(4) by adding at the end the following: 
‘‘(r) The term ‘Adjacent State’ means, with respect 
to any program, plan, lease sale, leased tract or other ac-
tivity, proposed, conducted, or approved pursuant to the 
provisions of this Act, any State the laws of which are 
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States exclusive economic zone adjacent to the Terri-
tories of the United States’’. 
SEC. 107. DETERMINATION OF ADJACENT ZONES AND 
PLANNING AREAS. 
Section 4(a)(2)(A) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the 
first sentence by striking ‘‘, and the President’’ and all 
that follows through the end of the sentence and inserting 
the following: ‘‘. The lines extending seaward and defining 
each State’s Adjacent Zone, and each OCS Planning Area, 
are as indicated on the maps for each outer Continental 
Shelf region entitled ‘Alaska OCS Region State Adjacent 
Zone and OCS Planning Areas’, ‘Pacific OCS Region 
State Adjacent Zones and OCS Planning Areas’, ‘Gulf of 
Mexico OCS Region State Adjacent Zones and OCS Plan-
ning Areas’, and ‘Atlantic OCS Region State Adjacent 
Zones and OCS Planning Areas’, all of which are dated 
September 2005 and on file in the Office of the Director, 
Minerals Management Service.’’. 
SEC. 108. ADMINISTRATION OF LEASING. 
Section 5 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1334) is amended by adding at the end the 
following: 
‘‘(k) VOLUNTARY PARTIAL RELINQUISHMENT OF A 
LEASE.—Any lessee of a producing lease may relinquish 
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to the Secretary any portion of a lease that the lessee has 
no interest in producing and that the Secretary finds is 
geologically prospective. In return for any such relinquish-
ment, the Secretary shall provide to the lessee a royalty 
incentive for the portion of the lease retained by the lessee, 
in accordance with regulations promulgated by the Sec-
retary to carry out this subsection. The Secretary shall 
publish final regulations implementing this subsection 
within 365 days after the date of the enactment of the 
Deep Ocean Energy Resources Act of 2008. 
‘‘(l) NATURAL GAS LEASE REGULATIONS.—Not later 
than July 1, 2010, the Secretary shall publish a final regu-
lation that shall— 
‘‘(1) establish procedures for entering into nat-
ural gas leases; 
‘‘(2) ensure that natural gas leases are only 
available for tracts on the outer Continental Shelf 
that are wholly within 100 miles of the coastline 
within an area withdrawn from disposition by leas-
ing on the day after the date of enactment of the 
Deep Ocean Energy Resources Act of 2008; 
‘‘(3) provide that natural gas leases shall con-
tain the same rights and obligations established for 
oil and gas leases, except as otherwise provided in 
the Deep Ocean Energy Resources Act of 2008; 
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‘‘(4) provide that, in reviewing the adequacy of 
bids for natural gas leases, the value of any crude 
oil estimated to be contained within any tract shall 
be excluded; 
‘‘(5) provide that any crude oil produced from 
a well and reinjected into the leased tract shall not 
be subject to payment of royalty, and that the Sec-
retary shall consider, in setting the royalty rates for 
a natural gas lease, the additional cost to the lessee 
of not producing any crude oil; and 
‘‘(6) provide that any Federal law that applies 
to an oil and gas lease on the outer Continental 
Shelf shall apply to a natural gas lease unless other-
wise clearly inapplicable.’’. 
SEC. 109. GRANT OF LEASES BY SECRETARY. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is amended— 
(1) in subsection (a)(1) by inserting after the 
first sentence the following: ‘‘Further, the Secretary 
may grant natural gas leases in a manner similar to 
the granting of oil and gas leases and under the var-
ious bidding systems available for oil and gas 
leases.’’; 
(2) by adding at the end of subsection (b) the 
following: 
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‘‘The Secretary may issue more than one lease for 
a given tract if each lease applies to a separate and dis-
tinct range of vertical depths, horizontal surface area, or 
a combination of the two. The Secretary may issue regula-
tions that the Secretary determines are necessary to man-
age such leases consistent with the purposes of this Act.’’; 
(3) by amending subsection (p)(2)(B) to read 
as follows: 
‘‘(B) The Secretary shall provide for the 
payment to coastal States, and their local coast-
al governments, of 75 percent of Federal re-
ceipts from projects authorized under this sec-
tion located partially or completely within the 
area extending seaward of State submerged 
lands out to 4 marine leagues from the coast-
line, and the payment to coastal States of 50 
percent of the receipts from projects completely 
located in the area more than 4 marine leagues 
from the coastline. Payments shall be based on 
a formula established by the Secretary by rule-
making no later than 180 days after the date 
of the enactment of the Deep Ocean Energy 
Resources Act of 2008 that provides for equi-
table distribution, based on proximity to the 
project, among coastal States that have coast-
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line that is located within 200 miles of the geo-
graphic center of the project.’’. 
(4) by adding at the end the following: 
‘‘(q) NATURAL GAS LEASES.— 
‘‘(1) RIGHT
TO
PRODUCE
NATURAL
GAS.—A 
lessee of a natural gas lease shall have the right to 
produce the natural gas from a field on a natural 
gas leased tract if the Secretary estimates that the 
discovered field has at least 40 percent of the eco-
nomically recoverable Btu content of the field con-
tained within natural gas and such natural gas is ec-
onomical to produce. 
‘‘(2) CRUDE OIL.—A lessee of a natural gas 
lease may not produce crude oil from the lease un-
less the Governor of the Adjacent State agrees to 
such production. 
‘‘(3) ESTIMATES OF BTU CONTENT.—The Sec-
retary shall make estimates of the natural gas Btu 
content of discovered fields on a natural gas lease 
only after the completion of at least one exploration 
well, the data from which has been tied to the re-
sults of a three-dimensional seismic survey of the 
field. The Secretary may not require the lessee to 
further delineate any discovered field prior to mak-
ing such estimates. 
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‘‘(4) DEFINITION OF NATURAL GAS.—For pur-
poses of a natural gas lease, natural gas means nat-
ural gas and all substances produced in association 
with gas, including, but not limited to, hydrocarbon 
liquids (other than crude oil) that are obtained by 
the condensation of hydrocarbon vapors and sepa-
rate out in liquid form from the produced gas 
stream. 
‘‘(r) REMOVAL OF RESTRICTIONS ON JOINT BIDDING 
IN
CERTAIN
AREAS
OF
THE
OUTER
CONTINENTAL 
SHELF.—Restrictions on joint bidders shall no longer 
apply to tracts located in the Alaska OCS Region. Such 
restrictions shall not apply to tracts in other OCS regions 
determined to be ‘frontier tracts’ or otherwise ‘high cost 
tracts’ under final regulations that shall be published by 
the Secretary by not later than 365 days after the date 
of the enactment of the Deep Ocean Energy Resources 
Act of 2008. 
‘‘(s) ROYALTY SUSPENSION PROVISIONS.—After the 
date of the enactment of the Deep Ocean Energy Re-
sources Act of 2008, price thresholds shall apply to any 
royalty suspension volumes granted by the Secretary. Un-
less otherwise set by Secretary by regulation or for a par-
ticular lease sale, the price thresholds shall be $40.50 for 
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oil (January 1, 2006 dollars) and $6.75 for natural gas 
(January 1, 2006 dollars). 
‘‘(t) CONSERVATION
OF RESOURCES FEES.—Not 
later than one year after the date of the enactment of the 
Deep Ocean Energy Resources Act of 2008, the Secretary 
by regulation shall establish a conservation of resources 
fee for nonproducing leases that will apply to new and ex-
isting leases which shall be set at $3.75 per acre per year. 
This fee shall apply from and after October 1, 2008, and 
shall be treated as offsetting receipts.’’; 
(5) by striking subsection (a)(3)(A) and redes-
ignating the subsequent subparagraphs as subpara-
graphs (A) and (B), respectively; 
(6) in subsection (a)(3)(A) (as so redesignated) 
by striking ‘‘In the Western’’ and all that follows 
through ‘‘the Secretary’’ the first place it appears 
and inserting ‘‘The Secretary’’; and 
(7) effective October 1, 2008, in subsection 
(g)— 
(A) by striking all after ‘‘(g)’’, except para-
graph (3); 
(B) by striking the last sentence of para-
graph (3); and 
(C) by striking ‘‘(3)’’. 
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SEC. 110. DISPOSITION OF RECEIPTS. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended— 
(1) by designating the existing text as sub-
section (a); 
(2) in subsection (a) (as so designated) by in-
serting ‘‘, if not paid as otherwise provided in this 
title’’ after ‘‘receipts’’; and 
(3) by adding the following: 
‘‘(b) TREATMENT OF OCS RECEIPTS FROM TRACTS 
COMPLETELY WITHIN 100 MILES OF THE COASTLINE.— 
‘‘(1) DEPOSIT.—The Secretary shall deposit 
into a separate account in the Treasury the portion 
of OCS Receipts for each fiscal year that will be 
shared under paragraphs (2), (3), and (4). 
‘‘(2) PHASED-IN RECEIPTS SHARING.— 
‘‘(A) Beginning October 1, 2008, the Sec-
retary shall share OCS Receipts derived from 
the following areas: 
‘‘(i) Lease tracts located on portions 
of the Gulf of Mexico OCS Region com-
pletely beyond 4 marine leagues from any 
coastline and completely within 100 miles 
of any coastline that were available for 
leasing under the 2002–2007 5-Year OCS 
Oil and Gas Leasing Program. 
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‘‘(ii) Lease tracts in production prior 
to October 1, 2008, completely beyond 4 
marine leagues from any coastline and 
completely within 100 miles of any coast-
line located on portions of the OCS that 
were not available for leasing under the 
2002–2007 5-Year OCS Oil and Gas Leas-
ing Program. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2008, located in 
the Alaska OCS Region completely beyond 
4 marine leagues from any coastline and 
completely within 100 miles of the coast-
line. 
‘‘(B) The Secretary shall share the fol-
lowing percentages of OCS Receipts from the 
leases described in subparagraph (A) derived 
during the fiscal year indicated: 
‘‘(i) For fiscal year 2009, 5 percent. 
‘‘(ii) For fiscal year 2010, 8 percent. 
‘‘(iii) For fiscal year 2011, 11 per-
cent. 
‘‘(iv) For fiscal year 2012, 14 percent. 
‘‘(v) For fiscal year 2013, 17 percent. 
‘‘(vi) For fiscal year 2014, 20 percent. 
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‘‘(vii) For fiscal year 2015, 23 per-
cent. 
‘‘(viii) For fiscal year 2016, 26 per-
cent. 
‘‘(ix) For fiscal year 2017, 29 percent. 
‘‘(x) For fiscal year 2018, 32 percent. 
‘‘(xi) For fiscal year 2019, 35 percent. 
‘‘(xii) For fiscal year 2020 and each 
subsequent fiscal year, 37.5 percent. 
‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
6(2) of the Deep Ocean Energy Resources Act 
of 2008. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2008, the Secretary shall share 
37.50 percent of OCS Receipts derived from all 
leases located completely beyond 4 marine leagues 
from any coastline and completely within 100 miles 
of any coastline not included within the provisions of 
paragraph (2), and 90 percent of the balance of 
such OCS Receipts shall be deposited into the Amer-
ican Renewable and Alternative Energy Trust Fund 
established by section 331 of the American Energy 
Act. 
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‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN 
4 MARINE LEAGUES OF ANY COASTLINE.— 
‘‘(A) AREAS
DESCRIBED
IN
PARAGRAPH 
(2).—Beginning October 1, 2008, and con-
tinuing through September 30, 2010, the Sec-
retary shall share 25 percent of OCS Receipts 
derived from all leases located within 4 marine 
leagues from any coastline within areas de-
scribed in paragraph (2). For each fiscal year 
after September 30, 2010, the Secretary shall 
increase the percent shared in 5 percent incre-
ments each fiscal year until the sharing rate for 
all leases located within 4 marine leagues from 
any coastline within areas described in para-
graph (2) becomes 75 percent. 
‘‘(B) AREAS
NOT
DESCRIBED
IN
PARA-
GRAPH (2).—Beginning October 1, 2008, the 
Secretary shall share 75 percent of OCS re-
ceipts derived from all leases located completely 
or partially within 4 marine leagues from any 
coastline within areas not described paragraph 
(2). 
‘‘(5) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
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account established by paragraph (1) that are 
shared under paragraphs (2), (3), and (4) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each 
fiscal year to the Adjacent State and any other 
producing State or States with a leased tract 
within its Adjacent Zone within 100 miles of its 
coastline that generated royalties during the fis-
cal year, if the other producing or States have 
a coastline point within 300 miles of any por-
tion of the leased tract, in which case the 
amount allocated for the leased tract shall be— 
‘‘(i) one-third to the Adjacent State; 
and 
‘‘(ii) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline of 
the producing State and the geographic 
center of the leased tract. 
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‘‘(c) TREATMENT OF OCS RECEIPTS FROM TRACTS 
PARTIALLY OR COMPLETELY BEYOND 100 MILES OF THE 
COASTLINE.— 
‘‘(1) DEPOSIT.—The Secretary shall deposit 
into a separate account in the Treasury the portion 
of OCS Receipts for each fiscal year that will be 
shared under paragraphs (2) and (3). 
‘‘(2) PHASED-IN RECEIPTS SHARING.— 
‘‘(A) Beginning October 1, 2008, the Sec-
retary shall share OCS Receipts derived from 
the following areas: 
‘‘(i) Lease tracts located on portions 
of the Gulf of Mexico OCS Region partially 
or completely beyond 100 miles of any 
coastline that were available for leasing 
under the 2002–2007 5-Year OCS Oil and 
Gas Leasing Program. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2008, partially or completely 
beyond 100 miles of any coastline located 
on portions of the OCS that were not 
available for leasing under the 2002–2007 
5-Year OCS Oil and Gas Leasing Pro-
gram. 
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‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
106(2) of the Deep Ocean Energy Resources 
Act of 2008. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2008, the Secretary shall share 37.5 
percent of OCS Receipts derived on and after Octo-
ber 1, 2008, from all leases located partially or com-
pletely beyond 100 miles of any coastline not in-
cluded within the provisions of paragraph (2), except 
that the Secretary shall only share 25 percent of 
such OCS Receipts derived from all such leases 
within a State’s Adjacent Zone if no leasing is al-
lowed within any portion of that State’s Adjacent 
Zone located completely within 100 miles of any 
coastline. 
‘‘(4) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
account established by paragraph (1) that are 
shared under paragraphs (2) and (3) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
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‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each 
fiscal year to the Adjacent State and any other 
producing State or States with a leased tract 
within its Adjacent Zone partially or completely 
beyond 100 miles of its coastline that generated 
royalties during the fiscal year, if the other pro-
ducing State or States have a coastline point 
within 300 miles of any portion of the leased 
tract, in which case the amount allocated for 
the leased tract shall be— 
‘‘(i) one-third to the Adjacent State; 
and 
‘‘(ii) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline of 
the producing State and the geographic 
center of the leased tract. 
‘‘(d) TRANSMISSION OF ALLOCATIONS.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the end of each fiscal year, the Secretary shall 
transmit— 
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‘‘(A) to each State 60 percent of such 
State’s allocations under subsections (b)(5)(A), 
(b)(5)(B), (c)(4)(A), and (c)(4)(B) for the im-
mediate prior fiscal year; 
‘‘(B) to each coastal county-equivalent and 
municipal political subdivisions of such State a 
total of 40 percent of such State’s allocations 
under 
subsections 
(b)(5)(A), 
(b)(5)(B), 
(c)(4)(A), and (c)(4)(B), together with all ac-
crued interest thereon; and 
‘‘(C) the remaining allocations under sub-
sections (b)(5) and (c)(4), together with all ac-
crued interest thereon. 
‘‘(2) ALLOCATIONS
TO
COASTAL
COUNTY- 
EQUIVALENT
POLITICAL
SUBDIVISIONS.—The Sec-
retary shall make an initial allocation of the OCS 
Receipts to be shared under paragraph (1)(B) as fol-
lows: 
‘‘(A) 25 percent shall be allocated to coast-
al county-equivalent political subdivisions that 
are completely more than 25 miles landward of 
the coastline and at least a part of which lies 
not more than 75 miles landward from the 
coastline, with the allocation among such coast-
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al county-equivalent political subdivisions based 
on population. 
‘‘(B) 75 percent shall be allocated to coast-
al county-equivalent political subdivisions that 
are completely or partially less than 25 miles 
landward of the coastline, with the allocation 
among such coastal county-equivalent political 
subdivisions to be further allocated as follows: 
‘‘(i) 25 percent shall be allocated 
based on the ratio of such coastal county- 
equivalent political subdivision’s population 
to the coastal population of all coastal 
county-equivalent political subdivisions in 
the State. 
‘‘(ii) 25 percent shall be allocated 
based on the ratio of such coastal county- 
equivalent political subdivision’s coastline 
miles to the coastline miles of all coastal 
county-equivalent political subdivisions in 
the State as calculated by the Secretary. 
In such calculations, coastal county-equiva-
lent political subdivisions without a coast-
line shall be considered to have 50 percent 
of the average coastline miles of the coast-
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al county-equivalent political subdivisions 
that do have coastlines. 
‘‘(iii) 25 percent shall be allocated to 
all coastal county-equivalent political sub-
divisions having a coastline point within 
300 miles of the leased tract for which 
OCS Receipts are being shared based on a 
formula that allocates the funds based on 
such coastal county-equivalent political 
subdivision’s relative distance from the 
leased tract. 
‘‘(iv) 25 percent shall be allocated to 
all coastal county-equivalent political sub-
divisions having a coastline point within 
300 miles of the leased tract for which 
OCS Receipts are being shared based on 
the relative level of outer Continental Shelf 
oil and gas activities in a coastal political 
subdivision compared to the level of outer 
Continental Shelf activities in all coastal 
political subdivisions in the State. The Sec-
retary shall define the term ‘outer Conti-
nental Shelf oil and gas activities’ for pur-
poses of this subparagraph to include, but 
not be limited to, construction of vessels, 
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drillships, and platforms involved in explo-
ration, production, and development on the 
outer Continental Shelf; support and sup-
ply bases, ports, and related activities; of-
fices of geologists, geophysicists, engineers, 
and other professionals involved in support 
of exploration, production, and develop-
ment of oil and gas on the outer Conti-
nental Shelf; pipelines and other means of 
transporting oil and gas production from 
the outer Continental Shelf; and processing 
and refining of oil and gas production from 
the outer Continental Shelf. For purposes 
of this subparagraph, if a coastal county- 
equivalent political subdivision does not 
have a coastline, its coastal point shall be 
the point on the coastline closest to it. 
‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO-
LITICAL
SUBDIVISIONS.—The initial allocation to 
each coastal county-equivalent political subdivision 
under paragraph (2) shall be further allocated to the 
coastal county-equivalent political subdivision and 
any coastal municipal political subdivisions located 
partially or wholly within the boundaries of the 
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coastal county-equivalent political subdivision as fol-
lows: 
‘‘(A) One-third shall be allocated to the 
coastal county-equivalent political subdivision. 
‘‘(B) Two-thirds shall be allocated on a per 
capita basis to the municipal political subdivi-
sions and the county-equivalent political sub-
division, with the allocation to the latter based 
upon its population not included within the 
boundaries of a municipal political subdivision. 
‘‘(e) INVESTMENT OF DEPOSITS.—Amounts depos-
ited under this section shall be invested by the Secretary 
of the Treasury in securities backed by the full faith and 
credit of the United States having maturities suitable to 
the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as 
determined by the Secretary of the Treasury. 
‘‘(f) USE OF FUNDS.—A recipient of funds under this 
section may use the funds for one or more of the following: 
‘‘(1) To reduce in-State college tuition at public 
institutions of higher learning and otherwise support 
public education, including career technical edu-
cation. 
‘‘(2) To make transportation infrastructure im-
provements. 
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‘‘(3) To reduce taxes. 
‘‘(4) To promote, fund, and provide for— 
‘‘(A) coastal or environmental restoration; 
‘‘(B) fish, wildlife, and marine life habitat 
enhancement; 
‘‘(C) waterways construction and mainte-
nance; 
‘‘(D) levee construction and maintenance 
and shore protection; and 
‘‘(E) marine and oceanographic education 
and research. 
‘‘(5) To promote, fund, and provide for— 
‘‘(A) infrastructure associated with energy 
production activities conducted on the outer 
Continental Shelf; 
‘‘(B) energy demonstration projects; 
‘‘(C) supporting infrastructure for shore- 
based energy projects; 
‘‘(D) State geologic programs, including 
geologic mapping and data storage programs, 
and State geophysical data acquisition; 
‘‘(E) State seismic monitoring programs, 
including operation of monitoring stations; 
‘‘(F) development of oil and gas resources 
through enhanced recovery techniques; 
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‘‘(G) alternative energy development, in-
cluding bio fuels, coal-to-liquids, oil shale, tar 
sands, geothermal, geopressure, wind, waves, 
currents, hydro, and other renewable energy; 
‘‘(H) energy efficiency and conservation 
programs; and 
‘‘(I) front-end engineering and design for 
facilities that produce liquid fuels from hydro-
carbons and other biological matter. 
‘‘(6) To promote, fund, and provide for— 
‘‘(A) historic preservation programs and 
projects; 
‘‘(B) natural disaster planning and re-
sponse; and 
‘‘(C) hurricane and natural disaster insur-
ance programs. 
‘‘(7) For any other purpose as determined by 
State law. 
‘‘(g) NO ACCOUNTING REQUIRED.—No recipient of 
funds under this section shall be required to account to 
the Federal Government for the expenditure of such 
funds, except as otherwise may be required by law. How-
ever, States may enact legislation providing for accounting 
for and auditing of such expenditures. Further, funds allo-
cated under this section to States and political subdivi-
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sions may be used as matching funds for other Federal 
programs. 
‘‘(h) EFFECT OF FUTURE LAWS.—Enactment of any 
future Federal statute that has the effect, as determined 
by the Secretary, of restricting any Federal agency from 
spending appropriated funds, or otherwise preventing it 
from fulfilling its pre-existing responsibilities as of the 
date of enactment of the statute, unless such responsibil-
ities have been reassigned to another Federal agency by 
the statute with no prevention of performance, to issue 
any permit or other approval impacting on the OCS oil 
and gas leasing program, or any lease issued thereunder, 
or to implement any provision of this Act shall automati-
cally prohibit any sharing of OCS Receipts under this sec-
tion directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Sec-
retary shall make the determination of the existence of 
such restricting effects within 30 days of a petition by any 
outer Continental Shelf lessee or producing State. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL 
SUBDIVISION.—The term ‘coastal county-equivalent 
political subdivision’ means a political jurisdiction 
immediately below the level of State government, in-
cluding a county, parish, borough in Alaska, inde-
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pendent municipality not part of a county, parish, or 
borough in Alaska, or other equivalent subdivision of 
a coastal State, that lies within the coastal zone. 
‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI-
SION.—The term ‘coastal municipal political subdivi-
sion’ means a municipality located within and part 
of a county, parish, borough in Alaska, or other 
equivalent subdivision of a State, all or part of which 
coastal municipal political subdivision lies within the 
coastal zone. 
‘‘(3) COASTAL POPULATION.—The term ‘coastal 
population’ means the population of all coastal coun-
ty-equivalent political subdivisions, as determined by 
the most recent official data of the Census Bureau. 
‘‘(4) COASTAL ZONE.—The term ‘coastal zone’ 
means that portion of a coastal State, including the 
entire territory of any coastal county-equivalent po-
litical subdivision at least a part of which lies, within 
75 miles landward from the coastline, or a greater 
distance as determined by State law enacted to im-
plement this section. 
‘‘(5) BONUS
BIDS.—The term ‘bonus bids’ 
means all funds received by the Secretary to issue 
an outer Continental Shelf minerals lease. 
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‘‘(6) ROYALTIES.—The term ‘royalties’ means 
all funds received by the Secretary from production 
of oil or natural gas, or the sale of production taken 
in-kind, from an outer Continental Shelf minerals 
lease. 
‘‘(7) PRODUCING STATE.—The term ‘producing 
State’ means an Adjacent State having an Adjacent 
Zone containing leased tracts from which OCS Re-
ceipts were derived. 
‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 
means bonus bids, royalties, and conservation of re-
sources fees.’’. 
SEC. 111. RESERVATION OF LANDS AND RIGHTS. 
Section 12 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1341) is amended— 
(1) in subsection (a) by adding at the end the 
following: ‘‘The President may partially or com-
pletely revise or revoke any prior withdrawal made 
by the President under the authority of this section. 
The President may not revise or revoke a withdrawal 
that is extended by a State under subsection (h), nor 
may the President withdraw from leasing any area 
for which a State failed to prohibit, or petition to 
prohibit, leasing under subsection (g). Further, in 
the area of the outer Continental Shelf more than 
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100 miles from any coastline, not more than 25 per-
cent of the acreage of any OCS Planning Area may 
be withdrawn from leasing under this section at any 
point in time. A withdrawal by the President may be 
for a term not to exceed 10 years. When considering 
potential uses of the outer Continental Shelf, to the 
maximum extent possible, the President shall accom-
modate competing interests and potential uses.’’; 
(2) by adding at the end the following: 
‘‘(g) AVAILABILITY FOR LEASING WITHIN CERTAIN 
AREAS OF THE OUTER CONTINENTAL SHELF.— 
‘‘(1) PROHIBITION AGAINST LEASING.— 
‘‘(A) UNAVAILABLE
FOR
LEASING
WITH-
OUT
STATE
REQUEST.—Except as otherwise 
provided in this subsection, from and after en-
actment of the Deep Ocean Energy Resources 
Act of 2008, the Secretary shall not offer for 
leasing for oil and gas, or natural gas, any area 
within 50 miles of the coastline that was with-
drawn from disposition by leasing in the Atlan-
tic OCS Region or the Pacific OCS Region, or 
the Gulf of Mexico OCS Region Eastern Plan-
ning Area, as depicted on the maps referred to 
in this subparagraph, under the ‘Memorandum 
on Withdrawal of Certain Areas of the United 
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States Outer Continental Shelf from Leasing 
Disposition’, 34 Weekly Comp. Pres. Doc. 
1111, dated June 12, 1998, or any area within 
50 miles of the coastline not withdrawn under 
that Memorandum that is included within the 
Gulf of Mexico OCS Region Eastern Planning 
Area as indicated on the map entitled ‘Gulf of 
Mexico OCS Region State Adjacent Zones and 
OCS Planning Areas’ or the Florida Straits 
Planning Area as indicated on the map entitled 
‘Atlantic OCS Region State Adjacent Zones and 
OCS Planning Areas’, both of which are dated 
September 2005 and on file in the Office of the 
Director, Minerals Management Service. 
‘‘(B) AREAS BETWEEN 50 AND 100 MILES 
FROM
THE
COASTLINE.—Unless an Adjacent 
State petitions under subsection (h) within one 
year after the date of the enactment of the 
Deep Ocean Energy Resources Act of 2008 for 
natural gas leasing or by June 30, 2010, for oil 
and gas leasing, the Secretary shall offer for 
leasing any area more than 50 miles but less 
than 100 miles from the coastline that was 
withdrawn from disposition by leasing in the 
Atlantic OCS Region, the Pacific OCS Region, 
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or the Gulf of Mexico OCS Region Eastern 
Planning Area, as depicted on the maps re-
ferred to in this subparagraph, under the 
‘Memorandum on Withdrawal of Certain Areas 
of the United States Outer Continental Shelf 
from Leasing Disposition’, 34 Weekly Comp. 
Pres. Doc. 1111, dated June 12, 1998, or any 
area more than 50 miles but less than 100 
miles of the coastline not withdrawn under that 
Memorandum that is included within the Gulf 
of Mexico OCS Region Eastern Planning Area 
as indicated on the map entitled ‘Gulf of Mexico 
OCS Region State Adjacent Zones and OCS 
Planning Areas’ or within the Florida Straits 
Planning Area as indicated on the map entitled 
‘Atlantic OCS Region State Adjacent Zones and 
OCS Planning Areas’, both of which are dated 
September 2005 and on file in the Office of the 
Director, Minerals Management Service. 
‘‘(2) PETITION FOR LEASING.— 
‘‘(A) IN GENERAL.—The Governor of the 
State, upon concurrence of its legislature, may 
submit to the Secretary a petition requesting 
that the Secretary make available any area that 
is within the State’s Adjacent Zone, included 
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within the provisions of paragraph (1), and that 
(i) is greater than 25 miles from any point on 
the coastline of a Neighboring State for the 
conduct of offshore leasing, pre-leasing, and re-
lated activities with respect to natural gas leas-
ing; or (ii) is greater than 50 miles from any 
point on the coastline of a Neighboring State 
for the conduct of offshore leasing, pre-leasing, 
and related activities with respect to oil and gas 
leasing. The Adjacent State may also petition 
for leasing any other area within its Adjacent 
Zone if leasing is allowed in the similar area of 
the Adjacent Zone of the applicable Neigh-
boring State, or if not allowed, if the Neigh-
boring State, acting through its Governor, ex-
presses its concurrence with the petition. The 
Secretary shall only consider such a petition 
upon making a finding that leasing is allowed 
in the similar area of the Adjacent Zone of the 
applicable Neighboring State or upon receipt of 
the concurrence of the Neighboring State. The 
date of receipt by the Secretary of such concur-
rence by the Neighboring State shall constitute 
the date of receipt of the petition for that area 
for which the concurrence applies. 
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‘‘(B) LIMITATIONS
ON
LEASING.—In its 
petition, a State with an Adjacent Zone that 
contains leased tracts may condition new leas-
ing for oil and gas, or natural gas for tracts 
within 25 miles of the coastline by— 
‘‘(i) requiring a net reduction in the 
number of production platforms; 
‘‘(ii) requiring a net increase in the 
average distance of production platforms 
from the coastline; 
‘‘(iii) limiting permanent surface occu-
pancy on new leases to areas that are more 
than 10 miles from the coastline; 
‘‘(iv) limiting some tracts to being 
produced from shore or from platforms lo-
cated on other tracts; or 
‘‘(v) other conditions that the Adja-
cent State may deem appropriate as long 
as the Secretary does not determine that 
production is made economically or tech-
nically impracticable or otherwise impos-
sible. 
‘‘(C) ACTION BY SECRETARY.—Not later 
than 90 days after receipt of a petition under 
subparagraph (A), the Secretary shall approve 
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the petition, unless the Secretary determines 
that leasing the area would probably cause seri-
ous harm or damage to the marine resources of 
the State’s Adjacent Zone. Prior to approving 
the petition, the Secretary shall complete an en-
vironmental assessment that documents the an-
ticipated environmental effects of leasing in the 
area included within the scope of the petition. 
‘‘(D) FAILURE TO ACT.—If the Secretary 
fails to approve or deny a petition in accordance 
with subparagraph (C) the petition shall be con-
sidered to be approved 90 days after receipt of 
the petition. 
‘‘(E) AMENDMENT OF THE 5-YEAR LEAS-
ING
PROGRAM.—Notwithstanding section 18, 
within 180 days of the approval of a petition 
under subparagraph (C) or (D), after the expi-
ration of the time limits in paragraph (1)(B), 
the Secretary shall amend the current 5-Year 
Outer Continental Shelf Oil and Gas Leasing 
Program to include a lease sale or sales for at 
least 75 percent of the associated areas, unless 
there are, from the date of approval, expiration 
of such time limits, as applicable, fewer than 12 
months remaining in the current 5-Year Leas-
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ing Program in which case the Secretary shall 
include the associated areas within lease sales 
under the next 5-Year Leasing Program. For 
purposes of amending the 5-Year Program in 
accordance with this section, further consulta-
tions with States shall not be required. For 
purposes of this section, an environmental as-
sessment performed under the provisions of the 
National Environmental Policy Act of 1969 to 
assess the effects of approving the petition shall 
be sufficient to amend the 5-Year Leasing Pro-
gram. 
‘‘(h) OPTION
TO
EXTEND
WITHDRAWAL
FROM 
LEASING WITHIN CERTAIN AREAS OF THE OUTER CON-
TINENTAL SHELF.—A State, through its Governor and 
upon the concurrence of its legislature, may extend for a 
period of time of up to 5 years for each extension the with-
drawal from leasing for all or part of any area within the 
State’s Adjacent Zone located more than 50 miles, but less 
than 100 miles, from the coastline that is subject to sub-
section (g)(1)(B). A State may extend multiple times for 
any particular area but not more than once per calendar 
year for any particular area. A State must prepare sepa-
rate extensions, with separate votes by its legislature, for 
oil and gas leasing and for natural gas leasing. An exten-
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sion by a State may affect some areas to be withdrawn 
from all leasing and some areas to be withdrawn only from 
one type of leasing. 
‘‘(i) EFFECT OF OTHER LAWS.—Adoption by any 
Adjacent State of any constitutional provision, or enact-
ment of any State statute, that has the effect, as deter-
mined by the Secretary, of restricting either the Governor 
or the Legislature, or both, from exercising full discretion 
related to subsection (g) or (h), or both, shall automati-
cally (1) prohibit any sharing of OCS Receipts under this 
Act with the Adjacent State, and its coastal political sub-
divisions, and (2) prohibit the Adjacent State from exer-
cising any authority under subsection (h), for the duration 
of the restriction. The Secretary shall make the determina-
tion of the existence of such restricting constitutional pro-
vision or State statute within 30 days of a petition by any 
outer Continental Shelf lessee or coastal State. 
‘‘(j) PROHIBITION ON LEASING EAST OF THE MILI-
TARY MISSION LINE.— 
‘‘(1) Notwithstanding any other provision of 
law, from and after the enactment of the Deep 
Ocean Energy Resources Act of 2008, prior to Janu-
ary 1, 2022, no area of the outer Continental Shelf 
located in the Gulf of Mexico east of the military 
mission line may be offered for leasing for oil and 
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gas or natural gas unless a waiver is issued by the 
Secretary of Defense. If such a waiver is granted, 
62.5 percent of the OCS Receipts from a lease with-
in such area issued because of such waiver shall be 
paid annually to the National Guards of all States 
having a point within 1000 miles of such a lease, al-
located among the States on a per capita basis using 
the entire population of such States. 
‘‘(2) In this subsection, the term ‘military mis-
sion line’ means a line located at 86 degrees, 41 
minutes West Longitude, and extending south from 
the coast of Florida to the outer boundary of United 
States territorial waters in the Gulf of Mexico.’’. 
SEC. 112. OUTER CONTINENTAL SHELF LEASING PROGRAM. 
Section 18 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1344) is amended— 
(1) in subsection (a), by adding at the end of 
paragraph (3) the following: ‘‘The Secretary shall, in 
each 5-Year Program, include lease sales that when 
viewed as a whole propose to offer for oil and gas 
or natural gas leasing at least 75 percent of the 
available unleased acreage within each OCS Plan-
ning Area. Available unleased acreage is that portion 
of the outer Continental Shelf that is not under 
lease at the time of the proposed lease sale, and has 
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not otherwise been made unavailable for leasing by 
law.’’; 
(2) in subsection (c), by striking so much as 
precedes paragraph (3) and inserting the following: 
‘‘(c)(1) During the preparation of any proposed leas-
ing program under this section, the Secretary shall con-
sider and analyze leasing throughout the entire outer Con-
tinental Shelf without regard to any other law affecting 
such leasing. During this preparation the Secretary shall 
invite and consider suggestions from any interested Fed-
eral agency, including the Attorney General, in consulta-
tion with the Federal Trade Commission, and from the 
Governor of any coastal State. The Secretary may also in-
vite or consider any suggestions from the executive of any 
local government in a coastal State that have been pre-
viously submitted to the Governor of such State, and from 
any other person. Further, the Secretary shall consult 
with the Secretary of Defense regarding military oper-
ational needs in the outer Continental Shelf. The Sec-
retary shall work with the Secretary of Defense to resolve 
any conflicts that might arise regarding offering any area 
of the outer Continental Shelf for oil and gas or natural 
gas leasing. If the Secretaries are not able to resolve all 
such conflicts, any unresolved issues shall be elevated to 
the President for resolution. 
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‘‘(2) After the consideration and analysis required by 
paragraph (1), including the consideration of the sugges-
tions received from any interested Federal agency, the 
Federal Trade Commission, the Governor of any coastal 
State, any local government of a coastal State, and any 
other person, the Secretary shall publish in the Federal 
Register a proposed leasing program accompanied by a 
draft environmental impact statement prepared pursuant 
to the National Environmental Policy Act of 1969. After 
the publishing of the proposed leasing program and during 
the comment period provided for on the draft environ-
mental impact statement, the Secretary shall submit a 
copy of the proposed program to the Governor of each af-
fected State for review and comment. The Governor may 
solicit comments from those executives of local govern-
ments in the Governor’s State that the Governor, in the 
discretion of the Governor, determines will be affected by 
the proposed program. If any comment by such Governor 
is received by the Secretary at least 15 days prior to sub-
mission to the Congress pursuant to paragraph (3) and 
includes a request for any modification of such proposed 
program, the Secretary shall reply in writing, granting or 
denying such request in whole or in part, or granting such 
request in such modified form as the Secretary considers 
appropriate, and stating the Secretary’s reasons therefor. 
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All such correspondence between the Secretary and the 
Governor of any affected State, together with any addi-
tional information and data relating thereto, shall accom-
pany such proposed program when it is submitted to the 
Congress.’’; and 
(3) by adding at the end the following: 
‘‘(i) PROJECTION OF STATE ADJACENT ZONE RE-
SOURCES AND STATE AND LOCAL GOVERNMENT SHARES 
OF OCS RECEIPTS.—Concurrent with the publication of 
the scoping notice at the beginning of the development of 
each 5-Year Outer Continental Shelf Oil and Gas Leasing 
Program, or as soon thereafter as possible, the Secretary 
shall— 
‘‘(1) provide to each Adjacent State a current 
estimate of proven and potential oil and gas re-
sources located within the State’s Adjacent Zone; 
and 
‘‘(2) provide to each Adjacent State, and coast-
al political subdivisions thereof, a best-efforts projec-
tion of the OCS Receipts that the Secretary expects 
will be shared with each Adjacent State, and its 
coastal political subdivisions, using the assumption 
that the unleased tracts within the State’s Adjacent 
Zone are fully made available for leasing, including 
long-term projected OCS Receipts. In addition, the 
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Secretary shall include a macroeconomic estimate of 
the impact of such leasing on the national economy 
and each State’s economy, including investment, 
jobs, revenues, personal income, and other cat-
egories.’’. 
SEC. 113. COORDINATION WITH ADJACENT STATES. 
Section 19 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1345) is amended— 
(1) in subsection (a) in the first sentence by in-
serting ‘‘, for any tract located within the Adjacent 
State’s Adjacent Zone,’’ after ‘‘government’’; and 
(2) by adding the following: 
‘‘(f)(1) No Federal agency may permit or otherwise 
approve, without the concurrence of the Adjacent State, 
the construction of a crude oil or petroleum products (or 
both) pipeline within the part of the Adjacent State’s Ad-
jacent Zone that is withdrawn from oil and gas or natural 
gas leasing, except that such a pipeline may be approved, 
without such Adjacent State’s concurrence, to pass 
through such Adjacent Zone if at least 50 percent of the 
production projected to be carried by the pipeline within 
its first 10 years of operation is from areas of the Adja-
cent State’s Adjacent Zone. 
‘‘(2) No State may prohibit the construction within 
its Adjacent Zone or its State waters of a natural gas pipe-
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line that will transport natural gas produced from the 
outer Continental Shelf. However, an Adjacent State may 
prevent a proposed natural gas pipeline landing location 
if it proposes two alternate landing locations in the Adja-
cent State, acceptable to the Adjacent State, located with-
in 50 miles on either side of the proposed landing loca-
tion.’’. 
SEC. 114. ENVIRONMENTAL STUDIES. 
Section 20(d) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1346) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
(2) by adding at the end the following: 
‘‘(2) For all programs, lease sales, leases, and 
actions under this Act, the following shall apply re-
garding the application of the National Environ-
mental Policy Act of 1969: 
‘‘(A) Granting or directing lease suspen-
sions and the conduct of all preliminary activi-
ties on outer Continental Shelf tracts, including 
seismic activities, are categorically excluded 
from the need to prepare either an environ-
mental assessment or an environmental impact 
statement, and the Secretary shall not be re-
quired to analyze whether any exceptions to a 
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categorical exclusion apply for activities con-
ducted under the authority of this Act. 
‘‘(B) The environmental impact statement 
developed in support of each 5-Year Oil and 
Gas Leasing Program provides the environ-
mental analysis for all lease sales to be con-
ducted under the program and such sales shall 
not be subject to further environmental anal-
ysis. 
‘‘(C) Exploration plans shall not be subject 
to any requirement to prepare an environmental 
impact statement, and the Secretary may find 
that exploration plans are eligible for categor-
ical exclusion due to the impacts already being 
considered within an environmental impact 
statement or due to mitigation measures in-
cluded within the plan. 
‘‘(D) Within each OCS Planning Area, 
after the preparation of the first development 
and production plan environmental impact 
statement for a leased tract within the Area, fu-
ture development and production plans for 
leased tracts within the Area shall only require 
the preparation of an environmental assessment 
unless the most recent development and produc-
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tion plan environmental impact statement with-
in the Area was finalized more than 10 years 
prior to the date of the approval of the plan, in 
which case an environmental impact statement 
shall be required.’’. 
SEC. 115. TERMINATION OF EFFECT OF LAWS PROHIBITING 
THE SPENDING OF APPROPRIATED FUNDS 
FOR CERTAIN PURPOSES. 
All provisions of existing Federal law prohibiting the 
spending of appropriated funds to conduct oil and natural 
gas leasing and preleasing activities, or to issue a lease 
to any person, for any area of the outer Continental Shelf 
shall have no force or effect. 
SEC. 116. OUTER CONTINENTAL SHELF INCOMPATIBLE 
USE. 
(a) IN GENERAL.—No Federal agency may permit 
construction or operation (or both) of any facility, or des-
ignate or maintain a restricted transportation corridor or 
operating area on the Federal outer Continental Shelf or 
in State waters, that will be incompatible with, as deter-
mined by the Secretary of the Interior, oil and gas or nat-
ural gas leasing and substantially full exploration and pro-
duction of tracts that are geologically prospective for oil 
or natural gas (or both). 
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(b) EXCEPTIONS.—Subsection (a) shall not apply to 
any facility, transportation corridor, or operating area the 
construction, operation, designation, or maintenance of 
which is or will be— 
(1) located in an area of the outer Continental 
Shelf that is unavailable for oil and gas or natural 
gas leasing by operation of law; 
(2) used for a military readiness activity (as de-
fined in section 315(f) of Public Law 107–314; 16 
U.S.C. 703 note); or 
(3) required in the national interest, as deter-
mined by the President. 
SEC. 117. REPURCHASE OF CERTAIN LEASES. 
(a) AUTHORITY TO REPURCHASE AND CANCEL CER-
TAIN LEASES.—The Secretary of the Interior shall repur-
chase and cancel any Federal oil and gas, geothermal, 
coal, oil shale, tar sands, or other mineral lease, whether 
onshore or offshore, but not including any outer Conti-
nental Shelf oil and gas leases that were subject to litiga-
tion in the Court of Federal Claims on January 1, 2006, 
if the Secretary finds that such lease qualifies for repur-
chase and cancellation under the regulations authorized 
by this section. 
(b) REGULATIONS.—Not later than 365 days after 
the date of the enactment of this Act, the Secretary shall 
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publish a final regulation stating the conditions under 
which a lease referred to in subsection (a) would qualify 
for repurchase and cancellation, and the process to be fol-
lowed regarding repurchase and cancellation. Such regula-
tion shall include, but not be limited to, the following: 
(1) The Secretary shall repurchase and cancel 
a lease after written request by the lessee upon a 
finding by the Secretary that— 
(A) a request by the lessee for a required 
permit or other approval complied with applica-
ble law, except the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1451 et seq.), and 
terms of the lease and such permit or other ap-
proval was denied; 
(B) a Federal agency failed to act on a re-
quest by the lessee for a required permit, other 
approval, or administrative appeal within a reg-
ulatory or statutory time-frame associated with 
the requested action, whether advisory or man-
datory, or if none, within 180 days; or 
(C) a Federal agency attached a condition 
of approval, without agreement by the lessee, to 
a required permit or other approval if such con-
dition of approval was not mandated by Federal 
statute or regulation in effect on the date of 
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lease issuance, or was not specifically allowed 
under the terms of the lease. 
(2) A lessee shall not be required to exhaust ad-
ministrative remedies regarding a permit request, 
administrative appeal, or other required request for 
approval for the purposes of this section. 
(3) The Secretary shall make a final agency de-
cision on a request by a lessee under this section 
within 180 days of request. 
(4) Compensation to a lessee to repurchase and 
cancel a lease under this section shall be the amount 
that a lessee would receive in a restitution case for 
a material breach of contract. 
(5) Compensation shall be in the form of a 
check or electronic transfer from the Department of 
the Treasury from funds deposited into miscella-
neous receipts under the authority of the same Act 
that authorized the issuance of the lease being re-
purchased. 
(6) Failure of the Secretary to make a final 
agency decision on a request by a lessee under this 
section within 180 days of request shall result in a 
10 percent increase in the compensation due to the 
lessee if the lease is ultimately repurchased. 
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(c) NO PREJUDICE.—This section shall not be inter-
preted to prejudice any other rights that the lessee would 
have in the absence of this section. 
SEC. 118. OFFSITE ENVIRONMENTAL MITIGATION. 
Notwithstanding any other provision of law, any per-
son conducting activities under the Mineral Leasing Act 
(30 U.S.C. 181 et seq.), the Geothermal Steam Act (30 
U.S.C. 1001 et seq.), the Mineral Leasing Act for Ac-
quired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 
U.S.C. 552 et seq.), the General Mining Act of 1872 (30 
U.S.C. 22 et seq.), the Materials Act of 1947 (30 U.S.C. 
601 et seq.), or the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.), may in satisfying any mitigation 
requirements associated with such activities propose miti-
gation measures on a site away from the area impacted 
and the Secretary of the Interior shall accept these pro-
posed measures if the Secretary finds that they generally 
achieve the purposes for which mitigation measures apper-
tained. 
SEC. 119. OCS REGIONAL HEADQUARTERS. 
Not later than July 1, 2010, the Secretary of the In-
terior shall establish the headquarters for the Atlantic 
OCS Region, the headquarters for the Gulf of Mexico OCS 
Region, and the headquarters for the Pacific OCS Region 
within a State bordering the Atlantic OCS Region, a State 
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bordering the Gulf of Mexico OCS Region, and a State 
bordering the Pacific OCS Region, respectively, from 
among the States bordering those Regions, that petitions 
by no later than January 1, 2010, for leasing, for oil and 
gas or natural gas, covering at least 40 percent of the area 
of its Adjacent Zone within 100 miles of the coastline. 
Such Atlantic and Pacific OCS Regions headquarters shall 
be located within 25 miles of the coastline and each MMS 
OCS regional headquarters shall be the permanent duty 
station for all Minerals Management Service personnel 
that on a daily basis spend on average 60 percent or more 
of their time in performance of duties in support of the 
activities of the respective Region, except that the Min-
erals Management Service may house regional inspection 
staff in other locations. Each OCS Region shall each be 
led by a Regional Director who shall be an employee with-
in the Senior Executive Service. 
SEC. 120. LEASES FOR AREAS LOCATED WITHIN 100 MILES 
OF CALIFORNIA OR FLORIDA. 
(a) AUTHORIZATION TO CANCEL AND EXCHANGE 
CERTAIN EXISTING OIL AND GAS LEASES; PROHIBITION 
ON SUBMITTAL OF EXPLORATION PLANS FOR CERTAIN 
LEASES PRIOR TO JUNE 30, 2012.— 
(1) AUTHORITY.—Within 2 years after the date 
of enactment of this Act, the lessee of an existing oil 
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and gas lease for an area located completely within 
100 miles of the coastline within the California or 
Florida Adjacent Zones shall have the option, with-
out compensation, of exchanging such lease for a 
new oil and gas lease having a primary term of 5 
years. For the area subject to the new lease, the les-
see may select any unleased tract on the outer Con-
tinental Shelf that is in an area available for leasing. 
Further, with the permission of the relevant Gov-
ernor, such a lessee may convert its existing oil and 
gas lease into a natural gas lease having a primary 
term of 5 years and covering the same area as the 
existing lease or another area within the same 
State’s Adjacent Zone within 100 miles of the coast-
line. 
(2) ADMINISTRATIVE PROCESS.—The Secretary 
of the Interior shall establish a reasonable adminis-
trative process to implement paragraph (1). Ex-
changes and conversions under subsection (a), in-
cluding the issuance of new leases, shall not be con-
sidered to be major Federal actions for purposes of 
the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). Further, such actions con-
ducted in accordance with this section are deemed to 
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be in compliance all provisions of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1331 et seq.). 
(3) OPERATING
RESTRICTIONS.—A new lease 
issued in exchange for an existing lease under this 
section shall be subject to such national defense op-
erating stipulations on the OCS tract covered by the 
new lease as may be applicable upon issuance. 
(4) PRIORITY.—The Secretary shall give pri-
ority in the lease exchange process based on the 
amount of the original bonus bid paid for the 
issuance of each lease to be exchanged. The Sec-
retary shall allow leases covering partial tracts to be 
exchanged for leases covering full tracts conditioned 
upon payment of additional bonus bids on a per-acre 
basis as determined by the average per acre of the 
original bonus bid per acre for the partial tract 
being exchanged. 
(5) EXPLORATION
PLANS.—Any exploration 
plan submitted to the Secretary of the Interior after 
the date of the enactment of this Act and before 
July 1, 2012, for an oil and gas lease for an area 
wholly within 100 miles of the coastline within the 
California Adjacent Zone or Florida Adjacent Zone 
shall not be treated as received by the Secretary 
until the earlier of July 1, 2012, or the date on 
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which a petition by the Adjacent State for oil and 
gas leasing covering the area within which is located 
the area subject to the oil and gas lease was ap-
proved. 
(b) FURTHER
LEASE
CANCELLATION
AND
EX-
CHANGE PROVISIONS.— 
(1) CANCELLATION OF LEASE.—As part of the 
lease exchange process under this section, the Sec-
retary shall cancel a lease that is exchanged under 
this section. 
(2) CONSENT OF LESSEES.—All lessees holding 
an interest in a lease must consent to cancellation 
of their leasehold interests in order for the lease to 
be cancelled and exchanged under this section. 
(3) WAIVER OF RIGHTS.—As a prerequisite to 
the exchange of a lease under this section, the lessee 
must waive any rights to bring any litigation against 
the United States related to the transaction. 
(4) PLUGGING AND ABANDONMENT.—The plug-
ging and abandonment requirements for any wells 
located on any lease to be cancelled and exchanged 
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 
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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. 121. COASTAL IMPACT ASSISTANCE. 
Section 31 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356a) is repealed. 
SEC. 122. 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. 
Subtitle B—ANWR 
SEC. 141. SHORT TITLE. 
This subtitle may be cited as the ‘‘American Energy 
Independence and Price Reduction Act’’. 
SEC. 142. DEFINITIONS. 
In this subtitle: 
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(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. 143. 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 subtitle and acting through the Director of 
the Bureau of Land Management in consultation 
with 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 pro-
duction of the oil and gas resources of the Coastal 
Plain; and 
(2) to administer the provisions of this subtitle 
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 
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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 sub-
title 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. 
(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-
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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-
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 subtitle before the conduct of the 
first lease sale. 
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.—Before conducting the first lease sale under 
this subtitle, 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 subtitle that are not re-
ferred to in paragraph (2). Notwithstanding any 
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other law, the Secretary is not required to identify 
nonleasing alternative courses of action or to analyze 
the environmental effects of such courses of action. 
The Secretary shall only identify a preferred action 
for such leasing and a single leasing alternative, and 
analyze the environmental effects and potential miti-
gation measures for those two alternatives. The 
identification of the preferred action and related 
analysis for the first lease sale under this subtitle 
shall be completed within 18 months after the date 
of enactment of this Act. The Secretary shall only 
consider public comments that specifically address 
the Secretary’s preferred action and that are filed 
within 20 days after publication of an environmental 
analysis. Notwithstanding any other law, compliance 
with this paragraph is deemed to satisfy all require-
ments for the analysis and consideration of the envi-
ronmental effects of proposed leasing under this sub-
title. 
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this subtitle shall be considered to ex-
pand 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 
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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-
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. 
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(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 subtitle. 
(g) REGULATIONS.— 
(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out this subtitle, including rules and regulations re-
lating to protection of the fish and wildlife, their 
habitat, subsistence resources, and environment of 
the Coastal 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, 
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. 144. LEASE SALES. 
(a) IN GENERAL.—Lands may be leased pursuant to 
this subtitle to any person qualified to obtain a lease for 
deposits 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— 
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(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 subtitle shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first 
lease sale under this subtitle, the Secretary shall offer for 
lease those tracts the Secretary considers to have the 
greatest potential for the discovery of hydrocarbons, tak-
ing 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 sub-
title within 22 months after the date of the enact-
ment 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 
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(e) TREATMENT OF ALTERNATIVE MOTOR VEHICLE 
CREDIT AS A PERSONAL CREDIT.— 
(1) IN
GENERAL.—Paragraph (2) of section 
30B(g) of such Code is amended to read as follows: 
‘‘(2) PERSONAL
CREDIT.—The credit allowed 
under subsection (a) for any taxable year (after ap-
plication of paragraph (1)) shall be treated as a 
credit allowable under subpart A for such taxable 
year.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subparagraph (A) of section 30C(d)(2) 
of such Code is amended by striking ‘‘sections 
27, 30, and 30B’’ and inserting ‘‘sections 27 
and 30’’. 
(B) Paragraph (3) of section 55(c) of such 
Code is amended by striking ‘‘30B(g)(2),’’. 
(f) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to taxable years beginning 
after December 31, 2008. 
(2) TREATMENT OF ALTERNATIVE MOTOR VE-
HICLE CREDIT AS PERSONAL CREDIT.—The amend-
ments made by subsection (e) shall apply to taxable 
years beginning after December 31, 2007. 
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113 
(b) CONFORMING AMENDMENTS.— 
(1) Section 23(b)(4)(B) of the Internal Revenue 
Code of 1986 is amended by inserting ‘‘and section 
25E’’ after ‘‘this section’’. 
(2) Section 23(c)(1) of such Code is amended 
by inserting ‘‘, 25E,’’ after ‘‘25D’’. 
(3) Section 24(b)(3)(B) of such Code is amend-
ed by striking ‘‘and 25B’’ and inserting ‘‘, 25B, and 
25E’’. 
(4) Clauses (i) and (ii) of section 25(e)(1)(C) of 
such Code are each amended by inserting ‘‘25E,’’ 
after ‘‘25D,’’. 
(5) Section 25B(g)(2) of such Code is amended 
by striking ‘‘section 23’’ and inserting ‘‘sections 23 
and 25E’’. 
(6) Section 25D(c)(1) of such Code is amended 
by inserting ‘‘and section 25E’’ after ‘‘this section’’. 
(7) Section 25D(c)(2) of such Code is amended 
by striking ‘‘and 25B’’ and inserting ‘‘25B, and 
25E’’. 
(8) The table of sections for subpart A of part 
IV of subchapter A chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 25D the following new item: 
‘‘Sec. 25E. Home energy audits.’’. 
(c) EFFECTIVE DATE.— 
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