H.R. 6412 (110th): Comprehensive Energy Exploration, Price Reduction, and Renewable Energy Investment Act of 2008

110th Congress, 2007–2009. Text as of Jun 26, 2008 (Introduced).

Status & Summary | PDF | Source: GPO

I

110th CONGRESS

2d Session

H. R. 6412

IN THE HOUSE OF REPRESENTATIVES

June 26, 2008

introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on Energy and Commerce, Science and Technology, Oversight and Government Reform, Armed Services, Foreign Affairs, Ways and Means, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To promote the energy security of the United States, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Comprehensive Energy Exploration, Price Reduction, and Renewable Energy Investment Act of 2008.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary.

Title I—Traditional resources

Subtitle A—Outer Continental Shelf

Sec. 101. Publication of projected State lines on outer Continental Shelf.

Sec. 102. Production of oil and natural gas in new producing areas.

Sec. 103. Conforming amendment.

Subtitle B—Leasing program for land within Coastal Plain

Sec. 111. Definitions.

Sec. 112. Leasing program for land within the Coastal Plain.

Sec. 113. Lease sales.

Sec. 114. Grant of leases by the Secretary.

Sec. 115. Lease terms and conditions.

Sec. 116. Coastal Plain environmental protection.

Sec. 117. Expedited judicial review.

Sec. 118. Rights-of-way and easements across Coastal Plain.

Sec. 119. Conveyance.

Sec. 120. Local government impact aid and community service assistance.

Sec. 121. Prohibition on exports.

Sec. 122. Allocation of revenues.

Subtitle C—Permitting

Sec. 131. Refinery permitting process.

Subtitle D—Strategic Petroleum Reserve

Sec. 141. Suspension of petroleum acquisition for Strategic Petroleum Reserve.

Subtitle E—Restoration of State revenue

Sec. 151. Restoration of State revenue.

Subtitle F—Renewable Energy Transition Trust Fund

Sec. 161. Renewable Energy Transition Trust Fund.

Title II—Alternative resources

Subtitle A—Renewable fuel and advanced energy technology

Sec. 201. Definition of renewable biomass.

Sec. 202. Advanced battery manufacturing incentive program.

Sec. 203. Biofuels infrastructure and additives research and development.

Sec. 204. Study of increased consumption of ethanol-blended gasoline with higher levels of ethanol.

Sec. 205. Study of diesel vehicle attributes.

Subtitle B—Clean coal-derived fuels for energy security

Sec. 211. Short title.

Sec. 212. Definitions.

Sec. 213. Clean coal-derived fuel program.

Subtitle C—Oil shale

Sec. 221.  Removal of prohibition on final regulations for commercial leasing program for oil shale resources on public land.

Subtitle D—Department of Defense facilitation of secure domestic fuel development

Sec. 231. Procurement and acquisition of alternative fuels.

Sec. 232. Multiyear contract authority for the Department of Defense for the procurement of synthetic fuels.

Title III—Miscellaneous

Sec. 301. Limitation on sales of defense articles and defense services to the Kingdom of Saudi Arabia.

Sec. 302. Extension and modification of renewable energy production tax credit.

Sec. 303. Extension and modification of solar energy and fuel cell investment tax credit.

Sec. 304. Extension and modification of residential energy efficient property credit.

Sec. 305. Extension and modification of credit for clean renewable energy bonds.

Sec. 306. Extension and modification of credit for energy efficiency improvements to existing homes.

Sec. 307. Extension and modification of tax credit for energy efficient new homes.

Sec. 308. Extension and modification of energy efficient commercial buildings deduction.

Sec. 309. Modification and extension of energy efficient appliance credit for appliances produced after 2007.

Sec. 310. Apollo 21 energy independence program.

Sec. 311. Study of effects of speculation in the futures markets for natural gas, crude oil, and gasoline on cash market and retail prices, and choice of trading venue.

Sec. 312. Requirement that the Commodity Futures Trading Commission issue a notice of proposed rulemaking regarding comparability of foreign regulation of futures and derivatives trading.

2.

Definition of Secretary

In this Act, the term Secretary means the Secretary of Energy.

I

Traditional resources

A

Outer Continental Shelf

101.

Publication of projected State lines on outer Continental Shelf

Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended—

(1)

by designating the first, second, and third sentences as clause (i), (iii), and (iv), respectively;

(2)

in clause (i) (as so designated), by inserting before the period at the end the following: not later than 90 days after the date of enactment of the Comprehensive Energy Exploration, Price Reduction, and Renewable Energy Investment Act of 2008; and

(3)

by inserting after clause (i) (as so designated) the following:

(ii)
(I)

The projected lines shall also be used for the purpose of preleasing and leasing activities conducted in new producing areas under section 32.

(II)

This clause shall not affect any property right or title to Federal submerged land on the outer Continental Shelf.

(III)

In carrying out this clause, the President shall consider the offshore administrative boundaries beyond State submerged lands for planning, coordination, and administrative purposes of the Department of the Interior, but may establish different boundaries.

.

102.

Production of oil and natural gas in new producing areas

The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended by adding at the end the following:

32.

Production of oil and natural gas in new producing areas

(a)

Definitions

In this section:

(1)

Coastal political subdivision

The term coastal political subdivision means a political subdivision of a new producing State any part of which political subdivision is—

(A)

within the coastal zone (as defined in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of the new producing State as of the date of enactment of this section; and

(B)

not more than 200 nautical miles from the geographic center of any leased tract.

(2)

Moratorium area

The term moratorium area means an area covered by sections 104 through 105 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110–161; 121 Stat. 2118) (as in effect on the day before the date of enactment of this section).

(3)

New producing area

The term new producing area means any moratorium area within the offshore administrative boundaries beyond the submerged land of a State that is located greater than 50 miles from the coastline of the State.

(4)

New producing State

The term new producing State means a State that has, within the offshore administrative boundaries beyond the submerged land of the State, a new producing area available for oil and gas leasing under subsection (b).

(5)

Offshore administrative boundaries

The term offshore administrative boundaries means the administrative boundaries established by the Secretary beyond State submerged land for planning, coordination, and administrative purposes of the Department of the Interior and published in the Federal Register on January 3, 2006 (71 Fed. Reg. 127).

(6)

Qualified outer Continental Shelf revenues

(A)

In general

The term qualified outer Continental Shelf revenues means all rentals, royalties, bonus bids, and other sums due and payable to the United States from leases entered into on or after the date of enactment of this section for new producing areas.

(B)

Exclusions

The term qualified outer Continental Shelf revenues does not include—

(i)

revenues from a bond or other surety forfeited for obligations other than the collection of royalties;

(ii)

revenues from civil penalties;

(iii)

royalties taken by the Secretary in-kind and not sold;

(iv)

revenues generated from leases subject to section 8(g); or

(v)

any revenues considered qualified outer Continental Shelf revenues under section 102 of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109–432).

(b)

Petition for Leasing New Producing Areas

(1)

In general

Beginning on the date on which the President delineates projected State lines under section 4(a)(2)(A)(ii), the Governor of a State with a new producing area within the offshore administrative boundaries beyond the submerged land of the State may submit to the Secretary a petition requesting that the Secretary make the new producing area available for oil and gas leasing.

(2)

Action by Secretary

Notwithstanding section 18, as soon as practicable after receipt of a petition under paragraph (1), the Secretary shall approve the petition if the Secretary determines that leasing the new producing area would not create an unreasonable risk of harm to the marine, human, or coastal environment.

(c)

Disposition of qualified outer Continental Shelf revenues from new producing areas

(1)

In general

Notwithstanding section 9 and subject to the other provisions of this subsection, for each applicable fiscal year, the Secretary of the Treasury shall deposit—

(A)

35 percent of qualified outer Continental Shelf revenues in the general fund of the Treasury;

(B)

30 percent of qualified outer Continental Shelf revenues in a special account in the Treasury from which the Secretary shall disburse—

(i)

75 percent to new producing States in accordance with paragraph (2); and

(ii)

25 percent to provide financial assistance to States in accordance with section 6 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–8), which shall be considered income to the Land and Water Conservation Fund for purposes of section 2 of that Act (16 U.S.C. 460l–5); and

(C)

35 percent of qualified outer Continental Shelf revenues in the Renewable Energy Transition Trust Fund established by section 161 of the Comprehensive Energy Exploration, Price Reduction, and Renewable Energy Investment Act of 2008.

(2)

Allocation to new producing States and coastal political subdivisions

(A)

Allocation to new producing States

Effective for fiscal year 2008 and each fiscal year thereafter, the amount made available under paragraph (1)(B)(i) shall be allocated to each new producing State in amounts (based on a formula established by the Secretary by regulation) proportional to the amount of qualified outer Continental Shelf revenues generated in the new producing area offshore each State.

(B)

Payments to coastal political subdivisions

(i)

In general

The Secretary shall pay 20 percent of the allocable share of each new producing State, as determined under subparagraph (A), to the coastal political subdivisions of the new producing State.

(ii)

Allocation

The amount paid by the Secretary to coastal political subdivisions shall be allocated to each coastal political subdivision in accordance with subparagraphs (B) and (C) of section 31(b)(4).

(3)

Minimum allocation

The amount allocated to a new producing State for each fiscal year under paragraph (2) shall be at least 5 percent of the amounts available under for the fiscal year under paragraph (1)(B)(i).

(4)

Timing

The amounts required to be deposited under subparagraph (B) of paragraph (1) for the applicable fiscal year shall be made available in accordance with that subparagraph during the fiscal year immediately following the applicable fiscal year.

(5)

Authorized uses

(A)

In general

Subject to subparagraph (B), each new producing State and coastal political subdivision shall use all amounts received under paragraph (2) in accordance with all applicable Federal and State laws, only for 1 or more of the following purposes:

(i)

Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses.

(ii)

Mitigation of damage to fish, wildlife, or natural resources.

(iii)

Implementation of a federally approved marine, coastal, or comprehensive conservation management plan.

(iv)

Mitigation of the impact of outer Continental Shelf activities through the funding of onshore infrastructure projects.

(v)

Planning assistance and the administrative costs of complying with this section.

(B)

Limitation

Not more than 3 percent of amounts received by a new producing State or coastal political subdivision under paragraph (2) may be used for the purposes described in subparagraph (A)(v).

(6)

Administration

Amounts made available under paragraph (1)(B) shall—

(A)

be made available, without further appropriation, in accordance with this subsection;

(B)

remain available until expended; and

(C)

be in addition to any amounts appropriated under—

(i)

other provisions of this Act;

(ii)

the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–4 et seq.); or

(iii)

any other provision of law.

(d)

Disposition of qualified outer Continental Shelf revenues from other areas

Notwithstanding section 9, for each applicable fiscal year, the terms and conditions of subsection (c) shall apply to the disposition of qualified outer Continental Shelf revenues that—

(1)

are derived from oil or gas leasing in an area that is not included in the current 5-year plan of the Secretary for oil or gas leasing; and

(2)

are not assumed in the budget of the United States Government submitted by the President under section 1105 of title 31, United States Code.

.

103.

Conforming amendment

Sections 104 through 105 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110–161; 121 Stat. 2118) are repealed.

B

Leasing program for land within Coastal Plain

111.

Definitions

In this subtitle:

(1)

Coastal Plain

The term Coastal Plain means that area identified as the 1002 Coastal Plain Area on the map.

(2)

Federal agreement

The term Federal Agreement means the Federal Agreement and Grant Right-of-Way for the Trans-Alaska Pipeline issued on January 23, 1974, in accordance with section 28 of the Mineral Leasing Act (30 U.S.C. 185) and the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et seq.).

(3)

Final statement

The term Final Statement means the final legislative environmental impact statement on the Coastal Plain, dated April 1987, and prepared pursuant to section 1002 of the Alaska National Interest Lands Conservation Act (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)).

(4)

Map

The term map means the map entitled Arctic National Wildlife Refuge, dated September 2005, and prepared by the United States Geological Survey.

(5)

Secretary

The term Secretary means the Secretary of the Interior (or the designee of the Secretary), acting through the Director of the Bureau of Land Management in consultation with the Director of the United States Fish and Wildlife Service and in coordination with a State coordinator appointed by the Governor of the State of Alaska.

112.

Leasing program for land within the Coastal Plain

(a)

In general

(1)

Authorization

Congress authorizes the exploration, leasing, development, production, and economically feasible and prudent transportation of oil and gas in and from the Coastal Plain.

(2)

Actions

The Secretary shall take such actions as are necessary—

(A)

to establish and implement, in accordance with this subtitle, 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 while taking into consideration the interests and concerns of residents of the Coastal Plain, which is the homeland of the Kaktovikmiut Inupiat; and

(B)

to administer this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that—

(i)

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; and

(ii)

require the application of the best commercially available technology for oil and gas exploration, development, and production to all exploration, development, and production operations under this subtitle 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 National Interest Lands Conservation Act (16 U.S.C. 3143) is repealed.

(2)

Conforming amendment

The table of contents contained in section 1 of that Act (16 U.S.C. 3101 note) is amended by striking the item relating to section 1003.

(c)

Compliance with requirements under certain other laws

(1)

Compatibility

For purposes of the National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd et seq.)—

(A)

the oil and gas pre-leasing and leasing program, and activities authorized by this section in the Coastal Plain, shall be considered to be compatible with the purposes for which the Arctic National Wildlife Refuge was established; and

(B)

no further findings or decisions shall be required to implement that program and those activities.

(2)

Adequacy of the Department of the Interior's legislative environmental impact statement

The Final Statement shall be considered to satisfy the requirements under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) that apply with respect to pre-leasing activities, including exploration programs and actions authorized to be taken by the Secretary to develop and promulgate the regulations for the establishment of a leasing program authorized by this subtitle before the conduct of the first lease sale.

(3)

Compliance with NEPA for other actions

(A)

In general

Before conducting the first lease sale under this subtitle, the Secretary shall prepare an environmental impact statement in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to the actions authorized by this subtitle that are not referred to in paragraph (2).

(B)

Identification and analysis

Notwithstanding any other provision of law, in carrying out this paragraph, the Secretary shall not be required—

(i)

to identify nonleasing alternative courses of action; or

(ii)

to analyze the environmental effects of those courses of action.

(C)

Identification of preferred action

Not later than 18 months after the date of enactment of this Act, the Secretary shall—

(i)

identify only a preferred action and a single leasing alternative for the first lease sale authorized under this subtitle; and

(ii)

analyze the environmental effects and potential mitigation measures for those 2 alternatives.

(D)

Public comments

In carrying out this paragraph, the Secretary shall consider only public comments that are filed not later than 20 days after the date of publication of a draft environmental impact statement.

(E)

Effect of compliance

Notwithstanding any other provision of law, compliance with this paragraph shall be considered to satisfy all requirements for the analysis and consideration of the environmental effects of proposed leasing under this subtitle.

(d)

Relationship to State and local authority

Nothing in this subtitle expands or limits any State or local regulatory authority.

(e)

Special areas

(1)

Designation

(A)

In general

The Secretary, after consultation with the State of Alaska, the North Slope Borough, Alaska, and the City of Kaktovik, Alaska, may designate not more than 45,000 acres of the Coastal Plain as a special area if the Secretary determines that the special area would be of such unique character and interest as to require special management and regulatory protection.

(B)

Sadlerochit spring area

The Secretary shall designate as a special area in accordance with subparagraph (A) the Sadlerochit Spring area, comprising approximately 4,000 acres as depicted on the map.

(2)

Management

The Secretary shall manage each special area designated under this subsection in a manner that—

(A)

respects and protects the Native people of the area; and

(B)

preserves the unique and diverse character of the area, including fish, wildlife, subsistence resources, and cultural values of the area.

(3)

Exclusion from leasing or surface occupancy

(A)

In general

The Secretary may exclude any special area designated under this subsection from leasing.

(B)

No surface occupancy

If the Secretary leases all or a portion of a special area for the purposes of oil and gas exploration, development, production, and related activities, there shall be no surface occupancy of the land comprising the special area.

(4)

Directional drilling

Notwithstanding any other provision of this subsection, the Secretary may lease all or a portion of a special area under terms that permit the use of horizontal drilling technology from sites on leases located outside the special area.

(f)

Limitation on closed areas

The Secretary may not close land within the Coastal Plain to oil and gas leasing or to exploration, development, or production except in accordance with this subtitle.

(g)

Regulations

(1)

In general

Not later than 15 months after the date of enactment of this Act, in consultation with appropriate agencies of the State of Alaska, the North Slope Borough, Alaska, and the City of Kaktovik, Alaska, the Secretary shall issue such regulations as are necessary to carry out this subtitle, including rules and regulations relating to protection of the fish and wildlife, fish and wildlife habitat, and subsistence resources of the Coastal Plain.

(2)

Revision of regulations

The Secretary may periodically review and, as appropriate, revise the rules and regulations issued under paragraph (1) to reflect any significant scientific or engineering data that come to the attention of the Secretary.

113.

Lease sales

(a)

In general

Land 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 regulation, establish procedures for—

(1)

receipt and consideration of sealed nominations 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 that nomination process; and

(3)

public notice of and comment on designation 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

For 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, 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)

not later than 22 months after the date of enactment of this Act, conduct the first lease sale under this subtitle;

(2)

not later than September 30, 2012, conduct a second lease sale under this subtitle; and

(3)

conduct additional sales at appropriate intervals if sufficient interest in exploration or development exists to warrant the conduct of the additional sales.

114.

Grant of leases by the Secretary

(a)

In general

Upon payment by a lessee of such bonus as may be accepted by the Secretary, the Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 113 a lease for any land on the Coastal Plain.

(b)

Subsequent transfers

(1)

In general

No lease issued under this subtitle may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary.

(2)

Condition for approval

Before granting any approval described in paragraph (1), the Secretary shall consult with and give due consideration to the opinion of the Attorney General.

115.

Lease terms and conditions

(a)

In general

An oil or gas lease issued pursuant to this subtitle shall—

(1)

provide for the payment of a royalty of not less than 16½ percent of the amount or value of the production removed or sold from the lease, as determined by the Secretary in accordance with regulations applicable to other Federal oil and gas leases;

(2)

provide that the Secretary may close, on a seasonal basis, such portions of the Coastal Plain to exploratory drilling activities as are necessary to protect caribou calving areas and other species of fish and wildlife;

(3)

require that each lessee of land within the Coastal Plain shall be fully responsible and liable for the reclamation of land within the Coastal Plain and any other Federal land that is adversely affected in connection with exploration, development, production, or transportation activities within the Coastal Plain conducted by the lessee or by any of the subcontractors or agents of the lessee;

(4)

provide that the lessee may not delegate or convey, by contract or otherwise, that reclamation responsibility and liability to another person without the express written approval of the Secretary;

(5)

provide that the standard of reclamation for land required to be reclaimed under this subtitle shall be, to the maximum extent practicable—

(A)

a condition capable of supporting the uses that the land was capable of supporting prior to any exploration, development, or production activities; or

(B)

upon application by the lessee, to a higher or better standard, as approved by the Secretary;

(6)

contain terms and conditions relating to protection of fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment as required under section 112(a)(2);

(7)

provide that each lessee, and each agent and contractor of a lessee, use their best efforts to provide a fair share of employment and contracting for Alaska Natives and Alaska Native Corporations from throughout the State of Alaska, as determined by the level of obligation previously agreed to in the Federal Agreement; and

(8)

contain such other provisions as the Secretary determines to be necessary to ensure compliance with this subtitle and regulations issued under this subtitle.

(b)

Project labor agreements

The Secretary, as a term and condition of each lease under this subtitle, and in recognizing the proprietary interest of the Federal Government in labor stability and in the ability of construction labor and management to meet the particular needs and conditions of projects to be developed under the leases issued pursuant to this subtitle (including the special concerns of the parties to those leases), shall require that each lessee, and each agent and contractor of a lessee, under this subtitle negotiate to obtain a project labor agreement for the employment of laborers and mechanics on production, maintenance, and construction under the lease.

116.

Coastal Plain environmental protection

(a)

No significant adverse effect standard To govern authorized coastal plain activities

In accordance with section 112, the Secretary shall administer this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, or other provisions that—

(1)

ensure, to the maximum extent practicable, that oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, fish and wildlife habitat, and the environment;

(2)

require the application of the best commercially available technology for oil and gas exploration, development, and production on all new exploration, development, and production operations; and

(3)

ensure that the maximum surface acreage covered in connection with the leasing program by production and support facilities, including airstrips and any areas covered by gravel berms or piers for support of pipelines, does not exceed 2,000 acres on the Coastal Plain.

(b)

Site-specific assessment and mitigation

The Secretary shall require, with respect to any proposed drilling and related activities on the Coastal Plain, that—

(1)

a site-specific environmental analysis be made of the probable effects, if any, that the drilling or related activities will have on fish and wildlife, fish and wildlife habitat, subsistence resources, subsistence uses, and the environment;

(2)

a plan be implemented to avoid, minimize, and mitigate (in that order and to the maximum extent practicable) any significant adverse effect identified under paragraph (1); and

(3)

the development of the plan occur after consultation with—

(A)

each agency having jurisdiction over matters mitigated by the plan;

(B)

the State of Alaska;

(C)

North Slope Borough, Alaska; and

(D)

the City of Kaktovik, Alaska.

(c)

Regulations To protect Coastal Plain fish and wildlife resources, subsistence users, and the environment

Before implementing the leasing program authorized by this subtitle, the Secretary shall prepare and issue regulations, lease terms, conditions, restrictions, prohibitions, stipulations, or other measures designed to ensure, to the maximum extent practicable, that the activities carried out on the Coastal Plain under this subtitle are conducted in a manner consistent with the purposes and environmental requirements of this subtitle.

(d)

Compliance with Federal and State environmental laws and other requirements

The proposed regulations, lease terms, conditions, restrictions, prohibitions, and stipulations for the leasing program under this subtitle shall require—

(1)

compliance with all applicable provisions of Federal and State environmental law (including regulations);

(2)

implementation of and compliance with—

(A)

standards that are at least as effective as the safety and environmental mitigation measures, as described in items 1 through 29 on pages 167 through 169 of the Final Statement, on the Coastal Plain;

(B)

seasonal limitations on exploration, development, and related activities, as necessary, to avoid significant adverse effects during periods of concentrated fish and wildlife breeding, denning, nesting, spawning, and migration;

(C)

design safety and construction standards for all pipelines and any access and service roads that minimize, to the maximum extent practicable, adverse effects on—

(i)

the passage of migratory species (such as caribou); and

(ii)

the flow of surface water by requiring the use of culverts, bridges, or other structural devices;

(D)

prohibitions on general public access to, and use of, all pipeline access and service roads;

(E)

stringent reclamation and rehabilitation requirements in accordance with this subtitle for the removal from the Coastal Plain of all oil and gas development and production facilities, structures, and equipment on completion of oil and gas production operations, except in a case in which the Secretary determines that those facilities, structures, or equipment—

(i)

would assist in the management of the Arctic National Wildlife Refuge; and

(ii)

are donated to the United States for that purpose;

(F)

appropriate prohibitions or restrictions on—

(i)

access by all modes of transportation;

(ii)

sand and gravel extraction; and

(iii)

use of explosives;

(G)

reasonable stipulations for protection of cultural and archaeological resources;

(H)

measures to protect groundwater and surface water, including—

(i)

avoidance, to the maximum extent practicable, of springs, streams, and river systems;

(ii)

the protection of natural surface drainage patterns and wetland and riparian habitats; and

(iii)

the regulation of methods or techniques for developing or transporting adequate supplies of water for exploratory drilling; and

(I)

research, monitoring, and reporting requirements;

(3)

that exploration activities (except surface geological studies) be limited to the period between approximately November 1 and May 1 of each year and be supported, if necessary, by ice roads, winter trails with adequate snow cover, ice pads, ice airstrips, and air transport methods (except that those exploration activities may be permitted at other times if the Secretary determines that the exploration will have no significant adverse effect on fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment of the Coastal Plain);

(4)

consolidation of facility siting;

(5)

avoidance or reduction of air traffic-related disturbance to fish and wildlife;

(6)

treatment and disposal of hazardous and toxic wastes, solid wastes, reserve pit fluids, drilling muds and cuttings, and domestic wastewater, including, in accordance with applicable Federal and State environmental laws (including regulations)—

(A)

preparation of an annual waste management report;

(B)

development and implementation of a hazardous materials tracking system; and

(C)

prohibition on the use of chlorinated solvents;

(7)

fuel storage and oil spill contingency planning;

(8)

conduct of periodic field crew environmental briefings;

(9)

avoidance of significant adverse effects on subsistence hunting, fishing, and trapping;

(10)

compliance with applicable air and water quality standards;

(11)

appropriate seasonal and safety zone designations around well sites, within which subsistence hunting and trapping shall be limited; and

(12)

development and implementation of such other protective environmental requirements, restrictions, terms, or conditions as the Secretary, after consultation with the State of Alaska, North Slope Borough, Alaska, and the City of Kaktovik, Alaska, determines to be necessary.

(e)

Considerations

In preparing and issuing regulations, lease terms, conditions, restrictions, prohibitions, or stipulations under this section, the Secretary shall take into consideration—

(1)

the stipulations and conditions that govern the National Petroleum Reserve-Alaska leasing program, as set forth in the 1999 Northeast National Petroleum Reserve-Alaska Final Integrated Activity Plan/Environmental Impact Statement;

(2)

the environmental protection standards that governed the initial Coastal Plain seismic exploration program under parts 37.31 through 37.33 of title 50, Code of Federal Regulations (or successor regulations); and

(3)

the land use stipulations for exploratory drilling on the KIC–ASRC private land described in Appendix 2 of the agreement between Arctic Slope Regional Corporation and the United States dated August 9, 1983.

(f)

Facility consolidation planning

(1)

In general

After providing for public notice and comment, the Secretary shall prepare and periodically update a plan to govern, guide, and direct the siting and construction of facilities for the exploration, development, production, and transportation of oil and gas resources from the Coastal Plain.

(2)

Objectives

The objectives of the plan shall be—

(A)

the avoidance of unnecessary duplication of facilities and activities;

(B)

the encouragement of consolidation of common facilities and activities;

(C)

the location or confinement of facilities and activities to areas that will minimize impact on fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment;

(D)

the use of existing facilities, to the maximum extent practicable; and

(E)

the enhancement of compatibility between wildlife values and development activities.

(g)

Access to public land

The Secretary shall—

(1)

manage public land in the Coastal Plain in accordance with subsections (a) and (b) of section 811 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3121); and

(2)

ensure that local residents shall have reasonable access to public land in the Coastal Plain for traditional uses.

117.

Expedited judicial review

(a)

Filing of complaints

(1)

Deadline

A complaint seeking judicial review of a provision of this subtitle or an action of the Secretary under this subtitle shall be filed—

(A)

except as provided in subparagraph (B), during the 90-day period beginning on the date on which the action being challenged was carried out; or

(B)

in the case of a complaint based solely on grounds arising after the 90-day period described in subparagraph (A), during the 90-day period beginning on the date on which the complainant knew or reasonably should have known about the grounds for the complaint.

(2)

Venue

A complaint seeking judicial review of a provision of this subtitle or an action of the Secretary under this subtitle shall be filed in the United States Court of Appeals for the District of Columbia.

(3)

Scope

(A)

In general

Judicial review of a decision of the Secretary under this subtitle (including an environmental analysis of such a lease sale) shall be—

(i)

limited to a review of whether the decision is in accordance with this subtitle; and

(ii)

based on the administrative record of the decision.

(B)

Presumptions

Any identification by the Secretary of a preferred course of action relating to a lease sale, and any analysis by the Secretary of environmental effects, under this subtitle shall be presumed to be correct unless proven otherwise by clear and convincing evidence.

(b)

Limitation on other review

Any action of the Secretary that is subject to judicial review under this section shall not be subject to judicial review in any civil or criminal proceeding for enforcement.

118.

Rights-of-way and easements across Coastal Plain

For purposes of section 1102(4)(A) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), any rights-of-way or easements across the Coastal Plain for the exploration, development, production, or transportation of oil and gas shall be considered to be established incident to the management of the Coastal Plain under this section.

119.

Conveyance

Notwithstanding section 1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to remove any cloud on title to land, and to clarify land ownership patterns in the Coastal Plain, the Secretary shall—

(1)

to the extent necessary to fulfill the entitlement of the Kaktovik Inupiat Corporation under sections 12 and 14 of the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613), as determined by the Secretary, convey to that Corporation the surface estate of the land described in paragraph (1) of Public Land Order 6959, in accordance with the terms and conditions of the agreement between the Secretary, the United States Fish and Wildlife Service, the Bureau of Land Management, and the Kaktovik Inupiat Corporation, dated January 22, 1993; and

(2)

convey to the Arctic Slope Regional Corporation the remaining subsurface estate to which that Corporation is entitled under the agreement between that corporation and the United States, dated August 9, 1983.

120.

Local government impact aid and community service assistance

(a)

Establishment of Fund

(1)

In general

As a condition on the receipt of funds under section 122(2), the State of Alaska shall establish in the treasury of the State, and administer in accordance with this section, a fund to be known as the Coastal Plain Local Government Impact Aid Assistance Fund (referred to in this section as the Fund).

(2)

Deposits

Subject to paragraph (1), the Secretary of the Treasury shall deposit into the Fund, $35,000,000 each year from the amount available under section 122(2)(A).

(3)

Investment

The Governor of the State of Alaska (referred to in this section as the Governor) shall invest amounts in the Fund in interest-bearing securities of the United States or the State of Alaska.

(b)

Assistance

The Governor, in cooperation with the Mayor of the North Slope Borough, shall use amounts in the Fund to provide assistance to North Slope Borough, Alaska, the City of Kaktovik, Alaska, and any other borough, municipal subdivision, village, or other community in the State of Alaska that is directly impacted by exploration for, or the production of, oil or gas on the Coastal Plain under this subtitle, or any Alaska Native Regional Corporation acting on behalf of the villages and communities within its region whose lands lie along the right of way of the Trans Alaska Pipeline System, as determined by the Governor.

(c)

Application

(1)

In general

To receive assistance under subsection (b), a community or Regional Corporation described in that subsection shall submit to the Governor, or to the Mayor of the North Slope Borough, an application in such time, in such manner, and containing such information as the Governor may require.

(2)

Action by North Slope Borough

The Mayor of the North Slope Borough shall submit to the Governor each application received under paragraph (1) as soon as practicable after the date on which the application is received.

(3)

Assistance of Governor

The Governor shall assist communities in submitting applications under this subsection, to the maximum extent practicable.

(d)

Use of funds

A community or Regional Corporation that receives funds under subsection (b) may use the funds—

(1)

to plan for mitigation, implement a mitigation plan, or maintain a mitigation project to address the potential effects of oil and gas exploration and development on environmental, social, cultural, recreational, and subsistence resources of the community;

(2)

to develop, carry out, and maintain—

(A)

a project to provide new or expanded public facilities; or

(B)

services to address the needs and problems associated with the effects described in paragraph (1), including firefighting, police, water and waste treatment, first responder, and other medical services;

(3)

to compensate residents of the Coastal Plain for significant damage to environmental, social, cultural, recreational, or subsistence resources; and

(4)

in the City of Kaktovik, Alaska—

(A)

to develop a mechanism for providing members of the Kaktovikmiut Inupiat community an opportunity to—

(i)

monitor development on the Coastal Plain; and

(ii)

provide information and recommendations to the Governor based on traditional aboriginal knowledge of the natural resources, flora, fauna, and ecological processes of the Coastal Plain; and

(B)

to establish a local coordination office, to be managed by the Mayor of the North Slope Borough, in coordination with the City of Kaktovik, Alaska—

(i)

to coordinate with and advise developers on local conditions and the history of areas affected by development;

(ii)

to provide to the Committee on Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate annual reports on the status of the coordination between developers and communities affected by development;

(iii)

to collect from residents of the Coastal Plain information regarding the impacts of development on fish, wildlife, habitats, subsistence resources, and the environment of the Coastal Plain; and

(iv)

to ensure that the information collected under clause (iii) is submitted to—

(I)

developers; and

(II)

any appropriate Federal agency.

121.

Prohibition on exports

An oil or gas lease issued under this subtitle shall prohibit the exportation of oil or gas produced under the lease.

122.

Allocation of revenues

Notwithstanding the Mineral Leasing Act (30 U.S.C. 181 et seq.) or any other provision of law, of the adjusted bonus, rental, and royalty receipts from Federal oil and gas leasing and operations authorized under this subtitle—

(1)

50 percent shall be deposited in the general fund of the Treasury;

(2)

30 percent in the Renewable Energy Transition Trust Fund established by section 161; and

(3)

of the remaining amounts—

(A)

$35,000,000 shall be deposited by the Secretary of the Treasury into the fund created under section 120(a)(1); and

(B)

the remainder shall be disbursed to the State of Alaska.

C

Permitting

131.

Refinery permitting process

(a)

Definitions

In this section:

(1)

Administrator

The term Administrator means the Administrator of the Environmental Protection Agency.

(2)

Indian tribe

The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

(3)

Permit

The term permit means any permit, license, approval, variance, or other form of authorization that a refiner is required to obtain—

(A)

under any Federal law; or

(B)

from a State or Indian tribal government agency delegated authority by the Federal Government, or authorized under Federal law, to issue permits.

(4)

Refiner

The term refiner means a person that—

(A)

owns or operates a refinery; or

(B)

seeks to become an owner or operator of a refinery.

(5)

Refinery

(A)

In general

The term refinery means—

(i)

a facility at which crude oil is refined into transportation fuel or other petroleum products; and

(ii)

a coal liquification or coal-to-liquid facility at which coal is processed into synthetic crude oil or any other fuel.

(B)

Inclusions

The term refinery includes an expansion of a refinery.

(6)

Refinery expansion

The term refinery expansion means a physical change in a refinery that results in an increase in the capacity of the refinery.

(7)

Refinery permitting agreement

The term refinery permitting agreement means an agreement entered into between the Administrator and a State or Indian tribe under subsection (b).

(8)

Secretary

The term Secretary means the Secretary of Commerce.

(9)

State

The term State means—

(A)

a State;

(B)

the District of Columbia;

(C)

the Commonwealth of Puerto Rico; and

(D)

any other territory or possession of the United States.

(b)

Streamlining of refinery permitting process

(1)

In general

At the request of the Governor of a State or the governing body of an Indian tribe, the Administrator shall enter into a refinery permitting agreement with the State or Indian tribe under which the process for obtaining all permits necessary for the construction and operation of a refinery shall be streamlined using a systematic interdisciplinary multimedia approach as provided in this section.

(2)

Authority of Administrator

Under a refinery permitting agreement—

(A)

the Administrator shall have authority, as applicable and necessary, to—

(i)

accept from a refiner a consolidated application for all permits that the refiner is required to obtain to construct and operate a refinery;

(ii)

in consultation and cooperation with each Federal, State, or Indian tribal government agency that is required to make any determination to authorize the issuance of a permit, establish a schedule under which each agency shall—

(I)

concurrently consider, to the maximum extent practicable, each determination to be made; and

(II)

complete each step in the permitting process; and

(iii)

issue a consolidated permit that combines all permits issued under the schedule established under clause (ii); and

(B)

the Administrator shall provide to State and Indian tribal government agencies—

(i)

financial assistance in such amounts as the agencies reasonably require to hire such additional personnel as are necessary to enable the Government agencies to comply with the applicable schedule established under subparagraph (A)(ii); and

(ii)

technical, legal, and other assistance in complying with the refinery permitting agreement.

(3)

Agreement by the State

Under a refinery permitting agreement, a State or governing body of an Indian tribe shall agree that—

(A)

the Administrator shall have each of the authorities described in paragraph (2); and

(B)

each State or Indian tribal government agency shall—

(i)

in accordance with State law, make such structural and operational changes in the agencies as are necessary to enable the agencies to carry out consolidated project-wide permit reviews concurrently and in coordination with the Environmental Protection Agency and other Federal agencies; and

(ii)

comply, to the maximum extent practicable, with the applicable schedule established under paragraph (2)(A)(ii).

(4)

Deadlines

(A)

New refineries

In the case of a consolidated permit for the construction of a new refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than—

(i)

360 days after the date of the receipt of the administratively complete application for the consolidated permit; or

(ii)

on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 90 days after the expiration of the deadline established under clause (i).

(B)

Expansion of existing refineries

In the case of a consolidated permit for the expansion of an existing refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than—

(i)

120 days after the date of the receipt of the administratively complete application for the consolidated permit; or

(ii)

on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 30 days after the expiration of the deadline established under clause (i).

(5)

Federal agencies

Each Federal agency that is required to make any determination to authorize the issuance of a permit shall comply with the applicable schedule established under paragraph (2)(A)(ii).

(6)

Judicial review

Any civil action for review of any permit determination under a refinery permitting agreement shall be brought exclusively in the United States district court for the district in which the refinery is located or proposed to be located.

(7)

Efficient permit review

In order to reduce the duplication of procedures, the Administrator shall use State permitting and monitoring procedures to satisfy substantially equivalent Federal requirements under this title.

(8)

Severability

If 1 or more permits that are required for the construction or operation of a refinery are not approved on or before any deadline established under paragraph (4), the Administrator may issue a consolidated permit that combines all other permits that the refiner is required to obtain other than any permits that are not approved.

(9)

Savings

Nothing in this subsection affects the operation or implementation of otherwise applicable law regarding permits necessary for the construction and operation of a refinery.

(10)

Consultation with local governments

Congress encourages the Administrator, States, and tribal governments to consult, to the maximum extent practicable, with local governments in carrying out this subsection.

(11)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this subsection.

(12)

Effect on local authority

Nothing in this subsection affects—

(A)

the authority of a local government with respect to the issuance of permits; or

(B)

any requirement or ordinance of a local government (such as a zoning regulation).

(c)

Fischer-Tropsch fuels

(1)

In general

In cooperation with the Secretary of Energy, the Secretary of Defense, the Administrator of the Federal Aviation Administration, Secretary of Health and Human Services, and Fischer-Tropsch industry representatives, the Administrator shall—

(A)

conduct a research and demonstration program to evaluate the air quality benefits of ultra-clean Fischer-Tropsch transportation fuel, including diesel and jet fuel;

(B)

evaluate the use of ultra-clean Fischer-Tropsch transportation fuel as a mechanism for reducing engine exhaust emissions; and

(C)

submit recommendations to Congress on the most effective use and associated benefits of these ultra-clean fuel for reducing public exposure to exhaust emissions.

(2)

Guidance and technical support

The Administrator shall, to the extent necessary, issue any guidance or technical support documents that would facilitate the effective use and associated benefit of Fischer-Tropsch fuel and blends.

(3)

Requirements

The program described in paragraph (1) shall consider—

(A)

the use of neat (100 percent) Fischer-Tropsch fuel and blends with conventional crude oil-derived fuel for heavy-duty and light-duty diesel engines and the aviation sector; and

(B)

the production costs associated with domestic production of those ultra clean fuel and prices for consumers.

(4)

Reports

The Administrator shall submit to the Committee on Environment and Public Works and the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives—

(A)

not later than 1 year, an interim report on actions taken to carry out this subsection; and

(B)

not later than 2 years, a final report on actions taken to carry out this subsection.

D

Strategic Petroleum Reserve

141.

Suspension of petroleum acquisition for Strategic Petroleum Reserve

(a)

In general

Except as provided in subsection (b) and notwithstanding any other provision of law, during the 180-day period beginning on the date of enactment of this Act—

(1)

the Secretary of the Interior shall suspend acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program; and

(2)

the Secretary of Energy shall suspend acquisition of petroleum for the Strategic Petroleum Reserve through any other acquisition method.

(b)

Resumption

Effective beginning on the day after the end of the period described in subsection (a)—

(1)

the Secretary of the Interior may resume acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program; and

(2)

the Secretary of Energy may resume acquisition of petroleum for the Strategic Petroleum Reserve through any other acquisition method.

E

Restoration of State revenue

151.

Restoration of State revenue

The matter under the heading administrative provisions under the heading Minerals Management Service of title I of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110–161; 121 Stat. 2109) is amended by striking Notwithstanding and all that follows through Treasury..

F

Renewable Energy Transition Trust Fund

161.

Renewable Energy Transition Trust Fund

(a)

Establishment

There is established in the Treasury a separate account which shall be known as the Renewable Energy Transition Trust Fund (in this section referred to as the Trust Fund).

(b)

Contents

The Trust Fund shall consist of such amounts as are deposited in the Trust Fund under any other provisions of law.

(c)

Use

Amounts in the Trust Fund shall be available to the Secretary to provide competitive grants for research and development of commercially viable energy production from renewable sources, including for wind, solar, hydro, geothermal, biomass, tidal, and other advanced renewable energy technologies as determined by the Secretary.

II

Alternative resources

A

Renewable fuel and advanced energy technology

201.

Definition of renewable biomass

Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) is amended by striking subparagraph (I) and inserting the following:

(I)

Renewable biomass

The term renewable biomass means—

(i)

nonmerchantable materials or precommercial thinnings that—

(I)

are byproducts of preventive treatments, such as trees, wood, brush, thinnings, chips, and slash, that are removed—

(aa)

to reduce hazardous fuels;

(bb)

to reduce or contain disease or insect infestation; or

(cc)

to restore forest health;

(II)

would not otherwise be used for higher-value products; and

(III)

are harvested from National Forest System land or public land (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702))—

(aa)

where permitted by law; and

(bb)

in accordance with applicable land management plans and the requirements for old-growth maintenance, restoration, and management direction of paragraphs (2), (3), and (4) of subsection (e) and the requirements for large-tree retention of subsection (f) of section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512); or

(ii)

any organic matter that is available on a renewable or recurring basis from non-Federal land or from land belonging to an Indian tribe, or an Indian individual, that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including—

(I)

renewable plant material, including—

(aa)

feed grains;

(bb)

other agricultural commodities;

(cc)

other plants and trees; and

(dd)

algae; and

(II)

waste material, including—

(aa)

crop residue;

(bb)

other vegetative waste material (including wood waste and wood residues);

(cc)

animal waste and byproducts (including fats, oils, greases, and manure); and

(dd)

food waste and yard waste.

.

202.

Advanced battery manufacturing incentive program

(a)

Definitions

In this section:

(1)

Advanced battery

The term advanced battery means an electrical storage device suitable for vehicle applications.

(2)

Engineering integration costs

The term engineering integration costs includes the cost of engineering tasks relating to—

(A)

incorporation of qualifying components into the design of advanced batteries; and

(B)

design of tooling and equipment and developing manufacturing processes and material suppliers for production facilities that produce qualifying components or advanced batteries.

(b)

Advanced battery manufacturing facility

The Secretary shall provide facility funding awards under this section to advanced battery manufacturers to pay not more than 30 percent of the cost of reequipping, expanding, or establishing a manufacturing facility in the United States to produce advanced batteries.

(c)

Period of availability

An award under subsection (b) shall apply to—

(1)

facilities and equipment placed in service before December 30, 2020; and

(2)

engineering integration costs incurred during the period beginning on the date of enactment of this Act and ending on December 30, 2020.

(d)

Direct loan program

(1)

In general

Not later than 1 year after the date of enactment of this Act, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $25,000,000 in loans to eligible individuals and entities (as determined by the Secretary) for the costs of activities described in subsection (b).

(2)

Selection of eligible projects

The Secretary shall select eligible projects to receive loans under this subsection in cases in which, as determined by the Secretary, the award recipient—

(A)

is financially viable without the receipt of additional Federal funding associated with the proposed project;

(B)

will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and

(C)

has met such other criteria as may be established and published by the Secretary.

(3)

Rates, terms, and repayment of loans

A loan provided under this subsection—

(A)

shall have an interest rate that, as of the date on which the loan is made, is equal to the cost of funds to the Department of the Treasury for obligations of comparable maturity;

(B)

shall have a term equal to the lesser of—

(i)

the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; and

(ii)

25 years;

(C)

may be subject to a deferral in repayment for not more than 5 years after the date on which the eligible project carried out using funds from the loan first begins operations, as determined by the Secretary; and

(D)

shall be made by the Federal Financing Bank.

(e)

Fees

The cost of administering a loan made under this section shall not exceed $100,000.

(f)

Set aside for small manufacturers

(1)

Definition of covered firm

In this subsection, the term covered firm means a firm that—

(A)

employs fewer than 500 individuals; and

(B)

manufactures automobiles or components of automobiles.

(2)

Set aside

Of the amount of funds used to provide awards for each fiscal year under subsection (b), the Secretary shall use not less than 10 percent to provide awards to covered firms or consortia led by a covered firm.

(g)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2009 through 2013.

203.

Biofuels infrastructure and additives research and development

(a)

In general

The Assistant Administrator of the Office of Research and Development of the Environmental Protection Agency (referred to in this section as the Assistant Administrator), in consultation with the Secretary and the National Institute of Standards and Technology, shall carry out a program of research and development of materials to be added to biofuels to make the biofuels more compatible with infrastructure used to store and deliver petroleum-based fuels to the point of final sale.

(b)

Requirements

In carrying out the program described in subsection (a), the Assistant Administrator shall address—

(1)

materials to prevent or mitigate—

(A)

corrosion of metal, plastic, rubber, cork, fiberglass, glues, or any other material used in pipes and storage tanks;

(B)

dissolving of storage tank sediments;

(C)

clogging of filters;

(D)

contamination from water or other adulterants or pollutants;

(E)

poor flow properties relating to low temperatures;

(F)

oxidative and thermal instability in long-term storage and use; and

(G)

microbial contamination;

(2)

problems associated with electrical conductivity;

(3)

alternatives to conventional methods for refurbishment and cleaning of gasoline and diesel tanks, including tank lining applications;

(4)

strategies to minimize emissions from infrastructure;

(5)

issues with respect to certification by a nationally recognized testing laboratory of components for fuel-dispensing devises that specifically reference compatibility with alcohol-blended fuels and other biofuels that contain greater than 15 percent alcohol;

(6)

challenges for design, reforming, storage, handling, and dispensing hydrogen fuel from various feedstocks, including biomass, from neighborhood fueling stations, including codes and standards development necessary beyond that carried out under section 809 of the Energy Policy Act of 2005 (42 U.S.C. 16158);

(7)

issues with respect to at which point in the fuel supply chain additives optimally should be added to fuels; and

(8)

other problems, as identified by the Assistant Administrator, in consultation with the Secretary and the National Institute of Standards and Technology.

204.

Study of increased consumption of ethanol-blended gasoline with higher levels of ethanol

(a)

In general

The Secretary, in cooperation with the Secretary of Agriculture, the Administrator of the Environmental Protection Agency, and the Secretary of Transportation, and after providing notice and an opportunity for public comment, shall conduct a study of the feasibility of increasing consumption in the United States of ethanol-blended gasoline with levels of ethanol that are not less than 10 percent and not more than 40 percent.

(b)

Study

The study under subsection (a) shall include—

(1)

a review of production and infrastructure constraints on increasing consumption of ethanol;

(2)

an evaluation of the economic, market, and energy-related impacts of State and regional differences in ethanol blends;

(3)

an evaluation of the economic, market, and energy-related impacts on gasoline retailers and consumers of separate and distinctly labeled fuel storage facilities and dispensers;

(4)

an evaluation of the environmental impacts of mid-level ethanol blends on evaporative and exhaust emissions from on-road, off-road, and marine engines, recreational boats, vehicles, and equipment;

(5)

an evaluation of the impacts of mid-level ethanol blends on the operation, durability, and performance of on-road, off-road, and marine engines, recreational boats, vehicles, and equipment;

(6)

an evaluation of the safety impacts of mid-level ethanol blends on consumers that own and operate off-road and marine engines, recreational boats, vehicles, or equipment; and

(7)

an evaluation of the impacts of increased use of renewable fuels derived from food crops on the price and supply of agricultural commodities in both domestic and global markets.

(c)

Report

Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the results of the study conducted under this section.

205.

Study of diesel vehicle attributes

(a)

In general

The Secretary, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, shall conduct a study to identify—

(1)

the environmental and efficiency attributes of diesel-fueled vehicles as the vehicles compare to comparable gasoline fueled, E–85 fueled, and hybrid vehicles;

(2)

the technical, economic, regulatory, environmental, and other obstacles to increasing the usage of diesel-fueled vehicles;

(3)

the legislative, administrative, and other actions that could reduce or eliminate the obstacles identified under paragraph (2); and

(4)

the costs and benefits associated with reducing or eliminating the obstacles identified under paragraph (2).

(b)

Report

Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the results of the study conducted under subsection (a).

(c)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section.

B

Clean coal-derived fuels for energy security

211.

Short title

This subtitle may be cited as the Clean Coal-Derived Fuels for Energy Security Act of 2008.

212.

Definitions

In this subtitle:

(1)

Clean coal-derived fuel

(A)

In general

The term clean coal-derived fuel means aviation fuel, motor vehicle fuel, home heating oil, or boiler fuel that is—

(i)

substantially derived from the coal resources of the United States; and

(ii)

refined or otherwise processed at a facility located in the United States that captures up to 100 percent of the carbon dioxide emissions that would otherwise be released at the facility.

(B)

Inclusions

The term clean coal-derived fuel may include any other resource that is extracted, grown, produced, or recovered in the United States.

(2)

Covered fuel

The term covered fuel means—

(A)

aviation fuel;

(B)

motor vehicle fuel;

(C)

home heating oil; and

(D)

boiler fuel.

(3)

Small refinery

The term small refinery means a refinery for which the average aggregate daily crude oil throughput for a calendar year (as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000 barrels.

213.

Clean coal-derived fuel program

(a)

Program

(1)

In general

Not later than 1 year after the date of enactment of this Act, the President shall promulgate regulations to ensure that covered fuel sold or introduced into commerce in the United States (except in noncontiguous States or territories), on an annual average basis, contains the applicable volume of clean coal-derived fuel determined in accordance with paragraph (4).

(2)

Provisions of regulations

Regardless of the date of promulgation, the regulations promulgated under paragraph (1)—

(A)

shall contain compliance provisions applicable to refineries, blenders, distributors, and importers, as appropriate, to ensure that—

(i)

the requirements of this subsection are met; and

(ii)

clean coal-derived fuels produced from facilities for the purpose of compliance with this subtitle result in life cycle greenhouse gas emissions that are not greater than gasoline; and

(B)

shall not—

(i)

restrict geographic areas in the contiguous United States in which clean coal-derived fuel may be used; or

(ii)

impose any per-gallon obligation for the use of clean coal-derived fuel.

(3)

Relationship to other regulations

Regulations promulgated under this paragraph shall, to the maximum extent practicable, incorporate the program structure, compliance and reporting requirements established under the final regulations promulgated to implement the renewable fuel program established by the amendment made by section 1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 1067).

(4)

Applicable volume

(A)

Calendar years 2015 through 2022

For the purpose of this subsection, the applicable volume for any of calendar years 2015 through 2022 shall be determined in accordance with the following table:

Applicable volume of clean
coal-derived fuel
Calendar year:(in billions of gallons):
20150.75
20161.5
20172.25
20183.00
20193.75
20204.5
20215.25
20226.0.
(B)

Calendar year 2023 and thereafter

Subject to subparagraph (C), for the purposes of this subsection, the applicable volume for calendar year 2023 and each calendar year thereafter shall be determined by the President, in coordination with the Secretary and the Administrator of the Environmental Protection Agency, based on a review of the implementation of the program during calendar years 2015 through 2022, including a review of—

(i)

the impact of clean coal-derived fuels on the energy security of the United States;

(ii)

the expected annual rate of future production of clean coal-derived fuels; and

(iii)

the impact of the use of clean coal-derived fuels on other factors, including job creation, rural economic development, and the environment.

(C)

Minimum applicable volume

For the purpose of this subsection, the applicable volume for calendar year 2023 and each calendar year thereafter shall be equal to the product obtained by multiplying—

(i)

the number of gallons of covered fuel that the President estimates will be sold or introduced into commerce in the calendar year; and

(ii)

the ratio that—

(I)

6,000,000,000 gallons of clean coal-derived fuel; bears to

(II)

the number of gallons of covered fuel sold or introduced into commerce in calendar year 2022.

(b)

Applicable percentages

(1)

Provision of estimate of volumes of certain fuel sales

Not later than October 31 of each of calendar years 2015 through 2021, the Administrator of the Energy Information Administration shall provide to the President an estimate, with respect to the following calendar year, of the volumes of covered fuel projected to be sold or introduced into commerce in the United States.

(2)

Determination of applicable percentages

(A)

In general

Not later than November 30 of each of calendar years 2015 through 2022, based on the estimate provided under paragraph (1), the President shall determine and publish in the Federal Register, with respect to the following calendar year, the clean coal-derived fuel obligation that ensures that the requirements of subsection (a) are met.

(B)

Required elements

The clean coal-derived fuel obligation determined for a calendar year under subparagraph (A) shall—

(i)

be applicable to refineries, blenders, and importers, as appropriate;

(ii)

be expressed in terms of a volume percentage of covered fuel sold or introduced into commerce in the United States; and

(iii)

subject to paragraph (3)(A), consist of a single applicable percentage that applies to all categories of persons specified in clause (i).

(3)

Adjustments

In determining the applicable percentage for a calendar year, the President shall make adjustments—

(A)

to prevent the imposition of redundant obligations on any person specified in paragraph (2)(B)(i); and

(B)

to account for the use of clean coal-derived fuel during the previous calendar year by small refineries that are exempt under subsection (f).

(c)

Volume conversion factors for clean coal-derived fuels based on energy content

(1)

In general

For the purpose of subsection (a), the President shall assign values to specific types of clean coal-derived fuel for the purpose of satisfying the fuel volume requirements of subsection (a)(4) in accordance with this subsection.

(2)

Energy content relative to diesel fuel

For clean coal-derived fuels, 1 gallon of the clean coal-derived fuel shall be considered to be the equivalent of 1 gallon of diesel fuel multiplied by the ratio that—

(A)

the number of British thermal units of energy produced by the combustion of 1 gallon of the clean coal-derived fuel (as measured under conditions determined by the Secretary); bears to

(B)

the number of British thermal units of energy produced by the combustion of 1 gallon of diesel fuel (as measured under conditions determined by the Secretary to be comparable to conditions described in subparagraph (A)).

(d)

Credit program

(1)

In general

The President, in consultation with the Secretary and the clean coal-derived fuel requirement of this section.

(2)

Market transparency

In carrying out the credit program under this subsection, the President shall facilitate price transparency in markets for the sale and trade of credits, with due regard for the public interest, the integrity of those markets, fair competition, and the protection of consumers.

(e)

Waivers

(1)

In general

The President, in consultation with the Secretary and the Administrator of the Environmental Protection Agency, may waive the requirements of subsection (a) in whole or in part on petition by 1 or more States by reducing the national quantity of clean coal-derived fuel required under subsection (a), based on a determination by the President (after public notice and opportunity for comment), that—

(A)

implementation of the requirement would severely harm the economy or environment of a State, a region, or the United States; or

(B)

extreme and unusual circumstances exist that prevent distribution of an adequate supply of domestically produced clean coal-derived fuel to consumers in the United States.

(2)

Petitions for waivers

The President, in consultation with the Secretary and the Administrator of the Environmental Protection Agency, shall approve or disapprove a State petition for a waiver of the requirements of subsection (a) within 90 days after the date on which the petition is received by the President.

(3)

Termination of waivers

A waiver granted under paragraph (1) shall terminate after 1 year, but may be renewed by the President after consultation with the Secretary and the Administrator of the Environmental Protection Agency.

(f)

Small refineries

(1)

Temporary exemption

(A)

In general

The requirements of subsection (a) shall not apply to small refineries until calendar year 2018.

(B)

Extension of exemption

(i)

Study by Secretary

Not later than December 31, 2013, the Secretary shall submit to the President and Congress a report describing the results of a study to determine whether compliance with the requirements of subsection (a) would impose a disproportionate economic hardship on small refineries.

(ii)

Extension of exemption

In the case of a small refinery that the Secretary determines under clause (i) would be subject to a disproportionate economic hardship if required to comply with subsection (a), the President shall extend the exemption under subparagraph (A) for the small refinery for a period of not less than 2 additional years.

(2)

Petitions based on disproportionate economic hardship

(A)

Extension of exemption

A small refinery may at any time petition the President for an extension of the exemption under paragraph (1) for the reason of disproportionate economic hardship.

(B)

Evaluation of petitions

In evaluating a petition under subparagraph (A), the President, in consultation with the Secretary, shall consider the findings of the study under paragraph (1)(B) and other economic factors.

(C)

Deadline for action on petitions

The President shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the date of receipt of the petition.

(3)

Opt-in for small refineries

A small refinery shall be subject to the requirements of subsection (a) if the small refinery notifies the President that the small refinery waives the exemption under paragraph (1).

(g)

Penalties and enforcement

(1)

Civil penalties

(A)

In general

Any person that violates a regulation promulgated under subsection (a), or that fails to furnish any information required under such a regulation, shall be liable to the United States for a civil penalty of not more than the total of—

(i)

$25,000 for each day of the violation; and

(ii)

the amount of economic benefit or savings received by the person resulting from the violation, as determined by the President.

(B)

Collection

Civil penalties under subparagraph (A) shall be assessed by, and collected in a civil action brought by, the Secretary or such other officer of the United States as is designated by the President.

(2)

Injunctive authority

(A)

In general

The district courts of the United States shall have jurisdiction to—

(i)

restrain a violation of a regulation promulgated under subsection (a);

(ii)

award other appropriate relief; and

(iii)

compel the furnishing of information required under the regulation.

(B)

Actions

An action to restrain such violations and compel such actions shall be brought by and in the name of the United States.

(C)

Subpoenas

In the action, a subpoena for a witness who is required to attend a district court in any district may apply in any other district.

(h)

Effective date

Except as otherwise specifically provided in this section, this section takes effect on January 1, 2016.

C

Oil shale

221.

Removal of prohibition on final regulations for commercial leasing program for oil shale resources on public land

Section 433 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110–161; 121 Stat. 2152) is repealed.

D

Department of Defense facilitation of secure domestic fuel development

231.

Procurement and acquisition of alternative fuels

Section 526 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17142) is repealed.

232.

Multiyear contract authority for the Department of Defense for the procurement of synthetic fuels

(a)

Multiyear contracts for the procurement of synthetic fuels authorized

(1)

In general

Chapter 141 of title 10, United States Code, is amended by adding at the end the following new section:

2410r.

Multiyear contract authority: purchase of synthetic fuels

(a)

Multiyear contracts authorized

The head of an agency may enter into contracts for a period not to exceed 25 years for the purchase of synthetic fuels.

(b)

Definitions

In this section:

(1)

The term head of an agency has the meaning given that term in section 2302(1) of this title.

(2)

The term synthetic fuel means any liquid, gas, or combination thereof that—

(A)

can be used as a substitute for petroleum or natural gas (or any derivative thereof, including chemical feedstocks); and

(B)

is produced by chemical or physical transformation of domestic sources of energy.

.

(2)

Clerical amendment

The table of sections at the beginning of chapter 141 of such title is amended by adding at the end the following new item:

2410r. Multiyear contract authority: purchase of synthetic fuels.

.

(b)

Regulations

Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall prescribe regulations providing that the head of an agency may initiate a multiyear contract as authorized by section 2410r of title 10, United States Code (as added by subsection (a)), only if the head of the agency has determined in writing that—

(1)

there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation;

(2)

the technical risks associated with the technologies for the production of synthetic fuel under the contract are not excessive; and

(3)

the contract will contain appropriate pricing mechanisms to minimize risk to the Government from significant changes in market prices for energy.

(c)

Limitation on use of authority

No contract may be entered into under the authority in section 2410r of title 10, United States Code (as so added), until the regulations required by subsection (b) are prescribed.

III

Miscellaneous

301.

Limitation on sales of defense articles and defense services to the Kingdom of Saudi Arabia

(a)

Limitation

The issuance of any letter of offer with respect to a proposed sale of defense articles and defense services to the Kingdom of Saudi Arabia is hereby prohibited unless the President determines and certifies to Congress that the Kingdom of Saudi Arabia has increased its oil production to at least 10,000,000 barrels of oil per day, and has maintained such level of production.

(b)

Waiver

The President may, on a case by case basis, waive the application of subsection (a) with respect to a proposed sale of defense articles and defense services if the President determines and certifies to Congress that the waiver is vital to the national security interests of the United States or the national security interests of a United States ally.

(c)

Definitions

In this section, the terms defense article and defense service have the meaning given such terms in section 47 of the Arms Export Control Act (22 U.S.C. 2794 note).

302.

Extension and modification of renewable energy production tax credit

(a)

Extension of credit

Each of the following provisions of section 45(d) of the Internal Revenue Code of 1986 (relating to qualified facilities) is amended by striking January 1, 2009 and inserting January 1, 2010:

(1)

Paragraph (1).

(2)

Clauses (i) and (ii) of paragraph (2)(A).

(3)

Clauses (i)(I) and (ii) of paragraph (3)(A).

(4)

Paragraph (4).

(5)

Paragraph (5).

(6)

Paragraph (6).

(7)

Paragraph (7).

(8)

Paragraph (8).

(9)

Subparagraphs (A) and (B) of paragraph (9).

(b)

Production credit for electricity produced from marine renewables

(1)

In general

Paragraph (1) of section 45(c) of such Code (relating to resources) is amended by striking and at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting , and, and by adding at the end the following new subparagraph:

(I)

marine and hydrokinetic renewable energy.

.

(2)

Marine renewables

Subsection (c) of section 45 of such Code is amended by adding at the end the following new paragraph:

(10)

Marine and hydrokinetic renewable energy

(A)

In general

The term marine and hydrokinetic renewable energy means energy derived from—

(i)

waves, tides, and currents in oceans, estuaries, and tidal areas,

(ii)

free flowing water in rivers, lakes, and streams,

(iii)

free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or

(iv)

differentials in ocean temperature (ocean thermal energy conversion).

(B)

Exceptions

Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.

.

(3)

Definition of facility

Subsection (d) of section 45 of such Code is amended by adding at the end the following new paragraph:

(11)

Marine and hydrokinetic renewable energy facilities

In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term qualified facility means any facility owned by the taxpayer—

(A)

which has a nameplate capacity rating of at least 150 kilowatts, and

(B)

which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2010.

.

(4)

Credit rate

Subparagraph (A) of section 45(b)(4) of such Code is amended by striking or (9) and inserting (9), or (11).

(5)

Coordination with small irrigation power

Paragraph (5) of section 45(d) of such Code, as amended by subsection (a), is amended by striking January 1, 2010 and inserting the date of the enactment of paragraph (11).

(c)

Sales of electricity to regulated public utilities treated as sales to unrelated persons

Section 45(e)(4) of such Code (relating to related persons) is amended by adding at the end the following new sentence: A taxpayer shall be treated as selling electricity to an unrelated person if such electricity is sold to a regulated public utility (as defined in section 7701(a)(33)..

(d)

Trash facility clarification

Paragraph (7) of section 45(d) of such Code is amended—

(1)

by striking facility which burns and inserting facility (other than a facility described in paragraph (6)) which uses, and

(2)

by striking combustion.

(e)

Effective dates

(1)

Extension

The amendments made by subsection (a) shall apply to property originally placed in service after December 31, 2008.

(2)

Modifications

The amendments made by subsections (b) and (c) shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.

(3)

Trash facility clarification

The amendments made by subsection (d) shall apply to electricity produced and sold before, on, or after December 31, 2007.

303.

Extension and modification of solar energy and fuel cell investment tax credit

(a)

Extension of credit

(1)

Solar energy property

Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal Revenue Code of 1986 (relating to energy credit) are each amended by striking January 1, 2009 and inserting January 1, 2017.

(2)

Fuel cell property

Subparagraph (E) of section 48(c)(1) of such Code (relating to qualified fuel cell property) is amended by striking December 31, 2008 and inserting December 31, 2016.

(3)

Qualified microturbine property

Subparagraph (E) of section 48(c)(2) of such Code (relating to qualified microturbine property) is amended by striking December 31, 2008 and inserting December 31, 2016.

(b)

Allowance of energy credit against alternative minimum tax

Subparagraph (B) of section 38(c)(4) of such Code (relating to specified credits) is amended by striking and at the end of clause (iii), by striking the period at the end of clause (iv) and inserting , and, and by adding at the end the following new clause:

(v)

the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48.

.

(c)

Repeal of dollar per kilowatt limitation for fuel cell property

(1)

In general

Section 48(c)(1) of such Code (relating to qualified fuel cell), as amended by subsection (a)(2), is amended by striking subparagraph (B) and by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively.

(2)

Conforming amendment

Section 48(a)(1) of such Code is amended by striking paragraphs (1)(B) and (2)(B) of subsection (c) and inserting subsection (c)(2)(B).

(d)

Public electric utility property taken into account

(1)

In general

Paragraph (3) of section 48(a) of such Code is amended by striking the second sentence thereof.

(2)

Conforming amendments

(A)

Paragraph (1) of section 48(c) of such Code, as amended by this section, is amended by striking subparagraph (C) and redesignating subparagraph (D) as subparagraph (C).

(B)

Paragraph (2) of section 48(c) of such Code, as amended by subsection (a)(3), is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).

(e)

Effective dates

(1)

Extension

The amendments made by subsection (a) shall take effect on the date of the enactment of this Act.

(2)

Allowance against alternative minimum tax

The amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits.

(3)

Fuel cell property and public electric utility property

The amendments made by subsections (c) and (d) shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

304.

Extension and modification of residential energy efficient property credit

(a)

Extension

Section 25D(g) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2008 and inserting December 31, 2009.

(b)

No dollar limitation for credit for solar electric property

(1)

In general

Section 25D(b)(1) of such Code (relating to maximum credit) is amended by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.

(2)

Conforming amendments

Section 25D(e)(4) of such Code is amended—

(A)

by striking clause (i) in subparagraph (A),

(B)

by redesignating clauses (ii) and (iii) in subparagraph (A) as clauses (i) and (ii), respectively, and

(C)

by striking , (2), in subparagraph (C).

(c)

Credit allowed against alternative minimum tax

(1)

In general

Subsection (c) of section 25D of such Code is amended to read as follows:

(c)

Limitation based on amount of tax; carryforward of unused credit

(1)

Limitation based on amount of tax

In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of—

(A)

the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

(B)

the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.

(2)

Carryforward of unused credit

(A)

Rule for years in which all personal credits allowed against regular and alternative minimum tax

In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.

(B)

Rule for other years

In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.

.

(2)

Conforming amendments

(A)

Section 23(b)(4)(B) of such Code is amended by inserting and section 25D after this section.

(B)

Section 24(b)(3)(B) of such Code is amended by striking and 25B and inserting , 25B, and 25D.

(C)

Section 25B(g)(2) of such Code is amended by striking section 23 and inserting sections 23 and 25D.

(D)

Section 26(a)(1) of such Code is amended by striking and 25B and inserting 25B, and 25D.

(d)

Effective date

(1)

In general

The amendments made by this section shall apply to taxable years beginning after December 31, 2007.

(2)

Application of EGTRRA sunset

The amendments made by subparagraphs (A) and (B) of subsection (c)(2) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.

305.

Extension and modification of credit for clean renewable energy bonds

(a)

Extension

Section 54(m) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2008 and inserting December 31, 2009.

(b)

Increase in national limitation

Section 54(f) of such Code (relating to limitation on amount of bonds designated) is amended—

(1)

by inserting , and for the period beginning after the date of the enactment of the Clean Energy Tax Stimulus Act of 2008 and ending before January 1, 2010, $400,000,000 after $1,200,000,000 in paragraph (1),

(2)

by striking $750,000,000 of the in paragraph (2) and inserting $750,000,000 of the $1,200,000,000, and

(3)

by striking bodies in paragraph (2) and inserting bodies, and except that the Secretary may not allocate more than 1/3 of the $400,000,000 national clean renewable energy bond limitation to finance qualified projects of qualified borrowers which are public power providers nor more than 1/3 of such limitation to finance qualified projects of qualified borrowers which are mutual or cooperative electric companies described in section 501(c)(12) or section 1381(a)(2)(C).

(c)

Public power providers defined

Section 54(j) of such Code is amended—

(1)

by adding at the end the following new paragraph:

(6)

Public power provider

The term public power provider means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of the enactment of this paragraph).

, and

(2)

by inserting ; public power provider before the period at the end of the heading.

(d)

Technical amendment

The third sentence of section 54(e)(2) of such Code is amended by striking subsection (l)(6) and inserting subsection (l)(5).

(e)

Effective date

The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.

306.

Extension and modification of credit for energy efficiency improvements to existing homes

(a)

Extension of credit

Section 25C(g) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2007 and inserting December 31, 2009.

(b)

Qualified biomass fuel property

(1)

In general

Section 25C(d)(3) of such Code is amended—

(A)

by striking and at the end of subparagraph (D),

(B)

by striking the period at the end of subparagraph (E) and inserting , and, and

(C)

by adding at the end the following new subparagraph:

(F)

a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent.

.

(2)

Biomass fuel

Section 25C(d) of such Code (relating to residential energy property expenditures) is amended by adding at the end the following new paragraph:

(6)

Biomass fuel

The term biomass fuel means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.

.

(c)

Modifications of standards for energy-efficient building property

(1)

Electric heat pumps

Subparagraph (B) of section 25C(d)(3) of such Code is amended to read as follows:

(A)

an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2008.

.

(2)

Central air conditioners

Section 25C(d)(3)(D) of such Code is amended by striking 2006 and inserting 2008.

(3)

Water Heaters

Subparagraph (E) of section 25C(d) of such Code is amended to read as follows:

(E)

a natural gas, propane, or oil water heater which has either an energy factor of at least 0.80 or a thermal efficiency of at least 90 percent.

.

(4)

Oil furnaces and hot water boilers

Paragraph (4) of section 25C(d) of such Code is amended to read as follows:

(4)

Qualified natural gas, propane, and oil furnaces and hot water boilers

(A)

Qualified natural gas furnace

The term qualified natural gas furnace means any natural gas furnace which achieves an annual fuel utilization efficiency rate of not less than 95.

(B)

Qualified natural gas hot water boiler

The term qualified natural gas hot water boiler means any natural gas hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.

(C)

Qualified propane furnace

The term qualified propane furnace means any propane furnace which achieves an annual fuel utilization efficiency rate of not less than 95.

(D)

Qualified propane hot water boiler

The term qualified propane hot water boiler means any propane hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.

(E)

Qualified oil furnaces

The term qualified oil furnace means any oil furnace which achieves an annual fuel utilization efficiency rate of not less than 90.

(F)

Qualified oil hot water boiler

The term qualified oil hot water boiler means any oil hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.

.

(d)

Effective date

The amendments made this section shall apply to expenditures made after December 31, 2007.

307.

Extension and modification of tax credit for energy efficient new homes

(a)

Extension of credit

Subsection (g) of section 45L of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2008 and inserting December 31, 2010.

(b)

Allowance for contractor's personal residence

Subparagraph (B) of section 45L(a)(1) of such Code is amended to read as follows:

(B)
(i)

acquired by a person from such eligible contractor and used by any person as a residence during the taxable year, or

(ii)

used by such eligible contractor as a residence during the taxable year.

.

(c)

Effective date

The amendments made by this section shall apply to homes acquired after December 31, 2008.

308.

Extension and modification of energy efficient commercial buildings deduction

(a)

Extension

Section 179D(h) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2008 and inserting December 31, 2009.

(b)

Adjustment of maximum deduction amount

(1)

In general

Subparagraph (A) of section 179D(b)(1) of such Code (relating to maximum amount of deduction) is amended by striking $1.80 and inserting $2.25.

(2)

Partial allowance

Paragraph (1) of section 179D(d) of such Code is amended—

(A)

by striking $.60 and inserting $0.75, and

(B)

by striking $1.80 and inserting $2.25.

(c)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

309.

Modification and extension of energy efficient appliance credit for appliances produced after 2007

(a)

In general

Subsection (b) of section 45M of the Internal Revenue Code of 1986 (relating to applicable amount) is amended to read as follows:

(b)

Applicable amount

For purposes of subsection (a)—

(1)

Dishwashers

The applicable amount is—

(A)

$45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and

(B)

$75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).

(2)

Clothes washers

The applicable amount is—

(A)

$75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,

(B)

$125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,

(C)

$150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor, and

(D)

$250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor.

(3)

Refrigerators

The applicable amount is—

(A)

$50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,

(B)

$75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,

(C)

$100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards, and

(D)

$200 in the case of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards.

.

(b)

Eligible production

(1)

Similar treatment for all appliances

Subsection (c) of section 45M of such Code (relating to eligible production) is amended—

(A)

by striking paragraph (2),

(B)

by striking (1) In general and all that follows through the eligible and inserting The eligible, and

(C)

by moving the text of such subsection in line with the subsection heading and redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively.

(2)

Modification of base period

Paragraph (2) of section 45M(c) of such Code, as amended by paragraph (1) of this section, is amended by striking 3-calendar year and inserting 2-calendar year.

(c)

Types of energy efficient appliances

Subsection (d) of section 45M of such Code (defining types of energy efficient appliances) is amended to read as follows:

(d)

Types of energy efficient appliance

For purposes of this section, the types of energy efficient appliances are—

(1)

dishwashers described in subsection (b)(1),

(2)

clothes washers described in subsection (b)(2), and

(3)

refrigerators described in subsection (b)(3).

.

(d)

Aggregate credit amount allowed

(1)

Increase in limit

Paragraph (1) of section 45M(e) of such Code (relating to aggregate credit amount allowed) is amended to read as follows:

(1)

Aggregate credit amount allowed

The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2007.

.

(2)

Exception for certain refrigerator and clothes washers

Paragraph (2) of section 45M(e) of such Code is amended to read as follows:

(2)

Amount allowed for certain refrigerators and clothes washers

Refrigerators described in subsection (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be taken into account under paragraph (1).

.

(e)

Qualified energy efficient appliances

(1)

In general

Paragraph (1) of section 45M(f) of such Code (defining qualified energy efficient appliance) is amended to read as follows:

(1)

Qualified energy efficient appliance

The term qualified energy efficient appliance means—

(A)

any dishwasher described in subsection (b)(1),

(B)

any clothes washer described in subsection (b)(2), and

(C)

any refrigerator described in subsection (b)(3).

.

(2)

Clothes washer

Section 45M(f)(3) of such Code (defining clothes washer) is amended by inserting commercial before residential the second place it appears.

(3)

Top-loading clothes washer

Subsection (f) of section 45M of such Code (relating to definitions) is amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and by inserting after paragraph (3) the following new paragraph:

(4)

Top-loading clothes washer

The term top-loading clothes washer means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.

.

(4)

Replacement of energy factor

Section 45M(f)(6) of such Code, as redesignated by paragraph (3), is amended to read as follows:

(6)

Modified energy factor

The term modified energy factor means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.

.

(5)

Gallons per cycle; water consumption factor

Section 45M(f) of such Code (relating to definitions), as amended by paragraph (3), is amended by adding at the end the following:

(9)

Gallons per cycle

The term gallons per cycle means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.

(10)

Water consumption factor

The term water consumption factor means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.

.

(f)

Effective date

The amendments made by this section shall apply to appliances produced after December 31, 2007.

310.

Apollo 21 energy independence program

The President shall establish a program, modeled on the Apollo program, for the 21st century that will make it the goal of the United States to become energy independent by 2018. Such program shall be designed to, by 2018—

(1)

end our dependence on foreign sources of oil;

(2)

establish infrastructure and invest in research to power America with alternative sources of energy, especially low-carbon emitting fuels and fuels that encourage economic development in rural areas; and

(3)

reduce the proportion of the family budget that goes toward energy costs, especially among Americans with limited income.

311.

Study of effects of speculation in the futures markets for natural gas, crude oil, and gasoline on cash market and retail prices, and choice of trading venue

(a)

Study

The Federal Trade Commission, the Board of Governors of the Federal Reserve System, and the Energy Information Agency, in consultation with the Commodity Futures Trading Commission, other Federal agencies, and other entities involved in gathering and reviewing such information, shall jointly conduct a study of the effects of speculation in the futures markets (including foreign futures markets) for natural gas, crude oil, and gasoline on cash market and retail prices for the commodities. The study shall focus on the effects of margin requirements, position limits, and other regulatory requirements that apply with respect to trading in the commodities on the choice of trading venue.

(b)

Report to the Congress

Within 180 days after the date of the enactment of this Act, the Federal Trade Commission shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce of the Senate a report on the results of the study required by subsection (a).

312.

Requirement that the Commodity Futures Trading Commission issue a notice of proposed rulemaking regarding comparability of foreign regulation of futures and derivatives trading

Within 6 months after the date of the enactment of this Act, the Commodity Futures Trading Commission shall—

(1)

issue a notice of proposed rulemaking regarding how the Commission determines whether regulation of futures contracts and derivatives (including any related position limits, margin requirements, and reporting requirements) by a foreign country is comparable to regulation of such under the Commodity Exchange Act, which includes a request for comments from the public regarding the factors which the Commission should consider in making such a determination;

(2)

evaluate any such comments submitted to the Commission; and

(3)

determine whether the Commission should issue a proposed rule regarding the matter.