< Back to H.R. 6421 (110th Congress, 2007–2009)

Text of the Energy Independence Act

This bill was introduced on June 26, 2008, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jun 26, 2008 (Introduced).

Source: GPO

I

110th CONGRESS

2d Session

H. R. 6421

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 Ways and Means, Energy and Commerce, Science and Technology, Transportation and Infrastructure, and Rules, 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 direct the Secretary of the Interior to establish and implement a competitive oil and gas leasing program for the Coastal Plain of Alaska, to provide for expanded leasing of the oil and gas resources of the outer Continental Shelf for exploration, to eliminate certain impediments to the development of nuclear energy sources, to promote coal-to-liquid fuel activities, and for other purposes.

1.

Short title

This Act may be cited as the Energy Independence Act.

2.

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Title I—OIL AND GAS LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN OF ALASKA

Sec. 101. Short title.

Sec. 102. Definitions.

Sec. 103. Leasing program for lands within the Coastal Plain.

Sec. 104. Lease sales.

Sec. 105. Grant of leases by the Secretary.

Sec. 106. Lease terms and conditions.

Sec. 107. Coastal plain environmental protection.

Sec. 108. Expedited judicial review.

Sec. 109. Federal and State distribution of revenues.

Sec. 110. Rights-of-way across the Coastal Plain.

Sec. 111. Conveyance.

Sec. 112. Local government impact aid and community service assistance.

Sec. 113. ANWR Alternative Energy Trust Fund.

Title II—OPENING OF OUTER CONTINENTAL SHELF

Sec. 201. Short title.

Sec. 202. Policy.

Sec. 203. Definitions under the Outer Continental Shelf Lands Act.

Sec. 204. Determination of Adjacent Zones and planning areas.

Sec. 205. Administration of leasing.

Sec. 206. Grant of leases by Secretary.

Sec. 207. Reservation of lands and rights.

Sec. 208. Outer Continental Shelf Leasing Program.

Sec. 209. Coordination with Adjacent States.

Sec. 210. Environmental studies.

Sec. 211. Federal Energy Natural Resources Enhancement Act of 2008.

Sec. 212. Termination of effect of laws prohibiting the spending of appropriated funds for certain purposes.

Sec. 213. Outer Continental Shelf incompatible use.

Sec. 214. Repurchase of certain leases.

Sec. 215. Offsite environmental mitigation.

Sec. 216. Minerals Management Service.

Sec. 217. Authority to use decommissioned offshore oil and gas platforms and other facilities for artificial reef, scientific research, or other uses.

Sec. 218. Repeal of requirement to conduct comprehensive inventory of OCS oil and natural gas resources.

Sec. 219. Leases for areas located within 100 miles of California or Florida.

Sec. 220. Coastal impact assistance.

Sec. 221. Oil shale and tar sands amendments.

Title III—NUCLEAR ENERGY

Sec. 301. Incentives for innovative technologies.

Sec. 302. Standby support for certain nuclear plant delays.

Sec. 303. Authorization for nuclear power 2010 program.

Sec. 304. Domestic manufacturing base for nuclear components and equipment.

Sec. 305. Nuclear energy workforce.

Sec. 306. Licensing of new nuclear power plants.

Sec. 307. Investment tax credit for investments in nuclear power facilities.

Sec. 308. National Nuclear Energy Council.

Sec. 309. Temporary spent nuclear fuel storage agreements.

Sec. 310. Implementation of temporary spent nuclear fuel storage agreements.

Sec. 311. Expedited procedures for congressional review of temporary spent nuclear fuel storage agreements.

Sec. 312. Contracting and Nuclear Waste Fund.

Sec. 313. Confidence in availability of waste disposal.

Title IV—AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

Sec. 401. Credit for investment in coal-to-liquid fuels projects.

Sec. 402. Temporary expensing for equipment used in coal-to-liquid fuels process.

Sec. 403. Extension of alternative fuel credit for fuel derived from coal through the Fischer-Tropsch process or the Schobert process.

I

OIL AND GAS LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN OF ALASKA

101.

Short title

This title may be cited as the American Energy Independence and Price Reduction Act.

102.

Definitions

In this title:

(1)

Coastal Plain

The term Coastal Plain means that area described in appendix I to part 37 of title 50, Code of Federal Regulations.

(2)

Secretary

The term Secretary, except as otherwise provided, means the Secretary of the Interior or the Secretary’s designee.

103.

Leasing program for lands within the Coastal Plain

(a)

In general

The Secretary shall take such actions as are necessary—

(1)

to establish and implement, in accordance with this title and acting through the Director of the Bureau of Land Management in consultation with the Director of the United States Fish and Wildlife Service, a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration, development, and production of the oil and gas resources of the Coastal Plain; and

(2)

to administer the provisions of this title through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that ensure the oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, their habitat, subsistence resources, and the environment, including, in furtherance of this goal, by requiring the application of the best commercially available technology for oil and gas exploration, development, and production to all exploration, development, and production operations under this title in a manner that ensures the receipt of fair market value by the public for the mineral resources to be leased.

(b)

Repeal

(1)

Repeal

Section 1003 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.

(2)

Conforming amendment

The table of contents in section 1 of such Act is amended by striking the item relating to section 1003.

(c)

Compliance with requirements under certain other laws

(1)

Compatibility

For purposes of the National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd et seq.), the oil and gas leasing program and activities authorized by this section in the Coastal Plain are deemed to be compatible with the purposes for which the Arctic National Wildlife Refuge was established, and no further findings or decisions are required to implement this determination.

(2)

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

The Final Legislative Environmental Impact Statement (April 1987) on the Coastal Plain prepared pursuant to section 1002 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the requirements under the National Environmental Policy Act of 1969 that apply with respect to prelease activities, including actions authorized to be taken by the Secretary to develop and promulgate the regulations for the establishment of a leasing program authorized by this title before the conduct of the first lease sale.

(3)

Compliance with NEPA for other actions

Before conducting the first lease sale under this title, the Secretary shall prepare an environmental impact statement under the National Environmental Policy Act of 1969 with respect to the actions authorized by this title that are not referred to in paragraph (2). Notwithstanding any other law, the Secretary is not required to identify nonleasing alternative courses of action or to analyze the environmental effects of such courses of action. The Secretary shall only identify a preferred action for such leasing and a single leasing alternative, and analyze the environmental effects and potential mitigation measures for those two alternatives. The identification of the preferred action and related analysis for the first lease sale under this title shall be completed within 18 months after the date of enactment of this Act. The Secretary shall only consider public comments that specifically address the Secretary’s preferred action and that are filed within 20 days after publication of an environmental analysis. Notwithstanding any other law, compliance with this paragraph is deemed to satisfy all requirements for the analysis and consideration of the environmental effects of proposed leasing under this title.

(d)

Relationship to State and local authority

Nothing in this title shall be considered to expand or limit State and local regulatory authority.

(e)

Special areas

(1)

In general

The Secretary, after consultation with the State of Alaska, the city of Kaktovik, and the North Slope Borough, may designate up to a total of 45,000 acres of the Coastal Plain as a Special Area if the Secretary determines that the Special Area is of such unique character and interest so as to require special management and regulatory protection. The Secretary shall designate as such a Special Area the Sadlerochit Spring area, comprising approximately 4,000 acres.

(2)

Management

Each such Special Area shall be managed so as to protect and preserve the area’s unique and diverse character including its fish, wildlife, and subsistence resource values.

(3)

Exclusion from leasing or surface occupancy

The Secretary may exclude any Special Area from leasing. If the Secretary leases a Special Area, or any part thereof, for purposes of oil and gas exploration, development, production, and related activities, there shall be no surface occupancy of the lands comprising the Special Area.

(4)

Directional drilling

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

(f)

Limitation on closed areas

The Secretary’s sole authority to close lands within the Coastal Plain to oil and gas leasing and to exploration, development, and production is that set forth in this title.

(g)

Regulations

(1)

In general

The Secretary shall prescribe such regulations as may be necessary to carry out this title, including rules and regulations relating to protection of the fish and wildlife, their habitat, subsistence resources, and environment of the Coastal Plain, by no later than 15 months after the date of enactment of this Act.

(2)

Revision of regulations

The Secretary shall periodically review and, if appropriate, revise the rules and regulations issued under subsection (a) to reflect any significant biological, environmental, or engineering data that come to the Secretary’s attention.

104.

Lease sales

(a)

In general

Lands may be leased pursuant to this title 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 such 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 title shall be by sealed competitive cash bonus bids.

(d)

Acreage minimum in first sale

In the first lease sale under this title, 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)

conduct the first lease sale under this title within 22 months after the date of the enactment of this Act;

(2)

evaluate the bids in such sale and issue leases resulting from such sale, within 90 days after the date of the completion of such sale; and

(3)

conduct additional sales so long as sufficient interest in development exists to warrant, in the Secretary’s judgment, the conduct of such sales.

105.

Grant of leases by the Secretary

(a)

In general

The Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 104 any lands to be leased on the Coastal Plain upon payment by the lessee of such bonus as may be accepted by the Secretary.

(b)

Subsequent transfers

No lease issued under this title may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary. Prior to any such approval the Secretary shall consult with, and give due consideration to the views of, the Attorney General.

106.

Lease terms and conditions

(a)

In general

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

(1)

provide for the payment of a royalty of not less than 12½ percent in amount or value of the production removed or sold from the lease, as determined by the Secretary under the regulations applicable to other Federal oil and gas leases;

(2)

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

(3)

require that the lessee of lands within the Coastal Plain shall be fully responsible and liable for the reclamation of lands within the Coastal Plain and any other Federal lands that are adversely affected in connection with exploration, development, production, or transportation activities conducted under the lease and within the Coastal Plain 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, the reclamation responsibility and liability to another person without the express written approval of the Secretary;

(5)

provide that the standard of reclamation for lands required to be reclaimed under this title shall be, as nearly as practicable, a condition capable of supporting the uses which the lands were capable of supporting prior to any exploration, development, or production activities, or upon application by the lessee, to a higher or better use as approved by the Secretary;

(6)

contain terms and conditions relating to protection of fish and wildlife, their habitat, subsistence resources, and the environment as required pursuant to section 103(a)(2);

(7)

provide that the lessee, its agents, and its contractors use best efforts to provide a fair share, as determined by the level of obligation previously agreed to in the 1974 agreement implementing section 29 of the Federal Agreement and Grant of Right of Way for the Operation of the Trans-Alaska Pipeline, of employment and contracting for Alaska Natives and Alaska Native Corporations from throughout the State;

(8)

prohibit the export of oil produced under the lease; and

(9)

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

(b)

Project labor agreements

The Secretary, as a term and condition of each lease under this title and in recognizing the Government’s proprietary interest 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 title and the special concerns of the parties to such leases, shall require that the lessee and its agents and contractors negotiate to obtain a project labor agreement for the employment of laborers and mechanics on production, maintenance, and construction under the lease.

107.

Coastal plain environmental protection

(a)

No significant adverse effect standard To govern authorized Coastal Plain activities

The Secretary shall, consistent with the requirements of section 103, administer the provisions of this title through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that—

(1)

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, 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 amount of surface acreage covered 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 also require, with respect to any proposed drilling and related activities, that—

(1)

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

(2)

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

(3)

the development of the plan shall occur after consultation with the agency or agencies having jurisdiction over matters mitigated by the plan.

(c)

Regulations To protect coastal plain fish and wildlife resources, subsistence users, and the environment

Before implementing the leasing program authorized by this title, the Secretary shall prepare and promulgate regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other measures designed to ensure that the activities undertaken on the Coastal Plain under this title are conducted in a manner consistent with the purposes and environmental requirements of this title.

(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 title shall require compliance with all applicable provisions of Federal and State environmental law, and shall also require the following:

(1)

Standards at least as effective as the safety and environmental mitigation measures set forth in items 1 through 29 at pages 167 through 169 of the Final Legislative Environmental Impact Statement (April 1987) on the Coastal Plain.

(2)

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

(3)

That exploration activities, except for surface geological studies, be limited to the period between approximately November 1 and May 1 each year and that exploration activities shall be supported, if necessary, by ice roads, winter trails with adequate snow cover, ice pads, ice airstrips, and air transport methods, except that such exploration activities may occur at other times if the Secretary finds that such exploration will have no significant adverse effect on the fish and wildlife, their habitat, and the environment of the Coastal Plain.

(4)

Design safety and construction standards for all pipelines and any access and service roads, that—

(A)

minimize, to the maximum extent possible, adverse effects upon the passage of migratory species such as caribou; and

(B)

minimize adverse effects upon the flow of surface water by requiring the use of culverts, bridges, and other structural devices.

(5)

Prohibitions on general public access and use on all pipeline access and service roads.

(6)

Stringent reclamation and rehabilitation requirements, consistent with the standards set forth in this title, requiring the removal from the Coastal Plain of all oil and gas development and production facilities, structures, and equipment upon completion of oil and gas production operations, except that the Secretary may exempt from the requirements of this paragraph those facilities, structures, or equipment that the Secretary determines would assist in the management of the Arctic National Wildlife Refuge and that are donated to the United States for that purpose.

(7)

Appropriate prohibitions or restrictions on access by all modes of transportation.

(8)

Appropriate prohibitions or restrictions on sand and gravel extraction.

(9)

Consolidation of facility siting.

(10)

Appropriate prohibitions or restrictions on use of explosives.

(11)

Avoidance, to the extent practicable, of springs, streams, and river system; the protection of natural surface drainage patterns, wetlands, and riparian habitats; and the regulation of methods or techniques for developing or transporting adequate supplies of water for exploratory drilling.

(12)

Avoidance or minimization of air traffic-related disturbance to fish and wildlife.

(13)

Treatment and disposal of hazardous and toxic wastes, solid wastes, reserve pit fluids, drilling muds and cuttings, and domestic wastewater, including an annual waste management report, a hazardous materials tracking system, and a prohibition on chlorinated solvents, in accordance with applicable Federal and State environmental law.

(14)

Fuel storage and oil spill contingency planning.

(15)

Research, monitoring, and reporting requirements.

(16)

Field crew environmental briefings.

(17)

Avoidance of significant adverse effects upon subsistence hunting, fishing, and trapping by subsistence users.

(18)

Compliance with applicable air and water quality standards.

(19)

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

(20)

Reasonable stipulations for protection of cultural and archeological resources.

(21)

All other protective environmental stipulations, restrictions, terms, and conditions deemed necessary by the Secretary.

(e)

Considerations

In preparing and promulgating regulations, lease terms, conditions, restrictions, prohibitions, and stipulations under this section, the Secretary shall consider the following:

(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 to 37.33 of title 50, Code of Federal Regulations.

(3)

The land use stipulations for exploratory drilling on the KIC–ASRC private lands that are set forth in Appendix 2 of the August 9, 1983, agreement between Arctic Slope Regional Corporation and the United States.

(f)

Facility consolidation planning

(1)

In general

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

(2)

Objectives

The plan shall have the following objectives:

(A)

Avoiding unnecessary duplication of facilities and activities.

(B)

Encouraging consolidation of common facilities and activities.

(C)

Locating or confining facilities and activities to areas that will minimize impact on fish and wildlife, their habitat, and the environment.

(D)

Utilizing existing facilities wherever practicable.

(E)

Enhancing compatibility between wildlife values and development activities.

(g)

Access to public lands

The Secretary shall—

(1)

manage public lands in the Coastal Plain subject to 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 lands in the Coastal Plain for traditional uses.

108.

Expedited judicial review

(a)

Filing of complaint

(1)

Deadline

Subject to paragraph (2), any complaint seeking judicial review of any provision of this title or any action of the Secretary under this title shall be filed—

(A)

except as provided in subparagraph (B), within the 90-day period beginning on the date of the action being challenged; or

(B)

in the case of a complaint based solely on grounds arising after such period, within 90 days after the complainant knew or reasonably should have known of the grounds for the complaint.

(2)

Venue

Any complaint seeking judicial review of any provision of this title or any action of the Secretary under this title may be filed only in the United States Court of Appeals for the District of Columbia.

(3)

Limitation on scope of certain review

Judicial review of a Secretarial decision to conduct a lease sale under this title, including the environmental analysis thereof, shall be limited to whether the Secretary has complied with the terms of this title and shall be based upon the administrative record of that decision. The Secretary’s identification of a preferred course of action to enable leasing to proceed and the Secretary’s analysis of environmental effects under this title shall be presumed to be correct unless shown otherwise by clear and convincing evidence to the contrary.

(b)

Limitation on other review

Actions of the Secretary with respect to which review could have been obtained under this section shall not be subject to judicial review in any civil or criminal proceeding for enforcement.

109.

Federal and State distribution of revenues

(a)

In general

Notwithstanding any other provision of law, of the amount of adjusted bonus, rental, and royalty revenues from Federal oil and gas leasing and operations authorized under this title—

(1)

50 percent shall be paid to the State of Alaska; and

(2)

except as provided in section 112(d), the balance shall be transferred to the ANWR Alternative Energy Trust Fund established by this title.

(b)

Payments to Alaska

Payments to the State of Alaska under this section shall be made semiannually.

110.

Rights-of-way across the Coastal Plain

(a)

In general

The Secretary shall issue rights-of-way and easements across the Coastal Plain for the transportation of oil and gas—

(1)

except as provided in paragraph (2), under section 28 of the Mineral Leasing Act (30 U.S.C. 185), without regard to title XI of the Alaska National Interest Lands Conservation Act (30 U.S.C. 3161 et seq.); and

(2)

under title XI of the Alaska National Interest Lands Conservation Act (30 U.S.C. 3161 et seq.), for access authorized by sections 1110 and 1111 of that Act (16 U.S.C. 3170 and 3171).

(b)

Terms and conditions

The Secretary shall include in any right-of-way or easement issued under subsection (a) such terms and conditions as may be necessary to ensure that transportation of oil and gas does not result in a significant adverse effect on the fish and wildlife, subsistence resources, their habitat, and the environment of the Coastal Plain, including requirements that facilities be sited or designed so as to avoid unnecessary duplication of roads and pipelines.

(c)

Regulations

The Secretary shall include in regulations under section 103(g) provisions granting rights-of-way and easements described in subsection (a) of this section.

111.

Conveyance

In order to maximize Federal revenues by removing clouds on title to lands and clarifying land ownership patterns within the Coastal Plain, the Secretary, notwithstanding the provisions of section 1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), shall convey—

(1)

to the Kaktovik Inupiat Corporation the surface estate of the lands described in paragraph 1 of Public Land Order 6959, to the extent necessary to fulfill the Corporation’s entitlement under sections 12 and 14 of the Alaska Native Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance with the terms and conditions of the Agreement between the Department of the Interior, the United States Fish and Wildlife Service, the Bureau of Land Management, and the Kaktovik Inupiat Corporation effective January 22, 1993; and

(2)

to the Arctic Slope Regional Corporation the remaining subsurface estate to which it is entitled pursuant to the August 9, 1983, agreement between the Arctic Slope Regional Corporation and the United States of America.

112.

Local government impact aid and community service assistance

(a)

Financial assistance authorized

(1)

In general

The Secretary may use amounts available from the Coastal Plain Local Government Impact Aid Assistance Fund established by subsection (d) to provide timely financial assistance to entities that are eligible under paragraph (2) and that are directly impacted by the exploration for or production of oil and gas on the Coastal Plain under this title.

(2)

Eligible entities

The North Slope Borough, the City of Kaktovik, 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 title, as determined by the Secretary, shall be eligible for financial assistance under this section.

(b)

Use of assistance

Financial assistance under this section may be used only for—

(1)

planning for mitigation of the potential effects of oil and gas exploration and development on environmental, social, cultural, recreational, and subsistence values;

(2)

implementing mitigation plans and maintaining mitigation projects;

(3)

developing, carrying out, and maintaining projects and programs that provide new or expanded public facilities and services to address needs and problems associated with such effects, including fire-fighting, police, water, waste treatment, medivac, and medical services; and

(4)

establishment of a coordination office, by the North Slope Borough, in the City of Kaktovik, which shall—

(A)

coordinate with and advise developers on local conditions, impact, and history of the areas utilized for development; and

(B)

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

(c)

Application

(1)

In general

Any community that is eligible for assistance under this section may submit an application for such assistance to the Secretary, in such form and under such procedures as the Secretary may prescribe by regulation.

(2)

North Slope Borough communities

A community located in the North Slope Borough may apply for assistance under this section either directly to the Secretary or through the North Slope Borough.

(3)

Application assistance

The Secretary shall work closely with and assist the North Slope Borough and other communities eligible for assistance under this section in developing and submitting applications for assistance under this section.

(d)

Establishment of fund

(1)

In general

There is established in the Treasury the Coastal Plain Local Government Impact Aid Assistance Fund.

(2)

Use

Amounts in the fund may be used only for providing financial assistance under this section.

(3)

Deposits

Subject to paragraph (4), there shall be deposited into the fund amounts received by the United States as revenues derived from rents, bonuses, and royalties from Federal leases and lease sales authorized under this title.

(4)

Limitation on deposits

The total amount in the fund may not exceed $11,000,000.

(5)

Investment of balances

The Secretary of the Treasury shall invest amounts in the fund in interest bearing government securities.

(e)

Authorization of appropriations

To provide financial assistance under this section there is authorized to be appropriated to the Secretary from the Coastal Plain Local Government Impact Aid Assistance Fund $5,000,000 for each fiscal year.

113.

ANWR Alternative Energy Trust Fund

(a)

Establishment of trust fund

There is established in the Treasury of the United States a trust fund to be known as the ANWR Alternative Energy Trust Fund, consisting of such amounts as may be transferred to the ANWR Alternative Energy Trust Fund as provided in section 109.

(b)

Expenditures from ANWR Alternative Energy Trust Fundk

(1)

In general

Amounts in the ANWR Alternative Energy Trust Fund shall be available without further appropriation to carry out specified provisions of the Energy Policy Act of 2005 (Public Law 109–58; in this section referred to as EPAct2005) and the Energy Independence and Security Act of 2007 (Public Law 110–140; in this section referred to as EISAct2007), as follows:


To carry out the provisions of:The following percentage of annual receipts to the ANWR Alternative Energy Trust Fund, but not to exceed the limit on amount authorized, if any:
EPAct2005:
Section 2101.5 percent
Section 2421.0 percent
Section 3692.0 percent
Section 4016.0 percent
Section 8126.0 percent
Section 93119.0 percent
Section 9421.5 percent
Section 9623.0 percent
Section 9681.5 percent
Section 1704 6.0 percent
EISAct2007:
Section 20715.0 percent
Section 6071.5 percent
Title VI, Subtitle B3.0 percent
Title VI, Subtitle C1.5 percent
Section 6419.0 percent
Title VII, Subtitle A15.0 percent
Section 11121.5 percent
Section 13046.0 percent.
(2)

Apportionment of excess amount

Notwithstanding paragraph (1), any amounts allocated under paragraph (1) that are in excess of the amounts authorized in the applicable cited section or subtitle of EPAct2005 and EISAct2007 shall be reallocated to the remaining sections and subtitles cited in paragraph (1), up to the amounts otherwise authorized by law to carry out such sections and subtitles, in proportion to the amounts authorized by law to be appropriated for such other sections and subtitles.

II

OPENING OF OUTER CONTINENTAL SHELF

201.

Short title

This title may be cited as the Deep Ocean Energy Resources Act of 2008.

202.

Policy

It is the policy of the United States that—

(1)

the United States is blessed with abundant energy resources on the outer Continental Shelf and has developed a comprehensive framework of environmental laws and regulations and fostered the development of state-of-the-art technology that allows for the responsible development of these resources for the benefit of its citizenry;

(2)

adjacent States are required by the circumstances to commit significant resources in support of exploration, development, and production activities for mineral resources on the outer Continental Shelf, and it is fair and proper for a portion of the receipts from such activities to be shared with Adjacent States and their local coastal governments;

(3)

the existing laws governing the leasing and production of the mineral resources of the outer Continental Shelf have reduced the production of mineral resources, have preempted Adjacent States from being sufficiently involved in the decisions regarding the allowance of mineral resource development, and have been harmful to the national interest;

(4)

the national interest is served by granting the Adjacent States more options related to whether or not mineral leasing should occur in the outer Continental Shelf within their Adjacent Zones;

(5)

it is not reasonably foreseeable that exploration of a leased tract located more than 25 miles seaward of the coastline, development and production of a natural gas discovery located more than 25 miles seaward of the coastline, or development and production of an oil discovery located more than 50 miles seaward of the coastline will adversely affect resources near the coastline;

(6)

transportation of oil from a leased tract might reasonably be foreseen, under limited circumstances, to have the potential to adversely affect resources near the coastline if the oil is within 50 miles of the coastline, but such potential to adversely affect such resources is likely no greater, and probably less, than the potential impacts from tanker transportation because tanker spills usually involve large releases of oil over a brief period of time; and

(7)

among other bodies of inland waters, the Great Lakes, Long Island Sound, Delaware Bay, Chesapeake Bay, Albemarle Sound, San Francisco Bay, and Puget Sound are not part of the outer Continental Shelf, and are not subject to leasing by the Federal Government for the exploration, development, and production of any mineral resources that might lie beneath them.

203.

Definitions under the Outer Continental Shelf Lands Act

Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) is amended—

(1)

by amending paragraph (f) to read as follows:

(f)

The term affected State means the Adjacent State.

;

(2)

by striking the semicolon at the end of each of paragraphs (a) through (o) and inserting a period;

(3)

by striking ; and at the end of paragraph (p) and inserting a period;

(4)

by adding at the end the following:

(r)

The term Adjacent State means, with respect to any program, plan, lease sale, leased tract or other activity, proposed, conducted, or approved pursuant to the provisions of this Act, any State the laws of which are declared, pursuant to section 4(a)(2), to be the law of the United States for the portion of the outer Continental Shelf on which such program, plan, lease sale, leased tract or activity appertains or is, or is proposed to be, conducted. For purposes of this paragraph, the term State includes Puerto Rico and the other Territories of the United States.

(s)

The term Adjacent Zone means, with respect to any program, plan, lease sale, leased tract, or other activity, proposed, conducted, or approved pursuant to the provisions of this Act, the portion of the outer Continental Shelf for which the laws of a particular Adjacent State are declared, pursuant to section 4(a)(2), to be the law of the United States.

(t)

The term miles means statute miles.

(u)

The term coastline has the same meaning as the term coast line as defined in section 2(c) of the Submerged Lands Act (43 U.S.C. 1301(c)).

(v)

The term Neighboring State means a coastal State having a common boundary at the coastline with the Adjacent State.

; and

(5)

in paragraph (a), by inserting after control the following: or lying within the United States exclusive economic zone adjacent to the Territories of the United States.

204.

Determination of Adjacent Zones and planning areas

Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the first sentence by striking , and the President and all that follows through the end of the sentence and inserting the following: . The lines extending seaward and defining each State’s Adjacent Zone, and each OCS Planning Area, are as indicated on the maps for each outer Continental Shelf region entitled Alaska OCS Region State Adjacent Zone and OCS Planning Areas, Pacific OCS Region State Adjacent Zones and OCS Planning Areas, Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas, and Atlantic OCS Region State Adjacent Zones and OCS Planning Areas, all of which are dated September 2005 and on file in the Office of the Director, Minerals Management Service..

205.

Administration of leasing

Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) is amended by adding at the end the following:

(k)

Voluntary Partial Relinquishment of a Lease

Any lessee of a producing lease may relinquish to the Secretary any portion of a lease that the lessee has no interest in producing and that the Secretary finds is geologically prospective. In return for any such relinquishment, the Secretary shall provide to the lessee a royalty incentive for the portion of the lease retained by the lessee, in accordance with regulations promulgated by the Secretary to carry out this subsection. The Secretary shall publish final regulations implementing this subsection within 365 days after the date of the enactment of the Deep Ocean Energy Resources Act of 2008.

(l)

Natural Gas Lease Regulations

Not later than July 1, 2009, the Secretary shall publish a final regulation that shall—

(1)

establish procedures for entering into natural gas leases;

(2)

ensure that natural gas leases are only available for tracts on the outer Continental Shelf that are wholly within 100 miles of the coastline within an area withdrawn from disposition by leasing on the day after the date of enactment of the Deep Ocean Energy Resources Act of 2008;

(3)

provide that natural gas leases shall contain the same rights and obligations established for oil and gas leases, except as otherwise provided in the Deep Ocean Energy Resources Act of 2008;

(4)

provide that, in reviewing the adequacy of bids for natural gas leases, the value of any crude oil estimated to be contained within any tract shall be excluded;

(5)

provide that any crude oil produced from a well and reinjected into the leased tract shall not be subject to payment of royalty, and that the Secretary shall consider, in setting the royalty rates for a natural gas lease, the additional cost to the lessee of not producing any crude oil; and

(6)

provide that any Federal law that applies to an oil and gas lease on the outer Continental Shelf shall apply to a natural gas lease unless otherwise clearly inapplicable.

.

206.

Grant of leases by Secretary

Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended—

(1)

in subsection (a)(1) by inserting after the first sentence the following: Further, the Secretary may grant natural gas leases in a manner similar to the granting of oil and gas leases and under the various bidding systems available for oil and gas leases.;

(2)

by adding at the end of subsection (b) the following:

The Secretary may issue more than one lease for a given tract if each lease applies to a separate and distinct range of vertical depths, horizontal surface area, or a combination of the two. The Secretary may issue regulations that the Secretary determines are necessary to manage such leases consistent with the purposes of this Act.

;

(3)

by amending subsection (p)(2)(B) to read as follows:

(B)

The Secretary shall provide for the payment to coastal states, and their local coastal governments, of 25 percent of Federal receipts from projects authorized under this section located partially or completely within the area extending seaward of State submerged lands out to 4 marine leagues from the coastline, and the payment to coastal states of 25 percent of the receipts from projects completely located in the area more than 4 marine leagues from the coastline. Payments shall be based on a formula established by the Secretary by rulemaking no later than 180 days after the date of the enactment of the Deep Ocean Energy Resources Act of 2008 that provides for equitable distribution, based on proximity to the project, among coastal states that have coastline that is located within 200 miles of the geographic center of the project.

;

(4)

by adding at the end the following:

(q)

Natural Gas Leases

(1)

Right to produce natural gas

A lessee of a natural gas lease shall have the right to produce the natural gas from a field on a natural gas leased tract if the Secretary estimates that the discovered field has at least 40 percent of the economically recoverable Btu content of the field contained within natural gas and such natural gas is economical to produce.

(2)

Crude oil

A lessee of a natural gas lease may not produce crude oil from the lease.

(3)

Estimates of btu content

The Secretary shall make estimates of the natural gas Btu content of discovered fields on a natural gas lease only after the completion of at least one exploration well, the data from which has been tied to the results of a three-dimensional seismic survey of the field. The Secretary may not require the lessee to further delineate any discovered field prior to making such estimates.

(4)

Definition of natural gas

For purposes of a natural gas lease, natural gas means natural gas and all substances produced in association with gas, including, but not limited to, hydrocarbon liquids (other than crude oil) that are obtained by the condensation of hydrocarbon vapors and separate out in liquid form from the produced gas stream.

(r)

Removal of Restrictions on Joint Bidding in Certain Areas of the Outer Continental Shelf

Restrictions on joint bidders shall no longer apply to tracts located in the Alaska OCS Region. Such restrictions shall not apply to tracts in other OCS regions determined to be frontier tracts or otherwise high cost tracts under final regulations that shall be published by the Secretary by not later than 365 days after the date of the enactment of the Deep Ocean Energy Resources Act of 2008.

(s)

Royalty Suspension Provisions

The Secretary shall agree to a request by any lessee to amend any lease issued for Central and Western Gulf of Mexico tracts during the period of January 1, 1998, through December 31, 1999, to incorporate price thresholds applicable to royalty suspension provisions, or amend existing price thresholds, in the amount of $40.50 per barrel (2006 dollars) for oil and for natural gas of $6.75 per million Btu (2006 dollars). Any amended lease shall impose the new or revised price thresholds effective October 1, 2008. Existing lease provisions shall prevail through September 30, 2008. After the date of the enactment of the Deep Ocean Energy Resources Act of 2008, price thresholds shall apply to any royalty suspension volumes granted by the Secretary. Unless otherwise set by Secretary by regulation or for a particular lease sale, the price thresholds shall be $40.50 for oil (2006 dollars) and $6.75 for natural gas (2006 dollars).

(t)

Conservation of Resources Fees

(1)

Not later than one year after the date of the enactment of the Deep Ocean Energy Resources Act of 2008, the Secretary by regulation shall establish a conservation of resources fee for producing leases that will apply to new and existing leases which shall be set at $9 per barrel for oil and $1.25 per million Btu for gas. This fee shall only apply to leases in production located in more than 200 meters of water for which royalties are not being paid when prices exceed $40.50 per barrel for oil and $6.75 per million Btu for natural gas in 2006, dollars. This fee shall apply to production from and after October 1, 2008, and shall be treated as offsetting receipts.

(2)

Not later than one year after the date of the enactment of the Deep Ocean Energy Resources Act of 2008, the Secretary by regulation shall establish a conservation of resources fee for nonproducing leases that will apply to new and existing leases which shall be set at $3.75 per acre per year. This fee shall apply from and after October 1, 2008, and shall be treated as offsetting receipts.

;

(5)

by striking subsection (a)(3)(A) and redesignating the subsequent subparagraphs as subparagraphs (A) and (B), respectively;

(6)

in subsection (a)(3)(A) (as so redesignated) by striking In the Western and all that follows through the Secretary the first place it appears and inserting The Secretary; and

(7)

effective October 1, 2008, in subsection (g)—

(A)

by striking all after (g), except paragraph (3);

(B)

by striking the last sentence of paragraph (3); and

(C)

by striking (3).

207.

Reservation of lands and rights

Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 1341) is amended—

(1)

in subsection (a) by adding at the end the following: The President may partially or completely revise or revoke any prior withdrawal made by the President under the authority of this section. The President may not revise or revoke a withdrawal that is extended by a State under subsection (h), nor may the President withdraw from leasing any area for which a State failed to prohibit, or petition to prohibit, leasing under subsection (g). Further, in the area of the outer Continental Shelf more than 100 miles from any coastline, not more than 25 percent of the acreage of any OCS Planning Area may be withdrawn from leasing under this section at any point in time. A withdrawal by the President may be for a term not to exceed 10 years. When considering potential uses of the outer Continental Shelf, to the maximum extent possible, the President shall accommodate competing interests and potential uses.;

(2)

by adding at the end the following:

(g)

Availability for Leasing Within Certain Areas of the Outer Continental Shelf

(1)

Prohibition against leasing

(A)

Unavailable for leasing without state request

Except as otherwise provided in this subsection, from and after enactment of the Deep Ocean Energy Resources Act of 2008, the Secretary shall not offer for leasing for oil and gas, or natural gas, any area within 50 miles of the coastline that was withdrawn from disposition by leasing in the Atlantic OCS Region or the Pacific OCS Region, or the Gulf of Mexico OCS Region Eastern Planning Area, as depicted on the maps referred to in this subparagraph, under the Memorandum on Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition, 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, or any area within 50 miles of the coastline not withdrawn under that Memorandum that is included within the Gulf of Mexico OCS Region Eastern Planning Area as indicated on the map entitled Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas or the Florida Straits Planning Area as indicated on the map entitled Atlantic OCS Region State Adjacent Zones and OCS Planning Areas, both of which are dated September 2005 and on file in the Office of the Director, Minerals Management Service.

(B)

Areas between 50 and 100 miles from the coastline

Unless an Adjacent State petitions under subsection (h) within one year after the date of the enactment of the Deep Ocean Energy Resources Act of 2008 for natural gas leasing or by June 30, 2011, for oil and gas leasing, the Secretary shall offer for leasing any area more than 50 miles but less than 100 miles from the coastline that was withdrawn from disposition by leasing in the Atlantic OCS Region, the Pacific OCS Region, or the Gulf of Mexico OCS Region Eastern Planning Area, as depicted on the maps referred to in this subparagraph, under the Memorandum on Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition, 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, or any area more than 50 miles but less than 100 miles of the coastline not withdrawn under that Memorandum that is included within the Gulf of Mexico OCS Region Eastern Planning Area as indicated on the map entitled Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas or within the Florida Straits Planning Area as indicated on the map entitled Atlantic OCS Region State Adjacent Zones and OCS Planning Areas, both of which are dated September 2005 and on file in the Office of the Director, Minerals Management Service.

(2)

Revocation of withdrawal

The provisions of the Memorandum on Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition, 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, are hereby revoked and are no longer in effect. Any tract only partially added to the Gulf of Mexico OCS Region Central Planning Area by this Act shall be eligible for leasing of the part of such tract that is included within the Gulf of Mexico OCS Region Central Planning Area, and the remainder of such tract that lies outside of the Gulf of Mexico OCS Region Central Planning Area may be developed and produced by the lessee of such partial tract using extended reach or similar drilling from a location on a leased area. Further, any area in the OCS withdrawn from leasing may be leased, and thereafter developed and produced by the lessee using extended reach or similar drilling from a location on a leased area located in an area available for leasing.

(3)

Petition for leasing

(A)

In general

The Governor of the State, upon concurrence of its legislature, may submit to the Secretary a petition requesting that the Secretary make available any area that is within the State’s Adjacent Zone, included within the provisions of paragraph (1), and that (i) is greater than 25 miles from any point on the coastline of a Neighboring State for the conduct of offshore leasing, pre-leasing, and related activities with respect to natural gas leasing; or (ii) is greater than 50 miles from any point on the coastline of a Neighboring State for the conduct of offshore leasing, pre-leasing, and related activities with respect to oil and gas leasing. The Adjacent State may also petition for leasing any other area within its Adjacent Zone if leasing is allowed in the similar area of the Adjacent Zone of the applicable Neighboring State, or if not allowed, if the Neighboring State, acting through its Governor, expresses its concurrence with the petition. The Secretary shall only consider such a petition upon making a finding that leasing is allowed in the similar area of the Adjacent Zone of the applicable Neighboring State or upon receipt of the concurrence of the Neighboring State. The date of receipt by the Secretary of such concurrence by the Neighboring State shall constitute the date of receipt of the petition for that area for which the concurrence applies. Except for any area described in the last sentence of paragraph (2), a petition for leasing any part of the Alabama Adjacent Zone that is a part of the Gulf of Mexico Eastern Planning Area, as indicated on the map entitled Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas which is dated September 2005 and on file in the Office of the Director, Minerals Management Service, shall require the concurrence of both Alabama and Florida.

(B)

Limitations on leasing

In its petition, a State with an Adjacent Zone that contains leased tracts may condition new leasing for oil and gas, or natural gas for tracts within 25 miles of the coastline by—

(i)

requiring a net reduction in the number of production platforms;

(ii)

requiring a net increase in the average distance of production platforms from the coastline;

(iii)

limiting permanent surface occupancy on new leases to areas that are more than 10 miles from the coastline;

(iv)

limiting some tracts to being produced from shore or from platforms located on other tracts; or

(v)

other conditions that the Adjacent State may deem appropriate as long as the Secretary does not determine that production is made economically or technically impracticable or otherwise impossible.

(C)

Action by secretary

Not later than 90 days after receipt of a petition under subparagraph (A), the Secretary shall approve the petition, unless the Secretary determines that leasing the area would probably cause serious harm or damage to the marine resources of the State’s Adjacent Zone. Prior to approving the petition, the Secretary shall complete an environmental assessment that documents the anticipated environmental effects of leasing in the area included within the scope of the petition.

(D)

Failure to act

If the Secretary fails to approve or deny a petition in accordance with subparagraph (C) the petition shall be considered to be approved 90 days after receipt of the petition.

(E)

Amendment of the 5-year leasing program

Notwithstanding section 18, within 180 days of the approval of a petition under subparagraph (C) or (D), after the expiration of the time limits in paragraph (1)(B), and within 180 days after the enactment of the Deep Ocean Energy Resources Act of 2008 for the areas made available for leasing under paragraph (2), the Secretary shall amend the current 5-Year Outer Continental Shelf Oil and Gas Leasing Program to include a lease sale or sales for at least 75 percent of the associated areas, unless there are, from the date of approval, expiration of such time limits, or enactment, as applicable, fewer than 12 months remaining in the current 5-Year Leasing Program in which case the Secretary shall include the associated areas within lease sales under the next 5-Year Leasing Program. For purposes of amending the 5-Year Program in accordance with this section, further consultations with States shall not be required. For purposes of this section, an environmental assessment performed under the provisions of the National Environmental Policy Act of 1969 to assess the effects of approving the petition shall be sufficient to amend the 5-Year Leasing Program.

(h)

Option To Extend Withdrawal From Leasing Within Certain Areas of the Outer Continental Shelf

A State, through its Governor and upon the concurrence of its legislature, may extend for a period of time of up to 5 years for each extension the withdrawal from leasing for all or part of any area within the State’s Adjacent Zone located more than 50 miles, but less than 100 miles, from the coastline that is subject to subsection (g)(1)(B). A State may extend multiple times for any particular area but not more than once per calendar year for any particular area. A State must prepare separate extensions, with separate votes by its legislature, for oil and gas leasing and for natural gas leasing. An extension by a State may affect some areas to be withdrawn from all leasing and some areas to be withdrawn only from one type of leasing. Extensions of the withdrawal from leasing of any part of the Alabama Adjacent Zone that is more than 50 miles, but less than 100 miles, from the coastline that is a part of the Gulf of Mexico OCS Region Eastern Planning Area, as indicated on the map entitled Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas which is dated September 2005 and on file in the Office of the Director, Minerals Management Service, may be made by either Alabama or Florida.

(i)

Effect of Other Laws

Adoption by any Adjacent State of any constitutional provision, or enactment of any State statute, that has the effect, as determined by the Secretary, of restricting either the Governor or the Legislature, or both, from exercising full discretion related to subsection (g) or (h), or both, shall automatically (1) prohibit any sharing of OCS Receipts under this Act with the Adjacent State, and its coastal political subdivisions, and (2) prohibit the Adjacent State from exercising any authority under subsection (h), for the duration of the restriction. The Secretary shall make the determination of the existence of such restricting constitutional provision or State statute within 30 days of a petition by any outer Continental Shelf lessee or coastal State.

(j)

Prohibition on Leasing East of the Military Mission Line

(1)

Notwithstanding any other provision of law, from and after the enactment of the Deep Ocean Energy Resources Act of 2008, no area of the outer Continental Shelf located in the Gulf of Mexico east of the military mission line may be offered for leasing for oil and gas or natural gas prior to January 1, 2022.

(2)

In this subsection, the term military mission line means a line located at 86 degrees, 41 minutes West Longitude, and extending south from the coast of Florida to the outer boundary of United States territorial waters in the Gulf of Mexico.

.

208.

Outer Continental Shelf Leasing Program

Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is amended—

(1)

in subsection (a), by adding at the end of paragraph (3) the following: The Secretary shall, in each 5-year program, include lease sales that when viewed as a whole propose to offer for oil and gas or natural gas leasing at least 75 percent of the available unleased acreage within each OCS Planning Area. Available unleased acreage is that portion of the outer Continental Shelf that is not under lease at the time of the proposed lease sale, and has not otherwise been made unavailable for leasing by law.;

(2)

in subsection (c), by striking so much as precedes paragraph (3) and inserting the following:

(c)
(1)

During the preparation of any proposed leasing program under this section, the Secretary shall consider and analyze leasing throughout the entire Outer Continental Shelf without regard to any other law affecting such leasing. During this preparation the Secretary shall invite and consider suggestions from any interested Federal agency, including the Attorney General, in consultation with the Federal Trade Commission, and from the Governor of any coastal State. The Secretary may also invite or consider any suggestions from the executive of any local government in a coastal State that have been previously submitted to the Governor of such State, and from any other person. Further, the Secretary shall consult with the Secretary of Defense regarding military operational needs in the outer Continental Shelf. The Secretary shall work with the Secretary of Defense to resolve any conflicts that might arise regarding offering any area of the outer Continental Shelf for oil and gas or natural gas leasing. If the Secretaries are not able to resolve all such conflicts, any unresolved issues shall be elevated to the President for resolution.

(2)

After the consideration and analysis required by paragraph (1), including the consideration of the suggestions received from any interested Federal agency, the Federal Trade Commission, the Governor of any coastal State, any local government of a coastal State, and any other person, the Secretary shall publish in the Federal Register a proposed leasing program accompanied by a draft environmental impact statement prepared pursuant to the National Environmental Policy Act of 1969. After the publishing of the proposed leasing program and during the comment period provided for on the draft environmental impact statement, the Secretary shall submit a copy of the proposed program to the Governor of each affected State for review and comment. The Governor may solicit comments from those executives of local governments in the Governor’s State that the Governor, in the discretion of the Governor, determines will be affected by the proposed program. If any comment by such Governor is received by the Secretary at least 15 days prior to submission to the Congress pursuant to paragraph (3) and includes a request for any modification of such proposed program, the Secretary shall reply in writing, granting or denying such request in whole or in part, or granting such request in such modified form as the Secretary considers appropriate, and stating the Secretary’s reasons therefor. All such correspondence between the Secretary and the Governor of any affected State, together with any additional information and data relating thereto, shall accompany such proposed program when it is submitted to the Congress.

; and

(3)

by adding at the end the following:

(i)

Projection of State Adjacent Zone Resources and State and Local Government Shares of OCS Receipts

Concurrent with the publication of the scoping notice at the beginning of the development of each 5-year outer Continental Shelf oil and gas leasing program, or as soon thereafter as possible, the Secretary shall—

(1)

provide to each Adjacent State a current estimate of proven and potential oil and gas resources located within the State’s Adjacent Zone; and

(2)

provide to each Adjacent State, and coastal political subdivisions thereof, a best-efforts projection of the OCS Receipts that the Secretary expects will be shared with each Adjacent State, and its coastal political subdivisions, using the assumption that the unleased tracts within the State’s Adjacent Zone are fully made available for leasing, including long-term projected OCS Receipts. In addition, the Secretary shall include a macroeconomic estimate of the impact of such leasing on the national economy and each State’s economy, including investment, jobs, revenues, personal income, and other categories.

.

209.

Coordination with Adjacent States

Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C. 1345) is amended—

(1)

in subsection (a) in the first sentence by inserting , for any tract located within the Adjacent State’s Adjacent Zone, after government; and

(2)

by adding the following:

(f)
(1)

No Federal agency may permit or otherwise approve, without the concurrence of the Adjacent State, the construction of a crude oil or petroleum products (or both) pipeline within the part of the Adjacent State’s Adjacent Zone that is withdrawn from oil and gas or natural gas leasing, except that such a pipeline may be approved, without such Adjacent State’s concurrence, to pass through such Adjacent Zone if at least 50 percent of the production projected to be carried by the pipeline within its first 10 years of operation is from areas of the Adjacent State’s Adjacent Zone.

(2)

No State may prohibit the construction within its Adjacent Zone or its State waters of a natural gas pipeline that will transport natural gas produced from the outer Continental Shelf. However, an Adjacent State may prevent a proposed natural gas pipeline landing location if it proposes two alternate landing locations in the Adjacent State, acceptable to the Adjacent State, located within 50 miles on either side of the proposed landing location.

.

210.

Environmental studies

Section 20(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 1346) is amended—

(1)

by inserting (1) after (d); and

(2)

by adding at the end the following:

(2)

For all programs, lease sales, leases, and actions under this Act, the following shall apply regarding the application of the National Environmental Policy Act of 1969:

(A)

Granting or directing lease suspensions and the conduct of all preliminary activities on outer Continental Shelf tracts, including seismic activities, are categorically excluded from the need to prepare either an environmental assessment or an environmental impact statement, and the Secretary shall not be required to analyze whether any exceptions to a categorical exclusion apply for activities conducted under the authority of this Act.

(B)

The environmental impact statement developed in support of each 5-year oil and gas leasing program provides the environmental analysis for all lease sales to be conducted under the program and such sales shall not be subject to further environmental analysis.

(C)

Exploration plans shall not be subject to any requirement to prepare an environmental impact statement, and the Secretary may find that exploration plans are eligible for categorical exclusion due to the impacts already being considered within an environmental impact statement or due to mitigation measures included within the plan.

(D)

Within each OCS Planning Area, after the preparation of the first development and production plan environmental impact statement for a leased tract within the Area, future development and production plans for leased tracts within the Area shall only require the preparation of an environmental assessment unless the most recent development and production plan environmental impact statement within the Area was finalized more than 10 years prior to the date of the approval of the plan, in which case an environmental impact statement shall be required.

.

211.

Federal Energy Natural Resources Enhancement Act of 2008

(a)

Short title

This section may be cited as the Federal Energy Natural Resources Enhancement Act of 2008.

(b)

Findings

The Congress finds the following:

(1)

Energy and minerals exploration, development, and production on Federal onshore and offshore lands, including bio-based fuel, natural gas, minerals, oil, geothermal, and power from wind, waves, currents, and thermal energy, involves significant outlays of funds by Federal and State wildlife, fish, and natural resource management agencies for environmental studies, planning, development, monitoring, and management of wildlife, fish, air, water, and other natural resources.

(2)

State wildlife, fish, and natural resource management agencies are funded primarily through permit and license fees paid to the States by the general public to hunt and fish, and through Federal excise taxes on equipment used for these activities.

(3)

Funds generated from consumptive and recreational uses of wildlife, fish, and other natural resources currently are inadequate to address the natural resources related to energy and minerals development on Federal onshore and offshore lands.

(4)

Funds available to Federal agencies responsible for managing Federal onshore and offshore lands and Federal-trust wildlife and fish species and their habitats are inadequate to address the natural resources related to energy and minerals development on Federal onshore and offshore lands.

(5)

Receipts derived from sales, bonus bids, and royalties under the mineral leasing laws of the United States are paid to the Treasury through the Minerals Management Service of the Department of the Interior.

(6)

None of the receipts derived from sales, bonus bids, and royalties under the minerals leasing laws of the United States are paid to the Federal or State agencies to examine, monitor, and manage wildlife, fish, air, water, and other natural resources related to natural gas, oil, and mineral exploration and development.

(c)

Purposes

It is the purpose of this section to—

(1)

authorize expenditures for the monitoring and management of wildlife and fish, and their habitats, and air, water, and other natural resources related to energy and minerals development on Federal onshore and offshore lands;

(2)

authorize expenditures for each fiscal year to the Secretary of the Interior and the States; and

(3)

use the appropriated funds to secure the necessary trained workforce or contractual services to conduct environmental studies, planning, development, monitoring, and post-development management of wildlife and fish and their habitats and air, water, and other natural resources that may be related to bio-based fuel, gas, mineral, oil, wind, or other energy exploration, development, transportation, transmission, and associated activities on Federal onshore and offshore lands, including, but not limited to—

(A)

pertinent research, surveys, and environmental analyses conducted to identify any impacts on wildlife, fish, air, water, and other natural resources from energy and mineral exploration, development, production, and transportation or transmission;

(B)

projects to maintain, improve, or enhance wildlife and fish populations and their habitats or air, water, or other natural resources, including activities under the Endangered Species Act of 1973;

(C)

research, surveys, environmental analyses, and projects that assist in managing, including mitigating either onsite or offsite, or both, the impacts of energy and mineral activities on wildlife, fish, air, water, and other natural resources; and

(D)

projects to teach young people to live off the land.

(d)

Definitions

In this section:

(1)

Enhancement program

The term Enhancement Program means the Federal Energy Natural Resources Enhancement Program established by this section.

(2)

State

The term State means the Governor of the State.

(e)

Authorization of Appropriations

There is authorized to be appropriated to carry out the Enhancement Program $150,000,000 for each of fiscal years 2009 through 2019.

(f)

Establishment of Federal Energy Natural Resources Enhancement Program

(1)

In general

There is established the Federal Energy Natural Resources Enhancement Program.

(2)

Payment to secretary of the interior

Beginning with fiscal year 2009, and in each fiscal year thereafter, one-third of amounts appropriated for the Enhancement Program shall be available to the Secretary of the Interior for use for the purposes described in subsection (c)(3).

(3)

Payment to States

(A)

In general

Beginning with fiscal year 2009, and in each fiscal year thereafter, two-thirds of amounts appropriated for the Enhancement Program shall be available to the States for use for the purposes described in (c)(3).

(B)

Use of payments by state

Each State shall use the payments made under this paragraph only for carrying out projects and programs for the purposes described in (c)(3).

(C)

Encourage use of private funds by state

Each State shall use the payments made under this paragraph to leverage private funds for carrying out projects for the purposes described in (c)(3).

(g)

Limitation on Use

Amounts made available under this section may not be used for the purchase of any interest in land.

(h)

Reports to Congress

(1)

In general

Beginning in fiscal year 2010 and continuing for each fiscal year thereafter, the Secretary of the Interior and each State receiving funds from the Enhancement Fund shall submit a report to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives.

(2)

Required information

Reports submitted to the Congress by the Secretary of the Interior and States under this subsection shall include the following information regarding expenditures during the previous fiscal year:

(A)

A summary of pertinent scientific research and surveys conducted to identify impacts on wildlife, fish, and other natural resources from energy and mineral developments.

(B)

A summary of projects planned and completed to maintain, improve or enhance wildlife and fish populations and their habitats or other natural resources.

(C)

A list of additional actions that assist, or would assist, in managing, including mitigating either onsite or offsite, or both, the impacts of energy and mineral development on wildlife, fish, and other natural resources.

(D)

A summary of private (non-Federal) funds used to plan, conduct, and complete the plans and programs identified in subparagraphs (A) and (B).

212.

Termination of effect of laws prohibiting the spending of appropriated funds for certain purposes

All provisions of existing Federal law prohibiting the spending of appropriated funds to conduct oil and natural gas leasing and preleasing activities, or to issue a lease to any person, for any area of the outer Continental Shelf shall have no force or effect.

213.

Outer Continental Shelf incompatible use

(a)

In General

No Federal agency may permit construction or operation (or both) of any facility, or designate or maintain a restricted transportation corridor or operating area on the Federal outer Continental Shelf or in State waters, that will be incompatible with, as determined by the Secretary of the Interior, oil and gas or natural gas leasing and substantially full exploration and production of tracts that are geologically prospective for oil or natural gas (or both).

(b)

Exceptions

Subsection (a) shall not apply to any facility, transportation corridor, or operating area the construction, operation, designation, or maintenance of which is or will be—

(1)

located in an area of the outer Continental Shelf that is unavailable for oil and gas or natural gas leasing by operation of law;

(2)

used for a military readiness activity (as defined in section 315(f) of Public Law 107–314; 16 U.S.C. 703 note); or

(3)

required in the national interest, as determined by the President.

214.

Repurchase of certain leases

(a)

Authority To Repurchase and Cancel Certain Leases

The Secretary of the Interior shall repurchase and cancel any Federal oil and gas, geothermal, coal, oil shale, tar sands, or other mineral lease, whether onshore or offshore, but not including any outer Continental Shelf oil and gas leases that are subject to litigation in the Court of Federal Claims on January 1, 2006, if the Secretary finds that such lease qualifies for repurchase and cancellation under the regulations authorized by this section.

(b)

Regulations

Not later than 365 days after the date of the enactment of this Act, the Secretary shall publish a final regulation stating the conditions under which a lease referred to in subsection (a) would qualify for repurchase and cancellation, and the process to be followed regarding repurchase and cancellation. Such regulation shall include, but not be limited to, the following:

(1)

The Secretary shall repurchase and cancel a lease after written request by the lessee upon a finding by the Secretary that—

(A)

a request by the lessee for a required permit or other approval complied with applicable law, except the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), and terms of the lease and such permit or other approval was denied;

(B)

a Federal agency failed to act on a request by the lessee for a required permit, other approval, or administrative appeal within a regulatory or statutory time-frame associated with the requested action, whether advisory or mandatory, or if none, within 180 days; or

(C)

a Federal agency attached a condition of approval, without agreement by the lessee, to a required permit or other approval if such condition of approval was not mandated by Federal statute or regulation in effect on the date of lease issuance, or was not specifically allowed under the terms of the lease.

(2)

A lessee shall not be required to exhaust administrative remedies regarding a permit request, administrative appeal, or other required request for approval for the purposes of this section.

(3)

The Secretary shall make a final agency decision on a request by a lessee under this section within 180 days of request.

(4)

Compensation to a lessee to repurchase and cancel a lease under this section shall be the amount that a lessee would receive in a restitution case for a material breach of contract.

(5)

Compensation shall be in the form of a check or electronic transfer from the Department of the Treasury from funds deposited into miscellaneous receipts under the authority of the same Act that authorized the issuance of the lease being repurchased.

(6)

Failure of the Secretary to make a final agency decision on a request by a lessee under this section within 180 days of request shall result in a 10 percent increase in the compensation due to the lessee if the lease is ultimately repurchased.

(c)

No Prejudice

This section shall not be interpreted to prejudice any other rights that the lessee would have in the absence of this section.

215.

Offsite environmental mitigation

Notwithstanding any other provision of law, any person conducting activities under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the Geothermal Steam Act (30 U.S.C. 1001 et seq.), the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 U.S.C. 552 et seq.), the General Mining Act of 1872 (30 U.S.C. 22 et seq.), the Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in satisfying any mitigation requirements associated with such activities propose mitigation measures on a site away from the area impacted and the Secretary of the Interior shall accept these proposed measures if the Secretary finds that they generally achieve the purposes for which mitigation measures appertained.

216.

Minerals Management Service

The bureau known as the Minerals Management Service in the Department of the Interior shall be known as the National Ocean Resources and Royalty Service.

217.

Authority to use decommissioned offshore oil and gas platforms and other facilities for artificial reef, scientific research, or other uses

(a)

Short Title

This section may be cited as the Rigs to Reefs Act of 2008.

(b)

In General

The Outer Continental Shelf Lands Act (43 U.S.C. 1301 et seq.) is amended by inserting after section 9 the following:

10.

Use of decommissioned offshore oil and gas platforms and other facilities for artificial reef, scientific research, or other uses

(a)

In General

The Secretary shall issue regulations under which the Secretary may authorize use of an offshore oil and gas platform or other facility that is decommissioned from service for oil and gas purposes for an artificial reef, scientific research, or any other use authorized under section 8(p) or any other applicable Federal law.

(b)

Transfer Requirements

The Secretary shall not allow the transfer of a decommissioned offshore oil and gas platform or other facility to another person unless the Secretary is satisfied that the transferee is sufficiently bonded, endowed, or otherwise financially able to fulfill its obligations, including but not limited to—

(1)

ongoing maintenance of the platform or other facility;

(2)

any liability obligations that might arise;

(3)

removal of the platform or other facility if determined necessary by the Secretary; and

(4)

any other requirements and obligations that the Secretary may deem appropriate by regulation.

(c)

Plugging and Abandonment

The Secretary shall ensure that plugging and abandonment of wells is accomplished at an appropriate time.

(d)

Potential To Petition To Opt-Out of Regulations

An Adjacent State acting through a resolution of its legislature, with concurrence of its Governor, may preliminarily petition to opt-out of the application of regulations promulgated under this section to platforms and other facilities located in the area of its Adjacent Zone within 12 miles of the coastline. Upon receipt of the preliminary petition, the Secretary shall complete an environmental assessment that documents the anticipated environmental effects of approving the petition. The Secretary shall provide the environmental assessment to the State, which then has the choice of no action or confirming its petition by further action of its legislature, with the concurrence of its Governor. The Secretary is authorized to except such area from the application of such regulations, and shall approve any confirmed petition.

(e)

Limitation on Liability

A person that had used an offshore oil and gas platform or other facility for oil and gas purposes and that no longer has any ownership or control of the platform or other facility shall not be liable under Federal law for any costs or damages arising from such platform or other facility after the date the platform or other facility is used for any purpose under subsection (a), unless such costs or damages arise from—

(1)

use of the platform or other facility by the person for development or production of oil or gas; or

(2)

another act or omission of the person.

(f)

Other Leasing and Use not Affected

This section, and the use of any offshore oil and gas platform or other facility for any purpose under subsection (a), shall not affect—

(1)

the authority of the Secretary to lease any area under this Act; or

(2)

any activity otherwise authorized under this Act.

.

(c)

Deadline for Regulations

The Secretary of the Interior shall issue regulations under subsection (b) by not later than 180 days after the date of the enactment of this Act.

(d)

Study and Report on Effects of Removal of Platforms

Not later than one year after the date of enactment of this Act, the Secretary of the Interior, in consultation with other Federal agencies as the Secretary deems advisable, shall study and report to the Congress regarding how the removal of offshore oil and gas platforms and other facilities from the outer Continental Shelf would affect existing fish stocks and coral populations.

218.

Repeal of requirement to conduct comprehensive inventory of OCS oil and natural gas resources

The Energy Policy Act of 2005 (Public Law 109–58) is amended—

(1)

by repealing section 357 (119 Stat. 720; 42 U.S.C. 15912); and

(2)

in the table of contents in section 1(b), by striking the item relating to such section 357.

219.

Leases for areas located within 100 miles of California or Florida

(a)

Authorization To Cancel and Exchange Certain Existing Oil and Gas Leases; Prohibition on Submittal of Exploration Plans for Certain Leases Prior to June 30, 2012

(1)

Authority

Within 2 years after the date of enactment of this Act, the lessee of an existing oil and gas lease for an area located completely within 100 miles of the coastline within the California or Florida Adjacent Zones shall have the option, without compensation, of exchanging such lease for a new oil and gas lease having a primary term of 5 years. For the area subject to the new lease, the lessee may select any unleased tract on the outer Continental Shelf that is in an area available for leasing. Further, with the permission of the relevant Governor, such a lessee may convert its existing oil and gas lease into a natural gas lease having a primary term of 5 years and covering the same area as the existing lease or another area within the same State’s Adjacent Zone within 100 miles of the coastline.

(2)

Administrative process

The Secretary of the Interior shall establish a reasonable administrative process to implement paragraph (1). Exchanges and conversions under subsection (a), including the issuance of new leases, shall not be considered to be major Federal actions for purposes of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Further, such actions conducted in accordance with this section are deemed to be in compliance all provisions of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).

(3)

Operating restrictions

A new lease issued in exchange for an existing lease under this section shall be subject to such national defense operating stipulations on the OCS tract covered by the new lease as may be applicable upon issuance.

(4)

Priority

The Secretary shall give priority in the lease exchange process based on the amount of the original bonus bid paid for the issuance of each lease to be exchanged. The Secretary shall allow leases covering partial tracts to be exchanged for leases covering full tracts conditioned upon payment of additional bonus bids on a per-acre basis as determined by the average per acre of the original bonus bid per acre for the partial tract being exchanged.

(5)

Exploration plans

Any exploration plan submitted to the Secretary of the Interior after the date of the enactment of this Act and before July 1, 2012, for an oil and gas lease for an area wholly within 100 miles of the coastline within the California Adjacent Zone or Florida Adjacent Zone shall not be treated as received by the Secretary until the earlier of July 1, 2012, or the date on which a petition by the Adjacent State for oil and gas leasing covering the area within which is located the area subject to the oil and gas lease was approved.

(b)

Further Lease Cancellation and Exchange Provisions

(1)

Cancellation of lease

As part of the lease exchange process under this section, the Secretary shall cancel a lease that is exchanged under this section.

(2)

Consent of lessees

All lessees holding an interest in a lease must consent to cancellation of their leasehold interests in order for the lease to be cancelled and exchanged under this section.

(3)

Waiver of rights

As a prerequisite to the exchange of a lease under this section, the lessee must waive any rights to bring any litigation against the United States related to the transaction.

(4)

Plugging and abandonment

The plugging and abandonment requirements for any wells located on any lease to be cancelled and exchanged under this section must be complied with by the lessees prior to the cancellation and exchange.

(c)

Area Partially Within 100 Miles of Florida

An existing oil and gas lease for an area located partially within 100 miles of the coastline within the Florida Adjacent Zone may only be developed and produced using wells drilled from well-head locations at least 100 miles from the coastline to any bottom-hole location on the area of the lease. This subsection shall not apply if Florida has petitioned for leasing closer to the coastline than 100 miles.

(d)

Existing Oil and Gas Lease Defined

In this section the term existing oil and gas lease means an oil and gas lease in effect on the date of the enactment of this Act.

220.

Coastal impact assistance

Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 1356a) is repealed.

221.

Oil shale and tar sands amendments

(a)

Repeal of Requirement To Establish Payments

Section 369(o) of the Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 728; 42 U.S.C. 15927) is repealed.

(b)

Treatment of Revenues

Section 21 of the Mineral Leasing Act (30 U.S.C. 241) is amended by adding at the end the following:

(e)

Revenues

(1)

In general

Notwithstanding the provisions of section 35, all revenues received from and under an oil shale or tar sands lease shall be disposed in the Treasury as miscellaneous receipts.

(2)

Royalty rates for commercial leases

(A)

Royalty rates

The Secretary shall model the royalty schedule for oil shale and tar sands leases based on the royalty program currently in effect for the production of synthetic crude oil from oil sands in the Province of Alberta, Canada.

(B)

Reduction

The Secretary shall reduce any royalty otherwise required to be paid under subparagraph (A) under any oil shale or tar sands lease on a sliding scale based upon market price, with a 10 percent reduction if the average futures price of NYMEX Light Sweet Crude, or a similar index, drops, for the previous quarter year, below $50 (in January 1, 2006, dollars), and an 80 percent reduction if the average price drops below $30 (in January 1, 2006, dollars) for the quarter previous to the one in which the production is sold.

.

III

NUCLEAR ENERGY

301.

Incentives for innovative technologies

(a)

Definition of project cost

Section 1701(1) of the Energy Policy Act of 2005 (42 U.S.C. 16511(1)) is amended by inserting a new paragraph (4) and renumbering the paragraphs accordingly:

(4)

Project cost

The term project cost means all costs associated with the development, planning, design, engineering, permitting and licensing, construction, commissioning, start-up, shakedown and financing of the facility, including but not limited to reasonable escalation and contingencies, the cost of and fees for the guarantee, reasonably required reserve funds, initial working capital and interest during construction.

.

(b)

Terms and conditions

Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by striking subsections (b) and (c) and inserting the following:

(b)

Specific appropriation or contribution

(1)

In general

No guarantee shall be made unless—

(A)

an appropriation for the cost has been made; or

(B)

the Secretary has received from the borrower a payment in full for the cost of the obligation and deposited the payment into the Treasury; or

(C)

a combination of (A) and (B) has been made, that when combined is sufficient to cover the cost of the obligation.

(2)

Relation to other laws

Section 504 (b) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c (b)) shall not apply to a loan guarantee made in accordance with paragraph (1)(B).

.

(c)

Amount

Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by striking subsection (c) and inserting the following:

(c)

Amount

(1)

In general

Subject to paragraph (2), the Secretary shall guarantee 100 percent of the obligation for a facility that is the subject of the guarantee, or a lesser amount if requested by the borrower.

(2)

Limitation

The total amount of loans guaranteed for a facility by the Secretary shall not exceed 80 percent of the total cost of the facility, as estimated at the time at which the guarantee is issued.

.

(d)

Fees

Section 1702(h) of the Energy Policy Act of 2005 (42 U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the following:

(2)

Availability

Fees collected under this subsection shall—

(A)

be deposited by the Secretary into a special fund in the Treasury to be known as the Incentives For Innovative Technologies Fund; and

(B)

remain available to the Secretary for expenditure, without further appropriation or fiscal year limitation, for administrative expenses incurred in carrying out this title.

.

302.

Standby support for certain nuclear plant delays

(a)

Definitions

Section 638(a) of the Energy Policy Act of 2005 (42 U.S.C. 16014(a)) is amended as follows:

(1)

By inserting the following:

(4)

Full power operation

The term full power operation means whichever occurs first of—

(A)

the commercial operation date or the equivalent under the terms of the financing documents for such facility, or

(B)

operation of such facility at an average of 50 percent or greater of nameplate capacity over any consecutive 30-day period.

(5)

Increased project costs

The term increased project costs means the increased cost of constructing, commissioning, testing, operating or maintaining a reactor prior to full-power operation incurred as a result of a delay covered by the contract including but not limited to costs of demobilization and remobilization, increased costs of equipment, materials and labor due to delay (including idle time), increased general and administrative costs, and escalation costs for completing construction.

(6)

Litigation

The term litigation means adjudication in Federal, State, local or tribal courts and administrative proceedings or hearings at or before Federal, State, local or tribal agencies or administrative bodies.

.

(2)

By redesignating paragraph (4) as paragraph (7).

(b)

Contract authority

Section 638(b) of the Energy Policy Act of 2005 (42 U.S.C. §16014(b)) is amended by striking paragraph (1) and inserting the following:

(1)

In general

The Secretary may enter into contracts under this section with sponsors of an advanced nuclear facility that cover at any one time outstanding a total of not more than 6 reactors, with the 6 reactors consisting of not more than 3 different reactor designs, in accordance with paragraph (2). In the event that any contract entered into under this section terminates or expires without a claim being paid by the Secretary thereunder, then the Secretary may enter into a new contract under this section in replacement or substitution for such contract.

.

(c)

Covered costs

Section 638(d) of the Energy Policy Act of 2005 (42. U.S.C. §16014(d)) is amended by striking paragraphs (2) and (3) and inserting the following:

(2)

Coverage

In the case of reactors that receive combined licenses and on which construction is commenced, the Secretary shall pay—

(A)

100 percent of the covered costs of delay that occur after the initial 30-day period of covered delay; but

(B)

not more than $500,000,000 per contract.

(3)

Covered debt obligations

Debt obligations covered under subparagraph (A) of paragraph (5) shall include but not be limited to debt obligations incurred to pay increased project costs.

.

(d)

Dispute resolution

Section 638 of the Energy Policy Act of 2005 (42 U.S.C. 16014) is amended as follows:

(1)

by inserting the following:

(f)

Dispute resolution

Any controversy or claim arising out of or relating to any contract entered into under this section shall be determined by arbitration in Washington, DC according to the then prevailing Commercial Arbitration Rules of the American Arbitration Association. A decision by the arbitrator(s) shall be final and binding, and any court having jurisdiction may enter judgment on it.

; and

(2)

by designating subsections (f), (g), and (h) as subsections (g), (h), and (i) respectively.

303.

Authorization for nuclear power 2010 program

Section 952(c) of the Energy Policy Act of 2005 (42 U.S.C. 16014) is amended by striking subsections (1) and (2) and substituting the following:

(1)

In general

The Secretary shall carry out a Nuclear Power 2010 Program to position the nation to start construction of new nuclear power plants by 2010 or as close to 2010 as achievable.

(2)

Scope of program

The Nuclear Power 2010 Program shall be cost-shared with the private sector and shall support the following objectives:

(A)

Demonstrating the licensing process for new nuclear power plants, including the Nuclear Regulatory Commission process for obtaining early site permits (EPS), combined construction/operating licenses (cols), and design certifications.

(B)

Conducting first-of-a-kind design and engineering work on at least two advanced nuclear reactor designs sufficient to bring those designs to a state of design completion sufficient to allow development of firm cost estimates.

(3)

Authorization of appropriations

There are authorized to be appropriated to the Secretary to carry out the Nuclear Power 2010 Program—

(A)

$182,800,000 for fiscal year 2008;

(B)

$159,600,000 for fiscal year 2009;

(C)

$135,600,000 for fiscal year 2010;

(D)

$46,900,000 for fiscal year 2011; and

(E)

$2,200,000 for fiscal year 2012.

304.

Domestic manufacturing base for nuclear components and equipment

(a)

Establishment of interagency working group

(1)

Purposes

(A)

to increase the competitiveness of the United States nuclear energy products and services industries;

(B)

to identify the stimulus or incentives necessary to cause United States manufacturers of nuclear energy products to expand manufacturing capacity;

(C)

to facilitate the export of United States nuclear energy products and services;

(D)

to reduce the trade deficit of the United States through the export of United States nuclear energy products and services;

(E)

to retain and create nuclear energy manufacturing and related service jobs in the United States;

(F)

to integrate the objectives in paragraphs (1) through (4) in a manner consistent with the interests of the United States, into the foreign policy of the United States; and

(G)

to authorize funds for increasing United States capacity to manufacture nuclear energy products and supply nuclear energy services.

(2)

Establishment

(A)

There shall be established an interagency working group that, in consultation with representative industry organizations and manufacturers of nuclear energy products, shall make recommendations to coordinate the actions and programs of the Federal Government in order to promote increasing domestic manufacturing capacity and export of domestic nuclear energy products and services.

(B)

The Interagency Working Group shall be composed of—

(i)

The Secretary of Energy, or the Secretary’s designee, shall chair the interagency working group. The Secretary of Energy shall provide staff for carrying out the functions of the interagency working group established under this section.

(ii)

representatives of—

(I)

the Department of Energy;

(II)

the Department of Commerce;

(III)

the Department of Defense;

(IV)

the Department of Treasury;

(V)

the Department of State;

(VI)

the Environmental Protection Agency;

(VII)

the United States Agency for International Development;

(VIII)

the Export-Import Bank of the United States;

(IX)

the Trade and Development Agency;

(X)

the Small Business Administration;

(XI)

the Office of the U.S. Trade Representative; and

(XII)

other Federal agencies, as determined by the President.

(iii)

The heads of appropriate agencies shall detail such personnel and furnish such services to the interagency group, with or without reimbursement, as may be necessary to carry out the group’s functions.

(3)

Duties of the interagency working group

(A)

Within six months of enactment, the interagency working group established under section (1)(A) shall identify the actions necessary to promote the safe development and application in foreign countries of nuclear energy products and services in order to—

(i)

increase electricity generation from nuclear energy sources through development of new generation facilities;

(ii)

improve the efficiency, safety and/or reliability of existing nuclear generating facilities through modifications; and

(iii)

enhance the safe treatment, handling, storage and disposal of used nuclear fuel.

(B)

Within 6 months of enactment, the interagency working group shall identify mechanisms (including, but not limited to, tax stimulus for investment, loans and loan guarantees, and grants) necessary for United States companies to increase their capacity to produce or provide nuclear energy products and services, and to increase their exports of nuclear energy products and services. The interagency working group shall identify administrative or legislative initiatives necessary to—

(i)

encourage United States companies to increase their manufacturing capacity for nuclear energy products;

(ii)

provide technical and financial assistance and support to small and mid-sized businesses to establish quality assurance programs in accordance with domestic and international nuclear quality assurance code requirements;

(iii)

encourage, through financial incentives, private sector capital investment to expand manufacturing capacity; and

(iv)

provide technical assistance and financial incentives to small and mid-sized businesses to develop the work-force necessary to increase manufacturing capacity and meet domestic and international nuclear quality assurance code requirements.

(C)

Within 9 months of enactment, the interagency working group shall provide a report to Congress on its findings under Section (2)(A) and (B), including recommendations for new legislative authority where necessary.

(4)

Trade assistance

The interagency working group shall encourage the member agencies of the interagency working group to—

(A)

provide technical training and education for international development personnel and local users in their own country;

(B)

provide financial and technical assistance to nonprofit institutions that support the marketing and export efforts of domestic companies that provide nuclear energy products and services;

(C)

develop nuclear energy projects in foreign countries;

(D)

provide technical assistance and training materials to loan officers of the World Bank, international lending institutions, commercial and energy attaches at embassies of the United States and other appropriate personnel in order to provide information about nuclear energy products and services to foreign governments or other potential project sponsors;

(E)

support, through financial incentives, private sector efforts to commercialize and export nuclear energy products and services in accordance with the subsidy codes of the World Trade Organization; and

(F)

augment budgets for trade and development programs in order to support prefeasibility or feasibility studies for projects that utilize nuclear energy products and services.

(5)

Authorization of appropriations

There are authorized to be appropriated to the Secretary for purposes of carrying out this title $20,000,000 for fiscal years 2008 and 2009.

(b)

Credit for qualifying nuclear power manufacturing

Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code is amended by inserting after section 48B the following new section:

48C.

Qualifying nuclear power manufacturing credit

(a)

In general

For purposes of section 46, the qualifying nuclear power manufacturing credit for any taxable year is an amount equal to 20 percent of the qualified investment for such taxable year.

(b)

Qualified investment

(1)

In general

For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year—

(A)

which is either part of a qualifying nuclear power manufacturing project or is qualifying nuclear power manufacturing equipment,

(B)
(i)

the construction, reconstruction, or erection of which is completed by the taxpayer, or

(ii)

which is acquired by the taxpayer if the original use of such property commences with the taxpayer,

(C)

with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and

(D)

which is placed in service on or before December 31, 2015.

(2)

Special rule for certain subsidized property

Rules similar to section 48(a)(4) shall apply for purposes of this section.

(3)

Certain qualified progress expenditures rules made applicable

Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.

(c)

Definitions

For purposes of this section—

(1)

Qualifying nuclear power manufacturing project

The term qualifying nuclear power manufacturing project means any project which is designed primarily to enable the taxpayer to produce or test equipment necessary for the construction or operation of a nuclear power plant.

(2)

Qualifying nuclear power manufacturing equipment

The term qualifying nuclear power manufacturing equipment means machine tools and other similar equipment, including computers and other peripheral equipment, acquired or constructed primarily to enable the taxpayer to produce or test equipment necessary for the construction or operation of a nuclear power plant.

(3)

Project

The term project includes any building constructed to house qualifying nuclear power manufacturing equipment.

.

(c)

Conforming amendments

(1)

Additional investment credit

Section 46 is amended by—

(A)

striking and at the end of paragraph (3);

(B)

striking the period at the end of paragraph (4) and inserting , and; and

(C)

inserting after paragraph (4) the following new paragraph:

(5)

the qualifying nuclear power manufacturing credit.

.

(2)

Application of section 49

Subparagraph (C) of section 49(a)(1) is amended by—

(A)

striking and at the end of clause (iii);

(B)

striking the period at the end of clause (iv) and inserting , and; and

(C)

inserting after clause (iv) the following new clause:

(v)

the basis of any property which is part of a qualifying nuclear power equipment manufacturing project under section 48C.

.

(3)

Table of sections

The table of sections preceding section 46 is amended by inserting after the line for section 48B the following new line:

Sec. 48C. Qualifying nuclear power manufacturing credit.

.

(d)

Effective date

The amendments made by this section shall apply to property—

(1)

the construction, reconstruction, or erection of which of began after the date of enactment; or

(2)

which was acquired by the taxpayer on or after the date of enactment and not pursuant to a binding contract which was in effect on the day prior to the date of enactment.

305.

Nuclear energy workforce

Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is amended (1) by redesignating subsection (d) as subsection (e); and by inserting after subsection (c) the following:

(d)

Workforce training

(1)

In general

The Secretary of Labor, in cooperation with the Secretary of Energy, shall promulgate regulations to implement a program to provide workforce training to meet the high demand for workers skilled in the nuclear utility and nuclear energy products and services industries.

(2)

Consultation

In carrying out this subsection, the Secretary of Labor shall consult with representatives of the nuclear utility and nuclear energy products and services industries, and organized labor, concerning skills that are needed in those industries.

(3)

Authorization of appropriations

There are authorized to be appropriated to the Secretary of Labor, working in coordination with the Secretaries of Education and Energy $20,000,000 for each of fiscal years 2008 through 2012 for use in implementing a program to provide workforce training to meet the high demand for workers skilled in the nuclear utility and nuclear energy products and services industries.

.

306.

Licensing of new nuclear power plants

Sections 189 and 185 of the Atomic Energy Act are amended thus:

(1)

Hearings and judicial review

Section 189a.(1)(A) is modified thus: In any proceeding under this Act, for the granting, suspending, revoking, or amending of any license or construction permit, or application to transfer control, and in any proceeding for the issuance or modification of rules and regulations dealing with the activities of licensees, and in any proceeding for the payment of compensation, an award, or royalties under section 153, 157, 186c., or 188, the Commission shall grant a hearing upon the request of any person whose interest may be affected by the proceeding, and shall admit any such person as a party to such proceeding. The Commission may, in the absence of a request therefor by any person whose interest may be affected, issue a construction permit, an operating license or an amendment to a construction permit or an amendment to an operating license without a hearing, but upon thirty days’ notice and publication once in the Federal Register of its intent to do so. The Commission may dispense with such thirty days’ notice and publication with respect to any application for an amendment to a construction permit or an amendment to an operating license upon a determination by the Commission that the amendment involves no significant hazards consideration..

(2)

Construction permits and operating licenses

Section 185b is modified thus: After any public hearing held under section 189a.(1)(A), the Commission shall issue to the applicant a combined construction and operating license if the application contains sufficient information to support the issuance of a combined license and the Commission determines that there is reasonable assurance that the facility will be constructed and will operate in conformity with the license, the provisions of this Act, and the Commission’s rules and regulations. The Commission shall identify within the combined license the inspections, tests, and analyses, including those applicable to emergency planning, that the licensee shall perform, and the acceptance criteria that, if met, are necessary and sufficient to provide reasonable assurance that the facility has been constructed and will be operated in conformity with the license, the provisions of this Act, and the Commission’s rules and regulations. Following issuance of the combined license, the Commission shall ensure that the prescribed inspections, tests, and analyses are performed and, prior to operation of the facility, shall find that the prescribed acceptance criteria are met. Any finding made under this subsection shall not require a hearing except as provided in section 189a.(1)(B)..

307.

Investment tax credit for investments in nuclear power facilities

(a)

New credit for nuclear power facilities

Section 46 is amended by—

(1)

striking and at the end of paragraph (3);

(2)

striking the period at the end of paragraph (4) and inserting , and; and

(3)

inserting after paragraph (4) the following new paragraph:

(5)

the nuclear power facility construction credit.

.

(b)

Nuclear power facility construction credit

Subpart E of part IV of subchapter A of chapter 1 is amended by inserting after section 48B the following new section:

48C.

Nuclear power facility construction credit

(a)

In general

For purposes of section 46, the nuclear power facility construction credit for any taxable year is 10 percent of the qualified nuclear power facility expenditures with respect to a qualified nuclear power facility.

(b)

When expenditures taken into account

(1)

In general

Qualified nuclear power facility expenditures shall be taken into account for the taxable year in which the qualified nuclear power facility is placed in service.

(2)

Coordination with subsection (c)

The amount which would (but for this paragraph) be taken into account under paragraph (1) with respect to any qualified nuclear power facility shall be reduced (but not below zero) by any amount of qualified nuclear power facility expenditures taken into account under subsection (c) by the taxpayer or a predecessor of the taxpayer (or, in the case of a sale and leaseback described in section 50(a)(2)(C), by the lessee), to the extent any amount so taken into account has not been required to be recaptured under section 50(a).

(c)

Progress expenditures

(1)

In general

A taxpayer may elect to take into account qualified nuclear power facility expenditures.

(A)

Self-constructed property

In the case of a qualified nuclear power facility which is a self-constructed facility, in the taxable year for which such expenditures are properly chargeable to capital account with respect to such facility.

(B)

Acquired facility

In the case of a qualified nuclear facility which is not self-constructed property, in the taxable year in which such expenditures are paid.

(2)

Special rules for applying paragraph (1)

For purposes of paragraph (1):

(A)

Component parts, etc

Property which is not self-constructed property and which is to be a component part of, or is otherwise to be included in, any facility to which this subsection applies shall be taken into account in accordance with paragraph (1)(B).

(B)

Certain borrowing disregarded

Any amount borrowed directly or indirectly by the taxpayer on a nonrecourse basis from the person constructing the facility for the taxpayer shall not be treated as an amount expended for such facility.

(C)

Limitation for facilities or components which are not self-constructed

(i)

In general

In the case of a facility or a component of a facility which is not self-constructed, the amount taken into account under paragraph (1)(B) for any taxable year shall not exceed the amount which represents the portion of the overall cost to the taxpayer of the facility or component of a facility which is properly attributable to the portion of the facility or component which is completed during such taxable year.

(ii)

Carry-over of certain amounts

In the case of a facility or component of a facility which is not self-constructed, if for the taxable year—

(I)

the amount which (but for clause (i)) would have been taken into account under paragraph (1)(B) exceeds the limitation of clause (i), then the amount of such excess shall be taken into account under paragraph (1)(B) for the succeeding taxable year; or

(II)

the limitation of clause (i) exceeds the amount taken into account under paragraph (1)(B), then the amount of such excess shall increase the limitation of clause (i) for the succeeding taxable year.

(D)

Determination of percentage of completion

The determination under subparagraph (C)(i) of the portion of the overall cost to the taxpayer of the construction which is properly attributable to construction completed during any taxable year shall be made on the basis of engineering or architectural estimates or on the basis of cost accounting records. Unless the taxpayer establishes otherwise by clear and convincing evidence, the construction shall be deemed to be completed not more rapidly than ratably over the normal construction period.

(E)

No progress expenditures for certain prior periods

No qualified nuclear facility expenditures shall be taken into account under this subsection for any period before the first day of the first taxable year to which an election under this subsection applies.

(F)

No progress expenditures for property for year it is placed in service, etc

In the case of any qualified nuclear facility, no qualified nuclear facility expenditures shall be taken into account under this subsection for the earlier of—

(i)

the taxable year in which the facility is placed in service; or

(ii)

the first taxable year for which recapture is required under section 50(a)(2) with respect to such facility, or for any taxable year thereafter.

(3)

Self-constructed

For purposes of this subsection:

(A)

The term self-constructed facility means any facility if it is reasonable to believe that more than half of the qualified nuclear facility expenditures for such facility will be made directly by the tax-payer.

(B)

A component of a facility shall be treated as not self-constructed if the cost of the component is at least 5 percent of the expected cost of the facility and the component is acquired by the taxpayer.

(4)

Election

An election shall be made under this section for a qualified nuclear power facility by claiming the nuclear power facility construction credit for expenditures described in paragraph (1) on a tax return filed by the due date for such return (taking into account extensions). Such an election shall apply to the taxable year for which made and all subsequent taxable years. Such an election, once made, may be revoked only with the consent of the Secretary.

(d)

Definitions and special rules

For purposes of this section:

(1)

Qualified nuclear power facility

The term qualified nuclear power facility means an advanced nuclear power facility, as defined in section 45J, the construction of which was approved by the Nuclear Regulatory Commission on or before December 31, 2013.

(2)

Qualified nuclear power facility expenditures

(A)

In general

The term qualified nuclear power facility expenditures means any amount properly chargeable to capital account—

(i)

with respect to a qualified nuclear power facility;

(ii)

for which depreciation is allowable under section 168; and

(iii)

which are incurred before the qualified nuclear power facility is placed in service or in connection with the placement of such facility in service.

(B)

Pre-effective date expenditures

Qualified nuclear power facility expenditures do not include any expenditures incurred by the taxpayer before January 1, 2007, unless such expenditures constitute less than 20 percent of the total qualified nuclear power facility expenditures (determined without regard to this subparagraph) for the qualified nuclear power facility.

(3)

Delays and suspension of construction

(A)

In general

For purposes of applying this section and section 50, a nuclear power facility that is under construction shall cease to be treated as a facility that will be a qualified nuclear power facility as of the earlier of—

(i)

the date on which the taxpayer decides to terminate construction of the facility; or

(ii)

the last day of any 24-month period in which the taxpayer has failed to incur qualified nuclear power facility expenditures totaling at least 20 percent of the expected total cost of the nuclear power facility.

(B)

Authority to waive

The Secretary may waive the application of clause (ii) of subparagraph (A) if the Secretary determines that the taxpayer intended to continue the construction of the qualified nuclear power facility and the expenditures were not incurred for reasons outside the control of the taxpayer.

(C)

Resumption of construction

If a nuclear power facility that is under construction ceases to be a qualified nuclear power facility by reason of paragraph (2) and work is subsequently resumed on the construction of such facility—

(i)

the date work is subsequently resumed shall be treated as the date that construction began for purposes of paragraph (1); and

(ii)

if the facility is a qualified nuclear power facility, the qualified nuclear power facility expenditures shall be determined without regard to any delay or temporary termination of construction of the facility.

.

(c)

Provisions relating to credit recapture

(1)

Progress expenditure recapture rules

(A)

Basic rules

Subparagraph (A) of section 50(a)(2) is amended to read as follows:

(A)

In general

If during any taxable year any building to which section 47(d) applied or any facility to which section 48C(c) applied ceases (by reason of sale or other disposition, cancellation or abandonment of contract, or otherwise) to be, with respect to the taxpayer, property which, when placed in service, will be a qualified rehabilitated building or a qualified nuclear power facility, then the tax under this chapter for such taxable year shall be increased by an amount equal to the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero the credit determined under this subpart with respect to such building or facility.

.

(B)

Amendment to excess credit recapture rule

Subparagraph (B) of section 50(a)(2) is amended by—

(i)

inserting or paragraph (2) of section 48C(b) after paragraph (2) of section 47(b);

(ii)

inserting or section 48C(b)(1) after section 47(b)(1); and

(iii)

inserting or facility after building.

(C)

Amendment of sale and leaseback rule

Subparagraph (C) of section 50(a)(2) is amended by—

(i)

inserting or section 48C(c) after section 47(d); and

(ii)

inserting or qualified nuclear power facility expenditures after qualified rehabilitation expenditures.

(D)

Other amendment

Subparagraph (D) of section 50(a)(2) is amended by inserting or section 48C(c) after section 47(d).

(d)

No basis adjustment

Section 50(c) is amended by inserting at the end thereof the following new paragraph:

(6)

Nuclear power facility construction credit

Paragraphs (1) and (2) shall not apply to the nuclear power facility construction credit.

.

(e)

Technical amendments

The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the line for section 48B the following new line:

Sec. 48C. Nuclear power facility construction credit.

.

(f)

Effective date

The amendments made by this section shall be effective for expenditures incurred and property placed in service in taxable years beginning after the date of enactment.

308.

National Nuclear Energy Council

(a)

In general

(1)

The Secretary of Energy shall establish a National Nuclear Energy Council (hereinafter the Council).

(2)

The National Nuclear Energy Council shall be subject to the requirements of the Federal Advisory Committee Act (5 U.S.C. Appendix 2).

(b)

Purpose

The National Nuclear Energy Council shall—

(1)

serve in an advisory capacity to the Secretary of Energy regarding nuclear energy on matters submitted to the Council by the Secretary of Energy; and

(2)

advise, inform, and make recommendations to the Secretary of Energy, and represent the views of the nuclear energy industry with respect to any matter relating to nuclear energy.

(c)

Membership and organization

(1)

The members of the Council shall be appointed by the Secretary of Energy.

(2)

The Council may establish such study and administrative committees as it may deem appropriate. Study committees shall only assist the Council in preparing its advice, information, or recommendations to the Secretary of Energy. Administrative committees shall be formed solely for the purpose of assisting the Council or its Chairman in the management of the internal affairs of the Council.

(3)

The officers of the Council shall consist of a Chairman, a Vice Chairman, and such other officers as may be approved by the Council. The Chairman and Vice Chairman must be members of the Council and shall receive no compensation for service as officers of the Council.

(4)

The Secretary of Energy shall be Cochairman of the Council. If the Secretary of Energy designates a full-time, salaried official of the Department of Energy as his alternate, such alternate may exercise any duties of the Secretary of Energy and may perform any function on the Council otherwise reserved for the Secretary of Energy.

(5)

The Chairman and the Vice Chairman shall be elected by the Council at its organizational meeting to serve until their successors are elected at the next organizational meeting of the Council.

(d)

Meetings

(1)

Regular meetings of the Council shall be held at least twice each year at times determined by the Chairman and approved by the Government Cochairman.

(2)

No meeting of the Council shall be held unless the Government Cochairman approves the agenda thereof, approves the calling thereof, and is present thereat.

(3)

The time and place of all Council meetings shall be given general publicity and such meetings shall be open to the public.

(e)

Studies by the council

(1)

The Council may establish study committees to prepare reports for the consideration of the Council pursuant to requests from the Secretary of Energy for advice, information, and recommendations.

(2)

The Secretary of Energy or a full-time employee of the Department of Energy designated by the Secretary shall be the Cochairman of each study committee.

(3)

The members of study committees shall be selected from the Council membership on the basis of their training, experience, and general qualifications to deal with the matters assigned.

309.

Temporary spent nuclear fuel storage agreements

(a)

Authorization and location

The Secretary of Energy (Secretary) is authorized to initiate spent nuclear fuel storage agreements as provided herein.

(1)

No later than 180 days from the date of enactment of this Act, representatives of a community may submit written notice to the Secretary that the community is willing to host a temporary spent nuclear fuel storage facility within its jurisdiction.

(2)

Within 90 days of the receipt of the notification under subsection (a)(1), the Secretary shall determine whether the identified site is suitable for a temporary storage facility. In determining the site’s suitability, the Secretary will evaluate technical feasibility and consider favorably local support for collocating a temporary spent nuclear fuel storage facility with facilities in-tended to develop and implement advanced nuclear fuel cycle technologies.

(b)

Content of agreements

If the Secretary determines one or more sites to be suitable in accordance with subsection (a)(2), negotiation of a temporary spent nuclear fuel storage facility agreement shall proceed.

(1)

Any temporary spent nuclear fuel storage agreement shall contain such terms and conditions, including financial, institutional and such other arrangements as the Secretary and community determine to be reasonable and appropriate.

(2)

Any temporary spent nuclear fuel storage agreement may be amended only with the mutual consent of the parties to the agreement.

(c)

Environmental impact statement

Execution of a temporary spent nuclear fuel storage agreement shall not require preparation of an environmental impact statement under section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) or require any environmental review under subparagraph (E) or (F) of section 102(2) of such Act (42 U.S.C. 4332(2)(E), (F)).

310.

Implementation of temporary spent nuclear fuel storage agreements

(a)

In general

Any temporary spent nuclear fuel storage agreement or agreements entered into under section 1 shall enter into force with respect to the United States if (and only if)—

(1)

the Secretary, at least 60 days before the day on which he or she enters into the temporary spent nuclear fuel storage agreement or agreements notifies the House of Representatives and the Senate of his intention to enter into the agreement or agreements, and promptly thereafter publishes notice of such intention in the Federal Register;

(2)

the Governor of the State or States in which the facility is proposed to be located submits written notice to the Secretary that the Governor supports the temporary spent nuclear fuel storage agreement; and

(3)

after entering into the agreement, the Secretary submits to the House of Representatives and to the Senate a copy of the final text of the agreement, together with—

(A)

a draft of an implementing bill; and

(B)

a statement of any administrative action proposed to implement the agreement.

(b)

Application of expedited procedures to implementing bills

The provisions of section 3 apply to implementing bills submitted with respect to temporary spent nuclear fuel storage agreements entered into and submitted pursuant to section 2.

311.

Expedited procedures for congressional review of temporary spent nuclear fuel storage agreements

(a)

Rules of house of representative and senate

The provisions of this subsection are enacted by the Congress—

(1)

as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they are deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of implementing bills de-scribed in subsection (b)(2) of this section and approval resolutions described in subsection (b)(3) of this section; and they supersede other rules only to the extent that they are inconsistent therewith; and

(2)

with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner and to the same extent as in the case of any other rule of that House.

(b)

Definitions

For purposes of this section—

(1)

The term community means any entity of local government appropriate, in terms of legal authority, for negotiating and entering into temporary spent nuclear fuel storage agreements provided for in section 1.

(2)

The term implementing bill means only a bill of either House of Congress which is introduced as provided in subsection (c) of this section with respect to one or more temporary spent nuclear fuel storage agreements and which contain—

(A)

a provision approving such storage agreements;

(B)

a provision approving the statement of administrative action (if any) proposed to implement such storage agreements;

(C)

if changes in existing laws or new statutory authority is required to implement such storage agreement or agreements, provisions necessary or appropriate to implement such agreement or agreements either repealing or amending existing laws or providing new statutory authority; and

(D)

a provision containing revenue measures (if any), by reason of which the bill must originate in the House of Representatives as provided for in subsection (c).

(3)

The term approval resolution means only a joint resolution of the two Houses of the Congress, the matter after the resolving clause of which is as follows: That the Congress approves the temporary spent nuclear fuel storage agreement between the Secretary of Energy and _________ on ______, the first blank space being filled with the name of the governor involved and the second blank space being filled in with the appropriate date.

(c)

Introduction and referral

On the day on which the temporary spent nuclear fuel storage agreement is submitted to the House of Representatives and the Senate under this title, the implementing bill submitted by the Secretary with respect to such temporary spent nuclear fuel storage agreement shall be introduced (by request) in the House by the majority leader of the House, for himself and the minority leader of the House, or by Members of the House designated by the majority leader and minority leader of the House; and shall be introduced (by request) in the Senate by the majority leader of the Senate, for himself and the minority leader of the Senate, or by Members of the Senate designated by the majority leader and minority leader of the Senate. If either House is not in session on the day on which such temporary spent nuclear fuel storage agreement is submitted, the implementing bill shall be introduced in that House, as provided in the preceding sentence, on the first day thereafter on which that House is in session. Such bills shall be referred by the Presiding Officers of the respective Houses to the appropriate committee, or, in the case of a bill containing provisions within the jurisdiction of two or more committees, jointly to such committees for consideration of those provisions within their respective jurisdictions.

(d)

Amendments prohibited

No amendment to an implementing bill or approval resolution shall be in order in either the House of Representatives or the Senate; and no motion to suspend the application of this subsection shall be in order in either House, nor shall it be in order in either House for the Presiding Officer to entertain a request to suspend the application of this subsection by unanimous consent.

(e)

Period for committee and floor consideration

(1)

Except as provided in subsection (e)(2), if the committee or committees of either House to which an implementing bill or approval resolution has been referred have not reported it at the close of the 45th day after its introduction, such committee or committees shall be automatically discharged from further consideration of the bill or resolution and it shall be placed on the appropriate calendar. A vote on final passage of the bill or resolution shall be taken in each House on or before the close of the 15th day after the bill or resolution is reported by the committee or committees of that House to which it was referred, or after such committee or committees have been discharged from further consideration of the bill or resolution. If prior to the passage by one House of an implementing bill or approval resolution of that House, that House receives the same implementing bill or approval resolution from the other House, then—

(A)

the procedure in that House shall be the same as if no implementation bill or approval resolution had been received from the other House; but

(B)

the vote on final passage shall be on the implementing bill or approval resolution of the other House.

(2)

For purposes of computing a number of days in either House as provided for in subsection (e)(1), there shall be excluded any day on which that House is not in session.

(3)

If the implementing bill contains one or more revenue measures—

(A)

the provisions of subsection (e)(1) shall not apply; and

(B)

the Senate shall not take final action on the bill until it is received from the House.

(f)

Floor consideration in the house

(1)

A motion in the House of Representatives to proceed to the consideration of an implementing bill or approval resolution shall be highly privileged and not debatable. An amendment to the motion shall not be in order, nor shall it be in order to move to reconsider the vote by which the motion is agreed to or disagreed to.

(2)

Debate in the House of Representatives on an implementing bill or approval resolution shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the bill or resolution. A motion further to limit debate shall not be debatable. It shall not be in order to move to recommit an implementing bill or approval resolution or to move to reconsider the vote by which an implementing bill or approval resolution is agreed to or disagreed to.

(3)

Motions to postpone, made in the House of Representatives with respect to the consideration of an implementing bill or approval resolution, and motions to proceed to the consideration of other business, shall be decided without debate. If a motion to proceed to consideration is agreed to, such resolution shall remain unfinished business of House until disposed of.

(4)

All appeals from the decisions of the Chair relating to the application of the Rules of the House of Representatives to the procedure relating to an implementing bill or approval resolution shall be decided without debate.

(5)

Except to the extent specifically provided in the preceding provisions of this subsection, consideration of an implementing bill or approval resolution shall be governed by the Rules of the House of Representatives applicable to other bills and resolutions in similar circumstances.

(g)

Floor consideration in the senate

(1)

A motion in the Senate to proceed to the consideration of an implementing bill or approval resolution shall be privileged and not debatable. An amendment to the motion shall not be in order, nor shall it be in order to move to reconsider the vote by which the motion is agreed to or disagreed to.

(2)

Debate in the Senate on an implementing bill or approval resolution, and all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours. The time shall be equally divided between, and controlled by, the majority leader and the minority leader or their designees.

(3)

Debate in the Senate on any debatable motion or appeal in connection with an implementing bill or approval resolution shall be limited to not more than 1 hour, to be equally divided between, and controlled by, the mover and the manager of the bill or resolution, except that in the event the manager of the bill or resolution is in favor of any such motion or appeal, the time in opposition thereto shall be controlled by the minority leader or his designee. Such leaders, or either of them, may, from time under their control on the passage of an implementing bill or approval resolution, allot additional time to any Senator during the consideration of any debatable motion or appeal.

(4)

A motion in the Senate to further limit debate is not debatable. A motion to recommit an implementation bill or approval resolution is not in order.

312.

Contracting and Nuclear Waste Fund

Section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) is amended—

(1)

in subsection (a)(1), by adding at the end the following:

For any civilian nuclear power reactor a license application for which is filed with the Commission, pursuant to its authority under section 103 or 104 of the Atomic Energy Act of 1954, after the date of enactment of this Act, contracts entered into under this section shall—

(A)

except as provided in subsections 302(a)(1)(B), (C), (D), and (E), below, be generally consistent with the terms and conditions of the Standard Contract for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste, as codified at 10 C.F.R. Part 961 and in effect on January 1, 2007;

(B)

provide for the taking of title to, and for the Secretary to dispose of, the high-level waste or spent nuclear fuel involved beginning no later than 15 years following the start of commercial operation;

(C)

contain no provisions providing for adjustment of the 1.0 mil per kilowatt-hour fee established by paragraph (2);

(D)

be entered into no later than 60 days following the docketing of the license application by the Commission, or the date of enactment of this Act, whichever is later; and

(E)

provide that, on a schedule consistent with the Secretary’s acceptance of spent nuclear fuel from each civilian nuclear power reactor or site, and completed not later than the Secretary’s completing the acceptance of all spent nuclear fuel from that commercial nuclear power reactor or site, the Secretary shall accept from each such reactor or site, all low-level radioactive waste defined in section 3(b)(1)(D) of the Low-level Radioactive Waste Policy Act, as amended, 42 U.S.C. 2021c(b)(1)(D).

; and

(2)

in subsection (a)(4), by striking all after herein. in the second sentence;

(3)

in subsection (a)(6), by adding at the end the following: Further, the Secretary shall offer to settle any actions pending on the date of enactment of this Act for damages resulting from failure to commence accepting spent nuclear fuel or high-level radioactive waste on or before January 31, 1998. Each offer to settle shall provide for the payment of $150 to the other party to a contract for disposal of spent nuclear fuel and high-level radioactive waste for each kilogram of spent nuclear fuel which such party was or shall be entitled to deliver to the Department in a particular year, based on the following aggregate acceptance rates: 400 MTU for 1998; 600 MTU for 1999; 1,200 MTU for 2000; 2,000 MTU for 2001; and 3,000 MTU for 2002 and thereafter; provided that the Secretary shall adjust the payment amount per kilogram of spent nuclear fuel under this subsection (a)(6) annually according to the most recent Producer Price Index published by the Department of Labor. Such aggregate acceptance rates shall be allocated among parties to contracts with the United States based upon the age of spent nuclear fuel, as measured by the date of the discharge of such spent nuclear fuel from the civilian nuclear power reactor. Such offer to settle also shall include an annual payment to be determined by the Secretary to any such party where a civilian nuclear power reactor has been decommissioned, except for those portions of the facility that cannot be decommissioned until removal of spent nuclear fuel and high-level radioactive waste. The Secretary also shall offer like compensation to parties to contracts entered into pursuant to section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) who brought actions for damages prior to the date of enactment of this Act, but which were no longer pending as of said date, provided that such compensation shall be reduced by the amount of any settlement or judgment received by such party.; and

(4)

in subsection (d), by adding at the end the following: No amount may be expended by the Secretary from the Waste Fund to carry out research and development activities on advanced nuclear fuel cycle technologies..

313.

Confidence in availability of waste disposal

(a)

Congressional determination

The Congress finds that—

(1)

there is reasonable assurance that high-level radioactive waste and spent nuclear fuel generated in reactors licensed by the Nuclear Regulatory Commission in the past, currently, or in the future will be managed in a safe manner without significant environmental impact until capacity for ultimate disposal is available; and

(2)

the Federal Government is responsible and has established a policy for the ultimate safe and environmentally sound disposal of such high-level radioactive waste and spent nuclear fuel.

(b)

Regulatory consideration

Notwithstanding any other provision of law, for the period following the licensed operation of a civilian nuclear power reactor or any facility for the treatment or storage of spent nuclear fuel or high-level radioactive waste, no consideration of the public health and safety, common defense and security, or environmental impacts of the storage of high-level radioactive waste and spent nuclear fuel generate d in reactors licensed by the Nuclear Regulatory Commission in the past, currently, or in the future, is required by the Department of Energy or the Nuclear Regulatory Commission in connection with the development, construction, and operation of, or any permit, license, license amendment, or siting approval for, a civilian nuclear power reactor or any facility for the treatment or storage of spent nuclear fuel or high-level radioactive waste. Nothing in this section shall affect the Department of Energy’s and Nuclear Regulatory Commission’s obligation to consider the public health and safety, common defense and security, and environmental impacts of storage during the period of licensed operation of a civilian nuclear power reactor or facility for the treatment or storage of spent nuclear fuel or high-level radioactive waste.

IV

AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

401.

Credit for investment in coal-to-liquid fuels projects

(a)

In general

Section 46 of the Internal Revenue Code of 1986 (relating to amount of credit) is amended by striking and at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting , and, and by adding at the end the following new paragraph:

(5)

the qualifying coal-to-liquid fuels project credit.

.

(b)

Amount of credit

Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to rules for computing investment credit) is amended by inserting after section 48B the following new section:

48C.

Qualifying coal-to-liquid fuels project credit

(a)

In general

For purposes of section 46, the qualifying coal-to-liquid fuels project credit for any taxable year is an amount equal to 20 percent of the qualified investment for such taxable year.

(b)

Qualified investment

(1)

In general

For purposes of subsection (a), the qualified investment for any taxable year is the basis of property placed in service by the taxpayer during such taxable year which is part of a qualifying coal-to-liquid fuels project—

(A)
(i)

the construction, reconstruction, or erection of which is completed by the taxpayer, or

(ii)

which is acquired by the taxpayer if the original use of such property commences with the taxpayer, and

(B)

with respect to which depreciation (or amortization in lieu of depreciation) is allowable.

(2)

Applicable rules

For purposes of this section, rules similar to the rules of subsection (a)(4) and (b) of section 48 shall apply.

(c)

Definitions

For purposes of this section—

(1)

Qualifying coal-to-liquid fuels project

The term qualifying coal-to-liquid fuels project means any domestic project which—

(A)

employs either the class of reactions known as Fischer-Tropsch or the Schobert process to produce at least 10,000 barrels per day of transportation grade liquid fuels from a feedstock that is primarily domestic coal (including any property which allows for the capture, transportation, or sequestration of by-products resulting from such process, including carbon emissions), and

(B)

any portion of the qualified investment in which is certified under the qualifying coal-to-liquid program as eligible for credit under this section in an amount (not to exceed $200,000,000) determined by the Secretary.

(2)

Coal

The term coal means any carbonized or semicarbonized matter, including peat.

(d)

Qualifying coal-to-liquid fuels project program

(1)

In general

The Secretary, in consultation with the Secretary of Energy, shall establish a qualifying coal-to-liquid fuels project program to consider and award certifications for qualified investment eligible for credits under this section to 10 qualifying coal-to-liquid fuels project sponsors under this section. The total qualified investment which may be awarded eligibility for credit under the program shall not exceed $2,000,000,000.

(2)

Period of issuance

A certificate of eligibility under paragraph (1) may be issued only during the 10-fiscal year period beginning on October 1, 2007.

(3)

Selection criteria

The Secretary shall not make a competitive certification award for qualified investment for credit eligibility under this section unless the recipient has documented to the satisfaction of the Secretary that—

(A)

the proposal of the award recipient is financially viable,

(B)

the recipient will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is spent efficiently and effectively,

(C)

the fuels identified with respect to the gasification technology for such project will comprise at least 90 percent of the fuels required by the project for the production of transportation grade liquid fuels,

(D)

the award recipient’s project team is competent in the planning and construction of coal gasification facilities and familiar with operation of either the Fischer-Tropsch process or the Schobert process, with preference given to those recipients with experience which demonstrates successful and reliable operations of such process, and

(E)

the award recipient has met other criteria established and published by the Secretary.

(e)

Denial of double benefit

No deduction or other credit shall be allowed with respect to the basis of any property taken into account in determining the credit allowed under this section.

.

(c)

Conforming amendments

(1)

Section 49(a)(1)(C) of the Internal Revenue Code of 1986 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 after clause (iv) the following new clause:

(v)

the basis of any property which is part of a qualifying coal-to-liquid fuels project under section 48C.

.

(2)

The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48B the following new item:

Sec. 48C. Qualifying coal-to-liquid fuels project credit.

.

(d)

Effective date

The amendments made by this section shall apply to periods after the date of the enactment of this Act, 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).

402.

Temporary expensing for equipment used in coal-to-liquid fuels process

(a)

In general

Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 179E the following new section:

179F.

Election to expense certain coal-to-liquid fuels facilities

(a)

Treatment as expenses

A taxpayer may elect to treat the cost of any qualified coal-to-liquid fuels process property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the expense is incurred.

(b)

Election

(1)

In general

An election under this section for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may by regulations prescribe.

(2)

Election irrevocable

Any election made under this section may not be revoked except with the consent of the Secretary.

(c)

Qualified coal-to-liquid fuels process property

The term qualified coal-to-liquid fuels process property means any property located in the United States—

(1)

which employs the Fischer-Tropsch process or the Schobert process to produce transportation grade liquid fuels from a feedstock that is primarily domestic coal (including any property which allows for the capture, transportation, or sequestration of by-products resulting from such process, including carbon emissions),

(2)

the original use of which commences with the taxpayer,

(3)

the construction of which—

(A)

except as provided in subparagraph (B), is subject to a binding construction contract entered into after the date of the enactment of this section and before January 1, 2011, but only if there was no written binding construction contract entered into on or before such date of enactment, or

(B)

in the case of self-constructed property, began after the date of the enactment of this section and before January 1, 2011, and

(4)

which is placed in service by the taxpayer after the date of the enactment of this section and before January 1, 2016.

(d)

Election To allocate deduction to cooperative owner

If—

(1)

a taxpayer to which subsection (a) applies is an organization to which part I of subchapter T applies, and

(2)

one or more persons directly holding an ownership interest in the taxpayer are organizations to which part I of subchapter T apply,

the taxpayer may elect to allocate all or a portion of the deduction allowable under subsection (a) to such persons. Such allocation shall be equal to the person’s ratable share of the total amount allocated, determined on the basis of the person’s ownership interest in the taxpayer. The taxable income of the taxpayer shall not be reduced under section 1382 by reason of any amount to which the preceding sentence applies.
(e)

Basis reduction

(1)

In general

For purposes of this title, if a deduction is allowed under this section with respect to any qualified coal-to-liquid fuels process property, the basis of such property shall be reduced by the amount of the deduction so allowed.

(2)

Ordinary income recapture

For purposes of section 1245, the amount of the deduction allowable under subsection (a) with respect to any property which is of a character subject to the allowance for depreciation shall be treated as a deduction allowed for depreciation under section 167.

(f)

Application with other deductions and credits

(1)

Other deductions

No deduction shall be allowed under any other provision of this chapter with respect to any expenditure with respect to which a deduction is allowed under subsection (a) to the taxpayer.

(2)

Credits

No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).

(g)

Reporting

No deduction shall be allowed under subsection (a) to any taxpayer for any taxable year unless such taxpayer files with the Secretary a report containing such information with respect to the operation of the property of the taxpayer as the Secretary shall require.

.

(b)

Conforming amendments

(1)

Section 1016(a) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , and, and by adding at the end the following new paragraph:

(38)

to the extent provided in section 179F(e)(1).

.

(2)

Section 1245(a) of such Code is amended by inserting 179F, after 179D, both places it appears in paragraphs (2)(C) and (3)(C).

(3)

Section 263(a)(1) of such Code is amended by striking or at the end of subparagraph (J), by striking the period at the end of subparagraph (K) and inserting , or, and by inserting after subparagraph (K) the following new subparagraph:

(L)

expenditures for which a deduction is allowed under section 179F.

.

(4)

Section 312(k)(3)(B) of such Code is amended by striking or 179E each place it appears in the heading and text and inserting 179E, or 179F.

(5)

The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 179E the following new item:

Sec. 179F. Election to expense certain coal-to-liquid fuels facilities.

.

(c)

Effective date

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

403.

Extension of alternative fuel credit for fuel derived from coal through the Fischer-Tropsch process or the Schobert process

(a)

Alternative fuel credit

Paragraph (4) of section 6426(d) of the Internal Revenue Code of 1986 is amended to read as follows:

(4)

Termination

This subsection shall not apply to—

(A)

any sale or use involving liquid fuel derived from a feedstock that is primarily domestic coal (including peat) through the Fischer-Tropsch process or the Schobert process for any period after September 30, 2020,

(B)

any sale or use involving liquified hydrogen for any period after September 30, 2014, and

(C)

any other sale or use for any period after September 30, 2009.

.

(b)

Payments

(1)

In general

Paragraph (5) of section 6427(e) of the Internal Revenue Code of 1986 is amended by striking and and the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , and, and by adding at the end the following new subparagraph:

(E)

any alternative fuel or alternative fuel mixture (as so defined) involving liquid fuel derived from coal (including peat) through the Fischer-Tropsch process or the Schobert process sold or used after September 30, 2020.

.

(2)

Conforming amendment

Section 6427(e)(5)(C) of such Code is amended by striking subparagraph (D) and inserting subparagraphs (D) and (E).