H.R. 2846 (111th): American Energy Act

111th Congress, 2009–2010. Text as of Jun 12, 2009 (Introduced).

Status & Summary | PDF | Source: GPO

I

111th CONGRESS

1st Session

H. R. 2846

IN THE HOUSE OF REPRESENTATIVES

June 12, 2009

(for himself, Mr. Aderholt, Mr. Akin, Mr. Alexander, Mr. Austria, Mrs. Bachmann, Mr. Bachus, Mr. Barton of Texas, Mrs. Biggert, Mr. Bishop of Utah, Mrs. Blackburn, Mr. Blunt, Mr. Bonner, Mr. Boustany, Mr. Brady of Texas, Mr. Broun of Georgia, Mr. Brown of South Carolina, Mr. Calvert, Mr. Camp, Mr. Cantor, Mrs. Capito, Mr. Cassidy, Mr. Chaffetz, Mr. Coble, Mr. Cole, Mr. Conaway, Mr. Crenshaw, Mr. Culberson, Mr. Dreier, Mr. Duncan, Ms. Fallin, Mr. Fleming, Mr. Forbes, Ms. Foxx, Mr. Franks of Arizona, Mr. Gingrey of Georgia, Mr. Gohmert, Mr. Goodlatte, Ms. Granger, Mr. Graves, Mr. Hall of Texas, Mr. Harper, Mr. Hastings of Washington, Mr. Hensarling, Mr. Herger, Mr. Hoekstra, Mr. Hunter, Mr. Issa, Ms. Jenkins, Mr. Jordan of Ohio, Mr. King of Iowa, Mr. Kline of Minnesota, Mr. Lamborn, Mr. Latta, Mr. Lee of New York, Mr. Luetkemeyer, Mrs. Lummis, Mr. Marchant, Mr. McCarthy of California, Mr. McCaul, Mr. McHenry, Mrs. McMorris Rodgers, Mrs. Myrick, Mrs. Miller of Michigan, Mr. Neugebauer, Mr. Nunes, Mr. Olson, Mr. Pence, Mr. Pitts, Mr. Poe of Texas, Mr. Price of Georgia, Mr. Rehberg, Mr. Roe of Tennessee, Mr. Rogers of Alabama, Mr. Rogers of Kentucky, Mr. Rooney, Mr. Scalise, Mrs. Schmidt, Mr. Schock, Mr. Sensenbrenner, Mr. Sessions, Mr. Shadegg, Mr. Shimkus, Mr. Smith of Texas, Mr. Souder, Mr. Terry, Mr. Thompson of Pennsylvania, Mr. Tiahrt, Mr. Tiberi, Mr. Turner, Mr. Upton, Mr. Wamp, and Mr. Coffman of Colorado) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on the Judiciary, Ways and Means, Energy and Commerce, Armed Services, Oversight and Government Reform, and Science and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To increase energy independence and job creation by increasing safe American energy production, encouraging the development of alternative and renewable energy, and promoting greater efficiencies and conservation for a cleaner environment.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the American Energy Act.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Title I—AMERICAN ENERGY

Subtitle A—OCS

Sec. 101. Short title.

Sec. 102. Policy.

Sec. 103. Leasing program considered approved.

Sec. 104. Lease sales.

Sec. 105. Prohibitions on surface occupancy.

Sec. 106. Definitions under the Submerged Lands Act.

Sec. 107. Seaward boundaries of States.

Sec. 108. Exceptions from confirmation and establishment of States’ title, power, and rights.

Sec. 109. Definitions under the Outer Continental Shelf Lands Act.

Sec. 110. Determination of adjacent zones and planning areas.

Sec. 111. Administration of leasing.

Sec. 112. Grant of leases by Secretary.

Sec. 113. Disposition of receipts.

Sec. 114. Reservation of lands and rights.

Sec. 115. Outer Continental Shelf leasing program.

Sec. 116. Coordination with Adjacent States.

Sec. 117. Environmental studies.

Sec. 118. Outer Continental Shelf incompatible use.

Sec. 119. Repurchase of certain leases.

Sec. 120. Offsite environmental mitigation.

Sec. 121. OCS regional headquarters.

Sec. 122. Leases for areas located within 12 nautical miles of California or Florida.

Sec. 123. Coastal impact assistance.

Sec. 124. Repeal of the Gulf of Mexico Energy Security Act of 2006.

Subtitle B—ANWR

Sec. 141. Short title.

Sec. 142. Definitions.

Sec. 143. Leasing program for lands within the Coastal Plain.

Sec. 144. Lease sales.

Sec. 145. Grant of leases by the Secretary.

Sec. 146. Lease terms and conditions.

Sec. 147. Coastal Plain environmental protection.

Sec. 148. Expedited judicial review.

Sec. 149. Federal and State distribution of revenues.

Sec. 150. Rights-of-way across the Coastal Plain.

Sec. 151. Conveyance.

Sec. 152. Local government impact aid and community service assistance.

Subtitle C—Oil Shale

Sec. 161. Oil shale.

Subtitle D—Refinery Permit Process Schedule

Sec. 171. Short title.

Sec. 172. Definitions.

Sec. 173. State assistance.

Sec. 174. Refinery process coordination and procedures.

Sec. 175. Designation of closed military bases.

Sec. 176. Savings clause.

Sec. 177. Refinery revitalization repeal.

Title II—CONSERVATION AND EFFICIENCY

Subtitle A—Tax Incentives for Fuel Efficiency

Sec. 201. Extension of credit for alternative fuel vehicles.

Sec. 202. Extension of alternative fuel vehicle refueling property credit.

Sec. 203. Extension of credit for new qualified plug-in electric drive motor vehicles.

Subtitle B—Tapping America’s Ingenuity and Creativity

Sec. 211. Definitions.

Sec. 212. Statement of policy.

Sec. 213. Prize authority.

Sec. 214. Eligibility.

Sec. 215. Intellectual property.

Sec. 216. Waiver of liability.

Sec. 217. Authorization of appropriations.

Sec. 218. Next generation automobile prize program.

Sec. 219. Advanced battery manufacturing incentive program.

Subtitle C—Home and Business Tax Incentives

Sec. 221. Extension of credit for energy efficient appliances.

Sec. 222. Extension of credit for nonbusiness energy property.

Sec. 223. Extension of credit for residential energy efficient property.

Sec. 224. Extension of new energy efficient home credit.

Sec. 225. Extension of energy efficient commercial buildings deduction.

Sec. 226. Extension of special rule to implement FERC and State electric restructuring policy.

Sec. 227. Home energy audits.

Sec. 228. Accelerated recovery period for depreciation of smart meters.

Title III—NEW AND EXPANDING TECHNOLOGIES

Subtitle A—Alternative Fuels

Sec. 301. Repeal.

Sec. 302. Government auction of long-term put option contracts on coal-to-liquid fuel produced by qualified coal-to-liquid facilities.

Sec. 303. Standby loans for qualifying coal-to-liquids projects.

Subtitle B—Tax Provisions

Sec. 311. Extension of renewable electricity, refined coal, and Indian coal production credit.

Sec. 312. Extension of energy credit.

Sec. 313. Extension and modification of credit for clean renewable energy bonds.

Sec. 314. Extension of credits for biodiesel and renewable diesel.

Subtitle C—American Renewable and Alternative Energy Trust Fund

Sec. 321. American Renewable and Alternative Energy Trust Fund.

Title IV—Nuclear

Sec. 401. Streamline the regulatory process.

Sec. 402. Increase the supply of uranium.

Sec. 403. Recycle and safely store spent nuclear fuel.

Sec. 404. Confidence in availability of waste disposal.

Sec. 405. Preferential treatment for certain nuclear reactors and related articles.

Sec. 406. National Nuclear Energy Council.

Sec. 407. Expansion of energy investment tax credit to include nuclear and clean-coal equipment.

Title V—Environmental Review; Greenhouse Gases

Sec. 501. Environmental review for renewable energy projects.

Sec. 502. Greenhouse gas regulation under Clean Air Act.

Sec. 503. Prohibition of consideration of impact of greenhouse gas.

Title VI—Legal Reform

Sec. 601. Findings.

Sec. 602. Exclusive jurisdiction over causes and claims relating to covered energy projects.

Sec. 603. Time for filing complaint.

Sec. 604. District court for the District of Columbia deadline.

Sec. 605. Ability to seek appellate review.

Sec. 606. Deadline for appeal to the Supreme Court.

Sec. 607. Limitation on scope of review and relief.

Sec. 608. Legal fees.

Sec. 609. Exclusion.

Sec. 610. Covered energy project defined.

I

AMERICAN ENERGY

A

OCS

101.

Short title

This subtitle may be cited as the Deep Ocean Energy Resources Act of 2009.

102.

Policy

It is the policy of the United States that—

(1)

the United States is blessed with abundant energy resources on the outer Continental Shelf and has developed a comprehensive framework of 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; and

(3)

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.

103.

Leasing program considered approved

(a)

In General

The Draft Proposed Outer Continental Shelf Oil and Gas Leasing Program 2010–2015 released by the Secretary of the Interior (referred to in this section as the Secretary) under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is considered to have been approved by the Secretary as a final oil and gas leasing program under that section, and is considered to be in full compliance with and in accordance with all requirements of the Outer Continental Shelf Lands Act, National Environmental Policy Act, Endangered Species Act, Clean Air Act, Marine Mammals Protection Act, the Oil Pollution Control Act, and all other applicable laws.

(b)

Final Environmental Impact Statement

The Secretary is considered to have issued a legally sufficient final environmental impact statement for the program described in subsection (a) in accordance with all requirements under section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), and all other applicable laws.

104.

Lease sales

(a)

Outer Continental Shelf

(1)

In general

Except as provided in paragraph (2), not later than 30 days after the date of enactment of this Act and every 270 days thereafter, the Secretary of the Interior (referred to in this section as the Secretary) shall conduct a lease sale in each outer Continental Shelf planning region for which the Secretary determines that there is a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf.

(2)

Subsequent determinations and sales

If the Secretary determines that there is not a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in a planning area under this subsection, not later than 2 years after the date of enactment of the determination and every 2 years thereafter, the Secretary shall—

(A)

solicit if there is commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in the planning area; and

(B)

if the Secretary determines that there is a commercial interest described in subparagraph (A), conduct a lease sale in the planning area.

(b)

Renewable Energy and Mariculture

The Secretary may conduct commercial lease sales of resources—

(1)

to produce renewable energy (as defined in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))); or

(2)

to cultivate marine organisms in the natural habitat of the organisms.

105.

Prohibitions on surface occupancy

(a)

Regulations

(1)

In general

The Secretary of the Interior shall promulgate regulations that establish management of the surface occupancy of the portion of the Outer Continental Shelf near the coastline to the effect that—

(A)

the coastal State shall have sole authority to restrict or allow surface facilities above the waterline for the purpose of production of oil or gas resources in any area that is within 12 nautical miles seaward from the coastline of any coastal State, in any area of the Outer Continental Shelf that has not been made available for oil and gas leasing after January 1, 2001, in a final notice of sale;

(B)

unless permanent surface occupancy is authorized by the coastal State, only sub-surface production facilities may be installed for areas that are located beyond 12 nautical miles but not more than 25 nautical miles seaward from the coastline of any coastal State, in any area of the Outer Continental Shelf that has not been made available for oil and gas leasing after January 1, 2001, in a final notice of sale; and

(C)

new offshore production facilities are encouraged and the impacts on coastal vistas are minimized, to the extent practical; and

(D)

onshore facilities that facilitate the development and production of the resources of the Outer Continental Shelf within 12 nautical miles seaward of the coastline are allowed.

(2)

Temporary activities not affected

Nothing in these regulations shall restrict temporary surface activities related to operations associated with Outer Continental Shelf oil and gas leases.

106.

Definitions under the Submerged Lands Act

Section 2 of the Submerged Lands Act (43 U.S.C. 1301) is amended—

(1)

in subparagraph (2) of paragraph (a) by striking all after seaward to a line and inserting twelve nautical miles distant from the coast line of such State;;

(2)

by striking out paragraph (b) and redesignating the subsequent paragraphs in order as paragraphs (b) through (g);

(3)

by striking the period at the end of paragraph (g) (as so redesignated) and inserting ; and;

(4)

by adding the following: (i) The term Secretary means the Secretary of the Interior.; and

(5)

by defining State as it is defined in section 2(r) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(r)).

107.

Seaward boundaries of States

Section 4 of the Submerged Lands Act (43 U.S.C. 1312) is amended—

(1)

in the first sentence by striking original, and in the same sentence by striking three geographical and inserting twelve nautical; and

(2)

by striking all after the first sentence and inserting the following: Extension and delineation of lateral offshore State boundaries under the provisions of this Act shall follow the lines used to determine the Adjacent Zones of coastal States under the Outer Continental Shelf Lands Act to the extent such lines extend twelve nautical miles for the nearest coastline.

108.

Exceptions from confirmation and establishment of States’ title, power, and rights

Section 5 of the Submerged Lands Act (43 U.S.C. 1313) is amended—

(1)

by redesignating paragraphs (a) through (c) in order as paragraphs (1) through (3);

(2)

by inserting (a) before There is excepted; and

(3)

by inserting at the end the following:

(b)

Exception of oil and gas mineral rights

There is excepted from the operation of sections 3 and 4 all of the oil and gas mineral rights for lands beneath the navigable waters that are located within the expanded offshore State seaward boundaries established under this Act. These oil and gas mineral rights shall remain Federal property and shall be considered to be part of the Federal outer Continental Shelf for purposes of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) and subject to leasing under the authority of that Act and to laws applicable to the leasing of the oil and gas resources of the Federal outer Continental Shelf. All existing Federal oil and gas leases within the expanded offshore State seaward boundaries shall continue unchanged by the provisions of this Act, except as otherwise provided herein. However, a State may exercise all of its sovereign powers of taxation within the entire extent of its expanded offshore State boundaries.

.

109.

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 the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, American Samoa, Guam, 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.

110.

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..

111.

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 2009.

.

112.

Grant of leases by Secretary

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

(1)

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.

;

(2)

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 75 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 50 percent of the receipts from projects completely located in the area more than 4 marine leagues from the coastline. Payments shall be based on a formula established by the Secretary by rulemaking no later than 180 days after the date of the enactment of the Deep Ocean Energy Resources Act of 2009 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.

;

(3)

by adding at the end the following:

(q)

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 2009.

(r)

Royalty suspension provisions

After the date of the enactment of the Deep Ocean Energy Resources Act of 2009, 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 (January 1, 2006, dollars) and $6.75 for natural gas (January 1, 2006, dollars).

(s)

Conservation of resources fees

Not later than one year after the date of the enactment of the Deep Ocean Energy Resources Act of 2009, 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, 2009, and shall be treated as offsetting receipts.

;

(4)

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

(5)

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

(6)

effective October 1, 2009, 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).

113.

Disposition of receipts

Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) is amended—

(1)

by designating the existing text as subsection (a);

(2)

in subsection (a) (as so designated) by inserting , if not paid as otherwise provided in this title after receipts; and

(3)

by adding the following:

(b)

Treatment of OCS Receipts From Tracts Completely Within 100 Miles of the Coastline

(1)

Deposit

The Secretary shall deposit into a separate account in the Treasury the portion of OCS Receipts for each fiscal year that will be shared under paragraphs (2), (3), and (4).

(2)

Phased-in receipts sharing

(A)

Beginning October 1, 2009, the Secretary shall share OCS Receipts derived from the following areas:

(i)

Lease tracts located on portions of the Gulf of Mexico OCS Region completely beyond 4 marine leagues from any coastline and completely within 100 miles of any coastline that were available for leasing under the 2002–2007 5-Year OCS Oil and Gas Leasing Program.

(ii)

Lease tracts in production prior to October 1, 2009, completely beyond 4 marine leagues from any coastline and completely within 100 miles of any coastline located on portions of the OCS that were not available for leasing under the 2002–2007 5-Year OCS Oil and Gas Leasing Program.

(iii)

Lease tracts for which leases are issued prior to October 1, 2009, located in the Alaska OCS Region completely beyond 4 marine leagues from any coastline and completely within 100 miles of the coastline.

(B)

The Secretary shall share the following percentages of OCS Receipts from the leases described in subparagraph (A) derived during the fiscal year indicated:

(i)

For fiscal year 2010, 5 percent.

(ii)

For fiscal year 2011, 8 percent.

(iii)

For fiscal year 2012, 11 percent.

(iv)

For fiscal year 2013, 14 percent.

(v)

For fiscal year 2014, 17 percent.

(vi)

For fiscal year 2015, 20 percent.

(vii)

For fiscal year 2016, 23 percent.

(viii)

For fiscal year 2017, 26 percent.

(ix)

For fiscal year 2018, 29 percent.

(x)

For fiscal year 2019, 32 percent.

(xi)

For fiscal year 2020, 35 percent.

(xii)

For fiscal year 2021 and each subsequent fiscal year, 37.5 percent.

(C)

The provisions of this paragraph shall not apply to leases that could not have been issued but for section 5(k) of this Act or section 106(2) of the Deep Ocean Energy Resources Act of 2009.

(3)

Immediate receipts sharing

Beginning October 1, 2009, the Secretary shall share 37.50 percent of OCS Receipts derived from all leases located completely beyond 4 marine leagues from any coastline and completely within 100 miles of any coastline not included within the provisions of paragraph (2), and 90 percent of the balance of such OCS Receipts shall be deposited into the American Renewable and Alternative Energy Trust Fund established by section 321 of the American Energy Act.

(4)

Receipts sharing from tracts within 4 marine leagues of any coastline

(A)

Areas described in paragraph (2)

Beginning October 1, 2009, and continuing through September 30, 2011, the Secretary shall share 25 percent of OCS Receipts derived from all leases located within 4 marine leagues from any coastline within areas described in paragraph (2). For each fiscal year after September 30, 2011, the Secretary shall increase the percent shared in 5 percent increments each fiscal year until the sharing rate for all leases located within 4 marine leagues from any coastline within areas described in paragraph (2) becomes 75 percent.

(B)

Areas not described in paragraph (2)

Beginning October 1, 2009, the Secretary shall share 75 percent of OCS receipts derived from all leases located completely or partially within 4 marine leagues from any coastline within areas not described paragraph (2).

(5)

Allocations

The Secretary shall allocate the OCS Receipts deposited into the separate account established by paragraph (1) that are shared under paragraphs (2), (3), and (4) as follows:

(A)

Bonus bids

Deposits derived from bonus bids from a leased tract, including interest thereon, shall be allocated at the end of each fiscal year to the Adjacent State.

(B)

Royalties

Deposits derived from royalties from a leased tract, including interest thereon, shall be allocated at the end of each fiscal year to the Adjacent State and any other producing State or States with a leased tract within its Adjacent Zone within 100 miles of its coastline that generated royalties during the fiscal year, if the other producing State or States have a coastline point within 300 miles of any portion of the leased tract, in which case the amount allocated for the leased tract shall be—

(i)

one-third to the Adjacent State; and

(ii)

two-thirds to each producing State, including the Adjacent State, inversely proportional to the distance between the nearest point on the coastline of the producing State and the geographic center of the leased tract.

(c)

Treatment of OCS Receipts From Tracts Partially or Completely Beyond 100 Miles of the Coastline

(1)

Deposit

The Secretary shall deposit into a separate account in the Treasury the portion of OCS Receipts for each fiscal year that will be shared under paragraphs (2) and (3).

(2)

Phased-in receipts sharing

(A)

Beginning October 1, 2009, the Secretary shall share OCS Receipts derived from the following areas:

(i)

Lease tracts located on portions of the Gulf of Mexico OCS Region partially or completely beyond 100 miles of any coastline that were available for leasing under the 2002–2007 5-Year OCS Oil and Gas Leasing Program.

(ii)

Lease tracts in production prior to October 1, 2009, partially or completely beyond 100 miles of any coastline located on portions of the OCS that were not available for leasing under the 2002–2007 5-Year OCS Oil and Gas Leasing Program.

(iii)

Lease tracts for which leases are issued prior to October 1, 2009, located in the Alaska OCS Region partially or completely beyond 100 miles of the coastline.

(B)

The Secretary shall share the following percentages of OCS Receipts from the leases described in subparagraph (A) derived during the fiscal year indicated:

(i)

For fiscal year 2010, 5 percent.

(ii)

For fiscal year 2011, 8 percent.

(iii)

For fiscal year 2012, 11 percent.

(iv)

For fiscal year 2013, 14 percent.

(v)

For fiscal year 2014, 17 percent.

(vi)

For fiscal year 2015, 20 percent.

(vii)

For fiscal year 2016, 23 percent.

(viii)

For fiscal year 2017, 26 percent.

(ix)

For fiscal year 2018, 29 percent.

(x)

For fiscal year 2019, 32 percent.

(xi)

For fiscal year 2020, 35 percent.

(xii)

For fiscal year 2021 and each subsequent fiscal year, 37.5 percent.

(C)

The provisions of this paragraph shall not apply to leases that could not have been issued but for section 5(k) of this Act or section 106(2) of the Deep Ocean Energy Resources Act of 2009.

(3)

Immediate receipts sharing

Beginning October 1, 2009, the Secretary shall share 37.5 percent of OCS Receipts derived on and after October 1, 2009, from all leases located partially or completely beyond 100 miles of any coastline not included within the provisions of paragraph (2), except that the Secretary shall only share 25 percent of such OCS Receipts derived from all such leases within a State’s Adjacent Zone if no leasing is allowed within any portion of that State’s Adjacent Zone located completely within 100 miles of any coastline.

(4)

Allocations

The Secretary shall allocate the OCS Receipts deposited into the separate account established by paragraph (1) that are shared under paragraphs (2) and (3) as follows:

(A)

Bonus bids

Deposits derived from bonus bids from a leased tract, including interest thereon, shall be allocated at the end of each fiscal year to the Adjacent State.

(B)

Royalties

Deposits derived from royalties from a leased tract, including interest thereon, shall be allocated at the end of each fiscal year to the Adjacent State and any other producing State or States with a leased tract within its Adjacent Zone partially or completely beyond 100 miles of its coastline that generated royalties during the fiscal year, if the other producing State or States have a coastline point within 300 miles of any portion of the leased tract, in which case the amount allocated for the leased tract shall be—

(i)

one-third to the Adjacent State; and

(ii)

two-thirds to each producing State, including the Adjacent State, inversely proportional to the distance between the nearest point on the coastline of the producing State and the geographic center of the leased tract.

(d)

Transmission of Allocations

(1)

In general

Not later than 90 days after the end of each fiscal year, the Secretary shall transmit—

(A)

to each State 60 percent of such State’s allocations under subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and (c)(4)(B) for the immediate prior fiscal year;

(B)

to each coastal county-equivalent and municipal political subdivisions of such State a total of 40 percent of such State’s allocations under subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and (c)(4)(B), together with all accrued interest thereon; and

(C)

the remaining allocations under subsections (b)(5) and (c)(4), together with all accrued interest thereon.

(2)

Allocations to coastal county-equivalent political subdivisions

The Secretary shall make an initial allocation of the OCS Receipts to be shared under paragraph (1)(B) as follows:

(A)

25 percent shall be allocated to coastal county-equivalent political subdivisions that are completely more than 25 miles landward of the coastline and at least a part of which lies not more than 75 miles landward from the coastline, with the allocation among such coastal county-equivalent political subdivisions based on population.

(B)

75 percent shall be allocated to coastal county-equivalent political subdivisions that are completely or partially less than 25 miles landward of the coastline, with the allocation among such coastal county-equivalent political subdivisions to be further allocated as follows:

(i)

25 percent shall be allocated based on the ratio of such coastal county-equivalent political subdivision’s population to the coastal population of all coastal county-equivalent political subdivisions in the State.

(ii)

25 percent shall be allocated based on the ratio of such coastal county-equivalent political subdivision’s coastline miles to the coastline miles of all coastal county-equivalent political subdivisions in the State as calculated by the Secretary. In such calculations, coastal county-equivalent political subdivisions without a coastline shall be considered to have 50 percent of the average coastline miles of the coastal county-equivalent political subdivisions that do have coastlines.

(iii)

25 percent shall be allocated to all coastal county-equivalent political subdivisions having a coastline point within 300 miles of the leased tract for which OCS Receipts are being shared based on a formula that allocates the funds based on such coastal county-equivalent political subdivision’s relative distance from the leased tract.

(iv)

25 percent shall be allocated to all coastal county-equivalent political subdivisions having a coastline point within 300 miles of the leased tract for which OCS Receipts are being shared based on the relative level of outer Continental Shelf oil and gas activities in a coastal political subdivision compared to the level of outer Continental Shelf activities in all coastal political subdivisions in the State. The Secretary shall define the term outer Continental Shelf oil and gas activities for purposes of this subparagraph to include, but not be limited to, construction of vessels, drillships, and platforms involved in exploration, production, and development on the outer Continental Shelf; support and supply bases, ports, and related activities; offices of geologists, geophysicists, engineers, and other professionals involved in support of exploration, production, and development of oil and gas on the outer Continental Shelf; pipelines and other means of transporting oil and gas production from the outer Continental Shelf; and processing and refining of oil and gas production from the outer Continental Shelf. For purposes of this subparagraph, if a coastal county-equivalent political subdivision does not have a coastline, its coastal point shall be the point on the coastline closest to it.

(3)

Allocations to coastal municipal political subdivisions

The initial allocation to each coastal county-equivalent political subdivision under paragraph (2) shall be further allocated to the coastal county-equivalent political subdivision and any coastal municipal political subdivisions located partially or wholly within the boundaries of the coastal county-equivalent political subdivision as follows:

(A)

One-third shall be allocated to the coastal county-equivalent political subdivision.

(B)

Two-thirds shall be allocated on a per capita basis to the municipal political subdivisions and the county-equivalent political subdivision, with the allocation to the latter based upon its population not included within the boundaries of a municipal political subdivision.

(e)

Investment of deposits

Amounts deposited under this section shall be invested by the Secretary of the Treasury in securities backed by the full faith and credit of the United States having maturities suitable to the needs of the account in which they are deposited and yielding the highest reasonably available interest rates as determined by the Secretary of the Treasury.

(f)

Use of funds

A recipient of funds under this section may use the funds for one or more of the following:

(1)

To reduce in-State college tuition at public institutions of higher learning and otherwise support public education, including career technical education.

(2)

To make transportation infrastructure improvements.

(3)

To reduce taxes.

(4)

To promote, fund, and provide for—

(A)

coastal or environmental restoration;

(B)

fish, wildlife, and marine life habitat enhancement;

(C)

waterways construction and maintenance;

(D)

levee construction and maintenance and shore protection; and

(E)

marine and oceanographic education and research.

(5)

To promote, fund, and provide for—

(A)

infrastructure associated with energy production activities conducted on the outer Continental Shelf;

(B)

energy demonstration projects;

(C)

supporting infrastructure for shore-based energy projects;

(D)

State geologic programs, including geologic mapping and data storage programs, and State geophysical data acquisition;

(E)

State seismic monitoring programs, including operation of monitoring stations;

(F)

development of oil and gas resources through enhanced recovery techniques;

(G)

alternative energy development, including bio fuels, coal-to-liquids, oil shale, tar sands, geothermal, geopressure, wind, waves, currents, hydro, solar, and other renewable energy;

(H)

energy efficiency and conservation programs; and

(I)

front-end engineering and design for facilities that produce liquid fuels from hydrocarbons and other biological matter.

(6)

To promote, fund, and provide for—

(A)

historic preservation programs and projects;

(B)

natural disaster planning and response; and

(C)

hurricane and natural disaster insurance programs.

(7)

For any other purpose as determined by State law.

(g)

No accounting required

No recipient of funds under this section shall be required to account to the Federal Government for the expenditure of such funds, except as otherwise may be required by law. However, States may enact legislation providing for accounting for and auditing of such expenditures. Further, funds allocated under this section to States and political subdivisions may be used as matching funds for other Federal programs.

(h)

Effect of future laws

Enactment of any future Federal statute that has the effect, as determined by the Secretary, of restricting any Federal agency from spending appropriated funds, or otherwise preventing it from fulfilling its pre-existing responsibilities as of the date of enactment of the statute, unless such responsibilities have been reassigned to another Federal agency by the statute with no prevention of performance, to issue any permit or other approval impacting on the OCS oil and gas leasing program, or any lease issued thereunder, or to implement any provision of this Act shall automatically prohibit any sharing of OCS Receipts under this section directly with the States, and their coastal political subdivisions, for the duration of the restriction. The Secretary shall make the determination of the existence of such restricting effects within 30 days of a petition by any outer Continental Shelf lessee or producing State.

(i)

Definitions

In this section:

(1)

Coastal county-equivalent political subdivision

The term coastal county-equivalent political subdivision means a political jurisdiction immediately below the level of State government, including a county, parish, borough in Alaska, independent municipality not part of a county, parish, or borough in Alaska, or other equivalent subdivision of a coastal State, that lies within the coastal zone.

(2)

Coastal municipal political subdivision

The term coastal municipal political subdivision means a municipality located within and part of a county, parish, borough in Alaska, or other equivalent subdivision of a State, all or part of which coastal municipal political subdivision lies within the coastal zone.

(3)

Coastal population

The term coastal population means the population of all coastal county-equivalent political subdivisions, as determined by the most recent official data of the Census Bureau.

(4)

Coastal zone

The term coastal zone means that portion of a coastal State, including the entire territory of any coastal county-equivalent political subdivision at least a part of which lies, within 75 miles landward from the coastline, or a greater distance as determined by State law enacted to implement this section.

(5)

Bonus bids

The term bonus bids means all funds received by the Secretary to issue an outer Continental Shelf minerals lease.

(6)

Royalties

The term royalties means all funds received by the Secretary from production of oil or natural gas, or the sale of production taken in-kind, from an outer Continental Shelf minerals lease.

(7)

Producing state

The term producing State means an Adjacent State having an Adjacent Zone containing leased tracts from which OCS Receipts were derived.

(8)

OCS receipts

The term OCS Receipts means bonus bids, royalties, and conservation of resources fees.

.

114.

Reservation of lands and rights

Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 1341) is amended by adding at the end the following:

(g)

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 2009, prior to January 1, 2022, no area of the outer Continental Shelf located in the Gulf of Mexico east of the military mission line may be offered for leasing for oil and gas or natural gas unless a waiver is issued by the Secretary of Defense. If such a waiver is granted, 62.5 percent of the OCS Receipts from a lease within such area issued because of such waiver shall be paid annually to the National Guards of all States having a point within 1000 miles of such a lease, allocated among the States on a per capita basis using the entire population of such States.

(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.

.

115.

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 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 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.

.

116.

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 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.

.

117.

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.

.

118.

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 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 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.

119.

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 were 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.

120.

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.

121.

OCS regional headquarters

Not later than July 1, 2011, the Secretary of the Interior shall establish the headquarters for the Atlantic OCS Region, the headquarters for the Gulf of Mexico OCS Region, and the headquarters for the Pacific OCS Region within a State bordering the Atlantic OCS Region, a State bordering the Gulf of Mexico OCS Region, and a State bordering the Pacific OCS Region. Such Atlantic and Pacific OCS Regions headquarters shall be located within 25 miles of the coastline and each Minerals Management Service OCS regional headquarters shall be the permanent duty station for all Minerals Management Service personnel that on a daily basis spend on average 60 percent or more of their time in performance of duties in support of the activities of the respective Region, except that the Minerals Management Service may house regional inspection staff in other locations. Each OCS Region shall each be led by a Regional Director who shall be an employee within the Senior Executive Service.

122.

Leases for areas located within 12 nautical miles of California or Florida

(a)

Authorization To cancel and exchange certain existing oil and gas leases

(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 12 nautical 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.

(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.

(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)

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.

123.

Coastal impact assistance

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

124.

Repeal of the Gulf of Mexico Energy Security Act of 2006

The Gulf of Mexico Energy Security Act of 2006 is repealed effective October 1, 2009.

B

ANWR

141.

Short title

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

142.

Definitions

In this subtitle:

(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.

143.

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

(2)

to administer the provisions of this subtitle 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 subtitle in a manner that ensures the receipt of fair market value by the public for the mineral resources to be leased.

(b)

Repeal

(1)

Repeal

Section 1003 of the Alaska National Interest Lands Conservation Act 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 subtitle before the conduct of the first lease sale.

(3)

Compliance with NEPA for other actions

Before conducting the first lease sale under this subtitle, the Secretary shall prepare an environmental impact statement under the National Environmental Policy Act of 1969 with respect to the actions authorized by this subtitle 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 subtitle shall be completed within 18 months after the date of enactment of this Act. The Secretary shall only consider public comments that specifically address the Secretary’s preferred action and that are filed within 20 days after publication of an environmental analysis. Notwithstanding any other law, compliance with this paragraph is deemed to satisfy all requirements for the analysis and consideration of the environmental effects of proposed leasing under this subtitle.

(d)

Relationship to State and local authority

Nothing in this subtitle 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 subtitle.

(g)

Regulations

(1)

In general

The Secretary shall prescribe such regulations as may be necessary to carry out this subtitle, 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.

144.

Lease sales

(a)

In general

Lands may be leased pursuant to this subtitle to any person qualified to obtain a lease for deposits of oil and gas under the Mineral Leasing Act (30 U.S.C. 181 et seq.).

(b)

Procedures

The Secretary shall, by 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 subtitle shall be by sealed competitive cash bonus bids.

(d)

Acreage minimum in first sale

In the first lease sale under this subtitle, the Secretary shall offer for lease those tracts the Secretary considers to have the greatest potential for the discovery of hydrocarbons, 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 subtitle 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.

145.

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 144 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 subtitle 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.

146.

Lease terms and conditions

(a)

In general

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

(1)

provide for the payment of a royalty of not less than 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 subtitle 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 143(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 subtitle and the regulations issued under this subtitle.

(b)

Project labor agreements

The Secretary, as a term and condition of each lease under this subtitle and in recognizing the 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 subtitle 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.

147.

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 143, administer the provisions of this subtitle 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 subtitle, 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 subtitle are conducted in a manner consistent with the purposes and environmental requirements of this subtitle.

(d)

Compliance with Federal and State environmental laws and other requirements

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

148.

Expedited judicial review

(a)

Filing of complaint

(1)

Deadline

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

(A)

except as provided in subparagraph (B), within the 60-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 60 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 subtitle or any action of the Secretary under this subtitle may be filed only in the United States District Court 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 subtitle, including the environmental analysis thereof, shall be limited to whether the Secretary has complied with the terms of this subtitle 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 subtitle 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.

149.

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 subtitle—

(1)

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

(2)

except as provided in section 152(d), 90 percent of the balance shall be deposited into the American Renewable and Alternative Energy Trust Fund established by section 321.

(b)

Payments to Alaska

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

150.

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 143(g) provisions granting rights-of-way and easements described in subsection (a) of this section.

151.

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.

152.

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 subtitle.

(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 subtitle, 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 Natural 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 subtitle.

(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.

C

Oil Shale

161.

Oil shale

(a)

Findings

Congress finds that oil shale resources located within the United States—

(1)

total almost 2 trillion barrels of oil in place;

(2)

are a strategically important domestic resource that should be developed on an accelerated basis to reduce our growing reliance on politically and economically unstable sources of foreign oil imports;

(3)

are one of the best resources available for advancing American technology and creating American jobs; and

(4)

will be a critically important component of the Nation’s transportation fuel sector in particular, by providing a secure domestic source of aviation fuel for both commercial and military uses.

(b)

Additional research and development lease sales

The Secretary of the Interior shall hold a lease sale within 180 days after the date of enactment of this Act offering an additional 10 parcels for lease for research, development, and demonstration of oil shale resources, under the terms offered in the solicitation of bids for such leases published on January 15, 2009 (74 Fed. Reg. 10).

(c)

Application of regulations

The oil shale management final rules published by the Department of the Interior on November 18, 2008 (73 Fed. Reg. 223), shall apply to all commercial leasing for the management of federally owned oil shale, and any associated minerals, located on Federal lands.

(d)

Reduced payments To ensure production

The Secretary of the Interior may temporarily reduce royalties, fees, rentals, bonus, or other payments for leases of Federal lands for the development and production of oil shale resources as necessary to incentivize and encourage development of such resources, if the Secretary determines that the royalties, fees, rentals, bonus bids, and other payments otherwise authorized by law are hindering production of such resources.

D

Refinery Permit Process Schedule

171.

Short title

This subtitle may be cited as the Refinery Permit Process Schedule Act.

172.

Definitions

For purposes of this subtitle—

(1)

the term Administrator means the Administrator of the Environmental Protection Agency;

(2)

the term applicant means a person who (with the approval of the governor of the State, or in the case of Native American tribes or tribal territories the designated leader of the tribe or tribal community, where the proposed refinery would be located) is seeking a Federal refinery authorization;

(3)

the term biomass has the meaning given that term in section 932(a)(1) of the Energy Policy Act of 2005;

(4)

the term Federal refinery authorization

(A)

means any authorization required under Federal law, whether administered by a Federal or State administrative agency or official, with respect to siting, construction, expansion, or operation of a refinery; and

(B)

includes any permits, licenses, special use authorizations, certifications, opinions, or other approvals required under Federal law with respect to siting, construction, expansion, or operation of a refinery;

(5)

the term refinery means—

(A)

a facility designed and operated to receive, load, unload, store, transport, process, and refine crude oil by any chemical or physical process, including distillation, fluid catalytic cracking, hydrocracking, coking, alkylation, etherification, polymerization, catalytic reforming, isomerization, hydrotreating, blending, and any combination thereof, in order to produce gasoline or distillate;

(B)

a facility designed and operated to receive, load, unload, store, transport, process, and refine coal by any chemical or physical process, including liquefaction, in order to produce gasoline or diesel as its primary output; or

(C)

a facility designed and operated to receive, load, unload, store, transport, process (including biochemical, photochemical, and biotechnology processes), and refine biomass in order to produce biofuel; and

(6)

the term State means a State, the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States.

173.

State assistance

(a)

State assistance

At the request of a governor of a State, or in the case of Native American tribes or tribal territories the designated leader of the tribe or tribal community, the Administrator is authorized to provide financial assistance to that State or tribe or tribal community to facilitate the hiring of additional personnel to assist the State or tribe or tribal community with expertise in fields relevant to consideration of Federal refinery authorizations.

(b)

Other assistance

At the request of a governor of a State, or in the case of Native American tribes or tribal territories the designated leader of the tribe or tribal community, a Federal agency responsible for a Federal refinery authorization shall provide technical, legal, or other nonfinancial assistance to that State or tribe or tribal community to facilitate its consideration of Federal refinery authorizations.

174.

Refinery process coordination and procedures

(a)

Appointment of federal coordinator

(1)

In general

The President shall appoint a Federal coordinator to perform the responsibilities assigned to the Federal coordinator under this subtitle.

(2)

Other agencies

Each Federal and State agency or official required to provide a Federal refinery authorization shall cooperate with the Federal coordinator.

(b)

Federal refinery authorizations

(1)

Meeting participants

Not later than 30 days after receiving a notification from an applicant that the applicant is seeking a Federal refinery authorization pursuant to Federal law, the Federal coordinator appointed under subsection (a) shall convene a meeting of representatives from all Federal and State agencies responsible for a Federal refinery authorization with respect to the refinery. The governor of a State shall identify each agency of that State that is responsible for a Federal refinery authorization with respect to that refinery.

(2)

Memorandum of agreement

(A)

Not later than 90 days after receipt of a notification described in paragraph (1), the Federal coordinator and the other participants at a meeting convened under paragraph (1) shall establish a memorandum of agreement setting forth the most expeditious coordinated schedule possible for completion of all Federal refinery authorizations with respect to the refinery, consistent with the full substantive and procedural review required by Federal law. If a Federal or State agency responsible for a Federal refinery authorization with respect to the refinery is not represented at such meeting, the Federal coordinator shall ensure that the schedule accommodates those Federal refinery authorizations, consistent with Federal law. In the event of conflict among Federal refinery authorization scheduling requirements, the requirements of the Environmental Protection Agency shall be given priority.

(B)

Not later than 15 days after completing the memorandum of agreement, the Federal coordinator shall publish the memorandum of agreement in the Federal Register.

(C)

The Federal coordinator shall ensure that all parties to the memorandum of agreement are working in good faith to carry out the memorandum of agreement, and shall facilitate the maintenance of the schedule established therein.

(c)

Consolidated record

The Federal coordinator shall, with the cooperation of Federal and State administrative agencies and officials, maintain a complete consolidated record of all decisions made or actions taken by the Federal coordinator or by a Federal administrative agency or officer (or State administrative agency or officer acting under delegated Federal authority) with respect to any Federal refinery authorization. Such record shall be the record for judicial review under subsection (d) of decisions made or actions taken by Federal and State administrative agencies and officials, except that, if the Court determines that the record does not contain sufficient information, the Court may remand the proceeding to the Federal coordinator for further development of the consolidated record.

(d)

Remedies

(1)

In general

The United States District Court for the district in which the proposed refinery is located shall have exclusive jurisdiction over any civil action for the review of the failure of an agency or official to act on a Federal refinery authorization in accordance with the schedule established pursuant to the memorandum of agreement.

(2)

Standing

If an applicant or a party to a memorandum of agreement alleges that a failure to act described in paragraph (1) has occurred and that such failure to act would jeopardize timely completion of the entire schedule as established in the memorandum of agreement, such applicant or other party may bring a cause of action under this subsection.

(3)

Court action

If an action is brought under paragraph (2), the Court shall review whether the parties to the memorandum of agreement have been acting in good faith, whether the applicant has been cooperating fully with the agencies that are responsible for issuing a Federal refinery authorization, and any other relevant materials in the consolidated record. Taking into consideration those factors, if the Court finds that a failure to act described in paragraph (1) has occurred, and that such failure to act would jeopardize timely completion of the entire schedule as established in the memorandum of agreement, the Court shall establish a new schedule that is the most expeditious coordinated schedule possible for completion of proceedings, consistent with the full substantive and procedural review required by Federal law. The court may issue orders to enforce any schedule it establishes under this paragraph.

(4)

Federal coordinator’s action

When any civil action is brought under this subsection, the Federal coordinator shall immediately file with the Court the consolidated record compiled by the Federal coordinator pursuant to subsection (c).

(5)

Expedited review

The Court shall set any civil action brought under this subsection for expedited consideration.

175.

Designation of closed military bases

(a)

Designation requirement

Not later than 90 days after the date of enactment of this Act, the President shall designate no less than 3 closed military installations, or portions thereof, as potentially suitable for the construction of a refinery. At least 1 such site shall be designated as potentially suitable for construction of a refinery to refine biomass in order to produce biofuel.

(b)

Redevelopment authority

The redevelopment authority for each installation designated under subsection (a), in preparing or revising the redevelopment plan for the installation, shall consider the feasibility and practicability of siting a refinery on the installation.

(c)

Management and disposal of real property

The Secretary of Defense, in managing and disposing of real property at an installation designated under subsection (a) pursuant to the base closure law applicable to the installation, shall give substantial deference to the recommendations of the redevelopment authority, as contained in the redevelopment plan for the installation, regarding the siting of a refinery on the installation. The management and disposal of real property at a closed military installation or portion thereof found to be suitable for the siting of a refinery under subsection (a) shall be carried out in the manner provided by the base closure law applicable to the installation.

(d)

Definitions

For purposes of this section—

(1)

the term base closure law means the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note) and title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100–526; 10 U.S.C. 2687 note); and

(2)

the term closed military installation means a military installation closed or approved for closure pursuant to a base closure law.

176.

Savings clause

Nothing in this subtitle shall be construed to affect the application of any environmental or other law, or to prevent any party from bringing a cause of action under any environmental or other law, including citizen suits.

177.

Refinery revitalization repeal

Subtitle H of title III of the Energy Policy Act of 2005 and the items relating thereto in the table of contents of such Act are repealed.

II

CONSERVATION AND EFFICIENCY

A

Tax Incentives for Fuel Efficiency

201.

Extension of credit for alternative fuel vehicles

Paragraph (4) of section 30B(j) of the Internal Revenue Code of 1986 is amended by striking December 31, 2010 and inserting December 31, 2020.

202.

Extension of alternative fuel vehicle refueling property credit

Paragraph (1) of section 30C(g) of the Internal Revenue Code of 1986 is amended—

(1)

by striking hydrogen, and inserting hydrogen or alternative fuels (as defined in section 30B(e)(4)(B)),, and

(2)

by striking December 31, 2014 and inserting December 31, 2020.

203.

Extension of credit for new qualified plug-in electric drive motor vehicles

(a)

In general

Section 30D of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(g)

Termination

This section shall not apply to property placed in service after December 31, 2020.

.

(b)

Repeal of limitation on number of new qualified plug-In electric drive motor vehicles eligible for credit

Section 30D of such Code, as amended by subsection (a), is amended by striking subsection (e) and redesignating subsections (f) and (g) as subsections (e) and (f), respectively.

(c)

Conforming amendments

(1)

Section 1016(a)(37) of such Code is amended by striking section 30D(f)(1) and inserting section 30D(e)(1).

(2)

Section 6501(m) of such Code is amended by striking section 30D(e)(4) and inserting section 30D(e)(4).

(d)

Effective date

The amendments made by this section shall apply to vehicles acquired after December 31, 2009.

B

Tapping America’s Ingenuity and Creativity

211.

Definitions

In this subtitle:

(1)

Administering entity

The term administering entity means the entity with which the Secretary enters into an agreement under section 214(c).

(2)

Department

The term Department means the Department of Energy.

(3)

Secretary

The term Secretary means the Secretary of Energy.

212.

Statement of policy

It is the policy of the United States to provide incentives to encourage the development and implementation of innovative energy technologies and new energy sources that will reduce our reliance on foreign energy.

213.

Prize authority

(a)

In general

The Secretary shall carry out a program to competitively award cash prizes in conformity with this subtitle to advance the research, development, demonstration, and commercial application of innovative energy technologies and new energy sources.

(b)

Advertising and Solicitation of Competitors

(1)

Advertising

The Secretary shall widely advertise prize competitions to encourage broad participation in the program carried out under subsection (a), including individuals, universities, communities, and large and small businesses.

(2)

Announcement through federal register notice

The Secretary shall announce each prize competition by publishing a notice in the Federal Register. This notice shall include essential elements of the competition such as the subject of the competition, the duration of the competition, the eligibility requirements for participation in the competition, the process for participants to register for the competition, the amount of the prize, and the criteria for awarding the prize.

(c)

Administering the Competition

The Secretary may enter into an agreement with a private, nonprofit entity to administer the prize competitions, subject to the provisions of this subtitle. The administering entity shall perform the following functions:

(1)

Advertise the competition and its results.

(2)

Raise funds from private entities and individuals to pay for administrative costs and cash prizes.

(3)

Develop, in consultation with and subject to the final approval of the Secretary, criteria to select winners based upon the goal of safely and adequately storing nuclear used fuel.

(4)

Determine, in consultation with and subject to the final approval of the Secretary, the appropriate amount of the awards.

(5)

Protect against the administering entity’s unauthorized use or disclosure of a registered participant’s intellectual property, trade secrets, and confidential business information. Any information properly identified as trade secrets or confidential business information that is submitted by a participant as part of a competitive program under this subtitle may be withheld from public disclosure.

(6)

Develop and promulgate sufficient rules to define the parameters of designing and proposing innovative energy technologies and new energy sources with input from industry, citizens, and corporations familiar with such activities.

(d)

Funding Sources

Prizes under this subtitle may consist of Federal appropriated funds, funds provided by the administering entity, or funds raised through grants or donations. The Secretary may accept funds from other Federal agencies for such cash prizes and, notwithstanding section 3302(b) of title 31, United States Code, may use such funds for the cash prize program. Other than publication of the names of prize sponsors, the Secretary may not give any special consideration to any private sector entity or individual in return for a donation to the Secretary or administering entity.

(e)

Announcement of Prizes

The Secretary may not publish a notice required by subsection (b)(2) until all the funds needed to pay out the announced amount of the prize have been appropriated to the Department or the Department has received from the administering entity a written commitment to provide all necessary funds.

214.

Eligibility

To be eligible to win a prize under this subtitle, an individual or entity—

(1)

shall notify the administering entity of intent to submit ideas and intent to collect the prize upon selection;

(2)

shall comply with all the requirements stated in the Federal Register notice required under section 213(b)(2);

(3)

in the case of a private entity, shall be incorporated in and maintain a primary place of business in the United States, and in the case of an individual, whether participating singly or in a group, shall be a citizen of the United States;

(4)

shall not be a Federal entity, a Federal employee acting within the scope of his or her employment, or an employee of a national laboratory acting within the scope of employment;

(5)

shall not use Federal funding or other Federal resources to compete for the prize; and

(6)

shall not be an entity acting on behalf of any foreign government or agent.

215.

Intellectual property

The Federal Government shall not, by virtue of offering or awarding a prize under this subtitle, be entitled to any intellectual property rights derived as a consequence of, or in direct relation to, the participation by a registered participant in a competition authorized by this subtitle. This section shall not be construed to prevent the Federal Government from negotiating a license for the use of intellectual property developed for a prize competition under this subtitle. The Federal Government may seek assurances that technologies for which prizes are awarded under this subtitle are offered for commercialization in the event an award recipient does not take, or is not expected to take within a reasonable time, effective steps to achieve practical application of the technology.

216.

Waiver of liability

The Secretary may require registered participants to waive claims against the Federal Government and the administering entity (except claims for willful misconduct) for any injury, death, damage, or loss of property, revenue, or profits arising from the registered participants’ participation in a competition under this subtitle. The Secretary shall give notice of any waiver required under this section in the notice required by section 213(b)(2). The Secretary may not require a registered participant to waive claims against the administering entity arising out of the unauthorized use or disclosure by the administering entity of the registered participant’s intellectual property, trade secrets, or confidential business information.

217.

Authorization of appropriations

(a)

Awards

Forty percent of amounts in the American Energy Trust Fund shall be available without further appropriation to carry out specified provisions of this section.

(b)

Treatment of Awards

Amounts received pursuant to an award under this subtitle may not be taxed by any Federal, State, or local authority.

(c)

Administration

In addition to the amounts authorized under subsection (a), there are authorized to be appropriated to the Secretary for each of fiscal years 2009 through 2020 $2,000,000 for the administrative costs of carrying out this subtitle.

(d)

Carryover of Funds

Funds appropriated for prize awards under this subtitle shall remain available until expended and may be transferred, reprogrammed, or expended for other purposes only after the expiration of 11 fiscal years after the fiscal year for which the funds were originally appropriated. No provision in this subtitle permits obligation or payment of funds in violation of section 1341 of title 31, United States Code.

218.

Next generation automobile prize program

The Secretary of Energy shall establish a program to award a prize in the amount of $500,000,000 to the first automobile manufacturer incorporated in the United States to manufacture and sell in the United States 50,000 midsized sedan automobiles which operate on gasoline and can travel 100 miles per gallon.

219.

Advanced battery manufacturing incentive program

(a)

Definitions

In this section:

(1)

Advanced battery

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

(2)

Engineering integration costs

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

(A)

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

(B)

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

(b)

Advanced Battery Manufacturing Facility

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

(c)

Period of Availability

An award under subsection (b) shall apply to—

(1)

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

(2)

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

(d)

Direct Loan Program

(1)

In general

Not later than 1 year after the date of enactment of this subtitle, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $100,000,000 in loans to eligible individuals and entities (as determined by the Secretary) for the costs of activities described in subsection (b).

(2)

Selection of eligible projects

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

(A)

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

(B)

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

(C)

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

(3)

Rates, terms, and repayment of loans

A loan provided under this subsection—

(A)

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

(B)

shall have a term equal to the lesser of—

(i)

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

(ii)

25 years;

(C)

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

(D)

shall be made by the Federal Financing Bank.

(e)

Fees

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

(f)

Set Aside for Small Manufacturers

(1)

Definition of covered firm

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

(A)

employs fewer than 500 individuals; and

(B)

manufactures automobiles or components of automobiles.

(2)

Set aside

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

(g)

Authorization of Appropriations

There are authorized to be appropriated from the American Energy Trust Fund such sums as are necessary to carry out this section for each of fiscal years 2009 through 2013.

C

Home and Business Tax Incentives

221.

Extension of credit for energy efficient appliances

(a)

In general

Subsection (b) of section 45M of the Internal Revenue Code of 1986 (relating to applicable amount) is amended—

(1)

in paragraph (1)—

(A)

by striking 2008 or 2009 in subparagraph (A) and inserting 2008, 2009, 2010, 2011, or 2012, and

(B)

by striking 2008, 2009, or 2010 in subparagraph (B) and inserting 2008, 2009, 2010, 2011, 2012, or 2013 ,

(2)

in paragraph (2)—

(A)

by striking 2008 or 2009 in subparagraph (B) and inserting 2008, 2009, 2010, 2011, or 2012,

(B)

by striking 2008, 2009, or 2010 in subparagraph (C) and inserting 2008, 2009, 2010, 2011, 2012, or 2013, and

(C)

by striking 2008, 2009, or 2010 in subparagraph (D) and inserting 2008, 2009, 2010, 2011, 2012, or 2013, and

(3)

in paragraph (3)—

(A)

by striking 2008 or 2009 in subparagraph (B) and inserting 2008, 2009, 2010, 2011, or 2012,

(B)

by striking 2008, 2009, or 2010 in subparagraph (C) and inserting 2008, 2009, 2010, 2011, 2012, or 2013, and

(C)

by striking 2008, 2009, or 2010 in subparagraph (D) and inserting 2008, 2009, 2010, 2011, 2012, or 2013.

(b)

Increase in aggregate credit amount allowed

Paragraph (1) of section 45M(e) of such Code (relating to aggregate credit amount allowed) is amended by striking $75,000,000 and inserting $100,000,000.

(c)

Effective date

The amendments made by this section shall apply to appliances produced after December 31, 2009.

222.

Extension of credit for nonbusiness energy property

(a)

In general

Section 25C(g) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2010 and inserting December 31, 2020.

(b)

Effective date

The amendment made by this section shall apply to property placed in service after December 31, 2007.

223.

Extension of credit for residential energy efficient property

Section 25D(g) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2016 and inserting December 31, 2020.

224.

Extension of new energy efficient home credit

Subsection (g) of section 45L of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2009 and inserting December 31, 2020.

225.

Extension of energy efficient commercial buildings deduction

Section 179D(h) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2013 and inserting December 31, 2020.

226.

Extension of special rule to implement FERC and State electric restructuring policy

(a)

In general

Paragraph (3) of section 451(i) of the Internal Revenue Code of 1986 is amended by striking January 1, 2008 and inserting January 1, 2021.

(b)

Effective Date

The amendment made by subsection (a) shall apply to transactions after December 31, 2008.

227.

Home energy audits

(a)

In general

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:

25E.

Home energy audits

(a)

In General

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the amount of qualified energy audit paid or incurred by the taxpayer during the taxable year.

(b)

Limitations

(1)

Dollar limitation

The amount allowed as a credit under subsection (a) with respect to a residence of the taxpayer for a taxable year shall not exceed $400.

(2)

Limitation based on amount of tax

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

(A)

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

(B)

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

(c)

Qualified Energy Audit

For purposes of this section, the term qualified energy audit means an energy audit of the principal residence of the taxpayer performed by a qualified energy auditor through a comprehensive site visit. Such audit may include a blower door test, an infra-red camera test, and a furnace combustion efficiency test. In addition, such audit shall include such substitute tests for the tests specified in the preceding sentence, and such additional tests, as the Secretary may by regulation require. A principal residence shall not be taken into consideration under this subparagraph unless such residence is located in the United States.

(d)

Principal residence

For purposes of this section, the term principal residence has the same meaning as when used in section 121.

(e)

Qualified energy auditor

(1)

In general

The Secretary shall specify by regulations the qualifications required to be a qualified energy auditor for purposes of this section. Such regulations shall include rules prohibiting conflicts-of-interest, including the disallowance of commissions or other payments based on goods or non-audit services purchased by the taxpayer from the auditor.

(2)

Certification

The Secretary shall prescribe the procedures and methods for certifying that an auditor is a qualified energy auditor. To the maximum extent practicable, such procedures and methods shall provide for a variety of sources to obtain certifications.

.

(b)

Conforming amendments

(1)

Section 23(b)(4)(B) of the Internal Revenue Code of 1986 is amended by striking section 25D and inserting sections 25D and 25E.

(2)

Section 23(c)(1) of such Code is amended by striking 25D and and inserting 25D, 25E, and.

(3)

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

(4)

Clauses (i) and (ii) of section 25(e)(1)(C) of such Code are each amended by inserting 25E, after 25D,.

(5)

Section 25B(g)(2) of such Code is amended by inserting 25E, after 25D,.

(6)

Section 25D(c)(1)(B) of such Code is amended by inserting and section 25E after this section.

(7)

Section 25D(c)(2)(A) of such Code is amended by inserting and section 25E after this section.

(8)

The table of sections for subpart A of part IV of subchapter A chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item:

Sec. 25E. Home energy audits.

.

(c)

Effective date

(1)

In general

The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.

(2)

Application of EGTRRA sunset

The amendments made by paragraphs (1) and (3) of subsection (b) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.

228.

Accelerated recovery period for depreciation of smart meters

(a)

In general

Section 168(e)(3)(B) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (vi), by striking the period at the end of clause (vii) and inserting , and, and by inserting after clause (vii) the following new clause:

(viii)

any qualified smart electric meter.

.

(b)

Conforming amendment

Section 168(e)(3)(D) of such Code is amended by striking clause (iii) and redesignating clause (iv) as clause (iii).

(c)

Effective date

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

III

NEW AND EXPANDING TECHNOLOGIES

A

Alternative Fuels

301.

Repeal

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

302.

Government auction of long-term put option contracts on coal-to-liquid fuel produced by qualified coal-to-liquid facilities

(a)

In General

The Secretary shall, from time to time, auction to the public coal-to-liquid fuel put option contracts having expiration dates of 5 years, 10 years, 15 years, or 20 years.

(b)

Consultation With Secretary of Energy

The Secretary shall consult with the Secretary of Energy regarding—

(1)

the frequency of the auctions;

(2)

the strike prices specified in the contracts;

(3)

the number of contracts to be auctioned with a given strike price and expiration date; and

(4)

the capacity of existing or planned facilities to produce coal-to-liquid fuel.

(c)

Definitions

In this section:

(1)

Coal-to-liquid fuel

The term coal-to-liquid fuel means any transportation-grade liquid fuel derived primarily from coal (including peat) and produced at a qualified coal-to-liquid facility.

(2)

Coal-to-liquid put option contract

The term coal-to-liquid put option contract means a contract, written by the Secretary, which—

(A)

gives the holder the right (but not the obligation) to sell to the Government of the United States a certain quantity of a specific type of coal-to-liquid fuel produced by a qualified coal-to-liquid facility specified in the contract, at a strike price specified in the contract, on or before an expiration date specified in the contract; and

(B)

is transferable by the holder to any other entity.

(3)

Qualified coal-to-liquid facility

The term qualified coal-to-liquid facility means a manufacturing facility that has the capacity to produce at least 10,000 barrels per day of transportation grade liquid fuels from a feedstock that is primarily domestic coal (including peat and any property which allows for the capture, transportation, or sequestration of by-products resulting from such process, including carbon emissions).

(4)

Secretary

The term Secretary means the Secretary of the Treasury.

(5)

Strike price

The term strike price means, with respect to a put option contract, the price at which the holder of the contract has the right to sell the fuel which is the subject of the contract.

(d)

Regulations

The Secretary shall prescribe such regulations as may be necessary to carry out this section.

(e)

Effective Date

This section shall take effect 1 year after the date of the enactment of this Act.

303.

Standby loans for qualifying coal-to-liquids projects

Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by adding at the end the following new subsection:

(k)

Standby Loans for Qualifying CTL Projects

(1)

Definitions

For purposes of this subsection:

(A)

Cap price

The term cap price means a market price specified in the standby loan agreement above which the project is required to make payments to the United States.

(B)

Full term

The term full term means the full term of a standby loan agreement, as specified in the agreement, which shall not exceed the lesser of 30 years or 90 percent of the projected useful life of the project (as determined by the Secretary).

(C)

Market price

The term market price means the average quarterly price of a petroleum price index specified in the standby loan agreement.

(D)

Minimum price

The term minimum price means a market price specified in the standby loan agreement below which the United States is obligated to make disbursements to the project.

(E)

Output

The term output means some or all of the liquid or gaseous transportation fuels produced from the project, as specified in the loan agreement.

(F)

Primary term

The term primary term means the initial term of a standby loan agreement, as specified in the agreement, which shall not exceed the lesser of 20 years or 75 percent of the projected useful life of the project (as determined by the Secretary).

(G)

Qualifying ctl project

The term qualifying CTL project means—

(i)

a commercial-scale project that converts coal to one or more liquid or gaseous transportation fuels; or

(ii)

not more than one project at a facility that converts petroleum refinery waste products, including petroleum coke, into one or more liquids or gaseous transportation fuels,

that demonstrates the capture, and sequestration or disposal or use of, the carbon dioxide produced in the conversion process, and that, on the basis of a carbon dioxide sequestration plan prepared by the applicant, is certified by the Administrator of the Environmental Protection Agency, in consultation with the Secretary, as producing fuel with life cycle carbon dioxide emissions at or below the average life cycle carbon dioxide emissions for the same type of fuel produced at traditional petroleum based facilities with similar annual capacities.
(H)

Standby loan agreement

The term standby loan agreement means a loan agreement entered into under paragraph (2).

(2)

Standby Loans

(A)

Loan Authority

The Secretary may enter into standby loan agreements with not more than six qualifying CTL projects, at least one of which shall be a project jointly or in part owned by two or more small coal producers. Such an agreement—

(i)

shall provide that the Secretary will make a direct loan (within the meaning of section 502(1) of the Federal Credit Reform Act of 1990) to the qualifying CTL project; and

(ii)

shall set a cap price and a minimum price for the primary term of the agreement.

(B)

Loan Disbursements

Such a loan shall be disbursed during the primary term of such agreement whenever the market price falls below the minimum price. The amount of such disbursements in any calendar quarter shall be equal to the excess of the minimum price over the market price, times the output of the project (but not more than a total level of disbursements specified in the agreement).

(C)

Loan Repayments

The Secretary shall establish terms and conditions, including interest rates and amortization schedules, for the repayment of such loan within the full term of the agreement, subject to the following limitations:

(i)

If in any calendar quarter during the primary term of the agreement the market price is less than the cap price, the project may elect to defer some or all of its repayment obligations due in that quarter. Any unpaid obligations will continue to accrue interest.

(ii)

If in any calendar quarter during the primary term of the agreement the market price is greater than the cap price, the project shall meet its scheduled repayment obligation plus deferred repayment obligations, but shall not be required to pay in that quarter an amount that is more than the excess of the market price over the cap price, times the output of the project.

(iii)

At the end of the primary term of the agreement, the cumulative amount of any deferred repayment obligations, together with accrued interest, shall be amortized (with interest) over the remainder of the full term of the agreement.

(3)

Profit-sharing

The Secretary is authorized to enter into a profit-sharing agreement with the project at the time the standby loan agreement is executed. Under such an agreement, if the market price exceeds the cap price in a calendar quarter, a profit-sharing payment shall be made for that quarter, in an amount equal to—

(A)

the excess of the market price over the cap price, times the output of the project; less

(B)

any loan repayments made for the calendar quarter.

(4)

Compliance with Federal Credit Reform Act

(A)

Upfront Payment of Cost of Loan

No standby loan agreement may be entered into under this subsection unless the project makes a payment to the United States that the Office of Management and Budget determines is equal to the cost of such loan (determined under 502(5)(B) of the Federal Credit Reform Act of 1990). Such payment shall be made at the time the standby loan agreement is executed.

(B)

Minimization of Risk to the Government

In making the determination of the cost of the loan for purposes of setting the payment for a standby loan under subparagraph (A), the Secretary and the Office of Management and Budget shall take into consideration the extent to which the minimum price and the cap price reflect historical patterns of volatility in actual oil prices relative to projections of future oil prices, based upon publicly available data from the Energy Information Administration, and employing statistical methods and analyses that are appropriate for the analysis of volatility in energy prices.

(C)

Treatment of Payments

The value to the United States of a payment under subparagraph (A) and any profit-sharing payments under paragraph (3) shall be taken into account for purposes of section 502(5)(B)(iii) of the Federal Credit Reform Act of 1990 in determining the cost to the Federal Government of a standby loan made under this subsection. If a standby loan has no cost to the Federal Government, the requirements of section 504(b) of such Act shall be deemed to be satisfied.

(5)

Other Provisions

(A)

No Double Benefit

A project receiving a loan under this subsection may not, during the primary term of the loan agreement, receive a Federal loan guarantee under subsection (a) of this section, or under other laws.

(B)

Subrogation, Etc

Subsections (g)(2) (relating to subrogation), (h) (relating to fees), and (j) (relating to full faith and credit) shall apply to standby loans under this subsection to the same extent they apply to loan guarantees.

.

B

Tax Provisions

311.

Extension of renewable electricity, refined coal, and Indian coal production credit

(a)

Credit made permanent

(1)

In general

Subsection (d) of section 45 of the Internal Revenue Code of 1986 (relating to qualified facilities) is amended—

(A)

by striking and before January 1, 2014 each place it occurs,

(B)

by striking , and before January 1, 2013 in paragraph (1), and

(C)

by striking before January 1, 2009 in paragraph (10).

(2)

Open-loop biomass facilities

Subparagraph (A) of section 45(d)(3) of such Code is amended to read as follows:

(A)

In general

In the case of a facility using open-loop biomass to produce electricity, the term qualified facility means any facility owned by the taxpayer which is originally placed in service after October 22, 2004.

.

(3)

Effective date

The amendments made by this subsection shall apply to electricity produced and sold after December 31, 2009, in taxable years ending after such date.

(b)

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

Paragraph (4) of section 45(e) of such Code is amended by adding at the end the following new sentence: The net amount of electricity sold by any taxpayer to a regulated public utility (as defined in section 7701(a)(33)) shall be treated as sold to an unrelated person..

(c)

Allowance against alternative minimum tax

(1)

In general

Clause (iii) of section 38(c)(4)(B) of such Code (relating to specified credits) is amended by striking produced— and all that follows and inserting produced at a facility which is originally placed in service after the date of the enactment of this paragraph..

(2)

Effective date

The amendment made by paragraph (1) shall apply to taxable years beginning after the date of the enactment of this Act.

312.

Extension of energy credit

(a)

Solar energy property

Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal Revenue Code of 1986 (relating to energy credit) are each amended by striking but only with respect to periods ending before January 1, 2017.

(b)

Fuel cell property

Section 48(c)(1) of such Code (relating to qualified fuel cell property) is amended by striking subparagraph (D).

(c)

Microturbine property

Subparagraph (D) of section 48(c)(2) of the Internal Revenue Code of 1986 (relating to qualified microturbine property) is amended by striking December 31, 2016 and inserting December 31, 2020.

313.

Extension and modification of credit for clean renewable energy bonds

(a)

Extension

Section 54(m) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2009 and inserting December 31, 2020.

(b)

Increase in national limitation

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

(1)

by striking $1,200,000,000 in paragraph (1) and inserting $1,600,000,000, and

(2)

by striking $750,000,000 in paragraph (2) and inserting $1,000,000,000.

(c)

Modification of ratable principal amortization requirement

(1)

In general

Paragraph (4) of section 54(l) of such Code is amended to read as follows:

(4)

Ratable principal amortization required

A bond shall not be treated as a clean renewable energy bond unless it is part of an issue which provides for an equal amount of principal to be paid by the qualified issuer during each 12-month period that the issue is outstanding (other than the first 12-month period).

.

(2)

Technical amendment

The third sentence of section 54(e)(2) of such Code is amended by striking subsection (l)(6) and inserting subsection (l)(4).

(d)

Effective date

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

314.

Extension of credits for biodiesel and renewable diesel

(a)

In general

Sections 40A(g), 6426(c)(6), and 6427(e)(6)(B) of the Internal Revenue Code of 1986 are each amended by striking December 31, 2009 and inserting December 31, 2020.

(b)

Effective date

The amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2009.

C

American Renewable and Alternative Energy Trust Fund

321.

American Renewable and 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 American Renewable and Alternative Energy Trust Fund, consisting of such amounts as may be transferred to the American Renewable and Alternative Energy Trust Fund as provided in section 149 and the amendments made by section 113 of this Act.

(b)

Expenditures from American Renewable and Alternative Energy Trust Fund

(1)

In general

Amounts in the American Renewable and 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:

(A)

Grants to improve the commercial value of forest biomass for electric energy, useful heat, transportation fuels, and other commercial purposes, section 210 of EPAct2005, 3 percent.

(B)

Hydroelectric production incentives, section 242 of EPAct2005, 2 percent.

(C)

Oil shale, tar sands, and other strategic unconventional fuels, section 369 of EPAct2005, 3 percent.

(D)

Clean Coal Power Initiative, section 401 of EPAct2005, 7 percent.

(E)

Solar and wind technologies, section 812 of EPAct2005, 7 percent.

(F)

Renewable Energy, section 931 of EPAct2005, 20 percent.

(G)

Production incentives for cellulosic biofuels, section 942 of EPAct2005, 2.5 percent.

(H)

Coal and related technologies program, section 962 of EPAct2005, 4 percent.

(I)

Methane hydrate research, section 968 of EPAct2005, 2.5 percent.

(J)

Incentives for Innovative Technologies, section 1704 of EPAct2005, 7 percent.

(K)

Grants for production of advanced biofuels, section 207 of EISAct2007, 16 percent.

(L)

Photovoltaic demonstration program, section 607 EISAct2007, 2.5 percent.

(M)

Geothermal Energy, title VI, subtitle B of EISAct2007, 4 percent.

(N)

Marine and Hydrokinetic Renewable Energy Technologies, title VI, subtitle C of EISAct2007, 2.5 percent.

(O)

Energy storage competitiveness, section 641 of EISAct2007, 10 percent.

(P)

Smart grid technology research, development, and demonstration, section 1304 of EISAct2007, 7 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.

IV

Nuclear

401.

Streamline the regulatory process

(a)

Fast track

(1)

Public health and safety

Nothing in this subsection shall supersede, mitigate, detract from, or in anyway decrease the Nuclear Regulatory Commission’s ability to maintain the highest possible levels of public health and safety standards for nuclear facilities in the United States. No authority granted by this subsection shall be executed in a manner that jeopardizes, minimizes, reduces, or lessens public health and safety standards.

(2)

Streamlining Combined Construction and Operating License

(A)

In general

The Nuclear Regulatory Commission shall establish and implement an expedited procedure for issuing a Combined Construction and Operating License for qualified new reactors.

(B)

Qualifications

To qualify for the expedited procedure under this paragraph, an applicant shall—

(i)

apply for construction of a reactor based on a design approved by the Nuclear Regulatory Commission;

(ii)

construct the new reactor on a site where an operating nuclear power plant already exists;

(iii)

establish to the satisfaction of the Nuclear Regulatory Commission that there is broad local public support for the project;

(iv)

be an existing nuclear powerplant owner or operator with a substantial record of safe operations and be in good standing with the Nuclear Regulatory Commission;

(v)

submit a complete Combined Construction and Operating License application; and

(vi)

demonstrate sufficient financial commitment to the project and preparedness to proceed in earnest once the permit is issued, as demonstrated by—

(I)

the purchase of, or contract to purchase, long-lead materials; or

(II)

assured financing.

(C)

Expedited procedure

With respect to a license for which the applicant has satisfied the requirements of subparagraph (B) and seeks fast track consideration, the Nuclear Regulatory Commission shall follow the following procedures:

(i)

Undertake a one year expedited environmental review process.

(ii)

Commence a one year public comment period for comments on the application.

(iii)

Expedite the technical review process to that amount of time which is necessary to efficiently issue Combined Construction and Operating License permits without sacrificing any aspect of public health or safety.

(D)

Goals

The Nuclear Regulatory Commission shall present recommendations to Congress within 90 days of the date of enactment of this Act for procedures that would allow the Commission to pursue a transparent, fact-based process in a nonadversarial environment where it can make decisions based on sound science and engineering as expeditiously as practicable. These recommendations shall encompass an efficient process that allows those parties that have standing to participate in the proceedings to raise legitimate concerns to be heard and resolved without undue delay.

(3)

Nuclear Steam Supply System design certification

The Nuclear Regulatory Commission shall establish a schedule for certification of a Nuclear Steam Supply System reactor that maintains the highest levels of public health and safety. Such schedule shall seek to reduce by one half the time necessary to certify a reactor design. Such a schedule shall be presented to Congress within one year of date of enactment of this Act.

(4)

Technology neutral plant design specifications

Within one year of the date of enactment of this Act, the Nuclear Regulatory Commission shall outline to the Congress an approach that will allow the Nuclear Regulatory Commission to develop technology-neutral guidelines for nuclear plant licensing in the future that would allow for the more seamless entry of new technologies into the marketplace.

(5)

Additional funding and personnel resources

Not later than 90 days after the date of enactment of this Act, the Nuclear Regulatory Commission shall transmit to the Congress a request for such additional funding and personnel resources as are necessary to carry out paragraphs (1) through (4).

(6)

National laboratory support

Each national laboratory with expertise in the nuclear field shall, in coordination with the Nuclear Regulatory Commission, dedicate personnel to supporting either or both of the expedited design certification under paragraph (3) or the expedited licensing procedures under paragraph (2).

(7)

Educational program funds

To both support the Nation’s effort to efficiently license new nuclear power plants and build the expertise and workforce necessary to regulate and operate those plants, the Nuclear Regulatory Commission and the Department of Energy shall direct educational funding to programs to enhance or directly support the activities authorized by this subsection.

(b)

National policy goal

It is the policy goal of the United States to license 100 new nuclear reactors, or the megawatt equivalent, by 2030, if there are a sufficient number of applicants.

(c)

Mandatory Hearings for Uncontested License Applicants

(1)

Sections 189A(1)(A) of the Atomic Energy Act of 1954 is modified thus:

(A)

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)

Section 185b of the Atomic Energy Act of 1954 is modified thus:

b.

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).

.

402.

Increase the supply of uranium

(a)

Supply Disruption Mitigation Reserve

The Secretary of Energy shall create a uranium supply-disruption mitigation reserve. The Energy Department shall undergo an audit to account for all unused materials in its system that could be used to power commercial nuclear reactors. Once accounted for, some portion, or all, of this resource shall be allocated to be a temporary reserve of reactor fuel to protect against a foreign supplier attempt to deny American energy producers access to uranium fuel.

(b)

Findings

The Congress finds the following:

(1)

It is necessary to preserve access to domestic uranium reserves and resources in order to meet the United States demand for clean noncarbon emitting energy. Doing so will contribute to the Nation’s effort to seek energy independence and enhance our national and economic security.

(2)

United States utilities currently use approximately 56,000,000 pounds of uranium each year. Meanwhile, total United States uranium production is only approximately 3,000,000 to 4,000,000 pounds each year, or less than 10 percent of the Nation’s annual need.

(3)

To meet the United States demand for uranium, the United States imports uranium from Russia, Canada, Australia, and Kazakhstan. In 2004, nearly 50 percent of imported uranium came from Russia.

(4)

American industry can easily produce 20,000,000 to 30,000,000 pounds of uranium each year from domestic resources.

(5)

To produce those resources we must preserve access to the Nation’s uranium reserves and resources found within the northern Arizona strip, Northwestern New Mexico, Wyoming, and other parts of the United States.

(6)

The Arizona strip region, located in the Utah-Arizona border region, is estimated to contain a resource endowment of 375,000,000 pounds of uranium oxide (United States Geological Survey Circular 1051), making it the second most important uranium region in the United States after to Wyoming. The energy potential of this quantity of uranium rivals the energy equivalence of the total recoverable oil discovered at Prudhoe Bay Alaska, the largest oil field in North America. This quantity of uranium comprises over 40 percent of the Nation’s estimated uranium resource endowment, and Arizona Strip area uranium is by far the highest grade uranium nationally. Development of these resources would promote energy independence and protect our national security.

(7)

Development of these resources would prevent the United States from being over reliant on less stable foreign sources of uranium.

(8)

The importance of developing these resources is crucial as the rest of the world is embracing nuclear power, including China, India, Russia, Europe, the Middle East, Japan, and Korea, resulting in a exponential demand for known and undiscovered uranium resources.

(c)

Uranium policy summit

(1)

In general

The Secretary of the Interior, working with the Secretary of Energy, shall convene a national summit on uranium by no later than 180 days after the date of the enactment of this Act, to produce a report for Congress by no later than 1 year after the date of the enactment of this Act that includes an assessment of the Nation’s uranium resources and provides policy recommendations to ensure access to these resources for private sector development in an environmentally responsible manner. A principle policy objective of the summit and report shall be to domestically produce enough uranium to meet 30 percent of our national uranium demand by 2030.

(2)

Participants

The national summit on uranium shall include—

(A)

representatives from mining, enrichment, utility, and disposal sectors of the uranium industry; and

(B)

experts in hydrology, geology, mine reclamation, and safety.

403.

Recycle and safely store spent nuclear fuel

(a)

High-level nuclear waste repository

(1)

The Federal Government remains obliged to construct and operate at least one high-level nuclear materials geologic repository for the disposal of spent nuclear fuel and high-level radioactive waste.

(2)

The high-level nuclear waste repository site at Yucca Mountain shall remain the site for the Nation’s nuclear waste repository unless it is deemed technologically or scientifically unsuitable by the Nuclear Regulatory Commission following full statutory review of the Department of Energy’s license application to construct the Yucca Mountain repository.

(3)

The Nuclear Regulatory Commission shall continue to review the Department of Energy’s pending license application to construct the nuclear waste repository at Yucca Mountain until a determination is made on the merits of the application.

(4)

In addition to pursuing approval of the license application referenced in paragraph (3), the Secretary shall undertake the following activities:

(A)

Seeking all other necessary regulatory approvals and permits to construct and operate the Yucca Mountain repository.

(B)

Conducting all necessary design and engineering work to support construction of the repository.

(C)

Undertaking all infrastructure activities necessary to support the construction or operation of the repository or transportation to the site of spent nuclear fuel and high-level radioactive waste. Infrastructure activities include, but are not limited to, safety upgrades; site preparation; the construction of a rail line to connect the Yucca Mountain site with the national rail network, including any facilities to facilitate rail operations; and construction, upgrade, acquisition, or operation of electrical grids or facilities, other utilities, communication facilities, access roads, rail lines, and nonnuclear support facilities.

(5)

All statutory limitations on the amount of spent fuel that can be placed in Yucca Mountain shall be removed and replaced with new limits based on scientific and technical analysis of the full capacity of Yucca Mountain for the storage of spent nuclear fuel and high-level radioactive waste.

(b)

Temporary nuclear fuel storage facilities

The Secretary of the Interior shall grant all necessary rights of way and land use authorizations needed for a nuclear fuel storage facility if the State and locality in which such facility is located reach an agreement with a private entity. The Federal Government shall take title of the contents of any such facility upon closure or decommissioning.

(c)

Recycling

(1)

Amendment

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

(A)

in subsection (d), by striking The Secretary may and inserting Except as provided in subsection (f), the Secretary may; and

(B)

by adding at the end the following new subsection:

(f)

Recycling

(1)

In general

Amounts in the Waste Fund shall be used by the Secretary of Energy to make grants to or enter into long-term contracts with private sector entities for the recycling of spent nuclear fuel.

(2)

Competitive selection

Grants and contracts authorized under paragraph (1) shall be awarded on the basis a competitive bidding process that—

(A)

maximizes the competitive efficiency of the projects funded;

(B)

best serves the goal of reducing the amount of waste requiring disposal under this Act; and

(C)

ensures adequate protection against the proliferation of nuclear materials that could be used in the manufacture of nuclear weapons.

.

(2)

Prohibition

The Administration is prohibited from blocking or hindering spent nuclear fuel recycling activities.

(3)

Rulemaking for licensing of spent nuclear fuel recycling facilities

(A)

Requirement

The Nuclear Regulatory Commission shall, as expeditiously as possible, but in no event later than 2 years after the date of enactment of this Act, complete a rulemaking establishing a process for the licensing by the Nuclear Regulatory Commission, under the Atomic Energy Act of 1954, of facilities for the recycling of spent nuclear fuel.

(B)

Funding

Amounts in the Nuclear Waste Fund established under section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) shall be made available to the Nuclear Regulatory Commission to cover the costs of carrying out subparagraph (A) of this paragraph.

404.

Confidence in availability of waste disposal

Notwithstanding any other provision of law, in deciding whether to permit the construction or operation of a nuclear reactor or any related facilities, the Nuclear Regulatory Commission shall deem, without further consideration, that sufficient capacity will be available in a timely manner to dispose of spent nuclear fuel and high level radioactive waste resulting from the operation of the reactor and any related facilities.

405.

Preferential treatment for certain nuclear reactors and related articles

(a)

In general

The President shall proclaim duty-free treatment or other preferential treatment for any article described in subsection (b) that is imported directly into the customs territory of the United States if the President determines, after obtaining advice from the International Trade Commission, that there is no domestic production of such article.

(b)

Article described

An article described in this subsection is any article provided for in heading 8401 or 9902.84 of the Harmonized Tariff Schedule of the United States (relating to nuclear reactors; fuel elements (cartridges), non-irradiated, for nuclear reactors; machinery and apparatus for isotopic separation; parts thereof).

(c)

Withdrawal, suspension, or limitation of preferential treatment

The President may withdraw, suspend, or limit the application of duty-free treatment or other preferential treatment under this section for any article described in subsection (b) with respect to which duty-free treatment has been proclaimed under subsection (a).

(d)

Termination of preferential treatment

No duty-free treatment or other preferential treatment extended under this section shall remain in effect after 5 years.

406.

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;

(2)

advise, inform, and make recommendations to the Secretary of Energy with respect to any matter relating to nuclear energy;

(3)

help nuclear energy related investors to navigate the Federal bureaucracy to efficiently bring their products and services to the marketplace; and

(4)

not participate in any research and development or commercialization activities.

(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.

407.

Expansion of energy investment tax credit to include nuclear and clean-coal equipment

(a)

In general

Clause (i) of section 48C(c)((1)(A) of the Internal Revenue Code of 1986 is amended by striking or at the end of subclause (VI), by striking and at the end of subclause (VII), by inserting after subclause (VII) the following new subclauses:

(VIII)

property designed to be used to produce energy from an advanced nuclear power facility (as defined in section 45J(d)), or

(IX)

property designed to be used to produce energy from clean-coal equipment, and

.

(b)

Denial of double benefit

Subsection (e) of section 48C of such Code is amended by inserting 45J, before 48,.

(c)

Effective date

The amendment made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act.

V

Environmental Review; Greenhouse Gases

501.

Environmental review for renewable energy projects

(a)

Compliance with NEPA for renewable energy projects

Notwithstanding any other law, in preparing an environmental assessment or environmental impact statement required under section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332) with respect to any action authorizing a renewable energy project under the jurisdiction of a Federal agency—

(1)

no Federal agency is required to identify alternative project locations or actions other than the proposed action and the no action alternative; and

(2)

no Federal agency is required to analyze the environmental effects of alternative locations or actions other than those submitted by the project proponent.

(b)

Consideration of alternatives

In any environmental assessment or environmental impact statement referred to in subsection (a), the Federal agency shall only identify and analyze the environmental effects and potential mitigation measures of—

(1)

the proposed action; and

(2)

the no action alternative.

(c)

Public comment

In preparing an environmental assessment or environmental impact statement referred to in subsection (a), the Federal agency shall only consider public comments that specifically address the preferred action and that are filed within 20 days after publication of a draft environmental assessment or draft environmental impact statement. Notwithstanding any other law, compliance with this subsection is deemed to satisfy section 102(2) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)) and the applicable regulations and administrative guidelines with respect to proposed renewable energy projects.

(d)

Renewable energy project defined

For purposes of this section, the term renewable energy project

(1)

means any proposal to utilize an energy source other than coal, oil, or natural gas; and

(2)

includes the use of nuclear, wind, solar, geothermal, biomass, hydro (including large, small-scale, and low head conventional hydro), or tidal forces to generate energy.

502.

Greenhouse gas regulation under Clean Air Act

(a)

In general

Section 302(g) of the Clean Air Act (42 U.S.C. 7602(g)) is amended by adding the following at the end thereof: The term air pollutant shall not include carbon dioxide, water vapor, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride. .

(b)

Climate change not regulated by Clean Air Act

Nothing in the Clean Air Act shall be treated as authorizing or requiring the regulation of climate change or global warming.

503.

Prohibition of consideration of impact of greenhouse gas

(a)

In general

The Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) is amended by adding at the end the following new section:

19.

Prohibition of consideration of impact of greenhouse gas

(a)

Definition of Greenhouse

In this section, the term greenhouse gas means any of—

(1)

carbon dioxide;

(2)

methane;

(3)

nitrous oxide;

(4)

sulfur hexafluoride;

(5)

a hydrofluorocarbon;

(6)

a perfluorocarbon; or

(7)

any other anthropogenic gas designated by the Secretary for purposes of this section.

(b)

Impact of Greenhouse Gas

The impact of greenhouse gas on any species of fish or wildlife or plant shall not be considered for any purpose in the implementation of this Act.

.

(b)

Conforming amendment

The table of contents in the first section of the Endangered Species Act of 1973 (16 U.S.C. prec. 1531) is amended by adding at the end the following new items:

Sec. 18. Annual cost analysis by the Fish and Wildlife Service.

Sec. 19. Prohibition of consideration of impact of greenhouse gas.

.

VI

Legal Reform

601.

Findings

Congress finds that—

(1)

the United States spends over $1 billion per day to import crude oil from foreign countries;

(2)

such expenditure represents the largest wealth transfer in history;

(3)

the United States has at least 86 billion barrels of oil and 420 trillion cubic feet of natural gas in the outer Continental Shelf;

(4)

environmental groups have legally challenged every lease in the Alaskan Outer Continental Shelf in the Chukchi and Beaufort Seas;

(5)

environmental groups have legally challenged the entire 2007–2012 5-year national outer Continental Shelf leasing program;

(6)

such legal challenges significantly delay or ultimately prevent energy resources from reaching the American public;

(7)

these legal challenges come at a high cost to the American public and the American economy; and

(8)

Congress finds that expedited judicial review is necessary to prevent this gross abuse of the United States judicial system.

602.

Exclusive jurisdiction over causes and claims relating to covered energy projects

Notwithstanding any other provision of law, the United States District Court for the District of Columbia shall have exclusive jurisdiction to hear all causes and claims under this title or any other Act that arise from any covered energy project.

603.

Time for filing complaint

All causes and claims referred to in section 602 must be filed not later than the end of the 60-day period beginning on the date of the action or decision by a Federal official that constitutes the covered energy project concerned. Any cause or claim not filed within that time period shall be barred.

604.

District court for the District of Columbia deadline

(a)

In general

All proceedings that are subject to section 602—

(1)

shall be resolved as expeditiously as possible, and in any event not more than 180 days after such cause or claim is filed; and

(2)

shall take precedence over all other pending matters before the district court.

(b)

Failure To comply with deadline

If an interlocutory or final judgment, decree, or order has not been issued by the district court by the deadline described under this section, the cause or claim shall be dismissed with prejudice and all rights relating to such cause or claim shall be terminated.

605.

Ability to seek appellate review

An interlocutory or final judgment, decree, or order of the district court may be reviewed by no other court except the Supreme Court.

606.

Deadline for appeal to the Supreme Court

If a writ of certiorari has been granted by the Supreme Court pursuant to section 605, then—

(1)

the interlocutory or final judgment, decree, or order of the district court shall be resolved as expeditiously as possible and in any event not more than 180 days after such interlocutory or final judgment, decree, order of the district court is issued; and

(2)

all such proceedings shall take precedence over all other matters then before the Supreme Court.

607.

Limitation on scope of review and relief

(a)

Administrative Findings and Conclusions

In any judicial review of any Federal action under this Act, any administrative findings and conclusions relating to the challenged Federal action shall be presumed to be correct unless shown otherwise by clear and convincing evidence contained in the administrative record.

(b)

Limitation on Prospective Relief

In any judicial review of any action, or failure to act, under this Act, the Court shall not grant or approve any prospective relief unless the Court finds that such relief is narrowly drawn, extends no further than necessary to correct the violation of a Federal law requirement, and is the least intrusive means necessary to correct the violation concerned.

608.

Legal fees

Any person filing a petition seeking judicial review of any action, or failure to act, under this Act who is not a prevailing party shall pay to the prevailing parties (including intervening parties), other than the United States, fees and other expenses incurred by that party in connection with the judicial review, unless the Court finds that the position of the person was substantially justified or that special circumstances make an award unjust.

609.

Exclusion

This title shall not apply with respect to disputes between the parties to a lease issued pursuant to an authorizing leasing statute regarding the obligations of such lease or the alleged breach thereof.

610.

Covered energy project defined

In this title, the term covered energy project means any action or decision by a Federal official regarding—

(1)

the leasing of Federal lands (including submerged lands) for the exploration, development, production, processing, or transmission of oil, natural gas, or any other source or form of energy, including actions and decisions regarding the selection or offering of Federal lands for such leasing; or

(2)

any action under such a lease.