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HR 6001 IH

110th CONGRESS

2d Session

H. R. 6001

To rebalance the United States energy portfolio, to increase and utilize the Nation's domestic energy resources and supply, to strengthen energy security and independence, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

May 8, 2008

Mr. BUYER (for himself, Mr. COLE of Oklahoma, Mr. GRAVES, Mr. PICKERING, Mr. HAYES, Mr. SHIMKUS, Mr. PENCE, Mr. BURTON of Indiana, Mr. KLINE of Minnesota, Mrs. BLACKBURN, Mr. WAMP, Mr. YOUNG of Alaska, Mr. HOEKSTRA, Mr. SHUSTER, Mr. MCHENRY, Mr. BARRETT of South Carolina, Mr. SOUDER, and Mr. SHADEGG) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on Energy and Commerce, Ways and Means, Armed Services, 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 rebalance the United States energy portfolio, to increase and utilize the Nation's domestic energy resources and supply, to strengthen energy security and independence, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) Short Title- This Act may be cited as the `Main Street U.S.A. Energy Security Act of 2008'.

    (b) Table of Contents- The table of contents for this Act is as follows:

      Sec. 1. Short title.

TITLE I--INCREASE OUR ENERGY CAPACITY

Subtitle A--Refineries

      Sec. 101. Short title.

      Sec. 102. Definitions.

      Sec. 103. State assistance.

      Sec. 104. Refinery process coordination and procedures.

      Sec. 105. Designation of closed military bases.

      Sec. 106. Savings clause.

      Sec. 107. Refinery revitalization repeal.

Subtitle B--Oil and Gas Development on the Coastal Plain of Alaska

      Sec. 121 Definitions.

      Sec. 122. Leasing program for lands within the Coastal Plain.

      Sec. 123. Lease sales.

      Sec. 124. Grant of leases by the Secretary.

      Sec. 125. Lease terms and conditions.

      Sec. 126. Coastal plain environmental protection.

      Sec. 127. Expedited judicial review.

      Sec. 128. Federal and State distribution of revenues.

      Sec. 129. Rights-of-way across the Coastal Plain.

      Sec. 130. Conveyance.

      Sec. 131. Local government impact aid and community service assistance.

Subtitle C--Opening of Outer Continental Shelf

      Sec. 141. Short title.

      Sec. 142. Policy.

      Sec. 143. Definitions under the Outer Continental Shelf Lands Act.

      Sec. 144. Determination of Adjacent Zones and planning areas.

      Sec. 145. Administration of leasing.

      Sec. 146. Grant of leases by Secretary.

      Sec. 147. Disposition of receipts.

      Sec. 148. Reservation of lands and rights.

      Sec. 149. Outer Continental Shelf Leasing Program.

      Sec. 150. Coordination with Adjacent States.

      Sec. 151. Environmental studies.

      Sec. 152. Federal Energy Natural Resources Enhancement Act of 2008.

      Sec. 153. Termination of effect of laws prohibiting the spending of appropriated funds for certain purposes.

      Sec. 154. Outer Continental Shelf incompatible use.

      Sec. 155. Repurchase of certain leases.

      Sec. 156. Offsite environmental mitigation.

      Sec. 157. Minerals Management Service.

      Sec. 158. Authority to use decommissioned offshore oil and gas platforms and other facilities for artificial reef, scientific research, or other uses.

      Sec. 159. Repeal of requirement to conduct comprehensive inventory of OCS oil and natural gas resources.

      Sec. 160. Mining and petroleum schools.

      Sec. 161. Onshore and offshore mineral lease fees.

      Sec. 162. OCS regional headquarters.

      Sec. 163. National Geo Fund Act of 2008.

      Sec. 164. Leases for areas located within 100 miles of California or Florida.

      Sec. 165. Coastal impact assistance.

      Sec. 166. Oil shale and tar sands amendments.

      Sec. 167. Availability of OCS receipts to provide payments under Secure Rural Schools and Community Self-Determination Act of 2000.

      Sec. 168. Sense of the Congress to buy and build American.

Subtitle D--Nuclear

      Sec. 181. Incentives for innovative technologies.

      Sec. 182. Authorization for Nuclear Power 2010 Program.

      Sec. 183. Domestic manufacturing base for nuclear components and equipment.

      Sec. 184. Nuclear energy workforce.

      Sec. 185. National Nuclear Energy Council.

      Sec. 186. Nuclear waste management.

TITLE II--INCREASE OUR UTILIZATION EFFICIENCY

Subtitle A--Coal to Liquids

      Sec. 201. Location of coal-to-liquid manufacturing facilities.

      Sec. 202. Authorization to conduct research, development, testing, and evaluation of assured domestic fuels.

      Sec. 203. Coal-to-liquid long-term fuel procurement and Department of Defense development.

Subtitle B--Energy Tax Provisions

      Sec. 211. Short title; amendment of 1986 Code.

Part 1--Production Incentives

      Sec. 221. Extension and modification of renewable energy credit.

      Sec. 222. Production credit for electricity produced from marine renewables.

      Sec. 223. Extension of electricity production tax credit to electricity produced from the production of substitute natural gas from refined coal or petcoke.

      Sec. 224. Extension and modification of energy credit.

      Sec. 225. New clean renewable energy bonds.

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

      Sec. 227. Extension and modification of credit for residential energy efficient property.

Part 2--Transportation Conservation Incentives

subpart a--vehicles

      Sec. 231. Credit for plug-in hybrid vehicles.

      Sec. 232. Extension and modification of alternative fuel vehicle refueling property credit.

      Sec. 233. Modification of limitation on automobile depreciation.

subpart b--fuels

      Sec. 241. Extension and modification of credits for biodiesel and renewable diesel.

      Sec. 242. Clarification that credits for fuel are designed to provide an incentive for United States production.

      Sec. 243. Credit for production of cellulosic alcohol.

      Sec. 244. Extension for credit for alternative fuels and mixtures derived from coal (including peat) through the Fischer-Tropsch process.

Part 3--Other Conservation Provisions

      Sec. 251. Qualified energy conservation bonds.

      Sec. 252. Extension and modification of credit for nonbusiness energy property.

      Sec. 253. Extension of energy efficient commercial buildings deduction.

      Sec. 254. Modifications of energy efficient appliance credit for appliances produced after 2007.

      Sec. 255. Five-year applicable recovery period for depreciation of qualified energy management devices.

      Sec. 256. Clarification of eligibility for certain fuels credits for fuel with insufficient nexus to the United States.

TITLE III--RESEARCH AND DEVELOPMENT

      Sec. 301. Blended fuels.

      Sec. 302. Cellulosic Ethanol.

TITLE I--INCREASE OUR ENERGY CAPACITY

Subtitle A--Refineries

SEC. 101. SHORT TITLE.

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

SEC. 102. 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 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.

SEC. 103. STATE ASSISTANCE.

    (a) State Assistance- At the request of a governor of a State, the Administrator is authorized to provide financial assistance to that State to facilitate the hiring of additional personnel to assist the State with expertise in fields relevant to consideration of Federal refinery authorizations.

    (b) Other Assistance- At the request of a governor of a State, a Federal agency responsible for a Federal refinery authorization shall provide technical, legal, or other nonfinancial assistance to that State to facilitate its consideration of Federal refinery authorizations.

SEC. 104. 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.

SEC. 105. 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.

SEC. 106. 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.

SEC. 107. 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.

Subtitle B--Oil and Gas Development on the Coastal Plain of Alaska

SEC. 121 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.

SEC. 122. 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.

SEC. 123. 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; and

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

SEC. 124. 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 123 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.

SEC. 125. LEASE TERMS AND CONDITIONS.

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

      (1) provide for the payment of a royalty of not less than 12 1/2 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) 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;

      (3) 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;

      (4) 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;

      (5) include requirements and restrictions to provide for reasonable protection of fish and wildlife, their habitat, subsistence resources, and the environment as determined by the Secretary;

      (6) prohibit the export of oil produced under the lease; and

      (7) 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.

SEC. 126. 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 122, 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) 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.

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

      (5) 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.

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

      (7) Appropriate prohibitions or restrictions on sand and gravel extraction.

      (8) Consolidation of facility siting.

      (9) Appropriate prohibitions or restrictions on use of explosives.

      (10) 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.

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

      (12) 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.

      (13) Fuel storage and oil spill contingency planning.

      (14) Research, monitoring, and reporting requirements.

      (15) Field crew environmental briefings.

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

      (17) Compliance with applicable air and water quality standards.

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

      (19) Reasonable stipulations for protection of cultural and archeological resources.

      (20) 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.

SEC. 127. 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 90-day period beginning on the date of the action being challenged; or

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

      (2) VENUE- Any complaint seeking judicial review of any provision of this subtitle or any action of the Secretary under this subtitle may be filed only in the United States Court of Appeals for the District of Columbia.

      (3) LIMITATION ON SCOPE OF CERTAIN REVIEW- Judicial review of a Secretarial decision to conduct a lease sale under this 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.

SEC. 128. 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) 25 percent shall be paid to the State of Alaska; and

      (2) except as otherwise provided by this Act, the balance shall be deposited into the Treasury as miscellaneous receipts.

    (b) Payments to Alaska- Payments to the State of Alaska under this section shall be made semiannually.

SEC. 129. 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 122(g) provisions granting rights-of-way and easements described in subsection (a) of this section.

SEC. 130. 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.

SEC. 131. 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 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.

Subtitle C--Opening of Outer Continental Shelf

SEC. 141. SHORT TITLE.

    This subtitle may be cited as the `Deep Ocean Energy Resources Act of 2008'.

SEC. 142. POLICY.

    It is the policy of the United States that--

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

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

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

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

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

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

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

SEC. 143. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.

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

      (1) by amending paragraph (f) to read as follows:

    `(f) The term `affected State' means the Adjacent State.';

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

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

      (4) by adding at the end the following:

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

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

    `(t) The term `miles' means statute miles.

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

    `(v) The term `Neighboring State' means a coastal State having a common boundary at the coastline with the Adjacent State.'; and

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

SEC. 144. 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.'.

SEC. 145. ADMINISTRATION OF LEASING.

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

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

    `(l) Natural Gas Lease Regulations- Not later than July 1, 2009, the Secretary shall publish a final regulation that shall--

      `(1) establish procedures for entering into natural gas leases;

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

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

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

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

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

SEC. 146. GRANT OF LEASES BY SECRETARY.

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

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

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

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

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

      `(B) The Secretary shall provide for the payment to coastal states, and their local coastal governments, of 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 2008 that provides for equitable distribution, based on proximity to the project, among coastal states that have coastline that is located within 200 miles of the geographic center of the project.';

      (4) by adding at the end the following:

    `(q) Natural Gas Leases-

      `(1) RIGHT TO PRODUCE NATURAL GAS- A lessee of a natural gas lease shall have the right to produce the natural gas from a field on a natural gas leased tract if the Secretary estimates that the discovered field has at least 40 percent of the economically recoverable Btu content of the field contained within natural gas and such natural gas is economical to produce.

      `(2) CRUDE OIL- A lessee of a natural gas lease may not produce crude oil from the lease.

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

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

    `(r) Removal of Restrictions on Joint Bidding in Certain Areas of the Outer Continental Shelf- Restrictions on joint bidders shall no longer apply to tracts located in the Alaska OCS Region. Such restrictions shall not apply to tracts in other OCS regions determined to be `frontier tracts' or otherwise `high cost tracts' under final regulations that shall be published by the Secretary by not later than 365 days after the date of the enactment of the Deep Ocean Energy Resources Act of 2008.

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

    `(t) Conservation of Resources Fees-

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

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

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

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

      (7) effective October 1, 2008, in subsection (g)--

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

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

        (C) by striking `(3)'.

SEC. 147. 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, 2008, 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 are available for leasing under the 2002-2007 5-Year Oil and Gas Leasing Program in effect prior to the date of the enactment of the Deep Ocean Energy Resources Act of 2008.

          `(ii) Lease tracts in production prior to October 1, 2008, completely beyond 4 marine leagues from any coastline and completely within 100 miles of any 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 in effect prior to the date of the enactment of the Deep Ocean Energy Resources Act of 2008.

          `(iii) Lease tracts for which leases are issued prior to October 1, 2008, located in the Alaska OCS Region completely beyond 4 marine leagues from any coastline and completely within 100 miles of the 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 2009, 4.6 percent.

          `(ii) For fiscal year 2010, 5.95 percent.

          `(iii) For fiscal year 2011, 6.8 percent.

          `(iv) For fiscal year 2012, 7.65 percent.

          `(v) For fiscal year 2013, 10.20 percent.

          `(vi) For fiscal year 2014, 12.75 percent.

          `(vii) For fiscal year 2015, 15.30 percent.

          `(viii) For fiscal year 2016, 17.85 percent.

          `(ix) For fiscal year 2017, 20.40 percent.

          `(x) For fiscal year 2018, 22.95 percent.

          `(xi) For fiscal year 2019, 25.50 percent.

          `(xii) For fiscal year 2020, 28.05 percent.

          `(xiii) For fiscal year 2021, 30.60 percent.

          `(xiv) For fiscal year 2022, 33.15 percent.

          `(xv) For fiscal year 2023 35.70 percent.

          `(xvi) For fiscal year 2024 and each subsequent fiscalyear, 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 146(2) of the Deep Ocean Energy Resources Act of 2008.

      `(3) IMMEDIATE RECEIPTS SHARING- Beginning October 1, 2008, the Secretary shall share 37.5 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).

      `(4) RECEIPTS SHARING FROM TRACTS WITHIN 4 MARINE LEAGUES OF ANY COASTLINE-

        `(A) AREAS DESCRIBED IN PARAGRAPH (2)-

          `(i) Beginning October 1, 2008, and continuing through September 30, 2013, 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, 2013, 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 37.5 percent.

          `(ii) During fiscal year 2018, the Secretary shall conduct an analysis of all of the areas described in paragraph (3) and subsection (c)(3) to determine the total of OCS Receipts derived from such areas during the period of fiscal year 2009 through fiscal year 2018. The Secretary shall subtract the amount of $4 billion from the total of such OCS Receipts. If the result is a positive number, the Secretary shall divide such positive number by $4 billion. The resulting quotient, not to exceed 0.5, shall then be multiplied times 25. The product of such multiplication shall be added to 37.5 and the sum shall be the percent that the Secretary shall share for fiscal year 2019 and all future years from OCS Receipts derived from all leases located within 4 marine leagues from any coastline within areas described in paragraph (2), unless increased by the provisions of (iii).

          `(iii) Beginning October 1, 2019, the Secretary shall share, in addition to the share established by (i), as modified by (ii) if any, amounts determined as follows, with the total of the amounts shared under this paragraph not to exceed in any fiscal year an amount equal to 63.75 percent of total OCS Receipts derived from all leases located within 4 marine leagues from any coastline within areas described in paragraph (2)--25 percent of the total of OCS Receipts derived from areas described in paragraph (3) and subsection (c)(3) that exceed the following amounts for the fiscal year indicated: for fiscal year 2019 the amount of $900,000,000 and for each fiscal year thereafter add $100,000,000. Amounts added under this clause to be shared, if any, for any fiscal year shall be added to the sharing base for all subsequent years and shall be allocated among State Adjacent Zones on a basis proportional to the result from the calculation in clause (i).

        `(B) AREAS NOT DESCRIBED IN PARAGRAPH (2)- Beginning October 1, 2008, the Secretary shall share 63.75 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 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, 2008, 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 Oil and Gas Leasing Program in effect prior to the date of enactment of the Deep Ocean Energy Resources Act of 2008.

          `(ii) Lease tracts in production prior to October 1, 2008, partially or completely beyond 100 miles of any coastline located on portions of the OCS that were not available for leasing under the 2007-2012 5-Year OCS Oil and Gas Leasing Program in effect prior to the date of enactment of the Deep Ocean Energy Resources Act of 2008.

          `(iii) Lease tracts for which leases are issued prior to October 1, 2008, 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 2009, 4.6 percent.

          `(ii) For fiscal year 2010, 5.95 percent.

          `(iii) For fiscal year 2011, 6.80 percent.

          `(iv) For fiscal year 2012, 7.65 percent.

          `(v) For fiscal year 2013, 10.20 percent.

          `(vi) For fiscal year 2014, 12.75 percent.

          `(vii) For fiscal year 2015, 15.30 percent.

          `(viii) For fiscal year 2016, 17.85 percent.

          `(ix) For fiscal year 2017, 20.40 percent.

          `(x) For fiscal year 2018, 22.95 percent.

          `(xi) For fiscal year 2019, 25.50 percent.

          `(xii) For fiscal year 2020, 28.05 percent.

          `(xiii) For fiscal year 2021, 30.60 percent.

          `(xiv) For fiscal year 2022, 33.15 percent.

          `(xv) For fiscal year 2023, 35.70 percent.

          `(xvi) For fiscal year 2024 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 146(2) of the Deep Ocean Energy Resources Act of 2008.

      `(3) IMMEDIATE RECEIPTS SHARING- Beginning October 1, 2008, the Secretary shall share 37.5 percent of OCS Receipts derived on and after October 1, 2008, 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, 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.'.

SEC. 148. RESERVATION OF LANDS AND RIGHTS.

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

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

      (2) by adding at the end the following:

    `(g) Availability for Leasing Within Certain Areas of the Outer Continental Shelf-

      `(1) PROHIBITION AGAINST LEASING-

        `(A) UNAVAILABLE FOR LEASING WITHOUT STATE REQUEST- Except as otherwise provided in this subsection, from and after enactment of the Deep Ocean Energy Resources Act of 2008, the Secretary shall not offer for leasing for oil and gas, or natural gas, any area within 50 miles of the coastline that was withdrawn from disposition by leasing in the Atlantic OCS Region or the Pacific OCS Region, or the Gulf of Mexico OCS Region Eastern Planning Area, as depicted on the maps referred to in this subparagraph, under the `Memorandum on Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, or any area within 50 miles of the coastline not withdrawn under that Memorandum that is included within the Gulf of Mexico OCS Region Eastern Planning Area as indicated on the map entitled `Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas' or the Florida Straits Planning Area as indicated on the map entitled `Atlantic OCS Region State Adjacent Zones and OCS Planning Areas', both of which are dated September 2005 and on file in the Office of the Director, Minerals Management Service.

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

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

      `(3) PETITION FOR LEASING-

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

        `(B) LIMITATIONS ON LEASING- In its petition, a State with an Adjacent Zone that contains leased tracts may condition new leasing for oil and gas, or natural gas for tracts within 25 miles of the coastline by--

          `(i) requiring a net reduction in the number of production platforms;

          `(ii) requiring a net increase in the average distance of production platforms from the coastline;

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

          `(iv) limiting some tracts to being produced from shore or from platforms located on other tracts; or

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

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

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

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

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

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

    `(j) Prohibition on Leasing East of the Military Mission Line-

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

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

SEC. 149. OUTER CONTINENTAL SHELF LEASING PROGRAM.

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

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

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

    `(c)(1) During the preparation of any proposed leasing program under this section, the Secretary shall consider and analyze leasing throughout the entire Outer Continental Shelf without regard to any other law affecting such leasing. During this preparation the Secretary shall invite and consider suggestions from any interested Federal agency, including the Attorney General, in consultation with the Federal Trade Commission, and from the Governor of any coastal State. The Secretary may also invite or consider any suggestions from the executive of any local government in a coastal State that have been previously submitted to the Governor of such State, and from any other person. Further, the Secretary shall consult with the Secretary of Defense regarding military operational needs in the outer Continental Shelf. The Secretary shall work with the Secretary of Defense to resolve any conflicts that might arise regarding offering any area of the outer Continental Shelf for oil and gas or natural gas leasing. If the Secretaries are not able to resolve all such conflicts, any unresolved issues shall be elevated to the President for resolution.

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