HR 6009 IHCommentsClose CommentsPermalink

To leverage market forces to bring greater efficiency and capacity to domestic refineries, to bring new sources of domestic energy to market, and for other purposes.CommentsClose CommentsPermalink

May 8, 2008

Mr. ENGLISH of Pennsylvania (for himself and Mr. ALEXANDER) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on Energy and Commerce, the Judiciary, Ways and Means, and Foreign Affairs, 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 concernedCommentsClose CommentsPermalink

To leverage market forces to bring greater efficiency and capacity to domestic refineries, to bring new sources of domestic energy to market, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Affordable Fuel for Consumers Act of 2008'.CommentsClose CommentsPermalink





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





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--GENERAL PROVISIONS

Sec. 101. Sense of Congress.CommentsClose CommentsPermalink





Sec. 102. Cap and reduction of boutique fuels.CommentsClose CommentsPermalink





Sec. 103. Antitrust prohibition of certain conduct by oil producing cartels.CommentsClose CommentsPermalink





Sec. 104. Report to Congress on energy bottlenecks and barriers.CommentsClose CommentsPermalink

TITLE II--TAX PROVISIONS

Sec. 201. 60-day suspension of fuel taxes on highway motor fuels.CommentsClose CommentsPermalink





Sec. 202. Temporary expensing of oil and natural gas exploration and production property.CommentsClose CommentsPermalink





Sec. 203. Incentives for extraction and processing of oil shale.CommentsClose CommentsPermalink

TITLE III--OIL AND GAS DRILLING

Subtitle A--Arctic National Wildlife Refuge

Sec. 301. Definitions.CommentsClose CommentsPermalink





Sec. 302. Leasing program for lands within the Coastal Plain.CommentsClose CommentsPermalink





Sec. 303. Lease sales.CommentsClose CommentsPermalink





Sec. 304. Grant of leases by the Secretary.CommentsClose CommentsPermalink





Sec. 305. Lease terms and conditions.CommentsClose CommentsPermalink





Sec. 306. Coastal Plain environmental protection.CommentsClose CommentsPermalink





Sec. 307. Expedited judicial review.CommentsClose CommentsPermalink





Sec. 308. Federal and State distribution of revenues.CommentsClose CommentsPermalink





Sec. 309. Rights-of-way across the Coastal Plain.CommentsClose CommentsPermalink





Sec. 310. Conveyance.CommentsClose CommentsPermalink





Sec. 311. Local government impact aid and community service assistance.CommentsClose CommentsPermalink

Subtitle B--Off Shore Drilling for Oil and Gas

Sec. 321. Termination of prohibitions on expenditures for, and withdrawals from, offshore leasing.CommentsClose CommentsPermalink





Sec. 322. Outer Continental Shelf leasing program.CommentsClose CommentsPermalink





Sec. 323. Sharing of revenues.CommentsClose CommentsPermalink

Subtitle C--Prohibition on Exportation of Alaskan North Slope Crude Oil

Sec. 331. Prohibition on exportation of Alaskan North Slope crude oil.CommentsClose CommentsPermalink

TITLE I--GENERAL PROVISIONS

SEC. 101. SENSE OF CONGRESS.

It is the sense of the Congress that the President should stop filling the Strategic Petroleum Reserve until the price of petroleum no longer has a major adverse impact on the national economy.CommentsClose CommentsPermalink

SEC. 102. CAP AND REDUCTION OF BOUTIQUE FUELS.

(a) EPA Approval of State Plans With Boutique Fuels- Section 211(c)(4) of the Clean Air Act (42 U.S.C. 7545(c)(4)) is amended by adding the following at the end thereof:CommentsClose CommentsPermalink





`(D) In the case of gasoline, after the enactment of this subparagraph, the Administrator may give a preference to the approval of State implementation plan provisions described in subparagraph (C) if the control or prohibition in such provisions requires the use of either of the following:CommentsClose CommentsPermalink





`(i) Reformulated gasoline as defined in subsection (k).CommentsClose CommentsPermalink





`(ii) Gasoline having a Reid Vapor Pressure of 7.0 or 7.8 pounds per square inch (psi) for the high ozone season (as determined by the Administrator).CommentsClose CommentsPermalink





The Administrator shall have no authority, when considering State implementation plan revisions under subparagraph (C), to approve any fuel or fuel additive if the effect of such approval would be to increase the total number of fuels and fuel additives approved in all State implementation plans nationwide prior to June 1, 2004.'.CommentsClose CommentsPermalink





(b) Cross Reference- Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended by adding the following at the end thereof: `After the date of enactment of subparagraph (D) of this paragraph, any State implementation plan revision under this subparagraph involving gasoline shall be considered only pursuant to both this subparagraph and subparagraph (D).'.CommentsClose CommentsPermalink





(c) Study- The Administrator of the Environmental Protection Agency, in cooperation with the Secretary of Energy, shall undertake a study of the effects on air quality, on the number of fuel blends, on fuel availability, and on fuel costs of the State plan provisions adopted pursuant to section 211(c)(4)(D) of the Clean Air Act. In carrying out such study, the Administrator shall obtain comments from affected parties. The Administrator shall submit the results of such study to the Congress not later than 18 months after the enactment of this Act, together with any recommended legislative changes to the list of fuels in section 211(c)(4)(D), which, if expanded, shall not exceed 10 fuels.CommentsClose CommentsPermalink

SEC. 103. ANTITRUST PROHIBITION OF CERTAIN CONDUCT BY OIL PRODUCING CARTELS.

(a) Antitrust Amendment- The Sherman Act (15 U.S.C. 1 et seq.) is amended by adding after section 7 the following:CommentsClose CommentsPermalink





`Sec. 7A. (a) It shall be illegal and a violation of this Act for any foreign state, or any instrumentality or agent of any foreign state, to act collectively or in combination with any other foreign state, any instrumentality or agent of any other foreign state, or any other person, whether by cartel or any other association or form of cooperation or joint action--CommentsClose CommentsPermalink





`(1) to limit the production or distribution of oil, natural gas, or any other petroleum product;CommentsClose CommentsPermalink





`(2) to set or maintain the price of oil, natural gas, or any petroleum product; orCommentsClose CommentsPermalink





`(3) to otherwise take any action in restraint of trade for oil, natural gas, or any petroleum product;CommentsClose CommentsPermalink





when such action, combination, or collective action has a direct, substantial, and reasonably foreseeable effect on the market, supply, price, or distribution of oil, natural gas, or other petroleum product in the United States.CommentsClose CommentsPermalink





`(b) A foreign state engaged in conduct in violation of subsection (a) shall not be immune under the doctrine of sovereign immunity from the jurisdiction or judgments of the courts of the United States in any action brought to enforce this section.CommentsClose CommentsPermalink





`(c) No court of the United States shall decline, based on the act of state doctrine, to make a determination on the merits in an action brought under this section.CommentsClose CommentsPermalink





`(d) The Attorney General of the United States may bring an action to enforce this section in any district court of the United States as provided under the antitrust laws.'.CommentsClose CommentsPermalink





(b) Sovereign Immunity- Section 1605(a) of title 28, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (6), by striking `or' after the semicolon;CommentsClose CommentsPermalink





(2) in paragraph (7), by striking the period and inserting `; or'; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





`(8) in which the action is brought under section 7A of the Sherman Act.'.CommentsClose CommentsPermalink

SEC. 104. REPORT TO CONGRESS ON ENERGY BOTTLENECKS AND BARRIERS.

Not later than one year after the date of enactment of this Act, the Comptroller General shall transmit to the Congress a report containing the results of a study on the effectiveness of our Nation's energy supply, and limitations on the current energy infrastructure, with emphasis on areas that create artificial shortages, long-term supply problems, and higher costs. The study shall compare regional differences in supply and cost of energy, and reasons for such differences.CommentsClose CommentsPermalink

TITLE II--TAX PROVISIONS

SEC. 201. 60-DAY SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR FUELS.

(a) In General- Section 4081 of the Internal Revenue Code of 1986 (relating to imposition of tax on motor and aviation fuels) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(f) 60-Day Suspension of Highway Motor Fuel Taxes-CommentsClose CommentsPermalink





`(1) IN GENERAL- During the suspension period, no tax shall be imposed by section 4041 or 4081 on highway motor fuel.CommentsClose CommentsPermalink





`(2) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink





`(A) SUSPENSION PERIOD- The term `suspension period' means the 60-day period beginning on the day after the date of the enactment of this section.CommentsClose CommentsPermalink





`(B) HIGHWAY MOTOR FUEL- The term `highway motor fuel' means any fuel subject to tax under section 4041 or 4081 other than aviation gasoline and aviation-grade kerosene.CommentsClose CommentsPermalink





`(3) PREEMPTION OF STATE LAW- No State tax may be increased by reason of any suspension of tax under this subsection.'.CommentsClose CommentsPermalink





(b) Maintenance of Trust Funds Deposits; Amounts Appropriated to Trust Funds Treated as Taxes-CommentsClose CommentsPermalink





(1) IN GENERAL- There is hereby appropriated (out of any money in the Treasury not otherwise appropriated) to each trust fund which would (but for this subsection) receive reduced revenues as a result of suspending a tax referred to in section 4081(f)(1) of the Internal Revenue Code of 1986 (as added by this section) an amount equal to such reduction in revenues. Amounts appropriated by the preceding sentence to any trust fund--CommentsClose CommentsPermalink





(A) shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred had subsection (a) not been enacted, andCommentsClose CommentsPermalink





(B) shall be treated for all purposes of Federal law as taxes received under the appropriate section referred to in such section 4081(f)(1).CommentsClose CommentsPermalink





(c) Effective Date- The amendment made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 202. TEMPORARY EXPENSING OF OIL AND NATURAL GAS EXPLORATION AND PRODUCTION PROPERTY.

(a) In General- Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 179E the following new section:CommentsClose CommentsPermalink

`SEC. 179F. TEMPORARY EXPENSING OF OIL AND NATURAL GAS EXPLORATION AND PRODUCTION PROPERTY .

`(a) Treatment as Expenses- At the election of the taxpayer, there shall be allowed as a deduction an amount equal to the cost paid or incurred by the taxpayer during the taxable year for qualified oil and gas production property. The deduction under the preceding sentence with respect to any property shall be allowed for the taxable year in which such property is placed in service.CommentsClose CommentsPermalink





`(b) Qualified Oil and Gas Production Property- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- The term `qualified oil and gas production property' means any property--CommentsClose CommentsPermalink





`(A) the original use of which begins with the taxpayer, andCommentsClose CommentsPermalink





`(B) which is described in any of the following assets classes under Revenue Procedure 87-56:CommentsClose CommentsPermalink





`(i) 13.0 (relating to assets used in offshore drilling for oil and gas).CommentsClose CommentsPermalink





`(ii) 13.1 (relating to drilling of oil and gas wells).CommentsClose CommentsPermalink





`(iii) 13.2 (relating to exploration for and production of petroleum and natural gas deposits).CommentsClose CommentsPermalink





`(2) APPLICATION OF SECTION- This section shall apply to any property only if--CommentsClose CommentsPermalink





`(A)(i) no written binding contract for the construction of such property was in effect on or before May 8, 2008, orCommentsClose CommentsPermalink





`(ii) in the case of self-constructed property, the construction of such property did not commence on or before such date, andCommentsClose CommentsPermalink





`(B) such property is placed in service before January 1, 2012.CommentsClose CommentsPermalink





`(3) SPECIAL RULE FOR SALE-LEASEBACKS- For purposes of paragraph (1)(A), if property is--CommentsClose CommentsPermalink





`(A) originally placed in service after the date of the enactment of this section by a person, andCommentsClose CommentsPermalink





`(B) sold and leased back by such person within 3 months after the date such property was originally placed in service,CommentsClose CommentsPermalink





such property shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback referred to in subparagraph (B).CommentsClose CommentsPermalink





`(c) Basis Reduction-CommentsClose CommentsPermalink





`(1) IN GENERAL- For purposes of this title, the basis of any property shall be reduced by the portion of the cost of such property taken into account under subsection (a).CommentsClose CommentsPermalink





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





`(d) Election-CommentsClose CommentsPermalink





`(1) IN GENERAL- An election under this section for any taxable year shall be made on the taxpayer's return of the tax imposed by this chapter for the taxable year.CommentsClose CommentsPermalink





`(2) ELECTION IRREVOCABLE- Any election made under this section may not be revoked except with the consent of the Secretary.CommentsClose CommentsPermalink





`(e) Election To Allocate Deduction to Cooperative Owner- A rule similar to the rule of section 179C(g) shall apply for purposes of this section.'.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





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





`(M) expenditures for which a deduction is allowed under section 179F.'.CommentsClose CommentsPermalink





(2) Section 263A(c)(3) of such Code is amended by inserting `179F,' after `179B,'.CommentsClose CommentsPermalink





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





(4) Section 1016(a) of such Code is amended by striking `and' at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting `, or', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(38) to the extent provided in section 179F(c).'.CommentsClose CommentsPermalink





(5) Section 1245(a) of such Code is amended by inserting `179F,' after `179E,' both places it appears in paragraphs (2)(C) and (3)(C).CommentsClose CommentsPermalink





(6) The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 179C the following new item:CommentsClose CommentsPermalink





`Sec. 179F. Temporary expensing of oil and natural gas exploration and production property.'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to costs paid or incurred after the date of the enactment of this Act in taxable years ending after such date.CommentsClose CommentsPermalink

SEC. 203. INCENTIVES FOR EXTRACTION AND PROCESSING OF OIL SHALE.

(a) Investment Tax Credit for Extraction and Processing of Oil Shale Using In-Situ Conversion Technology-CommentsClose CommentsPermalink





(1) IN GENERAL- Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48B the following new section:CommentsClose CommentsPermalink

`SEC. 48C. OIL SHALE EXTRACTION AND PROCESSING FACILITY.

`(a) General Rule- For purposes of section 46, the oil shale extraction and processing credit for any taxable year is 30 percent of the cost of any qualified oil shale extraction and processing property.CommentsClose CommentsPermalink





`(b) Qualified Oil Shale Extraction and Processing Property- The term `qualified oil shale extraction and processing property' means property of a character subject to the allowance for depreciation--CommentsClose CommentsPermalink





`(1) which is used in the United States solely to extract and process oil shale using in-situ conversion technology,CommentsClose CommentsPermalink





`(2) the original use of which commences with the taxpayer after the date of the enactment of this section,CommentsClose CommentsPermalink





`(3) which is acquired by the taxpayer by purchase (as defined in section 179(d)) after the date of the enactment of this subsection, but only if no written binding contract for the acquisition was in effect on or before the date of the enactment of this subsection, andCommentsClose CommentsPermalink





`(4) which is placed in service by the taxpayer before January 1, 2019.CommentsClose CommentsPermalink





`(c) Special Rule for Certain Subsidized Property- For purposes of this section, rules similar to the rules of section 48(a)(4) shall apply.CommentsClose CommentsPermalink





`(d) Denial of Double Benefit- A deduction or credit shall not be allowed under any other provision of this chapter for the cost taken into account under subsection (a).'.CommentsClose CommentsPermalink





(2) CREDIT TREATED AS PART OF INVESTMENT CREDIT- Section 46 is amended by striking `and' at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(6) the oil shale extraction and processing credit.'.CommentsClose CommentsPermalink





(3) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Section 49(a)(1)(C) is amended by striking `and' at the end of clause (iv), by striking the period at the end of clause (v) and inserting `, and', and by adding at the end the following new clause:CommentsClose CommentsPermalink





`(vi) the basis of any qualified oil shale extraction and processing property.'.CommentsClose CommentsPermalink





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





`Sec. 48C. Oil shale extraction and processing facility.'.CommentsClose CommentsPermalink





(b) Expensing Oil Shale Extraction and Processing Property- Part VI of subchapter B of chapter 1 of such Code is amended by inserting after section 179F the following new section:CommentsClose CommentsPermalink

`SEC. 179G. ELECTION TO EXPENSE CERTAIN OIL SHALE EXTRACTION AND PROCESSING PROPERTY.

`(a) Treatment as Expenses- A taxpayer may elect to treat the cost of any qualified oil shale extraction and processing property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the expense is incurred.CommentsClose CommentsPermalink





`(b) Election-CommentsClose CommentsPermalink





`(1) IN GENERAL- An election under this section for any taxable year shall be made on the taxpayer's return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may by regulations prescribe.CommentsClose CommentsPermalink





`(2) ELECTION IRREVOCABLE- Any election made under this section may not be revoked except with the consent of the Secretary.CommentsClose CommentsPermalink





`(c) Qualified Oil Shale Extraction and Processing Property- For purposes of this section--CommentsClose CommentsPermalink





`(1) The term `qualified oil shale extraction and processing property' means any property located in the United States--CommentsClose CommentsPermalink





`(A) the original use of which commences with the taxpayer and which original use is solely to extract or process oil shale, andCommentsClose CommentsPermalink





`(B) which is placed in service by the taxpayer after the date of the enactment of this section and before January 1, 2019.CommentsClose CommentsPermalink





`(d) Election To Allocate Deduction to Cooperative Owner- If--CommentsClose CommentsPermalink





`(1) a taxpayer to which subsection (a) applies is an organization to which part I of subchapter T applies, andCommentsClose CommentsPermalink





`(2) one or more persons directly holding an ownership interest in the taxpayer are organizations to which part I of subchapter T apply,CommentsClose CommentsPermalink





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





`(e) Basis Reduction-CommentsClose CommentsPermalink





`(1) IN GENERAL- For purposes of this title, if a deduction is allowed under this section with respect to any qualified oil shale extraction and processing property, the basis of such property shall be reduced by the amount of the deduction so allowed.CommentsClose CommentsPermalink





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





`(f) Application With Other Deductions and Credits-CommentsClose CommentsPermalink





`(1) OTHER DEDUCTIONS- No deduction shall be allowed under any other provision of this chapter with respect to any expenditure with respect to which a deduction is allowed under subsection (a) to the taxpayer.CommentsClose CommentsPermalink





`(2) CREDITS- No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).CommentsClose CommentsPermalink





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





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 1016(a) of such Code is amended by striking `and' at the end of paragraph (37), by striking the period at the end of paragraph (38) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(39) to the extent provided in section 179G(e)(1).'.CommentsClose CommentsPermalink





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





(3) Section 263(a)(1) of such Code is amended by striking `or' at the end of subparagraph (L), by striking the period at the end of subparagraph (M) and inserting `, or', and by inserting after subparagraph (M) the following new subparagraph:CommentsClose CommentsPermalink





`(N) expenditures for which a deduction is allowed under section 179G.'.CommentsClose CommentsPermalink





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





(5) The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 179F the following new item:CommentsClose CommentsPermalink





`Sec. 179G. Election to expense certain oil shale extraction and processing property.'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to properties placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink

TITLE III--OIL AND GAS DRILLING

Subtitle A--Arctic National Wildlife Refuge

SEC. 301. DEFINITIONS.

In this subtitle:CommentsClose CommentsPermalink





(1) COASTAL PLAIN- The term `Coastal Plain' means that area described in appendix I to part 37 of title 50, Code of Federal Regulations.CommentsClose CommentsPermalink





(2) SECRETARY- The term `Secretary', except as otherwise provided, means the Secretary of the Interior or the Secretary's designee.CommentsClose CommentsPermalink

SEC. 302. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

(a) In General- The Secretary shall take such actions as are necessary--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(b) Repeal-CommentsClose CommentsPermalink





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





(2) CONFORMING AMENDMENT- The table of contents in section 1 of such Act is amended by striking the item relating to section 1003.CommentsClose CommentsPermalink





(c) Compliance With Requirements Under Certain Other Laws-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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 subtitle. 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.CommentsClose CommentsPermalink





(d) Relationship to State and Local Authority- Nothing in this subtitle shall be considered to expand or limit State and local regulatory authority.CommentsClose CommentsPermalink





(e) Special Areas-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(g) Regulations-CommentsClose CommentsPermalink





(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 subtitle.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 303. 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.).CommentsClose CommentsPermalink





(b) Procedures- The Secretary shall, by regulation, establish procedures for--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(2) the holding of lease sales after such nomination process; andCommentsClose CommentsPermalink





(3) public notice of and comment on designation of areas to be included in, or excluded from, a lease sale.CommentsClose CommentsPermalink





(c) Lease Sale Bids- Bidding for leases under this subtitle shall be by sealed competitive cash bonus bids.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(e) Timing of Lease Sales- The Secretary shall--CommentsClose CommentsPermalink





(1) conduct the first lease sale under this subtitle within 22 months after the date of the enactment of this subtitle; andCommentsClose CommentsPermalink





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

SEC. 304. 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 303 any lands to be leased on the Coastal Plain upon payment by the lessee of such bonus as may be accepted by the Secretary.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 305. LEASE TERMS AND CONDITIONS.

(a) In General- An oil or gas lease issued pursuant to this subtitle shall--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





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





(3) require that the lessee of lands within the Coastal Plain shall be fully responsible and liable for the reclamation of lands within the Coastal Plain and any other Federal lands that are adversely affected in connection with exploration, development, production, or transportation activities conducted under the lease and within the Coastal Plain by the lessee or by any of the subcontractors or agents of the lessee;CommentsClose CommentsPermalink





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





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





(6) contain terms and conditions relating to protection of fish and wildlife, their habitat, subsistence resources, and the environment as required pursuant to section 302(a)(2);CommentsClose CommentsPermalink





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





(8) prohibit the export of oil produced under the lease; andCommentsClose CommentsPermalink





(9) contain such other provisions as the Secretary determines necessary to ensure compliance with the provisions of this subtitle and the regulations issued under this subtitle.CommentsClose CommentsPermalink





(b) Project Labor Agreements- The Secretary, as a term and condition of each lease under this subtitle and in recognizing the Government's proprietary interest in labor stability and in the ability of construction labor and management to meet the particular needs and conditions of projects to be developed under the leases issued pursuant to this subtitle and the special concerns of the parties to such leases, shall require that the lessee and its agents and contractors negotiate to obtain a project labor agreement for the employment of laborers and mechanics on production, maintenance, and construction under the lease.CommentsClose CommentsPermalink

SEC. 306. 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 302, administer the provisions of this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(b) Site-Specific Assessment and Mitigation- The Secretary shall also require, with respect to any proposed drilling and related activities, that--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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); andCommentsClose CommentsPermalink





(3) the development of the plan shall occur after consultation with the agency or agencies having jurisdiction over matters mitigated by the plan.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





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





(4) Design safety and construction standards for all pipelines and any access and service roads, that--CommentsClose CommentsPermalink





(A) minimize, to the maximum extent possible, adverse effects upon the passage of migratory species such as caribou; andCommentsClose CommentsPermalink





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





(5) Prohibitions on general public access and use on all pipeline access and service roads.CommentsClose CommentsPermalink





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





(7) Appropriate prohibitions or restrictions on access by all modes of transportation.CommentsClose CommentsPermalink





(8) Appropriate prohibitions or restrictions on sand and gravel extraction.CommentsClose CommentsPermalink





(9) Consolidation of facility siting.CommentsClose CommentsPermalink





(10) Appropriate prohibitions or restrictions on use of explosives.CommentsClose CommentsPermalink





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





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





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





(14) Fuel storage and oil spill contingency planning.CommentsClose CommentsPermalink





(15) Research, monitoring, and reporting requirements.CommentsClose CommentsPermalink





(16) Field crew environmental briefings.CommentsClose CommentsPermalink





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





(18) Compliance with applicable air and water quality standards.CommentsClose CommentsPermalink





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





(20) Reasonable stipulations for protection of cultural and archaeological resources.CommentsClose CommentsPermalink





(21) All other protective environmental stipulations, restrictions, terms, and conditions deemed necessary by the Secretary.CommentsClose CommentsPermalink





(e) Considerations- In preparing and promulgating regulations, lease terms, conditions, restrictions, prohibitions, and stipulations under this section, the Secretary shall consider the following:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(f) Facility Consolidation Planning-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) OBJECTIVES- The plan shall have the following objectives:CommentsClose CommentsPermalink





(A) Avoiding unnecessary duplication of facilities and activities.CommentsClose CommentsPermalink





(B) Encouraging consolidation of common facilities and activities.CommentsClose CommentsPermalink





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





(D) Utilizing existing facilities wherever practicable.CommentsClose CommentsPermalink





(E) Enhancing compatibility between wildlife values and development activities.CommentsClose CommentsPermalink





(g) Access to Public Lands- The Secretary shall--CommentsClose CommentsPermalink





(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); andCommentsClose CommentsPermalink





(2) ensure that local residents shall have reasonable access to public lands in the Coastal Plain for traditional uses.CommentsClose CommentsPermalink

SEC. 307. EXPEDITED JUDICIAL REVIEW.

(a) Filing of Complaint-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





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





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 308. 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--CommentsClose CommentsPermalink





(1) 50 percent shall be paid to the State of Alaska; andCommentsClose CommentsPermalink





(2) except as provided in section 311(d), the balance shall be deposited into the Treasury as miscellaneous receipts.CommentsClose CommentsPermalink





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

SEC. 309. 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--CommentsClose CommentsPermalink





(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.); andCommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Regulations- The Secretary shall include in regulations under section 302(g) provisions granting rights-of-way and easements described in subsection (a) of this section.CommentsClose CommentsPermalink

SEC. 310. 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--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 311. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

(a) Financial Assistance Authorized-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(b) Use of Assistance- Financial assistance under this section may be used only for--CommentsClose CommentsPermalink





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





(2) implementing mitigation plans and maintaining mitigation projects;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(4) establishment of a coordination office, by the North Slope Borough, in the City of Kaktovik, which shall--CommentsClose CommentsPermalink





(A) coordinate with and advise developers on local conditions, impact, and history of the areas utilized for development; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Application-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(d) Establishment of Fund-CommentsClose CommentsPermalink





(1) IN GENERAL- There is established in the Treasury the Coastal Plain Local Government Impact Aid Assistance Fund.CommentsClose CommentsPermalink





(2) USE- Amounts in the fund may be used only for providing financial assistance under this section.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(4) LIMITATION ON DEPOSITS- The total amount in the fund may not exceed $11,000,000.CommentsClose CommentsPermalink





(5) INVESTMENT OF BALANCES- The Secretary of the Treasury shall invest amounts in the fund in interest bearing government securities.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

Subtitle B--Off Shore Drilling for Oil and Gas

SEC. 321. TERMINATION OF PROHIBITIONS ON EXPENDITURES FOR, AND WITHDRAWALS FROM, OFFSHORE LEASING.

(a) Prohibitions on Expenditures- All provisions of Federal law that prohibit the expenditure of appropriated funds to conduct oil or natural gas leasing and preleasing activities for any area of the Outer Continental Shelf shall have no force or effect with respect to such activities.CommentsClose CommentsPermalink





(b) Revocation Withdrawals- All withdrawals of Federal submerged lands of the Outer Continental Shelf from leasing, including withdrawals by the President under the authority of section 12(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1341(a)), are hereby revoked and are no longer in effect with respect to the leasing of areas for exploration for, and development and production of, oil and natural gas.CommentsClose CommentsPermalink

SEC. 322. OUTER CONTINENTAL SHELF LEASING PROGRAM.

The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended by inserting after section 9 the following:CommentsClose CommentsPermalink

`SEC. 10. MORATORIA AREA AND STATE APPROVAL REQUIREMENT WITH RESPECT TO OIL AND NATURAL GAS LEASING.

`(a) Buffer Zone- The Secretary may not grant any oil or natural gas lease for any area of the outer Continental Shelf that is located within 25 miles of the coastline of a State.CommentsClose CommentsPermalink





`(b) State Approval Requirement-CommentsClose CommentsPermalink





`(1) IN GENERAL- The Secretary may not issue any lease authorizing exploration for, or development of, natural gas in any area of the outer Continental Shelf that is located within 50 miles of the coastline of a State unless the State has enacted a law approving of the issuance of such leases by the Secretary.CommentsClose CommentsPermalink





`(2) STATE APPROVAL PERMANENT- Repeal of such a law by a State shall have no effect for purposes of paragraph (1).CommentsClose CommentsPermalink





`(c) State Disapproval Authority-CommentsClose CommentsPermalink





`(1) IN GENERAL- The Secretary may not issue any lease authorizing exploration for, or development of, oil or natural gas in any area of the outer Continental Shelf that is located more than 50 miles and less than 100 miles from the coastline of a State if the State has enacted a law disapproving of the issuance of such leases by the Secretary.CommentsClose CommentsPermalink





`(2) REQUIREMENTS FOR STATE LAW- A law enacted by a State for purposes of paragraph (1)--CommentsClose CommentsPermalink





`(A) shall have no force or effect for purposes of paragraph (1) unless first enacted by the State within the one-year period beginning on the date of the enactment of the National Environment and Energy Development Act; andCommentsClose CommentsPermalink





`(B) shall have no force or effect for purposes of paragraph (1) after the end of the 2-year period beginning on the date it first takes effect, unless the State, in the 2-year period preceding the application of the law for purposes of paragraph (1), enacted legislation extending the effectiveness of the law.'.CommentsClose CommentsPermalink

SEC. 323. SHARING OF REVENUES.

(a) In General- Section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2) by striking `Notwithstanding' and inserting `Except as provided in paragraph (6), and notwithstanding';CommentsClose CommentsPermalink





(2) by redesignating paragraphs (6) and (7) as paragraphs (8) and (9); andCommentsClose CommentsPermalink





(3) by inserting after paragraph (5) the following:CommentsClose CommentsPermalink





`(6) BONUS BIDS AND ROYALTIES UNDER QUALIFIED OIL AND GAS LEASES-CommentsClose CommentsPermalink





`(A) NEW OIL AND GAS LEASES- Of amounts received by the United States as bonus bids and royalties under any qualified oil or gas lease on submerged lands that are located within the seaward boundaries of a State established under section 4(a)(2)(A)--CommentsClose CommentsPermalink





`(i) 37.5 percent shall be paid to the States that are producing States with respect to those submerged lands; andCommentsClose CommentsPermalink





`(ii) the remainder shall be transferred to the American-Made Energy Trust Fund established by section 9511 of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





`(B) LEASED TRACT THAT LIES PARTIALLY WITHIN THE SEAWARD BOUNDARIES OF A STATE- In the case of a leased tract that lies partially within the seaward boundaries of a State, the amounts of bonus bids and royalties from such tract that are subject to subparagraph (A) with respect to such State shall be a percentage of the total amounts of bonus bids and royalties from such tract that is equivalent to the total percentage of surface acreage of the tract that lies within such seaward boundaries.CommentsClose CommentsPermalink





`(C) USE OF PAYMENTS TO STATES- Amounts paid to a State under subparagraph (A)(ii) shall be used by the State for one or more of the following:CommentsClose CommentsPermalink





`(i) Education.CommentsClose CommentsPermalink





`(ii) Transportation.CommentsClose CommentsPermalink





`(iii) Reducing taxes.CommentsClose CommentsPermalink





`(iv) Coastal and environmental restoration.CommentsClose CommentsPermalink





`(v) Energy infrastructure and projects.CommentsClose CommentsPermalink





`(vi) State seismic monitoring programs.CommentsClose CommentsPermalink





`(vii) Alternative energy development.CommentsClose CommentsPermalink





`(viii) Energy efficiency and conservation.CommentsClose CommentsPermalink





`(ix) Hurricane and natural disaster insurance programs.CommentsClose CommentsPermalink





`(x) Any other purpose determined by State law.CommentsClose CommentsPermalink





`(D) DEFINITIONS- In this paragraph:CommentsClose CommentsPermalink





`(i) ADJACENT STATE- 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.CommentsClose CommentsPermalink





`(ii) ADJACENT ZONE- 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.CommentsClose CommentsPermalink





`(iii) PRODUCING STATE- The term `producing State' means an Adjacent State having an adjacent zone containing leased tracts from which are derived bonus bids and royalties under a lease under this Act.CommentsClose CommentsPermalink





`(iv) STATE- The term `State' includes Puerto Rico and the other Territories of the United States.CommentsClose CommentsPermalink





`(v) QUALIFIED GAS LEASE- The term `qualified oil or gas lease' means a lease under this Act granted after the date of the enactment of the National Environment and Energy Development Act that authorizes development and production of oil or natural gas and associated condensate.CommentsClose CommentsPermalink





`(E) APPLICATION- This paragraph shall apply to bonus bids and royalties received by the United States after September 30, 2008.CommentsClose CommentsPermalink





`(7) MAINTENANCE OF EFFORT BY STATES- The Secretary of the Interior shall ensure that financial assistance provided to a State for any purpose with amounts made available under this subsection supplement, and do not replace, the amounts expended by the State for that purpose before the date of the enactment of this paragraph.'.CommentsClose CommentsPermalink





(b) Establishment of State Seaward Boundaries- 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: `. Such extended lines are deemed to be 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. The preceding sentence shall not apply with respect to the treatment under section 105 of the Gulf of Mexico Energy Security Act of 2006 (title I of division C of Public Law 109-432) of qualified outer Continental Shelf revenues deposited and disbursed under subsection (a)(2) of that section.'.CommentsClose CommentsPermalink

Subtitle C--Prohibition on Exportation of Alaskan North Slope Crude Oil

SEC. 331. PROHIBITION ON EXPORTATION OF ALASKAN NORTH SLOPE CRUDE OIL.

Effective 90 days after the date of the enactment of this Act--CommentsClose CommentsPermalink





(1) no domestically produced crude oil transported by pipeline over right-of-way granted pursuant to section 203 of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652) may be exported from the United States, or any commonwealth, territory, or possession of the United States; andCommentsClose CommentsPermalink





(2) subsections (s) and (u) of section 28 of the Mineral Leasing Act of 1920 (30 U.S.C. 185(s) and (u)), and section 7(d) of the Export Administration Act of 1979 (50 U.S.C. App. 2406(d)), are repealed.CommentsClose CommentsPermalink