U.S. Congress - Text of H.R.6566 as Introduced in House American Energy Act
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To bring down energy prices by increasing safe, domestic production, encouraging the development of alternative and renewable energy, and promoting conservation.
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HR 6566 IHCommentsClose CommentsPermalink
110th CONGRESSCommentsClose CommentsPermalink
2d SessionCommentsClose CommentsPermalink
H. R. 6566CommentsClose CommentsPermalink
To bring down energy prices by increasing safe, domestic production, encouraging the development of alternative and renewable energy, and promoting conservation.CommentsClose CommentsPermalink
IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink
July 22, 2008CommentsClose CommentsPermalink
Mr. BOEHNER (for himself, Mr. BLUNT, Mr. PUTNAM, Mr. MCCOTTER, Ms. GRANGER, Mr. CARTER, Mr. COLE of Oklahoma, Mr. CANTOR, Mr. DREIER, Mr. BARTON of Texas, Mr. ENGLISH of Pennsylvania, Mr. DAVID DAVIS of Tennessee, Mrs. MYRICK, Mrs. MILLER of Michigan, Mr. SESSIONS, Mrs. SCHMIDT, Mrs. CUBIN, Mr. WILSON of South Carolina, Mr. LATTA, Mr. ISSA, Mr. DUNCAN, Mr. ROGERS of Michigan, Mr. NEUGEBAUER, Mr. GINGREY, Mr. BACHUS, Mr. BUYER, Mr. NUNES, Mrs. BLACKBURN, Ms. FALLIN, Mr. WAMP, Mrs. DRAKE, Mr. ROYCE, Mr. RADANOVICH, Mr. CHABOT, Mr. BRADY of Texas, Mr. SCALISE, Mr. ADERHOLT, Mr. WESTMORELAND, Mr. BONNER, Mr. MCHUGH, Mr. LINDER, Mrs. MCMORRIS RODGERS, Mr. KING of New York, Mr. SHIMKUS, Mr. SMITH of Nebraska, Mr. ROGERS of Kentucky, Mr. SMITH of Texas, Mr. WOLF, Mr. BOUSTANY, Mr. ROHRABACHER, Mr. TIBERI, Mr. ROGERS of Alabama, Ms. FOXX, Mr. CULBERSON, Mr. KUHL of New York, Mr. PICKERING, Mr. GOODE, Mr. GOHMERT, Mr. MARCHANT, Mr. DAVIS of Kentucky, Mr. MCCARTHY of California, Mrs. CAPITO, Mr. CALVERT, Mrs. BACHMANN, Mr. MCCAUL of Texas, Mr. SHUSTER, Mr. BISHOP of Utah, Mr. EVERETT, Mr. BURTON of Indiana, Mr. BOOZMAN, Mr. LATOURETTE, Mr. TERRY, Mr. FORTENBERRY, Mr. KING of Iowa, Mr. MANZULLO, Mr. HALL of Texas, Mr. HOEKSTRA, Mr. PLATTS, Mr. JONES of North Carolina, Mr. GRAVES, Mr. LAMBORN, Mr. KLINE of Minnesota, Mr. SALI, and Mr. PENCE) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on the Judiciary, Ways and Means, Energy and Commerce, Armed Services, Oversight and Government Reform, and Science and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink
A BILLCommentsClose CommentsPermalink
To bring down energy prices by increasing safe, domestic production, encouraging the development of alternative and renewable energy, and promoting conservation.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 ‘American Energy Act’.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--AMERICAN ENERGY
Subtitle A--OCS
Sec. 101. Short title.CommentsClose CommentsPermalink
Sec. 102. Policy.CommentsClose CommentsPermalink
Sec. 103. Definitions under the Submerged Lands Act.CommentsClose CommentsPermalink
Sec. 104. Seaward boundaries of States.CommentsClose CommentsPermalink
Sec. 105. Exceptions from confirmation and establishment of States’ title, power, and rights.CommentsClose CommentsPermalink
Sec. 106. Definitions under the Outer Continental Shelf Lands Act.CommentsClose CommentsPermalink
Sec. 107. Determination of adjacent zones and planning areas.CommentsClose CommentsPermalink
Sec. 108. Administration of leasing.CommentsClose CommentsPermalink
Sec. 109. Grant of leases by Secretary.CommentsClose CommentsPermalink
Sec. 110. Disposition of receipts.CommentsClose CommentsPermalink
Sec. 111. Reservation of lands and rights.CommentsClose CommentsPermalink
Sec. 112. Outer Continental Shelf leasing program.CommentsClose CommentsPermalink
Sec. 113. Coordination with adjacent States.CommentsClose CommentsPermalink
Sec. 114. Environmental studies.CommentsClose CommentsPermalink
Sec. 115. Termination of effect of laws prohibiting the spending of appropriated funds for certain purposes.CommentsClose CommentsPermalink
Sec. 116. Outer Continental Shelf incompatible use.CommentsClose CommentsPermalink
Sec. 117. Repurchase of certain leases.CommentsClose CommentsPermalink
Sec. 118. Offsite environmental mitigation.CommentsClose CommentsPermalink
Sec. 119. OCS regional headquarters.CommentsClose CommentsPermalink
Sec. 120. Leases for areas located within 100 miles of California or Florida.CommentsClose CommentsPermalink
Sec. 121. Coastal impact assistance.CommentsClose CommentsPermalink
Sec. 122. Repeal of the Gulf of Mexico Energy Security Act of 2006.CommentsClose CommentsPermalink
Subtitle B--ANWR
Sec. 141. Short title.CommentsClose CommentsPermalink
Sec. 142. Definitions.CommentsClose CommentsPermalink
Sec. 143. Leasing program for lands within the Coastal Plain.CommentsClose CommentsPermalink
Sec. 144. Lease sales.CommentsClose CommentsPermalink
Sec. 145. Grant of leases by the Secretary.CommentsClose CommentsPermalink
Sec. 146. Lease terms and conditions.CommentsClose CommentsPermalink
Sec. 147. Coastal Plain environmental protection.CommentsClose CommentsPermalink
Sec. 148. Expedited judicial review.CommentsClose CommentsPermalink
Sec. 149. Federal and State distribution of revenues.CommentsClose CommentsPermalink
Sec. 150. Rights-of-way across the Coastal Plain.CommentsClose CommentsPermalink
Sec. 151. Conveyance.CommentsClose CommentsPermalink
Sec. 152. Local government impact aid and community service assistance.CommentsClose CommentsPermalink
Subtitle C--Oil Shale
Sec. 161. Repeal.CommentsClose CommentsPermalink
TITLE II--CONSERVATION AND EFFICIENCY
Subtitle A--Tax Incentives for Fuel Efficiency
Sec. 201. Credit for new qualified plug-in electric drive motor vehicles.CommentsClose CommentsPermalink
Sec. 202. Extension of credit for alternative fuel vehicles.CommentsClose CommentsPermalink
Sec. 203. Extension of alternative fuel vehicle refueling property credit.CommentsClose CommentsPermalink
Subtitle B--Tapping America’s Ingenuity and Creativity
Sec. 211. Definitions.CommentsClose CommentsPermalink
Sec. 212. Statement of policy.CommentsClose CommentsPermalink
Sec. 213. Prize authority.CommentsClose CommentsPermalink
Sec. 214. Eligibility.CommentsClose CommentsPermalink
Sec. 215. Intellectual property.CommentsClose CommentsPermalink
Sec. 216. Waiver of liability.CommentsClose CommentsPermalink
Sec. 217. Authorization of appropriations.CommentsClose CommentsPermalink
Sec. 218. Next generation automobile prize program.CommentsClose CommentsPermalink
Sec. 219. Advanced battery manufacturing incentive program.CommentsClose CommentsPermalink
Subtitle C--Home and Business Tax Incentives
Sec. 221. Extension of credit for energy efficient appliances.CommentsClose CommentsPermalink
Sec. 222. Extension of credit for nonbusiness energy property.CommentsClose CommentsPermalink
Sec. 223. Extension of credit for residential energy efficient property.CommentsClose CommentsPermalink
Sec. 224. Extension of new energy efficient home credit.CommentsClose CommentsPermalink
Sec. 225. Extension of energy efficient commercial buildings deduction.CommentsClose CommentsPermalink
Sec. 226. Extension of special rule to implement FERC and State electric restructuring policy.CommentsClose CommentsPermalink
Sec. 227. Home energy audits.CommentsClose CommentsPermalink
Sec. 228. Accelerated recovery period for depreciation of smart meters.CommentsClose CommentsPermalink
Subtitle D--Refinery Permit Process Schedule
Sec. 231. Short title.CommentsClose CommentsPermalink
Sec. 232. Definitions.CommentsClose CommentsPermalink
Sec. 233. State assistance.CommentsClose CommentsPermalink
Sec. 234. Refinery process coordination and procedures.CommentsClose CommentsPermalink
Sec. 235. Designation of closed military bases.CommentsClose CommentsPermalink
Sec. 236. Savings clause.CommentsClose CommentsPermalink
Sec. 237. Refinery revitalization repeal.CommentsClose CommentsPermalink
TITLE III--NEW AND EXPANDING TECHNOLOGIES
Subtitle A--Alternative Fuels
Sec. 301. Repeal.CommentsClose CommentsPermalink
Sec. 302. Government auction of long term put option contracts on coal-to-liquid fuel produced by qualified coal-to-liquid facilities.CommentsClose CommentsPermalink
Sec. 303. Standby loans for qualifying coal-to-liquids projects.CommentsClose CommentsPermalink
Subtitle B--Tax Provisions
Sec. 311. Extension of renewable electricity, refined coal, and Indian coal production credit.CommentsClose CommentsPermalink
Sec. 312. Extension of energy credit.CommentsClose CommentsPermalink
Sec. 313. Extension and modification of credit for clean renewable energy bonds.CommentsClose CommentsPermalink
Sec. 314. Extension of credits for biodiesel and renewable diesel.CommentsClose CommentsPermalink
Subtitle C--Nuclear
Sec. 321. Use of funds for recycling.CommentsClose CommentsPermalink
Sec. 322. Rulemaking for licensing of spent nuclear fuel recycling facilities.CommentsClose CommentsPermalink
Sec. 323. Nuclear waste fund budget status.CommentsClose CommentsPermalink
Sec. 324. Waste Confidence.CommentsClose CommentsPermalink
Sec. 325. ASME Nuclear Certification credit.CommentsClose CommentsPermalink
Subtitle D--American Renewable and Alternative Energy Trust Fund
Sec. 331. American Renewable and Alternative Energy Trust Fund.CommentsClose CommentsPermalink
TITLE I--AMERICAN ENERGYCommentsClose CommentsPermalink
Subtitle A--OCSCommentsClose CommentsPermalink
SEC. 101. SHORT TITLE.
This subtitle may be cited as the ‘Deep Ocean Energy Resources Act of 2008’.CommentsClose CommentsPermalink
SEC. 102. POLICY.
It is the policy of the United States that--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 103. DEFINITIONS UNDER THE SUBMERGED LANDS ACT.
Section 2 of the Submerged Lands Act (
(1) in subparagraph (2) of paragraph (a) by striking all after ‘seaward to a line’ and inserting ‘twelve nautical miles distant from the coast line of such State;’;CommentsClose CommentsPermalink
(2) by striking out paragraph (b) and redesignating the subsequent paragraphs in order as paragraphs (b) through (g);CommentsClose CommentsPermalink
(3) by striking the period at the end of paragraph (g) (as so redesignated) and inserting ‘; and’;CommentsClose CommentsPermalink
(4) by adding the following: ‘(i) The term ‘Secretary’ means the Secretary of the Interior.’; andCommentsClose CommentsPermalink
(5) by defining ‘State’ as it is defined in section 2(r) of the Outer Continental Shelf Lands Act (
SEC. 104. SEAWARD BOUNDARIES OF STATES.
Section 4 of the Submerged Lands Act (
(1) in the first sentence by striking ‘original’, and in the same sentence by striking ‘three geographical’ and inserting ‘twelve nautical’; andCommentsClose CommentsPermalink
(2) by striking all after the first sentence and inserting the following: ‘Extension and delineation of lateral offshore State boundaries under the provisions of this Act shall follow the lines used to determine the Adjacent Zones of coastal States under the Outer Continental Shelf Lands Act to the extent such lines extend twelve nautical miles for the nearest coastline.’CommentsClose CommentsPermalink
SEC. 105. EXCEPTIONS FROM CONFIRMATION AND ESTABLISHMENT OF STATES’ TITLE, POWER, AND RIGHTS.
Section 5 of the Submerged Lands Act (
(1) by redesignating paragraphs (a) through (c) in order as paragraphs (1) through (3);CommentsClose CommentsPermalink
(2) by inserting ‘(a)’ before ‘There is excepted’; andCommentsClose CommentsPermalink
(3) by inserting at the end the following:CommentsClose CommentsPermalink
‘(b) Exception of Oil and Gas Mineral Rights- There is excepted from the operation of sections 3 and 4 all of the oil and gas mineral rights for lands beneath the navigable waters that are located within the expanded offshore State seaward boundaries established under this Act. These oil and gas mineral rights shall remain Federal property and shall be considered to be part of the Federal outer Continental Shelf for purposes of the Outer Continental Shelf Lands Act (
43 U.S.C. 1331 et seq.) and subject to leasing under the authority of that Act and to laws applicable to the leasing of the oil and gas resources of the Federal outer Continental Shelf. All existing Federal oil and gas leases within the expanded offshore State seaward boundaries shall continue unchanged by the provisions of this Act, except as otherwise provided herein. However, a State may exercise all of its sovereign powers of taxation within the entire extent of its expanded offshore State boundaries.’.CommentsClose CommentsPermalink
SEC. 106. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.
Section 2 of the Outer Continental Shelf Lands Act (
(1) by amending paragraph (f) to read as follows:CommentsClose CommentsPermalink
‘(f) The term ‘affected State’ means the ‘Adjacent State’.’;CommentsClose CommentsPermalink
(2) by striking the semicolon at the end of each of paragraphs (a) through (o) and inserting a period;CommentsClose CommentsPermalink
(3) by striking ‘; and’ at the end of paragraph (p) and inserting a period;CommentsClose CommentsPermalink
(4) by adding at the end the following:CommentsClose CommentsPermalink
‘(r) The term ‘Adjacent State’ means, with respect to any program, plan, lease sale, leased tract or other activity, proposed, conducted, or approved pursuant to the provisions of this Act, any State the laws of which are declared, pursuant to section 4(a)(2), to be the law of the United States for the portion of the outer Continental Shelf on which such program, plan, lease sale, leased tract or activity appertains or is, or is proposed to be, conducted. For purposes of this paragraph, the term ‘State’ includes the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, American Samoa, Guam, and the other Territories of the United States.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(t) The term ‘miles’ means statute miles.CommentsClose CommentsPermalink
‘(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) ).CommentsClose CommentsPermalink‘(v) The term ‘Neighboring State’ means a coastal State having a common boundary at the coastline with the Adjacent State.’; andCommentsClose CommentsPermalink
(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’.CommentsClose CommentsPermalink
SEC. 107. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.
Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (
SEC. 108. ADMINISTRATION OF LEASING.
Section 5 of the Outer Continental Shelf Lands Act (
‘(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.CommentsClose CommentsPermalink
‘(l) Natural Gas Lease Regulations- Not later than July 1, 2010, the Secretary shall publish a final regulation that shall--CommentsClose CommentsPermalink
‘(1) establish procedures for entering into natural gas leases;CommentsClose CommentsPermalink
‘(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;CommentsClose CommentsPermalink
‘(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;CommentsClose CommentsPermalink
‘(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;CommentsClose CommentsPermalink
‘(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; andCommentsClose CommentsPermalink
‘(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.’.CommentsClose CommentsPermalink
SEC. 109. GRANT OF LEASES BY SECRETARY.
Section 8 of the Outer Continental Shelf Lands Act (
(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.’;CommentsClose CommentsPermalink
(2) by adding at the end of subsection (b) the following:CommentsClose CommentsPermalink
‘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.’;CommentsClose CommentsPermalink
(3) by amending subsection (p)(2)(B) to read as follows:CommentsClose CommentsPermalink
‘(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.’.CommentsClose CommentsPermalink
(4) by adding at the end the following:CommentsClose CommentsPermalink
‘(q) Natural Gas Leases-CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(2) CRUDE OIL- A lessee of a natural gas lease may not produce crude oil from the lease unless the Governor of the Adjacent State agrees to such production.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(s) Royalty Suspension Provisions- 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 (January 1, 2006 dollars) and $6.75 for natural gas (January 1, 2006 dollars).CommentsClose CommentsPermalink
‘(t) Conservation of Resources Fees- 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.’;CommentsClose CommentsPermalink
(5) by striking subsection (a)(3)(A) and redesignating the subsequent subparagraphs as subparagraphs (A) and (B), respectively;CommentsClose CommentsPermalink
(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’; andCommentsClose CommentsPermalink
(7) effective October 1, 2008, in subsection (g)--CommentsClose CommentsPermalink
(A) by striking all after ‘(g)’, except paragraph (3);CommentsClose CommentsPermalink
(B) by striking the last sentence of paragraph (3); andCommentsClose CommentsPermalink
(C) by striking ‘(3)’.CommentsClose CommentsPermalink
SEC. 110. DISPOSITION OF RECEIPTS.
Section 9 of the Outer Continental Shelf Lands Act (
(1) by designating the existing text as subsection (a);CommentsClose CommentsPermalink
(2) in subsection (a) (as so designated) by inserting ‘, if not paid as otherwise provided in this title’ after ‘receipts’; andCommentsClose CommentsPermalink
(3) by adding the following:CommentsClose CommentsPermalink
‘(b) Treatment of OCS Receipts From Tracts Completely Within 100 Miles of the Coastline-CommentsClose CommentsPermalink
‘(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).CommentsClose CommentsPermalink
‘(2) PHASED-IN RECEIPTS SHARING-CommentsClose CommentsPermalink
‘(A) Beginning October 1, 2008, the Secretary shall share OCS Receipts derived from the following areas:CommentsClose CommentsPermalink
‘(i) Lease tracts located on portions of the Gulf of Mexico OCS Region completely beyond 4 marine leagues from any coastline and completely within 100 miles of any coastline that were available for leasing under the 2002-2007 5-Year OCS Oil and Gas Leasing Program.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(B) The Secretary shall share the following percentages of OCS Receipts from the leases described in subparagraph (A) derived during the fiscal year indicated:CommentsClose CommentsPermalink
‘(i) For fiscal year 2009, 5 percent.CommentsClose CommentsPermalink
‘(ii) For fiscal year 2010, 8 percent.CommentsClose CommentsPermalink
‘(iii) For fiscal year 2011, 11 percent.CommentsClose CommentsPermalink
‘(iv) For fiscal year 2012, 14 percent.CommentsClose CommentsPermalink
‘(v) For fiscal year 2013, 17 percent.CommentsClose CommentsPermalink
‘(vi) For fiscal year 2014, 20 percent.CommentsClose CommentsPermalink
‘(vii) For fiscal year 2015, 23 percent.CommentsClose CommentsPermalink
‘(viii) For fiscal year 2016, 26 percent.CommentsClose CommentsPermalink
‘(ix) For fiscal year 2017, 29 percent.CommentsClose CommentsPermalink
‘(x) For fiscal year 2018, 32 percent.CommentsClose CommentsPermalink
‘(xi) For fiscal year 2019, 35 percent.CommentsClose CommentsPermalink
‘(xii) For fiscal year 2020 and each subsequent fiscal year, 37.5 percent.CommentsClose CommentsPermalink
‘(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 6(2) of the Deep Ocean Energy Resources Act of 2008.CommentsClose CommentsPermalink
‘(3) IMMEDIATE RECEIPTS SHARING- Beginning October 1, 2008, the Secretary shall share 37.50 percent of OCS Receipts derived from all leases located completely beyond 4 marine leagues from any coastline and completely within 100 miles of any coastline not included within the provisions of paragraph (2), and 90 percent of the balance of such OCS Receipts shall be deposited into the American Renewable and Alternative Energy Trust Fund established by section 331 of the American Energy Act.CommentsClose CommentsPermalink
‘(4) RECEIPTS SHARING FROM TRACTS WITHIN 4 MARINE LEAGUES OF ANY COASTLINE-CommentsClose CommentsPermalink
‘(A) AREAS DESCRIBED IN PARAGRAPH (2)- Beginning October 1, 2008, and continuing through September 30, 2010, 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, 2010, the Secretary shall increase the percent shared in 5 percent increments each fiscal year until the sharing rate for all leases located within 4 marine leagues from any coastline within areas described in paragraph (2) becomes 75 percent.CommentsClose CommentsPermalink
‘(B) AREAS NOT DESCRIBED IN PARAGRAPH (2)- Beginning October 1, 2008, the Secretary shall share 75 percent of OCS receipts derived from all leases located completely or partially within 4 marine leagues from any coastline within areas not described paragraph (2).CommentsClose CommentsPermalink
‘(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:CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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--CommentsClose CommentsPermalink
‘(i) one-third to the Adjacent State; andCommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(c) Treatment of OCS Receipts From Tracts Partially or Completely Beyond 100 Miles of the Coastline-CommentsClose CommentsPermalink
‘(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).CommentsClose CommentsPermalink
‘(2) PHASED-IN RECEIPTS SHARING-CommentsClose CommentsPermalink
‘(A) Beginning October 1, 2008, the Secretary shall share OCS Receipts derived from the following areas:CommentsClose CommentsPermalink
‘(i) Lease tracts located on portions of the Gulf of Mexico OCS Region partially or completely beyond 100 miles of any coastline that were available for leasing under the 2002-2007 5-Year OCS Oil and Gas Leasing Program.CommentsClose CommentsPermalink
‘(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 2002-2007 5-Year OCS Oil and Gas Leasing Program.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(B) The Secretary shall share the following percentages of OCS Receipts from the leases described in subparagraph (A) derived during the fiscal year indicated:CommentsClose CommentsPermalink
‘(i) For fiscal year 2009, 5 percent.CommentsClose CommentsPermalink
‘(ii) For fiscal year 2010, 8 percent.CommentsClose CommentsPermalink
‘(iii) For fiscal year 2011, 11 percent.CommentsClose CommentsPermalink
‘(iv) For fiscal year 2012, 14 percent.CommentsClose CommentsPermalink
‘(v) For fiscal year 2013, 17 percent.CommentsClose CommentsPermalink
‘(vi) For fiscal year 2014, 20 percent.CommentsClose CommentsPermalink
‘(vii) For fiscal year 2015, 23 percent.CommentsClose CommentsPermalink
‘(viii) For fiscal year 2016, 26 percent.CommentsClose CommentsPermalink
‘(ix) For fiscal year 2017, 29 percent.CommentsClose CommentsPermalink
‘(x) For fiscal year 2018, 32 percent.CommentsClose CommentsPermalink
‘(xi) For fiscal year 2019, 35 percent.CommentsClose CommentsPermalink
‘(xii) For fiscal year 2020 and each subsequent fiscal year, 37.5 percent.CommentsClose CommentsPermalink
‘(C) The provisions of this paragraph shall not apply to leases that could not have been issued but for section 5(k) of this Act or section 106(2) of the Deep Ocean Energy Resources Act of 2008.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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:CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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--CommentsClose CommentsPermalink
‘(i) one-third to the Adjacent State; andCommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(d) Transmission of Allocations-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Not later than 90 days after the end of each fiscal year, the Secretary shall transmit--CommentsClose CommentsPermalink
‘(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;CommentsClose CommentsPermalink
‘(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; andCommentsClose CommentsPermalink
‘(C) the remaining allocations under subsections (b)(5) and (c)(4), together with all accrued interest thereon.CommentsClose CommentsPermalink
‘(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:CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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:CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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:CommentsClose CommentsPermalink
‘(A) One-third shall be allocated to the coastal county-equivalent political subdivision.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(f) Use of Funds- A recipient of funds under this section may use the funds for one or more of the following:CommentsClose CommentsPermalink
‘(1) To reduce in-State college tuition at public institutions of higher learning and otherwise support public education, including career technical education.CommentsClose CommentsPermalink
‘(2) To make transportation infrastructure improvements.CommentsClose CommentsPermalink
‘(3) To reduce taxes.CommentsClose CommentsPermalink
‘(4) To promote, fund, and provide for--CommentsClose CommentsPermalink
‘(A) coastal or environmental restoration;CommentsClose CommentsPermalink
‘(B) fish, wildlife, and marine life habitat enhancement;CommentsClose CommentsPermalink
‘(C) waterways construction and maintenance;CommentsClose CommentsPermalink
‘(D) levee construction and maintenance and shore protection; andCommentsClose CommentsPermalink
‘(E) marine and oceanographic education and research.CommentsClose CommentsPermalink
‘(5) To promote, fund, and provide for--CommentsClose CommentsPermalink
‘(A) infrastructure associated with energy production activities conducted on the outer Continental Shelf;CommentsClose CommentsPermalink
‘(B) energy demonstration projects;CommentsClose CommentsPermalink
‘(C) supporting infrastructure for shore-based energy projects;CommentsClose CommentsPermalink
‘(D) State geologic programs, including geologic mapping and data storage programs, and State geophysical data acquisition;CommentsClose CommentsPermalink
‘(E) State seismic monitoring programs, including operation of monitoring stations;CommentsClose CommentsPermalink
‘(F) development of oil and gas resources through enhanced recovery techniques;CommentsClose CommentsPermalink
‘(G) alternative energy development, including bio fuels, coal-to-liquids, oil shale, tar sands, geothermal, geopressure, wind, waves, currents, hydro, and other renewable energy;CommentsClose CommentsPermalink
‘(H) energy efficiency and conservation programs; andCommentsClose CommentsPermalink
‘(I) front-end engineering and design for facilities that produce liquid fuels from hydrocarbons and other biological matter.CommentsClose CommentsPermalink
‘(6) To promote, fund, and provide for--CommentsClose CommentsPermalink
‘(A) historic preservation programs and projects;CommentsClose CommentsPermalink
‘(B) natural disaster planning and response; andCommentsClose CommentsPermalink
‘(C) hurricane and natural disaster insurance programs.CommentsClose CommentsPermalink
‘(7) For any other purpose as determined by State law.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(i) Definitions- In this section:CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(5) BONUS BIDS- The term ‘bonus bids’ means all funds received by the Secretary to issue an outer Continental Shelf minerals lease.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(7) PRODUCING STATE- The term ‘producing State’ means an Adjacent State having an Adjacent Zone containing leased tracts from which OCS Receipts were derived.CommentsClose CommentsPermalink
‘(8) OCS RECEIPTS- The term ‘OCS Receipts’ means bonus bids, royalties, and conservation of resources fees.’.CommentsClose CommentsPermalink
SEC. 111. RESERVATION OF LANDS AND RIGHTS.
Section 12 of the Outer Continental Shelf Lands Act (
(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.’;CommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
‘(g) Availability for Leasing Within Certain Areas of the Outer Continental Shelf-CommentsClose CommentsPermalink
‘(1) PROHIBITION AGAINST LEASING-CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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, 2010, 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.CommentsClose CommentsPermalink
‘(2) PETITION FOR LEASING-CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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--CommentsClose CommentsPermalink
‘(i) requiring a net reduction in the number of production platforms;CommentsClose CommentsPermalink
‘(ii) requiring a net increase in the average distance of production platforms from the coastline;CommentsClose CommentsPermalink
‘(iii) limiting permanent surface occupancy on new leases to areas that are more than 10 miles from the coastline;CommentsClose CommentsPermalink
‘(iv) limiting some tracts to being produced from shore or from platforms located on other tracts; orCommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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), 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, 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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(j) Prohibition on Leasing East of the Military Mission Line-CommentsClose CommentsPermalink
‘(1) Notwithstanding any other provision of law, from and after the enactment of the Deep Ocean Energy Resources Act of 2008, prior to January 1, 2022, no area of the outer Continental Shelf located in the Gulf of Mexico east of the military mission line may be offered for leasing for oil and gas or natural gas unless a waiver is issued by the Secretary of Defense. If such a waiver is granted, 62.5 percent of the OCS Receipts from a lease within such area issued because of such waiver shall be paid annually to the National Guards of all States having a point within 1000 miles of such a lease, allocated among the States on a per capita basis using the entire population of such States.CommentsClose CommentsPermalink
‘(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.’.CommentsClose CommentsPermalink
SEC. 112. OUTER CONTINENTAL SHELF LEASING PROGRAM.
Section 18 of the Outer Continental Shelf Lands Act (
(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.’;CommentsClose CommentsPermalink
(2) in subsection (c), by striking so much as precedes paragraph (3) and inserting the following:CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(2) After the consideration and analysis required by paragraph (1), including the consideration of the suggestions received from any interested Federal agency, the Federal Trade Commission, the Governor of any coastal State, any local government of a coastal State, and any other person, the Secretary shall publish in the Federal Register a proposed leasing program accompanied by a draft environmental impact statement prepared pursuant to the National Environmental Policy Act of 1969. After the publishing of the proposed leasing program and during the comment period provided for on the draft environmental impact statement, the Secretary shall submit a copy of the proposed program to the Governor of each affected State for review and comment. The Governor may solicit comments from those executives of local governments in the Governor’s State that the Governor, in the discretion of the Governor, determines will be affected by the proposed program. If any comment by such Governor is received by the Secretary at least 15 days prior to submission to the Congress pursuant to paragraph (3) and includes a request for any modification of such proposed program, the Secretary shall reply in writing, granting or denying such request in whole or in part, or granting such request in such modified form as the Secretary considers appropriate, and stating the Secretary’s reasons therefor. All such correspondence between the Secretary and the Governor of any affected State, together with any additional information and data relating thereto, shall accompany such proposed program when it is submitted to the Congress.’; andCommentsClose CommentsPermalink
(3) by adding at the end the following:CommentsClose CommentsPermalink
‘(i) Projection of State Adjacent Zone Resources and State and Local Government Shares of OCS Receipts- Concurrent with the publication of the scoping notice at the beginning of the development of each 5-Year Outer Continental Shelf Oil and Gas Leasing Program, or as soon thereafter as possible, the Secretary shall--CommentsClose CommentsPermalink
‘(1) provide to each Adjacent State a current estimate of proven and potential oil and gas resources located within the State’s Adjacent Zone; andCommentsClose CommentsPermalink
‘(2) provide to each Adjacent State, and coastal political subdivisions thereof, a best-efforts projection of the OCS Receipts that the Secretary expects will be shared with each Adjacent State, and its coastal political subdivisions, using the assumption that the unleased tracts within the State’s Adjacent Zone are fully made available for leasing, including long-term projected OCS Receipts. In addition, the Secretary shall include a macroeconomic estimate of the impact of such leasing on the national economy and each State’s economy, including investment, jobs, revenues, personal income, and other categories.’.CommentsClose CommentsPermalink
SEC. 113. COORDINATION WITH ADJACENT STATES.
Section 19 of the Outer Continental Shelf Lands Act (
(1) in subsection (a) in the first sentence by inserting ‘, for any tract located within the Adjacent State’s Adjacent Zone,’ after ‘government’; andCommentsClose CommentsPermalink
(2) by adding the following:CommentsClose CommentsPermalink
‘(f)(1) No Federal agency may permit or otherwise approve, without the concurrence of the Adjacent State, the construction of a crude oil or petroleum products (or both) pipeline within the part of the Adjacent State’s Adjacent Zone that is withdrawn from oil and gas or natural gas leasing, except that such a pipeline may be approved, without such Adjacent State’s concurrence, to pass through such Adjacent Zone if at least 50 percent of the production projected to be carried by the pipeline within its first 10 years of operation is from areas of the Adjacent State’s Adjacent Zone.CommentsClose CommentsPermalink
‘(2) No State may prohibit the construction within its Adjacent Zone or its State waters of a natural gas pipeline that will transport natural gas produced from the outer Continental Shelf. However, an Adjacent State may prevent a proposed natural gas pipeline landing location if it proposes two alternate landing locations in the Adjacent State, acceptable to the Adjacent State, located within 50 miles on either side of the proposed landing location.’.CommentsClose CommentsPermalink
SEC. 114. ENVIRONMENTAL STUDIES.
Section 20(d) of the Outer Continental Shelf Lands Act (
(1) by inserting ‘(1)’ after ‘(d)’; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
‘(2) For all programs, lease sales, leases, and actions under this Act, the following shall apply regarding the application of the National Environmental Policy Act of 1969:CommentsClose CommentsPermalink
‘(A) Granting or directing lease suspensions and the conduct of all preliminary activities on outer Continental Shelf tracts, including seismic activities, are categorically excluded from the need to prepare either an environmental assessment or an environmental impact statement, and the Secretary shall not be required to analyze whether any exceptions to a categorical exclusion apply for activities conducted under the authority of this Act.CommentsClose CommentsPermalink
‘(B) The environmental impact statement developed in support of each 5-Year Oil and Gas Leasing Program provides the environmental analysis for all lease sales to be conducted under the program and such sales shall not be subject to further environmental analysis.CommentsClose CommentsPermalink
‘(C) Exploration plans shall not be subject to any requirement to prepare an environmental impact statement, and the Secretary may find that exploration plans are eligible for categorical exclusion due to the impacts already being considered within an environmental impact statement or due to mitigation measures included within the plan.CommentsClose CommentsPermalink
‘(D) Within each OCS Planning Area, after the preparation of the first development and production plan environmental impact statement for a leased tract within the Area, future development and production plans for leased tracts within the Area shall only require the preparation of an environmental assessment unless the most recent development and production plan environmental impact statement within the Area was finalized more than 10 years prior to the date of the approval of the plan, in which case an environmental impact statement shall be required.’.CommentsClose CommentsPermalink
SEC. 115. TERMINATION OF EFFECT OF LAWS PROHIBITING THE SPENDING OF APPROPRIATED FUNDS FOR CERTAIN PURPOSES.
All provisions of existing Federal law prohibiting the spending of appropriated funds to conduct oil and natural gas leasing and preleasing activities, or to issue a lease to any person, for any area of the outer Continental Shelf shall have no force or effect.CommentsClose CommentsPermalink
SEC. 116. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.
(a) In General- No Federal agency may permit construction or operation (or both) of any facility, or designate or maintain a restricted transportation corridor or operating area on the Federal outer Continental Shelf or in State waters, that will be incompatible with, as determined by the Secretary of the Interior, oil and gas or natural gas leasing and substantially full exploration and production of tracts that are geologically prospective for oil or natural gas (or both).CommentsClose CommentsPermalink
(b) Exceptions- Subsection (a) shall not apply to any facility, transportation corridor, or operating area the construction, operation, designation, or maintenance of which is or will be--CommentsClose CommentsPermalink
(1) located in an area of the outer Continental Shelf that is unavailable for oil and gas or natural gas leasing by operation of law;CommentsClose CommentsPermalink
(2) used for a military readiness activity (as defined in section 315(f) of
(3) required in the national interest, as determined by the President.CommentsClose CommentsPermalink
SEC. 117. REPURCHASE OF CERTAIN LEASES.
(a) Authority To Repurchase and Cancel Certain Leases- The Secretary of the Interior shall repurchase and cancel any Federal oil and gas, geothermal, coal, oil shale, tar sands, or other mineral lease, whether onshore or offshore, but not including any outer Continental Shelf oil and gas leases that were subject to litigation in the Court of Federal Claims on January 1, 2006, if the Secretary finds that such lease qualifies for repurchase and cancellation under the regulations authorized by this section.CommentsClose CommentsPermalink
(b) Regulations- Not later than 365 days after the date of the enactment of this Act, the Secretary shall publish a final regulation stating the conditions under which a lease referred to in subsection (a) would qualify for repurchase and cancellation, and the process to be followed regarding repurchase and cancellation. Such regulation shall include, but not be limited to, the following:CommentsClose CommentsPermalink
(1) The Secretary shall repurchase and cancel a lease after written request by the lessee upon a finding by the Secretary that--CommentsClose CommentsPermalink
(A) a request by the lessee for a required permit or other approval complied with applicable law, except the Coastal Zone Management Act of 1972 (
(B) a Federal agency failed to act on a request by the lessee for a required permit, other approval, or administrative appeal within a regulatory or statutory time-frame associated with the requested action, whether advisory or mandatory, or if none, within 180 days; orCommentsClose CommentsPermalink
(C) a Federal agency attached a condition of approval, without agreement by the lessee, to a required permit or other approval if such condition of approval was not mandated by Federal statute or regulation in effect on the date of lease issuance, or was not specifically allowed under the terms of the lease.CommentsClose CommentsPermalink
(2) A lessee shall not be required to exhaust administrative remedies regarding a permit request, administrative appeal, or other required request for approval for the purposes of this section.CommentsClose CommentsPermalink
(3) The Secretary shall make a final agency decision on a request by a lessee under this section within 180 days of request.CommentsClose CommentsPermalink
(4) Compensation to a lessee to repurchase and cancel a lease under this section shall be the amount that a lessee would receive in a restitution case for a material breach of contract.CommentsClose CommentsPermalink
(5) Compensation shall be in the form of a check or electronic transfer from the Department of the Treasury from funds deposited into miscellaneous receipts under the authority of the same Act that authorized the issuance of the lease being repurchased.CommentsClose CommentsPermalink
(6) Failure of the Secretary to make a final agency decision on a request by a lessee under this section within 180 days of request shall result in a 10 percent increase in the compensation due to the lessee if the lease is ultimately repurchased.CommentsClose CommentsPermalink
(c) No Prejudice- This section shall not be interpreted to prejudice any other rights that the lessee would have in the absence of this section.CommentsClose CommentsPermalink
SEC. 118. OFFSITE ENVIRONMENTAL MITIGATION.
Notwithstanding any other provision of law, any person conducting activities under the Mineral Leasing Act (
SEC. 119. OCS REGIONAL HEADQUARTERS.
Not later than July 1, 2010, the Secretary of the Interior shall establish the headquarters for the Atlantic OCS Region, the headquarters for the Gulf of Mexico OCS Region, and the headquarters for the Pacific OCS Region within a State bordering the Atlantic OCS Region, a State bordering the Gulf of Mexico OCS Region, and a State bordering the Pacific OCS Region, respectively, from among the States bordering those Regions, that petitions by no later than January 1, 2010, for leasing, for oil and gas or natural gas, covering at least 40 percent of the area of its Adjacent Zone within 100 miles of the coastline. Such Atlantic and Pacific OCS Regions headquarters shall be located within 25 miles of the coastline and each MMS OCS regional headquarters shall be the permanent duty station for all Minerals Management Service personnel that on a daily basis spend on average 60 percent or more of their time in performance of duties in support of the activities of the respective Region, except that the Minerals Management Service may house regional inspection staff in other locations. Each OCS Region shall each be led by a Regional Director who shall be an employee within the Senior Executive Service.CommentsClose CommentsPermalink
SEC. 120. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF CALIFORNIA OR FLORIDA.
(a) Authorization To Cancel and Exchange Certain Existing Oil and Gas Leases; Prohibition on Submittal of Exploration Plans for Certain Leases Prior to June 30, 2012-CommentsClose CommentsPermalink
(1) AUTHORITY- Within 2 years after the date of enactment of this Act, the lessee of an existing oil and gas lease for an area located completely within 100 miles of the coastline within the California or Florida Adjacent Zones shall have the option, without compensation, of exchanging such lease for a new oil and gas lease having a primary term of 5 years. For the area subject to the new lease, the lessee may select any unleased tract on the outer Continental Shelf that is in an area available for leasing. Further, with the permission of the relevant Governor, such a lessee may convert its existing oil and gas lease into a natural gas lease having a primary term of 5 years and covering the same area as the existing lease or another area within the same State’s Adjacent Zone within 100 miles of the coastline.CommentsClose CommentsPermalink
(2) ADMINISTRATIVE PROCESS- The Secretary of the Interior shall establish a reasonable administrative process to implement paragraph (1). Exchanges and conversions under subsection (a), including the issuance of new leases, shall not be considered to be major Federal actions for purposes of the National Environmental Policy Act of 1969 (
(3) OPERATING RESTRICTIONS- A new lease issued in exchange for an existing lease under this section shall be subject to such national defense operating stipulations on the OCS tract covered by the new lease as may be applicable upon issuance.CommentsClose CommentsPermalink
(4) PRIORITY- The Secretary shall give priority in the lease exchange process based on the amount of the original bonus bid paid for the issuance of each lease to be exchanged. The Secretary shall allow leases covering partial tracts to be exchanged for leases covering full tracts conditioned upon payment of additional bonus bids on a per-acre basis as determined by the average per acre of the original bonus bid per acre for the partial tract being exchanged.CommentsClose CommentsPermalink
(5) EXPLORATION PLANS- Any exploration plan submitted to the Secretary of the Interior after the date of the enactment of this Act and before July 1, 2012, for an oil and gas lease for an area wholly within 100 miles of the coastline within the California Adjacent Zone or Florida Adjacent Zone shall not be treated as received by the Secretary until the earlier of July 1, 2012, or the date on which a petition by the Adjacent State for oil and gas leasing covering the area within which is located the area subject to the oil and gas lease was approved.CommentsClose CommentsPermalink
(b) Further Lease Cancellation and Exchange Provisions-CommentsClose CommentsPermalink
(1) CANCELLATION OF LEASE- As part of the lease exchange process under this section, the Secretary shall cancel a lease that is exchanged under this section.CommentsClose CommentsPermalink
(2) CONSENT OF LESSEES- All lessees holding an interest in a lease must consent to cancellation of their leasehold interests in order for the lease to be cancelled and exchanged under this section.CommentsClose CommentsPermalink
(3) WAIVER OF RIGHTS- As a prerequisite to the exchange of a lease under this section, the lessee must waive any rights to bring any litigation against the United States related to the transaction.CommentsClose CommentsPermalink
(4) PLUGGING AND ABANDONMENT- The plugging and abandonment requirements for any wells located on any lease to be cancelled and exchanged under this section must be complied with by the lessees prior to the cancellation and exchange.CommentsClose CommentsPermalink
(c) Area Partially Within 100 Miles of Florida- An existing oil and gas lease for an area located partially within 100 miles of the coastline within the Florida Adjacent Zone may only be developed and produced using wells drilled from well-head locations at least 100 miles from the coastline to any bottom-hole location on the area of the lease. This subsection shall not apply if Florida has petitioned for leasing closer to the coastline than 100 miles.CommentsClose CommentsPermalink
(d) Existing Oil and Gas Lease Defined- In this section the term ‘existing oil and gas lease’ means an oil and gas lease in effect on the date of the enactment of this Act.CommentsClose CommentsPermalink
SEC. 121. COASTAL IMPACT ASSISTANCE.
Section 31 of the Outer Continental Shelf Lands Act (
SEC. 122. REPEAL OF THE GULF OF MEXICO ENERGY SECURITY ACT OF 2006.
The Gulf of Mexico Energy Security Act of 2006 is repealed effective October 1, 2008.CommentsClose CommentsPermalink
Subtitle B--ANWRCommentsClose CommentsPermalink
SEC. 141. SHORT TITLE.
This subtitle may be cited as the ‘American Energy Independence and Price Reduction Act’.CommentsClose CommentsPermalink
SEC. 142. 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. 143. 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 (
(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 (
(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 (
(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.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 Act.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. 144. LEASE SALES.
(a) In General- Lands may be leased pursuant to this subtitle to any person qualified to obtain a lease for deposits of oil and gas under the Mineral Leasing Act (
(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 Act;CommentsClose CommentsPermalink
(2) evaluate the bids in such sale and issue leases resulting from such sale, within 90 days after the date of the completion of such sale; andCommentsClose CommentsPermalink
(3) 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. 145. GRANT OF LEASES BY THE SECRETARY.
(a) In General- The Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 144 any lands to be leased on the Coastal Plain upon payment by the lessee of such bonus as may be accepted by the Secretary.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. 146. 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 143(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. 147. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern Authorized Coastal Plain Activities- The Secretary shall, consistent with the requirements of section 143, administer the provisions of this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that--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 archeological 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 (
(2) ensure that local residents shall have reasonable access to public lands in the Coastal Plain for traditional uses.CommentsClose CommentsPermalink
SEC. 148. 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. 149. FEDERAL AND STATE DISTRIBUTION OF REVENUES.
(a) In General- Notwithstanding any other provision of law, of the amount of adjusted bonus, rental, and royalty revenues from Federal oil and gas leasing and operations authorized under this subtitle--CommentsClose CommentsPermalink
(1) 50 percent shall be paid to the State of Alaska; andCommentsClose CommentsPermalink
(2) except as provided in section 152(d), 90 percent of the balance shall be deposited into the American Renewable and Alternative Energy Trust Fund established by section 331.CommentsClose CommentsPermalink
(b) Payments to Alaska- Payments to the State of Alaska under this section shall be made semiannually.CommentsClose CommentsPermalink
SEC. 150. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
(a) In General- The Secretary shall issue rights-of-way and easements across the Coastal Plain for the transportation of oil and gas--CommentsClose CommentsPermalink
(1) except as provided in paragraph (2), under section 28 of the Mineral Leasing Act (
(2) under title XI of the Alaska National Interest Lands Conservation Act (
(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 143(g) provisions granting rights-of-way and easements described in subsection (a) of this section.CommentsClose CommentsPermalink
SEC. 151. CONVEYANCE.
In order to maximize Federal revenues by removing clouds on title to lands and clarifying land ownership patterns within the Coastal Plain, the Secretary, notwithstanding the provisions of section 1302(h)(2) of the Alaska National Interest Lands Conservation Act (
(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 (
(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. 152. 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 C--Oil ShaleCommentsClose CommentsPermalink
SEC. 161. REPEAL.
Section 433 of the Consolidated Appropriations Act, 2008 is repealed.CommentsClose CommentsPermalink
TITLE II--CONSERVATION AND EFFICIENCYCommentsClose CommentsPermalink
Subtitle A--Tax Incentives for Fuel EfficiencyCommentsClose CommentsPermalink
SEC. 201. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
(a) In General- Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:CommentsClose CommentsPermalink
‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
‘(a) Allowance of Credit- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year.CommentsClose CommentsPermalink
‘(b) Per Vehicle Dollar Limitation-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle.CommentsClose CommentsPermalink
‘(2) BASE AMOUNT- The amount determined under this paragraph is $3,000.CommentsClose CommentsPermalink
‘(3) BATTERY CAPACITY- In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $200, plus $200 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $2,000.CommentsClose CommentsPermalink
‘(c) Application With Other Credits-CommentsClose CommentsPermalink
‘(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT- So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).CommentsClose CommentsPermalink
‘(2) PERSONAL CREDIT-CommentsClose CommentsPermalink
‘(A) IN GENERAL- For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.CommentsClose CommentsPermalink
‘(B) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of--CommentsClose CommentsPermalink
‘(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink
‘(ii) the sum of the credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year.CommentsClose CommentsPermalink
‘(d) New Qualified Plug-In Electric Drive Motor Vehicle- For purposes of this section--CommentsClose CommentsPermalink
‘(1) IN GENERAL- The term ‘new qualified plug-in electric drive motor vehicle’ means a motor vehicle (as defined in section 30(c)(2))--CommentsClose CommentsPermalink
‘(A) the original use of which commences with the taxpayer,CommentsClose CommentsPermalink
‘(B) which is acquired for use or lease by the taxpayer and not for resale,CommentsClose CommentsPermalink
‘(C) which is made by a manufacturer,CommentsClose CommentsPermalink
‘(D) which has a gross vehicle weight rating of less than 14,000 pounds,CommentsClose CommentsPermalink
‘(E) which has received a certificate of conformity under the Clean Air Act and meets or exceeds the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, andCommentsClose CommentsPermalink
‘(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which--CommentsClose CommentsPermalink
‘(i) has a capacity of not less than 4 kilowatt hours, andCommentsClose CommentsPermalink
‘(ii) is capable of being recharged from an external source of electricity.CommentsClose CommentsPermalink
‘(2) EXCEPTION- The term ‘new qualified plug-in electric drive motor vehicle’ shall not include any vehicle which is not a passenger automobile or light truck if such vehicle has a gross vehicle weight rating of less than 8,500 pounds.CommentsClose CommentsPermalink
‘(3) OTHER TERMS- The terms ‘passenger automobile’, ‘light truck’, and ‘manufacturer’ have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (
42 U.S.C. 7521 et seq.).CommentsClose CommentsPermalink‘(4) BATTERY CAPACITY- The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.CommentsClose CommentsPermalink
‘(e) Limitation on Number of New Qualified Plug-In Electric Drive Motor Vehicles Eligible for Credit-CommentsClose CommentsPermalink
‘(1) IN GENERAL- In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.CommentsClose CommentsPermalink
‘(2) PHASEOUT PERIOD- For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after the date of the enactment of this section, is at least 60,000.CommentsClose CommentsPermalink
‘(3) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the applicable percentage is--CommentsClose CommentsPermalink
‘(A) 50 percent for the first 2 calendar quarters of the phaseout period,CommentsClose CommentsPermalink
‘(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, andCommentsClose CommentsPermalink
‘(C) 0 percent for each calendar quarter thereafter.CommentsClose CommentsPermalink
‘(4) CONTROLLED GROUPS- Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.CommentsClose CommentsPermalink
‘(f) Special Rules-CommentsClose CommentsPermalink
‘(1) BASIS REDUCTION- The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (c)).CommentsClose CommentsPermalink
‘(2) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.CommentsClose CommentsPermalink
‘(3) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT QUALIFIED- No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.CommentsClose CommentsPermalink
‘(4) ELECTION NOT TO TAKE CREDIT- No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.CommentsClose CommentsPermalink
‘(5) PROPERTY USED BY TAX-EXEMPT ENTITY; INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE SAFETY STANDARDS- Rules similar to the rules of paragraphs (6) and (10) of section 30B(h) shall apply for purposes of this section.’.CommentsClose CommentsPermalink
(b) Coordination With Alternative Motor Vehicle Credit- Section 30B(d)(3) of such Code is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink
‘(D) EXCLUSION OF PLUG-IN VEHICLES- Any vehicle with respect to which a credit is allowable under section 30D (determined without regard to subsection (c) thereof) shall not be taken into account under this section.’.CommentsClose CommentsPermalink
(c) Credit Made Part of General Business Credit- Section 38(b) of such Code is amended--CommentsClose CommentsPermalink
(1) by striking ‘and’ each place it appears at the end of any paragraph,CommentsClose CommentsPermalink
(2) by striking ‘plus’ each place it appears at the end of any paragraph,CommentsClose CommentsPermalink
(3) by striking the period at the end of paragraph (31) and inserting ‘, plus’, andCommentsClose CommentsPermalink
(4) by adding at the end the following new paragraph:CommentsClose CommentsPermalink
‘(32) the portion of the new qualified plug-in electric drive motor vehicle credit to which section 30D(c)(1) applies.’.CommentsClose CommentsPermalink
(d) Conforming Amendments-CommentsClose CommentsPermalink
(1)(A) Section 24(b)(3)(B) of such Code is amended by striking ‘and 25D’ and inserting ‘25D, and 30D’.CommentsClose CommentsPermalink
(B) Section 25(e)(1)(C)(ii) of such Code is amended by inserting ‘30D,’ after ‘25D,’.CommentsClose CommentsPermalink
(C) Section 25B(g)(2) of such Code is amended by striking ‘and 25D’ and inserting ‘, 25D, and 30D’.CommentsClose CommentsPermalink
(D) Section 26(a)(1) of such Code is amended by striking ‘and 25D’ and inserting ‘25D, and 30D’.CommentsClose CommentsPermalink
(E) Section 1400C(d)(2) of such Code is amended by striking ‘and 25D’ and inserting ‘25D, and 30D’.CommentsClose CommentsPermalink
(2) Section 1016(a) of such Code is amended by striking ‘and’ at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ‘, and’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink
‘(37) to the extent provided in section 30D(f)(1).’.CommentsClose CommentsPermalink
(3) Section 6501(m) of such Code is amended by inserting ‘30D(f)(4),’ after ‘30C(e)(5),’.CommentsClose CommentsPermalink
(4) The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink
‘Sec. 30D. New qualified plug-in electric drive motor vehicles.’.CommentsClose CommentsPermalink
(e) Treatment of Alternative Motor Vehicle Credit as a Personal Credit-CommentsClose CommentsPermalink
(1) IN GENERAL- Paragraph (2) of section 30B(g) of such Code is amended to read as follows:CommentsClose CommentsPermalink
‘(2) PERSONAL CREDIT- The credit allowed under subsection (a) for any taxable year (after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.’.CommentsClose CommentsPermalink
(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink
(A) Subparagraph (A) of section 30C(d)(2) of such Code is amended by striking ‘sections 27, 30, and 30B’ and inserting ‘sections 27 and 30’.CommentsClose CommentsPermalink
(B) Paragraph (3) of section 55(c) of such Code is amended by striking ‘30B(g)(2),’.CommentsClose CommentsPermalink
(f) Effective Date-CommentsClose CommentsPermalink
(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink
(2) TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS PERSONAL CREDIT- The amendments made by subsection (e) shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink
(g) Application of EGTRRA Sunset- The amendment made by subsection (d)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates.CommentsClose CommentsPermalink
SEC. 202. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLES.
Paragraph (4) of section 30B(j) of the Internal Revenue Code of 1986 is amended by striking ‘December 31, 2010’ and inserting ‘December 31, 2014’.CommentsClose CommentsPermalink
SEC. 203. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.
Paragraph (1) of section 30C(g) of the Internal Revenue Code of 1986 is amended by striking ‘hydrogen,’ inserting ‘hydrogen or alternative fuels (as defined in section 30B(e)(4)(B)),’.CommentsClose CommentsPermalink
Subtitle B--Tapping America’s Ingenuity and CreativityCommentsClose CommentsPermalink
SEC. 211. DEFINITIONS.
In this subtitle:CommentsClose CommentsPermalink
(1) ADMINISTERING ENTITY- The term ‘administering entity’ means the entity with which the Secretary enters into an agreement under section 214(c).CommentsClose CommentsPermalink
(2) DEPARTMENT- The term ‘Department’ means the Department of Energy.CommentsClose CommentsPermalink
(3) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
SEC. 212. STATEMENT OF POLICY.
It is the policy of the United States to provide incentives to encourage the development and implementation of innovative energy technologies and new energy sources that will reduce our reliance on foreign energy.CommentsClose CommentsPermalink
SEC. 213. PRIZE AUTHORITY.
(a) In General- The Secretary shall carry out a program to competitively award cash prizes in conformity with this subtitle to advance the research, development, demonstration, and commercial application of innovative energy technologies and new energy sources.CommentsClose CommentsPermalink
(b) Advertising and Solicitation of Competitors-CommentsClose CommentsPermalink
(1) ADVERTISING- The Secretary shall widely advertise prize competitions to encourage broad participation in the program carried out under subsection (a), including individuals, universities, communities, and large and small businesses.CommentsClose CommentsPermalink
(2) ANNOUNCEMENT THROUGH FEDERAL REGISTER NOTICE- The Secretary shall announce each prize competition by publishing a notice in the Federal Register. This notice shall include essential elements of the competition such as the subject of the competition, the duration of the competition, the eligibility requirements for participation in the competition, the process for participants to register for the competition, the amount of the prize, and the criteria for awarding the prize.CommentsClose CommentsPermalink
(c) Administering the Competition- The Secretary may enter into an agreement with a private, nonprofit entity to administer the prize competitions, subject to the provisions of this subtitle. The administering entity shall perform the following functions:CommentsClose CommentsPermalink
(1) Advertise the competition and its results.CommentsClose CommentsPermalink
(2) Raise funds from private entities and individuals to pay for administrative costs and cash prizes.CommentsClose CommentsPermalink
(3) Develop, in consultation with and subject to the final approval of the Secretary, criteria to select winners based upon the goal of safely and adequately storing nuclear used fuel.CommentsClose CommentsPermalink
(4) Determine, in consultation with and subject to the final approval of the Secretary, the appropriate amount of the awards.CommentsClose CommentsPermalink
(5) Protect against the administering entity’s unauthorized use or disclosure of a registered participant’s intellectual property, trade secrets, and confidential business information. Any information properly identified as trade secrets or confidential business information that is submitted by a participant as part of a competitive program under this subtitle may be withheld from public disclosure.CommentsClose CommentsPermalink
(6) Develop and promulgate sufficient rules to define the parameters of designing and proposing innovative energy technologies and new energy sources with input from industry, citizens, and corporations familiar with such activities.CommentsClose CommentsPermalink
(d) Funding Sources- Prizes under this subtitle may consist of Federal appropriated funds, funds provided by the administering entity, or funds raised through grants or donations. The Secretary may accept funds from other Federal agencies for such cash prizes and, notwithstanding
(e) Announcement of Prizes- The Secretary may not publish a notice required by subsection (b)(2) until all the funds needed to pay out the announced amount of the prize have been appropriated to the Department or the Department has received from the administering entity a written commitment to provide all necessary funds.CommentsClose CommentsPermalink
SEC. 214. ELIGIBILITY.
To be eligible to win a prize under this subtitle, an individual or entity--CommentsClose CommentsPermalink
(1) shall notify the administering entity of intent to submit ideas and intent to collect the prize upon selection;CommentsClose CommentsPermalink
(2) shall comply with all the requirements stated in the Federal Register notice required under section 213(b)(2);CommentsClose CommentsPermalink
(3) in the case of a private entity, shall be incorporated in and maintain a primary place of business in the United States, and in the case of an individual, whether participating singly or in a group, shall be a citizen of the United States;CommentsClose CommentsPermalink
(4) shall not be a Federal entity, a Federal employee acting within the scope of his or her employment, or an employee of a national laboratory acting within the scope of employment;CommentsClose CommentsPermalink
(5) shall not use Federal funding or other Federal resources to compete for the prize; andCommentsClose CommentsPermalink
(6) shall not be an entity acting on behalf of any foreign government or agent.CommentsClose CommentsPermalink
SEC. 215. INTELLECTUAL PROPERTY.
The Federal Government shall not, by virtue of offering or awarding a prize under this subtitle, be entitled to any intellectual property rights derived as a consequence of, or in direct relation to, the participation by a registered participant in a competition authorized by this subtitle. This section shall not be construed to prevent the Federal Government from negotiating a license for the use of intellectual property developed for a prize competition under this subtitle. The Federal Government may seek assurances that technologies for which prizes are awarded under this subtitle are offered for commercialization in the event an award recipient does not take, or is not expected to take within a reasonable time, effective steps to achieve practical application of the technology.CommentsClose CommentsPermalink
SEC. 216. WAIVER OF LIABILITY.
The Secretary may require registered participants to waive claims against the Federal Government and the administering entity (except claims for willful misconduct) for any injury, death, damage, or loss of property, revenue, or profits arising from the registered participants’ participation in a competition under this subtitle. The Secretary shall give notice of any waiver required under this section in the notice required by section 213(b)(2). The Secretary may not require a registered participant to waive claims against the administering entity arising out of the unauthorized use or disclosure by the administering entity of the registered participant’s intellectual property, trade secrets, or confidential business information.CommentsClose CommentsPermalink
SEC. 217. AUTHORIZATION OF APPROPRIATIONS.
(a) Awards- 40 percent of amounts in the American Energy Trust Fund shall be available without further appropriation to carry out specified provisions of this section.CommentsClose CommentsPermalink
(b) Treatment of Awards- Amounts received pursuant to an award under this subtitle may not be taxed by any Federal, State, or local authority.CommentsClose CommentsPermalink
(c) Administration- In addition to the amounts authorized under subsection (a), there are authorized to be appropriated to the Secretary for each of fiscal years 2009 through 2020 $2,000,000 for the administrative costs of carrying out this subtitle.CommentsClose CommentsPermalink
(d) Carryover of Funds- Funds appropriated for prize awards under this subtitle shall remain available until expended and may be transferred, reprogrammed, or expended for other purposes only after the expiration of 11 fiscal years after the fiscal year for which the funds were originally appropriated. No provision in this subtitle permits obligation or payment of funds in violation of
SEC. 218. NEXT GENERATION AUTOMOBILE PRIZE PROGRAM.
The Secretary of Energy shall establish a program to award a prize in the amount of $500,000,000 to the first automobile manufacturer incorporated in the United States to manufacture and sell in the United States 50,000 midsized sedan automobiles which operate on gasoline and can travel 100 miles per gallon.CommentsClose CommentsPermalink
SEC. 219. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) ADVANCED BATTERY- The term ‘advanced battery’ means an electrical storage device suitable for vehicle applications.CommentsClose CommentsPermalink
(2) ENGINEERING INTEGRATION COSTS- The term ‘engineering integration costs’ includes the cost of engineering tasks relating to--CommentsClose CommentsPermalink
(A) incorporation of qualifying components into the design of advanced batteries; andCommentsClose CommentsPermalink
(B) design of tooling and equipment and developing manufacturing processes and material suppliers for production facilities that produce qualifying components or advanced batteries.CommentsClose CommentsPermalink
(b) Advanced Battery Manufacturing Facility- The Secretary shall provide facility funding awards under this section to advanced battery manufacturers to pay not more than 30 percent of the cost of reequipping, expanding, or establishing a manufacturing facility in the United States to produce advanced batteries.CommentsClose CommentsPermalink
(c) Period of Availability- An award under subsection (b) shall apply to--CommentsClose CommentsPermalink
(1) facilities and equipment placed in service before December 30, 2020; andCommentsClose CommentsPermalink
(2) engineering integration costs incurred during the period beginning on the date of enactment of this Act and ending on December 30, 2020.CommentsClose CommentsPermalink
(d) Direct Loan Program-CommentsClose CommentsPermalink
(1) IN GENERAL- Not later than 1 year after the date of enactment of this subtitle, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $100,000,000 in loans to eligible individuals and entities (as determined by the Secretary) for the costs of activities described in subsection (b).CommentsClose CommentsPermalink
(2) SELECTION OF ELIGIBLE PROJECTS- The Secretary shall select eligible projects to receive loans under this subsection in cases in which, as determined by the Secretary, the award recipient--CommentsClose CommentsPermalink
(A) is financially viable without the receipt of additional Federal funding associated with the proposed project;CommentsClose CommentsPermalink
(B) will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; andCommentsClose CommentsPermalink
(C) has met such other criteria as may be established and published by the Secretary.CommentsClose CommentsPermalink
(3) RATES, TERMS, AND REPAYMENT OF LOANS- A loan provided under this subsection--CommentsClose CommentsPermalink
(A) shall have an interest rate that, as of the date on which the loan is made, is equal to the cost of funds to the Department of the Treasury for obligations of comparable maturity;CommentsClose CommentsPermalink
(B) shall have a term equal to the lesser of--CommentsClose CommentsPermalink
(i) the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; andCommentsClose CommentsPermalink
(ii) 25 years;CommentsClose CommentsPermalink
(C) may be subject to a deferral in repayment for not more than 5 years after the date on which the eligible project carried out using funds from the loan first begins operations, as determined by the Secretary; andCommentsClose CommentsPermalink
(D) shall be made by the Federal Financing Bank.CommentsClose CommentsPermalink
(e) Fees- The cost of administering a loan made under this section shall not exceed $100,000.CommentsClose CommentsPermalink
(f) Set Aside for Small Manufacturers-CommentsClose CommentsPermalink
(1) DEFINITION OF COVERED FIRM- In this subsection, the term ‘covered firm’ means a firm that--CommentsClose CommentsPermalink
(A) employs fewer than 500 individuals; andCommentsClose CommentsPermalink
(B) manufactures automobiles or components of automobiles.CommentsClose CommentsPermalink
(2) SET ASIDE- Of the amount of funds used to provide awards for each fiscal year under subsection (b), the Secretary shall use not less than 10 percent to provide awards to covered firms or consortia led by a covered firm.CommentsClose CommentsPermalink
(g) Authorization of Appropriations- There are authorized to be appropriated from the American Energy Trust Fund such sums as are necessary to carry out this section for each of fiscal years 2009 through 2013.CommentsClose CommentsPermalink
Subtitle C--Home and Business Tax IncentivesCommentsClose CommentsPermalink
SEC. 221. EXTENSION OF CREDIT FOR ENERGY EFFICIENT APPLIANCES.
(a) In General- Subsection (b) of section 45M of the Internal Revenue Code of 1986 (relating to applicable amount) is amended by striking ‘calendar year 2006 or 2007’ each place it appears in paragraphs (1)(A)(i), (1)(B)(i), (1)(C)(ii)(I), and (1)(C)(iii)(I), and inserting ‘calendar year 2006, 2007, 2008, 2009, 2010, 2011, 2012, or 2013’.CommentsClose CommentsPermalink
(b) Restart of Credit Limitation- Paragraph (1) of section 45M(e) of such Code (relating to aggregate credit amount allowed) is amended by inserting ‘beginning after December 31, 2007’ after ‘for all prior taxable years’.CommentsClose CommentsPermalink
(c) Effective Date- The amendments made by this section shall apply to appliances produced after December 31, 2007.CommentsClose CommentsPermalink
SEC. 222. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) In General- Section 25C(g) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink
(b) Effective Date- The amendment made by this section shall apply to property placed in service after December 31, 2007.CommentsClose CommentsPermalink
SEC. 223. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
Section 25D(g) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink
SEC. 224. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.
Subsection (g) of section 45L of the Internal Revenue Code of 1986 (relating to termination) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink
SEC. 225. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Section 179D(h) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink
SEC. 226. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING POLICY.
(a) In General- Paragraph (3) of section 451(i) of the Internal Revenue Code of 1986 is amended by striking ‘January 1, 2008’ and inserting ‘January 1, 2014’.CommentsClose CommentsPermalink
(b) Extension of Period for Transfer of Operational Control Authorized by FERC- Clause (ii) of section 451(i)(4)(B) of such Code is amended by striking ‘December 31, 2007’ and inserting ‘the date which is 4 years after the close of the taxable year in which the transaction occurs’.CommentsClose CommentsPermalink
(c) Effective Dates-CommentsClose CommentsPermalink
(1) EXTENSION- The amendments made by subsection (a) shall apply to transactions after December 31, 2007.CommentsClose CommentsPermalink
(2) TRANSFERS OF OPERATIONAL CONTROL- The amendment made by subsection (b) shall take effect as if included in section 909 of the American Jobs Creation Act of 2004.CommentsClose CommentsPermalink
SEC. 227. HOME ENERGY AUDITS.
(a) In General- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:CommentsClose CommentsPermalink
‘SEC. 25E. HOME ENERGY AUDITS.
‘(a) In General- In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the amount of qualified energy audit paid or incurred by the taxpayer during the taxable year.CommentsClose CommentsPermalink
‘(b) Limitations-CommentsClose CommentsPermalink
‘(1) DOLLAR LIMITATION- The amount allowed as a credit under subsection (a) with respect to a residence of the taxpayer for a taxable year shall not exceed $400.CommentsClose CommentsPermalink
‘(2) LIMITATION BASED ON AMOUNT OF TAX- In the case of any taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) shall not exceed the excess of--CommentsClose CommentsPermalink
‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink
‘(B) the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.CommentsClose CommentsPermalink
‘(c) Qualified Energy Audit- For purposes of this section, the term ‘qualified energy audit’ means an energy audit of the principal residence of the taxpayer performed by a qualified energy auditor through a comprehensive site visit. Such audit may include a blower door test, an infra-red camera test, and a furnace combustion efficiency test. In addition, such audit shall include such substitute tests for the tests specified in the preceding sentence, and such additional tests, as the Secretary may by regulation require. A principal residence shall not be taken into consideration under this subparagraph unless such residence is located in the United States.CommentsClose CommentsPermalink
‘(d) Principal Residence- For purposes of this section, the term ‘principal residence’ has the same meaning as when used in section 121.CommentsClose CommentsPermalink
‘(e) Qualified Energy Auditor-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Secretary shall specify by regulations the qualifications required to be a qualified energy auditor for purposes of this section. Such regulations shall include rules prohibiting conflicts-of-interest, including the disallowance of commissions or other payments based on goods or non-audit services purchased by the taxpayer from the auditor.CommentsClose CommentsPermalink
‘(2) CERTIFICATION- The Secretary shall prescribe the procedures and methods for certifying that an auditor is a qualified energy auditor. To the maximum extent practicable, such procedures and methods shall provide for a variety of sources to obtain certifications.’.CommentsClose CommentsPermalink
(b) Conforming Amendments-CommentsClose CommentsPermalink
(1) Section 23(b)(4)(B) of the Internal Revenue Code of 1986 is amended by inserting ‘and section 25E’ after ‘this section’.CommentsClose CommentsPermalink
(2) Section 23(c)(1) of such Code is amended by inserting ‘, 25E,’ after ‘25D’.CommentsClose CommentsPermalink
(3) Section 24(b)(3)(B) of such Code is amended by striking ‘and 25B’ and inserting ‘, 25B, and 25E’.CommentsClose CommentsPermalink
(4) Clauses (i) and (ii) of section 25(e)(1)(C) of such Code are each amended by inserting ‘25E,’ after ‘25D,’.CommentsClose CommentsPermalink
(5) Section 25B(g)(2) of such Code is amended by striking ‘section 23’ and inserting ‘sections 23 and 25E’.CommentsClose CommentsPermalink
(6) Section 25D(c)(1) of such Code is amended by inserting ‘and section 25E’ after ‘this section’.CommentsClose CommentsPermalink
(7) Section 25D(c)(2) of such Code is amended by striking ‘and 25B’ and inserting ‘25B, and 25E’.CommentsClose CommentsPermalink
(8) The table of sections for subpart A of part IV of subchapter A chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item:CommentsClose CommentsPermalink
‘Sec. 25E. Home energy audits.’.CommentsClose CommentsPermalink
(c) Effective Date-CommentsClose CommentsPermalink
(1) IN GENERAL- The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink
(2) APPLICATION OF EGTRRA SUNSET- The amendments made by paragraphs (1) and (3) of subsection (b) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.CommentsClose CommentsPermalink
SEC. 228. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS.
(a) In General- Section 168(e)(3)(B) of the Internal Revenue Code of 1986 is amended by striking ‘and’ at the end of clause (v), by striking the period at the end of clause (vi) and inserting ‘, and’, and by inserting after clause (vi) the following new clause:CommentsClose CommentsPermalink
‘(vii) any qualified smart electric meter.’.CommentsClose CommentsPermalink
(b) Definition- Section 168(i) of such Code is amended by inserting at the end the following new paragraph:CommentsClose CommentsPermalink
‘(18) QUALIFIED SMART ELECTRIC METERS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘qualified smart electric meter’ means any smart electric meter which is placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services.CommentsClose CommentsPermalink
‘(B) SMART ELECTRIC METER- For purposes of subparagraph (A), the term ‘smart electric meter’ means any time-based meter and related communication equipment which is capable of being used by the taxpayer as part of a system that--CommentsClose CommentsPermalink
‘(i) measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day,CommentsClose CommentsPermalink
‘(ii) provides for the exchange of information between supplier or provider and the customer’s electric meter in support of time-based rates or other forms of demand response,CommentsClose CommentsPermalink
‘(iii) provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, andCommentsClose CommentsPermalink
‘(iv) provides net metering.’.CommentsClose CommentsPermalink
(c) Continued Application of 150 Percent Declining Balance Method- Paragraph (2) of section 168(b) of such Code is amended by striking ‘or’ at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph:CommentsClose CommentsPermalink
‘(C) any property (other than property described in paragraph (3)) which is a qualified smart electric meter, or’.CommentsClose CommentsPermalink
(d) Effective Date- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink
Subtitle D--Refinery Permit Process ScheduleCommentsClose CommentsPermalink
SEC. 231. SHORT TITLE.
This subtitle may be cited as the ‘Refinery Permit Process Schedule Act’.CommentsClose CommentsPermalink
SEC. 232. DEFINITIONS.
For purposes of this subtitle--CommentsClose CommentsPermalink
(1) the term ‘Administrator’ means the Administrator of the Environmental Protection Agency;CommentsClose CommentsPermalink
(2) the term ‘applicant’ means a person who (with the approval of the governor of the State, or in the case of Native American tribes or tribal territories the designated leader of the tribe or tribal community, where the proposed refinery would be located) is seeking a Federal refinery authorization;CommentsClose CommentsPermalink
(3) the term ‘biomass’ has the meaning given that term in section 932(a)(1) of the Energy Policy Act of 2005;CommentsClose CommentsPermalink
(4) the term ‘Federal refinery authorization’--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(5) the term ‘refinery’ means--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 233. STATE ASSISTANCE.
(a) State Assistance- At the request of a governor of a State, or in the case of Native American tribes or tribal territories the designated leader of the tribe or tribal community, the Administrator is authorized to provide financial assistance to that State or tribe or tribal community to facilitate the hiring of additional personnel to assist the State or tribe or tribal community with expertise in fields relevant to consideration of Federal refinery authorizations.CommentsClose CommentsPermalink
(b) Other Assistance- At the request of a governor of a State, or in the case of Native American tribes or tribal territories the designated leader of the tribe or tribal community, a Federal agency responsible for a Federal refinery authorization shall provide technical, legal, or other nonfinancial assistance to that State or tribe or tribal community to facilitate its consideration of Federal refinery authorizations.CommentsClose CommentsPermalink
SEC. 234. REFINERY PROCESS COORDINATION AND PROCEDURES.
(a) Appointment of Federal Coordinator-CommentsClose CommentsPermalink
(1) IN GENERAL- The President shall appoint a Federal coordinator to perform the responsibilities assigned to the Federal coordinator under this subtitle.CommentsClose CommentsPermalink
(2) OTHER AGENCIES- Each Federal and State agency or official required to provide a Federal refinery authorization shall cooperate with the Federal coordinator.CommentsClose CommentsPermalink
(b) Federal Refinery Authorizations-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(d) Remedies-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(5) EXPEDITED REVIEW- The Court shall set any civil action brought under this subsection for expedited consideration.CommentsClose CommentsPermalink
SEC. 235. 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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(d) Definitions- For purposes of this section--CommentsClose CommentsPermalink
(1) the term ‘base closure law’ means the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of
(2) the term ‘closed military installation’ means a military installation closed or approved for closure pursuant to a base closure law.CommentsClose CommentsPermalink
SEC. 236. 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.CommentsClose CommentsPermalink
SEC. 237. 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.CommentsClose CommentsPermalink
TITLE III--NEW AND EXPANDING TECHNOLOGIESCommentsClose CommentsPermalink
Subtitle A--Alternative FuelsCommentsClose CommentsPermalink
SEC. 301. REPEAL.
Section 526 of the Energy Independence and Security Act of 2007 (
SEC. 302. GOVERNMENT AUCTION OF LONG TERM PUT OPTION CONTRACTS ON COAL-TO-LIQUID FUEL PRODUCED BY QUALIFIED COAL-TO-LIQUID FACILITIES.
(a) In General- The Secretary shall, from time to time, auction to the public coal-to-liquid fuel put option contracts having expiration dates of 5 years, 10 years, 15 years, or 20 years.CommentsClose CommentsPermalink
(b) Consultation With Secretary of Energy- The Secretary shall consult with the Secretary of Energy regarding--CommentsClose CommentsPermalink
(1) the frequency of the auctions;CommentsClose CommentsPermalink
(2) the strike prices specified in the contracts;CommentsClose CommentsPermalink
(3) the number of contracts to be auctioned with a given strike price and expiration date; andCommentsClose CommentsPermalink
(4) the capacity of existing or planned facilities to produce coal-to-liquid fuel.CommentsClose CommentsPermalink
(c) Definitions- In this section:CommentsClose CommentsPermalink
(1) COAL-TO-LIQUID FUEL- The term ‘coal-to-liquid fuel’ means any transportation-grade liquid fuel derived primarily from coal (including peat) and produced at a qualified coal-to-liquid facility.CommentsClose CommentsPermalink
(2) COAL-TO-LIQUID PUT OPTION CONTRACT- The term ‘coal-to-liquid put option contract’ means a contract, written by the Secretary, which--CommentsClose CommentsPermalink
(A) gives the holder the right (but not the obligation) to sell to the Government of the United States a certain quantity of a specific type of coal-to-liquid fuel produced by a qualified coal-to-liquid facility specified in the contract, at a strike price specified in the contract, on or before an expiration date specified in the contract; andCommentsClose CommentsPermalink
(B) is transferable by the holder to any other entity.CommentsClose CommentsPermalink
(3) QUALIFIED COAL-TO-LIQUID FACILITY- The term ‘qualified coal-to-liquid facility’ means a manufacturing facility that has the capacity to produce at least 10,000 barrels per day of transportation grade liquid fuels from a feedstock that is primarily domestic coal (including peat and any property which allows for the capture, transportation, or sequestration of by-products resulting from such process, including carbon emissions).CommentsClose CommentsPermalink
(4) SECRETARY- The term ‘Secretary’ means the Secretary of the Treasury.CommentsClose CommentsPermalink
(5) STRIKE PRICE- The term ‘strike price’ means, with respect to a put option contract, the price at which the holder of the contract has the right to sell the fuel which is the subject of the contract.CommentsClose CommentsPermalink
(d) Regulations- The Secretary shall prescribe such regulations as may be necessary to carry out this section.CommentsClose CommentsPermalink
(e) Effective Date- This section shall take effect 1 year after the date of the enactment of this Act.CommentsClose CommentsPermalink
SEC. 303. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQUIDS PROJECTS.
Section 1702 of the Energy Policy Act of 2005 (
‘(k) Standby Loans for Qualifying CTL Projects-CommentsClose CommentsPermalink
‘(1) DEFINITIONS- For purposes of this subsection:CommentsClose CommentsPermalink
‘(A) CAP PRICE- The term ‘cap price’ means a market price specified in the standby loan agreement above which the project is required to make payments to the United States.CommentsClose CommentsPermalink
‘(B) FULL TERM- The term ‘full term’ means the full term of a standby loan agreement, as specified in the agreement, which shall not exceed the lesser of 30 years or 90 percent of the projected useful life of the project (as determined by the Secretary).CommentsClose CommentsPermalink
‘(C) MARKET PRICE- The term ‘market price’ means the average quarterly price of a petroleum price index specified in the standby loan agreement.CommentsClose CommentsPermalink
‘(D) MINIMUM PRICE- The term ‘minimum price’ means a market price specified in the standby loan agreement below which the United States is obligated to make disbursements to the project.CommentsClose CommentsPermalink
‘(E) OUTPUT- The term ‘output’ means some or all of the liquid or gaseous transportation fuels produced from the project, as specified in the loan agreement.CommentsClose CommentsPermalink
‘(F) PRIMARY TERM- The term ‘primary term’ means the initial term of a standby loan agreement, as specified in the agreement, which shall not exceed the lesser of 20 years or 75 percent of the projected useful life of the project (as determined by the Secretary).CommentsClose CommentsPermalink
‘(G) QUALIFYING CTL PROJECT- The term ‘qualifying CTL project’ means--CommentsClose CommentsPermalink
‘(i) a commercial-scale project that converts coal to one or more liquid or gaseous transportation fuels; orCommentsClose CommentsPermalink
‘(ii) not more than one project at a facility that converts petroleum refinery waste products, including petroleum coke, into one or more liquids or gaseous transportation fuels,CommentsClose CommentsPermalink
that demonstrates the capture, and sequestration or disposal or use of, the carbon dioxide produced in the conversion process, and that, on the basis of a carbon dioxide sequestration plan prepared by the applicant, is certified by the Administrator of the Environmental Protection Agency, in consultation with the Secretary, as producing fuel with life cycle carbon dioxide emissions at or below the average life cycle carbon dioxide emissions for the same type of fuel produced at traditional petroleum based facilities with similar annual capacities.CommentsClose CommentsPermalink
‘(H) STANDBY LOAN AGREEMENT- The term ‘standby loan agreement’ means a loan agreement entered into under paragraph (2).CommentsClose CommentsPermalink
‘(2) STANDBY LOANS-CommentsClose CommentsPermalink
‘(A) LOAN AUTHORITY- The Secretary may enter into standby loan agreements with not more than six qualifying CTL projects, at least one of which shall be a project jointly or in part owned by two or more small coal producers. Such an agreement--CommentsClose CommentsPermalink
‘(i) shall provide that the Secretary will make a direct loan (within the meaning of section 502(1) of the Federal Credit Reform Act of 1990) to the qualifying CTL project; andCommentsClose CommentsPermalink
‘(ii) shall set a cap price and a minimum price for the primary term of the agreement.CommentsClose CommentsPermalink
‘(B) LOAN DISBURSEMENTS- Such a loan shall be disbursed during the primary term of such agreement whenever the market price falls below the minimum price. The amount of such disbursements in any calendar quarter shall be equal to the excess of the minimum price over the market price, times the output of the project (but not more than a total level of disbursements specified in the agreement).CommentsClose CommentsPermalink
‘(C) LOAN REPAYMENTS- The Secretary shall establish terms and conditions, including interest rates and amortization schedules, for the repayment of such loan within the full term of the agreement, subject to the following limitations:CommentsClose CommentsPermalink
‘(i) If in any calendar quarter during the primary term of the agreement the market price is less than the cap price, the project may elect to defer some or all of its repayment obligations due in that quarter. Any unpaid obligations will continue to accrue interest.CommentsClose CommentsPermalink
‘(ii) If in any calendar quarter during the primary term of the agreement the market price is greater than the cap price, the project shall meet its scheduled repayment obligation plus deferred repayment obligations, but shall not be required to pay in that quarter an amount that is more than the excess of the market price over the cap price, times the output of the project.CommentsClose CommentsPermalink
‘(iii) At the end of the primary term of the agreement, the cumulative amount of any deferred repayment obligations, together with accrued interest, shall be amortized (with interest) over the remainder of the full term of the agreement.CommentsClose CommentsPermalink
‘(3) PROFIT-SHARING- The Secretary is authorized to enter into a profit-sharing agreement with the project at the time the standby loan agreement is executed. Under such an agreement, if the market price exceeds the cap price in a calendar quarter, a profit-sharing payment shall be made for that quarter, in an amount equal to--CommentsClose CommentsPermalink
‘(A) the excess of the market price over the cap price, times the output of the project; lessCommentsClose CommentsPermalink
‘(B) any loan repayments made for the calendar quarter.CommentsClose CommentsPermalink
‘(4) COMPLIANCE WITH FEDERAL CREDIT REFORM ACT-CommentsClose CommentsPermalink
‘(A) UPFRONT PAYMENT OF COST OF LOAN- No standby loan agreement may be entered into under this subsection unless the project makes a payment to the United States that the Office of Management and Budget determines is equal to the cost of such loan (determined under 502(5)(B) of the Federal Credit Reform Act of 1990). Such payment shall be made at the time the standby loan agreement is executed.CommentsClose CommentsPermalink
‘(B) MINIMIZATION OF RISK TO THE GOVERNMENT- In making the determination of the cost of the loan for purposes of setting the payment for a standby loan under subparagraph (A), the Secretary and the Office of Management and Budget shall take into consideration the extent to which the minimum price and the cap price reflect historical patterns of volatility in actual oil prices relative to projections of future oil prices, based upon publicly available data from the Energy Information Administration, and employing statistical methods and analyses that are appropriate for the analysis of volatility in energy prices.CommentsClose CommentsPermalink
‘(C) TREATMENT OF PAYMENTS- The value to the United States of a payment under subparagraph (A) and any profit-sharing payments under paragraph (3) shall be taken into account for purposes of section 502(5)(B)(iii) of the Federal Credit Reform Act of 1990 in determining the cost to the Federal Government of a standby loan made under this subsection. If a standby loan has no cost to the Federal Government, the requirements of section 504(b) of such Act shall be deemed to be satisfied.CommentsClose CommentsPermalink
‘(5) OTHER PROVISIONS-CommentsClose CommentsPermalink
‘(A) NO DOUBLE BENEFIT- A project receiving a loan under this subsection may not, during the primary term of the loan agreement, receive a Federal loan guarantee under subsection (a) of this section, or under other laws.CommentsClose CommentsPermalink
‘(B) SUBROGATION, ETC- Subsections (g)(2) (relating to subrogation), (h) (relating to fees), and (j) (relating to full faith and credit) shall apply to standby loans under this subsection to the same extent they apply to loan guarantees.’.CommentsClose CommentsPermalink
Subtitle B--Tax ProvisionsCommentsClose CommentsPermalink
SEC. 311. EXTENSION OF RENEWABLE ELECTRICITY, REFINED COAL, AND INDIAN COAL PRODUCTION CREDIT.
(a) Credit Made Permanent-CommentsClose CommentsPermalink
(1) IN GENERAL- Subsection (d) of section 45 of the Internal Revenue Code of 1986 (relating to qualified facilities) is amended--CommentsClose CommentsPermalink
(A) by striking ‘and before January 1, 2009’ each place it occurs,CommentsClose CommentsPermalink
(B) by striking ‘, and before January 1, 2009’ in paragraphs (1) and (2)(A)(i), andCommentsClose CommentsPermalink
(C) by striking ‘before January 1, 2009’ in paragraph (10).CommentsClose CommentsPermalink
(2) OPEN-LOOP BIOMASS FACILITIES- Subparagraph (A) of section 45(d)(3) of such Code is amended to read as follows:CommentsClose CommentsPermalink
‘(A) IN GENERAL- In the case of a facility using open-loop biomass to produce electricity, the term ‘qualified facility’ means any facility owned by the taxpayer which is originally placed in service after October 22, 2004.’.CommentsClose CommentsPermalink
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply to electricity produced and sold after December 31, 2008, in taxable years ending after such date.CommentsClose CommentsPermalink
(b) Sales of Net Electricity to Regulated Public Utilities Treated as Sales to Unrelated Persons- Paragraph (4) of section 45(e) of such Code is amended by adding at the end the following new sentence: ‘The net amount of electricity sold by any taxpayer to a regulated public utility (as defined in section 7701(a)(33)) shall be treated as sold to an unrelated person.’.CommentsClose CommentsPermalink
(c) Allowance Against Alternative Minimum Tax-CommentsClose CommentsPermalink
(1) IN GENERAL- Clause (ii) of section 38(c)(4)(B) of such Code (relating to specified credits) is amended by striking ‘produced--’ and all that follows and inserting ‘produced at a facility which is originally placed in service after the date of the enactment of this paragraph.’.CommentsClose CommentsPermalink
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink
SEC. 312. EXTENSION OF ENERGY CREDIT.
(a) Solar Energy Property- Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal Revenue Code of 1986 (relating to energy credit) are each amended by striking ‘but only with respect to periods ending before January 1, 2009’.CommentsClose CommentsPermalink
(b) Fuel Cell Property- Section 48(c)(1) of such Code (relating to qualified fuel cell property) is amended by striking subparagraph (E).CommentsClose CommentsPermalink
(c) Microturbine Property- Subparagraph (E) of section 48(c)(2) of the Internal Revenue Code of 1986 (relating to qualified microturbine property) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink
(d) Allowance Against Alternative Minimum Tax-CommentsClose CommentsPermalink
(1) IN GENERAL- Subparagraph (B) of section 38(c)(4) of such Code (relating to specified credits) is amended by striking ‘and’ at the end of clause (iii), by redesignating clause (iv) as clause (v), and by inserting after clause (iii) the following new clause:CommentsClose CommentsPermalink
‘(iv) the credit determined under section 48, and’.CommentsClose CommentsPermalink
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink
SEC. 313. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN RENEWABLE ENERGY BONDS.
(a) Extension- Section 54(m) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink
(b) Increase in National Limitation- Section 54(f) of such Code (relating to limitation on amount of bonds designated) is amended--CommentsClose CommentsPermalink
(1) by striking ‘$1,200,000,000’ in paragraph (1) and inserting ‘$1,600,000,000’, andCommentsClose CommentsPermalink
(2) by striking ‘$750,000,000’ in paragraph (2) and inserting ‘$1,000,000,000’.CommentsClose CommentsPermalink
(c) Modification of Ratable Principal Amortization Requirement-CommentsClose CommentsPermalink
(1) IN GENERAL- Paragraph (5) of section 54(l) of such Code is amended to read as follows:CommentsClose CommentsPermalink
‘(5) RATABLE PRINCIPAL AMORTIZATION REQUIRED- A bond shall not be treated as a clean renewable energy bond unless it is part of an issue which provides for an equal amount of principal to be paid by the qualified issuer during each 12-month period that the issue is outstanding (other than the first 12-month period).’.CommentsClose CommentsPermalink
(2) TECHNICAL AMENDMENT- The third sentence of section 54(e)(2) of such Code is amended by striking ‘subsection (l)(6)’ and inserting ‘subsection (l)(5)’.CommentsClose CommentsPermalink
(d) Effective Date- The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.CommentsClose CommentsPermalink
SEC. 314. EXTENSION OF CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.
(a) In General- Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of the Internal Revenue Code of 1986 are each amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink
(b) Effective Date- The amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2008.CommentsClose CommentsPermalink
Subtitle C--NuclearCommentsClose CommentsPermalink
SEC. 321. USE OF FUNDS FOR RECYCLING.
Section 302 of the Nuclear Waste Policy Act of 1982 (
(1) in subsection (d), by striking ‘The Secretary may’ and inserting ‘Except as provided in subsection (f), the Secretary may’; andCommentsClose CommentsPermalink
(2) by adding at the end the following new subsection:CommentsClose CommentsPermalink
‘(f) Recycling-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Amounts in the Waste Fund may be used by the Secretary of Energy to make grants to or enter into long-term contracts with private sector entities for the recycling of spent nuclear fuel.CommentsClose CommentsPermalink
‘(2) COMPETITIVE SELECTION- Grants and contracts authorized under paragraph (1) shall be awarded on the basis of a competitive bidding process that--CommentsClose CommentsPermalink
‘(A) maximizes the competitive efficiency of the projects funded;CommentsClose CommentsPermalink
‘(B) best serves the goal of reducing the amount of waste requiring disposal under this Act; andCommentsClose CommentsPermalink
‘(C) ensures adequate protection against the proliferation of nuclear materials that could be used in the manufacture of nuclear weapons.’.CommentsClose CommentsPermalink
SEC. 322. RULEMAKING FOR LICENSING OF SPENT NUCLEAR FUEL RECYCLING FACILITIES.
(a) Requirement- The Nuclear Regulatory Commission shall, as expeditiously as possible, but in no event later than 2 years after the date of enactment of this Act, complete a rulemaking establishing a process for the licensing by the Nuclear Regulatory Commission, under the Atomic Energy Act of 1954, of facilities for the recycling of spent nuclear fuel.CommentsClose CommentsPermalink
(b) Funding- Amounts in the Nuclear Waste Fund established under section 302 of the Nuclear Waste Policy Act of 1982 (
SEC. 323. NUCLEAR WASTE FUND BUDGET STATUS.
Section 302(e) of the Nuclear Waste Policy Act of 1982 (
‘(7) The receipts and disbursements of the Waste Fund shall not be counted as new budget authority, outlays, receipts, or deficits or surplus for purposes of--CommentsClose CommentsPermalink
‘(A) the budget of the United States Government as submitted by the President;CommentsClose CommentsPermalink
‘(B) the congressional budget; orCommentsClose CommentsPermalink
‘(C) the Balanced Budget and Emergency Deficit Control Act of 1985.’.CommentsClose CommentsPermalink
SEC. 324. WASTE CONFIDENCE.
The Nuclear Regulatory Commission may not deny an application for a license, permit, or other authorization under the Atomic Energy Act of 1954 on the grounds that sufficient capacity does not exist, or will not become available on a timely basis, for disposal of spent nuclear fuel or high-level radioactive waste from the facility for which the license, permit, or other authorization is sought.CommentsClose CommentsPermalink
SEC. 325. ASME NUCLEAR CERTIFICATION CREDIT.
(a) In General- Subpart D of part IV of subchapter A of chapter 1 (relating to business related credits) is amended by adding at the end the following new section:CommentsClose CommentsPermalink
‘SEC. 45O. ASME NUCLEAR CERTIFICATION CREDIT.
‘(a) In General- For purposes of section 38, the ASME Nuclear Certification credit determined under this section for any taxable year is an amount equal to 15 percent of the qualified nuclear expenditures paid or incurred by the taxpayer.CommentsClose CommentsPermalink
‘(b) Qualified Nuclear Expenditures- For purposes of this section, the term ‘qualified nuclear expenditures’ means any expenditure related to--CommentsClose CommentsPermalink
‘(1) obtaining a certification under the American Society of Mechanical Engineers Nuclear Component Certification program, orCommentsClose CommentsPermalink
‘(2) increasing the taxpayer’s capacity to construct, fabricate, assemble, or install components--CommentsClose CommentsPermalink
‘(A) for any facility which uses nuclear energy to produce electricity, andCommentsClose CommentsPermalink
‘(B) with respect to the construction, fabrication, assembly, or installation of which the taxpayer is certified under such program.CommentsClose CommentsPermalink
‘(c) Timing of Credit- The credit allowed under subsection (a) for any expenditures shall be allowed--CommentsClose CommentsPermalink
‘(1) in the case of a qualified nuclear expenditure described in subsection (b)(1), for the taxable year of such certification, andCommentsClose CommentsPermalink
‘(2) in the case of any other qualified nuclear expenditure, for the taxable year in which such expenditure is paid or incurred.CommentsClose CommentsPermalink
‘(d) Special Rules-CommentsClose CommentsPermalink
‘(1) BASIS ADJUSTMENT- For purposes of this subtitle, if a credit is allowed under this section for an expenditure, the increase in basis which would result (but for this subsection) for such expenditure shall be reduced by the amount of the credit allowed under this section.CommentsClose CommentsPermalink
‘(2) DENIAL OF DOUBLE BENEFIT- No deduction shall be allowed under this chapter for any amount taken into account in determining the credit under this section.CommentsClose CommentsPermalink
‘(e) Termination- This section shall not apply to any expenditures paid or incurred in taxable years beginning after December 31, 2019.’.CommentsClose CommentsPermalink
(b) Conforming Amendments- (1) Subsection (b) of section 38 is amended by striking ‘plus’ at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink
‘(32) the ASME Nuclear Certification credit determined under section 45O(a).’.CommentsClose CommentsPermalink
(2) Subsection (a) of section 1016 (relating to adjustments to basis) is amended by striking ‘and’ at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting ‘, and’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink
‘(38) to the extent provided in section 45O(e)(1).’.CommentsClose CommentsPermalink
(c) Effective Date- The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink
Subtitle D--American Renewable and Alternative Energy Trust FundCommentsClose CommentsPermalink
SEC. 331. AMERICAN RENEWABLE AND ALTERNATIVE ENERGY TRUST FUND.
(a) Establishment of Trust Fund- There is established in the Treasury of the United States a trust fund to be known as the ‘American Renewable and Alternative Energy Trust Fund’, consisting of such amounts as may be transferred to the American Renewable and Alternative Energy Trust Fund as provided in section 149 and the amendments made by section 110 of this Act.CommentsClose CommentsPermalink
(b) Expenditures From American Renewable and Alternative Energy Trust Fund-CommentsClose CommentsPermalink
(1) IN GENERAL- Amounts in the American Renewable and Alternative Energy Trust Fund shall be available without further appropriation to carry out specified provisions of the Energy Policy Act of 2005 (
(A) Grants to improve the commercial value of forest biomass for electric energy, useful heat, transportation fuels, and other commercial purposes, section 210 of EPAct2005, 3 percentCommentsClose CommentsPermalink
(B) Hydroelectric production incentives, section 242 of EPAct2005, 2 percent.CommentsClose CommentsPermalink
(C) Oil shale, tar sands, and other strategic unconventional fuels, section 369 of EPAct2005, 3 percent.CommentsClose CommentsPermalink
(D) Clean Coal Power Initiative, section 401 of EPAct2005, 7 percent.CommentsClose CommentsPermalink
(E) Solar and wind technologies, section 812 of EPAct2005, 7 percent.CommentsClose CommentsPermalink
(F) Renewable Energy, section 931of EPAct2005, 20 percent.CommentsClose CommentsPermalink
(G) Production incentives for cellulosic biofuels, section 942 of EPAct2005, 2.5 percent.CommentsClose CommentsPermalink
(H) Coal and related technologies program, section 962 of EPAct2005, 4 percent.CommentsClose CommentsPermalink
(I) Methane hydrate research, section 968 of EPAct2005, 2.5 percent.CommentsClose CommentsPermalink
(J) Incentives for Innovative Technologies, section 1704 of EPAct2005, 7 percent.CommentsClose CommentsPermalink
(K) Grants for production of advanced biofuels, section 207 of EISAct2007, 16 percent.CommentsClose CommentsPermalink
(L) Photovoltaic demonstration program, section 607 EISAct2007, 2.5 percent.CommentsClose CommentsPermalink
(M) Geothermal Energy, title VI, subtitle B of EISAct2007, 4 percent.CommentsClose CommentsPermalink
(N) Marine and Hydrokinetic Renewable Energy Technologies, title VI, subtitle C of EISAct2007, 2.5 percent.CommentsClose CommentsPermalink
(O) Energy storage competitiveness, section 641 of EISAct2007, 10 percent.CommentsClose CommentsPermalink
(P) Smart grid technology research, development, and demonstration, section 1304 of EISAct2007, 7 percent.CommentsClose CommentsPermalink
(2) APPORTIONMENT OF EXCESS AMOUNT- Notwithstanding paragraph (1), any amounts allocated under paragraph (1) that are in excess of the amounts authorized in the applicable cited section or subtitle of EPAct2005 and EISAct2007 shall be reallocated to the remaining sections and subtitles cited in paragraph (1), up to the amounts otherwise authorized by law to carry out such sections and subtitles, in proportion to the amounts authorized by law to be appropriated for such other sections and subtitles.CommentsClose CommentsPermalink
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