HR 6670 IHCommentsClose CommentsPermalink

To open areas of the Outer Continental Shelf to oil and gas leasing, to direct the Commodity Futures Trading Commission to utilize its authority to curb immediately the role of excessive speculation in energy markets, to require sales of light grade petroleum from the Strategic Petroleum Reserve and acquisitions of equivalent volumes of heavy grade petroleum, and for other purposes.CommentsClose CommentsPermalink

July 30, 2008CommentsClose CommentsPermalink

Mr. GENE GREEN of Texas (for himself, Mr. CUELLAR, Mr. DAVIS of Alabama, Mr. ORTIZ, Mr. LAMPSON, Mr. BOREN, Mr. COSTA, Mr. RODRIGUEZ, Mr. CRAMER, Mr. GONZALEZ, Mr. CAZAYOUX, Mr. FOSTER, Mr. ABERCROMBIE, Mr. HINOJOSA, Mr. MELANCON, and Mr. CHILDERS) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on Energy and Commerce, Science and Technology, Transportation and Infrastructure, Education and Labor, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To open areas of the Outer Continental Shelf to oil and gas leasing, to direct the Commodity Futures Trading Commission to utilize its authority to curb immediately the role of excessive speculation in energy markets, to require sales of light grade petroleum from the Strategic Petroleum Reserve and acquisitions of equivalent volumes of heavy grade petroleum, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Long-Term Energy Assurance and Security Enhancement Act of 2008’ or the ‘LEASE Act of 2008’.CommentsClose CommentsPermalink

TITLE I--OUTER CONTINENTAL SHELF OIL AND GAS LEASINGCommentsClose CommentsPermalink

Subtitle A--Offshore Oil and Gas Leasing in Gulf of MexicoCommentsClose CommentsPermalink

SEC. 101. OFFSHORE OIL AND GAS LEASING IN CERTAIN AREAS OF THE GULF OF MEXICO.

(a) Opening of Certain Areas in Eastern Gulf of Mexico to Oil and Gas Leasing-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 104(a) of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is amended--CommentsClose CommentsPermalink





(A) by striking paragraph (1);CommentsClose CommentsPermalink





(B) in paragraph (2), by striking ‘125 miles’ and inserting ‘100 miles’; andCommentsClose CommentsPermalink





(C) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.CommentsClose CommentsPermalink





(2) TERMINATION OF RESTRICTION ON USE OF FUNDS- Section 104 of division F of the Consolidated Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2118) is amended--CommentsClose CommentsPermalink





(A) by inserting ‘and’ after ‘North Atlantic;’; andCommentsClose CommentsPermalink





(B) by striking ‘; and the eastern’ and all that follows and inserting a period.CommentsClose CommentsPermalink





(3) REQUIREMENT TO CONDUCT LEASE SALES- As soon as practicable, but not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary of the Interior shall conduct oil and gas lease sales under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) for areas of the Outer Continental Shelf in the Eastern Gulf of Mexico areas that are available for leasing as a result of the amendments made by paragraph (1).CommentsClose CommentsPermalink





(4) OMISSION FROM LEASING PROGRAM- Areas shall be offered for lease under this subsection notwithstanding the omission of the area from any outer Continental Shelf leasing program under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344).CommentsClose CommentsPermalink





(b) Limitations-CommentsClose CommentsPermalink





(1) COMPLIANCE WITH MEMORANDUM- Any oil and gas leasing of areas of the Outer Continental Shelf in the Eastern Gulf of Mexico that are available for leasing as a result of the amendments made by subsection (a) shall be conducted in accordance with the document entitled ‘Memorandum of Agreement between the Department of Defense and the Department of the Interior on Mutual Concerns On The Outer Continental Shelf’ and dated July 2, 1983, and such revisions thereto as may be agreed to by the Secretary of Defense and the Secretary of the Interior.CommentsClose CommentsPermalink





(2) MILITARY MISSION LINE- Notwithstanding subsection (a), the United States reserves the right to designate by and through the Secretary of Defense, with the approval of the President, national defense areas on the Outer Continental Shelf pursuant to section 12(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 1341(d)).CommentsClose CommentsPermalink

SEC. 102. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES.

(a) In General- Notwithstanding section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) and subject to the other provisions of this section, for each applicable fiscal year, the Secretary of the Treasury shall deposit--CommentsClose CommentsPermalink





(1) 25 percent of qualified Outer Continental Shelf revenues in the general fund of the Treasury;CommentsClose CommentsPermalink





(2) 25 percent of qualified Outer Continental Shelf revenues in the Energy Independence and Security Fund established by section 131; andCommentsClose CommentsPermalink





(3) 50 percent of qualified Outer Continental Shelf revenues in a special account in the Treasury, from which the Secretary shall disburse--CommentsClose CommentsPermalink





(A) 75 percent to Gulf producing States in accordance with subsection (b); andCommentsClose CommentsPermalink





(B) 25 percent to provide financial assistance to States in accordance with section 6 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8), which shall be considered income to the Land and Water Conservation Fund for purposes of section 2 of that Act (16 U.S.C. 460l-5).CommentsClose CommentsPermalink





(b) Allocation Among Gulf Producing States and Coastal Political Subdivisions-CommentsClose CommentsPermalink





(1) ALLOCATION AMONG GULF PRODUCING STATES-CommentsClose CommentsPermalink





(A) IN GENERAL- Subject to subparagraph (B), effective for each fiscal year after fiscal year 2007, the amount made available under subsection (a)(2)(A) shall be allocated to each Gulf producing State in amounts (based on a formula established by the Secretary by regulation) that are inversely proportional to the respective distances between the point on the coastline of each Gulf producing State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract.CommentsClose CommentsPermalink





(B) MINIMUM ALLOCATION- The amount allocated to a Gulf producing State each fiscal year under subparagraph (A) shall be at least 10 percent of the amounts available under subsection (a)(2)(A).CommentsClose CommentsPermalink





(2) PAYMENTS TO COASTAL POLITICAL SUBDIVISIONS-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary shall pay 20 percent of the allocable share of each Gulf producing State, as determined under paragraph (1), to the coastal political subdivisions of the Gulf producing State.CommentsClose CommentsPermalink





(B) ALLOCATION- The amount paid by the Secretary to coastal political subdivisions under this paragraph shall be allocated to each coastal political subdivision in accordance with subparagraphs (B), (C), and (E) of section 31(b)(4) of the Outer Continental Shelf Lands Act (43 U.S.C. 1356a(b)(4)).CommentsClose CommentsPermalink





(c) Timing- The amounts required to be deposited under paragraph (2) of subsection (a) for the applicable fiscal year shall be made available in accordance with that paragraph during the fiscal year immediately following the applicable fiscal year.CommentsClose CommentsPermalink





(d) Authorized Uses-CommentsClose CommentsPermalink





(1) IN GENERAL- Subject to paragraph (2), each Gulf producing State and coastal political subdivision shall use all amounts received under subsection (b) in accordance with all applicable Federal and State laws, only for 1 or more of the following purposes:CommentsClose CommentsPermalink





(A) Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses.CommentsClose CommentsPermalink





(B) Mitigation of damage to fish, wildlife, or natural resources.CommentsClose CommentsPermalink





(C) Implementation of a federally approved marine, coastal, or comprehensive conservation management plan.CommentsClose CommentsPermalink





(D) Mitigation of the impact of Outer Continental Shelf activities through the funding of onshore infrastructure projects.CommentsClose CommentsPermalink





(E) Planning assistance and the administrative costs of complying with this section.CommentsClose CommentsPermalink





(2) LIMITATION- Not more than 3 percent of amounts received by a Gulf producing State or coastal political subdivision under subsection (b) may be used for the purposes described in paragraph (1)(E).CommentsClose CommentsPermalink





(e) Administration- Amounts made available under subsection (a)(2) shall--CommentsClose CommentsPermalink





(1) be made available, without further appropriation, in accordance with this section;CommentsClose CommentsPermalink





(2) remain available until expended; andCommentsClose CommentsPermalink





(3) be in addition to any amounts appropriated under--CommentsClose CommentsPermalink





(A) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.);CommentsClose CommentsPermalink





(B) the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.); orCommentsClose CommentsPermalink





(C) any other provision of law.CommentsClose CommentsPermalink





(f) Limitations on Amount of Distributed Qualified Outer Continental Shelf Revenues-CommentsClose CommentsPermalink





(1) IN GENERAL- Subject to paragraph (2), the total amount of qualified Outer Continental Shelf revenues made available under subsection (a)(2) shall not exceed $500,000,000 for each of fiscal years 2016 through 2055.CommentsClose CommentsPermalink





(2) PRO RATA REDUCTIONS- If paragraph (1) limits the amount of qualified Outer Continental Shelf revenue that would be paid under subparagraphs (A) and (B) of subsection (a)(2)--CommentsClose CommentsPermalink





(A) the Secretary shall reduce the amount of qualified Outer Continental Shelf revenue provided to each recipient on a pro rata basis; andCommentsClose CommentsPermalink





(B) any remainder of the qualified Outer Continental Shelf revenues shall revert to the general fund of the Treasury.CommentsClose CommentsPermalink

SEC. 103. DEFINITIONS.

In this subtitle:CommentsClose CommentsPermalink





(1) COASTAL POLITICAL SUBDIVISION- The term ‘coastal political subdivision’ means a political subdivision of a Gulf producing State any part of which political subdivision is--CommentsClose CommentsPermalink





(A) within the coastal zone (as defined in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of the Gulf producing State as of the date of enactment of this Act; andCommentsClose CommentsPermalink





(B) not more than 200 nautical miles from the geographic center of any leased tract.CommentsClose CommentsPermalink





(2) GULF PRODUCING STATE- The term ‘Gulf producing State’ means each of the States of Alabama, Florida, Louisiana, Mississippi, and Texas.CommentsClose CommentsPermalink





(3) MILITARY MISSION LINE- The term ‘Military Mission Line’ means the north-south line at 86«41CommentsClose CommentsPermalink

031’31CommentsClose CommentsPermalink

031’CommentsClose CommentsPermalink

031’ W. longitude.CommentsClose CommentsPermalink

(4) OUTER CONTINENTAL SHELF- The term ‘Outer Continental Shelf’ has the meaning given the term ‘outer Continental Shelf’ under section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331).CommentsClose CommentsPermalink





(5) QUALIFIED OUTER CONTINENTAL SHELF REVENUES-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as provided in subparagraph (B), the term ‘qualified Outer Continental Shelf revenues’ means all rentals, royalties, bonus bids, and other sums due and payable to the United States under oil and gases leases of the Outer Continental Shelf issued as a result of enactment of this subtitle.CommentsClose CommentsPermalink





(B) EXCLUSIONS- The term ‘qualified Outer Continental Shelf revenues’ does not include--CommentsClose CommentsPermalink





(i) revenues from the forfeiture of a bond or other surety securing obligations other than royalties, civil penalties, or royalties taken by the Secretary in-kind and not sold; orCommentsClose CommentsPermalink





(ii) revenues generated from leases subject to section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)).CommentsClose CommentsPermalink





(6) SECRETARY- The term ‘Secretary’ means the Secretary of the Interior.CommentsClose CommentsPermalink

SEC. 104. PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF THE NATURAL RESOURCES OF THE OUTER CONTINENTAL SHELF.

The Secretary of the Interior shall ensure that any activity under this subtitle is carried out in a manner that provides for the protection of the environment and the conservation of the natural resources of the Outer Continental Shelf, and shall review all otherwise applicable regulations to ensure environmentally sound oil and gas operations on the Outer Continental Shelf.CommentsClose CommentsPermalink

Subtitle B--Offshore Oil and Gas Leasing Outside Gulf of MexicoCommentsClose CommentsPermalink

SEC. 121. ESTABLISHMENT OF PROJECTED SEAWARD LATERAL STATE BOUNDARY LINES ON THE OCS.

Not later than one year after the date of the enactment of this Act, the Secretary of the Interior shall by regulation delineate the lateral boundaries between coastal states in areas of the Outer Continental Shelf that are outside the Gulf of Mexico and that are under exclusive Federal jurisdiction for purposes of leasing of areas for exploration, development, and production of oil and natural gas.CommentsClose CommentsPermalink

SEC. 122. ASSESSMENTS OF OIL AND GAS RESOURCES OF THE OCS.

(a) In General- On or after the effective date of regulations issued by the Secretary of the Interior under section 121, the Governor of a coastal State may, if authorized by a law of the State enacted after the date of enactment of this Act, submit to the Secretary of the Interior a request that the Secretary conduct an assessment of the oil and gas resources of any areas of the Outer Continental Shelf located--CommentsClose CommentsPermalink





(1) outside the Gulf of Mexico;CommentsClose CommentsPermalink





(2) within the seaward lateral boundaries of the State; andCommentsClose CommentsPermalink





(3) between 25 miles and 100 miles from the coastline of the State.CommentsClose CommentsPermalink





(b) Assessment Options- A State may request that the assessment be based on--CommentsClose CommentsPermalink





(1) new data using the best available technology, including seismic technology but not including drilling; orCommentsClose CommentsPermalink





(2) the best available data that exists on the date the request is approved.CommentsClose CommentsPermalink





(c) Action by Secretary- Not later than the end of the 90-day period beginning on the date of receipt of a request under this section, the Secretary shall--CommentsClose CommentsPermalink





(1) if the request is made pursuant to subsection (b)(1)--CommentsClose CommentsPermalink





(A) approve the request; orCommentsClose CommentsPermalink





(B) disapprove the request if the Secretary determines that a resource assessment would create unreasonable risk of harm to the marine, human, or coastal environment of the State; orCommentsClose CommentsPermalink





(2) approve the request if the request is made pursuant to subsection (b)(2).CommentsClose CommentsPermalink





(d) Completion of Assessment- The Secretary shall--CommentsClose CommentsPermalink





(1) in the case of an assessment requested pursuant to subsection (b)(1)--CommentsClose CommentsPermalink





(A) complete the resource assessment within 5 years after the date on which the request is approved; andCommentsClose CommentsPermalink





(B) submit annual progress reports on the assessment to the State and to the Congress; andCommentsClose CommentsPermalink





(2) in the case of an assessment requested pursuant to subsection (b)(2), complete the assessment within one year after the date on which the request is approved.CommentsClose CommentsPermalink

SEC. 123. TERMINATION OF MORATORIA AND WITHDRAWAL.

(a) Termination of Moratoria and Withdrawals- All provisions of Federal law that prohibit the expenditure of appropriated funds to conduct oil and natural gas leasing and preleasing activities shall have no force or effect--CommentsClose CommentsPermalink





(1) with respect to any area of the Outer Continental Shelf located outside the Gulf of Mexico and more than 100 miles from the coastline, effective upon the enactment of this Act; andCommentsClose CommentsPermalink





(2) with respect to any area of the Outer Continental Shelf located outside the Gulf of Mexico within the area that is the subject of a request of a coastal state authorized under subsection (b), effective upon the date the request is approved (or deemed approved) in accordance with that subsection.CommentsClose CommentsPermalink





(b) Option To Request Leasing-CommentsClose CommentsPermalink





(1) IN GENERAL- On or after the effective date of regulations issued by the Secretary of the Interior under section 121, the Governor of a coastal State may, if authorized by a law of the coastal State enacted after the date of the enactment of this Act, submit to the Secretary of the Interior a request that the Secretary conduct oil and gas leasing of any area of the Outer Continental Shelf under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) that is located--CommentsClose CommentsPermalink





(A) outside the Gulf of Mexico;CommentsClose CommentsPermalink





(B) within the seaward lateral boundaries of the State; andCommentsClose CommentsPermalink





(C) between 25 miles and 100 miles from the coastline.CommentsClose CommentsPermalink





(2) ACTION BY SECRETARY- Not later than the end of the 2-year period beginning on the date of receipt of a request under paragraph (1), the Secretary shall--CommentsClose CommentsPermalink





(A) approve the request; orCommentsClose CommentsPermalink





(B) disapprove the request if the Secretary determines that leasing would create unreasonable risk of harm to the marine, human, or coastal environment of the State.CommentsClose CommentsPermalink





(3) FAILURE TO ACT- If Secretary fails to approve or disapprove a request under paragraph (1) within the period described in paragraph (2), the Secretary is deemed to have approved the request.CommentsClose CommentsPermalink





(c) Initiation of Leasing- The Secretary shall conduct leasing of each area of the Outer Continental Shelf that is available for leasing as a result of the enactment of subsection (a) by as soon as possible after the date the area is available.CommentsClose CommentsPermalink





(d) Omission From Leasing Program- Areas shall be offered for lease under this section notwithstanding the omission of the areas from any outer Continental Shelf leasing program under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344)CommentsClose CommentsPermalink

SEC. 124. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES.

(a) In General- Notwithstanding section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) and subject to the other provisions of this section, for each applicable fiscal year, the Secretary of the Treasury shall deposit--CommentsClose CommentsPermalink





(1) 25 percent of qualified Outer Continental Shelf revenues in the general fund of the Treasury;CommentsClose CommentsPermalink





(2) 25 percent of qualified Outer Continental Shelf revenues in the Energy Independence and Security Fund established by section 131; andCommentsClose CommentsPermalink





(3) 50 percent of qualified Outer Continental Shelf revenues in a special account in the Treasury from which the Secretary shall disburse--CommentsClose CommentsPermalink





(A) 75 percent to States in accordance with subsection (b); andCommentsClose CommentsPermalink





(B) 25 percent to provide financial assistance to States in accordance with section 6 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8), which shall be considered income to the Land and Water Conservation Fund for purposes of section 2 of that Act (16 U.S.C. 460l-5).CommentsClose CommentsPermalink





(b) Allocation Among States and Coastal Political Subdivisions-CommentsClose CommentsPermalink





(1) ALLOCATION AMONG PRODUCING STATES-CommentsClose CommentsPermalink





(A) REVENUES ATTRIBUTABLE TO LEASE TRACTS LOCATED WITHIN 100 MILES OF THE COASTLINE- Subject to subparagraph (C), effective for each fiscal year after fiscal year 2007, the amount made available under subsection (a)(3)(A) that is attributable to leased tracts located within 100 miles of the coastline shall be allocated to producing States in amounts (determined under a formula established by the Secretary by regulation) that are inversely proportional to the respective distances between the point on the coastline of each producing State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract.CommentsClose CommentsPermalink





(B) REVENUES ATTRIBUTABLE TO LEASE TRACTS LOCATED MORE THAN 100 MILES FROM THE COASTLINE- Subject to subparagraph (C), effective for each fiscal year after fiscal year 2007, the amount made available under subsection (a)(3)(A) that is attributable to a leased tract located more than 100 miles from the coastline shall be allocated to States having a point on the coastline that is within 200 miles of the geographic center of the leased tract, in amounts (determined under a formula established by the Secretary by regulation) that are inversely proportional to the respective distances between the point on the coastline of each State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract.CommentsClose CommentsPermalink





(C) MINIMUM ALLOCATION- The amount allocated to a State each fiscal year under each of subparagraphs (A) and (B) shall be at least 5 percent of the amounts allocated under that subparagraph for that fiscal year.CommentsClose CommentsPermalink





(2) PAYMENTS TO COASTAL POLITICAL SUBDIVISIONS-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary shall pay 20 percent of the allocable share of each State, as determined under paragraph (1), to the coastal political subdivisions of the State.CommentsClose CommentsPermalink





(B) ALLOCATION- The amount paid by the Secretary to coastal political subdivisions under this paragraph shall be allocated to each coastal political subdivision in accordance with subparagraphs (B), (C), and (E) of section 31(b)(4) of the Outer Continental Shelf Lands Act (43 U.S.C. 1356a(b)(4)).CommentsClose CommentsPermalink





(c) Timing- The amounts required to be deposited under paragraph (2) of subsection (a) for the applicable fiscal year shall be made available in accordance with that paragraph during the fiscal year immediately following the applicable fiscal year.CommentsClose CommentsPermalink





(d) Authorized Uses-CommentsClose CommentsPermalink





(1) IN GENERAL- Subject to paragraph (2), each State and coastal political subdivision shall use all amounts received under subsection (b) in accordance with all applicable Federal and State laws, only for 1 or more of the following purposes:CommentsClose CommentsPermalink





(A) Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses.CommentsClose CommentsPermalink





(B) Mitigation of damage to fish, wildlife, or natural resources.CommentsClose CommentsPermalink





(C) Implementation of a federally approved marine, coastal, or comprehensive conservation management plan.CommentsClose CommentsPermalink





(D) Mitigation of the impact of Outer Continental Shelf activities through the funding of onshore infrastructure projects.CommentsClose CommentsPermalink





(E) Planning assistance and the administrative costs of complying with this section.CommentsClose CommentsPermalink





(2) LIMITATION- Not more than 3 percent of amounts received by a State or coastal political subdivision under subsection (b) may be used for the purposes described in paragraph (1)(E).CommentsClose CommentsPermalink





(e) Administration- Amounts made available under subsection (a)(2) shall--CommentsClose CommentsPermalink





(1) be made available, without further appropriation, in accordance with this section;CommentsClose CommentsPermalink





(2) remain available until expended; andCommentsClose CommentsPermalink





(3) be in addition to any amounts appropriated under--CommentsClose CommentsPermalink





(A) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.);CommentsClose CommentsPermalink





(B) the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.); orCommentsClose CommentsPermalink





(C) any other provision of law.CommentsClose CommentsPermalink

SEC. 125. PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF THE NATURAL RESOURCES OF THE OUTER CONTINENTAL SHELF.

The Secretary of the Interior shall ensure that any activity under this subtitle is carried out in a manner that provides for the protection of the environment and the conservation of the natural resources of the Outer Continental Shelf, and shall review all otherwise applicable regulations to ensure environmentally sound oil and gas operations on the Outer Continental Shelf.CommentsClose CommentsPermalink

SEC. 126. DEFINITIONS.

In this subtitle:CommentsClose CommentsPermalink





(1) COASTAL POLITICAL SUBDIVISION- The term ‘coastal political subdivision’ means a political subdivision of a State any part of which political subdivision is--CommentsClose CommentsPermalink





(A) within the coastal zone (as defined in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of the State as of the date of enactment of this Act; andCommentsClose CommentsPermalink





(B) not more than 200 nautical miles from the geographic center of any leased tract.CommentsClose CommentsPermalink





(2) OUTER CONTINENTAL SHELF- The term ‘Outer Continental Shelf’ has the meaning the term ‘outer Continental Shelf’ under section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331).CommentsClose CommentsPermalink





(3) PRODUCING STATE- The term ‘producing State’--CommentsClose CommentsPermalink





(A) means any State within the lateral boundaries of which (as determined under section 121) there is any tract that is subject to a Federal oil and gas lease issued as a result of enactment of this subtitle; andCommentsClose CommentsPermalink





(B) does not include the States of Alabama, Louisiana, Mississippi, and Texas.CommentsClose CommentsPermalink





(4) QUALIFIED OUTER CONTINENTAL SHELF REVENUES-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as provided in subparagraph (B), the term ‘qualified Outer Continental Shelf revenues’ means all rentals, royalties, bonus bids, and other sums due and payable to the United States under oil and gases leases of the Outer Continental Shelf issued as a result of enactment of this subtitle.CommentsClose CommentsPermalink





(B) EXCLUSIONS- The term ‘qualified Outer Continental Shelf revenues’ does not include--CommentsClose CommentsPermalink





(i) revenues from the forfeiture of a bond or other surety securing obligations other than royalties, civil penalties, or royalties taken by the Secretary in-kind and not sold; orCommentsClose CommentsPermalink





(ii) revenues generated from leases subject to section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)).CommentsClose CommentsPermalink





(5) SECRETARY- The term ‘Secretary’ means the Secretary of the Interior.CommentsClose CommentsPermalink

Subtitle C--Energy Independence and Security FundCommentsClose CommentsPermalink

SEC. 131. ENERGY INDEPENDENCE AND SECURITY FUND.

(a) Establishment- There is established in the Treasury a separate account which shall be known as the Energy Independence and Security Fund.CommentsClose CommentsPermalink





(b) Contents- The account shall consist of such amounts as are deposited into it under this title.CommentsClose CommentsPermalink





(c) Distribution of Funds- There shall be transferred from the Fund each fiscal year and available for expenditure, without further appropriation and without fiscal year limitation, all of the amounts deposited into the Fund in that fiscal year, in equal amounts, as follows:CommentsClose CommentsPermalink





(1) ASSESSMENT OF OIL AND GAS RESOURCES- An amount to the Secretary of the Interior for assessments of oil and gas resources under section 122.CommentsClose CommentsPermalink





(2) WIND ENERGY RESEARCH AND DEVELOPMENT- An amount to the account ‘Energy Efficiency and Renewable Energy’, to remain available until expended, for necessary expenses for a program to support the development of next-generation wind turbines, including turbines capable of operating in areas with low wind speeds, as authorized in section 931(a)(2)(B) of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(B)).CommentsClose CommentsPermalink





(3) SOLAR ENERGY RESEARCH AND DEVELOPMENT- An amount to the account ‘Energy Efficiency and Renewable Energy’, to remain available until expended, for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of solar energy technologies, and public education and outreach materials pursuant to such program, as authorized by section 931(a)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(A)).CommentsClose CommentsPermalink





(4) LOW INCOME WEATHERIZATION- An amount to the account ‘Weatherization Assistance Program’, to remain available until expended, for necessary expenses for a program to weatherize low income housing, as authorized by section 411 of the Energy Independence and Security Act of 2007 (Public Law 110-140).CommentsClose CommentsPermalink





(5) MARINE AND HYDROKINETIC RENEWABLE ELECTRIC ENERGY- An amount to the account ‘Energy Efficiency and Renewable Energy’, to remain available until expended, for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of ocean and wave energy, including hydrokinetic renewable energy, as authorized by section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) and section 636 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17215).CommentsClose CommentsPermalink





(6) ADVANCED RESEARCH PROJECTS AGENCY--ENERGY- An amount to the account ‘Energy Transformation Acceleration Fund’, established under section 5012(m) of the America COMPETES Act (42 U.S.C. 16538(m), to remain available until expended.CommentsClose CommentsPermalink





(7) ADVANCED VEHICLES RESEARCH, DEVELOPMENT, AND DEMONSTRATION- An amount to the account ‘Energy Efficiency and Renewable Energy’, to remain available until expended, for necessary expenses for research, development, and demonstration on advanced, cost-effective technologies to improve the energy efficiency and environmental performance of vehicles, as authorized in section 911(a)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 16191(a)(2)(A)).CommentsClose CommentsPermalink





(8) GEOTHERMAL ENERGY DEVELOPMENT- An amount to the account ‘Energy Efficiency and Renewable Energy’, to remain available until expended, for necessary expenses for geothermal research and development activities to be managed by the National Renewable Energy Laboratory, as authorized by sections 613, 614, 615, and 616 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17192-95) and section 931(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(C)).CommentsClose CommentsPermalink





(9) CARBON CAPTURE AND STORAGE- An amount to the account ‘Fossil Energy Research and Development’, to remain available until expended, for necessary expenses for a program of demonstration projects of carbon capture and storage, and for a research program to address public health, safety, and environmental impacts, as authorized by section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) and sections 703 and 707 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17251, 17255).CommentsClose CommentsPermalink





(10) NONCONVENTIONAL DOMESTIC NATURAL GAS PRODUCTION AND ENVIRONMENTAL RESEARCH-CommentsClose CommentsPermalink





(A) An amount to the account authorized by section 999H(e) of the Energy Policy Act of 2005 (42 U.S.C. 16378(e)), to remain available until expended.CommentsClose CommentsPermalink





(B) An amount to the account ‘Fossil Energy Research and Development’, to remain available until expended, for necessary expenses for a program of basin-oriented assessments and public and private partnerships involving States and industry to foster the development of regional advanced technological, regulatory, and economic development strategies for the efficient and environmentally sustainable recovery and market delivery of natural gas and domestic petroleum resources within the United States, and for support for the Stripper Well Consortium.CommentsClose CommentsPermalink





(11) HYDROGEN RESEARCH AND DEVELOPMENT- An amount to the account ‘Energy Efficiency and Renewable Energy’, to remain available until expended, for necessary expenses for the Department of Energy’s H-Prize Program, as authorized by section 1008(f) of the Energy Policy Act of 2005 (42 U.S.C. 16396(f)).CommentsClose CommentsPermalink





(12) ENERGY STORAGE FOR TRANSPORTATION AND ELECTRIC POWER-CommentsClose CommentsPermalink





(A) An amount to the account ‘Basic Energy Sciences’, to remain available until expended, for necessary expenses for a program to accelerate basic research on energy storage systems to support electric drive vehicles, stationary applications, and electricity transmission and distribution, as authorized by section 641(p)(1) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(1)).CommentsClose CommentsPermalink





(B) An amount to the account ‘Energy Efficiency and Renewable Energy’, to remain available until expended, including--CommentsClose CommentsPermalink





(i) for a program to accelerate applied research on energy storage systems to support electric drive vehicles, stationary applications, and electricity transmission and distribution as authorized by section 641(p)(2) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(2));CommentsClose CommentsPermalink





(ii) for energy storage systems demonstrations as authorized by section 641(p)(4) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(4)); andCommentsClose CommentsPermalink





(iii) for vehicle energy storage systems demonstrations as authorized by section 641(p)(5) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(5)).CommentsClose CommentsPermalink





(13) LOW INCOME HOME ENERGY ASSISTANCE PROGRAMS- An amount to the Secretary of Health and Human Services for allotment under section 2604(a) through (d) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623(a)-(d)).CommentsClose CommentsPermalink





(14) INDUSTRIAL ENERGY EFFICIENCY RESEARCH AND DEVELOPMENT- An amount to the account ‘Energy Efficiency and Renewable Energy’, to remain available until expended, for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of new technologies to improve the energy efficiency and reduce greenhouse gas emissions from industrial processes, as authorized in section 911(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C. 16191(a)(2)(C)) and in section 452 of the Energy Independence and Security Act of 2007 (Public Law 110-40).CommentsClose CommentsPermalink





(15) BUILDING ENERGY EFFICIENCY RESEARCH AND DEVELOPMENT- An amount to the account ‘Energy Efficiency and Renewable Energy’, to remain available until expended, for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of new technologies to improve the energy efficiency and reduce greenhouse gas emissions from buildings, as authorized in section 422 of the Energy Independence and Security Act of 2007 (Public Law 110-140).CommentsClose CommentsPermalink





(16) PUBLIC TRANSPORTATION URBANIZED AREA FORMULA GRANTS- An amount to the Secretary of Transportation, to remain available until expended, for necessary expenses for a program to promote public transportation in urbanized areas, as authorized by section 5307 of such title, which shall be apportioned in accordance with section 5336 (other than subsections (i)(1) and (j)) of such title.CommentsClose CommentsPermalink





(17) PUBLIC TRANSPORTATION FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS- An amount to the Secretary of Transportation, to remain available until expended, for necessary expenses for a program to promote public transportation in areas other than urbanized areas, as authorized by section 5311 of such title, which shall be apportioned in accordance with such section 5311.CommentsClose CommentsPermalink

TITLE II--CURBING SPECULATION IN ENERGY MARKETSCommentsClose CommentsPermalink

SEC. 201. SHORT TITLE.

This title may be cited as the ‘Energy Markets Emergency Act of 2008’.CommentsClose CommentsPermalink

SEC. 202. ENERGY MARKETS.

(a) Findings- The Congress finds as follows:CommentsClose CommentsPermalink





(1) The Commodity Futures Trading Commission was created as an independent agency, in 1974, with the mandate to enforce and administer the Commodity Exchange Act, to ensure market integrity, to protect market users from fraud and abusive trading practices, and to prevent and prosecute manipulation of the price of any commodity in interstate commerce.CommentsClose CommentsPermalink





(2) Congress has given the Commodity Futures Trading Commission authority under the Commodity Exchange Act to take necessary actions to address market emergencies.CommentsClose CommentsPermalink





(3) The Commodity Futures Trading Commission may use its emergency authority with respect to any major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for a commodity.CommentsClose CommentsPermalink





(4) Congress has declared, in section 4a of the Commodity Exchange Act, that excessive speculation imposes an undue and unnecessary burden on interstate commerce.CommentsClose CommentsPermalink





(5) On June 6, 2008, the price of crude oil traded on the New York Mercantile Exchange hit an all-time record of $139.12 per barrel.CommentsClose CommentsPermalink





(6) The average price of a barrel of crude oil in 2007 was $72, and the average price of a barrel of crude oil to date in 2008 is $109.CommentsClose CommentsPermalink





(7) Heating oil futures contracts have risen in price from $2.97 to $3.81 during the March through May contract months.CommentsClose CommentsPermalink





(8) United States airlines are forecast to spend $61,200,000,000 on jet fuel in 2008, which is $20,000,000,000 more than they spent for jet fuel in 2007.CommentsClose CommentsPermalink





(9) According to the American Automobile Association--CommentsClose CommentsPermalink





(A) families and businesses are paying an average of $4.07 per gallon for regular gasoline, which is near the all-time high and is more than double the price in 2001; andCommentsClose CommentsPermalink





(B) truckers and farmers are paying an average of $4.77 per gallon for diesel fuel, which is near the all-time high and triple the price in 2001.CommentsClose CommentsPermalink





(10) During this decade, energy demand has been steadily on the rise in nations such as China and other Asian exporting nations.CommentsClose CommentsPermalink





(11) In a May 2008 report, the International Monetary Fund raised the possibility that speculation has played a significant role in the run-up of oil prices, and stated ‘It is hard to explain current oil prices in terms of fundamentals alone. The recent surge in the oil price seems to go well beyond what would be indicated by the growth of the world economy.’.CommentsClose CommentsPermalink





(b) Direction From Congress- The Commodity Futures Trading Commission shall utilize all its authority, including its emergency powers, to--CommentsClose CommentsPermalink





(1) curb immediately the role of excessive speculation in any contract market within the jurisdiction and control of the Commodity Futures Trading Commission, on or through which energy futures or swaps are traded; andCommentsClose CommentsPermalink





(2) eliminate excessive speculation, price distortion, sudden or unreasonable fluctuations or unwarranted changes in prices, or other unlawful activity that is causing major market disturbances that prevent the market from accurately reflecting the forces of supply and demand for energy commodities.CommentsClose CommentsPermalink

TITLE III--SALES FROM STRATEGIC PETROLEUM RESERVECommentsClose CommentsPermalink

SEC. 301. SHORT TITLE.

This title may be cited as the ‘Consumer Energy Supply Act of 2008’.CommentsClose CommentsPermalink

SEC. 302. DEFINITIONS.

In this title--CommentsClose CommentsPermalink





(1) the term ‘light grade petroleum’ means crude oil with an API gravity of 30 degrees or higher;CommentsClose CommentsPermalink





(2) the term ‘heavy grade petroleum’ means crude oil with an API gravity of 26 degrees or lower; andCommentsClose CommentsPermalink





(3) the term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink

SEC. 303. SALE AND REPLACEMENT OF OIL FROM THE STRATEGIC PETROLEUM RESERVE.

(a) Initial Petroleum Sale and Replacement- Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), the Secretary shall publish a plan not later than 15 days after the date of enactment of this Act to--CommentsClose CommentsPermalink





(1) sell, in the amounts and on the schedule described in subsection (b), light grade petroleum from the Strategic Petroleum Reserve and acquire an equivalent volume of heavy grade petroleum;CommentsClose CommentsPermalink





(2) deposit the cash proceeds from sales under paragraph (1) into the SPR Petroleum Account established under section 167 of the Energy Policy and Conservation Act (42 U.S.C. 6247); andCommentsClose CommentsPermalink





(3) from the cash proceeds deposited pursuant to paragraph (2), withdraw the amount necessary to pay for the direct administrative and operational costs of the sale and acquisition.CommentsClose CommentsPermalink





(b) Amounts and Schedule- The sale and acquisition described in subsection (a) shall require the offer for sale of a total quantity of 70,000,000 barrels of light grade petroleum from the Strategic Petroleum Reserve. The sale shall commence, whether or not a plan has been published under subsection (a), not later than 30 days after the date of enactment of this Act and be completed no more than six months after the date of enactment of this Act, with at least 20,000,000 barrels to be offered for sale within the first 60 days after the date of enactment of this Act. In no event shall the Secretary sell barrels of oil under subsection (a) that would result in a Strategic Petroleum Reserve that contains fewer than 90 percent of the total amount of barrels in the Strategic Petroleum Reserve as of the date of enactment of this Act. Heavy grade petroleum, to replace the quantities of light grade petroleum sold under this section, shall be obtained through acquisitions which--CommentsClose CommentsPermalink





(1) shall commence no sooner than 6 months after the date of enactment of this Act;CommentsClose CommentsPermalink





(2) shall be completed, at the discretion of the Secretary, not later than 5 years after the date of enactment of this Act;CommentsClose CommentsPermalink





(3) shall be carried out in a manner so as to maximize the monetary value to the Federal Government; andCommentsClose CommentsPermalink





(4) shall be carried out using the receipts from the sales of light grade petroleum authorized under this section.CommentsClose CommentsPermalink





(c) Deferrals- The Secretary is encouraged to, when economically beneficial and practical, grant requests to defer scheduled deliveries of petroleum to the Reserve under subsection (a) if the deferral will result in a premium paid in additional barrels of oil which will reduce the cost of oil acquisition and increase the volume of oil delivered to the Reserve or yield additional cash bonuses.CommentsClose CommentsPermalink