S 2973 PCSCommentsClose CommentsPermalink

To promote the energy security of the United States, and for other purposes.CommentsClose CommentsPermalink

May 2, 2008

Mr. DOMENICI (for himself, Mr. BUNNING, Mr. SESSIONS, Mrs. HUTCHISON, Mr. BOND, Mr. INHOFE, Ms. MURKOWSKI, Mr. BARRASSO, Mr. BENNETT, Mr. WICKER, Mr. CHAMBLISS, Mr. STEVENS, Mr. CORNYN, Mr. ENZI, Mr. ISAKSON, Mr. THUNE, Mr. VOINOVICH, and Mr. ALLARD) introduced the following bill; which was read the first timeCommentsClose CommentsPermalink

May 6, 2008

Read the second time and placed on the calendarCommentsClose CommentsPermalink

To promote the energy security of the United States, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `American Energy Production Act of 2008'.CommentsClose CommentsPermalink





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





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





Sec. 2. Definition of Secretary.CommentsClose CommentsPermalink

TITLE I--TRADITIONAL RESOURCES

Subtitle A--Outer Continental Shelf

Sec. 101. Publication of projected State lines on outer Continental Shelf.CommentsClose CommentsPermalink





Sec. 102. Production of oil and natural gas in new producing areas.CommentsClose CommentsPermalink





Sec. 103. Conforming amendment.CommentsClose CommentsPermalink

Subtitle B--Leasing Program for Land Within Coastal Plain

Sec. 111. Definitions.CommentsClose CommentsPermalink





Sec. 112. Leasing program for land within the Coastal Plain.CommentsClose CommentsPermalink





Sec. 113. Lease sales.CommentsClose CommentsPermalink





Sec. 114. Grant of leases by the Secretary.CommentsClose CommentsPermalink





Sec. 115. Lease terms and conditions.CommentsClose CommentsPermalink





Sec. 116. Coastal plain environmental protection.CommentsClose CommentsPermalink





Sec. 117. Expedited judicial review.CommentsClose CommentsPermalink





Sec. 118. Rights-of-way and easements across Coastal Plain.CommentsClose CommentsPermalink





Sec. 119. Conveyance.CommentsClose CommentsPermalink





Sec. 120. Local government impact aid and community service assistance.CommentsClose CommentsPermalink





Sec. 121. Prohibition on exports.CommentsClose CommentsPermalink





Sec. 122. Allocation of revenues.CommentsClose CommentsPermalink

Subtitle C--Permitting

Sec. 131. Refinery permitting process.CommentsClose CommentsPermalink





Sec. 132. Removal of additional fee for new applications for permits to drill.CommentsClose CommentsPermalink

Subtitle D--Strategic Petroleum Reserve

Sec. 141. Suspension of petroleum acquisition for Strategic Petroleum Reserve.CommentsClose CommentsPermalink

Subtitle E--Restoration of State Revenue

Sec. 151. Restoration of State revenue.CommentsClose CommentsPermalink

TITLE II--ALTERNATIVE RESOURCES

Subtitle A--Renewable Fuel and Advanced Energy Technology

Sec. 201. Definition of renewable biomass.CommentsClose CommentsPermalink





Sec. 202. Advanced battery manufacturing incentive program.CommentsClose CommentsPermalink





Sec. 203. Biofuels infrastructure and additives research and development.CommentsClose CommentsPermalink





Sec. 204. Study of increased consumption of ethanol-blended gasoline with higher levels of ethanol.CommentsClose CommentsPermalink





Sec. 205. Study of diesel vehicle attributes.CommentsClose CommentsPermalink

Subtitle B--Clean Coal-Derived Fuels for Energy Security

Sec. 211. Short title.CommentsClose CommentsPermalink





Sec. 212. Definitions.CommentsClose CommentsPermalink





Sec. 213. Clean coal-derived fuel program.CommentsClose CommentsPermalink

Subtitle C--Oil Shale

Sec. 221. Removal of prohibition on final regulations for commercial leasing program for oil shale resources on public land.CommentsClose CommentsPermalink

Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel Development

Sec. 231. Procurement and acquisition of alternative fuels.CommentsClose CommentsPermalink





Sec. 232. Multiyear contract authority for the Department of Defense for the procurement of synthetic fuels.CommentsClose CommentsPermalink

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term `Secretary' means the Secretary of Energy.CommentsClose CommentsPermalink

TITLE I--TRADITIONAL RESOURCES

Subtitle A--Outer Continental Shelf

SEC. 101. PUBLICATION OF PROJECTED STATE LINES ON OUTER CONTINENTAL SHELF.

Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended--CommentsClose CommentsPermalink





(1) by designating the first, second, and third sentences as clause (i), (iii), and (iv), respectively;CommentsClose CommentsPermalink





(2) in clause (i) (as so designated), by inserting before the period at the end the following: `not later than 90 days after the date of enactment of the American Energy Production Act of 2008'; andCommentsClose CommentsPermalink





(3) by inserting after clause (i) (as so designated) the following:CommentsClose CommentsPermalink





`(ii)(I) The projected lines shall also be used for the purpose of preleasing and leasing activities conducted in new producing areas under section 32.CommentsClose CommentsPermalink





`(II) This clause shall not affect any property right or title to Federal submerged land on the outer Continental Shelf.CommentsClose CommentsPermalink





`(III) In carrying out this clause, the President shall consider the offshore administrative boundaries beyond State submerged lands for planning, coordination, and administrative purposes of the Department of the Interior, but may establish different boundaries.'.CommentsClose CommentsPermalink

SEC. 102. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING AREAS.

The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended by adding at the end the following:CommentsClose CommentsPermalink

`SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING AREAS.

`(a) Definitions- In this section:CommentsClose CommentsPermalink





`(1) COASTAL POLITICAL SUBDIVISION- The term `coastal political subdivision' means a political subdivision of a new 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 new producing State as of the date of enactment of this section; andCommentsClose CommentsPermalink





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





`(2) MORATORIUM AREA-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `moratorium area' means an area covered by sections 104 through 105 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2118) (as in effect on the day before the date of enactment of this section).CommentsClose CommentsPermalink





`(B) EXCLUSION- The term `moratorium area' does not include an area located in the Gulf of Mexico.CommentsClose CommentsPermalink





`(3) NEW PRODUCING AREA- The term `new producing area' means any moratorium area within the offshore administrative boundaries beyond the submerged land of a State that is located greater than 50 miles from the coastline of the State.CommentsClose CommentsPermalink





`(4) NEW PRODUCING STATE- The term `new producing State' means a State that has, within the offshore administrative boundaries beyond the submerged land of the State, a new producing area available for oil and gas leasing under subsection (b).CommentsClose CommentsPermalink





`(5) OFFSHORE ADMINISTRATIVE BOUNDARIES- The term `offshore administrative boundaries' means the administrative boundaries established by the Secretary beyond State submerged land for planning, coordination, and administrative purposes of the Department of the Interior and published in the Federal Register on January 3, 2006 (71 Fed. Reg. 127).CommentsClose CommentsPermalink





`(6) QUALIFIED OUTER CONTINENTAL SHELF REVENUES-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `qualified outer Continental Shelf revenues' means all rentals, royalties, bonus bids, and other sums due and payable to the United States from leases entered into on or after the date of enactment of this section for new producing areas.CommentsClose CommentsPermalink





`(B) EXCLUSIONS- The term `qualified outer Continental Shelf revenues' does not include--CommentsClose CommentsPermalink





`(i) revenues from a bond or other surety forfeited for obligations other than the collection of royalties;CommentsClose CommentsPermalink





`(ii) revenues from civil penalties;CommentsClose CommentsPermalink





`(iii) royalties taken by the Secretary in-kind and not sold;CommentsClose CommentsPermalink





`(iv) revenues generated from leases subject to section 8(g); orCommentsClose CommentsPermalink





`(v) any revenues considered qualified outer Continental Shelf revenues under section 102 of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432).CommentsClose CommentsPermalink





`(b) Petition for Leasing New Producing Areas-CommentsClose CommentsPermalink





`(1) IN GENERAL- Beginning on the date on which the President delineates projected State lines under section 4(a)(2)(A)(ii), the Governor of a State with a new producing area within the offshore administrative boundaries beyond the submerged land of the State may submit to the Secretary a petition requesting that the Secretary make the new producing area available for oil and gas leasing.CommentsClose CommentsPermalink





`(2) ACTION BY SECRETARY- Notwithstanding section 18, as soon as practicable after receipt of a petition under paragraph (1), the Secretary shall approve the petition if the Secretary determines that leasing the new producing area would not create an unreasonable risk of harm to the marine, human, or coastal environment.CommentsClose CommentsPermalink





`(c) Disposition of Qualified Outer Continental Shelf Revenues From New Producing Areas-CommentsClose CommentsPermalink





`(1) IN GENERAL- Notwithstanding section 9 and subject to the other provisions of this subsection, for each applicable fiscal year, the Secretary of the Treasury shall deposit--CommentsClose CommentsPermalink





`(A) 50 percent of qualified outer Continental Shelf revenues in the general fund of the Treasury; andCommentsClose CommentsPermalink





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





`(i) 75 percent to new producing States in accordance with paragraph (2); andCommentsClose CommentsPermalink





`(ii) 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





`(2) ALLOCATION TO NEW PRODUCING STATES AND COASTAL POLITICAL SUBDIVISIONS-CommentsClose CommentsPermalink





`(A) ALLOCATION TO NEW PRODUCING STATES- Effective for fiscal year 2008 and each fiscal year thereafter, the amount made available under paragraph (1)(B)(i) shall be allocated to each new producing State in amounts (based on a formula established by the Secretary by regulation) proportional to the amount of qualified outer Continental Shelf revenues generated in the new producing area offshore each State.CommentsClose CommentsPermalink





`(B) PAYMENTS TO COASTAL POLITICAL SUBDIVISIONS-CommentsClose CommentsPermalink





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





`(ii) ALLOCATION- The amount paid by the Secretary to coastal political subdivisions shall be allocated to each coastal political subdivision in accordance with subparagraphs (B) and (C) of section 31(b)(4).CommentsClose CommentsPermalink





`(3) MINIMUM ALLOCATION- The amount allocated to a new producing State for each fiscal year under paragraph (2) shall be at least 5 percent of the amounts available under for the fiscal year under paragraph (1)(B)(i).CommentsClose CommentsPermalink





`(4) TIMING- The amounts required to be deposited under subparagraph (B) of paragraph (1) for the applicable fiscal year shall be made available in accordance with that subparagraph during the fiscal year immediately following the applicable fiscal year.CommentsClose CommentsPermalink





`(5) AUTHORIZED USES-CommentsClose CommentsPermalink





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





`(i) 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





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





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





`(iv) Mitigation of the impact of outer Continental Shelf activities through the funding of onshore infrastructure projects.CommentsClose CommentsPermalink





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





`(B) LIMITATION- Not more than 3 percent of amounts received by a new producing State or coastal political subdivision under paragraph (2) may be used for the purposes described in subparagraph (A)(v).CommentsClose CommentsPermalink





`(6) ADMINISTRATION- Amounts made available under paragraph (1)(B) shall--CommentsClose CommentsPermalink





`(A) be made available, without further appropriation, in accordance with this subsection;CommentsClose CommentsPermalink





`(B) remain available until expended; andCommentsClose CommentsPermalink





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





`(i) other provisions of this Act;CommentsClose CommentsPermalink





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





`(iii) any other provision of law.CommentsClose CommentsPermalink





`(d) Disposition of Qualified Outer Continental Shelf Revenues From Other Areas- Notwithstanding section 9, for each applicable fiscal year, the terms and conditions of subsection (c) shall apply to the disposition of qualified outer Continental Shelf revenues that--CommentsClose CommentsPermalink





`(1) are derived from oil or gas leasing in an area that is not included in the current 5-year plan of the Secretary for oil or gas leasing; andCommentsClose CommentsPermalink





`(2) are not assumed in the budget of the United States Government submitted by the President under section 1105 of title 31, United States Code.'.CommentsClose CommentsPermalink

SEC. 103. CONFORMING AMENDMENT.

Sections 104 through 105 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2118) are repealed.CommentsClose CommentsPermalink

Subtitle B--Leasing Program for Land Within Coastal Plain

SEC. 111. DEFINITIONS.

In this subtitle:CommentsClose CommentsPermalink





(1) COASTAL PLAIN- The term `Coastal Plain' means that area identified as the `1002 Coastal Plain Area' on the map.CommentsClose CommentsPermalink





(2) FEDERAL AGREEMENT- The term `Federal Agreement' means the Federal Agreement and Grant Right-of-Way for the Trans-Alaska Pipeline issued on January 23, 1974, in accordance with section 28 of the Mineral Leasing Act (30 U.S.C. 185) and the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et seq.).CommentsClose CommentsPermalink





(3) FINAL STATEMENT- The term `Final Statement' means the final legislative environmental impact statement on the Coastal Plain, dated April 1987, and prepared pursuant to section 1002 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3142) and section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).CommentsClose CommentsPermalink





(4) MAP- The term `map' means the map entitled `Arctic National Wildlife Refuge', dated September 2005, and prepared by the United States Geological Survey.CommentsClose CommentsPermalink





(5) SECRETARY- The term `Secretary' means the Secretary of the Interior (or the designee of the Secretary), acting through the Director of the Bureau of Land Management in consultation with the Director of the United States Fish and Wildlife Service and in coordination with a State coordinator appointed by the Governor of the State of Alaska.CommentsClose CommentsPermalink

SEC. 112. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

(a) In General-CommentsClose CommentsPermalink





(1) AUTHORIZATION- Congress authorizes the exploration, leasing, development, production, and economically feasible and prudent transportation of oil and gas in and from the Coastal Plain.CommentsClose CommentsPermalink





(2) ACTIONS- The Secretary shall take such actions as are necessary--CommentsClose CommentsPermalink





(A) to establish and implement, in accordance with this subtitle, 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 while taking into consideration the interests and concerns of residents of the Coastal Plain, which is the homeland of the Kaktovikmiut Inupiat; andCommentsClose CommentsPermalink





(B) to administer this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that--CommentsClose CommentsPermalink





(i) 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; andCommentsClose CommentsPermalink





(ii) require 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 (16 U.S.C. 3143) is repealed.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- The table of contents contained in section 1 of that Act (16 U.S.C. 3101 note) is amended by striking the item relating to section 1003.CommentsClose CommentsPermalink





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





(1) COMPATIBILITY- For purposes of the National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd et seq.)--CommentsClose CommentsPermalink





(A) the oil and gas pre-leasing and leasing program, and activities authorized by this section in the Coastal Plain, shall be considered to be compatible with the purposes for which the Arctic National Wildlife Refuge was established; andCommentsClose CommentsPermalink





(B) no further findings or decisions shall be required to implement that program and those activities.CommentsClose CommentsPermalink





(2) ADEQUACY OF THE DEPARTMENT OF THE INTERIOR'S LEGISLATIVE ENVIRONMENTAL IMPACT STATEMENT- The Final Statement shall be considered to satisfy the requirements under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) that apply with respect to pre-leasing activities, including exploration programs and actions authorized to be taken by the Secretary to develop and promulgate the regulations for the establishment of a leasing program authorized by this subtitle before the conduct of the first lease sale.CommentsClose CommentsPermalink





(3) COMPLIANCE WITH NEPA FOR OTHER ACTIONS-CommentsClose CommentsPermalink





(A) IN GENERAL- Before conducting the first lease sale under this subtitle, the Secretary shall prepare an environmental impact statement in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to the actions authorized by this subtitle that are not referred to in paragraph (2).CommentsClose CommentsPermalink





(B) IDENTIFICATION AND ANALYSIS- Notwithstanding any other provision of law, in carrying out this paragraph, the Secretary shall not be required--CommentsClose CommentsPermalink





(i) to identify nonleasing alternative courses of action; orCommentsClose CommentsPermalink





(ii) to analyze the environmental effects of those courses of action.CommentsClose CommentsPermalink





(C) IDENTIFICATION OF PREFERRED ACTION- Not later than 18 months after the date of enactment of this Act, the Secretary shall--CommentsClose CommentsPermalink





(i) identify only a preferred action and a single leasing alternative for the first lease sale authorized under this subtitle; andCommentsClose CommentsPermalink





(ii) analyze the environmental effects and potential mitigation measures for those 2 alternatives.CommentsClose CommentsPermalink





(D) PUBLIC COMMENTS- In carrying out this paragraph, the Secretary shall consider only public comments that are filed not later than 20 days after the date of publication of a draft environmental impact statement.CommentsClose CommentsPermalink





(E) EFFECT OF COMPLIANCE- Notwithstanding any other provision of law, compliance with this paragraph shall be considered 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 expands or limits any State or local regulatory authority.CommentsClose CommentsPermalink





(e) Special Areas-CommentsClose CommentsPermalink





(1) DESIGNATION-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary, after consultation with the State of Alaska, the North Slope Borough, Alaska, and the City of Kaktovik, Alaska, may designate not more than 45,000 acres of the Coastal Plain as a special area if the Secretary determines that the special area would be of such unique character and interest as to require special management and regulatory protection.CommentsClose CommentsPermalink





(B) SADLEROCHIT SPRING AREA- The Secretary shall designate as a special area in accordance with subparagraph (A) the Sadlerochit Spring area, comprising approximately 4,000 acres as depicted on the map.CommentsClose CommentsPermalink





(2) MANAGEMENT- The Secretary shall manage each special area designated under this subsection in a manner that--CommentsClose CommentsPermalink





(A) respects and protects the Native people of the area; andCommentsClose CommentsPermalink





(B) preserves the unique and diverse character of the area, including fish, wildlife, subsistence resources, and cultural values of the area.CommentsClose CommentsPermalink





(3) EXCLUSION FROM LEASING OR SURFACE OCCUPANCY-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary may exclude any special area designated under this subsection from leasing.CommentsClose CommentsPermalink





(B) NO SURFACE OCCUPANCY- If the Secretary leases all or a portion of a special area for the purposes of oil and gas exploration, development, production, and related activities, there shall be no surface occupancy of the land comprising the special area.CommentsClose CommentsPermalink





(4) DIRECTIONAL DRILLING- Notwithstanding any other provision 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 may not close land within the Coastal Plain to oil and gas leasing or to exploration, development, or production except in accordance with this subtitle.CommentsClose CommentsPermalink





(g) Regulations-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than 15 months after the date of enactment of this Act, in consultation with appropriate agencies of the State of Alaska, the North Slope Borough, Alaska, and the City of Kaktovik, Alaska, the Secretary shall issue such regulations as are necessary to carry out this subtitle, including rules and regulations relating to protection of the fish and wildlife, fish and wildlife habitat, and subsistence resources of the Coastal Plain.CommentsClose CommentsPermalink





(2) REVISION OF REGULATIONS- The Secretary may periodically review and, as appropriate, revise the rules and regulations issued under paragraph (1) to reflect any significant scientific or engineering data that come to the attention of the Secretary.CommentsClose CommentsPermalink

SEC. 113. LEASE SALES.

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





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





(1) receipt and consideration of sealed nominations for any area in the Coastal Plain for inclusion in, or exclusion (as provided in subsection (c)) from, a lease sale;CommentsClose CommentsPermalink





(2) the holding of lease sales after that 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- For 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) not later than 22 months after the date of enactment of this Act, conduct the first lease sale under this subtitle;CommentsClose CommentsPermalink





(2) not later than September 30, 2012, conduct a second lease sale under this subtitle; andCommentsClose CommentsPermalink





(3) conduct additional sales at appropriate intervals if sufficient interest in exploration or development exists to warrant the conduct of the additional sales.CommentsClose CommentsPermalink

SEC. 114. GRANT OF LEASES BY THE SECRETARY.

(a) In General- Upon payment by a lessee of such bonus as may be accepted by the Secretary, the Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 113 a lease for any land on the Coastal Plain.CommentsClose CommentsPermalink





(b) Subsequent Transfers-CommentsClose CommentsPermalink





(1) IN GENERAL- No lease issued under this subtitle may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary.CommentsClose CommentsPermalink





(2) CONDITION FOR APPROVAL- Before granting any approval described in paragraph (1), the Secretary shall consult with and give due consideration to the opinion of the Attorney General.CommentsClose CommentsPermalink

SEC. 115. 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 16 1/2 percent of the amount or value of the production removed or sold from the lease, as determined by the Secretary in accordance with regulations applicable to other Federal oil and gas leases;CommentsClose CommentsPermalink





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





(3) require that each lessee of land within the Coastal Plain shall be fully responsible and liable for the reclamation of land within the Coastal Plain and any other Federal land that is adversely affected in connection with exploration, development, production, or transportation activities within the Coastal Plain conducted 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, that 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 land required to be reclaimed under this subtitle shall be, to the maximum extent practicable--CommentsClose CommentsPermalink





(A) a condition capable of supporting the uses that the land was capable of supporting prior to any exploration, development, or production activities; orCommentsClose CommentsPermalink





(B) upon application by the lessee, to a higher or better standard, as approved by the Secretary;CommentsClose CommentsPermalink





(6) contain terms and conditions relating to protection of fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment as required under section 112(a)(2);CommentsClose CommentsPermalink





(7) provide that each lessee, and each agent and contractor of a lessee, use their best efforts to provide a fair share of employment and contracting for Alaska Natives and Alaska Native Corporations from throughout the State of Alaska, as determined by the level of obligation previously agreed to in the Federal Agreement; andCommentsClose CommentsPermalink





(8) contain such other provisions as the Secretary determines to be necessary to ensure compliance with this subtitle and 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 proprietary interest of the Federal Government 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 (including the special concerns of the parties to those leases), shall require that each lessee, and each agent and contractor of a lessee, under this subtitle 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. 116. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

(a) No Significant Adverse Effect Standard To Govern Authorized Coastal Plain Activities- In accordance with section 112, the Secretary shall administer this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, or other provisions that--CommentsClose CommentsPermalink





(1) ensure, to the maximum extent practicable, that oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, fish and wildlife 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 surface acreage covered in connection with the leasing program 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 require, with respect to any proposed drilling and related activities on the Coastal Plain, that--CommentsClose CommentsPermalink





(1) a site-specific environmental analysis be made of the probable effects, if any, that the drilling or related activities will have on fish and wildlife, fish and wildlife habitat, subsistence resources, subsistence uses, and the environment;CommentsClose CommentsPermalink





(2) a plan be implemented to avoid, minimize, and mitigate (in that order and to the maximum extent practicable) any significant adverse effect identified under paragraph (1); andCommentsClose CommentsPermalink





(3) the development of the plan occur after consultation with--CommentsClose CommentsPermalink





(A) each agency having jurisdiction over matters mitigated by the plan;CommentsClose CommentsPermalink





(B) the State of Alaska;CommentsClose CommentsPermalink





(C) North Slope Borough, Alaska; andCommentsClose CommentsPermalink





(D) the City of Kaktovik, Alaska.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 issue regulations, lease terms, conditions, restrictions, prohibitions, stipulations, or other measures designed to ensure, to the maximum extent practicable, that the activities carried out 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--CommentsClose CommentsPermalink





(1) compliance with all applicable provisions of Federal and State environmental law (including regulations);CommentsClose CommentsPermalink





(2) implementation of and compliance with--CommentsClose CommentsPermalink





(A) standards that are at least as effective as the safety and environmental mitigation measures, as described in items 1 through 29 on pages 167 through 169 of the Final Statement, on the Coastal Plain;CommentsClose CommentsPermalink





(B) seasonal limitations on exploration, development, and related activities, as necessary, to avoid significant adverse effects during periods of concentrated fish and wildlife breeding, denning, nesting, spawning, and migration;CommentsClose CommentsPermalink





(C) design safety and construction standards for all pipelines and any access and service roads that minimize, to the maximum extent practicable, adverse effects on--CommentsClose CommentsPermalink





(i) the passage of migratory species (such as caribou); andCommentsClose CommentsPermalink





(ii) the flow of surface water by requiring the use of culverts, bridges, or other structural devices;CommentsClose CommentsPermalink





(D) prohibitions on general public access to, and use of, all pipeline access and service roads;CommentsClose CommentsPermalink





(E) stringent reclamation and rehabilitation requirements in accordance with this subtitle for the removal from the Coastal Plain of all oil and gas development and production facilities, structures, and equipment on completion of oil and gas production operations, except in a case in which the Secretary determines that those facilities, structures, or equipment--CommentsClose CommentsPermalink





(i) would assist in the management of the Arctic National Wildlife Refuge; andCommentsClose CommentsPermalink





(ii) are donated to the United States for that purpose;CommentsClose CommentsPermalink





(F) appropriate prohibitions or restrictions on--CommentsClose CommentsPermalink





(i) access by all modes of transportation;CommentsClose CommentsPermalink





(ii) sand and gravel extraction; andCommentsClose CommentsPermalink





(iii) use of explosives;CommentsClose CommentsPermalink





(G) reasonable stipulations for protection of cultural and archaeological resources;CommentsClose CommentsPermalink





(H) measures to protect groundwater and surface water, including--CommentsClose CommentsPermalink





(i) avoidance, to the maximum extent practicable, of springs, streams, and river systems;CommentsClose CommentsPermalink





(ii) the protection of natural surface drainage patterns and wetland and riparian habitats; andCommentsClose CommentsPermalink





(iii) the regulation of methods or techniques for developing or transporting adequate supplies of water for exploratory drilling; andCommentsClose CommentsPermalink





(I) research, monitoring, and reporting requirements;CommentsClose CommentsPermalink





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





(4) consolidation of facility siting;CommentsClose CommentsPermalink





(5) avoidance or reduction of air traffic-related disturbance to fish and wildlife;CommentsClose CommentsPermalink





(6) treatment and disposal of hazardous and toxic wastes, solid wastes, reserve pit fluids, drilling muds and cuttings, and domestic wastewater, including, in accordance with applicable Federal and State environmental laws (including regulations)--CommentsClose CommentsPermalink





(A) preparation of an annual waste management report;CommentsClose CommentsPermalink





(B) development and implementation of a hazardous materials tracking system; andCommentsClose CommentsPermalink





(C) prohibition on the use of chlorinated solvents;CommentsClose CommentsPermalink





(7) fuel storage and oil spill contingency planning;CommentsClose CommentsPermalink





(8) conduct of periodic field crew environmental briefings;CommentsClose CommentsPermalink





(9) avoidance of significant adverse effects on subsistence hunting, fishing, and trapping;CommentsClose CommentsPermalink





(10) compliance with applicable air and water quality standards;CommentsClose CommentsPermalink





(11) appropriate seasonal and safety zone designations around well sites, within which subsistence hunting and trapping shall be limited; andCommentsClose CommentsPermalink





(12) development and implementation of such other protective environmental requirements, restrictions, terms, or conditions as the Secretary, after consultation with the State of Alaska, North Slope Borough, Alaska, and the City of Kaktovik, Alaska, determines to be necessary.CommentsClose CommentsPermalink





(e) Considerations- In preparing and issuing regulations, lease terms, conditions, restrictions, prohibitions, or stipulations under this section, the Secretary shall take into consideration--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 through 37.33 of title 50, Code of Federal Regulations (or successor regulations); andCommentsClose CommentsPermalink





(3) the land use stipulations for exploratory drilling on the KIC-ASRC private land described in Appendix 2 of the agreement between Arctic Slope Regional Corporation and the United States dated August 9, 1983.CommentsClose CommentsPermalink





(f) Facility Consolidation Planning-CommentsClose CommentsPermalink





(1) IN GENERAL- After providing for public notice and comment, the Secretary shall prepare and periodically update a plan to govern, guide, and direct the siting and construction of facilities for the exploration, development, production, and transportation of oil and gas resources from the Coastal Plain.CommentsClose CommentsPermalink





(2) OBJECTIVES- The objectives of the plan shall be--CommentsClose CommentsPermalink





(A) the avoidance of unnecessary duplication of facilities and activities;CommentsClose CommentsPermalink





(B) the encouragement of consolidation of common facilities and activities;CommentsClose CommentsPermalink





(C) the location or confinement of facilities and activities to areas that will minimize impact on fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment;CommentsClose CommentsPermalink





(D) the use of existing facilities, to the maximum extent practicable; andCommentsClose CommentsPermalink





(E) the enhancement of compatibility between wildlife values and development activities.CommentsClose CommentsPermalink





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





(1) manage public land in the Coastal Plain in accordance with subsections (a) and (b) of section 811 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3121); andCommentsClose CommentsPermalink





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

SEC. 117. EXPEDITED JUDICIAL REVIEW.

(a) Filing of Complaints-CommentsClose CommentsPermalink





(1) DEADLINE- A complaint seeking judicial review of a provision of this subtitle or an action of the Secretary under this subtitle shall be filed--CommentsClose CommentsPermalink





(A) except as provided in subparagraph (B), during the 90-day period beginning on the date on which the action being challenged was carried out; orCommentsClose CommentsPermalink





(B) in the case of a complaint based solely on grounds arising after the 90-day period described in subparagraph (A), during the 90-day period beginning on the date on which the complainant knew or reasonably should have known about the grounds for the complaint.CommentsClose CommentsPermalink





(2) VENUE- A complaint seeking judicial review of a provision of this subtitle or an action of the Secretary under this subtitle shall be filed in the United States Court of Appeals for the District of Columbia.CommentsClose CommentsPermalink





(3) SCOPE-CommentsClose CommentsPermalink





(A) IN GENERAL- Judicial review of a decision of the Secretary under this subtitle (including an environmental analysis of such a lease sale) shall be--CommentsClose CommentsPermalink





(i) limited to a review of whether the decision is in accordance with this subtitle; andCommentsClose CommentsPermalink





(ii) based on the administrative record of the decision.CommentsClose CommentsPermalink





(B) PRESUMPTIONS- Any identification by the Secretary of a preferred course of action relating to a lease sale, and any analysis by the Secretary of environmental effects, under this subtitle shall be presumed to be correct unless proven otherwise by clear and convincing evidence.CommentsClose CommentsPermalink





(b) Limitation on Other Review- Any action of the Secretary that is subject to judicial review under this section shall not be subject to judicial review in any civil or criminal proceeding for enforcement.CommentsClose CommentsPermalink

SEC. 118. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

For purposes of section 1102(4)(A) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), any rights-of-way or easements across the Coastal Plain for the exploration, development, production, or transportation of oil and gas shall be considered to be established incident to the management of the Coastal Plain under this section.CommentsClose CommentsPermalink

SEC. 119. CONVEYANCE.

Notwithstanding section 1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to remove any cloud on title to land, and to clarify land ownership patterns in the Coastal Plain, the Secretary shall--CommentsClose CommentsPermalink





(1) to the extent necessary to fulfill the entitlement of the Kaktovik Inupiat Corporation under sections 12 and 14 of the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613), as determined by the Secretary, convey to that Corporation the surface estate of the land described in paragraph (1) of Public Land Order 6959, in accordance with the terms and conditions of the agreement between the Secretary, the United States Fish and Wildlife Service, the Bureau of Land Management, and the Kaktovik Inupiat Corporation, dated January 22, 1993; andCommentsClose CommentsPermalink





(2) convey to the Arctic Slope Regional Corporation the remaining subsurface estate to which that Corporation is entitled under the agreement between that corporation and the United States, dated August 9, 1983.CommentsClose CommentsPermalink

SEC. 120. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

(a) Establishment of Fund-CommentsClose CommentsPermalink





(1) IN GENERAL- As a condition on the receipt of funds under section 122(2), the State of Alaska shall establish in the treasury of the State, and administer in accordance with this section, a fund to be known as the `Coastal Plain Local Government Impact Aid Assistance Fund' (referred to in this section as the `Fund').CommentsClose CommentsPermalink





(2) DEPOSITS- Subject to paragraph (1), the Secretary of the Treasury shall deposit into the Fund, $35,000,000 each year from the amount available under section 122(2)(A).CommentsClose CommentsPermalink





(3) INVESTMENT- The Governor of the State of Alaska (referred to in this section as the `Governor') shall invest amounts in the Fund in interest-bearing securities of the United States or the State of Alaska.CommentsClose CommentsPermalink





(b) Assistance- The Governor, in cooperation with the Mayor of the North Slope Borough, shall use amounts in the Fund to provide assistance to North Slope Borough, Alaska, the City of Kaktovik, Alaska, 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, or any Alaska Native Regional Corporation acting on behalf of the villages and communities within its region whose lands lie along the right of way of the Trans Alaska Pipeline System, as determined by the Governor.CommentsClose CommentsPermalink





(c) Application-CommentsClose CommentsPermalink





(1) IN GENERAL- To receive assistance under subsection (b), a community or Regional Corporation described in that subsection shall submit to the Governor, or to the Mayor of the North Slope Borough, an application in such time, in such manner, and containing such information as the Governor may require.CommentsClose CommentsPermalink





(2) ACTION BY NORTH SLOPE BOROUGH- The Mayor of the North Slope Borough shall submit to the Governor each application received under paragraph (1) as soon as practicable after the date on which the application is received.CommentsClose CommentsPermalink





(3) ASSISTANCE OF GOVERNOR- The Governor shall assist communities in submitting applications under this subsection, to the maximum extent practicable.CommentsClose CommentsPermalink





(d) Use of Funds- A community or Regional Corporation that receives funds under subsection (b) may use the funds--CommentsClose CommentsPermalink





(1) to plan for mitigation, implement a mitigation plan, or maintain a mitigation project to address the potential effects of oil and gas exploration and development on environmental, social, cultural, recreational, and subsistence resources of the community;CommentsClose CommentsPermalink





(2) to develop, carry out, and maintain--CommentsClose CommentsPermalink





(A) a project to provide new or expanded public facilities; orCommentsClose CommentsPermalink





(B) services to address the needs and problems associated with the effects described in paragraph (1), including firefighting, police, water and waste treatment, first responder, and other medical services;CommentsClose CommentsPermalink





(3) to compensate residents of the Coastal Plain for significant damage to environmental, social, cultural, recreational, or subsistence resources; andCommentsClose CommentsPermalink





(4) in the City of Kaktovik, Alaska--CommentsClose CommentsPermalink





(A) to develop a mechanism for providing members of the Kaktovikmiut Inupiat community an opportunity to--CommentsClose CommentsPermalink





(i) monitor development on the Coastal Plain; andCommentsClose CommentsPermalink





(ii) provide information and recommendations to the Governor based on traditional aboriginal knowledge of the natural resources, flora, fauna, and ecological processes of the Coastal Plain; andCommentsClose CommentsPermalink





(B) to establish a local coordination office, to be managed by the Mayor of the North Slope Borough, in coordination with the City of Kaktovik, Alaska--CommentsClose CommentsPermalink





(i) to coordinate with and advise developers on local conditions and the history of areas affected by development;CommentsClose CommentsPermalink





(ii) to provide to the Committee on Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate annual reports on the status of the coordination between developers and communities affected by development;CommentsClose CommentsPermalink





(iii) to collect from residents of the Coastal Plain information regarding the impacts of development on fish, wildlife, habitats, subsistence resources, and the environment of the Coastal Plain; andCommentsClose CommentsPermalink





(iv) to ensure that the information collected under clause (iii) is submitted to--CommentsClose CommentsPermalink





(I) developers; andCommentsClose CommentsPermalink





(II) any appropriate Federal agency.CommentsClose CommentsPermalink

SEC. 121. PROHIBITION ON EXPORTS.

An oil or gas lease issued under this subtitle shall prohibit the exportation of oil or gas produced under the lease.CommentsClose CommentsPermalink

SEC. 122. ALLOCATION OF REVENUES.

Notwithstanding the Mineral Leasing Act (30 U.S.C. 181 et seq.) or any other provision of law, of the adjusted bonus, rental, and royalty receipts from Federal oil and gas leasing and operations authorized under this subtitle:CommentsClose CommentsPermalink





(1) 50 percent shall be deposited in the general fund of the Treasury.CommentsClose CommentsPermalink





(2) The remainder shall be available as follows:CommentsClose CommentsPermalink





(A) $35,000,000 shall be deposited by the Secretary of the Treasury into the fund created under section 120(a)(1).CommentsClose CommentsPermalink





(B) The remainder shall be disbursed to the State of Alaska.CommentsClose CommentsPermalink

Subtitle C--Permitting

SEC. 131. REFINERY PERMITTING PROCESS.

(a) Definitions- In this section:CommentsClose CommentsPermalink





(1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Environmental Protection Agency.CommentsClose CommentsPermalink





(2) INDIAN TRIBE- The term `Indian tribe' has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).CommentsClose CommentsPermalink





(3) PERMIT- The term `permit' means any permit, license, approval, variance, or other form of authorization that a refiner is required to obtain--CommentsClose CommentsPermalink





(A) under any Federal law; orCommentsClose CommentsPermalink





(B) from a State or Indian tribal government agency delegated authority by the Federal Government, or authorized under Federal law, to issue permits.CommentsClose CommentsPermalink





(4) REFINER- The term `refiner' means a person that--CommentsClose CommentsPermalink





(A) owns or operates a refinery; orCommentsClose CommentsPermalink





(B) seeks to become an owner or operator of a refinery.CommentsClose CommentsPermalink





(5) REFINERY-CommentsClose CommentsPermalink





(A) IN GENERAL- The term `refinery' means--CommentsClose CommentsPermalink





(i) a facility at which crude oil is refined into transportation fuel or other petroleum products; andCommentsClose CommentsPermalink





(ii) a coal liquification or coal-to-liquid facility at which coal is processed into synthetic crude oil or any other fuel.CommentsClose CommentsPermalink





(B) INCLUSIONS- The term `refinery' includes an expansion of a refinery.CommentsClose CommentsPermalink





(6) REFINERY EXPANSION- The term `refinery expansion' means a physical change in a refinery that results in an increase in the capacity of the refinery.CommentsClose CommentsPermalink





(7) REFINERY PERMITTING AGREEMENT- The term `refinery permitting agreement' means an agreement entered into between the Administrator and a State or Indian tribe under subsection (b).CommentsClose CommentsPermalink





(8) SECRETARY- The term `Secretary' means the Secretary of Commerce.CommentsClose CommentsPermalink





(9) STATE- The term `State' means--CommentsClose CommentsPermalink





(A) a State;CommentsClose CommentsPermalink





(B) the District of Columbia;CommentsClose CommentsPermalink





(C) the Commonwealth of Puerto Rico; andCommentsClose CommentsPermalink





(D) any other territory or possession of the United States.CommentsClose CommentsPermalink





(b) Streamlining of Refinery Permitting Process-CommentsClose CommentsPermalink





(1) IN GENERAL- At the request of the Governor of a State or the governing body of an Indian tribe, the Administrator shall enter into a refinery permitting agreement with the State or Indian tribe under which the process for obtaining all permits necessary for the construction and operation of a refinery shall be streamlined using a systematic interdisciplinary multimedia approach as provided in this section.CommentsClose CommentsPermalink





(2) AUTHORITY OF ADMINISTRATOR- Under a refinery permitting agreement--CommentsClose CommentsPermalink





(A) the Administrator shall have authority, as applicable and necessary, to--CommentsClose CommentsPermalink





(i) accept from a refiner a consolidated application for all permits that the refiner is required to obtain to construct and operate a refinery;CommentsClose CommentsPermalink





(ii) in consultation and cooperation with each Federal, State, or Indian tribal government agency that is required to make any determination to authorize the issuance of a permit, establish a schedule under which each agency shall--CommentsClose CommentsPermalink





(I) concurrently consider, to the maximum extent practicable, each determination to be made; andCommentsClose CommentsPermalink





(II) complete each step in the permitting process; andCommentsClose CommentsPermalink





(iii) issue a consolidated permit that combines all permits issued under the schedule established under clause (ii); andCommentsClose CommentsPermalink





(B) the Administrator shall provide to State and Indian tribal government agencies--CommentsClose CommentsPermalink





(i) financial assistance in such amounts as the agencies reasonably require to hire such additional personnel as are necessary to enable the government agencies to comply with the applicable schedule established under subparagraph (A)(ii); andCommentsClose CommentsPermalink





(ii) technical, legal, and other assistance in complying with the refinery permitting agreement.CommentsClose CommentsPermalink





(3) AGREEMENT BY THE STATE- Under a refinery permitting agreement, a State or governing body of an Indian tribe shall agree that--CommentsClose CommentsPermalink





(A) the Administrator shall have each of the authorities described in paragraph (2); andCommentsClose CommentsPermalink





(B) each State or Indian tribal government agency shall--CommentsClose CommentsPermalink





(i) in accordance with State law, make such structural and operational changes in the agencies as are necessary to enable the agencies to carry out consolidated project-wide permit reviews concurrently and in coordination with the Environmental Protection Agency and other Federal agencies; andCommentsClose CommentsPermalink





(ii) comply, to the maximum extent practicable, with the applicable schedule established under paragraph (2)(A)(ii).CommentsClose CommentsPermalink





(4) DEADLINES-CommentsClose CommentsPermalink





(A) NEW REFINERIES- In the case of a consolidated permit for the construction of a new refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than--CommentsClose CommentsPermalink





(i) 360 days after the date of the receipt of the administratively complete application for the consolidated permit; orCommentsClose CommentsPermalink





(ii) on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 90 days after the expiration of the deadline established under clause (i).CommentsClose CommentsPermalink





(B) EXPANSION OF EXISTING REFINERIES- In the case of a consolidated permit for the expansion of an existing refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than--CommentsClose CommentsPermalink





(i) 120 days after the date of the receipt of the administratively complete application for the consolidated permit; orCommentsClose CommentsPermalink





(ii) on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 30 days after the expiration of the deadline established under clause (i).CommentsClose CommentsPermalink





(5) FEDERAL AGENCIES- Each Federal agency that is required to make any determination to authorize the issuance of a permit shall comply with the applicable schedule established under paragraph (2)(A)(ii).CommentsClose CommentsPermalink





(6) JUDICIAL REVIEW- Any civil action for review of any permit determination under a refinery permitting agreement shall be brought exclusively in the United States district court for the district in which the refinery is located or proposed to be located.CommentsClose CommentsPermalink





(7) EFFICIENT PERMIT REVIEW- In order to reduce the duplication of procedures, the Administrator shall use State permitting and monitoring procedures to satisfy substantially equivalent Federal requirements under this title.CommentsClose CommentsPermalink





(8) SEVERABILITY- If 1 or more permits that are required for the construction or operation of a refinery are not approved on or before any deadline established under paragraph (4), the Administrator may issue a consolidated permit that combines all other permits that the refiner is required to obtain other than any permits that are not approved.CommentsClose CommentsPermalink





(9) SAVINGS- Nothing in this subsection affects the operation or implementation of otherwise applicable law regarding permits necessary for the construction and operation of a refinery.CommentsClose CommentsPermalink





(10) CONSULTATION WITH LOCAL GOVERNMENTS- Congress encourages the Administrator, States, and tribal governments to consult, to the maximum extent practicable, with local governments in carrying out this subsection.CommentsClose CommentsPermalink





(11) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as are necessary to carry out this subsection.CommentsClose CommentsPermalink





(12) EFFECT ON LOCAL AUTHORITY- Nothing in this subsection affects--CommentsClose CommentsPermalink





(A) the authority of a local government with respect to the issuance of permits; orCommentsClose CommentsPermalink





(B) any requirement or ordinance of a local government (such as a zoning regulation).CommentsClose CommentsPermalink





(c) Fischer-Tropsch Fuels-CommentsClose CommentsPermalink





(1) IN GENERAL- In cooperation with the Secretary of Energy, the Secretary of Defense, the Administrator of the Federal Aviation Administration, Secretary of Health and Human Services, and Fischer-Tropsch industry representatives, the Administrator shall--CommentsClose CommentsPermalink





(A) conduct a research and demonstration program to evaluate the air quality benefits of ultra-clean Fischer-Tropsch transportation fuel, including diesel and jet fuel;CommentsClose CommentsPermalink





(B) evaluate the use of ultra-clean Fischer-Tropsch transportation fuel as a mechanism for reducing engine exhaust emissions; andCommentsClose CommentsPermalink





(C) submit recommendations to Congress on the most effective use and associated benefits of these ultra-clean fuel for reducing public exposure to exhaust emissions.CommentsClose CommentsPermalink





(2) GUIDANCE AND TECHNICAL SUPPORT- The Administrator shall, to the extent necessary, issue any guidance or technical support documents that would facilitate the effective use and associated benefit of Fischer-Tropsch fuel and blends.CommentsClose CommentsPermalink





(3) REQUIREMENTS- The program described in paragraph (1) shall consider--CommentsClose CommentsPermalink





(A) the use of neat (100 percent) Fischer-Tropsch fuel and blends with conventional crude oil-derived fuel for heavy-duty and light-duty diesel engines and the aviation sector; andCommentsClose CommentsPermalink





(B) the production costs associated with domestic production of those ultra clean fuel and prices for consumers.CommentsClose CommentsPermalink





(4) REPORTS- The Administrator shall submit to the Committee on Environment and Public Works and the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives--CommentsClose CommentsPermalink





(A) not later than 1 year, an interim report on actions taken to carry out this subsection; andCommentsClose CommentsPermalink





(B) not later than 2 years, a final report on actions taken to carry out this subsection.CommentsClose CommentsPermalink

SEC. 132. REMOVAL OF ADDITIONAL FEE FOR NEW APPLICATIONS FOR PERMITS TO DRILL.

The second undesignated paragraph of the matter under the heading `MANAGEMENT OF LANDS AND RESOURCES' under the heading `Bureau of Land Management' of title I of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2098) is amended by striking `to be reduced' and all that follows through `each new application,'.CommentsClose CommentsPermalink

Subtitle D--Strategic Petroleum Reserve

SEC. 141. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC PETROLEUM RESERVE.

(a) In General- Except as provided in subsection (b) and notwithstanding any other provision of law, during the 180-day period beginning on the date of enactment of this Act--CommentsClose CommentsPermalink





(1) the Secretary of the Interior shall suspend acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program; andCommentsClose CommentsPermalink





(2) the Secretary of Energy shall suspend acquisition of petroleum for the Strategic Petroleum Reserve through any other acquisition method.CommentsClose CommentsPermalink





(b) Resumption- Effective beginning on the day after the end of the period described in subsection (a)--CommentsClose CommentsPermalink





(1) the Secretary of the Interior may resume acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program; andCommentsClose CommentsPermalink





(2) the Secretary of Energy may resume acquisition of petroleum for the Strategic Petroleum Reserve through any other acquisition method.CommentsClose CommentsPermalink

Subtitle E--Restoration of State Revenue

SEC. 151. RESTORATION OF STATE REVENUE.

The matter under the heading `ADMINISTRATIVE PROVISIONS' under the heading `Minerals Management Service' of title I of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2109) is amended by striking `Notwithstanding' and all that follows through `Treasury.'.CommentsClose CommentsPermalink

TITLE II--ALTERNATIVE RESOURCES

Subtitle A--Renewable Fuel and Advanced Energy Technology

SEC. 201. DEFINITION OF RENEWABLE BIOMASS.

Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) is amended by striking subparagraph (I) and inserting the following:CommentsClose CommentsPermalink





`(I) RENEWABLE BIOMASS- The term `renewable biomass' means--CommentsClose CommentsPermalink





`(i) nonmerchantable materials or precommercial thinnings that--CommentsClose CommentsPermalink





`(I) are byproducts of preventive treatments, such as trees, wood, brush, thinnings, chips, and slash, that are removed--CommentsClose CommentsPermalink

`(aa) to reduce hazardous fuels;CommentsClose CommentsPermalink

`(bb) to reduce or contain disease or insect infestation; orCommentsClose CommentsPermalink

`(cc) to restore forest health;CommentsClose CommentsPermalink

`(II) would not otherwise be used for higher-value products; andCommentsClose CommentsPermalink





`(III) are harvested from National Forest System land or public land (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702))--CommentsClose CommentsPermalink

`(aa) where permitted by law; andCommentsClose CommentsPermalink

`(bb) in accordance with applicable land management plans and the requirements for old-growth maintenance, restoration, and management direction of paragraphs (2), (3), and (4) of subsection (e) and the requirements for large-tree retention of subsection (f) of section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512); orCommentsClose CommentsPermalink

`(ii) any organic matter that is available on a renewable or recurring basis from non-Federal land or from land belonging to an Indian tribe, or an Indian individual, that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including--CommentsClose CommentsPermalink





`(I) renewable plant material, including--CommentsClose CommentsPermalink

`(aa) feed grains;CommentsClose CommentsPermalink

`(bb) other agricultural commodities;CommentsClose CommentsPermalink

`(cc) other plants and trees; andCommentsClose CommentsPermalink

`(dd) algae; andCommentsClose CommentsPermalink

`(II) waste material, including--CommentsClose CommentsPermalink

`(aa) crop residue;CommentsClose CommentsPermalink

`(bb) other vegetative waste material (including wood waste and wood residues);CommentsClose CommentsPermalink

`(cc) animal waste and byproducts (including fats, oils, greases, and manure); andCommentsClose CommentsPermalink

`(dd) food waste and yard waste.'.CommentsClose CommentsPermalink

SEC. 202. 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 Act, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $25,000,000 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 such sums as are necessary to carry out this section for each of fiscal years 2009 through 2013.CommentsClose CommentsPermalink

SEC. 203. BIOFUELS INFRASTRUCTURE AND ADDITIVES RESEARCH AND DEVELOPMENT.

(a) In General- The Assistant Administrator of the Office of Research and Development of the Environmental Protection Agency (referred to in this section as the `Assistant Administrator'), in consultation with the Secretary and the National Institute of Standards and Technology, shall carry out a program of research and development of materials to be added to biofuels to make the biofuels more compatible with infrastructure used to store and deliver petroleum-based fuels to the point of final sale.CommentsClose CommentsPermalink





(b) Requirements- In carrying out the program described in subsection (a), the Assistant Administrator shall address--CommentsClose CommentsPermalink





(1) materials to prevent or mitigate--CommentsClose CommentsPermalink





(A) corrosion of metal, plastic, rubber, cork, fiberglass, glues, or any other material used in pipes and storage tanks;CommentsClose CommentsPermalink





(B) dissolving of storage tank sediments;CommentsClose CommentsPermalink





(C) clogging of filters;CommentsClose CommentsPermalink





(D) contamination from water or other adulterants or pollutants;CommentsClose CommentsPermalink





(E) poor flow properties relating to low temperatures;CommentsClose CommentsPermalink





(F) oxidative and thermal instability in long-term storage and use; andCommentsClose CommentsPermalink





(G) microbial contamination;CommentsClose CommentsPermalink





(2) problems associated with electrical conductivity;CommentsClose CommentsPermalink





(3) alternatives to conventional methods for refurbishment and cleaning of gasoline and diesel tanks, including tank lining applications;CommentsClose CommentsPermalink





(4) strategies to minimize emissions from infrastructure;CommentsClose CommentsPermalink





(5) issues with respect to certification by a nationally recognized testing laboratory of components for fuel-dispensing devises that specifically reference compatibility with alcohol-blended fuels and other biofuels that contain greater than 15 percent alcohol;CommentsClose CommentsPermalink





(6) challenges for design, reforming, storage, handling, and dispensing hydrogen fuel from various feedstocks, including biomass, from neighborhood fueling stations, including codes and standards development necessary beyond that carried out under section 809 of the Energy Policy Act of 2005 (42 U.S.C. 16158);CommentsClose CommentsPermalink





(7) issues with respect to at which point in the fuel supply chain additives optimally should be added to fuels; andCommentsClose CommentsPermalink





(8) other problems, as identified by the Assistant Administrator, in consultation with the Secretary and the National Institute of Standards and Technology.CommentsClose CommentsPermalink

SEC. 204. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED GASOLINE WITH HIGHER LEVELS OF ETHANOL.

(a) In General- The Secretary, in cooperation with the Secretary of Agriculture, the Administrator of the Environmental Protection Agency, and the Secretary of Transportation, and after providing notice and an opportunity for public comment, shall conduct a study of the feasibility of increasing consumption in the United States of ethanol-blended gasoline with levels of ethanol that are not less than 10 percent and not more than 40 percent.CommentsClose CommentsPermalink





(b) Study- The study under subsection (a) shall include--CommentsClose CommentsPermalink





(1) a review of production and infrastructure constraints on increasing consumption of ethanol;CommentsClose CommentsPermalink





(2) an evaluation of the economic, market, and energy-related impacts of State and regional differences in ethanol blends;CommentsClose CommentsPermalink





(3) an evaluation of the economic, market, and energy-related impacts on gasoline retailers and consumers of separate and distinctly labeled fuel storage facilities and dispensers;CommentsClose CommentsPermalink





(4) an evaluation of the environmental impacts of mid-level ethanol blends on evaporative and exhaust emissions from on-road, off-road, and marine engines, recreational boats, vehicles, and equipment;CommentsClose CommentsPermalink





(5) an evaluation of the impacts of mid-level ethanol blends on the operation, durability, and performance of on-road, off-road, and marine engines, recreational boats, vehicles, and equipment;CommentsClose CommentsPermalink





(6) an evaluation of the safety impacts of mid-level ethanol blends on consumers that own and operate off-road and marine engines, recreational boats, vehicles, or equipment; andCommentsClose CommentsPermalink





(7) an evaluation of the impacts of increased use of renewable fuels derived from food crops on the price and supply of agricultural commodities in both domestic and global markets.CommentsClose CommentsPermalink





(c) Report- Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the results of the study conducted under this section.CommentsClose CommentsPermalink

SEC. 205. STUDY OF DIESEL VEHICLE ATTRIBUTES.

(a) In General- The Secretary, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, shall conduct a study to identify--CommentsClose CommentsPermalink





(1) the environmental and efficiency attributes of diesel-fueled vehicles as the vehicles compare to comparable gasoline fueled, E-85 fueled, and hybrid vehicles;CommentsClose CommentsPermalink





(2) the technical, economic, regulatory, environmental, and other obstacles to increasing the usage of diesel-fueled vehicles;CommentsClose CommentsPermalink





(3) the legislative, administrative, and other actions that could reduce or eliminate the obstacles identified under paragraph (2); andCommentsClose CommentsPermalink





(4) the costs and benefits associated with reducing or eliminating the obstacles identified under paragraph (2).CommentsClose CommentsPermalink





(b) Report- Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the results of the study conducted under subsection (a).CommentsClose CommentsPermalink





(c) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.CommentsClose CommentsPermalink

Subtitle B--Clean Coal-Derived Fuels for Energy Security

SEC. 211. SHORT TITLE.

This subtitle may be cited as the `Clean Coal-Derived Fuels for Energy Security Act of 2008'.CommentsClose CommentsPermalink

SEC. 212. DEFINITIONS.

In this subtitle:CommentsClose CommentsPermalink





(1) CLEAN COAL-DERIVED FUEL-CommentsClose CommentsPermalink





(A) IN GENERAL- The term `clean coal-derived fuel' means aviation fuel, motor vehicle fuel, home heating oil, or boiler fuel that is--CommentsClose CommentsPermalink





(i) substantially derived from the coal resources of the United States; andCommentsClose CommentsPermalink





(ii) refined or otherwise processed at a facility located in the United States that captures up to 100 percent of the carbon dioxide emissions that would otherwise be released at the facility.CommentsClose CommentsPermalink





(B) INCLUSIONS- The term `clean coal-derived fuel' may include any other resource that is extracted, grown, produced, or recovered in the United States.CommentsClose CommentsPermalink





(2) COVERED FUEL- The term `covered fuel' means--CommentsClose CommentsPermalink





(A) aviation fuel;CommentsClose CommentsPermalink





(B) motor vehicle fuel;CommentsClose CommentsPermalink





(C) home heating oil; andCommentsClose CommentsPermalink





(D) boiler fuel.CommentsClose CommentsPermalink





(3) SMALL REFINERY- The term `small refinery' means a refinery for which the average aggregate daily crude oil throughput for a calendar year (as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000 barrels.CommentsClose CommentsPermalink

SEC. 213. CLEAN COAL-DERIVED FUEL PROGRAM.

(a) Program-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the President shall promulgate regulations to ensure that covered fuel sold or introduced into commerce in the United States (except in noncontiguous States or territories), on an annual average basis, contains the applicable volume of clean coal-derived fuel determined in accordance with paragraph (4).CommentsClose CommentsPermalink





(2) PROVISIONS OF REGULATIONS- Regardless of the date of promulgation, the regulations promulgated under paragraph (1)--CommentsClose CommentsPermalink





(A) shall contain compliance provisions applicable to refineries, blenders, distributors, and importers, as appropriate, to ensure that--CommentsClose CommentsPermalink





(i) the requirements of this subsection are met; andCommentsClose CommentsPermalink





(ii) clean coal-derived fuels produced from facilities for the purpose of compliance with this subtitle result in life cycle greenhouse gas emissions that are not greater than gasoline; andCommentsClose CommentsPermalink





(B) shall not--CommentsClose CommentsPermalink





(i) restrict geographic areas in the contiguous United States in which clean coal-derived fuel may be used; orCommentsClose CommentsPermalink





(ii) impose any per-gallon obligation for the use of clean coal-derived fuel.CommentsClose CommentsPermalink





(3) RELATIONSHIP TO OTHER REGULATIONS- Regulations promulgated under this paragraph shall, to the maximum extent practicable, incorporate the program structure, compliance and reporting requirements established under the final regulations promulgated to implement the renewable fuel program established by the amendment made by section 1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 1067).CommentsClose CommentsPermalink





(4) APPLICABLE VOLUME-CommentsClose CommentsPermalink





(A) CALENDAR YEARS 2015 THROUGH 2022- For the purpose of this subsection, the applicable volume for any of calendar years 2015 through 2022 shall be determined in accordance with the following table:CommentsClose CommentsPermalink

2015CommentsClose CommentsPermalink

--0.75CommentsClose CommentsPermalink

2016CommentsClose CommentsPermalink

--1.5CommentsClose CommentsPermalink

2017CommentsClose CommentsPermalink

--2.25CommentsClose CommentsPermalink

2018CommentsClose CommentsPermalink

--3.00CommentsClose CommentsPermalink

2019CommentsClose CommentsPermalink

--3.75CommentsClose CommentsPermalink

2020CommentsClose CommentsPermalink

--4.5CommentsClose CommentsPermalink

2021CommentsClose CommentsPermalink

--5.25CommentsClose CommentsPermalink

2022CommentsClose CommentsPermalink

--6.0.CommentsClose CommentsPermalink

(B) CALENDAR YEAR 2023 AND THEREAFTER- Subject to subparagraph (C), for the purposes of this subsection, the applicable volume for calendar year 2023 and each calendar year thereafter shall be determined by the President, in coordination with the Secretary and the Administrator of the Environmental Protection Agency, based on a review of the implementation of the program during calendar years 2015 through 2022, including a review of--CommentsClose CommentsPermalink





(i) the impact of clean coal-derived fuels on the energy security of the United States;CommentsClose CommentsPermalink





(ii) the expected annual rate of future production of clean coal-derived fuels; andCommentsClose CommentsPermalink





(iii) the impact of the use of clean coal-derived fuels on other factors, including job creation, rural economic development, and the environment.CommentsClose CommentsPermalink





(C) MINIMUM APPLICABLE VOLUME- For the purpose of this subsection, the applicable volume for calendar year 2023 and each calendar year thereafter shall be equal to the product obtained by multiplying--CommentsClose CommentsPermalink





(i) the number of gallons of covered fuel that the President estimates will be sold or introduced into commerce in the calendar year; andCommentsClose CommentsPermalink





(ii) the ratio that--CommentsClose CommentsPermalink





(I) 6,000,000,000 gallons of clean coal-derived fuel; bears toCommentsClose CommentsPermalink





(II) the number of gallons of covered fuel sold or introduced into commerce in calendar year 2022.CommentsClose CommentsPermalink





(b) Applicable Percentages-CommentsClose CommentsPermalink





(1) PROVISION OF ESTIMATE OF VOLUMES OF CERTAIN FUEL SALES- Not later than October 31 of each of calendar years 2015 through 2021, the Administrator of the Energy Information Administration shall provide to the President an estimate, with respect to the following calendar year, of the volumes of covered fuel projected to be sold or introduced into commerce in the United States.CommentsClose CommentsPermalink





(2) DETERMINATION OF APPLICABLE PERCENTAGES-CommentsClose CommentsPermalink





(A) IN GENERAL- Not later than November 30 of each of calendar years 2015 through 2022, based on the estimate provided under paragraph (1), the President shall determine and publish in the Federal Register, with respect to the following calendar year, the clean coal-derived fuel obligation that ensures that the requirements of subsection (a) are met.CommentsClose CommentsPermalink





(B) REQUIRED ELEMENTS- The clean coal-derived fuel obligation determined for a calendar year under subparagraph (A) shall--CommentsClose CommentsPermalink





(i) be applicable to refineries, blenders, and importers, as appropriate;CommentsClose CommentsPermalink





(ii) be expressed in terms of a volume percentage of covered fuel sold or introduced into commerce in the United States; andCommentsClose CommentsPermalink





(iii) subject to paragraph (3)(A), consist of a single applicable percentage that applies to all categories of persons specified in clause (i).CommentsClose CommentsPermalink





(3) ADJUSTMENTS- In determining the applicable percentage for a calendar year, the President shall make adjustments--CommentsClose CommentsPermalink





(A) to prevent the imposition of redundant obligations on any person specified in paragraph (2)(B)(i); andCommentsClose CommentsPermalink





(B) to account for the use of clean coal-derived fuel during the previous calendar year by small refineries that are exempt under subsection (f).CommentsClose CommentsPermalink





(c) Volume Conversion Factors for Clean Coal-Derived Fuels Based on Energy Content-CommentsClose CommentsPermalink





(1) IN GENERAL- For the purpose of subsection (a), the President shall assign values to specific types of clean coal-derived fuel for the purpose of satisfying the fuel volume requirements of subsection (a)(4) in accordance with this subsection.CommentsClose CommentsPermalink





(2) ENERGY CONTENT RELATIVE TO DIESEL FUEL- For clean coal-derived fuels, 1 gallon of the clean coal-derived fuel shall be considered to be the equivalent of 1 gallon of diesel fuel multiplied by the ratio that--CommentsClose CommentsPermalink





(A) the number of British thermal units of energy produced by the combustion of 1 gallon of the clean coal-derived fuel (as measured under conditions determined by the Secretary); bears toCommentsClose CommentsPermalink





(B) the number of British thermal units of energy produced by the combustion of 1 gallon of diesel fuel (as measured under conditions determined by the Secretary to be comparable to conditions described in subparagraph (A)).CommentsClose CommentsPermalink





(d) Credit Program-CommentsClose CommentsPermalink





(1) IN GENERAL- The President, in consultation with the Secretary and the clean coal-derived fuel requirement of this section.CommentsClose CommentsPermalink





(2) MARKET TRANSPARENCY- In carrying out the credit program under this subsection, the President shall facilitate price transparency in markets for the sale and trade of credits, with due regard for the public interest, the integrity of those markets, fair competition, and the protection of consumers.CommentsClose CommentsPermalink





(e) Waivers-CommentsClose CommentsPermalink





(1) IN GENERAL- The President, in consultation with the Secretary and the Administrator of the Environmental Protection Agency, may waive the requirements of subsection (a) in whole or in part on petition by 1 or more States by reducing the national quantity of clean coal-derived fuel required under subsection (a), based on a determination by the President (after public notice and opportunity for comment), that--CommentsClose CommentsPermalink





(A) implementation of the requirement would severely harm the economy or environment of a State, a region, or the United States; orCommentsClose CommentsPermalink





(B) extreme and unusual circumstances exist that prevent distribution of an adequate supply of domestically-produced clean coal-derived fuel to consumers in the United States.CommentsClose CommentsPermalink





(2) PETITIONS FOR WAIVERS- The President, in consultation with the Secretary and the Administrator of the Environmental Protection Agency, shall approve or disapprove a State petition for a waiver of the requirements of subsection (a) within 90 days after the date on which the petition is received by the President.CommentsClose CommentsPermalink





(3) TERMINATION OF WAIVERS- A waiver granted under paragraph (1) shall terminate after 1 year, but may be renewed by the President after consultation with the Secretary and the Administrator of the Environmental Protection Agency.CommentsClose CommentsPermalink





(f) Small Refineries-CommentsClose CommentsPermalink





(1) TEMPORARY EXEMPTION-CommentsClose CommentsPermalink





(A) IN GENERAL- The requirements of subsection (a) shall not apply to small refineries until calendar year 2018.CommentsClose CommentsPermalink





(B) EXTENSION OF EXEMPTION-CommentsClose CommentsPermalink





(i) STUDY BY SECRETARY- Not later than December 31, 2013, the Secretary shall submit to the President and Congress a report describing the results of a study to determine whether compliance with the requirements of subsection (a) would impose a disproportionate economic hardship on small refineries.CommentsClose CommentsPermalink





(ii) EXTENSION OF EXEMPTION- In the case of a small refinery that the Secretary determines under clause (i) would be subject to a disproportionate economic hardship if required to comply with subsection (a), the President shall extend the exemption under subparagraph (A) for the small refinery for a period of not less than 2 additional years.CommentsClose CommentsPermalink





(2) PETITIONS BASED ON DISPROPORTIONATE ECONOMIC HARDSHIP-CommentsClose CommentsPermalink





(A) EXTENSION OF EXEMPTION- A small refinery may at any time petition the President for an extension of the exemption under paragraph (1) for the reason of disproportionate economic hardship.CommentsClose CommentsPermalink





(B) EVALUATION OF PETITIONS- In evaluating a petition under subparagraph (A), the President, in consultation with the Secretary, shall consider the findings of the study under paragraph (1)(B) and other economic factors.CommentsClose CommentsPermalink





(C) DEADLINE FOR ACTION ON PETITIONS- The President shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the date of receipt of the petition.CommentsClose CommentsPermalink





(3) OPT-IN FOR SMALL REFINERIES- A small refinery shall be subject to the requirements of subsection (a) if the small refinery notifies the President that the small refinery waives the exemption under paragraph (1).CommentsClose CommentsPermalink





(g) Penalties and Enforcement-CommentsClose CommentsPermalink





(1) CIVIL PENALTIES-CommentsClose CommentsPermalink





(A) IN GENERAL- Any person that violates a regulation promulgated under subsection (a), or that fails to furnish any information required under such a regulation, shall be liable to the United States for a civil penalty of not more than the total of--CommentsClose CommentsPermalink





(i) $25,000 for each day of the violation; andCommentsClose CommentsPermalink





(ii) the amount of economic benefit or savings received by the person resulting from the violation, as determined by the President.CommentsClose CommentsPermalink





(B) COLLECTION- Civil penalties under subparagraph (A) shall be assessed by, and collected in a civil action brought by, the Secretary or such other officer of the United States as is designated by the President.CommentsClose CommentsPermalink





(2) INJUNCTIVE AUTHORITY-CommentsClose CommentsPermalink





(A) IN GENERAL- The district courts of the United States shall have jurisdiction to--CommentsClose CommentsPermalink





(i) restrain a violation of a regulation promulgated under subsection (a);CommentsClose CommentsPermalink





(ii) award other appropriate relief; andCommentsClose CommentsPermalink





(iii) compel the furnishing of information required under the regulation.CommentsClose CommentsPermalink





(B) ACTIONS- An action to restrain such violations and compel such actions shall be brought by and in the name of the United States.CommentsClose CommentsPermalink





(C) SUBPOENAS- In the action, a subpoena for a witness who is required to attend a district court in any district may apply in any other district.CommentsClose CommentsPermalink





(h) Effective Date- Except as otherwise specifically provided in this section, this section takes effect on January 1, 2016.CommentsClose CommentsPermalink

Subtitle C--Oil Shale

SEC. 221. REMOVAL OF PROHIBITION ON FINAL REGULATIONS FOR COMMERCIAL LEASING PROGRAM FOR OIL SHALE RESOURCES ON PUBLIC LAND.

Section 433 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2152) is repealed.CommentsClose CommentsPermalink

Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel Development

SEC. 231. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

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

SEC. 232. MULTIYEAR CONTRACT AUTHORITY FOR THE DEPARTMENT OF DEFENSE FOR THE PROCUREMENT OF SYNTHETIC FUELS.

(a) Multiyear Contracts for the Procurement of Synthetic Fuels Authorized-CommentsClose CommentsPermalink





(1) IN GENERAL- Chapter 141 of title 10, United States Code, is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`Sec. 2410r. Multiyear contract authority: purchase of synthetic fuels

`(a) Multiyear Contracts Authorized- The head of an agency may enter into contracts for a period not to exceed 25 years for the purchase of synthetic fuels.CommentsClose CommentsPermalink





`(b) Definitions- In this section:CommentsClose CommentsPermalink





`(1) The term `head of an agency' has the meaning given that term in section 2302(1) of this title.CommentsClose CommentsPermalink





`(2) The term `synthetic fuel' means any liquid, gas, or combination thereof that--CommentsClose CommentsPermalink





`(A) can be used as a substitute for petroleum or natural gas (or any derivative thereof, including chemical feedstocks); andCommentsClose CommentsPermalink





`(B) is produced by chemical or physical transformation of domestic sources of energy.'.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 141 of such title is amended by adding at the end the following new item:CommentsClose CommentsPermalink





`2410r. Multiyear contract authority: purchase of synthetic fuels.'.CommentsClose CommentsPermalink





(b) Regulations- Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall prescribe regulations providing that the head of an agency may initiate a multiyear contract as authorized by section 2410r of title 10, United States Code (as added by subsection (a)), only if the head of the agency has determined in writing that--CommentsClose CommentsPermalink





(1) there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation;CommentsClose CommentsPermalink





(2) the technical risks associated with the technologies for the production of synthetic fuel under the contract are not excessive; andCommentsClose CommentsPermalink





(3) the contract will contain appropriate pricing mechanisms to minimize risk to the Government from significant changes in market prices for energy.CommentsClose CommentsPermalink





(c) Limitation on Use of Authority- No contract may be entered into under the authority in section 2410r of title 10, United States Code (as so added), until the regulations required by subsection (b) are prescribed.CommentsClose CommentsPermalink

Calendar No. 727CommentsClose CommentsPermalink

To promote the energy security of the United States, and for other purposes.CommentsClose CommentsPermalink

May 6, 2008