S 3019 ISCommentsClose CommentsPermalink

To amend the Energy Policy Act of 2005 to promote oil shale and tar sands leasing, and for other purposes.CommentsClose CommentsPermalink

May 14, 2008

Mr. SALAZAR introduced the following bill; which was read twice and referred to the Committee on Energy and Natural ResourcesCommentsClose CommentsPermalink

To amend the Energy Policy Act of 2005 to promote oil shale and tar sands leasing, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Oil Shale and Tar Sands Leasing Act of 2008'.CommentsClose CommentsPermalink

SEC. 2. OIL SHALE AND TAR SANDS LEASING.

Section 369 of the Energy Policy Act of 2005 (42 U.S.C. 15927) is amended--CommentsClose CommentsPermalink





(1) in subsection (d)--CommentsClose CommentsPermalink





(A) in paragraph (1)--CommentsClose CommentsPermalink





(i) by striking `Not later than 18 months after the date of enactment of this Act, in' and inserting the following:CommentsClose CommentsPermalink





`(A) IN GENERAL- Not later than 1 year after the date of enactment of the Oil Shale and Tar Sands Leasing Act of 2008, in'; andCommentsClose CommentsPermalink





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





`(B) ADDITIONAL COMMENT PERIOD- The Governors of each of the States of Colorado, Utah, and Wyoming shall be afforded an additional 90 days beyond the public comment period during which to comment on the final programmatic environmental impact statement prior to issuance of a record of decision by the Secretary.'; andCommentsClose CommentsPermalink





(B) in paragraph (2)--CommentsClose CommentsPermalink





(i) in the heading by striking `(2) FINAL REGULATION- Not' and inserting the following:CommentsClose CommentsPermalink





`(2) PROPOSED REGULATION-CommentsClose CommentsPermalink





`(A) IN GENERAL- Not';CommentsClose CommentsPermalink





(ii) by striking `6 months' and inserting `1 year';CommentsClose CommentsPermalink





(iii) by striking `final' and inserting `proposed'; andCommentsClose CommentsPermalink





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





`(B) PUBLIC COMMENT- The proposed regulations under this paragraph shall be open to public comment for not less than 120 days.';CommentsClose CommentsPermalink





(2) by redesignating subsections (e) through (s) as subsections (g) through (u), respectively;CommentsClose CommentsPermalink





(3) by inserting after subsection (d) the following:CommentsClose CommentsPermalink





`(e) Analysis of Commercial Leasing Program-CommentsClose CommentsPermalink





`(1) IN GENERAL- Not later than 18 months after the date of enactment of the Oil Shale and Tar Sands Leasing Act of 2008, and concurrent with the development of the proposed regulations as required by this section, the Secretary shall, in cooperation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, prepare and submit to Congress a report (including recommendations) that analyzes the elements of a commercial leasing program for oil shale and tar sands, taking into account any findings from the research and development program conducted under subsection (c).CommentsClose CommentsPermalink





`(2) INCLUSIONS- The report under paragraph (1) shall include--CommentsClose CommentsPermalink





`(A) an analysis of--CommentsClose CommentsPermalink





`(i) technologies and research and development programs for the production of oil and other materials from oil shale and tar sands in existence on the date on which the report is prepared;CommentsClose CommentsPermalink





`(ii) whether leases under the program should be issued on a competitive basis;CommentsClose CommentsPermalink





`(iii) the term of the leases;CommentsClose CommentsPermalink





`(iv) the maximum size of the leases;CommentsClose CommentsPermalink





`(v) the minimum size of the leases;CommentsClose CommentsPermalink





`(vi) the use and distribution of bonus bid payments;CommentsClose CommentsPermalink





`(vii) the royalty rate to be applied, including whether a sliding scale royalty rate should be used;CommentsClose CommentsPermalink





`(viii) the maximum number of leases and maximum acreage to be leased under the leasing program to a single lessee or an individual;CommentsClose CommentsPermalink





`(ix) any infrastructure required to support oil shale and tar sands development in industry and communities;CommentsClose CommentsPermalink





`(x) any conditions that should be imposed in leases to minimize the impacts on--CommentsClose CommentsPermalink





`(I) air quality and conditions, including greenhouse gas emissions;CommentsClose CommentsPermalink





`(II) water quality and quantity;CommentsClose CommentsPermalink





`(III) human health;CommentsClose CommentsPermalink





`(IV) local communities; andCommentsClose CommentsPermalink





`(V) wildlife habitat;CommentsClose CommentsPermalink





`(xi) policies that are necessary to mitigate the adverse impacts of commercial oil shale and tar sands exploration, development, and production activities on wildlife and other environmental resources that may be affected by a commercial oil shale and tar sands leasing and development program;CommentsClose CommentsPermalink





`(xii) reclamation bonding requirements that should be imposed to guarantee the reclamation of areas disturbed by oil shale and tar sands exploration, development, and production activities; andCommentsClose CommentsPermalink





`(xiii) appropriate diligent development and minimum production requirements;CommentsClose CommentsPermalink





`(B) an identification of events that should serve as a precursor to commercial leasing, including--CommentsClose CommentsPermalink





`(i) the development of environmentally and commercially viable technologies; andCommentsClose CommentsPermalink





`(ii) the completion of land use planning and environmental reviews; andCommentsClose CommentsPermalink





`(C) an analysis, developed in conjunction with the appropriate State water resources agencies, of the demand for, and availability of, water with respect to the development of oil shale and tar sands, including the best available estimates of the impacts of population growth and climate change on availability and timing of freshwater throughout the Colorado River Basin.CommentsClose CommentsPermalink





`(3) PUBLIC PARTICIPATION- In preparing the report under this subsection, the Secretary shall provide notice to, and solicit comment from--CommentsClose CommentsPermalink





`(A) the public;CommentsClose CommentsPermalink





`(B) representatives of local government;CommentsClose CommentsPermalink





`(C) representatives of industry; andCommentsClose CommentsPermalink





`(D) other interested parties.CommentsClose CommentsPermalink





`(4) PARTICIPATION BY CERTAIN STATES- In preparing the report under this subsection, the Secretary shall--CommentsClose CommentsPermalink





`(A) provide timely notice to, and solicit comment from, the Governors of each of the States of Colorado, Utah, and Wyoming;CommentsClose CommentsPermalink





`(B) allow each of the Governors of Colorado, Utah, and Wyoming a period of not less than 90 days to provide comments on the report; andCommentsClose CommentsPermalink





`(C) incorporate into the report submitted to Congress under paragraph (1) any response of the Secretary to those comments.CommentsClose CommentsPermalink





`(5) INCORPORATION OF FINDINGS BY NAS- In preparing the report required by paragraph (1), the Secretary shall refer to and use information and recommendations made by the National Academy of Sciences in the report described in subsection (f).CommentsClose CommentsPermalink





`(f) National Academy of Sciences Report and Recommendations-CommentsClose CommentsPermalink





`(1) IN GENERAL- Not later than 90 days after the date of enactment of the Oil Shale and Tar Sands Leasing Act of 2008, the Secretary of the Interior, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall enter into an arrangement with the National Academy of Sciences under which the Academy shall conduct a study to assess the environmental and commercial framework for oil shale and tar sands development in the United States.CommentsClose CommentsPermalink





`(2) MATTERS TO BE ADDRESSED- The study shall address--CommentsClose CommentsPermalink





`(A) the importance of oil shale and tar sands production to meet the energy needs of the United States;CommentsClose CommentsPermalink





`(B) the status of oil shale and tar sands research and development efforts;CommentsClose CommentsPermalink





`(C) the likely positive and negative implications of the various technologies for the commercial production of oil from oil shale and tar sands resources, including the cumulative effects of other energy infrastructure necessary for such production, on--CommentsClose CommentsPermalink





`(i) water resources (including surface water and groundwater), including the quantity and quality of water;CommentsClose CommentsPermalink





`(ii) air quality, including greenhouse gas emissions;CommentsClose CommentsPermalink





`(iii) human health;CommentsClose CommentsPermalink





`(iv) local communities;CommentsClose CommentsPermalink





`(v) wildlife habitat; andCommentsClose CommentsPermalink





`(vi) regional energy needs;CommentsClose CommentsPermalink





`(D) the timeframe for viable large-scale commercial oil shale and tar sands production and events that should serve as a precursor to commercial leasing, such as development of commercially viable and environmentally safe technologies;CommentsClose CommentsPermalink





`(E) the feasibility and advisability of initiating a pilot program for commercial leasing;CommentsClose CommentsPermalink





`(F) energy sources needed for extraction technologies and the resulting energy balance and associated costs;CommentsClose CommentsPermalink





`(G) potential greenhouse gas emissions for each technology and sequestration opportunities;CommentsClose CommentsPermalink





`(H) potential social and environmental impacts of commercial oil shale and tar sands production, including groundwater and surface water usage;CommentsClose CommentsPermalink





`(I) workforce capacity requirements associated with large-scale commercial development; andCommentsClose CommentsPermalink





`(J) appropriate terms and conditions for commercial oil shale leases on public land, including royalty rates, diligent development requirements, environmental conditions, and length of the lease term.CommentsClose CommentsPermalink





`(3) RECOMMENDATIONS- The study shall--CommentsClose CommentsPermalink





`(A) analyze the viability of, and timeframe for, environmentally safe commercial oil shale and tar sands development; andCommentsClose CommentsPermalink





`(B) make recommendations as to changes, if any, to Federal law (including regulations) needed to facilitate the commercial production of oil shale and tar sands resources in a manner that minimizes adverse social and environmental impacts and ensures a fair return to the public.CommentsClose CommentsPermalink





`(4) COMPLETION OF STUDY- The National Academy of Sciences shall--CommentsClose CommentsPermalink





`(A) not later than 18 months after the date of enactment of the Oil Shale and Tar Sands Leasing Act of 2008, submit the findings and recommendations of the study to the Secretary of the Interior, the Secretary of Energy, and the Administrator of the Environmental Protection Agency; andCommentsClose CommentsPermalink





`(B) on completion of the study, make the results of the study available to the public.CommentsClose CommentsPermalink





`(5) REPORT TO CONGRESS- Not later than 180 days after receiving the results of the study, the Secretary of the Interior, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall report to Congress on--CommentsClose CommentsPermalink





`(A) the findings and recommendations of the study;CommentsClose CommentsPermalink





`(B) the agreement or disagreement of the Secretary with each of the findings and recommendations of the study; andCommentsClose CommentsPermalink





`(C)(i) a plan and timeframe for implementing the recommendations of the study through regulations or otherwise; orCommentsClose CommentsPermalink





`(ii) if the Secretary declines to implement a recommendation, the justification for declining to implement the recommendation.';CommentsClose CommentsPermalink





(4) in subsection (g) (as redesignated by paragraph (2))--CommentsClose CommentsPermalink





(A) by striking `Not later' and inserting the following:CommentsClose CommentsPermalink





`(1) IN GENERAL- Not later';CommentsClose CommentsPermalink





(B) in the first sentence, by striking `of the final regulation required by subsection (d)' and inserting `of final regulations issued under this section (taking into account the findings and recommendations of the studies and reports required by subsections (e) and (f) and the results of research and development carried out under leases entered into for that purpose)';CommentsClose CommentsPermalink





(C) in the second sentence, by striking `If the Secretary finds sufficient support and interest exists in a State,' and inserting the following:CommentsClose CommentsPermalink





`(2) LEASE SALE- If the Secretary finds sufficient support and interest exists in a State and determines that the technology for the development of tar sands and oil shale resources is commercially and technically viable,';CommentsClose CommentsPermalink





(D) in the third sentence, by striking `Evidence of' and inserting the following:CommentsClose CommentsPermalink





`(3) EVIDENCE OF INTEREST- Evidence of'; andCommentsClose CommentsPermalink





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





`(4) RECOMMENDATIONS OF STATES ON PROPOSED LEASE SALES AND DEVELOPMENT AND PRODUCTION PLANS-CommentsClose CommentsPermalink





`(A) IN GENERAL- Any Governor of an affected State or the executive of any affected local government in the State may submit recommendations to the Secretary regarding the size, timing, or location of a proposed lease sale or with respect to a proposed development and production plan.CommentsClose CommentsPermalink





`(B) FORWARDING LOCAL RECOMMENDATIONS TO GOVERNOR- Prior to submitting recommendations to the Secretary, the executive of any affected local government in any affected State shall forward the recommendations of the executive to the Governor of the State.CommentsClose CommentsPermalink





`(C) DEADLINE- The recommendations shall be submitted not later than 60 days after the date of notice of the proposed lease sale or the date of receipt of the development and production plan.CommentsClose CommentsPermalink





`(D) APPROVAL- The Secretary shall accept the recommendations of the Governor, and may accept the recommendations of the executive of any affected local government, if the Secretary determines, after having provided an opportunity for consultation, that the recommendations provide for a reasonable balance between the national interest and the well-being of the citizens of the affected State.CommentsClose CommentsPermalink





`(E) RATIONALE- The Secretary shall communicate to the Governor, in writing, the reasons for the determination of the Governor--CommentsClose CommentsPermalink





`(i) to accept or reject the recommendations of the Governor; orCommentsClose CommentsPermalink





`(ii) to implement any alternative means, identified in consultation with the Governor, to provide for a reasonable balance between the national interest and the well-being of the citizens of the affected State.CommentsClose CommentsPermalink





`(5) ENVIRONMENTAL COMPLIANCE- An environmental impact statement or similar analysis required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall be required--CommentsClose CommentsPermalink





`(A) prior to any lease sale with respect to the land proposed to be leased under the commercial leasing program established under this subsection; andCommentsClose CommentsPermalink





`(B) on a site-specific basis prior to the authorization of any development activity on any leased land.'; andCommentsClose CommentsPermalink





(5) in subsection (i)(1)(B) (as redesignated by paragraph (2)), by striking `subsection (e)' and inserting `subsection (g)'.CommentsClose CommentsPermalink