[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2436 Reported in House (RH)]
Union Calendar No. 95
107th CONGRESS
1st Session
H. R. 2436
[Report No. 107-160, Part I]
To provide secure energy supplies for the people of the United States,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 10, 2001
Mr. Hansen (for himself, Mr. Young of Alaska, Mr. Tauzin, Mrs. Cubin,
Mr. Thornberry, Mr. Otter, and Mr. Calvert) introduced the following
bill; which was referred to the Committee on Resources, and in addition
to the Committee on Energy and Commerce, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
July 25, 2001
Additional sponsors: Mr. Peterson of Pennsylvania and Mr. Souder
July 25, 2001
Reported from the Committee on Resources with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
July 25, 2001
Referral to the Committee on Energy and Commerce extended for a period
ending not later than July 25, 2001
July 25, 2001
The Committee on Energy and Commerce discharged; committed to the
Committee of the Whole House on the State of the Union and ordered to
be printed
[For text of introduced bill, see copy of bill as introduced on July
10, 2001]
_______________________________________________________________________
A BILL
To provide secure energy supplies for the people of the United States,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Security Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY
Sec. 101. Study of existing rights-of-way on Federal lands to determine
capability to support new pipelines or
other transmission facilities.
Sec. 102. Inventory of energy production potential of all Federal
public lands.
Sec. 103. Review of regulations to eliminate barriers to emerging
energy technology.
Sec. 104. Interagency agreement on environmental review of interstate
natural gas pipeline projects.
Sec. 105. Enhancing energy efficiency in management of Federal lands.
TITLE II--OIL AND GAS DEVELOPMENT
Subtitle A--Offshore Oil and Gas
Sec. 201. Short title.
Sec. 202. Lease sales in Western and Central Planning Area of the Gulf
of Mexico.
Sec. 203. Savings clause.
Sec. 204. Analysis of Gulf of Mexico field size distribution,
international competitiveness, and
incentives for development.
Subtitle B--Improvements to Federal Oil and Gas Management
Sec. 221. Short title.
Sec. 222. Study of impediments to efficient lease operations.
Sec. 223. Elimination of unwarranted denials and stays.
Sec. 224. Limitations on cost recovery for applications.
Sec. 225. Consultation with Secretary of Agriculture.
Subtitle C--Miscellaneous
Sec. 231. Offshore subsalt development.
Sec. 232. Program on oil and gas royalties in kind.
Sec. 233. Cooperative oil and gas research and information centers.
Sec. 234. Marginal well production incentives.
Sec. 235. Reimbursement for costs of NEPA analyses, documentation, and
studies.
TITLE III--GEOTHERMAL ENERGY DEVELOPMENT
Sec. 301. Royalty reduction and relief.
Sec. 302. Exemption from royalties for direct use of low temperature
geothermal energy resources.
Sec. 303. Amendments relating to leasing on Forest Service lands.
Sec. 304. Deadline for determination on pending noncompetitive lease
applications.
Sec. 305. Opening of public lands under military jurisdiction.
Sec. 306. Application of amendments.
Sec. 307. Review and report to Congress.
Sec. 308. Reimbursement for costs of NEPA analyses, documentation, and
studies.
TITLE IV--HYDROPOWER
Sec. 401. Study and report on increasing electric power production
capability of existing facilities.
Sec. 402. Installation of powerformer at Folsom power plant,
California.
Sec. 403. Conservation through pump modernization.
Sec. 404. Study and implementation of increased operational
efficiencies in hydroelectric power
projects.
Sec. 405. Shift of project loads to off-peak periods.
TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY
Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Leasing program for lands within the Coastal Plain.
Sec. 504. Lease sales.
Sec. 505. Grant of leases by the Secretary.
Sec. 506. Lease terms and conditions.
Sec. 507. Coastal Plain environmental protection.
Sec. 508. Expedited judicial review.
Sec. 509. Rights-of-way across the Coastal Plain.
Sec. 510. Conveyance.
Sec. 511. Local government impact aid and community service assistance.
TITLE VI--HISTORIC PRESERVATION
Sec. 601. Prohibition.
Sec. 602. Removal from eligibility.
TITLE VII--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR
Sec. 701. Energy conservation by the Department of the Interior.
TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY
SEC. 101. STUDY OF EXISTING RIGHTS-OF-WAY ON FEDERAL LANDS TO DETERMINE
CAPABILITY TO SUPPORT NEW PIPELINES OR OTHER TRANSMISSION
FACILITIES.
(a) In General.--Within one year after the date of enactment of
this Act, the head of each Federal agency that has authorized a right-
of-way across Federal lands for transportation of energy supplies or
transmission of electricity shall review each such right-of-way and
submit a report to the Secretary of Energy and the Chairman of the
Federal Energy Regulatory Commission regarding--
(1) whether the right-of-way can be used to support new or
additional capacity; and
(2) what modifications or other changes, if any, would be
necessary to accommodate such additional capacity.
(b) Consultations and Considerations.--In performing the review,
the head of each agency shall--
(1) consult with agencies of State, tribal, or local units
of government as appropriate; and
(2) consider whether safety or other concerns related to
current uses might preclude the availability of a right-of-way
for additional or new transportation or transmission
facilities, and set forth those considerations in the report.
SEC. 102. INVENTORY OF ENERGY PRODUCTION POTENTIAL OF ALL FEDERAL
PUBLIC LANDS.
(a) Inventory Requirement.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture and the Secretary of
Energy, shall conduct an inventory of the energy production potential
of all Federal public lands other than national park lands and lands in
any wilderness area, with respect to wind, solar, coal, and geothermal
power production.
(b) Limitations.--
(1) In general.--The Secretary shall not include in the
inventory under this section the matters to be identified in
the inventory under section 604 of the Energy Act of 2000 (42
U.S.C. 6217).
(2) Wind and solar power.--The inventory under this
section--
(A) with respect to wind power production shall be
limited to sites having a mean average wind speed--
(i) exceeding 12.5 miles per hour at a
height of 33 feet; and
(ii) exceeding 15.7 miles per hour at a
height of 164 feet; and
(B) with respect to solar power production shall be
limited to areas rated as receiving 450 watts per
square meter or greater.
(c) Examination of Restrictions and Impediments.--The inventory
shall identify the extent and nature of any restrictions or impediments
to the development of such energy production potential.
(d) Geothermal Power.--The inventory shall include an update of the
1978 Assessment of Geothermal Resources by the United States Geological
Survey.
(e) Completion and Updating.--The Secretary--
(1) shall complete the inventory by not later than 2 years
after the date of the enactment of this Act; and
(2) shall update the inventory regularly thereafter.
(f) Reports.--The Secretary shall submit to the Committee on
Resources of the House of Representatives and to the Committee on
Energy and Natural Resources of the Senate and make publicly
available--
(1) a report containing the inventory under this section,
by not later than 2 years after the effective date of this
section; and
(2) each update of such inventory.
SEC. 103. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO EMERGING
ENERGY TECHNOLOGY.
(a) In General.--Each Federal agency shall carry out a review of
its regulations and standards to determine those that act as a barrier
to market entry for emerging energy-efficient technologies, including
fuel cells, combined heat and power, and distributed generation
(including small-scale renewable energy).
(b) Report to Congress.--No later than 18 months after date of
enactment of this Act, each agency shall provide a report to the
Congress and the President detailing all regulatory barriers to
emerging energy-efficient technologies, along with actions the agency
intends to take, or has taken, to remove such barriers.
(c) Periodic Review.--Each agency shall subsequently review its
regulations and standards in this manner no less frequently than every
5 years, and report their findings to the Congress and the President.
Such reviews shall include a detailed analysis of all agency actions
taken to remove existing barriers to emerging energy technologies.
SEC. 104. INTERAGENCY AGREEMENT ON ENVIRONMENTAL REVIEW OF INTERSTATE
NATURAL GAS PIPELINE PROJECTS.
(a) In General.--The Secretary of Energy, in coordination with the
Federal Energy Regulatory Commission, shall establish an administrative
interagency task force to develop an interagency agreement to expedite
and facilitate the environmental review and permitting of interstate
natural gas pipeline projects.
(b) Task Force Members.--The task force shall include a
representative of each of the Bureau of Land Management, the United
States Fish and Wildlife Service, the Army Corps of Engineers, the
Forest Service, the Environmental Protection Agency, the Advisory
Council on Historic Preservation, and such other agencies as the
Secretary of Energy and the Federal Energy Regulatory Commission
consider appropriate.
(c) Terms of Agreement.--The interagency agreement shall require
that agencies complete their review of interstate pipeline projects
within a specific period of time after referral of the matter by the
Federal Energy Regulatory Commission.
(d) Submittal of Agreement.--The Secretary of Energy shall submit a
final interagency agreement under this section to the Congress by not
later than 6 months after the effective date of this section.
SEC. 105. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.
(a) Sense of the Congress.--It is the sense of Congress that
Federal land managing agencies should enhance the use of energy
efficient technologies in the management of natural resources.
(b) Energy Efficient Buildings.--To the extent economically
practicable, the Secretary of the Interior and the Secretary of
Agriculture shall seek to incorporate energy efficient technologies in
public and administrative buildings associated with management of the
National Park System, National Wildlife Refuge System, National Forest
System, and other public lands and resources managed by such
Secretaries.
(c) Energy Efficient Vehicles.--To the extent economically
practicable, the Secretary of the Interior and the Secretary of
Agriculture shall seek to use energy efficient motor vehicles,
including vehicles equipped with biodiesel or hybrid engine
technologies, in the management of the National Park System, National
Wildlife Refuge System, and other public lands and managed by the
Secretaries.
TITLE II--OIL AND GAS DEVELOPMENT
Subtitle A--Offshore Oil and Gas
SEC. 201. SHORT TITLE.
This subtitle may be referred to as the ``Royalty Relief Extension
Act of 2001''.
SEC. 202. LEASE SALES IN WESTERN AND CENTRAL PLANNING AREA OF THE GULF
OF MEXICO.
(a) In General.--For all tracts located in water depths of greater
than 200 meters in the Western and Central Planning Area of the Gulf of
Mexico, including that portion of the Eastern Planning Area of the Gulf
of Mexico encompassing whole lease blocks lying west of 87 degrees, 30
minutes West longitude, any oil or gas lease sale under the Outer
Continental Shelf Lands Act occurring within 2 years after the date of
enactment of this Act shall use the bidding system authorized in
section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (30 U.S.C.
1337(a)(1)(H)), except that the suspension of royalties shall be set at
a volume of not less than the following:
(1) 17.5 million barrels of oil equivalent for fields in
water depths of 200 to 400 meters.
(2) 52.5 million barrels of oil equivalent for fields in
400 to 800 meters of water.
(3) 9 million barrels of oil equivalent for each lease in
water depths of 800 to 1,600 meters.
(4) 12 million barrels of oil equivalent for each lease in
water depths greater than 1,600 meters.
(b) Relationship to Existing Authority.--Except as expressly
provided in this section, nothing in this section is intended to limit
the authority of the Secretary of the Interior under the Outer
Continental Shelf Lands Act (43 U.S.C. 1301 et seq.) to provide royalty
suspension.
SEC. 203. SAVINGS CLAUSE.
Nothing in this subtitle shall be construed to affect any offshore
pre-leasing, leasing, or development moratorium, including any
moratorium applicable to the Eastern Planning Area of the Gulf of
Mexico located off the Gulf Coast of Florida.
SEC. 204. ANALYSIS OF GULF OF MEXICO FIELD SIZE DISTRIBUTION,
INTERNATIONAL COMPETITIVENESS, AND INCENTIVES FOR
DEVELOPMENT.
(a) In General.--The Secretary of the Interior and the Secretary of
Energy shall enter into appropriate arrangements with the National
Academy of Sciences to commission the Academy to perform the following:
(1) Conduct an analysis and review of existing Gulf of
Mexico oil and natural gas resource assessments, including--
(A) analysis and review of assessments recently
performed by the Minerals Management Service, the 1999
National Petroleum Council Gas Study, the Department of
Energy's Offshore Marginal Property Study, and the
Advanced Resources International, Inc. Deepwater Gulf
of Mexico model; and
(B) evaluation and comparison of the accuracy of
assumptions of the existing assessments with respect to
resource field size distribution, hydrocarbon
potential, and scenarios for leasing, exploration, and
development.
(2) Evaluate the lease terms and conditions offered by the
Minerals Management Service for Lease Sale 178, and compare the
financial incentives offered by such terms and conditions to
financial incentives offered by the terms and conditions that
apply under leases for other offshore areas that are competing
for the same limited offshore oil and gas exploration and
development capital, including offshore areas of West Africa
and Brazil.
(3) Recommend what level of incentives for all water depths
are appropriate in order to ensure that the United States
optimizes the domestic supply of oil and natural gas from the
offshore areas of the Gulf of Mexico that are not subject to
current leasing moratoria. Recommendations under this paragraph
should be made in the context of the importance of the oil and
natural gas resources of the Gulf of Mexico to the future
energy and economic needs of the United States.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary of the Interior shall submit a report to the
Committee on Resources in the House of Representatives and the
Committee on Energy and Natural Resources in the Senate, summarizing
the findings of the National Academy of Sciences pursuant to subsection
(a) and providing recommendations of the Secretary for new policies or
other actions that could help to further increase oil and natural gas
production from the Gulf of Mexico.
Subtitle B--Improvements to Federal Oil and Gas Management
SEC. 221. SHORT TITLE.
This subtitle may be cited as the ``Federal Oil and Gas Lease
Management Improvement Demonstration Program Act of 2001''.
SEC. 222. STUDY OF IMPEDIMENTS TO EFFICIENT LEASE OPERATIONS.
(a) In General.--The Secretary of the Interior and the Secretary of
Agriculture shall jointly undertake a study of the impediments to
efficient oil and gas leasing and operations on Federal onshore lands
in order to identify means by which unnecessary impediments to the
expeditious exploration and production of oil and natural gas on such
lands can be removed.
(b) Contents.--The study under subsection (a) shall include the
following:
(1) A review of the process by which Federal land managers
accept or reject an offer to lease, including the timeframes in
which such offers are acted upon, the reasons for any delays in
acting upon such offers, and any recommendations for expediting
the response to such offers.
(2) A review of the approval process for applications for
permits to drill, including the timeframes in which such
applications are approved, the impact of compliance with other
Federal laws on such timeframes, any other reasons for delays
in making such approvals, and any recommendations for
expediting such approvals.
(3) A review of the approval process for surface use plans
of operation, including the timeframes in which such
applications are approved, the impact of compliance with other
Federal laws on such timeframes, any other reasons for delays
in making such approvals, and any recommendations for
expediting such approvals.
(4) A review of the process for administrative appeal of
decisions or orders of officers or employees of the Bureau of
Land Management with respect to a Federal oil or gas lease,
including the timeframes in which such appeals are heard and
decided, any reasons for delays in hearing or deciding such
appeals, and any recommendations for expediting the appeals
process.
(c) Report.--The Secretaries shall report the findings and
recommendations resulting from the study required by this section to
the Committee on Resources of the House of Representatives and to the
Committee on Energy and Natural Resources of the Senate no later than 6
months after the date of the enactment of this Act.
SEC. 223. ELIMINATION OF UNWARRANTED DENIALS AND STAYS.
(a) In General.--The Secretary shall ensure that unwarranted
denials and stays of lease issuance and unwarranted restrictions on
lease operations are eliminated from the administration of oil and
natural gas leasing on Federal land.
(b) Land Designated for Multiple Use.--Federal land available for
oil and natural gas leasing under any Bureau of Land Management
resource management plan or Forest Service leasing analysis shall be
available without lease stipulations more stringent than restrictions
on surface use and operations imposed under the laws (including
regulations) of the oil and natural gas conservation authority of the
State in which the lands are located, unless the Secretary includes in
the decision approving the management plan or leasing analysis or in
the Secretary's acceptance of an offer to lease a written explanation
why more stringent stipulations are warranted.
(c) Rejection of Offer To Lease.--
(1) In general.--If the Secretary rejects an offer to lease
Federal lands for oil or natural gas development on the ground
that the land is unavailable for oil and natural gas leasing,
the Secretary shall provide a written, detailed explanation of
the reasons the land is unavailable for leasing.
(2) Previous resource management decision.--If the
determination of unavailability is based on a previous resource
management decision, the explanation shall include a careful
assessment of whether the reasons underlying the previous
decision are still persuasive.
(3) Segregation of available land from unavailable land.--
The Secretary may not reject an offer to lease Federal land for
oil and natural gas development that is available for such
leasing on the ground that the offer includes land unavailable
for leasing. The Secretary shall segregate available land from
unavailable land, on the offeror's request following notice by
the Secretary, before acting on the offer to lease.
(d) Disapproval or Required Modification of Surface Use Plans of
Operations and Application for Permit To Drill.--The Secretary shall
provide a written, detailed explanation of the reasons for disapproving
or requiring modifications of any surface use plan of operations or
application for permit to drill with respect to oil or natural gas
development on Federal lands.
SEC. 224. LIMITATION ON COST RECOVERY FOR APPLICATIONS.
Notwithstanding sections 304 and 504 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1734, 1764) and section 9701 of title
31, United States Code, the Secretary shall not recover the Secretary's
costs with respect to applications and other documents relating to oil
and gas leases.
SEC. 225. CONSULTATION WITH SECRETARY OF AGRICULTURE.
Section 17(h) of the Mineral Leasing Act (30 U.S.C. 226(h)) is
amended to read as follows:
``(h)(1) In issuing any lease on National Forest System lands
reserved from the public domain, the Secretary of the Interior shall
consult with the Secretary of Agriculture in determining stipulations
on surface use under the lease.
``(2)(A) A lease on lands referred to in paragraph (1) may not be
issued if the Secretary of Agriculture determines, after consultation
under paragraph (1), that the terms and conditions of the lease,
including any prohibition on surface occupancy for lease operations,
will not be sufficient to adequately protect such lands under the
National Forest Management Act of 1976 (16 U.S.C. 1600 et seq.).
``(B) The authority of the Secretary of Agriculture under this
paragraph may be delegated only to the Undersecretary of Agriculture
for Natural Resources and Environment.''.
Subtitle C--Miscellaneous
SEC. 231. OFFSHORE SUBSALT DEVELOPMENT.
Section 5 of the Outer Continental Shelf Lands Act of 1953 (43
U.S.C. 1334) is amended by adding at the end the following:
``(k) Suspension of Operations for Subsalt Exploration.--
Notwithstanding any other provision of law or regulation, to prevent
waste caused by the drilling of unnecessary wells and to facilitate the
discovery of additional hydrocarbon reserves, the Secretary may grant a
request for a suspension of operations under any lease to allow the
reprocessing and reinterpretation of geophysical data to identify and
define drilling objectives beneath allocthonus salt sheets.''.
SEC. 232. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.
(a) Applicability of Section.--Notwithstanding any other provision
of law, the provisions of this section shall apply to all royalty in
kind accepted by the Secretary of the Interior under any Federal oil or
gas lease or permit under section 36 of the Mineral Leasing Act (30
U.S.C. 192), section 27 of the Outer Continental Shelf Lands Act (43
U.S.C. 1353), or any other mineral leasing law, in the period beginning
on the date of enactment of this Act through September 30, 2006.
(b) Terms and Conditions.--All royalty accruing to the United
States under any Federal oil or gas lease or permit under the Mineral
Leasing Act (30 U.S.C. 181 et seq.) or the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.) shall, on the demand of the
Secretary of the Interior, be paid in oil or gas. If the Secretary of
the Interior makes such a demand, the following provisions apply to
such payment:
(1) Delivery by, or on behalf of, the lessee of the royalty
amount and quality due under the lease satisfies the lessee's
royalty obligation for the amount delivered, except that
transportation and processing reimbursements paid to, or
deductions claimed by, the lessee shall be subject to review
and audit.
(2) Royalty production shall be placed in marketable
condition by the lessee at no cost to the United States.
(3) The Secretary of the Interior may--
(A) sell or otherwise dispose of any royalty oil or
gas taken in kind for not less than the market price;
and
(B) transport or process any oil or gas royalty
taken in kind.
(4) The Secretary of the Interior may, notwithstanding
section 3302 of title 31, United States Code, retain and use a
portion of the revenues from the sale of oil and gas royalties
taken in kind that otherwise would be deposited to
miscellaneous receipts, without regard to fiscal year
limitation, or may use royalty production, to pay the cost of--
(A) transporting the oil or gas,
(B) processing the gas, or
(C) disposing of the oil or gas.
(5) The Secretary may not use revenues from the sale of oil
and gas royalties taken in kind to pay for personnel, travel,
or other administrative costs of the Federal Government.
(c) Reimbursement of Cost.--If the lessee, pursuant to an agreement
with the United States or as provided in the lease, processes the
royalty gas or delivers the royalty oil or gas at a point not on or
adjacent to the lease area, the Secretary of the Interior shall--
(1) reimburse the lessee for the reasonable costs of
transportation (not including gathering) from the lease to the
point of delivery or for processing costs; or
(2) at the discretion of the Secretary of the Interior,
allow the lessee to deduct such transportation or processing
costs in reporting and paying royalties in value for other Federal oil
and gas leases.
(d) Benefit to the United States Required.--The Secretary may
receive oil or gas royalties in kind only if the Secretary determines
that receiving such royalties provides benefits to the United States
greater than or equal to those that would be realized under a
comparable royalty in value program.
(e) Report to Congress.--For each of the fiscal years 2002 through
2006 in which the United States takes oil or gas royalties in kind from
production in any State or from the Outer Continental Shelf, excluding
royalties taken in kind and sold to refineries under subsection (h),
the Secretary of the Interior shall provide a report to the Congress
describing--
(1) the methodology or methodologies used by the Secretary
to determine compliance with subsection (d), including
performance standards for comparing amounts received by the
United States derived from such royalties in kind to amounts
likely to have been received had royalties been taken in value;
(2) an explanation of the evaluation that led the Secretary
to take royalties in kind from a lease or group of leases,
including the expected revenue effect of taking royalties in
kind;
(3) actual amounts received by the United States derived
from taking royalties in kind, and costs and savings incurred
by the United States associated with taking royalties in kind;
and
(4) an evaluation of other relevant public benefits or
detriments associated with taking royalties in kind.
(f) Deduction of Expenses.--
(1) In general.--Before making payments under section 35 of
the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of the
Outer Continental Shelf Lands Act (30 U.S.C. 1337(g)) of
revenues derived from the sale of royalty production taken in
kind from a lease, the Secretary of the Interior shall deduct
amounts paid or deducted under subsections (b)(4) and (c), and
shall deposit such amounts to miscellaneous receipts.
(2) Accounting for deductions.--If the Secretary of the
Interior allows the lessee to deduct transportation or
processing costs under subsection (c), the Secretary may not
reduce any payments to recipients of revenues derived from any
other Federal oil and gas lease as a consequence of that
deduction.
(g) Consultation With States.--The Secretary of the Interior--
(1) shall consult with a State before conducting a royalty
in kind program under this title within the State, and may
delegate management of any portion of the Federal royalty in
kind program to such State except as otherwise prohibited by
Federal law; and
(2) shall consult annually with any State from which
Federal oil or gas royalty is being taken in kind to ensure to
the maximum extent practicable that the royalty in kind program
provides revenues to the State greater than or equal to those
which would be realized under a comparable royalty in value
program.
(h) Provisions for Small Refineries.--
(1) Preference.--If the Secretary of the Interior
determines that sufficient supplies of crude oil are not
available in the open market to refineries not having their own
source of supply for crude oil, the Secretary may grant
preference to such refineries in the sale of any royalty oil
accruing or reserved to the United States under Federal oil and
gas leases issued under any mineral leasing law, for processing
or use in such refineries at private sale at not less than the
market price.
(2) Proration among refineries in production area.--In
disposing of oil under this subsection, the Secretary of the
Interior may, at the discretion of the Secretary, prorate such
oil among such refineries in the area in which the oil is
produced.
(i) Disposition to Federal Agencies.--
(1) Onshore royalty.--Any royalty oil or gas taken by the
Secretary in kind from onshore oil and gas leases may be sold
at not less than the market price to any department or agency
of the United States.
(2) Offshore royalty.--Any royalty oil or gas taken in kind
from Federal oil and gas leases on the Outer Continental Shelf
may be disposed of only under section 27 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353).
(j) Preference for Federal Low-Income Energy Assistance Programs.--
In disposing of royalty oil or gas taken in kind under this section,
the Secretary may grant a preference to any person, including any State
or Federal agency, for the purpose of providing additional resources to
any Federal low-income energy assistance program.
SEC. 233. COOPERATIVE OIL AND GAS RESEARCH AND INFORMATION CENTERS.
(a) In General.--The Secretary of the Interior may establish and
operate in accordance with this section regional centers administered
by the United States Geological Survey. Each such center shall be known
as a United States Geological Survey Cooperative Oil and Gas Research
and Information Center.
(b) Partnership.--Each Center shall be established and operated
under a partnership with the government of the State in which the
Center is located, through the agency of the State that is responsible
for geological survey activities.
(c) Functions.--The Secretary, through each such Center, shall--
(1) conduct oil and natural gas exploration and production
research in the region in which the Center is located; and
(2) archive and provide public access to data regarding oil
and natural gas reserves and production in the region,
including information developed through research under
paragraph (1).
(d) Research.--
(1) Cost sharing.--The Federal share of the cost of
research conducted under this section may not exceed 50
percent.
(2) Private contributions.--The Secretary--
(A) may accept private contributions of property
and services for research conducted under this section;
and
(B) shall apply the value of such contributions to
the non-Federal share of the costs of such research.
SEC. 234. MARGINAL WELL PRODUCTION INCENTIVES.
To enhance the economics of marginal oil and gas production by
increasing the ultimate recovery from marginal wells when the cash
price of West Texas Intermediate crude oil, as posted on the Dow Jones
Commodities Index chart, is less than $15 per barrel for 180
consecutive pricing days or when the price of natural gas delivered at
Henry Hub, Louisiana, is less than $2.00 per million British thermal
units for 180 consecutive days, the Secretary shall reduce the royalty
rate as production declines for--
(1) onshore oil wells producing less than 30 barrels per
day;
(2) onshore gas wells producing less than 120 million
British thermal units per day;
(3) offshore oil wells producing less than 300 barrels of
oil per day; and
(4) offshore gas wells producing less than 1,200 million
British thermal units per day.
SEC. 235. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND
STUDIES.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by
inserting after section 37 the following:
``reimbursement for costs of certain analyses, documentation, and
studies
``Sec. 38. (a) In General.--The Secretary of the Interior shall
reimburse a person who is a lessee, operator, operating rights owner,
or applicant for an oil or gas lease under this Act for costs incurred
by the person in preparing any project-level analysis, documentation,
or related study required under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) with respect to the lease, through
royalty credits attributable to the lease, unit agreement, or project
area for which the analysis, documentation, or related study is
prepared.
``(b) Conditions.--The Secretary shall provide reimbursement under
subsection (b) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily; and
``(3) the person maintains records of its costs in
accordance with regulations prescribed by the Secretary.''.
(c) Application.--The amendments made by this section shall apply
with respect to any lease entered into before, on, or after the date of
the enactment of this Act.
(d) Deadline for Regulations.--The Secretary shall issue
regulations implementing the amendments made by this section by not
later than 90 days after the date of the enactment of this Act.
TITLE III--GEOTHERMAL ENERGY DEVELOPMENT
SEC. 301. ROYALTY REDUCTION AND RELIEF.
(a) Royalty Reduction.--Section 5(a) of the Geothermal Steam Act of
1970 (30 U.S.C. 1004(a)) is amended by striking ``not less than 10 per
centum or more than 15 per centum'' and inserting ``not more than 8 per
centum''.
(b) Royalty Relief.--
(1) In general.--Notwithstanding section 5 of the
Geothermal Steam Act of 1970 (30 U.S.C. 1004(a)) and any
provision of any lease under that Act, no royalty is required
to be paid--
(A) under any qualified geothermal energy lease
with respect to commercial production of heat or energy
from a facility that begins such production in the 5-
year period beginning on the date of the enactment of
this Act; or
(B) on qualified expansion geothermal energy.
(2) 3-year application.--Paragraph (1) applies only to
commercial production of heat or energy from a facility in the
first 3 years of such production.
(c) Definitions.--In this section:
(1) Qualified expansion geothermal energy.--The term
``qualified expansion geothermal energy''--
(A) subject to subparagraph (B), means geothermal
energy produced from a generation facility for which
the rated capacity is increased by more than 10 percent
as a result of expansion of the facility carried out in
the 5-year period beginning on the date of enactment of
this Act; and
(B) does not include the rated capacity of the
generation facility on the date of enactment of this
Act.
(2) Qualified geothermal energy lease.--The term
``qualified geothermal energy lease'' means a lease under the
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)--
(A) that was executed before the end of the 5-year
period beginning on the date of the enactment of this
Act; and
(B) under which no commercial production of any
form of heat or energy occurred before the date of the
enactment of this Act.
SEC. 302. EXEMPTION FROM ROYALTIES FOR DIRECT USE OF LOW TEMPERATURE
GEOTHERMAL ENERGY RESOURCES.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) is
amended--
(1) in paragraph (c) by redesignating subparagraphs (1) and
(2) as subparagraphs (A) and (B);
(2) by redesignating paragraphs (a) through (d) in order as
paragraphs (1) through (4);
(3) by inserting ``(a) In General.--'' after ``Sec. 5.'';
and
(4) by adding at the end the following new subsection:
``(b) Exemption for Use of Low Temperature Resources.--
``(1) In general.--In lieu of any royalty or rental under
subsection (a), a lease for qualified development and direct
utilization of low temperature geothermal resources shall
provide for payment by the lessee of an annual fee of not less
than $100, and not more than $1,000, in accordance with the
schedule issued under paragraph (2).
``(2) Schedule.--The Secretary shall issue a schedule of
fees under this section under which a fee is based on the scale
of development and utilization to which the fee applies.
``(3) Definitions.--In this subsection:
``(A) Low temperature geothermal resources.--The
term `low temperature geothermal resources' means
geothermal steam and associated geothermal resources
having a temperature of less than 195 degrees
Fahrenheit.
``(B) Qualified development and direct
utilization.--The term `qualified development and
direct utilization' means development and utilization
in which all products of geothermal resources, other
than any heat utilized, are returned to the geothermal
formation from which they are produced.''.
SEC. 303. AMENDMENTS RELATING TO LEASING ON FOREST SERVICE LANDS.
The Geothermal Steam Act of 1970 is amended--
(1) in section 15(b) (30 U.S.C. 1014(b))--
(A) by inserting ``(1)'' after ``(b)''; and
(B) in paragraph (1) (as designated by subparagraph
(A) of this paragraph) in the first sentence--
(i) by striking ``with the consent of,
and'' and inserting ``after consultation with
the Secretary of Agriculture and''; and
(ii) by striking ``the head of that
Department'' and inserting ``the Secretary of
Agriculture''; and
(2) by adding at the end the following:
``(2)(A) A geothermal lease for lands withdrawn or acquired in aid
of functions of the Department of Agriculture may not be issued if the
Secretary of Agriculture, after the consultation required by paragraph
(1), determines that no terms or conditions, including a prohibition on
surface occupancy for lease operations, would be sufficient to
adequately protect such lands under the National Forest Management Act
of 1976 (16 U.S.C. 1600 et seq.).
``(B) The authority of the Secretary of Agriculture under this
paragraph may be delegated only to the Undersecretary of Agriculture
for Natural Resources and Environment.''.
SEC. 304. DEADLINE FOR DETERMINATION ON PENDING NONCOMPETITIVE LEASE
APPLICATIONS.
Not later than 90 days after the date of the enactment of this Act,
the Secretary of the Interior shall, with respect to each application
pending on the date of the enactment of this Act for a lease under the
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.), issue a final
determination of--
(1) whether or not to conduct a lease sale by competitive
bidding; and
(2) whether or not to award a lease without competitive
bidding.
SEC. 305. OPENING OF PUBLIC LANDS UNDER MILITARY JURISDICTION.
(a) In General.--Except as otherwise provided in the Geothermal
Steam Act of 1970 (30 U.S.C. 1001 et seq.) and other provisions of
Federal law applicable to development of geothermal energy resources
within public lands, all public lands under the jurisdiction of a
Secretary of a military department shall be open to the operation of
such laws and development and utilization of geothermal steam and
associated geothermal resources, as that term is defined in section 2
of the Geothermal Steam Act of 1970 (30 U.S.C. 1001), without the
necessity for further action by the Secretary or the Congress.
(b) Conforming Amendment.--Section 2689 of title 10, United States
Code, is amended by striking ``including public lands,'' and inserting
``other than public lands,''.
(c) Treatment of Existing Leases.--Upon the expiration of any lease
in effect on the date of the enactment of this Act of public lands
under the jurisdiction of a military department for the development of
any geothermal resource, such lease may, at the option of the lessee--
(1) be treated as a lease under the Geothermal Steam Act of
1970 (30 U.S.C. 1001 et seq.), and be renewed in accordance
with such Act; or
(2) be renewed in accordance with the terms of the lease,
if such renewal is authorized by such terms.
(d) Regulations.--The Secretary of the Interior, with the advice
and concurrence of the Secretary of the military department concerned,
shall prescribe such regulations to carry out this section as may be
necessary. Such regulations shall contain guidelines to assist in
determining how much, if any, of the surface of any lands opened
pursuant to this section may be used for purposes incident to
geothermal energy resources development and utilization.
(e) Closure for Purposes of National Defense or Security.--In the
event of a national emergency or for purposes of national defense or
security, the Secretary of the Interior, at the request of the
Secretary of the military department concerned, shall close any lands
that have been opened to geothermal energy resources leasing pursuant
to this section.
SEC. 306. APPLICATION OF AMENDMENTS.
The amendments made by this title apply with respect to any lease
executed before, on, or after the date of the enactment of this Act.
SEC. 307. REVIEW AND REPORT TO CONGRESS.
The Secretary of the Interior shall promptly review and report to
the Congress regarding the status of all moratoria on and withdrawals
from leasing under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et
seq.) of known geothermal resources areas (as that term is defined in
section 2 of that Act (30 U.S.C. 1001), specifying for each such area
whether the basis for such moratoria or withdrawal still applies.
SEC. 308. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND
STUDIES.
(a) In General.--The Geothermal Steam Act of 1970 (30 U.S.C. 1001
et seq.) is amended by adding at the end the following:
``reimbursement for costs of certain analyses, documentation, and
studies
``Sec. 30. (a) In General.--The Secretary of the Interior shall
reimburse a person who is a lessee, operator, operating rights owner,
or applicant for a lease under this Act for costs incurred by the
person in preparing any project-level analysis, documentation, or
related study required under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) with respect to the lease, through
royalty credits attributable to the lease, unit agreement, or project
area for which the analysis, documentation, or related study is
prepared.
``(b) Conditions.--The Secretary shall provide reimbursement under
subsection (a) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily; and
``(3) the person maintains records of its costs in
accordance with regulations prescribed by the Secretary.''.
(b) Application.--The amendments made by this section shall apply
with respect to any lease entered into before, on, or after the date of
the enactment of this Act.
(c) Deadline for Regulations.--The Secretary shall issue
regulations implementing the amendments made by this section by not
later than 90 days after the date of the enactment of this Act.
TITLE IV--HYDROPOWER
SEC. 401. STUDY AND REPORT ON INCREASING ELECTRIC POWER PRODUCTION
CAPABILITY OF EXISTING FACILITIES.
(a) In General.--The Secretary of the Interior shall conduct a
study of the potential for increasing electric power production
capability at existing facilities under the administrative jurisdiction
of the Secretary.
(b) Content.--The study under this section shall include
identification and description in detail of each facility that is
capable, with or without modification, of producing additional
hydroelectric power, including estimation of the existing potential for
the facility to generate hydroelectric power.
(c) Report.--The Secretary shall submit to the Congress a report on
the findings, conclusions, and recommendations of the study under this
section by not later than 12 months after the date of enactment of this
Act. The Secretary shall include in the report the following:
(1) The identifications, descriptions, and estimations
referred to in subsection (b).
(2) A description of activities the Secretary is currently
conducting or considering, or that could be considered, to
produce additional hydroelectric power from each identified
facility.
(3) A summary of action that has already been taken by the
Secretary to produce additional hydroelectric power from each
identified facility.
(4) The costs to install, upgrade, or modify equipment or
take other actions to produce additional hydroelectric power
from each identified facility.
(5) The benefits that would be achieved by such
installation, upgrade, modification, or other action, including
quantified estimates of any additional energy or capacity from
each facility identified under subsection (b).
(6) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric power
production by replacing turbine runners.
(7) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric power
production by performing generator uprates and rewinds.
(8) The impact of increased hydroelectric power production
on irrigation, fish, wildlife, Indian tribes, river health,
water quality, navigation, recreation, fishing, and flood
control.
(9) Any additional recommendations the Secretary considers
advisable to increase hydroelectric power production from, and
reduce costs and improve efficiency at, facilities under the
jurisdiction of the Secretary.
SEC. 402. INSTALLATION OF POWERFORMER AT FOLSOM POWER PLANT,
CALIFORNIA.
(a) In General.--The Secretary of the Interior may install a
powerformer at the Bureau of Reclamation Folsom power plant in Folsom,
California, to replace a generator and transformer that are due for
replacement due to age.
(b) Reimbursable Costs.--Costs incurred by the United States for
installation of a powerformer under this section shall be treated as
reimbursable costs and shall bear interest at current long-term
borrowing rates of the United States Treasury at the time of
acquisition.
(c) Local Cost Sharing.--In addition to reimbursable costs under
subsection (b), the Secretary shall seek contributions from power users
toward the costs of the powerformer and its installation.
SEC. 403. CONSERVATION THROUGH PUMP MODERNIZATION.
(a) Pump Replacement Program.--The Secretary of the Interior
shall--
(1) conduct a study to determine what pumps associated with
water delivery projects should be replaced, based on a cost-
benefit analysis of modernizing pumping installations,
including determination and consideration of the savings in
energy costs that would result from such replacement; and
(2) based on the findings of the study, replace each pump
for which the benefits of such replacement (including such
energy costs savings) is greater than the cost of the pump
replacement.
(b) Costs.--
(1) Reimbursable costs.--Subject to the limitation in
paragraph (3), the costs incurred by the United States for
replacement of any pump under this section shall be treated as
reimbursable costs and shall bear interest at current long-term
borrowing rates of the United States Treasury at the time of
acquisition.
(2) Local cost sharing.--The Secretary may enter into an
agreement with project beneficiaries to secure up-front payment
of all or a portion of the reimbursable costs of any pump
replacement authorized or undertaken by the Secretary under
this section.
(3) Commercial firm power rate impacts.--The commercial
firm power rate for the Reclamation project having a pump
replacement performed under this section shall not be increased
as a result of the replacement.
(c) Authorization of Appropriations.--For replacement of pumps
under this section there is authorized to be appropriated to the
Secretary $20,000,000.
SEC. 404. STUDY AND IMPLEMENTATION OF INCREASED OPERATIONAL
EFFICIENCIES IN HYDROELECTRIC POWER PROJECTS.
(a) In General.--The Secretary of Interior shall conduct a study of
operational methods and water scheduling techniques at all
hydroelectric power plants under the administrative jurisdiction of the
Secretary that have an electric power production capacity greater than
50 megawatts, to--
(1) determine whether such power plants and associated
river systems are operated so as to maximize energy and
capacity capabilities; and
(2) identify measures that can be taken to improve
operational flexibility at such plants to achieve such
maximization.
(b) Report.--The Secretary shall submit a report on the findings,
conclusions, and recommendations of the study under this section by not
later than 18 months after the date of the enactment of this Act,
including a summary of the determinations and identifications under
paragraphs (1) and (2) of subsection (a).
(c) Cooperation by Federal Power Marketing Administrations.--The
Secretary shall coordinate with the Administrator of each Federal power
marketing administration in--
(1) determining how the value of electric power produced by
each hydroelectric power facility that produces power marketed
by the administration can be maximized; and
(2) implementing measures identified under subsection
(a)(2).
(d) Limitation on Implementation of Measures.--Implementation under
subsections (a)(2) and (b)(2) shall be limited to those measures that
can be implemented within the constraints imposed on Department of the
Interior facilities by other uses required by law.
SEC. 405. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.
(a) In General.--The Secretary of the Interior shall--
(1) review electric power consumption by Bureau of
Reclamation facilities for water pumping purposes; and
(2) make such adjustments in such pumping as possible to
minimize the amount of electric power consumed for such pumping
during periods of peak electric power consumption, including by
performing as much of such pumping as possible during off-peak
hours at night.
(b) Consent of Affected Irrigation Customers Required.--The
Secretary may not under this section make any adjustment in pumping at
a facility without the consent of each person that has contracted with
the United States for delivery of water from the facility for use for
irrigation and that would be affected by such adjustment.
(c) Existing Obligations Not Affected.--This section shall not be
construed to affect any existing obligation of the Secretary to provide
electric power, water, or other benefits from Bureau of Reclamation
facilities.
TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY
SEC. 501. SHORT TITLE.
This title may be cited as the ``Arctic Coastal Plain Domestic
Energy Security Act of 2001''.
SEC. 502. DEFINITIONS.
In this title:
(1) Coastal plain.--The term ``Coastal Plain'' means that
area identified as such in the map entitled ``Arctic National
Wildlife Refuge'', dated August 1980, as referenced in section
1002(b) of the Alaska National Interest Lands Conservation Act
of 1980 (16 U.S.C. 3142(b)(1)), comprising approximately
1,549,000 acres.
(2) Secretary.--The term ``Secretary'', except as otherwise
provided, means the Secretary of the Interior or the
Secretary's designee.
SEC. 503. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.
(a) In General.--The Secretary shall take such actions as are
necessary--
(1) to establish and implement in accordance with this
title a competitive oil and gas leasing program under the
Mineral Leasing Act (30 U.S.C. 181 et seq.) that will result in
an environmentally sound program for the exploration,
development, and production of the oil and gas resources of the
Coastal Plain; and
(2) to administer the provisions of this title through
regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that ensure
the oil and gas exploration, development, and production
activities on the Coastal Plain will result in no significant
adverse effect on fish and wildlife, their habitat, subsistence
resources, and the environment, and including, in furtherance
of this goal, by requiring the application of the best
commercially available technology for oil and gas exploration,
development, and production to all exploration, development,
and production operations under this title in a manner that
ensures the receipt of fair market value by the public for the
mineral resources to be leased.
(b) Repeal.--Section 1003 of the Alaska National Interest Lands
Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
(c) Compliance With Requirements Under Certain Other Laws.--
(1) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966, the oil and gas
leasing program and activities authorized by this section in
the Coastal Plain are deemed to be compatible with the purposes
for which the Arctic National Wildlife Refuge was established,
and that no further findings or decisions are required to
implement this determination.
(2) Adequacy of the department of the interior's
legislative environmental impact statement.--The ``Final
Legislative Environmental Impact Statement'' (April 1987) on
the Coastal Plain prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980 (16
U.S.C. 3142) and section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is
deemed to satisfy the requirements under the National
Environmental Policy Act of 1969 that apply with respect to
actions authorized to be taken by the Secretary to develop and
promulgate the regulations for the establishment of a leasing
program authorized by this title before the conduct of the
first lease sale.
(3) Compliance with nepa for other actions.--Before
conducting the first lease sale under this title, the Secretary
shall prepare an environmental impact statement under the
National Environmental Policy Act of 1969 with respect to the
actions authorized by this title that are not referred to in
paragraph (2). Notwithstanding any other law, the Secretary is
not required to identify nonleasing alternative courses of
action or to analyze the environmental effects of such courses
of action. The Secretary shall only identify a preferred action
for such leasing and a single leasing alternative, and analyze
the environmental effects and potential mitigation measures for
those two alternatives. The identification of the preferred
action and related analysis for the first lease sale under this
title shall be completed within 18 months after the date of
enactment of this Act. The Secretary shall only consider public
comments that specifically address the Secretary's preferred action and
that are filed within 20 days after publication of an environmental
analysis. Notwithstanding any other law, compliance with this paragraph
is deemed to satisfy all requirements for the analysis and
consideration of the environmental effects of proposed leasing under
this title.
(d) Relationship to State and Local Authority.--Nothing in this
title shall be considered to expand or limit State and local regulatory
authority.
(e) Special Areas.--
(1) In general.--The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, and the North Slope
Borough, may designate up to a total of 45,000 acres of the
Coastal Plain as a Special Area if the Secretary determines
that the Special Area is of such unique character and interest
so as to require special management and regulatory protection.
The Secretary shall designate as such a Special Area the
Sadlerochit Spring area, comprising approximately 4,000 acres
as depicted on the map referred to in section 502(1).
(2) Management.--Each such Special Area shall be managed so
as to protect and preserve the area's unique and diverse
character including its fish, wildlife, and subsistence
resource values.
(3) Exclusion from leasing or surface occupancy.--The
Secretary may exclude any Special Area from leasing. If the
Secretary leases a Special Area, or any part thereof, for
purposes of oil and gas exploration, development, production,
and related activities, there shall be no surface occupancy of
the lands comprising the Special Area.
(4) Directional drilling.--Notwithstanding the other
provisions of this subsection, the Secretary may lease all or a
portion of a Special Area under terms that permit the use of
horizontal drilling technology from sites on leases located
outside the area.
(f) Limitation on Closed Areas.--The Secretary's sole authority to
close lands within the Coastal Plain to oil and gas leasing and to
exploration, development, and production is that set forth in this
title.
(g) Regulations.--
(1) In general.--The Secretary shall prescribe such
regulations as may be necessary to carry out this title,
including rules and regulations relating to protection of the
fish and wildlife, their habitat, subsistence resources, and
environment of the Coastal Plain, by no later than 15 months
after the date of enactment of this Act.
(2) Revision of regulations.--The Secretary shall
periodically review and, if appropriate, revise the rules and
regulations issued under subsection (a) to reflect any
significant biological, environmental, or engineering data that
come to the Secretary's attention.
SEC. 504. LEASE SALES.
(a) In General.--Lands may be leased pursuant to this title 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.).
(b) Procedures.--The Secretary shall, by regulation, establish
procedures for--
(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;
(2) the holding of lease sales after such nomination
process; and
(3) public notice of and comment on designation of areas to
be included in, or excluded from, a lease sale.
(c) Lease Sale Bids.--Bidding for leases under this title shall be
by sealed competitive cash bonus bids.
(d) Acreage Minimum in First Sale.--In the first lease sale under
this title, 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.
(e) Timing of Lease Sales.--The Secretary shall--
(1) conduct the first lease sale under this title within 22
months after the date of enactment of this title; and
(2) conduct additional sales so long as sufficient interest
in development exists to warrant, in the Secretary's judgment,
the conduct of such sales.
SEC. 505. GRANT OF LEASES BY THE SECRETARY.
(a) In General.--The Secretary may grant to the highest responsible
qualified bidder in a lease sale conducted pursuant to section 504 any
lands to be leased on the Coastal Plain upon payment by the lessee of
such bonus as may be accepted by the Secretary.
(b) Subsequent Transfers.--No lease issued under this title may be
sold, exchanged, assigned, sublet, or otherwise transferred except with
the approval of the Secretary. Prior to any such approval the Secretary
shall consult with, and give due consideration to the views of, the
Attorney General.
SEC. 506. LEASE TERMS AND CONDITIONS.
(a) In General.--An oil or gas lease issued pursuant to this title
shall--
(1) provide for the payment of a royalty of not less than
12\1/2\ percent in amount or value of the production removed or
sold from the lease, as determined by the Secretary under the
regulations applicable to other Federal oil and gas leases;
(2) provide that the Secretary may close, on a seasonal
basis, portions of the Coastal Plain to exploratory drilling
activities as necessary to protect caribou calving areas and
other species of fish and wildlife;
(3) require that the lessee of lands within the Coastal
Plain shall be fully responsible and liable for the reclamation
of lands within the Coastal Plain and any other Federal lands
that are adversely affected in connection with exploration,
development, production, or transportation activities conducted
under the lease and within the Coastal Plain by the lessee or
by any of the subcontractors or agents of the lessee;
(4) provide that the lessee may not delegate or convey, by
contract or otherwise, the reclamation responsibility and
liability to another person without the express written
approval of the Secretary;
(5) provide that the standard of reclamation for lands
required to be reclaimed under this title shall be, as nearly
as practicable, a condition capable of supporting the uses
which the lands were capable of supporting prior to any
exploration, development, or production activities, or upon
application by the lessee, to a higher or better use as
approved by the Secretary;
(6) contain terms and conditions relating to protection of
fish and wildlife, their habitat, and the environment as
required pursuant to section 503(a)(2);
(7) provide that the lessee, its agents, and its
contractors use best efforts to provide a fair share, as
determined by the level of obligation previously agreed to in
the 1974 agreement implementing section 29 of the Federal
Agreement and Grant of Right of Way for the Operation of the
Trans-Alaska Pipeline, of employment and contracting for Alaska
Natives and Alaska Native Corporations from throughout the
State;
(8) prohibit the export of oil produced under the lease;
and
(9) contain such other provisions as the Secretary
determines necessary to ensure compliance with the provisions
of this title and the regulations issued under this title.
(b) Project Labor Agreements.--The Secretary, as a term and
condition of each lease under this title and in recognizing the
Government's proprietary interest in labor stability and in the ability
of construction labor and management to meet the particular needs and
conditions of projects to be developed under the leases issued pursuant
to this title and the special concerns of the parties to such leases,
shall require that the lessee and its agents and contractors negotiate
to obtain a project labor agreement for the employment of laborers and
mechanics on production, maintenance, and construction under the lease.
SEC. 507. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern Authorized
Coastal Plain Activities.--The Secretary shall, consistent with the
requirements of section 503, administer the provisions of this title
through regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that--
(1) ensure the oil and gas exploration, development, and
production activities on the Coastal Plain will result in no
significant adverse effect on fish and wildlife, their habitat,
and the environment; and
(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.
(b) Site-Specific Assessment and Mitigation.--The Secretary shall
also require, with respect to any proposed drilling and related
activities, that--
(1) a site-specific analysis be made of the probable
effects, if any, that the drilling or related activities will
have on fish and wildlife, their habitat, and the environment;
(2) a plan be implemented to avoid, minimize, and mitigate
(in that order and to the extent practicable) any significant
adverse effect identified under paragraph (1); and
(3) the development of the plan shall occur after
consultation with the agency or agencies having jurisdiction
over matters mitigated by the plan.
(c) Regulations To Protect Coastal Plain Fish and Wildlife
Resources, Subsistence Users, and the Environment.--Before implementing
the leasing program authorized by this title, the Secretary shall
prepare and promulgate regulations, lease terms, conditions,
restrictions, prohibitions, stipulations, and other measures designed
to ensure that the activities undertaken on the Coastal Plain under
this title are conducted in a manner consistent with the purposes and
environmental requirements of this title.
(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 title shall require compliance with all applicable
provisions of Federal and State environmental law and shall also
require the following:
(1) Standards at least as effective as the safety and
environmental mitigation measures set forth in items 1 through
29 at pages 167 through 169 of the ``Final Legislative
Environmental Impact Statement'' (April 1987) on the Coastal
Plain.
(2) Seasonal limitations on exploration, development, and
related activities, where necessary, to avoid significant
adverse effects during periods of concentrated fish and
wildlife breeding, denning, nesting, spawning, and migration.
(3) That exploration activities, except for surface
geological studies, be limited to the period between
approximately November 1 and May 1 each year and that
exploration activities shall be supported by ice roads, winter
trails with adequate snow cover, ice pads, ice airstrips, and
air transport methods, except that such exploration activities
may occur at other times, if--
(A) the Secretary determines, after affording an
opportunity for public comment and review, that special
circumstances exist necessitating that exploration
activities be conducted at other times of the year; and
(B) the Secretary finds that such exploration will
have no significant adverse effect on the fish and
wildlife, their habitat, and the environment of the
Coastal Plain.
(4) Design safety and construction standards for all
pipelines and any access and service roads, that--
(A) minimize, to the maximum extent possible,
adverse effects upon the passage of migratory species
such as caribou; and
(B) minimize adverse effects upon the flow of
surface water by requiring the use of culverts,
bridges, and other structural devices.
(5) Prohibitions on public access and use on all pipeline
access and service roads.
(6) Stringent reclamation and rehabilitation requirements,
consistent with the standards set forth in this title,
requiring the removal from the Coastal Plain of all oil and gas
development and production facilities, structures, and
equipment upon completion of oil and gas production operations,
except that the Secretary may exempt from the requirements of
this paragraph those facilities, structures, or equipment that
the Secretary determines would assist in the management of the
Arctic National Wildlife Refuge and that are donated to the
United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by
all modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and
gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on use of
explosives.
(11) Avoidance, to the extent practicable, of springs,
streams, and river system; the protection of natural surface
drainage patterns, wetlands, and riparian habitats; and the
regulation of methods or techniques for developing or
transporting adequate supplies of water for exploratory
drilling.
(12) Avoidance or reduction of air traffic-related
disturbance to fish and wildlife.
(13) Treatment and disposal of hazardous and toxic wastes,
solid wastes, reserve pit fluids, drilling muds and cuttings,
and domestic wastewater, including an annual waste management
report, a hazardous materials tracking system, and a
prohibition on chlorinated solvents, in accordance with
applicable Federal and State environmental law.
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.
(17) Avoidance of significant adverse effects upon
subsistence hunting, fishing, and trapping by subsistence
users.
(18) Compliance with applicable air and water quality
standards.
(19) Appropriate seasonal and safety zone designations
around well sites, within which subsistence hunting and
trapping shall be limited.
(20) Reasonable stipulations for protection of cultural and
archeological resources.
(21) All other protective environmental stipulations,
restrictions, terms, and conditions deemed necessary by the
Secretary.
(e) Considerations.--In preparing and promulgating regulations,
lease terms, conditions, restrictions, prohibitions, and stipulations
under this section, the Secretary shall consider the following:
(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.
(2) The environmental protection standards that governed
the initial Coastal Plain seismic exploration program under
parts 37.31 to 37.33 of title 50, Code of Federal Regulations.
(3) The land use stipulations for exploratory drilling on
the KIC-ASRC private lands that are set forth in Appendix 2 of
the August 9, 1983, agreement between Arctic Slope Regional
Corporation and the United States.
(f) Facility Consolidation Planning.--
(1) In general.--The Secretary shall, after providing for
public notice and comment, prepare and update periodically a
plan to govern, guide, and direct the siting and construction
of facilities for the exploration, development, production, and
transportation of Coastal Plain oil and gas resources.
(2) Objectives.--The plan shall have the following
objectives:
(A) Avoiding unnecessary duplication of facilities
and activities.
(B) Encouraging consolidation of common facilities
and activities.
(C) Locating or confining facilities and activities
to areas that will minimize impact on fish and
wildlife, their habitat, and the environment.
(D) Utilizing existing facilities wherever
practicable.
(E) Enhancing compatibility between wildlife values
and development activities.
SEC. 508. EXPEDITED JUDICIAL REVIEW.
(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review of any provision of this title or any
action of the Secretary under this title shall be filed in any
appropriate district court of the United States--
(A) except as provided in subparagraph (B), within
the 90-day period beginning on the date of the action
being challenged; or
(B) in the case of a complaint based solely on
grounds arising after such period, within 90 days after
the complainant knew or reasonably should have known of
the grounds for the complaint.
(2) Venue.--Any complaint seeking judicial review of an
action of the Secretary under this title may be filed only in
the United States Court of Appeals for the District of
Columbia.
(3) Limitation on scope of certain review.--Judicial review
of a Secretarial decision to conduct a lease sale under this
title, including the environmental analysis thereof, shall be
limited to whether the Secretary has complied with the terms of
this Act and shall be based upon the administrative record of
that decision. The Secretary's identification of a preferred
course of action to enable leasing to proceed and the
Secretary's analysis of environmental effects under this Act
shall be presumed to be correct unless shown otherwise by clear
and convincing evidence to the contrary.
(b) Limitation on Other Review.--Actions of the Secretary with
respect to which review could have been obtained under this section
shall not be subject to judicial review in any civil or criminal
proceeding for enforcement.
SEC. 509. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
(a) Exemption.--Title XI of the Alaska National Interest Lands
Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall not apply to
the issuance by the Secretary under section 28 of the Mineral Leasing
Act (30 U.S.C. 185) of rights-of-way and easements across the Coastal
Plain for the transportation of oil and gas.
(b) Terms and Conditions.--The Secretary shall include in any
right-of-way or easement referred to in subsection (a) such terms and
conditions as may be necessary to ensure that transportation of oil and
gas does not result in a significant adverse effect on the fish and
wildlife, subsistence resources, their habitat, and the environment of
the Coastal Plain, including requirements that facilities be sited or
designed so as to avoid unnecessary duplication of roads and pipelines.
(c) Regulations.--The Secretary shall include in regulations under
section 503(g) provisions granting rights-of-way and easements
described in subsection (a) of this section.
SEC. 510. CONVEYANCE.
In order to maximize Federal revenues by removing clouds on title
to lands and clarifying land ownership patterns within the Coastal
Plain, the Secretary, notwithstanding the provisions of section
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16
U.S.C. 3192(h)(2)), shall convey--
(1) to the Kaktovik Inupiat Corporation the surface estate
of the lands described in paragraph 2 of Public Land Order
6959, to the extent necessary to fulfill the Corporation's
entitlement under section 12 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1611); and
(2) to the Arctic Slope Regional Corporation the subsurface
estate beneath such surface estate pursuant to the August 9,
1983, agreement between the Arctic Slope Regional Corporation
and the United States of America.
SEC. 511. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.
(a) Financial Assistance Authorized.--
(1) In general.--The Secretary may use amounts available
from the Coastal Plain Local Government Impact Aid Assistance
Fund established by subsection (d) to provide timely financial
assistance to entities that are eligible under paragraph (2)
and that are directly impacted by the exploration for or
production of oil and gas on the Coastal Plain under this
title.
(2) Eligible entities.--The North Slope Borough, Kaktovik,
and other boroughs, municipal subdivisions, villages, and any
other community organized under Alaska State law shall be
eligible for financial assistance under this section.
(b) Use of Assistance.--Financial assistance under this section may
be used only for--
(1) planning for mitigation of the potential effects of oil
and gas exploration and development on environmental, social,
cultural, recreational and subsistence values;
(2) implementing mitigation plans and maintaining
mitigation projects; and
(3) developing, carrying out, and maintaining projects and
programs that provide new or expanded public facilities and
services to address needs and problems associated with such
effects, including firefighting, police, water, waste
treatment, medivac, and medical services.
(c) Application.--
(1) In general.--Any community that is eligible for
assistance under this section may submit an application for
such assistance to the Secretary, in such form and under such
procedures as the Secretary may prescribe by regulation.
(2) North slope borough communities.--A community located
in the North Slope Borough may apply for assistance under this
section either directly to the Secretary or through the North
Slope Borough.
(3) Application assistance.--The Secretary shall work
closely with and assist the North Slope Borough and other
communities eligible for assistance under this section in
developing and submitting applications for assistance under
this section.
(d) Establishment of Fund.--
(1) In general.--There is established in the Treasury the
Coastal Plain Local Government Impact Aid Assistance Fund.
(2) Use.--Amounts in the fund may be used only for
providing financial assistance under this section.
(3) Deposits.--Subject to paragraph (4), there shall be
deposited into the fund amounts received by the United States
as revenues derived from rents, bonuses, and royalties under on
leases and lease sales authorized under this title.
(4) Limitation on deposits.--The total amount in the fund
may not exceed $10,000,000.
(5) Investment of balances.--The Secretary of the Treasury
shall invest amounts in the fund in interest bearing government
securities.
(e) Authorization of Appropriations.--To provide financial
assistance under this section there is authorized to be appropriated to
the Secretary from the Coastal Plain Local Government Impact Aid
Assistance Fund $5,000,000 for each fiscal year.
TITLE VI--HISTORIC PRESERVATION
SEC. 601. PROHIBITION.
For purposes of the National Historic Preservation Act (Public Law
89-665, 16 U.S.C. 470 et seq.), no privately owned and operated
pipeline and related facilities (including all associated compressor
stations, taps, valves, and meter stations) that is in service or
available for service shall be eligible for inclusion on the National
Register of Historic Places without the consent of the owner thereof.
SEC. 602. REMOVAL FROM ELIGIBILITY.
Any pipeline and related facility identified in section 601 deemed
eligible for inclusion on the National Register of Historic Places
prior to the date of enactment of this title shall no longer be
eligible for inclusion, unless the owner of the pipeline and related
facility has given written consent and agreed to such eligibility.
TITLE VII--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR
SEC. 701. ENERGY CONSERVATION BY THE DEPARTMENT OF THE INTERIOR.
(a) In General.--The Secretary of the Interior shall--
(1) conduct a study to identify, evaluate, and recommend
opportunities for conserving energy by reducing the amount of
energy used by facilities of the Department of the Interior;
and
(2) wherever feasible and appropriate, reduce the use of
energy from traditional sources by encouraging use of
alternative energy sources, including solar power and power
from fuel cells, throughout such facilities and the public
lands of the United States.
(b) Reports.--The Secretary shall submit to the Congress--
(1) by not later than 90 days after the date of the
enactment of this Act, a report containing the findings,
conclusions, and recommendations of the study under subsection
(a)(1); and
(2) by not later than December 31 each year, an annual
report describing progress made in--
(A) conserving energy through opportunities
recommended in the report under paragraph (1); and
(B) encouraging use of alternative energy sources
under subsection (a)(2).
Union Calendar No. 95
107th CONGRESS
1st Session
H. R. 2436
[Report No. 107-160, Part I]
_______________________________________________________________________
A BILL
To provide secure energy supplies for the people of the United States,
and for other purposes.
_______________________________________________________________________
July 25, 2001
Reported from the Committee on Resources with an amendment
July 25, 2001
Referral to the Committee on Energy and Commerce extended for a period
ending not later than July 25, 2001
July 25, 2001
The Committee on Energy and Commerce discharged; committed to the
Committee of the Whole House on the State of the Union and ordered to
be printed