[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6001 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6001

   To rebalance the United States energy portfolio, to increase and 
     utilize the Nation's domestic energy resources and supply, to 
  strengthen energy security and independence, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2008

     Mr. Buyer (for himself, Mr. Cole of Oklahoma, Mr. Graves, Mr. 
 Pickering, Mr. Hayes, Mr. Shimkus, Mr. Pence, Mr. Burton of Indiana, 
Mr. Kline of Minnesota, Mrs. Blackburn, Mr. Wamp, Mr. Young of Alaska, 
Mr. Hoekstra, Mr. Shuster, Mr. McHenry, Mr. Barrett of South Carolina, 
 Mr. Souder, and Mr. Shadegg) introduced the following bill; which was 
referred to the Committee on Natural Resources, and in addition to the 
Committees on Energy and Commerce, Ways and Means, Armed Services, and 
 Science and Technology, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To rebalance the United States energy portfolio, to increase and 
     utilize the Nation's domestic energy resources and supply, to 
  strengthen energy security and independence, 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.

    (a) Short Title.--This Act may be cited as the ``Main Street U.S.A. 
Energy Security Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
                 TITLE I--INCREASE OUR ENERGY CAPACITY

                         Subtitle A--Refineries

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. State assistance.
Sec. 104. Refinery process coordination and procedures.
Sec. 105. Designation of closed military bases.
Sec. 106. Savings clause.
Sec. 107. Refinery revitalization repeal.
   Subtitle B--Oil and Gas Development on the Coastal Plain of Alaska

Sec. 121 Definitions.
Sec. 122. Leasing program for lands within the Coastal Plain.
Sec. 123. Lease sales.
Sec. 124. Grant of leases by the Secretary.
Sec. 125. Lease terms and conditions.
Sec. 126. Coastal plain environmental protection.
Sec. 127. Expedited judicial review.
Sec. 128. Federal and State distribution of revenues.
Sec. 129. Rights-of-way across the Coastal Plain.
Sec. 130. Conveyance.
Sec. 131. Local government impact aid and community service assistance.
             Subtitle C--Opening of Outer Continental Shelf

Sec. 141. Short title.
Sec. 142. Policy.
Sec. 143. Definitions under the Outer Continental Shelf Lands Act.
Sec. 144. Determination of Adjacent Zones and planning areas.
Sec. 145. Administration of leasing.
Sec. 146. Grant of leases by Secretary.
Sec. 147. Disposition of receipts.
Sec. 148. Reservation of lands and rights.
Sec. 149. Outer Continental Shelf Leasing Program.
Sec. 150. Coordination with Adjacent States.
Sec. 151. Environmental studies.
Sec. 152. Federal Energy Natural Resources Enhancement Act of 2008.
Sec. 153. Termination of effect of laws prohibiting the spending of 
                            appropriated funds for certain purposes.
Sec. 154. Outer Continental Shelf incompatible use.
Sec. 155. Repurchase of certain leases.
Sec. 156. Offsite environmental mitigation.
Sec. 157. Minerals Management Service.
Sec. 158. Authority to use decommissioned offshore oil and gas 
                            platforms and other facilities for 
                            artificial reef, scientific research, or 
                            other uses.
Sec. 159. Repeal of requirement to conduct comprehensive inventory of 
                            OCS oil and natural gas resources.
Sec. 160. Mining and petroleum schools.
Sec. 161. Onshore and offshore mineral lease fees.
Sec. 162. OCS regional headquarters.
Sec. 163. National Geo Fund Act of 2008.
Sec. 164. Leases for areas located within 100 miles of California or 
                            Florida.
Sec. 165. Coastal impact assistance.
Sec. 166. Oil shale and tar sands amendments.
Sec. 167. Availability of OCS receipts to provide payments under Secure 
                            Rural Schools and Community Self-
                            Determination Act of 2000.
Sec. 168. Sense of the Congress to buy and build American.
                          Subtitle D--Nuclear

Sec. 181. Incentives for innovative technologies.
Sec. 182. Authorization for Nuclear Power 2010 Program.
Sec. 183. Domestic manufacturing base for nuclear components and 
                            equipment.
Sec. 184. Nuclear energy workforce.
Sec. 185. National Nuclear Energy Council.
Sec. 186. Nuclear waste management.
             TITLE II--INCREASE OUR UTILIZATION EFFICIENCY

                      Subtitle A--Coal to Liquids

Sec. 201. Location of coal-to-liquid manufacturing facilities.
Sec. 202. Authorization to conduct research, development, testing, and 
                            evaluation of assured domestic fuels.
Sec. 203. Coal-to-liquid long-term fuel procurement and Department of 
                            Defense development.
                   Subtitle B--Energy Tax Provisions

Sec. 211. Short title; amendment of 1986 Code.
                     Part 1--Production Incentives

Sec. 221. Extension and modification of renewable energy credit.
Sec. 222. Production credit for electricity produced from marine 
                            renewables.
Sec. 223. Extension of electricity production tax credit to electricity 
                            produced from the production of substitute 
                            natural gas from refined coal or petcoke.
Sec. 224. Extension and modification of energy credit.
Sec. 225. New clean renewable energy bonds.
Sec. 226. Extension and modification of special rule to implement FERC 
                            and State electric restructuring policy.
Sec. 227. Extension and modification of credit for residential energy 
                            efficient property.
             Part 2--Transportation Conservation Incentives

                          subpart a--vehicles

Sec. 231. Credit for plug-in hybrid vehicles.
Sec. 232. Extension and modification of alternative fuel vehicle 
                            refueling property credit.
Sec. 233. Modification of limitation on automobile depreciation.
                            subpart b--fuels

Sec. 241. Extension and modification of credits for biodiesel and 
                            renewable diesel.
Sec. 242. Clarification that credits for fuel are designed to provide 
                            an incentive for United States production.
Sec. 243. Credit for production of cellulosic alcohol.
Sec. 244. Extension for credit for alternative fuels and mixtures 
                            derived from coal (including peat) through 
                            the Fischer-Tropsch process.
                 Part 3--Other Conservation Provisions

Sec. 251. Qualified energy conservation bonds.
Sec. 252. Extension and modification of credit for nonbusiness energy 
                            property.
Sec. 253. Extension of energy efficient commercial buildings deduction.
Sec. 254. Modifications of energy efficient appliance credit for 
                            appliances produced after 2007.
Sec. 255. Five-year applicable recovery period for depreciation of 
                            qualified energy management devices.
Sec. 256. Clarification of eligibility for certain fuels credits for 
                            fuel with insufficient nexus to the United 
                            States.
                  TITLE III--RESEARCH AND DEVELOPMENT

Sec. 301. Blended fuels.
Sec. 302. Cellulosic Ethanol.

                 TITLE I--INCREASE OUR ENERGY CAPACITY

                         Subtitle A--Refineries

SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Refinery Permit Process 
Schedule Act''.

SEC. 102. DEFINITIONS.

    For purposes of this subtitle--
            (1) the term ``Administrator'' means the Administrator of 
        the Environmental Protection Agency;
            (2) the term ``applicant'' means a person who is seeking a 
        Federal refinery authorization;
            (3) the term ``biomass'' has the meaning given that term in 
        section 932(a)(1) of the Energy Policy Act of 2005;
            (4) the term ``Federal refinery authorization''--
                    (A) means any authorization required under Federal 
                law, whether administered by a Federal or State 
                administrative agency or official, with respect to 
                siting, construction, expansion, or operation of a 
                refinery; and
                    (B) includes any permits, licenses, special use 
                authorizations, certifications, opinions, or other 
                approvals required under Federal law with respect to 
                siting, construction, expansion, or operation of a 
                refinery;
            (5) the term ``refinery'' means--
                    (A) a facility designed and operated to receive, 
                load, unload, store, transport, process, and refine 
                crude oil by any chemical or physical process, 
                including distillation, fluid catalytic cracking, 
                hydrocracking, coking, alkylation, etherification, 
                polymerization, catalytic reforming, isomerization, 
                hydrotreating, blending, and any combination thereof, 
                in order to produce gasoline or distillate;
                    (B) a facility designed and operated to receive, 
                load, unload, store, transport, process, and refine 
                coal by any chemical or physical process, including 
                liquefaction, in order to produce gasoline or diesel as 
                its primary output; or
                    (C) a facility designed and operated to receive, 
                load, unload, store, transport, process (including 
                biochemical, photochemical, and biotechnology 
                processes), and refine biomass in order to produce 
                biofuel; and
            (6) the term ``State'' means a State, the District of 
        Columbia, the Commonwealth of Puerto Rico, and any other 
        territory or possession of the United States.

SEC. 103. STATE ASSISTANCE.

    (a) State Assistance.--At the request of a governor of a State, the 
Administrator is authorized to provide financial assistance to that 
State to facilitate the hiring of additional personnel to assist the 
State with expertise in fields relevant to consideration of Federal 
refinery authorizations.
    (b) Other Assistance.--At the request of a governor of a State, a 
Federal agency responsible for a Federal refinery authorization shall 
provide technical, legal, or other nonfinancial assistance to that 
State to facilitate its consideration of Federal refinery 
authorizations.

SEC. 104. REFINERY PROCESS COORDINATION AND PROCEDURES.

    (a) Appointment of Federal Coordinator.--
            (1) In general.--The President shall appoint a Federal 
        coordinator to perform the responsibilities assigned to the 
        Federal coordinator under this subtitle.
            (2) Other agencies.--Each Federal and State agency or 
        official required to provide a Federal refinery authorization 
        shall cooperate with the Federal coordinator.
    (b) Federal Refinery Authorizations.--
            (1) Meeting participants.--Not later than 30 days after 
        receiving a notification from an applicant that the applicant 
        is seeking a Federal refinery authorization pursuant to Federal 
        law, the Federal coordinator appointed under subsection (a) 
        shall convene a meeting of representatives from all Federal and 
        State agencies responsible for a Federal refinery authorization 
        with respect to the refinery. The governor of a State shall 
        identify each agency of that State that is responsible for a 
        Federal refinery authorization with respect to that refinery.
            (2) Memorandum of agreement.--(A) Not later than 90 days 
        after receipt of a notification described in paragraph (1), the 
        Federal coordinator and the other participants at a meeting 
        convened under paragraph (1) shall establish a memorandum of 
        agreement setting forth the most expeditious coordinated 
        schedule possible for completion of all Federal refinery 
        authorizations with respect to the refinery, consistent with 
        the full substantive and procedural review required by Federal 
        law. If a Federal or State agency responsible for a Federal 
        refinery authorization with respect to the refinery is not 
        represented at such meeting, the Federal coordinator shall 
        ensure that the schedule accommodates those Federal refinery 
        authorizations, consistent with Federal law. In the event of 
        conflict among Federal refinery authorization scheduling 
        requirements, the requirements of the Environmental Protection 
        Agency shall be given priority.
            (B) Not later than 15 days after completing the memorandum 
        of agreement, the Federal coordinator shall publish the 
        memorandum of agreement in the Federal Register.
            (C) The Federal coordinator shall ensure that all parties 
        to the memorandum of agreement are working in good faith to 
        carry out the memorandum of agreement, and shall facilitate the 
        maintenance of the schedule established therein.
    (c) Consolidated Record.--The Federal coordinator shall, with the 
cooperation of Federal and State administrative agencies and officials, 
maintain a complete consolidated record of all decisions made or 
actions taken by the Federal coordinator or by a Federal administrative 
agency or officer (or State administrative agency or officer acting 
under delegated Federal authority) with respect to any Federal refinery 
authorization. Such record shall be the record for judicial review 
under subsection (d) of decisions made or actions taken by Federal and 
State administrative agencies and officials, except that, if the Court 
determines that the record does not contain sufficient information, the 
Court may remand the proceeding to the Federal coordinator for further 
development of the consolidated record.
    (d) Remedies.--
            (1) In general.--The United States District Court for the 
        district in which the proposed refinery is located shall have 
        exclusive jurisdiction over any civil action for the review of 
        the failure of an agency or official to act on a Federal 
        refinery authorization in accordance with the schedule 
        established pursuant to the memorandum of agreement.
            (2) Standing.--If an applicant or a party to a memorandum 
        of agreement alleges that a failure to act described in 
        paragraph (1) has occurred and that such failure to act would 
        jeopardize timely completion of the entire schedule as 
        established in the memorandum of agreement, such applicant or 
        other party may bring a cause of action under this subsection.
            (3) Court action.--If an action is brought under paragraph 
        (2), the Court shall review whether the parties to the 
        memorandum of agreement have been acting in good faith, whether 
        the applicant has been cooperating fully with the agencies that 
        are responsible for issuing a Federal refinery authorization, 
        and any other relevant materials in the consolidated record. 
        Taking into consideration those factors, if the Court finds 
        that a failure to act described in paragraph (1) has occurred, 
        and that such failure to act would jeopardize timely completion 
        of the entire schedule as established in the memorandum of 
        agreement, the Court shall establish a new schedule that is the 
        most expeditious coordinated schedule possible for completion 
        of proceedings, consistent with the full substantive and 
        procedural review required by Federal law. The court may issue 
        orders to enforce any schedule it establishes under this 
        paragraph.
            (4) Federal coordinator's action.--When any civil action is 
        brought under this subsection, the Federal coordinator shall 
        immediately file with the Court the consolidated record 
        compiled by the Federal coordinator pursuant to subsection (c).
            (5) Expedited review.--The Court shall set any civil action 
        brought under this subsection for expedited consideration.

SEC. 105. DESIGNATION OF CLOSED MILITARY BASES.

    (a) Designation Requirement.--Not later than 90 days after the date 
of enactment of this Act, the President shall designate no less than 3 
closed military installations, or portions thereof, as potentially 
suitable for the construction of a refinery. At least 1 such site shall 
be designated as potentially suitable for construction of a refinery to 
refine biomass in order to produce biofuel.
    (b) Redevelopment Authority.--The redevelopment authority for each 
installation designated under subsection (a), in preparing or revising 
the redevelopment plan for the installation, shall consider the 
feasibility and practicability of siting a refinery on the 
installation.
    (c) Management and Disposal of Real Property.--The Secretary of 
Defense, in managing and disposing of real property at an installation 
designated under subsection (a) pursuant to the base closure law 
applicable to the installation, shall give substantial deference to the 
recommendations of the redevelopment authority, as contained in the 
redevelopment plan for the installation, regarding the siting of a 
refinery on the installation. The management and disposal of real 
property at a closed military installation or portion thereof found to 
be suitable for the siting of a refinery under subsection (a) shall be 
carried out in the manner provided by the base closure law applicable 
to the installation.
    (d) Definitions.--For purposes of this section--
            (1) the term ``base closure law'' means the Defense Base 
        Closure and Realignment Act of 1990 (part A of title XXIX of 
        Public Law 101-510; 10 U.S.C. 2687 note) and title II of the 
        Defense Authorization Amendments and Base Closure and 
        Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note); and
            (2) the term ``closed military installation'' means a 
        military installation closed or approved for closure pursuant 
        to a base closure law.

SEC. 106. SAVINGS CLAUSE.

    Nothing in this subtitle shall be construed to affect the 
application of any environmental or other law, or to prevent any party 
from bringing a cause of action under any environmental or other law, 
including citizen suits.

SEC. 107. REFINERY REVITALIZATION REPEAL.

    Subtitle H of title III of the Energy Policy Act of 2005 and the 
items relating thereto in the table of contents of such Act are 
repealed.

   Subtitle B--Oil and Gas Development on the Coastal Plain of Alaska

SEC. 121 DEFINITIONS.

    In this subtitle:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area described in appendix I to part 37 of title 50, Code of 
        Federal Regulations.
            (2) Secretary.--The term ``Secretary'', except as otherwise 
        provided, means the Secretary of the Interior or the 
        Secretary's designee.

SEC. 122. 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 
        subtitle and acting through the Director of the Bureau of Land 
        Management in consultation with the Director of the United 
        States Fish and Wildlife Service, a competitive oil and gas 
        leasing program that will result in an environmentally sound 
        program for the exploration, development, and production of the 
        oil and gas resources of the Coastal Plain; and
            (2) to administer the provisions of this subtitle through 
        regulations, lease terms, conditions, restrictions, 
        prohibitions, stipulations, and other provisions that ensure 
        the oil and gas exploration, development, and production 
        activities on the Coastal Plain will result in no significant 
        adverse effect on fish and wildlife, their habitat, subsistence 
        resources, and the environment, including, in furtherance of 
        this goal, by requiring the application of the best 
        commercially available technology for oil and gas exploration, 
        development, and production to all exploration, development, 
        and production operations under this subtitle in a manner that 
        ensures the receipt of fair market value by the public for the 
        mineral resources to be leased.
    (b) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
            (2) Conforming amendment.--The table of contents in section 
        1 of such Act is amended by striking the item relating to 
        section 1003.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
        seq.), 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 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 
        prelease activities, including actions authorized to be taken 
        by the Secretary to develop and promulgate the regulations for 
        the establishment of a leasing program authorized by this 
        subtitle before the conduct of the first lease sale.
            (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this subtitle, the 
        Secretary shall prepare an environmental impact statement under 
        the National Environmental Policy Act of 1969 with respect to 
        the actions authorized by this subtitle that are not referred 
        to in paragraph (2). Notwithstanding any other law, the 
        Secretary is not required to identify nonleasing alternative 
        courses of action or to analyze the environmental effects of 
        such courses of action. The Secretary shall only identify a 
        preferred action for such leasing and a single leasing 
        alternative, and analyze the environmental effects and 
        potential mitigation measures for those two alternatives. The 
        identification of the preferred action and related analysis for 
        the first lease sale under this subtitle shall be completed 
        within 18 months after the date of enactment of this Act. The 
        Secretary shall only consider public comments that specifically 
        address the Secretary's preferred action and that are filed 
        within 20 days after publication of an environmental analysis. 
        Notwithstanding any other law, compliance with this paragraph 
        is deemed to satisfy all requirements for the analysis and 
        consideration of the environmental effects of proposed leasing 
        under this subtitle.
    (d) Relationship to State and Local Authority.--Nothing in this 
subtitle 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.
            (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 Special 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 
subtitle.
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this subtitle, 
        including rules and regulations relating to protection of the 
        fish and wildlife, their habitat, subsistence resources, and 
        environment of the Coastal Plain, by no later than 15 months 
        after the date of enactment of this Act.
            (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. 123. LEASE SALES.

    (a) In General.--Lands may be leased pursuant to this subtitle to 
any person qualified to obtain a lease for deposits of oil and gas 
under the Mineral Leasing Act (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 subtitle shall 
be by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--In the first lease sale under 
this subtitle, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) conduct the first lease sale under this subtitle within 
        22 months after the date of the enactment of this Act; 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. 124. 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 123 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 subtitle may 
be sold, exchanged, assigned, sublet, or otherwise transferred except 
with the approval of the Secretary. Prior to any such approval the 
Secretary shall consult with, and give due consideration to the views 
of, the Attorney General.

SEC. 125. LEASE TERMS AND CONDITIONS.

    An oil or gas lease issued pursuant to this subtitle 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) 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;
            (3) 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;
            (4) provide that the standard of reclamation for lands 
        required to be reclaimed under this subtitle shall be, as 
        nearly as practicable, a condition capable of supporting the 
        uses which the lands were capable of supporting prior to any 
        exploration, development, or production activities, or upon 
        application by the lessee, to a higher or better use as 
        approved by the Secretary;
            (5) include requirements and restrictions to provide for 
        reasonable protection of fish and wildlife, their habitat, 
        subsistence resources, and the environment as determined by the 
        Secretary;
            (6) prohibit the export of oil produced under the lease; 
        and
            (7) contain such other provisions as the Secretary 
        determines necessary to ensure compliance with the provisions 
        of this subtitle and the regulations issued under this 
        subtitle.

SEC. 126. 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 122, administer the provisions of this subtitle 
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;
            (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; and
            (3) ensure that the maximum amount of surface acreage 
        covered by production and support facilities, including 
        airstrips and any areas covered by gravel berms or piers for 
        support of pipelines, does not exceed 2,000 acres on the 
        Coastal Plain.
    (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, subsistence 
        resources, 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 subtitle, the Secretary shall 
prepare and promulgate regulations, lease terms, conditions, 
restrictions, prohibitions, stipulations, and other measures designed 
to ensure that the activities undertaken on the Coastal Plain under 
this subtitle are conducted in a manner consistent with the purposes 
and environmental requirements of this subtitle.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this subtitle shall require compliance with all applicable 
provisions of Federal and State environmental law, and shall also 
require the following:
            (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) 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.
            (4) Prohibitions on general public access and use on all 
        pipeline access and service roads.
            (5) Stringent reclamation and rehabilitation requirements, 
        consistent with the standards set forth in this subtitle, 
        requiring the removal from the Coastal Plain of all oil and gas 
        development and production facilities, structures, and 
        equipment upon completion of oil and gas production operations, 
        except that the Secretary may exempt from the requirements of 
        this paragraph those facilities, structures, or equipment that 
        the Secretary determines would assist in the management of the 
        Arctic National Wildlife Refuge and that are donated to the 
        United States for that purpose.
            (6) Appropriate prohibitions or restrictions on access by 
        all modes of transportation.
            (7) Appropriate prohibitions or restrictions on sand and 
        gravel extraction.
            (8) Consolidation of facility siting.
            (9) Appropriate prohibitions or restrictions on use of 
        explosives.
            (10) 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.
            (11) Avoidance or minimization of air traffic-related 
        disturbance to fish and wildlife.
            (12) 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.
            (13) Fuel storage and oil spill contingency planning.
            (14) Research, monitoring, and reporting requirements.
            (15) Field crew environmental briefings.
            (16) Avoidance of significant adverse effects upon 
        subsistence hunting, fishing, and trapping by subsistence 
        users.
            (17) Compliance with applicable air and water quality 
        standards.
            (18) Appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited.
            (19) Reasonable stipulations for protection of cultural and 
        archeological resources.
            (20) 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.
    (g) Access to Public Lands.--The Secretary shall--
            (1) manage public lands in the Coastal Plain subject to 
        subsections (a) and (b) of section 811 of the Alaska National 
        Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public lands in the Coastal Plain for traditional 
        uses.

SEC. 127. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaint.--
            (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this subtitle or 
        any action of the Secretary under this subtitle shall be 
        filed--
                    (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 any 
        provision of this subtitle or any action of the Secretary under 
        this subtitle may be filed only in the United States Court of 
        Appeals for the District of Columbia.
            (3) Limitation on scope of certain review.--Judicial review 
        of a Secretarial decision to conduct a lease sale under this 
        subtitle, including the environmental analysis thereof, shall 
        be limited to whether the Secretary has complied with the terms 
        of this subtitle and shall be based upon the administrative 
        record of that decision. The Secretary's identification of a 
        preferred course of action to enable leasing to proceed and the 
        Secretary's analysis of environmental effects under this 
        subtitle shall be presumed to be correct unless shown otherwise 
        by clear and convincing evidence to the contrary.
    (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. 128. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

    (a) In General.--Notwithstanding any other provision of law, of the 
amount of adjusted bonus, rental, and royalty revenues from Federal oil 
and gas leasing and operations authorized under this subtitle--
            (1) 25 percent shall be paid to the State of Alaska; and
            (2) except as otherwise provided by this Act, the balance 
        shall be deposited into the Treasury as miscellaneous receipts.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.

SEC. 129. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

    (a) In General.--The Secretary shall issue rights-of-way and 
easements across the Coastal Plain for the transportation of oil and 
gas--
            (1) except as provided in paragraph (2), under section 28 
        of the Mineral Leasing Act (30 U.S.C. 185), without regard to 
        title XI of the Alaska National Interest Lands Conservation Act 
        (30 U.S.C. 3161 et seq.); and
            (2) under title XI of the Alaska National Interest Lands 
        Conservation Act (30 U.S.C. 3161 et seq.), for access 
        authorized by sections 1110 and 1111 of that Act (16 U.S.C. 
        3170 and 3171).
    (b) Terms and Conditions.--The Secretary shall include in any 
right-of-way or easement issued under subsection (a) such terms and 
conditions as may be necessary to ensure that transportation of oil and 
gas does not result in a significant adverse effect on the fish and 
wildlife, subsistence resources, their habitat, and the environment of 
the Coastal Plain, including requirements that facilities be sited or 
designed so as to avoid unnecessary duplication of roads and pipelines.
    (c) Regulations.--The Secretary shall include in regulations under 
section 122(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 130. 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 1 of Public Land Order 
        6959, to the extent necessary to fulfill the Corporation's 
        entitlement under sections 12 and 14 of the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance 
        with the terms and conditions of the Agreement between the 
        Department of the Interior, the United States Fish and Wildlife 
        Service, the Bureau of Land Management, and the Kaktovik 
        Inupiat Corporation effective January 22, 1993; and
            (2) to the Arctic Slope Regional Corporation the remaining 
        subsurface estate to which it is entitled pursuant to the 
        August 9, 1983, agreement between the Arctic Slope Regional 
        Corporation and the United States of America.

SEC. 131. 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 
        subtitle.
            (2) Eligible entities.--The North Slope Borough, the City 
        of Kaktovik, and any other borough, municipal subdivision, 
        village, or other community in the State of Alaska that is 
        directly impacted by exploration for, or the production of, oil 
        or gas on the Coastal Plain under this subtitle, as determined 
        by the Secretary, shall be eligible for financial assistance 
        under this section.
    (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;
            (3) developing, carrying out, and maintaining projects and 
        programs that provide new or expanded public facilities and 
        services to address needs and problems associated with such 
        effects, including fire-fighting, police, water, waste 
        treatment, medivac, and medical services; and
            (4) establishment of a coordination office, by the north 
        slope borough, in the City of Kaktovik, which shall--
                    (A) coordinate with and advise developers on local 
                conditions, impact, and history of the areas utilized 
                for development; and
                    (B) provide to the Committee on Resources of the 
                House of Representatives and the Committee on Energy 
                and Natural Resources of the Senate an annual report on 
                the status of coordination between developers and the 
                communities affected by development.
    (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 from 
        Federal leases and lease sales authorized under this subtitle.
            (4) Limitation on deposits.--The total amount in the fund 
        may not exceed $11,000,000.
            (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.

             Subtitle C--Opening of Outer Continental Shelf

SEC. 141. SHORT TITLE.

    This subtitle may be cited as the ``Deep Ocean Energy Resources Act 
of 2008''.

SEC. 142. POLICY.

    It is the policy of the United States that--
            (1) the United States is blessed with abundant energy 
        resources on the outer Continental Shelf and has developed a 
        comprehensive framework of environmental laws and regulations 
        and fostered the development of state-of-the-art technology 
        that allows for the responsible development of these resources 
        for the benefit of its citizenry;
            (2) adjacent States are required by the circumstances to 
        commit significant resources in support of exploration, 
        development, and production activities for mineral resources on 
        the outer Continental Shelf, and it is fair and proper for a 
        portion of the receipts from such activities to be shared with 
        Adjacent States and their local coastal governments;
            (3) the existing laws governing the leasing and production 
        of the mineral resources of the outer Continental Shelf have 
        reduced the production of mineral resources, have preempted 
        Adjacent States from being sufficiently involved in the 
        decisions regarding the allowance of mineral resource 
        development, and have been harmful to the national interest;
            (4) the national interest is served by granting the 
        Adjacent States more options related to whether or not mineral 
        leasing should occur in the outer Continental Shelf within 
        their Adjacent Zones;
            (5) it is not reasonably foreseeable that exploration of a 
        leased tract located more than 25 miles seaward of the 
        coastline, development and production of a natural gas 
        discovery located more than 25 miles seaward of the coastline, 
        or development and production of an oil discovery located more 
        than 50 miles seaward of the coastline will adversely affect 
        resources near the coastline;
            (6) transportation of oil from a leased tract might 
        reasonably be foreseen, under limited circumstances, to have 
        the potential to adversely affect resources near the coastline 
        if the oil is within 50 miles of the coastline, but such 
        potential to adversely affect such resources is likely no 
        greater, and probably less, than the potential impacts from 
        tanker transportation because tanker spills usually involve 
        large releases of oil over a brief period of time; and
            (7) among other bodies of inland waters, the Great Lakes, 
        Long Island Sound, Delaware Bay, Chesapeake Bay, Albemarle 
        Sound, San Francisco Bay, and Puget Sound are not part of the 
        outer Continental Shelf, and are not subject to leasing by the 
        Federal Government for the exploration, development, and 
        production of any mineral resources that might lie beneath 
        them.

SEC. 143. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.

    Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) 
is amended--
            (1) by amending paragraph (f) to read as follows:
    ``(f) The term `affected State' means the Adjacent State.'';
            (2) by striking the semicolon at the end of each of 
        paragraphs (a) through (o) and inserting a period;
            (3) by striking ``; and'' at the end of paragraph (p) and 
        inserting a period;
            (4) by adding at the end the following:
    ``(r) The term `Adjacent State' means, with respect to any program, 
plan, lease sale, leased tract or other activity, proposed, conducted, 
or approved pursuant to the provisions of this Act, any State the laws 
of which are declared, pursuant to section 4(a)(2), to be the law of 
the United States for the portion of the outer Continental Shelf on 
which such program, plan, lease sale, leased tract or activity 
appertains or is, or is proposed to be, conducted. For purposes of this 
paragraph, the term `State' includes Puerto Rico and the other 
Territories of the United States.
    ``(s) The term `Adjacent Zone' means, with respect to any program, 
plan, lease sale, leased tract, or other activity, proposed, conducted, 
or approved pursuant to the provisions of this Act, the portion of the 
outer Continental Shelf for which the laws of a particular Adjacent 
State are declared, pursuant to section 4(a)(2), to be the law of the 
United States.
    ``(t) The term `miles' means statute miles.
    ``(u) The term `coastline' has the same meaning as the term `coast 
line' as defined in section 2(c) of the Submerged Lands Act (43 U.S.C. 
1301(c)).
    ``(v) The term `Neighboring State' means a coastal State having a 
common boundary at the coastline with the Adjacent State.''; and
            (5) in paragraph (a), by inserting after ``control'' the 
        following: ``or lying within the United States exclusive 
        economic zone adjacent to the Territories of the United 
        States''.

SEC. 144. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.

    Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1333(a)(2)(A)) is amended in the first sentence by striking ``, 
and the President'' and all that follows through the end of the 
sentence and inserting the following: ``. The lines extending seaward 
and defining each State's Adjacent Zone, and each OCS Planning Area, 
are as indicated on the maps for each outer Continental Shelf region 
entitled `Alaska OCS Region State Adjacent Zone and OCS Planning 
Areas', `Pacific OCS Region State Adjacent Zones and OCS Planning 
Areas', `Gulf of Mexico OCS Region State Adjacent Zones and OCS 
Planning Areas', and `Atlantic OCS Region State Adjacent Zones and OCS 
Planning Areas', all of which are dated September 2005 and on file in 
the Office of the Director, Minerals Management Service.''.

SEC. 145. ADMINISTRATION OF LEASING.

    Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) 
is amended by adding at the end the following:
    ``(k) Voluntary Partial Relinquishment of a Lease.--Any lessee of a 
producing lease may relinquish to the Secretary any portion of a lease 
that the lessee has no interest in producing and that the Secretary 
finds is geologically prospective. In return for any such 
relinquishment, the Secretary shall provide to the lessee a royalty 
incentive for the portion of the lease retained by the lessee, in 
accordance with regulations promulgated by the Secretary to carry out 
this subsection. The Secretary shall publish final regulations 
implementing this subsection within 365 days after the date of the 
enactment of the Deep Ocean Energy Resources Act of 2008.
    ``(l) Natural Gas Lease Regulations.--Not later than July 1, 2009, 
the Secretary shall publish a final regulation that shall--
            ``(1) establish procedures for entering into natural gas 
        leases;
            ``(2) ensure that natural gas leases are only available for 
        tracts on the outer Continental Shelf that are wholly within 
        100 miles of the coastline within an area withdrawn from 
        disposition by leasing on the day after the date of enactment 
        of the Deep Ocean Energy Resources Act of 2008;
            ``(3) provide that natural gas leases shall contain the 
        same rights and obligations established for oil and gas leases, 
        except as otherwise provided in the Deep Ocean Energy Resources 
        Act of 2008;
            ``(4) provide that, in reviewing the adequacy of bids for 
        natural gas leases, the value of any crude oil estimated to be 
        contained within any tract shall be excluded;
            ``(5) provide that any crude oil produced from a well and 
        reinjected into the leased tract shall not be subject to 
        payment of royalty, and that the Secretary shall consider, in 
        setting the royalty rates for a natural gas lease, the 
        additional cost to the lessee of not producing any crude oil; 
        and
            ``(6) provide that any Federal law that applies to an oil 
        and gas lease on the outer Continental Shelf shall apply to a 
        natural gas lease unless otherwise clearly inapplicable.''.

SEC. 146. GRANT OF LEASES BY SECRETARY.

    Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) 
is amended--
            (1) in subsection (a)(1) by inserting after the first 
        sentence the following: ``Further, the Secretary may grant 
        natural gas leases in a manner similar to the granting of oil 
        and gas leases and under the various bidding systems available 
        for oil and gas leases.'';
            (2) by adding at the end of subsection (b) the following:
``The Secretary may issue more than one lease for a given tract if each 
lease applies to a separate and distinct range of vertical depths, 
horizontal surface area, or a combination of the two. The Secretary may 
issue regulations that the Secretary determines are necessary to manage 
such leases consistent with the purposes of this Act.'';
            (3) by amending subsection (p)(2)(B) to read as follows:
            ``(B) The Secretary shall provide for the payment to 
        coastal states, and their local coastal governments, of 75 
        percent of Federal receipts from projects authorized under this 
        section located partially or completely within the area 
        extending seaward of State submerged lands out to 4 marine 
        leagues from the coastline, and the payment to coastal states 
        of 50 percent of the receipts from projects completely located 
        in the area more than 4 marine leagues from the coastline. 
        Payments shall be based on a formula established by the 
        Secretary by rulemaking no later than 180 days after the date 
        of the enactment of the Deep Ocean Energy Resources Act of 2008 
        that provides for equitable distribution, based on proximity to 
        the project, among coastal states that have coastline that is 
        located within 200 miles of the geographic center of the 
        project.'';
            (4) by adding at the end the following:
    ``(q) Natural Gas Leases.--
            ``(1) Right to produce natural gas.--A lessee of a natural 
        gas lease shall have the right to produce the natural gas from 
        a field on a natural gas leased tract if the Secretary 
        estimates that the discovered field has at least 40 percent of 
        the economically recoverable Btu content of the field contained 
        within natural gas and such natural gas is economical to 
        produce.
            ``(2) Crude oil.--A lessee of a natural gas lease may not 
        produce crude oil from the lease.
            ``(3) Estimates of btu content.--The Secretary shall make 
        estimates of the natural gas Btu content of discovered fields 
        on a natural gas lease only after the completion of at least 
        one exploration well, the data from which has been tied to the 
        results of a three-dimensional seismic survey of the field. The 
        Secretary may not require the lessee to further delineate any 
        discovered field prior to making such estimates.
            ``(4) Definition of natural gas.--For purposes of a natural 
        gas lease, natural gas means natural gas and all substances 
        produced in association with gas, including, but not limited 
        to, hydrocarbon liquids (other than crude oil) that are 
        obtained by the condensation of hydrocarbon vapors and separate 
        out in liquid form from the produced gas stream.
    ``(r) Removal of Restrictions on Joint Bidding in Certain Areas of 
the Outer Continental Shelf.--Restrictions on joint bidders shall no 
longer apply to tracts located in the Alaska OCS Region. Such 
restrictions shall not apply to tracts in other OCS regions determined 
to be `frontier tracts' or otherwise `high cost tracts' under final 
regulations that shall be published by the Secretary by not later than 
365 days after the date of the enactment of the Deep Ocean Energy 
Resources Act of 2008.
    ``(s) Royalty Suspension Provisions.--The Secretary shall agree to 
a request by any lessee to amend any lease issued for Central and 
Western Gulf of Mexico tracts during the period of January 1, 1998, 
through December 31, 1999, to incorporate price thresholds applicable 
to royalty suspension provisions, or amend existing price thresholds, 
in the amount of $40.50 per barrel (2006 dollars) for oil and for 
natural gas of $6.75 per million Btu (2006 dollars). Any amended lease 
shall impose the new or revised price thresholds effective October 1, 
2008. Existing lease provisions shall prevail through September 30, 
2008. After the date of the enactment of the Deep Ocean Energy 
Resources Act of 2008, price thresholds shall apply to any royalty 
suspension volumes granted by the Secretary. Unless otherwise set by 
Secretary by regulation or for a particular lease sale, the price 
thresholds shall be $40.50 for oil (2006 dollars) and $6.75 for natural 
gas (2006 dollars).
    ``(t) Conservation of Resources Fees.--
            ``(1) Not later than one year after the date of the 
        enactment of the Deep Ocean Energy Resources Act of 2008, the 
        Secretary by regulation shall establish a conservation of 
        resources fee for producing leases that will apply to new and 
        existing leases which shall be set at $9 per barrel for oil and 
        $1.25 per million Btu for gas. This fee shall only apply to 
        leases in production located in more than 200 meters of water 
        for which royalties are not being paid when prices exceed 
        $40.50 per barrel for oil and $6.75 per million Btu for natural 
        gas in 2006, dollars. This fee shall apply to production from 
        and after October 1, 2008, and shall be treated as offsetting 
        receipts.
            ``(2) Not later than one year after the date of the 
        enactment of the Deep Ocean Energy Resources Act of 2008, the 
        Secretary by regulation shall establish a conservation of 
        resources fee for nonproducing leases that will apply to new 
        and existing leases which shall be set at $3.75 per acre per 
        year. This fee shall apply from and after October 1, 2008, and 
        shall be treated as offsetting receipts.'';
            (5) by striking subsection (a)(3)(A) and redesignating the 
        subsequent subparagraphs as subparagraphs (A) and (B), 
        respectively;
            (6) in subsection (a)(3)(A) (as so redesignated) by 
        striking ``In the Western'' and all that follows through ``the 
        Secretary'' the first place it appears and inserting ``The 
        Secretary''; and
            (7) effective October 1, 2008, in subsection (g)--
                    (A) by striking all after ``(g)'', except paragraph 
                (3);
                    (B) by striking the last sentence of paragraph (3); 
                and
                    (C) by striking ``(3)''.

SEC. 147. DISPOSITION OF RECEIPTS.

    Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended--
            (1) by designating the existing text as subsection (a);
            (2) in subsection (a) (as so designated) by inserting ``, 
        if not paid as otherwise provided in this title'' after 
        ``receipts''; and
            (3) by adding the following:
    ``(b) Treatment of OCS Receipts From Tracts Completely Within 100 
Miles of the Coastline.--
            ``(1) Deposit.--The Secretary shall deposit into a separate 
        account in the Treasury the portion of OCS Receipts for each 
        fiscal year that will be shared under paragraphs (2), (3), and 
        (4).
            ``(2) Phased-in receipts sharing.--
                    ``(A) Beginning October 1, 2008, the Secretary 
                shall share OCS Receipts derived from the following 
                areas:
                            ``(i) Lease tracts located on portions of 
                        the Gulf of Mexico OCS Region completely beyond 
                        4 marine leagues from any coastline and 
                        completely within 100 miles of any coastline 
                        that are available for leasing under the 2002-
                        2007 5-Year Oil and Gas Leasing Program in 
                        effect prior to the date of the enactment of 
                        the Deep Ocean Energy Resources Act of 2008.
                            ``(ii) Lease tracts in production prior to 
                        October 1, 2008, completely beyond 4 marine 
                        leagues from any coastline and completely 
                        within 100 miles of any coastline located on 
                        portions of the OCS that were not available for 
                        leasing under the 2002-2007 5-Year OCS Oil and 
                        Gas Leasing Program in effect prior to the date 
                        of the enactment of the Deep Ocean Energy 
                        Resources Act of 2008.
                            ``(iii) Lease tracts for which leases are 
                        issued prior to October 1, 2008, located in the 
                        Alaska OCS Region completely beyond 4 marine 
                        leagues from any coastline and completely 
                        within 100 miles of the coastline.
                    ``(B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases described 
                in subparagraph (A) derived during the fiscal year 
                indicated:
                            ``(i) For fiscal year 2009, 4.6 percent.
                            ``(ii) For fiscal year 2010, 5.95 percent.
                            ``(iii) For fiscal year 2011, 6.8 percent.
                            ``(iv) For fiscal year 2012, 7.65 percent.
                            ``(v) For fiscal year 2013, 10.20 percent.
                            ``(vi) For fiscal year 2014, 12.75 percent.
                            ``(vii) For fiscal year 2015, 15.30 
                        percent.
                            ``(viii) For fiscal year 2016, 17.85 
                        percent.
                            ``(ix) For fiscal year 2017, 20.40 percent.
                            ``(x) For fiscal year 2018, 22.95 percent.
                            ``(xi) For fiscal year 2019, 25.50 percent.
                            ``(xii) For fiscal year 2020, 28.05 
                        percent.
                            ``(xiii) For fiscal year 2021, 30.60 
                        percent.
                            ``(xiv) For fiscal year 2022, 33.15 
                        percent.
                            ``(xv) For fiscal year 2023 35.70 percent.
                            ``(xvi) For fiscal year 2024 and each 
                        subsequent fiscalyear, 37.5 percent.
                    ``(C) The provisions of this paragraph shall not 
                apply to leases that could not have been issued but for 
                section 5(k) of this Act or section 146(2) of the Deep 
                Ocean Energy Resources Act of 2008.
            ``(3) Immediate receipts sharing.--Beginning October 1, 
        2008, the Secretary shall share 37.5 percent of OCS Receipts 
        derived from all leases located completely beyond 4 marine 
        leagues from any coastline and completely within 100 miles of 
        any coastline not included within the provisions of paragraph 
        (2).
            ``(4) Receipts sharing from tracts within 4 marine leagues 
        of any coastline.--
                    ``(A) Areas described in paragraph (2).--
                            ``(i) Beginning October 1, 2008, and 
                        continuing through September 30, 2013, the 
                        Secretary shall share 25 percent of OCS 
                        Receipts derived from all leases located within 
                        4 marine leagues from any coastline within 
                        areas described in paragraph (2). For each 
                        fiscal year after September 30, 2013, the 
                        Secretary shall increase the percent shared in 
                        5 percent increments each fiscal year until the 
                        sharing rate for all leases located within 4 
                        marine leagues from any coastline within areas 
                        described in paragraph (2) becomes 37.5 
                        percent.
                            ``(ii) During fiscal year 2018, the 
                        Secretary shall conduct an analysis of all of 
                        the areas described in paragraph (3) and 
                        subsection (c)(3) to determine the total of OCS 
                        Receipts derived from such areas during the 
                        period of fiscal year 2009 through fiscal year 
                        2018. The Secretary shall subtract the amount 
                        of $4 billion from the total of such OCS 
                        Receipts. If the result is a positive number, 
                        the Secretary shall divide such positive number 
                        by $4 billion. The resulting quotient, not to 
                        exceed 0.5, shall then be multiplied times 25. 
                        The product of such multiplication shall be 
                        added to 37.5 and the sum shall be the percent 
                        that the Secretary shall share for fiscal year 
                        2019 and all future years from OCS Receipts 
                        derived from all leases located within 4 marine 
                        leagues from any coastline within areas 
                        described in paragraph (2), unless increased by 
                        the provisions of (iii).
                            ``(iii) Beginning October 1, 2019, the 
                        Secretary shall share, in addition to the share 
                        established by (i), as modified by (ii) if any, 
                        amounts determined as follows, with the total 
                        of the amounts shared under this paragraph not 
                        to exceed in any fiscal year an amount equal to 
                        63.75 percent of total OCS Receipts derived 
                        from all leases located within 4 marine leagues 
                        from any coastline within areas described in 
                        paragraph (2)--25 percent of the total of OCS 
                        Receipts derived from areas described in 
                        paragraph (3) and subsection (c)(3) that exceed 
                        the following amounts for the fiscal year 
                        indicated: for fiscal year 2019 the amount of 
                        $900,000,000 and for each fiscal year 
                        thereafter add $100,000,000. Amounts added 
                        under this clause to be shared, if any, for any 
                        fiscal year shall be added to the sharing base 
                        for all subsequent years and shall be allocated 
                        among State Adjacent Zones on a basis 
                        proportional to the result from the calculation 
                        in clause (i).
                    ``(B) Areas not described in paragraph (2).--
                Beginning October 1, 2008, the Secretary shall share 
                63.75 percent of OCS receipts derived from all leases 
                located completely or partially within 4 marine leagues 
                from any coastline within areas not described paragraph 
                (2).
            ``(5) Allocations.--The Secretary shall allocate the OCS 
        Receipts deposited into the separate account established by 
        paragraph (1) that are shared under paragraphs (2), (3), and 
        (4) as follows:
                    ``(A) Bonus bids.--Deposits derived from bonus bids 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State.
                    ``(B) Royalties.--Deposits derived from royalties 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State and any other producing State or States 
                with a leased tract within its Adjacent Zone within 100 
                miles of its coastline that generated royalties during 
                the fiscal year, if the other producing or States have 
                a coastline point within 300 miles of any portion of 
                the leased tract, in which case the amount allocated 
                for the leased tract shall be--
                            ``(i) one-third to the Adjacent State; and
                            ``(ii) two-thirds to each producing State, 
                        including the Adjacent State, inversely 
                        proportional to the distance between the 
                        nearest point on the coastline of the producing 
                        State and the geographic center of the leased 
                        tract.
    ``(c) Treatment of OCS Receipts From Tracts Partially or Completely 
Beyond 100 Miles of the Coastline.--
            ``(1) Deposit.--The Secretary shall deposit into a separate 
        account in the Treasury the portion of OCS Receipts for each 
        fiscal year that will be shared under paragraphs (2) and (3).
            ``(2) Phased-in receipts sharing.--
                    ``(A) Beginning October 1, 2008, the Secretary 
                shall share OCS Receipts derived from the following 
                areas:
                            ``(i) Lease tracts located on portions of 
                        the Gulf of Mexico OCS Region partially or 
                        completely beyond 100 miles of any coastline 
                        that were available for leasing under the 2002-
                        2007 5-Year Oil and Gas Leasing Program in 
                        effect prior to the date of enactment of the 
                        Deep Ocean Energy Resources Act of 2008.
                            ``(ii) Lease tracts in production prior to 
                        October 1, 2008, partially or completely beyond 
                        100 miles of any coastline located on portions 
                        of the OCS that were not available for leasing 
                        under the 2007-2012 5-Year OCS Oil and Gas 
                        Leasing Program in effect prior to the date of 
                        enactment of the Deep Ocean Energy Resources 
                        Act of 2008.
                            ``(iii) Lease tracts for which leases are 
                        issued prior to October 1, 2008, located in the 
                        Alaska OCS Region partially or completely 
                        beyond 100 miles of the coastline.
                    ``(B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases described 
                in subparagraph (A) derived during the fiscal year 
                indicated:
                            ``(i) For fiscal year 2009, 4.6 percent.
                            ``(ii) For fiscal year 2010, 5.95 percent.
                            ``(iii) For fiscal year 2011, 6.80 percent.
                            ``(iv) For fiscal year 2012, 7.65 percent.
                            ``(v) For fiscal year 2013, 10.20 percent.
                            ``(vi) For fiscal year 2014, 12.75 percent.
                            ``(vii) For fiscal year 2015, 15.30 
                        percent.
                            ``(viii) For fiscal year 2016, 17.85 
                        percent.
                            ``(ix) For fiscal year 2017, 20.40 percent.
                            ``(x) For fiscal year 2018, 22.95 percent.
                            ``(xi) For fiscal year 2019, 25.50 percent.
                            ``(xii) For fiscal year 2020, 28.05 
                        percent.
                            ``(xiii) For fiscal year 2021, 30.60 
                        percent.
                            ``(xiv) For fiscal year 2022, 33.15 
                        percent.
                            ``(xv) For fiscal year 2023, 35.70 percent.
                            ``(xvi) For fiscal year 2024 and each 
                        subsequent fiscal year, 37.5 percent.
                    ``(C) The provisions of this paragraph shall not 
                apply to leases that could not have been issued but for 
                section 5(k) of this Act or section 146(2) of the Deep 
                Ocean Energy Resources Act of 2008.
            ``(3) Immediate receipts sharing.--Beginning October 1, 
        2008, the Secretary shall share 37.5 percent of OCS Receipts 
        derived on and after October 1, 2008, from all leases located 
        partially or completely beyond 100 miles of any coastline not 
        included within the provisions of paragraph (2), except that 
        the Secretary shall only share 25 percent of such OCS Receipts 
        derived from all such leases within a State's Adjacent Zone if 
        no leasing is allowed within any portion of that State's 
        Adjacent Zone located completely within 100 miles of any 
        coastline.
            ``(4) Allocations.--The Secretary shall allocate the OCS 
        Receipts deposited into the separate account established by 
        paragraph (1) that are shared under paragraphs (2) and (3) as 
        follows:
                    ``(A) Bonus bids.--Deposits derived from bonus bids 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State.
                    ``(B) Royalties.--Deposits derived from royalties 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State and any other producing State or States 
                with a leased tract within its Adjacent Zone partially 
                or completely beyond 100 miles of its coastline that 
                generated royalties during the fiscal year, if the 
                other producing State or States have a coastline point 
                within 300 miles of any portion of the leased tract, in 
                which case the amount allocated for the leased tract 
                shall be--
                            ``(i) one-third to the Adjacent State; and
                            ``(ii) two-thirds to each producing State, 
                        including the Adjacent State, inversely 
                        proportional to the distance between the 
                        nearest point on the coastline of the producing 
                        State and the geographic center of the leased 
                        tract.
    ``(d) Transmission of Allocations.--
            ``(1) In general.--Not later than 90 days after the end of 
        each fiscal year, the Secretary shall transmit--
                    ``(A) to each State 60 percent of such State's 
                allocations under subsections (b)(5)(A), (b)(5)(B), 
                (c)(4)(A), and (c)(4)(B) for the immediate prior fiscal 
                year;
                    ``(B) to each coastal county-equivalent and 
                municipal political subdivisions of such State a total 
                of 40 percent of such State's allocations under 
                subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and 
                (c)(4)(B), together with all accrued interest thereon; 
                and
                    ``(C) the remaining allocations under subsections 
                (b)(5) and (c)(4), together with all accrued interest 
                thereon.
            ``(2) Allocations to coastal county-equivalent political 
        subdivisions.--The Secretary shall make an initial allocation 
        of the OCS Receipts to be shared under paragraph (1)(B) as 
        follows:
                    ``(A) 25 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely more than 25 miles landward of the coastline 
                and at least a part of which lies not more than 75 
                miles landward from the coastline, with the allocation 
                among such coastal county-equivalent political 
                subdivisions based on population.
                    ``(B) 75 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely or partially less than 25 miles landward of 
                the coastline, with the allocation among such coastal 
                county-equivalent political subdivisions to be further 
                allocated as follows:
                            ``(i) 25 percent shall be allocated based 
                        on the ratio of such coastal county-equivalent 
                        political subdivision's population to the 
                        coastal population of all coastal county-
                        equivalent political subdivisions in the State.
                            ``(ii) 25 percent shall be allocated based 
                        on the ratio of such coastal county-equivalent 
                        political subdivision's coastline miles to the 
                        coastline miles of all coastal county-
                        equivalent political subdivisions in the State 
                        as calculated by the Secretary. In such 
                        calculations, coastal county-equivalent 
                        political subdivisions without a coastline 
                        shall be considered to have 50 percent of the 
                        average coastline miles of the coastal county-
                        equivalent political subdivisions that do have 
                        coastlines.
                            ``(iii) 25 percent shall be allocated to 
                        all coastal county-equivalent political 
                        subdivisions having a coastline point within 
                        300 miles of the leased tract for which OCS 
                        Receipts are being shared based on a formula 
                        that allocates the funds based on such coastal 
                        county-equivalent political subdivision's 
                        relative distance from the leased tract.
                            ``(iv) 25 percent shall be allocated to all 
                        coastal county-equivalent political 
                        subdivisions having a coastline point within 
                        300 miles of the leased tract for which OCS 
                        Receipts are being shared based on the relative 
                        level of outer Continental Shelf oil and gas 
                        activities in a coastal political subdivision 
                        compared to the level of outer Continental 
                        Shelf activities in all coastal political 
                        subdivisions in the State. The Secretary shall 
                        define the term `outer Continental Shelf oil 
                        and gas activities' for purposes of this 
                        subparagraph to include, but not be limited to, 
                        construction of vessels, drillships, and 
                        platforms involved in exploration, production, 
                        and development on the outer Continental Shelf; 
                        support and supply bases, ports, and related 
                        activities; offices of geologists, 
                        geophysicists, engineers, and other 
                        professionals involved in support of 
                        exploration, production, and development of oil 
                        and gas on the outer Continental Shelf; 
                        pipelines and other means of transporting oil 
                        and gas production from the outer Continental 
                        Shelf; and processing and refining of oil and 
                        gas production from the outer Continental 
                        Shelf. For purposes of this subparagraph, if a 
                        coastal county-equivalent political subdivision 
                        does not have a coastline, its coastal point 
                        shall be the point on the coastline closest to 
                        it.
            ``(3) Allocations to coastal municipal political 
        subdivisions.--The initial allocation to each coastal county-
        equivalent political subdivision under paragraph (2) shall be 
        further allocated to the coastal county-equivalent political 
        subdivision and any coastal municipal political subdivisions 
        located partially or wholly within the boundaries of the 
        coastal county-equivalent political subdivision as follows:
                    ``(A) One-third shall be allocated to the coastal 
                county-equivalent political subdivision.
                    ``(B) Two-thirds shall be allocated on a per capita 
                basis to the municipal political subdivisions and the 
                county-equivalent political subdivision, with the 
                allocation to the latter based upon its population not 
                included within the boundaries of a municipal political 
                subdivision.
    ``(e) Investment of Deposits.--Amounts deposited under this section 
shall be invested by the Secretary of the Treasury in securities backed 
by the full faith and credit of the United States having maturities 
suitable to the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as determined 
by the Secretary of the Treasury.
    ``(f) Use of Funds.--A recipient of funds under this section may 
use the funds for one or more of the following:
            ``(1) To reduce in-State college tuition at public 
        institutions of higher learning and otherwise support public 
        education, including career technical education.
            ``(2) To make transportation infrastructure improvements.
            ``(3) To reduce taxes.
            ``(4) To promote, fund, and provide for--
                    ``(A) coastal or environmental restoration;
                    ``(B) fish, wildlife, and marine life habitat 
                enhancement;
                    ``(C) waterways construction and maintenance;
                    ``(D) levee construction and maintenance and shore 
                protection; and
                    ``(E) marine and oceanographic education and 
                research.
            ``(5) To promote, fund, and provide for--
                    ``(A) infrastructure associated with energy 
                production activities conducted on the outer 
                Continental Shelf;
                    ``(B) energy demonstration projects;
                    ``(C) supporting infrastructure for shore-based 
                energy projects;
                    ``(D) State geologic programs, including geologic 
                mapping and data storage programs, and state 
                geophysical data acquisition;
                    ``(E) State seismic monitoring programs, including 
                operation of monitoring stations;
                    ``(F) development of oil and gas resources through 
                enhanced recovery techniques;
                    ``(G) alternative energy development, including bio 
                fuels, coal-to-liquids, oil shale, tar sands, 
                geothermal, geopressure, wind, waves, currents, hydro, 
                and other renewable energy;
                    ``(H) energy efficiency and conservation programs; 
                and
                    ``(I) front-end engineering and design for 
                facilities that produce liquid fuels from hydrocarbons 
                and other biological matter.
            ``(6) To promote, fund, and provide for--
                    ``(A) historic preservation programs and projects;
                    ``(B) natural disaster planning and response; and
                    ``(C) hurricane and natural disaster insurance 
                programs.
            ``(7) For any other purpose as determined by State law.
    ``(g) No Accounting Required.--No recipient of funds under this 
section shall be required to account to the Federal Government for the 
expenditure of such funds, except as otherwise may be required by law. 
However, States may enact legislation providing for accounting for and 
auditing of such expenditures. Further, funds allocated under this 
section to States and political subdivisions may be used as matching 
funds for other Federal programs.
    ``(h) Effect of Future Laws.--Enactment of any future Federal 
statute that has the effect, as determined by the Secretary, of 
restricting any Federal agency from spending appropriated funds, or 
otherwise preventing it from fulfilling its pre-existing 
responsibilities as of the date of enactment of the statute, unless 
such responsibilities have been reassigned to another Federal agency by 
the statute with no prevention of performance, to issue any permit or 
other approval impacting on the OCS oil and gas leasing program, or any 
lease issued thereunder, or to implement any provision of this Act 
shall automatically prohibit any sharing of OCS Receipts under this 
section directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Secretary shall 
make the determination of the existence of such restricting effects 
within 30 days of a petition by any outer Continental Shelf lessee or 
producing State.
    ``(i) Definitions.--In this section:
            ``(1) Coastal county-equivalent political subdivision.--The 
        term `coastal county-equivalent political subdivision' means a 
        political jurisdiction immediately below the level of State 
        government, including a county, parish, borough in Alaska, 
        independent municipality not part of a county, parish, or 
        borough in Alaska, or other equivalent subdivision of a coastal 
        State, that lies within the coastal zone.
            ``(2) Coastal municipal political subdivision.--The term 
        `coastal municipal political subdivision' means a municipality 
        located within and part of a county, parish, borough in Alaska, 
        or other equivalent subdivision of a State, all or part of 
        which coastal municipal political subdivision lies within the 
        coastal zone.
            ``(3) Coastal population.--The term `coastal population' 
        means the population of all coastal county-equivalent political 
        subdivisions, as determined by the most recent official data of 
        the Census Bureau.
            ``(4) Coastal zone.--The term `coastal zone' means that 
        portion of a coastal State, including the entire territory of 
        any coastal county-equivalent political subdivision at least a 
        part of which lies, within 75 miles landward from the 
        coastline, or a greater distance as determined by State law 
        enacted to implement this section.
            ``(5) Bonus bids.--The term `bonus bids' means all funds 
        received by the Secretary to issue an outer Continental Shelf 
        minerals lease.
            ``(6) Royalties.--The term `royalties' means all funds 
        received by the Secretary from production of oil or natural 
        gas, or the sale of production taken in-kind, from an outer 
        Continental Shelf minerals lease.
            ``(7) Producing state.--The term `producing State' means an 
        Adjacent State having an Adjacent Zone containing leased tracts 
        from which OCS Receipts were derived.
            ``(8) OCS receipts.--The term `OCS Receipts' means bonus 
        bids, royalties, and conservation of resources fees.''.

SEC. 148. RESERVATION OF LANDS AND RIGHTS.

    Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1341) is amended--
            (1) in subsection (a) by adding at the end the following: 
        ``The President may partially or completely revise or revoke 
        any prior withdrawal made by the President under the authority 
        of this section. The President may not revise or revoke a 
        withdrawal that is extended by a State under subsection (h), 
        nor may the President withdraw from leasing any area for which 
        a State failed to prohibit, or petition to prohibit, leasing 
        under subsection (g). Further, in the area of the outer 
        Continental Shelf more than 100 miles from any coastline, not 
        more than 25 percent of the acreage of any OCS Planning Area 
        may be withdrawn from leasing under this section at any point 
        in time. A withdrawal by the President may be for a term not to 
        exceed 10 years. When considering potential uses of the outer 
        Continental Shelf, to the maximum extent possible, the 
        President shall accommodate competing interests and potential 
        uses.'';
            (2) by adding at the end the following:
    ``(g) Availability for Leasing Within Certain Areas of the Outer 
Continental Shelf.--
            ``(1) Prohibition against leasing.--
                    ``(A) Unavailable for leasing without state 
                request.--Except as otherwise provided in this 
                subsection, from and after enactment of the Deep Ocean 
                Energy Resources Act of 2008, the Secretary shall not 
                offer for leasing for oil and gas, or natural gas, any 
                area within 50 miles of the coastline that was 
                withdrawn from disposition by leasing in the Atlantic 
                OCS Region or the Pacific OCS Region, or the Gulf of 
                Mexico OCS Region Eastern Planning Area, as depicted on 
                the maps referred to in this subparagraph, under the 
                `Memorandum on Withdrawal of Certain Areas of the 
                United States Outer Continental Shelf from Leasing 
                Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated 
                June 12, 1998, or any area within 50 miles of the 
                coastline not withdrawn under that Memorandum that is 
                included within the Gulf of Mexico OCS Region Eastern 
                Planning Area as indicated on the map entitled `Gulf of 
                Mexico OCS Region State Adjacent Zones and OCS Planning 
                Areas' or the Florida Straits Planning Area as 
                indicated on the map entitled `Atlantic OCS Region 
                State Adjacent Zones and OCS Planning Areas', both of 
                which are dated September 2005 and on file in the 
                Office of the Director, Minerals Management Service.
                    ``(B) Areas between 50 and 100 miles from the 
                coastline.--Unless an Adjacent State petitions under 
                subsection (h) within one year after the date of the 
                enactment of the Deep Ocean Energy Resources Act of 
                2008 for natural gas leasing or by June 30, 2011, for 
                oil and gas leasing, the Secretary shall offer for 
                leasing any area more than 50 miles but less than 100 
                miles from the coastline that was withdrawn from 
                disposition by leasing in the Atlantic OCS Region, the 
                Pacific OCS Region, or the Gulf of Mexico OCS Region 
                Eastern Planning Area, as depicted on the maps referred 
                to in this subparagraph, under the `Memorandum on 
                Withdrawal of Certain Areas of the United States Outer 
                Continental Shelf from Leasing Disposition', 34 Weekly 
                Comp. Pres. Doc. 1111, dated June 12, 1998, or any area 
                more than 50 miles but less than 100 miles of the 
                coastline not withdrawn under that Memorandum that is 
                included within the Gulf of Mexico OCS Region Eastern 
                Planning Area as indicated on the map entitled `Gulf of 
                Mexico OCS Region State Adjacent Zones and OCS Planning 
                Areas' or within the Florida Straits Planning Area as 
                indicated on the map entitled `Atlantic OCS Region 
                State Adjacent Zones and OCS Planning Areas', both of 
                which are dated September 2005 and on file in the 
                Office of the Director, Minerals Management Service.
            ``(2) Revocation of withdrawal.--The provisions of the 
        `Memorandum on Withdrawal of Certain Areas of the United States 
        Outer Continental Shelf from Leasing Disposition', 34 Weekly 
        Comp. Pres. Doc. 1111, dated June 12, 1998, are hereby revoked 
        and are no longer in effect. Any tract only partially added to 
        the Gulf of Mexico OCS Region Central Planning Area by this Act 
        shall be eligible for leasing of the part of such tract that is 
        included within the Gulf of Mexico OCS Region Central Planning 
        Area, and the remainder of such tract that lies outside of the 
        Gulf of Mexico OCS Region Central Planning Area may be 
        developed and produced by the lessee of such partial tract 
        using extended reach or similar drilling from a location on a 
        leased area. Further, any area in the OCS withdrawn from 
        leasing may be leased, and thereafter developed and produced by 
        the lessee using extended reach or similar drilling from a 
        location on a leased area located in an area available for 
        leasing.
            ``(3) Petition for leasing.--
                    ``(A) In general.--The Governor of the State, upon 
                concurrence of its legislature, may submit to the 
                Secretary a petition requesting that the Secretary make 
                available any area that is within the State's Adjacent 
                Zone, included within the provisions of paragraph (1), 
                and that (i) is greater than 25 miles from any point on 
                the coastline of a Neighboring State for the conduct of 
                offshore leasing, pre-leasing, and related activities 
                with respect to natural gas leasing; or (ii) is greater 
                than 50 miles from any point on the coastline of a 
                Neighboring State for the conduct of offshore leasing, 
                pre-leasing, and related activities with respect to oil 
                and gas leasing. The Adjacent State may also petition 
                for leasing any other area within its Adjacent Zone if 
                leasing is allowed in the similar area of the Adjacent 
                Zone of the applicable Neighboring State, or if not 
                allowed, if the Neighboring State, acting through its 
                Governor, expresses its concurrence with the petition. 
                The Secretary shall only consider such a petition upon 
                making a finding that leasing is allowed in the similar 
                area of the Adjacent Zone of the applicable Neighboring 
                State or upon receipt of the concurrence of the 
                Neighboring State. The date of receipt by the Secretary 
                of such concurrence by the Neighboring State shall 
                constitute the date of receipt of the petition for that 
                area for which the concurrence applies. Except for any 
                area described in the last sentence of paragraph (2), a 
                petition for leasing any part of the Alabama Adjacent 
                Zone that is a part of the Gulf of Mexico Eastern 
                Planning Area, as indicated on the map entitled `Gulf 
                of Mexico OCS Region State Adjacent Zones and OCS 
                Planning Areas' which is dated September 2005 and on 
                file in the Office of the Director, Minerals Management 
                Service, shall require the concurrence of both Alabama 
                and Florida.
                    ``(B) Limitations on leasing.--In its petition, a 
                State with an Adjacent Zone that contains leased tracts 
                may condition new leasing for oil and gas, or natural 
                gas for tracts within 25 miles of the coastline by--
                            ``(i) requiring a net reduction in the 
                        number of production platforms;
                            ``(ii) requiring a net increase in the 
                        average distance of production platforms from 
                        the coastline;
                            ``(iii) limiting permanent surface 
                        occupancy on new leases to areas that are more 
                        than 10 miles from the coastline;
                            ``(iv) limiting some tracts to being 
                        produced from shore or from platforms located 
                        on other tracts; or
                            ``(v) other conditions that the Adjacent 
                        State may deem appropriate as long as the 
                        Secretary does not determine that production is 
                        made economically or technically impracticable 
                        or otherwise impossible.
                    ``(C) Action by secretary.--Not later than 90 days 
                after receipt of a petition under subparagraph (A), the 
                Secretary shall approve the petition, unless the 
                Secretary determines that leasing the area would 
                probably cause serious harm or damage to the marine 
                resources of the State's Adjacent Zone. Prior to 
                approving the petition, the Secretary shall complete an 
                environmental assessment that documents the anticipated 
                environmental effects of leasing in the area included 
                within the scope of the petition.
                    ``(D) Failure to act.--If the Secretary fails to 
                approve or deny a petition in accordance with 
                subparagraph (C) the petition shall be considered to be 
                approved 90 days after receipt of the petition.
                    ``(E) Amendment of the 5-year leasing program.--
                Notwithstanding section 18, within 180 days of the 
                approval of a petition under subparagraph (C) or (D), 
                after the expiration of the time limits in paragraph 
                (1)(B), and within 180 days after the enactment of the 
                Deep Ocean Energy Resources Act of 2008 for the areas 
                made available for leasing under paragraph (2), the 
                Secretary shall amend the current 5-Year Outer 
                Continental Shelf Oil and Gas Leasing Program to 
                include a lease sale or sales for at least 75 percent 
                of the associated areas, unless there are, from the 
                date of approval, expiration of such time limits, or 
                enactment, as applicable, fewer than 12 months 
                remaining in the current 5-Year Leasing Program in 
                which case the Secretary shall include the associated 
                areas within lease sales under the next 5-Year Leasing 
                Program. For purposes of amending the 5-Year Program in 
                accordance with this section, further consultations 
                with States shall not be required. For purposes of this 
                section, an environmental assessment performed under 
                the provisions of the National Environmental Policy Act 
                of 1969 to assess the effects of approving the petition 
                shall be sufficient to amend the 5-Year Leasing 
                Program.
    ``(h) Option To Extend Withdrawal From Leasing Within Certain Areas 
of the Outer Continental Shelf.--A State, through its Governor and upon 
the concurrence of its legislature, may extend for a period of time of 
up to 5 years for each extension the withdrawal from leasing for all or 
part of any area within the State's Adjacent Zone located more than 50 
miles, but less than 100 miles, from the coastline that is subject to 
subsection (g)(1)(B). A State may extend multiple times for any 
particular area but not more than once per calendar year for any 
particular area. A State must prepare separate extensions, with 
separate votes by its legislature, for oil and gas leasing and for 
natural gas leasing. An extension by a State may affect some areas to 
be withdrawn from all leasing and some areas to be withdrawn only from 
one type of leasing. Extensions of the withdrawal from leasing of any 
part of the Alabama Adjacent Zone that is more than 50 miles, but less 
than 100 miles, from the coastline that is a part of the Gulf of Mexico 
OCS Region Eastern Planning Area, as indicated on the map entitled 
`Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas' 
which is dated September 2005 and on file in the Office of the 
Director, Minerals Management Service, may be made by either Alabama or 
Florida.
    ``(i) Effect of Other Laws.--Adoption by any Adjacent State of any 
constitutional provision, or enactment of any State statute, that has 
the effect, as determined by the Secretary, of restricting either the 
Governor or the Legislature, or both, from exercising full discretion 
related to subsection (g) or (h), or both, shall automatically (1) 
prohibit any sharing of OCS Receipts under this Act with the Adjacent 
State, and its coastal political subdivisions, and (2) prohibit the 
Adjacent State from exercising any authority under subsection (h), for 
the duration of the restriction. The Secretary shall make the 
determination of the existence of such restricting constitutional 
provision or State statute within 30 days of a petition by any outer 
Continental Shelf lessee or coastal State.
    ``(j) Prohibition on Leasing East of the Military Mission Line.--
            ``(1) Notwithstanding any other provision of law, from and 
        after the enactment of the Deep Ocean Energy Resources Act of 
        2008, no area of the outer Continental Shelf located in the 
        Gulf of Mexico east of the military mission line may be offered 
        for leasing for oil and gas or natural gas prior to January 1, 
        2022.
            ``(2) In this subsection, the term `military mission line' 
        means a line located at 86 degrees, 41 minutes West Longitude, 
        and extending south from the coast of Florida to the outer 
        boundary of United States territorial waters in the Gulf of 
        Mexico.''.

SEC. 149. OUTER CONTINENTAL SHELF LEASING PROGRAM.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended--
            (1) in subsection (a), by adding at the end of paragraph 
        (3) the following: ``The Secretary shall, in each 5-year 
        program, include lease sales that when viewed as a whole 
        propose to offer for oil and gas or natural gas leasing at 
        least 75 percent of the available unleased acreage within each 
        OCS Planning Area. Available unleased acreage is that portion 
        of the outer Continental Shelf that is not under lease at the 
        time of the proposed lease sale, and has not otherwise been 
        made unavailable for leasing by law.'';
            (2) in subsection (c), by striking so much as precedes 
        paragraph (3) and inserting the following:
    ``(c)(1) During the preparation of any proposed leasing program 
under this section, the Secretary shall consider and analyze leasing 
throughout the entire Outer Continental Shelf without regard to any 
other law affecting such leasing. During this preparation the Secretary 
shall invite and consider suggestions from any interested Federal 
agency, including the Attorney General, in consultation with the 
Federal Trade Commission, and from the Governor of any coastal State. 
The Secretary may also invite or consider any suggestions from the 
executive of any local government in a coastal State that have been 
previously submitted to the Governor of such State, and from any other 
person. Further, the Secretary shall consult with the Secretary of 
Defense regarding military operational needs in the outer Continental 
Shelf. The Secretary shall work with the Secretary of Defense to 
resolve any conflicts that might arise regarding offering any area of 
the outer Continental Shelf for oil and gas or natural gas leasing. If 
the Secretaries are not able to resolve all such conflicts, any 
unresolved issues shall be elevated to the President for resolution.
    ``(2) After the consideration and analysis required by paragraph 
(1), including the consideration of the suggestions received from any 
interested Federal agency, the Federal Trade Commission, the Governor 
of any coastal State, any local government of a coastal State, and any 
other person, the Secretary shall publish in the Federal Register a 
proposed leasing program accompanied by a draft environmental impact 
statement prepared pursuant to the National Environmental Policy Act of 
1969. After the publishing of the proposed leasing program and during 
the comment period provided for on the draft environmental impact 
statement, the Secretary shall submit a copy of the proposed program to 
the Governor of each affected State for review and comment. The 
Governor may solicit comments from those executives of local 
governments in the Governor's State that the Governor, in the 
discretion of the Governor, determines will be affected by the proposed 
program. If any comment by such Governor is received by the Secretary 
at least 15 days prior to submission to the Congress pursuant to 
paragraph (3) and includes a request for any modification of such 
proposed program, the Secretary shall reply in writing, granting or 
denying such request in whole or in part, or granting such request in 
such modified form as the Secretary considers appropriate, and stating 
the Secretary's reasons therefor. All such correspondence between the 
Secretary and the Governor of any affected State, together with any 
additional information and data relating thereto, shall accompany such 
proposed program when it is submitted to the Congress.''; and
            (3) by adding at the end the following:
    ``(i) Projection of State Adjacent Zone Resources and State and 
Local Government Shares of OCS Receipts.--Concurrent with the 
publication of the scoping notice at the beginning of the development 
of each 5-year outer Continental Shelf oil and gas leasing program, or 
as soon thereafter as possible, the Secretary shall--
            ``(1) provide to each Adjacent State a current estimate of 
        proven and potential oil and gas resources located within the 
        State's Adjacent Zone; and
            ``(2) provide to each Adjacent State, and coastal political 
        subdivisions thereof, a best-efforts projection of the OCS 
        Receipts that the Secretary expects will be shared with each 
        Adjacent State, and its coastal political subdivisions, using 
        the assumption that the unleased tracts within the State's 
        Adjacent Zone are fully made available for leasing, including 
        long-term projected OCS Receipts. In addition, the Secretary 
        shall include a macroeconomic estimate of the impact of such 
        leasing on the national economy and each State's economy, 
        including investment, jobs, revenues, personal income, and 
        other categories.''.

SEC. 150. COORDINATION WITH ADJACENT STATES.

    Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1345) is amended--
            (1) in subsection (a) in the first sentence by inserting 
        ``, for any tract located within the Adjacent State's Adjacent 
        Zone,'' after ``government''; and
            (2) by adding the following:
    ``(f)(1) No Federal agency may permit or otherwise approve, without 
the concurrence of the Adjacent State, the construction of a crude oil 
or petroleum products (or both) pipeline within the part of the 
Adjacent State's Adjacent Zone that is withdrawn from oil and gas or 
natural gas leasing, except that such a pipeline may be approved, 
without such Adjacent State's concurrence, to pass through such 
Adjacent Zone if at least 50 percent of the production projected to be 
carried by the pipeline within its first 10 years of operation is from 
areas of the Adjacent State's Adjacent Zone.
    ``(2) No State may prohibit the construction within its Adjacent 
Zone or its State waters of a natural gas pipeline that will transport 
natural gas produced from the outer Continental Shelf. However, an 
Adjacent State may prevent a proposed natural gas pipeline landing 
location if it proposes two alternate landing locations in the Adjacent 
State, acceptable to the Adjacent State, located within 50 miles on 
either side of the proposed landing location.''.

SEC. 151. ENVIRONMENTAL STUDIES.

    Section 20(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1346) is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following:
    ``(2) For all programs, lease sales, leases, and actions under this 
Act, the following shall apply regarding the application of the 
National Environmental Policy Act of 1969:
            ``(A) Granting or directing lease suspensions and the 
        conduct of all preliminary activities on outer Continental 
        Shelf tracts, including seismic activities, are categorically 
        excluded from the need to prepare either an environmental 
        assessment or an environmental impact statement, and the 
        Secretary shall not be required to analyze whether any 
        exceptions to a categorical exclusion apply for activities 
        conducted under the authority of this Act.
            ``(B) The environmental impact statement developed in 
        support of each 5-year oil and gas leasing program provides the 
        environmental analysis for all lease sales to be conducted 
        under the program and such sales shall not be subject to 
        further environmental analysis.
            ``(C) Exploration plans shall not be subject to any 
        requirement to prepare an environmental impact statement, and 
        the Secretary may find that exploration plans are eligible for 
        categorical exclusion due to the impacts already being 
        considered within an environmental impact statement or due to 
        mitigation measures included within the plan.
            ``(D) Within each OCS Planning Area, after the preparation 
        of the first development and production plan environmental 
        impact statement for a leased tract within the Area, future 
        development and production plans for leased tracts within the 
        Area shall only require the preparation of an environmental 
        assessment unless the most recent development and production 
        plan environmental impact statement within the Area was 
        finalized more than 10 years prior to the date of the approval 
        of the plan, in which case an environmental impact statement 
        shall be required.''.

SEC. 152. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT ACT OF 2008.

    (a) Short Title.--This section may be cited as the ``Federal Energy 
Natural Resources Enhancement Act of 2008''.
    (b) Findings.--The Congress finds the following:
            (1) Energy and minerals exploration, development, and 
        production on Federal onshore and offshore lands, including 
        bio-based fuel, natural gas, minerals, oil, geothermal, and 
        power from wind, waves, currents, and thermal energy, involves 
        significant outlays of funds by Federal and State wildlife, 
        fish, and natural resource management agencies for 
        environmental studies, planning, development, monitoring, and 
        management of wildlife, fish, air, water, and other natural 
        resources.
            (2) State wildlife, fish, and natural resource management 
        agencies are funded primarily through permit and license fees 
        paid to the States by the general public to hunt and fish, and 
        through Federal excise taxes on equipment used for these 
        activities.
            (3) Funds generated from consumptive and recreational uses 
        of wildlife, fish, and other natural resources currently are 
        inadequate to address the natural resources related to energy 
        and minerals development on Federal onshore and offshore lands.
            (4) Funds available to Federal agencies responsible for 
        managing Federal onshore and offshore lands and Federal-trust 
        wildlife and fish species and their habitats are inadequate to 
        address the natural resources related to energy and minerals 
        development on Federal onshore and offshore lands.
            (5) Receipts derived from sales, bonus bids, and royalties 
        under the mineral leasing laws of the United States are paid to 
        the Treasury through the Minerals Management Service of the 
        Department of the Interior.
            (6) None of the receipts derived from sales, bonus bids, 
        and royalties under the minerals leasing laws of the United 
        States are paid to the Federal or State agencies to examine, 
        monitor, and manage wildlife, fish, air, water, and other 
        natural resources related to natural gas, oil, and mineral 
        exploration and development.
    (c) Purposes.--It is the purpose of this section to--
            (1) authorize expenditures for the monitoring and 
        management of wildlife and fish, and their habitats, and air, 
        water, and other natural resources related to energy and 
        minerals development on Federal onshore and offshore lands;
            (2) authorize expenditures for each fiscal year to the 
        Secretary of the Interior and the States; and
            (3) use the appropriated funds to secure the necessary 
        trained workforce or contractual services to conduct 
        environmental studies, planning, development, monitoring, and 
        post-development management of wildlife and fish and their 
        habitats and air, water, and other natural resources that may 
        be related to bio-based fuel, gas, mineral, oil, wind, or other 
        energy exploration, development, transportation, transmission, 
        and associated activities on Federal onshore and offshore 
        lands, including, but not limited to--
                    (A) pertinent research, surveys, and environmental 
                analyses conducted to identify any impacts on wildlife, 
                fish, air, water, and other natural resources from 
                energy and mineral exploration, development, 
                production, and transportation or transmission;
                    (B) projects to maintain, improve, or enhance 
                wildlife and fish populations and their habitats or 
                air, water, or other natural resources, including 
                activities under the Endangered Species Act of 1973;
                    (C) research, surveys, environmental analyses, and 
                projects that assist in managing, including mitigating 
                either onsite or offsite, or both, the impacts of 
                energy and mineral activities on wildlife, fish, air, 
                water, and other natural resources; and
                    (D) projects to teach young people to live off the 
                land.
    (d) Definitions.--In this section:
            (1) Enhancement program.--The term ``Enhancement Program'' 
        means the Federal Energy Natural Resources Enhancement Program 
        established by this section.
            (2) State.--The term ``State'' means the Governor of the 
        State.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the Enhancement Program $150,000,000 for each 
of fiscal years 2009 through 2019.
    (f) Establishment of Federal Energy Natural Resources Enhancement 
Program.--
            (1) In general.--There is established the Federal Energy 
        Natural Resources Enhancement Program.
            (2) Payment to secretary of the interior.--Beginning with 
        fiscal year 2009, and in each fiscal year thereafter, one-third 
        of amounts appropriated for the Enhancement Program shall be 
        available to the Secretary of the Interior for use for the 
        purposes described in subsection (c)(3).
            (3) Payment to states.--
                    (A) In general.--Beginning with fiscal year 2009, 
                and in each fiscal year thereafter, two-thirds of 
                amounts appropriated for the Enhancement Program shall 
                be available to the States for use for the purposes 
                described in (c)(3).
                    (B) Use of payments by state.--Each State shall use 
                the payments made under this paragraph only for 
                carrying out projects and programs for the purposes 
                described in (c)(3).
                    (C) Encourage use of private funds by state.--Each 
                State shall use the payments made under this paragraph 
                to leverage private funds for carrying out projects for 
                the purposes described in (c)(3).
    (g) Limitation on Use.--Amounts made available under this section 
may not be used for the purchase of any interest in land.
    (h) Reports to Congress.--
            (1) In general.--Beginning in fiscal year 2010 and 
        continuing for each fiscal year thereafter, the Secretary of 
        the Interior and each State receiving funds from the 
        Enhancement Fund shall submit a report to the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Resources of the House of Representatives.
            (2) Required information.--Reports submitted to the 
        Congress by the Secretary of the Interior and States under this 
        subsection shall include the following information regarding 
        expenditures during the previous fiscal year:
                    (A) A summary of pertinent scientific research and 
                surveys conducted to identify impacts on wildlife, 
                fish, and other natural resources from energy and 
                mineral developments.
                    (B) A summary of projects planned and completed to 
                maintain, improve or enhance wildlife and fish 
                populations and their habitats or other natural 
                resources.
                    (C) A list of additional actions that assist, or 
                would assist, in managing, including mitigating either 
                onsite or offsite, or both, the impacts of energy and 
                mineral development on wildlife, fish, and other 
                natural resources.
                    (D) A summary of private (non-Federal) funds used 
                to plan, conduct, and complete the plans and programs 
                identified in subparagraphs (A) and (B).

SEC. 153. TERMINATION OF EFFECT OF LAWS PROHIBITING THE SPENDING OF 
              APPROPRIATED FUNDS FOR CERTAIN PURPOSES.

    All provisions of existing Federal law prohibiting the spending of 
appropriated funds to conduct oil and natural gas leasing and 
preleasing activities, or to issue a lease to any person, for any area 
of the outer Continental Shelf shall have no force or effect.

SEC. 154. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.

    (a) In General.--No Federal agency may permit construction or 
operation (or both) of any facility, or designate or maintain a 
restricted transportation corridor or operating area on the Federal 
outer Continental Shelf or in State waters, that will be incompatible 
with, as determined by the Secretary of the Interior, oil and gas or 
natural gas leasing and substantially full exploration and production 
of tracts that are geologically prospective for oil or natural gas (or 
both).
    (b) Exceptions.--Subsection (a) shall not apply to any facility, 
transportation corridor, or operating area the construction, operation, 
designation, or maintenance of which is or will be--
            (1) located in an area of the outer Continental Shelf that 
        is unavailable for oil and gas or natural gas leasing by 
        operation of law;
            (2) used for a military readiness activity (as defined in 
        section 315(f) of Public Law 107-314; 16 U.S.C. 703 note); or
            (3) required in the national interest, as determined by the 
        President.

SEC. 155. REPURCHASE OF CERTAIN LEASES.

    (a) Authority To Repurchase and Cancel Certain Leases.--The 
Secretary of the Interior shall repurchase and cancel any Federal oil 
and gas, geothermal, coal, oil shale, tar sands, or other mineral 
lease, whether onshore or offshore, but not including any outer 
Continental Shelf oil and gas leases that are subject to litigation in 
the Court of Federal Claims on January 1, 2006, if the Secretary finds 
that such lease qualifies for repurchase and cancellation under the 
regulations authorized by this section.
    (b) Regulations.--Not later than 365 days after the date of the 
enactment of this Act, the Secretary shall publish a final regulation 
stating the conditions under which a lease referred to in subsection 
(a) would qualify for repurchase and cancellation, and the process to 
be followed regarding repurchase and cancellation. Such regulation 
shall include, but not be limited to, the following:
            (1) The Secretary shall repurchase and cancel a lease after 
        written request by the lessee upon a finding by the Secretary 
        that--
                    (A) a request by the lessee for a required permit 
                or other approval complied with applicable law, except 
                the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
                et seq.), and terms of the lease and such permit or 
                other approval was denied;
                    (B) a Federal agency failed to act on a request by 
                the lessee for a required permit, other approval, or 
                administrative appeal within a regulatory or statutory 
                time-frame associated with the requested action, 
                whether advisory or mandatory, or if none, within 180 
                days; or
                    (C) a Federal agency attached a condition of 
                approval, without agreement by the lessee, to a 
                required permit or other approval if such condition of 
                approval was not mandated by Federal statute or 
                regulation in effect on the date of lease issuance, or 
                was not specifically allowed under the terms of the 
                lease.
            (2) A lessee shall not be required to exhaust 
        administrative remedies regarding a permit request, 
        administrative appeal, or other required request for approval 
        for the purposes of this section.
            (3) The Secretary shall make a final agency decision on a 
        request by a lessee under this section within 180 days of 
        request.
            (4) Compensation to a lessee to repurchase and cancel a 
        lease under this section shall be the amount that a lessee 
        would receive in a restitution case for a material breach of 
        contract.
            (5) Compensation shall be in the form of a check or 
        electronic transfer from the Department of the Treasury from 
        funds deposited into miscellaneous receipts under the authority 
        of the same Act that authorized the issuance of the lease being 
        repurchased.
            (6) Failure of the Secretary to make a final agency 
        decision on a request by a lessee under this section within 180 
        days of request shall result in a 10 percent increase in the 
        compensation due to the lessee if the lease is ultimately 
        repurchased.
    (c) No Prejudice.--This section shall not be interpreted to 
prejudice any other rights that the lessee would have in the absence of 
this section.

SEC. 156. OFFSITE ENVIRONMENTAL MITIGATION.

    Notwithstanding any other provision of law, any person conducting 
activities under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the 
Geothermal Steam Act (30 U.S.C. 1001 et seq.), the Mineral Leasing Act 
for Acquired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 U.S.C. 
552 et seq.), the General Mining Act of 1872 (30 U.S.C. 22 et seq.), 
the Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in satisfying 
any mitigation requirements associated with such activities propose 
mitigation measures on a site away from the area impacted and the 
Secretary of the Interior shall accept these proposed measures if the 
Secretary finds that they generally achieve the purposes for which 
mitigation measures appertained.

SEC. 157. MINERALS MANAGEMENT SERVICE.

    The bureau known as the ``Minerals Management Service'' in the 
Department of the Interior shall be known as the ``National Ocean 
Resources and Royalty Service''.

SEC. 158. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS 
              PLATFORMS AND OTHER FACILITIES FOR ARTIFICIAL REEF, 
              SCIENTIFIC RESEARCH, OR OTHER USES.

    (a) Short Title.--This section may be cited as the ``Rigs to Reefs 
Act of 2008''.
    (b) In General.--The Outer Continental Shelf Lands Act (43 U.S.C. 
1301 et seq.) is amended by inserting after section 9 the following:

``SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS AND 
              OTHER FACILITIES FOR ARTIFICIAL REEF, SCIENTIFIC 
              RESEARCH, OR OTHER USES.

    ``(a) In General.--The Secretary shall issue regulations under 
which the Secretary may authorize use of an offshore oil and gas 
platform or other facility that is decommissioned from service for oil 
and gas purposes for an artificial reef, scientific research, or any 
other use authorized under section 8(p) or any other applicable Federal 
law.
    ``(b) Transfer Requirements.--The Secretary shall not allow the 
transfer of a decommissioned offshore oil and gas platform or other 
facility to another person unless the Secretary is satisfied that the 
transferee is sufficiently bonded, endowed, or otherwise financially 
able to fulfill its obligations, including but not limited to--
            ``(1) ongoing maintenance of the platform or other 
        facility;
            ``(2) any liability obligations that might arise;
            ``(3) removal of the platform or other facility if 
        determined necessary by the Secretary; and
            ``(4) any other requirements and obligations that the 
        Secretary may deem appropriate by regulation.
    ``(c) Plugging and Abandonment.--The Secretary shall ensure that 
plugging and abandonment of wells is accomplished at an appropriate 
time.
    ``(d) Potential To Petition To Opt-Out of Regulations.--An Adjacent 
State acting through a resolution of its legislature, with concurrence 
of its Governor, may preliminarily petition to opt-out of the 
application of regulations promulgated under this section to platforms 
and other facilities located in the area of its Adjacent Zone within 12 
miles of the coastline. Upon receipt of the preliminary petition, the 
Secretary shall complete an environmental assessment that documents the 
anticipated environmental effects of approving the petition. The 
Secretary shall provide the environmental assessment to the State, 
which then has the choice of no action or confirming its petition by 
further action of its legislature, with the concurrence of its 
Governor. The Secretary is authorized to except such area from the 
application of such regulations, and shall approve any confirmed 
petition.
    ``(e) Limitation on Liability.--A person that had used an offshore 
oil and gas platform or other facility for oil and gas purposes and 
that no longer has any ownership or control of the platform or other 
facility shall not be liable under Federal law for any costs or damages 
arising from such platform or other facility after the date the 
platform or other facility is used for any purpose under subsection 
(a), unless such costs or damages arise from--
            ``(1) use of the platform or other facility by the person 
        for development or production of oil or gas; or
            ``(2) another act or omission of the person.
    ``(f) Other Leasing and Use Not Affected.--This section, and the 
use of any offshore oil and gas platform or other facility for any 
purpose under subsection (a), shall not affect--
            ``(1) the authority of the Secretary to lease any area 
        under this Act; or
            ``(2) any activity otherwise authorized under this Act.''.
    (c) Deadline for Regulations.--The Secretary of the Interior shall 
issue regulations under subsection (b) by not later than 180 days after 
the date of the enactment of this Act.
    (d) Study and Report on Effects of Removal of Platforms.--Not later 
than one year after the date of enactment of this Act, the Secretary of 
the Interior, in consultation with other Federal agencies as the 
Secretary deems advisable, shall study and report to the Congress 
regarding how the removal of offshore oil and gas platforms and other 
facilities from the outer Continental Shelf would affect existing fish 
stocks and coral populations.

SEC. 159. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE INVENTORY OF 
              OCS OIL AND NATURAL GAS RESOURCES.

    The Energy Policy Act of 2005 (Public Law 109-58) is amended--
            (1) by repealing section 357 (119 Stat. 720; 42 U.S.C. 
        15912); and
            (2) in the table of contents in section 1(b), by striking 
        the item relating to such section 357.

SEC. 160. MINING AND PETROLEUM SCHOOLS.

    (a) Maintenance and Restoration of Existing and Historic Petroleum 
and Mining Engineering Programs.--Public Law 98-409 (30 U.S.C. 1221 et 
seq.) is amended to read as follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Energy and Mineral Schools 
Reinvestment Act'.

``SEC. 2. POLICY.

    ``It is the policy of the United States to maintain the human 
capital needed to preserve and foster the economic, energy, and mineral 
resources security of the United States. The petroleum and mining 
engineering programs and the applied geology and geophysics programs at 
State chartered schools, universities, and institutions that produce 
human capital are national assets and should be assisted with Federal 
funds to ensure their continued health and existence.

``SEC. 3. MAINTAINING AND RESTORING HISTORIC AND EXISTING PETROLEUM AND 
              MINING ENGINEERING EDUCATION PROGRAMS.

    ``(a) The Secretary of the Interior (in this Act referred to as the 
`Secretary') shall provide funds to historic and existing State-
chartered recognized petroleum or mining schools to assist such 
schools, universities, and institutions in maintaining programs in 
petroleum, mining, and mineral engineering education and research. All 
funds shall be directed only to these programs and shall be subject to 
the conditions of this section. Such funds shall not be less than 25 
percent of the annual outlay of funds authorized by section 162(d) of 
the Deep Ocean Energy Resources Act of 2008.
    ``(b) In this Act the term `historic and existing State-chartered 
recognized petroleum or mining school' means a school, university, or 
educational institution with the presence of an engineering program 
meeting the specific program criteria, established by the member 
societies of ABET, Inc., for petroleum, mining, or mineral engineering 
and that is accredited on the date of enactment of the Deep Ocean 
Energy Resources Act of 2008 by ABET, Inc.
    ``(c) It shall be the duty of each school, university, or 
institution receiving funds under this section to provide for and 
enhance the training of undergraduate and graduate petroleum, mining, 
and mineral engineers through research, investigations, demonstrations, 
and experiments. All such work shall be carried out in a manner that 
will enhance undergraduate education.
    ``(d) Each school, university, or institution receiving funds under 
this Act shall maintain the program for which the funds are provided 
for 10 years after the date of the first receipt of such funds and take 
steps described in its application for funding to increase the number 
of undergraduate students enrolled in and completing the programs of 
study in petroleum, mining, and mineral engineering.
    ``(e) The research, investigation, demonstration, experiment, and 
training authorized by this section may include development and 
production of conventional and non-conventional fuel resources, the 
production of metallic and non-metallic mineral resources including 
industrial mineral resources, and the production of stone, sand, and 
gravel. In all cases the work carried out with funds made available 
under this Act shall include a significant opportunity for 
participation by undergraduate students.
    ``(f) Research funded by this Act related to energy and mineral 
resource development and production may include--
            ``(1) studies of petroleum, mining, and mineral extraction 
        and immediately related beneficiation technology;
            ``(2) mineral economics, reclamation technology, and 
        practices for active operations;
            ``(3) the development of re-mining systems and technologies 
        to facilitate reclamation that fosters the ultimate recovery of 
        resources at abandoned petroleum, mining, and aggregate 
        production sites; and
            ``(4) research on ways to extract petroleum and mineral 
        resources that reduce the environmental impact of those 
        activities.
    ``(g) Grants for basic science and engineering studies and research 
shall not require additional participation by funding partners. Grants 
for studies to demonstrate the proof of concept for science and 
engineering or the demonstration of feasibility and implementation 
shall include participation by industry and may include funding from 
other Federal agencies.
    ``(h)(1) No funds made available under this section shall be 
applied to the acquisition by purchase or lease of any land or 
interests therein, or the rental, purchase, construction, preservation, 
or repair of any building.
    ``(2) Funding made available under this section may be used with 
the express approval of the Secretary for proposals that will provide 
for maintaining or upgrading of existing laboratories and laboratory 
equipment. Funding for such maintenance shall not be used for 
university overhead expenses.
    ``(3) Funding made available under this Act may be used for 
maintaining and upgrading mines and oil and gas drilling rigs owned by 
a school, university, or institution described in this section that are 
used for undergraduate and graduate training and worker safety 
training. All requests for funding such mines and oil and gas drilling 
rigs must demonstrate that they have been owned by the school, 
university, or institution for 5 years prior to the date of enactment 
of the Deep Ocean Energy Resources Act of 2008 and have been actively 
used for instructional or training purposes during that time.
    ``(4) Any funding made available under this section for research, 
investigation, demonstration, experiment, or training shall not be used 
for university overhead charges in excess of 10 percent of the amount 
authorized by the Secretary.

``SEC. 4. FORMER AND NEW PETROLEUM AND MINING ENGINEERING PROGRAMS.

    ``(a) A school, university, or educational institution that 
formerly met the requirements of section 3(b) immediately before the 
date of the enactment of the Deep Ocean Energy Resources Act of 2008, 
or that seeks to establish a new program described in section 3(b), 
shall be eligible for funding under this Act only if it--
            ``(1) establishes a petroleum, mining, or mineral 
        engineering program that meets the specific program criteria 
        and is accredited as such by ABET, Inc., with particular 
        consideration awarded to establishing programs and minority 
        serving institutions;
            ``(2) agrees to the conditions of subsections (c) through 
        (h) of section 3 and the Secretary determines that the program 
        will strengthen and increase the number of nationally 
        available, well-qualified faculty members in petroleum, mining, 
        and mineral engineering; and
            ``(3) agrees to maintain the accredited program for 10 
        years after the date of the first receipt of funds under this 
        Act.
    ``(b) The Secretary shall seek the advice of the Committee 
established pursuant to section 11 in determining the criteria used to 
carry out this section.

``SEC. 5. FUNDING OF CONSORTIA OF HISTORIC AND EXISTING SCHOOLS.

    ``Where appropriate, the Secretary may make funds available to 
consortia of schools, universities, or institutions described in 
sections 3, 4, and 6, including those consortia that include schools, 
universities, or institutions that are ineligible for funds under this 
Act if those schools, universities, or institutions, respectively, have 
skills, programs, or facilities specifically identified as needed by 
the consortia to meet the necessary expenses for purposes of--
            ``(1) specific energy and mineral research projects of 
        broad application that could not otherwise be undertaken, 
        including the expenses of planning and coordinating regional 
        petroleum, geothermal, mining, and mineral engineering or 
        beneficiation projects by two or more schools; and
            ``(2) research into any aspects of petroleum, geothermal, 
        mining, or mineral engineering or beneficiation problems, 
        including but not limited to exploration, that are related to 
        the mission of the Department of the Interior.

``SEC. 6. SUPPORT FOR SCHOOLS WITH ENERGY AND MINERAL RESOURCE PROGRAMS 
              IN PETROLEUM AND MINERAL EXPLORATION GEOLOGY, PETROLEUM 
              GEOPHYSICS, OR MINING GEOPHYSICS.

    ``(a) Twelve percent of the annual outlay of funds authorized by 
section 162(d) of the Deep Ocean Energy Resources Act of 2008 may be 
granted to schools, universities, and institutions other than those 
described in sections 3 and 4, with particular consideration awarded to 
minority serving institutions.
    ``(b) The Secretary shall determine the eligibility of a college or 
university to receive funding under this Act using criteria that 
include--
            ``(1) the presence of a substantial program of 
        undergraduate and graduate geoscience instruction and research 
        in one or more of the following specialties: petroleum geology, 
        geothermal geology, mineral exploration geology, economic 
        geology, industrial minerals geology, mining geology, petroleum 
        geophysics, mining geophysics, geological engineering, or 
        geophysical engineering that has a demonstrated history of 
        achievement;
            ``(2) evidence of institutional commitment for the purposes 
        of this Act that includes a significant opportunity for 
        participation by undergraduate students in research;
            ``(3) evidence that such school, university, or institution 
        has or can obtain significant industrial cooperation in 
        activities within the scope of this Act;
            ``(4) agreement by the school, university, or institution 
        to maintain the programs for which the funding is sought for 
        the 10-year period beginning on the date the school, 
        university, or institution first receives such funds; and
            ``(5) requiring that such funding shall be for the purposes 
        set forth in subsections (c) through (h) of section 3 and 
        subject to the conditions set forth in section 3(h).
    ``(c) The Secretary shall seek the advice of the Committee 
established pursuant to section 11 in determining the criteria used to 
carry out this section.

``SEC. 7. DESIGNATION OF FUNDS FOR SCHOLARSHIPS AND FELLOWSHIPS.

    ``(a) The Secretary shall utilize 10 percent of the annual outlay 
of funds authorized by section 162(d) of the Deep Ocean Energy 
Resources Act of 2008 for the purpose of providing merit-based 
scholarships for undergraduate education, graduate fellowships, and 
postdoctoral fellowships.
    ``(b) In order to receive a scholarship or a graduate fellowship, 
an individual student must be a lawful permanent resident of the United 
States or a United States citizen and must agree in writing to complete 
a course of studies and receive a degree in petroleum, mining, or 
mineral engineering, petroleum geology, geothermal geology, mining and 
economic geology, petroleum and mining geophysics, or mineral 
economics.
    ``(c) The regulations required by section 9 shall require that an 
individual, in order to retain a scholarship or graduate fellowship, 
must continue in one of the course of studies listed in subsection (b) 
of this section, must remain in good academic standing, as determined 
by the school, institution, or university and must allow for 
reinstatement of the scholarship or graduate fellowship by the 
Secretary, upon the recommendation of the school or institution. Such 
regulations may also provide for recovery of funds from an individual 
who fails to complete any of the courses of study listed in subsection 
(b) of this section after notice that such completion is a requirement 
of receipt funding under this Act.
    ``(d) To carry out this section, the Secretary shall award grants 
to schools, universities, and institutions that are eligible to receive 
funding under section 3, 4 or 6. A school, university, or institution 
receiving funding under this subsection shall be responsible for 
enforcing the requirements of this section for scholarship or 
fellowship students and shall return to the Secretary any funds 
recovered from an individual under subsection (c). An institution 
seeking funds under this subsection shall describe, in its application 
to the Secretary for funding, the number of students that would be 
awarded scholarships or fellowships if the application is approved, how 
such students would be selected, and how the provisions of this section 
will be enforced.

``SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS.

    ``(a) Each application to the Secretary for funds under this Act 
shall state, among other things, the nature of the project to be 
undertaken; the period during which it will be pursued; the 
qualifications of the personnel who will direct and conduct it; the 
estimated costs; the importance of the project to the Nation, region, 
or States concerned; its relation to other known research projects 
theretofore pursued or being pursued; the extent to which the proposed 
project will maximize the opportunity for the training of undergraduate 
petroleum, mining, and mineral engineers; geologists and geophysicists; 
and the extent of participation by nongovernmental sources in the 
project.
    ``(b) No funds shall be made available under this Act except for an 
application approved by the Secretary. All funds shall be made 
available upon the basis of merit of the application, the need for the 
knowledge that it is expected to produce when completed, and the 
opportunity it provides for the undergraduate training of individuals 
as petroleum, mining, and mineral engineers, geologists, and 
geophysicists. The Secretary may use competitive review by 
nongovernmental experts in relevant fields to determine which 
applications to approve, to the extent practicable.
    ``(c) Funds available under this Act shall be paid at such times 
and in such amounts during each fiscal year as determined by the 
Secretary, and upon vouchers approved by the Secretary. Each school, 
university, or institution that receives funds under this Act shall--
            ``(1) establish its plan to provide for the training of 
        individuals as petroleum, mining, and mineral engineers, 
        geologists, and geophysicists under a curriculum appropriate to 
        the field of mineral resources and mineral engineering and 
        related fields;
            ``(2) establish policies and procedures that assure that 
        Federal funds made available under this Act for any fiscal year 
        will supplement and, to the extent practicable, increase the 
        level of funds that would, in the absence of such Federal 
        funds, be made available for purposes of this Act, and in no 
        case supplant such funds; and
            ``(3) have an officer appointed by its governing authority 
        who shall receive and account for all funds paid under this Act 
        and shall make an annual report to the Secretary on or before 
        the first day of September of each year, on work accomplished 
        and the status of projects underway, together with a detailed 
        statement of the amounts received under this Act during the 
        preceding fiscal year, and of its disbursements on schedules 
        prescribed by the Secretary.
    ``(d) If any of the funds received by the authorized receiving 
officer of a program under this Act are found by the Secretary to have 
been improperly diminished, lost, or misapplied, such funds shall be 
recovered by the Secretary.
    ``(e) Schools, universities, and institutions receiving funds under 
this Act are authorized and encouraged to plan and conduct programs 
under this Act in cooperation with each other and with such other 
agencies, business enterprises and individuals.

``SEC. 9. DUTIES OF SECRETARY.

    ``(a) The Secretary, acting through the Assistant Secretary for 
Land and Minerals Management, shall administer this Act and shall 
prescribe such rules and regulations as may be necessary to carry out 
its provisions not later than 1 year after the enactment of the Deep 
Ocean Energy Resources Act of 2008.
    ``(b)(1) There is established in the Department of the Interior, 
under the supervision of the Assistant Secretary for Land and Minerals 
Management, an office to be known as the Office of Petroleum and Mining 
Schools (hereafter in this Act referred to as the `Office') to 
administer the provisions of this Act. There shall be a Director of the 
Office who shall be a member of the Senior Executive Service. The 
position of the Director shall be allocated from among the existing 
Senior Executive Service positions at the Department of the Interior 
and shall be a career reserved position as defined in section 
3132(a)(8) of title 5, United States Code.
    ``(2) The Director is authorized to appoint a Deputy Director and 
to employ such officers and employees as may be necessary to enable the 
Office to carry out its functions. Such appointments shall be made from 
existing positions at the Department of the Interior, and shall be 
subject to the provisions of title 5, United States Code, governing 
appointments in the competitive service. Such positions shall be paid 
in accordance with the provisions of chapter 51 and subchapter III of 
chapter 53 of such title relating to classification and General 
Schedule pay rates.
    ``(3) In carrying out his or her functions, the Director shall 
assist and advise the Secretary and the Committee pursuant to section 
11 of this Act by--
            ``(A) providing professional and administrative staff 
        support for the Committee including recordkeeping and 
        maintaining minutes of all Committee and subcommittee meetings;
            ``(B) coordinating the activities of the Committee with 
        Federal agencies and departments, and the schools, 
        universities, and institutions to which funds are provided 
        under this Act;
            ``(C) maintaining accurate records of funds disbursed for 
        all scholarship and fellowship grants, research grants, and 
        grants for career technical education purposes;
            ``(D) preparing any regulations required to implement this 
        Act;
            ``(E) conducting site visits at schools, universities, and 
        institutions receiving funding under this Act; and
            ``(F) serving as a central repository for reports and 
        clearing house for public information on research funded by 
        this Act.
    ``(4) The Director or an employee of the Office shall be present at 
each meeting of the Committee pursuant to section 11 or a subcommittee 
of such Committee.
    ``(5) The Director is authorized to contract with public or private 
agencies, institutions, and organizations and with individuals without 
regard to section 3324(a) and (b) of title 31, United States Code, and 
section 5 of title 41, United States Code, in carrying out his or her 
functions.
    ``(6) As needed the Director shall ascertain whether the 
requirements of this Act have been met by schools, universities, 
institutions, and individuals.
    ``(c) The Secretary, acting through the Office of Petroleum and 
Mining Schools, shall furnish such advice and assistance as will best 
promote the purposes of this Act, shall participate in coordinating 
research, investigations, demonstrations, and experiments initiated 
under this Act, shall indicate to schools, universities, and 
institutions receiving funds under this Act such lines of inquiry that 
seem most important, and shall encourage and assist in the 
establishment and maintenance of cooperation between such schools, 
universities, and institutions, other research organizations, the 
Department of the Interior, and other Federal agencies.
    ``(d) The Secretary shall establish procedures--
            ``(1) to ensure that each employee and contractor of the 
        Office established by this section and each member of the 
        Committee pursuant to section 11 of this Act shall disclose to 
        the Secretary any financial interests in or financial 
        relationships with schools, universities, institutions or 
        individuals receiving funds, scholarships or fellowships under 
        this Act;
            ``(2) to require any employee, contractor, or member of the 
        Committee with a financial relationship disclosed under 
        paragraph (1) to recuse themselves from--
                    ``(A) any recommendation or decision regarding the 
                awarding of funds, scholarships or fellowships; or
                    ``(B) any review, report, analysis or investigation 
                regarding compliance with the provisions of this Act by 
                a school, university, institution or any individual.
    ``(e) On or before the first day of July of each year beginning 
after the date of enactment of this sentence, schools, universities, 
and institutions receiving funds under this Act shall certify 
compliance with this Act and upon request of the Director of the office 
established by this section provide documentation of such compliance.
    ``(f) An individual granted a scholarship or fellowship with funds 
provided under this Act shall through their respective school, 
university, or institution, advise the Director of the office 
established by this Act of progress towards completion of the course of 
studies and upon the awarding of the degree within 30 days after the 
award.
    ``(g) The regulations required by this section shall include a 
preference for veterans and service members who have received or will 
receive either the Afghanistan Campaign Medal or the Iraq Campaign 
Medal as authorized by Public Law 108-234, and Executive Order No. 
13363.

``SEC. 10. COORDINATION.

    ``(a) Nothing in this Act shall be construed to impair or modify 
the legal relationship existing between any of the schools, 
universities, and institutions under whose direction a program is 
established with funds provided under this Act and the government of 
the State in which it is located. Nothing in this Act shall in any way 
be construed to authorize Federal control or direction of education at 
any school, university, or institution.
    ``(b) The programs authorized by this Act are intended to enhance 
the Nation's petroleum, mining, and mineral engineering education 
programs and to enhance educational programs in petroleum and mining 
exploration and to increase the number of individuals enrolled in and 
completing these programs. To achieve this intent, the Secretary and 
the Committee pursuant to section 11 shall receive the continuing 
advice and cooperation of all agencies of the Federal Government 
concerned with the identification, exploration, and development of 
energy and mineral resources.
    ``(c) Nothing in this Act is intended to give or shall be construed 
as giving the Secretary any authority over mining and mineral resources 
research conducted by any agency of the Federal Government, or as 
repealing or diminishing existing authorities or responsibilities of 
any agency of the Federal Government to plan and conduct, contract for, 
or assist in research in its area of responsibility and concern with 
regard to mining and mineral resources.
    ``(d) The schools, universities, and institutions receiving funding 
under this Act shall make detailed reports to the Office of Petroleum 
and Mining Schools on projects completed, in progress, or planned with 
funds provided under this Act. All such reports shall be available to 
the public on not less than an annual basis through the Office of 
Petroleum and Mining Schools. All uses, products, processes, and other 
developments resulting from any research, demonstration, or experiment 
funded in whole or in part under this Act shall be made available 
promptly to the general public, subject to exception or limitation, if 
any, as the Secretary may find necessary in the interest of national 
security, and subject to the applicable Federal law governing patents.

``SEC. 11. COMMITTEE ON PETROLEUM, MINING, AND MINERAL ENGINEERING AND 
              ENERGY AND MINERAL RESOURCE EDUCATION.

    ``(a) The Secretary shall appoint a Committee on Petroleum, Mining, 
and Mineral Engineering and Energy and Mineral Resource Education 
composed of--
            ``(1) the Assistant Secretary of the Interior responsible 
        for land and minerals management and not more than 16 other 
        persons who are knowledgeable in the fields of mining and 
        mineral resources research, including 2 university 
        administrators one of whom shall be from historic and existing 
        petroleum and mining schools; a community, technical, or tribal 
        college administrator; a career technical education educator; 6 
        representatives equally distributed from the petroleum, mining, 
        and aggregate industries; a working miner; a working oilfield 
        worker; a representative of the Interstate Oil and Gas Compact 
        Commission; a representative from the Interstate Mining Compact 
        Commission; a representative from the Western Governors 
        Association; a representative of the State geologists, and a 
        representative of a State mining and reclamation agency. In 
        making these 16 appointments, the Secretary shall consult with 
        interested groups.
            ``(2) The Assistant Secretary for Land and Minerals 
        Management, in the capacity of the Chairman of the Committee, 
        may have present during meetings of the Committee 
        representatives of Federal agencies with responsibility for 
        energy and minerals resources management, energy and mineral 
        resource investigations, energy and mineral commodity 
        information, international trade in energy and mineral 
        commodities, mining safety regulation and mine safety research, 
        and research into the development, production, and utilization 
        of energy and mineral commodities. These representatives shall 
        serve as technical advisors to the committee and shall have no 
        voting responsibilities.
    ``(b) The Committee shall consult with, and make recommendations 
to, the Secretary on policy matters relating to carrying out this Act. 
The Secretary shall consult with and carefully consider recommendations 
of the Committee in such matters.
    ``(c) Committee members, other than officers or employees of 
Federal, State, or local governments, shall be, for each day (including 
traveltime) during which they are performing Committee business, paid 
at a rate fixed by the Secretary but not in excess of the daily 
equivalent of the maximum rate of pay for level IV of the Executive 
Schedule under section 5136 of title 5, United States Code, and shall 
be fully reimbursed for travel, subsistence, and related expenses.
    ``(d) The Committee shall be chaired by the Assistant Secretary of 
the Interior responsible for land and minerals management. There shall 
also be elected a Vice Chairman by the Committee from among the members 
referred to in this section. The Vice Chairman shall perform such 
duties as are determined to be appropriate by the committee, except 
that the Chairman of the Committee must personally preside at all 
meetings of the full Committee. The Committee may organize itself into 
such subcommittees as the Committee may deem appropriate.
    ``(e) Following completion of the report required by section 385 of 
the Energy Policy Act of 2005, the Committee shall consider the 
recommendations of the report, ongoing efforts in the schools, 
universities, and institutions receiving funding under this Act, the 
Federal and State Governments, and the private sector, and shall 
formulate and recommend to the Secretary a national plan for a program 
utilizing the fiscal resources provided under this Act. The Committee 
shall submit such plan to the Secretary for approval. Upon approval, 
the plan shall guide the Secretary and the Committee in their actions 
under this Act.
    ``(f) Section 10 of the Federal Advisory Committee Act (5 U.S.C. 
App. 2) shall not apply to the Committee.

``SEC. 12. CAREER TECHNICAL EDUCATION.

    ``(a) Up to 25 percent of the annual outlay of funds authorized by 
section 162(d) of the Deep Ocean Energy Resources Act of 2008 may be 
granted to schools or institutions including, but not limited to, 
colleges, universities, community colleges, tribal colleges and 
universities, technical institutes, secondary schools, other than those 
described in sections 3, 4, 5, and 6, and jointly sponsored 
apprenticeship and training programs that are authorized by Federal 
law.
    ``(b) The Secretary shall determine the eligibility of a school or 
institution to receive funding under this section using criteria that 
include--
            ``(1) the presence of a State-approved program in mining 
        engineering technology, petroleum engineering technology, 
        industrial engineering technology, or industrial technology 
        that--
                    ``(A) is focused on technology and its use in 
                energy and mineral production and related maintenance, 
                operational safety, or energy infrastructure protection 
                and security;
                    ``(B) prepares students for advanced or supervisory 
                roles in the mining industry or the petroleum industry; 
                and
                    ``(C) grants either an associate's degree or a 
                baccalaureate degree in one of the subjects listed in 
                subparagraph (A);
            ``(2) the presence of a program, including a secondary 
        school vocational education program or career academy, that 
        provides training for individuals entering the petroleum, coal 
        mining, or mineral mining industries; or
            ``(3) the presence of a State-approved program of career 
        technical education at a secondary school, offered 
        cooperatively with a community college in one of the industrial 
        sectors of--
                    ``(A) agriculture, forestry, or fisheries;
                    ``(B) utilities;
                    ``(C) construction;
                    ``(D) manufacturing; and
                    ``(E) transportation and warehousing.
    ``(c) Schools or institutions receiving funds under this section 
must show evidence of an institutional commitment for the purposes of 
career technical education and provide evidence that the school or 
institution has received or will receive industry cooperation in the 
form of equipment, employee time, or donations of funds to support the 
activities that are within the scope of this section.
    ``(d) Schools or institutions receiving funds under this section 
must agree to maintain the programs for which the funding is sought for 
a period of 10 years beginning on the date the school or institution 
receives such funds, unless the Secretary finds that a shorter period 
of time is appropriate for the local labor market or is required by 
State authorities.
    ``(e) Schools or institutions receiving funds under this section 
may combine these funds with State funds, and other Federal funds where 
allowed by law, to carry out programs described in this section, 
however the use of the funds received under this section must be 
reported to the Secretary not less than annually.
    ``(f) The Secretary shall seek the advice of the Committee 
established pursuant to section 11 in determining the criteria used to 
carry out this section.

``SEC. 13. DEPARTMENT OF THE INTERIOR WORKFORCE ENHANCEMENT.

    ``(a) Physical Science, Engineering and Technology Scholarship 
Program.--
            ``(1) From the amount of funds available to carry out this 
        section, the Secretary shall use 30 percent of that amount to 
        provide financial assistance for education in physical 
        sciences, engineering, and engineering or industrial technology 
        and disciplines that, as determined by the Secretary, are 
        critical to the functions of the Department of the Interior and 
        are needed in the Department of the Interior workforce.
            ``(2) The Secretary of the Interior may award a scholarship 
        in accordance with this section to a person who--
                    ``(A) is a citizen of the United States;
                    ``(B) is pursuing an undergraduate or advanced 
                degree in a critical skill or discipline described in 
                paragraph (1) at an institution of higher education; 
                and
                    ``(C) enters into a service agreement with the 
                Secretary of the Interior as described in subsection 
                (e).
            ``(3) The amount of the financial assistance provided under 
        a scholarship awarded to a person under this subsection shall 
        be the amount determined by the Secretary of the Interior as 
        being necessary to pay all educational expenses incurred by 
        that person, including tuition, fees, cost of books, laboratory 
        expenses, and expenses of room and board. The expenses paid, 
        however, shall be limited to those educational expenses 
        normally incurred by students at the institution of higher 
        education involved.
    ``(b) Scholarship Program for Students Attending Minority Serving 
Higher Education Institutions.--
            ``(1) From the amount of funds available to carry out this 
        section, the Secretary shall use 35 percent of that amount to 
        award scholarships in accordance with this section to persons 
        who--
                    ``(A) are enrolled in a Minority Serving Higher 
                Education Institution;
                    ``(B) are citizens or nationals of the United 
                States;
                    ``(C) are pursuing an undergraduate or advanced 
                degree in agriculture, engineering, engineering or 
                industrial technology, or physical sciences, or other 
                discipline that is found by the Secretary to be 
                critical to the functions of the Department of the 
                Interior and are needed in the Department of the 
                Interior workforce; and
                    ``(D) enter into a service agreement with the 
                Secretary of the Interior as described in subsection 
                (e).
            ``(2) The amount of the financial assistance provided under 
        a scholarship awarded to a person under this subsection shall 
        be the amount determined by the Secretary of the Interior as 
        being necessary to pay all educational expenses incurred by 
        that person, including tuition, fees, cost of books, laboratory 
        expenses, and expenses of room and board. The expenses paid, 
        however, shall be limited to those educational expenses 
        normally incurred by students at the institution of higher 
        education involved.
    ``(c) Education Partnerships With Minority Serving Higher Education 
Institutions.--
            ``(1) The Secretary shall require the director of each 
        Bureau and Office, to foster the participation of Minority 
        Serving Higher Education Institutions in any regulatory 
        activity, land management activity, science activity, 
        engineering or industrial technology activity, or engineering 
        activity carried out by the Department of the Interior.
            ``(2) From the amount of funds available to carry out this 
        section, the Secretary shall use 35 percent of that amount to 
        support activities at Minority Serving Higher Education 
        Institutions by--
                    ``(A) funding faculty and students in these 
                institutions in collaborative research projects that 
                are directly related to the Departmental or Bureau 
                missions;
                    ``(B) allowing equipment transfer to Minority 
                Serving Higher Education Institutions as a part of a 
                collaborative research program directly related to a 
                Departmental or Bureau mission;
                    ``(C) allowing faculty and students at these 
                Minority Serving Higher Education Institutions to 
                participate Departmental and Bureau training 
                activities;
                    ``(D) funding paid internships in Departmental and 
                Bureau facilities for students at Minority Serving 
                Higher Education Institutions; and
                    ``(E) assigning Departmental and Bureau personnel 
                to positions located at Minority Serving Higher 
                Educational Institutions to serve as mentors to 
                students interested in a science, technology or 
                engineering disciplines related to the mission of the 
                Department or the Bureaus.
    ``(d) Service Agreement for Recipients of Assistance.--
            ``(1) To receive financial assistance under subsection (a) 
        or (b) of this section--
                    ``(A) in the case of an employee of the Department 
                of the Interior, the employee shall enter into a 
                written agreement to continue in the employment of the 
                department for the period of obligated service 
                determined under paragraph (2); and
                    ``(B) in the case of a person not an employee of 
                the Department of the Interior, the person shall enter 
                into a written agreement to accept and continue 
                employment in the Department of the Interior for the 
                period of obligated service determined under paragraph 
                (2).
            ``(2) For the purposes of this section, the period of 
        obligated service for a recipient of a scholarship under this 
        section shall be the period determined by the Secretary of the 
        Interior as being appropriate to obtain adequate service in 
        exchange for the financial assistance provided under the 
        scholarship. In no event may the period of service required of 
        a recipient be less than the total period of pursuit of a 
        degree that is covered by the scholarship. The period of 
        obligated service is in addition to any other period for which 
        the recipient is obligated to serve in the civil service of the 
        United States.
            ``(3) An agreement entered into under this subsection by a 
        person pursuing an academic degree shall include any terms and 
        conditions that the Secretary of the Interior determines 
        necessary to protect the interests of the United States or 
        otherwise appropriate for carrying out this section.
    ``(e) Refund for Period of Unserved Obligated Service.--
            ``(1) A person who voluntarily terminates service before 
        the end of the period of obligated service required under an 
        agreement entered into under subsection (d) shall refund to the 
        United States an amount determined by the Secretary of the 
        Interior as being appropriate to obtain adequate service in 
        exchange for financial assistance.
            ``(2) An obligation to reimburse the United States imposed 
        under paragraph (1) is for all purposes a debt owed to the 
        United States.
            ``(3) The Secretary of the Interior may waive, in whole or 
        in part, a refund required under paragraph (1) if the Secretary 
        determines that recovery would be against equity and good 
        conscience or would be contrary to the best interests of the 
        United States.
            ``(4) A discharge in bankruptcy under title 11, United 
        States Code, that is entered less than five years after the 
        termination of an agreement under this section does not 
        discharge the person signing such agreement from a debt arising 
        under such agreement or under this subsection.
    ``(f) Relationship to Other Programs.--The Secretary of the 
Interior shall coordinate the provision of financial assistance under 
the authority of this section with the provision of financial 
assistance under the authorities provided in this Act in order to 
maximize the benefits derived by the Department of Interior from the 
exercise of all such authorities.
    ``(g) Report.--Not later than September 1 of each year, the 
Secretary of the Interior shall submit to the Congress a report on the 
status of the assistance program carried out under this section. The 
report shall describe the programs within the Department designed to 
recruit and retain a workforce on a short-term basis and on a long-term 
basis.
    ``(h) Definitions.--As used in this section:
            ``(1) The term `Minority Serving Higher Education 
        Institutions' means a Hispanic-serving institution, 
        historically Black college or university, Alaska Native-serving 
        institution, tribal college or university, or insular area 
        school.
            ``(2) The term `Hispanic-serving institution' has the 
        meaning given the term in section 502(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1101a(a)).
            ``(3) The term `historically Black college or university' 
        has the meaning given the term `part B institution' in section 
        322 of the Higher Education Act of 1965 (20 U.S.C. 1061).
            ``(4) The term `tribal college or university' has the 
        meaning given the term `Tribal College or University' in 
        section 316(b)(3) of the Higher Education Act of 1965 (20 
        U.S.C. 1059c).
            ``(5) The term `institution of higher education' has the 
        meaning given such term in section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001).
            ``(6) The term `Alaska Native-serving institution' has the 
        meaning given the term in section 317 of the Higher Education 
        Act of 1965 (20 U.S.C. 1059d).
            ``(7) The term `insular area school' means an academic 
        institution or university in American Samoa, Guam, The Northern 
        Mariana Islands, Puerto Rico, and the Virgin Islands, or any 
        other territory or possession of the United States.
    ``(i) Funding.--To implement this section, the Secretary shall use 
3 percent of the annual outlay authorized by section 162(d) of the Deep 
Ocean Energy Resources Act of 2008.''.
    (b) Funding for Energy Research.--
            (1) Using 20 percent of the funds authorized by subsection 
        (d), the Secretary of Energy, through the energy supply 
        research and development programs of the Department of Energy, 
        and in consultation with the Office of Science of the 
        Department of Energy, shall carry out a program to award grants 
        to institutions of higher education on the basis of 
        competitive, merit-based review, for the purpose of conducting 
        research on advanced energy technologies with the potential to 
        transform the energy systems of the United States so as to--
                    (A) reduce dependence on foreign energy supplies;
                    (B) reduce or eliminate emissions of greenhouse 
                gases;
                    (C) reduce negative environmental effects 
                associated with energy production, storage, and use; 
                and
                    (D) enhance the competitiveness of United States 
                energy technology exports.
            (2) Awards made under this subsection may include funding 
        for--
                    (A) energy efficiency;
                    (B) renewable energy, including solar, wind, and 
                biofuels; and
                    (C) nuclear, hydrogen, and any other energy 
                research that could accomplish the purpose set forth in 
                paragraph (1).
            (3) The Secretary of Energy may require or authorize 
        grantees under this subsection to partner with industry, but 
        only to the extent that such a requirement does not prevent 
        long-range, potentially pathbreaking research from being funded 
        under this subsection.
            (4) An institution of higher education seeking funding 
        under this subsection shall submit an application at such time, 
        in such manner, and containing such information as the 
        Secretary of Energy may require.
            (5) In this subsection, the term ``institution of higher 
        education'' has the meaning given that term in section 101(a) 
        of the Higher Education Act of 1965.
    (c) Funding for Energy Scholarships.--
            (1) Using 5 percent of the funds authorized by subsection 
        (d), the Secretary of Energy, through the energy supply 
        research and development programs of the Department of Energy, 
        and in consultation with the Office of Science of the 
        Department of Energy, shall carry out a program to award grants 
        to institutions of higher education on the basis of 
        competitive, merit-based review, to grant graduate traineeships 
        to Ph.D. students who are citizens of the United States who 
        will carry out research on advanced energy technologies to 
        accomplish the purpose set forth in subsection (c)(1).
            (2) Awards made under this subsection may include funding 
        for--
                    (A) energy efficiency;
                    (B) renewable energy, including solar, wind, and 
                biofuels; and
                    (C) nuclear, hydrogen, and any other energy 
                research that would accomplish the purpose set forth in 
                subsection (c)(1) that is not eligible for funding 
                under section 7 of the Energy and Mineral Schools 
                Reinvestment Act.
            (3) An institution of higher education seeking funding 
        under this subsection shall submit an application at such time, 
        in such manner, and containing such information as the 
        Secretary of Energy may require.
            (4) In this subsection, the term ``institution of higher 
        education'' has the meaning given that term in section 101(a) 
        of the Higher Education Act of 1965.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $150,000,000 for each of fiscal 
years 2009 through 2019.

SEC. 161. ONSHORE AND OFFSHORE MINERAL LEASE FEES.

    Except as otherwise provided in this subtitle, the Department of 
the Interior is prohibited from charging fees applicable to actions on 
Federal onshore and offshore oil and gas, coal, geothermal, and other 
mineral leases, including transportation of any production from such 
leases, if such fees were not established in final regulations prior to 
the date of issuance of the lease.

SEC. 162. OCS REGIONAL HEADQUARTERS.

    The headquarters for the Gulf of Mexico Region shall permanently be 
located within the State of Louisiana within 25 miles of the center of 
Jackson Square, New Orleans, Louisiana. Further, not later than July 1, 
2010, the Secretary of the Interior shall establish the headquarters 
for the Atlantic OCS Region and the headquarters for the Pacific OCS 
Region within a State bordering the Atlantic OCS Region and a State 
bordering the Pacific OCS Region, respectively, from among the States 
bordering those Regions, that petitions by no later than January 1, 
2010, for leasing, for oil and gas or natural gas, covering at least 40 
percent of the area of its Adjacent Zone within 100 miles of the 
coastline. Such Atlantic and Pacific OCS Regions headquarters shall be 
located within 25 miles of the coastline and each MMS OCS regional 
headquarters shall be the permanent duty station for all Minerals 
Management Service personnel that on a daily basis spend on average 60 
percent or more of their time in performance of duties in support of 
the activities of the respective Region, except that the Minerals 
Management Service may house regional inspection staff in other 
locations. Each OCS Region shall each be led by a Regional Director who 
shall be an employee within the Senior Executive Service.

SEC. 163. NATIONAL GEO FUND ACT OF 2008.

    (a) Short Title.--This section may be cited as the ``National Geo 
Fund Act of 2008''.
    (b) Purposes.--The purpose of this section is to provide for the 
management of geologic programs, geologic mapping, geophysical and 
other seismic studies, seismic monitoring programs, and the 
preservation and use of geologic and geophysical data, geothermal and 
geopressure energy resource management, unconventional energy resources 
management, and renewable energy management associated with ocean wave, 
current, and thermal resources.
    (c) State Defined.--In this section the term ``State'' means the 
agency of a State designated by its Governor or State law to perform 
the functions and activities described in subsection (b).
    (d) Strategic Unconventional Resources.--
            (1) Program.--The Secretary of the Interior shall establish 
        a program for production of fuels from strategic unconventional 
        resources, and production of oil and gas resources using 
        CO<INF>2</INF> enhanced recovery. The program shall focus 
        initially on activities and domestic resources most likely to 
        result in significant production in the near future, and shall 
        include work necessary to improve extraction techniques, 
        including surface and in situ operations. The program shall 
        include characterization and assessment of potential resources, 
        a sampling program, appropriate laboratory and other analyses 
        and testing, and assessment of methods for exploration and 
        development of these strategic unconventional resources.
            (2) Pilot projects.--The program created in paragraph (1) 
        shall include, but not be limited to, pilot projects on (A) the 
        Maverick Basin heavy oil and tar sands formations of Texas, 
        including the San Miguel deposits, (B) the Greater Green River 
        Basin heavy oil, shale, tar sands, and coal deposits of 
        Colorado, Utah, and Wyoming, (C) the shale, tar sands, heavy 
        oil, and coal deposits in the Alabama-Mississippi-Tennessee 
        region, (D) the shale, tar sands, heavy oil, and coal deposits 
        in the Ohio River valley, and (E) strategic unconventional 
        resources in California. The Secretary shall identify and 
        report to Congress on feasible incentives to foster recovery of 
        unconventional fuels by private industry within the United 
        States. Such incentives may include, but are not limited to, 
        long-term contracts for the purchase of unconventional fuels 
        for defense purposes, Federal grants and loan guarantees for 
        necessary capital expenditures, and favorable terms for the 
        leasing of Government lands containing unconventional 
        resources.
            (3) Definitions.--In this subsection:
                    (A) Strategic unconventional resources.--The term 
                ``strategic unconventional resources'' means 
                hydrocarbon resources, including heavy oil, shale, tar 
                sands, and coal deposits, from which liquid fuels may 
                be produced.
                    (B) In situ extraction methods.--The term ``in situ 
                extraction methods'' means recovery techniques that are 
                applied to the resources while they are still in the 
                ground, and are in commercial use or advanced stages of 
                development. Such techniques include, but are not 
                limited to, steam flooding, steam-assisted gravity 
                drainage (including combination with electric power 
                generation where appropriate), cyclic steam 
                stimulation, air injection, and chemical treatment.
            (4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection for each of 
        fiscal years 2009 through 2016 not less than $35,000,000. Each 
        pilot project shall be allocated not less than $4,000,000 per 
        year in each of fiscal years 2009 through 2016.
    (e) Support of Geothermal and Geopressure Oil and Gas Energy 
Production.--
            (1) In general.--The Secretary of the Interior shall carry 
        out a grant program in support of geothermal and geopressure 
        oil and gas energy production. The program shall include grants 
        for a total of not less than three assessments of the use of 
        innovative geothermal techniques such as organic rankine cycle 
        systems at marginal, unproductive, and productive oil and gas 
        wells, and not less than one assessment of the use of 
        innovative geopressure techniques. The Secretary shall, to the 
        extent practicable and in the public interest, make awards 
        that--
                    (A) include not less than five oil or gas well 
                sites per project award;
                    (B) use a range of oil or gas well hot water source 
                temperatures from 150 degrees Fahrenheit to 300 degrees 
                Fahrenheit;
                    (C) use existing or new oil or gas wells;
                    (D) cover a range of sizes from 175 kilowatts to 
                one megawatt;
                    (E) are located at a range of sites including 
                tribal lands, Federal lease, State, or privately owned 
                sites;
                    (F) can be replicated at a wide range of sites;
                    (G) facilitate identification of optimum techniques 
                among competing alternatives;
                    (H) include business commercialization plans that 
                have the potential for production of equipment at high 
                volumes and operation and support at a large number of 
                sites; and
                    (I) satisfy other criteria that the Secretary 
                determines are necessary to carry out the program.
        The Secretary shall give preference to assessments that address 
        multiple elements contained in subparagraphs (A) through (I).
            (2) Grant awards.--
                    (A) In general.--Each grant award for assessment of 
                innovative geothermal or geopressure technology such as 
                organic rankine cycle systems at oil and gas wells made 
                by the Secretary under this section shall include--
                            (i) necessary and appropriate site 
                        engineering study;
                            (ii) detailed economic assessment of site 
                        specific conditions;
                            (iii) appropriate feasibility studies to 
                        determine ability for replication;
                            (iv) design or adaptation of existing 
                        technology for site specific circumstances or 
                        conditions;
                            (v) installation of equipment, service, and 
                        support; and
                            (vi) monitoring for a minimum of one year 
                        after commissioning date.
            (3) Competitive grant selection.--Not less than 180 days 
        after the date of the enactment of this Act, the Secretary 
        shall conduct a national solicitation for applications for 
        grants under the program. Grant recipients shall be selected on 
        a competitive basis based on criteria in subsection (b).
            (4) Federal share.--The Federal share of costs of grants 
        under this subsection shall be provided from funds made 
        available to carry out this section. The Federal share of the 
        cost of a project carried out with such a grant shall not 
        exceed 50 percent of such cost.
            (5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection for each of 
        fiscal years 2007 through 2011 not less than $5,000,000. No 
        funds authorized under this section may be used for the 
        purposes of drilling new wells.
            (6) Amendment.--Section 4 of the Geothermal Steam Act of 
        1970 (30 U.S.C. 1003) is amended by adding at the end the 
        following:
    ``(h) Geothermal Resources Co-Produced With the Minerals.--Any 
person who holds a lease or who operates a cooperative or unit plan 
under the Mineral Leasing Act, in the absence of an existing lease for 
geothermal resources under this Act, shall upon notice to the Secretary 
have the right to utilize any geothermal resources co-produced with the 
minerals for which the lease was issued during the operation of that 
lease or cooperative or unit plan, for the generating of electricity to 
operate the lease. Any electricity that is produced in excess of that 
which is required to operate the lease and that is sold for purposes 
outside of the boundary of the lease shall be subject to the 
requirements of section 5.''.
    (f) Liquid Fuels Grant Program.--
            (1) Program.--The Secretary of the Interior shall establish 
        a grant program for facilities for coal-to-liquids, petroleum 
        coke-to-liquids, oil shale, tar sands, heavy oil, and Alaska 
        natural gas-to-liquids and to assess the production of low-rank 
        coal water fuel (in this subsection referred to as ``LRCWF'').
            (2) LRCWF.--The LRCWF grant project location shall use 
        lignite coal and shall be allocated $15,000,000.
            (3) Definitions.--In this subsection:
                    (A) Coal-to-liquids front-end engineering and 
                design.--The terms ``coal-to-liquids front-end 
                engineering and design'' and ``FEED'' mean those 
                expenditures necessary to engineer, design, and obtain 
                permits for a facility for a particular geographic 
                location which will utilize a process or technique to 
                produce liquid fuels from coal resources.
                    (B) Low-rank coal water fuel.--In this subsection 
                the term ``low-rank coal water fuel'' means a liquid 
                fuel produced from hydrothermal treatment of lignite 
                and sub-bituminous coals.
            (4) Grant provisions.--All grants shall require a 50 
        percent non-Federal cost share. The first 4 FEED grant 
        recipients who receive full project construction financing 
        commitments, based on earliest calendar date, shall not be 
        required to repay any of their grants. The next 4 FEED grant 
        recipients who receive such commitments shall be required to 
        repay 25 percent of the grant. The next 4 FEED grant recipients 
        who receive such commitments shall be required to repay 50 
        percent of the grant, and the remaining FEED grant recipients 
        shall be required to repay 75 percent of the grant. Any 
        required repayment shall be paid as part of the closing process 
        for any construction financing relating to the grant. No 
        repayment shall require the payment of interest if repaid 
        within 5 years of the issuance of the grant. FEED grants shall 
        be limited to a maximum of $500,000 per 1,000 barrels per day 
        of liquid fuels production capacity.
            (5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $50,000,000 for 
        each of fiscal years 2009 through 2016.
    (g) Renewable Energy From Ocean Wave, Current, and Thermal 
Resources.--
            (1) Program.--The Secretary of the Interior shall establish 
        a grant program for the production of renewable energy from 
        ocean waves, tides, currents, and thermal resources.
            (2) Grant provisions.--All grants under this subsection 
        shall require a 50 percent non-Federal cost share.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection funds for each 
        of fiscal years 2009 through 2016 in the amount of not less 
        than $20,000,000 each year, and thereafter in such amounts as 
        the Secretary may find appropriate.
    (h) Amendment to the Surface Mining Control and Reclamation Act of 
1977.--Section 507 of the Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1267) is amended by adding at the end the following:
    ``(i) Any person who provides the regulatory authority with a map 
under subsection (b)(13) or (b)(14) shall not be liable to any other 
person in any way for the accuracy or completeness of any such map 
which was not prepared and certified by or on behalf of such person.''.
    (i) Amendment to the Energy Policy Act of 2005.--Section 357 of the 
Energy Policy Act of 2005 (42 U.S.C. 15912) is amended by redesignating 
subsection (b) as subsection (c), and inserting the following new 
subsection:
    ``(b) There is authorized to be appropriated for the Secretary to 
contract for use of the 3-D seismic technology referenced in (a)(2) the 
amount of $50,000,000 for each of fiscal years 2009 through 2016.''.

SEC. 164. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF CALIFORNIA OR 
              FLORIDA.

    (a) Authorization To Cancel and Exchange Certain Existing Oil and 
Gas Leases; Prohibition on Submittal of Exploration Plans for Certain 
Leases Prior to June 30, 2012.--
            (1) Authority.--Within 2 years after the date of enactment 
        of this Act, the lessee of an existing oil and gas lease for an 
        area located completely within 100 miles of the coastline 
        within the California or Florida Adjacent Zones shall have the 
        option, without compensation, of exchanging such lease for a 
        new oil and gas lease having a primary term of 5 years. For the 
        area subject to the new lease, the lessee may select any 
        unleased tract on the outer Continental Shelf that is in an 
        area available for leasing. Further, with the permission of the 
        relevant Governor, such a lessee may convert its existing oil 
        and gas lease into a natural gas lease having a primary term of 
        5 years and covering the same area as the existing lease or 
        another area within the same State's Adjacent Zone within 100 
        miles of the coastline.
            (2) Administrative process.--The Secretary of the Interior 
        shall establish a reasonable administrative process to 
        implement paragraph (1). Exchanges and conversions under 
        subsection (a), including the issuance of new leases, shall not 
        be considered to be major Federal actions for purposes of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.). Further, such actions conducted in accordance with this 
        section are deemed to be in compliance all provisions of the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).
            (3) Operating restrictions.--A new lease issued in exchange 
        for an existing lease under this section shall be subject to 
        such national defense operating stipulations on the OCS tract 
        covered by the new lease as may be applicable upon issuance.
            (4) Priority.--The Secretary shall give priority in the 
        lease exchange process based on the amount of the original 
        bonus bid paid for the issuance of each lease to be exchanged. 
        The Secretary shall allow leases covering partial tracts to be 
        exchanged for leases covering full tracts conditioned upon 
        payment of additional bonus bids on a per-acre basis as 
        determined by the average per acre of the original bonus bid 
        per acre for the partial tract being exchanged.
            (5) Exploration plans.--Any exploration plan submitted to 
        the Secretary of the Interior after the date of the enactment 
        of this Act and before July 1, 2012, for an oil and gas lease 
        for an area wholly within 100 miles of the coastline within the 
        California Adjacent Zone or Florida Adjacent Zone shall not be 
        treated as received by the Secretary until the earlier of July 
        1, 2012, or the date on which a petition by the Adjacent State 
        for oil and gas leasing covering the area within which is 
        located the area subject to the oil and gas lease was approved.
    (b) Further Lease Cancellation and Exchange Provisions.--
            (1) Cancellation of lease.--As part of the lease exchange 
        process under this section, the Secretary shall cancel a lease 
        that is exchanged under this section.
            (2) Consent of lessees.--All lessees holding an interest in 
        a lease must consent to cancellation of their leasehold 
        interests in order for the lease to be cancelled and exchanged 
        under this section.
            (3) Waiver of rights.--As a prerequisite to the exchange of 
        a lease under this section, the lessee must waive any rights to 
        bring any litigation against the United States related to the 
        transaction.
            (4) Plugging and abandonment.--The plugging and abandonment 
        requirements for any wells located on any lease to be cancelled 
        and exchanged under this section must be complied with by the 
        lessees prior to the cancellation and exchange.
    (c) Area Partially Within 100 Miles of Florida.--An existing oil 
and gas lease for an area located partially within 100 miles of the 
coastline within the Florida n Adjacent Zone may only be developed and 
produced using wells drilled from well-head locations at least 100 
miles from the coastline to any bottom-hole location on the area of the 
lease. This subsection shall not apply if Florida has petitioned for 
leasing closer to the coastline than 100 miles.
    (d) Existing Oil and Gas Lease Defined.--In this section the term 
``existing oil and gas lease'' means an oil and gas lease in effect on 
the date of the enactment of this Act.

SEC. 165. COASTAL IMPACT ASSISTANCE.

    Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1356a) is repealed.

SEC. 166. OIL SHALE AND TAR SANDS AMENDMENTS.

    (a) Repeal of Requirement To Establish Payments.--Section 369(o) of 
the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 728; 42 
U.S.C. 15927) is repealed.
    (b) Treatment of Revenues.--Section 21 of the Mineral Leasing Act 
(30 U.S.C. 241) is amended by adding at the end the following:
    ``(e) Revenues.--
            ``(1) In general.--Notwithstanding the provisions of 
        section 35, all revenues received from and under an oil shale 
        or tar sands lease shall be disposed of as provided in this 
        subsection.
            ``(2) Royalty rates for commercial leases.--
                    ``(A) Royalty rates.--The Secretary shall model the 
                royalty schedule for oil shale and tar sands leases 
                based on the royalty program currently in effect for 
                the production of synthetic crude oil from oil sands in 
                the Province of Alberta, Canada.
                    ``(B) Reduction.--The Secretary shall reduce any 
                royalty otherwise required to be paid under 
                subparagraph (A) under any oil shale or tar sands lease 
                on a sliding scale based upon market price, with a 10 
                percent reduction if the average futures price of NYMEX 
                Light Sweet Crude, or a similar index, drops, for the 
                previous quarter year, below $50 (in January 1, 2006, 
                dollars), and an 80 percent reduction if the average 
                price drops below $30 (in January 1, 2006, dollars) for 
                the quarter previous to the one in which the production 
                is sold.
            ``(3) Disposition of revenues.--
                    ``(A) Deposit.--The Secretary shall deposit into a 
                separate account in the Treasury all revenues derived 
                from any oil shale or tar sands lease.
                    ``(B) Allocations to states and local political 
                subdivisions.--The Secretary shall allocate 50 percent 
                of the revenues deposited into the account established 
                under subparagraph (A) to the State within the 
                boundaries of which the leased lands are located, with 
                a portion of that to be paid directly by the Secretary 
                to the State's local political subdivisions as provided 
                in this paragraph.
                    ``(C) Transmission of allocations.--
                            ``(i) In general.--Not later than the last 
                        business day of the month after the month in 
                        which the revenues were received, the Secretary 
                        shall transmit--
                                    ``(I) to each State two-thirds of 
                                such State's allocations under 
                                subparagraph (B), and in accordance 
                                with clauses (ii) and (iii) to certain 
                                county-equivalent and municipal 
                                political subdivisions of such State a 
                                total of one-third of such State's 
                                allocations under subparagraph (B), 
                                together with all accrued interest 
                                thereon; and
                                    ``(II) the remaining balance of 
                                such revenues deposited into the 
                                account that are not allocated under 
                                subparagraph (B), together with 
                                interest thereon, shall be transmitted 
                                to the miscellaneous receipts account 
                                of the Treasury, except that until a 
                                lease has been in production for 20 
                                years 50 percent of such remaining 
                                balance derived from a lease shall be 
                                paid in accordance with subclause (I).
                            ``(ii) Allocations to certain county-
                        equivalent political subdivisions.--The 
                        Secretary shall under clause (i)(I) make 
                        equitable allocations of the revenues to 
                        county-equivalent political subdivisions that 
                        the Secretary determines are closely associated 
                        with the leasing and production of oil shale 
                        and tar sands, under a formula that the 
                        Secretary shall determine by regulation.
                            ``(iii) Allocations to municipal political 
                        subdivisions.--The initial allocation to each 
                        county-equivalent political subdivision under 
                        clause (ii) shall be further allocated to the 
                        county-equivalent political subdivision and any 
                        municipal political subdivisions located 
                        partially or wholly within the boundaries of 
                        the county-equivalent political subdivision on 
                        an equitable basis under a formula that the 
                        Secretary shall determine by regulation.
                    ``(D) Investment of deposits.--The deposits in the 
                Treasury account established under this section shall 
                be invested by the Secretary of the Treasury in 
                securities backed by the full faith and credit of the 
                United States having maturities suitable to the needs 
                of the account and yielding the highest reasonably 
                available interest rates as determined by the Secretary 
                of the Treasury.
                    ``(E) Use of funds.--A recipient of funds under 
                this subsection may use the funds for any lawful 
                purpose as determined by State law. Funds allocated 
                under this subsection to States and local political 
                subdivisions may be used as matching funds for other 
                Federal programs without limitation. Funds allocated to 
                local political subdivisions under this subsection may 
                not be used in calculation of payments to such local 
                political subdivisions under programs for payments in 
                lieu of taxes or other similar programs.
                    ``(F) No accounting required.--No recipient of 
                funds under this subsection shall be required to 
                account to the Federal Government for the expenditure 
                of such funds, except as otherwise may be required by 
                law.
            ``(4) Definitions.--In this subsection:
                    ``(A) County-equivalent political subdivision.--The 
                term `county-equivalent political subdivision' means a 
                political jurisdiction immediately below the level of 
                State government, including a county, parish, borough 
                in Alaska, independent municipality not part of a 
                county, parish, or borough in Alaska, or other 
                equivalent subdivision of a State.
                    ``(B) Municipal political subdivision.--The term 
                `municipal political subdivision' means a municipality 
                located within and part of a county, parish, borough in 
                Alaska, or other equivalent subdivision of a State.''.

SEC. 167. AVAILABILITY OF OCS RECEIPTS TO PROVIDE PAYMENTS UNDER SECURE 
              RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF 
              2000.

    Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended by inserting after subsection (i), as added by section 147 
of this Act, the following new subsection:
    ``(j) Conditional Availability of Funds for Payments Under Secure 
Rural Schools and Community Self-Determination Act of 2000.--
            ``(1) Availability of funds.--Subject to paragraph (2), but 
        notwithstanding any other provision of this section, 
        $50,000,000 of OCS Receipts shall be available to the Secretary 
        of the Treasury for each of fiscal years 2009 through 2010 to 
        make payments under sections 102 and 103 of the Secure Rural 
        Schools and Community Self-Determination Act of 2000 (Public 
        Law 106-393; 16 U.S.C. 500 note). The Secretary of the Treasury 
        shall use the funds made available by this subsection to make 
        such payments in lieu of using funds in the Treasury not 
        otherwise appropriated, as otherwise authorized by sections 
        102(b)(3) and 103(b)(2) of such Act.
            ``(2) Condition on availability.--OCS Receipts shall be 
        available under paragraph (1) for a fiscal year only if--
                    ``(A) title I of the Secure Rural Schools and 
                Community Self-Determination Act of 2000 has been 
                reauthorized through at least that fiscal year; and
                    ``(B) the authority to initiate projects under 
                titles II and III of such Act has been extended through 
                at least that fiscal year.''.

SEC. 168. SENSE OF THE CONGRESS TO BUY AND BUILD AMERICAN.

    (a) Buy and Build American.--It is the intention of the Congress 
that this subtitle, among other things, result in a healthy and growing 
American industrial, manufacturing, transportation, and service sector 
employing the vast talents of America's workforce to assist in the 
development of affordable energy from the Outer Continental Shelf. 
Moreover, the Congress intends to monitor the deployment of personnel 
and material in the Outer Continental Shelf to encourage the 
development of American technology and manufacturing to enable United 
States workers to benefit from this subtitle by good jobs and careers, 
as well as the establishment of important industrial facilities to 
support expanded access to American resources.
    (b) Safeguard for Extraordinary Ability.--Section 30(a) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the 
matter preceding paragraph (1) by striking ``regulations which'' and 
inserting ``regulations that shall be supplemental and complimentary 
with and under no circumstances a substitution for the provisions of 
the Constitution and laws of the United States extended to the subsoil 
and seabed of the outer Continental Shelf pursuant to section 144(a)(1) 
of this Act, except insofar as such laws would otherwise apply to 
individuals who have extraordinary ability in the sciences, arts, 
education, or business, which has been demonstrated by sustained 
national or international acclaim, and that''.

                          Subtitle D--Nuclear

SEC. 181. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.

    (a) Definition of Project Cost.--Section 1701(1) of the Energy 
Policy Act of 2005 (42 U.S.C. 16511(1)) is amended by inserting a new 
paragraph (4) and renumbering the paragraphs accordingly:
            ``(4) Project cost.--The term `project cost' means all 
        costs associated with the development, planning, design, 
        engineering, permitting and licensing, construction, 
        commissioning, start-up, shakedown and financing of the 
        facility, including but not limited to reasonable escalation 
        and contingencies, the cost of and fees for the guarantee, 
        reasonably required reserve funds, initial working capital and 
        interest during construction.''.
    (b) Terms and Conditions.--Section 1702 of the Energy Policy Act of 
2005 (42 U.S.C. 16512) is amended by striking subsections (b) and (c) 
and inserting the following:
    ``(b) Specific Appropriation or Contribution.--
            ``(1) In general.--No guarantee shall be made unless--
                    ``(A) an appropriation for the cost has been made; 
                or
                    ``(B) the Secretary has received from the borrower 
                a payment in full for the cost of the obligation and 
                deposited the payment into the Treasury; or
                    ``(C) a combination of subparagraphs (A) and (B) 
                has been made, that when combined is sufficient to 
                cover the cost of the obligation.
            ``(2) Relation to other laws.--Section 504(b) of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall not 
        apply to a loan guarantee made in accordance with paragraph 
        (1)(B).''.
    (c) Amount.--Section 1702 of the Energy Policy Act of 2005 (42 
U.S.C. 16512) is amended by striking subsection (c) and inserting the 
following:
    ``(c) Amount.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall guarantee 100 percent of the obligation for a facility 
        that is the subject of the guarantee, or a lesser amount if 
        requested by the borrower.
            ``(2) Limitation.--The total amount of loans guaranteed for 
        a facility by the Secretary shall not exceed 80 percent of the 
        total cost of the facility, as estimated at the time at which 
        the guarantee is issued.''.
    (d) Fees.--Section 1702(h) of the Energy Policy Act of 2005 (42 
U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Availability.--Fees collected under this subsection 
        shall--
                    ``(A) be deposited by the Secretary into a special 
                fund in the Treasury to be known as the `Incentives For 
                Innovative Technologies Fund'; and
                    ``(B) remain available to the Secretary for 
                expenditure, without further appropriation or fiscal 
                year limitation, for administrative expenses incurred 
                in carrying out this title.''.

SEC. 182. AUTHORIZATION FOR NUCLEAR POWER 2010 PROGRAM.

    Section 952(c) of the Energy Policy Act of 2005 (42 U.S.C. 16014) 
is amended by striking paragraphs (1) and (2) and inserting the 
following:
            ``(1) In general.--The Secretary shall carry out a Nuclear 
        Power 2010 Program to position the nation to start construction 
        of new nuclear power plants by 2010 or as close to 2010 as 
        achievable.
            ``(2) Scope of program.--The Nuclear Power 2010 Program 
        shall be cost-shared with the private sector and shall support 
        the following objectives:
                    ``(A) Demonstrating the licensing process for new 
                nuclear power plants, including the Nuclear Regulatory 
                Commission process for obtaining early site permits 
                (ESPs), combined construction/operating licenses 
                (COLs), and design certifications.
                    ``(B) Conducting first-of-a-kind design and 
                engineering work on at least two advanced nuclear 
                reactor designs sufficient to bring those designs to a 
                state of design completion sufficient to allow 
                development of firm cost estimates.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out the 
        Nuclear Power 2010 Program:
                    ``(A) $182,800,000 for fiscal year 2008.
                    ``(B) $159,600,000 for fiscal year 2009.
                    ``(C) $135,600,000 for fiscal year 2010.
                    ``(D) $46,900,000 for fiscal year 2011.
                    ``(E) $2,200,000 for fiscal year 2012.''.

SEC. 183. DOMESTIC MANUFACTURING BASE FOR NUCLEAR COMPONENTS AND 
              EQUIPMENT.

    (a) Establishment of Interagency Working Group.--
            (1) Purposes.--The purposes of this subsection are--
                    (A) to increase the competitiveness of the United 
                States nuclear energy products and services industries;
                    (B) to identify the stimulus or incentives 
                necessary to cause United States manufacturers of 
                nuclear energy products to expand manufacturing 
                capacity;
                    (C) to facilitate the export of United States 
                nuclear energy products and services;
                    (D) to reduce the trade deficit of the United 
                States through the export of United States nuclear 
                energy products and services;
                    (E) to retain and create nuclear energy 
                manufacturing and related service jobs in the United 
                States;
                    (F) to integrate the objectives in subparagraphs 
                (A) through (E) in a manner consistent with the 
                interests of the United States, into the foreign policy 
                of the United States; and
                    (G) to authorize funds for increasing United States 
                capacity to manufacture nuclear energy products and 
                supply nuclear energy services.
            (2) Establishment.--
                    (A) There shall be established an interagency 
                working group that, in consultation with representative 
                industry organizations and manufacturers of nuclear 
                energy products, shall make recommendations to 
                coordinate the actions and programs of the Federal 
                Government in order to promote increasing domestic 
                manufacturing capacity and export of domestic nuclear 
                energy products and services.
                    (B) The Interagency Working Group shall be composed 
                of--
                            (i) the Secretary of Energy, or the 
                        Secretary's designee, who shall chair the 
                        interagency working group and shall provide 
                        staff for carrying out the functions of the 
                        interagency working group;
                            (ii) representatives of--
                                    (I) the Department of Energy;
                                    (II) the Department of Commerce;
                                    (III) the Department of Defense;
                                    (IV) the Department of the 
                                Treasury;
                                    (V) the Department of State;
                                    (VI) the Environmental Protection 
                                Agency;
                                    (VII) the United States Agency for 
                                International Development;
                                    (VIII) the Export-Import Bank of 
                                the United States;
                                    (IX) the Trade and Development 
                                Agency;
                                    (X) the Small Business 
                                Administration;
                                    (XI) the Office of the United 
                                States Trade Representative; and
                                    (XII) other Federal agencies, as 
                                determined by the President.
                    (C) The heads of appropriate agencies shall detail 
                such personnel and furnish such services to the 
                interagency group, with or without reimbursement, as 
                may be necessary to carry out the group's functions.
            (3) Duties of the interagency working group.--
                    (A) Not later than 6 months after the date of 
                enactment of this Act, the interagency working group 
                established under paragraph (2)(A) shall identify the 
                actions necessary to promote the safe development and 
                application in foreign countries of nuclear energy 
                products and services in order to--
                            (i) increase electricity generation from 
                        nuclear energy sources through development of 
                        new generation facilities;
                            (ii) improve the efficiency, safety, and 
                        reliability of existing nuclear generating 
                        facilities through modifications; and
                            (iii) enhance the safe treatment, handling, 
                        storage, and disposal of used nuclear fuel.
                    (B) Not later than 6 months after the date of 
                enactment of this Act, the interagency working group 
                shall identify mechanisms (including tax stimulus for 
                investment, loans and loan guarantees, and grants) 
                necessary for United States companies to increase their 
                capacity to produce or provide nuclear energy products 
                and services, and to increase their exports of nuclear 
                energy products and services. The interagency working 
                group shall identify administrative or legislative 
                initiatives necessary to--
                            (i) encourage United States companies to 
                        increase their manufacturing capacity for 
                        nuclear energy products;
                            (ii) provide technical and financial 
                        assistance and support to small and mid-sized 
                        businesses to establish quality assurance 
                        programs in accordance with domestic and 
                        international nuclear quality assurance code 
                        requirements;
                            (iii) encourage, through financial 
                        incentives, private sector capital investment 
                        to expand manufacturing capacity; and
                            (iv) provide technical assistance and 
                        financial incentives to small and mid-sized 
                        businesses to develop the workforce necessary 
                        to increase manufacturing capacity and meet 
                        domestic and international nuclear quality 
                        assurance code requirements.
                    (C) Not later than 9 months after the date of 
                enactment of this Act, the interagency working group 
                shall provide a report to Congress on its findings 
                under subparagraphs (A) and (B), including 
                recommendations for new legislative authority where 
                necessary.
            (4) Trade assistance.--The interagency working group shall 
        encourage the member agencies of the interagency working group 
        to--
                    (A) provide technical training and education for 
                international development personnel and local users in 
                their own country;
                    (B) provide financial and technical assistance to 
                nonprofit institutions that support the marketing and 
                export efforts of domestic companies that provide 
                nuclear energy products and services;
                    (C) develop nuclear energy projects in foreign 
                countries;
                    (D) provide technical assistance and training 
                materials to loan officers of the World Bank, 
                international lending institutions, commercial and 
                energy attaches at embassies of the United States and 
                other appropriate personnel in order to provide 
                information about nuclear energy products and services 
                to foreign governments or other potential project 
                sponsors;
                    (E) support, through financial incentives, private 
                sector efforts to commercialize and export nuclear 
                energy products and services in accordance with the 
                subsidy codes of the World Trade Organization; and
                    (F) augment budgets for trade and development 
                programs in order to support pre-feasibility or 
                feasibility studies for projects that utilize nuclear 
                energy products and services.
            (5) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary of Energy for purposes of 
        carrying out this subtitle $20,000,000 for fiscal years 2008 
        and 2009.
    (b) Credit for Qualifying Nuclear Power Manufacturing.--Subpart E 
of part IV of subchapter A of chapter 1 of the Internal Revenue Code is 
amended by inserting after section 48B the following new section:

``SEC. 48C. QUALIFYING NUCLEAR POWER MANUFACTURING CREDIT.

    ``(a) In General.--For purposes of section 46, the qualifying 
nuclear power manufacturing credit for any taxable year is an amount 
equal to 20 percent of the qualified investment for such taxable year.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of 
        eligible property placed in service by the taxpayer during such 
        taxable year--
                    ``(A) which is either part of a qualifying nuclear 
                power manufacturing project or is qualifying nuclear 
                power manufacturing equipment,
                    ``(B)(i) the construction, reconstruction, or 
                erection of which is completed by the taxpayer, or
                    ``(ii) which is acquired by the taxpayer if the 
                original use of such property commences with the 
                taxpayer,
                    ``(C) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable, and
                    ``(D) which is placed in service on or before 
                December 31, 2015.
            ``(2) Special rule for certain subsidized property.--Rules 
        similar to section 48(a)(4) shall apply for purposes of this 
        section.
            ``(3) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualifying nuclear power manufacturing project.--The 
        term `qualifying nuclear power manufacturing project' means any 
        project which is designed primarily to enable the taxpayer to 
        produce or test equipment necessary for the construction or 
        operation of a nuclear power plant.
            ``(2) Qualifying nuclear power manufacturing equipment.--
        The term `qualifying nuclear power manufacturing equipment' 
        means machine tools and other similar equipment, including 
        computers and other peripheral equipment, acquired or 
        constructed primarily to enable the taxpayer to produce or test 
        equipment necessary for the construction or operation of a 
        nuclear power plant.
            ``(3) Project.--The term `project' includes any building 
        constructed to house qualifying nuclear power manufacturing 
        equipment.''.
    (c) Conforming Amendments.--
            (1) Additional investment credit.--Section 46 of such Code 
        is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (3);
                    (B) by striking the period at the end of paragraph 
                (4) and inserting ``, and''; and
                    (C) by inserting after paragraph (4) the following 
                new paragraph:
            ``(5) the qualifying nuclear power manufacturing credit.''.
            (2) Application of section 49.--Subparagraph (C) of section 
        49(a)(1) of such Code is amended by--
                    (A) by striking ``and'' at the end of clause (iii);
                    (B) by striking the period at the end of clause 
                (iv) and inserting ``, and''; and
                    (C) by inserting after clause (iv) the following 
                new clause:
                            ``(v) the basis of any property which is 
                        part of a qualifying nuclear power equipment 
                        manufacturing project under section 48C.''.
            (3) Table of sections.--The table of sections preceding 
        section 46 of such Code is amended by inserting after the item 
        for section 48B the following new line:

``Sec. 48C. Qualifying nuclear power manufacturing credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property (1) the construction, reconstruction, or erection of 
which of began after the date of enactment, or (2) which was acquired 
by the taxpayer on or after the date of enactment and not pursuant to a 
binding contract which was in effect on the day prior to the date of 
enactment.

SEC. 184. NUCLEAR ENERGY WORKFORCE.

    Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is 
amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) Workforce Training.--
            ``(1) In general.--The Secretary of Labor, in cooperation 
        with the Secretary of Energy, shall promulgate regulations to 
        implement a program to provide workforce training to meet the 
        high demand for workers skilled in the nuclear utility and 
        nuclear energy products and services industries.
            ``(2) Consultation.--In carrying out this subsection, the 
        Secretary of Labor shall consult with representatives of the 
        nuclear utility and nuclear energy products and services 
        industries, and organized labor, concerning skills that are 
        needed in those industries.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of Labor, 
        working in coordination with the Secretaries of Education and 
        Energy $20,000,000 for each of fiscal years 2008 through 2012 
        for use in implementing a program to provide workforce training 
        to meet the high demand for workers skilled in the nuclear 
        utility and nuclear energy products and services industries.''.

SEC. 185. NATIONAL NUCLEAR ENERGY COUNCIL.

    (a) In General.--
            (1) The Secretary of Energy shall establish a National 
        Nuclear Energy Council (hereinafter the ``Council'').
            (2) The National Nuclear Energy Council shall be subject to 
        the requirements of the Federal Advisory Committee Act (5 
        U.S.C. Appendix 2).
    (b) Purpose.--The National Nuclear Energy Council shall--
            (1) serve in an advisory capacity to the Secretary of 
        Energy regarding nuclear energy on matters submitted to the 
        Council by the Secretary of Energy; and
            (2) advise, inform, and make recommendations to the 
        Secretary of Energy, and represent the views of the nuclear 
        energy industry with respect to any matter relating to nuclear 
        energy.
    (c) Membership and Organization.--
            (1) The members of the Council shall be appointed by the 
        Secretary of Energy.
            (2) The Council may establish such study and administrative 
        committees as it may deem appropriate. Study committees shall 
        only assist the Council in preparing its advice, information, 
        or recommendations to the Secretary of Energy. Administrative 
        committees shall be formed solely for the purpose of assisting 
        the Council or its Chairman in the management of the internal 
        affairs of the Council.
            (3) The officers of the Council shall consist of a 
        Chairman, a Vice Chairman, and such other officers as may be 
        approved by the Council. The Chairman and Vice Chairman must be 
        members of the Council and shall receive no compensation for 
        service as officers of the Council.
            (4) The Secretary of Energy shall be Cochairman of the 
        Council. If the Secretary of Energy designates a full-time, 
        salaried official of the Department of Energy as his alternate, 
        such alternate may exercise any duties of the Secretary of 
        Energy and may perform any function on the Council otherwise 
        reserved for the Secretary of Energy.
            (5) The Chairman and the Vice Chairman shall be elected by 
        the Council at its organizational meeting to serve until their 
        successors are elected at the next organizational meeting of 
        the Council.
    (d) Meetings.--
            (1) Regular meetings of the Council shall be held at least 
        twice each year at times determined by the Chairman and 
        approved by the Government Cochairman.
            (2) No meeting of the Council shall be held unless the 
        Government Cochairman approves the agenda thereof, approves the 
        calling thereof, and is present thereat.
            (3) The time and place of all Council meetings shall be 
        given general publicity and such meetings shall be open to the 
        public.
    (e) Studies by the Council.--
            (1) The Council may establish study committees to prepare 
        reports for the consideration of the Council pursuant to 
        requests from the Secretary of Energy for advice, information, 
        and recommendations.
            (2) The Secretary of Energy or a full-time employee of the 
        Department of Energy designated by the Secretary shall be the 
        Cochairman of each study committee.
            (3) The members of study committees shall be selected from 
        the Council membership on the basis of their training, 
        experience, and general qualifications to deal with the matters 
        assigned.

SEC. 186. NUCLEAR WASTE MANAGEMENT.

    (a) High Level Waste Authority.--
            (1) Establishment.--Not later than the earlier of--
                    (A) 90 days after the submittal of a license 
                application for a repository at Yucca Mountain; or
                    (B) 1 year after the date of enactment of this Act,
        the President shall establish a High Level Waste Authority (in 
        this section referred to as the ``Authority'').
            (2) Duties.--The Authority--
                    (A) shall assume the responsibilities of the 
                Secretary of Energy with respect to contracts entered 
                into under section 302(a) of the Nuclear Waste Policy 
                Act of 1982 (42 U.S.C. 10222(a));
                    (B) shall consider, as appropriate, all reasonable 
                used fuel options in addition to direct disposal, 
                including recycling, interim storage, and alternate 
                geologic repository sites outside the State of Nevada;
                    (C) may enter into contracts with civilian nuclear 
                power reactor owners and operators for used fuel 
                management, including recycling, fuel fabrication, and 
                sale or disposition of materials derived from 
                recycling; and
                    (D) may negotiate with willing host communities or 
                States for supporting facilities and activities.
            (3) Membership.--The Authority shall consist of 7 members, 
        to be appointed by the President, with the advice and consent 
        of the Senate, from among individuals who--
                    (A) are United States citizens;
                    (B) have experience in nuclear industry corporate 
                management; and
                    (C) have large corporation management expertise.
            (4) Terms.--
                    (A) In general.--Except as provided in subparagraph 
                (B), members of the Authority shall serve for terms of 
                5 years, and may serve for not more than 2 terms.
                    (B) Initial terms.--Of the individuals appointed 
                initially to the Authority--
                            (i) 2 shall be appointed for an initial 
                        term of 5 years;
                            (ii) 2 shall be appointed for an initial 
                        term of 4 years;
                            (iii) 2 shall be appointed for an initial 
                        term of 3 years; and
                            (iv) 1 shall be appointed for an initial 
                        term of 2 years.
                    (C) Vacancies.--The President, with the advice and 
                consent of the Senate, shall appoint individuals to 
                fill vacancies on the Authority, in the same manner as 
                the original appointment was made, to serve for the 
                remainder of the term vacated.
            (5) Travel expenses and per diem.--Members of the Authority 
        shall be reimbursed by the Authority for travel expenses 
        incurred as part of their service on the Authority, including 
        per diem in lieu of subsistence in accordance with subchapter I 
        of chapter 57 of title 5, United States Code, for each day on 
        which they are engaged in the business of the Authority.
            (6) Report to congress.--Not later than 1 year after the 
        Authority is established under paragraph (1), and annually 
        thereafter, the Authority shall transmit to the Congress a 
        report on its activities.
    (b) Recycling Regulations.--Not later than 1 year after the date of 
enactment of this Act, the Nuclear Regulatory Commission, in 
collaboration with the Secretary of Energy, shall issue regulations for 
licensing facilities for the recovery and use of plutonium from used 
fuel recycling that provide appropriate protections for the common 
defense and security.
    (c) Funding.--The Authority's activities shall be funded through--
            (1) the Nuclear Waste Fund established under section 302(c) 
        of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c));
            (2) appropriations authorized under subsection (e); and
            (3) any contributions provided by State or local 
        governments or from the private sector.
    (d) Research and Development.--Nothing in this section shall be 
construed to reduce the responsibility of the Secretary of Energy to 
conduct research and development on advanced nuclear fuel cycles and 
separation technologies.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
such sums as may be necessary.

             TITLE II--INCREASE OUR UTILIZATION EFFICIENCY

                      Subtitle A--Coal to Liquids

SEC. 201. LOCATION OF COAL-TO-LIQUID MANUFACTURING FACILITIES.

    The Secretary of Energy, in coordination with the head of any 
affected agency, shall promulgate such regulations as the Secretary 
determines to be necessary to support the development on Federal land 
(including land of the Department of Energy, military bases, and 
military installations closed or realigned under the defense base 
closure and realignment) of coal-to-liquid manufacturing facilities and 
associated infrastructure, including the capture, transportation, or 
sequestration of carbon dioxide.

SEC. 202. AUTHORIZATION TO CONDUCT RESEARCH, DEVELOPMENT, TESTING, AND 
              EVALUATION OF ASSURED DOMESTIC FUELS.

    Of the amount authorized to be appropriated for the Air Force for 
research, development, test, and evaluation, $10,000,000 may be made 
available for the Air Force Research Laboratory to continue support 
efforts to test, qualify, and procure synthetic fuels developed from 
coal for aviation jet use.

SEC. 203. COAL-TO-LIQUID LONG-TERM FUEL PROCUREMENT AND DEPARTMENT OF 
              DEFENSE DEVELOPMENT.

    Section 2922a of title 10, United States Code is amended--
            (1) in subsection (b)--
                    (A) by inserting ``(1)'' before ``The Secretary''; 
                and
                    (B) by adding at the end the following:
    ``(2)(A) The Secretary of Defense may enter into contracts or other 
agreements with private companies or other entities to develop and 
operate coal-to-liquid manufacturing facilities on or near military 
installations.
    ``(B) In entering into contracts and other agreements under 
subparagraph (A), the Secretary shall consider land availability, 
testing opportunities, and proximity to raw materials.''; and
            (2) in subsection (d)--
                    (A) by striking ``Subject to applicable provisions 
                of law, any'' and inserting ``Any'';
                    (B) by inserting after ``covered fuel'' the 
                following: ``or coal-to-liquid fuel''; and
                    (C) by striking ``1 or more years'' and inserting 
                ``up to 25 years''.

                   Subtitle B--Energy Tax Provisions

SEC. 211. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This subtitle may be cited as the ``Renewable 
Energy and Energy Conservation Tax Act of 2008''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this subtitle an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of the Internal Revenue Code of 1986.

                     PART 1--PRODUCTION INCENTIVES

SEC. 221. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY CREDIT.

    (a) Extension of Credit.--Each of the following provisions of 
section 45(d) (relating to qualified facilities) is amended by striking 
``January 1, 2009'' and inserting ``January 1, 2012'':
            (1) Paragraph (1).
            (2) Clauses (i) and (ii) of paragraph (2)(A).
            (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
            (4) Paragraph (4).
            (5) Paragraph (5).
            (6) Paragraph (6).
            (7) Paragraph (7).
            (8) Subparagraphs (A) and (B) of paragraph (9).
    (b) Modification of Credit Phaseout.--
            (1) Repeal of phaseout.--Subsection (b) of section 45 is 
        amended--
                    (A) by striking paragraph (1), and
                    (B) by striking ``the 8 cent amount in paragraph 
                (1),'' in paragraph (2) thereof.
            (2) Limitation based on investment in facility.--Subsection 
        (b) of section 45 is amended by inserting before paragraph (2) 
        the following new paragraph:
            ``(1) Limitation based on investment in facility.--
                    ``(A) In general.--In the case of any qualified 
                facility originally placed in service after December 
                31, 2009, the amount of the credit determined under 
                subsection (a) for any taxable year with respect to 
                electricity produced at such facility shall not exceed 
                the product of--
                            ``(i) the applicable percentage with 
                        respect to such facility, multiplied by
                            ``(ii) the eligible basis of such facility.
                    ``(B) Carryforward of unused limitation and excess 
                credit.--
                            ``(i) Unused limitation.--If the limitation 
                        imposed under subparagraph (A) with respect to 
                        any facility for any taxable year exceeds the 
                        prelimitation credit for such facility for such 
                        taxable year, the limitation imposed under 
                        subparagraph (A) with respect to such facility 
                        for the succeeding taxable year shall be 
                        increased by the amount of such excess.
                            ``(ii) Excess credit.--If the prelimitation 
                        credit with respect to any facility for any 
                        taxable year exceeds the limitation imposed 
                        under subparagraph (A) with respect to such 
                        facility for such taxable year, the credit 
                        determined under subsection (a) with respect to 
                        such facility for the succeeding taxable year 
                        (determined before the application of 
                        subparagraph (A) for such succeeding taxable 
                        year) shall be increased by the amount of such 
                        excess. With respect to any facility, no amount 
                        may be carried forward under this clause to any 
                        taxable year beginning after the 10-year period 
                        described in subsection (a)(2)(A)(ii) with 
                        respect to such facility.
                            ``(iii) Prelimitation credit.--The term 
                        `prelimitation credit' with respect to any 
                        facility for a taxable year means the credit 
                        determined under subsection (a) with respect to 
                        such facility for such taxable year, determined 
                        without regard to subparagraph (A) and after 
                        taking into account any increase for such 
                        taxable year under clause (ii).
                    ``(C) Applicable percentage.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `applicable 
                        percentage' means, with respect to any 
                        facility, the appropriate percentage prescribed 
                        by the Secretary for the month in which such 
                        facility is originally placed in service.
                            ``(ii) Method of prescribing applicable 
                        percentages.--The applicable percentages 
                        prescribed by the Secretary for any month under 
                        clause (i) shall be percentages which yield 
                        over a 10-year period amounts of limitation 
                        under subparagraph (A) which have a present 
                        value equal to 35 percent of the eligible basis 
                        of the facility.
                            ``(iii) Method of discounting.--The present 
                        value under clause (ii) shall be determined--
                                    ``(I) as of the last day of the 1st 
                                year of the 10-year period referred to 
                                in clause (ii),
                                    ``(II) by using a discount rate 
                                equal to the greater of 110 percent of 
                                the Federal long-term rate as in effect 
                                under section 1274(d) for the month 
                                preceding the month for which the 
                                applicable percentage is being 
                                prescribed, or 4.5 percent, and
                                    ``(III) by taking into account the 
                                limitation under subparagraph (A) for 
                                any year on the last day of such year.
                    ``(D) Eligible basis.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `eligible 
                        basis' means, with respect to any facility, the 
                        sum of--
                                    ``(I) the basis of such facility 
                                determined as of the time that such 
                                facility is originally placed in 
                                service, and
                                    ``(II) the portion of the basis of 
                                any shared qualified property which is 
                                properly allocable to such facility 
                                under clause (ii).
                            ``(ii) Rules for allocation.--For purposes 
                        of subclause (II) of clause (i), the basis of 
                        shared qualified property shall be allocated 
                        among all qualified facilities which are 
                        projected to be placed in service and which 
                        require utilization of such property in 
                        proportion to projected generation from such 
                        facilities.
                            ``(iii) Shared qualified property.--For 
                        purposes of this paragraph, the term `shared 
                        qualified property' means, with respect to any 
                        facility, any property described in section 
                        168(e)(3)(B)(vi)--
                                    ``(I) which a qualified facility 
                                will require for utilization of such 
                                facility, and
                                    ``(II) which is not a qualified 
                                facility.
                            ``(iv) Special rule relating to geothermal 
                        facilities.--In the case of any qualified 
                        facility using geothermal energy to produce 
                        electricity, the basis of such facility for 
                        purposes of this paragraph shall be determined 
                        as though intangible drilling and development 
                        costs described in section 263(c) were 
                        capitalized rather than expensed.
                    ``(E) Special rule for first and last year of 
                credit period.--In the case of any taxable year any 
                portion of which is not within the 10-year period 
                described in subsection (a)(2)(A)(ii) with respect to 
                any facility, the amount of the limitation under 
                subparagraph (A) with respect to such facility shall be 
                reduced by an amount which bears the same ratio to the 
                amount of such limitation (determined without regard to 
                this subparagraph) as such portion of the taxable year 
                which is not within such period bears to the entire 
                taxable year.
                    ``(F) Election to treat all facilities placed in 
                service in a year as 1 facility.--At the election of 
                the taxpayer, all qualified facilities which are part 
                of the same project and which are placed in service 
                during the same calendar year shall be treated for 
                purposes of this section as 1 facility which is placed 
                in service at the mid-point of such year or the first 
                day of the following calendar year.''.
    (c) Trash Facility Clarification.--Paragraph (7) of section 45(d) 
is amended--
            (1) by striking ``facility which burns'' and inserting 
        ``facility (other than a facility described in paragraph (6)) 
        which uses'', and
            (2) by striking ``combustion''.
    (d) Expansion of Biomass Facilities.--
            (1) Open-loop biomass facilities.--Paragraph (3) of section 
        45(d) is amended by redesignating subparagraph (B) as 
        subparagraph (C) and by inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) Expansion of facility.--Such term shall 
                include a new unit placed in service after the date of 
                the enactment of this subparagraph in connection with a 
                facility described in subparagraph (A), but only to the 
                extent of the increased amount of electricity produced 
                at the facility by reason of such new unit.''.
            (2) Closed-loop biomass facilities.--Paragraph (2) of 
        section 45(d) is amended by redesignating subparagraph (B) as 
        subparagraph (C) and inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) Expansion of facility.--Such term shall 
                include a new unit placed in service after the date of 
                the enactment of this subparagraph in connection with a 
                facility described in subparagraph (A)(i), but only to 
                the extent of the increased amount of electricity 
                produced at the facility by reason of such new unit.''.
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        property originally placed in service after December 31, 2008.
            (2) Repeal of credit phaseout.--The amendments made by 
        subsection (b)(1) shall apply to taxable years ending after 
        December 31, 2008.
            (3) Limitation based on investment in facility.--The 
        amendment made by subsection (b)(2) shall apply to property 
        originally placed in service after December 31, 2009.
            (4) Trash facility clarification.--The amendments made by 
        subsection (c) shall apply to electricity produced and sold 
        after the date of the enactment of this Act.
            (5) Expansion of biomass facilities.--The amendments made 
        by subsection (d) shall apply to property placed in service 
        after the date of the enactment of this Act.

SEC. 222. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE 
              RENEWABLES.

    (a) In General.--Paragraph (1) of section 45(c) (relating to 
resources) is amended by striking ``and'' at the end of subparagraph 
(G), by striking the period at the end of subparagraph (H) and 
inserting ``, and'', and by adding at the end the following new 
subparagraph:
                    ``(I) marine and hydrokinetic renewable energy.''.
    (b) Marine Renewables.--Subsection (c) of section 45 is amended by 
adding at the end the following new paragraph:
            ``(10) Marine and hydrokinetic renewable energy.--
                    ``(A) In general.--The term `marine and 
                hydrokinetic renewable energy' means energy derived 
                from--
                            ``(i) waves, tides, and currents in oceans, 
                        estuaries, and tidal areas,
                            ``(ii) free flowing water in rivers, lakes, 
                        and streams,
                            ``(iii) free flowing water in an irrigation 
                        system, canal, or other man-made channel, 
                        including projects that utilize nonmechanical 
                        structures to accelerate the flow of water for 
                        electric power production purposes, or
                            ``(iv) differentials in ocean temperature 
                        (ocean thermal energy conversion).
                    ``(B) Exceptions.--Such term shall not include any 
                energy which is derived from any source which utilizes 
                a dam, diversionary structure (except as provided in 
                subparagraph (A)(iii)), or impoundment for electric 
                power production purposes.''.
    (c) Definition of Facility.--Subsection (d) of section 45 is 
amended by adding at the end the following new paragraph:
            ``(11) Marine and hydrokinetic renewable energy 
        facilities.--In the case of a facility producing electricity 
        from marine and hydrokinetic renewable energy, the term 
        `qualified facility' means any facility owned by the taxpayer--
                    ``(A) which has a nameplate capacity rating of at 
                least 150 kilowatts, and
                    ``(B) which is originally placed in service on or 
                after the date of the enactment of this paragraph and 
                before January 1, 2012.''.
    (d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is amended 
by striking ``or (9)'' and inserting ``(9), or (11)''.
    (e) Coordination With Small Irrigation Power.--Paragraph (5) of 
section 45(d), as amended by section 221(a), is amended by striking 
``January 1, 2012'' and inserting ``the date of the enactment of 
paragraph (11)''.
    (f) Effective Date.--The amendments made by this section shall 
apply to electricity produced and sold after the date of the enactment 
of this Act, in taxable years ending after such date.

SEC. 223. EXTENSION OF ELECTRICITY PRODUCTION TAX CREDIT TO ELECTRICITY 
              PRODUCED FROM THE PRODUCTION OF SUBSTITUTE NATURAL GAS 
              FROM REFINED COAL OR PETCOKE.

    (a) Refined Coal.--Clauses (i) and (ii) of section 45(c)(7)(A) of 
the Internal Revenue Code of 1986 (defining refined coal) are amended 
to read as follows:
                            ``(i) is a liquid, gaseous or solid fuel 
                        produced from coal (including lignite), high 
                        carbon fly ash or petroleum coke, in each case 
                        including such fuel used as a feedstock,
                            ``(ii) is sold by the taxpayer with the 
                        reasonable expectation that it will be used for 
                        the purpose of producing steam, heat, or 
                        electricity,''.
    (b) Special Rules Relating to Refined Coal Production Facilities.--
Subparagraph (A) of section 45(e)(8) of such Code (determination of 
credit amount) is amended to read as follows:
                    ``(A) Determination of credit amount.--In the case 
                of a producer of refined coal, the credit determined 
                under this section (without regard to this paragraph) 
                for any taxable year--
                            ``(i) shall be--
                                    ``(I) in the case of the production 
                                of electricity, be 2.0 cents multiplied 
                                by the kilowatt hours of electricity 
                                produced, and
                                    ``(II) in any other case, be $4.375 
                                per ton of qualified refined coal 
                                produced (or, in the case of refined 
                                coal that is a liquid or gaseous fuel, 
                                40 cents per million BTU of refined 
                                coal), and
                            ``(ii) for electricity or refined coal (as 
                        the case may be)--
                                    ``(I) produced by the taxpayer at a 
                                refined coal production facility during 
                                the 10-year period beginning on the 
                                date the facility was originally placed 
                                in service, and
                                    ``(II) sold by the taxpayer to an 
                                unrelated person during such 10-year 
                                period and such taxable year.''.
    (c) Inflation Adjustment.--Section 45(b)(2) of such Code (related 
to credit and phaseout adjustment based on inflation) is amended by--
            (1) inserting ``and the 40 cents per million BTU amount'' 
        after ``$4.375 amount'', and
            (2) striking ``and'' after ``subsection (e)(8)(A),'' and 
        inserting ``the $4.375 amount''.
    (d) Effective Date.--The amendments made by this section shall 
apply to refined coal produced and sold after December 31, 2010.

SEC. 224. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

    (a) Extension of Credit.--
            (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
        (3)(A)(ii) of section 48(a) (relating to energy credit) are 
        each amended by striking ``January 1, 2009'' and inserting 
        ``January 1, 2017''.
            (2) Fuel cell property.--Subparagraph (E) of section 
        48(c)(1) (relating to qualified fuel cell property) is amended 
        by striking ``December 31, 2008'' and inserting ``December 31, 
        2016''.
    (b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) (relating to specified credits) is 
amended by striking ``and'' at the end of clause (iii), by striking the 
period at the end of clause (iv) and inserting ``, and'', and by adding 
at the end the following new clause:
                            ``(v) the credit determined under section 
                        46 to the extent that such credit is 
                        attributable to the energy credit determined 
                        under section 48.''.
    (c) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking ``$500'' 
and inserting ``$1,500''.
    (d) Public Electric Utility Property Taken Into Account.--
            (1) In general.--Paragraph (3) of section 48(a) is amended 
        by striking the second sentence thereof.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 48(c) is amended by 
                striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
                    (B) Paragraph (2) of section 48(c) is amended by 
                striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Allowance against alternative minimum tax.--The 
        amendments made by subsection (b) shall apply to credits 
        determined under section 46 of the Internal Revenue Code of 
        1986 in taxable years beginning after the date of the enactment 
        of this Act and to carrybacks of such credits.
            (3) Increase in limitation for fuel cell property.--The 
        amendment made by subsection (c) shall apply to periods after 
        the date of the enactment of this Act, in taxable years ending 
        after such date, under rules similar to the rules of section 
        48(m) of the Internal Revenue Code of 1986 (as in effect on the 
        day before the date of the enactment of the Revenue 
        Reconciliation Act of 1990).
            (4)  Public electric utility property.--The amendments made 
        by subsection (d) shall apply to periods after February 13, 
        2008, in taxable years ending after such date, under rules 
        similar to the rules of section 48(m) of the Internal Revenue 
        Code of 1986 (as in effect on the day before the date of the 
        enactment of the Revenue Reconciliation Act of 1990).

SEC. 225. NEW CLEAN RENEWABLE ENERGY BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 (relating to 
credits against tax) is amended by adding at the end the following new 
subpart:

                ``Subpart I--Qualified Tax Credit Bonds

``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.

``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.

    ``(a) Allowance of Credit.--If a taxpayer holds a qualified tax 
credit bond on one or more credit allowance dates of the bond during 
any taxable year, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount equal to the sum 
of the credits determined under subsection (b) with respect to such 
dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified tax credit bond is 25 percent of the annual 
        credit determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified tax credit bond is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate is the rate which the Secretary 
        estimates will permit the issuance of qualified tax credit 
        bonds with a specified maturity or redemption date without 
        discount and without interest cost to the qualified issuer. The 
        applicable credit rate with respect to any qualified tax credit 
        bond shall be determined as of the first day on which there is 
        a binding, written contract for the sale or exchange of the 
        bond.
            ``(4) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) Qualified Tax Credit Bond.--For purposes of this section--
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means a new clean renewable energy bond which is 
        part of an issue that meets the requirements of paragraphs (2), 
        (3), (4), (5), and (6).
            ``(2) Special rules relating to expenditures.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if, as of 
                the date of issuance, the issuer reasonably expects--
                            ``(i) 100 percent or more of the available 
                        project proceeds to be spent for 1 or more 
                        qualified purposes within the 3-year period 
                        beginning on such date of issuance, and
                            ``(ii) a binding commitment with a third 
                        party to spend at least 10 percent of such 
                        available project proceeds will be incurred 
                        within the 6-month period beginning on such 
                        date of issuance.
                    ``(B) Failure to spend required amount of bond 
                proceeds within 3 years.--
                            ``(i) In general.--To the extent that less 
                        than 100 percent of the available project 
                        proceeds of the issue are expended by the close 
                        of the expenditure period for 1 or more 
                        qualified purposes, the issuer shall redeem all 
                        of the nonqualified bonds within 90 days after 
                        the end of such period. For purposes of this 
                        paragraph, the amount of the nonqualified bonds 
                        required to be redeemed shall be determined in 
                        the same manner as under section 142.
                            ``(ii) Expenditure period.--For purposes of 
                        this subpart, the term `expenditure period' 
                        means, with respect to any issue, the 3-year 
                        period beginning on the date of issuance. Such 
                        term shall include any extension of such period 
                        under clause (iii).
                            ``(iii) Extension of period.--Upon 
                        submission of a request prior to the expiration 
                        of the expenditure period (determined without 
                        regard to any extension under this clause), the 
                        Secretary may extend such period if the issuer 
                        establishes that the failure to expend the 
                        proceeds within the original expenditure period 
                        is due to reasonable cause and the expenditures 
                        for qualified purposes will continue to proceed 
                        with due diligence.
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means a purpose 
                specified in section 54B(a)(1).
                    ``(D) Reimbursement.--For purposes of this 
                subtitle, available project proceeds of an issue shall 
                be treated as spent for a qualified purpose if such 
                proceeds are used to reimburse the issuer for amounts 
                paid for a qualified purpose after the date that the 
                Secretary makes an allocation of bond limitation with 
                respect to such issue, but only if--
                            ``(i) prior to the payment of the original 
                        expenditure, the issuer declared its intent to 
                        reimburse such expenditure with the proceeds of 
                        a qualified tax credit bond,
                            ``(ii) not later than 60 days after payment 
                        of the original expenditure, the issuer adopts 
                        an official intent to reimburse the original 
                        expenditure with such proceeds, and
                            ``(iii) the reimbursement is made not later 
                        than 18 months after the date the original 
                        expenditure is paid.
            ``(3) Reporting.--An issue shall be treated as meeting the 
        requirements of this paragraph if the issuer of qualified tax 
        credit bonds submits reports similar to the reports required 
        under section 149(e).
            ``(4) Special rules relating to arbitrage.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if the 
                issuer satisfies the requirements of section 148 with 
                respect to the proceeds of the issue.
                    ``(B) Special rule for investments during 
                expenditure period.--An issue shall not be treated as 
                failing to meet the requirements of subparagraph (A) by 
                reason of any investment of available project proceeds 
                during the expenditure period.
                    ``(C) Special rule for reserve funds.--An issue 
                shall not be treated as failing to meet the 
                requirements of subparagraph (A) by reason of any fund 
                which is expected to be used to repay such issue if--
                            ``(i) such fund is funded at a rate not 
                        more rapid than equal annual installments,
                            ``(ii) such fund is funded in a manner 
                        reasonably expected to result in an amount not 
                        greater than an amount necessary to repay the 
                        issue, and
                            ``(iii) the yield on such fund is not 
                        greater than the discount rate determined under 
                        paragraph (5)(B) with respect to the issue.
            ``(5) Maturity limitation.--
                    ``(A) In general.--An issue shall not be treated as 
                meeting the requirements of this paragraph if the 
                maturity of any bond which is part of such issue 
                exceeds the maximum term determined by the Secretary 
                under subparagraph (B).
                    ``(B) Maximum term.--During each calendar month, 
                the Secretary shall determine the maximum term 
                permitted under this paragraph for bonds issued during 
                the following calendar month. Such maximum term shall 
                be the term which the Secretary estimates will result 
                in the present value of the obligation to repay the 
                principal on the bond being equal to 50 percent of the 
                face amount of such bond. Such present value shall be 
                determined using as a discount rate the average annual 
                interest rate of tax-exempt obligations having a term 
                of 10 years or more which are issued during the month. 
                If the term as so determined is not a multiple of a 
                whole year, such term shall be rounded to the next 
                highest whole year.
            ``(6) Prohibition on financial conflicts of interest.--An 
        issue shall be treated as meeting the requirements of this 
        paragraph if the issuer certifies that--
                    ``(A) applicable State and local law requirements 
                governing conflicts of interest are satisfied with 
                respect to such issue, and
                    ``(B) if the Secretary prescribes additional 
                conflicts of interest rules governing the appropriate 
                Members of Congress, Federal, State, and local 
                officials, and their spouses, such additional rules are 
                satisfied with respect to such issue.
    ``(e) Other Definitions.--For purposes of this subchapter--
            ``(1) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(2) Bond.--The term `bond' includes any obligation.
            ``(3) State.--The term `State' includes the District of 
        Columbia and any possession of the United States.
            ``(4) Available project proceeds.--The term `available 
        project proceeds' means--
                    ``(A) the excess of--
                            ``(i) the proceeds from the sale of an 
                        issue, over
                            ``(ii) the issuance costs financed by the 
                        issue (to the extent that such costs do not 
                        exceed 2 percent of such proceeds), and
                    ``(B) the proceeds from any investment of the 
                excess described in subparagraph (A).
    ``(f) Credit Treated as Interest.--For purposes of this subtitle, 
the credit determined under subsection (a) shall be treated as interest 
which is includible in gross income.
    ``(g) S Corporations and Partnerships.--In the case of a tax credit 
bond held by an S corporation or partnership, the allocation of the 
credit allowed by this section to the shareholders of such corporation 
or partners of such partnership shall be treated as a distribution.
    ``(h) Bonds Held by Regulated Investment Companies and Real Estate 
Investment Trusts.--If any qualified tax credit bond is held by a 
regulated investment company or a real estate investment trust, the 
credit determined under subsection (a) shall be allowed to shareholders 
of such company or beneficiaries of such trust (and any gross income 
included under subsection (f) with respect to such credit shall be 
treated as distributed to such shareholders or beneficiaries) under 
procedures prescribed by the Secretary.
    ``(i) Credits May Be Stripped.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--There may be a separation (including at 
        issuance) of the ownership of a qualified tax credit bond and 
        the entitlement to the credit under this section with respect 
        to such bond. In case of any such separation, the credit under 
        this section shall be allowed to the person who on the credit 
        allowance date holds the instrument evidencing the entitlement 
        to the credit and not to the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a separation 
        described in paragraph (1), the rules of section 1286 shall 
        apply to the qualified tax credit bond as if it were a stripped 
        bond and to the credit under this section as if it were a 
        stripped coupon.

``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.

    ``(a) New Clean Renewable Energy Bond.--For purposes of this 
subpart, the term `new clean renewable energy bond' means any bond 
issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for capital expenditures incurred by 
        public power providers or cooperative electric companies for 
        one or more qualified renewable energy facilities,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Reduced Credit Amount.--The annual credit determined under 
section 54A(b) with respect to any new clean renewable energy bond 
shall be 70 percent of the amount so determined without regard to this 
subsection.
    ``(c) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--The maximum aggregate face amount of 
        bonds which may be designated under subsection (a) by any 
        issuer shall not exceed the limitation amount allocated under 
        this subsection to such issuer.
            ``(2) National limitation on amount of bonds designated.--
        There is a national new clean renewable energy bond limitation 
        of $2,000,000,000 which shall be allocated by the Secretary as 
        provided in paragraph (3), except that--
                    ``(A) not more than 60 percent thereof may be 
                allocated to qualified projects of public power 
                providers, and
                    ``(B) not more than 40 percent thereof may be 
                allocated to qualified projects of cooperative electric 
                companies.
            ``(3) Method of allocation.--
                    ``(A) Allocation among public power providers.--
                After the Secretary determines the qualified projects 
                of public power providers which are appropriate for 
                receiving an allocation of the national new clean 
                renewable energy bond limitation, the Secretary shall, 
                to the maximum extent practicable, make allocations 
                among such projects in such manner that the amount 
                allocated to each such project bears the same ratio to 
                the cost of such project as the limitation under 
                subparagraph (2)(A) bears to the cost of all such 
                projects.
                    ``(B) Allocation among cooperative electric 
                companies.--The Secretary shall make allocations of the 
                amount of the national new clean renewable energy bond 
                limitation described in paragraph (2)(B) among 
                qualified projects of cooperative electric companies in 
                such manner as the Secretary determines appropriate.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified renewable energy facility.--The term 
        `qualified renewable energy facility' means a qualified 
        facility (as determined under section 45(d) without regard to 
        paragraphs (8) and (10) thereof and to any placed in service 
        date) owned by a public power provider or a cooperative 
        electric company.
            ``(2) Public power provider.--The term `public power 
        provider' means a State utility with a service obligation, as 
        such terms are defined in section 217 of the Federal Power Act 
        (as in effect on the date of the enactment of this paragraph).
            ``(3) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 
        1381(a)(2)(C).
            ``(4) Clean renewable energy bond lender.--The term `clean 
        renewable energy bond lender' means a lender which is a 
        cooperative which is owned by, or has outstanding loans to, 100 
        or more cooperative electric companies and is in existence on 
        February 1, 2002, and shall include any affiliated entity which 
        is controlled by such lender.
            ``(5) Qualified issuer.--The term `qualified issuer' means 
        a public power provider, a cooperative electric company, a 
        clean renewable energy bond lender, or a not-for-profit 
        electric utility which has received a loan or loan guarantee 
        under the Rural Electrification Act.''.
    (b) Reporting.--Subsection (d) of section 6049 (relating to returns 
regarding payments of interest) is amended by adding at the end the 
following new paragraph:
            ``(9) Reporting of credit on qualified tax credit bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54A and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54A(e)(1)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
    (c) Conforming Amendments.--
            (1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended 
        by striking ``subpart C'' and inserting ``subparts C and I''.
            (2) Section 1397E(c)(2) is amended by striking ``subpart 
        H'' and inserting ``subparts H and I''.
            (3) Section 6401(b)(1) is amended by striking ``and H'' and 
        inserting ``H, and I''.
            (4) The heading of subpart H of part IV of subchapter A of 
        chapter 1 is amended by striking ``Certain Bonds'' and 
        inserting ``Clean Renewable Energy Bonds''.
            (5) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by striking the item relating to subpart H 
        and inserting the following new items:

``subpart h. nonrefundable credit to holders of clean renewable energy 
                                 bonds.

              ``subpart i. qualified tax credit bonds.''.

    (d) Effective Dates.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 226. EXTENSION AND MODIFICATION OF SPECIAL RULE TO IMPLEMENT FERC 
              AND STATE ELECTRIC RESTRUCTURING POLICY.

    (a) Extension for Qualified Electric Utilities.--
            (1) In general.--Paragraph (3) of section 451(i) (relating 
        to special rule for sales or dispositions to implement Federal 
        Energy Regulatory Commission or State electric restructuring 
        policy) is amended by inserting ``(before January 1, 2010, in 
        the case of a qualified electric utility)'' after ``January 1, 
        2008''.
            (2) Qualified electric utility.--Subsection (i) of section 
        451 is amended by redesignating paragraphs (6) through (10) as 
        paragraphs (7) through (11), respectively, and by inserting 
        after paragraph (5) the following new paragraph:
            ``(6) Qualified electric utility.--For purposes of this 
        subsection, the term `qualified electric utility' means a 
        person that, as of the date of the qualifying electric 
        transmission transaction, is vertically integrated, in that it 
        is both--
                    ``(A) a transmitting utility (as defined in section 
                3(23) of the Federal Power Act (16 U.S.C. 796(23))) 
                with respect to the transmission facilities to which 
                the election under this subsection applies, and
                    ``(B) an electric utility (as defined in section 
                3(22) of the Federal Power Act (16 U.S.C. 796(22))).''.
    (b) Extension of Period for Transfer of Operational Control 
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is amended by 
striking ``December 31, 2007'' and inserting ``the date which is 4 
years after the close of the taxable year in which the transaction 
occurs''.
    (c) Property Located Outside the United States Not Treated as 
Exempt Utility Property.--Paragraph (5) of section 451(i) is amended by 
adding at the end the following new subparagraph:
                    ``(C) Exception for property located outside the 
                united states.--The term `exempt utility property' 
                shall not include any property which is located outside 
                the United States.''.
    (d) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to transactions after December 31, 2007.
            (2) Transfers of operational control.--The amendment made 
        by subsection (b) shall take effect as if included in section 
        909 of the American Jobs Creation Act of 2004.
            (3) Exception for property located outside the united 
        states.--The amendment made by subsection (c) shall apply to 
        transactions after the date of the enactment of this Act.

SEC. 227. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY 
              EFFICIENT PROPERTY.

    (a) Extension.--Section 25D(g) (relating to termination) is amended 
by striking ``December 31, 2008'' and inserting ``December 31, 2014''.
    (b) Maximum Credit for Solar Electric Property.--
            (1) In general.--Section 25D(b)(1)(A) (relating to maximum 
        credit) is amended by striking ``$2,000'' and inserting 
        ``$4,000''.
            (2) Conforming amendment.--Section 25D(e)(4)(A)(i) is 
        amended by striking ``$6,667'' and inserting ``$13,333''.
    (c) Credit for Residential Wind Property.--
            (1) In general.--Section 25D(a) (relating to allowance of 
        credit) is amended by striking ``and'' at the end of paragraph 
        (2), by striking the period at the end of paragraph (3) and 
        inserting ``, and'', and by adding at the end the following new 
        paragraph:
            ``(4) 30 percent of the qualified small wind energy 
        property expenditures made by the taxpayer during such year.''.
            (2) Limitation.--Section 25D(b)(1) (relating to maximum 
        credit) is amended by striking ``and'' at the end of 
        subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(D) $500 with respect to each half kilowatt of 
                capacity (not to exceed $4,000) of wind turbines for 
                which qualified small wind energy property expenditures 
                are made.''.
            (3) Qualified small wind energy property expenditures.--
                    (A) In general.--Section 25D(d) (relating to 
                definitions) is amended by adding at the end the 
                following new paragraph:
            ``(4) Qualified small wind energy property expenditure.--
        The term `qualified small wind energy property expenditure' 
        means an expenditure for property which uses a wind turbine to 
        generate electricity for use in connection with a dwelling unit 
        located in the United States and used as a residence by the 
        taxpayer.''.
                    (B) No double benefit.--Section 45(d)(1) (relating 
                to wind facility) is amended by adding at the end the 
                following new sentence: ``Such term shall not include 
                any facility with respect to which any qualified small 
                wind energy property expenditure (as defined in 
                subsection (d)(4) of section 25D) is taken into account 
                in determining the credit under such section.''.
            (4) Maximum expenditures in case of joint occupancy.--
        Section 25D(e)(4)(A) (relating to maximum expenditures) is 
        amended by striking ``and'' at the end of clause (ii), by 
        striking the period at the end of clause (iii) and inserting 
        ``, and'', and by adding at the end the following new clause:
                            ``(iv) $1,667 in the case of each half 
                        kilowatt of capacity (not to exceed $13,333) of 
                        wind turbines for which qualified small wind 
                        energy property expenditures are made.''.
    (d) Credit for Geothermal Heat pump Systems.--
            (1) In general.--Section 25D(a) (relating to allowance of 
        credit), as amended by subsection (c), is amended by striking 
        ``and'' at the end of paragraph (3), by striking the period at 
        the end of paragraph (4) and inserting ``, and'', and by adding 
        at the end the following new paragraph:
            ``(5) 30 percent of the qualified geothermal heat pump 
        property expenditures made by the taxpayer during such year.''.
            (2) Limitation.--Section 25D(b)(1) (relating to maximum 
        credit), as amended by subsection (c), is amended by striking 
        ``and'' at the end of subparagraph (C), by striking the period 
        at the end of subparagraph (D) and inserting ``, and'', and by 
        adding at the end the following new subparagraph:
                    ``(E) $2,000 with respect to any qualified 
                geothermal heat pump property expenditures.''.
            (3) Qualified geothermal heat pump property expenditure.--
        Section 25D(d) (relating to definitions), as amended by 
        subsection (c), is amended by adding at the end the following 
        new paragraph:
            ``(5) Qualified geothermal heat pump property 
        expenditure.--
                    ``(A) In general.--The term `qualified geothermal 
                heat pump property expenditure' means an expenditure 
                for qualified geothermal heat pump property installed 
                on or in connection with a dwelling unit located in the 
                United States and used as a residence by the taxpayer.
                    ``(B) Qualified geothermal heat pump property.--The 
                term `qualified geothermal heat pump property' means 
                any equipment which--
                            ``(i) uses the ground or ground water as a 
                        thermal energy source to heat the dwelling unit 
                        referred to in subparagraph (A) or as a thermal 
                        energy sink to cool such dwelling unit, and
                            ``(ii) meets the requirements of the Energy 
                        Star program which are in effect at the time 
                        that the expenditure for such equipment is 
                        made.''.
            (4) Maximum expenditures in case of joint occupancy.--
        Section 25D(e)(4)(A) (relating to maximum expenditures), as 
        amended by subsection (c), is amended by striking ``and'' at 
        the end of clause (iii), by striking the period at the end of 
        clause (iv) and inserting ``, and'', and by adding at the end 
        the following new clause:
                            ``(v) $6,667 in the case of any qualified 
                        geothermal heat pump property expenditures.''.
    (e) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subsection (c) of section 25D is amended 
        to read as follows:
    ``(c) Limitation Based on Amount of Tax; Carryforward of Unused 
Credit.--
            ``(1) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for the taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.
            ``(2) Carryforward of unused credit.--
                    ``(A) Rule for years in which all personal credits 
                allowed against regular and alternative minimum tax.--
                In the case of a taxable year to which section 26(a)(2) 
                applies, if the credit allowable under subsection (a) 
                exceeds the limitation imposed by section 26(a)(2) for 
                such taxable year reduced by the sum of the credits 
                allowable under this subpart (other than this section), 
                such excess shall be carried to the succeeding taxable 
                year and added to the credit allowable under subsection 
                (a) for such succeeding taxable year.
                    ``(B) Rule for other years.--In the case of a 
                taxable year to which section 26(a)(2) does not apply, 
                if the credit allowable under subsection (a) exceeds 
                the limitation imposed by paragraph (1) for such 
                taxable year, such excess shall be carried to the 
                succeeding taxable year and added to the credit 
                allowable under subsection (a) for such succeeding 
                taxable year.''.
            (2) Conforming amendments.--
                    (A) Section 23(b)(4)(B) is amended by inserting 
                ``and section 25D'' after ``this section''.
                    (B) Section 24(b)(3)(B) is amended by striking 
                ``and 25B'' and inserting ``, 25B, and 25D''.
                    (C) Section 25B(g)(2) is amended by striking 
                ``section 23'' and inserting ``sections 23 and 25D''.
                    (D) Section 26(a)(1) is amended by striking ``and 
                25B'' and inserting ``25B, and 25D''.
    (f) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2007.
            (2) Application of egtrra sunset.--The amendments made by 
        subparagraphs (A) and (B) of subsection (e)(2) shall be subject 
        to title IX of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001 in the same manner as the provisions 
        of such Act to which such amendments relate.

             PART 2--TRANSPORTATION CONSERVATION INCENTIVES

                          Subpart A--Vehicles

SEC. 231. CREDIT FOR PLUG-IN HYBRID VEHICLES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to other credits) is amended by adding at the end the 
following new section:

``SEC. 30D. PLUG-IN HYBRID VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of the credit amounts determined under subsection (b) 
with respect to each qualified plug-in hybrid vehicle placed in service 
by the taxpayer during the taxable year.
    ``(b) Per Vehicle Dollar Limitation.--
            ``(1) In general.--The amount determined under this 
        subsection with respect to any qualified plug-in hybrid vehicle 
        is the sum of the amounts determined under paragraphs (2) and 
        (3) with respect to such vehicle.
            ``(2) Base amount.--The amount determined under this 
        paragraph is $4,000.
            ``(3) Battery capacity.--In the case of vehicle which draws 
        propulsion energy from a battery with not less than 5 kilowatt 
        hours of capacity, the amount determined under this paragraph 
        is $200, plus $200 for each kilowatt hour of capacity in excess 
        of 5 kilowatt hours. The amount determined under this paragraph 
        shall not exceed $2,000.
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 23 and 25D) and section 27 for the 
                        taxable year.
    ``(d) Qualified Plug-In Hybrid Vehicle.--For purposes of this 
section--
            ``(1) In general.--The term `qualified plug-in hybrid 
        vehicle' means a motor vehicle (as defined in section 
        30(c)(2))--
                    ``(A) the original use of which commences with the 
                taxpayer,
                    ``(B) which is acquired for use or lease by the 
                taxpayer and not for resale,
                    ``(C) which is made by a manufacturer,
                    ``(D) which has a gross vehicle weight rating of 
                less than 14,000 pounds,
                    ``(E) which has received a certificate of 
                conformity under the Clean Air Act and meets or exceeds 
                the Bin 5 Tier II emission standard established in 
                regulations prescribed by the Administrator of the 
                Environmental Protection Agency under section 202(i) of 
                the Clean Air Act for that make and model year vehicle,
                    ``(F) which is propelled to a significant extent by 
                an electric motor which draws electricity from a 
                battery which--
                            ``(i) has a capacity of not less than 4 
                        kilowatt hours, and
                            ``(ii) is capable of being recharged from 
                        an external source of electricity, and
                    ``(G) which either--
                            ``(i) is also propelled to a significant 
                        extent by other than an electric motor, or
                            ``(ii) has a significant onboard source of 
                        electricity which also recharges the battery 
                        referred to in subparagraph (F).
            ``(2) Exception.--The term `qualified plug-in hybrid 
        vehicle' shall not include any vehicle which is not a passenger 
        automobile or light truck if such vehicle has a gross vehicle 
        weight rating of less than 8,500 pounds.
            ``(3) Other terms.--The terms `passenger automobile', 
        `light truck', and `manufacturer' have the meanings given such 
        terms in regulations prescribed by the Administrator of the 
        Environmental Protection Agency for purposes of the 
        administration of title II of the Clean Air Act (42 U.S.C. 7521 
        et seq.).
            ``(4) Battery capacity.--The term `capacity' means, with 
        respect to any battery, the quantity of electricity which the 
        battery is capable of storing, expressed in kilowatt hours, as 
        measured from a 100 percent state of charge to a 0 percent 
        state of charge.
    ``(e) Limitation on Number of Qualified Plug-In Hybrid Vehicles 
Eligible for Credit.--
            ``(1) In general.--In the case of a qualified plug-in 
        hybrid vehicle sold during the phaseout period, only the 
        applicable percentage of the credit otherwise allowable under 
        subsection (a) shall be allowed.
            ``(2) Phaseout period.--For purposes of this subsection, 
        the phaseout period is the period beginning with the second 
        calendar quarter following the calendar quarter which includes 
        the first date on which the number of qualified plug-in hybrid 
        vehicles manufactured by the manufacturer of the vehicle 
        referred to in paragraph (1) sold for use in the United States 
        after the date of the enactment of this section, is at least 
        60,000.
            ``(3) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage is--
                    ``(A) 50 percent for the first 2 calendar quarters 
                of the phaseout period,
                    ``(B) 25 percent for the 3d and 4th calendar 
                quarters of the phaseout period, and
                    ``(C) 0 percent for each calendar quarter 
                thereafter.
            ``(4) Controlled groups.--Rules similar to the rules of 
        section 30B(f)(4) shall apply for purposes of this subsection.
    ``(f) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (c)).
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(3) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(4) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
            ``(5) Property used by tax-exempt entity; interaction with 
        air quality and motor vehicle safety standards.--Rules similar 
        to the rules of paragraphs (6) and (10) of section 30B(h) shall 
        apply for purposes of this section.''.
    (b) Plug-In Vehicles Not Treated as New Qualified Hybrid 
Vehicles.--Section 30B(d)(3) is amended by adding at the end the 
following new subparagraph:
                    ``(D) Exclusion of plug-in vehicles.--Any vehicle 
                with respect to which a credit is allowable under 
                section 30D (determined without regard to subsection 
                (c) thereof) shall not be taken into account under this 
                section.''.
    (c) Credit Made Part of General Business Credit.--Section 38(b) is 
amended--
            (1) by striking ``and'' each place it appears at the end of 
        any paragraph,
            (2) by striking ``plus'' each place it appears at the end 
        of any paragraph,
            (3) by striking the period at the end of paragraph (31) and 
        inserting ``, plus'', and
            (4) by adding at the end the following new paragraph:
            ``(32) the portion of the plug-in hybrid vehicle credit to 
        which section 30D(c)(1) applies.''.
    (d) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B), as amended by this Act, is 
        amended by striking ``and 25D'' and inserting ``25D, and 30D''.
            (B) Section 25(e)(1)(C)(ii) is amended by inserting 
        ``30D,'' after ``25D,''.
            (C) Section 25B(g)(2), as amended by this Act, is amended 
        by striking ``and 25D'' and inserting ``, 25D, and 30D''.
            (D) Section 26(a)(1), as amended by this Act, is amended by 
        striking ``and 25D'' and inserting ``25D, and 30D''.
            (E) Section 1400C(d)(2) is amended by striking ``and 25D'' 
        and inserting ``25D, and 30D''.
            (2) Section 1016(a) is amended by striking ``and'' at the 
        end of paragraph (35), by striking the period at the end of 
        paragraph (36) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(37) to the extent provided in section 30D(f)(1).''.
            (3) Section 6501(m) is amended by inserting ``30D(f)(4),'' 
        after ``30C(e)(5),''.
            (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 30D. Plug-in hybrid vehicles.''.
    (e) Treatment of Alternative Motor Vehicle Credit as a Personal 
Credit.--
            (1) In general.--Paragraph (2) of section 30B(g) is amended 
        to read as follows:
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) for any taxable year (after application of paragraph (1)) 
        shall be treated as a credit allowable under subpart A for such 
        taxable year.''.
            (2) Conforming amendments.--
                    (A) Subparagraph (A) of section 30C(d)(2) is 
                amended by striking ``sections 27, 30, and 30B'' and 
                inserting ``sections 27 and 30''.
                    (B) Paragraph (3) of section 55(c) is amended by 
                striking ``30B(g)(2),''.
    (f) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years beginning after December 31, 2008.
            (2) Treatment of alternative motor vehicle credit as 
        personal credit.--The amendments made by subsection (e) shall 
        apply to taxable years beginning after December 31, 2007.
    (g) Application of EGTRRA Sunset.--The amendment made by subsection 
(d)(1)(A) shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates.

SEC. 232. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE 
              REFUELING PROPERTY CREDIT.

    (a) Increase in Credit Amount.--Section 30C (relating to 
alternative fuel vehicle refueling property credit) is amended--
            (1) by striking ``30 percent'' in subsection (a) and 
        inserting ``50 percent'', and
            (2) by striking ``$30,000'' in subsection (b)(1) and 
        inserting ``$50,000''.
    (b) Extension of Credit.--Paragraph (2) of section 30C(g) (relating 
to termination) is amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 233. MODIFICATION OF LIMITATION ON AUTOMOBILE DEPRECIATION.

    (a) In General.--Paragraph (5) of section 280F(d) (defining 
passenger automobile) is amended to read as follows:
            ``(5) Passenger automobile.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `passenger automobile' means 
                any 4-wheeled vehicle--
                            ``(i) which is primarily designed or which 
                        can be used to carry passengers over public 
                        streets, roads, or highways (except any vehicle 
                        operated exclusively on a rail or rails), and
                            ``(ii) which is rated at not more than 
                        14,000 pounds gross vehicle weight.
                    ``(B) Exceptions.--The term `passenger automobile' 
                shall not include--
                            ``(i) any exempt-design vehicle, and
                            ``(ii) any exempt-use vehicle.
                    ``(C) Exempt-design vehicle.--The term `exempt-
                design vehicle' means--
                            ``(i) any vehicle which, by reason of its 
                        nature or design, is not likely to be used more 
                        than a de minimis amount for personal purposes, 
                        and
                            ``(ii) any vehicle--
                                    ``(I) which is designed to have a 
                                seating capacity of more than 9 persons 
                                behind the driver's seat,
                                    ``(II) which is equipped with a 
                                cargo area of at least 5 feet in 
                                interior length which is an open area 
                                or is designed for use as an open area 
                                but is enclosed by a cap and is not 
                                readily accessible directly from the 
                                passenger compartment, or
                                    ``(III) has an integral enclosure, 
                                fully enclosing the driver compartment 
                                and load carrying device, does not have 
                                seating rearward of the driver's seat, 
                                and has no body section protruding more 
                                than 30 inches ahead of the leading 
                                edge of the windshield.
                    ``(D) Exempt-use vehicle.--The term `exempt-use 
                vehicle' means--
                            ``(i) any ambulance, hearse, or combination 
                        ambulance-hearse used by the taxpayer directly 
                        in a trade or business,
                            ``(ii) any vehicle used by the taxpayer 
                        directly in the trade or business of 
                        transporting persons or property for 
                        compensation or hire, and
                            ``(iii) any truck or van if substantially 
                        all of the use of such vehicle by the taxpayer 
                        is directly in--
                                    ``(I) a farming business (within 
                                the meaning of section 263A(e)(4)),
                                    ``(II) the transportation of a 
                                substantial amount of equipment, 
                                supplies, or inventory, or
                                    ``(III) the moving or delivery of 
                                property which requires substantial 
                                cargo capacity.
                    ``(E) Recapture.--In the case of any vehicle which 
                is not a passenger automobile by reason of being an 
                exempt-use vehicle, if such vehicle ceases to be an 
                exempt-use vehicle in any taxable year after the 
                taxable year in which such vehicle is placed in 
                service, a rule similar to the rule of subsection (b) 
                shall apply.''.
    (b) Conforming Amendment.--Section 179(b) (relating to limitations) 
is amended by striking paragraph (6).
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

                            Subpart B--Fuels

SEC. 241. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND 
              RENEWABLE DIESEL.

    (a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are 
each amended by striking ``December 31, 2008'' and inserting ``December 
31, 2010''.
    (b) Uniform Treatment of Diesel Produced From Biomass.--Paragraph 
(3) of section 40A(f) is amended--
            (1) by striking ``diesel fuel'' and inserting ``liquid 
        fuel'',
            (2) by striking ``using a thermal depolymerization 
        process'', and
            (3) by striking ``or D396'' in subparagraph (B) and 
        inserting ``or other equivalent standard approved by the 
        Secretary for fuels to be used in diesel-powered highway 
        vehicles''.
    (c) Coproduction of Renewable Diesel With Petroleum Feedstock.--
            (1) In general.--Paragraph (3) of section 40A(f) (defining 
        renewable diesel) is amended by adding at the end the following 
        flush sentence:
        ``Such term does not include any fuel derived from coprocessing 
        biomass with a feedstock which is not biomass. For purposes of 
        this paragraph, the term `biomass' has the meaning given such 
        term by section 45K(c)(3).''.
            (2) Conforming amendment.--Paragraph (3) of section 40A(f) 
        is amended by striking ``(as defined in section 45K(c)(3))''.
    (d) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        fuel produced, and sold or used, after December 31, 2008.
            (2) Coproduction of renewable diesel with petroleum 
        feedstock.--The amendments made by subsection (c) shall apply 
        to fuel produced, and sold or used, after February 13, 2008.

SEC. 242. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE 
              AN INCENTIVE FOR UNITED STATES PRODUCTION.

    (a) Biodiesel Fuels Credit.--Paragraph (5) of section 40A(d), as 
added by subsection (c), is amended to read as follows:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any biodiesel unless--
                    ``(A) such biodiesel is produced in the United 
                States for use as a fuel in the United States, and
                    ``(B) the taxpayer obtains a certification (in such 
                form and manner as prescribed by the Secretary) from 
                the producer of the biodiesel which identifies the 
                product produced and the location of such production.
        For purposes of this paragraph, the term `United States' 
        includes any possession of the United States.''.
    (b) Excise Tax Credit.--Paragraph (2) of section 6426(h), as added 
by subsection (c), is amended to read as follows:
            ``(2) Biodiesel and alternative fuels.--No credit shall be 
        determined under this section with respect to any biodiesel or 
        alternative fuel unless--
                    ``(A) such biodiesel or alternative fuel is 
                produced in the United States for use as a fuel in the 
                United States, and
                    ``(B) the taxpayer obtains a certification (in such 
                form and manner as prescribed by the Secretary) from 
                the producer of such biodiesel or alternative fuel 
                which identifies the product produced and the location 
                of such production.''.
    (c) Provisions Clarifying Treatment of Fuels With No Nexus to the 
United States.--
            (1) Alcohol fuels credit.--Subsection (d) of section 40 is 
        amended by adding at the end the following new paragraph:
            ``(6) Limitation to alcohol with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any alcohol which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
            (2) Biodiesel fuels credit.--Subsection (d) of section 40A 
        is amended by adding at the end the following new paragraph:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any biodiesel which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
            (3) Excise tax credit.--
                    (A) In general.--Section 6426 is amended by adding 
                at the end the following new subsection:
    ``(h) Limitation to Fuels With Connection to the United States.--
            ``(1) Alcohol.--No credit shall be determined under this 
        section with respect to any alcohol which is produced outside 
        the United States for use as a fuel outside the United States.
            ``(2) Biodiesel and alternative fuels.--No credit shall be 
        determined under this section with respect to any biodiesel or 
        alternative fuel which is produced outside the United States 
        for use as a fuel outside the United States.
For purposes of this subsection, the term `United States' includes any 
possession of the United States.''.
                    (B) Conforming amendment.--Subsection (e) of 
                section 6427 is amended by redesignating paragraph (5) 
                as paragraph (6) and by inserting after paragraph (4) 
                the following new paragraph:
            ``(5) Limitation to fuels with connection to the united 
        states.--No amount shall be payable under paragraph (1) or (2) 
        with respect to any mixture or alternative fuel if credit is 
        not allowed with respect to such mixture or alternative fuel by 
        reason of section 6426(h).''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel produced, 
        and sold or used, after December 31, 2008.
            (2) Provisions clarifying treatment of fuels with no nexus 
        to the united states.--
                    (A) In general.--Except as otherwise provided in 
                this paragraph, the amendments made by subsection (c) 
                shall take effect as if included in section 301 of the 
                American Jobs Creation Act of 2004.
                    (B) Alternative fuel credits.--So much of the 
                amendments made by subsection (c) as relate to the 
                alternative fuel credit or the alternative fuel mixture 
                credit shall take effect as if included in section 
                11113 of the Safe, Accountable, Flexible, Efficient 
                Transportation Equity Act: A Legacy for Users.
                    (C) Renewable diesel.--So much of the amendments 
                made by subsection (c) as relate to renewable diesel 
                shall take effect as if included in section 1346 of the 
                Energy Policy Act of 2005.

SEC. 243. CREDIT FOR PRODUCTION OF CELLULOSIC ALCOHOL.

    (a) In General.--Subsection (b) of section 40 is amended by 
redesignating paragraph (5) as paragraph (6) and by inserting after 
paragraph (4) the following new paragraph:
            ``(5) Cellulosic alcohol fuel producer credit.--
                    ``(A) In general.--The cellulosic alcohol fuel 
                producer credit of any cellulosic alcohol fuel producer 
                for any taxable year is 50 cents for each gallon of 
                qualified cellulosic fuel production of such producer.
                    ``(B) Qualified cellulosic fuel production.--For 
                purposes of this paragraph, the term `qualified 
                cellulosic fuel production' means any cellulosic 
                alcohol which is produced by a cellulosic alcohol fuel 
                producer, and which during the taxable year--
                            ``(i) is sold by such producer to another 
                        person--
                                    ``(I) for use by such other person 
                                in the production of a qualified 
                                mixture in such other person's trade or 
                                business (other than casual off-farm 
                                production),
                                    ``(II) for use by such other person 
                                as a fuel in a trade or business, or
                                    ``(III) who sells such alcohol at 
                                retail to another person and places 
                                such alcohol in the fuel tank of such 
                                other person, or
                            ``(ii) is used or sold by such producer for 
                        any purpose described in clause (i).
                    ``(C) Cellulosic alcohol.--For purposes of this 
                paragraph, the term `cellulosic alcohol' means any 
                alcohol which--
                            ``(i) is produced in the United States for 
                        use as a fuel in the United States, and
                            ``(ii) is derived from any lignocellulosic 
                        or hemicellulosic matter that is available on a 
                        renewable or recurring basis.
                For purposes of this subparagraph, the term `United 
                States' includes any possession of the United States.
                    ``(D) Cellulosic alcohol fuel producer.--For 
                purposes of this paragraph, the term `cellulosic 
                alcohol fuel producer' means any person who produces 
                cellulosic alcohol in a trade or business and is 
                registered with the Secretary as a cellulosic alcohol 
                fuel producer.
                    ``(E) Additional distillation excluded.--The 
                qualified cellulosic fuel production of any producer 
                for any taxable year shall not include any alcohol 
                which is purchased by the producer and with respect to 
                which such producer increases the proof of the alcohol 
                by additional distillation.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 40 is amended by striking 
        ``plus'' at the end of paragraph (1), by striking ``plus'' at 
        the end of paragraph (2), by striking the period at the end of 
        paragraph (3) and inserting ``, plus'', and by adding at the 
        end the following new paragraph:
            ``(4) in the case of a cellulosic alcohol fuel producer, 
        the cellulosic alcohol fuel producer credit.''.
            (2) Clause (ii) of section 40(d)(3)(C) is amended by 
        striking ``subsection (b)(4)(B)'' and inserting ``paragraph 
        (4)(B) or (5)(B) of subsection (b)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to alcohol produced after December 31, 2008.

SEC. 244. EXTENSION FOR CREDIT FOR ALTERNATIVE FUELS AND MIXTURES 
              DERIVED FROM COAL (INCLUDING PEAT) THROUGH THE FISCHER-
              TROPSCH PROCESS.

    (a) In General.--Subsections (d)(4) and (e)(3) of section 6426 of 
the Internal Revenue Code of 1986 (relating to termination of credits 
for alternative fuels and mixtures) are each amended by inserting ``and 
September 30, 2020, in the case of any sale or use involving any liquid 
fuel derived from coal (including peat) through the Fischer-Tropsch 
process'' after ``hydrogen''.
    (b) Fuels Not Used for Taxable Purposes.--
            (1) In general.--Paragraph (5) of section 6427(e) of such 
        Code (relating to termination) is amended by striking ``and'' 
        at the end of subparagraph (C), by striking the period at the 
        end of subparagraph (D) and inserting ``, and'', and by 
        inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) any alternative fuel or alternative fuel 
                mixture (as so defined) involving fuel derived from 
                coal (including peat) through the Fischer-Tropsch 
                process sold or used after September 30, 2020.''.
            (2) Conforming amendment.--Section 6427(e)(5)(C) is amended 
        by striking ``subparagraph (D)'' and inserting ``subparagraphs 
        (D) and (E)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any sale or use for any period after September 30, 2009.

                 PART 3--OTHER CONSERVATION PROVISIONS

SEC. 251. QUALIFIED ENERGY CONSERVATION BONDS.

    (a) In General.--Subpart I of part IV of subchapter A of chapter 1, 
as added by section 104, is amended by adding at the end the following 
new section:

``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.

    ``(a) Qualified Energy Conservation Bond.--For purposes of this 
subchapter, the term `qualified energy conservation bond' means any 
bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for one or more qualified conservation 
        purposes,
            ``(2) the bond is issued by a State or local government, 
        and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (d).
    ``(c) National Limitation on Amount of Bonds Designated.--There is 
a national qualified energy conservation bond limitation of 
$3,600,000,000.
    ``(d) Allocations.--
            ``(1) In general.--The limitation applicable under 
        subsection (c) shall be allocated by the Secretary among the 
        States in proportion to the population of the States.
            ``(2) Allocations to largest local governments.--
                    ``(A) In general.--In the case of any State in 
                which there is a large local government, each such 
                local government shall be allocated a portion of such 
                State's allocation which bears the same ratio to the 
                State's allocation (determined without regard to this 
                subparagraph) as the population of such large local 
                government bears to the population of such State.
                    ``(B) Allocation of unused limitation to state.--
                The amount allocated under this subsection to a large 
                local government may be reallocated by such local 
                government to the State in which such local government 
                is located.
                    ``(C) Large local government.--For purposes of this 
                section, the term `large local government' means any 
                municipality or county if such municipality or county 
                has a population of 100,000 or more.
            ``(3) Allocation to issuers; restriction on private 
        activity bonds.--Any allocation under this subsection to a 
        State or large local government shall be allocated by such 
        State or large local government to issuers within the State in 
        a manner that results in not less than 70 percent of the 
        allocation to such State or large local government being used 
        to designate bonds which are not private activity bonds.
    ``(e) Qualified Conservation Purpose.--For purposes of this 
section--
            ``(1) In general.--The term `qualified conservation 
        purpose' means any of the following:
                    ``(A) Capital expenditures incurred for purposes 
                of--
                            ``(i) reducing energy consumption in 
                        publicly-owned buildings by at least 20 
                        percent,
                            ``(ii) implementing green community 
                        programs,
                            ``(iii) rural development involving the 
                        production of electricity from renewable energy 
                        resources, or
                            ``(iv) any qualified facility (as 
                        determined under section 45(d) without regard 
                        to paragraphs (8) and (10) thereof and without 
                        regard to any placed in service date).
                    ``(B) Expenditures with respect to research 
                facilities, and research grants, to support research 
                in--
                            ``(i) development of cellulosic ethanol or 
                        other nonfossil fuels,
                            ``(ii) technologies for the capture and 
                        sequestration of carbon dioxide produced 
                        through the use of fossil fuels,
                            ``(iii) increasing the efficiency of 
                        existing technologies for producing nonfossil 
                        fuels,
                            ``(iv) automobile battery technologies and 
                        other technologies to reduce fossil fuel 
                        consumption in transportation, or
                            ``(v) technologies to reduce energy use in 
                        buildings.
                    ``(C) Mass commuting facilities and related 
                facilities that reduce the consumption of energy, 
                including expenditures to reduce pollution from 
                vehicles used for mass commuting.
                    ``(D) Demonstration projects designed to promote 
                the commercialization of--
                            ``(i) green building technology,
                            ``(ii) conversion of agricultural waste for 
                        use in the production of fuel or otherwise,
                            ``(iii) advanced battery manufacturing 
                        technologies,
                            ``(iv) technologies to reduce peak use of 
                        electricity, or
                            ``(v) technologies for the capture and 
                        sequestration of carbon dioxide emitted from 
                        combusting fossil fuels in order to produce 
                        electricity.
                    ``(E) Public education campaigns to promote energy 
                efficiency.
            ``(2) Special rules for private activity bonds.--For 
        purposes of this section, in the case of any private activity 
        bond, the term `qualified conservation purposes' shall not 
        include any expenditure which is not a capital expenditure.
    ``(f) Population.--
            ``(1) In general.--The population of any State or local 
        government shall be determined for purposes of this section as 
        provided in section 146(j) for the calendar year which includes 
        the date of the enactment of this section.
            ``(2) Special rule for counties.--In determining the 
        population of any county for purposes of this section, any 
        population of such county which is taken into account in 
        determining the population of any municipality which is a large 
        local government shall not be taken into account in determining 
        the population of such county.
    ``(g) Application to Indian Tribal Governments.--An Indian tribal 
government shall be treated for purposes of this section in the same 
manner as a large local government, except that--
            ``(1) an Indian tribal government shall be treated for 
        purposes of subsection (d) as located within a State to the 
        extent of so much of the population of such government as 
        resides within such State, and
            ``(2) any bond issued by an Indian tribal government shall 
        be treated as a qualified energy conservation bond only if 
        issued as part of an issue the available project proceeds of 
        which are used for purposes for which such Indian tribal 
        government could issue bonds to which section 103(a) 
        applies.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d), as added by section 
        104, is amended to read as follows:
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means--
                    ``(A) a new clean renewable energy bond, or
                    ``(B) a qualified energy conservation bond,
        which is part of an issue that meets requirements of paragraphs 
        (2), (3), (4), (5), and (6).''.
            (2) Subparagraph (C) of section 54A(d)(2), as added by 
        section 104, is amended to read as follows:
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means--
                            ``(i) in the case of a new clean renewable 
                        energy bond, a purpose specified in section 
                        54B(a)(1), and
                            ``(ii) in the case of a qualified energy 
                        conservation bond, a purpose specified in 
                        section 54C(a)(1).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 54C. Qualified energy conservation bonds.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 252. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) Extension of Credit.--Section 25C(g) (relating to termination) 
is amended by striking ``December 31, 2007'' and inserting ``December 
31, 2009''.
    (b) Qualified Biomass Fuel Property.--
            (1) In general.--Section 25C(d)(3) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (D),
                    (B) by striking the period at the end of 
                subparagraph (E) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) a stove which uses the burning of biomass 
                fuel to heat a dwelling unit located in the United 
                States and used as a residence by the taxpayer, or to 
                heat water for use in such a dwelling unit, and which 
                has a thermal efficiency rating of at least 75 
                percent.''.
            (2) Biomass fuel.--Section 25C(d) (relating to residential 
        energy property expenditures) is amended by adding at the end 
        the following new paragraph:
            ``(6) Biomass fuel.--The term `biomass fuel' means any 
        plant-derived fuel available on a renewable or recurring basis, 
        including agricultural crops and trees, wood and wood waste and 
        residues (including wood pellets), plants (including aquatic 
        plants), grasses, residues, and fibers.''.
    (c) Coordination With Credit for Qualified Geothermal Heat pump 
Property Expenditures.--
            (1) In general.--Paragraph (3) of section 25C(d) is amended 
        by striking subparagraph (C) and by redesignating subparagraphs 
        (D) and (E) as subparagraphs (C) and (D), respectively.
            (2) Conforming amendment.--Subparagraph (C) of section 
        25C(d)(2) is amended to read as follows:
                    ``(C) Requirements and standards for air 
                conditioners and heat pumps.--The standards and 
                requirements prescribed by the Secretary under 
                subparagraph (B) with respect to the energy efficiency 
                ratio (EER) for central air conditioners and electric 
                heat pumps--
                            ``(i) shall require measurements to be 
                        based on published data which is tested by 
                        manufacturers at 95 degrees Fahrenheit, and
                            ``(ii) may be based on the certified data 
                        of the Air Conditioning and Refrigeration 
                        Institute that are prepared in partnership with 
                        the Consortium for Energy Efficiency.''.
    (d) Effective Date.--The amendments made this section shall apply 
to expenditures made after December 31, 2007.

SEC. 253. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    Subsection (h) of section 179D (relating to termination) is amended 
by striking ``December 31, 2008'' and inserting ``December 31, 2013''.

SEC. 254. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR 
              APPLIANCES PRODUCED AFTER 2007.

    (a) In General.--Subsection (b) of section 45M (relating to 
applicable amount) is amended to read as follows:
    ``(b) Applicable Amount.--For purposes of subsection (a)--
            ``(1) Dishwashers.--The applicable amount is--
                    ``(A) $45 in the case of a dishwasher which is 
                manufactured in calendar year 2008 or 2009 and which 
                uses no more than 324 kilowatt hours per year and 5.8 
                gallons per cycle, and
                    ``(B) $75 in the case of a dishwasher which is 
                manufactured in calendar year 2008, 2009, or 2010 and 
                which uses no more than 307 kilowatt hours per year and 
                5.0 gallons per cycle (5.5 gallons per cycle for 
                dishwashers designed for greater than 12 place 
                settings).
            ``(2) Clothes washers.--The applicable amount is--
                    ``(A) $75 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 which 
                meets or exceeds a 1.72 modified energy factor and does 
                not exceed a 8.0 water consumption factor,
                    ``(B) $125 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 or 
                2009 which meets or exceeds a 1.8 modified energy 
                factor and does not exceed a 7.5 water consumption 
                factor,
                    ``(C) $150 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009, or 2010 which meets or exceeds 2.0 modified 
                energy factor and does not exceed a 6.0 water 
                consumption factor, and
                    ``(D) $250 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009, or 2010 which meets or exceeds 2.2 modified 
                energy factor and does not exceed a 4.5 water 
                consumption factor.
            ``(3) Refrigerators.--The applicable amount is--
                    ``(A) $50 in the case of a refrigerator which is 
                manufactured in calendar year 2008, and consumes at 
                least 20 percent but not more than 22.9 percent less 
                kilowatt hours per year than the 2001 energy 
                conservation standards,
                    ``(B) $75 in the case of a refrigerator which is 
                manufactured in calendar year 2008 or 2009, and 
                consumes at least 23 percent but no more than 24.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards,
                    ``(C) $100 in the case of a refrigerator which is 
                manufactured in calendar year 2008, 2009, or 2010, and 
                consumes at least 25 percent but not more than 29.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards, and
                    ``(D) $200 in the case of a refrigerator 
                manufactured in calendar year 2008, 2009, or 2010 and 
                which consumes at least 30 percent less energy than the 
                2001 energy conservation standards.''.
    (b) Eligible Production.--
            (1) Similar treatment for all appliances.--Subsection (c) 
        of section 45M (relating to eligible production) is amended--
                    (A) by striking paragraph (2),
                    (B) by striking ``(1) In general'' and all that 
                follows through ``the eligible'' and inserting ``The 
                eligible'', and
                    (C) by moving the text of such subsection in line 
                with the subsection heading and redesignating 
                subparagraphs (A) and (B) as paragraphs (1) and (2), 
                respectively.
            (2) Modification of base period.--Paragraph (2) of section 
        45M(c), as amended by paragraph (1) of this section, is amended 
        by striking ``3-calendar year'' and inserting ``2-calendar 
        year''.
    (c) Types of Energy Efficient Appliances.--Subsection (d) of 
section 45M (defining types of energy efficient appliances) is amended 
to read as follows:
    ``(d) Types of Energy Efficient Appliance.--For purposes of this 
section, the types of energy efficient appliances are--
            ``(1) dishwashers described in subsection (b)(1),
            ``(2) clothes washers described in subsection (b)(2), and
            ``(3) refrigerators described in subsection (b)(3).''.
    (d) Aggregate Credit Amount Allowed.--
            (1) Increase in limit.--Paragraph (1) of section 45M(e) 
        (relating to aggregate credit amount allowed) is amended to 
        read as follows:
            ``(1) Aggregate credit amount allowed.--The aggregate 
        amount of credit allowed under subsection (a) with respect to a 
        taxpayer for any taxable year shall not exceed $75,000,000 
        reduced by the amount of the credit allowed under subsection 
        (a) to the taxpayer (or any predecessor) for all prior taxable 
        years beginning after December 31, 2007.''.
            (2) Exception for certain refrigerator and clothes 
        washers.--Paragraph (2) of section 45M(e) is amended to read as 
        follows:
            ``(2) Amount allowed for certain refrigerators and clothes 
        washers.--Refrigerators described in subsection (b)(3)(D) and 
        clothes washers described in subsection (b)(2)(D) shall not be 
        taken into account under paragraph (1).''.
    (e) Qualified Energy Efficient Appliances.--
            (1) In general.--Paragraph (1) of section 45M(f) (defining 
        qualified energy efficient appliance) is amended to read as 
        follows:
            ``(1) Qualified energy efficient appliance.--The term 
        `qualified energy efficient appliance' means--
                    ``(A) any dishwasher described in subsection 
                (b)(1),
                    ``(B) any clothes washer described in subsection 
                (b)(2), and
                    ``(C) any refrigerator described in subsection 
                (b)(3).''.
            (2) Clothes washer.--Section 45M(f)(3) (defining clothes 
        washer) is amended by inserting ``commercial'' before 
        ``residential'' the second place it appears.
            (3) Top-loading clothes washer.--Subsection (f) of section 
        45M (relating to definitions) is amended by redesignating 
        paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), 
        and (8), respectively, and by inserting after paragraph (3) the 
        following new paragraph:
            ``(4) Top-loading clothes washer.--The term `top-loading 
        clothes washer' means a clothes washer which has the clothes 
        container compartment access located on the top of the machine 
        and which operates on a vertical axis.''.
            (4) Replacement of energy factor.--Section 45M(f)(6), as 
        redesignated by paragraph (3), is amended to read as follows:
            ``(6) Modified energy factor.--The term `modified energy 
        factor' means the modified energy factor established by the 
        Department of Energy for compliance with the Federal energy 
        conservation standard.''.
            (5) Gallons per cycle; water consumption factor.--Section 
        45M(f) (relating to definitions), as amended by paragraph (3), 
        is amended by adding at the end the following:
            ``(9) Gallons per cycle.--The term `gallons per cycle' 
        means, with respect to a dishwasher, the amount of water, 
        expressed in gallons, required to complete a normal cycle of a 
        dishwasher.
            ``(10) Water consumption factor.--The term `water 
        consumption factor' means, with respect to a clothes washer, 
        the quotient of the total weighted per-cycle water consumption 
        divided by the cubic foot (or liter) capacity of the clothes 
        washer.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2007.

SEC. 255. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
              QUALIFIED ENERGY MANAGEMENT DEVICES.

    (a) In General.--Section 168(e)(3)(B) (relating to 5-year property) 
is amended by striking ``and'' at the end of clause (v), by striking 
the period at the end of clause (vi) and inserting ``, and'', and by 
inserting after clause (vi) the following new clause:
                            ``(vii) any qualified energy management 
                        device.''.
    (b) Definition of Qualified Energy Management Device.--Section 
168(i) (relating to definitions and special rules) is amended by 
inserting at the end the following new paragraph:
            ``(18) Qualified energy management device.--
                    ``(A) In general.--The term `qualified energy 
                management device' means any energy management device 
                which is installed on real property of a customer of 
                the taxpayer and is placed in service by a taxpayer 
                who--
                            ``(i) is a supplier of electric energy or a 
                        provider of electric energy services, and
                            ``(ii) provides all commercial and 
                        residential customers of such supplier or 
                        provider with net metering upon the request of 
                        such customer.
                    ``(B) Energy management device.--For purposes of 
                subparagraph (A), the term `energy management device' 
                means any time-based meter and related communication 
                equipment which is capable of being used by the 
                taxpayer as part of a system that--
                            ``(i) measures and records electricity 
                        usage data on a time-differentiated basis in at 
                        least 24 separate time segments per day,
                            ``(ii) provides for the exchange of 
                        information between supplier or provider and 
                        the customer's energy management device in 
                        support of time-based rates or other forms of 
                        demand response, and
                            ``(iii) provides data to such supplier or 
                        provider so that the supplier or provider can 
                        provide energy usage information to customers 
                        electronically.
                    ``(C) Net metering.--For purposes of subparagraph 
                (A), the term `net metering' means allowing customers a 
                credit for providing electricity to the supplier or 
                provider.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 256. CLARIFICATION OF ELIGIBILITY FOR CERTAIN FUELS CREDITS FOR 
              FUEL WITH INSUFFICIENT NEXUS TO THE UNITED STATES.

    (a) In General.--
            (1) Alcohol credit.--Subsection (d) of section 40 is 
        amended by adding at the end the following new paragraph:
            ``(6) Limitation to alcohol with connection to the united 
        states.--
                    ``(A) Alcohol credit.--No alcohol credit shall be 
                determined under this section with respect to any 
                alcohol unless such alcohol is produced in the United 
                States for consumption in the United States or entered 
                into the United States for consumption in the United 
                States.
                    ``(B) Alcohol mixture credit.--No alcohol mixture 
                credit shall be determined under this section with 
                respect to any mixture unless such mixture is produced 
                in the United States for consumption in the United 
                States or entered into the United States for 
                consumption in the United States.
                    ``(C) No credits for alcohol destined for export.--
                No credit (other than the small ethanol producer 
                credit) shall be determined under this section with 
                respect to any mixture or alcohol if such mixture or 
                alcohol is destined for export from the United States 
                (as determined by the Secretary).
                    ``(D) Special rule for small producer credits.--No 
                small ethanol producer credit, small cellulosic alcohol 
                producer credit, or small fossil free alcohol producer 
                credit shall be determined under this section with 
                respect to any alcohol unless such alcohol is produced 
                in the United States.''.
            (2) Biodiesel credit.--Subsection (d) of section 40A is 
        amended by adding at the end the following new paragraph:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--
                    ``(A) Biodiesel credit.--No biodiesel credit shall 
                be determined under this section with respect to any 
                biodiesel unless such biodiesel is produced in the 
                United States for consumption in the United States or 
                is entered into the United States for consumption in 
                the United States.
                    ``(B) Biodiesel mixture credit.--No biodiesel 
                mixture credit shall be determined under this section 
                with respect to any mixture unless such mixture is 
                produced in the United States for consumption in the 
                United States or is entered into the United States for 
                consumption in the United States.
                    ``(C) No credits for biodiesel destined for 
                export.--No credit (other than the small agri-biodiesel 
                producer credit) shall be determined under this section 
                with respect to any mixture or biodiesel if such 
                mixture or biodiesel is destined for export from the 
                United States (as determined by the Secretary).
                    ``(D) Special rule for small agri-biodiesel 
                producer credit.--No small agri-biodiesel producer 
                credit shall be determined under this section with 
                respect to any agri-biodiesel unless such agri-
                biodiesel is produced in the United States.''.
            (3) Excise tax credits.--Section 6426 is amended by adding 
        at the end the following new subsection:
    ``(h) Limitation to Fuels With Connection to the United States.--
            ``(1) Mixture credits.--No credit shall be determined under 
        this section with respect to any mixture unless such mixture is 
        produced in the United States for consumption in the United 
        States or is entered into the United States for consumption in 
        the United States.
            ``(2) Alternative fuel credit.--No alternative fuel credit 
        shall be determined under this section with respect to any 
        alternative fuel unless such alternative fuel is produced in 
        the United States for consumption in the United States or is 
        entered into the United States for consumption in the United 
        States.
            ``(3) No credits for fuels destined for export.--No credit 
        shall be determined under this section with respect to any 
        mixture or alternative fuel if such mixture or alternative fuel 
        is destined for export from the United States (as determined by 
        the Secretary).''.
            (4) Payments.--Subsection (e) of section 6427 is amended by 
        redesignating paragraph (5) as paragraph (6) and by inserting 
        after paragraph (4) the following new paragraph:
            ``(5) Limitation to fuels with connection to the united 
        states.--No amount shall be payable under paragraph (1) or (2) 
        with respect to any mixture or alternative fuel if credit is 
        not allowed with respect to such mixture or alternative fuel by 
        reason of section 6426(h).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

                  TITLE III--RESEARCH AND DEVELOPMENT

SEC. 301. BLENDED FUELS.

    The Secretary shall carry out a program of research, development, 
and demonstration as it relates to the blending of transportation fuels 
derived from coal-to-liquids and the blending thereof with 
transportation fuels derived from renewable sources, including biomass 
(as defined in section 932 of the Energy Policy Act of 2005). The 
program shall focus on--
            (1) maximizing the fungibility and supply of blended 
        transportation fuels;
            (2) the viability of the blend as a cost competitive 
        replacement for transportation fuels;
            (3) evaluation of the environmental consequences of the 
        blend on evaporative and exhaust emissions from on-road and 
        off-road engines;
            (4) the quality of the resultant blend at varying 
        concentrations of biofuel; and
            (5) other areas the Secretary considers appropriate.

SEC. 302. CELLULOSIC ETHANOL.

    (a) Bioenergy Research Centers.--The Secretary of Energy shall 
maintain 4 Bioenergy Research Centers to address scientific problems 
that are inherently interdisciplinary and will require scientific 
expertise and technological capabilities that span the physical and 
biological sciences, including genomics, microbial and plant biology, 
analytical chemistry, computational biology and bioinformatics, and 
engineering. Universities, national laboratories, nonprofit agencies, 
and private firms, as well as consortia comprising of partnerships of 
two or more such institutions, will be eligible for funding to 
establish and operate a Research Center.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for the Bioenergy Research Centers described in subsection 
(a) $25,000,000 for each of the fiscal years 2009 through 2013.
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