[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6207 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6207
To develop American energy independence, lower gas prices, and open
reliable national sources of energy.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 9, 2008
Mr. Akin introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committees on
Ways and Means, Rules, and Natural Resources, 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 develop American energy independence, lower gas prices, and open
reliable national sources of energy.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``$150 Barrel Energy
Extortion Act of 2008''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title, etc.
TITLE I--REFINERIES
Sec. 101. Issuance of guidance.
Sec. 102. Tax-exempt financing of domestic use oil refinery facilities.
Sec. 103. Designation and availability of Federal lands for oil and
natural gas refineries.
TITLE II--NUCLEAR
Sec. 201. Incentives for innovative technologies.
Sec. 202. Standby support for certain nuclear plant delays.
Sec. 203. Authorization for Nuclear Power 2010 Program.
Sec. 204. Domestic manufacturing base for nuclear components and
equipment.
Sec. 205. Nuclear energy workforce.
Sec. 206. Investment Tax Credit for Investments in Nuclear Power
Facilities.
Sec. 207. National Nuclear Energy Council.
Sec. 208. Temporary Spent Nuclear Fuel Storage Agreements.
Sec. 209. Confidence in availability of waste disposal.
TITLE III--DRILLING
Subtitle A--Tax Provisions
Sec. 301. Credit for producing fuel from nonconventional sources to
apply to gas produced onshore from
formations more than 15,000 feet deep.
Sec. 302. Tax credit for carbon dioxide captured from industrial
sources and used in enhanced oil and
natural gas recovery.
Subtitle B--Termination of Congressional Moratoria on Oil and Gas
Development on the Outer Continental Shelf
Sec. 311. Termination of laws prohibiting expenditures for oil and
natural gas leasing and preleasing
activities regarding areas of the outer
continental shelf.
Subtitle C--Oil and Gas Development on the Coastal Plain of Alaska
Sec. 321. Short title.
Sec. 322. Definitions.
Sec. 323. Leasing program for lands within the Coastal Plain.
Sec. 324. Lease sales.
Sec. 325. Grant of leases by the Secretary.
Sec. 326. Lease terms and conditions.
Sec. 327. Coastal plain environmental protection.
Sec. 328. Expedited judicial review.
Sec. 329. Federal and State distribution of revenues.
Sec. 330. Rights-of-way across the Coastal Plain.
Sec. 331. Conveyance.
Sec. 332. Local government impact aid and community service assistance.
TITLE IV--EFFECTIVE DATE
Sec. 401. Effective date.
TITLE I--REFINERIES
SEC. 101. ISSUANCE OF GUIDANCE.
The Secretary of the Treasury shall, not later than 60 days after
the effective date of this Act, prescribe the regulations described in
paragraph (1) of section 179C(b) of the Internal Revenue Code of 1986
(relating to election to expense certain refineries).
SEC. 102. TAX-EXEMPT FINANCING OF DOMESTIC USE OIL REFINERY FACILITIES.
(a) In General.--
(1) Treatment as exempt facility bond.--Subsection (a) of
section 142 of the Internal Revenue Code of 1986 (relating to
exempt facility bond) is amended by striking ``or'' at the end
of paragraph (14), by striking the period at the end of
paragraph (15) and inserting ``, or'', and by inserting at the
end the following new paragraph:
``(16) domestic use oil refinery facilities.''.
(2) Domestic use oil refinery facilities.--Section 142 of
such Code is amended by adding at the end the following new
subsection:
``(n) Domestic Use Oil Refinery Facilities.--
``(1) In general.--For purposes of subsection (a)(16), the
term `domestic use oil refinery facility' means any facility in
the United States--
``(A) which processes liquid fuel from crude oil,
and
``(B) all of the output of which it is reasonably
certain ultimate consumption will occur in the United
States.
``(2) Election to terminate tax-exempt bond financing by
certain refineries.--In the case of a facility financed with
bonds which would cease to be tax-exempt by reason of the
failure to meet the domestic use requirement of this
subsection, rules similar to the rules of subsection (f)(4)
shall apply for purposes of this section.''.
(b) Effective Date.--The amendments made by this section shall
apply to bonds issued after the effective date of this Act.
SEC. 103. DESIGNATION AND AVAILABILITY OF FEDERAL LANDS FOR OIL AND
NATURAL GAS REFINERIES.
(a) Designation.--Within 18 months after the effective date of this
Act, the President shall designate at least ten sites on Federal lands
that are suitable for the siting of an oil refinery or natural gas
refinery (or both).
(b) Availability of Lands.--Within 24 months after the effective
date of this Act, the President shall make each site designated under
subsection (a) available to the private sector for construction of an
oil refinery or natural gas refinery (or both), as appropriate.
TITLE II--NUCLEAR
SEC. 201. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.
(a) Definition of Project Cost.--Section 1701 of the Energy Policy
Act of 2005 (42 U.S.C. 16511) is amended by adding at the end the
following new paragraph:
``(6) 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(b) of the Energy Policy Act
of 2005 (42 U.S.C. 16512(b)) is amended to read as follows:
``(b) Specific Appropriation or Contribution.--
``(1) In general.--No guarantee shall be made unless--
``(A) an appropriation for the cost has been made;
``(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(c) of the Energy Policy Act of 2005 (42
U.S.C. 16512(c)) is amended to read as follows:
``(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. 202. STANDBY SUPPORT FOR CERTAIN NUCLEAR PLANT DELAYS.
(a) Definitions.--Section 638(a) of the Energy Policy Act of 2005
(42 U.S.C. 16014(a)) is amended as follows:
(1) By inserting the following:
``(4) Full power operation.--The term `full power
operation' means whichever occurs first of--
``(A) the `commercial operation date' or the
equivalent under the terms of the financing documents
for such facility; or
``(B) operation of such facility at an average of
50 percent or greater of nameplate capacity over any
consecutive 30-day period.
``(5) Increased project costs.--The term `increased project
costs' means the increased cost of constructing, commissioning,
testing, operating, or maintaining a reactor prior to full-
power operation incurred as a result of a delay covered by the
contract, including but not limited to costs of demobilization
and remobilization, increased costs of equipment, materials and
labor due to delay (including idle time), increased general and
administrative costs, and escalation costs for completing
construction.
``(6) Litigation.--The term `litigation' means adjudication
in Federal, State, local, or tribal courts and administrative
proceedings or hearings at or before Federal, State, local, or
tribal agencies or administrative bodies.''.
(2) By redesignating paragraph (4) as paragraph (7).
(b) Contract Authority.--Section 638(b) of the Energy Policy Act of
2005 (42 U.S.C. 16014(b)) is amended by striking paragraph (1) and
inserting the following:
``(1) In general.--The Secretary may enter into contracts
under this section with sponsors of an advanced nuclear
facility that cover at any one time outstanding a total of not
more than 6 reactors, with the 6 reactors consisting of not
more than 3 different reactor designs, in accordance with
paragraph (2). In the event that any contract entered into
under this section terminates or expires without a claim being
paid by the Secretary thereunder, then the Secretary may enter
into a new contract under this section in replacement or
substitution for such contract.''.
(c) Covered Costs.--Section 638(d) of the Energy Policy Act of 2005
(42. U.S.C. 16014(d)) is amended by striking paragraphs (2) and (3) and
inserting the following:
``(2) Coverage.--In the case of reactors that receive
combined licenses and on which construction is commenced, the
Secretary shall pay--
``(A) 100 percent of the covered costs of delay
that occur after the initial 30-day period of covered
delay; but
``(B) not more than $500,000,000 per contract.
``(3) Covered debt obligations.--Debt obligations covered
under subparagraph (A) of paragraph (5) shall include but not
be limited to debt obligations incurred to pay increased
project costs.''.
(d) Dispute Resolution.--Section 638 of the Energy Policy Act of
2005 (42 U.S.C. 16014) is amended as follows:
(1) By inserting the following:
``(f) Dispute Resolution.--Any controversy or claim arising out of
or relating to any contract entered into under this section shall be
determined by arbitration in Washington, DC, according to the then
prevailing Commercial Arbitration Rules of the American Arbitration
Association. A decision by the arbitrator or arbitrators shall be final
and binding, and any court having jurisdiction may enter judgment on
it.''.
(2) By redesignating subsections (f), (g), and (h) as
subsections (g), (h), and (i) respectively.
SEC. 203. 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. 204. 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 effective
date 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 effective
date 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 effective
date 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 section $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 subsections (b) and (c)
shall apply to property (1) the construction, reconstruction, or
erection of which of began after the effective date of this Act, or (2)
which was acquired by the taxpayer on or after the effective date of
this Act and not pursuant to a binding contract which was in effect on
the day prior to the effective date of this Act.
SEC. 205. 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. 206. INVESTMENT TAX CREDIT FOR INVESTMENTS IN NUCLEAR POWER
FACILITIES.
(a) New Credit for Nuclear Power Facilities.--Section 46 of the
Internal Revenue Code of 1986, as amended by this Act, is amended by--
(1) striking ``and'' at the end of paragraph (4);
(2) striking the period at the end of paragraph (5) and
inserting ``, and''; and
(3) inserting after paragraph (5) the following new
paragraph:
``(6) the nuclear power facility construction credit.''.
(b) Nuclear Power Facility Construction Credit.--Subpart E of part
IV of subchapter A of chapter 1 of such Code, as amended by this Act,
is amended by inserting after section 48C the following new section:
``SEC. 48D. NUCLEAR POWER FACILITY CONSTRUCTION CREDIT.
``(a) In General.--For purposes of section 46, the nuclear power
facility construction credit for any taxable year is 10 percent of the
qualified nuclear power facility expenditures with respect to a
qualified nuclear power facility.
``(b) When Expenditures Taken Into Account.--
``(1) In general.--Qualified nuclear power facility
expenditures shall be taken into account for the taxable year
in which the qualified nuclear power facility is placed in
service.
``(2) Coordination with subsection (c).--The amount which
would (but for this paragraph) be taken into account under
paragraph (1) with respect to any qualified nuclear power
facility shall be reduced (but not below zero) by any amount of
qualified nuclear power facility expenditures taken into
account under subsection (c) by the taxpayer or a predecessor
of the taxpayer (or, in the case of a sale and leaseback
described in section 50(a)(2)(C), by the lessee), to the extent
any amount so taken into account has not been required to be
recaptured under section 50(a).
``(c) Progress Expenditures.--
``(1) In general.--A taxpayer may elect to take into
account qualified nuclear power facility expenditures:
``(A) Self-constructed property.--In the case of a
qualified nuclear power facility which is a self-
constructed facility, in the taxable year for which
such expenditures are properly chargeable to capital
account with respect to such facility, and
``(B) Acquired facility.--In the case of a
qualified nuclear facility which is not self-
constructed property, in the taxable year in which such
expenditures are paid.
``(2) Special rules for applying paragraph (1).--For
purposes of paragraph (1):
``(A) Component parts, etc.--Property which is not
self-constructed property and which is to be a
component part of, or is otherwise to be included in,
any facility to which this subsection applies shall be
taken into account in accordance with paragraph (1)(B).
``(B) Certain borrowing disregarded.--Any amount
borrowed directly or indirectly by the taxpayer on a
nonrecourse basis from the person constructing the
facility for the taxpayer shall not be treated as an
amount expended for such facility.
``(C) Limitation for facilities or components which
are not self-constructed.--
``(i) In general.--In the case of a
facility or a component of a facility which is
not self-constructed, the amount taken into
account under paragraph (1)(B) for any taxable
year shall not exceed the amount which
represents the portion of the overall cost to
the taxpayer of the facility or component of a
facility which is properly attributable to the
portion of the facility or component which is
completed during such taxable year.
``(ii) Carry-over of certain amounts.--In
the case of a facility or component of a
facility which is not self-constructed, if for
the taxable year--
``(I) the amount which (but for
clause (i)) would have been taken into
account under paragraph (1)(B) exceeds
the limitation of clause (i), then the
amount of such excess shall be taken
into account under paragraph (1)(B) for
the succeeding taxable year, or
``(II) the limitation of clause (i)
exceeds the amount taken into account
under paragraph (1)(B), then the amount
of such excess shall increase the
limitation of clause (i) for the
succeeding taxable year.
``(D) Determination of percentage of completion.--
The determination under subparagraph (C)(i) of the
portion of the overall cost to the taxpayer of the
construction which is properly attributable to
construction completed during any taxable year shall be
made on the basis of engineering or architectural
estimates or on the basis of cost accounting records.
Unless the taxpayer establishes otherwise by clear and
convincing evidence, the construction shall be deemed
to be completed not more rapidly than ratably over the
normal construction period.
``(E) No progress expenditures for certain prior
periods.--No qualified nuclear facility expenditures
shall be taken into account under this subsection for
any period before the first day of the first taxable
year to which an election under this subsection
applies.
``(F) No progress expenditures for property for
year it is placed in service, etc.--In the case of any
qualified nuclear facility, no qualified nuclear
facility expenditures shall be taken into account under
this subsection for the earlier of--
``(i) the taxable year in which the
facility is placed in service, or
``(ii) the first taxable year for which
recapture is required under section 50(a)(2)
with respect to such facility, or for any
taxable year thereafter.
``(3) Self-constructed.--For purposes of this subsection--
``(A) The term `self-constructed facility' means
any facility if it is reasonable to believe that more
than half of the qualified nuclear facility
expenditures for such facility will be made directly by
the taxpayer.
``(B) A component of a facility shall be treated as
not self-constructed if the cost of the component is at
least 5 percent of the expected cost of the facility
and the component is acquired by the taxpayer.
``(4) Election.--An election shall be made under this
section for a qualified nuclear power facility by claiming the
nuclear power facility construction credit for expenditures
described in paragraph (1) on a tax return filed by the due
date for such return (taking into account extensions). Such an
election shall apply to the taxable year for which made and all
subsequent taxable years. Such an election, once made, may be
revoked only with the consent of the Secretary.
``(d) Definitions and Special Rules.--For purposes of this section:
``(1) Qualified nuclear power facility.--The term
`qualified nuclear power facility' means an advanced nuclear
power facility, as defined in section 45J, the construction of
which was approved by the Nuclear Regulatory Commission on or
before December 31, 2013.
``(2) Qualified nuclear power facility expenditures.--
``(A) In general.--The term `qualified nuclear
power facility expenditures' means any amount properly
chargeable to capital account--
``(i) with respect to a qualified nuclear
power facility;
``(ii) for which depreciation is allowable
under section 168; and
``(iii) which are incurred before the
qualified nuclear power facility is placed in
service or in connection with the placement of
such facility in service.
``(B) Pre-effective date expenditures.--Qualified
nuclear power facility expenditures do not include any
expenditures incurred by the taxpayer before the
effective date of the $150 Barrel Energy Extortion Act
of 2008, unless such expenditures constitute less than
20 percent of the total qualified nuclear power
facility expenditures (determined without regard to
this subparagraph) for the qualified nuclear power
facility.
``(3) Delays and suspension of construction.--
``(A) In general.--For purposes of applying this
section and section 50, a nuclear power facility that
is under construction shall cease to be treated as a
facility that will be a qualified nuclear power
facility as of the earlier of--
``(i) the date on which the taxpayer
decides to terminate construction of the
facility, or
``(ii) the last day of any 24 month period
in which the taxpayer has failed to incur
qualified nuclear power facility expenditures
totaling at least 20 percent of the expected
total cost of the nuclear power facility.
``(B) Authority to waive.--The Secretary may waive
the application of clause (ii) of subparagraph (A) if
the Secretary determines that the taxpayer intended to
continue the construction of the qualified nuclear
power facility and the expenditures were not incurred
for reasons outside the control of the taxpayer.
``(C) Resumption of construction.--If a nuclear
power facility that is under construction ceases to be
a qualified nuclear power facility by reason of
paragraph (2) and work is subsequently resumed on the
construction of such facility--
``(i) the date work is subsequently resumed
shall be treated as the date that construction
began for purposes of paragraph (1), and
``(ii) if the facility is a qualified
nuclear power facility, the qualified nuclear
power facility expenditures shall be determined
without regard to any delay or temporary
termination of construction of the facility.''.
(c) Provisions Relating to Credit Recapture.--
(1) Progress expenditure recapture rules.--
(A) Basic rules.--Subparagraph (A) of section
50(a)(2) of such Code is amended to read as follows:
``(A) In general.--If during any taxable year any
building to which section 47(d) applied or any facility
to which section 48D(c) applied ceases (by reason of
sale or other disposition, cancellation or abandonment
of contract, or otherwise) to be, with respect to the
taxpayer, property which, when placed in service, will
be a qualified rehabilitated building or a qualified
nuclear power facility, as the case may be, then the
tax under this chapter for such taxable year shall be
increased by an amount equal to the aggregate decrease
in the credits allowed under section 38 for all prior
taxable years which would have resulted solely from
reducing to zero the credit determined under this
subpart with respect to such building or facility.''.
(B) Amendment to excess credit recapture rule.--
Subparagraph (B) of section 50(a)(2) of such Code is
amended by--
(i) inserting ``or paragraph (2) of section
48D(b)'' after ``paragraph (2) of section
47(b)'',
(ii) inserting ``or section 48D(b)(1)''
after ``section 47(b)(1)''; and
(iii) inserting ``or facility'' after
``building''.
(C) Amendment of sale and leaseback rule.--
Subparagraph (C) of section 50(a)(2) of such Code is
amended by--
(i) inserting ``or section 48D(c)'' after
``section 47(d)''; and
(ii) inserting ``or qualified nuclear power
facility expenditures'' after ``qualified
rehabilitation expenditures''.
(D) Coordination.--Subparagraph (D) of section
50(a)(2) of such Code is amended by inserting ``or
section 48D(c)'' after ``section 47(d)''.
(d) No Basis Adjustment.--Section 50(c) of such Code is amended by
inserting at the end thereof the following new paragraph:
``(6) Nuclear power facility construction credit.--
Paragraphs (1) and (2) shall not apply to the nuclear power
facility construction credit.''.
(e) Clerical Amendment.--The table of sections for subpart E of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item for section 48C the following new item:
``Sec. 48D. Nuclear power facility construction credit.''.
(f) Effective Date.--The amendments made by this section shall
apply to expenditures incurred and property placed in service in
taxable years beginning after the effective date of this Act.
SEC. 207. NATIONAL NUCLEAR ENERGY COUNCIL.
(a) In General.--
(1) The Secretary of Energy shall establish a National
Nuclear Energy Council (hereinafter the ``Council'').
(2) The Council shall be subject to the requirements of the
Federal Advisory Committee Act (5 U.S.C. Appendix 2).
(b) Purpose.--The 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. 208. TEMPORARY SPENT NUCLEAR FUEL STORAGE AGREEMENTS.
(a) Authorization and Location.--The Secretary of Energy (in this
section referred to as the ``Secretary'') is authorized to initiate
spent nuclear fuel storage agreements as provided in this section.
(1) No later than 180 days from the effective date of this
Act, representatives of a community may submit written notice
to the Secretary that the community is willing to host a
temporary spent nuclear fuel storage facility within its
jurisdiction.
(2) Within 90 days of the receipt of the notification under
paragraph (1), the Secretary shall determine whether the
identified site is suitable for a temporary storage facility.
In determining the site's suitability, the Secretary shall
evaluate technical feasibility and consider favorably local
support for collocating a temporary spent nuclear fuel storage
facility with facilities intended to develop and implement
advanced nuclear fuel cycle technologies.
(b) Content of Agreements.--(1) If the Secretary determines one or
more sites to be suitable in accordance with subsection (a)(2),
negotiation of a temporary spent nuclear fuel storage facility
agreement shall proceed.
(2) Any temporary spent nuclear fuel storage agreement shall
contain such terms and conditions, including financial, institutional,
and such other arrangements as the Secretary and community determine to
be reasonable and appropriate.
(3) Any temporary spent nuclear fuel storage agreement may be
amended only with the mutual consent of the parties to the agreement.
(c) Environmental Impact Statement.--Execution of a temporary spent
nuclear fuel storage agreement shall not require preparation of an
environmental impact statement under section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) or require any
environmental review under subparagraph (E) or (F) of section 102(2) of
such Act (42 U.S.C. 4332(2)(E), (F)).
(d) Implementation of Temporary Spent Nuclear Fuel Storage
Agreements.--
(1) In general.--Any temporary spent nuclear fuel storage
agreement or agreements entered into under this section shall
enter into force with respect to the United States if (and only
if)--
(A) the Secretary, at least 60 days before the day
on which he or she enters into the temporary spent
nuclear fuel storage agreement or agreements notifies
the House of Representatives and the Senate of his
intention to enter into the agreement or agreements,
and promptly thereafter publishes notice of such
intention in the Federal Register;
(B) the Governor of the State or States in which
the facility is proposed to be located submits written
notice to the Secretary that the Governor supports the
temporary spent nuclear fuel storage agreement; and
(C) after entering into the agreement, the
Secretary submits to the House of Representatives and
to the Senate a copy of the final text of the
agreement, together with--
(i) a draft of an implementing bill; and
(ii) a statement of any administrative
action proposed to implement the agreement.
(2) Application of expedited procedures to implementing
bills.--The provisions of subsection (e) apply to implementing
bills submitted with respect to temporary spent nuclear fuel
storage agreements entered into and submitted pursuant to this
section.
(e) Expedited Procedures for Congressional Review of Temporary
Spent Nuclear Fuel Storage Agreements.--
(1) Rules of house of representative and senate.--The
provisions of this subsection are enacted by the Congress--
(A) as an exercise of the rulemaking power of the
House of Representatives and the Senate, respectively,
and as such they are deemed a part of the rules of each
House, respectively, but applicable only with respect
to the procedure to be followed in that House in the
case of implementing bills and approval resolutions;
and they supersede other rules only to the extent that
they are inconsistent therewith; and
(B) with full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House at any time, in
the same manner and to the same extent as in the case
of any other rule of that House.
(2) Definitions.--For purposes of this subsection--
(A) The term ``community'' means any entity of
local government appropriate, in terms of legal
authority, for negotiating and entering into temporary
spent nuclear fuel storage agreements provided for in
this section.
(B) The term ``implementing bill'' means only a
bill of either House of Congress which is introduced as
provided in paragraph (3) with respect to one or more
temporary spent nuclear fuel storage agreements and
which contain--
(i) a provision approving such storage
agreements;
(ii) a provision approving the statement of
administrative action (if any) proposed to
implement such storage agreements;
(iii) if changes in existing laws or new
statutory authority is required to implement
such storage agreement or agreements,
provisions necessary or appropriate to
implement such agreement or agreements either
repealing or amending existing laws or
providing new statutory authority; and
(iv) a provision containing revenue
measures (if any), by reason of which the bill
must originate in the House of Representatives
as provided for in paragraph (3).
(C) The term ``approval resolution'' means only a
joint resolution of the two Houses of the Congress, the
matter after the resolving clause of which is as
follows: ``That the Congress approves the temporary
spent nuclear fuel storage agreement between the
Secretary of Energy and ___ on ___,'' the first blank
space being filled with the name of the governor
involved and the second blank space being filled in
with the appropriate date.
(3) Introduction and referral.--On the day on which the
temporary spent nuclear fuel storage agreement is submitted to
the House of Representatives and the Senate under this section,
the implementing bill submitted by the Secretary with respect
to such temporary spent nuclear fuel storage agreement shall be
introduced (by request) in the House by the majority leader of
the House, for himself and the minority leader of the House, or
by Members of the House designated by the majority leader and
minority leader of the House; and shall be introduced (by
request) in the Senate by the majority leader of the Senate,
for himself and the minority leader of the Senate, or by
Members of the Senate designated by the majority leader and
minority leader of the Senate. If either House is not in
session on the day on which such temporary spent nuclear fuel
storage agreement is submitted, the implementing bill shall be
introduced in that House, as provided in the preceding
sentence, on the first day thereafter on which that House is in
session. Such bills shall be referred by the Presiding Officers
of the respective Houses to the appropriate committee, or, in
the case of a bill containing provisions within the
jurisdiction of two or more committees, jointly to such
committees for consideration of those provisions within their
respective jurisdictions.
(4) Amendments prohibited.--No amendment to an implementing
bill or approval resolution shall be in order in either the
House of Representatives or the Senate; and no motion to
suspend the application of this paragraph shall be in order in
either House, nor shall it be in order in either House for the
Presiding Officer to entertain a request to suspend the
application of this paragraph by unanimous consent.
(5) Period for committee and floor consideration.--
(A) Except as provided in subparagraph (B), if the
committee or committees of either House to which an
implementing bill or approval resolution has been
referred have not reported it at the close of the 45th
day after its introduction, such committee or
committees shall be automatically discharged from
further consideration of the bill or resolution and it
shall be placed on the appropriate calendar. A vote on
final passage of the bill or resolution shall be taken
in each House on or before the close of the 15th day
after the bill or resolution is reported by the
committee or committees of that House to which it was
referred, or after such committee or committees have
been discharged from further consideration of the bill
or resolution. If prior to the passage by one House of
an implementing bill or approval resolution of that
House, that House receives the same implementing bill
or approval resolution from the other House, then--
(i) the procedure in that House shall be
the same as if no implementation bill or
approval resolution had been received from the
other House, but
(ii) the vote on final passage shall be on
the implementing bill or approval resolution of
the other House.
(B) For purposes of computing a number of days in
either House as provided for in subparagraph (A), there
shall be excluded any day on which that House is not in
session.
(C) If the implementing bill contains one or more
revenue measures--
(i) the provisions of subparagraph (A)
shall not apply; and
(ii) the Senate shall not take final action
on the bill until it is received from the
House.
(6) Floor consideration in the house.--
(A) A motion in the House of Representatives to
proceed to the consideration of an implementing bill or
approval resolution shall be highly privileged and not
debatable. An amendment to the motion shall not be in
order, nor shall it be in order to move to reconsider
the vote by which the motion is agreed to or disagreed
to.
(B) Debate in the House of Representatives on an
implementing bill or approval resolution shall be
limited to not more than 10 hours, which shall be
divided equally between those favoring and those
opposing the bill or resolution. A motion further to
limit debate shall not be debatable. It shall not be in
order to move to recommit an implementing bill or
approval resolution or to move to reconsider the vote
by which an implementing bill or approval resolution is
agreed to or disagreed to.
(C) Motions to postpone, made in the House of
Representatives with respect to the consideration of an
implementing bill or approval resolution, and motions
to proceed to the consideration of other business,
shall be decided without debate. If a motion to proceed
to consideration is agreed to, such resolution shall
remain unfinished business of House until disposed of.
(D) All appeals from the decisions of the Chair
relating to the application of the Rules of the House
of Representatives to the procedure relating to an
implementing bill or approval resolution shall be
decided without debate.
(E) Except to the extent specifically provided in
the preceding provisions of this paragraph,
consideration of an implementing bill or approval
resolution shall be governed by the Rules of the House
of Representatives applicable to other bills and
resolutions in similar circumstances.
(7) Floor consideration in the senate.--
(A) A motion in the Senate to proceed to the
consideration of an implementing bill or approval
resolution shall be privileged and not debatable. An
amendment to the motion shall not be in order, nor
shall it be in order to move to reconsider the vote by
which the motion is agreed to or disagreed to.
(B) Debate in the Senate on an implementing bill or
approval resolution, and all debatable motions and
appeals in connection therewith, shall be limited to
not more than 10 hours. The time shall be equally
divided between, and controlled by, the majority leader
and the minority leader or their designees.
(C) Debate in the Senate on any debatable motion or
appeal in connection with an implementing bill or
approval resolution shall be limited to not more than 1
hour, to be equally divided between, and controlled by,
the mover and the manager of the bill or resolution,
except that in the event the manager of the bill or
resolution is in favor of any such motion or appeal,
the time in opposition thereto shall be controlled by
the minority leader or his designee. Such leaders, or
either of them, may, from time under their control on
the passage of an implementing bill or approval
resolution, allot additional time to any Senator during
the consideration of any debatable motion or appeal.
(D) A motion in the Senate to further limit debate
is not debatable. A motion to recommit an
implementation bill or approval resolution is not in
order.
SEC. 209. CONFIDENCE IN AVAILABILITY OF WASTE DISPOSAL.
(a) Congressional Determination.--The Congress finds that--
(1) there is reasonable assurance that high-level
radioactive waste and spent nuclear fuel generated in reactors
licensed by the Nuclear Regulatory Commission in the past,
currently, or in the future will be managed in a safe manner
without significant environmental impact until capacity for
ultimate disposal is available; and
(2) the Federal Government is responsible and has an
established a policy for the ultimate safe and environmentally
sound disposal of such high-level radioactive waste and spent
nuclear fuel.
(b) Regulatory Consideration.--Notwithstanding any other provision
of law, for the period following the licensed operation of a civilian
nuclear power reactor or any facility for the treatment or storage of
spent nuclear fuel or high-level radioactive waste, no consideration of
the public health and safety, common defense and security, or
environmental impacts of the storage of high-level radioactive waste
and spent nuclear fuel generated in reactors licensed by the Nuclear
Regulatory Commission in the past, currently, or in the future, is
required by the Department of Energy or the Nuclear Regulatory
Commission in connection with the development, construction, and
operation of, or any permit, license, license amendment, or siting
approval for, a civilian nuclear power reactor or any facility for the
treatment or storage of spent nuclear fuel or high-level radioactive
waste. Nothing in this section shall affect the Department of Energy's
and Nuclear Regulatory Commission's obligation to consider the public
health and safety, common defense and security, and environmental
impacts of storage during the period of licensed operation of a
civilian nuclear power reactor or facility for the treatment or storage
of spent nuclear fuel or high-level radioactive waste.
TITLE III--DRILLING
Subtitle A--Tax Provisions
SEC. 301. CREDIT FOR PRODUCING FUEL FROM NONCONVENTIONAL SOURCES TO
APPLY TO GAS PRODUCED ONSHORE FROM FORMATIONS MORE THAN
15,000 FEET DEEP.
(a) In General.--Subparagraph (B) of section 45K(c)(1) of the
Internal Revenue Code of 1986 is amended by striking ``or'' at the end
of clause (i), by striking ``and'' at the end of clause (ii) and
inserting ``or'', and by inserting after clause (ii) the following new
clause:
``(iii) an onshore well from a formation
more than 15,000 feet deep, and''.
(b) Eligible Deep Gas Wells.--Section 45K of such Code is amended
by adding at the end the following new subsection:
``(h) Eligible Deep Gas Wells.--In the case of a well producing
qualified fuel described in subsection (c)(1)(B)(iii)--
``(1) for purposes of subsection (e)(1)(A), such well shall
be treated as drilled before January 1, 1993, if such well is
drilled after the date of the enactment of the $150 Barrel
Energy Extortion Act of 2008, and
``(2) subsection (e)(2) shall not apply.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the effective date of this Act.
SEC. 302. TAX CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL
SOURCES AND USED IN ENHANCED OIL AND NATURAL GAS
RECOVERY.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business credits) is
amended by adding at the end the following new section:
``SEC. 45Q. CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL SOURCES
AND USED AS A TERTIARY INJECTANT IN ENHANCED OIL AND
NATURAL GAS RECOVERY.
``(a) General Rule.--For purposes of section 38, the captured
carbon dioxide tertiary injectant credit for any taxable year is an
amount equal to the product of--
``(1) the credit amount, and
``(2) the qualified carbon dioxide captured from industrial
sources and used as a tertiary injectant in qualified enhanced
oil and natural gas recovery which is attributable to the
taxpayer.
``(b) Credit Amount.--For purposes of this section--
``(1) In general.--The credit amount is $0.75 per 1,000
standard cubic feet.
``(2) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2008, there shall be
substituted for the $0.75 amount under paragraph (1) an amount
equal to the product of--
``(A) $0.75, multiplied by
``(B) the inflation adjustment factor for such
calendar year determined under section 43(b)(3)(B) for
such calendar year, determined by substituting `2006'
for `1990'.
``(c) Qualified Carbon Dioxide.--For purposes of this section--
``(1) In general.--The term `qualified carbon dioxide'
means carbon dioxide captured from an anthropogenic source
that--
``(A) would otherwise be released into the
atmosphere as industrial emission of greenhouse gas,
``(B) is measurable at the source of capture,
``(C) is compressed, treated, and transported via
pipeline,
``(D) is sold as a tertiary injectant in qualified
enhanced oil and natural gas recovery, and
``(E) is permanently sequestered in geological
formations as a result of the enhanced oil and natural
gas recovery process.
``(2) Anthropogenic source.--An anthropogenic source of
carbon dioxide is an industrial source, including any of the
following types of plants, and facilities related to such
plant--
``(A) a coal and natural gas fired electrical
generating power station,
``(B) a natural gas processing and treating plant,
``(C) an ethanol plant,
``(D) a fertilizer plant, and
``(E) a chemical plant.
``(3) Definitions.--
``(A) Qualified enhanced oil and natural gas
recovery.--The term `qualified enhanced oil and natural
gas recovery' has the meaning given such term by
section 43(c)(2).
``(B) Tertiary injectant.--The term `tertiary
injectant' has the same meaning as when used within
section 193(b)(1).
``(d) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Only carbon dioxide captured within the united states
taken into account.--Sales shall be taken into account under
this section only with respect to qualified carbon dioxide of
which is within--
``(A) the United States (within the meaning of
section 638(1)), or
``(B) a possession of the United States (within the
meaning of section 638(2)).
``(2) Recycled carbon dioxide.--The term `qualified carbon
dioxide' includes the initial deposit of captured carbon
dioxide used as a tertiary injectant. Such term does not
include carbon dioxide that is re-captured, recycled, and re-
injected as part of the enhanced oil and natural gas recovery
process.
``(3) Credit attributable to taxpayer.--Any credit under
this section shall be attributable to the person that captures,
treats, compresses, transports and sells the carbon dioxide for
use as a tertiary injectant in enhanced oil and natural gas
recovery, except to the extent provided in regulations
prescribed by the Secretary.''.
(b) Conforming Amendment.--Section 38(b) (relating to general
business credit) is amended by striking ``plus'' at the end of
paragraph (32), by striking the period at the end of paragraph (33) and
inserting ``, plus'', and by adding at the end of following new
paragraph:
``(34) the captured carbon dioxide tertiary injectant
credit determined under section 45P(a).''.
(c) Clerical Amendment.--The table of sections for 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. 45Q. Credit for carbon dioxide captured from industrial sources
and used as a tertiary injectant in
enhanced oil and natural gas recovery.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the effective date of this Act.
Subtitle B--Termination of Congressional Moratoria on Oil and Gas
Development on the Outer Continental Shelf
SEC. 311. TERMINATION OF LAWS PROHIBITING EXPENDITURES FOR OIL AND
NATURAL GAS LEASING AND PRELEASING ACTIVITIES REGARDING
AREAS OF THE OUTER CONTINENTAL SHELF.
All provisions of existing Federal law prohibiting the spending of
appropriated funds to conduct oil and natural gas leasing and
preleasing activities for any area of the Outer Continental Shelf shall
have no force or effect.
Subtitle C--Oil and Gas Development on the Coastal Plain of Alaska
SEC. 321. SHORT TITLE.
This subtitle may be cited as the ``American-Made Energy and Good
Jobs Act''.
SEC. 322. 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. 323. 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 Act 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
effective date 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 effective date 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. 324. 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 effective date 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. 325. 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 324 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. 326. 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. 327. 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 323, 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. 328. EXPEDITED JUDICIAL REVIEW.
(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review of any provision of this Act 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. 329. 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 provided in section 332(d), 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. 330. 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 323(g) provisions granting rights-of-way and easements
described in subsection (a) of this section.
SEC. 331. 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. 332. 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 Act, 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.
TITLE IV--EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE.
Titles I through IV of this Act and the amendments made by this Act
shall take effect on the first day after the date of the enactment of
this Act on which the spot price for West Texas Intermediate (WTI-
Cushing) crude oil is equal to or greater than $150 per barrel, as
determined by the Energy Information Administration, Department of
Energy.
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