[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6421 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6421
To direct the Secretary of the Interior to establish and implement a
competitive oil and gas leasing program for the Coastal Plain of
Alaska, to provide for expanded leasing of the oil and gas resources of
the outer Continental Shelf for exploration, to eliminate certain
impediments to the development of nuclear energy sources, to promote
coal-to-liquid fuel activities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 26, 2008
Mr. Shuster introduced the following bill; which was referred to the
Committee on Natural Resources, and in addition to the Committees on
Ways and Means, Energy and Commerce, Science and Technology,
Transportation and Infrastructure, and Rules, 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 direct the Secretary of the Interior to establish and implement a
competitive oil and gas leasing program for the Coastal Plain of
Alaska, to provide for expanded leasing of the oil and gas resources of
the outer Continental Shelf for exploration, to eliminate certain
impediments to the development of nuclear energy sources, to promote
coal-to-liquid fuel activities, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Independence Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--OIL AND GAS LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN
OF ALASKA
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Leasing program for lands within the Coastal Plain.
Sec. 104. Lease sales.
Sec. 105. Grant of leases by the Secretary.
Sec. 106. Lease terms and conditions.
Sec. 107. Coastal plain environmental protection.
Sec. 108. Expedited judicial review.
Sec. 109. Federal and State distribution of revenues.
Sec. 110. Rights-of-way across the Coastal Plain.
Sec. 111. Conveyance.
Sec. 112. Local government impact aid and community service assistance.
Sec. 113. ANWR Alternative Energy Trust Fund.
TITLE II--OPENING OF OUTER CONTINENTAL SHELF
Sec. 201. Short title.
Sec. 202. Policy.
Sec. 203. Definitions under the Outer Continental Shelf Lands Act.
Sec. 204. Determination of Adjacent Zones and planning areas.
Sec. 205. Administration of leasing.
Sec. 206. Grant of leases by Secretary.
Sec. 207. Reservation of lands and rights.
Sec. 208. Outer Continental Shelf Leasing Program.
Sec. 209. Coordination with Adjacent States.
Sec. 210. Environmental studies.
Sec. 211. Federal Energy Natural Resources Enhancement Act of 2008.
Sec. 212. Termination of effect of laws prohibiting the spending of
appropriated funds for certain purposes.
Sec. 213. Outer Continental Shelf incompatible use.
Sec. 214. Repurchase of certain leases.
Sec. 215. Offsite environmental mitigation.
Sec. 216. Minerals Management Service.
Sec. 217. Authority to use decommissioned offshore oil and gas
platforms and other facilities for
artificial reef, scientific research, or
other uses.
Sec. 218. Repeal of requirement to conduct comprehensive inventory of
OCS oil and natural gas resources.
Sec. 219. Leases for areas located within 100 miles of California or
Florida.
Sec. 220. Coastal impact assistance.
Sec. 221. Oil shale and tar sands amendments.
TITLE III--NUCLEAR ENERGY
Sec. 301. Incentives for innovative technologies.
Sec. 302. Standby support for certain nuclear plant delays.
Sec. 303. Authorization for nuclear power 2010 program.
Sec. 304. Domestic manufacturing base for nuclear components and
equipment.
Sec. 305. Nuclear energy workforce.
Sec. 306. Licensing of new nuclear power plants.
Sec. 307. Investment tax credit for investments in nuclear power
facilities.
Sec. 308. National Nuclear Energy Council.
Sec. 309. Temporary spent nuclear fuel storage agreements.
Sec. 310. Implementation of temporary spent nuclear fuel storage
agreements.
Sec. 311. Expedited procedures for congressional review of temporary
spent nuclear fuel storage agreements.
Sec. 312. Contracting and Nuclear Waste Fund.
Sec. 313. Confidence in availability of waste disposal.
TITLE IV--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986
Sec. 401. Credit for investment in coal-to-liquid fuels projects.
Sec. 402. Temporary expensing for equipment used in coal-to-liquid
fuels process.
Sec. 403. Extension of alternative fuel credit for fuel derived from
coal through the Fischer-Tropsch process or
the Schobert process.
TITLE I--OIL AND GAS LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN
OF ALASKA
SEC. 101. SHORT TITLE.
This title may be cited as the ``American Energy Independence and
Price Reduction Act''.
SEC. 102. DEFINITIONS.
In this title:
(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. 103. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.
(a) In General.--The Secretary shall take such actions as are
necessary--
(1) to establish and implement, in accordance with this
title 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 title through
regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that ensure
the oil and gas exploration, development, and production
activities on the Coastal Plain will result in no significant
adverse effect on fish and wildlife, their habitat, subsistence
resources, and the environment, including, in furtherance of
this goal, by requiring the application of the best
commercially available technology for oil and gas exploration,
development, and production to all exploration, development,
and production operations under this title in a manner that
ensures the receipt of fair market value by the public for the
mineral resources to be leased.
(b) Repeal.--
(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 title
before the conduct of the first lease sale.
(3) Compliance with nepa for other actions.--Before
conducting the first lease sale under this title, the Secretary
shall prepare an environmental impact statement under the
National Environmental Policy Act of 1969 with respect to the
actions authorized by this title that are not referred to in
paragraph (2). Notwithstanding any other law, the Secretary is
not required to identify nonleasing alternative courses of
action or to analyze the environmental effects of such courses
of action. The Secretary shall only identify a preferred action
for such leasing and a single leasing alternative, and analyze
the environmental effects and potential mitigation measures for
those two alternatives. The identification of the preferred
action and related analysis for the first lease sale under this
title shall be completed within 18 months after the date of
enactment of this Act. The Secretary shall only consider public
comments that specifically address the Secretary's preferred
action and that are filed within 20 days after publication of
an environmental analysis. Notwithstanding any other law,
compliance with this paragraph is deemed to satisfy all
requirements for the analysis and consideration of the
environmental effects of proposed leasing under this title.
(d) Relationship to State and Local Authority.--Nothing in this
title shall be considered to expand or limit State and local regulatory
authority.
(e) Special Areas.--
(1) In general.--The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, and the North Slope
Borough, may designate up to a total of 45,000 acres of the
Coastal Plain as a Special Area if the Secretary determines
that the Special Area is of such unique character and interest
so as to require special management and regulatory protection.
The Secretary shall designate as such a Special Area the
Sadlerochit Spring area, comprising approximately 4,000 acres.
(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
title.
(g) Regulations.--
(1) In general.--The Secretary shall prescribe such
regulations as may be necessary to carry out this title,
including rules and regulations relating to protection of the
fish and wildlife, their habitat, subsistence resources, and
environment of the Coastal Plain, by no later than 15 months
after the date of enactment of this Act.
(2) Revision of regulations.--The Secretary shall
periodically review and, if appropriate, revise the rules and
regulations issued under subsection (a) to reflect any
significant biological, environmental, or engineering data that
come to the Secretary's attention.
SEC. 104. LEASE SALES.
(a) In General.--Lands may be leased pursuant to this title to any
person qualified to obtain a lease for deposits of oil and gas under
the Mineral Leasing Act (30 U.S.C. 181 et seq.).
(b) Procedures.--The Secretary shall, by regulation, establish
procedures for--
(1) receipt and consideration of sealed nominations for any
area in the Coastal Plain for inclusion in, or exclusion (as
provided in subsection (c)) from, a lease sale;
(2) the holding of lease sales after such nomination
process; and
(3) public notice of and comment on designation of areas to
be included in, or excluded from, a lease sale.
(c) Lease Sale Bids.--Bidding for leases under this title shall be
by sealed competitive cash bonus bids.
(d) Acreage Minimum in First Sale.--In the first lease sale under
this title, the Secretary shall offer for lease those tracts the
Secretary considers to have the greatest potential for the discovery of
hydrocarbons, taking into consideration nominations received pursuant
to subsection (b)(1), but in no case less than 200,000 acres.
(e) Timing of Lease Sales.--The Secretary shall--
(1) conduct the first lease sale under this title within 22
months after the date of the enactment of this Act;
(2) evaluate the bids in such sale and issue leases
resulting from such sale, within 90 days after the date of the
completion of such sale; and
(3) conduct additional sales so long as sufficient interest
in development exists to warrant, in the Secretary's judgment,
the conduct of such sales.
SEC. 105. 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 104 any
lands to be leased on the Coastal Plain upon payment by the lessee of
such bonus as may be accepted by the Secretary.
(b) Subsequent Transfers.--No lease issued under this title may be
sold, exchanged, assigned, sublet, or otherwise transferred except with
the approval of the Secretary. Prior to any such approval the Secretary
shall consult with, and give due consideration to the views of, the
Attorney General.
SEC. 106. LEASE TERMS AND CONDITIONS.
(a) In General.--An oil or gas lease issued pursuant to this title
shall--
(1) provide for the payment of a royalty of not less than
12\1/2\ percent in amount or value of the production removed or
sold from the lease, as determined by the Secretary under the
regulations applicable to other Federal oil and gas leases;
(2) provide that the Secretary may close, on a seasonal
basis, portions of the Coastal Plain to exploratory drilling
activities as necessary to protect caribou calving areas and
other species of fish and wildlife;
(3) require that the lessee of lands within the Coastal
Plain shall be fully responsible and liable for the reclamation
of lands within the Coastal Plain and any other Federal lands
that are adversely affected in connection with exploration,
development, production, or transportation activities conducted
under the lease and within the Coastal Plain by the lessee or
by any of the subcontractors or agents of the lessee;
(4) provide that the lessee may not delegate or convey, by
contract or otherwise, the reclamation responsibility and
liability to another person without the express written
approval of the Secretary;
(5) provide that the standard of reclamation for lands
required to be reclaimed under this title shall be, as nearly
as practicable, a condition capable of supporting the uses
which the lands were capable of supporting prior to any
exploration, development, or production activities, or upon
application by the lessee, to a higher or better use as
approved by the Secretary;
(6) contain terms and conditions relating to protection of
fish and wildlife, their habitat, subsistence resources, and
the environment as required pursuant to section 103(a)(2);
(7) provide that the lessee, its agents, and its
contractors use best efforts to provide a fair share, as
determined by the level of obligation previously agreed to in
the 1974 agreement implementing section 29 of the Federal
Agreement and Grant of Right of Way for the Operation of the
Trans-Alaska Pipeline, of employment and contracting for Alaska
Natives and Alaska Native Corporations from throughout the
State;
(8) prohibit the export of oil produced under the lease;
and
(9) contain such other provisions as the Secretary
determines necessary to ensure compliance with the provisions
of this title and the regulations issued under this title.
(b) Project Labor Agreements.--The Secretary, as a term and
condition of each lease under this title and in recognizing the
Government's proprietary interest in labor stability and in the ability
of construction labor and management to meet the particular needs and
conditions of projects to be developed under the leases issued pursuant
to this title and the special concerns of the parties to such leases,
shall require that the lessee and its agents and contractors negotiate
to obtain a project labor agreement for the employment of laborers and
mechanics on production, maintenance, and construction under the lease.
SEC. 107. 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 103, administer the provisions of this title
through regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that--
(1) ensure the oil and gas exploration, development, and
production activities on the Coastal Plain will result in no
significant adverse effect on fish and wildlife, their habitat,
and the environment;
(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 title, the Secretary shall
prepare and promulgate regulations, lease terms, conditions,
restrictions, prohibitions, stipulations, and other measures designed
to ensure that the activities undertaken on the Coastal Plain under
this title are conducted in a manner consistent with the purposes and
environmental requirements of this title.
(d) Compliance With Federal and State Environmental Laws and Other
Requirements.--The proposed regulations, lease terms, conditions,
restrictions, prohibitions, and stipulations for the leasing program
under this title shall require compliance with all applicable
provisions of Federal and State environmental law, and shall also
require the following:
(1) Standards at least as effective as the safety and
environmental mitigation measures set forth in items 1 through
29 at pages 167 through 169 of the ``Final Legislative
Environmental Impact Statement'' (April 1987) on the Coastal
Plain.
(2) Seasonal limitations on exploration, development, and
related activities, where necessary, to avoid significant
adverse effects during periods of concentrated fish and
wildlife breeding, denning, nesting, spawning, and migration.
(3) That exploration activities, except for surface
geological studies, be limited to the period between
approximately November 1 and May 1 each year and that
exploration activities shall be supported, if necessary, by ice
roads, winter trails with adequate snow cover, ice pads, ice
airstrips, and air transport methods, except that such
exploration activities may occur at other times if the
Secretary finds that such exploration will have no significant
adverse effect on the fish and wildlife, their habitat, and the
environment of the Coastal Plain.
(4) Design safety and construction standards for all
pipelines and any access and service roads, that--
(A) minimize, to the maximum extent possible,
adverse effects upon the passage of migratory species
such as caribou; and
(B) minimize adverse effects upon the flow of
surface water by requiring the use of culverts,
bridges, and other structural devices.
(5) Prohibitions on general public access and use on all
pipeline access and service roads.
(6) Stringent reclamation and rehabilitation requirements,
consistent with the standards set forth in this title,
requiring the removal from the Coastal Plain of all oil and gas
development and production facilities, structures, and
equipment upon completion of oil and gas production operations,
except that the Secretary may exempt from the requirements of
this paragraph those facilities, structures, or equipment that
the Secretary determines would assist in the management of the
Arctic National Wildlife Refuge and that are donated to the
United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by
all modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and
gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on use of
explosives.
(11) Avoidance, to the extent practicable, of springs,
streams, and river system; the protection of natural surface
drainage patterns, wetlands, and riparian habitats; and the
regulation of methods or techniques for developing or
transporting adequate supplies of water for exploratory
drilling.
(12) Avoidance or minimization of air traffic-related
disturbance to fish and wildlife.
(13) Treatment and disposal of hazardous and toxic wastes,
solid wastes, reserve pit fluids, drilling muds and cuttings,
and domestic wastewater, including an annual waste management
report, a hazardous materials tracking system, and a
prohibition on chlorinated solvents, in accordance with
applicable Federal and State environmental law.
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.
(17) Avoidance of significant adverse effects upon
subsistence hunting, fishing, and trapping by subsistence
users.
(18) Compliance with applicable air and water quality
standards.
(19) Appropriate seasonal and safety zone designations
around well sites, within which subsistence hunting and
trapping shall be limited.
(20) Reasonable stipulations for protection of cultural and
archeological resources.
(21) All other protective environmental stipulations,
restrictions, terms, and conditions deemed necessary by the
Secretary.
(e) Considerations.--In preparing and promulgating regulations,
lease terms, conditions, restrictions, prohibitions, and stipulations
under this section, the Secretary shall consider the following:
(1) The stipulations and conditions that govern the
National Petroleum Reserve-Alaska leasing program, as set forth
in the 1999 Northeast National Petroleum Reserve-Alaska Final
Integrated Activity Plan/Environmental Impact Statement.
(2) The environmental protection standards that governed
the initial Coastal Plain seismic exploration program under
parts 37.31 to 37.33 of title 50, Code of Federal Regulations.
(3) The land use stipulations for exploratory drilling on
the KIC-ASRC private lands that are set forth in Appendix 2 of
the August 9, 1983, agreement between Arctic Slope Regional
Corporation and the United States.
(f) Facility Consolidation Planning.--
(1) In general.--The Secretary shall, after providing for
public notice and comment, prepare and update periodically a
plan to govern, guide, and direct the siting and construction
of facilities for the exploration, development, production, and
transportation of Coastal Plain oil and gas resources.
(2) Objectives.--The plan shall have the following
objectives:
(A) Avoiding unnecessary duplication of facilities
and activities.
(B) Encouraging consolidation of common facilities
and activities.
(C) Locating or confining facilities and activities
to areas that will minimize impact on fish and
wildlife, their habitat, and the environment.
(D) Utilizing existing facilities wherever
practicable.
(E) Enhancing compatibility between wildlife values
and development activities.
(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. 108. EXPEDITED JUDICIAL REVIEW.
(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review of any provision of this title or any
action of the Secretary under this title shall be filed--
(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 title or any action of the Secretary under
this title may be filed only in the United States Court of
Appeals for the District of Columbia.
(3) Limitation on scope of certain review.--Judicial review
of a Secretarial decision to conduct a lease sale under this
title, including the environmental analysis thereof, shall be
limited to whether the Secretary has complied with the terms of
this title 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 title
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. 109. 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 title--
(1) 50 percent shall be paid to the State of Alaska; and
(2) except as provided in section 112(d), the balance shall
be transferred to the ANWR Alternative Energy Trust Fund
established by this title.
(b) Payments to Alaska.--Payments to the State of Alaska under this
section shall be made semiannually.
SEC. 110. 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 103(g) provisions granting rights-of-way and easements
described in subsection (a) of this section.
SEC. 111. 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. 112. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.
(a) Financial Assistance Authorized.--
(1) In general.--The Secretary may use amounts available
from the Coastal Plain Local Government Impact Aid Assistance
Fund established by subsection (d) to provide timely financial
assistance to entities that are eligible under paragraph (2)
and that are directly impacted by the exploration for or
production of oil and gas on the Coastal Plain under this
title.
(2) Eligible entities.--The North Slope Borough, 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 title, 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 title.
(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.
SEC. 113. ANWR ALTERNATIVE ENERGY TRUST FUND.
(a) Establishment of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the ``ANWR
Alternative Energy Trust Fund'', consisting of such amounts as may be
transferred to the ANWR Alternative Energy Trust Fund as provided in
section 109.
(b) Expenditures From ANWR Alternative Energy Trust Fundk.--
(1) In general.--Amounts in the ANWR Alternative Energy
Trust Fund shall be available without further appropriation to
carry out specified provisions of the Energy Policy Act of 2005
(Public Law 109-58; in this section referred to as
``EPAct2005'') and the Energy Independence and Security Act of
2007 (Public Law 110-140; in this section referred to as
``EISAct2007''), as follows:
The following
percentage of annual
receipts to the ANWR
Alternative Energy
To carry out the provisions of: Trust Fund, but not to
exceed the limit on
amount authorized, if
any:
EPAct2005:
Section 210.................................. 1.5 percent
Section 242.................................. 1.0 percent
Section 369.................................. 2.0 percent
Section 401.................................. 6.0 percent
Section 812.................................. 6.0 percent
Section 931.................................. 19.0 percent
Section 942.................................. 1.5 percent
Section 962.................................. 3.0 percent
Section 968.................................. 1.5 percent
Section 1704................................. 6.0 percent
EISAct2007:
Section 207.................................. 15.0 percent
Section 607.................................. 1.5 percent
Title VI, Subtitle B......................... 3.0 percent
Title VI, Subtitle C......................... 1.5 percent
Section 641.................................. 9.0 percent
Title VII, Subtitle A........................ 15.0 percent
Section 1112................................. 1.5 percent
Section 1304................................. 6.0 percent.
(2) Apportionment of excess amount.--Notwithstanding
paragraph (1), any amounts allocated under paragraph (1) that
are in excess of the amounts authorized in the applicable cited
section or subtitle of EPAct2005 and EISAct2007 shall be
reallocated to the remaining sections and subtitles cited in
paragraph (1), up to the amounts otherwise authorized by law to
carry out such sections and subtitles, in proportion to the
amounts authorized by law to be appropriated for such other
sections and subtitles.
TITLE II--OPENING OF OUTER CONTINENTAL SHELF
SEC. 201. SHORT TITLE.
This title may be cited as the ``Deep Ocean Energy Resources Act of
2008''.
SEC. 202. 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. 203. 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. 204. 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. 205. 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. 206. 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 25
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 25 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. 207. 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. 208. 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. 209. 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. 210. 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. 211. 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. 212. 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. 213. 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. 214. 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. 215. 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. 216. 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. 217. 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. 218. 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. 219. 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 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. 220. COASTAL IMPACT ASSISTANCE.
Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C.
1356a) is repealed.
SEC. 221. 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 in the Treasury as
miscellaneous receipts.
``(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.''.
TITLE III--NUCLEAR ENERGY
SEC. 301. 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 (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. 302. 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. Sec. 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. Sec. 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(s) shall be final and
binding, and any court having jurisdiction may enter judgment on it.'';
and
(2) by designating subsections (f), (g), and (h) as
subsections (g), (h), and (i) respectively.
SEC. 303. 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 subsections (1) and (2) and substituting 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
(EPS), 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; and
(E) $2,200,000 for fiscal year 2012.
SEC. 304. DOMESTIC MANUFACTURING BASE FOR NUCLEAR COMPONENTS AND
EQUIPMENT.
(a) Establishment of Interagency Working Group.--
(1) Purposes.--
(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 paragraphs (1)
through (4) 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, shall chair the
interagency working group. The Secretary of
Energy shall provide staff for carrying out the
functions of the interagency working group
established under this section.
(ii) representatives of--
(I) the Department of Energy;
(II) the Department of Commerce;
(III) the Department of Defense;
(IV) the Department of 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 U.S. Trade
Representative; and
(XII) other Federal agencies, as
determined by the President.
(iii) 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) Within six months of enactment, the interagency
working group established under section (1)(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/or
reliability of existing nuclear generating
facilities through modifications; and
(iii) enhance the safe treatment, handling,
storage and disposal of used nuclear fuel.
(B) Within 6 months of enactment, the interagency
working group shall identify mechanisms (including, but
not limited to, 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 work-force necessary
to increase manufacturing capacity and meet
domestic and international nuclear quality
assurance code requirements.
(C) Within 9 months of enactment, the interagency
working group shall provide a report to Congress on its
findings under Section (2)(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 prefeasibility 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 for purposes of carrying
out this title $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 is amended
by--
(A) striking ``and'' at the end of paragraph (3);
(B) striking the period at the end of paragraph (4)
and inserting ``, and''; and
(C) 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) is amended by--
(A) striking ``and'' at the end of clause (iii);
(B) striking the period at the end of clause (iv)
and inserting ``, and''; and
(C) 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 is amended by inserting after the line 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. 305. 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 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. 306. LICENSING OF NEW NUCLEAR POWER PLANTS.
Sections 189 and 185 of the Atomic Energy Act are amended thus:
(1) Hearings and judicial review.--Section 189a.(1)(A) is
modified thus: ``In any proceeding under this Act, for the
granting, suspending, revoking, or amending of any license or
construction permit, or application to transfer control, and in
any proceeding for the issuance or modification of rules and
regulations dealing with the activities of licensees, and in
any proceeding for the payment of compensation, an award, or
royalties under section 153, 157, 186c., or 188, the Commission
shall grant a hearing upon the request of any person whose
interest may be affected by the proceeding, and shall admit any
such person as a party to such proceeding. The Commission may,
in the absence of a request therefor by any person whose
interest may be affected, issue a construction permit, an
operating license or an amendment to a construction permit or
an amendment to an operating license without a hearing, but
upon thirty days' notice and publication once in the Federal
Register of its intent to do so. The Commission may dispense
with such thirty days' notice and publication with respect to
any application for an amendment to a construction permit or an
amendment to an operating license upon a determination by the
Commission that the amendment involves no significant hazards
consideration.''.
(2) Construction permits and operating licenses.--Section
185b is modified thus: ``After any public hearing held under
section 189a.(1)(A), the Commission shall issue to the
applicant a combined construction and operating license if the
application contains sufficient information to support the
issuance of a combined license and the Commission determines
that there is reasonable assurance that the facility will be
constructed and will operate in conformity with the license,
the provisions of this Act, and the Commission's rules and
regulations. The Commission shall identify within the combined
license the inspections, tests, and analyses, including those
applicable to emergency planning, that the licensee shall
perform, and the acceptance criteria that, if met, are
necessary and sufficient to provide reasonable assurance that
the facility has been constructed and will be operated in
conformity with the license, the provisions of this Act, and
the Commission's rules and regulations. Following issuance of
the combined license, the Commission shall ensure that the
prescribed inspections, tests, and analyses are performed and,
prior to operation of the facility, shall find that the
prescribed acceptance criteria are met. Any finding made under
this subsection shall not require a hearing except as provided
in section 189a.(1)(B).''.
SEC. 307. INVESTMENT TAX CREDIT FOR INVESTMENTS IN NUCLEAR POWER
FACILITIES.
(a) New Credit for Nuclear Power Facilities.--Section 46 is amended
by--
(1) striking ``and'' at the end of paragraph (3);
(2) striking the period at the end of paragraph (4) and
inserting ``, and''; and
(3) inserting after paragraph (4) the following new
paragraph:
``(5) the nuclear power facility construction credit.''.
(b) Nuclear Power Facility Construction Credit.--Subpart E of part
IV of subchapter A of chapter 1 is amended by inserting after section
48B the following new section:
``SEC. 48C. 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.
``(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 tax-payer.
``(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 January 1,
2007, 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) 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 48C(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, 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) is amended by--
(i) inserting ``or paragraph (2) of section
48C(b)'' after ``paragraph (2) of section
47(b)'';
(ii) inserting ``or section 48C(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) is amended by--
(i) inserting ``or section 48C(c)'' after
``section 47(d)''; and
(ii) inserting ``or qualified nuclear power
facility expenditures'' after ``qualified
rehabilitation expenditures''.
(D) Other amendment.--Subparagraph (D) of section
50(a)(2) is amended by inserting ``or section 48C(c)''
after ``section 47(d)''.
(d) No Basis Adjustment.--Section 50(c) 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) Technical Amendments.--The table of sections for subpart E of
part IV of subchapter A of chapter 1 is amended by inserting after the
line for section 48B the following new line:
``Sec. 48C. Nuclear power facility construction credit.''.
(f) Effective Date.--The amendments made by this section shall be
effective for expenditures incurred and property placed in service in
taxable years beginning after the date of enactment.
SEC. 308. 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. 309. TEMPORARY SPENT NUCLEAR FUEL STORAGE AGREEMENTS.
(a) Authorization and Location.--The Secretary of Energy
(Secretary) is authorized to initiate spent nuclear fuel storage
agreements as provided herein.
(1) No later than 180 days from the date of enactment 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
subsection (a)(1), the Secretary shall determine whether the
identified site is suitable for a temporary storage facility.
In determining the site's suitability, the Secretary will
evaluate technical feasibility and consider favorably local
support for collocating a temporary spent nuclear fuel storage
facility with facilities in-tended to develop and implement
advanced nuclear fuel cycle technologies.
(b) Content of Agreements.--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.
(1) 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.
(2) 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)).
SEC. 310. IMPLEMENTATION OF TEMPORARY SPENT NUCLEAR FUEL STORAGE
AGREEMENTS.
(a) In General.--Any temporary spent nuclear fuel storage agreement
or agreements entered into under section 1 shall enter into force with
respect to the United States if (and only if)--
(1) 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;
(2) 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
(3) 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--
(A) a draft of an implementing bill; and
(B) a statement of any administrative action
proposed to implement the agreement.
(b) Application of Expedited Procedures to Implementing Bills.--The
provisions of section 3 apply to implementing bills submitted with
respect to temporary spent nuclear fuel storage agreements entered into
and submitted pursuant to section 2.
SEC. 311. EXPEDITED PROCEDURES FOR CONGRESSIONAL REVIEW OF TEMPORARY
SPENT NUCLEAR FUEL STORAGE AGREEMENTS.
(a) Rules of House of Representative and Senate.--The provisions of
this subsection are enacted by the Congress--
(1) 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 de-scribed in
subsection (b)(2) of this section and approval resolutions
described in subsection (b)(3) of this section; and they
supersede other rules only to the extent that they are
inconsistent therewith; and
(2) 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.
(b) Definitions.--For purposes of this section--
(1) 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 section 1.
(2) The term ``implementing bill'' means only a bill of
either House of Congress which is introduced as provided in
subsection (c) of this section with respect to one or more
temporary spent nuclear fuel storage agreements and which
contain--
(A) a provision approving such storage agreements;
(B) a provision approving the statement of
administrative action (if any) proposed to implement
such storage agreements;
(C) 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
(D) a provision containing revenue measures (if
any), by reason of which the bill must originate in the
House of Representatives as provided for in subsection
(c).
(3) 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.
(c) 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 title, 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.
(d) 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 subsection 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 subsection by unanimous
consent.
(e) Period for Committee and Floor Consideration.--
(1) Except as provided in subsection (e)(2), 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--
(A) 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
(B) the vote on final passage shall be on the
implementing bill or approval resolution of the other
House.
(2) For purposes of computing a number of days in either
House as provided for in subsection (e)(1), there shall be
excluded any day on which that House is not in session.
(3) If the implementing bill contains one or more revenue
measures--
(A) the provisions of subsection (e)(1) shall not
apply; and
(B) the Senate shall not take final action on the
bill until it is received from the House.
(f) Floor Consideration in the House.--
(1) 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.
(2) 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.
(3) 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.
(4) 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.
(5) Except to the extent specifically provided in the
preceding provisions of this subsection, 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.
(g) Floor Consideration in the Senate.--
(1) 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.
(2) 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.
(3) 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.
(4) 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. 312. CONTRACTING AND NUCLEAR WASTE FUND.
Section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C.
10222) is amended--
(1) in subsection (a)(1), by adding at the end the
following: ``For any civilian nuclear power reactor a license
application for which is filed with the Commission, pursuant to
its authority under section 103 or 104 of the Atomic Energy Act
of 1954, after the date of enactment of this Act, contracts
entered into under this section shall--
``(A) except as provided in subsections
302(a)(1)(B), (C), (D), and (E), below, be generally
consistent with the terms and conditions of the
`Standard Contract for Disposal of Spent Nuclear Fuel
and/or High-Level Radioactive Waste,' as codified at 10
C.F.R. Part 961 and in effect on January 1, 2007;
``(B) provide for the taking of title to, and for
the Secretary to dispose of, the high-level waste or
spent nuclear fuel involved beginning no later than 15
years following the start of commercial operation;
``(C) contain no provisions providing for
adjustment of the 1.0 mil per kilowatt-hour fee
established by paragraph (2);
``(D) be entered into no later than 60 days
following the docketing of the license application by
the Commission, or the date of enactment of this Act,
whichever is later;
``(E) provide that, on a schedule consistent with
the Secretary's acceptance of spent nuclear fuel from
each civilian nuclear power reactor or site, and
completed not later than the Secretary's completing the
acceptance of all spent nuclear fuel from that
commercial nuclear power reactor or site, the Secretary
shall accept from each such reactor or site, all low-
level radioactive waste defined in section 3(b)(1)(D)
of the Low-level Radioactive Waste Policy Act, as
amended, 42 U.S.C. 2021c(b)(1)(D).''; and
(2) in subsection (a)(4), by striking all after ``herein.''
in the second sentence;
(3) in subsection (a)(6), by adding at the end the
following: ``Further, the Secretary shall offer to settle any
actions pending on the date of enactment of this Act for
damages resulting from failure to commence accepting spent
nuclear fuel or high-level radioactive waste on or before
January 31, 1998. Each offer to settle shall provide for the
payment of $150 to the other party to a contract for disposal
of spent nuclear fuel and high-level radioactive waste for each
kilogram of spent nuclear fuel which such party was or shall be
entitled to deliver to the Department in a particular year,
based on the following aggregate acceptance rates: 400 MTU for
1998; 600 MTU for 1999; 1,200 MTU for 2000; 2,000 MTU for 2001;
and 3,000 MTU for 2002 and thereafter; provided that the
Secretary shall adjust the payment amount per kilogram of spent
nuclear fuel under this subsection (a)(6) annually according to
the most recent Producer Price Index published by the
Department of Labor. Such aggregate acceptance rates shall be
allocated among parties to contracts with the United States
based upon the age of spent nuclear fuel, as measured by the
date of the discharge of such spent nuclear fuel from the
civilian nuclear power reactor. Such offer to settle also shall
include an annual payment to be determined by the Secretary to
any such party where a civilian nuclear power reactor has been
decommissioned, except for those portions of the facility that
cannot be decommissioned until removal of spent nuclear fuel
and high-level radioactive waste. The Secretary also shall
offer like compensation to parties to contracts entered into
pursuant to section 302 of the Nuclear Waste Policy Act of 1982
(42 U.S.C. 10222) who brought actions for damages prior to the
date of enactment of this Act, but which were no longer pending
as of said date, provided that such compensation shall be
reduced by the amount of any settlement or judgment received by
such party.''; and
(4) in subsection (d), by adding at the end the following:
``No amount may be expended by the Secretary from the Waste
Fund to carry out research and development activities on
advanced nuclear fuel cycle technologies.''.
SEC. 313. 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
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 generate d 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 IV--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986
SEC. 401. CREDIT FOR INVESTMENT IN COAL-TO-LIQUID FUELS PROJECTS.
(a) In General.--Section 46 of the Internal Revenue Code of 1986
(relating to amount of credit) 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) the qualifying coal-to-liquid fuels project
credit.''.
(b) Amount of Credit.--Subpart E of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to rules for
computing investment credit) is amended by inserting after section 48B
the following new section:
``SEC. 48C. QUALIFYING COAL-TO-LIQUID FUELS PROJECT CREDIT.
``(a) In General.--For purposes of section 46, the qualifying coal-
to-liquid fuels project 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
property placed in service by the taxpayer during such taxable
year which is part of a qualifying coal-to-liquid fuels
project--
``(A)(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, and
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable.
``(2) Applicable rules.--For purposes of this section,
rules similar to the rules of subsection (a)(4) and (b) of
section 48 shall apply.
``(c) Definitions.--For purposes of this section--
``(1) Qualifying coal-to-liquid fuels project.--The term
`qualifying coal-to-liquid fuels project' means any domestic
project which--
``(A) employs either the class of reactions known
as Fischer-Tropsch or the Schobert process to produce
at least 10,000 barrels per day of transportation grade
liquid fuels from a feedstock that is primarily
domestic coal (including any property which allows for
the capture, transportation, or sequestration of by-
products resulting from such process, including carbon
emissions), and
``(B) any portion of the qualified investment in
which is certified under the qualifying coal-to-liquid
program as eligible for credit under this section in an
amount (not to exceed $200,000,000) determined by the
Secretary.
``(2) Coal.--The term `coal' means any carbonized or
semicarbonized matter, including peat.
``(d) Qualifying Coal-to-Liquid Fuels Project Program.--
``(1) In general.--The Secretary, in consultation with the
Secretary of Energy, shall establish a qualifying coal-to-
liquid fuels project program to consider and award
certifications for qualified investment eligible for credits
under this section to 10 qualifying coal-to-liquid fuels
project sponsors under this section. The total qualified
investment which may be awarded eligibility for credit under
the program shall not exceed $2,000,000,000.
``(2) Period of issuance.--A certificate of eligibility
under paragraph (1) may be issued only during the 10-fiscal
year period beginning on October 1, 2007.
``(3) Selection criteria.--The Secretary shall not make a
competitive certification award for qualified investment for
credit eligibility under this section unless the recipient has
documented to the satisfaction of the Secretary that--
``(A) the proposal of the award recipient is
financially viable,
``(B) the recipient will provide sufficient
information to the Secretary for the Secretary to
ensure that the qualified investment is spent
efficiently and effectively,
``(C) the fuels identified with respect to the
gasification technology for such project will comprise
at least 90 percent of the fuels required by the
project for the production of transportation grade
liquid fuels,
``(D) the award recipient's project team is
competent in the planning and construction of coal
gasification facilities and familiar with operation of
either the Fischer-Tropsch process or the Schobert
process, with preference given to those recipients with
experience which demonstrates successful and reliable
operations of such process, and
``(E) the award recipient has met other criteria
established and published by the Secretary.
``(e) Denial of Double Benefit.--No deduction or other credit shall
be allowed with respect to the basis of any property taken into account
in determining the credit allowed under this section.''.
(c) Conforming Amendments.--
(1) Section 49(a)(1)(C) of the Internal Revenue Code of
1986 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 after clause (iv) the following new
clause:
``(v) the basis of any property which is
part of a qualifying coal-to-liquid fuels
project under section 48C.''.
(2) 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 relating to section 48B the following new item:
``Sec. 48C. Qualifying coal-to-liquid fuels project credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to periods after the date of the enactment of this Act, 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. 402. TEMPORARY EXPENSING FOR EQUIPMENT USED IN COAL-TO-LIQUID
FUELS PROCESS.
(a) In General.--Part VI of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
179E the following new section:
``SEC. 179F. ELECTION TO EXPENSE CERTAIN COAL-TO-LIQUID FUELS
FACILITIES.
``(a) Treatment as Expenses.--A taxpayer may elect to treat the
cost of any qualified coal-to-liquid fuels process property as an
expense which is not chargeable to capital account. Any cost so treated
shall be allowed as a deduction for the taxable year in which the
expense is incurred.
``(b) Election.--
``(1) In general.--An election under this section for any
taxable year shall be made on the taxpayer's return of the tax
imposed by this chapter for the taxable year. Such election
shall be made in such manner as the Secretary may by
regulations prescribe.
``(2) Election irrevocable.--Any election made under this
section may not be revoked except with the consent of the
Secretary.
``(c) Qualified Coal-to-Liquid Fuels Process Property.--The term
`qualified coal-to-liquid fuels process property' means any property
located in the United States--
``(1) which employs the Fischer-Tropsch process or the
Schobert process to produce transportation grade liquid fuels
from a feedstock that is primarily domestic coal (including any
property which allows for the capture, transportation, or
sequestration of by-products resulting from such process,
including carbon emissions),
``(2) the original use of which commences with the
taxpayer,
``(3) the construction of which--
``(A) except as provided in subparagraph (B), is
subject to a binding construction contract entered into
after the date of the enactment of this section and
before January 1, 2011, but only if there was no
written binding construction contract entered into on
or before such date of enactment, or
``(B) in the case of self-constructed property,
began after the date of the enactment of this section
and before January 1, 2011, and
``(4) which is placed in service by the taxpayer after the
date of the enactment of this section and before January 1,
2016.
``(d) Election To Allocate Deduction to Cooperative Owner.--If--
``(1) a taxpayer to which subsection (a) applies is an
organization to which part I of subchapter T applies, and
``(2) one or more persons directly holding an ownership
interest in the taxpayer are organizations to which part I of
subchapter T apply,
the taxpayer may elect to allocate all or a portion of the deduction
allowable under subsection (a) to such persons. Such allocation shall
be equal to the person's ratable share of the total amount allocated,
determined on the basis of the person's ownership interest in the
taxpayer. The taxable income of the taxpayer shall not be reduced under
section 1382 by reason of any amount to which the preceding sentence
applies.
``(e) Basis Reduction.--
``(1) In general.--For purposes of this title, if a
deduction is allowed under this section with respect to any
qualified coal-to-liquid fuels process property, the basis of
such property shall be reduced by the amount of the deduction
so allowed.
``(2) Ordinary income recapture.--For purposes of section
1245, the amount of the deduction allowable under subsection
(a) with respect to any property which is of a character
subject to the allowance for depreciation shall be treated as a
deduction allowed for depreciation under section 167.
``(f) Application With Other Deductions and Credits.--
``(1) Other deductions.--No deduction shall be allowed
under any other provision of this chapter with respect to any
expenditure with respect to which a deduction is allowed under
subsection (a) to the taxpayer.
``(2) Credits.--No credit shall be allowed under section 38
with respect to any amount for which a deduction is allowed
under subsection (a).
``(g) Reporting.--No deduction shall be allowed under subsection
(a) to any taxpayer for any taxable year unless such taxpayer files
with the Secretary a report containing such information with respect to
the operation of the property of the taxpayer as the Secretary shall
require.''.
(b) Conforming Amendments.--
(1) Section 1016(a) of the Internal Revenue Code of 1986 is
amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(38) to the extent provided in section 179F(e)(1).''.
(2) Section 1245(a) of such Code is amended by inserting
``179F,'' after ``179D,'' both places it appears in paragraphs
(2)(C) and (3)(C).
(3) Section 263(a)(1) of such Code is amended by striking
``or'' at the end of subparagraph (J), by striking the period
at the end of subparagraph (K) and inserting ``, or'', and by
inserting after subparagraph (K) the following new
subparagraph:
``(L) expenditures for which a deduction is allowed
under section 179F.''.
(4) Section 312(k)(3)(B) of such Code is amended by
striking ``or 179E'' each place it appears in the heading and
text and inserting ``179E, or 179F''.
(5) The table of sections for part VI of subchapter B of
chapter 1 of such Code is amended by inserting after the item
relating to section 179E the following new item:
``Sec. 179F. Election to expense certain coal-to-liquid fuels
facilities.''.
(c) Effective Date.--The amendments made by this section shall
apply to properties placed in service after the date of the enactment
of this Act.
SEC. 403. EXTENSION OF ALTERNATIVE FUEL CREDIT FOR FUEL DERIVED FROM
COAL THROUGH THE FISCHER-TROPSCH PROCESS OR THE SCHOBERT
PROCESS.
(a) Alternative Fuel Credit.--Paragraph (4) of section 6426(d) of
the Internal Revenue Code of 1986 is amended to read as follows:
``(4) Termination.--This subsection shall not apply to--
``(A) any sale or use involving liquid fuel derived
from a feedstock that is primarily domestic coal
(including peat) through the Fischer-Tropsch process or
the Schobert process for any period after September 30,
2020,
``(B) any sale or use involving liquified hydrogen
for any period after September 30, 2014, and
``(C) any other sale or use for any period after
September 30, 2009.''.
(b) Payments.--
(1) In general.--Paragraph (5) of section 6427(e) of the
Internal Revenue Code of 1986 is amended by striking ``and''
and 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) any alternative fuel or alternative fuel
mixture (as so defined) involving liquid fuel derived
from coal (including peat) through the Fischer-Tropsch
process or the Schobert process sold or used after
September 30, 2020.''.
(2) Conforming amendment.--Section 6427(e)(5)(C) of such
Code is amended by striking ``subparagraph (D)'' and inserting
``subparagraphs (D) and (E)''.
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